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HARVARD LAW SCHOOL
LIBRARY
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NATIONAL REPORTER SYSTEM— STATE SERIES
I
THE
ATLANTIC REPORTER
VOLUME 101
PERMANENT EDITION
OOHFBISINO AIX THE BXFOBTED DECIBIONB OF THX
SUPREME COURTS OF MAINE, NEW HAMPSHIRE. VERMONT, RHODE ISLAND
CONNECTICUT, AND PENNSYLVANIA; COURT OF ERRORS AND APPEAL
COURT OF CHANCERY, AND SUPREME AND PREROGATIVE
COURTS OF NEW JERSEY; SUPREME COURT, COURT OF
CHANCERY, SUPERIOR COURT, COURT OF GEN-
ERAL SESSIONS, AND COURT OF OYER
AND TERMINER OF DELAWARE
AND COURT OF APPEALS
OF MARYLAND
WITH
KEY-NUMBER ANNOTATIONS
JULY 19 — NOVEMBER 1, 1917
^^-
ST. PAUL
WEST PUBLISHING CO.
1917
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CoPTBiaHT, 1917
BT
WEST PUBLISHING OOMPANT
(101 AtU
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▲TZiANTIC REPORTER, YOLiUUn 101
JUDGES
OF THE COURTS REPORTED DURING THE PERIOD COVERED
BY THIS VOI.UME
OOmnBOTIOnT— Supreme Court of Errors.
aAUUHL O. PRENTICE, CBiBT Jvemom.
ABBOdATK JDSTICBB.
JOHN M. THATER.»
AliBBRTO T. RORABACK.
GEORGE W. WHEEUER.
JOHN K. BEACH.
MHiTON A, 8HUMWAT.*
DEIiAlV ABE— Supreme Court.
CHARLES M. CURTIS. CHXNCBIiOa.
JAMES PENNETWILii, Csixr JUBTlca.
▲880CIATB JirsaBB.
WILLiIAM H. BOTCB.
HENRY 0. CONRAD.
HERBERT L. RICE.
T. BAYARD HEISEL.
Court of Chancery.
CHARLES M. CURTIS, CHANC»IJ/)B.
MAINE— Supreme Judicial Court.
AI^BERT R. SAVAGE, Chibp JtjBTiCl.'
I^BSLIS C. CORNISH, Chibi- Jubticb.*
AssociATa juBTicaa.
liESLIB C. CORNISH.*
ALBERT M. SPEAR.'
ARNO W. KING.
GEORGE E. BIRD.
GEORGE F. HALEY.
GEORGE M. HANSON.
WARREN C. PHILBROOK.
JOHN B. MADIGAN.
MABTIiAm}— Court of Appeals.
A. HUNTER BOYD, Chibf JUWIB.
ABSOCI^TB JUDOBB.
JOHN P. BRISCOE.
N. CHARLES BURKE.
WIXJJAM H. THOMAa
JOHN R. PATTISON.
HAMMOND URNER.
HENRY STOCKBRIDGB.
ALBERT CONSTABLE.
intw HAMPSHIKE— Supreme Court
SlUNK N. PARSONS, CHim' JOBTioa.
ASBOCIATB JTTBTICBB.
BEUBEN B. WALKER.
JOHN E. YOUNG.
ROBERT J. PEASLEB.
WILLIAM A. PLUMMEB.
■EW JEBSET— Court of Errors and
Appeals.
EDWIN ROBERT WALKER, Chancbluw.
•WILLIAM S. GUMMERE, CBIxr JnsTICT.
HEW JEBSET— Court of Errors and Ap>
peals (Confd).
JTTBTICBB.
CHARLES G. GARRISON.
FRANCIS J. SWAYZB.
THOMAS W. TRENCHABD.
CHARLES W. PARKER.
JAMES J. BERGEN.
JAMES F. MTNTURN.
SAMUEL KALISCH.
CHARLES C. BLACK.
JUDOBS.
JOHN J. WHITE.
HENRY S. TERHUNB.
ERNEST J. HEPPBNHEIMHR.
ROBERT WILLIAMS.
FRANK M TAYLOR.
WALTER P. GARDNER.
Court of Chancery.
BDWIN ROBERT WALKER, CRANoaiXOB.
yiCB CHA1ICBI.I.OB8.
FREDERIC W. STEVENa
BUGENB STEVENSON.
EDMUND B. LEAMINQ.
VIVIAN M. LEWIS.
JOHN H. BACKES.
JOHN GRIFFIN.
JOHN E. FOSTER.
MERRITT LANB.
Supreme Court.
WILLIAM 8. GUMMERE, CKIBF TomOM.
ASBOCIATB JUBTICZS.
CHARLES G. GARRISON.
FRANCIS J. SWAYZE.
CHARLES W. PARKER.
THOMAS W. TRBNCHARIX
JAMES F. MINTURN.
JAMES J. BERGEN.
SAMUEL KALISCH.
CHARLES C. BLACK.
Prerogative Court.
EDWIN ROBERT WALKER, OBDlNioy.
TICB OBDIMABIBS.
FREDERIC W. STEVBNa
EUGENE STEVENSON.
EDMUND B. LEAMINQ.
VIVIAN M. LBWia
JOHN H. BACKES.
JOHN GRIFFIN.
JOHN E. FOSTER.
MERRITT LANE.
PEmrSTIiVAmA— Supreme Courb
J. HAY BROWN, Caar SvevKm.
JTTBTICBS.
S. LESLIE MESTREZA
WILLIAM P. POTTER.
JOHN STEWART.
ROBERT MOSCHZISKER.
ROBERT S. FRAZER.
EMORY A. WALLING.
> Retired Marcb IE, UlT.
'Appointed March IS, 1917, to
Tliarar.
snooeed Joha M.
597919
(T)
• Died June 14, 1917.
• Appointed Chief Justice June 26, UIT.
• Appointed June 25, U17.
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101 ATIiANTIO RSIPOBTBB
RHODE IS]LAin>— Supreme Court.
O. FRANK FARKHURST, Chuf JuaTio,
ABSOCiATB JirsTicas.
WILLIAM H. SWEETTLAND.
WALTER B. VINCENT.
DARIUS BAKER.
CHARLRS F. STBARNa
VERMOITT— Supreme CourL
JOHN HENRT WATSON, ChibV JVaiKOk
AS80CUTB JUSTICSS.
SENECA HA8ELTON.
QEORGE M. POWERS.
WILLIAM H. TAYLOR.
WILLARD W. UUJQB.
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CASES REPORTED
Abrams. ISrana MarMe Go. of Baltimore
City ▼. (Md.) 964
Acamiiora v. Warner (Cono.) 832
AdehDan, SoiiHiiers t. (Conn.) 7
Adleman t. Ocean Accident A Guarantee
Corp. CMd.) B29
Adrian, In re (N. J. Prerog.) 52
Agricultural Soc. of Montgomery Countar y.
State (Md.) 139
Ahrena v. KeUy JN. J. Oh.) 571
Ains V. Hayes (Conn.) 570
Alexander t. Amwiean Exp. Oo. (Pa.).... 1060
Allen V. Scheib (Pa.) 102
Altoona & L. V. Electric R. Co., Hicks y.
(Pa.) 969
AmerKan Colonization Soc., SouUiby y.
(Md.) 780
American Exp. Co., Alexander y. (Pa.) . . . .1050
American Exp. Co., Dionne y. (Vt.) 209
Americ«n Exp. Co., Scott v. (Fa.) 9ti
American Piano Co. v. Knabe (Md.) 680
American Steriliser Co., >Iayer Bros. Const.
Co. V. (Pa.) 1002
Anderson, Bensel y. (N. J.) 262
Anderson y. Nelson (R. I.) 136
Antliracite Beer Co., Pennsylvania Cent.
Brewing Co. v. (Pa.) 925
Arcade Real Estate Co.. Hayes v. (Pa.) ... 850
Arlington Hotel Co., Joan W. Oooney Co. v.
(Del. Ch.) 879
Arliss, Gondit Be^ Sc Provision Co. y. (N.
J. Ch.) 172
Armbrecht y. Delaware, L. & W. B. Co.
(N. J.) 203
Arthur & Boyle y. Morrow Bros. (Md.). . . . 777
Ashby y. Butz (Pa.) 318
Atlantic City, Fennan v., five cages (N. J.)1054
Atlantic Coast Electric R. Co. v. State
Board' of l^axes and Assessments (N. 3,
Sup.) 64
Automobile Finance Co., Scully y. (Del. Gh.) 908
Babayan v. Reed (Pa.) 839
Baer v. Kahn (Md.) 506
Baiz v. Coro & La Vela R. & Imp. Co. (N.
J. Ch.) 395
Baker, Clark v. (Conn.) 9
Baker y. Roshford (Vt.) 769
Baldwin, Blue Ribbon Garage y. (Conn.). . 83
Baldwin y. Corbin (Conn.) 834
Baliman, Gischell v. (Md.) 698
Baltimore County 0>m'rB, Ludwig y. (Md.) 695
Baltimore & O. R. Co. v. Owens (Md.) 605
Bangor Power Co., Stairs v. (Me.) 206
Baneor Ry. & Electric Ck>., McKinnon y.
(Me.) 452
Barre Granite & Quarry Co., Corry y.
(Vt) 88
Barrett, Hardie y. (Pa.) 75
Barton y. Swainson (Md.) 607
Beacbey v. Heiple (Md.) 653
Beall y. Kew York & New Jersey Water Co.
(N. J. Ch.) 676
Beaver Trust Co., Brookville Title & Trust
Co. y. (Pla.) 944
Bedier v. Frederick W. Llppe Co. (Md.). . . 783
B«cker, Seitsinger y. (Pa.) 650
Beltz, Williams v. (Del. Super.) 905
Bensel v. Anderson (N. J.) 262
Berberich's Estate, In re (I'a.) 401
BergdoU's Ebtate, In re (Pa.) 950
Bergen v. Trimble (Md.) 137
Pas*
Bernard v. Whitefleld Tanning Oo. (N. H.) 489
Betterly v. Brattleboro St. BiOo. (Vt.) 441
Betts y. Massachusetts Bonding & Insur-
ance Co. (N. J.). 267
B. H. Gladding D17 Goods Co., IficGinn y.
CR. I.) 129
Bickford, Spofford v. (Me.) 470
Bickley v. Philadelphia & B. B. Co. (Pa.). . 664
Bixler v. Swartz ^a.) 647
Black v. Eastern Pennsylvania Bys. Co.
(Pa.) 644
Bfouin V. Greene (Vt) 443
Blue Ribbon Garage v. Baldwin (Conn.) ... 83
Board of Chosen Freeholders of Atlantic
County. Dolker v. (N. J.) S70
Board of Chosen IVeehoiders of Atlantic
County, Godfrey v. (N. J.) 67
Board of Chosen Freeholders of ESssex Oonn-
ty, DarviUe v. (N. J.) 276
Board of Chosen Freeholders of Esses Coun-
ty, Kelly v. (N. J. Sup.) 422
Board of Com'rs of Margate City, Horner
v. (N. J. Sup.) 868
Board of Conservation and Developmoit,
Society for Eistafalishlng Useful Manufac-
tures V. (N. J. Sup.) 1025
Board of Education of Bayonne, Scbwarz-
rook y. (N. J. Sup.) 394
Board of Fire Conors of City of Newark,
Durkin v. (N. J.) 1053
Board of Police Com'rs y. McClenehan
(Md.) 786
Board of Public Utility Com'rs, New York,
S. & W. R. Co. y. (N. J. Sup.) 49
Boehmv. Boehm (N. J. Gh.) 423
Bolden v. Greer (Pa.) 816
rtonaparte v^ Baltimore (Md.) 694
Bonee, De Wolf V. (Conn.) 233
Bookwalter v. Mt Union (Pa.) 953
Border City Garnetting Co, Rowe v. (R. 1.) 223
Borough of Dumont, Whitaker y. (N. J.
Sup.) 661
Borough of Haddon Heights y. Hunt (N. J.
Sup) 427
Borough of Hollidaysburg v. Snyder (Pa.) 955
Borough of Huntingdon v. Huntingdon Wa-
ter Supply Co. (Pa.) 989
Borough of Mt. Union, Bookwalter v. (Pa.) 953
Borst, Jersey City v. (N. J. Sup.) 1033
Boston & M. R. R., Clark v. (N. H.) 795
Boston & M. R. B., C<W8waU v. (N. H.) ... 145
Boston & M. R. R. v. c5oncord (N. H.). . ... 663
Boston & M. R. R., Sanderson v. (Vt). . 40
Boston & M. R. R. v. State (N. H.) 663
Boston & M. R. R. v. Union Mut Fire Ins.
Go. (Vt.) 1012
Bougie, Sherburne y. (Me.) 355
Bouquet v. Hackensack Water C!o. (N. J.) 379
Bradford v. Mackenssie (Md.) 774
Brady v. Baltimore (Md.) 142
Branigan v. Lederer Realty Corp., two
cases (B. IJ 122
Brattleboro St R. Co., Betterly v. (Vt). . . 441
Breidt Brewing Co. v. Weber (N. J.) 382
Brennaa, Commonwealth v. (Pa.) 947
Bricklayers', Masons' & Plasterers' Local
Union No. 1, Cohn & Roth Electric Go. v.
(Conn.) 659
Bringbnrst, Perkins v. (Del. Super.) 4.3S
BrinRhurst 8 Kstate, In re (Pa.) 7(56
Brink V. Flannagen (N. J.) 274
Bristol Patent Leather Co^ Wright y. (Pa.) 844
101 A.
(tU)
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TiU
101 ATLANTIO KBPOBTBB
Page
Brock, Rolllna v. (N. H.) 636
BrookviUe Title & Trust Oo. v. Beaver
Trust Co. (Pa.) 944
Brotherhood Accident Ca, Bulkeley y.
(CkMin.) 92
Brown, Cox v. (N. J. Oh.) 260
Brown, Kine v. (N. H.) .- 627
Brown, Kuehne v. (Pa.). 77
Brown, Lafouotain & WoolMn Co. t. (Yt) 86
Browne t. Park Cemeter; (N. H.) 34
Brunetti, Grand! v. (N. J.) 1054
Brunsman t. Crook (Md.) .1019
Bucher y. Federal Baseball Club of Balti-
more (Md.) 634
Bulkeley v. Brotherhood Accident Co.
(Conn.) 92
Bupp y. Kleitz (Del. Ch.) 878
Burgess Jc Town Council of Borough of
Cliiunl«!i-sburg v. Chambersburg & G. Elec-
Uic a Co. (Pa.) 922
Burlington County Farmers' Ezch., Stuart
y. (N. J.) 265
Bums, Gallon y. (Conn.) 504
Burr y. Ellis (Conn.) 17
Butler y. Butler (R. I.) 115
Butler y. Flint (Conn.) 19
Butterfield, Woodman v. (Me.) 25
Butz,Ashby V. (Pa.) 318
CahiU y. West Hoboken (N. J. Sup.) 417
Campbell, Lansing v. (R. t.) 1
Camaggio y. Chapman (Md.) 672
Carpenter y. Carpenter (N. H.) 628
Carr v. Cranston Print Works Co. (B. I.) 120
Carr, HUl v. (N. H.) 525
Carson y. Scully (N. J.) 2S9
Carson v. Scully, two cases (N. J.) 295
Carson, Wood y. (Pa.) 811
Carter y. Rowe (Conn.) 491
Carter y. Suburban Water Co. (Md.) 771
Carville v. Lane (Me.) 968
Castelli, State y. (Conn.) 476
Cavalry Club of Rhode Island, Richards y.
(R.L) 222
Caveny v. Curtis (Pa.) 853
Cecil Hochscbild v. (Md.) 700
Central R. Co. of New Jersey, Collins y.
(N. J.) 287
Central R. of New Jersey, Rounsaville v.
(N. J.) 182
Central Vermont JR. Co., Howe v. (Vt.) 45
O. Q. Gawthrop Co. y. Fibre Specialty Co.
(Pa.) 760
Chamberlain's Estate, In re (Pa.) 814
Chambersburg & G. Electric R. Co., Bur-
gess & Town Council of Borough of Cham-
bersburg V. (Pa.) 922
Chance Marine Const. Co., Cromwell y.
(Md.) 623
Chandler, Edmonds y. (Pa.) 459
Chapman, Carnaggio y. (Md.) 672
Chappell, Newport Trust Co. y. (R. I.) ... 323
Charles Krucben Co. v. Paterson (N. J.).. 254
Chellis V. Cole, two cases (Me.) • 444
Chelten Trust Co., Schwehm y. (Pa.) 93
Chesapeake & Potomac TeL Co. of Balti-
more City, City of Baltimore y. (Md.). . . . 677
Chew y. Philadelphia (Pa.) 915
Christie's Estate, In re (N. J. Prerog.). .. 64
Christy y. New York Cent & H. B. R. Ca
(N. J.) 372
Church, Whitney Co. y. (Conn.) 329
City of Baltimore, Bonaparte v. (Md.) 594
City of Baltimore, Brady y. (Md.) 142
City of Baltimore v. Chesapeake & Potomac
' Tel. Co. of Baltimore City (Md.) 677
City of Baltimore, Patterson v. (Md.) 689
City of Baltimore y. Scott (Md.) 674
City of Barre, Collins v. (Vt.) 43
City of Carbondale, Schmitt v. (Pa.) 755
City of Concord, Boston & M. R. R. y. (N.
H.) 6e.<l
City of Concord, Town of TUton y. (N. H.) 144
City of Erie, Appeal of (Pa.) 996
City of Keene, Leslie v. (N. H.) 661
Face
CSty of Newark, New York TeL Oo. T. (N.
J. Sup.) 891
City of New Haven, Hott y. (Conn.) 498
City of New Hayen, Town of Hamden y.
(Conn.) 11
City of Paterson, Charles Krucben Co. t.
(N. J.) 254
City of Paterson, Duflfy y. (N. J^ 416
City of Paterson, Koettcgen v. (N. J.) .... 268
City of Paterson, Riverside Turn Verein
Harmonie v. (N. J.) 254
City of Philadelphia, Chew y, (Pa.) 916
City of Philadelphia y. Conway (Pa.) 472
City of Pittsburgh, Stanton v. (Pa.) 822
City of Wilkea-Barre, Commonwealth y.
(Pj^\ j^ ^ ^ ^ 929
City of Wilkra-Barre,' ReiUy' v.' (Pa.)* '.'.'.'.'.'. 954
Clark y. Baker (Conn.) 9
Clark y. Boston & M. R. R. (N. H.) 796
Clark y. Clark (N. J. Ch.) 300
Cleaver, Morgan v. (Md.) 610
Oements, Loeblein y. (Md.) 693
Clifford, Farnham v. (Me.) 468
Clinton Iron & Sted Co., Pittsburgh & L.
E. R, Co. y. (Pa.) 1048
Cloud, Stiles & Work v. Williams (Pa.). .. 732
Coast & Lakes Contracting Corp. y. Martin
(Conn.) 502
Coatesville Boiler Works, Ruger y. (Pa.). . . 639
Coatesville Boiler Works, Setter y. (Pa.).. 744
Cogswell y. Boston & M. R. R. (N. H.)... 146
Cohn & Roth Electric Co. v. Bricklayers',
Masons' & Plasterers' Local Union No. 1
(Conn.) 650
Cole, Chellis y., two cases (Me.) 444
Collins V. Barre (Vt.) 48
Collins V. Central R. Co. of New Jersey
(N. J.) 287
Commercial Casualty Itia. Co. of Newark,
Gross V. (N. J.) ..,.., 180
Commissioners of Palisades Interstate Parl^
Ross. y. (N. J. Sup.) 60
Common wealtli, Appeal of (Pa.) 316
Commonwealth, Appeal of (Pa.) 840
Commonwealth, Appeal of (Pa.), 1062
Commonwealth v. Urennan (Pa.) 947
Commonwealth y. Haines (Pa.). . .' 641
Commonwealth, Jooa v. (Pa.) 464
Commonwealth v. Keystone Graphite Co.
(Pa.) 766
Commonwealth y. Koontz (Pa.) 863
Commonwealth y. Lapriesta (Pa.) 637
Commonwealth y. Mamatey (Pa.) 731
Commonwealth . y. Matter (Pa.) 649
Commonwealth y. Miller (Pa.) 1006
Commonwealth y. Reese (Pa.).... 949
Commonwealth, Saeger y. (Pa.) 999
Commonwealth y. Scherr (Pa.) 940
Commonwealth y. Schwartz (Pa.) 90
Commonwealth y. Staush (Pa.) 72
Commonwealth v. Verhovay Aid Ass'n
(Pa.) 03i
Commonwealth y. Wilkes-Barre (Pa.). .... 920
Commonwealth Trust Co., Lebanon valley
ConsoU Water Supply Co. v., (Pa.) 6S0
Condit Beef & Provision Co. y. Axliss (N.
J. Ch.) 172
Connecticut Co., Ott y. (Conn.) 486
Connecticut Co., Turner y. (Conn.) 88
Connecticut River Power Co. of New
Hampshire, Spencer y, .(N. H.) 628
Connell, Edelman v. (Pa.) 658
Conway, City of Philadelphia y. (Pa.) 472
Conway's Estate, In re (Pa.) 652
Coombs V. Fessenden (Me.) 466
Cooney v. Rushmore (N. J.) 1053
Cooney Co. V. Arlington Hotel Co. (Del.
Ch.) 870
Corbin v. Baldwin (Conn.) 834
Oordano. Appeal of CC?nn.) 85
Core & La Vela B. & Imp. Co., Baiz r. (N.
J. Ch.) 305
Corry v. Barre Granite & Quarry Co. (Vt) 38
Cosmos Building & Loan Ass'n y. Courte-
nay (Pa.) 816
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GABBS BSPOBTJUD
Pas*
Conrteaay, Ooamoi BulIdiiiK ft'Ioan An^n
V. CPaO 818
Cox T. Brown (N. J. Ch^ 260
Cramer, PeopJe'a Nat. Bank v. (N. J.)". ... 204
Cranston Print Works Co., Carr t. (B. I.) 120
Crockett, Lemaire v. (Me.) 802
GromweU t. Chance Marine Omst. Co.
(Md.) 623
Crook, BrunBman v. (Md.) 1010
Cropaey v. Cropaey (N. J. Ch.) 175
CroBsley, KitcheU v. (N. JO 179
Crown Garage Ca, Cartis-Xoang Co. v. (R.
I.) 136
Croeer's Estate, In re (Pa.) : . . . 801
Oillen T. Stoutth (Pa.) 937
Camberland County Power & Light Co.,
Tnttle V. (Me.) 461
Conningbam, Ireson y. (N. J.) 49
Curtis. Careny y. (Pa.) 853
Curtis, TibbetU v. (Me.) 1023
Curtis. Vide y. (Me.) 966
Curtis- Young Co. y. Crown Garage Co.
(EL I.) 7. 136
Da Gama y. IVAquila (N. 3. Ch.) 1028
Daly y. Garven (N. J.);. 272
D'Aquila, Da Gama y. (N. J. Ch.) 1028
DaryiUe y. Board of CJhosen Freeholders of
Essex County (N. J.) 275
Dashiff, Schwartz y. (ponn.) 680
Dayenhill, Ewalt V. (Pa.) 756
Dayis, Mills y. (Cons.) 667
Dayis, State y. (MeJ 208
Ddaware, L. & W. K. Co., Armbrecht y. (N.
J.) 203
Delaware^ I<. & W. R. Co., L'Hommedien
y. (Pa.) 933
Delaware, L. & W. B. Co., Sprotte y. (N.
J.) 618
Delaware, L. & W. R. Co., Stone y. (Pa.). . 813
Delaware, U & W. R. Co., ZeneU y. (Pa.) 809
Delaware & Hudson Co., Griffin y. (Pa.) . . 750
DelemoR, Mereness y. (Conn.) 8
De liukacsevics y. De liukacsevlca (N. J.
Ch.) 407
Department of Health of New Jersey t.
Monheit (N. J. Sup.) 413
D'Espard y. Fritz Schuiz Junior Co. (N.
J. Ch.) 178
D'Espard, Posselt y. (N. J. Oh.) 178
De Wolf y. Bonee (Conn.) 233
De Wyngaert, Wiebke y. (N. J. Ch.) 410
Dicus y. Dicns (Md.)...^ 697
Dionne y. American Szp. Co. (Vt.) 209
Disston's Estate, In re (Pa.) 804
Dittman's Bz'rs, In re (N. J. Prerog.) 66
Doberty v. Russell (Me.) 306
Dolker y. Board of Chosen Freeholders of
Atlantic County (N. J.) 870
Donnell, Lembo y. (Me.) 469
Dooling, Appeal of (Pa.) > 314
Doremns, Wolcott y. (DeL Oh.) 868
Donia y. Lyoo (Conn.) 490
Doten, Smith y. (Me.) 1058
Dougherty y. Philadelphia Rapid Transit
Co. (Pa.) 844
Downs, MeNemey y. (Conn.) 494
Da Boi%^ Hammond y. (Md.) 612
DnS y. Pmdendal Ina-. Co. ot America (N.
J.) 871
T>ati y. Paterson (N. J J 416
Du PoBt De Nemours Powder Co. y. Spo-
ddio (N. J. Sup.) 407
Dnrkin y. Board of Fire Oom'rs of City of
Newark (N; J.) 10B3
Eastern Peunsylyanta Rya. Co., Black y.
(Pa.) 644
Eastman. Vermont Marble Co. y. (Vt). . . . 161
Easton Transit Co., Township at Wilson
y. ff'a.) 983
JEJast Ridgelawn Cemetery, PaRsaic Trust &
Safe Deposit Co. y. (N. J. Ch.) 1026
Eberling y. MntlUod, two cases (N. J.)... 619
Ediazd. ManteU y. (Va.) 1049
Pace
Eckert y. Wc«t Orange (N. J.) 260
Edelman y. CkvinelllPa.) 663
Edison, Inc., Orillo y. JN. J.) 171
Edmonds y. Chandler (Pa.) 459
Edwards, MaxweU y. (N. J.) 248
Edwards y. Petry Q?. J.) 105
Edwards, Security Trust (3o. y. (N. J.) . . . . 383
Edwards, Security Trust Co. y. (N. JJ 384
E. I. Du Pont De Nemours Powder Co. v.
Spocidio (N. J. Sup.) 407
Eiseie y. Raphael (N. J.) 200
Elk Tanning Q)., Frite y. (Pa.) 958
EUeford, Handel A Haydeu Building &
Loan Ass'n y. (Pa.) , 951
EUiott y. Jones (DeL Ch.) 872
EUiott y. Jones (Del. Ch.) 874
BUis, Burr y. (Conn.) 17
Ellis y. Pennsylyania R. Ca (N. J. Sup.) 416
EJmery, Staples y. (Me.) 721
Equitable Trust 0>. v. Kent (Del. Ch.).. 876
Erie County Pomona Grange No. 4- y. Wales
(Pa.) 998
Brie B. Co., Malone y. (N. J. Sup.) 416
Erie R. Co., Materka y. (N. J. Sup.) 69
Erie R. Co., Stamford Rolling Mails Co. y.
(Pa.^ 823
EispoBito y. Tammaro (Conn.) 23
Estabrooks y. Estabrooks (Vt.) 584
Eugster y. Eugster (N. J. Ob.) 575
Eyans Marble Co. ot Baltimore City y.
Abrams (Md.) 064
Ewalt y. Dayenhill^a.) 766
Fague y. Lee (R. L) 7
Fairview Deyelopment Co. y. Fay (N. J.
Sup.) 406
Fairview Heights Cemetery Ca y. Fay (N.
J. Sup.) 406
Ftomers' 4 Miners' Trust Oa, Beynolds-
yille Water Co. y. (Pa.) 800
Farnham y. Clifford (Me.) 468
Famum y, Pennsylyania Ca for Insurance
on Liyee, Etc. (N. J.) 1053
Farrand, Rankin y. (Me.) 833
Fay, Fairview Deydopment Go. y. (N. J.
SnpO 406
Fay, Fairview Heights Ometery Ca y. (N.
J. Sup.) 406
Federal Baseball Club of Baltimore, Bucher
V. (Md.) 634
Fennan v. Atlantic City, five cases (N. J.) 1064
Fessenden, Coombs y. (Me.) 466
Feussner y. Wilkes-Barre & H. R. Co.
(Pa.)
Mbr -
Fibre Specialty Co., C. G., Uawthrop Oa y,
(Pa.) 760
Fidelity Trust Co. of Baltimore, Md., Sum-
mit Silk Co. y. (N. J. Ch.) 678
Fiedler V. Parmly (N. J. Sup.) 891
Finkelman, Maine Mill Supply Co. y. (Me.) 833
First Nat Bank v. Parker (N. J.) 276
Fisdier y. Taylor (Pa.) 818
Fisher, Medoff y. (Pa.) 471
Fisher y. T. W. Griffith Realty Oa &(. J.
Oh.) 411
Fisher, Wills y. (Pa.) ,. 818
Fitzgerald, Rose v. (N. J.) 202
Flanagan, Appeal of (Pa.). 7<J6
Flannagan, Brink v. (N. J.) 274
Flather Foundry Co. v. Murphy (N. H.)... 357
Fletcher, State v. (N. J.) 181
Flint, Butler v. (Conn.) 19
Flusser, Hirscbberg y. (N. J. Ch.) 191
Flynn y. New York, S. & W. R, Co. (N. J.
Sup.) 1084
Foote, Massey y. (Conn.) 499
Ford v. Lehigh & Wilkes-Barre Coal Co.
(Pa.) 958
Forte ▼. G. B. Markle Co. (Pa.) 941
Ft. Orange Barberlng Ca y. New Haven
Hotel Cd. (Conn.). . . 805
Forty-Four Cigar Co. Fox y. (N. J.) 184
Four Ck)rners Building & Loan Ass'n of
Newark v. Schwarzwaelder (N. J. Oh.) 564
Fox y. Fort^-Four Cigar Ca (N. JJ 184
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Fox Cihase Bank v. Wayne Jnnction Trust
Co. (Pa.) 9T9
Franklin Paper Mills Co., Stratford t.
(Pa.) 849
Fraser v. Fraser (N. J.) 58
Frederick W. Lippa Co., Becker t. (Md.J . . 783
Freeman y. Van Wajenen (N. J. Sup.) . . 55
French & Son, Limpert Bros. t. (N. J.) . . . . 263
Frey, McNeUl v. (R. I.) 7
Fritz V. Blk Tannine Co. (Pa.) 958
Fritz Sdiulz Junior Co., D'Espard ▼. (N. J.
Ch.) 178
Fulton County Bank t. Swope (Pa.).... 956
FuBco Const Co., Title Guaranty & Sure-
ty Co. t. (N. J.) 248
Gaffney t. Illingsworth (N. J.) 243
Gagne ▼. Massachusetts Bonding ft Insur>
ance Co. (N. H.) 212
Qagnon y. Rhode Island Co. (R. I.) 104
Gallon ▼. Bums (Conn.) 604
Oamsey ▼. Garnsey (Me.) 447
Garven, Daly v. (N. J.) 272
Gaulin, Marands t. (R. I.) 321
Gawthrop Co. v. Fibre Specialty Co. (Pa.) 760
G. B. Maritle Co., Forte t. (Pa.) 941
Geissler v. Lauther (Pa.) ft48
Gelssler t. Reading Trust Go. (Pa.) 797
Geloso, Rochester Distilling Co. ▼. (Conn.) 500
George, Gromer r. (N. J.) 263
Getchell, Reddington t. (U. 10 1^
Gllroy, Appeal of (Pa.) 632
Girard Trust Co., Appeal of (Pa.) 311
Gischell v. Ballman (Md.) 698
Gladding Dry Goods Co., McGinn v. (B. I.) 129
Gluckman's Will, In re (N. JJ 295
Godfrey y. Board of Chosen Freeholders of
Atlantic County (N. J.) 67
Godstrey, Nell y. (N. J.) 50
Goldstein y. Goldstein VN. J.) 249
Gould, Rosenzwog y. ^d.) 665
Graham, Harroun y. (Pa.) 985
Grand Fraternity, Appeal of (Pa.) 1000
Grandi y. BrunettI fN. J.) 1054
Great Eastern Casualty Co., Wells y. (R. I.) 6
Greenbaum, Wame y. (N. J. Cb.) 568
Greene, Blouin y. (Vt.) 443
Greene, sfatersyille Finishing Co. y. (B. I.) 226
Greer, Bolden y. (Pa.) 816
Griffin y. Delaware & Hudson <3o. (Pa.). .. 750
Griffith Realty Co., Fisher y. (N. J. Ch.).. 411
Grillo V. Thomas A. Edison, Inc. (N. J.J. . 171
Gring, Sinking Spring Water Ck). y. (Pa.). . 732
Gromer y. George (N. J.) 263
Gross y. Commercial Casualty Ins. Co. of
Newark (N. J.) 169
Guarrala y. Metropolitan Life Ins. Co.
(N. J.) 298
Guarrala v. Metropolitan Life Ins. Co.
(N. J.) 300
Gude Co., New York y. Newark Sign Co.
(^ j\ 332
Qm Reiining Co., Washington V. (Pa.) ".'.". .317
Hack y. Shoylin (Pa.) 956
Hackensack Water Co., Bouquet y. (N. J.) 379
Hahne & Co., Robt. H. lugersoll Se Bro. t.
(N. J. Ch.)... 1030
GUiines, Commonwealth y. (Pa.) 641
Baines Home for A^ed People y. Keene (N.
J. Ch.) 612
Hallstead, Appeal of (Pa.) 758
Halpren, Perkins y. (Pa.) 741
Hamilton CVtrp. y. Julian (Md.) 558
Hammond y. Du Bois ()Id.) 012
Hammond y. Hammond (Pa.)'. 855
Hancock, Appeal of (Pa.) 934
Handel & Hayden Building &, Loan Ass'n
y. EUeford (Pa.) 951
Hanigan y. Philadelphia & R. R. Co. (Pa.) 640
gardle y. Barrett (Pa.) 78
arford County Com'rs, Postal Telegraph
Cable Co. y. (Md.) 600
Harleigh-Brookwood Coal (!!o.. Mountain
CSty Water Co. at FnckylUe t. (Pa.). .. 734
Harper t. FhiladdpUa Bapld Tntiudt Go.
(Pa.) 1004
Harroun y. Graham (Pa.) 986
Hart, State T. (N. J.) 278
Hayes, Alns y. ((>>nn.) 579
Hayes y. Arcade Real Estate Co. (Pa.) 850
Heiple, Beachey y. (Md.) 663
Henderson y. Henderson (Md.) 601
Henschke y. Moore (Pa.) 308
Henschke y. Moore (Pa.) 311
Heyniger y. Leyinsohn (N. J. Ch.) 188
Hicks y. Altoona & L. V. Electric R. Ca
(Pa ) • 969
Hill ▼. darr* (N.'S.)**.*.'*.*.".*.*.'.'.'.'.".'.'.*!! 625
HIU y. Keezer (Me.) 856
Hilliard, Wilson y. (Md.) '. 603
Hirschberg y. Flusser (N. J. Ch.) 191
HochschUd y. Cecil (Md.) 700
Hoen y. KixU (Md.) 782
Hoff y. Public Service R. Co. (N. J. Sup.) 404
Hoffmann, In re (Pa.) ....1052
Hogsett y. Thompson (Pa.) 941
Hogsett y. Thompson (Pa.) 844
Home Ins. Oo. of New Tork, Swiller ▼.
(N. J.) 616
Rome Life Ins. Co. of America, Kingston
y. (Del. Ch.) 893
Hop, State y. (N. J. Sup.) 381
Hope y. Kelley (Pa.) 978
Homer y. Board of Com'rs of Margate Cit7
(N. J. Sup.) 368
Hott y. New Haven (Conn.) 498
House of Good Shepherd in City of Phila-
delphia, Appeal of (Pa.) 817
Howe y. Ontral Vermont E. Oo. (Vt).... 45
Hubbard v. Hubbard (Md.) 772
Hnber, Jersey City y. (N. J.) 378
Huddy's Estate, In re (Pa.) 818
Hudson & M. B. Co., Jersey City v. (N. J.) 266
Hughes y. Hurley (N. J. Ch.) 197
Humphrey y. Wheeler (Vt) .• . . .1018
Hunt, Borough of Haddon Hdghta t. (N.
J. Sup.)_ 427
Hunter's Estate, In re (Pa.) 79
Huntingdon Water Supply Ca, Borough ot
Huntingdon y. (Pa.) 989
Hurley, Hughes y. (N. J. Ch.) ^ 197
Illingsworth, Gaffney y. (N. J.) 243
Illinois Finance Co. y. Interstat* Rural
Credit Ass'n (Del Ch.) 870
Improved Building & Loan Ass'n r. LaiUn
(N. J. Ch.) , 1043
Ingersoll & Bro. v. Hahne & Co. (N. J.
Ch.) 1030
Inhabitants of City of Trenton, Trsoton &
Mercer County Traction Corp. y. (N. J.
Sup.) 663
InhaDitants of Ewlng Tp.< Trenton &
Mercer (3ounty Traction Corp. ▼. (N. J.
Ch.) ' 1037
Inhabitants of Town of Leeda^ McCarthy
v., two cases (Me.) 448
International Paper Co., Zobes y. (Me.). .. 24
Interstate Rural Credit Ass'n, IllinoiB Fi-
nance Co. y. (Del. Cb^ 870
Ireson y . (Cunningham (N. J.) 49
Italian Mut Ben. Soc., Steftanazsi T. (Vt) 1010
Ivison's Estate. In re (^) 644
Jackson v. Myers (Pa.) 841
Jefferson, State y. (N. J.). 569
Jenkins, Western Nat Bank y. (Md.).... 667
Jcnkinson y. Parmly (N. J. Sup.) 390
Jennings, Metropolitan Life Ins. Co. y.
(Md.) 608
Jerolamon y. Belleville (N. JJ 244
Jersey City y. Borst (N. J. Sup.) 1033
Jersey City y. Ruber (N. J.) 378
Jersey City y. Hudson & M. R. Co. (N. J.) 206
Jersey City y. Thorpe (N. J.) 414
J'ob Haines Home for Aged People v.
Keene (N. J. (Jh.) 612
Johnson, Messick y. (Del. Ch.) 865
Johnson, Piatt y. (N. J. Ch.) 1035
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John W. Cooney CSo. r. Arlington Hotel Oo.
(DeL Cb.) 879
Jones, ElUottT. (Del. Cb.) 872
Jones, EUiott v. (Del. Ch.) 874
Joes ▼. Commonwealth (Pa.) 454
Joseph V. Nnylor (Pa.) 846
Julian, Hamilton Corp. ▼. (Md.) 658
Junk, Prantl v. (N. J.) 56
Kahn, Baer ▼. (KTd.) 596
Kane, State v. (Del.) 239
Kane Mfg. Co., Wood ▼. (Pa.) 78
Kannia, Milford Water Co. v. (Conn.) 476
Kazarian Bros. v. Providence-Washington
Ins. Oo. (R. I.) 221
Keeler, Plum Trees Lime Oo. v. (Conn.).. 609
Keene, Job Haines Home for Aged People
V. (N. J. Ch.) 612
Keezer, Hill v. (Me.) 356
Kelley, Hope t. (Pa.) 978
Kdly, Ahrens v. (N. J. Ch.) 671
Kelly T. Board of CSiosen EYeehoIders of
Essex County (N. J. Sup.) 422
Kelsea v. Phoenix Ins. Co. (N. H.) 362
Kent, Equitable Trust Co. v. (Del. Oh.) 875
Ketcham v. Land Title & Trust Go. (Pa.). . . 764
Keystone Graphite Co., C!ommonwealth ▼.
(Pa.) 766
Kidd, Hoen v. (Md.) 782
King V. Brown (N. H.) 627
King V. Thompson (Me.) 724
Kingston V. Home Life Ins. Co. of Amer-
ica (Del. Ch.) 898
Kingston t. Wilson (B. I.) 109
Kinney, Rice v. (Pa.) 344
Kiistein v. Philadelphia & B. B. (30. (Pa.). . 838
KiteheU T. Crosaley (N. J.) 179
Kleitz, Bupp V. (DeL Ch.) 878
Klemmer, Frovident life & Trust Co. ▼.
(Pa.) 351
Knabe, American Piano Co. t. (Md.) 680
Koenigsberger y. Mial (N. J.) 184
Koettegen t. Paterson (N. JJ 253
Koontz, Commonwealth t. (Pa.) 863
Konnan v. Trainer (Pa.) 1051
Kruchen Co. v. Paterson (N. J.) 254
Kaehne ▼. Brown (Pa.) 77
LacoBS y. Lebanon (N. H.) 864
Ldfountain & Woolson Co. t. Brown (Vt) 36
Lambert v. Vare (S. J. Ch.) 726
Land Title & Trust (3o., Ketcham v. (Pa.) 764
Lund Title & Trust C!o. v. McGarrity (Pa.) 829
Land Title & Trust Co. v. Shoemaker (Paj 335
Lane, Carville t. (Me.) 968
Lang T. Wilmer (Md.) 706
Lansing v. Campbell (R. I.) 1
JUapinco v. Philadelphia & R. R. Co. 0?*-) 767
Lapriesta, Commonwealth v. (Pa.) 637
Larkin, Improved Building & Loan Ass'n y.
(N. J. ChO 1043
Latham & Crane, Osterhout t. (Conn.) .... 494
Latham & Crane, Swanson t. (Conn.).... 492
Lauenstein t. Lauenstein (N. J. Ch.) 193
Lauther, Geissler v. (Pa.) 648
Lawrence ▼. Prosser (N. J. Ch.) 1040
Lawrence, Thrasher v. (N. H.) 636
Lebanon Valley ConsoL Water Supply Oo.
v. Commonwealth Trust Co. (Pa.) 630
Lederer Realty Corp- Branigan t., two cas-
es (R. I.) 122
Lee, Fague v. (R. I.) 7
Lee y. Leitch (Md.) 716
Lee, Ostman y. (Conn.) 23
Lehigh Valley Cx>al Ciy., McMennimen t.
(Pa.) 735
Lehigh Valley B. Co, of Mew Jersey, Ugbt-
cap V. (N. J.) 187
Lehigh VaUor Tmst Oo. y. Strausi (Pa.).. .1047
Lehigh & WUkes-Barre Coal C!o., Ford t.
(P^) .: 958
Leitch, Lee r. (Md.) 716
Lemaire v. Crockett (Me.)... 302
Lembd y. Donnell (Me.) 469
Fag*
Leottl V. Philadelphia Maeuoni Oo. (Pa.) 802
Leslie V. Keene (N. H.) 661
Levinsohn, Heyniger v. (N. J. Ch.) 189
L'Hommedieu v. Delaware, L. & W, B. Co.
(Pa.) 988
Lightcap y. Lehigb Valley B. Co. of New
Jersey (N. J.) 187
Limpert Bros. y. B. M. French & Son
(N: J.) 263
Lipps Co., Beckery. (Md^ 783
Lipsitz, Worthington y. (Md.) 626
Little, Pricey. (Pa.) 645
Loeblein v. CJlements (Md.) 693
Long Dock Co. y. State Board of Taxes and
Assessments, two cases (N. J.) 367
Long Dock Co. y. State Board of Taxes and
Assessments, two cases (N. J.) 368
Long, Price v. (N. J. Ch.). 195
Loughran's Estate, In re (Pa.) 817
Love, Appeal of (Pa.) 827
Loveland v. McKeever Bros. (N. J.) 877
Liidwig v. Baltimore County Com'rs (Md.) 695
Lung v. Sutton (Pa.) 458
Lyon, Dorus v. (Conn.).... 490
Lyons v. Walsh (Conn.) 488
McAlpine y. McAlpine (Me.) .1021
Macan, Jr., Co., Scandinavia Belting (3o. y.
(P^\ ...7.. ... 997
McAvoy] State v.', two "cases" (B. 'l.) .* ! ! ! II 109
McCarthy v. Leeds, two cases (MeJ 448
McCarthy v. West Hoboken (N. J. Sup.). . 417
McCauley's Estate, In re (Pa.) 827
McCIenehan, Board of Police Com'rs y.
(Md.) 786
McClure, Smith y. (P«l) 347
McCoach y. Sheehan (Pa.) 829
McCoy, Appeal of (Pa.) 946
McDermott v. Woodhouse (N. J.) 375
McGarrity, Land Title & Trust Co. v. (Fa.) 829
McGaw, In re (N. J. Prerog.) 421
McGee, McLaughlin y. (Md.) 682
McGinley v. Philadelphia & R. B. Co. (Pti.) 826
McGinley's Estate, In re (Pa.) 807
McGinn y. B. H. Gladding Dry Goods Co.
(R. I.) 129
McHale v. Toole (Pa.) 988
Mack, Stamford Trust <3o. y. (Conn.)...'.. 236
McKeever Bros., Loveland y. (N. J.) 377
McKeuna v. Vernon (Pa.) 919
Mackenzie, Bradford v. (MdO 774
McKinnoD v. Bangor By. & Electric (3o.
(Me.) 462
McTvaughlin y. McGee (Md.) 682
McMennimen y, Lehigh Valley XToal (3o.
(Pa.) 735
McMurray's Estate. In re (Pa.) 646
McNeill y. Frey (R. L) 7
McNemey v. Downs (CoonA 494
Mad River Co., State v. (Clonn.) 496
Maprier v. Philadelphia & K. R. Co. (Pa.). . 731
Magnire t. Preferred Realty Co. (Pa.) 100
Maine Mill Supply Co. v. Finkclman (Me.) 833
Maley v. Pennsylvania B. Co. (Pa.) Oil
Malone v. Erie R. (3o. (N. J. Sup.) 416
Mamatey, Commonwealth v.^Pa.) 731
Manchester Tp. Sup'rs v. Wayne Connty
Com'rs (Pa.) 736
Manchester Traction, Light & Power Co.,
Thompson & Nesmith y. (N. H.) 212
Mancinf. State V. (Vt.) 681
Maniatakis' Estate, In re (Pa.) 920
Mantell y. Echard (Pa.) 1049
Marandft V. Gaulin (R. I.) 321
Maikee v. Reybum (Pa.) 003
Markle Co., Forte v. (Pa.) 941
Marquis, Weil v. (PaO 70
Marshall, Nazareth Foundry & Machine Co.
y. (Pa.) 848
MarshaU, York y. (Pa.) 820
Martin, Coast & Lakes Contracting Corp. y.
. (Conn.) 602
Martin V. Woodbridge Tp., Middlesex Coun-
ty (N. J. Sup.) 418
Martone, Tiemey T. (Conn.) 407
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Maseachuaetta Bonding & Insurance Co.,
Betts V. (N. J.), 257
Massachusetts Bonding & Insurance Co.,
Gagne V. (N. H.) 212
Massey v. Foote (Conn.) 4i>9
Materka v. Brie R. Co. (N. J. Sup.) 6i>
Matiser, Appeal of (Pa.) 955
Matter, Commonwealth v.- (Pa.) 648
Maxwell v. Edwards (N. J.) 248
Mayer Bros. Const. Co. t. American Ster-
ilizer Co. (Pa.) 1(X)2
Medoff V. Fisher (Pa.)... 471
Mereness v. Delcmos (Conn.) 8
Merkel v. Merkal (N. J.) 1054
Merryman v. Wheeler (Md.) S.'Jl
Me.ssick v. Johnson (Del. Ch.) 866
Metropolitan Life Ins. Co., Guarraia y.
(N. J.) 298
Metropolitan life Ins. Co., Guarraia t.
(N. 3.) 800
Metropolitan liife Ins. Co. v. Jennings
(Md5 608
Mial, Koenigsberger -y. (N. J.) 184
Michael v. Minchln (N. J.) 283
Mil ford Co. v. Short (Del. Super.) 238
Milford Water Co. y. Kannia (Conn.) 475
Miller, Commonwealth v. (Pa.) 1006
Miller v. Trustees of Trinity Union Meth-
odist Episcopal Church (R. I.) 106
Miller v. West Jersey & S. S. R. Co. (Pa.). . 7fi8
Mills T. Davis (Conn.) 657
Milner, More v. (N. J.) 380
Minchin, Michael v. (N. J.) 283
Miners' Bank of Wilkes-Barre, In re (Pa.) 934
Mitchell, Wilhelm v. (Md.) 785
Mitton, Wilson v. (Pa.) 316
Monetti, State v. (N. J.) 206
Monheit, Department of Health of New Jer-
sey V. (N. J, Sup.) 413
Moore, Appeal of (Pa.) 310
Moore, Appeal of (Pa.) 818
Moore, Henschke v. (Pa.) 308
Moore, Henschke t. (Pa.) 31 1
Moran t. Tucker (R. I.) 327
More ▼. Milner (N. J.) 380
More V. Richards (N. J.) 3S0
More V. Silver (N. J.) 3S0
Morgan v. Cleaver (.NId.) tilO
Morrow Bros., Arthur & Boyle t. (Md.) . . . 777
Mosby, Thoencbe v. (Pa.) 98
Mountain City Water Co. of Frackville v.
Harleigh-Brookwood Coal Co. (Pa.) 734
Mulhem v. Philadelphia Home-Made Bread
Co. (Pa.). 74
Murphy, Flather Foundry C5o. v. (N. H.).. 357
Murphy, Nashua Co-op. (Jo. v. (N. H.) 357
Murphy, Susquehanna Transmission Co. of
Maryland v. (Md.) 791
Murphy, White ML Freezer Co. v. (N. H.) 357
Murphy's Estate, In re (Pa.) 03,5
Murray v. Randall (Pa.) 055
Mutillod, Ebcrling v., two cases (N. J.)... 619
Mutual Loan & Savings Ass'n of Chambers-
burg V. National Surety Co. (Pa.) 830
Myers, Jackson t. (Pa.) 341
Nashua Co-op. Co. v. Murphy (N. H.) 867
National Surety Co., Mutual Loan & Sav-
ings Ass'n of Chambersburg v. (Pa.) 8.30
Naylor, Joseph v. (Pa.) 846
Nazareth Foundry & Machine Co. t. Mar-
shall (Pa.) 848
Nell t; Godstrey (N. J.) 50
Nelson, Anderson t. n(. I.) 136
Newark Sign Co., O. J. Gude Co., New
Yoi-k T. (N. J.) .■ 392
Newbaker, New York, S. & W. R. Co. v.
(N. J.) 1064
New England Casualty Co., Standard Gas
Power Corp. v. (N. J.) 281
JJew Haven Hotel Co., Ft Orange Barber^
ing Co. V. (Conn.) 506
Newport Trust Co. v. Chappell (R. I.).. 323
New York Cent. & H. R. R. Co., CJhristy
T, (N. J.).... '.. 372
Paga
New Toi^ Stable Manure Co., Rowland v.
(N. J. Ch.) 621
New York, S. ft W. R. Co. y. Board of Pub-
Uc Utility Com'rs (N. J. Sup.) 4»
New York, 8. & W. R. Co., Flynn y. (N.
J- Sup.) 1034
New York, S. & W. R. Co. y. Newbaker
,(N. J.) 1054
New York Tel. Co. v. Newark (N. J. Sup.) 391
New York & New Jersey Water Co., Beall
v. (N. J. Ch.) 676
New York & New Jersey Water (Jo. v.
State Board of Assessors (N. J.) 168
Nolan v. United Brotherhood of Carpenters
and Joiners of America (N. J. Ch.) 194
Nones, State v. (N. J.) 427
Norman v. Prince (R. I.) 126
Norris, Stone v. (R. I.) 428
NorU» Branch Transit Co., Stetler y. (Pa.) 980
Norttmmberland County Traction C!o., Phil-
adelphia Trust Co. V. (Pa.) 970
Northwestern Pennsylvania R. (Do., Weil y.
(Fa.) 1 812
Ocean Accident & Guarantee Corp., Adle-
man v. (Md.) 629
O'Connor v. Rhode Island Co. (R. I.) 966
O'Dowd, Stearns v. (N. H.) 31
O. J. Gude Co., New York y. Newark Sign
Go. (N. J.) 892
Olsson, Parian y. (R. I.) 106
O'Malley v. PubUc Ledger Co. (Pa.) 94
Osterhout v. Latham & Crane (Conn.) 494
Ostman v. Lee (Conn.) 23
Ott V. Connecticut Co. (CJonn.) 485
Otto's Estate, In re jfPa.) 316
Overholt, Power y. (Pa.) 738
Owen V. Wilmer (Md.) 686
Owens, Baltimore & O. R. Co. y. (Md.) 605
Owens, Washington, B. & A. Electric R.
Ck>. y. (Md.) 632
Palese y. Palese (Del. Super.) 438
Parian y. Olsson (R. I.) 106
Park Cemetery. Browne y. (N. H.) 34
Parker, First Nat Bank y. (N. J.) 276
Parkview Building & Loan Ass'n of City
of Newark v. Rose (N. J.) 287
Parmly, Fiedler v. (N. J. Sup.) S»l
Parmly, Jcnkinson y. (N. J. Sup.) 390
Pascucci V. Rossi (Conn.) 22
Passaic Trust & Safe Deposit Co. y. East
Ridgelawn Cemetery (N. J. Ch.) 1026
Patterson v. Baltimore (Md.) 589
Peck, Rhode Island Hospital Trust Co. r.
(R. I.) 480
Pennsylvania Cent Brewing Co. y. Anthra-
cite Beer Co. (Pa.) 926
Pennsylvania Co<d Co.'s Assessment, In re
(Pa.) 646
Pennsylvania Co. for Insurance on Lives,
Etc., Parnum v. (N. J.) 1058
Pennsylvania Gas Co.. In re (Pa.) 996
Pennsylvania R. Co., Ellis y. (N. J. Sup.) 416
Pennsylvania B. Co., Maley y. (PaJ 911
Pennsylvania B. Co., Reigner v. (Pa.).... 996
Pennsylvania R. Co., Shaffer y. (Pa.) 982
Pennsylvania Steel Co. v. Sunbury & S. R. ^
Co. (Pa.) 970
Penrose's Estate, In re (Pa.) b19
People's Nat. Bank v. Cramer (N. J.). 204
People's Natural Gas Co., Smith y. (Pa.) . . 789
Perkins v. Bringhurst (Del. Super.) 438
P°rkins v. Halpren (Pa.) ^ ^,vit ISi
Peter Breidt Brewing Co. y. Weber (N. J.) 382
Petry, Edwards v. (N. J.) 195
Pettis V. Pettis (Conn.) 13
Phelps y. UUcy (Vt) %• v; • • -i; vlOU
Philadelphia Home-Made Bread Co., Mul-
hem V. (PaJ .........^.... 74
Philadelphia Hdme-Made Bread Co., Wein-
schenk v. (Pa.) A^- v 5?5
Philadelpliia Macaroni Co., Leotti v. (Pa.) 802
Fhiladel^Ua Fai-kway. In re (Pa.) 1000
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xiii
Pact
FliiladelpUa Rapid TVasBit 0«., Donghertr
V. (Pa.) .....;. 7, 844
Philadelphia iEuipid Transit Co!,' Harper V.
(Pa.) , .....1004
Philadelphia Rapid Transit Co., Williams v.
(Pa.) 748
Philadelphia Trust Coi v. Northnmberland
County Traction Co. (Pa.) 970
Philadelphia & Reading Coal & Iron Co.,
Poluskiewicz v. (Pa.) 638
Philadelphia & Reading Coal & Iron Co.,
Wihner v. (Md.) B38
Philadelphia & R. R, Co., Bickley v. (PaJ. . 664
Philadelphia & R. R. Co., Hanigan ▼. (Pa.) 640
PhUadelphia & R. R. Co., Kirstein v. (Pa.) 338
Philadelphia & R. R, Co., Lapinco v. (Pa.) 767
Phihxdelphia & R. R. Co., McGinley v. (Pa.) 825
Philadelphia & B. R. Ca, Magier v. (Pa.). . 731
Philadelphia & R. R. Co., West Jersey
Trust Co. V. (N. J.) 1065
Phcenix Ins. Co., Kelsea v. (N, H.) 362
Pickett ▼. Ruickoldt (Conn.) 82
Pierson t. Pierson Engineering & Constrae-
tion Co. (Conn.) 486
Pierson Engineering & Construction Co.,
Pierson v. (Conn.) 485
Pittsburgh & L. B. R. Co. v. Clinton Iron &
Steel Co. (Pa.) 1048
Piatt ▼. Johnson (N. J. Ch.) 1035
Plum Trees Lime Co. v. Keeler ((Tonn.) 509
Poe v. Schlens (Md.) 688
Poliiskiewicz v. Philadelphia & Reading
Coal & Iron Co. (Pa.) 638
Posselt T. D'Bspard (N. J. Ch.) 178
Postal Telegraph Cable Co. t. Harford
County Com'rs (Md.) 600
Potter's Estate, In rn (Pa.) 758
Power v. Overholt (Pa.) 7.S3
Prantl t. Junk (N. J.) 56
Preferred Realtv Co., Maguire v. (Pa.).... 100
Prendergast v. Walls (Pa.) 826
Price T. Little (Pa.) 645
Price T. Long (N.J. Ch.) 195
Prince, Norman v. (R. I.) 126
Prosser, Lawrence v. (N. J. Ch.) 1040
Providence-Washington Ins. Co., Kazarian
Bros. V. (R. I.) 221
Provident Life & Trust Co. v. Klemmer
(Pa.) 351
Prudential Ins. O. of America, Duff v.
ffi T ^ 871
Pubilc Ledger Co.", O'MtJieV V. CPa.) '.'.'.'.'.'. 94
Public Service B. Co., Hoff v. (N. J. Sup.) 404
Pnlljs, State v. (N. J. Sup.) 54
Randall, Murray t. (Pa.) 955
Randall, Tipton v. (N. J. Ch.) 204
Rankin v. Farrand (Me.) 833
Raphael, Eisele v. Q^. J.) 200
Beading Trust Oa, Geissler v. (Pa.) 797
Beddington v. Getchell (B. I.) 123
Beed, Babayan v. (Pa.) 339
Beese, Commonwealth v. (Pa.) 949
Beigner v. Pennsylvania B. Ca (Pa.) 995
Beifly v. Wilkes-Barre (Pa.) 954
Beybum, Markee v. (Pa.) 993
Beynoldsrille Water Co. t. Farmers' & Min-
er's Trust Co. (Pa.) 800
Bhode Island Co., Gagnon y. (B. I.) 104
Bhode Island Ca, O'Connor v. (B. I.) . . . 966
Rhode Island Hospital Trust 0>. v. Peck
(R. I.) 430
Ricdo v. RIecio (N. J. Ol.) 426
Rdce V. Kinney (Pa.) 344
Richards v. Cavalry Club of Bhode Island
/T> T\ 222
Bichard's, More v! (N.' J.) ." ! .' .' ! .' .' .* ." '. '. '. '. .* ! 380
Richards v. Shipley (Pa.) 456
Biverside Turn Verein Harmonie t. Pat-
erson (N. J.) 254
B. M. French & Son, Lanrpert Bros. t. (N.
J.) 263
Bobt H. IngersoU & Bro. v. Hahne & Co.
(N. J. Ch.) 1030
Bodieeter Distilling Ca t. Geloso (ConnJ 600
Page
Bogen T. Warrington (N. J.) ••..... 183
BoUins V. Brock (5f. H.) 636
Bose T. Fitzgerald (N. J.) 202
Bose, Parkview Building & Loan Ass'n of
City of Newark v. (N. J.) 287
Bosenzwog v. Gould (Md.) 665
'Boss V. Commissioners of Palisades Inter-
state Park (N. J. Sup.) 60
Ross, Bowell v. (Conn.) 333
Bossi, Pascucci T. (Conn.) 22
Bounsaville v. Central R of New Jersey
„(N. J.) 182
Bowe V. Border City Gametting Co. (B. I.) 223
Eowe, Carter v. (Conn.) 491
Rowell V. Ross (Conn.) 333
Rowland v. New York Stable Manure Ca
_(N. J. Ch.) 621
Buddick, Sands v. (N. J.) 268
Buper V. Coatcsville Boiler Works (Pa.)... 639
Hiiiokoldt, Pickett v. (Conn.) 82
Rushford, Baker v. (Vt) 769
Rushmore. Cooney v. (N. J.) 1053
Russell, Doherty v. (Me.) 305
Ryan & Reilly Co., Solvuca ▼. (Md.) 710
Saeger v. Commonwealth (Pil) 999
St. John, South Norwalk Trust Co. t.
„(Conn.) 961
Sanderson v. Boston & M. R. R. (Vt).... 40
Sands v. Ruddick (N. J.) 268
Sanner, Western Maryland B. Co. v. (Md.) 687
Saupp V. Streit (Pa.) 939
Scandinavia Belting Co. v. Macan. Jr.. Co.
(Pa.) ...; : 997
Scheib, Allen v. (Paj ,.... 102
Schellen, Appeal of (Conn.) 81
Scherr, Commonwealth v. (Pa.) 949
Schlens v. Poe (Md.) 688
Schlens, Village of Lyons v. (Md.) 688
Schmitt V. Carbondale (Pa.) 756
Schulz Junior Co., D'Espard v. (N. J.
Oh.) 178
Schuylkill County v. Wiest (Pa.) 761
Schwartz, Commonwealth t. (Pa.) 99
Schwartz v. Daahi£E (Conn.) 580
Schwarzrock v. Board of Education of
Bayonne (N. J. Sup.) 894
Schwarzwaelder, Four Comers Building &
Loan Ass'n of Newark v. (N. J. Ob.)... 564
Schwehm v. Chelten Trust Co. (Pa.) 93
Scott V. American Exp, Co. (Pa.) 96
Scott, Cite of Baltimore v. (Md.) 674
Scully V. Automobile Finance Co. (DeL Oi.) 908
Scully, Carson v. (N. J.) 289
Scully, Carson v., two cases (N. J.)...... 295
Security Trust Co. v. Edwards (N. J.).... 383
Security Trust Co. v. Edwards (N. J.)..,. 384
Seitzinger v. Becker (Pa.) 650
Shaffer v. Pennsylvania B. Co. (Pa.) 982
Shannon v. Watt (N. J.) 251
Shapiro, State v. (Md.). 703
Sheafer v. Woodside (Pa.) 753
Sheehan, McCoach v. (Pa.) 829
Sherburne v. Bougie (Me.) .- 355
Shipley, Bichards v. (PaJ 456
Shoemaker, Land "Ktle & 'Trust C!o. v. (Pa.) 336
Short, Milford Co. v. (Del. Super.) 238
Sbover's Estate, In re (Pa.) 862
Shovlin, Hack v. (Pa.) 956
SUver,JkIore v.JN. J.) 380
Sinking Spring Water Co. v. Gring (Pa.). . . 732
Slatersville Finishing Co. v. Greene (B I.) 226
Smith V. Doten (Me.) 1053
Smith V. McClure (Pa.) 347
Smith V. People's Natural Gas Co. (Pa.)... 739
Smith V. Smith (N. J.) 254
Smith V. Tilton (Me.) 722
Snyder, Borough of Hollidaysburg v. (Pe..) 955
Society for Establishing Useful Manufac-
tures v. Board of Conservation and De-
velopment (N. 3. Sup.) 102.t
Solvuca V. Byan & Beilly (3o. (Md.) 710
Sommers v. Adelman (0>nn.) 7
Setter V. Coatesville Boiler Works (Pa.). .. 744
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101 A4rLA)fEI0 BSPORVEB,
Pac*
Soulsby T. American CokmUation Soc.
„(Md.) ...'..TT. 780
South Norwalk Trust Co. ▼. St John
(Conn.) 861
Sp«icer V. Connecticut Biver Power Co, of
New Hampshire (N. H.) 628
Spocidio, E. I. Du Pont De Nemours Pow-
der Co. V. (N. J. Sup.) 407
Spofford V. Bickford (Me.) 470
Spouting Rock Beach Ass'n v. Tax Com'rs
of Rhode Island (R. I.) 215
Sprotte V. Delaware, U & W. R. Co. (N.
J.) 518
Steirs T. Banftor Power Co. (Me.) 206
Stamford Rolling Mills Co. t. Erie R. Co.
(Pa.) ., 823
Stamford Trust Co. t. Mack (Conn.) 235
Standard Gas Power Corp. v. New Eng-
land Casualty Co. (N. J.) 2S1
Stanford V. Stanford (N. J. Ch.) 388
Stanford, State v., two cases (N. J.) 53
Stanton v. PittsburKh (Pa.) 822
Staples V. Emery (Me.) 721
State, Agricultural Soa of Montgomery
County V. (Md.) 139
State, Boston & M. R. R. v. (N. H.) 663
State V. Castelli (Conn.) 476
Stole T. Davis (Me.) 208
State v. Fletcher (N. J.) 181
State ▼. Hart (N. J.) 278
State V. Hop (N. J. Sup.) 881
State T. Jefferson (N. J.) Bfifl
State ▼. Kane (Del.) 239
State T, McAvoy, two cases (R. I.) 100
State T. Mad River Co. (Conn.) 406
State V. Mancini (Vt.) 581
State T. Monetti (N. J.) 206
State v. Nones (N. J.) 427
State T. Pnllis (N. J. Sup.) 54
State V. Shapiro (Md.) 703
State ▼. Stanford, two cases (N. J.) 63
State T. Triplett (Conn.). 486
State V. United Brokerage Co. (Del. Super.) 433
State V. Vreeland (N. J.) 1055
State T. Warner (Vt) 149
State T; Washington, B. & A. Electric R.
Co. (Md.) 646
State V. Weeks (N. H.) 35
State Board of Assessors, New York & New
Jersey Water Co. v. (N. J.) 168
State Board of Assessors, Suburban Inv.
Co. T. (N. J.) 1055
State Board of Taxes and Assessmmts, At-
lantic Coast Electric R. Co. v. (N. J.
Sup.) 64
State Board of Taxes and Assessment,
Long Dock Co. v., two cases (N. J.) . . . 3(57
State Board of Taxes and Assessment
Long Dock Co. v., two cases (N. J.).... 368
Staush, Commonwealth v. (Pa.) 72
Steams v. O'Dowd (N. H.) 31
Steffanazzi t. Italian Mut. Ben. Soc. (Vt.)..1010
Sterling Tp. Sup'rs v. Wayne County
Com'rs (Pa.) 731>
Stetler v. North Branch Transit Co. (Pa.) 980
Stone T. Delaware, L. & W. R. Co. <Pa.). . 813
Stoner.Norris (R.I.) 428
Stougb, Cullen v. (Pa.) 937
StraffOTd v. Franklin Paper Mills Co. (Pa.) .349
Strauss, Lehigh Valley Trust (3o. t. (Pa.).. 1047
Streit, Saupp v. (Pa.); 939
Struble's Estate, In re (N. J. Prer^.) 177
Stuart T. Burlington County Farmers'
Eich. (N. J.).... 265
Suburban Inv. Co. t. State Board of As-
sessors (N. J.) 1055
Suburban Water Co., Carter t. (MdJ 771
Sudnjk V. Susquehanna Coal Co. (Pa.). . . 318
Summit Silk Co. v. Fidelity Trust Co. of
Baltimore, Md. (N. J. Ch.) 573
Sunbury & S. R. Co., Pennsylvania Steel
Co. V. (Pa.). . . V 970
Susquehanna Coal Co., Sudnik ▼. (Pa.)... 318
Susquehanna Transmission Co. of Maryland
V. Murphy (Md.) 791
Sutton, Lnng t. (Pk.).,.... 458
Swwuso.n, Barton v. (Md.) 607
Swanson v. Latham & Cran« (Conn.).... 492
Swartz, Bixler v, (Pa.) 647
Sweeting, Tnthlll ▼. (Pa.)..,. 989
Swiller V. Home Ina Co. of New York (N.
J.) 616
Swop«, Folton County Bank t. (Pa.) 950
Taber v. TalCott (R. I.) 2
Tabor's Estate, In re (Pa.) 811
Talcott, Taber v. (R. I.) 2
Tammaro, Esposito v. (Conn.) 23
Taub V. Taub (N. J.) 246
Tax Com'rs of Rhode Island, Spouting
Rock Beach Ass'n v. (B. L) 215
Taylor, Fischer v. (Pa.) 313
Taylor, White v, (ConnJ 231
Thayer, Villa v. (Vt.) 1009
Thoenebe V. Mosby (Pa.) 98
Thomas v. Thomas (N. J.) 1055
Thomas A. Edison, Inc., GriUo v. (N. J.). .. 171
Thompson, Hogsett v. (Pa.) 941
Thompson, Hogsett v. (Pa.) 944
Thompson, King v. (Me.) 724
Thompson & Nesmith v. Manchester Trac-
tion, Light & Power Co. (N. H,J 213
Thorpe, Jersey City t. (N. J.) 414
Thrasher v. Lawrence (N. H.) tviS
Tibbetta V. Curtis (Me.) 1023
Tiemey v. Martone (Conn.) 497
Tilton, Smith v. (Me.) 723
Tipton V. Kandall (N. J. Ch.) 204
Title Guaranty & Surety Co. t. Fusco
Const Co. (N. J.) 248
Toole, McHale ▼. (Pa.) 988
Town of Belleville, Jerolamon v. (N. J.),.. 244
Town of Glover v. Greensboro (Vt)....1016
Town of Greensboro, Town of Glover ».
(Vt.) 1016
Town of Hamden t. New Haven (Conn.).. 11
Town, of Lebanon, l^coss v. (N. H.) 364
Town of Tilton v. Concord (N. H.) 144
Town of West Hoboken, Cahill v. (N. J.
Sup.) 417
Town of West Hoboken. McCarthy v. (N,
J. Sup.) 41T
Town of West Orange, Eckert v. (N. J.).. 269
Township of Wilson v. Easton Transit Co.
(Pa.) 883
Township of Woodbridge, Middlesex Conn-
ty, Martin v. (N. J. Sup.) 418
Tracey, Appeal of (Pa.) 807
Trainer, Herman v. (Pa.) 1051
Trenton & Mercer County Tt'action Coip.
V. Ewing Tp. (N. J. Ch.) 1037
Trenton & Mercer County Traction Corp.
V. Trenton (N. J. Snp.) 562
Trimble, Bergen v. (Md.) 137
Triplett State v. (Conn.) 486
Trustees of Trinity Union Methodist
Episcopal Church, Millar y. (R. I.).... 106
Tucker, Moran v. (R. I.) 327
Turner v. Connecticut Co. (Conn.). ....... 88
Tuthill y. Sweeting (Pa.) 989
Tuttle V. Cumberland County Power &
Light Co. (Me.) 451
T. W.- Griffith Realty Co., Fisher v. (N. J.
Oh.) 411
Union Mut Fire Ins. Co., Boston & M. R.
R. V. (Vt) 1012
United Brokerage Co., State v. (Del. Super.) 433
United Brotherhood of Carpenters ana
Joiners of America, Nolan v. (N. J. Ch.) 194
Utley, Phelps v. (Vt) 1011
Valentine, Warfield v. (Md.) 543
Van Beil's Estate, In re (Pa.) 316
Van Wagenen, Freeman v. (N. J. Sup.). . . 55
Vare, Lambert v. (N. J. Ch.) 726
Verhovay Aid Ass'd* -Commonwealth v.
(Pa.) 7.... 832
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Verbovay Aid Ass'n's Charter, In re (Pa.) 932
Vermont Marble Ck). v. Eastman (Vt.)...- 151
Vernon, McKenna v. (Pa.) 919
Viele T. Curtis (Me.) 966
ViUa T. Thayer (Ytj 1009
VUlase of Lyons v. Schlens (Md.) 688
Vogel, "Wilson v. (X. J. Ch.) 1T3
Vreeland, State t. (N. J.) 106S
Wales, Erie Connty Pomona Grange No. 4
v. (Pa.) 993
Walla, Prendergast v. (Pa.) 826
Walsh, Lyons v. (Conn.) <, 488
Warfield T. Valentine (Md.) 643
Wnme v. Greenbaum (N. J. Ch.) 668
Warner, Acampora v. (Conn.) 33*^:
Warner, State v. (Vt.) 149
Warrington, Rogers v. (N. J.) 183
Washington v. Gulf Refining Co. (Pa.) 817
Washington, B. & A. Electric B. Co. t.
Owens (Md.) 632
Washington, B. & A. Electric B. Co., State
V. (Md.) 646
Watmough's Estate, In re (Pa.) 857
Watt. Shannon v. (N. J.) 251
Wayne County Com'rs, Manchester Tp.
Sup'rs V. (P&.) 736
Wayne County Com'rs, Sterling Tp. Sup'rs
T. (Pa.) 739
Wayne Junction Trust Co., Fox Chase
Bank v. (Pa.) 979
Weber, Peter Breidt Brewing Co. v. (N.
J.) 882
Weeks, State v. (N. H.) 35
W«l T. Marquis (Pa.) 70
Weil T. Northwestern PennsylTSnia R. Co.
(Pa.) 312
Weinschenk ▼. Philadelphia Home-Made
Bread (3o. (Pa.) 926
Wells Y. Great Eastern Casualty Co. (B. I.) 6
Western Maryland B. Co. v. Sanner (Md.) 587
Western Nat Bank v. Jenkins (Md.) 667
West Jersey Trust Co. t. Philadelphia & B.
R. Co. (N. J.) 1065
West Jersey & & S. B. Co., MiUer r. (Pa.) 766
Fog*
West Mahanoy Townshlp^s Contested EOec-
ticm. In re (Pa.).. 946
Wheeler, Humphrey v. (Vt) ...1018
Wheeler, Merryman v. (Md.) 651
Wheeler's Estate, In re (Del. Orph.) 865
Whitaker v. Dumont Borough (N. J. Sup.) 561
White v. Taylor (Conn.). 231
Whitefield Tanning Co., Bernard v. (N. H.) 439
White Mt. Freezer Co. v. Murphy (N. H.) 357
White's Estate, In re (N. J.) 241
Whitney Co. v. Church (Coua.) 829
Wiebke v. De Wyngaert (N. J. Oh.) 410
Wiest, Schuylkill County ▼. (Pa.) 761
Wllhelm V. Mitchefl (Md.) 786
Wilkes-Barre & H. B. Oo^, Feassner t.
(Pa.) 966
William Kane Mfg. Co., Wood ▼. (Pa.). ... 73
Williams v. Beltz (Del. Super.) 905
Williams, Cloud, Stiles & Work v. (Pa.) 732
Williams ▼. Philadelphia Bapid Transit
Co. (Pa.) 748
Wills V. Fisher (Pa.) 818
Willis, Wilson ▼, (Md.) 694
Wilmer, Lang y. (Md.) 706
Wilmer, Owen v. (Md.) 686
Wilmer y. Philadelphia & Beading Coal &
Iron Co. (Md.) 638
Wilson V. Hilliard (Md.) 603
Wilson, Kingston v. (B. I.) 109
Wilson v. Mitton (Pa.) 316
Wilson V. Vogel (N. J. Ch.) 173
Wilson T. WiUis (Md.) 6SW
Wolcott ▼. Doremus (Del. Ch.) 868
Wood ▼. Carson (Pa.) 811
Wood V. William Kane Mfg. C^. (Pa.) 73
Woodhouse, McDermott v. (N. J.) 375
Woodman v. Butterfield (Me.) 25
Woodside, Sheafer v. (Pa.) 753
Worthlngton v. Lipsitz (Md.) 625
Wright Y. Bristol Patent Leather Go. (Pa.) 844
Tork T. Marshall (Pa.) 820
Zenzfl T. Delaware, L. & W. R. Co. (Pa.). . 809
Zobes T. International Paper Co. (Me.).... 24
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THE
ATLANTIC REPORTER
VOLUME 101
Cl R. I. 847)
LANSma et aL t. CAMPBELL.
CNo. 374.)
(Supreme Court of Rhode Island. June 12,
1917. On Motion for Rehearing,
June 28, 1917.)
MoBTOAOKs «=5>151(3) — Pbiobitt or hoax —
Mechanic's Lien.
Mechanics' liens for material are superior to
a mortgage on a building executed after the ex-
cavation of the cellar had been started, where
the building was constructed according to the
original plans, although the property changed
ownership between the cellar excavation and con-
struction of the building proper.
[Ed. Note.— £\>r other cases, see Mortgages,
Cent. Dig. S§ 33^-336.]
Appeal from Superior Court, Kent County ;
John W. Sweeney, Judge.
Mechanics' Uen petition by George D.
Lansing and others against Lena CampbelL
From a decree establlslilng a prior mortgage
lien, petitioners appeal. Decree reversed.
Gardner, Plrce & Thornley, of Providence
(Charlea R. Haslam, of Provldaice, of coun-
sel), for appellants. Mumford, Huddy & Em-
erson, George H. Hnddy, Jr., and E. Butler
Moulton, all of Providence^ for appellee.
PER CURIAM. The justice before whom
the above-entitled lien petition was tried In
the superior court has found as a matter ot
fact in his decree entered on the lOtb day ot
November, 1916, that tbe petitioners did at
the time of foreclosure of the mortgage held
by George M. Hamlen have a mechanics'
lien upon the premises described In the peti-
tion to the extent of $224.49 for materials
furnished for the construction of a house on
said premises. Tbe decree also finds that
George M. Hamlen, at tbe time of foreclos-
ing the mortgage, was not chargeable with
notice of said medianlcs' lien, and that the
mortgage owned by Hamlen constitutes a
prior 11^1 or claim against the property de-
scribed and takes precedence of the petition-
ers' claim. From this decree the petitioners
have taken their appeal and duly prosecuted
it to this court No appeal was taken by
any other party.
The petitioners' reasons of appeal simply
raise the question of priority as between the
mechanic's lien and the mortgage lien, and
that Is the only question now before this
court
The trial Judge found as a matter of fact
that the excavation of the cellar, upon which
the house was afterwards built was made in
September, 1912, while the property was
owned by C. B. Barney Company; that the
stone work was not done until the following
spring ; and there was evidence from which he
could BO find, and no evidence to the contrary
was introduced. It further appears that after
the excavation for the cellar was made, to
wit on the 15th day of October, 1912, the
C. E. Barney Company sold the lot to Lena
Campbell; that she executed a mortgage
thereon on the same day to C. Edward Bar-
ney; that on November 4, 1912, tbe said
mortgage was transferred to George M. Ham-
len; and that said deed and mortgage were
recorded November 6, 1912. It thus appears
that the mortgage lien originated subsequent
to the excavation of the cellar which was the
beginning of the work of construction which
was afterward carried out in the building
of the house with materials furnished by the
petitioner. Gen. Laws R. I. 1909, c. 257, f 1.
Tbe case is ruled by tbe case of Bassett v.
Swarts, 17 R. I. 215, 21 Atl. 352. Tbe ex-
cavation of tbe cellar was "constructive no-
tice to all persons who may purchase tbe
property, or may acquire any interest in it,
that liens for labor and materials to be used
in tbe construction of tbe building may at-
tach and become entitled to priority." Bas-
sett V. Swarts, supra, 17 R. I. page 218, 21
Atl. page 353.
There was no evidence of any abandonment
of the work of construction; there was
simply a delay in tbe final completion of the
foundation after tbe excavation of the cellar
had been made; it Is a fair inference from
tbe testimony that tbe C. B. Barney Company,
in 1912-13, through C. Mward Barney as its
agent, was engaged in tbe sale and develop-
ment of lots upon the plat in Norwood, War-
wick, R. I., entitled "Commonwealth Pla-
teau," and that the cellar which was exca-
vated on tbe lot herein referred to, before it
was sold to Lena Campbell, was one of a
number of such operations upon said plat
then being carried on with a view to sale of
lots and building houses thereon for purchas-
ers ; for it appears that the first delivery of
materials for the building of the house on
this lot was made January l6, 1913, by tbe
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101 ATLANTIC REPORTER
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petitioners at the order of C. Edward Barney
who was acting as agent for the owner of
the lot In building the bouse thereon after
the sale of the lot to her, and that delivery
of materials for use on this lot by the peti-
tioners upon Barney's order was continued
through January, February, March, and
April, 1913, and up to May 2, 1913, and that
notice of petitioners' lien claims was duly
filed and notice given May 14 or 15, 1913.
It appears therefore that there was no change
of plan as to construction of the house upon
the cellar which was excavated in September,
1912, and no abandonment of the work which
was commenced by said excavation.
We are of the opinion that the trial Judge
was clearly In error, under the case of Bas-
sett V. Swarts, supra, in his decree that
George M. Hamlen was not chargeable with
notice at the time of purchasing said mort-
gage, and in decreeing priority to the mort-
gage lien.
The petitioners' appeal is sustained; the
decree of the superior court appealed from,
60 far as it decrees priority to the mortgage
lien and awards costs to the said Fred M.
Hamlen, executor, is reversed; the petitloa-
ers are entitled to have a decree in their
favor for the sum of $224.49, as found by the
decree, with interest from May 15, 1913, and
for costs ; and also that th^r lien is entitled
to priority.
A decree in accordance herewith may be
submitted for our approval on Monday, June
18, 1917, at 10 o'clock in the forenoon.
On Motion for Rehearing.
Upon motion of Intervener, Fred M. Ham-
len, for rehearing. Counsel in this motion
seems to intimate that this court has over-
looked or ignored, In its rescript formerly
filed, the case of Chace v. Pldge, 21 R. I. 70,
41 Atl. 1015, and that we have virtually over^
ruled that case. That case was neither over-
looked nor overruled. " It does not concern
any question properly raised in the case at
bar. The case of Chace v. Pldge, supra, sim-
ply relates to the question whether the no-
tice of lien should not have named a party
respondent, who had become the owner of
the land after the time when the lienor fur^
nished the materials for which the Hen was
claimed, and before the lien proceedings were
commenced. There was no question of prior-
ity of lien as between lienor and mcwtgagee,
but simply a question whether proper notice
had been given, under oui: statute. We are
of the opinion that the case of Chace v.
Pldge has no bearing upon the question here
involved.
All of the matters now stated in the mo-
tion were carefully considered by the court
before its rescript herein was prepared and
filed. We are still of the opinion that the
case of Bassett v. Swarts, 17 R. I. 215, 21
Atl. .W2. governs the case at bar. We call
the attention of counsel to the cases dted
therein, and particularly to American EM.re
Ins. Co. V. Prlngle, 2 Serg. & B. (Pa.) 138,
Neilson v. Iowa Eastern R. Co., 44 Iowa, 71,
and Pennock v. Hoover, 6 Rawle (Pa.) 291.
In the last two cases It appears that the ex-
cavation for the foundation is held to be the
commencement of the building ; and the rule
to be deduced from the first two cases is
that, although such commencement be made
by a former owner and the building carried
out by a sulisequent purchaser, nevertheless
the lienors for work done or materials fur-
nished to the purchaser after the date of the
mortgage are entitled to priority, where the
mortgage is given after the commencement of
the building. See, also, Mutual Benefit Life
Ins. Co. V. Rowand, 26 N. J. Eq. 3S9; Man-
hattan Life Ins. Co. v. PauUson, 28 N. J. Eq.
304.
We find no reason for granting a rehear-
ing in this case, and the intervener's motion
for such rehearing la denied. The parties
may be heard on the form of decree to be or-
dered by this court on Monday, July 2, 1917,
at 10 o'clock in the forenoon.
(40 R. I. 338)
(No. 398.)
June 13,
TABER V. TALCOTT et aL
(Supreme Court of Rhode Island.
1917.)
1. Wnxs €=s>e29— CoNSTBUCTiON IN Favob of
Vesting of E8tatb>— Testatoe's Intention.
The construction in favor of the vesting of
estates immediately upon the testator's death,
and which does not regard the remainder as be-
ing contingent, in the al>8«ice of a clear intent
on testator's part to that effect, is subordinate to
the fundamental principle of construction that
the written expression of the testator, taken in
its natural aense and use and applied to existing
facts, must control.
[Eki. Note.— For other cases, see Wills, C!ent.
Dig. SS 1461, 1462.]
2. Wnus «=>524(e)—CoNSTBUCTioN— Vested
OB Continqent Remainder.
A will directing trustees to convey property
in fee to "heirs" upon death of the survivor of
children, or upon tne death of the wife in case
she survived all of the children, after providing
for payment of income to widow and children
during their lives, held to give contingent equita-
ble interests in fee to those persons answering
description of heirs at the time of death of the
last survivor of wife and children if be bad just
then died intestate and without issue, and not
to grant vested equitable interests in fee to per-
sons who answered description of heirs at testa-
tor's death.
[Ed. Note.— For other cases, see Wills, Cent
IXg. S 1122.]
'8. Wills ®=»687(6)— Tbuot EsTAUt— Division
OF Propertt.
Where a will provided for no difference in
the disposition of real and personal trust prop-
erty on termination of trust estate, it was the
trustee's duty to divide personalty among the
persons entitled in accordance with the statute
of descent and distribution.
[Ed. Note.— For other cases, see Wills, Cent
Dig. { 1643.]
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TABER ▼. TALiCOTT
4. BviDERCK «S380(1) — Pbbsttuftiok — Fob-
EioN Law.
In the absence of evidence to the contrary,
it will be assumed that there is no difference
between foreign and domestic law upon the sub-
ject of descent and distribation.
[Ed. Kote.— For other cases, see Evidence,
Cent. Dig. 1 101.]
Certified from Superior Coort, Providence
and Bristol Counties.
Bill In equity by \^lliam B. Taber, sole
trustee under tbe will of Hezeklab Allen,
asalnst Charles H. Talcott and others. Cer-
tified from superior court In accordance with
Gen. Laws, c. 288, | 35, submitting questions
to Supreme Court. Questions answered and
decree directed.
Edward A. Stockwell, of Providence, for
complainant. Gardner, Plrce & Thornier
and Murdock & Tillinghast, all of Providence
(William W. Moss and John A. Tllllnghast,
both of Providence, of counsel), tor respond-
ents Talcott and others. Swan & Keeney,
of Providence (Francis B. Keeney, of Provi-
dence, of connsel), for respondents Ida J.
Clark, and William D., Sarab Ik, C. Osgood,
and C. Elnora Swan.
STBABKS, J. This is a blU in equity
brought by William E. Taber, sole trustee un-
der the will of Hezeklah Allen, praying for a
construction of the will and other relief inci-
dent to a distribution of the trust estate cre-
ated thereunder, and a discharge of the trus-
tee. By a decree of the superior court the
cause was certified to this court. In accord-
ance with chapter 288, S 35, Gen. laws R. I.,
and the following questions are submitted to
this court:
"(1) IHd the said will of Hezekiah Allen give
to the persons who answered the description of
his heirs at law at his death vested equitable in-
terests in fee in the trust property, or did It
give contingent or executory equitable interests
in fee to those persons who would answer the
description of his heirs at law at the time of
the death of the last survivor of his wife and
children, if he had just then died intestate and
without issue?
"(2) To what class or classes of persons and
in what proportions, was it the duty of tbe trus-
tee under said will on May 8, 1912, to convey
the part of the personal property in bis posses-
sion that represented the pergonal property that
was left by said Hezekiah Allen to the trustees
under bis will?
"(3) To what class or classes of persons, and
in what proportions, was it the duty of said
trustee on said date to convey the part of the
personal property in his possession that repre-
sented tbe proceeds of the above-mentioned sales
of real estate?
"(4) To what class or classes of persons was
it the duty of said trustee on said date to con-
vey the said wood lot in tbe town of Enfield,
Conn.?"
Tbe first question is the principal one,
and tbe others are only subsidiary.
Hezekiah Allen, a resident of Cranston, It.
I., died in 1872 leaving surviving a widow,
Enieline Allen, and three children, Hezekiah
Allen, Emily H. Allen, and Elvira E. Allen,
five brothers and sisters, and the descend- ,
ants of two deceased brothers. The widow
died Intestate in 1879, and each of the chil-
dren died subsequently, intestate and without
issue; Elvira E. Allen, tbe survivor of tbe
cbildren died May 8, 1912.
Tbe respondents, Charles H. Talcott et al.,
are tbe persons, or in some cases the suc-
cessors In Interest of tbe persona, who, being
descendants of brothers and sisters of Hez-
ekiah Allen, answered the description of bis
heirs at law on May 8, 1912, and as sndi
claim that the equitable estate in remainder
to the heirs at law was contingent and did
not become vested until tbe death of the last
surviving child, and that they are entitled to
a conveyance of all tbe trust property as It
existed at that dat& Tbe opposing respond-
ents, O. Osgood Swan et al., claim solely as
successors in Interest to tbe three children of
Hezekiah Allen, and assert that an equitable
remainder in fee vested in these three dill-
dren at bis death. They are mainly tbe
beirs and next of kin of Elvira E. All«i on
ber mother's side.
Tbe second clause of tbe will Is as fol-
lows:
"Second, I give, devise and bequeath all the
rest, residue and remainder of my estate both
real and personal of which I shall die seised
and possessed and wherever the same may be sit-
uate, to Henry J. Spooner, John D. Thurston
and Jesse P. iSddy, all of the city of Providence.
To have and to hold tbe same to them and to
the survivors and survivor of them and to their
successors and assigns. In special trust never-
theless, for the purposes following. The said
trustees and their successors in said trust siiall
receive the rents, profits, issues and income of
the property vested in them as aforesaid and
therewith make all necessary repairs and im-
provements and pay all taxes and other neces-
sary charges and expenses in and about the
same and after all such payments and reserva-
tions are deducted, shall at such times and plac-
es annually and in such proportions as they may
deem expedient, pay over the residue of such
rents, profits, issues and income to my wife, Em-
meline Allen, for and during the term of her
natural life, and this provision I make for her
in lieu of her dower m my estate. After tbe
decease of my said wife I direct my trustees
above named and their successors in said trust
to pay over in manner aforesaid, said rents,
profits, issues and income (after the deductions
therefrom as above provided for) to my three
children, Hezekiah Allen, Elvira B. Allen and
Emily H. Alien, and upon the decease of one or
more of them, to the survivors and survivor of
them, equally, and upon the death of the sur-
vivor 01 them or upon the death of my said
wife in case she shall survive all mv said chil-
dren, I direct my said trustees and their succes-
sors in said trust to discharge themselves of the
trust herein created by making full and absolute
conveyance of such property and estate as thej
shall at that time hold in trust under this wilL
to my heirs at law and to their heirs, executors,
administrators and assigns forever."
TUe trustees, in their discretion, under the
advice and direction of tbe probate court,
were authorized to sell any i>ortion of tbe
trust estate, ^ther real or personal, and to
reinvest tbe proceeds In such manner as tbe
trustees should deem most for the interest of
said cestui que trust, the reinvested estate to
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I>e beld by them snbject to the same trost
Two of the parcels of real estate located in
this state were sold by the trustees by au-
thority of acts of the General Assembly,
which provided that the proceeds of the sales
should form a part of the trust estate and "be
finally disposed of as directed in said will
and as if no such sale • • • had been
made." A part of the personal property
now held In trust represents the proceeds of
the sale of these two parcels of land. The
third parcel which is mentioned in the will
and wblch is located in Enfield, Conn., still
forms a part of said trust estate.
[1] Question 1 presents this issue: Are the
heirs of Hezekiah Allen to be determined as
of the time of his death in 1872, or as of the
time of the death of the surviving life bene-
ficiary, Eavira B. Allen, in 19127 WhUe it is
true, as stated by Tlllinghast, J., in Ross v.
Nettleton, 24 R. I. 127, 62 AtL 677, "that
the law fiiTors the vesting of estates imme-
diately upon the death of the testator, and
will not regard the remainder as being con-
tingent, in the absence of a clear intent on
the part of the testator to that elTect," nev-
ertheless it has been uniformly held that this
preference of the law is subordinate to the
fundamental principle of construction that:
"The written expreatdon of the testator, taken
in its natural sense and use, and applied to ex-
isting facts, must control." Ogden, Petition of,
25 R. I. 373, at page 874, 66 AU. 933.
For the respondents. Swan et al., the case
in Rhode Island principally relied upon is
Kenyon, Petitioner, 17 R. I. 149, 20 Atl. 294.
In regard to cases from other Jurisdictions
cited, this court, tn the case of Melcher, Petr.,
24 R. I. 675, at page 678, 54 Atl. 379, 380,
made the following comment, wlilcb is as ap-
plicable now as at the time when it was
made:
"Cases upon the constraction of wiUa and
npon vested and contingent remainders have
been too numerous and conflicting for an at-
tempt to review ot to reconcile them."
This difterence in the authorities arises
not so much in regard to the rules of inter-
pretation, but more in regard to the relative
importance to be given to the different rules,
and the law Is well settled in this state that
it is the expressed intention of the testator,
if that can be clearly discerned, which is to
govern.
In the case at bar although there are many
points of similarity to the Kenyon Case su-
pra, yet there are certain differences which
clearly distinguish the two cases. In that
case A. devised and bequeathed his entire es-
tate to B, and his heirs for the life of 0., A.'s
•son, in trust for O., and then gave and be-
queathed after the death of O. "all the prop-
erty affected by the above trust, which shall
then remain, to my own right heirs." It was
held that B., the trustee, took an estate for
the life of C, and that 0., who was sole heir
of A., at A. 'a death took a vested remainder
in fee. In the Kenyon Case, as in the one at
bar, it was urged that the language used was
such as allowed an intent to give the son C.
only an estate for life, and also that C. could
not take a vested remainder under the sec-
ond clause, because the clause was not in-
tended to take effect until after his death,
and that C. was given not "the remainder of
the estate," but "all the. property affected by
the above trust which shall then remain";
and, although Durfee, C. J., recognized the
force of the argument in favor of holding
the remainder to be contingent, he thought
that the preced^its were againsrt It, and de-
cided tliat the remainder was vested. In
reaching this conclusion it is apparent that
the learned judge gave great weight to the
words "I give and bequeath," as used in the
last clause which carried the remainder.
The court says a7 R. L 159, 20 AO. 296):
" The words "I give and bequeath" in a tes-
tamentary paper,' says Chief Justice Shaw in
Eldridge, Adm'r, v. Eldridge, Ex'r, 9 Gush.
(Mass.) 516, 519, 'import a benefit in point ot
right, to take effect upon the decease of the tea-
tator and the proof of his will, unless it is made
in terms to depend on some contingency or con-
dition precedent.' "
The court (17 R. I. 163, 20 AtL 207) reaf-
firms the established rule of construction
"that the Intention of the testator must gov-
ern, and that, when that appears, it ovwrides
all rules and precedents, making Its own
law. Tbia Is generally so, but the Intention
that has this effect Is the intention testa-
mentarily expressed; and when the testator
uses familiar legal words, he must be pre-
sumed to have used them in their ordinary
meaning till the ctmtrary clearly appears."
In the case at bar, however, the words "I
give and bequeath" are not used to carry the
remainder, but the following language is
used:
"I direct my said trustees and their successors
in said trust to discbarge tbemsdves of the trust
herein created by making fail and absolute con-
veyance of such property and estate as they
shall at that time hold in trust under this will,
to my heirs at law."
[2] The primary object in the testator's
mind was to protect his widow and children
during their lives ; they were to have the in-
come only of the estate, with no power to
touch the principal. By giving to the trustees
the power to sell and reinvest the proceeds
for the benefit of the cestui, the testator must
have had in mind the possibility of loss or
gain in the trust fund, but, whatever the
result, the share of each child in the Income
was dependent on two contingencies: First,
that such clilld should survive the widow
only; second, that the child or children who
survived took the share of the income of any
child who should die after the death of the
widow. Having thus protected the widow
and children during their lives, the mind of
the testator is then directed to the time of
the decease of the last survivor, and, hia
main object accomplished, he then has in
mind the closing of the trust, and directs
that what is left (either more or less) shall be
conveyed to his heira^ whoever they may be^
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TABEB ▼. TALCOTT
at the time of the closing of the trust. The
use of the word "heirs" in connection with
the direction to the trastees to convey what
remained of the trust pr<H?erty at the death
of the last survlror of the testator's wife
and children would seem naturally to show
that his mind was directed to that particular
time, and not to the time of his own death,
and that Ills intention was that his heirs
should be ascertained at the time of the dis-
tribution of the trust estate and not before;
in other words, that the prima facie meaning
of the word "heirs" should yield to the real
intention of the testator as manifested In
the words of bis whole wilL
The question as to the time for ascertaining
the members of a class described as the tes-
tator's "heirs" was before this court in De
Wolf V. Mlddleton, 18 R. I. 810, 814, 26 Atl.
44, 31 Atl. 271, 31 I* R. A. 146 (1893), where
a testator devised land to his daughters, their
heirs and assigns, and, "on both their de-
ceases" without issue, to bis heirs, and it
was held tliat the heirs were to be deter-
mined as of the date of the death of the sur-
viving daughter, and not as of the date of the
testator's decease. Stiness, J., said (18 B.
1, 815, 31 Atl. 271, 31 U E. A. 148) ;
"While the general rule is that the heirs of a
testator are to be taken from the time of his
death, yet the rule gives way to a contrary in-
tent to be found in the will."
Again in Tyler, 30 R. I. 690, 76 Atl. 661
(1910). In that case the testator devised to
his granddaughter, C, the residue of his es-
tate, "to her, her heirs and assigns forever" ;
"if said 0. should die without leaving
* • • issue born of her own body, then
in that case I give, devise and bequeath my
said estate to my heirs at law." O. died in-
testate without leaving living issue. Held
tliat the heirs of the testator were to be de-
termined as of the date of the death of C.
In the case of Branch, Trustee, v. De Wolf,
38 R, I. 395, 95 AtL 857, decided in 1915, the
testator devised his house to his wife for
life, then to Ills niece for life, then to a grand-
nephew on condition of his taking and bear-
ing the name of the testator, but if he re-
jected the condition, the house was to be sold,
and "the proceeds are then to be thrown with
the personal property, and the whole is to
be divided between my sisters if alive; or
their heirs, if dead, in equal proportions."
The grandnephew declined to take testator's
name and rejected the conditional gift It
was held that the word "heirs" as used in
this will meant the hetrs of testator's two
sisters .who were in being at the time when
the gift came into effect, npon the rejection
of the devise by the grandnephew, the will
showing the Intent of the testator to fix that
time for ascertaining the "heirs" who would
then be entitled to distribution of the fund ;
that the word "heirs" was not used in Its
technical sense, but as the estate to be divid-
ed was in the form of personalty. It would be
construed to mean those entitled to sncceed
to personal property in case of intestacy.
In Luttgen, Trustee, v. Tiffany et aL, 37
B. I. 416, 93 Atl. 182, decided in 1915, the
testator by his will bequeathed his estate In
trust, to pay over the income to the widow
during her life, with bequest over of —
"aU of my estate which may be remaining in
the hands of my said tnistee at the time of the
decease of my said wife, to my children, share
and share alike, and should any of _my chil-
dren die, previous to their mother having child
or children my will is, that the issue of such
deceased child, ediall take from my estate the
share its parent would have taken had that par-
ent survived its mother, and that subject to
these provisionB my estate shall vest in my diil-
dren uoresaid in fee simple."
The court held that the intention of the tes-
tator was not to give any present estate or
interest to the children at the time .of his
death, but to postpone the gift to them un-
til the decease of the wldaw, and that during
the lifetime of the widow the children had
only a future possibility contingent upon their
survlvaL
It is to Im noted that, although the words
"I give, devise and bequeath" were used to
convey the remainder, and that the testator
specifically provided that "subject to these
provisions my estate shall vest in my children
aforesaid in fee simple," the court held that
the gift in remainder, was contingent both
as to the time of vesting and as to the per-
sons in whom it would vest
For the reasons stated our answer to the
first question submitted to us is that the will
of Hezeklah Allen did not give to the persons
who answered the description of his heirs at
law at his death vested equitable interests
In fee in the trust property, but that it did
give contingent equitable interests in fee to
those persons who would answer the de-
scription of his heirs at law at the time of
the death of the last survivor of his wife and
children, if he had Just then died intestate
and without issue.
[3] As the will provides for no difference
In the disposition of real and personal prop-
erty, our answer to questions 2 and 3 is the
same, namely, that it was the duty of the
trustee, on May 8, 1912, to convey all of the
ipersonal pr<^>erty of the trust estate in his
possession at that time to the persons who on
that date answered the description of the
heirs of Hezeklah Allen, the same to be di-
vided among them in accordance with the
statute of descent and distribution.
[4] As to the fourth question relating to
land in Connecticut, our answer is the same
as to the preceding questions. This piece of
property is of comparatively small value, and
at the hearing of this cause no claim was
made by counsel that there was any differ-
ence In the law of Connecticut as to descent
from the law of this state; and, in the ab-
sence of any evidence on this point, .we as-
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101 ATLANTIC RBPOETBB
(B.L
same that there Is no difference In the laws
of the two jurisdictions.
The parties may present to the court a de-
cree In accordance with this opinion on or be-
fore the l£th day of June, 1917.
(40 R. I. 320)
WELLS T. GREAT EASTERN OASUALTT
CO. (No. 4991.)
(Supreme Court of Rhode Island. June IS,
1917.)
insuranck «=»141(4)— aoceptawck of lite
Policy— Estoppel to Dent Application.
Where insared accepted a life policy issued
"in consideration of the atnreements and state-
ments in the application, a copy of which is in-
dorsed hereon and made a part hereof, which the
insured makes and warrants to be true and ma-
terial by the acceptance of this policy," both
he and the beneficiary were bound By statements
therein and estopped from denying the making
of the application, although it was not signed,
especially so where defendant Insurer had at-
tached to its plea a cop^ of the policy showing
a signed application which was not objected to
by plaintiff beneficiary in repllcati<M> thereto
but was treated throughout the case as a true
copy of the application.
(Ed. Note.— For other cases, see Insurance,
Cent Dig. I 282.]
On motlou for rearsuotent Moti4XX doiied.
For former opinion, see 100 AtL 395.
Walter P. Saesman, of Providence, and
Asa B. Saesman, of Springfield, Mass., for
plaintiff. Boss & Bamefield, of Frovldeace^
tot def^idant.
SWEETLAND, J. The case Is before as
upon the plaintiffs motlou for a reargoment.
In said motion for the first time appears the
plalntifTs claim ttiat according to the evi-
dence the Insured never signed the appli-
cation, a copy of which is Indorsed on the
policy, and that consequently the Insured
made no statement or warranty of any kind
In obtaining the policy. At the trial, as
part of her proof, the plaintiff Introduced
what she stated was the policy upon which
she based her suit, and the same is among
the papers of the case and Is marked, "Plff.'s
Ex. 1." On the badt of said exhibit Is a
"C!opy of Application." She now calls the
court's attention to the fact that In said
copy of application the space for the signa-
ture of the applicant Is blank. In our opin-
ion this claim should not avail the plaintiff.
A portion of said copy of application Is as
follows:
"I hereby apply for a policy to be based upon
the followmg statement of facts, all of which
I warrant to be true, complete and material
and binding on me, whether written by me or
any other person. ••*(!) My full name is
Winfield Scott Wells, M. D."
Then follow 22 distinct statements of fact,
including the one marked "12," which Is in
controversy In the case and has been con-
sidered In the former opinion of the court
100 Atl. 395. By Its terms the poUcy Is Is-
sued "in consideration of the agreements and
statements in the application, a copy of which
is indorsed hereon and made a part hereof,
which the Insured makes and warrants to be
true and material by the acceptance of this
policy." Among the "agreements" contained
in the policy Is the following:
"(11) This policy with the copy of application
and any riders or indorsements signed by an
officer at the hcnne ofSce and indorsed hereon
or attached hereto ^all constitute the entire con-
tract of insurance."
It is plain from the terms of the policy,
accepted by the Insured, that the existence
of an a[>plication by the Insured and the
truth of the statements therein contained
have t)een made by ttie parties matters ma-
terial to the acceptance of the risk. The
obligation of the Insurer is based upon the
existence of an application binding upon the
insured. If no application existed, contain-
ing the agreements and statements referred
to in the policy, that consideration upon
which the policy was Issued was lacking,
and the plalntUTs action based upon the pol-
icy should fail
In our opinion, If the insured accepted
said policy, he would be precluded by es-
toppel from denying that he made the ap-
plication, a copy of which was Indorsed on
the policy; and both he and the Iieneflclary
would be bound by the statements and war-
ranties contained in such copy of applica-
tion, although the insured had neglected to
sign bis name at the foot of the application.
It further appears by reference to the plead-
ings in the case that the defendant in its
second plea alleged that before It issued said
policy it required the Insured in his applica-
tion to warrant as true said statement niun-
bered 12. With this plea the defendant filed
a copy of the policy having the copy of ap-
plication indorsed there<«, and In said copy
of application the blank for the signature of
applicant Is filled with the name of "Winfield
Scott Wells, M. D." In her replication to
this plea the plaintiff alleges:
"That she ought not to be barred from having
and maintaining her aforesaid action against
said defendant because she says that the state-
ment contained in the original application that
no accident, sickness, or life insurance policy
issued to the said Winfield Scott Wells had
even been canceled or renewal refused, was true
when said statement was made, and was true
at the date oi each renewal of the said contract
of insurance."
The plaintiff in said replication and
throughout the travel of the case has treated
said eoRy as a copy of application made by
Winfield Scott Wells and binding upon him
and upon her.
The other matters contained In the plain-
tiflfs motion for reargument have been ful-
ly considered by the court before filing its
former opinion In the case.
The motion for reargument is denied.
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SOMMEBS y. ADBLMAN
VAGUB V. TiTOIP!, CSir Treaaoxer. (No. 6017.)
(Sopieme Court of Rhode IsUnd. June 19,
1917.)
Exceptions from Superior Court, Providence
and Bristol Counties ; Greorge T. Brown. Judge.
Bill by Mary E. Fague against William M.
Lee, City Treasurer. On defendant's exceptions
from the superior court. Exceptions overruled,
and case remitted, with directions.
Washington R. Prescott and Edward H. Zieg-
ler, both of Providence, for plaintiff. Frank H.
Wildes, City SoL, of Cranston, for defendant.
PER CURIAM. Upon due consideration of
the briefs and arguments of counsel, and of the
evidence in this case, which was conflicting, we
find that there was ample evidence to sustain
the verdict of the jury in favor of the plaintiff,
both as to the liability of the defendant and as
to the amount of the damages awarded. There
was no error in the denial of the defendant's
motion for a new trial.
We have examined the several exceptions
urged in behalf of defendant on its brief, based
upon admission and exclusion of testimony, and
we do not find reversible error in any of such
admissions or exclusions; nor do we find any
of such exceptions of sufficient importance to
warrant extended discussion.
The defendant's exceptions are all overruled,
and the case is remitted to the superior court,
sitting in Providence county, with direction to
enter its judgment for the plaintiff upon the
verdict
McNeill t. fret. (No. 341.)
(Supreme (Tonrt of Rhode Island. June 19,
1917.)
Appeal from Superior Court, Kent County;
Chester W. Barrows, Judge.
Action by William McNeill against Charles
T. Frey. From a decree dismissing the bill,
plaintiff appeals. Appeal dismissed, decree af-
firmed, and cause remanded.
Philip S. Knauer and George Hurley, both
of Providence, for complainant. William R.
Champlin, of Providence, for respondent.
PER CURIAM. This is an appeal from a
final decree of the superior court dismissing the
complainant's bill of complaint. At the hear-
ing before the superior court certain issues of
fact were framed by the judge presiding there-
in, after a consultation with counsel, and the
issues of fact, as finally settled by the court^ were
assented to by the counsel, and no exception to
the settlement of such issue was taken by either
party. The superior court has decided the ques-
tions of fact in issue, and it is apparent, from a
consideration of the decision of the court on
file in this case, that the case was carefully con-
sidered by the court. After consideration of
the arguments and brie& of counsel, and of the
testimony in the cause, we are of the opinion
that there is ample testimony to sustain the de-
cision of the superior court, and we find no er-
ror in the decision appealed from.
Apipeal of complainant dismissed, decree of
superior court appealed from affirmed, and cause
remanded to superior court for further proceed-
ings.
an C(Hu. sw)
SOMMERS T. ADELMAN.
(Supreme Court of Errors of Connecticut
June 1, 1917.)
New Tbial <8=»72— Sbttino Aside Verdict-
Evidence.
T\Tiere plaintiff's evidence that he was exer-
cising ordinary care was flatly contradicted by
the only witnesses who saw the accident, two of
whom were produced by plaintiff and two by de-
fendant, the judge was justified in setting aside
the verdict for uie plaintiff.
[Ed. Note.— For other cases, see New Trial,
Cent Dig. tS 14&-148.]
Appeal from Court of C!<nnnion Pleas, New
Eaveu County; Earnest C. Simpson, Judge.
Action by Charles Sommers against Max
Adelman. From an order setting aside a
verdict for plaintiff, plaintiff appeals. - No
error.
See, also, 90 C!onn. 713, 99 Aa. 60.
Robert J. Woodruff, of New Haven, for
appellant. Philip Pond, of New Haven, for
appellee.
PER CURIAM. The trial judge set aside
the verdict rendered for the plaintiff for the
reason that he had failed to present evidence
from which the Jury reasonably could have
reached the conclusion that he was free from
contributory negligence. The testimony giv-
en by the plaintiff, if accepted as true, fur-
nished a reasonable basis for the finding that
he was In the exercise of due care. That
of the only other witnesses, who profess to
have been present upon the scene of the ac-
cident and observers of what transpired,
while not fully In accord with each other,
were aliKe Inconsistent with the plaintiff's
story and with the exercise by him of rea-
Brn"hie care. These witnesses were four In
number ; two produced on behalf of the plain-
tiff and two on behalf of the defendant.
The plaintiff's case. In so far as the element,
of care on bis part is concerned, stands en-
tirely upon his own testimony. That testi-
mony, in so far as It touched the matter of
vital importance, bears such marks of Im-
probability, and is so opiwsed to that of the
other witnesses, that the trial judge was
justified In holding that It was so overwhelm-
ingly disproved and discredited that the
verdict of the Jury, based upon an acceptance
of it, could not have been arrived at reason-
ably.
There is no error.
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101 ATIiANTIO BEPORTEOt
(Oona.
(91 Oonn. tOi
MESREtJESS T. DETLBMOS et tiz.
(Supreme Court of Errors of Conaecticat, June
1, 1817.)
1. Covenants <8=>108(1)— Covenant Aoainst
Incumbkances— Pabol Aobeement as Dk-
rENSE.
A parol agreement by a grantee to pay tax-
es as part consideration for the conveyance is a
good defense in an action by tbe grantee on the
covenant against Incumbrances.
[Ed. Note. — For other cases, see Covenants,
Cent Dig. |§ 175. 179, 18^185.]
2. Assignments <g=9l04— Eqttities.
The claim of an assignee is subject to the
equities it would have been subject to bad tbe
suit been brought in the name of the assignor.
[Ed. Note.— For other cases, see Assignments,
Cent Dig. $ 183.]
8. Covenants ®=9l08(l)— Tbusts «=s>81(2) —
Resulting Tbust.
Where no part of the consideration for a
conveyance came from a wife who was grantee
in the deed, her husband being the real party in
interest, equity will treat her as trustee for her
husband, holding the naked legal title, and will
permit the grantor or covenantor to make any
defense as against her that conid b« made
against her husband.
[ISd. Note. — For other cases, see Covenants,
Cent Dig. U 175, 179, 182-185; Trusts, Cent
Dig. i 116.]
4. Estoppkl «s>74<2) — Bxohanok of Peop-
BBTT.
Where a husband exchanged his land, and it
was agreed that incumbrances on each property
should be determined, and that the grantor of the
property on which the amount was greater
should pay the excess to the other party, and
that each party should then pay the incum-
brance upon the land received, and tbe excess
was on the husband's property, and be paid the
amount to the other parties, who paid the in-
cumbrances on the property they received from
the husband, tbe other parties could invoke tbe
doctrine of equitable estoppel against an action
for breach of covenant against incumbrances
brought by the assignee of the wife of the hus-
band, the deed having been made to her as gran-
tee at the husband's request, Uie wife not hav-
ing been a party to the negotiations leading up
to the exchange, and not having been present
when tbe deed to her was made and delivered to
her husband, and not knowing of the transaction
until later, when she ratified it
[Ed. Note. — For other cases, see Estoppel
Cent Dig. f$ 190, 191.]
Appeal from Court of Common Pleas, Fair-
field County ; John J. Walsh, Judge.
Action by C. A. F. Mereness against Albert
Delemos and wife. From a judgment for
plaintiff, defendants appeal. Judgment set
aside, with directioii to render Judgment for
defendanta
Tlie plaintiff brings tbis action as an as-
signee of a claim for damages alleged to
have been sustained by one Edna. A. Blbbins
on account of a breach of warranty In a deed
given to her by the defendants. One para-
graph of the defendants' answer is that:
Edna Blbbins was substituted for Royal E.
Blbbins as grantee in this deed and repre-
sented and stood in the position of Royal E3.
Blbbins, and as part consideration for this
deed the defendants paid to Royal E. Blbbins
tbe amount of taxes and liens, and the de-
fendants satisfied all obligations on their part
under any covenants against incumtoano
es in this deed by paying the amount of the
taxes and liens to Royal E, Blbbins, acting
for himself and Edna A. Blbbins.
The finding shows that prior to July 24,
1897, one Royal E. Blbbins entered into nego-
tiations with the defendants for the exchange
of land owned by Blbbins at Bridgeport,
Conn., for land owned by the defendants at
Mt Vernon, N. Y. On July 24, 1897, deeds
were exchanged between these parties, the
defendant giving a warranty deed of the Mt.
Vernon property, which deed contained a
covenant that the Mt Vernon property was
free from all incumbrances except two mort-
gages, one for $1,500, and another on which
the sum of $80 was then due. At the time
of making this warranty deed, at the request
of Royal E. Blbbins, the name of his wife,
Eidna A. Bibldns, was inserted in it as the
grantee Instead of that of Royal E. Blbbins.
Edna A. Blbbins was not a party to the nego-
tiations resulting in the conveyance of this
land, paid none of the consideration, and
was not present when the deed was made and
delivered. She learned of the transaction
later and ratified the same. At the time of
the exchange of these deeds it was agreed
between Royal El Blbbins and the defendants
that the equities of the two properties, over
and above the mortgages on each, were of
equal value, and that the properties would be
exchanged on that basis. It was also agreed
between than that all other Incumbrances on
each property. Including taxes, assessments,
interest, etc., should be figured up and de-
termined, and that the grantor of the prop-
erty on which the amount of such incum-
brance was the greater should pay the excess
or difference to tbe other party or parties,
and that each party should then pay the
Incumbrance on the land which he or they
received by tbe exchange. These incum-
brances were then determined. It was ascer-
tained that the amount of such incumbrance,
over and above the mortgage^ on the prop-
erty conveyed by Blbbins exceeded the in-
cumbrance on the property deeded by the de-
fendants to tbe amount of $46. This sum
was then paid by Royal E. Blbbins to the de-
fendants. The defendants paid the incum-
brance on the property they received from
Royal B. Blbbins. At the date of this con-
veyance, on July 24, 1897, there were Incum-
brances on the Mt Vernon land, deeded by
the defendants, over and above the mortgag-
es, consisting of taxes, assessments, and
Hens amounting to $269.67. These incum-
brances were paid by the plaintiff. On May
23, 1898, Edna A. Blbbins conveyed to the
plaintiff the land In Mt Vernon, N. T., and
warranted tbe same to be free from incum-
brance except the two mortgages. On Oo-
e=aFor other caaea see uma topic and KBY-NUUBEK In all Ker-Numbered Dlswta and IndWM
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Conn.)
CLiABK ▼. BAK£R
9
tober 81, 1804, Edna A. Blbblns assigned to
the plaintiff herein all right of action she
might have against the defendants for a
breach of warranty In the deed which th^
bad given to Mrs. B. B. Bibbins. The consid-
eration for this assignment was the promise
by the plaintiff not to bring an action against
Edna A. Bibbins on the covenants contained
in the deed of May 23, 1898.
Tbomas i/L Culllnan, of Bridgeport, for ap-
pellants. Edward K. Nicholson, of Bridge-
port, for appellee.
RORABACK, J. (after stating the facts as
above), "it has long been an accepted princi-
ple that equity will, under proper circumstanc-
es, give effect to a parol agreement relating to
the sale of lands where the moving party in-
duced by it has pursued its provisions and
partly performed it. The soundness of the
reasoning underlying this doctrine, and its
wisdom, have both been questioned, but it
has become too firmly rooted in our jurispru-
dence to be disregarded." Verzier et al.
V. Convard, 75 Conn. 6, 62 Atl. 265.
[1] A parol agreement by a grantee to pay
taxes as a part of the consideration of the
conveyance Is a good defense in an action by
the grantee on the covenant against incum-
brances. Brackett v. Evans, 65 Mass. (1
Gush.) 79; Preble v. Baldwin, 60 Mass. (6
Gush.) 549.
It, S] The plaintiff in the present case rep-
resents the rights which Mrs. Edna A. Bib-
bins had against the defendants. As such
assignee bis claim is subject to the same
equities as it would have been had the suit
for damages been brought in the name of
Mrs. Bibbins. The question, therefore, is
whether Mrs. Bibbins could have recovered
for these taxes and assessments if she liad
paid them. They were adjusted and in fact
paid by the defendants in the arrangement
made with them by the husband of Mrs.
Bibbins. These taxes and assessments en-
tered into and were made a part of the con-
sideration of the deed which was given by
the defendants to Mrs. Bibbins. If the deed
bad been given to the husband by the de-
fendants it could not be seriously claimed
that he would not be Iwund by the arrange-
ment which he had made with the defend-
ants. Bat it appears that Mr. Bibbins, act-
ing for bis wife, directed that this convey-
ance be made to her, and it was so made;
Thus it appears that Mrs. Bibbins was a
grantee in name only. She was not a real
party to the transaction. No part of the con-
sideration came from her. The husband was
the real party in interest 'This being so,
eqnlty would treat her as the trustee for her
hnsband, holding the naked legal title, and
would permit the covenantor to make any
defense as against her that could be made
against her husband. • • •" Reld v.
Sycks et al., 27 Ohio St. 289. Acting upon
this agreement thus made, the defendants
were induced to part with their property
by the deed which they gave to Mrs. Bibbins,
and to pay the incumbrance upon the proper-
ty conveyed to them to Bibbina
[4] They may well Invoke the doctrine of
equitable estoppel, "^he modern estoppel in
pals is of equitable origin, though of equal
application in courts of law. It is much
more than a rule of evidence. It establish-
es rights; it determines remedies. An equita-
ble estoppel does not so much shut out the
truth as let in the truth, and the whole
truth. Its office is not to support some strict
rule of law, but to show what equity and
good conscience require, under the particular
circumstances of the case, irrespective of
what might otherwise be the legal rights of
the parties." Ganfleld, Trustee, v. Gregory,
66 Gonn. 17, 33 Atl. 636.
It is of importance to note that the trial
court finds that Mrs. Bibbins was not person-
ally a party to the negotiations leading up
to the conveyance of this real estate, and
was not present when the deed from the de-
fendants was made and delivered, and did
not know of this transaction until later, when
she ratified the same. "The general rule as
to the effect of a ratification by one of the
unauthorized act of another respeicting the
property of the former is well settled. The
ratification operates upon the act ratified pre-
cisely as though authority to do the act had
been previously given, except where the rights
of third parties have intervened between the
act and the ratification." Gook v. TulUs, 18
Wall. (85 U. S.) 322, 21 L. Ed. 936.
In the present case we may lay aside any
rights of the plaintiff as a third party. As
we have seen he is simply the assignee of
what right, title, and interest belonged to
Mrs. Bibbins when she made the assignment
of this claim to him. His legal rights as as-
signee were the same and not more than
ttiat of Mrs. Bibbins. He took his claim sub-
ject to all of the legal and equitable def«ises
of the defendants.
There is error, the Judgment is set aside,-
and the court of common pleas is directed to
render Judgment for the defendants, nie
other Judges concurred.
91 Oonn. 663)
CLARK V. BAKER et al
(Supreme Court of Errors of Connecticat.
June 1, 1917.)
1. Wills ®=>601(1)— Constbuotion— Estatbs
CREATin — Absolute Estate with Quau-
FYiNo Provisions.
A devise in fee or absolute gift once made
in terms may be cut down by a subsequent pro-
vision clearly indicating testator's mtent to
create a lesser interest.
[Ed. Note.— For other cases, see Wills, Cent.
Dig. i§ 1340, 1341.]
2. Wills (g=>601(8), 612(4) — Conbtkuction —
Estates Cheated — Absolute Estate with
Qualifying Provisions.
Wife's will devisine and bequeathing all her
estate to her husband, his heirs and afwigns.
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10
101 ATLANTIC REPORTER
(Conn.
"but it is my wiah and desire that after bis
decease so much as is left nnased by him be
divided," etc., was a devise in fee of realty and
an absolute bequest of personalty to huwand;
as the quoted words were expressive of wife's
desire alone, and did not create a trust.
[Ed. Note.— For other cases, see Wills^ Cent
Dig. II 1348, 1391.]
3. WnxB €=>487(1)— Intent of Testatrix—
EVIDKNCB— BKNKFICIAKT'S IlNDEBSTANDINa.
Husband's statements to effect that he un-
derstood that his wife's wiU gave him a life
estate were not competent evidence of wife's
meaning of language used by her in creating the
interest of the husband.
[Ed. Note.— For other cases, see Wills, Cent
Dig. §1 1023, 1029, 1031.]
Appieal from Superior Court, lAtcbfleld
County; William U Bennett, Judge.
Suit by Andrevr M. Clark, administrator,
against Emma J. Baker and others to de-
termine the construction of the wlU of Mary
E. Baker, deceased. From a Judgment ad-
verse to her claims, Ethel 6. Baker Palmer
appeals. No error.
Mary E. Baker died July 7, 1911, leaving
a WiU duly probated by which she made the
following disposition of her estate:
"I give, devise and bequeath all of my estate
both real and ];>er8onal to my husband, Jacob
Baker, his heirs and assigns, but it is my wish
and desire that after his decease so much as is
left miused by him t>e divided equally between
our adopted son Roy H. Baker and Ethel G.
Baker."
The busband, Jacob Baker, was named ex-
ecutor without bonds. The plalntlfC is his
successor hy appointment of the probate
court
The testatrix and her hudiahd, during
their married life, which covered 30 years,
and down to her death, occupied a farm in
Goshen which, together with the farm Imple-
ments thereon and the household furniture
and appointments, Mrs. Baker had Inherited
from her parents. They were childless. Dur-
ing the early years of their married life they
took to live with them and bring up the de-
fendants Roy H. Baker and his sister Ethel
G. Baker Palmer, children of a niece of Mrs.
Baker. Ethel, who was bom in 1884, was
so taken when she was about 3 years of age,
and thereafter remained with the Bakers un-
til she was 17 years old, when she married.
Roy, who was older than Ethel, had been pre-
viously taken, and legally adopted. Ethel
was never adc^ted. The children, whose
name at birth was Payne, took the name of
Baker, and were brought up by the Bakers
as If they were their children. They ad-
dressed the Bakers as father and mother, the
relation between them and their foster par-
ents was cordial and like that between par-
ents and children, tmd no distinction t>etween
them in that regard was made. After Ethel
was married she returned to the Baker home
from time to time, and whenever Mrs. Baker
was sick Ethel was called for, and always
went and took care of her foster mother.
During Mrs. Baker's last illness Ethel re-
turned and cared for her until she died.
Mrs. Baker at her death owned the farm In
Goshen together with the personal property
thereon and other personal estate. After her
death Jacob continued to occupy the farm
until September, 1913, when he married the
defendant Emma Wilcox, his housekeq>er.
Thereafter they continued in the. occupancy
of the farm until Jacob's death, intestate,
March 24, 1915. No conveyance of the farm
was made.
During the trial there was offered on be-
half of Ethel a letter written to her by Jacob
in Septemtier, 1913, subsequent to his re-
marriage, containing statements Indicative of
Jacob's understanding of his former wife's
will and of Ethel's rights under it and also
of oral statements to the same effect made by
Jacob to her subsequent to Mrs. Baker's
death. This evidence, under objection, was
excluded.
The advice of the superior court was asked
in answer to the following questions:
(a) Did Jacob Baker take an estate in fee
in the real and an absolute estate in the per-
sonal property of said Mary E. Baker by said
second clause of her ^vUl?
(b) If said Jacob Baker did not take an
estate In fee or an absolute estate by said
clause of said will, did he take a life estate
only?
(c) Are Roy H. Baker and Ethel G. Baker,
now Ethel G. Palmer, entitled to all of the
estate of said Mary E. Baker at death of
said Jacob Baker, and upon the completion of
the settlement of her estate?
Walter Holoomb, of Torrington, for ap-
pellant William W. Bierce, of Torrington,
for appellees Emma J. and Roy H. Baker.
John T. Hubbard, of Litchfield, for plaintiff.
PRENTICE, C. J. (after stating the fdcte
as above). The disposing portion of the will
under consideration is confined to a single
sentence forming the second paragraplL In
the first half of that sentence the testator
nsed language apt for a devise in fee of real-
ty and for an absolute bequest of personalty.
If the will had stopped at that point there
could be no doubt that Jacob Baker, upon the
death of his wife, became vested with the
fee in her real estate and with the absolut<
ownership of her personal property.
[1] A devise in fee or absolute gift once
made in terms may, however, be cut down to
a lesser estate by subsequent provisions
clearly indicating the testator's Intent that
the devisee or legatee should take by the will
some lesser estate. Plaut v. Plant, 80 Oonn.
673, 677, 70 AtL S2. The subsequent lan-
guage, to have this effect, must not be of
doubtful meaning or uncertain in its indica-
tion of the testator's Intent Mansfield v.
Shelton, 67 Conn. 390, 394, 35 Atl. 271, 52 Am.
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CoanO
TOWN OF HAMDEN v. CITY OP NEW HAVEN
11
St Hep. 285; Strong t. ElUott, 84 Gonn.
885, 671, 81 Aa 1020.
[2] -The Bubaequent -words In this paragraph
forming the second half of the sentence fail
to satisfy these conditions. They are ezpres-
slTe of the testatrix's wish and desire that
Roy and Ilthel should share that portion of
her estate which her husband left unused,
but ftill far short of indicating a purpose
on ber part either to make such dispositton
herself or to Impose upon her husband a
mandatory direction creative of a trust. It
is to be noted that the {^t to her hus-
band Is made to him, his heirs and assigns.
With that fact in view It Is especially dif-
ficult to say that the will clearly Indicates a
testamentary Intent that the husband should
not take a transmissible estate.
The ftacts concerning the relation of Ethel
to the testatrix disclosed by the record are,
indeed, very suggestive of the former's de-
serts, and strongly indicative that the ends
of fairness and Justice would have been sub-
served by some testamentary remembrance of
her. Apparently Mrs. Baker had it In her
heart that Ethel should ultimately profit by
receiving some share of her estate should
Jacob leave any unused. The difficulty of
the situation is that such feeling on her part
was not so adequately or clearly expressed
that the law with all of Its liberality, can
give it effect as a testamentary provision.
[3] The testimony offered concerning
Jacob's oral and written statements to Ethel
evidencing his understanding of his wife's
will as giving him only a life estate with the
remainder over In any unused portion to Eth-
el an'd her brother was properly excluded. It
was not competent evidence of Mrs. Baker's
understanding of the meaning of her lan-
guage used in the will or of her intent in us-
ing It
There is no error. The other Judges con-
curred.
(81 Conn. 589)
TOWN OP HAMDE:N v. C3ITX OP NEW
HAVEN.
(Sapreme Court of Errors of Connecticut
June 1, 1917.)
1. Taxatiow «=3217 — Exemption — MoNici-
PAL PlfOPKUTT— CONSTBHCTION OF STATUTE.
Gen. St 1002, f 2315, exempting municipal
groperty from taxation, exempts ail property
eld by municipalities for pubUc use, altliough
it is located in another town, the devotion of the
property to the public use being the sole ground
of exemption, and not depending on the bmefit
accruing to the public from such use.
[Ed. Note.— For other cases, see Taxation,
Cent Dig. §i 355, 356.]
2. Taxation fi=>241 (2)— Exemption— Munici-
PAL Propbrtt— Land Used in Connection
WITH POOK FABH.
Land used for necessai^ pasturage, growing
crops, and keepinjr stock in connection with a
poor farm was exempt from taxation under Gen.
St 1902, § 233 s, providing for exemption of
monidpsl Tropert^ devoted to public use, the
.own being authorized to operate a poor farm.
and it was immaterial that the surplus produe-
ti<Mi of the farm was disposed of for profit such
use being a part of the general scheme provided
by sections 2476-2492 to prevent persons "un-
der any drcumstances from suffering for the
necessities of life."
[Ed. Note.— For other cases, see Taxation,
Cent Dig. i 390.1
3. Paupebs «=»9 — Maintknanck of Pcob
Farm.
Under Gen. St 1902, gf 2476-2492, provid-
ing for care of the poor, a municipality in pur-
chasing land for a poor farm ia not confined to
present immediate needs, but may include rea-
sonable provision for future requirements, may
cultivate such farm, and sell the surplus produc-
tion.
[Ed. Note.— For other cases, see Paupers, Cent
Dig. if 12, 21.)
4. Taxation «s»241(2) — Poob Pa«m — Con-
btbuction of statute.
Gen. St 1002, | 2416, providing for the non-
exemption from school taxes of a poor farm
within a school district indicates that such
property is not taxable for any other purpose.
[Ed. Note.— For other cases, see Taxation,
Cent Dig. { 390.]
5. Taxation <s=»217 — Assessment — Public
Pbopebty— Owner's Name.
Taxes assessed against property belonging to
the town of N. H. could not be recovered where
property was actually owned by the city of N.
H., in view of Gen. St 1902, i 2299, requiring
property to be assessed in name of record owner.
[Ed. Note.— For other cases, see Taxation,
Cent Dig. i§ 355, 356.]
6. Taxation ©=»217 — Exemption — Munici-
pal Pbopebty— Abandonment.
Property purchased by a municipality for
publio purposes, but which had been abandoned
for more than 20 years, and which bad not been
uj«d for any purpose by the municipality, was
not exempt from taxation.
[Ed. Note.— For other cases, see Taxation,
Cent. Dig. §§ 355, 366.]
Appeal from Court of Common Pleas, New
Haven County ; Earnest C. Simpson, Judge.
Action by the Town of Hamdeu against
the City of New Haven under statute to re-
cover taxes. Judgment of Court of Common
Pleas for plaintiff, and both parties appeal.
No error.
Charles F. Clarke, of New Haven, for
plalntifT. Charles Kleiner and Henry H.
Townshend, both of New Haven, for defend-
ant
WHEELER, J. O^e town of Hamden sues
to recover for taxes assessed on three pieces
of real estate located In Hamden, Just over
the dividing line between New Haven and
Hamden and adjacent to the Sprlngside
farm, which, in connection with the Spring-
side Home, is owned and operated as a town
poorhouse and farm for paupers belonging to
the town of New Haven.
The first piece, called the Merdiant piece,
was purchased April 1, 1885, by the town of
New Haven, and ever since has been used in
connection with Sprlngside farm for the pur-
pose of pasturage, and was reasonably neces-
sary for that purpose. The third, or Mar-
tlno, piece, was purchased In 1903 by the city
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of New Hayen, and has ever since been nsed
for pasturage and for growing crops for the
use of the Inmates of the poorhouse, and for
stock kept on the farm, and it was reason-
ably necessary for that purpose. The second,
or Thomas, piece, was purchased in 1892 by
the town of New Haven for the purpose of
providing a water supply for the poorhouse
and farm, but, this purpose proving impracti-
cable, it was abandoned, and for 20 years
this piece has not been used for any purpose
and has remained rocky woodland, covered
with scrub oaks.
The dty of New Haven by consolidation
with the town of New Haven became vested
with its property prior to December 7, 1897,
and liable for all debts which were enforce-
able against the town of New Haven.
All of the products raised on tbe farm
were consumed upon the farm except a small
quantity of hay which was used by the de-
partment of public works of the dty. Some
of the live stock raised in excess of tbe needs
of the farm was sold. Upon the farm was
conducted a piggery supported by the dty of
New Haven and maintained for the purpose
of consuming tbe garbage collected in the
dty. The products of the piggery amounted
to $18,000 annually, and about two-thirds of
these were consumed by the inmates of the
poorhouse and one-third sold in the market.
The defendant claims that all of these
pieces of land were exempt from taxation be-
cause used for public purposes only. The
plaintiff claims that none of these pieces
were exempt, because their use was not for a
public purpose and could be of no benefit to
the town of Hamden, and in effect would com-
pel Hamden to share the support of New
Haven's paupers. The trial court held that
the first, or Merdiant, piece, and tbe third,
or Martino, piece, were exempt from taxa-
tion, and the second, or Thomas, piece, was
not exempt
[1] General Statutes, { 2315, as construed
by our court in West Hartford v. Water
Commissioners, 44 Conn. 368, exempts from
taxation all property held by munidpaUties
for public use. And this rule obtains, al-
though the property belonging to one town is
located in another town which claimed the
right to tax it. In either case the property
will be exempt when it is used for, or em-
ployed in a public use. The devotion of the
property to a public use la the sole ground
of the exemption. West Hartford v. Water
Commissioners, supra; New London v. Per-
kins, 87 Conn. 233, 87 AU. 724.
Counsel for the town of Hamden advance
the theory that the principle behind an ex-
emption from taxation of the property of one
town located in another town is a benefit ac-
cruing to the public from the public use to
which the land is put, and that the absence
of such benefit removes the foundation for
such exemption. With us this theory has
never had a foothold. The main reliance of
tbe plaintiff la upon tbe case of Newport t.
Unily, 68 N. H. 593, 44 AH. 704, 73 Am. St.
Rep. 626. The point dedded related to the
statute of New Hampshire. The argument of
the <9inion supports the prlndple contended
for, but tbe court expressly notes that our
dedfilon in West Hartford ▼. Gommissionera
holds that the property is exempt from taxa-
tion "because it is used for public purposes."
This is the prlndple of our decisions and it
conflicts directly with the New Hampebire
doctrine.
[2, 3] The plaintiff's appeal is to be dedd-
ed by ascertaining whether tbe uses of the
Merdiant and Martino pieces were for a pul>-
lie purpose. Our statutes providing for the
care of the poor were framed in the humane
purpose "to prevent as far as possible any
person, under any circumstances, from suf-
fering for the necessaries of life." G. S. S|
2476-2492. Charter of New Haven, S 202,
fulfills a similar purpose. Beyond question
this is a pubUc purpose and a legitimate ex-
erdse of governmental power. The statutes
(section 2490) expressly authorize the mainte-
nance of poorhouses for the poor and the
charter of New Haven expressly makes all
statutory provisions concerning town poor-
houses applicable to the dty of New Haven.
The town of Hamden contends that New Ha-
ven is without authority to own or operate
a town farm, and that such operation is con-
sequently not for a public purpose.
Assuming that this question is open for
consideration in a proceeding to collect a tax,
we find ample warrant in the provision of
Charter, § 204:
"Said board shall have power to employ and
discharge a manager of Springside farm and
home," etc.
Here Is an implied authority to maintain
this farm. Town farms have been operated
in connection with our poorhouses from an
early day. The inmates of the poorhouses
have worked upon these for the production of
food for themselves. This not only gave the
inmates healthy work, but it helped make
them self-supporting, and thus tar relieved
the town of its burden of support.
To provide food for the poor In this way is
as much a public purpose as to provide shel-
ter in the poorhouse. Tbe duty of caring for
the poor imposed by our statute upon our
towns may be performed in every reasonable
way and by the use of every reasonable
means. The town farm is a reasonable way
and means for furnishing support for tbe
poor. The sale of some of the produce of the
farm and of the products of the piggery were
Inddents to the main purpose, the support of
the poor. The town and dty were not intent
on c<»ducting a business for profit. They
were merely disposing of their surplus pro-
duction. What was sold in no way changed
the public purpose of the imdertaking. It
made production dieaper and cultivated and
used the farm more than it would otherwise
have been used. The extent of the land
which the town mij^t purdiase for a farm is
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PETTIS V. PETTIS
13
not to be confined to present Immediate
needs, but may Include reasonable provlslcHi
for future requlrMnents, and whatever the
town may reasonably own for a farm It may
cultivate; and whatever products it raises
thereon beyond Its needs It may dispose of.
White V. Stamford, 37 ConiL 678 ; County of
Camden v. Collins CoIL, 60 N. J. law, 367,
87 AtL 623.
The use of the Merchant and Martlno piec-
es as a part of the farm for pasturage was
necessary for pasturage for the farm, and the
use of Uie Sfartlno piece for growing crops
for the inmates of the poorhouse and for the
stock kept upon the poor farm are found to
have been reasonably necessary for these
purposes. This finding settles the question
of their public use.
We cannot anticipate disaster to the towns,
as the plaintlfr does, by such withdrawal of
property from taxation. Experience has
shown that the property owned by one town
and located in another town and devoted to
a public use is limited. If It were otherwise
the Oeneral Assembly could, and no doubt
would, restrict such ownership. And If In
any instance the exempt property tmreasona-
bly reduced the area of property available for
taxation, no doubt the General Assembly
would correct the public Injustice. And so
too the diaracter of the public use might lead
the lawmaking power to expressly provide for
the taxation of land subject to this use in
another town.
Chapter 247 of the Public Acts of 1907 is
an instance where land In one town devoted
to sewage disposal for a municipality is
made taxable In the town of Its location.
For one purpose only have we expressly
subjected any town almshouse and farm to
taxation.
t«] G. S. S 2416, provides:
"When any school district having; within its
boundaries any town almshouse and farm, shall
impose any tax for the purpose of building or
repairing its schoolhouse, said real estate owned
by the town shall not be exempt from such taxa-
tion."
The express limitation of taxation of any
■town almshouse and farm for one purpose is
a plain Indication that it is not taxable for
any other purpose. No statutory Indlcatton
olf an intent to tax land devoted to the puN
lie uses of a town poorhouse and farm ap-
pearing, the ordinary rule of tax exemption is
to be appMed.
[6] The Merchant and Martlno pieces are
within the rule of exemption. The taxes
upon the Martlno piece are not collectible for
another reason. ITils pr««)erty was transfer-
red directly to the city of New Haven. It
was never owned by the town of New Haven.
These were Ind^endent municipal entitles.
The taxes sought to be recovered were as-
sessed in the name of the town of New Ha-
ven. Real estate must be "set by the asses-
sors In the list of the party in whose name
the title thereof stood on the land records.
G. S. i 2299. The assessment against the
town of New Haven of land owned by the
city of New Haven was void. Hellman v.
Burritt, 62 Conn. 438, 26 Atl. 473 ; Meyer v.
Tnibee, 59 Conn. 422, 22 Atl. 424.
[B] The defendant appeals from the Judg-
ment for taxes accrued upon the second, or
Thomas, piece. This piece was purchased
for a public purpose, but this purxMse was
soon abandoned, and, so far as the record
shows, the city of New Haven has never con-
templated any past, present, or future use
of this piece. "For more than 20 years," the
finding recites, "prior to the bringing of this
action said second piece of land had not been
used for any purpose by said Springside
Home, or Spilngside farm, or by the city and
town of New Haven." Since the abandon-
ment of the purpose for which it was pur-
chased this piece of land has not been devoted
to a public use, nor during any of the years
covered by the taxes whose recovery Is sought
did the city have or contemplate its devotion
to a public use. The trial court was clearly
right in holding ttiat this piece was not ex-
empt from taxation during this period.
There Is no error on either appeaL The
other Judges concurred.
(91 Conn. 608)
PETTIS v. PETTIS.
(Supreme Court of Errors of Connecticut.
June 1, 1917.)
1. Divorce €=340— Separation Aobeekbnt—
Effexjt.
After the wife's desertion of the husband
their mutual agreement by which the husband
paid the wife certain moneys for support of the
child, and she released her ri^ht to his property
so long as she lived apart from him, and by
which he stated that he did not waive his righte
arising from her desertion, was not such an
agreement on his part that the wife might live
apart from him as to bar his suit for divorce
for the desertion.
[Ed. Note.— For other cases, see Divorce, Cent.
Dig. § 161.]
2. Divorce «=s>32&— Fobkigi? Decbbb— Com-
ity.
A New York decree of divorce a mensa ct
thoro against a nonappearing, nonresident hus-
band is not enforceable in Connecticut, the state
of the hust>and'8 residence, as a matter of strict
constitutional or private international law.
[Ed. Note. — For other cases, see Divojrce, Cent
Dig. §§ 827-830, 840]
3. DivoBCE €=»826— Matrimonial Domicile.
Where the parties were married in New
York, but the husband had always resided in
Connecticut, a decree of New York divorcing the
parties a mensa et thoro cannot claim recogni-
tion as a decree of the court of matrimonial
domicila
[Ed. Note. — For other cases, see Divorce, Cent.
Dig. §i 82T-830, 840.]
4. DivoBOE ®=>328— FoBEiaN Divorce— Pro-
cess—CoMrrT.
A personal judgment against a nonresident,
nonappearing husband, not served with process,
is wholly void and entitled to no consideration
legally or on account of comity or public policy.
[Ed. Note.- For other cases, see Divorce, Cent.
Dig. S; 831-834.]
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(Conn.
6. DiTOBOE 4=>880— FoRxiQir DiyoBCB— Cok-
ITT.
A decree for judicial separation, when is-
sued by a competent court having jurisdiction
in personam over both spouses, is entitled to full
faith and credit in every state, and will operate
there as a bar to a subsequent action for divorce
on the ground of desertion, brought while the
decree for separation remains in full force.
[Ed. Note. — For other cases, see Divorce, Cent.
Dig. I 839.]
6. Divorce «s»329— Jitdoiieht of Otheb
STATM— COMITT.
A New York decree of divorce a mensa et
thoro in favor of the wife who had deserted her
husband and left the Connecticut matrimonial
domicile, which decree did not affect the status
of the parties and was not final, being termina-
ble at any time by reconciliation, was entitled
to no effect in Connecticut by way of comity or
otherwise.
[Ed. Note.— For other ca«es, see Divorce, Cent.
Dig. H 827-830, 840.1
Wheeler, J., dissenting.
Appeal from Superior Court, New Haven
County; Howard J. Curtis, Judge:
Action for divorce by Clinton M. Pettis
on the ground of desertion, and crosa-actlon
by Helen C. Pettis on the ground of cruelty.
From a Judgment rendered granting a divorce
to. tbe husband on the ground of desertion,
defendant appeals. No error.
Charles S. Hamilton, of New Haven, and
John M. Gardner, of New York City, for
appellant David E. Fitzgerald, Ell Mix, and
George W. R. Hughes, all of New Haven, for
appellee.
BEACH, J. Tbe parties Intermarried In
New York In June, 1912, the husban-1 being
then and now a citizen of Connecticut They
lived together In Connecticut until May 23,
1913, when the wife left her home and went
to New York, where she has since remained,
refusing to live again with her husband,
rhey have one child, between three and four
years old. On May 24, 1916, the plaintiff
husband brought this action for divorce on
the ground of desertion, describing his wife
as a resident of Tarrytown, In the state of
New York, and alleging that the desertion be-
gan on or before May 23, 1913. The defend-
ant appeared, denied the desertion, and
filed a cross-complaint for a divorce on the
ground of Intolerable cruelty. From a Judg-
ment awarding the husband a divorce on the
ground of desertion, the wife appeals.
The finding of facts, which Is not excepted
to, disposes of all the controverted questions
of fact as to desertion and cruelty in the
husband's favor, and the only reasons of
appeal whldi are pursued on the brief relate
to the ^ect which ought to have been given
to an agreement In writing entered Into be-
tween the parties In December, 1913, and to a
Judgment of separation and for alimony made
by the Supreme Court of New York in Feb-
ruary, 1915, In an action brought by the wife,
tn which the husband did not appear.
The alleged agreement of separation Is
contained In a writing, Exhibit D, signed by
the plaintiff and defendant which recites
that Helen C. Pettis has left her husband
and resolved that she will not thereafter live
with him; that Clinton M. Pettis desires
the companionship of his child, but recog-
nizes that It needs a mother's care and Is
unwUling to support It, except in bis own
home, any longer than Is necessary for Its
physical well-being; and that for the best
interest of all concerned, the parties have
agreed: (a) that Helen C. Pettis, in consid-
eration of $800 to be used for the support of
the child, will support it and make no de-
mand wherdt>y her husband Is to be cliarge-
able with its support, and will not pledge the
husband's credit for her or its support, so
long as she shall refuse to live with her
husband and refuse to allow the child to
live with him; (b) that Clinton M. Pettis will
allow the wife to have the exclusive custody
of the child during its tender -years and so
long as she will support tbe child and keep
her agreements, it being understood that he
is willing to support the child in bis own
home, and that the child, when It reaches
a suitable age, shall elect whether to live
with its father or its mother; (c) that noth-
ing therein contained shall be construed as
a condonation on the part of Clinton M. Pet-
tis of the willful desertion of bis wife. At
tbe same time and as a part of the same
transaction Helen C. Pettis gave to her hus-
band a quitclaim deed. Exhibit E, of all
her Interest as wife and widow In any prop-
erty owned by him or of which he might die
The appellant's claim Is that thLs agree-
ment conclusively shows that the husband
consented that his wife might live apart
from him, and that therefore he cannot
charge her with willful desertion from and
after the date of the agreement Tlrrell v.
Tirrell, 72 Conn. 567, 45 Atl. 153, 47 L. R.
A. 750; Bennett v. Bennett, 43 Conn. 313;
Todd V. Todd, 84 Conn. 591, 80 AU. 717.
[1] Manifestly this contract does not on Its
face express any agreement on the husband's
part that the wife may live apart On the
contrary. It attempts, at least to exclude the
possibility ol a construction embodying such
an agreement ; and in that respect It resem-
bles the agreement printed in the margin of
the decision in Atberton t. Athertwi, 181 U.
S. 166, 21 Sup. Ct 644, 45 L. Ed. 794. Taken
at its face value, the contract 1» quite capa-
ble of the construction that the husband recog-
nized the fact that his wife had definitely
determined not to live with him again and
was attempting to mitigate the consequences
of that unfortunate condition of fact by pro-
viding, not too liberally, for the temporary
support of tbe (diild and for the wife's agree-
ment not to pledge his credit so long as slie
refused to live with him. This is evidently
the construction which the trial court put on
the Exhibits D and Bl, after hearing and
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PBTTIS ▼. PETTIS
15
observing the parties, for the finding Is that
the plaintiff husband was always ready and
willing to receive the defendant at any time
into his home, and that there was no Justifi-
cation for the defendant remaining and liv-
ing apart from the plaintiff or absenting her-
self from his home, or for falling to return
to cohabitation. These findings negative the
existence of any actual agreement for sepa-
ration, and, as the Exhibits D and E are not
necessarily Inconsistent with the findings in
this regard, the assignments of error founded
on that assumption are overruled.
tZ] The remaining question is as to the
legal ^ect wbidi ought to have been given in
this action to the New Tork Judgment for
separation. That Judgment was not pleaded
either in the defendant's answer, as a bar to
the action for divoroet on the ground of de-
sertion, or in the defendant's cross-complaint,
as a conclusive adjudication of the husband's
cruelty. An exemplified copy of the order,
the notice, the afSdavit on which it was
granted, the summons, complaint, Judgment,
and findings of fact and law was, however,
received in evidence without objection.
Prom these papers it appears that the Judg-
ment was based npon a complaint charging
the husband with cruelty and upon proofs in
support thereof; that the Judgment in terms
decrees that the parties be forever separated
from bed and board, and provides for month-
ly alimony until the further order of the
court; and that the husband did not appear
In that action and was not otherwise served
with process than by publication and by leav-
ing a copy of the summons, complaint, and
order of service with him at his home In
Connecticut. Upon this state of the record,
it is certain that, as against the nonapiJear-
ing, nonresident husband, the New York
Judgment is not enforceable as a matter of
strict constitntlonal or private International
law. Haddock v. Haddock, 201 U. S. 662,
26 Sup. Ct 625, 50 U Ed. 867, 5 Ann. Cas. 1 ;
Pennoyer v. Neff, 06 U. 8. 714, 24 U Ed. 565.
[3] The next question Is as to Its effect as
a Justification for the wife's continuing to
live apart from her husband from and after
this date. The complaint admits that Helen
O. Pettis is a resident of New York, which
undoubtedly has the right to control the mari-
tal status of its own citizens, subject, of
course, to the necessary consequence, pointed
out In Haddock v. Haddock, supra, that it
cannot control the marital status of a Con-
necticut dtlzen who is not brought within its
Jurisdiction, unless, Indeed, the decree Is ren-
dered In the matrimonial domicile which la
the legal domicile of both the husband and the
wife. Atherton v. Athertm, 181 U. 8. 155,
21 Sup. Ot 544, 45 li. Ed. 7»4. It is certain
that New York was not the matrimonial dom-
icile of these spouses, for the domicile of the
husband has been in Connecticut from a time
antedating the marriage; and so the decree
of the New York court cannot claim recogni-
tion as a decree of the court of matrimonial
domicile.
Nevertheless the question still remains
whether It ought to be received here as a
matter of comity or of public policy. In
Glldersleeve v. Glldersleeve, 88 Conn. 602, 92
AU. 684, Ann. Cas. 1916B, 920, we held that
an ex parte divorce granted In accordance
with the laws of South Dakota to a plaintiff
domiciled in that state would be given effect
In our own courts as against a nonappeartng
Connecticut defendant. That was a decree
of absolute divorce which dissolved the mar-
riage and left the parties free to marry
again. It affected the marital status, and In
that respect was something more than a mere
personal Judgment In most of the states of
the Union It Is held or assumed that marital
status Is a thing of which a court may ob-
tain a species of Jurisdiction quasi in rem by
obtaining Jurisdiction in personam of one
only of the spouses domiciled In the forum.
So that, by virtue of the Jurisdiction thus ao-
quired over the marital status common to the
husband and wife. It may proceed to render
a decree affecting the status of the absent
defendant over whom it has no Jurisdiction
in personam. The Supreme Court of the
United States has recognized this theory and
limited its application, so far as the constitu-
tional validity of the decree in other states
is concerned, to decrees rendered ex parte in
the courts of the matrimonial domicile. Had-
dock V. Haddo<^, supra. But, as that opinion
points out, the courts of most states, includ-
ing our own, recognize the validity of such
ex parte divorce decrees when duly granted
in the plaintiff's donridle, whether that be
the matrimonial domicile or not. Perhaps
the best reason commonly given for recog-
nizing these ex parte decrees In cases where
the spouses have separate domiciles Is that,
when panted by a competent court In the
plaintiff's domldle, according to the local
law, they are necessarily valid within that
state, because every state has an undoubted
right to control the marital status of Its own .
citizens according to its own laws ; and, that
being so, It Is better that the state of which
the other spouse is a dtlzen should waive Its
sovereign right and recognize the validity of
the decree in order to avoid the harsh conse-
quences of a refusal to do so.
As was said in Glldersleeve v. Glldersleeve,
supra (88 Conn, on page 698, 92 Atl. on page
687 [Ann. Cas. 1916B, 920]):
"It is no light matter, as affecting Individual,
social, or civic interest and good morals, that,
through the attitude of the courts in refusing
recognition of the judicial action of sister states,
a condition should be created where legitimacy
becomes dependent upon state lines, where wives
in one state become concubines when they pass
into another, where husband or wife living in
lawful wedlock in one jurisdiction is converted
into a bigamist by change of location, where
persons capable of inheritance in one part of
our country are incapable in another, where
certainty of status may readily give place to
uncertainty and property rights be thrown into
confusion. * * * For the present we may not
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16
101 ATLAinriC REPOaXBR
(Conn,
have nniform divorce letrislation, but we may
contribute to a uniform treatment of divorced
persons and tlieir children, and property anS
property rights, by obeying the dictates of com-
ity, and thus avoiding t£e unwholesome and
harsh consequences which are the natural traits
of the opirasite course."
[4] It is apparent from the foregoing that
the effect to be given to the New York de-
cree of separation depends upon whether It
is a Judgment purely in personam, or wheth-
er it is a Judgment affecting the marital
status. In the former case, it Is, as against
the nonresident, nonappearlng husband not
served with process, wholly void and en-
titled to no consideration legally or for rea-
sons of comity or public policy. If, how-
ever, it affects the marital status, comity and
consistency would require us to recognize it
as valid in this state.
[5] A decree for Judicial separation, when
issued by a competent court having jurisdic-
tion in personam over both spouses, is enti-
tled to full faith and credit in every state,
and will operate there as a bar to a subse-
quent action for divorce on the ground of de-
sertion, brought while the decree for separa-
tion remains in full force. Harding t. Hard-
ing, lOS U. S. 317, 25 Sup. Ct. 679, 40 L. Ed.
1066.
We are not, however, referred to any au-
thority as to the extraterritorial effect of a
decree for Judicial separation in a case where
the court which granted the decree, not be-
ing a court of the matrimonial domicile, had
jurisdiction in personam of one spouse only.
Hence we examine the question on principle.
Historically the divorce a mensa et thoro
was an ancient subject of ecclesiastical juris-
diction In England, and the divorce a vinculo,
which the church did not grant at all, was a
much later remedy granted by act of Parlia-
ment Xn 1858 the E}piscopal Jurisdiction in
matrimonial causes was transferred to the
crown, the name of divorce a mensa et thoro
was changed to Judicial separation, and the
^procedure for divorce a vinculo was transfer-
red from i'arliament to a regular court.
Westlake, Private International Law (5th
Ed.) p. 89. '
In Le Mesnrier t. Le Mesurier, 1895 Ap-
peal Cases, p> 617, the House of Lords for-
mally confirmed the principle that Jurisdic-
tion to dissolve a marriage was dependent on
the legal domicile of the parties, and that
residence abroad, however prolonged, when
not accompanied by a change of legal domi-
cile, would not give Jurisdiction to the local
courts to grant a divorce a vinculo. Speak-
ing of this case, Westlake says (pages 90, 91):
"But after a period of uncertainty the opinion
that divorce a vinculo, which affects the status,
is so different from the old ecclesiastical divorce
a mensa et thoro, which was administered for
the health of the soul and did not affect status,
that it must be subject to rules of its own, and
the novelty of the action in England must be
availed of to establish those rules on the sound-
est principle, triumphed in Le Mesnrier t. Le
Mesurier.**
On the other hand, it was said In Arml-
tage V. Armitage (1898 Probate, p. 178), that
Jurisdiction in a suit for judicial separation
need not be referred to the legal domicile of
the parties, but that the action might be
maintained in and a decree of separation
granted by the courts of the place where the
parties resided, though that was not their
legal domicile. Incidentally the question
whether the decree of separation affects the
status was discussed. And in speaking of
the ecclesiastical divorce a mensa et tUoro,.
the court said:
"A woman divorced from her husband a mensa
et thoro and liring separate and apart from her
husband remained a feme covert. The effect ot
the sentence was to leave the legal status of the-
parties unchanged."
The court then discusses the question of
whether the act of 1857, which had the fuiv
ther effect of placing a wife, after a decree
of Judicial separation. In the position of a
feme sole in certain respects, had changed
the situation so that a decree of separation
did affect status, and reaches the conclusion
that the decree of separation does not affect
status in the sense that it can only be grant-
ed in the courts of the legal domicile. In the
present case it does not appear that the New
York sentence of separation produced any
change at all In the wife's legal capacity or
property rights, and so, according to the Eng-
lish view, it stands on the same basis as the
old ecclesiastical divorce a mensa et thoro,
and does not affect status.
In this country there has been some con-
flict of opinion upon the point; wlilch in Eng-
land was covered by the act of Parliament,
as to whether a divorce a mensa et thoro re-
lieved the wife, temporarily, from the disa-
bilities of coverture; but, with the possible
exception of West Virginia, where a peculiar
force and effect is apparently given to such
divorces by tlie special provisions of their
Code, the reported cases seem to agree that
a decree of separation does not affect the
marital status.
"In our mind the Judgment of separation fronk
bed and board ia not a final proceeding. The re-
lation of husband and wife still tfdsts. A recon-
ciliation may put an end to the judgment"
State V. Ellis, 50 La. Ann. 559, 23 South. 445.
"Such a divorce does not dissolve the mar-
riage, though it separates the parties and es-
tablishes separate interests between them.
* * * The divorce is only a legal separation
terminable at the will of the parties, the mar-
riage continuing in regard to everything not
necessarily withdrawn from its operation by
the divorce." Dean v. Bichmond, 22 Moss. 401.
"The decree of divorce a mensa et thoro be-
tween the parties did not affect their status of
marriage; it simply justified their separation."
Drum V. Drum, 69 N. J. Law. 557, 55 Atl. 8«.
"The parties still remained husband and wife
in the eye of the law. • • • An action for
limited divorce is really an appeal to a court of
equity by one of the parties to a marriage con-
tract for a modification of the marriage rela-
tions, duties and obligations as they exist at
common law." People v. Cullen, 153 N. Y. 629,
47 N. E. 894, 44 L. B. A. 420.
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BUBK V. XIjUS
17
"The relation of Itnaband and wife ia not
diasolTed. It only andergoes a vei7 inconvenient
■nspension and which ia intended to operate aa
a continual invitation to the parties to return
to their first love." Chancellor Kent, Barrere
T. Barreiv, 4 Johna. Ch. (N. I.) 187-197.
Independently of authority, a decree that
simply creates a terminable abnormal rela-
tion between husband and wife cannot be said
to afTect the underlying marital status. At
any rate, we give to this decree of separation
all the eiSect the New Tork courts claim for
it when we treat it as a temporary or at least
a terminable modification of the personal
rights and obligations of the parties arising
out of the marriage contract, without the
slightest Intention of rescinding the con-
tract Itself. It leaves the contract and the
permanent contractual relation untoudied,
and it excuses one of the parties from the ob-
ligation of cohabitation, while still holding
the other party to the performance of his
other contractual duties. Such a decree must
rest on the Jurisdiction of a court of equity
to regulate the conduct of the parties before
it From the wife's standpoint It Is a per-
sonal license to refuse to live with her hus-
band. In theory, a court of equity Inter-
venes to protect her against the assertion oT
a legal right on the part of the husband on
the ground that it is unsafe and Improper to
require her to submit to cohabitation. From
the hurf»nd's standpoint, he Is, in efTect, pre-
vented from exercising his right to cohabita-
tion, although, as Chancellor Kent says, the
right of cohabitation Is not destroyed, but Is
merely suspended; and In theory a court of
equity assumes the right to control his con-
duct for the time being for the protection of
his wife.
Such being the nature and effect of the de-
cree when both of the parties are before the
court, it is difficult to see np<m what theory
any extraterritorial effect can be claimed for
the decree as against a nonresident, nonap-
pearlng defendant not served with process.
When both parties are before the court, the
decree Is conclusive as to the Issues of fact
upon which it Is based. Harding v. Harding,
supra. But, In so far as it attempts to regu-
late the future conduct of the parties, an ex
parte decree for Judicial separation is neces-
sarily local in its operation on the nonappear-
Ing defendant.
The state of New Tork has no right to regu-
late, and we do not suppose this decree at-
tempts to regrulate, the manner In which the
nonresident, nonappearing husband should
conduct himself toward his wife In Connecti-
cut Hie decree does not purport to authorize
or require Mr. and Mrs. Pettis to live In
0«nnectlcDt In a state of marital celibacy un-
known to our law. It merely purports to
afford the wife a local protection against the
assertion by her husband of his right of co-
habitation. And, if we assume that in spite
of its ex parte character it accomplishes that
purpose, we give it aQ the efCect, ao far as
Mr. Pettis is concerned, which can be claimed
for It
[I] We have thus shown that a decree of
Judicial s^iaratfon does not affect status;
that it is not a final decree, but is terminable
at any time by the reconciliation of the par-
ties; that It rests upon the Jurisdiction of
equity to control the conduct of parties be-
fore it, and that, in so far as It purports ti>
regulate the conduct of a defendant not with-
in Its Jurisdiction, It Is necessarily local In
Its operation. Such a decree has no resem-
blance to a Judgment In rem. It Is purely per-
sonal, and therefore, as against a nonresident
nonappearing defendant, entitled to no extra-
territorial effect, by way of comity or other-
wise.
There Is no error. The other Judges con-
curred, except WHBELEK, J., who dissented.
an. Conn. 067)
BURR V. ELLIS.
(Supreme Coort of Errors of Connecticut June
1, 1917.)
1. Contracts *=»305(1)— Builwho Contsact
—Taking Possession or Housb— Waivek oc
STIPU1.ATI0N.
The mere fact that the owner took posacasion
of a house built for him and made a payment
for extras did not necessnrily amount to a waiv-
er of the stipulations of his contract, as a pay-
ment made on a contract may or may not affect
the contractual relations of the parties accord-
ing to the circumstances of the case.
[Ed. Note.— For other cases, see Contracts,
Cent Dig. SS 1398-1400, 1467-1475.]
2. Contracts ^=3304(2)— Bira.DiNO Contbact
—Acceptance.
In view of the facts, where a contract for
the conatmction of a house provided that final
payment was to be made when the work was
completed to the owner's satisfaction, the owner's
act m taking possession of the house and mak-
ing a payment of $150 for extras was not such
an acceptance as to relieve the builder from the
performance of his work in a proper manner
before he was entitled to payment of the bal-
ance due him for his extra work.
[E^. Note.— For other cases, see Contracts,
Cent. Dig. H 1458-1464.]
3. Costs «=332(5) — Codkts <8i=3l88(l) — City
CoOBT— Double Jubisdictior.
Under the act creatine the City court of Dan-
bury (10 Sp. Laws, p. MO), the court has not
two Jurisdictions, a justice and a common pleas
jurisdiction, though the act provides that the
court shall have dvil jurisdiction in all cases
where the demand does not exceed $500, and
shall have the same powers to proceed to tir,
etc., and enforce judgment in all cases within its
jurisdiction as the court of common pleas, and
shall have concurrent jurisdiction with, and all
powers by law conferred upon, justices of the
peace, and that the same fees and costs shall be
taxed, where the damages alle^red, etc., are $100
or less, as are taxed by justices of the peace,
and, where the damajres amount to more than
$100, the same fees and costs shall be taxed in
the city court as are taxed and paid in the
court of common pleas, etc., and in an action for
loss than $100, where the counterclaim was for
from $100 to $500, the court properly allowed
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101 A.— 2
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18
101 ATLANTIC REPORTER
(Conn.
defendant andi costs as are taxed in ooart of
common pleoa^
[Ed. Note.— For other cases, see Costs, Cent
Dig. i 114.]
4. Process e=>16&— Waivbb or Objbctiok.
Where the cause of action and the parties
were clearly within the jurisdiction of tne city
court of Danbury, and plaintiff appeared and
joined issue on defendant's counterclaim, and
trial was had on the merits of sudi branch of
the case, any objection that plaintiff might have
taken to the process was waived.
[Ed. Note.— For other cases, see Process, Cent
Dig. g§ 250-255.]
Appeal from City Court of Danbury ; John
R. Booth, Judge.
Action by Stephen M. Burr against John
Q. Ellis. From a Judgment for plaintiff on
four counts of the complaint, and for de-
fendant on his counterclaim, plaintiff ap-
peals. No error.
Action upon a building contract and to re-
cover the reasonable value of extra work and
materials, brought to the city court of Dan-
bury and tried by Booth, J. Judgment for
the plaintiff upon four counts of his com-
plaint for $11.75, and for the defendant upon
his counterclaim of $50, awarding the de>
fendant $38.25 and costs, from which the
plaintiff appealed.
Aaron T. Bates, of Danbury, for appellant.
Robert S. Alexander, of Danbury, for appel-
lee.
RORABACK, J. The plaintiff brought his
action alleging a full performance of his con-
tract and claimed a balance due of $37.96
for extra work and materials. The defendant
in his answer denied full performance upon
the part of the plaintiff and several of the
claims for extra work and materials de-
scribed in the plaintiff's complaint It was
also averred by the defendant In his answer
that the plaintiff had failed and neglected
to perform several Items of work called for
In his agreement In his counterclaim, filed
with his answer, the defendant alleged that:
"During the progress of said work, the plain-
tiff and defendant agreed that a canvas roofing
should be placed on the rear balcony roof. The
plaintiff so negligently and unskiU£ully per-
formed said work that said roof has always
leaked."
An answer to this paragraph of the coun-
terclaim was filed by the plaintiff which
stated, among other things, tltat the plaintiff
on or before October 1, 1911, duly completed
his contract and delivered the house into the
possession of the defendant who accepted
the same and paid the plaintiff in full for
the original contract. The allegations as to
the Improper performance of the work con-
nected with the canvas roof were denied.
A reply was filed by the defendant which
denied the acceptance of the house by him.
These allegations and denials put in issue
all the facts necessary to raise the question
of the acceptance of the house by the defend-
ant Upon this question the trial court found
for the defendant
The reasons of appeal impute error to the
court below upon the question of acceptance
upon the ground that it was not put in issue
In the pleadings, and further that the find-
ing shows that the defendant accepted his
house and paid the plaintiff for building the
same and thereby waived any claim for dam-
njjps which he has set forth in his counter-
claim.
[1] In this connection, the record discloses
that the court below found that when the de-
fendant paid the balance of the contract
price on August 5, 1911, he was well aware of
the omission of the plaintiff to perform his
work, but nevertheless waived the same and
accepted his house as then completed, ex-
cept in so far as a canvas roof hereinafter
described was concerned. During the prog-
ress of the work, the plaintiff and the de-
fendant agreed that a canvass roofing should
be placed on the rear balcony of the defend-
ant's house in lien of the tin roof specified
in the contract This canvas roofing was
placed on the roof in such an Improper and
unskillful manner that it has leaked when-
ever rain has since occurred. The defendant
was not aware of the defects in this roof at
the time of final payment on August 5, 1911,
not having learned of them until afterwards,
and he did not accept his house In so far as
this canvas roof was concerned. After the
defects in this roofing were discovered by
the defendant and before the payment of $150
on March 9, 1912, for extras he made several
requests to the plaintiff to remedy the same ;
but the plaintiff at all times neglected to do
so. The mere fact that the defendant took
possession of his house does not necessarily
amount to a waiver of the stipulations of
the plalntifTs contract 9 C. J. 761, and
cases cited in note 6; 15 A, O. 970, and
cases cited In notes 972, 973, 974. A payment
made upon a contract may or may not affect
the contractual relations of the parties, ac-
cording to the circumstances of the case.
Pratt V. Dunlap, 85 Conn. 180, 185, 82 Atl.
195; Flannery v. Rohrmayer, 46 Conn. 558,
559, 560, 33 Am. Rep. 36.
[2] The contract In the present case pro-
vides that final payment is to be made when
the woric is completed to the satisfaction of
the owner. Under the facts disclosed by the
finding, the action of the defendant In taking
possession of the house and in making the
payment of $150 was not such an acceptance
as to relieve the plaintiff from the perform-
ance of hia wotlc In a proper manner before
he was entitled to the payment of the
balance due to him for his extra work.
The trial court has found the Issues for
the defendant upon his counterclaim and that
there is $50 due thereon. The finding eets
forth the subordinate facts upon which It
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BTTTIiER V. FLINT
19
bases this condnslon. An examinatiim of
tbe flndlns shows that this conclnslon Is not
legally inconsistent with the subordinate
facts found, and the decision of the court
below Is not controlled by any erroneous
view of the law. Therefore we have reached
the conclusion that there is no error upon
this branch of the case.
The plaintiff In the present case alleges
a cause of action wherein the matter In de-
mand is less than $100. The counterclaim
filed by the defendant alleges a cause of ac-
tion wherein the matter in demand is over
$100 and less than $500. An act creating the
dty court of Danbury (10 Sp. Laws, p. 1019,
i 83) provides that:
"Said city court shall have civil Jarisdiction,
in all cases io law and equity where the matter
in demand does not exceed five hundred dollars,
* • * and shall have the same powers to pro-
ceed to try, decide, and enforce judgment and
execution in all cases within its jurisdiction, as
the court of common pleas, and said city court
shall have concurrent jurisdiction with, and all
the powers now by low conferred upon justices
of the peace. • • • The same fees and costs
shall be taxed where the damages alleged, or the
value of property or matter in controversy are
one hundred dollars or less, as are taxed by jus-
tices of the peace, and where sedd damages or
value amount to more than one hundred dollare.
the same fees and costs shall be taxed in said
city court as are taxed and paid in the court of
common pleas. * * * In the trial of all cases
before the city court, whertin the matter in dis-
pute exceeds one hundred dollars, the rules of
practice in the court of common pleas, so far
as the same may be applicable, shall govern."
The court below in the judgment rendered
alloweia the defendant such costs "as are
taxed and paid In the court of common
pleas." In this the plaintiff contends there
was error.
[31 The plaintiff claims that this case,
whpn It was tried, was within the justice of
the peace jurisdiction of the city court, and
that the trial court erred In holding that it
was within tbe common pleas jurisdiction of
this court and in taxing such costs as are
taxed and allowed as costs In the court of
common pleas. The plaintiff's contention, as
we understand It, Is that the dty court of
Danbury has two jurisdictions, a justice and
a common pleas one ; and that the defendant,
by bis counterclaim, In effect accomplished
the removal from one jurisdiction to another
in the same manner as be might have re-
moved the case to the court of ccHumon
pleas. In other words, he conceives the city
court of Danbury as two courts and not one.
We are not prepared to accept sndi a proposi-
tion. If we assume, however, that the plain-
tlft Is right as to tlie dual form of tbe dty
court of Danbui7, we cannot acquiesce In
his conclusion as to costs.
This counterdalm is, in substance, an action
wherein afflnnatlve relief Is sought by the de-
fendant against the plaintiff. In effect, it was
an action brought by the defendant against
the plaintiff. In thl» connection, our statutes.
permitting the interposition of counterclaims,
should be construed In connection with the
statutes limiting the amount over which our
different courts have jurisdiction. This limi-
tation of jurisdiction necessarily applies to
both of tbe parties to a case.
[4] In the present case, the cause of action
and the parties were clearly within the juris-
diction of the dty cotirt of Danbury. The
plaintiff appeared and joined Issue with the
allegations of tbe defendant's counterclaim,
and the trial was had thereon upon the
merits of this branch of the case. Any ob-
jection that might have been taken to tbe
process or to its service was waived, Hotch-
klss' Appeal, 32 Conn. 355. It follows there-
fore that there was no error in holding and
In taxing the same costs as are allowed In
the court of common pleas.
There is no error. The other Judges con-
curred.
(91 Coan. G30>
BUTLER T. PMNT et ah
(Supreme Court of Errors of Connecticut
June 1, 1917.)
1. WrLUS 9=»47d — CowsTBUOTioN or Wnx
AND CODIClIi— IKTENTION OF TBSTATOB.
Where language used in a codicil is ambig-
uous, construction thereof will depend upon the
testator's intent, to be gathered from the wiU
and codicil, read together in the light of circom-
stances at time of execution.
[Ed. Note.— For other cases, tee Wills, Cent.
Diig. { 997.]
2. Wills «=>538— Co nstbdction— Death of
Devisee Contiouous— Time off Death.
Where there is a devise to A., and in case of
his death to B., the time of death referred to, in
the absence of qualifying words or indications of
a contrary intent, is death before testator's
death.
[Ed. Note.— For other cases, see Wills, Ctent.
Dig. H 1162, 1302-1809.]
3. Wills ®=»538— Con strtjction— Death of
Devisee Contiguous— Time of Death.
A codicil making a gift over to testator's
nephews' in case his wife's niece, a devisee under
the will, "should die without children or issue
at the time of her death, held to refer to the
devisee's death, either before or after testator's
death, since at the time of the execution of the
will the devisee was a minor not related by
blood to testator, and in the event of her death
before the testator the gift would have lapsed
as provided in Comp. 1813, tit. 31, c. 1, i 4,
while, in the event of her death after testator's
death, the property would have passed by in-
heritance to her heirs, who were strangers to
testator's blood, who presumably occupied a dif-
ferent position in his regard from that occupied
by his next of kin, all of which were remembered
in his will.
[Ed. Note. — For other cases, see Wills, Cent
Dig. K 1162, 1302-1309.]
4. Wills <S=476— Corbtkuotiow of CIodicii.
AND Will.
A codicil making a gift over to testator's
nephews, in case of death of his wife's niece,
"in respect to the property and estate which in
said will I have given" a devisee, the codicil pro-
vision referred to all will provisions in favor of
devisee.
[Ed. Note.— For other cases, see Wills, Cent
Dig. i 997.]
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101 ATLANTIO BJSPOBTER
(CioniL
6. Pebfetdities «s>4(7)— LnoTATioir ov lawt
Estate.
A gift over to children of testator's broth-
er, !□ case of a devisee's deatn without issue,
did not contravene the statute against perpetui-
ties, where the brother and all of hia children
were then living, and all survived the testator,
since the donees were competent to take when-
ever the contingency might happen, and consid-
eration of the contingency of devisee dying with-
out issue was unimportant, since it did not hap-
pen.
[EM. Note.— For other cases, see Perpetuities,
Cent. Dig. S 12.]
Case Reserved from Superior Court, New
Haven County; William S. Case, Judge.
Action by Georgle L. Butler, executrix of
Sarab V. H. Butler, against Albert F. Flint
and others, administrators of the estate of
children of Horace Hotchklss. Plaintiff ap-
pealed to the superior court In New Haven
county from orders and decrees of the court
of probate for district of New Haven deter-
mining distributees of testamentary funds,
and directing distribution, and case reserved
upon agreed statement of facts. Superior
court advised to afDrm order and decree of
probate court
Samuel R. Hotchklss, of New Haven, died
October 30, 1844, without Issua He was sur-
vived by his widow, Sarah Hotchklss, and
his next of kin and heirs at law were his
brother Horace B. Hotchklss, now deceased,
and Harriet E. H. Keep, daughter of a de-
ceased sister. At the time of Samuel's death
his brother Horace liad four living children,
Charles S., James B., Emma, and Harriet E.
No child was subsequently bom to him.
They are now deceased, and the administra-
tors of their several estates are the parties
defendant
Samuel left real and personal estate and
a will, duly probated, executed October 19,
1844, and a codicil thereto executed October
20, 1844. By th< first paragraph of his
will he gave $2,000 absolutely and the use of
all the balance of his property to his widow
for life or during widowhood. By the stx
following paragraphs he made various be-
quests, subject to the Interest of the widow,
to sundry persons and charitable Institutions.
By the eighth and tenth paragraphs be gave
the remainder over in sundry pieces of real
estate to his niece Harriet E. H. Keep. The
ninth paragraph reads as follows:
"I give and devise to Sarah V. H. Butler, the
niece of my wife, and to her heirs, aQ my right
and interest in the house and land, where my
mother now lives; and also the east half of my
farden lying next west of _ and adjoining said
ouse, except a small undivided piece of land at
the northeast corner; and I direct my said ex-
ecutors to purchase for said Sarah V. H. But-
ler the remaining rights and interest in said
house and land, with the property of my estate,
provided it can be bought at a price which they
think reasonable, which, when purchased, I de-
vise to said Sarah V. H. Butler and to her
heirs; and in case they cannot purchase said
right as above, then I direct them to purchase or
build for the said Sarah a suitable and com-
fortable house and lot of land, for which they are
to pay from two to three thonsand dollars from
my estate at their discretion, which last-men-
tioned house and land I devise to said Sarah V.
H. Butler and to her heirs; and in that case
she is not to have my interest in the house and
land where my mother lives, and said east half
of my garden, but the same shall belong to the
residue of my estate hereinafter disposed of."
The eleventh and final disposing paragraph
is as follows:
"All the rest and remainder of my property,
of every kind and nature, after the above lega-
cies and devises are fully paid and satisfied, I
give and devise to the said Harriet E. H. Keep,
and to the said Sarah V. H. Butler, and to their
heirs, to be equally divided betwe«i them, share
and share alike."
The codicil, after republishing and reaf-
firming the will except as therein altered,
provides for the payment to his mother of
$100 annually during her Ufe, and then pro-
ceeds as follows:
"With respect to the property and estate
which in said will I have given to Harriet E. H.
Keep and to Sarah V. H. Butler, it is my will
that In case either of them should die without
leaving children or issue at the time of their re-
spective deaths, that then the property and es-
tate given in said will to the one so dying with-
out children or issue should go to the children of
my brother Horace and their heirs, and in such
case I hereby give and devise the same to the
children of my brother Horace and to their
heirs, to be equally divided among them."
The real estate, which is the subject-mat-
ter of the prortsions of the ninth paragraph,
has been sold imder the authority of a reso-
lution of the General Assembly of 1848. A
portion of the proceeds of that sale, deter-
mined upon and set apart by the court of
probate, forms the fund now in the hands of
the Union & New Haven Trust Company, as
trustee, and is one of the two funds now In
controversy. The other fund in its hands as
administrator represents one-half of the rest
and residue given by the eleventh paragraph.
Sarah Hotchklss died In 1845. Sarab V.
H. Butler, who was her niece, survived until
June 11, 1915. Georgle Lu Butler, as execu-
trix of her will, is the plaintiff herein. She
claims that the two funds in the bands of
the trust company form a part of Sarah But-
ler's estate, which she, in her capacity as ex-
ecutrix, is entitled to receive. The defend-
ants, as administrators of the estates of the
several children of Horace Hotchklss, daim
to be entitled, to these funds in equal shares
between them. The court of probate decided
in favor of the latter contention, and passed
its order of distribution accordingly. Other
facts appearing of record are sufficiently
stated in the opinion.
George E. Beers, of New Haven, and Noah
H. Browning, of Hudson, N. T., for plaintiff.
Albert F. Flint, of Boston, Mass., and Thom-
as Hooker, Jr., of New Haven, for defendants.
PRENTICE, O. J. (after stating the facta
as above). The property now in the bands
of the trust company, as administrator and
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BUTLER ▼. FLINT
21
trustee, in the form of cash awaiting dis-
tribution to its' ultimate owners, r^resents
that given to Barab V. H. Butler by the ninth
and eleventh paragraphs of the will, and con-
fessedly is to be distributed as the property
80 given would have been if it had not been
converted.
The gifts made In these paragraphs In
Sarah Butler's favor are undeniably absolute
ior in fee, subject to the use of the testator's
widow, long since terminated by her death.
Were there no codicil, the two funds now in-
volved, standing as they do in the place of
the original property bequeathed and devised
would belong to her estate, since she srarvived
him.
By the codicil provision is made for a dif-
ferent disposition should Sarah Butler die
without leaving a diild or issue at the time
of her death, to wit, to the children of the
testator's brother Horace and their heirs.
By force of this provision, and by reason of
the fact that Sarah Butler died without isi-
sue, the administrators of Horace's four diU-
dren, all of whom survived the testator,
claim to be entitled to the two funds, and the
court of probate, in passing the order appeal-
ed from, accepted that view.
The issues presented by the cfmflicting
elaims of the parties involve three control-
ling inquiries:
(1) Does the language of the codicil, de-
scriptive of the contingency upon the happen-
ing of which the gift to the children of Hor-
ace is made to become operative, refer to the
death of Sarah Butler at any time or only
to her death before the testator?
(2) If Sarah Butler's death at any time is
the contingency specified in the codicU, is
the subject-matter of the gift over to the chil-
dren of Horace comprehensive of that In-
cluded in the gifts in favor of Sarah Butler
contained in both paragraphs 9 and 11 or
only in one of them?
(3) If the gift to the children of Horace,
as made, was one to take effect in the contin-
gency of Sarah Butler's death whenever oc-
curring, was it a valid or void one, in view
of the statute against perpetuities in force
at the time the will was executed?
It is evident that the testator, when he
determined to make a codicil to his will, ex-
ecuted only seven days previously, was in-
fluenced by some purpose to change bis pro-
visions in respect to some matter which he
regarded of sufficient inqwrtanoe to Justify
him in that act That he intended to make a
change in his dispositions previously made
in favor of Harriet Keep and Sarah Butler
is clear. The only question is as to the na-
ture and extent of that change. Unfortunate-
ly the language used by him to express his
purpose is susceptible of two constructions.
[1] The question, therefore, like all others
where the construction of testamentary pro-
Tisions is concerned, is one whose answer
is to t>e found In the testator's intent, to be
gathered as best it can from the will and
oodicU themselves when read together, and
in the light of the circumstances surround-
ing him at the time of their execution.
[2] Certain artificial rules are found in the
books designed to aid in the search for tes-
tamentarj' intent. One of these has had our
repeated approval, to wit, that where there
Is a devise to A., and in case of his death to
B., the time of death referred to, in the ab-
sence of qualifying words or other indica-
tion of a contrary intent, is death before the
testator's. Chesebro v. Palmer, 68 CJonn. 207,
211, 36 Atl. 42; Webb v. lines, 5T Oonn. 154,
156. 17 Atl. 90 ; Johnes v. Beers, 67 Conn. 295.
303. 18 Atl. 100, 14 Am. St Rep. 101. In Law-
lor v. Holohan, 70 Conn. 87, 90, 38 Atl. 903,
this rule of presumption was extended so
a;^ to be inclusive of cases where the devise
to A., and in the event of his death without
issue to B., and the statement was made that
the rule so broadly applied is the well-set-
tled one of this Jurisdiction. This statement
of principle is invoked by the plaintiff. An
examination of the eight cases cited in sup-
port of the assertion made in Lawlor v. Hol-
ohan shows scant basis for it Some of them
are cases of the first class above referred to,
and no broader rule of presumptive construc-
tion is either applied or stated than one per-
tinent to such a situation. Nearly all the
others were disposed of upon the strength of
the affirmative evidence of intent disclosed
by the will, and without appeal to any rule
of presumption whatsoever. The last one of
the eight cases is Chesebro v. Palmer, with
its- strong assertion of a doctrine quite con-
trary to that of tawlor v. Holohan. In the
former case the general subject involved Iiad
a full and exhaustive discussion. The con-
clusion was reached that cases where the
gift over is made In the contingency of the
death of the first devisee without issue are
to be distinguished from those where the con-
tingency is the death of the first devisee
merely; and that the rule of presumption to
be applied in the former class of cases, in the
absence of other indication of testamentary
intent is that the death without issue of the
first devisee has reference to his death under
all circumstances. Page 213. The essential
difference between the two classes of the
cases, pointed out in Chesebro v. Palmer,
needs only to be called to one's attention to
he appreciated, and the difference in the per-
tinent rule of construction applicable to each
follows as a logical consequence.
In the present case, however, we are not
driven to rely upon a rule of presumption.
Such rules are helpful when the intent of
the testator is not otherwise disclosed, but
shorn of importance when it is. Chesebro v.
Palmer, 68 Conn. 207, 213, 36 Atl. 42; Law-
lor V. Holohan, 70 Conn. 87, 90, 38 Atl. 903;
St. John V. Dann. 66 Conn. 401, 409, 34 Atl.
110.
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22
101 ATLANTIC REPORTER
(Conn.
[i3I llie present record Is not as inform-
ing as it might be of facts pertinent to an
Inquiry as to tbe testator's Intent, but they
are by no means wanting. Tbe will was
executed only eleven days before the testa-
tor's death, and the codicil four. Whether
or not Its execution was in anticipation of
the early death, which so soon followed, we
have no knowledge save as the facts stated
may furnish an Indication. Both Sarah But-
ler and Harriet Keep, whose name is as-
sociated with hers tn the residuary gift and
in the codicil pro\'ision, were, at the time the
will was made, minors neither of them over
seventeen years of age. Sarah Butler was
not more than eleven. The latter young
woman was not related by blood to the testa-
tor, but was a niece of his wife. Harriet
Keep was his niece and one of bis two heirs
at law, the other being Horace Hotchkiss,
whose children were made beneficiaries of
the limitation over In the codicil.
It will be noted that, under the will and
the statute then In force (Compilation of 1839,
tit 31, c. 1, { 4), the gifts to Sarah Butler, In
the event of her decease before the testator,
would have lapsed, and the property given
to her have passed to his next of kin as
Intestate estate. In the event of her death
after his, the property would have passed
by inheritance to her heirs, who were stran-
gers to his blood, and presumably occupied
a very different position in his regard from
that occupied by his next of kin, all remem-
bered in his will. That was a result which
he might well have desired to avoid. By the
terms of the codicil interpreted as a provi-
sion for the contingency of Sarah Butler's
decease whenever occurring. It would have
been avoided, and the property given to her
secured In that event to persons of his
blood.
Reading the will and codicil in the Jight
furnished by these facts, we are unable to es-
cape the conclusion that the testator's intent
In the making of his codicil was to provide
for the contingency of Sarah Butler's death,
whether before or after his own, and espe-
cially in the latter event, and that such In-
tent is sufficiently apparent to call for that
construction of his language.
[4] The language of the codldl is too defi-
nite and distinct to admit of doubt or uncer-
tainty as to the comprehension of the subject-
matter of both the gifts in favor of Sarah
Butler contained In the ninth and ele\'enth
paragraphs of the will, within the scope and
operation of the codicil. When the testator
makes provision "In respect to th? property
and estate which in said will I have given
to Sarah V. H. BuUer," there is neither am-
biguity nor lack of precision in his language,
and there Is nothing to Indicate that it was
used to convey any other than its ordinary
and natural meaning.
[t] The only gift expressed in that portion
of the codicil under review is one to the chil-
dren of the testator's brother Horace. Hor-
ace was then li\-lng; so were all of his chil-
dren, and he and they all survived the tes-
tator. That gift in Itself certainly did not
contravene the statute against perpetuities.
Tbe donees were competent to take when-
ever the time should come. If it ever should,
when their right to do so had become fixed
by the happening of the contingency specified.
In so far as the gift to these children cut
down or changed the character of those In
favor of Sarah Butler contained In the will
so that the will, when read in connection
with the codicil was made to bestow some-
thing less than a fee In lands and absolute
estate in personalty, it appears that any pos-
sible Invalidity attached to the title thus
attempted to be bestowed could not reach
the estate given to Sarah Butler. Whether
or not the language of the will Is capable of
a construction by which an alternative gift
was made to the "heirs" of Horace's children
In the event that the children should die not
having taken a vested estate and whether
or not such gift, if made, would be a valid
one, are wholly unimportant questions. Hor-
ace's children, having survived the testator,
lived to taktf a vested interest, which, upon
Sarah Butler's death without issue, became
an Indefeasible absolute estate.
The superior court Is advised to render
Judgment affirming the order and decree of
the court of probate.
No costs In this court will be taxed in fa-
vor of any of the parties.
In this opinion the other Judges concurred.
(91 Coon. &98)
PASCUCCI V. ROSSI et al.
(Supreme Court of Errors of Connecticat
June 1, 1917.)
Dills and Notes <S=>4SJ>(7>— Pleading and
Pbook— Vabiance.
There is no variance between a complaint al-
leging that defendant made his note payable to
tbe order of another as attorney and agent of
plaintiff and proof that the note was made sim-
ply to such other person, since the words in tho
complaint "attorney and agent for the plaintifT'
should be construed as descriptive only.
[Ed. Note.— For other cases, see Bills and
Notes, Cent Dig. H 1617-1642.]
Appeal from City Court of New Haven;
John R. Booth, Judge.
Action by Vincenzo Pascucd against An-
tonio T. Rossi and others on a note. Facts
found and Judgment rendered for tbe plain-
tiff for $382.73, and tbe defendant named
appeals. No error.
Robert J. Woodruff, of New Haven, for
appellant Philip Pond, of New Haven, for
appellee.
RORABACK, J. The plalntlfrs cause of
action Is described In his complaint as fol-
lows:
"On February 1, 1916, tho defendant A. T.
Rossi made his note dated on that day and
thereby promised to pay to the order of one
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OSTMAN ▼. LEB
Isadore W. Resnlk, attorney aad agent of tho
plaintiff, the sum of $380, three months after
date, at the Mechanics' Bank, New Haven."
Tbe language of tbe note which was In-
troduced in evidence against the objection of
•the defendant was that:
"380.00 New Haven, C<mn., Feb. 1, IMS.
"Three nonths after date I promise to pay
to the oi\.cr of Isadore \V. Rcsnik, three hun-
dred and eighty (?.3»SO.OO) dollars, at the Mechan-
ics' Bank, New Uavcn, Connecticut.
"A. T. Bossi."
The defendant contends that the allega-
tion of the complaint was that the defendant
promised to pay to the order of one Isadore
W. Resnlk, attorney and agent of the plain-
tiff, the sum of ?380. The proof offered by
the plaintiff was a note drawn to Isadore
W. Resuik alone, and indorsed by him to the
plaintiff, whose name did not appear there-
on. It is claimed that the allegations in the
complaint were not supported by the proof,
and that the variance was fatal.
The plaintiff's complaint does not purport
to contain an accurate description of the
note. The words "attorney and agent for the
plaintiff" should be construed as descriptive
of the capacity in wliich Besnik was acting
for the plaintiff.
These words fully apprised the defendant
of the facts upon which the plaintiff under-
toolc to rely, ^nils was good pleading.
Acts and contracts may l>e stated ac-
cording to thdr legal effect, but in so doing
the pleading should be such as fairly to
apprise the adverse party of the state of
facts which It Is Intended to prove. An
act or pror'se by a principal (other than a
corporation^ If in fact proceeding from an
agent known to the pleader, should be so
stated. See Jacobson v. Hendricks, 8.3 Conn.
120, 127, 75 Atl. 85; Clark v. Wooster, 79
Conn. 120, 131, 64 AU. 10. That being so it
necessarily follows that the plaintiff's cause
of action was properly stated In his com-
plaint, and that there was no variance be-
tween allegation and proof.
The finding of the court Ijelow fully dis-
poses of the defendant's claim that the note
In question was never indorsed by the plain-
tiff as alleged In the complaint.
There Is no error. The other Judges con-
curred.
(91 Conn. 600)
ESPOSTTO T. TAMMARO.
(Supreme Court of Errors of Connecticut.
June 1, 1017.)
Appeal and Erbob ©laieO— Resebvation of
Grounds of Review — Consideration of
QtiBSTioNS Not Made Below.
Where the (^nestioas of law attempted to be
raised in the assignments of error were not made
in the conrt below, the assignments will not be
considered.
[E!d. Note.— For other cases, see Appeal and
Error, Cent. Dig. $§ 1018-1034.]
Appeal from Superior Court, New Haven
County; Joseph P. Tuttle, Judge.
Action by Vincenzo Esposito against Julia
Tammaro. From a Judgment for plaintiff,
defendant appeals. No error.
Robert J. Woodruff, of New Haven, for ap-
pellant Charles L. Brooks and Harry L.
Brooks, both of New Haven, for appellee.
PER CURIAM. The assignments of error
do not merit consideration; as it appears
that the questions of law which are attempt-
ed to be raised therein were not made in the
court below.
There is no error.
(91 Cionn. 731)
OSTMAN V. LEB.
(Supreme Court of Errors of Connecticut.
June 14, 1917.)
1. Sales «=>178(3)— Accbptancb— Evidbscb—
SufTICIENCT.
Assuming that defendant agreed to store a
car for plaintiff, and to purchase it, if found
suitable, within a few months, his retaining: the
car for over a year without requiring plaintiff
to remove it, and his advertising it for sale with
property of his own, constituted in law an ac-
ceptance, which he could not afterwards with-
draw.
[Ed. Note.— For other cases, see Sales, Cent
Dig. I 453.]
2. Courts «=>190(2) — Scopb of B«yniw —
Judgments Appealable.
11 Sp. Laws 1803, p. 166, establishing a
court for the town of Stonington, and section
24 thereof, as to trials and appeals, give a right
of appeal identical with that existing in the
case of a decision in a related matter by a judge
Of the superior court
Appeal from Town Court of Stonington;
Lorenzo D. Fairbrotber, Judge.
Action by Frederick Ostman against Harry
P. Liee. From an order setting aside a ver-
dict for defendant, defendant appeals. Ko er-
ror.
Benjamin H. Hewitt, of New London, for
appellant Herbert W. Rathbun, of Mystic,
for appellee.
PER CURIAM. Tbe motion to erase the
appeal because of Its failure to contain a
prayer for relief is not well taken. We have
recently passed upon the precise point and
the reasons there stated are equally applica-
ble here. Douthwright v. Champlin, 91 Conn.
524, 100 Atl. 97. The motion to set aside
the verdict was properly granted.
The plaintiff offered evidence to prove that
the defendant, after examination, on May 5,
1915, agreed to purchase an old automobile
belonging to him for $150, payable in two
weeks; that the defendant took the automo-
bile into his possession on the same after-
noon, and stiU retains it and has paid no
l>art of the purchase pricjs. The defendant
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101 ATIiANTIC REPORTER
(Me.
offered evidence to prove tbat he agreed Trith
the plalntift to store the aatomobile until
fall, free of charge, and If, upon examina-
tion, it was then found to be In good condi-
tion, and he could use it, he would purchase
it, and pay for it $150, and that In Novem-
ber, 1915, he found the automobile was not
what he could use. If the decision of the
case depended exclusively upon the weighing
of these respective claims in the light of the
probabilities, and of the character and qual-
ity of the testimony, we should hold that
these were considerations for the jury, and
that the trial court was without authority to
substitute its Judgment for that of the Jury.
But the defendant's own testimony was that
he had kQ>t possession of the automobile
from May 5, 1915, to the trial, January 2,
1917, and had neither returned it to the
plaintiff, nor told him to take it away, and
tliat, although he had frequently i>assed the
plaintiff's place of business, he had not called
upon him or told him the automobile was
unsatisfactory, but had advertised it for sale
together with other property of his own.
[1] Assuming that the Jury found the
agreement of sale as tlie defendant claimed,
his subsequent conduct in not Informing the
plaintiff, in the fall of 1915, that the auto-
mobile was not in good condition, and that
he could not use it, and in assuming owner-
ship over it by keeping possession of it down
to the trial, and by advertising it for sale
as bis own, constituted in law an acceptance
of the automobile by the defendant He
cannot now be permitted to withdraw from
a sale long since consummated. The ground
of the decision of the trial court would be
di£Bcult to Justify; the decision Itself was
right
[2] Upon the argument the plaintiff claim-
ed that the act establishing a town court of
Stonlngton, ai^roved April 6, 1893 (Special
Laws, volume 11, p. 166), does not provide
for an appeal from the decision granting a
motion to set aside a verdict As we read
section 24 of this act, we think that it in-
tended to give and did give a right of ap-
peal identical with that existing in the case
of a decision in a related matter by a Judge
of the superior court
There is no error.
(116 He. 97)
ZOBES T. INTERNATIONAL PAPER (X).
(Supreme Judicial Court of Maine. June 20,
1917.)
1. Masteb awd Servant «=»281(9)— Contrib-
tJTOBT Nkgugencb— What Constitutes.
Evidence that a Russian laborer, unable to
read English, entered an elevator shaft four
days after entering defendant paper company's
employment and was crushed by a descending
elevator, does not sustain a finding of contribn-
tory negligence, although there was a warning
sign in English at the shaft's entrance.
[Ed. Note.— For other cases, see Master and
Servant Cent Dig. SS 993. 996.1
2. Masteb and Servant iS=»121(7), 157— Neo-
LIOENCE OF Masteb— What Constitutes.
Defendant paper company employing a lar^e
number of illiterate foreigners held negligent in
maintaining an unlighted elevator shaft opening
guarded only by a warning sign in EugUsb,
which an injured employ^ could not read.
USA. Note. — For other cases, see Master and
Servant Cent Dig. U 230, 303.]
3. Damages <8=»132(1)— Personal Injuries.
$4,000 damages is not excessive for injuries
causing a laborer to be confined seven months in
the hospital, to undergo a serious surgical op-
eration costing $400 or $500, and for impairment
of earning ability in the fnture due to practical
loss of use of both legs.
[EM. Note.— For other cases, see Damages,
Cent Dig. i 372.]
Exceptions from Supreme Judicial (Tourt,
Oxford County, at Law.
Action by Tones Zobes against the In-
ternational Paper Company. E^m an order
of nonsuit plaintiff excepts. Exceptions
sustained, and Judgment for plaintiff in the
sum of $4,000.
Argued before OOKNISH, BIRD, HALEY,
HANSON, and MADIQAN, J J.
William A. Oonneilan and Wilbur a
Whelden, tK>th of Portland, for plaintiff.
WllUam H. Gulliver and Arthur L. Robin-
son, both of Portland, for defendant
MADIQAN, J. A laborer in the employ of
the defendant In March, 1915, entered the
bottom of an open elevator well in the de-
fendant's mill at Rumford to urinate, and
was injured by a descending elevator. Com-
ing to this country from a small rural town
in Russia, he had worked for eight months
piling boards in the Pullman yards in Chi-
cago, after which be worked on a farm until
entering the defendant's employ, where he
had been four days at the time of the ac-
cident; his work with the defendant con-
sisting in loading and unloading pulp wood
in the yard and in the mill. He was 25 years
of age, unable to read English, and speaking
it very slightly.
The stoneroom, 80 called, in the basement
of the mill, contained a number of lockers
in which employes kept their clothes and
lunch boxes. While this room tiad four out-
lets for electric lights, and one before the
shaft, but one light was in commission at
the time of the accident The well was seven
feet wide and thirteen feet long, and opened
directly into the stoneroom, from which came
its only light There were no wheels or
machinery in the lower part of the well, the
floor of which was clay, covered to a certain
extent with waste and paper scraps, and
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WOODMAN T. BUTTEHFIELD
2S
some inches lower tban the concrete floor of
the atoneroom to the level of which the floor
of the elevator could be brought. This ele-
vator was little used at nlg<ht and was kept
locked, so that when needed it was necessary
to procure the key.
The plaintiff was working on two consec-
utive eight-hour shifts, from 3 in the aft-
ernoon untU 11 at night, and from that hour
until 7 In the morning. We do not under-
stand that any special time was set apart for
meals, but the laborers with whom he work-
ed were accustomed to take certain time out
for lunch. Having eaten at 11, at 6 in the
morning he went to the stoneroom to eat
again. There were no toilets in the stone-
room, but in another part of the mill there
were toilets, or troughs, of the existence of
which the plaintiff testifies he had no knowl-
edge. Not having had occasion to do more
tlian urinate during the four days he had
been at work, he never had searched or in-
quired for toilets. Having seen one of his
fellows go to the well to urinate the day
before, as It had a soft, stinky bottom, he
supposed it was not improper for him to do
likewise. There was no gate or barrier
across the opening into the well, but above
the door or on one side of it was a sign
printed in English, "Elevator, employes not
allowed to use," signed by the corporate name
of the defendant Having finished his lunch,
he entered tlie well for the purpose above
stated, and the man who ronoved chips,
needing the elevator, started it downward
from the floor next above, crushing the plain-
tiff so seriously as to make necessary a seri-
ous operation to the spine, and leaving him
thereafter in such a condition that his legs
are practically useless for hard labor for
the balance of his life.
[1] Under the conditions disclosed by the
evidence, we do not feel that this foreigner,
with no knowledge of mills and machinery,
knowing nothing of the existence of the
elevator, ignorant of the language In which
the warning sign was written, fitted by his
life and training to be a mere hewer of wood
and drawer of water, was guilty of con-
tributory negligence. He would not, as sug-
gested, hear the doors at the various floors
opening as the elevator descended, since, as
shown by the testimony of the operator, the
elevator started from the floor next above,
so there would be no doors to open ; neither
does it seem probable that he would retire
to such a damp, ill-smelling place to slumber.
[2] The defendant was at fault. For its
roughest work it employed many illiterate
laborers, of no high order of intelligence or
refinement, of all nations and all tongues,
needing for this work brawn and muscle and
not brains. Their habits, customs, and train-
ing should be taken into account, and their
safety provided for. The shaft opening,
though containing a serions hidden peril, was
unguarded and unllghted. Located near the
stoneroom, which was the only rest room
of the plaintiff, and in which the plaintiff
was properly at the time, the well was a
trap against the danger of which the plain-
tiff should have been guarded. The plain-
tiff's exceptions to the order of nonsuit are
therefore sustained.
[3] According to the stipulation agreed to
by the parties, the law court is to assess the
damages. For seven months in the hospital,
itt serious surgical operation costing $400 or
$500, from which he received much benefit,
and for the impairment of his ability to labor
in the future because of the loss practically
of all the use of his legs, we feel that $4,000
damages are not exq^ssive.
Exceptions sustained. Judgment for plain-
tiff. Damages assessed at $4,000.
(116 Me. 2U)
WOODMAN V. BUTTERPIEIiD.
(Supreme Judicial Court of Maine. June 21,
1917.)
1. Appeal and Erbob «=»8d5(l)— Scope or
Review.
Where the Supreme Court is to direct such
a decree as the record requires, appellee may
urge matters presented in the record, I)ut not
sustained by the decree below.
. [Ed. Note. — For other cases, see Appeal and
iBrrw, Cent. Dig. §§ 3645, 3646.]
2. cobfobations <s=>545(2) — insolvency —
Pbefebences to Dibectors.
An insolvent corporation cannot prefer a
creditor who is also a director.
[Ed. Note.— For other cases, see Corporatioas,
Cent Dig. { 2170.]
3. COBPOBATIONS 4s»342 — DnOiCTORS — LlA-
BiLixr.
Defendant's election as a corporation's di-
rector did not make him sncli until he had no-
tice, or was chargeable with notice, of that fact
end until that time he was not liable for pay-
ments received while the corporation was insol-
vent.
[Ed. Note. — For other cases, see Corporations,
Cent Dig. H 1486-1488.]
4. COBPOBATIONS <S=>361 — INSOLVENCY— StHT-
FioiENCY OP Evidence.
Defendant's testimony that he was notified
of his election as a corporate director some time
during February warrants a finding that he was
so notified at the beginning of February, but
does not sustain a finding of his notification at
an earlier date.
[Eld. Note.— For other cases, see Corporations,
Cent Dig. { 1506.1
5. Bankbuptoy <g=» 184(1) — Pbefebences —
Fbaudulent Conveyances— State Laws.
In an action by bankruptcy trustee to avoid
fraudulent corporate transfers under Bankrupt-
cy Act July 1, 1898^^ c. 541, § 70, cl. e, 30 Stat
565 (U. S. Comp. St 1916, i 9054), authoris-
ing him to avoid transfers which any creditor
might have avoided, whether the transfers were
fraiKlulent depends, not upon the Bankruptcy
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Act, bat upon the kws of the Mate where the
transfers were made.
[Ed. Note.— For other cases, see Bankruptcy,
Cent Dig. I 275.]
6. Insolvknct €=324— Definitioit.
The term "insolvent," when applied to a
person or corporation engat^ed in trade, means
inability to pay debts as they fall due in the
usual course ol business.
[Ed. Note.— For other cases, see Insolvency,
Cent Dig. { 29.
For other definitions, see Words and Phrases,
EHrst and Second Series, Insolvency; Inscd-
voit]
7. OoHPOBATioNa «=>538 — StmnoiKNOT or
BviDBNCK— "Insolvency."
Evidence that a corporation assumed the
debts of its constituent companies, mortgaged
the property for a large amount and issued
bonds under the mortgage, that defendant direc-
tor loaned it money to meet its pay roll, and
that its bonds were authorized to be used as
collateral at a rate not to exceed two for one,
etc., held to sustain a finding that the corpora-
tion was insolvent to defendant's knowledge in
the sense that it could not pay its debts as
they became due.
[Ed. Note.— For other cases, see Corporations,
Cent Dig. | 2161.]
8. COBPOBATIONS <S=»542(3)— INSOLVBRCT— Dl-
BECTOa'8 LlABrLlTT.
A corporate director receiving payments on
notes executed hjr the corporation to himself
after the corporation was insolvent to his knowl-
edge, is liable to the corporation's trustee in
bankruptcy for the money so received.
[Ed. Note.— For other cases, see Corporations,
Cent Dig. { 2156.]
9. COBPORATIONS «=»542(3)— INSOLTXNOT— Dl-
BBCTOB'S IiIABIUTT.
Evidence that an insolvent corporation's
president offered to give defendant director
bonds owned by the president individually and
that the receipt for such bonds was given to the
President as an individual held to sustain a
nding that defendant received the bonds from
the president individually, and not from the cor-
poration.
[Ed. Note.-T-For other cases, see Corporations,
Cent Dig. I 2166.]
10. cobpohations «=3642@) — irboltenot —
Dibectob's Liabilitt.
Evidence held to sustain a finding that bonds
received by a corporate director after the cor-
poraticm became insolvent were not merely an
exchange of bonds, but constituted a payment
on indebtedness due him by the corporation,
where such indebtedness would be substantially
discharged on such a theory, and no satisfactory
reason for reducing it was given.
[Ed. Note. — For other cases, see Corporations,
Cent Dig. i 2156.]
11. cobporations 4=»642@) — insoltxnct —
Dibectob's Liabilitt.
A corporate director is not liable to the cor-
poration's trustee in bankruptcy for payments
made by the corporation while insolvent on notes
on which the director was an indorser, where
such payments were not procured or urged by
the director.
[Ed. Note.— For other cases, see Corporations,
Cent Dig. { 2156.]
Appeal from Supreme Judicial Court, Ken-
nebec Connty, in Equity.
Bill by Walter I. Woodman, trustee In
bankruptcy of the National Boat & Engine
Company, against William W. Butterfleld.
Decree for plaintiff, and defendant a]H>ealB.
Affirmed as modified.
Argued before SAVAGB, C. J, and COB-
NISH, KINO, BIRD, HALEY, HANSON,
PHILBROOK, and MADIQAN, JJ.
Williamson, Burleigh & McLean, of Au-
gusta, Wm. D. Washburn, of Chicago, 111.,
and William Carjjenter, of Muskegon, Mich.,
for appellant. Woodman & Whitehouse, of
Portland, for appellee.
KINO, J. Bill in equity wherein the plain-
tiff, as trustee in bankruptcy of the National
Boat & Ekigine Company, seeks to recover of
the defendant the amount of certain pay-
ments and the value of certain bonds alleged
to have been obtained by him for his benefit
from the corporation while he was a director
thereof and when it was insolvent. The
ground for recovery is alleged to be that the
obtaining and acc^tance of said payments
and bonds by said defendant or for bis bene-
fit were In violation of his flduciaiy duty as
a director of said bankrupt corporation and
In fraud of the rights of Its creditors and
stockholders. The case la before us upon
an appeal by the defendant from the decree
of the sitting Justice.
No special finding of facts or summary
of the issues Involved was filed with the
decree. The record is voluminous. It om-
tains many uncontroverted facts and circum-
stances which are material to a dear un-
derstanding of the particular Issues between
the parties and Important to be considered In
the determination of those issues. We will
therefore at the outset brlefiy state some of
those unquestioned facts and circumstances.
In 1907 the defendant became connected
with the Racine Boat-Manufacturing Com-
pany, a corporation doing business at Mus-
kegon, Mich. He was a large stockholder,
a director, and the secretary of that company.
The other directors were Walter J. Reynolds,
his wife. Rose B. Reynolds, Paul B. Mc-
Cracken, and Frank A. Wilson. Reynolds
was Its president The capital stock of the
company was ultimately $200,000, substan-
tially all owned by the directors. The de-
fendant, together with Reynolds and Mc-
Cracken, indorsed notes of the company to
a large amount January 8, 1900, that cor-
poration made and delivered to Butterfleld
a trust deed or mortgage of its property to
secure him for his then existing indorsements
as he should make for it, and for any notes
given to him by the company. That trust
deed was never recorded, and it was with-
held from record for the reason that, U
recorded, It would Impair the credit of
the company ; but there was an understand-
ing between the other directors and Butter-
fleld that the trust deed was to be recorded
whenever Butterfleld should determine that
the company "was on Its last legs."
In September, 1910, the National Boat &
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WOODMAN T. BXTTTEBFnSLD
27
Bnglne Gompany was organized under the
laws of Maine for the pvirpose of taking
over the property and business of the Radne
Company and of various other companies and
concerns carrying on a similar business.
The plan of consolidation was for the new
corporation to take over all the assets of
the constituent companies and concerns at
an appraisal to be made, and to assume all
the liabilities of each. The difference be-
tween the assets and liabilities of each oon-
stitnent was to be paid to it, or to Its stock-
holders, in the bonds, the preferred stock,
and the common stock of the new company
In such proportions as the plan of consoUda-
tion provided for.
3. Q. Ross, attorney for the Racine Gom-
t>any, Reynolds, its presid«it, and H. S.
Beardsley, of New Tork, appear to have been
active promoters of the consolidation, and
Butterfleld was fully tnformed as to the plans
and purposes of the consolidation from the
beginning of the negotiations, be says that
It was agreed at the outset between Ross,
Beardsley, Reynolds, and himself that no
mention should be made in carrying out the
consolidation of the unrecorded trust deed
which he held of the Racine Company's
property, and that it was farther understood
between them that after the new corporation
had issued Its bonds the trust deed was to
be exchanged for enough of those bonds, to
be held In escrow, to cover all his contingent
liability on notes of the Racine Company
and all of Its direct liability to him. The
consolidation was carried out as planned.
Reynolds became president, Beardsley treas-
urer, and Ross secretary of the new cor-
poration, and each was a member of its board
of directors. All the assets of the Racine
Company were transferred to the new or
National Company by conveyances warrant-
ing the title thereto, and without mention
of the unrecorded trust deed held by Butter-
fleld. At the time of the transfer Butterfleld
was liable as indorser or guarantor of the
Racine Company's paper to the amount of
about $100,000, according to his testimony,
and that company was also Indebted to him
for about $24,500 on notes given by It to
him.
The National CcHnpany authorized an Issue
of not exceeding $3,000,000 of first mortgage
bonds, to bear date October 1, 1910, and to
be secured by a trust mortgage to the Astor
Trust Company, of New Tork City, as trus-
tee, covering all its property real and per-
sonal, present and future. The mortgage was
executed, and on January 18, 1911, was ac-
cepted by the trustee. Some of the bonds
were sold, and others were used as collateral.
The National Company used the same office
as the Racine Company, in Muskegon, Mich.,
until December, 1910, or January, 1911, when
It changed its general office from Muskegon
to Chicago. At a special meeting of the
board of directors of the National Compcmy I
held at the Congress Hotel In Chicago on the
21st day of December, 1910, Butterfleld was
elected a director of tlw corporation. He at
tended the next meeting of the board of di-
rectors held at Chicago on March 13, 1911.
At that meeting the business afFalrs and the
financial status of the corporation were pre-
sented and discussed, and a resolve was passed
that, when necessary to borrow money in
order to obtain funds to meet bills or accounts
payable, or to extend the time of payment on
notes payable, the officers of the company
might use the bonds of the company as col-
lateral at a rate not to exceed two for one.
At the time of the consolidation Butterfleld
held two notes of the Racine Company, one
for $14,500, dated August 4, 1910, maturing
February 4, 1911, with interest paid to its
maturity, and the other for $10,000, dated
September 6, 1910, maturing December 6,
1910, with interest paid to its maturity. Va-
rious payments were made to him and for
his benefit on account of those notes prior
to April 6, 1911. On that day Butterfldd re-
ceived $6,760, at par value of the bonds of the
National Company. He admits that he re-
ceived those bonds in full settlement of the
balance then due on his two notes against the
company, as then adjusted between him and
Reynolds, its president And on or about
the same date he received $3,650 at par value
of the bonds of the National Company.
It has already been mentioned that there
was an understanding between Butterfl^d,
Reynolds, Ross, and Beardsley that, after
the consolidation was completed, a sufficient
amount of the bonds of the new company
should be exchanged for that unrecorded
mortgage which Butterfleld held covering the
Racine Company's property. In furtherance
of that understanding, and in May, 1911,
bonds of the National Company to the
amount of $88,000, were placed in the hands
of Cross, Vanderwerp, Foote & Ross, as trus-
tees, to secure Butterfleld on his indorse-
ments of the notes of the Racine Company,
then amounting to about $44,000, and whi<di
indebtedness the National Company had as-
sumed.
At a meeting of the board of directors of
the National Company held August 25, 1911,
a resolve was passed directing the president
to admit in writing, for the company and
in its name, its inability to pay its debts and
Its willingnesa to be adjudged a bankrupt on
that ground; and the petition in bankruptx^y
was filed against it August 28, 1911.
It appears that Butterfleld, having paid
the notes of the Racine Company on which
he was Uable as Indorser or guarantor,
sought to have the $88,000 of bonds held by
Cross, Vanderwerp, Poote & Ross proved as
a claim against the bankrupt estate. The
claim was disallowed on the ground that the
trust deed for which the bonds were ex-
changed, not having been disclosed in the
consolidation proceedings, was Invalid as
against the bankrupt corporation, and Its
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101 ATIiAJ«TIO REPORTBB
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surrender did not constltnte a valid consid-
eration for the delivery of the bonds in ex-
change for It, and that such delivery was
voidable for the farther reason that It coa-
stituted a fraudulent preference of a director
at a time when the bankrupt was Insolvent,
and known to be so by the claimant. Butter-
field ▼. Woodman (D. C.) 216 Fed. 208, affirm-
ed as to that part of the decision In Butter-
fleld y. Woodman, 223 Fed. 956, 139 a C. A.
436.
The plaintiff's claims presented by the rec-
ord may be thus briefly stated:
First. That Butterfleld became a director
of the National Boat & Engine Company on
December 21, 1910, when he was elected to
that office; that the company was then, and
thereafter continued to be, insolvent, and
that he, as a director of the company, should
have known that fact, and did know It ; that
between December 21, 1910, and April 6,
1911, varlons payments were made by the
company to him directly, or for his benefit.
In reduction of the two notes which he held
against the company ; and that the plaintiff
is entitled to recover of blm tn this action
those payments, with Interest thereon, upon
the ground that they were fraudulent tran»
fers of the company's property to him.
Second. That the $6,700 of bonds reoMred
by Butterfleld on April 6, 1911, hi settlement
of the balance due him on his two notes of
the company were the property of the com-
pany, and that the value of those bonds at
the time they were converted by him, with
interest thereon, is recoverable of him In
this action upon the same ground of an un-
lawful and fraudulent transfer of the com-
pany's property to him.
Third. That the $3,660 of bonds received
by Butterfleld on or about April 6, 1911, be-
longed to the company, and that their value
at the time he converted them, with interest,
is recoverable of him In this action for the
same reason.
Fourth. That divers sums of money were
paid by the National Company after Decem-
ber 21, 1910, In reduction of the amounts of
various notes which that company had as-
sumed and upon which Butterfleld was lia-
ble as Indorser or guarantor, and that the
amount of those payments with Interest Is
recoverable In this action upon the same
ground that they constituted fraudulent
transfers of the company's property for the
benefit of Bntt^-fleld while a director of the
company, and when It was Insolvent.
After bearing the sitting Justice decreed:
(1) The bill Is sustained as to the bonds of
the National Boat & Engine Company de-
livered to the defendant of the par value of
$3,650.
(2) The bill ia sustained as to $3,600 re-
ceived by the defendant from the National
Boat & Engine Company between December,
1910, and February, 1911, as payments to
blm on his liability on certain promis80i7
notes of said company.
(3) The bill is not sostalned as to the
bonds of the National Boat & Engine Com-
pany, delivered to the defendant by Reynolds,
of the par value of $6,750, these bonds be-
coming the property of Butterfleld on deliv>
ery.
(4) If the bonds specified In Item 1 cannot
be delivered in specie to the trustee in bank-
ruptcy, a master may be api>ointed to ascer-
tain their market value at the time they
were demanded, for which sum only Butter-
fleld Is hereby made liable to the trustee.
[1] The plaintiff now claims, In accordance
with the principles affirmed In Trask v.
Chase, 107 Ma 137, 77 Atl. 698, and In Pride
V. Pride Lumber Co., 109 Me. 452, 457, 84
AtL 989, that. Inasmuch as all questions pre-
sented by the record are open for considera-
tion under the appeal, and such decree Is
to be directed by this court as the whole rec-
ord requires, he Is free to urge before this
court his contention in regard to those claims
on bis part, which the record pres^its, but
whidi the decree below did not sustain. We
think he has that right
[2] lu support of each and all of his claims
contended for In this action the plaintiff in-
vokes the rule, which rests in the soundest
wisdom and is supported by the great weight
of authorities, that an insolvent corporation
is not permitted to prefer a creditor who is
also a director of the corporation. The rule
is sustainable upon the principle that it Is
inequitable for a director, whose position
gives him an advantage In obtaining Inside
information of the affairs of the corporation,
to protect bis own claims against it to the
detriment of its other creditors. That rule
Is the settled doctrine of this state where
this action is pending, and where the bank-
rupt coriwratlon was created (Symonds v.
Lewis, 94 Me. 501, 48 Atl. 121, and Pride v.
Pride Lumber Co., supra), and It is also
adopted and enforced by the highest court of
Illinois, the state where the alleged transfers
were made (Beach v. MlUer, 130 IlL 162, 22
N. E. 464, 17 Am. St Rep. 291). That rule
therefore must be applied In this case In
deciding whether or not the alleged payments
by the corporation to the defendant consti-
tuted fraudulent transfer of its property to
him as one of its creditors,
We will consider the plaintiff's claims in
the order in which we have hereinbefore
stated them.
1. The alleged payments made on account
of the two notes which the defendant held
against the corporation, exclusive of the
bonds whicli he received In the final settle-
ment of those notes.
[3] When did the defendant become a di-
rector of the National Boat & Engine Com-
pany? He was elected as such at a meeting
of the directors held December 21, 1910. He
admits that he had previously expressed to
Reynolds his wish to become a director of
that company, because of his Interest In its
affalrsi but be claims that he had no knowl-
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■WOODMAN ▼. BUTTERFIELD
21>
edge tbat he had been elected a director until
some time In February, when Reynolds noti-
fied him of his election. He said:
"It vas the first part or the middle of Febru-
ary. I couldn't remember. • • * Q. Tou
think it was the first part of February? A.
Possibly. • • • Q. So that from the early
part of February on you admit that yoa did
know it? A. Some time in February I knew
that I had been elected."
The mere fact of the election of a person
as a director of a corporation does not con-
stitute Mm a director unless he has notice, or
is chargeable with notice, of that fact In
addition to the election there must be an ac-
ceptance of the oflSce, express or Implied.
Cook on Ciorporatlons (7th Ed.) { 824.
[4] The sitting justice sustained the plain-
tiff's bill as to $3,600 received by the de-
fendant from the National Boat & Engine
Company "between December, 1910, and Feb-
ruary, 1911," as payments to him on his
notes against the company. That decision
implies that he found that the defendant was
a director of the corporation from December,
1900, presumably from the time of his elec-
tion to that office on the 21st of December.
His decision as to questions of fact neces-
sarily involved In the case is not to be re-
versed unless it clearly appears that such
dedsion was erroneous. We are unable to
find any evidence in the case tending to show
that the defendant had any knowledge prior
to February, 1911, that he had been elected
a director of the corporation. He testified
that he had no Information of that fact until
some time in February, there was no testi-
mony to the contrary, and It was not shown
that he did anything prior to Februaiy from
which it could be inferred that he considered
that he was a director of the corporation.
We are therefore constrained to the conclu-
sion tliat the sitting Justice erred in finding
that the defendant was a director of the cor-
poration prior to February, 1911, and there-
fore chargeable with those obligations and
duties which arise out of the fiduciary rela-
tions which the law regards as existing be-
tween a director of a corporation and its
stockholders and creditors. He admits that
he was informed of his election as director
8«ne time In February, 1911, and that it
may have been In the first part of that
month. We think it may be reasonably held
that he knew as early as the beginning of
February, 1911, that he had been elected a
director, and that fnMn and after that time
he was chargeable with the duties and obli-
gations of a director of the corporation.
[5, 1] Was the corporation Insolvent during
the time the defendant was a director of it,
and did he luiow or have reason to know
that It was insolvent? In. the decision of
that question as involved in this case we
are not controlled by the definition of in-
solvency contained in the bankruptcy Act
This bill in equity is brought under the pn>-
visions of clause "e" of section 70 of that
act. Tliat clause of the Bankruptcy Act cre-
ates no new right of the trustee to avoid
transfers of property made by the bank-
rupt, but merely gives to the trustee authori-
ty to avoid any fraudulent transfers of his
property by the bankrupt "which any credi-
tor" might have avoided; and therefore the
question whether a particular transfer was
or was not fraudulent as to creditors does
not depend upon the Bankruptcy Act, but up-
on the laws of the state where the alleged
transfers were made. Holbrook v. Interna-
tional Trust Co., 220 Mass. 150, 154, 107 N.
£1 666; In re Mullen (D. C.) 101 Fed. 413;
Trust Co. V. Trustees of Wm. F. Fisher &
Co., 67 N. J. Eq. 602, 60 AtL 940, 3 Ann. Gas.
303.
The alleged fraudulent payments and
transfers by the bankrupt to the defendant
the value of which the trustee here seeks to
recover, were made In the state of Illinois.
It follows, therefore, that in deciding wheth-
er the corporation was Insolvent at the time
the alleged transfers were made, we must ac-
cord to the term "insolvent" the meaning
ascribed to It by the courts of Illinois. And
to Atwater v. Bank, 162 IlL 606, 88 N. B.
1017, 1018, that court said:
" 'Insolvency,' when applied to a person, firm,
or corporation engaged in trade, means inabil-
ity to pay debts as they become due, in the usu-
al course of business."
And that is the meaning ascribed to the
term "Insolvent" by common-law courts and
courts of equity. Clay v. Towle, 78 Me. 86,
2 Atl. 862; Morey v. MiUlken, 86 Me. 464, 30
Aai02.
[7] The history of the National Boat & En-
gine Company and a consideration of its
financial condition, as disclosed by the rec-
ord, shows that from its beginning It was
practically Insolvent in the sense of that
term which makes the test the Inability of
the corporation to meet its existing obliga-
tions in the usual course of business as they
become due. According to the report of the
appraisers, the new company assumed at the
outset of Its brief existence the combined lia-
bilities of all the constituent companies and
concerns amounting to an indebtedness of
$346,724.22. That indebtedness was immedi-
ately pressing for payment and naturally so,
because the holders thereof discovered that
the property of their principal debtors had
been transferred. But the new company im<
mediately conveyed "all Its property, real
and personal, present and future," to secure
an issue of bonds many of which were at
once actually Issued. It seems plain, there-
fore, that the new corporation tiecame at
once financially embarrassed. Its immedi-
ate and pressing obligations were more
than a third of a million dollars, it had
no available assets, and it must have been
without credit. Its condition was helpless
and hopeless. As early as December, 1910, it
was in need of funds to meet its pay roll, and
Butterfield then came to its aid by borrowing
for It, on his own collateral, $1,000 for that
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101 ATIiANTIO REPOBTBE
(Me.
purpose. We entertain no doubt that tlie
sitting Justice was amply Justified by the evi-
-dence In finding that the corporation was in-
solrent during all the time Butterfield was a
-director of it But his learned connsel urge
that he did not know or hare reas<m to know
its condition. We think otherwise. He was
perfectly familiar with the whole plan of the
consolidation. He knew that the new com-
pany had assumed the debts of the constitu-
ents, and he knew that all the assets which
the new company took over were Immediate-
ly conveyed to secure a $3,000,000 issue of
bonds, and that many of them were issued at
once. In December, not long after the corpo-
ration was organized, he responded to Its
call for aid In meeting its pay roll. He se-
cured frequent and material payments in re-
duction of his two notes which the company
had assumed, and he requested with urgency,
culminating in a threat of legal proceedings,
that his Indirect liability as indorser on pa-
per which the company had assumed should
be secured by a deposit of bonds of the com-
pany as coUateraL He was present and
took part In the meeting of the directors of
the company on March 13, 1911, when the re-
solve was passed "that when necessary to bor-
row money in order to obtain funds to meet
bills or accounts payable, or to extend the
time of payment on notes payable," the offi-
cers were authorized to use the bonds of the
company as collateral at a rate not to exceed
two for one. And on April 6, 1911, he ac-
cepted at their par value at least $0,750
worth of the company's bonds In settlement
of the balance of his notes for which the
company was liable, and he did so with full
knowledge that the company had found it
very difficult to sell its bonds and at much
less than par. Considering the facts and cir-
cumstances disclosed, we are of opinion that
the defendant knew or ought to have known,
during all the time he was a director of the
company, that It was insolvent.
[S] He admits that be received on account
at his notes a payment of $1,200 on February
3, 1911, and another payment of $1,500 on
February 6, 1911. For these, with interest
thereon from the dates of payment, we think
he is liable In this action, upon the ground
that they constituted unlawful transfers of
the company's property to him as a director
creditor of the corporation. We do not find
from the evidenre sufficient proof that he re-
ceived any other payments thereon between
February 1, 1911, and April 6, 1911, when a
final settlement of the balance due on the
notes was made.
[I] 2. The transfer to him of the $6,750 of
bonds on April 6, 1911.
He claims that these bonds were the prop-
erty of Mr. Ileynolds from whom he received
them. We have had considerable doubt as to
that. But the sitting Justice so found, and
we think It has not been shown that his find-
ing is clearly erroneous. On April 4, 1911,
Reynolds wrote the defendant in reference to
a settlement of the latter's claim against the
Kaclne Company, which the National Compa-
ny had assumed, and in that letter said, "but
for the sake of good fellowship I am willing
to sacrifice my own securities for the purpose
of getting this entire matter adjusted with-
out litigation," and he therein offered to turn
over to the defendant $5,000 of his bonds and
$1,000 of his preferred stock. Butterfield did
not accept that offer. He testified that on
April 6, 1911, he and Reynolds reached an
adjustment of the balance due him. In settle-
ment of which he received the $6,750 of bonds
at par, supposing that they were Reynolds'
bonds. Reynolds did not testify in this case.
There may be some significance In the lan-
guage of the receipts which the defendant
gave on April 6th for both lots of bonds. As
to the $6,750 worth, the receipt reads, "Re-
ceived from W. J. Reynolds the f<Hlowing
National Boat & Engine Company Bonds:
[describing them]." But as to the $3,650
worth it reads, "Received of W. J. Reynolds,
President of the National Boat and B/iigine
Company, the following securities: [describ-
ing those bonds]." We therefore think the
decree as to the bonds of the par value of
$6,750 should not be reversed.
[10] 3. The transfer of the $3,650 of bonds
<H> or about April 6, 1911, as represoited by
the defendant's receipt of that date.
When first Inquired of In respect to recriv-
ing those bonds, the defendant said he had no
distinct memory about it, but was Inclined
to think that after the settlement Reynolds
borrowed that amoimt of bonds of him, and
that the receipt represented the return of
them, saying, "Whatever it was. It was on an
exchange basis, and didn't multiply or In-
crease the $6,750 bonds." The plaintiff filed
a petition to reopen the hearing to Introduce
evidence that the defendant had and retained
both lots of bonds, and in his affidavit in an-
swer to that petition, which affidavit is
made a part of the record, the defendant
states that he was mistaken in bis testimony
as to the $3,650 of bonds, but that he is now
satisfied that the bonds were delivered to
him as being those to which be was entitled
on the purchase by the National Company
of the assets of the Racine Company, ot
which he was a stockholder. And he further
says In his affidavit that according to his
best recollection the $3,650 of bonds was
"the exact amount" that he received as a
stockholder of the Racine C<«npany under
the plan of consolidation. We note in the
report of the appraisers as to the Racine
Company that they show the net worth of
that company, the excess of assets over lia-
bilities, to be $808,146.42, and they state:
"Plan of purchase: Bonds, $90,350; pre-
ferred stock, $361,510; common stock, $356,-
290— total, $808,150." If that was the plan
of purchase of the net worth of the Racine
Company, then it would seem that $3,650
would not be "the exact amount" of the
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If. HO
STBARNB V. OT>OWD
31
defendant's ebare of bonds coming fitnn tbe
consolidation, since It appears from his own
testimony tliat be owned at least a quarter
of the capital stock of the Racine Company.
We strongly suspect, after a careful study
of the evidence, that both lots of bonds were
received as payment of the real balance
found due Butterfleld In the adjustment
between him and Reynolds on April 6^ 1911.
According to a statement put Into the case,
which both parties seem to concede Is sub-
stantially correct so far as It shows payments
to Butterfleld on his notes, there was due
Butterfleld, after the February payments of
$2,500 were credited, $11,937.89. The de-
fmdant did not satisfactorily explain how
that was reduced to $6,750. He said It was
"a final settlement of give and take of all
differences to that date," but he could not
recall any particular items or matters that
reduced the balance of $11,937.89 to $6,750.
We find In the record evidence of an entry
on the books of the company under date of
January 25, 1911, tending to show a payment
of $1,600 on "notes payable W. W. B." That
paymoit was not on the aforesaid statement,
which was prepared by some official of the
company and sent to Butterfleld prior to
the February payments; for he put those
February payments on the bottom of the
statement In pencil. The last of the other
payments listed on the statement Is "1-2(X-11,
1,000." If that payment of January 25, 1911,
be deducted from the $11,937.89, there will be
a balance of $10,437.89, which might be
changed somewhat by Interest accrued on
the one side and the other up to AprU 6,
1911. And the total of the two lots of bonds
is $10,400, a significant fact in this connec-
tion, we think. In our opinion, no error Is
shown In holding the defendant liable for the
value of the $3,650 of bonds at the time he
converted them, vrtth Interest thereon. He
received them from the company, and his ex-
planation of the transaction Is not convinc-
ing.
[11] 4. Such payments as were made by the
National Boat & Engine Company, while
the defendant was a director thereof, on
notes the payment of which the company
had assumed, and upon which the defendant
was liable as Indorser or guarantor.
There Is evidence that some such payments
were made to the holders of the notes, but
not to Mr. Butterfleld, and It is not contended
that the holders of the notes had any knowl-
edge that the National Company was Insol-
reot when the payments were made. It Is
true that those payments reduced the defend-
ant's contingent liability for debts which
the company had assumed. But the evidence
does not show that he procured the payments
to be made. Neither does It satisfactorily
appear that he knew when the payments were
made, or even that they were to be made.
We think it would be going too ftir to
hold that a director of a bankrupt corpora-
tion Is liable to pay to Its receiver, or to Its
trustee in bankruptcy, an amount equal to the
payments which the corporation may have
made in Its usual course of business, al-
though while it was In fact Insolvent, to
its outside creditors direct who had no knowl-
edge of its Insolvency, but upon Indebtedness
for which the director is secondarily liable
as Indorser or guarantor, when it does not
appear that such payments were brought
about by the procurement of the director, or
that he knew they were to be made, or when
they were made, and even though It appears
that the director ought to have known that
the corporation was Insolvent during the
period when fiuch payments were made.
See Butterfleld v. Woodman, 223 Fed. 956,
961, 139 O. C. A. 436. And we are therefore
of opinion in this case that the plaintiff Is
not entitled to recover the amounts of al-
leged payments made by the corporation to
the holders of notes for which the corpora-
tion was liable and upon which the defend-
ant was Indorser or guarantor.
Let the decree below be modified In ac-
cordance with thlB opinion.
So ordered.
tre N. H. 8SS>
STEARNS V. O'DOWD.
(Supreme Court of New Hampshire. Hillsbor-
ough. March 30, 1917.)
1. Ofpicebs €=s>83— Actions to Thy Titlb—
Natubx and Form or Rgicedt.
A proceeding in equity does not lie to deter-
mine the title to an office, since there is an ade-
quate remedy at law by quo warranto.
[Ed. Note.— For other cases, see Officers, Cent.
Dig. i§ 115-123.]
2. Quo Wabranto <S=»29— TnxE to Omicb— ■
Time fob Bbinoino Action.
Quo warranto cannot be brought to deter-
mine title to an office until there has been a
usiirpation of the office, which cannot take place
before the commencement of the term of office.
[Ed. Note. — For other cases, see Quo War-
ranto, Cent Dig. !S 31-33.]
3. Elections «=»285(1)— Contests— Fobm or
Remedy— Statute.
Under Laws 1893, c. 66, a contest over a
county office ma^ be determined upon the peti-
tion or application of any candidate interested
before the beginning of the term of such office,
and a pleading filed thereunder is a petition or
application, although labeled a bill in equity.
[Ed. Noto.— For other cases, see Elections,
Cent Dig. Sg 266-268, 276, 276.]
4. Elections ®=>180(1) — Ballots — SptJi
Ballots.
Split or double-marked ballots, being votes
for both candidates, cannot be counted for ei-
ther.
[Ed. Note.— For other cases, see Elections,
Cent Dig. I 151.]
6. Constitutionai, IJAW «=»55— Invabiok of
Judicial Power.
The fact that the statutory provision giving
greater weight to the cross in the circle on a
ballot as the evidence of a voter's intentiou,
which was repealed after judicial decision that
split ballots could not be counted for either can-
tSoVoT otber easM bm tun* topic uid KBT-NUMBBR in >U K«r-Numbared Dlgwto and IndaxM
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32
101 ATLANTIC B£FOBTKB
(N.H.
didate wu later ra-enacted, cannot affect tbe
construction heretofore given the provision aa an
unconstitntional invasion of Uie judicial power.
[Ed. Note.— For other cases, see Constitution-
al Law, Cent. Dig. S| 58-68, 71, 80, 81, 83.]
6l Elections <S=3l8D(4)— Ballots— Mabkiro.
When a cross is not within the circle on a
ballot, but near it, it may, in the absence of oth-
er marks, be interpreted as indicatins an inten-
ti(Hi to vote a straight ticket.
[Ed. Mote.— For other cases, see Ejections,
Cent Dig. 1 154.1
7. Elbcitonb »=»180(g)— Balloto Mabkiwq.
Where a ballot contains heavy crosses op-
posite the names of the candidate for each office
on the ticket, including one against the plain-
tiffs name, with none against defendant's name,
and there is no cross in either circle, but a light
cross just above the column of defendant's party,
it was a vote for the plaintiff.
[Ed. Note.— For other cases, see Elections,
Cent Dig. g 156.]
& Elections «=»800— Ballots— Definition.
A ballot is a written document and the as-
certainment of its meaning is a judicial func-
tion and a question for the law court
[E^. Note. — For other cases, .see EHections,
Cent Dig. §S 308-313.]
9. Elections «=>300— Baixots— Qxjestion of
Fact.
Whether certain papers offered as ballots
were actually cast as such is a question of fact
for the trial court
[Ed. Note.— For other cases, see Elections,
Cent Dig. ii 308-313.]
10. Elections 9=»204— Contests— Evidence
—Admissibility.
In an electicm contest evidence, offered be-
fore a master that many of the ballots marked
"defective," "canceled," "void," "no good," or
"spoilt" were actually cast and counted by the
election officers, was competent and should have
been considered by the master.
[Eld. Note.— For other cases, see Elections,
Gent Dig. St 288-296.]
11. Appeal and EIrbob 9=»1010(2)— Review-
Findings.
The appellate court cannot weigh the evi-
dence to decide a question of fact, but a finding
of fact cannot stand if there was no evidence to
support it
[E^. Note. — For other cases, see Appeal and
Error, Cent Dig. { 3982.]
12. Elections «=>286(1)— Ballots— Mabkinq
—Statute.
Under Laws 1897, a 78, ( 18, providing that
all ballots not counted, in whole or in pan, on
account of defects, shall be marked "defective"
on the back thereof by the moderator, and shall
be sealed with the other ballots cast and re-
turned to the city or town clerks, the entry "de-
fective" made on a ballot, instead of authorizing
the inference that the paper was not cast as a
ballot in the absence of other evidence con-
clusively establishes its status as a ballot;
hence a finding by a master that ballots so mark-
ed were not cast as ballots was erroneous.
[Eid. Note. — For other cases, see Ejections,
Cent Dig. { 207.]
13. Elections <S=3239— Ballots— Mabkino —
Statute — Constbdction — "No Good" —
"Void"— "Spoiled"— "Canceled."
Under Laws 1897, c. 78, f 10, providing
that if a voter spoils a ballot he may succes-
sively receive three others, one at a time, not ex-
ceeding three in all, upon returning each spoil-
ed one, and the ballots thus returned shall be
immediately marked "canceled" by the ballot
clerk, and, together with those not distributed
to the voters, shall be preserved, the words "no
good," "void," "spoiled," may mean "canceled,"
the word the statute required to be placed on
the snoiled ballots ; hence ballots so marked can-
not be counted.
[Ed. Note:— For other cases, see EUecticms,
Cent Dig. } 218
For other definitions, see Words and Phrases^
First and Second Series, Cancel— Cancellation ;
Void.]
Transferred from Superior Court, Hills-
borough County.
Proceeding by George Ia Steams against
John T. O'Dowd to determine a title to oflSce
of sheriff of Hillsborough county, to which
defecdant was declared elected. J>idgment
for defendant subject to exception, and ques-
tions ralsett by the proceedings reserved and
transferred. Exceptions sustained.
Petition under section 1, c. 66, Laws 1898,
to determine the title to the office of sheriff
of the county of Hillsborough, to whldi the
defendant was declared elected. The peti-
tion alleged that, upon a correct count of
the ballots cast, the petitioner received a
plurality of the votes for the office of sheriff
and was elected. The petition was referred
to a master, who found oo the ballots cast
that Steams received 10,025 votes, and
O'DowU 10,013, and that there was contro-
versy as to the proper counting of 120 bal-
lots, which, numbered and fully described,
were returned as a part of the report Forty-
nine ballots were marked with a cross In the
circle of one party and with a cross opposite
the name of the nominee of the opposing
party for sheriff, without erasure of the
name of the candidate in the column und»
the circle which was marked. The master
counted these according to the cross In the
circle— 31 for O'Dowd and 18 for Steams.
There were 16 ballots marked "defective,"
arid U marked "canceled," "void,- "no good,"
or "spoilt," none of which were Included In
the master's count Upon the return of the
master's report, each party claimed election
and moved for a certificate. Subject to excep-
tion, the court found the defendant, O'Dowd,
elected, and ordered a certificate of election
to be issued to him, March 31, 1917. All
questions of law raised by the proceeding
were reserved anU transferred by Branch, J.
Jones, Warren, Wilson & Manning and
Harry T. Lord, all of Manchester, for plain-
tiff. Thomas H. Madigan, Jr., of Manches-
ter, for defendant
PARSONS, & J. [1, 11 In the record sent
to this court the proceeding is labeled "Bill
in Equity." The defendant objects that a
bill in equity cannot be maintained to de-
termine the title to an office. The objection
is weU taken. A proceeding in equity does
not lie because there is an adequate remedy
at law by quo warranto, which, however, can-
not be brought until there has been a usur-
pation of the office, which cannot take place
tgsoFoT othar ouas Ma asma topio and KBT-MUUBEIR In ftll Kay-Niuaberad DisaaU uui Indaxn
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N.HO
STEARNS V. O'DOWD
83
before the commencement of the term of the
office In dispute. Attorney General v. Hegin,
63 N. H. 378; Osgood v. Jones, 60 N. H. 643;
Osgood V. Jones, 60 N. H. 282. CJonnty offi-
cers are diosen biennially on the Taesday
next following the first Monday in November.
The returns are canvassed and the result
declared on the first Tuesday of December,
but generally, if not In all cases up to the
present time, the officers-elect do not enter
upon their offices until the first of the fol-
lowing April. Until 1893 controversy over an
election could not be litigated until the term
of office began, practically six months after
the election. In that year It was provided
that a contest over a county office might be
determined, upon the petition or application
of any candidate interested, as well before
the term of such office began as after. Laws
1893, c. 66.
[S-6] The present proceeding is a petition,
or application, under the statute by one of
the candidates for the office, and in no sense
a "Bill In Equity." The decision In Murchle
V. Clifford, 76 N. H. 99, 79 AU. 901, which
was followed in Dinsmore v. Mayor, 76 N. H.
187, 81 AtL 683, settles the proper construc-
tion of the split or double-marked ballots;
being votes for both candidates, they can be
counted for neither. The fact that the stat-
utory provision giving greater weight to the
cross in the circle as evidence of the voter's
intention, repealed shortly after the decision
in Murchle v. OUfforti (Laws 1911, c. 188),
was later re^nacted (Laws 1915, c. 119), can-
not affect the construction heretofore given
the provision as an unconstitutional Invasion
of judicial power. If it be conceded that the
Judicial view of the legislation vras in mind
when the provision was re-enacted. It would
follow that It was then understood the pro-
vision would be disregard^ in a Judicial
interpretation of the ballot. The double-
marked ballots cannot be counted. One of
these, however. No. 27, though counted for
O'Dowd on the ground of a cross in the Dem-
ocratic circle, was not so marked.
[I] There are heavy crosses opposite the
names of a candidate for each office on the
ticket, including one against Stearns' name,
with none opposite O'Dowd's. There is no
cross In either circle, but a light cross Just
above the Democratic column. When a cross
is not within the circle, but near it, it may,
in the absence of other marks, be interpreted
as an attempt to vote a straight ticket In
this case the voter, by maxklng every candi-
date and divfdlng his marking between the
parties, furnished competent evidence of his
intention not to vote a straight ticket A
cross in the circle would have Indicated an
intention to vote the whole ticket of the par-
ty to which the circle belonged, and it would
then be impossible to detennine bis actual
intent On this ballot the voter clearly ex-
pressed an Intent to vote a mixed ticket— to
vote for Steams, and not to vote for O'Dowd.
lOlA.^-8
The most that can be satd of the stray cross
at the top is that it is evidence of an im-
perfectly executed Intent to vote a straight
ticket The direction of the statute printed
ui>on the ballot requires for a straight vote
a cross in the circle. The voter made no
cross there, and, in view of the direct evi-
dence of his purpose elsewhere expressed on
the ballot, it cannot be found that he Intend-
ed a cross not in the circle as indicating bis
preference. If this cross were the only one
on the ballot, the Interpretation would be aid-
ed by the presumption that the voter intend-
c!d the paper prepared by him as a ballot, and
to prevent loss of his vote his main purpose
would be carried out by giving to the mark
nuide by him the only interpretation possible.
[7] But the vote he attempted to give by
properly executed crosses cannot be destroy-
ed by an unexecuted Intention to vote a
straight ticket The statute, after providing
that a cross in the circle is a vote for a
straight ticket continues, "Provided, how-
ever, that a voter may omit to mark in any
circle and may vote for one or more candi-
dates by marking a cross (X) opposite the
names • • • of the candidates of his
choice." The voter in this case followed the
statute; he did not mark In any circle, but
made a croes opposite Steams' name and
none against O'Dowd's. The ballot is a vote
for Steams. Eleven baUota were claimed
as votes for O'Dowd which contained no
cross opposite O'Dowd's name and none ta
any clrela There are on them one or more
crosses in the space opposite the Democratic
electors, and not in the square provided for
voting for the electors by a single cross. It
cannot be said that marks so situated Indi-
cate an attempt to mark a cross within the
circle, the only method by which an intent
to vote a straight ticket can be expressed by
a single cross.
[3,1] "The ballot is a written document,
and the ascertainment of its meaning is a Ju-
dicial function." Murchle v. Clifford, 76 N. H.
99, 104, 79 Atl. 901, 903. And Is a question
for the law court State v. Ballroad, 70 N.
H. 421, 434, 48 Atl. 1103. Whether certain
papers offered as ballots were actually cast
as such is a question of fact for the trial
court Murchle v. CUfford, 76 N. H. 99, 101,
102, 79 Atl. 901.
[10, 11] Twenty-seven papers, apparently
ballots, returned with the others, were reject-
ed by the master upon the ground that they
were not cast as ballots. Sixteen of these
were markeld "defective," and eleven either
"canceled," "void," "no good," or "spoUt"
The plaintiff offered evidence as to many of
these that they were ballots actually cast
and counted by the election officers. The
master heard and r^orted the evidence, but
refused to consider it The evidence was
competent and should have been considered.
The question of fact so presented cannot be
here decided. This court cannot weigh the
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101 ATLANTIC BBPORTBR
(N.H.
evidence. The finding of fiLct, however, can-
not stand U tbere was no evidence to sustain
it The only evidence relied upon to over-
turn the presumption from the presence of
the papers among the returned ballots la
the entries above recited, found on the pa-
pers apparently made by the election officers.
The statute provides, in the directions for
counting ballots by the election officers : "All
ballots not counted, In whole or in part, on
account of defects, shall be marked 'defec-
tive' on the back thereof by the moderator,
and shall be sealed with the other ballots
cast and returned to tlie city or town clerks."
Laws 1887, c. 78, { 18. Tbere Is no require-
ment that the particulars in which the bal-
lot is considered defective should be noted
on the ballot.
[12] The entry "defective^' ma'de on a bal-
lot under this provision, instead of authoriz-
ing the inference that the paper was not
cast as a ballot, in the absence of other evi-
dence oondoslvely establishes its status as a
ballot. The finding as to these ballots, being
without evidence to sustain it, is set asidft
A person wishing to vote Is given one bal-
lot only, wblcb he takes with blm into the
voting booth. "If any voter spoils a ballot,
he may successively receive three otbers,
one at a time, not exceeding tbree In all,
uiKm returning each spoiled one. The bal-
lots thus returned shall be Immediately mark-
ed 'canceled' by the ballot clerk, and, togeth-
er with those not distributed to the voters,
shall be preserved." Laws 1897, a 78, i 16.
[13] If the statute la foUowed, ballots
marked "defective" are ballots that have
been cast and are returned with the others
cast Ballots marked "canceled" are ballots
not cast, and are to be preserved with others
not cast. The words "no good," "void,"
"qpolled," may mean "canceled," the word
the statute requires to be placed on the spoil-
ed ballots. There was therefore evidence to
sustain the finding made as to the eleven.
Kvidence was offered tending to show that
two of these, Nos. 30 and 81, were cast as
ballots, and the marking "no good" placed
upon than by direction of the moderator
after they were taken from the ballot box.
If, npon consideration of the evidence, tbe
master's conclusion should be reversed, one
of the ballots, and possibly the other, would
be counted for Steams. There was no evi-
dence tending to establish the verity of the
other "canceled" ballots. None of the eleven
can now be connted. Of the ballots marked
"defective," and not connted, two are votes
for O'Dowd and seven for Steams.
Objection is made by both parties to the
conclusion of the master as to many of the
ballots, but a careful examination of each
disputed ballot does not disclose other error
in their interpretation by him which would
affect the result. As tbe matter now stands,
without delaying for a finding of fact as to
the ballots Nos. 80 and 81, O'Dowd has 10,014
votes and Steams 10,015.
The master's count gave O'Dowd 10/)43.
To this should be added the two "defective^*
ballots, and subtracting from this total tbe
thirty-one "split ballots" gives the above re-
salt
Similarly the correct count for Steams is
reached by adding to the master's count the
seven "defective" and ballot "No. 27," eight
in all, and subtracting the eighteen "splits"
counted for him. As Steams received, upon
a correct count of the ballots, a plurality of
the votes cast he was elected, and is entitl«U
to a certificate of election.
Exceptlcm sustained. All concurred.
BROWNE
(78 N. H. 387)
PARK CEMETERY.
(Supreme Court of New Hampshire. Belknap.
May 1, 1917.)
1. BmNENT Domain «=»4a-"PuBuo Ubb"—
CoNSTrruTioN— Stathtis.
Laws 1913, c. 311, { 1, providing that all
proceedings of the Park Cemetery corporation
In the town of Tilton are ratified and made le-
gal, and that the cemetery shall have all the
rigbta and powers, and be subject to all lia-
bilities, which towns by statute possess concern-
ing cemeteries by P. S. c. 40, { 4, and section
6, authorizing towns to take land in invitnm
for public use, is not violative of Const pt 1,
art. 12, as authorizing the taking of private
property In Invitum for a private use, since the
use of land for the establishment and mainte-
nance of a cemetery for the burial of the dead
may be a "public use" justifying its condemna-
tion.
[Ed. Note.— For other cases, see Eminent Do-
main, Cent Dig. { 80.
For other definitions, see Words and Phrases,
First and Second Series, Public Use.]
2. Cemxteries «:3l— Assbbtion or Pttbuc
RioHT— Duty to Afford Skbvicb.
Having invoked tbe power of eminent do-
main to acquire rights in tbe lands of others,
a cemetery corporation can be compelled, at
least to the extent of the rights acquired, to
afford reasonable service to the public, in the
public business it has undertaken, at reasonable
rates.
[Ed. Note.— For other cases, see Cemeteries,
Cent Dig. f 1.1
Transferred from Superior Court, Belknap
County; Elvel, Judge.
Proceeding for the laying out of land for
the Park Cemetery by the selectmen of the
town of Tilton, wherein Belle P. Browne
objected. From the laying out Browne ap-
pealed. On transfer without a ruling. Case
discharged.
The defendant Is a voluntary corporation
organized July 8, 1851, for the purposes of
providing, holding, and keeping in repair
suitable grounds and other conveniences for
the burial of the dead, and claims the right
to take the plaintiffs land under the fol-
lowing statute passed March 6, 1913:
"All the acts and procecflings of an association
called and known as Park Cemetery located in
the town of Tilton (formerly in Sanbomton),
Asa^or otber eases sea tame topic and KKY-NUMBER Is all K*F-Namb«r«d Digest* and Indexes
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N.H.)
STATE V. WEEKS
36
l>p, and fte same are hereby ratified and mnde
Ipgal, and the said Parlt Cemetery as now organ-
ized shall have all tlie riiihts and powers, and be
subject to all the liabilities which towns by
statute possess concerning cemeteries, by and un-
der sections 4 and 6 of chapter 40 oi the Public
Statutes, and shall be called and Icnown as Park
Cemetery." Laws 1913, c. 811. i 1.
Stephen S. Jewett, of Laconla, for plalntlfC.
Charles O. Bogers, of Tllton, Robert Jack-
sou, of Concord, and Branch & Branch, of
Manchester, for defendant
PARSONS, 0. J, [1] By section 6, c. 40,
P. S., towns are authorized to take land In
invitum_ for public use. The use of land
for the establishment and maintenance of a
cemetery for the burial of the dead may be
a public use. Rockingham Light dc Power
Co. T. Hobbs, 72 N. H. 531, 533, 68 Atl. 46,
60 U R. A. 581; Crowell t. Londonderry,
83 N. H. 42 ; Evergreen Cemetery Association
V. New Haven, 43 Conn. 234, 21 Am. Rep. 643.
"The burial or other safe disposition of thd
dead is a necessity essential to the preservation or
the health of the living. The private use of land
for this purpose by a private corporation may
be of public conyenlence and necessity, as that
term is sometimes used, although not strictly a
public use justifying condemnation of land for
that purpose. • * • But where land is ap-
propriated • • • by a town or other munic-
ipal corporation, or by the owners of the land,
being a rolnntary association or private corpora-
tion, and the land so appropriated is open, under
reasonable regulations, to the use of the public
for the burial of the dead, it may become a pub-
lic burial ground and its use a public use, and
the Legislature may lawfully condemn land for
that public use." Starr Burying Ground Ass'n
V. Association, 7T Conn. 83, 58 Atl. 407.
The plaintiff bases her objection to the
constitutionality of the statute Invoked by
the defendant upon the elementary principle
that private property cannot be taken in
Invltum for private use. Const, pt. 1, art
12; Concord Railroad v. Greely, 17 N. H.
47; L'nderwood v. Bailey, 50 N. H. 480.
If this were the purpose of the statute, the
pbjection would be fataL But the power
conferred upon towns by section 6, c. 40, P.
S., which the act of 1913 gives the defendant
is only to take land for a public use.
As the plaintiffs land can under the stat-
ute be taken only for a public use, there is no
constitutional objection to the statute.
Whatever title the association may have to
land previously acquired by treaty, all land
It may acquire under this statute will be af-
fected by the public use.
"If the right in the old ground is not pulilic
in every sense of the term, it will not affect the
public right in regard to that part of the ground
which is added to it by this enlargement The
part added will be public, subject to such regula-
tions and restrictions as the by-laws of the as-
sociation may make ; and that is enoujsh to an-
swer the material part of this claim, viz. its be-
ing subject to the objection of talting private
property for private use only." Edwards v.
Stonington Cemetery Ass'n, 20 Conn. 4G6, 479.
[2] Having Invoked the power of eminent
domain for the acquisition of rights in the
lands of others, the defendant can be com-
pelled, at least to the extent of the rights ao
acquired, to afford reasonable service to the
public in the public business they have un-
dertaken at reasonable rates.
"It is in fact a public agent exercising powers
for the public advantage which are subject to
legislative control and enforcement." McMillan
v. Noyes, 75 N. H. 2o8, 203, 72 Atl. 750, 762.
Case discharged. All concurred.
(78 N. H. 408)
STATE V. WEEKS.
(Supreme Court of New Hampshire. Cheshire,
May 1, 1917.)
1. CouNTiKB <e=>139 — Cbhonai. Tbiai. — Hx-
FENSES.
. The power of the courts to grant a person
charged with crime assistance in bis defense at
public expense is wholly statutory.
[Ed. Note. — For other cases, see Counties,
Cent. Dig. §§ 203-207.]
2. Counties 4=9l39 — Ezpenbxs — Prepaba-
TION FOB Tbial.
There is no statutory authority under which
the public may be charged with expenses incur-
red by defendant in preparing for trial or in em-
gloying experts td conduct an examination as to
is sanity except so far as counsel and those for
travel and attendance of witnesses are con-
cerned.
[Ed. Note.— For other cases, see Counties,
Cent Dig. §{ 203-207.)
3. Counties <s=»139 — Expenses — Pbefaba-
TiON FOB Trial.
Pub. St 1901, c. 256, { 0, providing that all
legal costs attending the arrest, examination,
or conveyance of an offender, except when di-
rected or approved in writing by tlie counsel of
the state or county commissioners, shall be paid
by the complainant is not applicable to a claim
for the fees of experts incurred in examining a
defendant as to sanity in preparation for trial
for murder.
[Ed. Note.— For other cases, see Counties,
Cent. Dig. U 203-207.]
Exceptions from Superior Court Cheshire
County ; Branch, Judge.
Eugene A. Weeks was indicted for murder.
On disallowance of a claim against the coun-
ty, for fees of experts, defendant excepts.
Exceptions overruled.
Indictment for murder. The defense of in-
sanity was suggested, and bills were present-
ed by counsel for the defendant for the feea
of experts employed to examine the defend-
ant No authority had been given to employ
them at the expense of the county. At the
October term, 1916, the superior court dis-
allowed the claim, allowed the defendant's^
exception to the order, and transferred the
question of authority to allow the bills
against the county.
James P. Tnttle, Atty. Gen., Philip H.'
Faulkner, Co. Sol., of Keene, and James A.
Moynlhan, of Manchester, fo°r the State.
Joseph Madden, of Keene, for defendant
PBASLEB, J. It does not directly appean
npon what ground the order excepted to was
made; but as the case states that the ques-
tion of authority Is transferred, it is assunk.
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86
101 ATLANTIC REPORTER
(Vt.
ed that allowance of the claim was refused
upon the ground that the court had no pow-
er to take such action.
The case appears to be one of new Impres-
sion. No precedent has been found for the
course here orged In behalf of the defend-
ant The proposition is that the public shall
pay the expenses incurred by the defendant
outside of court in the preparation of his de-
fense. Of course there can be no common-
law authority for such an order. By that
law the defendant —
"was denied compulsory process for his witness-
es, and when they voluntarily appeared in his
behalf, he was not permitted to examine them
on oath, nor to have the aid of counsel in his
defense, except only as regarded the questions of
Uw." United States v. Beid, 12 How. 361, 864,
13 L. Ed. 1023.
[1] It required legislative action to give
the defendant the rights he would have in
a civil cause. 4 Blk. Com. 360. It is mani-
fest that a right so acquired cannot he ex-
tended so as to Include a privilege or right
never known to the common law, and in no
way created by any statute. The right to
the state's process to compel the attendance
of the defendant's viritnesses in certain cases
(laws 1907, c. 136, } 1) ortglnated in this
state with the act of 1829. Laws (Ed. 1830)
p. 149. The changes which have, from time
to time, been made in the statute show a
continuing legislative understanding that the
power of the court to grant a person charg-
ed with crime assistance In hia defense at the
public expense is wholly statutory. R. S.
C. 225, i 3; Laws 1859, c. 2221, H 1. 6: Laws
1862, a 2608, {» 1, 3; G. S. c. 243, $S 1, 4;
Laws 1873, c. 47; G. L. c 261, {| 1, 4. See,
also. State ▼. Arlin, 39 N. H. 179, and State
y. Archer, 64 N. H. 465, where It seems to
be assumed that authority to act must be
found in the statute.
[2] The statute governing the rights of
I>erson8 charged with the more serious
crimes (P. S. c. 254) was revised in 1901
(Laws 1901, c. 104), and again amended in
1907. Laws 1907, c 136. By the latest
amendment the requisites for obtaining state
process to comi)el the attendance of witnesses
for the defendant are given in detalL It
must appear that the defendant is poor and
nnable to defray the expense, and that in-
justice may be done if provision therefor la
not made at the public expense. The sub-
ject has evidently received careful legislative
consideration, and there is nothing In any of
the statutes which have been enacted which
gives color to the idea that authority has
been conferred to charge the public with the
expenses incurred by the defendant in pre-
paring for trial, except so far as counsel fees
and those for travel and attendance of wit-
nesses are concerned.
[3] It was urged by the state in argument
^hat the statute, providing that:
"All legal costs attending the arrest, exam-
ination, or conveyance of an offender, except
when directed or approved in writing by the
counsel of the state, or county commissioners,
shall be paid by the complainant" (P. 8. c 256,
I 9)
— ^was applicable to this claim, and that it
must be disallowed because its incurrence
had not been previously authorized by the
state's counsel. But that statute has no ap-
plication to the claim here presented. It re-
lates solely to expenses incurred in prosecu-
tions for alleged crimes, and has nothing to
do with the regulation of allowances to or
on behalf of defendants.
The state's contention that the court has
no power to allow this claim is sound. But
the reason for this result is that no such
authority has been conferred upon the court,
and not that the consent of the state's coun-
ael is essentiaL
' Exception overruled. Ail concurred.
(91 vt am
LAFOUNTAIN & WOOLSON CO. v. BROWN.
(Supreme Court of Vermont Windsor. May
1, 1917.)
1. Fbaudb, Statute of «=»130(6>— ExEcnncD
AgbEEMBNT — SAIJ& OF.COBPORATB SxOCK.
The rights of the parties under an uncondi-
tional contract for the sale and purchase of cor-
porate stock are determined independently of
the statute of frauds, where the stock certi0cate
has been delivered and payment made, though the
agreement while it remained executory, would
have been unenforceable because of such statute.
2. CoRPOBATiONS ®=>155(2) — Tbansfeb or
Stock— Right to Dividend.
The dividend on stock sold ordinarily be-
longs to the one who was the owner thereof
when the dividend was actually declared.
[Ed. Note.— For other cases, see Corporations,
Cent Dig. i 561.]
3. CospoBATioNs «=>155(3) — Tbansfeb or
Stock— Undivided Sukplds.
The surplus of a corporation is a part of
the stock until separated from the capital by the
declaration of a dividend, and while undivided
will pass with the stock In a transfer thereof.
[Ed. Note.— For other cases, see Corporations,
Cent. Dig. { 663.]
4. Corporations *=»119 — Sale of Stock —
' Equitable Interest of Btjteb.
The purchaser of corporate stock acqaires
an equitable interest before completion of the
transter where the contract of sale is binding
between the parties,, and .as between them such
interest will be enforced and protected as a trust
[Ed. Note. — For other cases, see Corporations,
Cent Dig. }} 499-603.]
6. Gobpobationb <&=>116 — Salk of Stocx— <
Construction or Contract.
In construing a contract to sell corporate
stock, it will be presumed that the parties in-
tended, nothing to the contrary appearing, that
the shares were to be transferred m their condi-
tion at the time of the bargain.
[Ed. Note.— For other cases, see CTorporationa,
Cent Dig. {i 493, 494, 496.]
6. Cobpobations is=9l55(3) — Sale of Stock
—Right to Dividend.
Where a dividend was declared after the exe-
cution of a valid contract for the sale of cor-
porate stock, but before arrival of the time for
delivery and payment, the buyer, on complying
with the contract, was entitled to the dividend.
[Ed. Note.— For other cases, see Corporation^
Cent Dig. i 563.]
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VM
rtA.POUNTAIN <l! WOOIBON CX). v.-BROWK
37
Szceptlona from Windsor County Oonrt;
Iieight<» P. Slack, Presiding Judge.
Action by the Lafountaln & Woolson Com-
pany against Walter W. Brown. From a
judgment toe plaintiff, defendant brings ex-
ceptions. Affirmed.
Argued before WATSON, O. J., and HA-
SBLTON, POWBBS, TAYLOR, and
MILES, 33.
Stickney, Sargent & Skeels, of Ludlow, for
plaintiff. Blanchard Se Tupper, of Spring-
field, for deftodant.
TAYLOR, J. The acUon Is contract for
money had and received. The plaintiff seds
to recover the amount of a dividend on sto<^
purchased by It from the defradant The
case was tried by the court on an agreed
statement of facts, and the plaintiff had Judg-
ment.
The defendant was the owner of the ma-
jor part of the capital stock of the Brown
Hotel Company, a corporation, operating a
hotel at Springfield, Vt, and one of the three
directors of the corporation. On March 24,
1916, he had negotiations with plaintiff's rep-
resentative regarding the sale of the capital
stock of the hotel company. Later the same
day the defendant's agent called plaintiff's
representative by telephone and told him
that the defendant would sell his stock to the
plaintiff at a certain price per share. Plain-
tiff's representative replied that the plaintiff
would take the stock at the price named and
pay for It the following morning, to which
defendant's agent assented. No part of the
stock was then delivered nor any part of the
purchase money paid; ndther was any writ-
ten memorandum of the bargain made. On
the following morning the defendant and
plaintiff's representative met and the trans-
action was completed by delivery of the cer-
tificate of stock and payment of the purchase
I»4ce. During the negotiations nothing was
said about cash In the treasury of the hotel
company.
On Mardi 24, 1916, after the above tele-
phone conversation, the defendant called a
meeting of the directors of the hotel com-
pany, and a dividend of $1.50 per share was
declared, which was Immediately paid by the
treasurer of the corporation. The defendant
received as the dividend on the stock bar-
gained to the plaintiff $499.50. The plaintiff
first learned of the dividend when the books
of the hotel company were turned over after
the delivery of the stock. Thereupon It made
demand upon the defendant; and, payment
being refused, this suit was brought.
To maintain this action the plaintiff must
establish that it was entitled to the dividend
as the purchaser of the defendant's stock;
and its ri^it to receive the dividend depends
upon its relatlcm to the stock at the time the
dividend was declared. It Is held that in
case of options and sales of stock for future
delivery the right to dividends depends upon
ttie question at what time with reference to
the declaratloa of the dividend the title pass-
es. 7 R. 0. I* 293. This transaction was
not an option. It culminated in an uncondi-
tional agreement for the sale and purchase of
the stock before the dividend was declared.
All that remained to be done was the deliv-
ery of the certificate and the payment there-
for at the time fixed In the agreement.
[1] The defendant contends that the agree-
ment of March 24th was invalid because with-
in the statute of frauds, so that no rights
could accrue under It Conceding that, while
the agreement remained wholly executory, it
was not enforceable because of the statute,
the subsequent delivery and payment took
the transaction out of the statute, leaving the
rig&ts of the parties to be determined inde-
pendently of it. Patterson v. Sargent, 83
Vt 516, 77 AU. 338, 138 Am. St Rep. 1102 ;
Strong T. Dodds, 47 Vt 348 ? Fay v. Wheel-
er, 44 Vt 292 ; 2 Cook on Cor. 1045.
IZ, 3] The defendant claims further that
title to the stodc did not pass until payment
and delivery; and so^ as the stock belonged
to him at the time the dividend was declared,
the dividend was payable to him. There is
no disagreement as to the general rule that a
dividend belongs to the one who was the
owner of the stodi when the dividend was
actually declared. See King v. Follett 3 Vt
S85. It is also well settled that the surplus
of a corporation is a part of the stodi itself
until separated from the capital by the dec-
laration of a dividend. See In re Beaton's
Estate, 89 Vt 560, 96 AU. 21, L. R. A. 1916D,
201. Such undivided surplus will pass wltb
the stock under that name in a transfer
thereof. The purchaser takes the stock with
all its Incidents, one of which Ls the right to
receive its proportionate share of imdlvlded
profits. Harris v. Stevens, T N. H. 454;
March v. Eastern Railroad Co., 43 N. H. 620;
7 R. C. L292; 10 Oye. 556.
[4] 'The defradant recognizes this fact and
bases his right to the dividend upon the claim
of legal title to the stock at the time it was
declared. But the question does not depend
alone upon legal title. The principle of eq-
uitable assignments applies. The purchaser
of shares of corporate stock is held to acquire
an equitable interest in the stock before the
transfer Is completed, if the agreement of
purchase and sale is binding between the par-
ties. As between them such Interest will be
enforced and protected as a trust. 1 Mora-
witz on Pr. Cor. | 174.
[6] ' In construing an agreement for the sale
of shares of stock it will be taken to be the
intention of the parties, nothing to the con-
trary appearing, that the shares are to be
transferred in their condition at the time of
the bargain. 1 Morawltz on Pr. Cor. f 175.
Thus the law imputes to the seller an Inten-
tion to deal fairly with the purchaser, and In
doing so requires him to deliver only what
entered into the value and price at which the
stock was sold. While it permits him to re-
tain the "fallal fruit," it does not accord to
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38
101 AtliANTIC EEPOBTEB
(Vt
him the additional privilege o£ "shaking the
tree" after the bargain Is closed.
[I] It follows from what we have said that
If, after a valid contract for the sale of
shares of stock Is made, but before the time
for delivery and payment arrives, a dividend
Is declared, the purchaser Is entitled to the
dividend on complying with the contract.
Phlnlzy V. Murray, 83 Ga. 747, 10 S. B. 358,
6 Ia R, A. 426, 20 Am. St. Rep. 342; Currle
T. ■RTiIte. 45 N. Y. 822; Harris v. Stevens,
7 N. H. 454 ; Conant v. Reed, 1 Ohio St. 298 ;
Beadi T. Hamersham, Ll R. 4 E>x. D. 24 ; 7
B. G. I/. 293; 2 Addison on Con. ! 661 ; CJook
on Stocks & Stockholders, { 543 ; 2 Cook on
Cor. S 539; 1 Morawltz on Pr. Cor. If 174-
178.
The result is that under the agreement In
this case the dividend belongs to the plaintiff.
Judgment aturmed.
(n Vt «»
CORBY et al v. BABRE GBANITB & QUAE-
BY CO. et al.
(Supreme Court of Vermont. Washington.
May 8, 1917.)
1. CoBPOBATioNs «=»665(3) — Foreign Cobpo-
RATIONS— INTEBNAL AFFAIRS— JUBISDICTIOW.
A court of chancery may, where all the nec-
pssary parties are before it, and where the re-
lief soufrht is within the jurisdiction of a court
of chancery, award a stockholder relief against
a foreign corporation expressly chartered to do
business in the state and having its property and
business here, although it involves an interfer-
ence with its internal affairs.
[Kd. Note.— For other cases, see Corporations,
Cent. Dig. {§ 2571, 2573, 2600.]
2. PtEAMNO ®=5>214(1)— Demtjrbe»— Mattebs
Admitted — Aujeqations on Infobmation
AND Belief.
A demurrer to allegations on information
and belief admits only the belief and informa-
tion,, and not the focts pleaded.
[Ed. Note.— For other cases, see Pleading,
Cent Dig. §§ 525. 529.]
3. Corporations ®=»401— Directors— Rionxs.
The directors of a corporation cannot repre-
sent it in transactions with another corporation
in which they are shareholders if their interest
in the latter company might induce them to
favor it at the expense of the comi>any whose in-
terests have been intrusted to their care.
[Ed. Note.— For other cases, see Corporations,
Cent Dig. H 1363, 1364, 1595.]
Appeal in Chancery, Washtngton County;
Fred M. Butler, Chancellor.
Action by Frank M. Corry, trustee, and
another against the Barre Granite & Quarry
Company and others. From a decree sus-
taining a demurrer to the complaint, comr
plalnants appeal. Decree affirmed, and
cause remanded, with leave to amend.
Argued before MUNSON, C. J., and WAT-
SON, HASELTON, POWEBS, and TAY-
LOB, JJ.
Edward H. Deavltt, of Montpeller, for ap-
pellants. Jolm W. Gordon and S. HoUister
Jackson, both of Barre, for appellees.
MUNSON, C. jr. This complaint is prose-
cuted by Frank M. Corry, trustee of the Wet-
more & Morse Granite Company, against the
Barre Granite & Quarry Comi>any and cer-
tain of Its stockholders, in behalf of himself
as trustee and all stockholders of the Barre
Company not made parties defendant The
complaint was demurred to for want of
equity and on several grounds specially as-
signed, and was adjudged insufficient and
dismissed.
nie Wetmore & Morae Granite Company,
hereinafter referred to as the Wetmore Com-
pany, is a corporation organized and existing
under the laws of this state. The Barre
Granite & Quarry Company, herein referred
to as the Barre Company, is a corporation
organized and doing business under the laws
of Maine and having its principal offices at
Portland in tliat state, and at Barre dty in
this state. It was Incorporated for the pur-
pose of carrying on the business of quarrying
granite in the town of Barre In this state.
The complaint alleges that the capital
stock of the defendant corporation Is (200,-
000, divided in 20,000 shares, of the par
value of $10 eadi ; that the plaintiff trustee
was, on the 7th day of August, 1916, and
ever since has been, the owner of 105 shares
of said sto<^; that ever since that date a
majority of the stock of the defendant CN-
poratlon has been owned and controlled by
defendants Donald Smith, Angus A. Smith,
U. Nelson Jackson, and S. Hollister Jackson.
The matters alleged as the ground for re-
lief are these: On the 10th day of August,
1916, a special meeting of the stockholders
of the defendant company was held in Port-
land pursuant to a notice which specified as
the business of the meeting the filling of
vacancies in the board of directors, and to
see what the corporation would do "to set-
tle its indebtedness, whether by sale of its
properties or otherwise; and If by sale, to
empower an agent to make projier transfers
end to wind up its affairs." At this meeting,
the four stockliolders above named were
elected directors to fill vacancies in the
board, which as now constituted consists of
five. The following resolution was then
offered:
"That it is the sense of this meeting that it
will be to the advantage of the stockholders to
sell all the assets of the corporation, settle the
outstanding bills and dissolTe the corporation;
the directors are therefore instructed to en-
deavor to find a customer or customers for the
property, and whenever they find a customer or
customers who are ready and willing to purchase
the whole or any part of said property at a
price which in their judgment is advantageous
to the stockholders, they are authorized to com-
plete said sale and as agents of said corporation
to execute and deliver • • • such instru-
ments of sale as may be necessary. • * • "
Mr. Deavltt, who was present as proxy
for the plaintiff and another stockholder
originally a party plaintiff, offered an am^id-
ment which provided that any sale should
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Vt)
OORRT r. BA.BXB ORANITE * QUARRY CO.
39
be at imbllo aoctioit. This amendinent waa
rejected by a vote of 6,601 diares to 106
shares, and the resolution was then adopted
by the same vote. The plaintiff's shares
were voted In favor of the amendment and
against the adoption of the reeolutlon.
Ueavltt orally objected to the voting on these
questions of the 6,599 shares owned by Don-
ald Smith and H. Kelson Jackson, on the
ground that they held the stock in behalf of
the K L. Smith Company, a corporation or-
ganized under the laws of Vermont, and
that it was a fraud on the other stockholders
to thus vote the stock, the E. L. Smith Com-
pany being engaged in a business similar to
that of the Barre Company, and there being
other quarry companies and Individuals who
were ready to purchase this property at
auction. The assets of the Barre Company,
other than book accounts and bills receivable,
consist of land in the town of Barre upon
which are located granite quarries, together
with buildings, machinery, and personal
property thereon, and on which the Barre
Company has been for the past 10 years, and
now is, engaged iu quarrying granite, having
no quarrying or other business in any other
place. Surrounding this land are lands own-
ed severally by the E. L. Smith Company,
the Wells-Lampson Quarry Comi>any, and
the Wetmore & Morse Granite Company, all
going Vermont corporations, engaged in the
business of quarrying granite, and eadi bay-
ing its principal office in this state. The
land of the Barre Company is particularly
valuable to these companies because of its
location. The complaint avers upon Infor-
mation and belief that the Individual defend-
ants, being four of the five directors of the
defendant company, have conspired together
to operate said corporation and control a
sale of its assets for their own personal ben-
efit to the detriment of the plaintiff and
other minority stockholders, and with Intent
to deprive the minority stockholders of their
property are arranging to turn over the as-
sets of the corporation to the E. L. Smith
Company, or some person for it, at a sum
much less than its true value. It Is alleged
that the plaintiff Corry is the president of
the Wetmore Company; and that if the real
and personal property of the defendant cor-
poration is put up at auction, he will start
the bidding on account of the Wetmore Com-
pany at $120,000; and that the property Is
worth $150,000 or more.
The defendants invoke the rule that a
court will not take Jurisdiction of the inter-
nal affairs of a foreign corporation; and con-
tend that the relief sought here would be an
interference with the internal affairs of the
defendant company. It is doubtless well set-
tled that the general rule is as above stated ;
but there Is some disagreement as to what
constitutes the affairs thus designated, and
courts have bad difficulty In formulating a
rule to serve as a test In all cases, as will
appear from an examination of the ded-
siona See North Star, etc., Co. v. Field,
64 Md. 151, 20 AtL 1089 ; Babcock ▼. Farwell,
245 IU. 14, 91 N. B. 683, 137 Am. St Bep.
284, 19 Ann. Gas. 74 ; State v. De Groat, 109
Minn. 168, 123 N. W. 417, 134 Am. St. Rep.
764; Condon v. Mutual Reserve Asso., 88
Md. 99, 42 AU. 044, 44 I* R. A. 149, 73 Am.
St Rep. 100; Madden v. Penn., etc.. Light
Co., 181 Pa. 617, 37 Atl. 817, 88 L. R. A. 638.
Except in cases involving the exercise of vls-
Itorial powers, the question presented by ap-
plications for relief in cases of this charac-
ter "is not strictly cme of Jurisdiction, but
rather of discretion in the exercise of Ju-
risdiction." The refusal to take Jurisdiction
is often put upon the ground of policy and
expediency; on a want of power to enforce
a decree rather than on a lack of Jurisdic-
tion to make it Babcock v. Farwell; Ed-
wards T. SchlUlnger, 245 111. 231, 01 N. EJ.
1M8, 33 I* R. A. (N. S.) 805, 137 Am. St Rep.
308; State v. No. Am. Land Co., 106 La. 621,
31 South. 172, 87 Am. St Rep. 309; Chicago
TlUe, etc., Co. ▼. Newman, 187 Fed. 673, 109
O. C. A. 263; Beard ▼. Beard, 66 Or. 612,
1.33 Pac. 797, 134 Pac. 1196; note, 19 Ann.
Cas. 84 ; note, Ann. Cas. 1913E, 457.
Irrespective of the question as to the prop-
er test to be applied in determining what are
the "internal affairs" of a corporation, It
may safely be said that when a corporation
is nonresident only In that it is the creation
of another state — ^Its officers, agents, stock-
holders, business and property all being with-
in the Jurisdiction of the court — policy and
expediency do not require the court to deny
relief in a proper case on the ground that the
Internal affairs of the corporation will be
affected. Where the relief sought is within
the general Jurisdiction of a court of chan-
cery, and all the parties necessary to the full
and proi)er aVlJustment of the rights involv-
ed are before the court, and where the relief
sought docs not require an exercise of the
visitorial power of the government, the court
should determine the controversy, Instead of
remitting suitors to a foreign Jurisdiction.
Babcock v. Farwell; Edwards v. SchlUlnger;
State V. No. Am. Land Ca; Wlnebur^ v.
U. S. Steam, etc., Co., 173 Mass. 60, 63 N. B.
145, 73 Am. St Rep. 261; Richardson v.
ainton, etc., Co., 181 Mass. 680, 64 N. E.
400; Andrews v. Miner's Corporotlon, 205
Moss. 123, 91 N. E. 122, 137 Am. St. Rep. 428;
Travis V. Knox Terpezone Co., 215 N. Y. 250,
109 N. E. 250, Ij. R. A. 1916A, 542, Ann. Gas.
1917 A, 387, 12 R. C. L. 33. It was decided
in Richardson ▼. Clinton, eta, Co., that a
stockholder's suit brought to obtain relief
from the fraudulent acts of the corporate
officers Is in the nature of a suit by the cor-
poration against wrongdoers, and may be
brought In the state where the corporate
officers and prtq^erty are located. See, also,
Wilson Am. Palace Car Ca, 64 N. J. Eq. 634,
54 AU. 415.
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101 ATIANTIC REPORTEB
(Vt.
[1] It Is dear that the general subject- corporatloD In which they are shardiolders.
matter of this complaint Is within the juris-
diction of the coart of chancery. The de-
fendant company, although a foreign corpo-
ration, was chartered expressly for the pur-
pose of doing business In this stata Four of
Its five directors. Its business and its proper-
ty, are within the territorial Jurisdiction of
the court. The corporation and these direc-
tors have been duly served and are before the
court There is no obstacle to prevent the
court's enforcement of its decree. In these
circumstances, the classification of the af-
fairs of the corporation which are involved
in this proceeding, whether internal or other-
wise, is of little or no conseqaence^ If the
case stated in the bill is one which entitles
the complainant to equitable relief, the relief
may pr(^)erly be given, even If it Involves an
interference with the internal affairs of the
corporation.
The charge as it stands, upon allegations
adequately made. Is that the Individual de-
fendants, who are a majority of the direc-
tors, and own or control a majority of the
stock, have conspired to so operate the coi^
poratlon as to effect a sale of its assets for
their own personal benefit and to the detri-
ment of the minority stockholders; and to
this end have passed a vote to dispose of the
property at private sale, and are arranging
to transfer It to the E. L. Smith C!ompany,
or some person for it, at a sum much less
than Its true value, l^ese, and other allega-
tions before stated, present the case of a cor-
poration whose property is so located as to
give It the advantage of competing offers,
which refuses to sell at public auction, and
proposes to sell to a certain party for an In-
adequate consideration. The letter set up
In the bill, in which the directors of the de-
fendant company Invite the Wetmore Ck)m-
pany to send them in writing Its best price
for the property, does not meet the situation.
[2] There are several matters stated in the
bill whldi stand solely on an allegation that
the complainant is Informed and believes.
These cannot be considered; for as to these
the demurrer admits nothing more than that
the complainant Is so informed and believes.
Bancroft v. VaU, 90 Vt — , 99 Atl. 1014. If
one of the allegations thus defectively insert-
ed was made good by an amendment adding
the words "and therefore avers," it would
appear that nearly all the stock of the E. U
Smith Company, the proposed transferee, is
owned by the four directors whom the reso-
lution of the defendant ccnnpany empowers
to make the sale. Upon the case as thus pre-
sented there could be no room to doubt The
directors of the defendant company would,
in effect be selling the property to them-
selves. The right to do this is denied to all
persons acting in a fiduciary capacity.
[3] The directors of a corporati<m cannot
represent it In transactions with another
if their Interest in the latter company might
InViucc them to favor it at the expense of the
comimny whose Interests have been Intrusted
to their care. 1 Mor. Prl. Corp. | 620.
The defect in the allegations pointed out
renders the bill demurrable, and so the de-
murrer was properly sustained.
Decree afflrmed, and cause remanded, with
leave to apply.
(M. Vt tO)
SANDERSON v. BOSTON & AT. B. B.
(Supreme Court of Vermont Caledonia. May
8, 1917.)
1. Mastteb and Skbvant «=»276(7)— iKJUBiiea
TO Servant — Safe Pi.aoe to Wobk— Evi-
dence.
Where a railroad brakeman testified that he
was swept from a side car ladder by an unusually
large car on the adjacent track, and that the
car was not far enough away from the one upon
which he was riding, it was unnecesBary that the
size of the car and its distance from the other be
determined by exact measurements.
[Ed. Note. — For other cases, see Master and
Servant Cent Dig. H 951, 950.]
2. Master and Servant «=>246(2)— iNJtmiES
to Servant— Duties or Servant.
A railroad brakeman, accustomed to cars of
a certain width, who, while riding on a side
ladder, saw that his own car was approaching
a car of unusual size and width, which would
probably strike bim, and endeavored to escape,
IS not responsible for the exercise of the coolest
judgment while in such dangerous situation.
[Ed. Note.— For other cases, see Master and
Servant Cent Dig. { 791.1
3. Evidence €=>20(2)— Judiciai, Notice.
That consestion in larRe cities requires that
many railroad tracks be laid close together, and
that it is therefore not negligence so to lay
them, is not a matter resting in judicial knowl-
edge.
[Ed. Note. — For other cases, see Evidence,
Cent Dig. { 24.]
4. Master AND Servant «=>] 12(1)— Duties 01
Masters— Safe Place to Work.
It is the dut7 of a railroad to jirovtde such
tracks and cars, and such supervision of their
use, as would afford Its servants a reasonably
safe place in which to work.
[Ed. Nota— For other casies, see Master and
Servant Cent Dig. §| 212, 213, 218.]
5. Master and Servant <S=»103(1)— Neoij-
OENCE OF Master— LiABrLiTT.
Negligence of a railroad, in making its
tracks unnecessarily hazardous, is chargeable to
it without inquiring as to the officers, agents, or
servants by whose instructions or conduct the
dangerous situation is created.
[Kd. Note.— For other cases, see Master and
Servant Cent Dig. | 175.]
8. Master and Servant «=32]3(3)— Injuries
TO Servant— Assumption of Risk,
A railroad brakeman does not assume the
risk of the extraordinary hazard of the pres-
ence of an unusually large car on the adjacent
track, which was so placed as to sweep any
person from the side ladder of another car, un-
less the risk was so obvious that the servant
ought to have known of it
[Ed. Note.— For other cases, see Master and
Servant Cent Dig. | 661.]
sVoT othtr ooies ■«• samt toplo and KBT-IIUMB£iB la all Kej-Numbaiea SIshU and ladazM
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SANDERSON y. BOSTON .Si M. B. B.
41
7. Mabtes a!»d Seitvant *=>150(8)— DurntB
OF Master— Wabnino.
If the master maintains, as to his places of
work, a risk of which the servants are excusably
ignorant, it is the master's duty to instruct and
caution them regarding the danger.
[Ed. Note.— For other cases, see Master and
Servant, Cent Dig. S 305.]
& Masteb and Servant e=»247(l)— Injubies
TO SEBVANT— CONTRIBCTOBY NEQLiaENCE.
Where a railroad permitted an unusually
large car to be hauled, and negligently allowed
it to stand, so that it would sweep any person
from the side ladder of a car on an adjacent
track, a brakcman'e contributory negligence
would not bar his recovery for injuries, since it
could not be said to be the sole cause of his in-
jury.
(Ed. Note.— For other cases, see Master and
Servant, Cent Dig. g 795.]
Exceptions from Caledonia County Court;
Zed S. Stanton, Judge.
Action by Percy D. Sanderson against the
Boston & Maine Railroad. Judgment for
plaintiff, and defendant excepts. Affirmed.
Argued before MUNSON, a J., and WAT-
SON, HASEI/rON, POWERS, and TAY-
LOR, JJ.
Porter, Witters & Harvey, of St Johns-
bury, for plaintiff. George B. Toung and
Walter H. Cleary, both of Newport, for de-
tendant.
MUNSON, 0. J. The plaintiff, a hraiceman
employed by the defendant, was injured In
the defoidant's freight yard at Lowell, Mass.,
while upon the upper rounds of the side
ladder of a moving freight car, by striding
against the corner of one of several freight
cars which were standing together on
another track. The suit is brought under the
federal Employers' Ldability Act (Act April
22, 1908, c. 149, 35 Stat 66 [U. S. Comp. St
1016, {{ 8657-8665]), and seeks to recover on
account of tlie negligence of the defendant
as alleged in a declaration and amendment
thereof containing 17 counts. The only ex-
ception argued is one taken to the overrul-
ing of the defendant's motion for a directed
verdict. The grounds of the motion as there-
in stated present the claims that there is no
evidence tending to show negligence on the
part of the defendant ; that on the evidence
presented the sole cause of the accident was
the plaintiff's negligence; that the risk was
one naturally incident to the plaintiff's em-
ployment and therefore an assumed risk;
that the risk was due to a permanent condi-
tion, of which the plaintiff had or ought to
have had knowledge, and was therefore as-
sumed by bis continuing in the work without
objection. The testimony of the plaintiff is
all the evidence we have regarding the loca-
tion of the tracks and the manner in which
be received his injury.
The plaintiff had worked for the defendant
as a brakeman over three years, first ir-
regularly as a spare hand, and afterwards
continuously on a regular extra train. His
runs during this time were on different lines,
some of which passed through the Lowell
yards, where there was frequently some
shifting of cars by the crew. At the time
of the accident, which occurred Just before
dark, the plaintiff was the flagman and had
the care of the lamps, and these he had
ready for lighting before going to the work
in which he was injured. He testified that
he was sometimes called upon to assist the
conductor, and that It was his duty when
his own work was done to help get the train
over the road. On this occasion he had been
helping the conductor check up some cars,
and had afterwards gone forward on the top
of the rear cars letting off some brakes. In
thus passing up the train he came to the car
on which he was injured, and started to go
down the side ladder to set a switch. As he
was beginning to descend he glanced ahead,
and saw, some 35 feet away, among the cars
standing on the next track, one which stood
out further than the rest, which he thought
would not dear him. He attempted to get
back upon the roof of the car, but was hit by
the projecting car and thrown to the ground.
The plaintiff testified that no one asked him
to set this switch, but that there was no one
else there to do it; that the middle man
sometimes set the switch; and that he
thought he was then on that section of the
train.
The plaintiff testified that he had occasion-
ally helped in making shifts in this yard, but
was not very familiar with the tracks; that
he had never known of a brakeman being
knocked off a side ladder by a car on another
track; that he had never been told or cau-
tioned regarding such a risk, and had never
known but what, between tracks, there was
room enough to ride on the ladder ; that he
had seen cars that were not set in to clear,
where a man riding on the side would get
hit; that the rule was to set cars In far
enough so that they would clear, and that he
always supposed that that was the practice,
but that he did not knbw as he had observed
enough to know what the practice was ; that
cars could not be left on a curve, but must
be on where the track was straight, and that
all that was necessary was to have them far
enough on to clear everything on the next
track ; that where he had testified about
clearing the cars he meant clearing the car
and a person on the side of it
In one place the plaintiff testified that he
'did not know whether the car he struck
stood on a cross-over or not ; but he stated
elsewhere that they had passed cars before
coming to this one, and that there were cars
beyond this, and these statements Indicate
that the car was not on a cross-over. De-
fendant comments upon the answers which
the plaintiff gave in stating what he under-
stood the requirement to be as regards ade-
•ssVer otiMr mmm m« saau toplo and KSY-NUMBBa in all Keor-Mumbervd DIgMta asd laduM
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42
101 ATLANTIC REPORTEB
(Vt
quate provision for the "clearing" of the
cars, and calla attention to the fact that it
was not until after plaintiff's counsel had had
an opportunity to confer with him that he
changed his testimony to include the clearing
of a person on the car, and Insists that this
change Is not sufficient to do away with the
effect of his previous testimony. But It was
manifestly for the Jury to say what the
plaintiff Intended by his earlier answers, and
what fact his evidence on this point as a
whole tended to establish.
[1] It is said there was no evidence as
to the exact distance between the tracks,
nor as to the distance necessary to make
them safe, and no evidence as to the size of
the car which struck the plaintiff, nor that
it was a large car. It was not necessary
that these matters should be determined by
measurement The plaintiff's description of
the car as he saw it was evidence tending
to show that it was a large car. Ttds car,
standing on a parallel track, struck the
plaintiff while he was on the side ladder of
a car. This was evidence tending to show
one of two things — either that the tracks
were too close to one another, or that the car
was too wide to be used where cars were
equipped with side ladders. It is said that
the plaintiff's injury resulted from a fixed
and unchanged condition which extended
throughout bis period of service. But this
condition, ordinarily safe, was made dan-
gerous by the introduction of a car not adapt-
ed to it It is argued that the sole cause
of the accident was the plaintiff's failure
to select for his descent a car which had an
end ladder. There is no evidence that any
of the cars had such a ladder. It is said
that the plaintiff was working as a volun-
teer. The plaintiff testified that after his
special work was done it was his duty to
assist in getting the train along; that he was
then doing the work on the rear end of the
train; and that he was going down to set a
switch to enable it to back out on another
track. l%iB was evidence tending to show
that his injury was received while In the
line of his duty.
[2] It is argued that the risk which the
plaintiff encountered was open and obvious,
and must have become known to him during
his employment The danger arose from
the unusual width of the car standing on
the parallel track, in connection with an
allowance of q^ace between the tracks suffl-
<dent only for cars of ordinary width. A
trainman riding on the top of a freight car
could hardly be expected to Judge accurately
of the sufficiency of such a space to answer
an unusual and unexpected requirement
The plaintiff prudently acted on the supposi-
tion that the tracks were not far enough
apart to permit him to clear a car of un-
usual width, and endeavored to avoid the
danger, as soon as be discovered it It is
said, however, that be saw and appreciated
the danger before he reached the car, and
that be could have seen and appreciated it
in time to avoid all risk, If he had looked
ahead carefully before starting to descend,
and that In undertaking to escape from the
danger he did not act with prudence and
promptnesa But it cannot be said as mat-
ter of law that be ought to have seen the
car sooner, and a servant who suddenly finds
himself In a dangerous situation, for whldi
he Is not rcsi)onsible, is not held to an exer-
cise of the coolest Judgment
[3] It is said that in large freight yards
in cities it Is absolutely essential that there
be many tracks close together, and that it
is not negligence to have them so arranged.
This statement, as applied to the situation
presented here, cannot be accepted as assert-
ing a fact resting in Judicial knowledge. The
language is evidently based on what was
said In the opinion In Randall v. B. & O. B.
R. Co., 109 U. S. 478, 8 Sup. Ct 322, 27 I*
Ed. 1003, where the plaintiff was struck
by an engine while standing in an unneces-
sarily exi)osed position to throw a ground
switch, which was required, instead of an
upright one, because of the nearness of the
tracks. The reference in this connection to
the necessity of a great number of tracks
and switches close to one another cannot
properly be applied to the sections of paral-
lel trades existing between the diverging and
approaching sections connected with the
switches. If there was a necessity for the
proximity of these tracks which oonld af-
ford a basis for the claim that the risk of
such a collision as occurred here was assum-
ed by the plaintiff, it was a fact for the
defendant to establish by evidence.
[4-1] The inquiry is whether the evidence
shows a case for the plaintiff under the fed-
eral Employers' Liability Act It was the
duty of the defendant to provide such tracks
and cars, and such supervision and regulation
of their use, as would afford the plaintiff a
reasonably safe place in which to do bis
worlc The evidence of the plaintiff discloses
a negligence in this respect which made his
place of work unnecessarily hazardous; and
this negligence is chargeable to the defendant,
without inquiring as to the officers, agents,
or servants by whose instructions or conduct
the dangerous situation was created. The
situation being due to the defendant's neg-
ligence, it was not an ordinary, but an ex-
traordinary, risk, and therefore a risk not as-
sumed by the plaintiff, unless he knew and
comprehended it, or unless it was so obvious
that he ought to have known and compre-
hended it If It was a risk of which the
plaintiff was excusably ignorant, it was the
duty of the defendant to instruct and cau-
tion him regarding it There was evidence
tending to show that the risk was not ob-
vious, and tbat the plaintiff had no knowl-
edge of It, and that no instruction or cau-
tion regarding it bad been given. If the
plaintiff himself was negligent In any par-
ticalar, this will not bar his recovery, for
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COUJNS T. CITT OF BABKB
43
It cannot be said that Ms negligence was the
sole canse of his Injury.
The claim that there was no evidence tend-
ing to support the charge of negligence as
presented in any single count is sufficiently
met by the views already expressed. See
generally Lynch t. Central Vt Ey. Co., 89
Vt 363, 95 Atl. 683; White v. Central Vt
By. Co., 87 Vt 330, 89 Atl. 618; Central Vt
Ky. Ca V. White. 238 U. S. 607, 35 Sup. Ct
865, 59 I.. Ed. 1433, Ann. Cas. 1916B, 252;
Carleton v. Fairbanks Co., 88 Vt 537, 93
Atl. 462; Morrlsette v. Canadian Pac. R.
R. Co., 74 Vt 232, 62 Atl 620; McDuffee v.
Boston & Maine Rd., 81 Vt 62, 68 Aa 124,
130 Am. St Rep. 1019.
Judgment affirmed.
(91 vt M)
COLLINS et aL V. CITY OF BARRB.
(Supreme Court of Vermont Washington.
May 1, 1917.)
1. Mttkicipai, Cobpobations «=»292(1), 293(4),
— Stbeets— Chanoe of Gbadk — Xotick.
Under P. S. 3878 providing that the road-
bed of a highway Bhall not be cut down or
raised more than 3 feet without notice having
been first given to the owners of the time and
place of a hearing in respect thereto and sec-
tion 3879, providing that on determination that
a roadbed snould be altered by lowering or rais-
ing the same more than three feet, sucn change
may be ordered and the damages, if any, to
the owners, be determined and awarded, street
oommisaioners were without jurisdiction to act
on the question of raising a roadbed more than
3 feet where the petition presented to them
asked merely for a resurvey and a relocation
of a portion of the street and the notice pub-
lished and given to abutting landowners of a
hearing on the petition did not show that any
question pertainmg to the raising of the road-
bed was to be considered and no person interest-
ed in the property was present on the hearing
of the petition or consented to the raising of
the roadbed or waived any rights relating
diereto.
[Ed. Note.— For other cases, see Municipal
Corporations, Cent Dig. g 776.]
2. Venoob Ann Pubchaseb «=>229(8)— Con-
STEUCTivB Notice — Change or Gbaoe of
Stbeet.
The record of proceedings of street commis-
Bioner& wherein they changed the grade of a
street by raising the roadbed more than 3 feet
was not constructive notice of such action to
a snbseqnent purchaser, where the commission-
ers were without jurisdiction in the matter.
[Sid. Note.— For other cases, see Vendw and
Purchaser, Cent Dig. | 488.]
3. MuNiciFAi. Cobpobations «=>404(1) —
Chanoe of Gbadb— Rioht to Reukf— Ade-
quate Remedy at Law.
Where the roadbed of a street is raised by
the street commissioners without legal authority,
it cannot be urged against a bill in equity for
relief that there was au adequate remedy at
law,
[Ed. Note.— For other cases, see Mnnidpal
Corporations, Cent Dig. { 969.]
4. Equity «=»219— Laches— Dbmubbkb.
The defense of laches cannot be raised by
demurrer to a bill in equity.
[Ed. Note.— For other cases, see Equity, Cent
Dig. H 496, 498-500.]
Appeal in Chancery, Washington County;
B. L. Waterman, Chancellor.
Snit by Kate L. Collins and others against
the City of Barra From a pro forma decree
dismissing the bill for want of equity, plain-
tiffs appeal. Reversed and remanded.
The bill In this case was, pro forma, held
insufficient on demurrer, and dismissed for
want of equity. The cause is here on plain-
tiffs' appeal. The facts stated below appear
from the allegations in the bill.
The premises in question, being a dwelling
house and lot situated on Warren street in
the city of Barre, were conveyed to the
plaintiff Kate U Collins on March 31, 1908,
by George F. Lackey and Nettie E. Lackey,
Yfy their deed of that date, recorded In the
land records of the dty of Barre. The plain-
tiff O. R. Collins is the husband of Kate L.
The plaintiff Capital Savings Bank & Tmst
Company holds a mortgage on the premises,
given by Kate L. and her husband, on May
17, 1909, which Is unpaid. At the time this
mortgage was given the premises were worth
$1,500 or $1,600. At the time of the afore-
mentioned conveyances, the grade of War-
ren street (which was in front of and the
only means of access to said premises) was
about on a level with the bottom of the un-
derpinning resting on the foundation sup-
porting the dwelling house. Since those
conveyances the dty has raised the roadbed
of Warren street opposite and In front of
these premises, so that the street as now
traveled and used is about on a level with
the eaves of the dwelling house, or about 12
feet above the street as it was traveled and
used at the time of the aforementioned con-
veyances. By reason of this change in the
grade of the street, the premises have been
rendered of little value, being worth less
than $500.
On the 18th day of July, 1908, when one
Cora B. Churchill and her husband, C, A.
Churchill, were the owners of the premises
in question, and residents of the city of
Barre, a. petition signed by certain landown-
ers on Warren street and addressed to the
board of street commissioners, dty of Barre.
was presented to the city coundl, requesting
a resurvey and a relocation of the south-
easterly end of Warren street for about
285 feet representing that the public good
and the convenience and necessity of in-
dividuals demanded that such resurvey and
relocatlcm should be made, and waiving all
claims for damages which the petitioners
might be, by law, entitled to receive. This
petition was referred by the dty council to
the board of street commissioners, with In-
structions to have said portions of Warren
street resnrveyed and relocated in accord-
ance with the petition if the same could be
done without expense to the dty. On July
24th the street commissioners Issued a notice,
stating that such a petition had been pre-
Cs»ror othM easM •«• nnM tralo and KST-NUllBBR In all Kar-Numberad Dtcwbi and Iad«M
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101 ATLAMl'IO REPORTER
(Vt
aented to them, "asking that the easterly
end of V\"arren street for about 200 feet
should be resurveyed and relocated," and
further stating that the dty council had, by
vote, decided "that said portions of said
street should be resurveyed and relocated
if In the Judgment of said commissioners
after a public hearing It should appear that
the pubUc good and convenience and neces-
sity demand that said resurvey and reloca-
tion should be made, and if said relocation
can be made without expense to the said
city." The notice then stated the time when,
and the place where, the street commission-
ers 'would bear "all those interested in said
resurvey and relocation of said portion of
Warren street," eta This notice was pub-
lished in the Barre Daily Times, and a type-
written copy thereof was served on the dty
attorney and on Mrs. C. A. C?harchlll and
Mrs. H. M. Dillingham personally, and on
O. A. Churchill, James Balgries, and F. N.
Braley, by leaving copy at residence. The
record of the report of the proceedings upon
the petition (set forth in the bill) states that
the commissioners met at the time and place
set forth in the notice, "and did hear all
those who were present, and who were In-
terested In the resurvey and relocation of
said portion of said street," and viewed the
premises; and "thereafter adjudged that
the public good and the convenience and ne-
cessity of Individuals did demand that said
street should be resurveyed and relocated ac-
cording to plans which accompany the re-
port and which have been prepared by" the
dty engineer, bearing date of December 2,
1903, "now on file in the office of said en-
gineer." The r^>ort then proceeds as fol-
lows:
"We have also established the grade of said
portion of said street as shown on plans which
accompany the report, and which bear dote of
December 8d and which were prepared by aaid
city engineer."
The report also states that the commission-
ers have awarded no one any damages, as
no one claimed damage, and that In their
"Judgment all received benefits equal to any
damage which they received by reason of
said resurvey and relocation and grade es-
tablished." This report was dated December
8, 1903, signed by the street commissioners,
and received for record in the city clerk's
office on the same day.
Neither Cora E. Churchill nor her hus-
band was present at the hearing ha'd pur-
suant to the aforementioned notice, and they
never had any notice from the dty council,
the street commissioners, or any other dty
official that any change In the grade of War-
ren street In front of their said premises
was contemplated or for consideration. Nei-
ther the Churchllls nor any other of the
plaintiffs' predecessors In title were ever
notified of any time when the dty council or
any other officials of the city would hear the
owner or owuen of the premises now owned
by the plaintUfs, npon the question of mak-
ing any alteration or diange in the grade of
Warren street In front of the same and in
front of the dwelling house thereon, and none
of them ever attended any hearing upon the
question of 'damages occasioned by reason of
any such alteration or change of grade. The
plaintiffs aver that the action of the dty
council and street commissioners. In so far
as It pertained to an alteration or change of
grade of Warren street In front of the dwel-
ling house mentioned, was without legal au-
thority or Justification, and was of no legal
effect so far as those premises are ctmcemed.
No change was made in the grade of that
street in front of the premises In question
after the proceedings upon the petition In
1908, until after the plaintiff Kate U Col-
lins had becmne the owner of said premises;
but slnoe that time the roadbed of that street
in front of the dwelling house on the plain-
tiffs' premises has been raised more than 3
feet by the dty, there being a continuous de-
positing of earth and stone there, covering a
period of 2 or 3 years, which had the effect
of raising the roadbed at that point about 12
feet. All this was done by the dty without
any notice to, or i>ermlsslon of, the plaintiffs,
and the latter have never been tendered any
damages caused thereby. The plaintiffs'
premises have been damaged by this alleged
unlawful action on the part of the dty to an
amount exceeding $1,000, the house thereon
being rendered uninhabitable; and the pres-
ent condition of Warren street in this respect
constitutes a continuing Injury to the plain-
tiffs, and an unwarranted and unlawful act
by the dty. The plaintiffs further aver that
the action of the city In raising the roadbed
In front of their premises in the way and
manner described was an invasion of their
constitutional rights, In that It deprived them
of their property without due process of law.
Argued before MUNSON, O. J., and WAT-
SON, HASELTON, POWE3BS, and tTAY-
LOR, JJ.
Frank J. Marshall, of Montpeller, for ap>
pellants. Edward H. Deavltt, of Montpeller,
for appellant Capital Savings Bank & Trust
Co. William Wishart, of Barre, for appdlee.
WATSON, J. [1] Section 3878 of the Pub-
lic Statutes provides:
"A selectman or road commissioner shall not
alter a highway, by cutting down or raising the
roadbed in front of a dwelling house or other
building standing upon the line of such high-
way, more than three feet, without first giving
notice to the owners thereof, of a time when
the selectmen will examine the premises, hear
them upon the question of making such altera-
tion and damages by reason of such alteration ;
at which time, the selectmen shall attend and
hear said owners, if they desire to be heard."
By section 3879, if it shall be determined
that the public good, or the necessity or con-
venience of individuals requires that such
roadbed be altered by lowering or ralsiug
the same more than 8 feet, such change may
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HOWE T. CENTRAL VERMONT RT. CO.
45
be ordered, and tbe damages, If an^, to the
owners sbaU be determined and awarded.
The Interpretation of the law of these sec-
tions was before this court in Fairbanks t«
Rockingham, 75 Vt 221, R4 AtL 186, and it
was there held that an alteration In the road-
bed In the sense of the statute begins when
the lowering or raising of the roadbed ex-
ceeds 3 feet; that a change in this respect
of not more than 3 feet Is regarded by the
statute as in the nature of ordinary repairs,
and not as an alteration of tbe highway^
So the case before us rests upon the allega-
tions showing the raising of the roadbed In
question to the extent of about 9 feet In ex-
cess of that considered as of ordinary re-
pairs. Such an alteration was not within the
scope of the petition to the street commis-
sioners, asking for a resurvey and a reloca-
tion of that portion of Warren street, nor
did the notice published and given to abut-
ting landowners of a bearing on the petition
show that any question pertaining to tbe rais-
ing of the roadbed was inrolved or to be con-
sidered. The matter of grade is not mention-
ed In the record of those proceedings until
that part of the report of the street com-
missioners which shows tbelr doings and
condusions reached. No one interested in the
property here In question was present at the
bearing had on the petition, nor consented
to raising the roadbed, nor waived any rights
relating thereto. On the question of making
such alteration, as well as on the question
ot damages, the owner of the property in
question was entitled to notice and an op-
portimlty to be heard. This was required by
tbe statute, and was essential to the Jurisdic-
tion of the street commissioners of the sub-
ject-matter of those questions. Without com-
pliance with the statute in this regard, the
commissioners were without Jurisdiction to
act on any question of raising the roadbed
more than 3 feet, and their actions in this
respect were void so far as tbe owners of the
property In question are concerned. La Far-
rier V. Hardy, 66 Vt. 200, 28 AtL 1030; Lynch
V. Rutland, 66 Vt 570, 29 Atl. 1015 ; Barber
T. Vinton. 82 Vt 327, 73 AtL 881 ; Wheeler v.
St Johnsbury, 87 Vt 46, 87 AtL 349.
[2] It is urged that at the time of tbe pur-
chase by Mrs. Collins of the premises In
question she knew, or should have known,
that the records of Warren street then on
file In tbe city clerk's office provided for the
grade that was subsequently established. No
notice of this kind in fact is shown; and
since the action of the street commissioners
In establishing a grade of more than 3 feet
raise of the roadbed was without Jurisdic-
tion of the subject-matter, as against the
owners of the property in question, the rec-
ord of the doings of the commissioners In
this respect was not constructive notice to
Mrs. Collins when she took the property by
purchase.
[S] It is further urged that the plaintiffs
have an adequate remedy at law, and there-
fore this bill In equity will not lie. But the
case of Wheeler v. St Johnsbury, cited above,
is full authority to the contrary. There, in
a case sufficiently like the one at bar as to
equity Jurisdiction to make It controlling
here, it was held that equity bad Jurisdic-
tion on two grounds, namely, for want of an
adequate remedy at law, and the prevention
of a multiplicity of suits.
[4] And, finally. It is said that the plain-
tiffs are guilty of laches even if they were
ever entitled to damages. But this defense
cannot be raised by demurrer. Drake v.
Wild, 65 Vt 611, 27 Atl. 427; Gleason v.
Carpenter, 74 Vt 899, 62 AU. 966; Wllder's
Ex'r v. Wilder, 82 Vt 123, 72 AtL 203.
Pro forma decree reversed, bill adjudged
sufficient and cause remanded. '
(n vt my
HOWE T. CENTRAL VERMONT RY. CO.
(Supreme Court of Vermont Windham. May
24, 1917.)
1. Railboads €=9314— Cbobsinq Accidents-
Condition or Right or Wat.
P. S. 4478, provides that every railroad cor-
poration in the state shall cause all trees, shrubs,
and bushes to be cat within tbe surveyed bound-
aries of their lots for a distance of 80 rods in
each direction from all public grade crossings.
Section 4479 provides that on neglect so to do,
after 60 days notice in writing, tlie selectmen
of tbe town shall cause the same to be cut each
year, and the railroad shall be liable for all
damages occasioned thereby. Held, that no ac-
tion for personal injuries can be maintained on
the basis of such failure to clear the right of
way in the absence of the written notice by the
selectmen.
[Ed. Note.— For other cases, see Railroads,
Cent. Dig. S 965.]
2. Railroads «=>348(4)— Cbobsino Accidents
— SlONALS.
In an action for personal injuries incurred
in a collision between a locomotive and the au-
tomobile in which plaintiff was riding at a rail-
road crossing, evidence held to sustain a finding
that the locomotive whistle was blown at a dis-
tance of SO rods from the crossing.
[Kd. Note.— For other cases, see Railroads,
Cent. Dig. if 1141, 1142.]
8. RArLKOADs ®=»350(7) — Raii-soad Cboss-
ING8— Signals — Question of Fact.
Under P. S. 4431, requiring signals at a
crossing, and section 4432, providing for a fine
for neglect to give required signals, the question
as to tbe company's liability for an injury caus-
ed by failure to give signals is for the jury upon
evidence as to whether the omission to give the
signal was reasonable and prudent.
[Ed. Note. — For other cases, see Railroads,
Cent Dig. { 1161.]
4. Neouokncb «=>93(3) — Ikputkd Nequ-
OENCE.
Where a child about 2% years old was in-
jured in an automobile driven by her grandpar-
ents, in a collision on a railroad crossing, the
contributory negligence of the grandparents
could not prevent a recovery if defendant rail-
road company was gnilty of negligence.
[Ed. Note.— For other cases, see Negligence,
Cent Dig. g 150.]
»For otlMF easM «m sain* toplo and KBT-NtniBER la all Kay-Numbertd DisMta and Index**
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101 ATLANTIC REPOBTBR
(Vt
5. NsoLiamroB 4s>83(S) — Iupttted Keou-
OBNCK.
Where a child taken for a ride by her par-
ents in an automobile was injured in a collision
at a railroad crossing, recovery could not be
denied on the ground that plaintiff was engaged
in a common enterprise with the others in the
car, and that their negligence was imputable
to her.
[EM. Note.— For other casee, see Negligence,
Cent Dig. { 160.]
£>xceptlons from Windham County CoTirt;
Wlllard W. Miles, Judge.
Action by Marion Howe against tbe Cen-
tral Vermont Railway Company. Verdict for
plaintiff, and defendant excepts. Reversed
and remanded.
Argued before MUNSON, C. J., and WAT-
SON, HASELffON, POWiKS, and TAY-
LOR, JJ.
(Herbert G. Barber and F. B. Barber, both
of Brattleboto, for plaintiff. J. W. Redmond,
of Newport, and Cliarles F. Black, of St Al-
bans, for defendant
WATSON, J. In tUs action the plaintiff
sues by her next friend to recover for Inju-
ries received by her on September 10, 1915,
at the defendant's grade crossing known as
"Parks Siding," In tbe town of Townshend,
this state, by reostm of the defendant's loco-
motive colliding with thel automobile tn
wlilch she was riding. The automobile came
upon the crossing from :the east, going
towards the west. Tbfi plaintiff was then
two years and seven months of age, and lived
with her parents In the town of Newfane,
Hbout two miles from tbe home of her grand-
oarents, Herbert Q. Howe and his wife, Nora
L. Howe, who lived In the town of Brookllne.
On the morning in question, pursuajit to an
arrangement previously made between the
grandfather and the plaintiff's parents, the
plaintiff went with her parents to the house
of her grandfather to go to the Londonderry
fair In the tatter's automobile. The party,
consisting of the grandfather, the grandmoth-
er, their son, Glen Howe, the plaintiff, her
father, and her mother, started In the auto-
mobile at 7 o'clock and 20 minutes for Lon-
donderry. The grandfather was the driver
of the car, and with him sat Glen. The
grandmother was seated on the extreme right
of the rear seat, holding the plaintiff In her
lap. The plaintiff's mother and her father sat
at tbe left of the grandmother. In the order
named. Seven miles from the place of start-
ing was the crossing In question, with whl<di
the plalntifTs grandfather and her father
were well acquainted, and had often been
over It In both directions In an automobile.
They both knew tbe time the morning train
from Londonderry was due at the crossing,
and understood it was due to leave West
Townshend, about 2 miles north of the cross-
ing, at 7:45 a. m. The accident occurred a
lltUe before 8 o'clock. The driver threw the
car Into low gear about opposite the crossing
signal post which was about 50 or 60 feet
from the last rail, and kept it in low gear
thereafter. While the car was In low gear.
It proceeded at a speed of not more than 4
to 6 miles an hour, with no attempt to In-
crease tbe speed before it was struck by the
locomotive. When the car was almost over
the crossing. It was struck by the west end
of the breast beam of the locomotive six
Inches from the rear of the body of the car,
throwing the occupants out, iitjuring the
plaintiff and wrecking the car.
The declaration states two grounds of neg-
ligence upon which the action Is founded: (1)
That the defendant did not give the required
warning signal when its train was approach-
ing tbe crossing In question either by ring-
ing the bell or sounding the whistle ; and (2)
that defendant allowed trees, shrubs, and
bushes to grow and remain within the bound-
aries of Its right of way within a distance of
80 rods In each direction from said crossing,
the plaintiffs view, as tbe automobile neared
tbe crossing, being thereby obstructed.
At the close of the evidence the defendant
moved for a directed verdict on several
grounds which may be condensed and ade-
quately stated for the purposes of the case,
as follows: (1) There la no evidence in the
ease tending to show any negligence on the
part of the defendant that was the proxi-
mate cause of the Injury ; (2) on all the evi-
dence, the proximate cause of the Injury
complained of was the negligence of the driv-
er of the automobile, or of the father of the
plaintiff, or of the mother of the plaintiff, or
of some or all of them; (3) on all the evi-
dence, the driver of the automobile and tbe
father of the plaintiff were jointly or sever-
ally guilty of contributory negligence, which
contributory negligence is Imputable to the
plaintiff; (4) on all tbe evidence, the occu-
pants of the automobile were engaged in a
common enterprise, and therefore the con-
tributory negligence of the driver Is Imputa-
ble to the plaintiff; and (5) there is no evi-
dence tending to show any actionable negli-
gence on the part of the defendant because of
the growth of shrubbery or trees upon its
right of way. To the overruling of the mo-
tion defendant excepted.
[1 ] The action, aa to the second ground of
negligence stated above, was treated by the
court and by counsel on both sides through-
out the trial below, as based upon section
4478 of the Public Statutes, which reads:
"A person or corporation operating a railroad
in this state shall cause all trees, shrubs and
bushes to be cut within the surveyed boundaries
of their lands, for a distance of eighty rods in
each direction from all public grade crossings."
By section 4479:
"If said person or corporation neglects or re-
fuses to remove the trees, shrubs and bushes^ as
required by the preceding section, after sixty
days' notice in writing, given by the selectmen
of the town in which such trees, shrubs and
bushes are located, and cause the same to be cut
«=9>Foi otber easM f luna topic and KBY-NUMBER In all Ker-NumtMred DlswU and. Udexaa
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HOWE T. OBNTRAIi VERMONT BT. CO.
47
in the month of October each year thereafter,
said person or corporation shall be liable for all
damages occasioned thereby."
The law of these two sections was einacted
in sections 1 and 2 of No. 93, Acts of 1904,
and related to the same subject-matter. It Is
a prerequisite to liability under it that no-
tice be given as specified In section 4479.
The evidence did not show, and it Is not
claimed, that any such notice was ever given
to the defendant Therefore the action can-
not be maintained on the basia of such statu-
tory negligence. Although this Is not deter-
minative of the motion for a directed verdict,
there being questions to be considered there-
on In connection with the other alleged
ground of defendant's negligence, yet it fol-
lows that the exceptions to the submission to
the Jury of the question of defendant's lia-
bility for failure to keep the shrubbery cut
within the limits of its roadway must be sus-
tailed, as must also the exception to the ren-
dering of Judgment against the defendant on
the special finding of the Jury that the shrub-
bery in said roadway was tlie proximate
cause of the injnry.
[2] There was the negative testimony of
several of plaintiff's witnesses to the effect
that they did not hear any beli ring nor
whistle blow before the accident; while the
testimony of other witnesses was that they
heard the whistle blow baclc some distance
from the crossing in question, which, fairly
construed, may be said to warrant a finding
ttiat the whistle was blown in the vicinity
of 80 rods bade from the crossing. There
was no evidence that the bell was rung at
that place or between there and the crossing.
For the: purposes of the case on the motion
for a verdict, we consider the evidence as
showing that the bell was not rung at all
when the train was approaching the crossing,
and that the whistle was blown 80 rods from
the crossing, but not afterwards and before
the accident.
[3] It is said on the part of the defendant
that thus blowing the whistle was a compli-
ance with the provisicms of section 4431 of
the Public Statutes, requiring signals when a
train Is approaching a public highway cross-
ing at grade; wliile the plaintlfT contends
that tills Is not so, for that to constitute a
compliance with the statute by blowing the
whistle the blowing must begin back at least
80 rods from the place <rf the crossing and
continue until the crossing has been passed.
The statute reads:
"A bcU • • • shall be placed on each lo-
comotive engine, and be rung at the distance of
at least eighty rods from the place where the
railroad crosses a road or street at grade, and
be kept ringing until it has crossed such road
or street; or the steam whistle may be blown
instead of ringing such bell."
The next section (4432) provides that, if
a person or corporation owning or operating
a railroad unreasonably neglects or refuses
to comply with the foregoing provisions, it
shall be fined, etc. The law of these sections
was first enacted In 1849, and has hitherto
remained In force without any change in
words or substance material to be noticed
here. Its construction came before this court
as early as 1864, dn an action on the case
for damages to horses and harnesses on a
public highway railroad crossing. It was
there held, in effect, that the two sections
should be construed together; that by the
first section it is required that the bell shall
be rung or the steam whistle blown at least
80 rods from the place of the crossing on
the same grade, and that 'the ringing or
blowing shall be continued until the engine
shall have passed such crosaing" ; that,
though In that section the requirement is af-
firmative and unconditional, yet by the law
of the second section, if any railroad cor-
I)oratlon shall unreasonably neglect or re-
fuse to comply with such requisitions, they
shall forfeit, for every such neglect or re-
fusal, a sum not exceeding, etc.; that the
fact that the corporation cannot be subject-
ed to the penalty unless such neglect or re-
fusal be shown to have been unreasonable
clearly Implies that in the contemplation of
the law there may be cases in which such
neglect or refusal would be reasonable, and,
if reasonable, the penalty would not be in-
curred; that the provision of the first sec-
tion was designed to operate more strin-
gently than the common law, "and while it
was not designed to subject the corporation
to dvU liability, entirely regardless of the
circumstances and occasion of the omission
to ring the bell or blow the whistle in all
cases of injury caused by such omission, still
it was designed to require, as the general
rule, that the bell should be rung or the
whistle blown in all cases, and, in case of
injury by reason of an omission so to do,
to Impose the burden on the corporation of
showing that such omlstdon, la the exercise
of a sound Judgment by the engineer, in
view of the condition of things as they ex-
isted at the time, was reasonable and pru-
dent; when therefore. In a case like the
present, the plaintiff should show that the
alleged injury was caused by such omission,
it would not be necessary to his right of re-
covery that he should take the burden of
showing affirmatively that such omission was
unreasonable and Imprudent, but it would
rest upon the defendant, as a matter of de-
fense, to show that it was reasonable and
prudent ;" and that "the liability of the cor-
poration should be left to stand upon this,
viz., whether, in the Judgment of the Jury,
upon all the evidence, the omission In the
given case, in view of the actual condition
of things, was reasonable and prudent."
Wakefield v. Conn. & Pass. B. B. B. Co., 37
Vt 330, 86 Am. Dec. 711. The holdings in
that case have stood as the law of the sub-
ject for more than half a century without
criticism; and upon a careful examination
of the statute. In view of the arguments of
counsel In the present case^ we see no rea-
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101 ATLANTIC REPORTEE
(Vt
son for doubting the aonndness of the oon-
clusions there reached, or of their control-
ling effect in the matter before vs. The
meaning of this statute being by Judicial
construction thus made clear in the case
noticed, no subsequent practice inconsistent
with that meaning can have any ^ect.
United States v. Alger, 152 U. S. 384, 14
Sup. Ct 635, 38 I* Ed. 488; Fairbanks v.
United States, 181 U. S. 283, 21 Sup. Ct
e48, 45 L. Ed. 862. The above holding Is de-
terminative of the fact that the case, on the
question of defendant's negligence In fall-
ing to give the required warning signal
nrhen the train was approaching the cross-
ing at the time in question, was for the Ju-
ry; and therefrom It is evident that the
plaintiff's exception to the part of the charge
pertaining to the blowing of the whistle, on
the ground that the Jury should have been
instructed that, if the bell was not rung, the
whistle should have been blown at Intervals
and k^t blowing imfail the crossing was
passed, was well taken. It is not claimed
that there was any evidence affirmatively
tending to show that the omission so to do
In the existing circumstances was reasonable
and prudent, a question on which, as liefore
seen, the burden was with the defendant
Had the Jury been properly instructed In
this respect, they utight not have fonnd, as
they did specially, that the defendant's neg-
lect to blow the whistle or ring the bell was
not proximate cause of the plaintiff's in-
jury.
[4] The question of contributory negligence
is yet to be considered on the motion for a
verdict, if it Is in the case. The plaintiff
vres of such tender years at the time of her
injury as to be incapable of exercising care.
But we assume, as counsel for defendant
argue, that her grandfather (driver of the
automobile) and her father were guilty of
negligence contributing to the accident. The
question then is: Is their negligence im-
putable to the plaintiff? In Robinson t.
Cone, 22 Vt 213, 54 Am. Dec. 67, the plain-
tiff, a child three years and nine months
old, was severely injured when sliding on
a sled in a public highway by being caught
by one of the runners of defendant's loaded
sleigh drawn by two horses. The plaintiff
at the time was attending school. The ques-
tion of contributory negligence by the plain-
tiff was raised in defense; also the questlcm
of such negligence by the plaintiff's parents
in allowing him to attend school at the age
and in the manner they did. The court said
It was "satisfied that, although a diild, or
idiot or lunatic, may, to some extent have
escaped into the highway through the fault
or negligence of his keeper, and so be im-
properly there, yet if he is hurt l>y the neg-
ligence of the defendant he is not preduded
from his redress." In Ploof v. Burlington
Traction Co., 70 Vt 609. 41 Atl. 1017, 43 L.
R. A. 109, the court said the case of Robin-
son V. Cone had become a leading case
against the doctrine of imputed negligence,
and Its doctrine was quite generally follow-
ed by courts of last resort and Indorsed by
eminent writers, and that this court was
content to abide by the decision of that case
on the doctrine of imputed negligence. The
foregoing is the established doctrine in this
state, and Is known in some other Jurisdic-
tions as the "Vermont rule" (distinguishing
It from the contrary doctrine, known as the
"New York rule"), and It Is supported by
the great weight of authority.
[E] Nor did the fact that the p««(His with
whom the plaintiff was riding in the automo-
bile were engaged in a common enterprise,
make any difference in this respect. The
theory of the law which makes each of per-
sons engaged in a common purpose at the
time of an injury suffered by him, by reason
of the neglect of some outside person, re-
sponsible for the negligence of any of his as-
sociates, contributing to the injury, Is that
each was the agent of the others, and there-
fore that each was responsible for the con-
sequences resulting from the acts of the
others, or any of them. Boyden v. Fitch-
burg Railroad Co., 72 Vt 89, 47 Atl. 409;
Wentworth v. Waterbury, 00 Vt 60, 96 Atl.
334. Both in law and in fact the plaintiff
was Incapable of entering into any such com-
mon enterprise. She was in the automolille
because her father, who by law was the
custodian of her person, took her with him.
Yet his status as such custodian was not as
agent of the diild, but as ag«it of the law;
and he oonld not surrender or impair any
property right that was vested In the child,
nor impose any legal burden upon It . Fergu-
son V. Phoenix Mut Ufe Ins. Co., 84 Vt
350, 79 Atl. 997, 36 L. R. A. (N. S.) 844 ; New-
man V. Phllllpsburgh Horse Car R. Co., 62
N. J. lAW, 446, 19 Atl. 1102, 8 I* R. A. 842.
It follows that the relation of common pur-
pose, as such, of the persons with whom the
plaintiff WHS riding at the time of her in-
jury does not affect her rights against the
defendant. This being so, the question of
the ImpntablUty of the oontrtbutory negli-
gence of the driver or of the plaintiff's fa-
ther is In any aspect of the case reduced to
the simple form in which it haa been consid-
ered and ruled above.
The question of contributory negligence
therefore Is not in the case, and the only
question is whether the defendant exercised
the degree of care required by law. The mo-
tion for a directed verdict was properly over-
ruled. This holding shows defendant's excep-
tions to the failure of the court to charge
as requested touching the question of con-
tributory negligence to be without, merit
Since substantial exceptions of both par-
ties are sustained, neither party should be
allowed to recover costs in this court
Judgment reversed, and cause remanded,
without costs to either party In this court
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N. J^ NEW YORK, S. A W. B. OO. y. BOABD OP PUBLIC TTTILITT COM'RS
49
(M N. J. lAW, «90)
IRESON y. OUNNINOHAM. (Ma 2.)
(Oourt of Errors and Appeals of New Jersey.
May 8, 1917.)
1. Mdnioipai. Cobpobationb «=705(4)— Au-
tomobile Accident — Driving withoxjt
IjIGHT.
Where the driver of a wagon waa without a
light on the wagon more than half an hour after
■unset, in violation of statute, he could recover
for injuries received in collision with an auto-
mobile if the driver of the car could have seen
him, since if the automobile driver could have
seen him, his unlawful act in driving without
a light did not contribute to the accident
[Ed. Note.— For other cases, see Municipal
Corporations, Cent Dig. H 1516, 1516.]
2. Municipal Cobpobationb <s=»706(7)— Au-
tomobile Accident— Contbibutobt Neou-
osNCE— Question fob Jubt.
In an action against an automobile driver
for injuries to the driver of a horse and wagon,
where the facts from which contributory neg-
ligence was to be deduced were in dispute, it was
a jury question.
[Ed. Note.— For other cases, see SAinicipal
Corporati(ui8, Cent Dig. { 1518.]
Appeal from Circuit Court, Cumberland
County.
Suit by 0«orge Ireeon against Oeorge Cun-
ningham. From a Judgment for plaintiff,
defendant appeals. Affirmed.
Henry S. Alvord, of Ylneland, for appellant
8. Webster Hurd and Royal P. Toller, both
of Ylneland, for appellee.
PER CnRIAM. Plaintiff brought suit to
recover damages for injuries sustained by
reason of a head-on collision, in a public
highway, of an automobile driven by the de-
fendant and a horse and wagon driven by the
plaintiff. Hie plaintiff was driving his vebi-
de without a light, and the defendant was
driving his automobile with lights, the time
being 7 p. m. of March 19, 1914, on which
day the sun set at 6:11 p. m. The statute
required plaintiff to carry a ll^t on his
wagon from one-half hour after sunset The
Jury returned a verdict for the plaintiff. The
Judgment entered on the verdict has been
brought to this court by appeal. The ques-
tions presented by the grounds of appeal are
the propriety of a denial of mbtlons to non-
suit and to direct a verdict for defendant,
and also objections to the diarge of the trial
Judge In certain respects.
Testimony offered by the plaintiff estab-
lished that the collision occurred in a road-
way wide enough for two vehicles to pass,
and that the plaintiff was as far over on
the right-hand side as he could get at the
time he was run into ; that as the automobile
approached it wobbled or zigzagged In the
road, and plaintiff shouted to warn the driver
of his presmee before the horse was struck ;
that the time was one-of sufficient light to see
a wagon or a machine several hundred feet
away; that the horse of the plaintiff had
to be killed as a result of the injury ; that
the wagon was somewhat broken; and that
plaintiff suffered injury.
The testimony justified the Jury in believ-
ing that the defendant, in violation of the law
of the road, failed to turn to the right In or-
der to allow the plaintiff to pass him when
they met in the highway. And the Jury was
Justified in believing it was light enough for
the defendant to see the plaintiff, and that
It was his duty to turn out for him; and if,
on the contrary, it was too dark for him to
see, they could find that It was hla duty to
be on the right-band side of the road in the
direction In which he was going, so as not to
take the chance of running into any one ap-
proaching him from the opposite direction.
[1] Although the plaintiff was driving
without a Ugbt on his wagon In violation
of the statute, that fact does not operate to
prevent his recovery If the defendant could
see him, and, if he could, the unlawful act
of the plaintiff In no way contributed to the
accident. The testimoQy was certainly sus-
ceptible of the construction that the defend-
ant either saw, or by the exercise of due care
could have seen, the plaintiff.
[2] The defendant urged before the trial
court, and argues here, that the plaintiff was
guilty of contributory negligence. If con-
tributory negligence was present in the case,
the tacts from which it was to be deduced
were in dispute, and It was therefore a Jiury,
and not a court, question. The defendant ex-
cepted to the charge of the court In several
respects, but argues them very meagerly and
without citation of any authority. We have
examined them, and find they are entirely
without substance.
The judgment will be affirmed, with costs.
(W N. J. Law. 431)
NEW XORK, S. & W. R. CO. r. BOARD OF
PUBLIC UTILITZ COM'RS et aL
(Supreme Court of New Jersey. June 6, 1917.)
1. Dedication «=»19(1) — Promise to Dedi-
cate.
A dedication of a street is not shown by a
map showing such a street and containing a
declaration by the owner's husband that, if he
ever opens the street, the opening will OMiform
to the map, because it is more promise to dedi-
cate, not made by tlie owner.
[Sid. Note.— For other cases, see Dedication,
Cent Dig. i 37.]
2. Public Seevioe CoMMissioNa «=>6— Pub-
uo Utilitt Commissionebs— Jubisdiotion
OF— Powers.
The board of public utility commissioners
has no jurisdiction to determine whether the lo-
cation of buildings along the lines of a street
as actually used and the practical use of a street
ns such justify an inference that continued use
has accorded it the status of a public highway.
3. Railroads 9=394(2)— Grade Crossings —
Public Convenienoe.
Under tho statute, an order of the board of
public utility commissioners, compelling a rail-
road to construct a crossing at grade over its
right of way, is erroneous, where it would re-
sult in increasing the hazards of the public in
esifoT otber eases ■•• same topte and KBT-NUUBBR In all Key-Numberad Dignu and ladezM
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101 ATLANTIC REPORTBR
(N.J.
the use of tlie streets In question, and its con'
vonience can be served b7 slightly changing the
lines of the streets.
[Ed. Note.— For other cases, see RaUroada,
Cent Dig. § 266%.]
Certiomrl by the New York, Suaqueliaana
& Western Railroad Company against the
Board of Public TJtility Commissioners and
the City of Paterson to review an order of
the Commissioners relative to a gi^de cross-
ing. Order vacated.
Argued l<'ebruary term, 1917, before
SWAYZE, MINTURN, and EAUSCH, JJ.
Coliins & Corbln, of Jersey City, for pros-
ecutor. Lw Edward Hermann, of Jersey
City, for commissioners. Randal B. Lewis,
of Paterson, for city of Paterson.
MINTURN, J. The certiorari In this case
removes an order made by the board of pub-
lic utility commissioners, granting permis-
sion to the city of Paterson to construct a
crossing at grade over the railroad right of
way at Seventeenth avenue and Twenty-
Fourth street, where the two streets come to-
gether. A crossing is arranged for Seven-
teenth avenue, but none Is arranged for
East Twenty-Fourth street, and the proposal
is to compel such construction by the rail-
road.
[1] The railroad contests the right of
the city to require it, on the ground that the
street is not in fact a public highway. It
was never laid out as such, and the city r&-
lies upon a map made in 1SC8 to evidence the
dedication. We think the map does not
show a dedication of the locus in quo. It
contains a declaration by the husband of the
then owner that, If he ever opened the
streets, the opening would conform to the
map. This lacks the essentials of a legal
dedication: First, l>ecause It is not made by
the owner of the locus; and, secondly, be-
cause at most It is but a promise or agree-
ment to dedicate in future.
[2] The buildings along the Unes of the
street, as actually used, and the actual prac-
tical use of the street as a dirt or cinder
road, seems to be shown; and that fact
' would Justify an Inference that continued
use has accorded to it the status of a public
highway. That question, however, is not be-
fore us for decision, nor was it a subject for
the determination of the public utility com-
missioners, under the legislation prescribing
th^r powers.
[3] The fact Is quite apparent that in
opening up these two streets, as proposed, so
that the railroad may cross them diagonally,
A crossing involving serious danger to the
public will be thereby created. The commis-
sioners seem to have dealt with the situa-
tion as though it presented a question of
the construction of appurtenances to the
railroad. Tlie declared object of the statute
is to protect the public from the danger Inci-
dent to grade crossings, and the Inquiry be-
fore the commissioners was whether such a
crossing as that in question would result In
increasing the danger and hazards of the
public in the use of it, and, if it would In-
crease the public dangers, then whether, in
view of the situation thus presented, it was
stiU necessary and desirable as a public
crossing; for manifestly a public crossing at
grade might be highly desirable as a public
convenience, but If Its existence and contin-
ued use might serve in actual jH-actlce as a
standing menace to the lives of the commu-
nity, it would not comport with a proper ex-
ercise of wisdom, nor accord with the de-
clared legislative policy and intent, to au-
thorize or compel such construction.
These Important considerations seem not
to have been discussed or determined by the
board ; and, as we have intimated, they pre-
sent the distinctive and vital Inquiry in the
case. We think it was made quite clear by
the railroad that the difficulty presented here
could be obviated by a slight change in the
lines of the streets, at the comer where Sev-
enteenth avenue and Twenty-Fourth street in-
tersect; and if such a change In existing
conditions can be made to practically serve
the public use and convenience, the adoptiffli
of such a plan would seem to present a sat-
isfactory substitute, and a reasonable solu-
tion of the situation, rather than a proposed
construction which is menaced with the very
difficulties and dangers which it is the avow-
ed purpose of tills legislation to eliminate^
We think the testimony before the board
was not suffldMit, nor of a <^racter, to war-
rant or reasonably supjitort the CDnclusl<m
reached by the board, and for that reason
we have ccmduded tiiat the permission grant-
ed should be vacated. Erie R. R. Ca v.
Board of Utility Commlssionens, dS AtL 13;
Potter V. Board of Public Utility Com'rs,
08 AtL 30.
(to N. J. Law, va)
NELL et al r. GODSTRBY. (No. 46.)
(Court of Errors and Appeals of New Jereej.
. May 8, 1917.)
1. Caksiers «=»320(S1) — Oaskiaok of Pas-
SEMOBBS— InJITKIES— JUBT CASE.
In an action by a tazicab passenger for in-
juries, where there was evidence tending to
show that the taxicab belonged to defendant,
and that the chauffeur was his agent and negli-
gent, the case was for the jury, though it was
claimed by defendant that the chauffeur exceed-
ed his authority in doing what he did.
2. Appbai, and Erkob Q=»119(>(1)— Dibxction
OF Vbbdict at Second Tbial.
Where new trial is granted because the
verdict is against the weight of the evidence,
the direction of verdict at second trial on the
same or similar evidence, where a substantial
conflict of testimony is present, is not justified ;
conflicting testimony being always for the jury.
[Ed. Note.— For other cases, see Appeal and
Error, Cent. Dig. < 4661.]
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MEIiL ▼. aODBTIUST
61
Appeal from Clicalt Oonrt, Bergen Ooimty.
Action by Harriet Nell and another a^lnst
WlUlam O. Godstrey. From, a Judgment for
defendant, plaintiffs appeal. Reversed, and
venire de novo awarded.
Nathaniel Kent, of Paterson, and Gilbert,
Collins, of Jersey City, for appellants. Wen-
dell J. Wright, of Hackensack, for appellee.
PER OURIAH. This case presents an ap-
peal from a Judgment entered in the Bergen
county drcnit court, founded upon a verdict
for the defendant directed by the trial Jndge,
to which direction exception was duly taken.
The action was brought by Harriet Nell
and her husband, John J. Nell, for Injuries al-
leged to have been sustained by her while a
pnssenger In a taxlcab said to have been own-
ed by the defendant and operated and con-
trolled by his agent.
The facts relating to the accident, which
was the subject-matter of the suit, were sub-
stantially as follows: The plaintiff Mrs. Har-
riet Nell on Saturday, January 16, 1916, and
her sister. Miss Josephine McGlntee went
from Bogota, N. J., where Mrs. Nell lived, to
Hackensack and thence to New Tork, for
the purpose of doing some shopping and visit-
ing the family of one of her husband's em-
ployes. They left the home of the persons
■whom they were visiting at about 1:30 Sun-
day morning to catch the ferry going to Edge-
water, N. J. They missed the 2 o'clock boat,
and were compelled to take the next boat at
2.45 a. m. When they arrived in Edgewater
they found that there would be no car leav-
ing until S o'clock. (Mrs. Nell telephoned to
her husband, and he Instructed her to hire a
taxicab to take them home. She then asked
an officer to get her a taxicab, and he said
he would. Within 10 or IS minutes there-
after Patrick Dowdell came with a taxicab
from the Edgewater Garage, and agreed to
take them to Bogota for $3. The plaintiff
0nd her sister then entered the taxicab and
were driven along the river edge for about 16
minutes until they came to a hill called the
Ft. Lee Hill. When near the toQ of the hiU
tbe car stalled and commenced coasting back-
wards whereupon the chaofleur turned his
wheel to make the car turn sideways towards
tbe curb, and thus backed the car up against
the south curb. After stopping the car he
turned the fnmt wheels facing down hill, so
as to aid the gasoline, whidi was low, to run
into the carbureter, and started to crank the
machine. This he continued dcdng for about
10 or 12 minntes when Mrs. Nell opened the
window and asked him what the trouble was,
and he said that the gasoline had run low,
and that the radiator was hot. While trying
to crank the car it suddenly started down
bill with no one at tbe wheel, the cdiauffeur
trying to bold it back with his bands around
tbe radiator. As it rapidly increased its
speed, the chauffeur called to the plaintiff
and her sister to Jump for their lives. After
tbe car had gone some considerable distance,
the plaintiff Jumped. Her head struck on
the street and she was rendered unconscious,
receiving more or less serious injuries.
At the conclusion of the whole case a mo-
tlon was made to direct a verdict for the de-
fendant upon several grounds, namely, that
no negligence had been proved on the part
of tbe defendant ; that the negligence sped-
fled In the complaint had not been proved;
that if any neglig^ice at all appeared in tbe
case, it was not that of the defendant ; that
Dowdell was not the agent of the defendant;
that under the evidence, as it apx>eared, Dow-
dell was acting as the agent of tbe plaintiff v
and that the defendant, Godstrey, was not
the owner or operator of the car, or In any
circumstances, under the evidence, liable for
the alleged accident. Whereupon the court
made the following observation:
"The point tbat has been troubling me bH
through the case is the question as to whether
this driver has been acting within the scope of
bis authority in such a manner as to bind the
defendant. That is tbe situation as I find it
now. The burden of proof is upon the plaintiff
to show by a fair preponderance of tbe evidence
that the driver was the agent of the defendant,
and, at the same time, the act performed was
within the scope of his authority. That burden
is upon the plaintiff to prove. That is without
talcing into consideration the other questions in-
volved, of ownership or negligence. If that is
disposed of in a manner negative to the plain-
tiff's case, all the others would fall with it'*
Then, after argument by counsel for plain-
tiff, the court said, "The motion to direct a
verdict will be granted," not putting the de-
cision upon any particular ground. The
plaintiff noted an exception.
[1] We think it unnecessary to review the
testimony. It is sufficient to say that we are
of opinion that the case should have been
submitted to the jury, as there was evidence
tending to show that the taxicab belonged to
the defendant, that the chauffeur, Dowdell,.
was his agent and that he, the chauffeur, was
negligent. It was claimed on behalf of the
defendant that Dowdell exceeded his author-
ity as an employe. If he did, if he violated
his instructions, bis authority and instruc-
tions were not known to the plaintiff. He
was apparently the agent of the defendant
with authority to drive his taxicab tor hire.
These observations dispose of the grounds
upon which the motion for the direction of a
verdict for the defendant was rested, and the
point suggested by the trial Judge.
It ought, i)erhaps, to be stated that in the
argument on the motion to direct a verdict
counsel for the plaintiff (citing, but not quot-
ing literally from, Bennett v. Busch, 75 N. J.
Law, 240, 67 Atl. 188) said:
"If there is any evidence in the case niwn
any proposition upon which reasonable men
might diifer, or any honest man could have a
difference of opinion therefrom, then the ele-
ment must be submitted to the jury."
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101 ATIAMTIO KEPOR'TER
(M.J.
To which the judge replied:
"I don't think so. If that was the ease, why,
then, we have nothing in the rale that • verdict
is against the weight of the evidence."
[2] It Is obvious that the trial Judge failed
to perceive the distinction between court
questions and jury questions arising from
evidence. In cases where a new trial Is
granted because the verdict is against the
weight of the evidence, the direction of a
verdict at a second trial on the same or sim-
ilar evidence, where a substantial conflict of
testimony is present, is not Justified. Con-
flicting testimony is always for the jury.
Dickinson v. Erie B. R. Ck>., 85 N. J. Law, 586,
90 AtL 305. See, also, Tilt<Mi v. Penna. R.
R. Co., 86 N. J. Law, 709, 94 Atl. 804 ; Keeney
V. I>., L. & W. R. R. Co., 87 N. J. Law, 505, 94
AU. 604 ; TonselUto t. N. Y. 0. & H. R. R R,
Co., 87 N. J. Lew, 651, »4 Atl. 804; McCoi^
mack r. WlUlams, 88 N. J. Law, 170, 05 Atl.
978.
The judgment under review will be revers-
ed to the end that a venire de novo may be
awarded.
<87 N. J. Elq. 807)
In re ADRIAN et aL (So. 867S.)
(Prerogative Court of New Jersey. Mardi 21,
1917.)
W^LLB «=»684(3) — CONSTB0CTION — RbSIOUX
— Income fbom Tbust LBaAcns.
Testator's will made numerous pecuniary re-
quests, some outright, and others to his execu-
tors in trust for various henefidarios. The rest,
residue, and remainder of his estate he gave to
the executors, in trust to pay the income to his
widow during her lifetime, and upon her do-
cease to pay the income to his children until a
given time, when the principal was to he dis-
tributed. Four of the trust legacies, aggregat-
ing $395,000, were for the benefit of nondepend-
ents, and consequently not payable for a year
after the death of testator. The income of the
estate for the year upon a sum equal to these
trust funds amounted to over $16,000. Held,
that the income passed into the residue as prin-
cipal, and not as income.
[Ed. Note. — For other cases, see Wills, Cent.
Dig. SS 1616-1618, 1020.]
Appeal from Orphans' Court, Somerset
County.
In Uie matter of the appeal from the first
Intermediate account of Jennie R Adrian
and others, surviving trustees under the will
of William Rowland, deceased. Decree af-
firmed.
August C Streitwolf, of New Brunswick,
for appellant Hugh K. Gaston, of Somer-
ville, and John R. Uardlu, of Newark, for
respondents.
BACHES, Vice Ordinary. A brief state-
ment will develop the single question pre-
sented for decision. William Rowland by
his will made numerous pecuniary beque^^
some outright, and others to his executors in
trust for various beneficiaries. The rest,
residue, and remainder of his estate he gave
to the executors, in trust to pay the income
to his widow during her lifetime, and upon
her decease to pay the Income to his children
until a given time, when the principal was to
be distributed. Four of the trust legacies,
aggregating $395,000, were for the b«iefit of
nondependents, and consequently not payable
for a year after the death of the testator.
The Income of the estate for the year, upon
a sum equal to these trust funds, amounted
to $16,131.26. This sum the appellant con-
tends should be treated as income of the resi-
due, while, -on the other hand, the trustees
claim and have charged themselves wltb it
as principal of the residuary estata From
so much of the decree sustaining the trustees
in this respect, this appeal was taken.
Doubtless this precise question has been
often before our courts, but it seems that the
decision is not recorded In any of our report-
ed cases. Elsewhere may be found an abund-
ance of authorities upholding the course pur-
sued by the court below. Lewln on Trusts
(8th Ed.) 8. p. 301, states the estabUshed and
guiding rule thxa:
"The tenant tor life of a residue is not en-
titled to the income accruing during the delay al-
lowed for the payment of legacies on bo much of
the testator's property as is subsequently applied
in paying them. Executors, as between them-
selves and the persons interested in the residue,
are at liberiy to have recourse to any funds they
please for payment of debts and legacies; but,
in adjusting the accounts between the tenant
for life and the remaindermBn, they must be
taken to have paid the debts and legacies not out
of capital only or out of income only, but with
such portion of the capital as, together with the
income of that portion for one year from the
testator's death, was sufficient for the purpose."
See, also. Perry on Trusts (6tb Ed.) S 561.
In Allhusen v. Whittell, L. K. 4 Eq. 295, the
testator, Whittell, gave his estate, which was
subject to the payment of legacies, to trus-
tees to pay the income to bis father for life,
wltb remainder over in four equal parts.
Vice Chancellor Wood, in illustrating the
rule, said that, supposing a testator has a
large sum, say £50,000 or £60,000, in the
funds, and has only £10,000 worth of debts,
the executors will be justified, as between
themselves and the whole body of persons
Interested in the estate, in dealing with It as
they think best in the administration. Bat
the executors, when they have dealt with the
estate, will be taken by the court as having
applied In payment of debts such a portion
of the fund as, together with the income oC
that portion for one year, was necessary for
the payment of the debta Until the debts
and legacies were paid, there would have been
no interest from the death of the testator
which could by possibility have come to the
tenant for life. What I apprehend to be the
true principle is that, in the bookkeeping
which the court enters upon for the purpose
of adjusting the rights between the parties,
it is necessary to ascertain .what part, to-
gether with the income of such part for a
year, will be wanted for the payment of
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STATE y. STANFORD
53
debts, legacies, and otber cbarges, during tbe
year; and the proper and necessary fund
must be ascertained by Including the Income
for one year which may arise upon the fund
whicji may be so wanted. It is clear that
the tenant for life ought not to have the In-
come arising from what Is wanted for the
payment of debts, because that never becomes
residue in any way whatever. In Holgate v.
Jennings, 24 Beav. 623 (53 Eng. Reprint, 498),
tbe testator, whose estate consisted of stocks,
gave £16,000 In legacies, payable within six
months, and the rest and residue In trust to
pay tbe annual proceeds to his wife for life.
On a contest between the life right holder
and the remainderman, It .was held that div-
idends accruing within six months after the
testator's death on stock equal to the amount
of the legacies formed no part of the Income
of the residuary estate, but fell Into the resi-
due and formed a part of the corpus. In
Lambert v. Ijambert, L. R. 16 Eq. 320, Vice
Chancellor Bacon followed the principle enun-
ciated in AUhusen v. Whittell, as did the
court in In re Whitehead, Peacock v. Lucas,
1 Caiancery, 678.
In New York we find the same rule adopted.
In WlUlamsou v. Williamson, 6 Paige, 298,
the testator's will contained pecuniary lega-
cies, and the income on the residuary estate
be gave to ills wife for life, with the remain-
der over to his three sons. In determining
the right as between the life tenant and the
remainderman to the Income of the estate for
one year on the amount of the legacies, Chan-
cellor Wadworth said that It was not the In-
tention of the testator to give his wife the
Interest or Income of his whole personal es-
tate, until the debts and legacies should be
paid, or for the term of one year, and then
the Interest upon the residuary estate after
that time; but it was his intention to give
her the use or Income of the same residuary
fund, the capital of .which was to be distrib-
uted to bis three sons upon her death or re-
marriage. He dted the ease of Covenhoven
V. Shuler, 2 Paige, 132, 21 Am. Dec 73, and
the authorities there referred to, as settling
tbe principle that where there Is a general be-
quest of a residue of the testator's personal
estate for life, with a remainder over after
thie death of the first taker, the whole resid-
uary fund is to be invested for the benefit of
the remainderman, and the tenant for life is
only entitled to tbe Interest or income of that
fund, and to ascertain the amount of such
residuary fund, so as to apportion the capi-
tal and the inc(Hue properly between the re-
mainderman and the tenant for life, the ex-
ecutor, upon settling the estate at the end of
tbe year, must estimate the whole estate, at
what is then ascertained to have been Its
cash value, at the testator's death, after pay-
ing all debts, legacies, expenses of adminis-
tration, and otber proi)er charges and com-
missions. But in making such deduction for
legacies payable at a future day, and which
do not draw interest, the whole amount of
the legacies Is not to be deducted, but only
such a sum as, if properly Invested, would, at
the time when tbe legacies become payable,
have produced the requisite sum exclusive of
all expenses and risk of loss. To the same
efCect is Matter of Accounting of Benson, et
aL. 96 N. Y. 499, 48 Am. Rep. 646.
It Is therefore quite clear, both upon prin-
ciple and authority, that the Income on the
legacies under consideration passed into the
residue as principal, and not as income there-
of. A clear distinction, however, is drawn
between the application of Income on a fund
applied to the payment of a vested legacy
and accumulations on tbe principal of an es-
tate from .which contingent legacies, or those
payable at an Indeterminate time In tbe fu-
ture, may be payable. In the latter instances
the income falls into the residue as Income of
the residue. The reason for this is the un-
certainty as to whether tbe estate will ever
be called upon to pay such legacies, and until
it is the whole of the principal is "residue
until wanted," and the Income thereof Is, of
course. Income of residue. See Sandford v.
Blake, 45 N. J. EJq. 248, 17 AU. 812, where
Justice Depue discussed the principle and
cited the English authorities, including AU-
husen V. Whittell, supra.
Counsel for the appellant, upon the argu-
ment and in his brief, cited Corle v. Monk-
house, 47 N. J. Eq. 73, 20 Atl. 367, as up-
holding his contention. That case is authori-
ty for one of the exceptions to the general
rule that interest on legacies does -not begin
to run imtll one year after the death of the
testator, viz. where a gift Is made of the
interest or income, either of the whole of the
residue, or a particular part of it, to one
person for life, and the principal Is given over
to others on the death of the life tenant, the
life tenant Is entitled to Interest from the
date of the death of the testator. This doc-
trine has been laid down time and again by
our courts, and Is not at this day even debata-
ble, but manifestly it does not Involve the
point of law raised on this appeal.
The decree below will be affirmed, with
costs.
(90 N. J. Law, 721)
STATE V. STANFORD (two cases).
(Nos. 82, 83.)
(Court of Errors and Appeals of New Jersey.
May 8, 1017.)
1. Crimiita.]:. LiAW <S=»(j06(7)— Reception of
EVIOKNCB— ObJEOTION.
Where, in a prosecution for keepine disorder-
ly houses, the testimony given by defendant on
the trial of an indictment against a third per-
son was admissible, an application to ezclade
in toto the testimony given by defendant and
liis codefendant at such trial was properly re-
fused; tbe protection which defendant was en-
titled to have against the previous testimony of
bis codefendant being an instruction that it
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101 ATLANTIC BBPORTEB
(N.X
should sot b« eonaiderod in passinK on hia gruUt
or innocence.
[Ed. Note. — For other cases, see Criminal
Law, Cent. Dig. | 1843.]
2. Criminal Law ®=»824(8) — Instbuctionb—
Fi.II.'DBX TO Reqitest.
Where accused failed to request an instruc-
tion that testimony pven by his codefondant at
a prior trial of a third person could not be con-
sidered in passing on the guilt or innocence of
accused, be could not complain, on appeal, of
the trial court's failure to give such an instruc-
tion.
[Ed. Note.— For other cases, see Ciiminal
Law, Cent. Dig. S 1999.]
3. Cbiminal Law «=»393(1)— Pekvioub Tebti-
itoNT— AomssiBrLiTT.
In a prosecution for keeping disorderly
houses, it was no objection to the admissicHi of
testimony, given by defendant at the trial of a
third person, that the state bad no right to make
defendant testify against himself, and that it
had not been first shown that the admissions
contained in such testimony were voluntary, and
that defendant was cautioned that what he said
might be used against him on some other occa-
sion, where it appeared that the previous testi-
mony of defendant had been elicited, not by the
state, but by counsel for the person then on trial.
[Ed. Note.— For other cases, see Criminal
Law, Cent Dig. § 871.]
Error to Supreme Court.
Albert Stanford was convicted of keeping
disorderly houses, and brings error. Af-
firmed.
Garrison & Voorhees and Isaac H. Nutter,
all of Atlantic City, for plaintiff In error.
Charles S. Moore, of Atlantic City, for the
State.
PER CURIAM. Albert Stanford and Al-
bert Jackson were convicted at the Janu-
ary term, 1916, of the Atlantic county court
of quarter sessions, each under two separate
indictments for the common-law crime of
keeping disorderly houses at two separate
places In Atlantic City. The four indict-
ments were tried together, verdicts of guilty
found, and from separate Judgments in each
case writs of error were taken to the Su-
preme Court Thb cases were there argued
together, and the convictions affirmed by that
court From the Judgments of affirmance
entered in the Supreme Court Albert Stan-
ford took two writs of error, which are now
before this court The testimony and assign-
ments being identical, the cases were pre-
sented and argued together by consent of
counseL
The opinion in the four cases In the Su-
preme Court was rendered In one of the Jack-
son Cases and is as follows :
"Per Curiam. The defendant was indicted for,
and convicted of, the crime of keeping a disorder-
ly house, the gravamen of the charge being the
assisting in carrying on a gambling establish-
ment at Chalfonte avenue, m the City of At-
lantic City. A similar indictment was found
against one Albert Stanford, and a conviction
was had in his case also. The cases were tried
together in the quarter sessions, and were argued
together before this court
[1, 2] "Numerous errors were assigned by each
defendant but all of them were abandoned on
the areument, except three. These three are
each of them directed at an allged error of the
trial court in permitting the official stenographer
to read the entire testimony given by Stanf(»d,
and also that given by Jackson, on a trial there-
tofore had on an indictment presented against
one Andrew Terry, who was the proprietor of
the gambling establishment at which the present
defendants acted as assistants. The pith of tho
contention is that the prior testimony given by
each of them_, and permitted to be read to the
jury, was evidential only against himself, and
not against his codefcndant, and that its admis-
sion was improper for this reason. It is con-
ceded that Jackson's previous testimony, if vol-
untarily given, was properly Admitted as evi-
dential against himself, and that Stanford's also
was admissible against himself. It foUows,
therefore, that an application to exclude this evi-
dence in toto was properly refused. The protec-
tion whidti each defendant was entitled to have
against the previous testimony of his codefend-
ant was an instruction that it should not be con-
sidered by the jury in passing upon his guilt or
innocence. Perry v. Levy, 87 N. J. Law, 670, M
Atl. 569. But as no request for such an instmc-
tion was proffered, and as the testimony was
admissible to the extent indicated, the defend-
ants cannot now complain of the failure of the
trial court to thus limit the effect of the evi-
dence.
[3] Moreover, the objection to the admission
of tnis testimony was not based upon its lack
of evidential value, but upon the sole ground
that it could not be introduced until it was first
shown that the admissions contained in it were
voluntary, and that the party making them was
cautioned that what he said might be used
against him on some other occasion; and, fur-
ther, that the state had no right to make a de-
fendant testify against himself. These grounds
of objection were, under the circumstances, en-
tirely without merit and have not been urged
before us. It is proper to say, however, that
the previous testimony of these defendants oo
the trial of the Terry indictment had been elicit-
ed, not by the state, but by Terry's counsel;
and, under these conditions, there was, of course,
no obligation on the part of the prosecutor of
the pleas to warn the witnesses that what they
might say could be used against them if it in-
dicated criminality on their part. The sugges-
tion that the state, by submitting the previous
admissions of the defendants, was compelling
them to testify against themsdves is, of course^
entirely without substance.
"The judgment under review will be affirmed."
The other Judgments .were affirmed for the
reasons given In the above opinion, a mem-
orandum to that effect being filed.
PER CURIAM. The two Judgments under
review on the writs of error sued out by
Stanford In this ooart are affirmed for the
reasons given In the above opinion of the
Supreme Court
(M K. J. Law, sn)
STATE V. PULUS.
(Supreme Court of New Jersey. June 6, 1917.)
1. Indictment and Information <©=al37(2) —
Motion to Qtjash Indictment— Disquali-
fication or Obano Jubos.
That the fweman of the grand jury when a
candidate for the office of freeholder had stated
in his canvass that he stood for efficiency and
economy In county government, and that the
remedy was in the hands of voters even if war-
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N.JJ
FREKMAN v. VAN WAQENEN
55
ranting tbe inference that tlie members of the
existing board of which the defendant was one
were not to be trusted with the management of
the county government, would not justify quash-
ing the indictment where no malice or ill will is
arerred, and the defendant was not even the
rival of the foreman of the grand iury for the
office he sought
[Ed. Note.— For other cases, see Indictment
and Information, Cent Dig. { 481.]
2. CoDNTiEs «=>103— Misconduct in OmcB
—Indictment — Sufficienct.
In a prosecution of a. freeholder for mis-
conduct in office, an indictment averring that
the defendant was an officer of a county having
been duly elected chosen freeholder by tbe quali-
fied voters of a township named and having
taken upon himself the said office was sufficient
without specifically averring that he took the
-oath of office.
[Ed. Note.— For other cases, see Counties,
Cent Dig. { 160.]
Read Pnllis was Indicted for an otTense.
On motion to qnasta indictment Motion de-
nied.
Argued February term, 191T, before
SWATZB, MINTDRN, and KALISOH, JJ.
Egbert Rosecrans, of Blalrstown, and Har-
lan BesBon, of Hoboken, for the motion. Wil-
liam A. Stryker, of Washington, N. J., op-
posed.
SWATZE, J. [1] The most Important ob-
jection to the indictment is that the foreman
of the grand Jury which found it was at the
time a candidate for the offlce of freeholder
and in his canvass had suggested that the
members of the existing board, of whom tbe
defendant was one, were not to be trusted
with the management of the county govern-
ment. If we draw this Inference from the
fact that he stated that he stood for efficiency
and economy in county government, and
that the remedy was in the hands of the
voters, ,we think it fails to Justify us in
quashing tbe Indictment The case differs
from State v. McCarthy, 76 N. J. Law, 295,
68 AtL 1075, where the proof showed partial-
ity on the part of the sheiiflC in selecting the
grand Jury, as was possible under the law as
It then stood. The present charge is in the
nature of a challenge to the favor of a single
grand Juror, and goes no farther. No mal-
ice or lU wUl is averred, and tbe present de-
fendant was not even the rival of the fore-
man of the grand jury for the offlce be sought
The case is within the rale of State v. Turn-
er, 72 N. J. Law. 404, 60 AU. 1112 ; State v.
nickey, 10 N. J. Law, 83.
[2] Tbe objection to the form of tbe in-
dictment Is unsubetantiaL It follows that
approved by this court in State v. Coding-
ton, 80 N. J. Law, 496, 78 Atl. 743, afflnned
82 N. J. Law, 728, 85 AO. 1135. We do not un-
derstand the suggestion of the brief that tbe
question was not squarely discussed in the
opinion in that case. We think it enough to
aver that the defendant .was an officer of the
county, having been duly elected- chosen
freeholder by the qualified electors of the
township of Blalrstown, and having taken
upon himself the said office, without specific-
ally averring that he took the oath of offlce.
The motion is denied. Let tbe record be
remitted for trial to the quarter sessions.
(to N. J. lAW, J58)
FREEMAN ▼. VAN WAGENEN et aL
(Supreme Court of New Jersey. June 6, 1917.)
1. Beokebs <8=»85(1) — Action fob Commis-
BioN- Evidence— ADMisstBiLiTT.
In a broker's action for commissions for the
sale of real estate, evidence for the purpose of
showing that the defendant sought to vary the
terms of the written agreement between the par-
ties by making it applicable only in the case of
a sale to a railroad was not admissible.
[Ed. Note.— For other cases, see Brokers, Cent.
Dig. §§ 106, 108-110, 113, 115.]
2. Bbokebs @=>88(4) — Action fob Comiis-
sioNs— Jtjbt Question.
Whether the written agreement between the
parties had been given up by the plaintiff so as
to render it of no effect held for the jury.
[Ed. Note.— For other cases, see Brokers, Cent
Dig. ii 128, 129.]
3. Bbokebs «=>43(3)—Contbact— Statute of
FbaUDS— SlQNATUBE BY OnE OF TENANTS IN
Common.
Under statute of frauds (2 Comp. St 1910,
p. 2617) i 10, providing that a broker selling
lands is not entitled to commissions unless em-
ployed in writing, where a contract for the em-
ployment of a broker to sell land which com-
plied with the statute was signed by one of sev-
eral tenants in common, sudi authority and a
subsequent agreement for a conveyance by all of
the cotenants was sufficient, since it was a nec-
essary inference, either that such cotenant was
the agent of the others In signing the authority
to the broker, or that they adopted his act.
[Ed. Note.— For other cases, see Brokers, Cent
Dig. { 44.]
4. Beckers ®=>54 — Contbacts — Constbuc-
TioN— "Sale"— "Sell."
Where a broker was employed in writing to
sell real estate, all that he was bound to do was
to bring the parties together and get them to
make a oinding agreement and it was not neces-
sary that he produce one able to perform the
contract, since the words "sale" and "sell" in
agreements between the owners of lauds and real
estate brokers mean no more than to negotiate a
sale by finding a purchaser upon satisfactory
terms.
[Ed. Note.— For other cases, see Brokers, Cent
Dig. Si 75-81.
For other definitions, see Words and Phrases,
First and Second Series, Sale; Sell.]
Appeal from Circuit Court, Essex County.
Action by Bart J. Freeman against George
A. Van Wagenen and others. Judgment (or
plaintUF, and defendants appeal. Affirmed.
William K. Managan, of Newark, for ap-
pellants. Edwin 0. CaffTey, of Newark, for
respondent
SWATZE, J. [1, J] This is an action by a
broker to recover commissions on a sale of
real estate. On October 22, 1913, John B.
Van Wagenen, one of the defendants and ten-
ants in common signed a written agreement
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101 ATLANTIC REPORTER
(N.J.
to my tbe plaintiff a commission of 2% per
cent, (or the sale of the property. The de-
fendants claim that this agreement was
meant to apply only to a proposed sale to the
Pennsylvania Railroad Company; that no
such sale was made ; that thereupon, In De-
cember, 1913, the agreement for commissions
was returned by Freeman to Van Wagenen
and abandoned. In fact the agreement was
not produced at the trial; tbe plaintiff relied
on what was said to be a copy which bad
been retained by his lawyer. The point in
this respect was that the agreement had been
abandoned by consent, although there are
suggestions In the case and in the briefs that
the defendant sought to vary the terms of
the agreement by making It applicable only
In case of a sale to the railroad. The learn-
ed trial Judge rightly held that the evidence
was not admissible for that purpose, and put
to the jury the real question whether the
written authority was given up by the plain-
tiff, so as to render it of no ^ect
[S, 4] Whether the authority was given up
or not, the plaintiff continued his efforts to
sell the property. He claims, of course, that
be was acting under the written authority.
The defendants claim that he was acting
only under a verbal authority from John B.
Van Wagenen, whose agency for all the ten-
ants in common is not disputed. As a re-
sult of the plaintiff's efforts, a prospective
purchaser was procured in the person of
Cobb. Pending the actual execution of a
contract for sale with Cobb, the plaintiff pro-
duced in If arch, 1014, another purchaser,
Scberer, who offered a higher price. With
blm tbe defendants made a formal written
contract on March 14, 1914, for the convey-
ance of the land, and received $1,000 on ac-
count of the purchase price. This contract
did not, however, result la a conveyance.
Scberer sought to rescind and recover bis
thousand dollars, but failed. Meantime tbe
defendants actually conveyed tbe property to
Cobb for a lower price than that at which
they bad authorized the plaintiff to sell. The
claim of tbe plaintiff for commissions on the
sale and conveyance to Cobb Is not Important
for the present purposes, since the Jury
found in favor of the defendants on that is-
sue and tbe plaintiff does not appeal. Tbe
question for us Is whether there was any er-
ror in submitting the case to the Jury as to
tbe claim for commissions on the sale to
Scberer. Assuming as we must, in view of
the Jury's finding la favor of the plaintiff on
this issue, that the authority of October 22d
bad not been given up, we think It was right
to bold, as the Judge did, that tbe authority
and the subsequent agreement for a convey-
ance to Scberer by the defendants satisfied
tbe requirements of the tenth section of our
statute of frauds (2 Comp. St ISIO, p. 2617).
There was an agreement signed by one of the
defendants which complied with the statute.
From tbe fact that the otber defendants Join-
ed him In the contract to convey to Scherer,
It was a necessary Inference, either that he
was in fact their agent In signing tbe author-
ity to Freeman, or that they had adopted bis
act Under either view, actual present agen-
cy or subsequent adoption, he was entitled to
recover if he had performed on his part As
to this, the defendants claim that, although
tbe plaintiff bad produced a ready and will-
ing purchaser in the person of Scberer, be
bad not produced one able to perform tbe
contract. The Judge charged that all the
plaintiff was boimd to do was to bring tbe
parties together and get them to make a
binding agreement This was a correct state-
ment of the law. It Is a mistake to think
that we decided In Hinds v. Henry, 36 N. J.
Law, 328, that tbe broker could never recov-
er unless be procured an able and willing
purchaser. We said that the general rule
was that when he bad done that, his right
to commission was complete. We did not
deny that other facts also might make his
right complete. A clear distinction is made
in our cases between a sale and a conveyance
of land. We agree with what was said la
Undley et al. v. Kelm et al., 54 N. J. Eq.
418, at page 423, quoting the opinion of Vice
Chancellor Pitney, to be found in 34 Atl.
1073, that the words "sale" and "sell" in
agreements between the owners of land and
real estate brokers mean no more than to
negotiate a sale by finding a purchaser upon
satisfactory terms. This the plaintiff did,
the defendants actually accepted Scherer as
satisfactory, and the only question so far as
the Scherer transaction is concerned was
that put by the Judge to the Jury, whether
tbe written authority had been abandoned by
the plaintifl as the defendants claimed.
We find no error; tbe Judgment la affirm-
ed, with costs.
m N. J. Law, S87)
PRANTL T. JUNK.
(Court of Errors and Appeals of New Jersey.
May 8, 1917.)
(Bvllaiiu iv <Ae Court.)
Apfeai, and Ebbor «=s>428(2) — Noticb of
Appkai. — Pebitectino Afpxal — Statutes
ANo Rules or Court.
Appeals were substituted for writs of error
by tlie practice act of 1912 (P. L. p. 377, {
25), and by rule 77 (100 Atl. xxiii) annexed to
that act, and rule 137 (100 Atl. xxx) of tiie Su-
preme Court (1913), an appeal may be taken by
notice served on the adverse party and filed
within the time limited for bringing writs of er-
ror (now superseded by appeals in civil suits).
Such an appeal is perfected, so as to remove the
cause from the court below to the court above,
by serving a notice on the adverse party and fil-
ing the game within the time so limited, which
is one year in the class of cases in which that
at bar is one. The provision Is in the conjunc-
tive, namely, the service and filing of the notice.
The provision is not that the notice shall be filed
immediately after the service or within any time
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V.3.)
GODFBBY V. BOARD OF CHOSEN FREEHOLDERS
57
preMribed thereafter, except that limited tor
the taking of an appeal, so that, after serving a
notice of appeal at an early date after judgment,
the appellant may delay perfecting the appeal,
so far as the notice perfects it, until the last day
<m which an appeal will lie.
[Ed. Note.— For other cases, see Appeal and
Error, Cent Dig. { 2167.]
Appeal frcMn Supreme Court.
. Action by Henry Prantl against Daniel J.
Junk. Judgment for plaintiff, and defendant
appeals. Motion to dismiss denied.
Garrison & Voorhees and Clarence Ii. Gold-
-enberg, all of Atlantic City, for the motion.
TJlysses Q. Styron, of Atlantic OUj, opposed.
WALKER, Chancellor. On May 15, 1916,
tbe plaintiff recovered a judgment against
the defendant in tbe Supreme Court in a suit
for malicious prosecution, and on June 14,
1916) tbe defendant served a notice of appeal
upon tbe plaintiff. Motion is now made,
Alanih 6, 1917, to dismiss tbe appeal, for the
following reasons: (1) Because no reasons for
reversal were served upon the respondent or
his attorneys within 30 days from service
-of notice of appeal ; (2) because no state of
tbe case has ever been prepared or served;
(3) because tbe said cause was not noticed for
argument in tbe Court of Errors and Appeals
by the appellant at either June or November
terms, 1916, or the March term, 1917 ; (4) be-
-cause tbe appellant has not prosecuted bis
appeal other than serving notice of appeal in
June, 1916, and has failed to cause bis notice
«f appeal, then served, to be filed with the
clerk of this court ; (5) because the appellant
has heretofore abandoned his appeal.
Appeals were substituted for writs of error
by the practice act of 1912 (P. I* p. 377, { 25).
In rule 77 (zxili) annexed to that act it Is
provided that appeals shall be taken by no-
tice, which shall be served on the adverse
party and filed within the time limited for
bringing writs of error, which at the time of
tbe passage of that act was one year in the
class of cases is which that at bar is one.
Oomp. Stat p. 2208, f 2. Rule 137 (100 Atl.
XXX) of the Supreme Court (1913) in its first
paragraph is a literal transcription of rule
77 annexed to the practice act of 1912. The
remaining portion of rule 137 concerns mat-
ters of practice and procedure not involved
In this motion.
It Is to be remembered that the limitation
of time in which an appeal may be taken is
one year after the judgment is entered, which
time has not yet expired in this case. If
tbe defendant had not appealed, he might
still do so. An appeal is a matter of ri^t,
subject to practice regulations, and, in order
to entitle himself to be heard in this court,
the defendant is only required to serve Ills
notice of appeal and file the same within the
prescribed time. The provision is not that
he shall file it immediately after service or
within any pf«seribed time thereafter except
that limited for taking an appeal, so that,
having served a notice of api)eal at an early
date after the judgment, the appellant may,
if he chooses, delay perfecting the appeal, so
far as the notice perfects It, until tbe last
day on which an appeal will lie. The re-
spondent is not harmed by sudi a procedure,
for, as we have seen, the combined action
necessary to remove the cause from the court
of first instance to the appellate tribunal,
namely, the serving and filing of the notice,
may both be done on the last day. That limi-
tation in this case has not yet been reached.
In rule 77 annexed to the practice act and
also rule 137 of the Supreme Court ttiere is
a provision that the serving and filing of the
notice of appeal shall be at least 30 days be-
fore the appeal is argued. This, as yet, has
no application to the matter sub judice.
The specific grounds upon which the mo-
tion to dismiss is based relates to matters
of practice in the prosecution of the appeal
after it has been perfected so as to remove
the cause from the court below to tbe court
above, except the last one, which is that the
appellant has abandoned the appeal; but
this, so far as it purports to be the result •
of the inaction complained of, Is non sequi-
tur, and, so far as it involves a statement of
an extraneous fact, was not proved.
The motion to dismiss tbe appeal will be
denied.
(90 N. J. Law, BIT)
GODFKBT et al. v. BOARD OF CHOSEN
FREEHOIiDERS OF ATLANTIC
COUNTY et aL
(Court of Errors and Appeals of New Jersey.
April 27, 1917.)
HiOHWATs <S=»105(1>— Scope or Aijthority
TO Rkconstkdot— ''Rkconstruot."
Laws 1914, p. 203, authorizing the board of
chosen freeholders of any county to repair or
"reconstruct" county roads and issue bonds
therefor, expressly limits the meaning of the
word "reconstruction" to the "reconstruction con-
templated tmder tbe provisions of" Laws 1912,
p. 809, providing for the permanent improve-
ment and maintenance of public roads; that
is, a reconstruction that is on the one hand
closely associated with the idea of repairs, and,
upon the other, sharply contrasted with the idea
of construction, and is not a grant of power to
reconstruct county roads in the broad sense of
the term "reconstruction."
[Ed. Note. — For other cases, see Highways,
Cent Dig. iS 323-327, 329, 330.
For other definitions, sec Words and Phrases,
First and Second Series, Reconstruct; Recon-
struction.]
Appeal from Supreme Court
On certiorari to the Supreme Ciourt (99
Atl. 843) by Carlton Godfrey and another to
review a resolution of the Board of Chosen
Freeholders of Atlantic County, Liddle &
Pfelffer, contractors, being additional re-
spondents, the resolution was set aside, and
respondents appeal. Affirmed.
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101 ATIAMTIO RSPORTER
OX.X
Bmenon L, Bidiards, of Atlantic City,
and Louis Hood and Riker & Rlker, all of
Newark, for appellanta. Tbeo. W. Scblmi»f
and C. L. Cole^ both of Atlantic City, for
appellees.
GARRISON, J. The facts of this case are
fully stated in the opinion of Mr. Justice
Blad(, who set aside the award of a contract
for the Improvement of certain public roads.
Godfrey v. Chosen Freeholders, 99 Atl. 843.
We agree that the contract was not legal-
ly awarded, but find it unnecessary to lay
down any rule as to conditional awards gen-
erally.
In the present case the conditional award
made on November 8, 1916, was by its own
terms rendered void by the election to wblcb
It referred. There was therefore, on Novem-
ber 24, 1916, no award and no power to make
one, since the meeting held on that date was
not an adjourned meeting or one to which
the matter had been continued; moreover,
all bids but one had been rejected, and none
of the statutory safeguards thrown around
the awarding of such a contract was or
could have been complied with. The award
made at that meeting had not even the
semblance of legality. Our affirmance of the
Judgment of the Supreme Court might well
rest upon this groimd alone, were it not for
the fact that there Is a more fundamental
question that lias been fully argued by
counsel, and that ought, In the Interests of
the public, to be decided before any further
action is taken by the board of chosen tree-
holders under diapter 122 of the Laws of
1914, which admittedly is the autliorlty upon
which the right to make the proposed im-
provement rests. That statute is not a grant
of power to reconstruct county roads In the
broad sense of the term "reconstruction,"
nor does It leave it to the courts to give
such broad meaning to it. The statute itself
defines the word by limiting It to the "re-
construction contemplated under the provi-
sions of an act entitled,
'An act to provide for the permanent improve-
ment and maintenance of public roads in this
state (Revision of 1912),* approved April 15,
1912."
We are thrown back therefore upon the
act of 1912 In order to ascertain the sense
in which the word "reconstruction" is used
in that act, and when such sense is ascer^
tained such meaning and none other must be
given to It in the act of 1914. Turning,
then, to the act of 1912 (P. U 1912, p. 809),
we find it to be a Revision of the Public
Roads Act dealing, as Its title imports, with
the t)ermanent Improvement of public roads
and their maintenance. The Improvement
of a public road is described generally by
the act to be its construction as a macada-
mized, Telford, stone, gravel, or other sort
of road; and the maintenance of such an
Improved road includes a provision for any
extraordinary repairs or reconstructioa of
which such road may be in need.
This is the sort of reconstruction that is
contemplated by the act of 1912, a recon-
struction that is, upon the one band, closely
associated with the idea of repairs, and, up-
on the other, sharply contrasted with the
idea of construction. So that upon compar-
ing the provisions of that act with the provi-
sions of the present contract, the latter could,
by no stretch of the Imagination, be brought
within the provision for reconstruction of
the act of 1912.
This being so. It follows ln4)emtiTely that
such contract provisions cannot be brought
within the authority to reconstruct granted
by the act of 1914, which in express terms
applies to Budi reconstruction only as was
contemplated by the act of 1912.
The award of the contract, therefore, was
not only invalid because not legally made,
but also because the board of chosen free-
holders were without authority to make the
proposed improvement.
The Judgmmt of the Supreme Court is af-
firmed.
(R N. J. Bq. 63S>
FRASER V. FRASER.
(Court of Errors and Appeals of New Jersey.
Maich 20, 1917.)
(Byllahut (y tke Court.)
1. DivoRCK «=337(15)— Gkounds — Deskbtiok
— "Willful Desebtign" — "Obstinate De-
sertion."
It is tlie duty of a husband to provide a
home for his wire, In wliich she is recognized
by its inmates as the household mistress, and
I when the husband subjects his wife in the man-
agement of ber household affairs to the inter-
i ference of ilia mother, who manifests an enmity
I towards the wife, and by words and acts as-
I sails tier conduct and reputation to such an
I extent that she cannot endure it, and leaves the
home for that reason, her desertion may be will-
ful, but it does not become obstinate, so long
as the husband malccs no effort to induce her
to return to a home freed from the contentious
element.
I [Kd. Note.— For other cases, sea IXvorce,
Cent. Dig. 1 122.
I For other definitions, see Words and Phrases,
] First and Second Series, Willful Desertion ;
Obstinate Desertion.]
2. Divorce «=»133(3)— Desebtiow — Wtre's
Return— Bona Fides.
A wife left her husband's home, after noti-
fying him ttiat she would do so unless he pro-
vided a home apart from his mother, whose con-
duct she claimed humiliated her, and who had
charged her witii being a bad, wicked woman.
I This tiie bu8l>and refused, saying, "That is up
to you." When she left her husband was pres-
' ent, made no protest, and did not ask her to
' stay.
{ She took with her their only child, three weeks
; old, and the husband never attempted to see his
wife or the child, although they lived in the
same city. After two years the husband decided
' to move to this state in order to obtain a divorce
' for desertion. Shortly before coming to this
! state he wrote a letter to his wife, and the day
after he moved he wrote her another ; the con-
i tents of these letters being the only proof of an
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FRA8EB T. FBASETR
69
attempt to Incltie* hta wife to retnm. Neither
letter contained any request or invitation, but a
mere statement tliat the liome yraa open for lier
return under old conditions, including tlie pres^
ence of ills mother. Held, that these letters
were not proof of a bona fide effort to induce the
wife to return, for there was no promise to re-
move the real cause of the separabon, which the
husband recognized when he permitted his wife
to leave without protest. Nor did they invite
the wiffe to return, and were evidently written
as a basis for the intended divorce prooeediugs,
embodying terms wliich he knew the wife could
not accept
[Ed. Note.— For other cases, see Divorce,
Gent Dig. $ 44a]
Appeal from Conrt of Chancery.
Action for divorce by WiUiam J. Fraaer
against Mary Bf. Fraser. Decree for plain-
tiff, and defendant anDoals. Reversed, and
cause remanded to the Court of Chancery,
so that the petition might be dismissed.
Edward Maxson, of Jersey City, for appel-
lant James A. Sullivan, of Passaic, for ap-
pellee.
BERGEN, J. From a decree of divorce,
based upon the petition of the husband, al-
leging desertion by the wife) she has ap-
pealed.
[1] They were married in the city of Brook-
lyn, N. Y., where both resided, July 10, 1910;
a <AUd was bom April 24, 1911; the defend-
ant left petitioner's house with the child May
13, 1911; and since that date the parties have
lived in separate homes. The reason which
the wife gives for leaving her husband's
house is that the conduct of the husband's
mother, who was an inmate of the home,
made her life intolerable by constant quar-
rels, charged her with l>elng a bad woman,
estranged her husband's affection, who es-
poused the cause of the mother, and In many
ways manifested her 111 will towards the wife
by acts and speech, so that her position as
mistress of the home was depredated, and
she humiliated and deprived of the comfort
and liapplness she had a right to enjoy. That
there were many disagreements and quarrels
between the women is not disputed; the tes-
timony showing that the husband was aware
of the condition, and that as early as Novem-
ber, 1910, his wife complained to him that,
unless he provided her a home separate from
his mother, she would have to leave Mm.
^niere Is no doubt that It was a contentious
household, for which the mother was at
least partly to blame, so that. If her conduct
was not modified, there could be no happi-
ness; and this the husband did not imder^
take to accomplish, for he testified that he
heard both sides and remained nentral, even
when told by his wife that his mother had
written a letter to a fortune teller, In which
the wife was described as "a Ijad, wicked
woman." This attitude on the part of the
husband is not, perhaps, such legal cruelty
that it would justify a wife In leaving the
home ; but there is a 8i)ecles of cruelty which
cuts deeper than a blow or the lasl^ and that
1b the weakening of a husband's lore end af-
fection through the disparagement of the
wife by the hnsband's mother, and when not
resented by him, but apparently sustained, is
bound to destroy the happiness of the home.
Under such circumstances it Is his duty to
remove the cause, and If he refuses It Is a
potMit element In the consideration of the
questions whether he did not consent to the
separation, and whether he made a bona fide
effort to Induce his wife to return. The
animus of the mother Is further manifested
by the fact that, although an Inmate of the
bouse when the child was bom, she never
made any effort to see the ddld, and, bo far
as the testimony shows, never did.
This cause UluMrates the futility of at-
tempting to establish such a home as a hus-
band Should provide for his wife, when one
of the component parts Is his mother, who
up to the time of the Introduction of the wife
Is Its heaA, and who is not willing to gra-
ciously accord to the wife her rightful posi-
tion as mistress, and where the husband, In
all disagreements between bla mother and
wife, rither supports the mother or remains
neutral between the contending forces. It Is
the duty of the husband to provide a home
for bis wife, where she Is recognized by its
Inmates as the household mistress, and when
the husband subjects his wife in the manage-
ment of her household affairs to the Inter-
fer^ice of his mother, who manifests an
enmity towards the wife, and by words and
acts assails her conduct and reputation to
such an extent that she cannot endure it, and
leaves the home for that reason, her deser-
tion may be willful ; but it does not become
obstinate so long as the husband makes no
effort to induce her to return to a home freed
from the contentious element Shortly be-
fore the wife left she again told her hus-
band that, unless he provided a home apart
from his mother, she would leave, and he
admits that his reply was, "That Is up to
you," and on the day she moved he was pres-
ent cutting the lawn, but paid no attention to
the moving, nor did he say a word to her of
protest, or request her to remain.
The fair Inference from this record is that
he tacitly consented to the separation, prefer-
ring to retain his mother, rather than his
wife and child. Under these circumstances
the husband was not without fault, and, as-
suming that the desertion by the wife was
willful. It is not obstinate unless, after a
bona fide effort to effect a reconciliation, the
wife refused to return, and we must there-
fore consider and determine whether such an
effort has been made. It was manifest to the
husband that no permanent reconciliation
could be effected If the sume conditions re-
mained, and the wife required to accept a
home with his mother, who considered her "a
bad, wicked woman." This was a huuiilia-
tlon he knew she would not submit to. in
our opinion the record falls to show any such
bona fide effort aa^ the law requires. In Van
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101 ATIANTIO REPOKTEB
(N.J.
Wart T. Van Wart, 67 N. J. Bq. 598, 41 Atl.
966, the husband, when the wife was leaving,
as In this case, "stood by without asking her
to stay," and It was held that it was his duty
to make a bona flde effort to Induce her to
return. "Desertion cannot) be c»nsldeied as
obstinate on the part of one, when the sepa-
ration la acquiesced In by and entirely satis-
factory to the other, who neither entertains
nor manifests any desire that the separation,
nor the causes which brought it about, should
cease." Ghlpchase v. Chlpchase, 48 N. J. Eq.
649, 22 Atl. 688, affirmed on opinion below 49
N. J. Eiq. 594, 26 Atl. 468.
[2] What has the petitioner done in this
case to manifest a sincere desire that the
separation, and the causes which brought it
about, should cease; the cause being a con-
tentious mother-in-law unkindly disposed to-
wards the wife? We have his admisslMi
that be has never visited his wife or child,
although th^ lived in the same dty, and he
tratlfles that he has no affection for the
diild. He does not daim that he would not
have been allowed' to see either his wife or
child, or that he made any effort to do so;
he sulked in his tent until he wished to ob-
tain a divorce. In March, 191S, he removed
to New Jersey for, as he testified, the express
purpose of obtaining a divorce for desertion,
and his only effort to Induce his wife to re-
turn was sending her two letters, one dated
February 1, 1913, and the other April 1, 1913.
The first letter was written shortly before he
moved to this state, and when, presumably,
he had decided to do so for the purpose of
obtaining a divorce, and it should be read
from that viewpoint. He asks whether she
expects to live in the present manner for the
rest of her life, whether she intends to return
to his home, or whether she is going to get a
divorce, and then adds, "The home is just the
same as it always was ; I never told you to
go, or debarred you from returning, and you
can return under the same ccmdltions as you
originally came to it," and that, if she wished
a divorce, "you can have a divorce from me
at any time without any contest" It is not
difficult to read between the lines that this
was not a bona fide attempt to remove the
cause and end the separation. It ccmtalns no
word of affection, no request to retnm ; all
that be offers Is a place to live under the old
conditions, and It was evidently written to
lay the basis for a divorce in this state afiter
removal thereto ; besides this, an offer not to
contest a divorce suit instituted by her is
hardly consistent with a bona flde desire to
Induce a recondllation, but rather an invita-
tion to join with him in making It permanent
by a divorce.
The second letter contains a notification
that he has removed to New Jersey, and that
his house was still open to her, "the same as
prior to the time you left me and your home
at Brooklyn." Neither letter contains any
invitation or request to return, and the last
was written immediately after be moved to
this state in order that he might secure a di-
vorce; and It is not credible that the peti-
tioner, having Just moved to the state with
the intention of obtaining a divorce, really
Intended that it should induce his wife to
accept, and thus prevent the accomplishment
of the purpose he had In view. He knew
that so long as the original cause remained
he was in no danger of acceptance; be does
not invite, but informs her that she may re-
turn under old cocditlous; and It was mani-
festly not his intention to ask her to come,
for he carefully avoids doing so, bnt at the
same time notifies her that. If she comes, she
must do so with the cause of separati<»i still
present To this lett«r d^endant replied, ex-
pressing her desire and willingness to return
If the mother was not a part of the family.
The petitioner, having, In effect, cons«ited to
the separation, and failed to show that he has
made a bona flde attempt to end the separa-
tion, is not entitled to a decree for divorce for
desertion.
The decree appealed from wlU be reversed,
and the record remanded to the Court of
Chancery, so that the petition may be dis-
missed.
(M N. J. lAW, 481)
BOSS et nx. v. COMMISSIONERS OP PALI-
SADES INTERSTATE PARK.
(Supreme Court of New Jersey. June 6, 1917.)
(Bytlalut hv the Court.)
1. APPEAI, and EBBOB l8=a971(2)— EvtDENCK
®=5546— Ekpebt on VALtJE OF Land — Dis-
OBEnON OF TBIAI. COtTET— RKVIBW.
Who is an expert on the value of land under
our decisions must be left v^ much to the dis-
cretion of the trial judge. His decision is con-
clusive, unless clearly shown to be erroneous in
matter of law.
[Ed. Note. — For other cases, see Appeal and
Error, Cent Dig. | 3853; Evidence, Cent Dig.
§ 2363.]
2. Evidence «=>543(3)— EixFKBTa— Lakd Vai>
TJES— QUAtrnCATION.
The dominant circumstances forming the
qualification of expert witnesses as to land val-
ues consist of the fact either that they have
themselves made sales or purchases of other
similar lands in the neighborhood of the land in
question within recent periods, or that they have
knowledge of such sales by others.
[Eld. Note.— For other cases, see Evid«ioe,
Cent Dig. { 2357.]
8. Evidence iS=3543@) — Ezfebt Witness—
VAi,tiE OF Land.
The mere fact that a witness owns the land,
bnt has no special knowledge of values, does not
qualify him as an expert, so as to give an opin-
ion as to the value of the land.
[Ed. Note.— For other cases, see Evidence,
Cent Dig. { 2357.]
4. Eminent Domain ®=>131— Valuation or
Land — Undeelying Stone.
Valuing land taken under condemnation un-
derlaid with stone, the stone should not be
valued separately and apart from the land, but
it may be shown to what extent the land is
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ROSS V. COMMISSIONERS OF PALISADES INTERSTATE PARK
61
enhanced In value by the stone. The stme ia a
component part of the land.
[Ed. Note.— For other cases, we Ehninent Do-
main, Cent. Dig. § 353.]
6. Evidence «=>142(1)— Cokdkmnation Pbo-
CKEDINQ — VALUK OJ LAND.
It is not error to admit evidence of prices
eaid by the condemning party for similar lands
I the vicinity.
fBd. Note.— Pot other cases, see Evidence,
Cent. Dig. Si 418, 417, 423.]
6. Evidence «=»142(1)— Value of Land.
The price paid for land in the neighborhood
of that being condemned, to be evidential, the
land must be substantially similar.
[Ed. Note.— For other cases, see BvidenoB,
Cent. Dig. §1 416, 417, 423.]
7. Eminent Domain «=»124— Vautation of
La NH— Time.
The land is to be valued in the condition
in which it was on the date of filing the peti-
tion and order, fixing the time and place for the
condemnation proceedings. Act March 20, 1900
(P. L. p. 81) § 6.
[Ed. Note. — For other cases, see Eminent Do-
main, Cent. Dig. §S 332-344.]
Appeal from Circuit Oonrt, Bergen Connty.
Action by P. Sanford Boss and wife against
tbe Commissioners of the Palisades Inter-
state Park. From a verdict of a Jnry in a
condemnation proceeding, plaintiffs appeal.
Affirmed.
Argued before TBENCHABD and BLACK,
7J.
Bedle & Kellogg, of Jersey City, and Alonzo
Chnrcta, of Newark, for appellants. Josiah
Stryker, of Trenton, and John W. Wescott,
Atty. Gen., for respondent.
BLACK, J. This case Is an axipeal fnmi
the verdict of a ]ury rendered in a cwidem-
natlon proceeding tried at the Bergen circuit
The verdict of the Jury was $8,000. The
award of the commlBsioners was, $6,600. The
amount of land sought to be taken was 8.6
acres.
The land under condemnation is situate in
the extreme northerly part of the borough
of Ft. Lee, Bergen county, and lies between
a line drawn parallel with the Hudson river
150 feet west of the high-water line of the
Hudson river and the steep cliffs of the
Palisades. The tract extends about 980 feet
along this line, while the distance from the
line to the cliffs is 170 feet at the northerly
end and 155 feet at the southerly end. Ac-
cess to the land on the west is shut off by the
steep cliffs. The surface of the land is a
steep slope from the base of the cliffs to the
easterly boundary. The land Is bounded on
the east by other lands of the appellant,
which extend easterly 150 feet to the high-
water line of the Hudson river and from
there to the exterior line for solid filling.
The land In question and the remainder of
the same tract is wild, unoccupied land, the
npland being covered with small trees, under-
brush, and stones, the whole tract being un-
derlaid with slate and sandstone, and at the
westerly end, at an elevation of 128 feet.
with trap rock. There Is no oonummlcatlon
with the land by railroad, trolley, or wagon
road, none of the land under the Palisades
north of the tract has ever been used for In-
dustrial purposes, and the nearest land un-
der industrial development Is 2.6 miles south-
erly in the adjoining borough of Edgewater.
The grounds of appeal are 38 in number.
They are argued, however, under eight heads
In tbe appellants' brief. They all challenge
the rulings of the trial court and allege trial
errors as grounds for a reversal of the Judg-
ment The principal ones, however, relate
to the court's exclusion of the opinion of ap-
pellants' experts as to the value of the land
taken. Tbe witnesses offered by the appel-
lants for this purpose were Mr. Frederick
Dunham, civil engineer, Mr. Floyd S. Corbln,
a real estate broker of water front and dock
properties in the harbor of New York, Mr.
John H. Ehrehardt, a consulting engineer,
Mr. Edlow W. Harrison, a distinguished civil
and consulting engineer (Mr. Harrison has
had long and varied experience in valuing
railroad lands in New Jersey for taxation
since 1884, particularly as to the value of
the railroad terminal lands In Hudson coun-
ty; he has l>een called as an expert on many
features of the litigation involving the taxa-
tion of railroad property since the passage of
the railroad tax act of 1884), Mr. Joseph E.
Snell,'a dvll engineer of Newark, and Mr. P.
Sanford Ross, the appellant and owner of the
property under condemnatlcm, who is an en-
gineer and contractor. Mr. Dunham testified
that be had no familiarity with sales of prop-
erty under the Palisades in the vicinity of
the Ross property; that he had made no ef-
fort to keep in touch with sales of land under
the Palisades in the borough of Ft Lee. Mr.
Corbin had no familiarity with the sale of
any water front property in the borough of
Ft. Lee or with the sale of any property any-
where which had tbe same physical charac-
teristics and the same lack of any means of
communication as the property under con-
demnation or the tract of land of which it
formed a part Mr. Ehrehardt had not
bought or sold property in Bergen county;
he had no knowledge of any sale of any land
lying along the Hudson river anywhere In
Bergen county. Mr. Harrison testified, that
the nearest property to the Ross tract of
which he had any knowledge was the Koch
property, which was located one mUe south
of the Ross property, his familiarity with this
proiierty l)elng acquired by appraising It
He had no familiarity with values of land
In the borough of Ft. Lee, except this one
appraisal of the Koch property. He knew of
no sales of any property similar or like the
Ross property. Furthermore the record does
not show any question overruled by tbe trial
court put to him as to the value, but it does
show that the trial Judge said he would sus-
tain tbe objection. Mr. SneU testified that
he had never purchased or sold any land In
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lei ATIiAKTIO REPOBTBB
(N.J.
the Tldnlty of the tract under condemnation ;
that he had no familiarity with the sale
price of any land In that vldnlty. Mr. Koss
testified that he had no knowledge of sales
of water front property under the Palisades
north of the land under condemnation ; that
he had made no eftort to leam the sale prices
of such property; he had no knowledge of
either values or purchase prices of any prop-
erty In the borough of Ft Lee, except the
piece under condemnation and the tract of
whldi it was a part, which he purchased in
1882.
[1] Hie primary question In this case for
solution then Is whether, under our cases, It
was error to reject the opinion of these wit-
nesses on the value of the land under con-
demnation. Who Is an exx>ert under our de-
cisions must be left very much to the dis-
cretion of the trial Judge. His decision is
conclusive, imless clearly shown to be er-
roneous In the matter of law. Manda v.
Delaware, Lackawanna & Western R. R. Co.,
89 N. J. Law, 327, »8 AU. 467 ; New Jersey
Zinc Co. v. Lehigh Zinc Co., 50 N. J. Law,
194, 35 AU, 915; Elvlns v. Delaware, etc., TeL
Co., 63 N. J. Law, 247, 43 AU. 903, 76 Am. St.
Rep. 217; State v. Arthur. 70 N. J. Law, 427,
57 AU. 156.
[2] Our Court of Errors and Appeals,
speaking on this precdse point, said:
''Evidently, in the view of these autborides,
the meet material circumstance forming this
-qualification of expert witnesses as to land val-
ues consists of the fact either that the; have
themselves made sales or purchases of other
similar lands in the neighborhood of the land
in question within recent periods, or that they
have knowledge of such sales by others. How
recent the occurrence of such sales, in point of
time, and how near in location, and how nearly
similar in comparison must, of course, vary with
the circumstances of each case, and it is ther»
fore impossible to define a general rule applicable
to all cases." Brown v. New Jersey Short Line
B. R. Co., 76 N. J. Law, 797, 71 Atl. 271.
[3] So the court in speaking of a former
owner of land for six or seven years said:
"Hence, to say nothing of personal capacity or
of study or practice, there was shown on his part
no opportunity to observe, and no actual obser-
vation, in the locality of the land which fitted
him to speak of its value. The witness tiad no
special knowledge of values which, being im-
parted to the jurors, could aid them in the dis-
charge of their duty." Walsh v. Board of Edu-
cation of Newark, 73 N. J. Law, 647, 64 Atl.
108&
The witness must have some special knowl-
edge of the subject about which he Is called
upon to express an opinion. Crosby v. City of
Boat Orange, 84 N. J. Law, 708, 710, 87 Atl.
341; Elvlns t. Delaware, etc., Tel. Ga, 63
N. J. Lew, 247, 43 Atl. 903, 76 Am. St. Rep.
217.
A witness to be an expert must have more
than a general knowledge of the subject un-
der Investigation. Authorities from other
jurisdictions applying a different rule are not
binding on this court It Is sufficient to say,
in the language of Mr, Justice Dixon:
That, if in other states a more liberal rule is
applied respecting the opinion of witnesses, as to
the valae of real estate, "the worthlessness of
such testimony is hardly a stronger reason for
its rejection than the practically limitless amount
of it that might be produced." I>aing ▼. United
New Jersey R. R., etc, Co., 64 N. J. Law, 578,
25 AU. 409, 33 Am. St. Rep. 682.
In our reports the rule has been applied In
the following Illustrative instances to this
opinion of witnesses on the valuation and
damage to land: A witness has qualified as
an expert who has a knowledge of sales of
lots and portions of lands similar to and In
the inunedlate neighborhood of the con-
demned land. The land so sold was within a
radius of two miles from the land in question
and within a period of three years from the
date of the giving of the testimony. Brown
▼. New Jersey Short Line B. B. Co., 76 N. J.
Law, 797, 71 Atl. 271.
A farmer is not an expert as to the dam-
age done to a farm by the building of a rail-
road other than for farming purposes.
Pennsylvania R. R. Co. v. Root, 53 N. J.
Law, 263, 21 Atl. 285. Real estate agents re-
siding six miles distaitf from the property
who had nothing to do with property In the
Tldutty or anywhere near it are not on the
question of rents. Haulenbeck v. Cronkright,
23 N. 3. E}q. 413, affirmed 25 N. J. Eq. 613.
Ordinary real estate agent is not (is to the
value of the private title in a strip of land
lying on a public highway, separated by the
street from private property, nor as to dam-
ages done to the owner of the abutting prop-
erty, by appropriating that strip to railroad
purposes. Laing v. United N. J. R. R., eta,
Co., 54 N. J. Law, 676, 25 Atl. 409, 33 Am. St
Rep. 682. Heal estate agent not an expert to
give his opinion on difference between value
of the property either to rent or sell estimat-
ed with the railroad in the street and the
value without the railroad cntompson v.
Pennsylvania B. B. Co., 51 N. J. I^w, 42, 15
AtL 833), not gbnTfij because witness resided
on the property or because the witness owned
and resided upon adjoining property (UUey
V. Camden, etc., Ry. Co., 70 N. J. Law, 289,
67 Atl. 445). A real estate agent is not an
expert as to the amount of depreciation caus-
ed by the existence of a sanitary sewer run-
ning through the premises. Morrell v. Prels-
kel, 74 Atl. 994. Nor is a real estate agent
an expert who is familiar with prices of
property in the neighborhood as to the value
of laud after the construction of a tunnel
with Its present value. Pennsylvania B. B.
Co. V. Schworz, 75 N. J. Law, 801, 70 AU. 134.
The fact that a real estate agent on one
occasion was able to lease a farm having a
water supply in preference to one which had
not affords no basis for an opinion concern-
ing the difference In rental value between the
two. Crosby v. City of Eaat Orange, 84 N.
J. Law, 710, 87 AtL 34L
Knowledge of real estate values in the
locality does not qualify witness to testify
to the diminution in value of property by
reason of the destructldn of shade trees
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BOSS T. COMMJaaiOJSVBS OF JPALISADXS INTEBSTATB PARK
63
standing In the hlgbway In tctmt of it (Bar-
rough V. New Jersey Gas. Co., 88 N. J. Law,
643, 06 Atl. 885), or such knowledge In a
township (Van Ness v. New York, etc, TeL
Co., 78 N. J. Law, 511, 74 AtL 456). Valua-
tion of adjoining railroad terminals is a bas-
ts of quallflcatlon of members of Board of
Assessors making the valuation. Long Dock
Ck>. r. State Board of Assessors, 89 N. J. Law,
108, 87 Atl. 800. An experienced real estate
man of large experience not an expert oa the
question as to the fair value of the ciHinec-
tion and use of a sewer condemned. Park
Land Corporation v. Mayor, etc., of Balti-
more, 128 Md. 611, 88 AtL 167. A witness
with some knowledge of real estate is not an
expert on the value of shade trees. Elvlas
V. Delaware, etc, Tel. Co., 63 N. J. Law, 243,
43 AU. 803, 76 Am. St. Rep. 217.
From the mle thus stated and its ai^li-
cation made by our courts It was not error
for the trial conrt to exclude the ofi^nlon of
these witnesses on the value of the land un-
der condemnation.
[4] Nor was it error to admit the opinicxi
of the witness William O. Allison. He had
bought and sold property in the borough of
Ft. liCe of the same peculiar quality. He
quallfled as an expert under the cases above
dted. Brown v. New Jersey Short Line R.
B. Co., 76 N. J. Law, 787, 71 Atl. 271. Nor
was it error to exclude evidence as to the
value of the ataae in place, under the case of
Manda v. Delaware, etc., R. R. Co., 88 N. J.
I^w, 327, 88 AU. 467. Xhe stone in place is
a part of the land. It cannot be valued sep-
arately and apart from the land. To what
extent, if any, the value of the land is en-
hanced by the stone may be shown. The
value of the land as stone land suitable for
quarrying is a proper subject of considera-
tion both by the witnesses and the Jury in
fixing the cmoimt of Just compensation to be
awarded, but not the value of the stone sep-
arately and apart from the laud. The value
of the land is not measured by such facts.
The stone la a component part of the land.
Reading, etc., R. R. Ck). v. Balthaser, 110 Pa.
472, 482. 13 Atl. 294, 126 Pa. 1, 10. 17 Atl.
518; Norfolk, etc, Ry. Co. v. Davis. 58 W.
Va. 020, 620. 52 a E. 724; St Louis, etc, Ry.
Co. V. Cartan Real Estate Co., 204 Ma 665,
575, 103 S. W. 518; Gardner v. Inhabitants
of Brookllne, 127 Mass. 358; Trl-State Tel.,
etc., Co. V. Cosgrlflf, 18 N. D. 771, 124 N. W.
75, 26 L. R. A. (N. S.) 1171; 10 R. C. L. p.
128, I 112; Lewis on Eminent Domain (3d
Ed.) pars. 724, 725; 15 Cyc 758. The
cases cited as supporting a different principle
are not in point Dewey v. Great Lakes
Coal Co., 236 Pa. 488, 500, 84 Atl. 813; Cole
v. EUwood Power Co., 216 Pa. 283, 290, 65
Atl. 678; Seattle, etc, R. R. Co. v. Roeder,
30 Wash. 244, 70 Pac 498, 94 Am. St Rep.
864. Nor was it error to admit the testi-
mony of Frank Clark whether the stone in
question would make concrete.
[t, <] So it was not error to admit in evi-
dence the prices paid by the condemning par-
ty for s],mllar lands in the vicinity. Curley
V. Mayor, etc, Jersey City, 83 N. J. Law,
760, 85 AU. 197, 43 L. B. A. (N. S.) 985; Had-
ley V. Freeholders of Passaic 73 N. J. Law,
187, 62 AO. 1132. So it was not error to ex-
clude the pordiase price of the Carpenter
tract It was not substantially similar land
or of the same peculiar quality. The pur-
chase price included the quarry, machinery,
and good will of a quarry plant In operation.
Manda v. Delaware, etc., R. R. Co., 88 N. J.
Law, 327, 08 Atl. 467; Brown v. New Jersey
Short Line R. B. Co., 76 N. J. Iaw, 798. 71
AU. 271; Manda t. City of EJast Orange, 82
N. J. Law, 687, 82 Atl 869, Ann. Cas. 1813D.
581. Nor was it error to admit the opinion
of Dr. H«iry B. Kuemmel, state geologist of
New Jersey, with regard to the danger of
stones falling from the cliffs along the Pali-
sades at the Robs property. Nor was it error
on cross-examlnaUon to permit the witness
Charles W. Stanlsforth to testify as to the
speciflcattons of the dock department of New
York City. It was admissible to test his
knowledge of the various spedflcaUons which
he said he had prepared. Nor was it error
to exclude Joseph E. Snell from answering
the quesUon, "In your opinion does the tak-
ing of the 3.6 acres from Mr. Ross' property
injure the remaining?" when the witness was
permitted to answer the following quesUon:
"Does the taking of the 3.6 acres render this
property less available for commercial pur-
poses?" Under the third ground of appeal
to the witness Ii^ederlck Dunham this ques-
tion was asked: "Do you know whether the
railroad has been laid out further up the
river?" This was overruled on the ground
that the best evidence as to whether a rail-
road had been laid out would be the papers,
if any, in the secretary of state's office. This
was not error, but under this bead counsel
for the appellants argued at some length that
the trial court excluded relevant evidence
tending to show the adaptability of the land
for commercial purposes. It is sufficient to
say, in answer to this, that the record, so far
as we have been able to find, does not in
fact show any sudi evidence excluded by the
trial court Nor do we find any error iu
the charge of the court to which error is
assigned. This is contained in the thirty-
first to the thirty-eighth grounds of appeal.
The precise polht of alleged error In the
charge of the trial court Is not made clear,
and it hardly needs any extended discussion.
The charge Is in conformity to the cases in
our reports on the points excepted to. Pack-
ard V. Bergen Neck Ry. Co., 54 N. J. Law,
553, 25 Atl. 506; Manda v. City of Orange,
82 N. J. Law, 686, 82 Atl. 868, Ann. Cas.
1813D, 581 ; Manda v. Delaware, etc., B. B.
Co.. 89 N. J. Law, 327, 88 AU. 467.
[7) The charge of the court that the Jury
were obliged to value the land in the condi-
tion in which it was on the 12th day of Jan-
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64
101 ATLANTIC REPORTER
(N.J.
uary, 1914, wblch was the date of the flUng
of the petition and order thereon fixing the
time and place for commencing the condem-
nation proceedings was correct, aa required
by statute (P. L. 1900, p. 81, | 6; 2 C!omp. St
p. 2184, { 6). Manda r. Delaware, etc., R. R.
Co.. 89 N. J. Law, 327, 98 Atl. 46T.
Finding no error in the record, the Judg-
ment of the Bergen county circuit court is
afflrmed, with costs.
(90 N. J. Law, SE3)
ATLANTIC COAST ELECTRIC RX. CO. v.
STATE BOARD OF TAXES AND AS-
SESSMENTS.
(Supreme (Tourt of New Jersey. June 6, 1917.)
Taxation <8=>394— Corposation Fbanchisx
Tax — Statute.
Acts 1906 (P. L. p. 644) requiring an annual
franchise tax upon the annual gross receipts of
any street railway corporation or upon such pro-
portion of such gross receipts as the length of
Its line in this state upon any street, etc., bears
to the length of its whole line, was intended to
impose a franchise tax upon the total of the
groes receipts of such companies, including re-
ceipts from current and power sold, in accord-
ance with its precise language, and not upon
gross receipts for transportation, as was the
rule under P. L. 1903, p. 232, since the act of
1906 was intended to provide a specitic scheme
for the taxation of street railway corporations
and to differentiate such corporations from those
liable to a franchise tax under the act of 1903.
[Ed. Note.— For other cases, see Taxation,
Cent Dig. I 669.]
Certiorari by the Atlantic Cioast Electrio
Railway Company against the State Board
of Taxes and Assessments to review the
assessment of a franchise tax. Tax affirmed.
Argued February term, 1917, before
SWATZB, MINTURN, and KALISCH, JJ.
Durand, Ivlns & Carton, of Asbury Park,
for prosecutor. John W. Wescott Atty. Gen.,
for the State.
SWAYZE, J. The prosecutor was taxed
under the act of 1906 (P. L. 644) upon gross
receipts amounting to $363,742.35. Of this
amount $67,752.55 was receipts from current
and power delivered to the Atlantic Coast
Electric Light Ck>mpany. The prosecutor
claims that this last amount should not be
Included in the gross receipts upon which the
franchise tax is to be estimated. The lan-
guage of the statute plainly requires an an-
nual franchise tax upon the annual gross
receipts of any street railway corporation or
upon such proportion of such gross rec^pts
as the length of its line in this state upon
any street highway, road, lane, or other
public place bears to the length of Its whole
line. The argument of the prosecutor is that
although this language is clear, the tax
should be computed only upon the gross re-
ceipts for transportation, because this was
the rule under the act of 1903 (P. L. 232).
The answer Is that the act of 1906 was in-
tended to provide a specific scheme for the
taxation of the street railway corporations
and to differentiate such corporations from
corporations liable to the franchise tax under
the act of 1903. The Legislature had before
them the latter act and carefully omitted
the words indicating that the tax should be
calculated on receipts for transportation.
No inference can be drawn from this omission
except that the Legislature meant that the
tax should be imposed upon the total of the
gross receipts in accordance with its precise
language, which cannot be explained away by
a mere guess at the possible intent to the con-
trary. This Is borne out by the fact that un-
der the act of 19(X) (page 602), which was the
original franchise tax act for corporations of
this character, a distinction was made be-
tween oil and pipe line corporations whldi
were required to report gross receipts for
transportatlcm of oil and petroleum, and oth-
er corporations whldi were required only
to report gross receipts. The act of 1900
was before this court in Paterson ft Passaic
Gas Company v. Board of Assessors, 69 N. J.
Law, 116, 54 Atl. 246, and It was held that
gross receipts included all gross receipts.
The tax is affirmed, with coats.
07 N. 3. Bq. 30})
In pe CHRISTIE'S ESTATE. (No. 8679.)
(Ehrerogative Court of New Jersey. April 30,
1917.)
1. Taxation «=>895(6) — iNHKarrANcs Tax —
Right Taxed— Statute.
The tax imposed by Transfer of Property
Tax Act AprU 20, 1909 (P. L. p. 325), is on the
right of inheritance, on the beneficiary for the
privilege of succeeding to the property, and is
measured by the clear market value of the prop-
erty transferred, ascertained by deducting from
the gross value of the residue all lawful charges,
exemptions, and costs of winding up the estate.
[Ed. Note.— For other cases, see Taxation,
Cent Dig. { 1719.]
2. Statutes iS=»226 — Adoption fbom Otheb
State— Pbesumption.
Where a statute was copied from the stat-
ute of another state, it will be presumed that
the judicial construction given to the statute in
such other state was adopted by the Legislature
when it adopted the statute.
[Ed. Note.— For other cases, see Statutes,
<3ent Dig. { S07.1
3. Taxation «=s>895(7) — Inhebitancb and
Tkansfeb Taxes — Sttkohaboino Assess-
ment WITH Teustee's Commissions — Stat-
ute.
Under Transfer of Property Tax Act f 4,
providing that whenever a decedent appomta
executors or trustees and devises property to
them in lieu of their commissions or allowances
whidi otherwise would be liable to the tax, or
appoints them his residuary legatees, and the
bequest devise, or residuary legacy exceeds what
would be reasonable compensation for their
services, the excess shall be liable to the tax, the
commissions of testamentary trustees diminish
the inheritance, and are to be taken into con-
sideration and allowed In fixing the value of the
succession, and at the proper time the
ezsSoT other case* (ee sams tqplc and KBY-NUMBER In all Ka7-Numb«red Digest* and Indocai
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N.J^
IX RE CHRISTIE'S ESTATS
65
ment of the tax maj be surcharged with the
trustee's commissions.
[Ed. Note.— For other cases, see Taxation,
Cent. Dif. { 1719.]
4. Taxation $=>895(7) — Inrkbitancb and
TSANBTEB TaXBS — PHACTICK OF CoMPTB01>
LEB'S DKPAKTIOENT — AlXOWANCK 0¥ COBTB
OF WlROINQ UF ESTATK8.
The practice in the comptroUer'a department
4^ approximating and allowing in the assess-
ment of inheritance taxes the costs of winding
up estates is unwarranted in law, it being the
comptroller's duty to await the final judgment
of the proper tribunal.
[Ed. Note.— For other cases, see Taxation,
Cent. Dig. i 1719.]
In the matter of tbe estate of Robert
Christie, deceased. From an appraisement
of property transferred by decedent's will
and an assessment thereon of a tax under
the Transfer of Property Tax Act of 1909,
an appeal Is taken. Appeal dismissed.
Herbert M. Lloyd, of New York Caty, for
api)ellant8. Herbert Boggs, Asst. Atty. Gen.,
for the State.
BACKBS, Vice Ordinary. Tbls Is an ap-
peal from an appraisement of property trans-
ferred by the last will and testament of Rob-
ert Christie, deceased, and an assessment
thereon of a tax under the Transfer of Prop-
erty Tax Act of 1909 (P. li. 326).
The decedent died May 12, 1915, a resi-
dent of Montdair, leaving a last will and
testament, wherein, after pecuniary legacies,
he bequeathed the rest of his estate to his
executors in trust, to pay one-third of the net
Income to bis wife for life, remainder over
absolutely to his next of kin and heirs at law
her surviving, and the net income of the re-
maining two-tblrds to his wife so long as she
remained his widow, with similar remain-
der over upon remarriage or death. The
taxable Interests were appraised at $60,-
4t9.17, of which $44,386.20 was apportioned
to the residuary estate. The contention of
the appellants — the executors and trustees —
is that the latter sum should be reduced by
6 per cent, the amount of commission they
estimate will be allowed to them for their
services as trustees.
[1 , 2] The tax imposed by the act is on the
right of inheritance — on the beneficiary — for
the privilege of succeeding to the property
{Sawtcr ▼. Shoenthal, 83 N. J. Law, 499. 83
Atl. 1004; Carr v. Edwards, 84 N. J. Law,
667, 87 Atl. 132), and is measured by the
"dear market value" of the property trans-
ferred ; ascertained by deducting from tbe
gross value of the residue all lawful charges,
exemptions and costs of winding up the es-
tate. As to remuneration to trustees for ad-
ministering trusts created by will, inasmuch
as the office and duties are separate and dis-
tinct from those of executors, and as statu-
tory commissions are allowed in each, al-
though the same x>er8on may have acted in
both capacities (Pitney v. Everson, 42 N. J.
Eq. 3«l, 7 AtL 860), if I were to fdlow my
own opinion, my Judgment would be that
they were to be paid out of tbe estate for
whose benefit the services were rendered.
But the New York courts decided otherwise,
and have held that the commissions of testa-
mentary trustees diminish the inheritance,
and are to be taken into consideration and
allowed in fixing the value of tbe succession,
and as our Transfer of Tax Act was copied
from the statute of that state, it will be pre-
sumed that the Judicial construction there
given to the latter was adopted by our Leg-
islature. De Raismes v. De Raismes, 70 N.
J. Law, 15, 56 Atl. 170; Oay v. Edwards, 84
N. J. Law. 221, 86 Atl. 548. In the Matter
of Gihon, 64 App. Dlv. 504, 68 N. Y. Supp.
381, 72 N. Y. Supp. 1104, the trust was similar
to the one in this case, and on an appeal
from an assessment which included commis-
sions to which the executors would be en-
titled as trustees, the surrogate held that:
"The right to commissions as trustees is statu-
tory, and cannot be taken away except for mis-
conduct in office, or as a penalty for relinquish-
ing office. They are a legal and preferential
charge against the trust estate. The property
passes to the beneficiaries subject to their pay-
ment. Bearing in mind the cardinal principle
that the transfer tax is to be measured by tbe
amount the legatee is legally entitled to re-
ceive, and that the law permits the transfer to
legatees through the medium of trusts, I can see
no reason why the rule which permits tlie com-
missions of executors and administrators to be
deducted should not apply equally as well to
commissions of trustees.'
Tbe Appellate Division of the Supreme
Court affirmed the Judgment on the opinion
of tbe surrogate, and on an appeal to the
Court of Appeals, Judge CuUen, speaking for
the court, said:
"There is a distinction that may be made be-
tween the commissions of executors or adminis-
trators whose appointment is an absolute essen-
tial to the lawful liquidation of an estate and
those of trustees who are appointed solely for
the protection of the property of the beneficiary,
and it may be urged that such latter commissions
should be considered as an expenditure for his
benefit. Whatever force there may be in this
view, we think the deduction of the trustees'
commissions is justified and required by section
227 of tbe Tax Law itself, which prescribes that
any legacy or devise to trustees in excess of their
commissions allowed by law shall be taxable,
thus necessarily implying that legal commissions
shall be exempt." Matter of Gihon, 169 N, Y.
443, 62 N. E. 561.
Section 227 (Transfer Tax Law [Laws 1896,
c. 908]) referred to corresponds with section
4 of our act (4 Comp. St. 1910, p. 5305, i 540).
See, also, Matter of SllUman, 79 App. Dlv.
98, 80 N. Y. Supp. 336. The Gihon Case was
decided In 1902, and construed the act of
1896. ChrysUe on Inh. Tax. 437.
The Attorney General argues that this
presumption should not be indulged, because
the commissions of testamentary trustees are
r^ulated in New York by statute, whereas
in this state they are fixed by the courts.
Section 2753 of the Code of Civil Procedure
101A.-6
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66
101 ATIiANTIO RBPOBTBB
(N.J.
directs that surrogates "on Che settlement
of the account of any executor, adminis-
trator, guardian or testamentary trustee, the
surrogate * ♦ • must allow to such ex-
ecutor, administrator, guardian or testamen-
tary trustee for bis services In such official
capacity • • ♦ for receiving and paying
out all sums of money • • • " at the rate
of 5, 2%, and 1 per cent, according to the
amount. Section 128 of our Orphans' Court
Act (C. S. 3859) provides that "the allowance
of commissions to executors, administrators,
guardians or trustees shall be made with
reference to their actual pains, trouble and
risk in settling such estate, rather than In
respect to the quantum of estate," and In
the next section limits the rate by a sliding
scale. As these enactments simply change
the rule of the common law by allowing a
reward to executors and trustees (Warbass
T. Armstrong, 10 N. J. Eq. 263), I am unable
to perceive how the difference In methods of
arriving at the amount of compensation can
Influence In the least the application of the
established rule of construction that the
adoption of a statute of a sister state la pre-
sumed to have been had with reference to the
previous construction given to such statute
by the court of such state, or how it, in any
manner, affects the principle Involved and
the rule laid down la the cases last dted.
In the amount of the allowances there is, so
far as they may reckon In the assessment, as
much uncertainty In the one Instance as in
the other. In the one the problem encounter-
ed is what will be the sums of the corpus
passing from the executors to the trustees,
and of the accumulations pending the trust,
to which the rate applies ; and in the other,
what amount will the court fix? It must not
be overlooked that assessments are made un-
der the respective statutes forthwith after
probate, and at a time when these items are
wholly problematical and necessarily must be
adjusted supplementally. For this, purpose
New Xork has correctional facilities, as ,we
have. There the surrogate may modify the
assessment from time to time, as the occasion
requires. Matter of Sllllman, supra. Here
that function is vested in the comptroller by
section 15. Under section 2 of our act, the
tax assessed upon remainders is not payable
until the remainderman becomes entitled to
the actual possession or enjoyment of the
property, and under section 15 the comptrol-
ler may refimd any tax erroneously paid, pro-
vided that application therefor be made with-
in two years from the date of payment
These remedial provisions obviously furnish
ample opportunity to trustees to have their
compensation settled, upon accounting, and
the assessments revised.
[3] Holding, as I do, that at the proper
time the assessment may lie surcharged with
the trustees' commissions, leads to the con-
clusion that the appellants were premature
In their demands upon the comptroller, and
that their appeal must be dismissed.
[4] A practice prevails In the comptroller's
department of approximating, and allowing
in the assessment, the cost of winding up es-
tates, which coarse the appellants contend
should have been pursued in this instance.
All that need be said is that the practice,
notwithstanding Its merits in accelerating
settlements, is not warranted in law, and
resting, as it does, wholly upon conjecture
and the merest guesswork, must often work
Inequities to the state or the party assessed.
Strictly speaking, the department has no
more the right to anticipate the probate
court's action than it has to adjust a dalm
against an estate for nnllquldated damages,
which I understand it never undertakes to da
In either event, it is the duty of the comp-
troller to await the final Judgment of the
proper tribunal.
The appeal will be dismissed, with costs.
(ST N. J. Bq. 2t7)
In re I>rrrMAN*S EX-RS. (No. 3690.)
(Prerogative Court of New Jersey. May 10,
1917.)
(BvUabu» hv tlie Court.)
h Taxation «=3900(5)— iNHKarrAWCB Tax—
Appeai. to Obdinaby.
The appeal to the ordinary from an nRsess-
ment of a transfer tax, under the Inheritance
Transfer Tax Act (Act AprU 20, 1909 [P. L.
p. 334]) I 18, is an appeal to the Prerogative
Court, because the ordinary is the judge of that
court, and the proceedings are in that court
[Ed. Note. — For other cases, see Taxation,
Cent Dig. !| 1722, 1723.]
2. JUDQEs iS=>25(l)— New Jbrset— Jdbisdic-
TioN OF Vice Okdimaet.
Although the office of vice ordinary is the
creature of statute, the jurisdiction of the vice
ordinaries arises from reference to them of
matters by the ordinary in virtue of his inher-
ent powers, and their jurisdiction is complete
by delegation from him.
[Ed. Note. — For other cases, see Judges, Cent.
Dig. !§ 99, 105. 105%, 106.]
3. Taxation «=»900(5)— iNHEBrrANCE Tax—
AprEAii TO Obdinaby— Vauditt of Stat-
ute.
The giving of an appeal to the ordinary in
the inheritance transfer tax act is a valid legis-
lative enactment
[Ed. Note.— For other coses, see Taxation,
Cent Dig. H 1722, 1723.]
4. Appeal and Ebbob «=»1— "Appeax."
Au "appeal" is a judicial proceeding cogniz-
able in a court
[Ed. Note.— For other cases, see Appeal and
Error, Cent Dig. %% 1-4.
For other definitions, see Words and Phrases,
First and Second Series, Appeal.]
6. Appbai. to Obdinabt.
Sembie, Tliat the appeal to the ordinary
provided for in Inheritance Transfer Tax Act,
§ 18, makes him a statutory tribunal, and that
an appeal from a decree of the Prerogative
Court m a case under that act is reviewable by
certiorari in the Supreme Court instead of by
appeal to the Court of Errors and Appeals.
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IN BE DITTMAN'S SX'BS
67
Aiipeal by fbe execatora of Henry I. Dltb-
man, deceased, to review the inheritance tax
on property passhig nnder the wllL Jmto-
dlctlonal question detecmlned, and, on ap-
pUcatUm of counsel, a day to be designated
for hearing the facts.
MaxImllUan T. Rosenberg, of Jersey City,
for appellant Herbert Boggs, Asst Atty.
Gen., for the State.
LEWIS, Vice Ordinary. [1] rrom an In-
heritance transfer tax apon the estate pass-
ing under the will of the late Henry I. Dltt-
man, deceased, his executors appeal to the
ordinary, under section 18 of the Inheritance
Transfer Tax Act (P. L. 1909, p. 334). That
section provides that any person or corpo-
ration dissatisfied with an appraisement or
assessment under the act may appeal there-
from to the ordinary.
The appellants, Dittman's executors, con-
tend that constltutlonaUy they could not be
compelled to appeal to the ordinary; that
they could have recourse to a writ of certio-
rari to review the assessment of which they
complain ; that the ordinary is an official to
whom they are permitted to resort as an
un^ire by consent of the state.
The respondent, the comptroller of the
treasury, contends that on this appeal the
ordinary does not sit as sndi, exercising the
powers and Jurisdiction of the ordinary or
of the Prerogative Court ; that the appeal is
not to the Prerogative Court, and that the
petition is Improperly so entitled; and also
that the ordinary cannot refer the matter to
a vice ordinary. These contentions are un-
sound. The ordinary is the Judge of the
Prerogative Court, and consequently the
court itself. The Constitution so provides
(article 6, } 4, par. 2).
In England in former times the ordinary
and the Judge of the Prerogative Court were
different functionaries. In 2 Bl. Com. 609,
the learned author says:
"If all the goods of the deceased lie within
the same jurigdictioD, a probate before the ordi-
aary, or an administration granted by him, are
the only proper ones ; but if the deceased had
bona notabilia, or chattels to the value of a
hundred Bhilllngs, in two distinct dioceses or
jurisdictions, then the will must be proved,
or administration taken out, before the metro-
politan of the province, by way of special pre-
rogative, whence the courts where the validity
of such wills is tried, and the offices where they
are registered, are called the Prerogative Courts,
and prerogative offices."
And in 3 Bl. Oom. 65:
"The Prerogative Court was established for
the trial of all testamentary causes, where the
deceased hath left bona notabilia within two
different dioceses. In which cases the probate
of wills belongs, as we have formerly seen, to
the archbishop of the province, by way of spe-
cial prerogative. And all the causes relating
to the wills, administrations, or legacies of such
persons are originally cognizable herein, before
a judge appointed by the archbishop, called the
judge of the Prerogative Court."
But In our state the ordinary and Judge
of the Pr^o^tlve Conrt are^ and always
have been, one and the same, and their pow-
ers— that Is, their Jurisdictions — have been
blended also. Tills is expressly stated by
Mr. Justice Van Syekel in his concurring
opinion in Harris v. Vanderveer's Ex'r, 21 N.
J. Eq. 424, at page 447, where he says that:
"The power of the ordinary and the preroga-
tive Court, which existed separately under the
English system, have been blended here."
The blending of the ordinary and Judge of
the Prerogative Court into one and the same
functionary, and also their powers Into one
Jurisdiction, in our state resulted from the
fact that such of the ecclesiastical Jurisdic-
tion In England, which was transmitted to
the colony, was confided to the Governor,
whose Jurisdiction was, ef course, state-wide.
Grift. U B. (N. J.) 1185, where, in note 1,
the learned author states:
"The jurisdiction of the governor as the ordi-
nary of New Jersey, before the Revolution and
since, extended throughout the state, and a
will, administration, or guardianship proved
or granted by himself or a surrogate (and he ap-
pointed as many as be chose to do) was valid,
without r^ard to the place where the goods lay.
Hence he possessed the prerogative powers of
the ecclesiastical jurisdiction m these particu-
lars."
The state, and the colony before It, was
divided into counties, and the Jurisdiction of
the ordinary — there never has been but one
at the same time — did, and does, run through
all the counties. In colonial times, and later,
the surrogates were appointed by the ordi-
nary as his deputies, and they had Jurisdic-
tion in all cases submitted to them unless
some special restrictions were Inserted In
their commissions. As already remarked, the
doctrine of bona notabilia never bad any
place here. In re Coursen's Will, 4 N. J.
Eq. 406, 413. And, although surrogates were
later made county officers with probate Ju-
risdiction limited to their respective counties,
that in no wise affects the Jurisdiction of the
ordinary.
The first act of the Legislature concerning
the ordinary and the Prerogative Court,
passed December 16, 1784 (Pat. Laws, 59),
expressly enacted in section 2 that:
"For the more regular hearing and determin-
ing of all causes, cognizable before the ordi
nary, he shall statedly bold a Prerogativi
Court," etc.
See the present act, entitled:
"An act respecting the Prerogative Court aivd
the power and authority of the ordinary (Revi-
sion of 1900)." Comp. Stat. p. 1722, i 77 et
seq.
The first section defines the authority of
the ordinary as to granting probate of wills,
etc., and tbe tenth provides that It shall be
the duty of the register of the Prerogative
Court to record all wills, etc. Ttmt the ordi-
nary holds a court in granting probate is
beyond question. The function is Judicial,
and therefore must be exercised In a court.
Even the surrogate holds a court when pro-
bating a wiU. Mellor v. Kalghn (Err. &
App.) 99 Atl. 207.
[2] The contenti(oa that tha ordinary la
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68
101 ATLAHma KSPOBXKB
(N.J.
wlthont power to tefer tbe matter at bar to
a vice ordinary is also unsound. Tbe con-
tention la tliat because tbe appeal is given
in terms to the ordinary, and that no power
to refer it is given in the same statute, the
right does not exist Ttils is fallacious, for
by act of 1913 (P. U p. 81) the ordinary Is
empowered to refer any matter pending in
the Prerogative Court to a vice ordinary for
bearing and advloe, but the Jurisdiction
which the vice ordinaries exercise, upon ref-
erence to them, is not derived from this stat-
ute, but by delegation from the ordinary by
virtue of bis inherent powers.
In an exhaustive review of the powers of
the vice chancellors (whose office was like-
wise created by statute), In Re Thompson, 85
N. J. Eq. 221, 96 Atl. 102, CSianceUor Walker,
at page 257, holds that:
"Their jurisdiction is complete by delegation
from the cliancellor under the authority inhering
in his general power derived from the High
Court of Chancery in England and devolved
upon our Court of Chancery by the ordinances
of Lord Combury and Governor Franltlin, and
ratified by tha Constitutions of 1776 and 1844."
And at page 261 of 85 N. J. Eq., 96 Atl.
102, he holds that a perfect analogy exists
with reference to the Prerogative Court, in
which the Legislature has authorized the ap-
pointment of vice ordinaries, the ancient of-
flce of surrogate, as deputy or assistant to
the ordinary, being the source of power in
the vice ordinaries.
It is to be observed that in the act creat-
ing the office of vice ordinary (P. L. 1913, p.
81) the Legislature lias provided that the or-
dinary may refer to any vice ordinary any
cause or other matter which at any time may
be pending in the Prerogative Court, to bear
the same for the ordinary and report thereon
to him and advise what order or decree
should be made therein. Now, if the ordi-
nary is a functionary apart from himself as
the judge of the Prerogative Court, It is
singular that the lawmaking body did not
bestow the power to refer upon the judge of
the Prerogative Court, the wily functionary
Who in such case could constitutionally exer-
cise It, Instead of casting it upon the ordina-
ry, who could not lawfully do so. In this
we have legislative Interpretation to the ef-
fect that the ordinary and judge of the Pre-
rogative Court, and likewise their Jurisdic-
tion, are one and the same.
Enough has been shown, I think, to demon-
strate that the act under which this assess-
ment was made, and which gives an appeal
to the ordinary, treats the ordinary and the
Prerogative Court as one and the same — a
single Judicial entity.
[3] The giving of an appeal to the ordi-
nary in the inheritance transfer tax act Is a
valid legislative enactment
It may be that certiorari in the Supreme
Court is a method for the review of an ap-
praisement or tax made or levied under the
inheritance transfer tax act, but considering
that an appeal has been provided to the or-
dinary, the Supreme Court would probably
deny the allocatur on such a writ tiefore, or
even after, the time for appeal to the ordi-
nary had expired, as the allowance of an al-
locatur is discretionary. Florenzie v. East
Orange, 88 N. X Law, 438, 97 Aa 260.
In Re Prudential Ins. Co. of America, 82
N. J. Bq. 335, 88 Atl. 970, the Court of Er-
rors and Appeals held that the statutory
scheme providing for tbe condemnation of
the capital stock of a stock lUe insurance
company for certain purposes mentioned was
cast by the Legislature upon the chancellor,
or the Court of Chancery, a distinction which,
if it exists, was of no practical moment to
the motion then l>efore the Court of Errors
and Appeals, and at page 339 that the statu-
tory proceeding before that court was review-
able by certiorari only, regardless of the fact
that one of the agencies that took part in It
was the "Court of Chancery."
I hold that the proceeding before me is one
In the Prerogative Court, and one which the
ordinary could lawfully refer by virtue of
the act of 1913 (P. L. p. 81) empowering him
to refer to any vice ordinary any cause or
other matter which at any time might be
pending in the Prerogative Court
Now, the act of 1909 (P. L. pw 325) pro-
vides for taxing the transfer of property of
decedents by devise, descent, etc, and section
18, as seen, allows any one dissatisfied with
an a^essment of such taxes to appeal to tbe
ordinary. The only question raised by such
an appeal is as to whether or not the assess-
ment is excessive, and the review of such a
question may be devolved upon a court of ap-
peal. Florenzie v. East Orange, 88 N. J.
Law, 438, 97 Atl. 260. There an appeal from
an assessment for l>eneflts for a municipal
improvement was confided to the circuit
court, and tbe jurisdiction tlms given was
upheld. Here an appeal from the assess-
ment of a property transfer tax is confided
to the ordinary of the Prerogative Court
The principle is tbe same. The grant of ap-
pellate jurisdictloa to this court in tax trans-
fer matters Is as valid as that to the circuit
courts in assessments for municipal improve-
ments.
[4] The reason that legislation establish-
ing special statutory tribunals for tbe hear-
ing and determining of appeals theretofore
cognizable only In the Supreme Court on cer-
tiorari is valid is because a review of the
decision of the special tribunal is removable
into the Supreme Court by certiorari, and
that court's jurisdiction on certiorari Is there-
fore not Impaired. Certiorari in such cases
Is in tbe nature of an appeal, and an appeal
is a Judicial proceeding cognizable in a court
[i] It would appear that tbe decree of the
Prerogative Court on these appeals Is re-
viewable by certiorari in the 'Supreme Court,
instead of by appeal to the Court of ESrrors
and Appeals. In re Prudential Ins. Oo. of
America, 82 N. J. Eq. 335, 339, 88 AtL 970;
Florenzie v. East Orange, 88 N. J. Law, 4^
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MATEREA v. ERIE R. CO.
69
440, 97 Atl. 200. Thla qnestlon Is suggested
In the briefs, but Is not l>efore me for deci-
sion.
The jurisdictional qnestkm having been de-
termined, I will, npon application of counsel,
designate a day tor hearing the facts.
(to N. J. Law, tfT)
MATEREA t. ERIE R. CO.
(Supreme Court of New Jersey. June 0,
1917.)
(Sj/lldbiu iv the Court.)
1. Trux «=»139(1)— Jdbt— Wkioht of Testi-
VONT.
It is for the jury to say what weight shall
be g:iven to the testimony of a witness having
an opportunity to hear, standing at or near the
crossing where the accident occurred, and who
testifies that he did not hear the blowing of a
whistle or the ringing of a Uell, in a grade cross-
ing accident case.
[Ed. Note.— For other cases, see Trial, Cent
Dig. §1 332, S33, 83S-341.]
2. Railroads «=»350(1) — Oradk Cbossiwq
Accident— Neqliobnc* and CoNTmBUTORT
Neolioencb— Question for Jury.
It was not error in this case to refuse to
direct a verdict in favor of the defendant on
die ground there was no proof of negligence
on the part of the defendant or because the de-
cedent was guilty of contributory negligence.
They were both jury questions. Holmes v.
Pennsylvania R. R. Co., 74 N. J. Law, 469, 66
Atl. 412, 12 Ann. Cas. 1031, Weiss v. Central
R. R. Co., 76 N. J. Law, 348, 69 Atl. 1087,
and Howe v. Northern R. R. Co., 78 N. J. Law,
683, 76 Atl. 979, distinguished.
[Ed. Note.— For other cases, see Railroads,
Cent Dig. { 1152.]
Ajipeal from Circuit Court, Hudson County.
Action by Mary Materka, administratrix,
etc., against the Brie Railroad Company.
Judgment for plaintiff, and defendant ap-
peals. Affirmed.
Argued November term, 1916, before
TRHNCHARD and BLACK, JJ.
Collins & Corbin and George S. Hobart, all
of Jersey City, for appellant. Alexander
Simpson, of Jersey City, for respondent
BLACK, J. This action was brought by
the plaintiff, as administratrix of Ferdinand
Materka, to recover damages for the benefit
of his widow and next of kin, by reason of
his death, on September 6, 1912, by being
struck by an east-bound express train, at
the Park Avenue grade crossing, in the bor-
ough of East Rutberford and Rutherford,
Bergen county, while he was crossing the
tracks on foot At that crossing there were
four tracks, safety gates, and a watchman.
A rule to show cause was allowed, reserving
objections and exceptions noted at the trial.
The verdict was reduced to the sum of $4,-
000. The trial court refused to set aside the
verdict on the ground that it was against the
weight of evidence. The points argued by
the appellant for a reversal of the judgment
are: First, there was no proof of negligence
on the part of the defendant; second, a ver-
dict should have been directed for the defend-
ant because of contributory negligence of the
decedent, Ferdinand Materka ; third, error in
the charge of the trial judge, and in the refus-
al to charge as requested, but this latter point
involves the same points as are in the first
two, except as hereinafter noted. This is the
second trial of the case. The judgment re-
covered In the first trial was reversed by the
Supreme Oourt for trial errors. The judg-
ment of the Supreme Court was affirmed by
the Court of Errors and Appeals. In the re-
port of the case the facts are quite fully and
satisfactorily stated. Materka v. Erie R. R.
Co., 88 N. J. Law, 372, 95 AU. 612.
[1,2] The crux of the case is whether
there was evidence from which the jury
might find that the decedent attempted to
make the crossing wtiile the safety gates
were up and without receiving any warning
from the flagman; that the train which
struck the decedent ai^roached the cross-
ing without giving the statutory signals of
ringing a bell or sounding a steam whistla
The record shows the following testimmiy:
David Harris, a vidtness, testified:
"Q. Were the gates up when you crossed over?
A. Ye. * * * I crossed into East Ruth-
erford, and I saw this gentleman get off this trol-
ley car and cross the railroad tracks. Q. Were
the gates up when he crossed? A. The gates
were up on one — yes. Q. On your side? A.
The side I crossed the gate was up on, yes. Q.
That is the side he entered the tracks from?
A. That is the side he entered the tracks on.
Q. When he came from the trolley car and went
on the tracks the gates were up, I understand?
A. That is right sir. Q. After he got on the
tracks what occurred? A. Why, that gate on
the Rutherford side went down. Q. Yes? A
And the ^ate on the East Rutberford side was
up. Q. Yes? A. And I passed a remark. Q.
You cannot tell what yon said, just what you
saw. You saw this? A. I saw this man cross
the tracks, and there was a train coming down
the track, and I said to myself, 'I don't think
he will get across,' and with that I saw the
man hit. • * ♦ Q. Did you hear any whistle
or bell up to the time you saw him hit? A. I
did not, sir."
On cross-examination:
"Q. You did not know It was coming? A. No,
sir. Q. You were not listening for it? A. No,
sir. Q. Not paying any attention to it at all?
A. No, sir. Q. I understand you to say, how-
ever, that you did see it coming ; is that right,
you did see the train coming before it strudc
Mr. Materka? A. Yes. (Witness marks on a
photograph, ExhiUt P-6, where he was stand-
ing at that time.)"
Redirect:
"Q. Now Mr. Hobart asked you if j^ou were
listening foi^ the express train. You did not
know it was coming until you saw it did you?
A. No, sir. Q. And from the time you started
across the crossing up to and until the time you
saw the express train had you heard any whistle
or bell of any kind? A. No, sir."
Genevieve Ruth Saxly a witness standing
at the crossing at the time of the accident,
did not hear any whistle before the decedent
was struck. She said she was not listening
for whistles.
Under the rule laid down In the cases, In
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70
101 ATIiANTIO RBPORTBB
(Pa.
the Ck>iirt of Errors and Appeals of this state,
such as Danskin v. Pennsylvania R. R. Ck>.,
83 N. J. Law, 522, 626, 83 Atl. 1006, Horandt
V. Central R. R. Co., 81 N. J. Law, 490, 83
AtL 511, Walbel v. West Jersey, etc., R. B.
Co., 87 N. J. Law, 573, 94 Atl. 951, and Mc-
Lean T. Erie R. R. Co., 69 N. J. Law, 57, 60,
54 Atl. 238, affirmed 70 N. J. Law, 337, 67
Atl. 1132, this evidenne was for the jury. It
made a Jury question. The point cannot be
removed from the domain of the Jury.
The cases of Holmes t. Pennsylvania B.
R., 74 N. J. Law, 469, 66 Atl. 412, 12 Ann.
Gas. 1031, Weiss v. Central R. R. Co., 76
N. J. Law, 348, 69 AtL 1087, and Howe v.
Northern R. R. Co., 78 N. J. Law, 683, 76 AU.
979, distinguished. So contributory negli-
gence of the decedent was also a Jury ques-
tion under such cases as Brown v. EMe R. R.
Co., 87 N. J. Law, 487, 91 AtL 1023, and
Femetti v. West Jersey, eta, B. B. Co., 87 N.
J. Law, 268, 93 AtL 676.
This disposes of the case, except it Is fur^
ther urged that there was error in the re-
fusal of the trial court to diarge each of
two specific requests in reference to the stat-
utory signals and the operation of the cross-
ing gates; each request covers separate
charges of negligence. The judgment must
be reversed, so it is argued, because the trial
judge permitted the jury to base a verdict
upon either ground, notwithstanding the spe-
cific requests submitted by the defendant
with respect to each allegation of negligence.
The court in the charge to the jury bad
covered each ground fully, accurately, and
clearly. The requests refused were, in eftect,
to take the case from the jury; hence this
was not error, in view of the cases above
cited.
Tlie judgment of the Hudson circuit court
is affirmed, with costs.
(2S6 Pb. 60S)
WEIL T. MARQUIS.
(Supreme Court of Pennsylvama. Feb. 26,
1917.)
1. exectjtobs and administrators €=>426—
.''ettino Abide Acts of Decedent— Bene-
fit OF Creditors.
An executor or administrator may bring an
action to set aside the fraudulent transactions of
the deceased for the benefit of creditors, whose
trustee he is.
[Ed. Note. — For other cases, see Executors and
AdminiBtrators, Cent Dig. $$ 1663, 1665.]
2. IiXECWTOB« AND Administrators ®=>426—
Death op Transferoe — Administrator's
Action for Benefit of Creditors.
A transfer of property in fraud of creditors
is a nullity, and, after the transferor's death, an
action is mnintainable by his administrator as
trustee to recover so much of the property trans-
ferred as may be needed to pay just claims of
creditors.
[Ed. Note. — For other cases, see Executors and
Administrators, Cent Dig. §§ 1663, 16C6.]
3. Insubance «=3o8&—BENEnciABiKB— Vest-
ed Interest.
Where the insured took out life insurance
policies payable to his wife and did not exercise
his right to change his beneficiary during bis life-
time, the widow's interest in the poUcies on bis
death became a vested interest
[EM. Note.— For other cases, see Insurance,
Cent Dig. § 1470.]
4. Insurance «=»590— BENEFictAET— Liabiu-
TT OF FoiTD for DBBT&
Act April 15, 1868 (P. L. 103), providing
that insurance money payable to the wife and
children of an assured shall be free from the
claim of creditors, governed where an intestate
who had taken out life insurance policies pay-
able to his wife and died without having exer-
cised the right to change the beneficiary, and
where the widow collected the insurance money
amounting to less than his debts, so that she
was entitled to bold the proceeds as against tlie
insured's administratrix soing for money had
and received; Act May 1, 1876 (P. L. 53), Act
Jnne 1, 1911 (P. L. 581), and Act May 5, 1916
(P. L. 253), relating to other forms of insur-
ance and to beneficiaries, not applying.
[Ed. Note. — For other cases, see Insoranee,
Cent Dig. U 1479, 1482, 1485.}
Appeal from Court of Common Pleas, Phil-
adelphia County.
Assumpsit for money bad and received by
Nlta M. Well, administratrix of the estate of
Abraham Marquis, deceased, against Jeanette
A. Marquis. From an order discharging a
rule for judgment for want of a sufficient
affidavit of defense, plaintiff appeals. Affirm-
ed.
The facts' appear in the following opinion
by Audenrled, P. J., in the court below:
Abraham Marquis died August 14, 1914, intes-
tate and insolvent He bad taken out sundry
policies of insurance upon bis life, each of which
was made payable to the defendant, his wife,
subject, however, to the provision that he might
change the beneficiary thereunder. He died with-
out having exercised that right, and his widow
collected the money payable on these policies,
wtiich amounted to much less than his debts.
Letters of administration upon the estate of
Marquis have been granted to the plaintiff, who
has brought this action against his widow to re-
cover what tlic latter received from the insure
ance companies.
Upon these facts, which are not denied by the
defendant, the plaintiff asks judgment for cither
the amount of the proceeds collected on the poli-
cies or the amount of their surrender value im-
mediately before the death of the insured ; both
amounts being ascertainable from the affidavit of
defense.
[1,2] As to the first question discussed by
counsel, we have no doubt. While an executor
or administrator, as the mere personal repre-
sentative of a decedent, can take no step to set
aside for the benefit of heirs, next of kin, lega-
tees, or devisees, the fraudulent transactions of
the deceased, his right to do so for the benefit
of the creditors, whose trustee he is, has long
been recognized in this state. Chester County
Trust Co. V. Pugh, 241 Pa. 124, 88 Atl. 319. 50
U R. A. (N. S.) 320, Ann. Cas. 1915B, 211.
A transfer of property in fraud of creditors is
a nullity as against the interests attempted to
be defrauded ; and, after the death of the trans-
feror, an action is maintainable by his admin-
istrator, as their trustee for the recovery of as
much of the property so transferred as may be
needed for tlie payment of their just claims.
Bupbler v. Gloninger, 2 Watts, 226; Stewart v.
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WEIIi ▼. MARQUIS
71
Kearney, 6 Watts, 453, 81 Am. Dec. 482. Whili
the statement of claim does not allege actual
fraud in the dealings of the defendant with her
husband in respect to the policies of insurance
procured by the latter upon his life, it is argued
that the facts above mentioned make out a case
of constructive fraud. We think that, if this
contention can be sustained, the right of the
plaintiff to a recovery against the defendant ia
clear.
Several acts of assembly have been referred to
by counsel as bearing on the matter before the
court, and our next inquirjr, therefore, is wheth-
er these have any application to the case.
The most recent legislation on the subject of
life insurance policies such as those referred to
in the plaintiff's statement is the Act of May
6, 1915, P. L. 253. By its terms, this statute
relates to policies of life insurance "which have
heretofore or which shall be hereafter taken out
for the benefit of, or assigned to, the wife or
children, or any other relative dependent upon"
the person whose life is insured. Grammatical-
ly, the use of the perfect tense of the verb in the
clause "which have heretofore (been) taken out"
seems to imply that the policies therein referred
to were existing policies that had not, when the
act became effective, matured and been paid.
If this clause were construed to embrace all poli-
cies that had been issued prior to the passaj^e of
the act, thus including those with respect to
whose proceeds rights had already vested, the
act, to that extent, would violate both section
17 of article 1 of the Constitution of Pennsyl-
vania and clause 1 of section 10, art. 1, of the
Constitution of the United States, since it would
impair the obligation of contract by depriving
creditors of their remedy, an impediment, in the
shape of an exemption which did not exist when
their debts were contracted, being placed in the
way of collecting them. Penrose v. Erie Canal
Co., 58 Pa. 46; Edwards v. Kearzey, 96 U. S.
505, 24 I<. Ed. 793; Kener v. Le Grange Mills,
231 U, S. 215, 34 Sup. Ct. 83, 58 U Ed. 189.
We are of opinion, therefore, that this act doe*
not affect the case before us.
Nor does section 25 of the Act of May 1, 1876
(P. L. 60) apply. The provisions of that sec-
tion are expressly confined to policies issued by
companies Incorporated under the act of which
it forms a part. It does not appear, and the
court cannot assume, that the insurance compa-
nies that issued the policies referred to in this
case were so incorporated.
Section 27 of the Act of June 1, 1911, P. L.
581, provides as follows: "A policy of insurance
issued by any company, heretofore or hereafter
incorporated, on the life of any person, expressed
to be for the benefit of any married woman,
whether procured by herself, her husband, or
any other person, shall inure to her separate use
and benefit and that of her children, independ-
ently of her hasband or his creditors, or the per-
son effecting the same or his creditors. If the
premium is paid by any person with intent to de-
fraud his creditors, an amount equal to the pre-
mium go paid, with interest thereon, shall inure
to their benefit" Unless this enactment is held
to be retrospective in its operation, it does not
apply to the policies involved in this case. The
last of these to be issued was taken out more
than nine months before it became a law. But
the act is not, in tiiis respect, retroactive. The
use of the present tense of the verb in the con-
ditional part of the second sentence of the sec-
tion quoted plainly indicates that no reference to
policies previously issued is intended; and, if
its language were otherwise, no effect could be
given to it, so far as concerns such policies, for
the same constitutional reasons that are referred
to above in discussing the Act of May 5, 1915.
Moreover, even if it was intended to change the
law as to the rights of creditors in respect to
policies of life insurance theretofore issued, no-
tice of such an intention is wholly lacking in the
title of the act; and the attempt to make aucb
a change was therefore futile. Section 3, art. 3,
Constitution of Pennsylvania. When the subject
expressed in the title of an act is not broad
enough to cover all its provisions, such parts of
the act as are not within the purview of the ti-
tle are void. Hatfield v. Com., 120 Pa. 395, 14
Atl. 151 ; Potter County Water Ca v. Austin
Borough, 206 Pa. 297, 55 AtL 991.
So far as our examination of the acts of as-
sembly goes, the only legislation that bears upon
the question involved in these rules is section 1
of the Act of April 15, 1868 (P. L. 103). This
reads as follows: "All policies of life insurance
or annuities upon the life of any person which
may hereafter mature, and which have been or
shall be taken out for the benefit of, or t>ona
fide assigned to the wife or children or any
relative dependent upon such person, shall be
vested in such wife or children or other relative,
full and clear of all claims of the creditors of
such person."
It is conceded by the plaintiff that, if the pol-
icies in question were within the scope of thia
act, judgment must be^ntered in favor of the
defendant. It is contended, however, that they
do not fall within either of the two classes of
policies which the statute was intended to pro-
tect from the creditors of the person who has
taken them out and paid their premiums.
From the aUidavit of defense it ie impossible
to determine how the policies whose proceeds
are in dispute were originally issued. All that
appears is that the defendant was, prior to the
death of her husband, the beneficiary thereun-
der, and that be had the right to appoint anoth-
er as beneficiary in her place.
It is argued on behalf of the plaintiff that, if
the policies when originally issued were made
payable to the defendant subject to the condi-
tion that her husband should not designate some
other person as payee of their proceeds, they
were taken out by him for his own benefit and
not for hers; and that consequently the case
does not fall within the first of the two cate-
gories embraced by the act. It is further ar-
gued that, if the policies were issued in the
name of tlie insured, they are not within the sec-
ond class to which the act refers, because the
• wife took no interest in them under the subse-
quent assignment thereof to her ; the reserva-
tion to the insured of the right to change the
beneficiary securing full control of the policies
to him and leaving him, therefore, tfieir real
owner.
Although the policy of the law, even where
the rights of creditors may be adversely affected,
favors the wife to whom her husband has at-
tempted to secure the benefit of insurance upon
his life (Kulp v. March. 181 Pa. 627, 37 Atl.
913, 59 Am. St. Rep. C87), the argument of the
plaintiff thus summarized is of great weight,
and, if the creditors had attempted to reach
the policies during the lifetime of the insured,
we can see no reason wliy they should not have
been successful (In re Herr [No. 2 D. C] 182
Fed. 710; In re Jamison Bros. & Co. [D. C]
222 Fed. 92; In re Shoemaker [D. C] 225 Fed.
329).
[3, 41 Nevertheless, the facts presented by this
case differ in a very important point from those
involved in the bankruptcy cases to which refer-
ence has been made. Here the insured is no
longer living. He had, it is true, reserved to
himself under his insurance contracts the option
of lettinpr them inure to the benefit of his wife
or appointing some other beneficiary in her
stead. This he might have exercised whenever
he saw fit during bis life, but it ended at the
very instant of his death. It did not survive
him. See McDonald, EJx'x, v. Columbian Na-
tional Life Insurance Co., 253 Pa, 239, 97 Atl.
1086, U R. A. 1916F, 1244. The moment be
breathed his last, the happening of the condition
subsequent which might have divested the de-
fendant's rights in the policies became impos-
siblfi. U up to that time her interest in the
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101 ATLANTIC REPOBTBa
(Pa.
policies amounted to notbinc more tlian a bare
expectancy, that expectancy then ripened, and
her interest in the policies and their proceeds
immediately became a vested one.
Thus the air was cleared; and the position
of the creditors became forthwith what it would
have been if, when the policies were originally
issued or subaequentiy assigned to her, no right
to change their beneSciary had been reserved
by the insured. Setting aside the question of
fraud, any right that the creditors of Marquis
or their representative had to object to the stat-
ute as a bar to the appropriation of the policies
of insurance on his life payable to his wife to
the discharge of their claims against him rested
solely on the ground that he still held a control
over them equivalent to ownership. That foun-
dation has slipped away. As the case now
stands, the disposition of the proceeds of the pol-
icies is governed by the Act of April 15, 1868.
If the defendant's rights as beneficiary re-
sulted from the assignment of the policies to her
by her husband, it would, of course, be possible
to attack them, under the Act of 13 Bliz. C. S.,
<wi the ground of fraud. The Act of 1868 pro-
tects such assignments only when bona fide.
Although the assignment in this case, if there
was an assignment, was made by an Insolvent
to his wife, with a reservation of power to con-
trol the disposition of the policies as be pleased,
the court cannot declare the transaction, how-
ever suspicious it may be, fraudulent per se.
The statement of claim raises no question of
fraud in fact ; but, if fraud were alleged, the
question of the good faith of the defendant and
her husband would necessarily take the case to
the jury, to whose province such questions pecu-
liarly appertain. Sebring v. Brickley, 7 Pa.
Super. Ct 108.
Argued before BROWN, 0. J., and STEW-
ART, MOSCHZISKER, PRAZER, and WAL-
LING, JJ.
Morris Wolf and Horace Stem, both of
Philadelphia, for appellant. Hampton L. Car-
son and Joseph Carson, both of Philadelphia,
for appellee.
PER CURIAM. This appeal is dismlsaed
on the opinion of the learned president judge
of the court below discharging the rules for
Judgment for want of a sufflcient affidavit
of defense.
(266 Pa. 620)
COMMONWEALTH y. STAUSH.
(Supreme Court of Pennsylvania. Feb. 20,
1917.)
1. Cbiminai, Law «=3980{2) — Plea, of
Guilty— Sentence — Statute.
Act March 31, 1860 (P. L. 402) S 74, pro-
viding that, where a defendant pleads guilty
to an indictment for murder, the court shall
proceed by examination of witnesses to determine
the degree of the crime, must be strictly con-
strued, and thereunder the examination of wit-
nesses by the court means the seein;^ and hear-
ing of the witnesses, and a mere reading of their
testimony by a judge or judges who did not see
or hear them is not a compliance with the act
[Ed. Note. — For other cases, see Criminal
Law, Cent. Dig. §| 2494, 2495.]
2. Cbikinai. TjAW €=9 980(2) —Plea or
GutLTT— Sentence— Statute.
Under such provision, every member of a
oonrt passing upon the degree of guilt must
see and hear the witnesses upon whose testimony
the degree of homicide is to to he determined,
and where three of the five judges heard the
testimony and thereafter the president Jndge
who was not present during the examination of
witnesses read the evidence, and joined in the
deliberations, and wrote the court's opinioa
fixing the crime as murder in the first degree^
the judgment would be reversed, and a proceden-
do awarded with leave to defendant to renew in
the court below a motion to withdraw his plea
of guilty.
[Ed. Note.— For other cases, sea Criminal
Lew, Cent. EMg. H 2494, 2495.]
Appeal from Court of Oyer and Terminer,
Luzerne County.
John Staush was convicted of murder lu
the first degree, and be appeals. Beveraed.
and procedendo awarded with leave to de-
fendant to renew In court below his motion
for leave to withdraw his plea of g^illty.
Argued before BHOWn, C. J., and MES-
TREZAT, STEWART, MOSCHZISKER, and
WALLING. JJ.
M. J. Torlinskl and George Howortb, both
of Wllkes-Bnrre, for appellant Frank P.
Slattery, DUt Atty. of Luzerne C^ounty, and
Eidwin Shortz, Jr., Asst. Dist Atty., botb of
Wllkea-Barte, for the Commonwealtb.
BROWN, O. J. [1] John Staush, the ap-
pellant, entered a plea of guilty to an in-
dictment charging him vrith murder, and It
thereupon became the duty of the court be-
low, under section 74 of the act of March
31, 1860 (P. I* 402), to "proceed, by examina-
tion of witnesses, to determine the degree
of the crime, and to give sentence accord-
ingly." Three of the five Judges of that
court met to perform the duty Imposed up-
on It, and witnesses were examined before
them. At the examination the coumou-
wealth was represented by the district attor-
ney, and the prisoner, with his counsel, was
present. The testimony was taken down by
the court stenographer, whose transcript of
the same was duly approved by one of the
Judges and ordered to be filed. After the
hearing, and before the three judges had
reached any conclusion as to the degree of
the prisoner's guilt, they asked the president
Judge of the court — who had not been pres-
ent at the examination of the witnesses —
to Join than In their consideration of the
testimony taken, for the purpose of fixing
the degree of the crime. After reading the
evidence, he took part in their deliberation,
and found that the prisoner was guilty of
murder of the first degree. Subsequently
he wrote the opinion of the court, fixing the
degree of guilt, and pronounced the judg-
ment of death. The real error of which the
appellant complains— and the only one up-
on which we need iwss — ^is the action of the
court below In having Its president Judge
consult with his three colleagues over a
most solemn question. Involving life, without
bis having seen or heard the witnesses up-
on whose testimony it was to be determined.
A tribunal, specially designated by the
Legislature, fixes the degree of guilt, upon
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WOOD T. WILUAM KAMX MFO. CO.
73
conviction by coofeBslon, on an indictment
charging murder. Such a case la no longer
for a Jury, whose province It Is to fix the de-
gree of homicide in every case where the
accosed goes to trial on his plea of not guil-
ty. The Legislature might have provided
that, on a plea of guilty, a Jury should hear
the testimony relating to the crime for the
sole purpose of fixing the degree of guilt;
but it has not done so. It has committed
that duty to the court having jurisdiction
of the dndictment, and perhaps wisely so, in
view of human sympathy to which jurors
not Infrequently yield when called to pass
upon the life or death of a fellow man. To
enable it to discharge this duty the court
must examine witnesses and hear what they
know and are able to truthfully tell of the
circumstances attending the admitted feloni-
ous Wiling. As this statutory provision, re-
lating to a criminal procedure, must be strict-
ly construed, the examination of witnesses
by the conrt means its seeing and hearing
them, not a mere reading of th^ testimony
by a Judge or Judges who neither saw nor
heard them, and it means that every man-
ber of a conrt passing uiwn the degree of
guilt in a homicide case must see and hear
the witnesses upon whose testimony the
question is to be determined. If it had been
for a Jury to determine the degree of the
appellant's guilt, and but eight of the Jurors
had seem and heard the witnesses, a verdict
of the twelve condemning him to death
would be promptly set aside, if the other
four Jurors had simply read the testimony
of the witnesses from the stenographer's
notes; and yet this. In effect, is the situa-
tion here presented.
[2] The court below, composed of four of
its five members, found the prisoner guilty
of mnrder of the first degree. They were
his triers; they deliberated together over
what their verdict should be, and, after so
deliberating, fixed his crime as the highest
known to the law; but one of them had
neither seen nor heard a single witness
called to sustain the commonwealth In ask-
ing for a first degree finding, or the plea of
the prisoner that intoxication had reduced
the degree of his offense. One of the three
Judges who heard the witnesses long hes-
itated in reaching his conclusion, and If
the fourth, who heard none of them, bad
heard them all, he might also not only have
long hesitated, but actually refused to con-
cur in the finding of first degree murder.
In findings of fact by a Judge, sitting as a
chancellor, the credibility of witnesses and
the weight to be given to their testimony
are for him, and their credibility is often
sustained or impaired by their appearance
on the witness stand and by their manner of
testifying. If this is true in dvll cases, it
Is surely true In a proceeding in a criminal
court in which a human life is at stake.
We are not to be understood as saying, or
even intimating, that on the testimony of
the witnesses seen and heard by the three
learned Judges of the court below they would
have erred in adjudging the prisoner guilty
of murder of the first degree; for that is
not the question before us. All that we now
decide is that error was committed In hav-
ing the president Judge take part, under t*he
circumstances stated. In a consultation and
deliberation which resulted in a finding nec-
essarily followed by the Judgment from
which we have this appeaL
Judgment reversed, and procedendo award-
ed, with leave to the prisoner to renew in
the court below his motion for leave to with-
draw his plea of guilty.
WOOD V. WILLIAM KANE MFG. CO., Inc.
(Supremo Court of Pennsylvania. March 6,
1917.)
1. Mastbb and Sxbvaht 9=»90 — Mastkb's
Duty — Extjsmt.
The mere relation of master and servant
does not imply an obligation on the master to
take more care of the servant than he may rea-
sonably be expected to take of himself.
[Ed. Note.— For other cases, see Master and
Servant, Cent. Dig. { 130.]
2. Masisb and Sebtant «=>2e5(12)— Nbou-
OBNCB— ElCPLOTUENT OF SSBVANTB.
The presumption is that an employer has
exercised proper care in the selection of its em-
ployes, and one charging negligence in the em-
ployment of men must show it by proi>er evi-
dence.
[Ed. Note.— For other cases, see Master and
Servant, Cent Dig. %% 891, 908.]
3. Masteb and Sebvant «=>150<6) — AonoN
FOB lN.n7BT— NeQUOKNCB— EVIOBROB.
Where plaintiff in charge of riveting boilers
was suppUed by his employer with helpers, and
where one of the helpers, not shown to be in-
competent, and who was not instructed by plain-
tiff as to his duties, accidentally let go of the
base of a boiler so that it fell upon plaintiff,
there was no negligence on the part of defend-
ant, and the court should have directed a verdict
for it
[BA. Note.— For other cases, see Master and
Servant Cent Dig. {f 302, 307.]
Appeal from Court of Common Pleas, Phil-
adelphia County.
Trespass for damages for personal injury
by Thomas Wood against the William Kane
Manufacturing Company, Incorporated. Ver-
dict for plaintiff for $2,000 and Judgment
thereon, and defendant appeals. Reversed,
and Judgment entered for defendant
Argued before M£}STIREZAT, POTTER,
STEWART, MOSCHZISKER, and FRA-
ZER, JJ.
Frank P. Prichard, of Philadelphia, for ap-
pellant John J. McDevltt Jr., and Samuel
O. Stem, both of Philadelphia, for appellee.
FOTTER, J. This wad an action of tres-
■pOBB to recover damages for personal Inju-
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101 ATIaANTIC REFORTEB
(Pa.
rles. Plaintiff, who had the management of
the boiler making shop of the defendant com-
pany, charged his employer with negligence
in falling to provide an experienced helper,
which, as he alleged, resulted in his Injuries.
He was supplied with helpers, varying In
number from three to six, who received In-
structions from him. On the day of the acci-
dent, plaintiff was engaged in riveting the
base of an upright boiler. The base was not
a perfect cylinder, but was smaller at the
top than at the bottom. It was about 14
Inches high, and weighed about 250 pounds.
PlalntlfT suspended It by two hooks from a
crane, and asked two of the helpers to steady
It while he applied a pneumatic riveter. In
order to secure proper contact It was appar-
ently necessary to tilt the base slightly. The
pneumatic riveter was applied under some
pressure to the side of the base, and when It
was withdrawn, one of the helpers let go of
the base, and it slipped from the hooks and
fell, injuring plalntifF's hand. It appears
from the evidence that Gordon, the helper
in question, had been employed In the estab-
lishment about a year, but had never been
called upon to assist In steadying a base of
that particular description. It was, as plain-
tiff said, "something out of the ordinary"
as to shape, and he bad made but five of them
during a period of three years. Plaintiff
gave no instruction to the helper, Gordon, as
to steadying the base while the riveting was
being done. The service required was not
complicated, or difficult to perform. There
is nothing in the evidence to show that the
young man was Incapable. He seems to have
been taken by surprise at the effect upon the
base of the removal of the pressure, and
failed to hold on steadily. A word of caution
in advance from the plaintiff, who was stand-
ing dose by, would, no doubt, have prevented
the accident It cannot justly be charged to
any lack of experience, upon the i>art of the
helper. In assisting to steady a piece of metal
of that particular size and shape. It may
very well be that, for the performance of
complicated or difficult work Involving dan-
ger, an employer would be bound to furnish
not only competent, but experienced, men,
especially for leadership and supervision.
But in the present case the plaintiff himself
was supervising the work, and the part which
the helper was called upon to perform was of
the simplest possible character. He was
asked to hold but little weight, and was mere-
ly to lay bis hand upon the base to help
steady it, while supported by the; hooks.
[1] If any instruction or warning was need-
ed to aid him In the discharge of this very
simple duty, the necessity for it arose upon
the instant, and the Word of cantlon should
have come from the plaintiff, who was in
immediate charge of the operation. The
mere relation of master and servant can nev-
er imply an obligation upon the part of the
master to take more care of the servant than
he may reasonably be expected to take of
himself.
(2, 3] The presnmption is that the employer
has exercised proper care In the selection of
employ^, and it is Incumbent upon one
charging negligence, in the employment of
men, to show it by proper evidence. The
plaintiff here was acquainted with the help-
er, and knew he had been working in the
shop for at least a year. The evidence shows
no suggestion that any complaint as to incom-
petence upon the part of the helper was ever
made by the plaintiff, or any one else. The
fact that he was employed merely as a helper
is in itself an Indication that, having prop-
er capacity, he was expected to gain skiU In
the work and knowledge of its details, under
the guidance and Instruction of more ex-
perienced men, such as plaintiff, with whom
he was associated.
We find nothing in this record to Justifj-
placing the legal responsibility for the re-
sults of the accident upon the defendant
The first assignment of error is sustained,
the judgment is reversed, and is here altered
for def^idant.
<KI Pa. 22>
MTJLHERN et al. v. PHILADEIJPHIA
HOME-MADE BREAD CO.
(Supreme Court of Pennsylvania. March 6,
1017.)
1. MtmiciPAL OoKPORATioNs «s»705(8>— Use
OF Stbsbt— Oabe as to Childbkn.
Special caution on the part of drivers of
vehicles is required for the ijrotection of chil-
dren congregating in the vicinity of a sehool-
hoase.
(Ed. Note.— For other cases, see Manicipal
Corporations, Cent. Dig. § 1515.]
2. MunioiPAi. CoBPOBAnoNS «=»70G(6)— Use
OF STKEETa— NEOLIOENCE OF DBIVEB OF VB-
HicLB — Question fob Jubt.
In an action for damages for personal in-
jury to a school child from being run over by a
wagon, held, on the evidence, that whether the
driver's failure to stop it or turn aside to
avoid the injury was negligence waa a ques-
tion for the jury,
[Ed. Note.— For other cases, sea Municipal
Corporations, Cent Dig. { 1518.]
Appeal from Court of Common Pleas, Phil-
adelphia County.
Trespass for damages for personal iojaries
by Anna Mnlhem, by her father and next
friend, William J. Mulhem, and by WilUam
J. Mulhem in his own right, against the
Philadelphia Home-Made Bread Company.
Verdict for plalntlfl Anna Mulbem for $2,-
000. and for plaintiff William J. Mulhem for
$200, aitd judgmrait thereon, and defendant
appeals. ASLrmed.
Argued before MESTREZAT, POTTER,
STEWART, MOSCHZISKER. and FRAZ-
BR, JJ.
■William H. Peace, of Philadelphia, for ap-
pellant. John Martin Doyle and Eugene
Raymond, both of Philadelphia, for appel-
lees.
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HARDIB T. BARRETT
75
POTTER, J. Thes» appeals are grounded
npon the refusal of tbe conrt b&ow to give
binding Instractions la favor of tbe defend-
ant, or to enter Judgment non obstante vere-
dicto. It appears from tbe testimony that
about noon on February 4, 1900, some school
children Just released from school were
walking and sliding upon tbe icy sidewalk
on tbe south side of Tasker street near EHgtat-
eentb. Anna Mulbem, a cblld some ten
years of age, fell or was pushed over tbe
curb Into tbe edge of tbe driveway of tbe
street as a wagon driven by an employ^ of
defendant was approaching, the right-hand
wheels running near the curb. The horse
was turned somewhat aside, but the front
wheel of the wagon ran over tbe little girl's
leg and broke It The question for determi-
nation was whether the driver, by tbe exer-
cise of proper care, should have seen tbe
Child after it fell and was lying partly in
tbe street ahead of him in time to stop bis
wagon, or turn it aside to avoid the accident,
and whether bis failure to do so was n^ll-
gence.
A bystander testified that be saw tbe <^lld
lying partly in the gutter when the wagon
was some 30 feet distant, and he said that
tbe driver was not then looking ahead, but
was at tbe moment looking backward into
tbe body of bis wagon. The Jury may well
have found that the proximity of a number
of children upon the sidewalk at the side of
the street upon which he was driving and
the well-known tendency of children to make
sudden and heedless dashes should have put
the driver upon his guard at that particular
place, at least to tbe extent of keeping bis
horse well in band.
[1] It is common knowledge that special
caution Is required for the protection of chll-
iiea who congregate in the vicinity of a
schoolbouse. The plalntUF Anna Mulhern
testified that after she bad fallen down and
was lying partly in the gutter she saw tbe
wagon coming along the street some 30 to 50
feet away from her. If this was the fact,
tbe driver could have stopped his wagon or
turned it aside before reaching her, if be
was moving at a proper rate of si)eed and
had bis horse under proper controL
{2] On the other hand, the evidence upon
tbe part of defendant tended to show that
the child came so suddenly and unexitectedly
from the sidewalk into tbe line of travel in
tbe street that the accident was unavoidable.
If this was the case, defendant should not
have been held responsible.
Counsel for appellant has contended with
great earnestness that the trial Judge should
have held as matter of law that the evidence
did not Justify an inference of negligence
upon the part of the driver. But we are un-
able to agree with his contention in this re-
spect As we read tbe evidence, tbe question
was purely one of fa** upon conflicting state-
ments by the witnesses. It the Jury accept-
ed as credible tbe evidence otCered by tbe
plaintiff, they were Justified in inferring neg-
ligence npon the part of tbe driver. Had
they accepted as accurate the testimony on
behalf of the defendant, they must have
concluded that the driver was not at fault
in any way, and tbe verdict would have been
for the defendant We may feel that tbe
Jury might very properly have reached an-
other conclusion, but the question of fact In
dispute was for them to decide. To the
charge of tbe conrt in submitting the case
no exception was taken.
The Judgment is affirmed.
(2CT Pa. «)
HARDIE et nx. v. BARRETT,
(Supreme Court of Pennsylvania. March K,
1917.)
1. Highways ®=»175(1)— Hired Autouobilb
— INJUBT — CONTEIBUTOBY NeGUOENCE.
When the dangers arising from the negligent
operation of a hired automobile in which one
is riding as an invited guest are manifest to
a passenger having an adequate opportunity to
control the situation, and he permits himsdf
without protest to be driven to his injury, he
is fixed with his own negligence which bars a
recovery.
[Ed. Note. — ^Por other cases, see Highways,
Cent Dig. {{ 461-464.]
2. Highways <s=»175(1) — Collision — Con -
tbibctoby negligence.
Where a husband and wife hired an anto-
mobile driven by the owner's chauffeur and
made no effort to have tbe chauffeur drive at
a proper speed and on the right side of the
street, they would be guilty of contributory negli-
gence barring their recovery for injuries from
a collision.
[Ed. Note.— For other cases, see Highways,
Cent Dig. §§ 461-464.]
3. Highways €=»175(1)— Personal Injuby—
Neglioenck— Pboximate Cause.
In an action by a husband and wife for per-
sonal injuries when the hired automobile in
which they were riding in New Jersey collided
with defendant's wagon during a time when the
New Jersey law required that it display lights,
the fact that there were no lights on defendant's
wagon, if not the proximate cause of the acci-
dent, even though negligence, would not justify
a recovery.
CEid. Note.— For other cases, see Highways,
Cent Dig. Sf 461-164.]
Appeal from Court of Common Pleas, Phil-
adelphia County.
Trespass for damages for personal Injuries
by James 6. Hardle an'd Olive M. Hardie,
his wife, and James G. Hardle against Wil-
liam M. Barrett, as president of the Adams
Express Company, a Joint-stock association
under the laws of New York. Verdict for
defendant and Judgment thereon, and plain-
tlfCs appeal. Affirmed.
Argued before BROWN, C. J., and POT-
TER, MOSCHZISKER, PRAZER, and WAL-
LING, JJ.
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101 ATIiANTIO HEPORTEB
(Pa.
Sydney Toung, of Ftailadelpbla, for ai»pel-
iante. John Lewis Evans and Thomas De-
VTitt Cuyler, both of Phlladelpbla, for ai>-
pellee.
MOSCHZISKRK, 3. On the evening of
August 22, 1913, James G. Hardle, and Olive
M., his wife, hired an automobile with Its
driver, one Louis S. Chester, Jr., to convey
them, with two women guests, from Sea Isle
City, N. J., to a nearby yacht club. On the
way a collision occurred between the car In
which they were riding and a one-horse ex-
press wagon belonging to the defendant com-
pany. Both Mr. Hardle and his wife were
Injured ; they sued for damages, and by ex-
press agreement of record their cases were
tried together, the Issues involved were sub-
mitted to the jury, and In each Instance the
verdict favored the defendant, judgments
were entered accordingly, and the plaintiffs
have appealed.
The testimony on all the important issnes
was most conflicting; but, when vleweU in
the light of the verdicts rendered, the fol-
lowing facts can be found therefrom: The
accident happened on a rainy evening, be-
tween 8 :30 and 9 o'clock. Mr. Hardle occu-
pied a front seat in the automobile, beside
the chauffeur, while Mrs. Hardle, her moth-
er and the other woman were In the tonneau.
The car was equipped with five lights, "two
large acetylene gas lamps on the head, two
on the side, and <me re)d light In the rear."
The headlights illuminated the road so that
one In the car "could see 200 feet in front,"
and made the way "bright enough to see dis-
tinctly the curb." The part of the road upon
which the accident happened had a curb on
the west side and a single track trolley line
on the east, with a space of 22 feet between.
The automobile was traveling southward, on
the left-han'd, or wrong, side of the road, at
an estimated speed of 40 miles an hour.
The wagon was traveling northward on the
right-hand, or proper, side of the road, the
horse going at "a very slow trot." The driv-
er of the latter vehicle, in an endeavor to
avoid the collision, bad his horse "nearly
half way over" the trolley track when the ac-
cident occurred. The automobile struck the
wagon on the near front wheel; both ve-
hicles were badly damaged.
On the foregoing facts, it may be seen
that the chauffeur, and not the 'driver of the
horse and wagon, was the one guilty of the
negligence which caused the accident ; but
the plaintiffs complain that the trial judge
committed substantial error by the manner
in which he submitted certain issues to the
jury. In disposing of these complaints, we
shall first consider together assignments 1
and 2.
In brief, the trial Judge Instructed that, if
the automobile was being driven with "man-
ifest improper speed," or 12 the chauffeur
had his car "mantfestly on the wrong place
in the road," and these faults, or either oC
them, contributed to the happening of the ac-
ddoit, if the plaintiffs made no effort to "get
him to go at a proper rate of speed" or "over
on the right side of the road," they would
be guilty of contributory negligence, trat that
they could not be found so guilty unless the
before-mentioned alleged faults on the part
of the chauffeur were "manifest"
In reviewing these instructions. It must
I>e kept in mind that the plaintiffs did not
endeavor to excuse the fact that tlie chauf-
feur was on the wrong side of the road by
explaining he was temporarily and justifia-
bly out of the regular track; on the contrary,
they called him as their witness, and each
of them gave testimony to snlMtantlate his
story tliat, at the time of the accident and
prior thereto, he had been continually driv-
ing on the proper side of tlie road, at a speed
not exceeding 15 miles an hour, wtaidi waa
much lowered immediately before Uie colli-
tAon. Both plaintiffs not only stood upon
but reiterated this account of the manner In
which the automobile was alleged to have
been handled ; and, of course, ex necessitate,
it excluded the possibility of a remonstrance
on their part having been maVie to the chauf-
feur, by eliminating aU possible reasons
therefor. Moreover, the plaintiffs* attitude
at trial, In a manner, adopted, or set their
seal of approval upon, the chauffeur's real
conduct, as the jury found It to be.
(1] The rule is well established that, when
possible dangers arising oat of the negligent
operation of a hired vehicle or a conveyance
In which one Is riding as an invited guest
are manifest to a passenger who has any ad-
equate opportunity to control the situation,
if he sits by without protest and permits
himself to be driven on to his injury, this
Is negligence which will bar recovery. In
other words, the negligence of the driver is
not Imputed to the passenger, but the latter
Is fixed with his own negligence when he
joins the former in testing manifest dangers.
For discussion and, in some Instances, ai^-
plication of this rule, see Tbwnslilp of Cres-
cent V. Anderson, 114 Pa. 643, 8 Atl. 379, 60
Am. Rep. 367 ; Dean v. Penna. R. R. Co., 129
Pa. 514, 18 Atl. 718, 6 L. R. A. 14S, 15 Am.
St Rep. 733; Winner v. Oakland Township,
158 Pa. 405, 27 AU. 1110, 1111; Dryden v.
Penna. R. B. Co., 211 Pa. 620, 61 Atl. 249;
Thompson v. Penna. R. R. Co., 215 Pa. 113,
64 Atl. 323, 7 Ann. Cas. 351; Kunkle v. Lan-
caster County, 219 Pa. 52, 67 Aa 918; Walsh
V. Altoona & Logan Val. Elec. Ry. Co., 232
Pa. 479, 81 AtL 551 ; Wachsmith v. Balto. &
Ohio R. R. Co., 233 Pa. 465, 82 AU. 755, Ann.
Cas. 1913B, 679 ; Trumbower v. Lehigh Val-
ley Transit Co., 235 Pa. 397, 84 AU. 403;
Senft v. Western Maryland Railway Co., 2i6
Pa. 446, 92 Atl. 553; Dunlap v. Philadel-
phia Rapid Transit Co., 248 Pa. 130, 03 AtU
873.
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[2, 3] Here, tbe dear, strong, prepondM«t-
Ing evidence sbows that the cbaufTewr was
seen by numerous disinterested witnesses,
some three or four blocks north from the
point of the accident, driving in a reckless
manner, at an estimated efpeed of 40 miles
an boor, on the wrong side of the road, aulte
«Iose to the trolley track; fnrtha-morek the
a<dmlsslons of the i^intlffs show that they
both were familiar with automobiles and
able to appreciate the possible dangers of
this highly improper coarse of conduct. As
already indicated, since the story told by the
plaintiffs, as to tbe management of the mo-
tor was rejected by- the Jury, the position
assumed by the former at trial left but one
conclusion x>osslble; L 6., that they had Join-
ed the chauffeur in testing the dangers of
the situation created by the way In which the
car was in fact being driven. Under tbe dr-
cumstances, we see uo error In the instruc-
tions complained of.
At this point It Is but fair to say that the
instructions in question were coupler with a
correct and fair presentaticm of the plain-
tiffs' side of the case, and the jurors were
plainly told that, if they believed the tatter's
testimony, they should render a verdict ac-
cordingly.
One other assignment calls for considera-
tion. There is an act of assembly In New
Jersey which requires all vehicles to have
lights displayed thereon during specified
hours, covering the time when this accident
happened ; onid the defendant admitted there
was no light on its wagon. The trial Judge
directed attention to this state of affairs, and
Instructed tbe Jurors that, if the absence of
a light "contributed to the accident, If that
• * • prevented the plaintiffs' chauffeur
from seeing the horse and wagon, that may
be ccmsldered by you as an act of n^llgence
which caused the accident; • * « and,
• • • If * • • there was no negli-
gence on the part of the plaintiffs, the plain-
tlfTs would be entitled to your verdict"
^niese instructions were practically the
last word to the Jury, and we think them
as favorable to appellants as they had a
right to expect Had there been a light
on the wagon, It might have saveid the plain-
tiffs from the result of their own negli-
gence in permitting the car occupied by
them to be driven in the manner In which
It was operated on the night of the accident;
but even this Is hardly probable, since the
plaintiffs said the acetylene gaslights on the
front of their automobile enabled them to
see at least 200 feet ahead. On the other
hand. If the absence of a Ught on the wagon
was not the proximate cause of the accl'dent,
even though an act of negligence on the part
«f the defendant, It would hot Justify recov-
ery by the plaintiffs (Chrlstner v. Cumber-
land & Elk Lick Coal Co., 146 Pa. 67, 23 Atl.
221); and this In effect Is what the trial
Judge said to the Jury.
The .assignments of error are overruled,
and the Judgments affirmed.
(SBT Pa. 37)
KUEHNE V. BROWN.
(Supreme Court of Pennsylvania. March 5,
1017.)
1. MxrwicrPAi, Cokpobations c®=»706(6)— Op-
eration OF AlTTOMOBn-E — NEOLIOENCE —
Question fob Jcbt.
In an action for injury from tbe negligent
operation of an automobfle, where the evidence
of defendant's failure to blow his horn was only
negative, and there was no positive evidence
that he- gave such warning, the weight of tbe
negative evidence was for the Jury.
[Ed. Note.— For other cases, see Municipal
Corporations, Cent. Dig. { 1518.]
2. MuNicrPAi, CoBposATioNs «=5>705(3)— Op-
EBATION OF AUTOKOBILB — TSsST — NBOU-
In action for personal injury to a child
struck by an automobile while m a highway be-
tween crossings, the test of defendant's liabilitjr
was whether in the exercise of due care he
should have seen the child in time to- have
avoided injury.
[Ed. Note. — For other case^ see Municipal
Corporations, Cent Dig. { 1516.]
3. Municipal Cobpobations <a=»706(6)— Op-
EKATION OF AUTOMOBILE— PEBSONAI, INJDBT
— Question fob Jubt.
In such action, held, on the evidence, that
whether defendant was negligent in not seeing
the child in time to have avoided the injury was
for the jury.
[Ed. Note.— For other cases, see Municipal
Corporations, Cent Dig. { 1618.]
4. Municipal Cobpobations <&=9706(6)— Op-
EBATION OF AUT0UOBII2 — NKOLIOKNOE —
Question fob Juby.
In a father's action in his own right for
injury to minor child by defendant's automobile,
conflicting testimony as to its speed and dis-
tance required to come to a stop made a ques-
tion for jury as to defendant's negligence in op-
erating the car.
[Ed. Note. — For other cases, see Municipal
Corporations, Cent Dig. { 1518.]
6. Pabent and CHitn «=»7(&)— Opkbation of
Automobile — Injuby to Child — Pabbnt's
ConTBIBUTOBY NEaUOENCE.
Where the father of a child, suing jointly
with him for personal injury from defendant's
automobile, had permitted the child to cross a
highway when the automobile was approaching
only 75 feet away, notwithstanding his state-
ment that he loolced in both directions and
saw nothing approaching, he was guilty of con-
tributory negligence barring a recovery in his
own right.
[Ed. Note.— For other cases, see Parent and
Child. Cent Dig. g 94.]
Appeal from Court of Common Pleas,
Philadelphia County.
Trespass by Paul Kuehne, Jr., by his fa-
ther and next friend, Paul Kuehne, and by
Paul Kuehne, In his own right, against
George H. Brown, to recover for personal In-
juries to the minor plaintiff. Compulsory
nonsuit entered as to both plaintiffs, which
the court subsequently refused to take off.
^s>For other easea see aame topic and KBT-NUUBER in ah Key-NnmUrod DigeBti and Indexes
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101 ATIiANIIC niDPORTBR
(Fa.
and plaintiffs appeal. Affirmed as to one
plaintiff, and reversed as to the other.
Argued before BROWN, G. J., and MBS-
TRBZAT, POTTBR, STEWART, and FRA-
ZER, JJ.
W. Horace Hepburn, Jr., of PbUadelphia,
for appellant.
FRAZER, J. This Is an action by a father
and bis minor child to recoyer for injuries to
the latter sustained by reason of alleged neg-
ligence of defendant in operating his automo-
bile. A nonsuit was entered by the court
below as to both plaintiffs, and from this ac-
tion they have appealed.
At the time of the accident, September 6,
1015, the plaintiff, Paul Kuehne, Jr., was five
.rears of age. He and his father, the other
plaintiff, were standing on the west side of
Rising Sun Lane, near Comly street, in the
City of PWladelphla, talking with friends.
This is a suburban section of the city, and
Rising Sun Lane is about 60 feet in width,
with trolley tracks on each side of the street,
and a driveway for vehicles In the center ; the
driveway being of sufficient width to permit
three vehicles to stand abreast. The street
is without sidewalks, but at the place where
plaintiffs were standing is a platform con-
structed of planks, and extending across the
gutter to the car track. The father with
his two children were standing on the plat-
form referred to when one of the occupants
of an automobile, occupied by the child's
mother and others and standing on the op-
posite side of the street from the platform
on which the boy and his father stood, called
to the child, Paul, that there was room for
him in the car. The Iray immediately started
to cross the street, and was about midway
between the platform and the automobile
when he was struck by defendant's car, com-
ing south at a speed estimated by various
witnesses at from 8 or 10 to 40 miles an hour.
There is no dispute, however, that the horn
was not blown, or other warning given of its
approach. Another car was standing on
the same side of the street as the car in
which Mrs. Ku^ne was seated, 100 feet
down the road in the direction from which
defendant's automobile approached, and, to
pass this car, defendant was obliged to turn
to the left side of the road. There were
no obstructions in the street and nothing to
prevent defendant from seeing the persons
standing on the platform adjoining the rail-
way tracks, or the boy on the street after
leaving the platform. The distance from
the platform to the point at which the child
was injured was estimated, by the witnesses,
at from 12 to 20 feet. Witnesses also testified
that when the child started to cross the street
defendant's automobile was in the neighbor-
hood of 75 or 100 feet away, and that the
brakes were not applied to the ear until with-
in about 5 feet from the child, and that fol-
lowing the collision the automobile skidded
on the gravel road for a distance of more
than 30 feet.
The court below concluded the evidence ot
negligence on the part of defendant was in-
sufficient to submit to the Jury, so far as the
rights of the minor were concerned, for the
reason that the accident did not happen at
a street crossing; that the evidence of de-
fendant's failure to give warning of his ap-
proach was negative only; and that there
was nothing to impose upon him the duty of
blowing his horn at the particular spot where
the accident happened.
[1-S] In so far as the qnestion of warning
is concerned, while the evidence of failure
to blow the horn was negative <wl7, there
was no positive evidence that defendant
gave such warning, consequently, the weight
of the negative evidence was for the Jury.
Longenecker v. Penna. R, R. CJo., 105 Pa. 328:
Haverstick v. Penna. R. R. Co., 171 Pa. 101.
32 Atl. 112a However, to the extent that the
rights of the child are concerned, whether
or not warning was given was not a vital
matter, as there is no question of contribu-
tory negligence on his part, the sole ques-
tion in his case being whether defendant,
in the exercise of due care, should have seen
the child In time to avoid the accident The
evidence shows defendant's view of the road,
and of the child on the platform over the
gutter and also in the street, was unob-
structed, nrnking the situation before him
such as to impose upon him the use of due
care to avoid injuring those who were right-
fully using the highway, even though there
was no crossing at this particular point.
There is evidence from which the Jury might
have found that the child did not suddenly
dart in front of the car at a time too late
for defendant to avoid the accident, but on
the contrary that there was ample oppor-
tunity to stop his car had he been looking
ahead. If approaching at an extreme rate
of speed, as testifled to by several witnesses,
and as Indicated by the skidding of the ma-
chine upon endeavoring to stop, it cannot
be said, as matter of law, that defendant
was performing his full duty toward those
who were properly using the highway. As-
suming the car was operated at the mini-
mum rate of speed, testifled to by other wit-
nesses, no apparent excuse is shown for de-
fendant not seeing the child in time to stop
his car and prevent the accident, in view of
the testimony as to the distance which he
traveled from the time the child started to
cross from the platform to the automobile,
and the unobstructed condition of the street.
Consequently, the question whether he had
notice of the presence of the child in the
road in time to appreciate the danger and
avoid a collision was one for the Jury to
determine, under proper instructions from
the court Tatarewicz v. United Tmctloii
Co., 220 Pa. 560, 69 Atl. 995; Bloom v.
Whelan, 56 Pa. Super. Ct 277.
[4, E] In so far as the rights of the father
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are concerned the conflicting' teetlnioqy as to
the meed of the car, together with the dis-
tance required to come to a stop, was suffl-
\Aent to Bnbmlt to the jury on the qnestion
of defendant's negligence In (aerating the
car. As to the contributory negligence of
the father, hla testimony was that before
permitting the child to start across the street
to the automobile in which his wife was
seated he looked in both directions and saw
no car approaching. Ck>nslderlng there was
an unobstructed view of the street for 300
or 400 yards, with the exception of the pres-
ence of another automobile, which was about
100 feet distant, and in view ot the testi-
mony that defendant's car was approximately
75 feet away when the child was permitted
to start across the street, it is useless for
plaintiflT to say he looked and did not see
the automobile when it must have been In
plain view at the time ; hence his negligence
In permitting a child of such tender years
to cross the street alone is too apparent to
require submission to the Jury. To the ex-
tent, therefore, that the father is concerned,
the nonsuit was proper. Glassey v. Heston-
vllle, Mantua & Falrmount Pass. Ry. Co., 57
Pa. 172; Johnson et ux. v. Reading City
Pass. Ry., 160 Pa. «47, 28 Atl. 1001, 40 Am.
St Rep. 752; Pollack v. Penna. R. R. Co.
(No. 2) 210 Pa. 634, 60 Atl. 312, 105 Am. St
Rep. 846.
The fourth assignment of error is sus-
tained, the Judgment is reversed, and the
record remitted with a new venire.
<»7 P«. 88)
In re HUNTER'S ESTATE et al.
(Supreme 0>urt of Pennsylvania. March 5.
1917.)
1. MoRTaAGES <S=>559(3) — Mortgagee's Re-
lease OF Title— Mobtgagob'b Personai,
LiABiLrrr.
Where' a mortgagee has parted with his title
to the mortgaged premises, his release of part
thereof without the mortgagor's knowledge or
consent discharges the mortgagor from personal
liabiUty for any loss to the mortgagee from a de-
fldency in the proceeds in a subsequent sale un-
der foredoaure proceedings, as by such release
the mortgagee assumes the risk of the nnreleased
part of the property.
[Ed. Note. — ^For other cases, see Mortgages,
Cent Dig. { 1592,]
2. MoBTOAOKs 4=9559(3)— Penal Bokd— Lia-
bility.
In an audit of the account of a substituted
trustee of an assigned estate, it appeared that
prior to the assignment the assignor had mort-
gaged real estate and had given a penal bond to
further secure the mortgage debt, and that sub-
sequent to the assignment parts of the realty
were released from the lien of the mortgage,
without the mortgagor's knowledge or consent,
and that the mortgaged premises were after-
wards sold for a sum insufficient to pay the
mortgage. Held, that the mortgagor was dis-
charged of any liability on the bond.
[Ed. Note. — For other cases, see Mortgages,
Cent Dig. { 1592.]
Appeal from Court «f Common Pleas, PhU-
adelpbla.
Henry K. Fox, execute of the estate ot
Elizabedi M. Lassalle, deceased, appeals from
a decree dismissing exceptions to the report
of Charles. H. Mathews, auditor, in the mat-
ter of the estate of James Hunter and John
Hunter, Individually, -and as copartners. Af-
firmed.
Argued before BROWN, O. J., and POT-
TER, MOSCHZISKER, FRAZER, and WAL-
LING, JJ.
F. B. Vogel and Henry K. Fox, both of
Philadelphia, for appellant. George Sterner
and Charles R. Maguire, both of Philadelphia,
for appellees.
WALLING, J. This is an appeal from a
decree of distribution of an assigned estate.
In 1887 John Hunter Individually and the
firm of James and John Hunter made a gen-
eral assignment to John Field, for benefit of
creditors. Prior thereto in 1878 said James
Hunter and John Hunter, being the owners
of certain lands, comprising about 32 acres,
and situate near Fifty-Fifth street and Lan-
caster avenue, Philadelphia, executed a mort-
gage thereon and an accompanying bond to
Wm. C. Houston, administrator, etc., to se-
cure a loan of $27,000, payable in three years,
with interest. Some days later John Hunter
conveyed his interest in the mortgaged prem-
ises to James Hunter, who thereafter and be-
fore the assignment executed a second mort-
gage upon £he same property, by virtue of
which, subsequent to the assignment, the
same was sold by the sheriflT and the title
thereto, subject to the' prior mortgage, be-
came vested in Margaret D. Hunter, who
died in May, 1891, intestate. And In Decem-
ber of .the same year, by partition among
her heirs, such title became vested In Wm.
D. Hunter. There then remained unpaid on
the first loan the sum of $10,000. However,
such title so vesting in Wm. D. Hunter did
not include all the lands embraced in the
orlgloal mortgage, some having been released
meantime as hereinafter stated. On May 26,
1801, the administrator entered Judgment
on the bond accompanying the first mortgage;
and on November 18, 1892, he assigned the
bond and mortgage to James M. Connely, the
father-in-law of Wm. D. Hunter, for the con-
sideration of ?10,000.
Between the date of the assignment for
benefit of creditors and the time of the trans-
fer of the bond and mortgage to Connely.
the holder of the first mortgage had released
from the lien thereof twelve separate pieces
of land; some of which were released for
the nominal consideration of $1 -each. And
it does not appear that the original mort-
gagors, or their assignee, consented to such
release or had knowledge thereof. On No-
vember 23, 1894, at the instence of Connely
and on the Judgment entered on the bond
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as aforesaid, all of the nnreleased part of the
land Included In the first mortgage was sold
by the sheriff for $2,000, at which sale Con-
nely became the purchaser, and on the same
day conveyed a portion of the premises so
bought by him to James Dunlap for 115,000.
Two months later Connely assigned the mort-
gage and judgment entered on the bond to
his son-in-law, Wm. D. Hunter, for the con-
sideration of $1; and the latter same day
reassessed the damages on the Judgment at
$9,281.66. And on February 7, 1895, Con-
nely, also for the consideration of $1, made
a deed to his said son-in-law for the balance
of the land Included in the sheriff's sale
"subject to existing Incumbrance." On the
5th of the following June, Wm. D. Hunter
sold the land conveyed to him by the said
last-named deed to James B. Johnson for
$12,000, "clear of Incumbrance"; by various
transfers, the first mortgage and judgment
on the accompanying bond became vested in
appellant In 1907. Since that date the Judg-
ment has been twice revived, and on each
occasion judgment was entered for want of
an appearance, on two returns of "nihil
habet." The last of these judgments was
entered February 20, 1914, at which time
the damages were assessed at $22,351.22.
James Hunter died In 1896, John Field in
1904, and John Hunter in 1910. The assignee
filed a partial account In 1889 and a final ac-
count In 1897, both being duly audited and
confirmed, and no claim being presented on
account of the first mortgage and bond at
either of the audits.
In 1906 Herman H. Wilson was appointed
substituted trustee In place of John Field,
then deceased. And in 1911 the substituted
trustee filed an account showing a balance
in his bands as the proceeds of a private
sale of real estate, formerly the property
of John Hunter. An auditor was appointed
to pass upon exceptions and report distribu-
tion of the balance; and before faim appel-
lant presented his claim on the revived judg-
ment Other claims amounting to $100,976.07
were also presented and proven before the
auditor; and to such other claims the net
fund for distribution, amounting to $1,790.79,
was distributed by the auditor and court
below, to the exclusion of appellant's claim;
and this appeal was taken from the final
decree of distribution of the fund.
[1] We entirely agree with the condnsion
reached by the court below. Where the
mortgagor has parted with his title to the
mortgaged premises, a release of a part there-
of by the mortgagee, without the knowledge
or consent of the mortgagor, will discharge
the latter from personal liability for any
loss to the mortgagee resulting from a de-
ficiency In the proceeds of a subsequent sale
In foreclosure proceedings. Meigs v. Tun-
nlcllffe, 214 Pa. 495, 63 Atl. 1019, 112 Am.
St R^. 769, 6 Ann. Cas. 549. See opinion
by Mr. Justice Stewart. By such release
the mortgagee assumes the risk of the nn-
released portion of the property being of
sufficient value to secure his debt That he
was not mistaken in this case appears from
the fact that shortly after the sherUTs sale
such nnreleased property was resold for more
than double the amount unpaid on the mort-
gage. However, in the absence of fraud or
collusion at the sheriff's sale, the profits
on such resales would not inure to the ben-
efit of the original mortgagors.
[2] The rights of creditors were fixed by
the assignment; and while the confession of
judgment thereafter upon the bond would as
against the mortgaged premises relate back
to the recording of the mortgage, it would
not give the obligee In such bond any rights
superior to those of other creditors as to the
balance of the assigned estate. The entry of
such judgment did not create a Hen on land,
aside from the mortgaged premises, which
had previously passed from the mortgagors
by deed of assignment for benefit of credi-
tors. Cowan, Casey & Hutkoff v. Penna.
Plate Glass Co., 184 Pa. 1, 38 AtL 1076. TtiO
act of AprU 2, 1822 (7 Smith's Laws, 551;
Stewart's Purdon, vol. 1, p. 1185), to which
our attention was called at bar, authorizes
the collection of the mortgage debt from the
nnreleased part of the premises, and provides
for the protection of the rights of the re-
spective part owners under such circum-
stances, bat makes no reference to the per-
sonal liability of the mortgagor, and Is not
applicable to this case. As in our opinion the
release above stated of parts of the mort-
gaged premises is a complete answer to ap-
pellant's claim OR the fund for distribution,
it is not deemed necessary to discuss other
features of the case.
The assignments of error are overruled,
and the decree aflarmed at the costs of the
appellant
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Conn.)
AFFEAIi OF SCHELIiKK
81
(91 Conn. 709)
Appeal of SOHBLLEN.
(Snprane Court ot Ehrrore of Connecticnt. Jnne
14, 1917.)
Municipal Cobpor.\tion8 ®=»514(7)— Publio
improvemenis — aeskssuents.
Where the city has constructed a sewer im-
provement, collected all the assessments there-
for, and made full payment, it cannot raise an
amount in excess of the cost by assessing benefits
to one who has subsequently erected a dwelling
and made connections with the sewer.
[Ed. Note.— For other cases, see Municipal
Corporations, Cent. Dig. { 1211.]
Appeal from Superior Court, New London
County ; Milton A. Shumwa.y, Judge.
In the matter of sewer assessment of the
borough of Groton. From a judgment con-
firming an assessment of benefits for sewer
Improvement, Pierre U Schellen, an abutting
landowner, appeals. Reversed and remanded.
The borough of Oroton is empowered by
Its charter to lay out and construct a sewer
system, to have Bupervlslcm and control of
the same, and to assess against persons whose
property is specially benefited thereby such
sums as they ought justly and equitably to
pay therefor to be determined according to
such rule of assessment based upon frontage
and area, either or both, as it may adopt as
being just and reasonable. Pursuant to this
authority, the borough, in 1913 and 1914,
laid Di't and consttructed a sewer system, and
assessed against the several owners of land
abutting on the streets in which it was built
the estimated cost of Its construction. This
assessment was completed in May, 1913. The
appellant, as the owner of a tract of land
located at the comer of Broad and Bams-
dell streets, was one of the persons assessed.
He and all others against whom the assess-
ments were made paid the amounts thereof
to the borough. Preparatory to making these
assessments, the borough, acting under the
authority of its charter, adopted a rule for
the assessment of benefits which provided
that the estimated cost of the work should be
assessed on the property specially benefited
In the proportion of four-tenths to frontage
and six-tenths to area ; the area to be calcu-
lated to a line parallel with and not more
than 100 feet distant from the street front-
age. The rule provided for a departure from
Strict adherence to the above provisions
where such adherence would lead to Injustice
and for a certain frontage exemption in the
case of comer lots. It was provided that
the rate of assessment should be 60 cents per
lineal foot ot frontage, and 7% mills per
square foot of area benefited. The assess-
ments of 1913 were made in conformity to
this rale. No change in or addition to any
ot the sewers has been made since their orig-
inal construction in 1913 and 1914.
Subsequent to May, 1918, the appellant
built a house upon his land which was lo-
cated more than 100 feet from the street
and connected the same with the sewer, and
certain others did likewise. A modification
of the rule of assessment was then made by
the borough so that it was provided that in all
cases where a house situated more than 100
feet from the street should be connected with
the sewer, a further and additional assess-
ment should be made against the owner
on account of the sewer with which connec-
tion was made, such additional assessment
to be made at the rate of 7% mills per square
foot of area upon so much land not thereto-
fore covered by the existing rule as would be
included within a circle having a radius of
50 feet from the center of the house. Fol-
lowing this modification and pursuant to its
provisions, an additional assessment was
made against the appellant amounting to
$255.16. From that assessment the present
appeal was taken.
Other facts not pertinent to the opinion
need not be stated.
Jeremiah J. Desmond, of Norwich, and
Warren B. Burrows, of New London, for
appellant. Arthur T. Keefe, of New London,
for appellee.
PRENTICE, C. J. (after stating the facts as
above). It is an open question whether the
borough's power to assess benefits on account
of this public Improvement was not exhaust-
ed before the attempted assessment appealed
from was made In 1916, even though the actu-
al cost of the work exceeded the estimated
cost which was originally assessed and scxne
portion of the actual cost remained undis-
tributed over the property specially benefited.
City of Chicago v. People ex rel. Norton, 66
lU. 327, 332; Meech v. City of Buflfalo, 29
N. Y. 198, 215. Doubtless authority to make
a supplemental assessment to cover cost not
already assessed may be conferred by stat-
ute; but there appears to be no sudi grant
of power to the borough of Groton. That
question, however, is one which we have no
occasion to answer, since it nowhere appears
in this record that the actual cost of the
sewer system constructed exceeded its esti-
mated cost which, pursuant to the rule adopt-
ed by the borough, was assessed on the prop-
erty specially benefited and by the owners
of that proi)erty wholly paid In. In so far as
appears, the borough has been fully compen-
sated for the cost of construction by the prop-
erty owners q>eclally benefited and assessed.
It is without authority to raise an amount in
excess of the cost of a public improvement
through the medium of an assessment of
benefits, and that for aught that appears is
what the borough undertook to do when it
made the assessment of 1916 against the ap-
pellant
There is error; the Judgment is set aside,
and the cause remanded, with directliMJ to
vacate the assessment appealed from. The
other Judges concurred.
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82
1(0. ATLANTIC BGPORTEB
(Conn.
(91 Conn. <80)
PICKETT T. BUIOKOLDT.
(Supreme Court of Errors of Oonnecticnt June
14, 1917.)
1. Insane Peksons <S=392— Action bt Con-
8ERV.\T0R.
Action to recover property of an incapable
person would not be defeated because brought
in his coDservator's own name and not in the
ward's name, where the complaint alleged the
conservator brought the action as such conserve
ator, since be was the proper person to brini;
the action, and under Ueu. St. 1902, $| 622, 023,
as to nonjoinder and misjoinder and substi-
tuting plaintiff, the ward's name might be sub-
stituted on motion.
[Ed. Note.— For other cases, see Insane Per-
sons, Cent. Dig. §{ ICl, 1G2.]
2. Insane Pebsons «=»44 — Action bt Con-
servator—Death OF Incapable Person.
Death of an incapable person docs not abate
action brought for his benefit by his conserv-
ator.
[Ea. Note.— For other cases, see Insane Per-
sons, Cent Dig. §§ CO, 70.]
3. Insane Perso.ns €=44— Action by Con-
servator—Death OF Incapablf, Person-
Substituted Plaintiff— Admi.vistrator.
Where conservator of an incapable person
had sued in his own name for benefit of the
ward, on the ward's death his administrator had
a right to be substituted as plaintiff under Gen.
St. 1902, i 62.3, as to subxtituted plaintiff, and
Survival Act (Pub. Acts 1903, c. 193) I 1.
[Ed. Not©.- For other cases, see Insane Per-
sons, Cent. I>ig. i§ C9, TO.J
4. Insane Persons €=»44 — Action by Con-
servator — Death of Incapable Person —
Survival of Cause of Action— "iUQUT of
Action."
I'ndor the Survival Act, I 1, providing that
"no cauNe or right of action shall be lost or
destroyed by death, etc., survival of actions is
the rule and not the exception, and the presump-
tion is that every cause or right of action sur-
vives until the contrary is made to appear; the
phrase "right of action" including the rignt to
commence and maintain an action and being
broad enough to include a right to be admitted
to prosecute a pending action either as a co-
plaintiff, or substituted plaintiff (citing Words
^ud Phrases, Right of Action).
[Ed. Note. — For other cases, see Insane Per-
sons, Cent Dig. §§ 09, 70.]
3. Insane Persons <&=>44— Action bt Cok-
sebvator — Deatu of Incapable Person —
Sucstitutio.v op Parties — Motion to
Erase from Docket.
Under Gen. SL 1902, | 622, providing that
no action shall be defeated by nonjoinder or mis-
joinder of parties, where administrator of an
incapable person after his death entered to
prosecute nnder Survival Act, § 2, an action
conunenced for such person in his lifetime by his
conservator in bis own name, instead of apply-
ing to be substituted as plaintiff under Gen. St.
1902, § 623, as to stibstituted plaintiff, defend-
ant's appropriate remedy was not a motion to
dismiss and erase from the docket, but a motion
to strike from the record the entry to prosecute.
[Ed. Note.— For other cases, see Insane Per-
sons, Cent Dig. §§ 69, 70.]
Appeal from Superior Court, New Haven
County ; Joseph P. Tuttle, Judge.
Action by Edwin S. Ilckett, Conservator,
against George W.. Rulckoldt ITrom order
erasing case from docket, plaintiff appeals.
Error, and cause remanded, wltb dlrectioii to
restore it to docket
Leonard M. Daggett and Robert J. Wood-
ruff, botb of New Haven, for appellant Phil-
ip Pond and Louis M. Rosenbluth, both of
New Haven, for appellee.
BEACH, J. This action was brought by
the conservator in his own name to recover
real and personal pr(^erty alleged to have
been transferred without consideration by
the ward to his brother, while under the un-
due Influence of the transferee. Before any
answer .was filed the ward died, and the
Union & New Haven Trust Company, his
administrator, entered to prosecute. Ten
months afterward the defendant filed a sug-
gestion on the record of the termination of
the conservatorship, and moved that the
cause be dismissed and erased from the dock-
et. The motion was granted on the ground
that the action was originally improperly
brought In the name of the conservator, and
not in the name of the ward by the conserva-
tor acting in his behalf ; that as the action
never stood In the name of the deceased ward.
the statute authorizing the administrator of
a deceased plaintiff to enter and prosecute
does not Applj ; and that ainoe no motiCHi was
made to substitute one plaintiff for another,
the action was without a plaintiff. The old
rule was that a conservator could not main-
tain an action to collect the ward's debts In
his own name as conserrntor. Treat v. Peck,
5 Conn. 280; Hutchins v. Johnson, 12 Conn.
376, 30 Am. Dec. '622; Riggs v. Zaleskl, 44
Conn. 120. Even if the rule still prevails,
the consequences of a failure to observe it are
very different now from .what they were
when Rlggs v. Zaleski was decided in 1876.
[1] The conservator was the proper per-
son to bring the action,' and In his complaint
he alleges thnt he brings it as the conserva-
tor of Arthur Rulckoldt. Under sections 622
and 623 of the General Statutes, the action
could not have been defeated, in Ruickoldt's
lifetime, because not brought in his name.
Being on the face of the complaint beneficial-
ly interested, his name might have been en-
tered or substituted as a plaintiff, on motion.
In the meantime, the action, even if brought
by the wrong plaintiff, was still pending. As
was said in nowen v. National Life Ass'n, 63
Conn. 460, 476, 27 Atl. 1009, 1062, the Prac-
tice Act has "radically changed the old prac-
tice with reference to joinder, admission and
dr(H>plng of the parties to a suit, and the
changes were intentionally and deliberately
made."
[2] When Rulckoldt died the action did
not abate; nor was the. consei-vator dis-
charged by his ward's death. He still had
the estate in his hands and must account
for it to the court of probate. Until he .wus
discharged the action was not without a
plaintiff and, subject to possible objection
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BLUE RIBBON GARAGE v. BALDWIN
83
which the defendant did not make, It remain'
ed pending In court, with the conservator as
the sole nominal plaintiff, until August 7,
1915, when the administrator entered to pros-
ecute. If the administrator then had a right
to enter, the action remained lu court with
two plaintiffs, until the final account of the
conservator was accepted and he was dis-
charged by the court of probate. The record
does not show when the couserrator was dis-
charged, but that fact was not suggested on
the record until May, 1916, ten months after
the administrator had entered to prosecute.
[3] We think the administrator had a right
to be substituted as plaintiff under section
623 of the General Statutes. Rulclcoldt was
the party for .whose benefit the action was
brought, and his right to be substituted as a
plaintiff In the action was a substantial right
which survived to the administrator.
[4] The broad language of section 1 of the
Survival Act of 1903 Is that :
"No cause or right of action shall be lost or de-
stroyed by the death of any person, but shall
survive in favor of or against the executor or
administrator of such deceased person."
Under this statute the survival of actions
Is the rule and not the exception, and the
presumption is that every cause or right of
action survives until the contrary is made
to appear by way of exception to the rule.
The phrase "right of action" includes the
right to CMnmence and maintain an action.
Words and Phrases (voL 7) p. 6266. It Is
broad enough to include a right to be admit-
ted to prosecute a pending action either as a
coplaintlff, or substituted plaintiff; and un-
der section 623 the administrator had a right
to be sut)stltuted as plaintiff in place of the
conservator. Nobody would doubt that the
administrator of a decedent, who ought to
have been made a defendant, but was omitted
through mistalce, could be Joined as defendant
in an action which survived against the es-
tate, and we see no reason why the admin-
istrator of a decedent who ought to have
been joined as a plaintiff, but was omitted
through mistalce, may not be admitted as a
coplaintlff, or as substituted plaintiff, if nec-
essary, in a pending action which survives in
favor of the estate.
. [8] Strictly speaking, the right which sur-
vived to the administrator In this case was
the very same right .which the decedent had
in his lifetime ; viz. the right to be substitut-
ed as plaintiff under section 623 of the Gen-
eral Statutes. It is therefore true, as the
memorandum of the superior court suggests,
that the administrator ought to have made
application under that statute to be substitut-
ed as plaintiff. Instead of entering to prose-
cute under section 2 of the Survival Act.
Nevertheless he succeeded in making himself
a party on the record by entering to prose-
cute, and the defendant's real grievance was
not that the administrator had no right to
come into the action, but that be had come in
through the wrong door. That being so, the
appropriate remedy was not a motion to dis-
miss and erase from the docket, but a motion
to strike from the record the entry to prose-
cute. Section 622 of the General Statutes
provides that "no action shall be defeated by
the nonjoinder or misjoinder of parties";
and this must include the lesser proposition
that no action should be defeated because
the right party came into it, or attempted to
come into it, in the wrong way.
There is error, and the cause is remanded,
with direction to restore it to the docket.
The other Judges concurred.
(n Conn. 674>
BLUB RIBBON GARAGE, Inc.. r. BALD-
WIN et aL
(Supreme Court of Errors of .Connecticut. June
14, 1917.)
1. Btixs Airn Notes *=»414— Noticb or Dis-
EONOE.
Under Negotiable Instrumeiits Law (Pub.
Laws 1897, c. 74) as well as the former law
merchant, a holder for collection of negotiable
paper, which has been dishonored, performs his
full duty in respect to notice of its dishonor by
giving such notice in due form and time to the
party from whom he receives it
[Ed. Note.— For other cases, see Bills and
Notes, Cent. Dig. §§ 1142, 1148-1155.]
2. Bills and Notes ®=>414 — Notick of Dis-
HONOB.
Under Negotiable Instruments Law, as well
as former law merchant, where negotiable pa-
per before presentment has passed through sev-
eral hands, whether of mere holders for collec-
tion or of parties beneficially interested therein,
notice given by each holder in turn to the prior
one from whom, it was received is notice suffi-
ciently given to fix' the liability of all indorsers
included in the chain of notice, each holder for
collection being regarded as a real holder, and
his relation to the party from whom the paper
is received being such that the latter is entiued
to be treated as his immediate principal; and
it is not necessary that notice of dishonor, to
be effective in fixing the liability of indorsers,
should be given by the holder at presentment di-
rectly to the beneficial owner, disregarding all
intervening holders for collection only.
[Ed. Note.— For other cases, see Bills and
Notes, Cent Dig. §§ 1142, 1148-1155.]
3. Bnxs AND Notes <g=>539— Action Against
Indobseb— Findings of Fact.
In action against indorser of a note which
had been sent to a trust company for collection,
a finding that the trust company had never been
plaintiff's agent for any purpose whatsoever
might be disregarded as a mere conclusion of
law ; the facts showing the trust company to be
a holder for collection and therefore as matter
of law the owner's agent.
[Ed. Note.— For other cases, see Bills and
Notes, Cent Dig. §S 1911-1913, 1934.]
4. Bills and Notes €=»420— Notice of Dis-
HONOB.
Where the holder of a note, receiving notice
of its dishonor, notified a prior indorser and
the original payee of the dishonor by telephone
and personal visit and oral notification respec-
tively, this was sufficient compliance with the
Negotiable Instruments Law.
[Ed. Note.— For other cases, see Bills and
Notes. Cent Dig. {§ 1138-1140.]
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84
101 A.TLANTIO REPORTBB
(Conii.
Appeal from Court of Common Pleas, Falr-
3eld County; John J. Walsh, Acting Judge.
Action by the Blue Ribbon Garage, Ineor^
porated, against R. L. Baldwin and others.
From Judgment for plaintiff, the named de-
fendant and others appeaL No error.
On February 15, 1915, the plaintiff be-
came the owner of the note in suit in part
payment for the sale to the defendant Bald-
win of an automobile. The note was drawn
by the defendant the State of Maine Lumber
Company, to the order of the defendant At-
water, and was made payable at the Con-
necticut Trust & Safe Deposit Company, of
Hartford. It bore the indorsements of the
Ave individuals who were made defendants,
Including Atwater and Baldwin, against
whom judgment was rendered. The plain-
tiff still owns the note, which remains un-
paid. The date of maturity was Match 2,
1915.
February 26, 1915, the plaintiff deposited it
for collection with the First Bridgeport Na-
tional Bank of Bridgeport. That bank for-
warded it in due course of business to their
agents, the State Bank of Albany, for col-
lection. The State Bank of Albany in like
manner forwarded it for collection to Its
agents, the Hartford National Bank of Hart-
ford. On or before the morning of March 2,
1915, the last-named bank delivered it to the
Connecticut Trust & Safe Deposit Company,
the place of payment. Payment not having
been made at the close of business upon that
day, it was handed by the discount clerk of
the trust company to Its teller, who demand-
ed payment, and, no payment having been
made, wrote across the face of the note:
"Protested for nonpayment Mar. 2, 1915,
Harvey W. Corbln, Notary Public." He then
made a certificate of protest and ten notices
of protest, one addressed to each of the banks,
and each party whose name appeared upon
the note, pinned the certlflcate to the orig-
inal note and placed the note and certificate
thus attached, together with the ten copies of
the notice of protest, in an envelope and mail-
ed it with Its Inclosures, Including two-cent
stamps for each notice save one, to the Hart-
ford National Bank. On the following day,
the last-named bank mailed the note, certifi-
cate of protest, and notices, save only the no-
tice to itself, to the State Bank of Albany.
On March 5th, the First Bridgeport Nation-
al Bank received from that bank In the first
mail the same inclosures less the notice to the
State Bank of Albany. The Bridgeport bank
Inmiedlately thereafter renialled them, less
the notice to it, to the rlai"tW. who received
them during the forenoon of the same day.
Upon that day Baldwin was notified by the
plaintiff's treasurer by telephone of the dis-
honor. On the following day, Atwater, who
resided in New Haven, was visited by the
plaintiff's agent and orally notified. No at-
tempt was made by the plaintiff to notify the
other indorsers.
i George E. Beers, of New Haven, and Dan-
iel J. Danaher, of Meriden, for appellants
Baldwin and Atwater. Jotm Smith, oC
Bridgeport, for appellea
PRENTICE, O. J. (after stating the facts
as above). [1,2] The course of condact of
the notary who made presentment of the note
In suit and of the several banks through
whose bands it passed In the collection pro-
cess conformed strictly, in so far as notice
of dishonor was concerned, to the require-
ments of the law merchant formerly control-
ling and to those of the negotiable instrument
law now in force. By the overwhelming
weight of authority under the law merchant,
a holder for collection of negotiable paper,
which had been dishonored, performed his full
duty in respect to notice of its dishonor by
giving such notice in due form and time to
the party from whom he received it Where
the paper before presentment had passed
through several hands, whether they were
those of mere holders for collection or of
parties having a beneficial interest In it, the
approved rule was that notice given by each
holder In turn to the prior one from whom
it was received was notice suflBclently given
to fix the liability of all indorsers included
in the chain of notice. United States Bank
V. Goddard, 5 Mason, 366, 375, Fed. Cas. No.
917; Eagle Bank v. Hathaway, 5 Mete
(Mass.) 212, 215; Phlpps v. MlUbury Bank,
8 Mete. (Mass.) 79, 84; Farmers' Bank v.
Vail, 21 N. T. 485, 487; Seaton y. Scovlll,
18 Kan. 433, 438, 21 Am. Rep. 212, note 26
Am. Rep. 779; Wood v. Callaghan, 61 Mich.
402, 411, 28 N. W. 162, 1 Am. St Rep. 597;
Daniel on Negotiable Instruments, 331. Each
holder for collection was regarded as a real
holder and his relation to the party from
whom the paper was received such that the
latter was entitled to be treated as his im-
mediate prindpaL Bartlett v. Isbell, 31
Conn. 296, 299, 88 Am. Dec. 146; Phipps
V. Millbury Bank, 8 Mete. (Mass.) 79, 84;
Freeman's Bank v. Perkins, 18 Me. 292, 294;
Howard v. Ives, 1 Hill (N. T.) 283, 264 ; Ex-
change Bank v. Sutton Bank, 78 Md. 577, 587,
28 Atl. 563, 23 L. R. A. 173.
The Negotiable Instruments Act has not
changed the law In any of these respects.
The defendant's broad contention that no-
tice of dishonor to be effective in fixing the
liability of Indorsers should be given by the
holder at presentment directly to the benefi-
cial owner disregarding all intervening hold-
ers for collection only Is without foundation
in the act, and we have so distinctly held.
Gleason v. Thayer, 87 Conn. 248, 250, 87 Atl.
790, Ann. Cas. 1915B, 1069. Such a require-
ment, necessitating, as It would. Inquiries as
to who was the real owner and what his ad-
dress, and Involving embarrassment and com-
plications in accounting as between those
through whose hands the paper passed in the
process of collection, would be fruitful of
such annoyances, difficulties, and hazards of
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APPEAL OF CX)RDANO
85
miscarriage and loss as to make It an unsat-
isfactory substitute for the simple, orderly,
and effective method pursued in this case and
by us heretofore approved. The case of East
Haddam Bank v. Scovil, 12 Conn. 303, fur-
nishes a good example of easily possible con-
sequences. The law under consideration in
Gleason v. Thayer was, to be sure, the Ne-
gotiable Instruments Act as it was enacted
in Mew York: but Its provisions of present
pertinence were identical with those of our
own.
The defendant's counsel undertake to es-
cape from the operation of the decision in
that case by an attempt to distinguish be-
tween the two cases npon the ground that
the note in Gleason v. Thayer presumably
was indorsed by the Whaling Bank to the col-
lection bank In New Tork, whereas it does not
appear by the record that the note in this
case, when presented for payment, bore any
bank Indorsements. It would doubtless be
quite In accordance with the fact to assume
that It did, but that Is not a matter of con-
trolling Importance. The note, as indorsed
npon Its delivery to the Bridgeport Bank,
was transferable by delivery, and the finding
is that It was sent along through the chain
of banks for collection. Each bank received
and transmitted it to its agents for that pur-
pose, and each receiving bank became Its
bolder for collection with all the rtgbts,
powers, and obligations attached to such
holders. Bast Haddam Bank v. Scovil, 12
Ck«in. 302, 311.
[3] Counsel for the defendant attach great
Importance to one of the paragraphs in the
finding, and build much of their argument
upon It The paragraph is to the effect that
the Connecticut Trust & Safe Deposit Com-
pany has never been the plaintiff's agent for
any purpose whatsoever. That finding is
one of law and not of fact The legal char-
acter of the relation in whi<di tne trust com-
pany stood to the owners of the note is to
be determined as a legal conclusion upon the
t&cts. The finding, to be sure, does not state
In so many words that the Hartford Nation-
al Bank delivered the note to the trust com-
pany for collection for its account, but there
is no other reasonable inference from" the
facts found than that it did so. The conduct
of the parties throughout so Indicates quite
unmistakably. As a bolder for collection is,
as a matter of law, the agent of the owner,
the finding of the court upon this matter
mnst be disregarded as not Justified as a
matter of law by the facts. Gleason v. Thay-
er, 87 Conn. 248, 250, 87 Atl. 700, Ann. Gas.
1915B, 1060.
[4] The action of the plaintiff In giving
notice to the defendants Baldwin and At-
water, following its receipt in due course
from the Bridgeport Bank, of the notice of
dishonor, complied In all respects with the
requirements of the law, and no complaint of
Irregularity in that respect is made by the de-
fendants.
Certain evidence tending to prove a bank-
ing custom In the matter of giving notices of
dishonor w&a received against objection that
it was not permissible to show conformity to
a custom at variance with the provisions of
statute. The court has found no such cus-
tom, nor did it decide the case upon the
strength of one. Its decision was based up-
on the provisions of statute and compliance
therewith.
Two or three objections to the admission
of testimony, offered to show that the Hart
ford National Bank mailed the note, certifi-
cate of protest and notices to the State Bank
of Albany on March 3, relate to details which,
In view of other testimony, were unimportant
The court was amply Justified in finding that
it did so upon proof that these papers were
recdved by the Bridgeport Bank by first
mail on the 5th contained in a letter from
the State Bank of Albany addressed to It
There Is no error. The other Judges con-
curred.
(tl Oonn. 718)
Appeal of CORDANO.
(Supreme Court of Errors of Connecticut June
14, 1017.)
1. Intoxicattno Liqtjobs 9=>103-^License8
"""ASSIQNMETNTS
Under Pub. Acts 1915, c. 282, prohibiting
granting ot licenses to sell intoxicating liquor
within 200 feet of a church, bnt exempting
transfer applications which are left to the dis-
cretion of the commissioners, the owner of a
license, whether or not he lias qualified to sell
under it, may sell and assign it as a piece of
property to another who may make applica-
tion to sell under it as a transferee.
[Ed. Note. — For other cases, see Intoxicating
Uquors, Cent Dig. $$ 108-112.]
2. Intoxicatino Liquobs €=»103— Licenses
— cuaractebistics.
Property in a license to sell intoxicating liq-
uor is recognized by law to the fullest extent as
property having a recognized pecuniary value
and the subject of sale, attachment levy, or re-
plevy.
[PM. Note.— For other cases, see Intoxicating
Liquors, Cent Dig. i! 108-11Z]
3. Intoxicating Liqdobs $s>103 — Licenses
Pub. Acts i»15, c. 282, prohibits the want
ing of licenses for places located within 20o feet
of a church, but exempts transfers from the
operation of the statute. Chaijter 36 provides
that a license sold upon execution shall for it&
unexpired term be as valid in the hands of its
purchasers as in the bands of the original li
censee, provided that before the purchaser may
sell thereunder he shall conyjly with all the re
quirements relative to the procuring of an origi
nal license. A license was sold on execution and
purchased by a brewing company which did not
qualify as a licensee thereunder, but transferred
it to one who made application. Subsequent to
such assignment a chnrch was erected within
200 feet of the saioon. Held that transfers be-
ing exempt from the operation of the statute,
the assignee might qualify to sell under the li-
cense.
[Ed. Note.— For other cases, see Intoxicating
Liquors, Cent Dig. §$ 108-112.]
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86
101 ATLANTIC BBPOBTEB
(OODD.
4. Intoxicating Liqitobb «=3lO&— Licenses
—Fraud.
The assignee of a liqnor license sold upon
execution and purcliased by a brewing company
which failed to qualify as a licensee thereunder
is not guilty of fraud in applying for permis-
sion to sell under the license as being in no posi-
tion to claim such rights where Pub. Laws 1915,
c. 282, expressly exempts transfers from the op-
eration of the prohibition against licensing
drinking places within 200 feet of a church.
[Ed. Note.— For other cases, see Intoxicating
Liquors, Cent. Dig. §S 108-112.]
5. Intoxicatino Liquobs 9=>103— Licenses
— Fkacd.
The assignee of a liquor license purchased
by a brewery on execution against the original
holder is not guilty of fraud in applying for per-
mission to sell thereunder because of the fact
that the assignor had not in fact perfected its
assignment to the applicant at the time he ap-
plied for permission to sell; the facta being
known to the county commissioners.
[Ed. Note.— For other cases, see Intoxicating
Liquors, Cent Dig. §S lOS-112.]
Appeal from Superior Court, litcbfleld
County; William L. Bennett, Judge.
Remonstrance by Nathaniel Cordano to the
action of the County Commissioners in grant-
ing the transfer of a liquor license. Affirmed
on reservation to superior court, and re-
monstrant appeals. Affirmed.
In 1915 the connty commissioners of Litch-
field county granted to T. J. SulUran a li-
cense to sell spirituous and intoxicating liq-
uors at 215 Main street, in Winsted, expiring
October 31, 1916. In June, 1916, this license
was sold on execution against Sullivan. The
Yale Brewing Company was the purchaser.
That company did not qualify as a licensee
under the license, but sold the same to one
Davis, who did apply on July 31, 1916, for a
transfer of the license to him.
Subsequent to November, 1915, and the
date of Davis' application, a church had been
built and opened for services within 200 feet
of the saloon. A remonstrance was filed to
Davis' application upon the ground of the
proximity of the church to the saloon. Upon
the hearing before the commissioners no wit-
nesses were produced to establish the ua-
suitability of the place, but the facts, as to
its proximity to the church, were agreed
upon as the facts upon which the commis-
sioners' decision was to be rendered. The
claim was made In behalf of the remon-
strance that the application was to be regard-
ed as an original one, and that therefore the
prohibition of the statute against the grant-
ing of a license for a place within 200 feet
from a church edifice was applicable to the
situation, and forbade the transfer of Sul-
livan's license to Davis. This claim was
overruled, and the application granted. From
this action the appellant, who was one of the
remonstrants, appealed.
Davis is a suitable person to receive a li-
cense.
Frank B. Mnnn, of Winsted, for remon-
strating taxpayer. Walter Holcomb, of Tor-
rington. for applicant for transfer. John T.
Hubbard, of Litchfield, for county commis-
sioners.
PRBNTICB, C. J. (after stating the facts
as above). The stipulation of counsel npon
which this reservation was made limits the
questions, whose answers should determine
the Judgment to be rendered by the superior
court under our advice, in substance to two,
as follows: (1) Was the county commission-
ers' action in granting Davis's application for
a transfer to him of Sullivan's license in vio-
lation of the provisions of statute touching
licenses for places located within 200 feet of
a church? and (2) Was Davis's application
a fraudulent one?
Any question that might have been made
in the superior court that the county commis-
sioners erred in their exercise of discretion
in granting the application is waived.
[1] It appears to be conceded by the remon-
strant appellant that, if Davis had received a
transfer from Sullivan, his application to the
commissioners would not have encountered
the church prohibition. Such certainly would
have been the casfs since chapter 282 of the
Public Acts of 1915, which embodies that pro-
hibition, specially excepts from its operation
transfer applications, and leaves the decision
in their case to the discretion of the commis-
sioners, in view of the circumstances of each
particular case.
Davis, however, did not hold an assignment
to himself from Sullivan, the licensee. His
right to the license came to him from the
Yale Brewing Company, who had purchased
It upon an execution sale, and had never qual-
ified as a licensee under it. The remon-
strant's contention is that under such con-
ditions he did not occupy the position of
one who .was entitled to a transfer of the
license within the meaning of our license
statutes, and therefore could not avail him-
self of the exceptions provided in chapter 282
of the Public Acts of 1915 in cases of trans-
fer. His claim is that the exception made in
that act in favor of transfers of licenses re-
fers'cmly to such as attend the passing of
the ownership of the license directly from
the licensee to the applicant for a transfer
and without the intervention of any other
person's ownership of the license, and that
all other persons not so deriving title to the
license appear before the county commis-
sioners as original applicants and subject to
the regulations governing such applicants.
In support of this position he points to chap-
ter 148 of the Public Acts of 1916, where it
is provided that any licensee, or In case of
his death his administrator or executor, may,
with the consent of the county commission-
ers, transfer his license. This, he says. Is
Inclusive of all transfers which the law rec-
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APPEAL OF CORDANO
87
ognizes as sncb, and eonfincB the power to
make assignments, which by the approval of
the county commlsslonera may become trans-
fers, to licensees.
This coDStmction of our statute la exceed-
ingly narrow and technical, and does not com-
port with sound reason. It reaches not only
thoSe who, as here, are iHircfaasers of a license
at an execution sale, but also those .who bold
voluntary assignments from the owner of a
license, provided they have not put them-
selves in a position to engage In the liquor
business under its authority. We search in
vain for a practical reason for the distinction
thus made between licensed and nonlicensed
owners of a license in the matter of their
competency to make an assifniment of the
license which may be perfected as a transfer
by the action of the county commissioners.
Espedally hard is it to find a reasonable basis
for such dlstinctioD, since ownership by pur-
chase and assignment does not carry with it
the right to utilize the license in the conduct
of the business. In every case one who ac-
quires an outstanding license is required to
obtain the approval of the county commis-
sioners before be can sell under it. As the
license authorities have reserved to them the
l)ower to dictate as to .who among assignees
may exercise the francliise by becoming
sellers, and are called upon in every case to
exercise that power, it is difficult to discover
nvbat abuse can possibly arise from making
assignees of nonlicensed persons transferees
of the license which is not to be anticipated in
the case of assignees of licensed persons. The
public interest is not concerned with the char-
acter and suitability for the conduct of the
lliiuor business of a seller of a license who
'does not prc^Ktae to operate under it. What
is Its vital concern is the character and suita-
bility of the purchaser .who applies for leave
to sell under the license.
[2] Our law recognizes to the fullest extent
the quality of property in a license. It Is
property having a recognized pecuniary value
and the subject of sale, attachment, levy, or
roplev}'. Sayers' Appeal, 89 Conn. 315, 317,
94 AtL 358 ; Qulnnlpiac Brewing Co. v. Hack-
barth, 74 Conn. 392, ."^5, 50 AU. 1023. As
Vtopeity and the subject of sale, the owner
may prima facie at least sell It and place the
purchaser in his position as owner. What is
there to impose restraint upon this power of
substitution of owners so that only one class
of them, to wit, those who have qualified as
licensees under the license, are free to make
the substitution as fully and completely as
the law in other resi)ect9 permits It to be
made? The statutes expressly impose none,
and none is to be found by way of implication
unlesi4 the remonstrant's construction of chap-
ter 148 of the Public Acta of 1915 Is to be
accepted as correct As we already have had
occasion to ol>serve, practical reasons in sup-
port of that construction are not apparent
On the other hand, it Is easy to discover rea-
sons and cogent ones In opposition to it. We
are of the opinion that the owner of the U-
o«ise, whether or not he has qaolifled to
sell under it, may sell and assign it as a
piece of property to another who may make
application to sell under it as a transferee.
[3] But the remonstrant is not driven to
rely upon the broad proposition Just dis-
cussed. He advances a more narrow one
based upon that portion of chapter 36 of the
Public Acts of 1915, which provides that a
license sold upon execution shall for its
unexpired term be as valid in the hands of
Its purchaser as in the hands of the original
licensee, "provided before such purchaser
may avail himself of the benefit of such
license, he shall comply with all the require-
ments of law relative to the procuring of an
original license." His claim is that here,
by Implication at least, is a direction that
an execution purchaser, and of a necessity
therefore his assignee, must if he would
avail himself of any beneficial use of the
purchnsed license, appear before the county
commissioners in all respects as an original
applicant, and be governed by all the statu-
utory regulations concerning the granting of
licenses to such applicants. As one of these
regulations is the prohibition of the issuance
of a license to sell at a place located within
200 feet of a church edifice, he says that
it follows that an execution purchaser appli-
cant comes within the operation of that pro-
hibition.
He is, of course, correct in his statement
that an assignee of an execution purchaser
can stand in no better position as an ap-
plicant for leave to sell than would his as-
siamor if he were making such application.
If It be so that the law provides a special
rule for the case of an execution purchaser
so that he is made to occupy a different and
less advantageous position when he seeks to
utilize his purchase by qualifying as a seller
from that occupied by voluntary assignees of
licensed persons, then, without doubt, every
owner under him of the license stands in no
better position. The controlling question
therefore is: Does our law make execution
purchasers a class apart from all other pur-
chasers, and subject them, when they seek to
avail themselves of their purchases, to dif-
ferent and more stringent regulations than
those to which all other purchasers are sub-
jected?
Tn answering this question the particular
provision of statute which alone Is relied up-
on as accomplishing that result should be
read in connection with the other provisions
touching the same general subject and such
construction, consistent with the language
used, given to it as will make a harmonious
and consistent whole. In arriving at that
construction, the evil sought to be avoided
should be borne in mind.
The evil which our law governing transfers
of license privileges seeks to avoid manifest-
ly is the sale of spirituous and Intoxicating
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liquors by persons whose fitness to do so bas
not been passed upon and approved by the
licensing authorities. Our policy in that
regard Is clearly Indicated by our statutes.
We Insist that every would-be seller shall
present bis application for leave to sell to the
county commissioners, and that they, after a
formal hearing upon a prescribed notice, pass
upon his fitness to exercise the desired privi-
lege. This requirement extends to every
one whether he be an original applicant or
one desiring to sell as a substitute licensee.
When the applicant seeks to exercise the
right which was originally given to another,
a transfer of the license becomes necessary.
That transfer is not accomplished by a pur-
chase and assignment of the lic^ise. It is
accomplished when, and only when, the coun-
ty commissioners have signified their con-
sent to the substitution of licensee. Chapter
148, P. A. 1915. Our statutes make it
clear that the word "transfer," as used in
them, refers not to the transaction as be-
tween individuals whereby the property in-
terest passes, but to the transfer of the right
to sell which follows the county commis-
sioners' consent It matters not whether the
license, as representing an inchoate right to
sell, was obtained by a third party through
a voluntary assignment or upon execution
sale. There is no transfer within the mean-
ing of our statutes until the county commis-
sioners have given their consent to the sut>-
stitutlon of parties, and there is in either
case one when that consent is given.
Bearing in mind that fact and also that
chapter 282, the latest in the order of enact-
ment of the license statutes, in unrestricted
language exempts transfers from the opera-
tion of the prohibition against the grant
of licenses for a place located within 200
feet of a church edttice, and also that no
reasons are apparent for the making of a
distinction between purchasers of different
classes, it is reasonably manifest that the
two statutory provisions should be read the
one as prescribing the applicant's conrse of
action, and the other the county commission-
ers' duty in passing upon his application
when duly presented. By force of chapter
.% the applicant must proceed in the matter
of application in all respects as an original
applicant Is required to do. By virtue of
chapter 282 the connty commissioners, in
passing upon the application when thus pre-
sented, are to be governed by the regulations
touching transfers.
[4, i] The remonstrant's claim that the
plaintiff's application was fraudulent Is based
largely upon his assumption of an alleged
false position In asserting that he desired a
transfer of Sullivan's license and in asking
for such transfer when he was in no position
to claim it. What we have said upon that
subject disposes of that feature of the charge
of fraud. The charge is also based in parti
upon the fact that at the time the application
was made the Yale Brewing Company had
not in fact perfected its assignment to the
applicant, although it was perfected prior
to the hearing before the commissioners. No-
where In the application or in the applicant's
affidavit accompanying It Is it said that the
assignment had been made. The applica-
tion was for a transfer of Sullivan's license
to Davis, and nothing more. We discover no
mlsrepresentatian of fact by Davis, nor pos-
sibility of misunderstanding or misconception
on the part of the commissioners as to any
material matter involved In their decision.
It does not appear but that the sltnation
was fully understood by all, and it is of no
practical importance whether or not the as-
signment to Davis was in form executed at
the time of the application's date.
The superior court is advised to affirm
the order of the county commissioners.
No costs in this court will be taxed in favor
of either of the parties. The other Judges
concurred.
(U Conn. 692}
TURNER T. OONNECTICUT CO.
(Supreme Court of Errors of Connecticut
June 14, 1917.)
1. Appeal anu Ebror <8=>704(2) — Correc-
tion or FiNniNG — Memokandhm of Deci-
sion.
The memorandum of decision, not being
made a part of the finding, cannot be corrected
on appetQ.
[Ed. Note.— For other cases, see Appeal and
Error, Cent Dig. i| 2900, 2939, 2941.]
2. Appeal and Error <S=>536 — Record —
Agreed Statement of Pacts.
An agreed statement of facts, not being cer-
tified to by the trial court and made part of the
record, has no place therein.
[Ed. Note.— For other cases, see Appeal and
Error, Cent Dig. Sg 2402, 2403.]
3. Appeal and Error «=>656(3)— Correction
OF Finding.
Appellant cannot have correction on appoel
under the method of Gen. St 1902, I 797. of a
finding of the trial court without having the
evidence certified and made part of the record.
4. Carriers $=>12(1) — Power to Rjeoitlatx
Charges.
Under Public Service Corporations Act (Pub.
Acts 1911. c. 128) S 23, it is only after hearing
on complaint and finding that the rates made by
a Public Service Corporation are unreasonable
that the Public Service Commission may disturb
them, and determine and prescribe just and rea-
sonable maximum rates and charges.
[Ed. Note.— For other cases, see Carriers,
Cent Dig. §§ 7, 16-20.]
5. Carriers «=>18(2) —Rates— Appeal from
Order— Review bt Court.
Under Public Service Corporations Act (Pub.
Acts lOll, c. 128) f 29, providing for appeal
from the Commission to the superior court, and
section 31, as amended by Pub. Acts 1913, c.
225, providing tliat said court shall hear such
apposl and examine the question of legality o*
the order and the propriety and expediency
thereof in so far as it may properly have cog-
nizance of the subject the court may determine
whether the Commission's order fixing maximum
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TURNER T. CONNECTIOUT CO.
rates, or declining to dianse the rates fixed by
the company, is valid, by ascertaining whether
the rate so fixed or left unchanged was reason-
able; this being a judicial question.
[Ekl. Note.— For other cases, see Carriers,
Cent. EMg. M IB, 16-18, 20, 24.]
6. PcBUC Service Coumissions «=»7— "Eea-
BOXABLE Rate."
The reasonableness of a rate fixed by or for
a public service corporation is to be determined
after viewing its effect on the public as well as
the company; the rate being unreasonable If so
low as to be destructive of tho company's prop-
erty or if so high, either intrinsically or because
discriminatory, as to be an unjust exaction from
the public.
[Ed. Note.— For other definiti<»s, see Words
and Phrases, First and Second Series, Reason-
able Rate.]
7. Cabbiebs «=»13(2) — Bates — Discbucira-
noN.
In determining whether the rate of a carrier
is one locality is, in view of its rates in other
localities, discriminatory, depending on tho lo-
calities being similarly situated and subject to
like conditions, the element of distance is not
necessarily a controlling factor.
[Ed. Note.— For other cases, see Carriers,
Cent Dig. il 22, 21]
& Appeal and Esbob «=»1010(1)— Rbvibw—
Questions of Fact.
The facts found not supporting, much less
requiring, the conclusion that a carrier's rate
was excessive or discriminatory, the Supreme
Court cannot disturb the trial court's adjudica-
tion sustaining the Public Sorvice Commission's
determination of reasonableness of the rate,
[Ed. Note. — For other cases, see Appeal and
Error, Cent. Dig. j|§ 3979-3981, 4024.]
Appeal from Superior Court, Fairfield
County; Edwin B. Qager, Judge.
Petttion by John C. Turner and others
against the Connecticut Company. From
Judgment of court, on appeal from Public
Utilities Commission, petitioner Turner ap-
peals. Affirmed.
Petition for a reduction In the rates of
fare charged by the respondent between cer-
tain points on one of its lines running from
Stamford to Norwalk, which rates were al-
leged to be unreasonable, brought to the Pub-
lic Utilities Commission, who heard and de-
nied the petition; and thence by appeal to
the sui)erior court ; facts found and judgment
rendered eonflrmlng the action of the Public
Utilities Commission, from which the peti-
tioner Turner appealed.
Tlie Connecticut Company operates seven
electric street car lines on its Stamford
division which converge at Atlantic square
In Stamford. Two of these lines run out-
side of Stamford, one to Sound Beach and one
to Noroton, and five terminate at suburban
points in Stamford. Passengers riding from
Atlantic square to Noroton bridge, a distance
of 2.33 miles, pay one flve-cent fare, and an-
other fare from that point to Noroton village
and points beyond. Passengers riding from
Atlantic square to Sound Beach and the five
suburban lines pay one flve-cent fare, and
on three of these lines ride less than the
distance from the square to Noroton bridge,
while on three they ride a greater distance,
viz. to Springdale, 3.5 miles ; to Sound Beach,
3.22 miles, and to Shlppan Point, 2.79 miles.
The New Xork and Stamford Railway Com-
pany operates an electric street car line
which converges at said Atlantic square.
Passengers riding by this line from the square
to Cos Cob, another suburb of Stamford, pay
one five-oent fare and ride 3.8 miles. Passen-
gers on all of these lines may transfer at the
square from one of these lines to any of the
others. The village of Noroton was original-
ly a part of Stamford, and in all of Its as-
sociations is closely connected with Stam-
ford. In point of healthfulness, natural
beauty, and the character of its population
it Is a desirable place to live, and is In no
particular inferior to Springdale or Cos Cob.
Since the electric street car line was built
through Noroton two houses have been built
between the Noroton bridge turnout and St.
Luke's Cliurch, and 14 houses have been built
west of and within one quarter of a mile of
the Noroton bridge. Since the electric street
car line was built to Springdale and the flve-
cent fare established between Springdale
and Stamford, 170 houses have been built
in Springdale, and Its population has in-
creased rapidly and largely.
On February 24, 1915, the appellant, to-
gether with nine other residents of Darlen,
petitioned the Public UtlllUes Commisslwi—
"to order a fare extension or 'lap over' so call-
ed, operative in both directions between the said
Noroton river bridge and said St. Luke's Church,
or to make such other adjustment of fares as
may be necessary or advisable, so as to give a
single five-cent rate or charge for each passen-
ger between Atlantic square and St. Luke's
Church."
The term 'lap over" is one used in refer-
ence to electric street car lines to denote the
distance which a passenger Is allowed to
ride beyond a given fare limit before he Is
required to pay another fare, or upon taking
a car going in the opposite direction, the
distance which he may ride before readiing
a given fare limit at which he wiU be re-
quired to pay a fare.
The Stamford division is one of the poorest
earning divisions in the company's system,
and the Stamford portion of the Stamford-
Norwalk line of the Connecticut Company's
system Is one of the best earning lines in
this division. The establishment of the pro-
posed lap over to St Luke's Church would
extend the first flve-cent limit out of Stam-
ford, and thereby to some extent decrease the
net earnings of the Stamford division.
In December, 1914, by agreement the towns
of Stamford and Darlen paid $2,500 on ac^
count of the cost of widening the said bridge
over Noroton river and the Connecticut Com-
pany the balance of said cost, $3,162, and in
addition $33,000 in making phydcal connec-
tion between Its lines and Noroton river and
providing other facilities for through traffic.
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The Connecticut Company thereafter laid Its
tracks across the bridge aBd thus connected
Its tracks, and this was the last step to
'H>niplete a continuous line of electric street
tracks between New York and Boston.
The Commission found and held that the
facts before them did not establish the un-
reasonableness of the present rate, and there-
fore denied the petition. The superior court
adjudged that the action of the Commission
was reasonable and proper, and confirmed
It and dismissed the appeal.
William T. Andrews and Peter Dondllnger,
both of Stamford, for appellant. Seth W.
Baldwin, of New Haven, for appellee.
WHEELER, J. (after stating the facts as
above). [1-3] The first seven assignments of
error are assumed by the appellant to relate
to the correction of the finding. In fact they
relate to matters which are parts of the
memorandum of decision. T^at Is not made
a part of the finding, so that Its correction
cannot be had. The cause is to be decided
upon the facts found, not upon those contain,
ed in the memorandum of decision. Fur-
ther, the agreed statements of facts which
the appellant assumes to be a part of the
record had no place In the record. They
were not certified to by the trial court and
made a part of the record. So far as we
know, they were not necessarily before the
trial court, and certainly were not necessari-
ly the only facts in evidence. Counsel for
the appellee say the appellant petitioner in-
troduced oral testimony. Whether this is
accurate or not, the appellant cannot secure
the correction of the finding under the
method of General Statutes, § 797, without
having the evidence certified and made a part
of the record. The assignments of error,
aside from those relating to the correction
of the finding, are varying ways of stating
the single point that the trial court erred in
holding that the action of the Commission
was reasonable in finding and deciding that
the present rates complained of were not
unreasonable. The act regulating Public
Service Corporations (Public Acts of 1911,
c. 128) in section 23 provides that:
"Any ten patrons of any such company • • •
may bring a written petition to the Commission
alleging that tlie rates or diargcs made by such
company ♦ ♦ • are unreasonable."
Thereupon, after hearing had, the Com-
mission, if it finds such rates and charges
to be unreasonable, may determine and pre-
scribe Just and reasonable maximum rates
and charges to be thereafter made by such
company, and said company shall not there-
after demand any rate or charge in excess
of the maximum rate or charge so prescribed.
The limitation of rates to what are rea-
sonable U the enactment in statutory form
of an ancient rule of the common law. Rari-
tan River R. Co. v. Traction Co., 70 N. J.
Law (41 Vroom) 732, 743, 58 Atl. 332; Rea-
gan v. Farmers' Loan & Trust Co., 154 U. S.
362, 397, 14 Sup. Ct 1047, 38 L. Ed. 1014;
LoulsvUle & N. R. Co. v. Garrett, 231 U. 8.
298, 311, 34 Sup. Ct. 48, 68 L. Ed. 229.
"To limit the rate of diarge for services ren-
dered in a public employment, or for the use of
property in which the public has an interest, is
only changinj; a regulation which existed be-
fore. It establishes no new principle in the law.
but only gives a new effect to an old one."
Munn V. IlUnois, 94 U. S. 113, 24 L. Ed. 77.
[4] The remedy for the enforcement of
reasonable rates provided by our act was
new in this Jurisdiction. So long as the
company establishes reasonable rates, these
cannot be lowered by commission or court.
When it fails in this duty the PubUc CtUl-
ties Commission Is authorized to prescribe
Just and reasonable maximum rates. And its
authority, under this act, may be Invoked
whenever the rates as fixed are either so
high or so low as to be unreasonable. The
Commission is an administrative one, with
the delegated legislative function of fixing
railway rates.
[5] A court may not be required to fix or
regulate a tariff of rates for services to be
rendered by a public service corporation,
since this Is a legislative function and may
be conferred by law upon a specially desig-
nated ministerial body. Reagan v. Farmers'
Loan & Trust Co., 154 U. S. 362, 397, 14
Sup. Ct 1047, 88 L. Ed. 1014; Interstate
Commerce Commission v. Railway Co., 167
U. S. 479, 499, 17 Sup. Ct, 896, 42 L. Ed. 243;
Janvrln, Petitioner, 174 Mass. 514, 55 N. E.
381, 47 L. R. A. 319; Raritan River R. Co. v.
Traction Co., 70 N. J. Law (41 Vroom) 732, 68
Atl. 332.
Section 2d of the act provides for an ap-
peal to the superior court from any order of
the Commission. And section 31, as amend-
ed by chapter 226 of the Public Acts of 1913,
provides that:
"Said court shall hoar such appeal and exam-
ine the question of the legality of the order
• • • and the propriety and expediency of
such order • • • in so far as said court may
properly have cognizance of such subject"
Under this provision the court may hear
and determine whether the order of the Com-
mission fixing maximum rates, or its order
declining to change the rate flexed by the
company. Is- valid or not, by ascertaining
whether the rate so fixed or the rate un-
changed was reasonable or not. Such a
question is a Judicial one.
It has been so held in construing a like or
similar provision in state and federal stat-
ute. Janvrln, Petitioner, 174 Mass. 514, 65
N, B. 381, 47 L. R. A. 319; Raritan River R.
Co. V. Traction Co., 70 N. J. Law (41 Vroom)
732, 743, 58 AU. 332; Chicago, M. & St P.
Co. V. Minnesota, 134 D. S. 418, 458, 10 Sup.
Ct. 462, 702, 33 L. Ed. 970; Smyth v. Ames,
169 U. S. 466, 18 Sup. Ct 418, 42 L. Ed. 810 :
Reagan v. Farmers' Loan & Trust Co., 154
U. S. 362. 397, 14 Sup. Ct 1047. 38 L. Ed.
1014; Prentls v. Atlantic Coast Line Co., 211
D. S. 210, 29 Sup. Ct 67, 63 L. Ed. 150.
[6] The reasonableness of the rate is to
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TURNEB V. CONNECTICUT CO.
91
lie determined after viewing its effect npon
the public as well as upon the company. The
rate may, on the one hand, be so low as. to
be destructive of the property of the com-
pany, or it may be so high as to be an un-
just exaction from the public; either In-
trinsically so, or because it Is discrimina-
tory. In either instance the rate Is unrea-
sonable. What the court does im passing
upon this question is to decide after hearing
had in the course of a Judicial proceeding,
whether the rate complained of Is so high or
-so low as to be unreasonable. No satisfao-
tory definition of reasonable, as applied to
rates, applicable to each case, can be made.
Each must be decided upon its own facts and
upon a consideration of many varying ele-
ments. A passenger rate upon a railway, to
be reasonable, must be Just to the public as
well as to the railway. It should be large
enough to provide for the passenger reason-
able service and for the railway a reasonable
return. The rate may be made high enough
to cover the cost of service, the carrying
charges, a reasonable sum for depreciation,
and a fair return upon the investment. Less
than this will not ^ve the railway a reason-
able rate. The action of a utilities com-
mission which reduces a rate below this
point unduly deprives the owners of their
property without Just compei^satlon. If a
rate exceeds this point to an appreciable de-
gree and the Commission, upon proper ap-
plication, declines to reduce It, the court
would, in the absence of other controlling
facts, reduce it to a reasonable point
[7] If a rate in one locality Is largely In
«>xcess of rates in other localities similarly
situated and subject to like conditions, it is
an onreasbnnble rate, for this would Instance
a discrimination against one locality In favor
•of another, or other localities. A discrimi-
nating rate of this character would be an mi-
reasonable rate, since as a general principle
the service of a public utility should be equal
to all patrons similarly circumstanced. Bald-
win, Americaiu Railroad Iiaw, c. 25, (6;
EUiott on Kallroads, § 1167 ; Union Padflc Ry.
Ck>. V. Goodridge, 149 U. S. 680, 690. 13 Sup.
Ct. 970, 37 L. Ed. 896; Western Union Tele-
graph Co. V. Call Pub. Co., 181 U. S. 92, 99,
21 Sup. Ct. 661. 45 U Ed. 765 ; Portland Ry.,
L. & P. C. Y. Oregon R. R. Commls^om, 229
U. S. 397, 411, 33 Sup. Ct 820, 57 L. Ed. 1248.
When we examine the finding before us we
see that there are no facts found from which
it could have, been inferred as matter of fact
by the trial court, or must be Inferred by
us as matter of law, that the ten-ceut rate
between Atlantic Square and Noroton Is ex-
orbitant or excessive. We have not before us
the cost of service between these points, nor
the fair share of the carrying charges and of
depreciation, or what would be a fair re-
turn, for this distance. We are not given ei-
ther the gross or net earnings, or the per car
hour, or per car mile earnings. Nor are the
conditions found to be similar. All that the
finding tells us la that the earnings are less
on this system than on the defendant's other
systems. This unrelated fact by Itself, does
not help in ascertaining what; if any, profits
there are from this rate, and whether they
are excessive or exorbitant The petitioner
does not stand upon the intrinsic unreason-
ableness of this rate, but upon the claim
that this rate is a discriminatory one, and
results and has resulted to the serious disad-
vantage of the people of the Villago of Noro^
ton.
It would seem, from the facts found, that
an Inference of fact may have been Justified
that Sprtngdale had grown greatly and Noro-
ton had not because of the one community
having had a five-cent rate to Atlantic square
and the other not But we cannot so con-
clude, unless there is a specific finding of
that fact Many other considerations may
have operated or largely contributed to this
result. We may assume that a five-cent rate
would benefit Noroton and Its public, for
this Is a self-evident fact. But we do not
know what Its effect would be upon the re-
turns to the railway. It may be held to be
a principle of trafilc that a reduction of
rates Increases the volume of business, but
no principle which we are at liberty to re-
gard tells us in a given case what will be the
extent of tlie Increase, or what the effect up-
on the net returns. Chicago, etc., Ry. Co. v.
Wellman, 143 U. S. 339. 344, 12 Sup. Ct 400,
36 U Ed. 176.
In detcnmnlng the reasonableness of a
rate we cannot leave out of the consideration
the effect of the change of rate upon the rail-
way return any more than we can tliat upon
the public
The petitioner's case reduces Itself to this:
That the schedule of rates upon the Stam-
ford division gives a materially longer ride
for a single five-cent fare on some of the
lines converging at Atlantic square than it
does on the Noroton line. In a similar situa-
tion the court say:
"The question presented for consideration is
not the reasonableness per se of the char^, but
its reasonableness considered in relation to
charges made by plaintiff at other localities on
its system for like and contemporaneous serv-
ice. • • • The discrimination, without an
excuse recognized by the law, would be in and
of itself unjust and unreasonable." Portland
Ry. L. & P. Co. V. Oregon R. Commission, 229
U. S. 897, 411, 33 Sup. Ot. 820, 57 L. Ed. 124a
'i')ie petitioner is accurate in his claim as
to the lines to Springdale, Sound Beach, and
Shippan's Point but as to the other tliree
Unes converging at the square the single five-
cent fare on the Noroton line gives the longer
ride. And the distance covered by the sin-
gle flve-CMit fare on the Noroton line is prac-
tically the average distance the single fare
wUl carry a passenger on all the lines of the
system converging at the square.
The element of distance may be a controll-
ing factor in a case of discrimination, but
not Invariably so. As a rule, other factors
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92
101 ATLANTIC REPOnTEB
(Conil.
are neopssniily relevant Iwfore the conclusion
of a discrlmlnntion In rutcs can be made.
Facts which affect the question of traffic
profit are factors to be considered. It may
be that a divergence In rates betvi^een com-
munities similarly conditioned would be dis-
criminatory Irrespective of the element of
traffic profit That situation we leave open
until it presents itself. And the Identity or
similarity of cpnditlons are also important
factors in determining whether a rate is dis-
criminatory.
[8] The foundation of the petitioner's claim
of a discrimination Is that the defendant
charges "Noroton passragers twice the fare
that it charges to other passengers similarly
circumstanced." The finding does not sup-
port this. The judgment must be controlled
by the finding. And upon that we cannot
hold that there was any undue preference or
advantage In the other rates, or that the
trial court erred in concluding that the rate
complained of was not reasonable, for the
facts found do not sui^ort, much less re-
quire, the conclusion that this rate is either
exorbitant, excessive, or discriminatory.
There is no error. The other Judges con-
curred.
(91 Oonn. 727)
BULKELEX v, BROTHERHOOD ACCI-
DENT CO.
(Supreme Court of Errors of Connecticut.
June 14, 1917.)
1. iNstmANCK €=>339 — Accident Insurance
— Change of Occupation.
The act of setting off a single firework ia
not a change of occupation from that of garden-
er to that of user or handler of fireworks, with-
in the provision of an accident iK>licy.
[Ed. Note.— For other cases, see Insurance,
Cent Dig. { 879.]
2. Insurance ie=>4ei(l) — Accident Insdb-
ANCE — VOLUNTABY EXPOSUBE TO DANOEB.
Evidence that the bombs were ordinarily
safe, that from one to two minutes usually elaps-
ed between the lighting of the fuse and the ex-
plosion of the charge, which threw the bomb
upwards, and that insured, his employer, and
members of the family had set off a great many
of them on other occasions, is enough to show
that the act of setting off in the usual way a
bomb, a firework, was not a voluntary exposure
to unnecessary danger, within the provision of
an accident policy.
[Ed. Note.— For other cases, see Insurance,
Cent Dig. i IISO.]
8. Evidence €=^126(2)— I>E0i.A]unoN8— Mas-
HEB OF Accident.
Relative to the question whether insured,
fatally injured by explosion of a bomb whidi
he was setting off, voluntary exposed himself to
unnecessary danger, within the provision of his
accident policy, his declarations while on the
way to the hospital, in answer to the question
as to what happened, that it went off sooner than
he expected, and something about a quick-burn-
ing fuse, all that witness could remember, are
relevant and admissible, and make it more prob-
able that the accident occurred because of a
quick-firing fuse than from attempting to set
off the bomb in some unusual way.
[Ed. Note.— For other cases^ see Evidence,
Cent Dig. § 373.]
Appeal from Superior CourU Hartford
County ; Mllt<ni A. Shumway, Judge.
Action by Morgan O. Bulkeley, administra-
tor, against the Brotherhood Accident Com-
pany on a policy of health and accident as-
surance; From a Judgment for plaintiff, de-
fendant apiieals. Affirmed.
The plalntUTs decedent, Oscar L. Johnson,
a gardener in the plaintiff's employ, was in-
jured by the explosion of a flreworli called a
bomb, intended to be fired by placing it
In a mortar and lighting a fuse. Some of
these fireworks, left over from the previous
Fourth of July, were found about the prem-
ises, and Johnson was seen to take a bomb
and mortar from plalntitTs garage toward
an open place near by. Nobody witnessed the
accident, but an explosion was heard, and
Johnson was observed rolling on the grass
trying to extinguish a fire burning in the
clothing about his neck and chest Two
days afterwards Johnson died in consequence
of bums and wounds received from the ex-
plosion of the bomb. While being taken to
the hospital Johnson was asked, "What hap-
pened?'' and said that it went off sooner thaA
he expected, and something about a quick-
burning fuse.
The policy exempts the defendant trom
liability for injuries caused by "voluntary
exposure to unnecessary danger," and pro-
vides that in case of injury after the Insured
has "changed his occopation to one classified
by the company aa one more hazardous than
that herein stated" the company's liability
shall be only for the amount which the
premium would have purdiased at the rate
fixed by the company for such more hazar-
dous occupation.
The complaint alleges that the insured
duly fulfilled all the conditions of the in-
surance on his part, and that the death was
not from any cause excepted In the policy.
The answer leaves the plaintiff to his proof
as to the facts, denies that the assured tul-
flUed the conditions of the Insurance, al-
leges that the Injury was caused by volun-
tary exposure to unnecessary danger, and,
as an alternative defense, that the assured
had changed his occupation, and was en-
gaged In nslng or handling fireworks when
injured, whereby the company's liability was
reduced to $200, In respect of which a tender
Is pleaded.
Stewart N. Dunning, of Hartford, for ap-
pellant Warren B. Johnson, of Hartford,
for appellee.
BEACH, J. (after stating the facts aa
above). [1 , 2] It is too plain for discussion
that the act of setting off a single firework
'or other casaa see Mm« topic and KET-NUMBBR In all K«7-Numb«r«d Dlgnts and IndoxM
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PaJ
SCHWEHM V. CHEDTEN TRUST CO.
»3
is not a change of occupation from that of
gardener to that of a user or handler of
fireworks.
The other ground of defense, that the
Injury was caused by voluntary exposure to
unnecessary danger, rests upon the determi-
nation of a motion to correct the finding by
erasing therefrom the finding that the death
was not from any cause excepted In the
policy, and by substituting therefor a pro-
posed finding that the plaintiff offered no
evidence to show that decedent did not volun-
tarily exx)ose himself to unnecessary danger.
It Is, however, unnecessary to follow the de-
fendant's argument any further, because the
finding of the trial court Is supported by the
evidence, and the defense of voluntary ex-
posure to unnecessary danger Is disposed of
on the merits in the plaintiff's favor. There
was evidence tending to show that the bombs
were ordinarily safe, that from one to two
minutes usually elapsed between the lighting
of the fuse and the explosion of the charge
which threw the bomb upward, and that the
decedent, his employer, and members of the
employer's family had set off great numbers
of them at Independence Day celebrations.
This was enough to show that the act of set-
ting off one of these bombs In the usual way
was not a voluntary exposure to unnecessary
danger.
[3] Then the question remained whether
Johnson attempted to set the bomb off in
some unusual way, or in some other way
voluntarily exposed himself to unnecessary
danger In setting it off. On this point his
declarations made while being taken to the
hospital are relevant and admissible, and
they make it more probable than otherwise
that the accident occurred because of a de-
fective quick-firing fuse. Defendant excepted
to the admission of these declarations, and
now makes the claim that they were too
vague and Indefinite to be admitted in evi-
dence. This, however, was the fault of the
witness to whom the declarations were made,
who was obliged to give the substance of
what was said because he could not remember
the words. Taking these disconnected phras-
es as expressing the substance of John-
son's declarations, there is no difficulty what-
ever in supporting the finding of the trial
court that the death was not from any cause
excepted In the policy.
There is no error. The other Judges con-
curred.
(267 Pa. TO)
SOHWEHM V. CHEXiTEN TRUST CO.
(Supreme Court of Pennsylvania. March 12,
1917.)
1. BuiLDiHO AND Loan Associations «=3
23(4) — AtTTHOMTT of Pkbsident of Loan
SOCIBTT— MiSAPPBOPBIATION— LlABILIXr.
The president of a loan society, whom the
hy-laws made the chief executive officer and ac-
tive manager, was authorized to accept money
paid to the society by cash or by check to its
order, and tiis misappropriation of funds so
paid was the loss of the society.
[Ed. Note.— For other cases, see Building and
Loan Associations, Cent. Dig. | 29.]
2. Banks and Banking «=»109(2) — Presi-
dent OF IX>AN SocnSTT — INOOBSEMBNT OF
Bills oe Notes.
Where the authority of a bank president
comes from the directors, he may indorse bills
or notes payable to it.
[EM. Note.— For other cases, see Banks and
Banking, Cent. Dig. $ 259.]
3. Banks and Banking i8=138— Depostts—
Payment on Check— Liability to Deposi-
XOB.
Where a depositor drew his check upon de-
fendant bank to the order of a loan society,
whose president and chief executive officer in-
dorsed it and misappropriated the proceeds, the
bank was not liable, as the proceeds were paid
to the society in accordance with the terms of
the check.
[Ed. Note.— For other cases, see Banks and
Banking, Cent. D'.s. li 398-405.]
Appeal from Court of Common Pleas, Phil-
adelphia County.
Assumpsit for a bank deposit by Harry
J. Schwehm against the Chelten Trust Com-
pany. Verdict for plaintiff for $5,294.50,
and Judgment thereon, and defendant ap-
peals. Reversed, and judgment entered for
defendant
Argued before MESTEEZAT, POTTER,
STEWART, MOSCHZISKBH, and FRAZ-
ER, JJ.
Chas. C. Norrls, Jr., of Philadelphia, for
appellant. Julius C. Levi and David Mandel,
Jr., both of Philadelphia, for appellee.
POTTER, J. The plaintiff In this case,
who was a depositor with the Chelten Trust
Company, drew his check upon that insti-
tution for the sum of $5,002, payable to the
order of Federal Loan Society. The check
was Indorsed, "Federal Loan Society, H. W.
Stoll, President, Jos. R. Friedmaq," and
was cashed by the Franklin Trust Company,
and collected by the latter from defendant,
through the Com Exchange National Bank,
and charged by defendant against plaintiff's
deposit account.
[1] Plaintiff claimed that Stoll, who was
president of the Federal Loan Society, bad no
authority to Indorse the check In the name of
the society, that his Indorsement did not
transfer title to it, and that defendant's ac-
tion in paying it, and charging it against his
account, was not bindlnig upon him. He
therefore brought this suit to recover the
amount so charged. At the trial, a request
for binding instructions In favor of defendant
was refused, and the Jury were Instructed
to render a verdict for plaintiff for the full
amount of the claim. From the judgment
thereon entered, defendant has appealed. Its
counsel contend that under the by-laws of the
Federal Loan Society, the president was con-
stituted the general manager of the business
AspFor oUier caaes see aame topio aoa KBY-NUMBER In all Key-Numbered Dlgent* and IndexM
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lUl ATIiANTIO OEPOKTfiB
(Fu.
of the corporation, and tbls necessarily gave
blm tbe power to Indorse Ita commercial
paper. It appears from the record that the
by-laws were not silent as to the president's
authority, but they provided that he should
be the chief executive officer of the company
and should "have general and active manage-
ment of the business of the company," should
"have general supervision and direction of
all the other officers of the company," and see
that their duties were properly performed,
should make annually to the board of direc-
tors a report of the operations of the com-
pany for the fiscal year, and from time to
time reiKirt to them such matters as the in-
terests of the company might require to be
brought to their notice, and should "have
the general powers and supervision and man-
agement usually vested in the office of the
president of a corporation." Broader powers
in ' the management of the business could
hardly have been bestowed. The president
was not only anthorieed to act for the com-
pany, but was to see that all other officers
discharged their dntles. Counsel for plain-
tlflf, however, contend that the power of the
president was limited by two provisions
of the by-laws. The first directs the treas-
urer to "deposit all money and other valu-
able effects in the name and to the credit of
the company in such depositories as may be
designated by the board of directors." This
provision, however, only relates to the
duties of the treasurer, who is expressly
placed under the "general supervision and
direction" of the president. It puts no limi-
tation on the iwwers conferred on the presi-
dent himself. The other provision Is that
"all checks, drafts or orders for the payment
shall be signed by the treasurer and counter-
Migned by the president." This refers only
to instruments for the payment of monfey
by the corimration, not to the Indorsement
or transfer of Instruments of which the
corporation is not the maker, but the payee.
It does not limit the power of the president
aa to the latter.
[2, 3] Under the by-laws, as noted above,
the president was made the "chief execu-
tive officer" and the general and active man-
ager of the business of the company. He
had control over every other officer of the
company, and power to direct the disburse-
ment of Its funds. This authority was ample
to authorize him to accept money paid to
the company, whether in cash or In the form
of a check payable to the order of the com-
pany. If he misappropriated funds paid In
good faith to him as the representative of
the company, the loss must be that of the
'■orporation that authorized him to act, and
held him out to the public as its chief of-
tlcer and general agent. As the power was
delegated to the president In the by-laws,
•■here Is no question here, as to acquiescence,
by the board of directors. No action upon
the part of the directors was necessary. But
even where his authority comes from the
directors, the president of a bank may in-
dorse bills or notes payable to it And It
would seem that he has an implied power to
Indorse and transfer its negotiable paper.
1 Daniels, Neg. Inst. $ 3M.
It should be remembered that in the pres-
ent case, in so far as the record shows, the
validity of the indorsement was not ques-
tioned by the Federal Loan Society, the
payee of the check. It is the drawer of the
check who complains. It does not appear
that the corporation lias denied that it was
bound by the indorsement of its president,
or that It has refused to carry out the con-
tract for which the check constituted the
consideration. What the transaction was,
is not very clear, but apparently it was a
purchase of stock. Plaintiff testified that he
had not received the stock, but did not say
that the corporation had refnsed to issue It
to him, nor did he say that he had made de-
mand for it. Under the facts shown, we are
clearly of opinion that payment of the chedt
to the president of the company was payment
to the corporation.
The fifth and sixth assignments of error
are sustained. The Judgment la reversed,
and is here entered for defendant.
'^^'^^ (267 Pa. 17)
O'MALLBY et al. v. PUBMC LEDGER GO.
(Supreme Court of Pennsylvania. March 5,
1917.)
1. Municipal Corporations «=»70e(4)— Evi-
dence OF Ownership— Injcbiks on Stbxet.
In an action for personal injuries wbea
struck by a motor truck alleged to be the prop-
erty of defendant company, where it appeared
that defendant's name was painted upon the
car containing bundles of newspapers, testimony
of a policeman that shortly before the accideDt
be saw a car of such description delivering bun-
dles of newspapers, and knew it because he had
often seen it in the neiKhborhood deliverins
newspapers, and that in the particular case his
attention had been attracted to the driver's hur-
ry in tossing papers from the car, was admissi-
ble.
[Ed. Note.— For other cases, see Uanidpal
OorporationB, Cent. Dig. f ISlS.]
2. Appkai, and Exkob «=3060— Jitbt «s>149
—Question fob Jubt— Withdrawal of Jd-
BOB.
In such action, where plaintiff husband tes-
tified as to conversation on day "when we
were awarded the verdict" in former trial, where
there was no effort to lead him to the objection-
able remark, and where the jury were instructed
to disregard it, the refusal of a continuance was
within trial court's discretion.
[Ed. Note. — For other cases, see Appeal and
Error, Cent Dig. {{ 3845^848; Jury. Cent
Dig. il 635-637.r
8. Municipal Cobpobations <8=»7(K5<(J)— Use
OF Stbeet— Personal Isjubt— Question
fob Jury.
In action for personal injury when struck by
a motor truck, alleged to belong to defendant
newspaper oompnny, held, on the evidence, that
the ownership of the car and its operation Id
the company's service was for the jury.
[Ed. Note. — For other cnsos, see Municipal
Corporations, Cent Dig. | ir.lS.]
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PaJ
O'MALLET V. PUBLIC liEDOER CO.
95
Appeal from Court of Common Pleas, Phil-
adelphia County.
Trespass for damages for personal Injury
by Catharine O'Malley and John O'Malley
against the Public Ledger Company. Ver-
dict for plaintiff John O'Malley for $750, and
for Catharine O'Malley for $3,000, reduced
by the court to $500 and $2,000, respective-
ly, Ttith Judgment thereon, and defendant
appeals. Aflftrmed.
Argued before MESTREZAT, POTTER,
STEWART, MOSCHZISKER, and FRA-
ZER, JJ.
Robert P. Shlck and Wlnfleld W. Craw-
ford, both of Philadelphia, for appellant
Bertram D. Rearlck, of Philadelphia, for ap-
pellees.
MOSCHZISKER, J. John O'Malley and
Catharine, his wife, sued to recover for per-
sonal injuries to the latter; verdicts were
rendered in their favor, uiwn which judg-
ments were entered ; the defendant has ap-
pealed.
On January 8, 1915, between 6 and 5:30 a.
m., Mrs. O'Malley was struck by a south-
ward-hound automobile while crossing Twen-
tietii street, in the city of Philadelphia, at
the south side of McClellan street, or about
150 feet from Moore street, the next thor-
oughfare to the north. The testimony relied
uiKjn by the plaintiffs, when viewed in the
light most favorable to them, is sufflcient to
sustain the following material findings:
Just before leaving the sidewalk, Mrs. O'Mal-
ley looked up and down Twentieth street
and, seeing no vehicles approaching from ei-
ther direction, she started slowly to cross
eastward; in the center of that thoroughfare
there Is a single car track, and. Just before
she reached the first rail of this track, she
was struck by the automobile, which had
turned southward into Twentieth street from
Moore street; the machine was being driv-
en at from 40 to 50 miles an hour, and came
suddenly upon Mrs. O'Malley, without warn-
ing of any kind ; she was knocked down, and
subsequently, as a result of the accident,
suffered a miscarriage and other injurious
results; finally, the motor in question was
owned by the Public Ledger Company and,
at the time of the injury to Mrs. O'Malley,
It was being oi^erated in the defendant's
service.
Thwe are numerous assignments of er-
ror; but only a few of them require serious
consideration. To begin with, we have look-
ed at the medical testimony with care, and
feel that It Is sufllcient to connect Mrs.
O'Malley's impaired physical condition with
the accident, and to Justify the conclusion
that her Injuries followed as a result thereof.
[1] We see no error in the admission of
the testimony of the policeman, Jordan. He
recalled the date of the occurrence under
Investigation ; and the fact that his memory
In this respect was aided by the drcumstanoe
that be had held a conversation with anoth-
er ofllcer concerning the accident, right aft-
er it happened, would not militate against
the admissloQ of his testimony. It may be
well to note, however, that the details of
this conversation were not allowed In evi-
dence. Other witnesses who saw the acci-
dent had already testified that the car which
Injured Mrs. O'Malley was a small machine
with the name of the Public Ledger painted
thereon, containing bundles of newspapers.
The policeman was permitted to state that,
very shortly after the time fixed by the for-
mer witnesses, he saw an automobile of like
description delivering bundles of newspapers
about 4% squares from the place of the ac-
cident; Uiat he knew the car, having seen
it in the neighborhood morning after morn-
ing, on a like errand ; and that, on this par-
ticular occasion, the driver attracted atten-
tion by his seeming hurry, when he tossed
out papers upon the comer where the wit-
ness was standing, without stopping his ma-
chine. Although this testimony, by itself,
would have but little weight, yet, in connec-
tion with other evidence in the case, It was
draimstantlally relevant to Identify the au-
tomobile which caused the damage as a ve-
hicle l)elonging to and, at the time, In the
service of the defendant Bowling v. Rob-
erts, 235 Pa. 89, 83 Atl. 600; Hershinger v.
Penna. R. R. Co., 25 Pa. Super. Ct 147.
[2] While the trial judge might have with-
drawn a juror because of the unfortunate
remark made by Mr. O'Malley when upon
the stand, to the effect that he had a con-
versation with another man <mi the day
"when we were awarded the verdict" (evi-
dently referring to the verdict In a former
trial of the same cause), yet we cannot say
the refusal so to do constitutes reversible
error. The trial had been on for three days ;
there was no attempt on the part of coun-
sel for the plaintiff to obtain an unfair ad-
vantage by leading on the witness to the oI>-
jectionable remark. On the contrary. It
seems to have slipped out without any pre-
meditated purpose, and, when this occurred,
the judge at once warned the Jurors entirely
to disregard the Incident; moreover, at the
end of his charge, he repeated these Instruc-
tions. In conclusion, we do not conceive it
at all probable the remark 4n question had
any effect prejudicial to the defendant; for
if the Jurors understood from it that there
had been a former finding In favor of the
plaintiffs, it must be assumed they likewise
realized that this verdict had been set aside
by the court
[3] No part of the charge is assigned for
error, and a careful reading thereof shows
that all the testimony was properly and cor-
rectly submitted to the jurors, not only to
find the relevant facts, but to draw their
own Inferences therefrom In deterniintng the
issues Involved. Of course, there was testi-
mony produced by the defendant militating
against the evidence depended uiM>n by the
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101 ATLANTIC BEPOKTER
(Pa.
plaintiffs to show the former's ownership of
the car and that the machine was being op-
erated in its service at the time of the ac-
cident ; but this testimony was mostly oral,
and hence it was for the Jnry to pass upon.
The assignments of error are all OTermled,
and the Judgments aflSrmed.
(257 Pa. 25)
SCOTT V. AMERICAN EXPRESS CO.
(Supreme Court of Pennsylvania. March 5,
1917.)
1. Witnesses e^STDCT)— Impeachment— Con-
TSADICTOBT STATEMENTS.
The credibility of a witness may be im-
peached by his previous statements inconsistent
with or contradictory to his testimony, including
statements made in pleadings, where the omis-
sion in the inconsistent statement occurred when
the occasion called upon him for disclosure.
[Ed. Note.— For other cases, see Witnesses,
Cent. Dig. § 1251.]
2. Wn-NESSES <S=»387— iMPEACnjIENT— Incoii-
SI8TENT STATKMKNT8— Sworn Pleadinos.
In an action airainst an express company for
injury to an employ6 from the defective condi-
tion of the brakes and steering apparntns of its
motor truck, defended on ground thnt the acci-
dent was caused by the intoxication of the driv-
er, a fellow servant, where defendant's super-
intendent testified that be visite<l the driver aft-
er the accident, and he then showed si^s of
having been drinking, his cross-examination as
to whether he had not sworn to answers in the
driver's action in another court arising out of
same accident which said nothing about the
driver's intoxication, was erroneous, where un-
der the rules of thnt court the facts constituting
the defense were not re<iuired to be stated in the
answer.
[Ed. Note.— For other cases, see Witnesses,
Cent. Dig. §| 1228-12:{2.]
3. Appeal and Rrbor «=3232(2)— Admissibii/-
ITT OF Evidence— Objection.
Where the record was not clear as to the
ground upon which objection to the cross-exami-
nation of a witness was based, the rule that on
appeal a party complaining of the admission of
evidence in the court below will be confined to
the specific objection there made, was not appli-
cable.
[Ed. Note. — For other cases, see Appeal and
Knot, Cent. Dig. {§ 1430, 1431.]
4. Appeal and Errob €=>1004(1)— Amount oi"
Verdict— Review.
The amount of a verdict will be reviewed by
the Supreme Court under authority of Act May
20, 1891 (P. L. lOl), only when so grossly ex-
cessive as to shock the sense of justice, and to
show a clear abuse of the lower court's discre-
tion in refusing to set it aside.
[Ed. Note.— For other cases, see Appeal and
Error, Cent Dig. §| 38(50-3876, 3048.]
5. Death 9=990(3) — Excessive Damages.
Verdicts of $1,717 awarded the father of in-
jured minor employ^, and $12,540 awarded the
estate of the minor, were not excessive, where
be suffered a compound fracture of both legs
above the knees, lacerations and bruises of the
scalp, arms and back, underwent two operations,
and lived four months after the accident.
[Ed. Note. — For other cases, see Death, (Tent.
Dig. §S 125, 126, 128.7
Appeal from Court of Common Pleas, Phil-
adelphia County.
Trespass for damages lor personal In-
juries by Elizabeth Soott, administratrix of
the estate of Joseph P. Scott, deceased, and
Elizabeth Scott, administratrix of the estate
of Edward A. Scott, deceased, against the
American Express Omjpany. Verdict for
plaintiff as administratrix of the estate of
Edward A. Scott for |1,717, and as adminis-
tratrix of her deceased son, Joseph P. Soott,
for $12,540, and Judgment thereon, motion
for new trial denied, and defendant appeals.
Reversed with a new venire.
PlaintiiTs injuries consisted of oomponnd
fractures of both legs alwve the knees, lacera-
tions and bmises of the scalp, arms and back.
Two unsuccessful operations were performed
to secure unions of the fractures of the legs.
Plaintiff suffered extreme pain except when
under the Influence of opiates, and died as
a result of such Injuries over four months
after the accident.
Argued before MESTR13ZAT, POTTER,
STEWART, MOSOHZISKER, and FRAZBR,
JJ.
John Lewis Evans, John G. Johns<», and
Thomas De Witt Cuyler, all of PhiladelplUa,
for appellant. Francis M. McAdams and
William H. Wilson, both of Philadelphia, for
appellee.
FRAZER, J. This action was brought by
Joseph P. Scott, a minor, and Edward A.
Scott, liis father, to recover damages for
injuries sustained by the former, as a result
of alleged negligence of defendant in per-
mitting the brakes and steering apparatus on
a motor truck, on which the minor was riding
in the discharge of his duties, to become out
of order and remain in a state of disrepair,
which resulted in the macliine l>ecoming un-
manageable In descending a street with some
grade, and striking a telephone pole located
along tlie highway. Joseph P. Scott died as
a result of his injuries, and, upon the subse-
quent death of his father, Eiizalieth Scott
prosecuted the action to Judgment as admin-
istratrix of their estates.
The deceased minor was employed b; de-
fendant to ride on its trucks and assist
drivers in handling and guarding express
packages. The defense was that the accident
was caused by the negligence of the driver,
who, according to the evidence, had been
drinking and was in an intoxicated condi-
tion at the time; which fact was known to
Young Scott. The trial Judge submitted the
case to the Jury, in a charge to which no com-
plaint is made, and there was a verdict on
behalf of the father's estate for $1,717, and
on behalf of the estate of the minor for $12,-
540. A motion for a new trial was dismissed
by the court below, and defendant appealed.
We deem it unnecessary to refer in detail
to the circumstances of the accident, since
the only questions argued before this court
were as to the correctness of the action of
the court In admitting certain evidence to
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SCOTT V. AMERICAN EXPRESS CO.
97
Impeach the credibility of one of defendant's
vritnesses, and whether or not the verdict on
behalf of the minor's estate was ezceeslve.
[1, 2] Superintendent Juller, of defendant
company, testified to visiting the hospital
within two hours after the aeddent, and. In
reply to a question by his own attorney,
stated he saw Carey, the driver, at that time
and his breath smelled as If he had been
drinking. On cross-examination by plaintlfF's
counsel he was asked whether he had not
sworn to and signed answers in actions by
the driver and another person against de-
fendant In the municipal court involving the
same accident. Upon objection being made,
coonsel for plaintiff stated he wished to test
the credibility of the witness, whereupon the
objection was overmled. The witness then
admitted he had signed and sworn to the
papers, and that they contained no statement
to the effect that the driver had been drink-
ing, or was Intoxicated. Defendant contends
this testimony was Improperly admitted and
was extremely prejudicial to it, owing to the
fact that the Jury as laymen were likely to
place undue weight on the omisslMi, whereas,
In fact, such omission was unimportant, and
the statement unnecessary as a part of the
pleadings in the case.
The rule is well settled that the credibility
of a witness may be impeached by showing
previously made statements inconsistent with,
or contradictory to, his present testimony,
and this includes inconsistent statements
made in pleadings in the causes. Henry's
Penna. Trial Evidence, | 65, and eases dted ;
Floyd v. Kulp Lumber Co., 222 Pa. 257, 71
AtL 13; 2 Wlgmore on Evidence, § 1066. To
constltnte grounds for discrediting a witness,
however, the omission must be made at a
time when the occasion was such that he was
called upon to make the disclosure. It is
only where the witness on a previous occa-
sion was under some duty to speak the whole
truth concerning the matter about which he
now testiSes that Impeachment becomes per-
missible by showing an omission to state cer-
tain material facts included in bis testimony.
Royal Insurance Oo. r. Beatty, 119 Pa. 6, 12
AtL 607, 4 Am. St Rep. 622; Huston's Es-
tate, 167 Pa. 217, 31 AtL 553. ConsequenUy,
in considering the CMnpetency of the evidence
offered for the purpose of Impeadiing the
witness, the scope of the answers filed in the
municipal court of Philadelphia should be
considered. Eule 7 of that court provides
that an answer shall contain an admission or
denial of each fact averred In the statement
of claim, and that all facts not denied by de-
fendant, or of which he does not aver him-
self to be Ignorant, shall be deemed to be
admitted. This rule does not require defend-
ant to state the facts constituting his defense,
but merely to either admit or deny those
averred In the statement of claim. We have
no knowledge of the contents of the state-
ments of claim referred to, as they are not
printed in either i>aper book, and nowhere In
101A--7
the record does it appear that the question
of intoxication was raised in the aeclaratlon
in either case. The answers In questiona
admit the happening of the accident, but
deny that either the brakes or steering ap-
paratus were defective or out or order, or
that the accident was the consequence of the
failure of these parts of the truck to properly
work, or of anything else for which defendant
was responsible. No necessity appears for
the assertion or denial of the charge that the
driver had been drinking previous to the hap-
pening of the accident
The formal pleadings in a case are drawn
by attorneys in technical language, and con-
tain only such averments of facts as in the
opinion of the attorneys are material to make
out a prima fade case. They, therefore, do
not purport to be a complete history or re-
dtal of all the facts of the transaction, and
no unfavorable Inference should be drawn
from the failure to Include details which are
the natural and usual parts of the proof,
rather than of the pleadings in the case. For
these reasons it was error to permit the use
of the answers, filed in the municipal court
cases. In attacking the credibility of the wit-
ness.
[3] Plaintiff claims the evidence was ob-
jected to solely on the ground that It should
have been introduced as a part of plalntifCs
case; that this objection conceded its rel-
evancy, and, under the familiar rule that a
party complaining on appeal of the admission
of evidence, in the court below, will be con-
fined to the specific objection there made.
Morgan v. Gamble, 230 Pa. 165, 79 Atl. 410 ;
Roebllng's Sons Co. v. American Amusement
& Construction Co., 231 Pa. 261, 80 Atl. 647.
An examination of the record falls to con-
vince us that this rule should be applied in
the present case. When the papers were
handed to the witness Juller, defendant's
counsel made the following objection: "I
object to any evidence in regard to these
papers, unless it is introduced as part of
plaintiff's case." The trial Judge then said:
"It goes to the credibility of the witness, I
understand. Is that the purpose?" Plain-
tiff's counsel repUed: "That la the purpose
entirely." The court thereupon overruled
the objection, but no exception was taken to
the ruling at this point After a preliminary
examination of the witness the record shows
the following:
"Q. In those affidavit* you didn't say a word,
did you, as to Carey [the driver] being drunk or
as to having a smell of intoxicating liguor on
him? (Objected to by counsel for defendant
Objection overruled; exception to defendant)
A. No."
While the objection first made relates to the
order of the admission of the evidence, the
comment of the court and counsel for plain-
tiff clearly indicate the evidence was offered
for the sole purpose of testing the credibility
of the witness, and the general objection fol-
lowing that, upon which the exception was
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101 ATIiANTIC REPORTEIB
(Pa.
founded, may well have been based npon that
ground. It is sufficient to say that the record
is not clear or specific on this point, and in
that case the rule Invoked by appellee will
not be applied. Kutin v. Ligonier Valley R.
R. Co., 255 Fa. 445, 100 Atl. 142. It follows
that the first assignment of error must be
sustained.
[4, 5] The other question involved is
whether or not the damages awarded are
excessive, or whether the court below abused
its discretion in refusing to cut down the
verdict, or allow a new trial. Since the pas-
sage of Act May 20, 1891 (P. L. 101), giving
this court power to set aside verdicts deemed
to be excessive, we have repeatedly said that
the question of the amount of the verdict
would be reviewed only in cases where so
grossly excessive as to shock our sense of
Justice, and where the impropriety of allow-
ing a verdict to stand is so manifest as to
show a clear abuse of discretion on the part
of the court below in refusing to set it aside.
Quigley V. Penna. E. R. Co., 210 Pa. 162, 59
AtL 958; Reed v. Pittsburg, Carnegie &
Western R. R., 210 Pa. 211, 69 Atl. 1067 ; Dun-
lap V. Pittsburgh, Harmony, Butler & New
Castle Ry. Co., 247 Pa. 230, 93 AtL 276. In
view of the nature of the injury, the pain
and suffering endured, and all the circum-
stances of the case, it cannot be said the ver-
dict in this case is so excessive as to warrant
our interference upon that ground.
The judgment is reversed with a new ve-
nire.
.(»7 Pa. 1)
THOENEBE et al v. MOSBY et al.
(Supreme Court of Pennsylvania. Feb. 26,
1917.)
Nuisance $=33(9)— Dance Haix— Chabactkr
OF NEIGIIBOanoOD.
A bill in equity to enjoin dancing in a hall
in a neighborhood not strictly residential was
properly dismissed, where it appeared that the
colored persons attending the dances conducted
themselves in en orderly manner, and made no
more noise than was usual on such occasions,
though after the dancing, which usually closed
at 12 o'clock, there was considerable noise in
the street on departing, as that coald be satis-
factorily controlled by the police.
[Ed. Note.— For other cases, see Nuisance,
Cent Dig. {§ 20-22.]
Appeal from Court of Common Pleas, Phil-
adelphia County.
Bill in equity for an injunction by W. Her-
man Tboenebe and others against Jerome
Mosby and John Foreman, trading as Mosby
& Foreman, and Joseph M. Thomas, trading
as Charles J. Thomas Sons. From a decree
dismissing the bill, plalntifts appeal. Af-
firmed.
Bill in equity for an Injunction. The fact.s
appear In the following opinion by Bregy,
P. J., in the court of common pleas:
This is a bill alleging that the dcfentlants
are maintaininir a nuisance at the hall, 1512 to
1620 North Thirteenth street
(1) The plaintiffs reside on TWrteenth street
between Jefferson and Oxford streets.
(2) The defendants Mosby and Foreman are
lessees of a ball on Thirteenth street between
Jefferson and Oxford streets, where they have a
dancing school. The defendant Thomas is the
owner of the building.
(3) On Monday, Thursday, and Saturday
nights Mosby and Foreman, who rent the hall
on the third floor of the stable building kno*n
as Thomas' stable, have dancing parties that
begin at 9 o'clock and CMitinue till 12 o'clock.
On Wednesday night they teach dancing from
8 -.30 o'clock to 10 :45 o'clock. On Tuesday and
Friday nights the hall is not occupied by the
dancing school in any way, but the lessees sublet
it (with the consent of the owner, Mr. Thomas)
for concerts, bells, and so on as they can ob-
tain a tenant During the 15 months the de-
fendants have occnpiea the hall they have rent-
ed It for the above purposes 14 times.
(4) On Monday, Thursday, and Saturday
nights, the music for the dancing parties begins
at 9 o'clock and continues till 11 :50, when It
stops and the patrons leave — the hall being emp-
tied by 12 o'clock. On Wednesday night, the
teaching night, the school begins at 8 :30 and
closes at 10 :45. On the occasions that the hall
has been rented out for different entertainments,
they have occupied the ball till 2 o'clock a. m.
(5) The music at the dancing parties consists
of five pieces, viz. : PianOtVioIin, comet, tron>-
boue, and trap drum. On Wednesday nlshts the
music is by the piano only. The same five pieces
play at the balls or entertainments when the
place is rented.
(G) When the music continues after 11 o'clock
it is muffled to subdue its noise, and so con-
tinues till the audience leaves.
(7) The hall here alluded to is on the third
floor of a large public stable building that has
been so occupieil for over 40 years. During
the many years of the existence of this stable
it has been occupied as such, both for the sta-
bling of private teams and the hiring of horses
and carriages to the public. The hall on the
third floor has for over 30 years been rented out
as a dancing school, for parties, concerts, and
for different kinds of public meetings, political
and otherwise.
(8) The neighborhood is no longer a strictly
residential one. This one square on Thirteenth
street between Jefferson and Oxford has in ad-
dition to the large stable already mentioned quite
a number of business places. From the north
side of Jefferson street to the south side of Ox-
ford street, there is on one side a large furni-
ture manufactory, a barber shop, a store, a tailor
shop, a china decoroting store, and an empty
store at the comer; on the other side there is
a saloon, tailor shop, a wall paper establishment,
a butcher shop, and other stores. On the south
side of Jefferson street at Thirteenth street
there is a grocery store at one comer and a
drug store at the other; and on the north side
of Oxford, a grocery store at one corner and an
insurance office at the other.
(9) The persons attending the dances and en-
tertainments heretofore spoken of have behaved
themselves in a proper way in the hall, and no
misbehavior there luts been proved or, in fact,
alle);ed against them.
(10) The patrons of the hall are colored peo-
ple.
(11) When the audience disperses there is on
the street the noises of these persons talking to
each other, sayinR good-bye and the calling to
a friend to wait, etc.
(12) At the dancing parties the attendance
is from 80 to 100 : at the times the hall is rent-
ed Romotimes there are as many as 400 there.
(1.'?) The occupants of four houses on Thir-
teenth street complain that they are annoyed
by the music in the hall and by the noise in
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the street when the patrons leave. Teiry many
more !»7 they are not annoyed and have no com-
plaint to make.
(14) Within the ]aat few years the immediate
neighborhood, but not this street, has become
tenanted by a large number of colored people.
Conclusions of Law.
The plaintilTs seek to have the defendants close
the hall at about 10 o'clock, complaining that
the continuation of the music after that hour
and the dispersal of the audience and its at-
tendant noise are a nuisance that annoys them.
The complaint raises the question as to what
hour a dancing school, party, concert, or ball
should close its doors. The answer must depend
upon the neighborhood, and the facts of each
pariicnlar case, as Vasre can be no general rule
on the subject. Considering the fact that I have
found this not to be a strictly residential neigh-
borliood, but one that has changed into a partly
business one, I do not consider it unreasonaole
to keep open the dancing school till 12 o'clock.
The hours of entertainment are not what they
used to be. Everything is later, and, as times
change, we must change oar habits with them.
Everything has been done by the proprietors of
the school to lessen the sound of the music
after 11 o'clock, and I see no reason to interfere
with the dancing school.
As to the parties or balls that are held on
other eveningB, while not very many in number,
another question presents itself. Considering
the neighborhood and the admitted fact that on
an average of once a month an entertainment of
some kind is given which continues till 2 o'clock
in the morning, is it proper to issue an injunc-
tion? This question is not without difficulty.
That it is an annoyance to the plaintiBEs to have
their sleep brokra by these gatherings is un-
doubtedly true. Those who live in cities must
take what goes with it, however. Those who
live in business neighborhoods cannot expect or
demand the quiet of the suburbs.
As the neighborhood changes they must take
the consequences. If it changes for the worse
and personal discomfort follows, that must be
Kiibmitted to. The running of street cars and
the noiKe of the automobiles all night long are
amonf? the few annoyances that all sections of
the city are now subjected to, but would some
years ago have been considered a nuisance. Ap-
plying the principle that an injunction should
not issue in doubtful cases, I would not issue
one here.
There remains only the other question, viz.:
Can the bill prevail because of the noise in the
street after the entertainments are dismissed?
.\s I have found that the defendants' entertain-
ments bring together an assemblage of respecta-
ble, well-behaved people, and that the noises in
the street are not of a kind that are induced
by or encouraged by the defendants' parties, I
see no reason for a court of equity to act. This
is a matter for the police to see to. We would
not hesitate to enjoin the gathering of disorderly,
dissolute, drunken, or depraved persons, whose
coming together must necessarily annoy the resi-
dents of nearby houses, but the saying of part-
ing words by respectable people and the calling
to friends as they leave the hall is a matter for
the police to regulate, rather than for a court
to dispose of by injunction.
The court dismissed tbe bllL Plaintiffs ap-
[)ealed. Error assigned, Inter alia, was the
decree of the court.
Argued before BROWN, O. J., and STEW-
AUT, MOSCHZISKEB, FRAZER, and WAL-
LING, JJ.
Ormond Rambo and Frank H. Warner,
both of Philadelphia, for appellants. J. H.
Shoemaker, of Philadelphia, for ai^)ellees.
PER CURIAM. This bill was filed to en-
join dancing and music In a certain hall In
the dty of Philadelphia. That It was prop-
erly dismissed appears by the facts found
and legal conclusions reached by the learned
president Judge of the court below, and, on
them, the decree Is afSrmed at the costs of
appellants.
(257 Pa. IBW
COMMaNWHAI/TH ex reL BROWN, Atty.
Gen., V. SCHWARTZ.
(Supreme Court of Pennsylvania. March 12,
1917.)
Quo WaKBAWTO «=5>60-Jin>OM«HT 0» OUSTKB
— JUSTICK or THE PKAOE.
A judgment of ouster in qno warranto pro-
ceedings to test the right of a justice of the
peace to hold office in a borough was properly
entered, where it appeared that respondent had
been defeated at an election under which he
claimed his right to the office.
[Ed. Note^— For other cases, see Quo War-
ranto. Cent. Dig. { 71.]
Appeal from Court of Common Pleas, Lack-
awanna County.
Quo warranto by the Commonwealth, on
ralation of Francis Shunk Brawn, Attorney
General, against Frank Berger and Phillip
Schwartz, to test the right of the last defend-
ant to act as Justice of the peace of the
borough of Old Forge. Judgment for defend-
ant Berger, and writ dismissed as to him,
and Judgment of ouster against defendant
Schwartz, and he appeals. Affirmed.
It appears by the record that an election to
flu vacancies In the office of Justice of the
peace of Old Forge borough was held in
November, 1915, at which time the following
candidates received the number of votes set
out after their names: E. J. Garvin, 819
votes ; Frank Berger, 808 votes ; Fred Roon-
ey, 806 votes; J. J. Chelland, C91 votes;
Phillip Schwartz, 641 votes. It appeared also
that commissions were thereafter issued to
Frank Berger and Phillip Schwartz as Jus-
tices of the peace. When the case came to
trial it was agreed that it should be heard by
the court without a Jury, and after such hear-
ing the court found the following facts and
conclusions of law:
Pacts.
(1) The territory constituting the boroagh
of Old Forge, before the incorporation of (he
borough, had two justices of the peace.
(2) The borough was incorporated on May 2,
1899.
(3) An attempt was made at the February
election of 1899 to secure a vote for an increase
of two justices in the township of Old Forge.
Notices were posted as required by the act of
assembly, and there was a vote actually taken
on the question of increase. There was no re-
turn of the vote made to the office of the clerk
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101 ATIiANTIO REPORTER
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of the court, nor the executive department of
Harrisburg. Nor ia there any evidence what-
ever in this case as to whether the vote was in
favor or against an increase. The election of
1899 has no place in the consideration of the
present controversy.
(4) Another election was held in the borouKb
of Old Forge in 1905, at which the question of
increase in the number of justices was voted
upon. The public notices posted before the
election specified an increase of three justices,
but the return of the vote on file in the clerk's
ofllce shows an increase of one only. Counsel
have agreed that the tabulation prepared by
the clerk is a correct copy of the returns in his
office. The tabulation is as follows:
For Increase. Against Increase.
23 64
Ist Ward .
2d Ward ,
3d Ward .
4th Ward
oth Ward
6th Ward .
- 2
.... 76 5 For one Justice
.... 9 0 Increase one
0 0
This shows that the total vote in the borongh
against the increase was 71; there were 23 votes
for increase without designation of any number,
and there were S4 votes in favor of an increase
of one.
Conclusions of Law.
1. Old Forge township previous to its incor-
poration was entitled to two justices of the
peace.
Counsel for all parties conceded this propo-
sition.
2. There was not, in law, an increase in the
number of justices in Old Forge township by
the election of 1899. There has been some mis-
apprehension as to the election of 1S99. Coun-
sel have tried this case on the supposition that
the election was a borough election, although,
as already stated, there was no borough until
the May following. However, this is of no mo-
ment. The election was undoubtedly a town-
ship election, and a township, as such, had the
right to vote an increase in die number of jus-
tices. The same misapprehension is to be no-
ticed in the opinion of the deputy attorney gen-
eral found in the case of the Old Forge Justices,
30 Pa. C. C. 164, who supposed the election of
1899 was a borough election, and, basing his
opinion on an aOidavit, he states that there was
an increase of one justice at that election in Old
Forge in 1899. We have no doubt that if the
evidence before us was before the Deputy Attor-
ney General he would not have advised the Gov-
ernor in 1904 to make an appointment of one
person to fill the vacancy untU May, 1906.
3. The number of justices of the peace in Old
Forge borough was lawfully increased by one
at the election in 1005. This proposition is so
plain that it needs no discussion.
4. Old Forge borough, prior to the election of
1005, was entitled to two justices of the peace.
After said election it is entitled to three.
6. Two vacancies for the office of justice of
the peace were to be filled at the November elec-
tion, 1915. E. J. Garvin and Frank Berger
having received the majority of votes in the bor-
ongh at said election for said office, are enti-
tled thereto, having been lawfully elected. We
note in this connection, that the right of E. J.
Garvin to office is not in question in this case.
6. The respondent, Phillip Schwartz, failed
of election in 1915, and is therefore not entitled
to the office of justice of the peace of Old Forge
borough.
Subsequently exceptions to tbe findings of
fact and conclusions of law .were dismissed,
and Judgment was entered In favor of the de-
fendant Frank Berger, and the writ dismissed
as to Mm, and as to the defendant Phillip
Schwartz Judgment was entered in favor of
the relator, that the said defendant be ousted
and altogether excluded from tbe office of
Justice of the peace of Old Forge borough.
Phillip Schwartz, defendant, appealed.
Argued before BROWN, C. J., and MES-
TREZAT, POTTER, FRAZER, and WAL-
LING, JJ.
A. A. Vosburg and John Memolo, both of
Scranton, for appellant John H. Bonner, of
Scrauton, for appellee.
PER CURIAM. This case was tried with-
out a Jury, and the Judgment of ouster
against appellant Is affirmed on the facts
found and the l^al conclusions readied by
the learned trial Judge.
"■ (JBI Pa. 48)
MAGUIRB T. PREFERRED REALTY CO.
(Supreme Court of Pennsylvania. March 6,
1917.)
1. ACKROWUBDOHXRT 9=35— DeED»— NECKSBI-
TY AS Betwken Pabtikb.
A deed executed and delivered is sufficient to
pass title between the parties, though not ac-
knowledged.
[Ed. Note.— For other cases, see Acknowledg-
ment, Cent. Dig. K 22-42, 44.]
2. Pleadino «=>8(15)— Fraud— Au-egations.
Where a declaration in ejectment contains
no allegations of fact showing fraud, an amend-
ment must, in the same degree of certainty, de-
tail the circumstances pointing to that conclu-
sion.
[Ed. Note.— For other cases, see Pleading;
Cent Dig. | 2S^.]
8. E.rECTMKNT «=>75— Statembnt o» Claim—
Demurkeb.
A statement of claim in ejectment averred
that plaintiff conveyed tbe realty to defendant
in consideration of its agreement to give plain-
tiff certain shares of stock, and that after the
conveyance defendant bad refused to deliver any
stock to plaintiff so that the consideration of the
conveyance bad failed, but did not allege the facts
indicating fraud in securing the deed. Htld that
ejectment was not the proper remedy, so that a
demurrer to the statement of claim was properly
sustained without prejudice to plaintiff's right
to assert 'the claim In some other proceeding.
[Ed. Note.— For other cases, see Ejectment,
Cent Dig. { 204.]
Appeal from Court of Couunon Pleas, Phil-
adelphia County.
Ejectment by Mary Magulre against the
Preferred Realty Company for recovery of
land situate In the dty of Philadelphia. De-
murrer to plaintiff's statement of claim sus-
tained. Judgment for defendant, and plain-
tiff appeals. Affirmed.
Argued before BROWN, O. J., and POT-
TER, MOSCHZISKER, FRAZER, and WAL-
LING, JJ.
Alex. Simpson, . Jr., of Philadelphia, for
appellant Graham C. Woodward and Sam-
uel F. Wheeler, both of Philadelphia, for ap-
pellee.
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MAGUIRE V. PREFERRED REALTY CO.
101
MOSCHZISKEB, J. This action was in
ejectment; a declaration and abstract of
title were filed, to which a demurrer was
altered; the judgment favored defendant,
and pladntlff has ai^>ealed. In the course
of his opinion. Judge Ferguson, of the court
below, states the material facts thus:
"The plaintiff avers that she signed a deed
conveTing the premises in qaestion to the de-
fendant [corporation], but that she did not ac-
knowledge the deed in the presence of the no-
tary public who certified that she had done so.
She also avers that the deed was signed in th<;
presence and at the request of Samuel F. Wheel'
er, 'who was her attorney,' and who the plain'
tiS believed was the sole manager and counsel
and owner of all the capital stock of the de-
fendant corporation ; and that the consideration
for the deed was a verbal agreement made by
the defendant, through Wheeler, that all the de-
fendant's corporate stock should be transferred
and delivered to her as security for money due
her for advances made to Wheeler and his wife
and for money expended in connection with
the sheriFs sale under which plaintiff obtained
title. The declaration further sets out that the
deed was recorded without plaintiff's knowledge
or consent, and the defendant, through Wheeler,
refused to surrender the stock [and that "the
consideration for said conveyance wholly fail-
ed"]."
[1] After the foregoing review of the facts
stated in the declaration demurred to, the
opinion goes on to say:
"It will be observed that the plaintiff fails
to aver anything with relation to the delivery of
the deed; in fact, a delivery is necessarily im-
plied from the averment that there was a con-
sideration which failed. The plaintiff nowhere
alleges that she demanded a return of the deed.
What she seeks is a delivery of the stock of the
defendant corporation, to be held by her as se-
curity. It is also to be noted that the plain-
tiff does not aver that the defendant company,
to whom she made the deedj held the stock or
was in a position to deliver it as the considera-
tion, but the stock is alleged to be owned by
Wheeler, who refuses to deliver it A deed does
not necessarily have to be acknowledged before
a notary pubUc to make it a valid instrument
between parties. Rigler v. Cloud, 14 Pa. 361;
Cable V. Cable, 146 Pa. 451, 23 Aa 223. Exe-
cntion and delivery are sufficient to pass the
title, and there is no averment in the declara-
tion from which it could be inferred that the
deed was not delivered."
Then, after citing several authorities, the
court below determined that, on the face of
the plaintiff's pleading, the suit was merely
an effort to enforce "a verbal agreement,
made by one not a party to the deed, that
all the capital stock of the defendant com-
pany should be transferred and delivered to
the plaintiff as security," which "agreement
cannot be enforced by an action in eject-
ment."
The plaintiff contends that the learned court
below misconceived the real purpose of her
suit, and that the very form of the action —
ejectment — shows It was to recover the land
and not to gain the consideration ; but, even
looking at the case from that viewpoint, it is
not at all apparent material error was com-
mitted in Altering the Judgment under re-
view. In ber first declaration, the plaintiff
simply avened:
"On January 17, 1916, plaintiff conveyed said
premises to the Preferred Realty Company, the
defendant, by deed of that date, recorded, etc.
• • • Said conveyance was made in consider-
ation of an agreement by defendant, through its
president, to give plaintiff stock of defendant
in payment therefor- but, since said convey-
ance was made, defendant, through its president,
has refused to give to plaintiff any of the stock
of defendant • • • Wherefore the consider-
ation for said conveyance has wholly failed,"
etc.
Subsequently an "amended declaration and
abstract of title" were filed, containing the
averments already outlined, and the appel-
lant contends that these new averments are
sufficient to show such a case of fraud as
entirely to avoid plaintUfs deed of convey-
ance and leave the property in her as though
that instrument had never been executed.
If this were so, then it might be that the
plaintiff could maintain ejectment; but, be-
ing on demurrer, the Judgment must stand
or fall up<m a review of the declaration as
written, and not on the facts of the case as
they are contended to be in appellant's argu-
ment.
[2] The original declaration contains no al-
legations of fact indicating fraud, and the
averments in the amendment, while, perhaps,
suggesting the possiUUty of some fraudu-
lent purpose on the part of Mr. Wheeler,
when he secured the deed from the plaintiff,
do not so charge in terms. "E^ud is never
to be presumed." Addleman v. Manufac-
turers' Light & Heat Co., 242 Pa. 587, 690,
89 Atl. 674, 675. WhMi there is no particu-
lar averment of a fraudulent purpose, but
the circumstances detailed are depended up-
on as showing such to be the case, then the
facts relied upon must not only be fully and
unequivocally avferred, but they must point
with some degree of certainty to the conclu-
sion contended for; and in such cases the
intendments are taken most strongly against
the pleader, for he is presumed to have stat-
ed all the facts Involved, and to have done so
as favorably to himself as his conscience
will permit Baker v. Tustln, 245 Pa. 499,
501, 91 Atl. 891; LltUe v. Thropp, 245 Pa.
539, 644, 91 Aa 924.
[3] Here, as already suggested, the facts
detailed In plaintiff's declarations do not,
with any degree of certainty, lead the mind
to the conclusion that. If they should be
proved, a Jury would be JusMfled In finding
the deed, under which the defendant claims,
to have been fraudulently obtained by it
We say this, for the averments of the dec-
laration are vague and inconclusive in many
material respects. In the first place, it is
not averred that Mr. Wheeler was plaintlfTs
counsel or attorney at the time the deed was
executed by her, or that he acted in such
capacity in this' particular transacticAi ; next,
there is no allegation that he was duly au-
thorized or actually did act on behalf of the
defendant company in making the alleged
verbal agreement with the plaintiff; and,
finally, the averment that Wheeler was the
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101 ATLANTIC REPOETEE
(Pa.
owner of all the corporate stock of the de-
fendant except a few shares, Is too Indef-
inite to substitute him In all respects for the
latter, there being no allegation that he was
the sole owner. In possession of the stock,
or In control of the corporation, at the time
of the occurrences complained of. The fore-
Koins are only a few of many Insufficiencies
which. If necessary, might be pointed out;
bat they are enough to show the inadequacy
of the declaration. We feel, however, the
plalntirr should be placed in such position
that the present Judgment will not be taken
as precluding her from properly asserting
her alleged rights in some other action or
proceeding where both the realty company
and Mr. Wheeler are Included as defendants.
The assignments of error are orerruled,
and the Judgment is affirmed, without prej-
udice, as above indicated.
(257 Pa. 8)
ALLEN T. SCHEIB et aL
(Supreme C!ourt of Pennsylvania. March 6,
1»17.)
1. Easbmbwts «=»61— Use— Extent.
An easement cannot lawfully be used for a
purpose different from that for which it was
dedicated.
[Ed. Note.— For other cases, see Easements,
Cent Dig. a 100-112.]
2. Easements <8=»12(2)— Pkb— "Road"— "Pbi-
VATE Road."
Tile term "road," and especially "private
road," is indicative of an easement rather than
a fee.
[Ed. Note.— For other cases, see Easements,
Cent. Dig. U 36-38.
For other definitions, see Words and Phrases,
First and Second Series, Ro(^d ; Private Road.]
3. Easements «=»C1(0)— Action fob Injunc-
tion—Burden OF Proof.
The burden was upon plaintiff to establish
her ownership to the fee of the land, included in
a private road in which defendants had a user,
before Bhe was entitled to construct a gas pipe
line on the surface.
[Ed. Note.— lOor other cases, see Easements,
Cent. Dig. g 143.]
4. Easements <g=>Cl(0)— Action fob Injunc-
tion— ^Iktehest^-Evidence.
Evidence in a suit by the owner of a farm
to enjoin defendants from obstructing a private
way giving access to a public road held to show
that pluiutiff did not have the fee in the road,
but had only an oasemcut of way.
[Ed. Note.— For other cases, see Easements,
Cent Dig. $ 143.]
5. Easements <S=>51— Wat— Use.
The owner of an easement in a private right
of way, in which defendants also bad a right
of use, was not entitled to maintain a line of
gas pipe on the surface, as that was not con-
templated when the easement of way was cre-
ated.
[Ed. Note.— For other cases, see Easements,
Cent. Dig. iS 100-112.]
6. Injunction ig=»130— Objection to Jubis-
DicTioN— Statute.
Though defendant's first objection to the ju-
risdiction of equity, to enjoin interference with
easement made in request for findings after the
evidence was sulxnittod was not in compliance
with Act June 7, 1907 (P. L. 440) | 1, it did
not affect the chancellor s duty to dismiss the
bill if the facts averred were not substantially
proved at the trial
[Ed. Note.— For other cases, see Injunction,
Cent Dig. §$ 288-300.]
Appeal from 0>art of (Common Pleas, Al-
legheny County.
Bill In equity for an injunction by Eleanor
Walker Allen against John Schelb, St., and
another. From a decree awarding an in-
junction, defendants appeal Modified and
affirmed.
Argued before BROWN, C J., and POT-
TER, MOSCHZISKER, FRAZBR, and WAL-
LING, JJ.
B. J. McKenna, of Pittsburgh, for appel-
lants. J. W. (Jolllns, of Pittsburgh, for ap-
pellee.
WALLING, J. This equitable action Is to
determine the rights of the respective parties
to a certain strip of land situate In Richland
township, Allegheny county, and used as a
private road. The Butler plank road extends
through said township In a northerly direc-
tion, and the farm of the late John Scott,
containing 142 acres, is located thereon. He
died in 1875, and clause 4 of his will pro-
vides:
"I give and devise to my grandson, John Scott
Teacher, 15 acres of my Balserstown farm; to
my daughter, Catherine Harbison, 10 acres;
to my granddaughter, Sarah Harbison, 5 acres;
to my daughter Jaje Harbison, 10 acres, all to
be divided out of my Bakerstown farm west of
the planlc road."
He left other heirs and devisees aside from
those above mentioned ; and, by some family
arrangement made shortly after his death,
the 40 acres mentioned in the clause was set
aside to the devisees therein named out of
the northwest corner of the farm, away from
the public highway. To afford access to the
40-acre tract it seems to have been a part
of the agreement that a private road or lane,
of the .width of 16% feet, should be <H>ened,
extending eastwardly from the southeast
comer of the 40-acre tract, about 1,295 feet,
to the Butler plank road, which lane was
later fenced and opened, and has been used
for about 20 years last past by the occupants
of the 40 acres, the same having been par-
titioned in 1876, among the devisees above
named. This is shown by a map made that
year by Charles Gibson, at the instance of
one of the devisees. The purparts thereby al-
lotted were sold from time to time, and the
deeds therefor include fractional parts of the
lane, corresponding to the size of the respec-
tive pun>art8, for example, each deed for 15
acres includes three-eighths of the lane. In
1001 the title to the 40-acre tract, together
with whatever Interest the owners thereof
had in the lane, became vested in John Scott
Harbison, who conveyed same to plaintiff in
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AIJiSN ▼. SCHEIB
103
1911. The lane was also used by the owners
of the balance of the John Scott farm, as
their necessities required.
So far as appears the family arrangement
above stated was not In .writing, and there
Is no record of any conveyance from the John
Scott heirs to plaintiff's predecessors for the
40 acres or the lane. Plaintiff contHids that
the lane was included in the 40 acres. There
is a part of the John Scott farm containing
about 33 acres, some 24 acres of which He be-
tween the 40 acres and the Butler plank road
and north of the lane, as to which he seems
to have died intestate. In 1881, all of the
heirs of John Scott Joined in a conveyance
of the 24-acre tract to James D. Harbison,
wherein the southern boundary is describ-
ed as:
"Thence along a certain road or lane between
the land herein conveyed and tlie land of John
Stirling."
Another part of the Scott farm, containing
about 30 acres, and called the Stirling tract,
is on the west side of the plank road and
bounded on the north by the 40-acre tract
and the lane.
By sundry conveyances the title to the 24-
acre and the 30-acre tracts became vested
in Thomas Morrow, who in 1910 conveyed
same with other land to defendant, John
Scheib, Sr., the deed for which In one of the
courses mentioned, "a point at the comer
of a private road," and the general descrip-
tion therein Includes the lane and the land on
both sides thereof. After Mr. Schelb bought
this land there was a controversy about the
use of the lane, between Mr. Harbison and
plaintiff on one aide, and the defendants,
"John Scheib, Sr., and John O. Scheib, on
the other, each side claiming to own the same.
One of the findings of the court below is :
"Sixth. That said John Scheib, Sr., by de-
stroying drains along said private road, taking
out posts and trees planted by plaintiff and by
other acta lins repeatedly interfered with plain-
tiff in the use of said private road."
The defendants, or those in their employ,
also drove their stock across this lane, and
in so doing obstructed It with wires, and re-
peatedly suffered the same to remain in that
condition, to the annoyance and damage of
plaintiff.
In 1913, plaintiff entered into a contract
with one Sebastian Mueller, for the constmc-
tl<Hi and maintenance of a line of gas pipe in
the lane, which defendants by opposition and
threats prevented being done; Thereafter
plaintiff filed her bill in this case, joining
said Mueller as a defendant, but the bill as
to him was dismissed. The learned trial
Judge, sitting as a chancellor, found that
plaintiff had a good title In fee simple to the
strip of land herein called the lane, and
entered a final decree, inter alia, enjoining
defendants from interfering with the con-
struction of the gas line, and also from in-
terfering with plaintiff's free use and main-
tenance of the private road. Defendants con-
cede that plaintiff has a right to the use of
the lane as a passageway ; in fdct that is the
only means of access to her property. We
folly agree with the learned chancellor that
nnder all the facts and circumstances defend-
ants should be enjoined from Interfering with
plalntlfTs free use and enjoyment of the said
private road as such.
But plaintiff's right to lay or authorize
another to lay a line of gas pipe therein de-
pends upon the nature of her ownership. If
an easement, then she can use it only for the
purpose for which It was established or dedi-
cated, and cannot lay a pipe line therein.
U. S. Pipe Line Co. & Breckenridge v. Del.,
Lack. & Western R. R. Co., 62 N. J. Law, 254,
41 Atl. 759, 42 L. R. A 672; 14 Cyc. 1207,
note 98.
[1] As an easement it cannot lawfully be
used for a purpose different from that for
which it was dedicated. Klrkham v. Sharp,
1 Whart 323, 29 Am. (Dec. 67; Mershon v.
Fidelity Ins., Trust & Safe Deposit Co., 208
Pa. 292, 67 Att. 6C9; 14 Cyc. 1215.
[2-5] As above stated the chancellor finds
that plaintiff owns the fee. If so, she may.
of course, constnict the gas line therein ; but
a careful examination of the record falls to
disclose any sufficient evidence to support
that conclusion. As above stated, there is
no deed or other writing showing any con-
veyance by the Scott heirs of the so-called
private road. True, the road Is recognized
in their deed to James D. Harbison as above
quoted, "thence along a certain road or lane
between the land herein conveyed and the
land of John Stirling"; but that does not
show that the title to the fee thereof has
pas.sed from the Scott heirs. The term
"road," and especially "private road," is In-
dicative of an easement rather than a fee.
See Klster v. Recser, 98 Pa. 1, 42 Am. Rep.
608. Plaintiff relies largely on the evidence
of her grantor, John S. Harbison, as tending
to establish a parol partition of the Scott
farm made in 1876, by which this lane Is al-
leged to have been allotted to the o;wners of
the 40-acre tract, and as a part thereof. But
he does not say that all of the Scott heirs
were present, and shows they were not when
he names those who were there. The chan-
cellor in one part of his exhaustive discus-
sion says:
"Respecting plaintiff's light to the uninter-
rupted use of tne road there is no room for dis-
pute. Respecting the precise limits of her
rights, whether she has a fee or a mere ease-
ment, is a debatable question. • * * Wheth-
er Mr. Scheib has the fee in the 16%-foot strip
of land or the mere right to use it in common
with the plaintiff, or any right in it, he has no
right to fill up necessary drains, or otherwise
prevent the free use and proper maintenance of
the road, and plaintiff is entitle<l to an injunc-
tion restraining him from Interfering with her
in the exercise of her lawful rights.
The John Scott heirs, aside from those
named in clause 4 of the will, were not par-
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101 A.TLANTIO KErORTBB
(ELI.
ties to the partition of the 40-acre tract, nor
to the Gibson surrey, nor, so far as the rec-
ord shows, bound thereby. And certainly
they were not bound by the recitals in the
deeds from the owners of the respective pur-
parts of the 40-acre tract One cannot create
a fee in land merely by including it in his
conveyance. And the above-cited reference
to this road or lane in the deed from the
Scott heirs to James D. Harbison, and also
in the deed from Morrow to defendant, arc
certainly as consistent with an easement as
with a fee. The mere reference in a con-
veyance to a private road does not tend to
show ownership in fee thereof in the party
for whose use it may have been established.
Such road, or alley, may, prima facie, be
used by all abutting owners, and defendants
as such would have standing to object to au
additional use being made thereof by the con-
struction therein of a gas line, especially as
this is proposed to be constructed on the sur-
face of the groimd.
Plaintiff as the owner of the 40-acre tract
undoubtedly has an easement in the private
road and a right to the free and uninterrupt-
ed use thereof as a way for purposes of pas-
sage over and upon the same; and, so far
as appears, defendants may lawfully make
such use thereof as will not Interfere with
the rights of plaintiff.
The burden was upon plaintiff to establish
her ownership to the fee of the land included
in the road, and therein her proofs fail, and
the flnding of the court below in her favor as
to that cannot be sustained; nor can the de-
cree in so far as It restrains defendants from
interfering to prevent plaintiff from the con-
struction of a gas line in the road.
[8] The defendants, John Scheib, Sr., and
.Tohn 6. Scheib, did not, by demurrer or an-
swer, question the Jurisdiction of the court,
upon the ground that the suit should have
been brought at law, but filed an answer to
the merits of the case without asking for an
Issue as to any questions of fact, and thereby
the right of trial by Jury seems to have been
waived, under the provisions of section 1, of
the act of June 7, 190T (P. U 440 ; 5 Purdon's
Digest, p. 6001). The defendants first raised
the question of Jurisdiction in requests for
findings after the evidence was submitted;
this was not a compliance with the statute.
Nanheim v. Smith, 253 Pa. 380, 98 AU. 602.
However, the proviso to this section is:
"That this shall not alter or affect the duty
of the chancellor to dismiss the bill if the facts
therein averred, as showing or teudiiig to show
the right to relief, be not substantially proved
at the trial"
— and by reason thereof plaintiff is not en-
titled to relief based on her alleged owner-
ship of the fee of the land in question; for
such claim is not substantially proven.
The final decree entered by tlie court be-
low is therefore modified by striking out so
aiuch thereof as restrains defendants, Jolin
Scheib, Sr., and John O. Sdielb, from inter-
ferlng with plaintiff in the construction and
maintenance of a gas line in or upon said
private road. The costs on this appeal to be
paid by the appellee.
°^™"" (« R. I. «J)
GAONON V. RHODE ISIiAND Ca
(No. 5022.)
(Supreme Court of Rhode Island. July 5,
1917.)
1. TbIAI. «=9260(1)— R2FDBAI. or IROTBUC-
noNS Covered.
The refusal of instructions, which in so far
as they were correct were covered by those
given, was not error.
[Ed. Note.— For other cases, see Trial, Cent
Dig. I 651.]
2. Damaobs «=>52 — Pkbsonai. Irjvbikb—
Mental Suffering.
Mental suffering of a pregnant woman con-
sequent upon apprehension and anxiety as to
the effect of an injury upon the fcetui becomes
an element of her damage as a natural and
proximate result of the negligence which caused
the injury.
[EVl. Note.— For other cases, see Damages,
Cent Dig. Sf 100, 255.]
3. Damages 9=352 — PxbsoraIi Injuries—
AIeXTAI. SUFrERINO.
Although a mother should not be given dam-
ages for her child's misfortune during life re-
sulting from an injury to the foetus, or for her
own consequent mental distress during the life-
time of the child occasioned by its deformity,
she is entitled to damages for her distress and
disappointment at the time of the birth because
through defendant's negligence she has been de-
prived of the right and satisfaction of bearing
a sound child, if it be found that the child's de-
formity is due to the injury received through de-
fendant's negligence.
[ICd. Note.— For other cases, see Damages,
Cent Dig. $$ 100, 255.]
Exceptions from Superior Court, Provi-
dence and Bristol (Aunties; Charles F.
Steams, Judge.
Action by Eleanore Gagnon against the
Rhode Island Company. Verdict for plain-
tiff, new trial denied, and defendant ex-
cepts. Exceptions overruled, and case re-
mitted for entry of Judgment
Archamlmult & Jalbert, of Woonsodcet
for plaintiff. Clifford Whipple and Alonzo
R. Williams, both of Fro>'idence, for defend-
ant
PER CURIAM. This is an acUon of tres-
pass on the case brought to recover damages
for injuries alleged to have l)een suffered by
the plaintiff through negligence of the de-
fendant The case was tried before a Jus-
tice of the superior court sitting with a Jury
and resulted in a verdict for the plaintiff.
Defendant's motion for a new trial was de-
nied by said Justice. The case la before us
uix)n the defendant's exertion to the de-
cision of said Justice on the motion for a
new trial and upon exceptions taken by the
defendant to certain rulings of said Justice
made in the course of the triaL
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PARIAN T. OLSSON
106
It appears that the defendant's car track
on John street near Pleasant street In the
city of Woonsocket is laid on the westerly
side of the roadway In John street, the westr
erly rail of said track being 2 feet and 10
Inches from the curbstone of the westerly
sidewalk of John street. Near the corner of
John and Pleasant streets said track begins
to curve toward the east and runs Into
Pleasant street In passing upon and around
said curve the rear of a double-truck car of
the defendant begins to overlap the wester-
ly sidewalk of John street and continues to
so overlap the sidewalk for a considerable
distance, the greatest overlapping being 15
inches at one point On the day of the oc-
currence complained of, the plaintiff. In com-
pany with two other women, was walking
in a southerly direction on the westerly
sidewalk of John street; the plaintiff being
the one nearest to the curbstone. There
was testlraony from which the jury might
find that the servants of the defendant were
operating one of the defendant's double-truck
cars on said John street behind said plain-
tiff; and, without warning or care for the
safety of the plaintiff, when the danger to
the plaintiff must have been apparent to the
servants of the defendant, they drove said
car around said curve, whereby the rear of
said car projected over a portion of the west-
erly sidewalk of John street struck the
plaintiff, knocked her down, and inflicted
serious Injuries upon her. The justice pre-
siding refused to disturb the verdict In re-
spect to the flnding of liability or the assess-
ment of damages. After an examination of
the transcript of evidence, we find no reason
for overruling his decision.
[1] The defendant's exceptions to the re-
fusal of said justice to charge the jury as
requested are without merit. Said justice
carefully instructed the jury as to the duty
of the plaintiff and of the defendant in the
premises, and, so far as the charge which
the defendant requested was a correct state
ment of the law applicable to the evidence,
such instruction had been fully given by said
Justice.
[2, 3] The plaintiff at the time of the ac-
cident was pregnant: she was struck and
felt pain in bar back and side, and she tes-
tified that at the time of the accident "I
felt the child pushing toward the right"
The plaintiff further testified that from the
time of the accident until the birth of the
child she entertained fears that the child
would be bom deformed. The defendant ex-
cepted to the admission of te8tim(Hiy that
the head of the child was deformed at birth.
The defendant then excepted to the admis-
sion of testimony that when the plaintiff
saw this deformity she was pained. The
defendant also excepted to the charge of the
justice to the jury that in assessing damages
they might consider any mental suffering,
which they found that the plaintiff had en-
dured, due to her apprehension that she
would give birth to a deformed child; and
that they might consider her mental suffer-
ing at the time of the birth caused by her
disappointment at flnding a deformity in
the head of the child, if the jury should also
find that the deformity was a result of the
accident to the plaintiff. The justice very
carefully instructed the jury that the plain-
tiff was not entitled to compensation for the
Injury to the child or for any disappointment
and suffering which she as its mother might
feel during Its life by reason of any deform-
ity In the child; but that the jury were
justified in giving compensation to the plain-
tiff for the mental suffering which the jury
might find she had endured before the birth
by reason of her apprehension of the child's
deformity, and also for her suffering at the
time of birth caused by disappointment in
flnding she had not been delivered of a
sound child, provided they also found that
the deformity was due to the accident The
exceptions which we are now considering
should be overruled. The foetus 1^ a part
of the person of a pregnant woman, and if,
by reason of the nature and circumstances
of an Injury to her person caused by the neg-
ligence of a defendant, she suffers appre-
hension and anxiety as to the effect of the
injury upon the foetus, in accordance with
the well-recognized rule, such mental suffer-
ing becomes an element of her damage as a
natural and proximate result of the neg-
ligence which caused the injury. Further-
more, although she should not be given dam-
ages for the child's misfortune during life,
resulting from an injury to the foetus, nor
for her own subsequent mental distress dur-
ing the lifetime of the child occasioned by
its deformity, the mother Is entitled to dam-
ages for her distress and disappointment at
the time of the birth because through the de-
fendant's negligence she has been deprived
of the right and the satisfaction of bearing
a sound child, If it be found that the child's
deformity is due to the Injury she received
through the defendant's negligence. Pres-
cott V. Robinson, 74 N. H. 460, 69 Atl. 622,
17 L. R. A. (N. S.) 594, 124 Am. St Rep.
987; Big Sandy v. Blankenshlp, 183 Ky.
438, 118 S. W. 316, 23 L. R. A. (N, S.) 345,
19 Ann. Cas. 264.
The defendant's exceptions are all over-
ruled, and the case Is remitted to the su-
perior court for the entry of judgment on
the verdict
PARIAN V. OLSSON et aL (No. 4795.)
(Supreme Court of Rhode Island. June 26,
1917.)
Exceptions. Biix of €=»50(1) — Tbanscbipt
OF Evidence.
Where plaintifF filed with his bill of ex-
ceptions a partial transcript of the testimony,
consisting only of the cross-examination of the
plaintiff, and certain rulings of the trial judge
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upon granting the nonsuit, and endeayored to
supplement the partial transcript hy including in
hia bill of exceptions a summary statement pur-
porting to show what was proved by the other
portions of the evidence, in order thereby to
bring upon the record the purport of the whole
testimony on behalf of the plaintiff, the action
ot the trial judge in striking out and disallow-
ing the summary statement of the testimony and
allowing the bill of exceptions thus changed and
in refusing to allow the partial transcript of
evidence filed with the bill of exceptions on the
ground that it was insufficient was proper.
[Ed. Note.— For other cases, see Exceptions,
Bill of, Cent Dig. §{ 106, lOa]
Action by Daniel Parian against Magnus
CHsson and others. On plalntifTs petition to
establish tbe truth of his exceptions. Peti-
tion denied and dismissed.
William J. Brown, of Providence, for plain-
tiff. Fred L. Owen, of Providence, for de-
fendants.
PEE CURIAM. Upon the plalntifTs peti-
tion to establish the truth of his exceptions
and the correctness and sufficiency of the
transcript of testimony. It appears that the
plaintiff, after suffering a nonsuit in tbe su-
perior court, having reserved certain excep-
tions, in due time filed his bill of exceptions,
and therewith a partial transcript of testi-
mony consisting only of the cross-examina-
tion of the plaintiff, and containing also cer-
tain rulings of the trial judge upon granting
the nonsuit
The plaintiff endeavored to supplement the
partial transcript by including in his bill of
exceptions a summary statement purporting
to show what was proved by the other por-
tions of the evidence^ In order thereby to
bring upon the record the purport of the
whole testimony on behalf of the plaintlfT.
The trial judge struck out and disallowed
this summary statement with regard to the
testimony in the case, and allowed the bill of
exceptions as thus changed. The trial judge
also refused to allow the partial transcript
of evidence filed with tbe bill of exceptions
on the ground that It was insufficient
Thereupon In due time the plaintiff filed in
this court his petition to establish the truth
of his exceptions and the correctness and suf-
ficiency of the transcript, under rulfe 13 of this
court (62 Atl. ix). He asks this court to estab-
lish bis bill of exceptions as originally filed,
including the summary statement of testimo-
ny therein, and attempts by his sworn petition
and by affidavit to show not only the correct-
ness of the portion of the transcript as filed,
but also by another summary statement what
was the purport and substance of all the
other testimony In the case.
We think the case Is ruled by the case of
Beaule v. A«ne Finishing Co., 36 R. I. 74,
89 ,\tl. 73. In that case a similar attempt
was made. The plalntiiT filed with his bill of
exceptions only a portion of tbe transcript,
containing none of the evidence submitted to
the jury, but only containing certain rulings
of the trial' judge. Plaintiff incorporated in
his bill of exceptions as filed a summary
statement of the meaning and effect of cer-
tain evidence alleged to have been Introduced
at the trial; the trial Judge struck out and
disallowed this simunary statement and al-
lowed the rest of the bill of exceptions. Tbe
trial judge also allowed the partial tran-
script as sufficient for the consideration of
certain numbered exceptions, and found It
not to be sufficient for the consideration of
certain other numbered exceptions. Plaintiff
then petitioned this court to establish the
truth of his exceptions and the sufficiency of
the transcript, and this court sustained the
action of the trial judge In striking out the
summary statement, and also In his mllng
as to the Insufficiency of the partial tran-
script for consideration of certain exceptions.
For the same reasons stated In Beatile v.
Acme Finishing Co., supra, this court Is im-
able in the case at bar to find that the trial
judge erred either In changing the bill of
e.cceptions by striking out as he did or In his
disallowance of the transcript as insufficient
We are unable to accept the plalntUTs state-
ment in his petition and affidavits In place of
the testimony which has not been brought
before us in due course of procedure; and we
are forced to rely upon the finding of the
trial judge as to the insufficiency of the par-
tial transcript
Therefore the plaintiff's petiOon must be
denied and dismissed.
(40 B. I. 4E6)
MILLER V. TRUSTEE)S OF TRINITY UN-
ION METHODIST EPISCOPAL
CHURCH. (No. 364.)
(Supreme Court of Rhode Island. July 3, 1917.)
1. Mechanics' Liens <s=»130(1) — Statkhent
—Separate BtJii-niNds.
A Sunday school building on the same tract
of property upon which a church was located
and connected therewith by a corridor, electric
wires, and steam pipes is not a building separate
from the church within the Lien Law (Laws
1909, c. 257).
[Ed. Note.— For other cases, see Mechanics'
Liens, Cent Wg. {{ 178, 180, 181.]
2. Mechanics' Liens «=»158 — Statbuknt —
auendment.
A mechanic's lien claimant can file ao
amended lien statement at any time before the
expiration of the period allowed for filing the
original lien, which amended statement takes tlie
place of the original statement in all respects.
[Bid. Note.— For other cases, see Mechanics'
liens. Cent Dig. K 275-278.]
Appeal from Superior Court, Providence
and Bristol Counties; (tester W. Barrows,
Judge.
Action by Charles Miller against the Trus-
tees of Trinity Union Methodist Episcopal
Church to establish a mechanic's lien. De-
cree for defendant, and petitioner appeals.
Reversed and remanded.
tesokot otber eases see same tgpic anJ KBY-NUMDER in all Key-Numb«rcd Olgcats and Indexe*
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R.D
MILLER T. TRUSTEES OP TRINITY XJNION M. R CHURCH
107
Charles H. McKenna, of ProTldence, for
petitioner. Gardner, Plrce & Tbomlay, of
Providence (Thomas G. Bradshaw, of Prov-
idence, of counsel), for responldent.
VINCENT, J. This Is a pctiUon to es-
tablish a mechanic's lien npon land and build-
ings belonging to the Trinity Union Metho-
dist Episcopal Church. The cause comes be-
fore this court upon the petitioner's appeal
from a final decree of the superior court de-
nying and dismissing his petition. The pe-
titioner's claim is for certain extra work
and materials furnished by him In the con-
struction of a certain building owned by the
respondents.
It appears that the Thomas V. Collinan
Company entered Into a written contract
with the trustees of Trinity Union Metho-
dist Episcopal Church to erect a certain
building for Sun'day school purposes upon the
premises owned by them and located at the
comer of Brldgham street and Trinity square.
In the city of Providence; that the contract
for the painting was sublet by the Culllnan
Company to Charles Miller, the present pe-
titioner; that the petitioner delivered cer-
tain materials and commenced work under
bis painting contract on May S, 1915, and
rendered his bill to the Culllnan Company
for $1,000, which was tlie entire amount of
the contract price ; that the petitioner on the
4th and 6th days of October, 1915, performed
certain extra work and supplied certain ex-
tra materials amounting to $:i2.86, rendering
a bill therefor on October 11, 1915; that
the petitioner performed some work around a
doorsvay In the church, a building adjoining
the Sunday school building and standing
upon a separate and adjoining lot of land;
that the Sunday school while being erected
was connected with the church by a corri-
dor, electric wires, water and steam pipes,
etc.; that a notice of intention to claim a
mechanic's lien was served on respondent on
November 6, 1915, and on the same day a
copy thereof was placed on record in the
office of the recorder of deeds in Providence;
that the petitioner on January 6, 1916, lodged
his account or demand in the office of safd
recorder of deeds and filed his notice, setting
forth the land and to whose interest therein
the account or demand referred for the pur-
pose of commencing legal proceedings; tliat
the petitioner afterwards lodged In the office
of said recoi'der of deeds three other accounts
or demands, each of which was followed by
a notice setting forth the land and to whose
estate the account or demand referred for
the purpose of commencing legal proceed-
ings. These accounts were filed respectively
on January 31, 1916, February 25, 1916, and
February 29, 1916; that on March 1, 1916,
within 20 days after the lodging of the fourth
account, and the demand an'd notice, the pe-
titioner filed in the office of the clerk of the
superior court for Providence coanty bis pe-
tition to mforce said claim of lien, attaching
thereto notice of the last account or demand
filed under date of February 29, 1916; that
notice of tbe filing of said petition was duly
given by the clerk of the superior court for
Providence county.
All these accounts were filed within the
statutory period of 6 months from the com-
mencement of the work and the furnishing
of the materials which, are the subject of the
claim, an'd the petition to enforce the Hen
was filed in the clerk's office of the supe-
rior court within 20 days after the lodging of
the fourth account, demand, and notice.
[1] The respondent claims that the peti-
tioner is seeking to enforce a J<dnt Mea oa
two separate buildings; that is, that the
Sunday school building, although connected
by means of a corridor, electric wires, water
and steam pipes, etc, Is, in contemplation of
the statutory provisions, two separate build-
ings, and that the petitioner's account lodged
with the recorder of deeds falls to separate
and specify which Items apply to the Sunday
school building and which apply to the church
building. The respondent also claims that
the petitioner cannot be permitted to file
more than one account within the required
period of 6 months from the commencement
of the work or, in other words, that the sec-
ond, third, and fourth accounts filed must
be regarded as amendatory of the first ac-
count file'd on January 6, 1916, and, that
being so, the petition to enforce a lien was
not filed In the office of the clerk of the
superior court within 20 days after the com-
mencement of legal proceedings.
The respondent, admitting for the purpose
of argument that the petitioner may abandon
the first three accoiuts filed by him for the
purpose of commencing legal process, and
can rely upon the fourth account filed Feb-
ruary 29, 1916, contends that such fourth ac-
count is fatally defective in that it does not
specify which items are chargeable to the
Sunday school building and which items are
chargeable to the church building.
The estate of the respondent at the comer
of Brldgham street and Trinity square com-
prises two adjoining lots of land, one having
been conveyed to it March 14, 1864, and the
other November 10, 1909. The church build-
ing, so called, is situated upon the first-nam-
ed lot, and the Sunday school building upon
the other lot These buildings are used by
the respondent for the purpose of conduct-
ing and carrying on its usual and customary
church work, and the two structures are, for
more convenient use, connected by a passage-
way providing an easy and unexposed means
of communication from one to the other.
Light, heat, and water are supplied to the
Sunday school building by means of wires,
steam, and water pipes extended from the
church building throujth the connecting cor-
ridor before mentioned.
The respondent lias cited section 7, c 257,
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108
101 ATLANTIC REPORTEB
(R.I.
General Laws of 1909, and also several Rhode
Tsland cases In support of its contention that
the account Is 'defective In not specifying
the items chargeable to each building. In
order to extend to these authorities any ap-
plicability to the case before as, it would
be necessary to reach the conclusion that the
church and Sunday school buildings were
separate and distinct structures. In Bou-
ohard v. GuIsU, 22 R. I. 591, 48 AH. 034, the
notice failed to state that the materials were
furnished for any building or improvement
at aU.
In McElroy v. Kelly, 27 B. I. 64, 80 Atl.
C79, it was held that the petitioner Should
have filed a separate notice of his intention
to claim a lien upon each house and a sep-
arate account for each house of the material
famished and used In it. In that case, as
the court said in its opinion :
"The houses were exactly alike but were not
joined together in a block, but separated and
adapted to be occupied each with a separate
curtilage."
In Butler & Co. v. Rivers, 4 R. L 88, the
petitioner proceeded against two several es-
tates having distinct owners, and sought to
charge both estates for the work and ma-
terials furnished for each, as the court said,
"in efTect to make one of them chargeable
with work and materials expended upon the
other."
In McDufC Coal & Lumber Co. v. Del Mona-
co, 32 R. I. 323. 79 Atl. 831, the petitioner
undertook to proceed upon the theory that,
inasmuch as tliree houses on separate tracts
of land were undergoing constrnction at or
about the same time, they had a general lien
upon all of them for a general balance due
on the assumption that probably approxi-
mately one-third of the materials had been
used in each house, and that ccmsequently
they could Include all three claims In one
proceeding.
The respondent claims that It appears from
the foregoing cases to be incumbent upon one
desiring to establish a mechanic's Hen for
materials furnished and used in the construc-
tion of more than one building, whether such
building be upon the same or adjacent lots
of land, to describe each lot and building sep-
arately aad to particularize in his account
the items chargeable to each. We have no
controversy with such deduction from the
cases cited. As before stated, in order to
make them applicable it must be assumed
that the church and the Sunday school struc-
tures are separate and Independent build-
ings. We cannot so hold. The whole tract
of land is owned by the respondent; the
buildings are used for one general purpose;
they are physically connected, the one being
dependent upon the other for light, heat, and
water. We think that under these condi-
tions the re.spoudent's claim of two separate
and distinct buildings cannot be accepted.
In fact, to carry out and establish the con-
necting corridor work upon both structures
would be required, and the determination of
a proper dividing line between the two would
be difficult, if not impossible.
[2] The respondent further contends that
the account lodged with the recorder of deeds
February 29, 1916, that being the fourth ac-
count. Is fatally defective, because it is in
amendment of the first account filed January
6, 1916, and cites Harris v. Page, 23 R. L 440,
50, AU. 859. In that case the peUttoner
sought to amend his account by extending it
or adding thereto Items not appearing in the
original statement. The opinion does not
state specifically whether the application to
amend was made before or after the expira-
tion of the time allowed by statute for fil-
ing an account as the commencement of legal
process to establish a lien, but it may be rea-
sonably presumed that It was after; for oth-
erwise the petitioner might have filed a new
account and raised the same question which
we are now discussing.
The respondent further claims that the
filing of the first account on January 6, 1916,
was the commencement of legal process, and
that within 20 days thereafter the petitioner
was bound to file his petition in equity in the
superior court and falling to do so lost his
lien. The petitioner, on the other hand,
claims that he is not limited under section
7 of diapter 257 to the filing of one account,
but that he can file other accounts, waiving
and abandoning all former ones, provided the
last account is filed within the time limited
for the commencement of legal process and
his petition to enforce the lien is filed within
20 days thereafter.
It is apparent that the first three accounts
filed by the petitioner, for one reason or an-
otlier, were defective. The fourth account
was filed within the required time, and the
fact that the petitioner proceeded further in
the establishment of his lien upon the fourth
account only is evidence of an intention upon
his part to abandon all accounts previously
filed.
To say that the petitioner must stand upon
the first account filed, however defective it
may later be discovered to be, and that he
cannot abandon it and file another account
within the statutory period, would, in our
opinion, be inflicting upon a petitioner an un-
necessary and unwarranted hardship which
the statute neither requires nor contemplates.
The respondent argues that after the fll-
Ing of the first account Innocent parties
might reasonably infer that the full amount
of the claim had been disclosed, and thus be
led into dealing with the estate to their dis-
advantage should the filing of a later account
be permitted. We do not see any great force
In this argument. The statute fixes a period
within which proceedings may be instituted
for the establishment of liens, and one who
deals with the estate before Its explraticn
must do so at his peril.
The appeal of the petitioner la sustained,
the decree of the superior court denying and
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STATE V. MoAVOT
109
dismissing the petition is reversed, and the
cause is remanded to the superior court, with
direction to enter a decree establishlns the
lien of the petitioner upon the estate of the
respondent described In the petition for the
sum of $32.6a
KINGSTON V. WILSON. (No. 6084.)
{Supreme Court of Rhode Island. July S, 1917.)
Garnishment *=»56 — Pbopebtt Subject—
Deposits.
Wberp it appeared that none of the mmey
deposited with the garnishee trust company in
the account of defendnnt as agent belonged to
him, but was wholly the money of bis prindpal,
the garnishee was not chargeable.
[Ed. Note.— For other cases, see Gamislmient,
Cent. Dig. JS 110, 111.]
Exceptions from Superior Court, Prov-
idence and Bristol Counties; Chester W.
Barrows, Judge.
Action by James Kingston against Robert
H. Wilson. Plaintiff's motion to charge the
garnishee was denied, and he excepts. Ex-
ception overruled, and case remitted.
John P. Beagan, of Providence, for plain-
tiff. Benjamin W. Grim, of Providence, for
defendant.
PER CURIAM. This is an action of debt
on judgment. The case is before us on plain-
tiff's exception to the ruling of a Justice of
the superior court denying the plaintiff's
motion to charge the garnishee.
According to the affidavit filed by the In-
dustrial Trust Company, garnishee In the
-case, it appears that at the time of the at-
tachment made under the direction contained
in the writ, there was In the bands and pos-
session of said garnishee $289.12 standing in
the name of the defendant as agent ; that the
defendant had stated to the garnishee that
he was the agent of Colgate & Co. From the
uncontradicted evidence given at hearing be-
fore said justice on the plalntlCTs motion to
charge the garnishee It apiwared that the
defendant was the manager "for the district
here" of Colgate & Co., an'd was charged
with the duty of directing the worlt of the
salesmen employed by said Colgate & Co.;
that there were about 17 men employed by
Colgate & Co. under the direction of the de-
fendant; that none of the money deposited
in said account of "Robert Wilson, Agent,"
belonged to the 'defendant, but was wholly
the money of Colgate & Co. In view of these
facts, which said Justice found to be true,
we are of the opinion that there is no error
In the action of the superior court denying
the motion to charge the garnishee.
Plaintiff's exception is overruled ; the case
is remitted to the superior court for further
proceedings.
(40 R. I. 437)
STATE V. McAVOT (two cases).
(Nos. 4948, 4940.)
(Supreme Court of Rhode Island. July 8, 1917.)
1. Embezzlement «=>3S— Evidence— Adkis-
sibilitt.
In a prosecution for embezzlement by an
agent in charge of selling and delivering flour,
evidence as to instructions given defendant by
his predecessor as to his duties in making re-
ports, collections, and deposits was admissible.
[Ed. Note. — For other cases, see Embezzle-
ment, Cent. Dig. ii 61, 65, 66.]
2. Cbihinal Law «=»1169(1) — Revikw —
Habmless Ebrob.
In a prosecution for embezzlement by an
agent intrusted with the duty of selling and de-
livering flour, admission of slips showing deliv-
eries of flour by the warehouse company and of
an inventorjr of flour kept therein made by its
bookkeeper, if error, held harmless.
[Ed. Note. — For other cases, see Criminal
Lew, Cent. Dig. U 8180, 3137.]
8. Embezzixmbnt «=s38— Evidence— Admis-
sibilitt.
In a prosecution for embezzlement of the
proceeds of flour sold and delivered by an agent,
testimony by the bookkeeper of the warehouse
wherein the flour was kept as to the numl>er of
barrels on liand as shown by the report of the
defendant to the milling company was admissi-
ble.
[Ed. Note. — ^For other cases, see Ehnbezzle-
ment, Cent Dig. S§ 61, 65, 66.]
4. Embezzlement ^=344(5) — Defenses— Del
Cbedere.
In a prosecution for embezzlement, evidence
held not to tihow that defendant was a del cre-
dere factor.
[Ed. Note. — For other cases, see Embezzle-
ment, Cent. Dig. { 70.]
5. Embezzlement ^=9l4 — Defenses — Del
Ckeoebe Factobs.
That an agent charged with embezzlement
was a del credere factor of his principal consti-
tutes no defense ; such relation not changing the
ordinary one existing between himself and his
principal within Gen. Laws 1909, c. 345, J 16,
providing that every officer, agent, Clerk, or serv-
ant who shall emb^zle property which shall
have come into his possession by virtue of his
employment shall be deemed guUty of larceny.
[Ed. Note.— For other cases, sea Embezzle-
ment, Cent Dig. |§ 13-15.]
6. Embezzlement €=>38— Evidencb— Matbbi-
alitt— Pbivileqed Communications.
In a prosecution for embezzlement, it was
not error to exclude as immaterial correspond-
ence received by the state board of tax commis-
sioners offered on the question as to whether the
employer, a company incorporated in another
state, had been doing business in this state, since
under Pub. Laws 1912, c. 769, 8 15, such in-
formation could not be divulged except upon
order of the court
[Ed. Note.— For other cases, see Embezzle-
ment, Cent Dig. §§ 61, 65, 66.]
7. Embezzlement i8=48(l) — Inbtbuotions —
Appropbiation of Propebty.
In a prosecution for embezzlement. It was
not error to instruct that the ownership of tlie
flour the proceeds of which were alleged to have
been embezzled was controlling as to defendant's
rights thereto.
[Ed. Note.— For other cases, see Embezzle-
ment, Cent Dig. {J 72, 75.]
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8. BtHBEZZUaiENT «=»44(1)— EVIDENCK— SUF-
WCIKNCT.
In a prosecution for embezzlement, evidence
held to warrant a finding of guilty.
[HJ. Note.— For other cases, see Embezzle-
ment, Cent Dig. {{ 67, 70.]
Exceptions from Superior Court, Prov-
idence and Bristol Counties; George T.
Brown, Judge.
Harry A. McAvoy was convicts of em-
bezzlement, and be brings exceptions. Ex-
ceptions overruled.
Herbert A. Rice, Atty. Gen. (Claude R.
Brancb, of Providence, of counsel), for the
State. Fitzgerald & Higglus and Peter M.
O'Reilly, all of Providence, for defendant.
VINCENT, J. In December, 1914, the
grand Jury for Providence county presented
two indictments against the defendant for
embezzlement To each of these indictments
the defendant plea'ded not guilty and was re-
leased on bail. The two cases were tried
together in the sui>erior court. The defend-
ant moved to be discharged at the conclu-
sion of the testimony offered on behalf of
the state. The motion was 'denied. The jury
returned a verdict of guilty as charged in
each indictment, each being for the em-
bezzlement of an amount exceeding $500.
The d^en'dant filed a motion for a new
trial, upon the usual grounds, which was
denied by the trial court
The case is now before us upon the defend-
ant's exceptions covering the denial of his
motion for discharge; to various rulings
during the trial as to the admissibility of
evidence; to certain portions of the charge
of the court; and to the denial of the motion
for a new trial. The defendant's exceptions
are 58 in number, but we are advised by
his brief that he relies only upon exceptions
numbered 1, 2, 3, 32, 83, 34, 30, 53, 54, 67.
an'd 58.
The indictment No. 8269, now before us
on exceptions No. 4948, charges the defend-
ant, Harry A. McAvoy, on the 1st day of
January, 1914, at Providence —
"b«ng then and there the derk and agent of
the Bay State Milling Company, a corporation,
did then and there by virtue of his said employ-
ment have, receive, and talce into his possession
money to a large amount to wit, to the amount
of $1,368.87, and of the value of $1^68.87, of
the pn^erty and money of the said Bay State
Milhng Company, a corporation as aforesaid, the
said Harry A. McAvoy s employer, and the said
Harry A. McAvoy the said money then and
there feliwiously did embezzle and fraudulently
convert to his own use, without the consent of
the said Bay State Milling Company, a cor-
poration as aforesaid, the said Harry A, Mc-
Avoy's said employer, whereby and by force of i
the statute in such case made and provided the \
(■aid Harry A. McAvoy is deemed guilty of
larceny," etc. |
The indictment No. 8270, now before us |
on exceptions No. 4949, is Identical with the |
one above referred to, with the exception of
the date of the embezzlement, which is stated I
on July 1, 1914, and the amount embezzled as
$2,834.30.
The defendant, covering the periods of the
alleged embezzlements, was In the employ of
the Bay State Milling Company a corporation
created under the laws of the state of Min-
nesota an'd having its principal ofllce In the
city of Boston, Mass. All the dealings of the
defendant were with this office. The defend-
ant was hired by the president of the com-
pany, Bernard J. Rothwell, and his assist-
ant, Ernest C. Harris, and commenced work
for said company in April or May, 1913. His
duties were to sell flour in Providence and
vicinity and to collect the proceeds of such
sales. During his earlier employment by the
milling company he perform^ these duties
for a stated salary of $70 per month and an
allowance for expenses, both of which were
paid by the checks of the milling company.
Upon assuming his duties the defendant
was instructed to conduct the business in the
same manner in which it had been conducted
by his predecessor. Fay G. Hicks. In com-
pliance with such Instructions, the defend-
ant submitted himself to the tutelage of
Hicks for a period of about a week, receiv-
ing from him minute directions as to the
method of conducting the business and being
introduced by him to various customers.
The instructions given to the defendant by
Hicks were that each sale was to be report-
ed to the milling company by sending to its
office in Boston a duplicate or carbon copy of
the invoice slip on the day of the sale, and a
weekly report, including an account of the
stock on hand at the warehouse and a list of
the collections. Tlie milling company fur-
nished to the defendant a pad of Invoice
slips, numbered consecutively, there being
four copies to each number, distinguishable
from each other by the color or character of
the paper. The original or white slip was to
be kept by the defendant ; the blue slip to be
sent to the customer ; the slip of tissue paper
was to be forwarded to the olSce of the mill-
ing company in Boston; and the pink slip
was not required under the arrangement
with the defendant Printed blanks for the
weekly reports were also furnished to the de-
fendant by the milling company which were
designed to show, when properly filled out,
the number of barrels of flour received dur-
ing the week ; an itemized list of the number
of barrels delivered to customers from the
warehouse; the number of barrels remain-
ing in the warehouse; and an itemized list
of all amounts collected from customers. As
soon as the defendant collected the proceeds
of sales, cither in money or by check, he wsw
to deposit the same in the Merchants' Na-
tional Bank in Providence in the name of the
milling company and report the same by
sending to the milling company a copy of
the deposit slip.
On November 1, 1913, a further arrange-
A=>Por other caara see same topic and KEY-NUMBBR in all Key-Numbered Digests and Indexes
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STATE T. MoAVOY
111
ment was mnde between the defendant and
tbe milling company whereby the defendant
should thereafter, Instead of receiving a
L^ed salary, be paid a commission of 35
cents for every barrel of flour sold by him, he
paytaig Ills own expenses, the expenses of
storing and cartln;; the floor in Providence
and the guaranteeing of all accounts. Ttds
iirrangemeoit does not appear to have modi-
fied, or to have been intended to modify, the
previous instructions given to defendant as
to reports, collections, and deposits. In car-
rying out tills additional arrangement tbe de-
fendant was paid $16 a week in advance on
account of commissions. The balance due the
defendant on account of commissions was
paid to him from time to time by check from
tbe milling company, and he was not permit-
ted to deduct such commissions from bis col-
lections. Later, the milling company becom-
ing dissatisfied with tbe defendant's dilatori-
ness in collecting the accounts, a further ar-
rangement was made between the parties,
tubing effect In March, 1914, whereby the de-
fendant was to be ciiarged interest on all ac-
eomits wlildi were not collected wittiln 45
days.
During tbe summer of 1014 there were
some negotiations between the defendant and
tbe milling company looking to some arrange-
ment wbereoy the defendant should buy the
tiour from tbe milling company and sell it on
Ids own account, and on October 9, 1914, the
defendant wrote to the mlUing company that
by the next month he hoped to "buy the busi-
ness outright." This arrangement was never
completed, and the defendant admitted at
the trial that ttas letter was written merely
for the purpose of gainlmg time.
Tbe uiilling company shipped the flour In
its own name to a warehouse in Providence.
None of the flour was ever conslgued or
charged to the defendant, and the defend-
ant's name did not appear in tbe shipment
Ml the bills sent by the defendant to pur-
chasers of flour were in the name of tbe
milling oompoiny, a notice being stamped
thereon requesting remittance to "Uarry A,
McAvoy, Agt" The defradant also ia the
transaction of the business used stationery
which was headed "Bay State Milling Com-
pany." The defendant was given no author-
ity to make prices on bis own account, and
letters and bills were sent direct to delin-
quent customers by the milling company.
The defendant undertook and purported to
conduct the business in accordance with
these arrangements. He sent to the milling
company duplicate invoice slips and copies
of deposit slips and a weekly report in tbe
form heretofore described.
The evidence shows that the defendant
made sales and deliveries which he never re-
ported to the milling company, and that ho
made collections wliich he did not deposit in
the Merchants' National Bank or report to
the milling company, Iwt appropriated the
same to his own use. There is evidence
sbovrlng the methods resorted to by tbo de-
fendant tn concealing from the milling com-
pany that he was obtaining money which be
did not report ; tliat he omitted to report to
the company certain collections which he
liad made on deliveries reported; that he
omitted to report certain sales and deliv-
eries; that he would deliver flour to two
different customers under invoices of the
same number and report but one of these
deliveries to the company, sending the white
slip to one customer and the blue slip of the
same number to another customer instead
of retaining either for himself, and on the
tissue slip of the same number send to the
company a report of only one of the sales.
The defendant admitted that in one in-
stance he had intentionally concealed from
the milling company one sale and collection
amounting to $S5, but he testified that his
failure to report other collections to the oum-
ber of a dozen or more was due to forget-
fuiness.
The defendant hod been instructed to de-
posit all coUecticms to tlie accoimt of the mill-
ing company in the Merchants' National
Bank and send the milling company a copy
of each deposit slip; and, according to tbe
testimony of the otScers of the milling com-
pany, the defendant had no authority to in-
dorse any check made out to the onler of the
milling company or to deal with either money
or checks received in payment of flour ex-
cept to deposit the same to the account of the
milling company in the Merdiants' National
Bank. The testimony shows, however, that
several checks made out to the order of the
milling company were deposited by tbe de-
fendant to his own account In the Industrial
Trust Company of Providence, the defendant
indorsing them "Bay State Milling Company,
Harry A. McAvoy, Agent," and that the
amounts represented by such checks wore
never reported to the milling company as col-
lections.
In July, 1914, the milling company wrote
to the warehouse in Providence in which the
flour was stored requesting an inventory of
the flour o[ tbe milling company then In Its
possession. Tbe defendant, visiting the office
of the warehouse company and seeing tbe let-
ter requesting an inventory, told the repre-
sentatives of tbe warehouse company that he
would take care of that matter, and accor I-
Ingly prepared an Inventory on a sheet of
letter paper headed with the name of the
warehouse company, which paper had In
some unexplained manner come into the de-
fendant's possession. Hie Invraitory thus
prepared by the defendant was typewritten
and without signature. There was nothing
upon it to indicate that it was not compiled
by employes of tbe warehouse company. The
amounts given in this inventory correspond-
ed with those given by the defendant in his
reports, but exceeded by about 300 barrels
the amount of flour whidti was actually in
tbe bands of tbe warehouse company.
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112
101 ATLANTIC REPOKTJCR
(K.I.
The defendant made some explanation of
this matter of the inventory to the effect
that an employe of the warehouse company
asked him to make out the inventory and
that he copied the figures from his previous
reports. Although the milling company later
wrote to the defendant referring to this re-
port as the report of the warehouse com-
pany, the defendant did not advise the mill-
ing company that such report bad been made
by himself.
There was also testimony that on Novem-
ber 14, 1914, the milling company was noti-
fied by the Merchants' National Bank that its
account was overdrawn. This turned out to
be due to the fact that the defendant had
deposited in that bank a check against his
own account in the Industrial Trust Com-
pany which did not prove to be good. Mr.
Harris of the milling company came to Provi-
dence and telephoned the defendant that he
would like to see him at the Narragansett
Hotel. Harris testifies that defendant stated
to him over the telephone that he would be
at the hotel in a few minutes. The defend-
ant, however, went to New London, Conn.
Harris, after waiting for a time, telephoned
the defendant's father, who in turn tele-
phoned the defendant at New London, sug-
gesting to the defendant that he return to
Providence, and he accordingly came back
the next day. The defendant, however, testi-
fies that he told Harris over the telephone
that he had made arrangements to go to the
southern part of the state to see prospective
customers and could not see him that day.
On cross-examination the defendant admitted
that he had never before solicited business
in Westerly, and that he could not remember
the name of a single person upon whom he
called. He said that he went to New London
because there was no decent hotel in Wester-
ly where he could spend the night. The de-
fendant further admitted on cross-examina-
tion that he knew nothing whatever about
the hotels at Westerly, and had no reason
whatever for being dissatisfied with them.
Witnesses for the state testified that the de-
fendant admitted at the start that he had
gone to Connecticut because he was afraid to
face Harris; that be had appropriated money
collected to the extent of some ?6,000, In-
cluding about $2,000 of the sales which he
had not reiwrted to the milling company;
that he had made out a false Inventory on
the letter paper of the warehouse company,
and that he had paid out most of the money
which be had taken to make up for losses in
speculating In wheat; that tiie defendant,
without making any attempt to Justify the
taking of the money, told the representatives
of the company that they could put him In
jail if they wanted to, and when arrested by
Inspector Magulre he said he had been a
fool to give up his ledger to the company.
In October, 1914, in answer to some com-
plaints of the milling company that he was
behind in the collection of his accounts, the
defendant wrote to the milling company that
In a few weeks an estate in which he was in-
terested would be settled, and that he would
then have the money to remit, but he admit-
ted on cross-examinatlMi that this story was
a falsehood, and that there was no such estate.
The only exceptions pressed by the defend-
ant, as stated in his brief, are those number-
ed, 1, 2, 3, 32, 33, 34, 36, 63, 64, 57, and 58.
[1] The defendant's exceptions 1, 2, and 3
relate to the admission of certain testimony
of Fay G. Hicks. Hicks was the predecessor
of the defendant as the Providence agent of
the milling company. The defendant was
told to get from Hldu instructions as to the
method of carrying on the business. The de-
fendant went to Hicks, and Hicks spent the
greater part of a week In giving him instruc-
tions as to making and reporting sales and
collections and also taking him to Interview
customers. The defendant objected to the
testimony of Hicks In reference to the in-
structions he gave to the defendant on the
ground that such instructions were given in
April, 1913; that the contract under which
he was then employed by the milling com-
pany ended in November, 1913, previous to
the embezzlement set forth In the indictment ;
and that the arrangements from November 1,
1913, to the conclusion of his dealings with
that company were very different, and it was
immaterial what the arrangements were prior
to 1914, the time laid in the indictment
We do not think that the contract between
the defendant and the milling company can
be said to have ended in November, 1913.
The contract was added to or modified in
some respects at that time, but such additions
or modifications did not relate to the reports,
collections, and deposits which the defend-
ant was instructed to make and under which
instructiimg he undertook to act
The modifications referred to related to
the defendant's compensation,' the guarantee-
ing of accounts, and to the payment of in-
terest on accounts after the same had been
overdue for a certain period. The duties of
the defendant in the matter of reports, collec-
tions, and deposits were those given to him
by Hicks at the Instance of the milling com-
pany, and we think that such testimony was
properly admitted, and ttiat the defendant's
exceptions 1, 2, and 3 must be overruled.
The defendant's exceptions 32, 33, and 34
relate to the same matter, and may be con-
sidered together.
In July, 1914, the milling company wrote to
the warehouse company for an inventory of
the flour on hand. This Inventory, as before
stated, was made up by the defendant, type-
written upon the letter paper of the ware-
house company, was without signature, and
bore no indication that it emanated from the
defendant. It was sent by the defendant to
the milling company purporting to be a cor-
rect statement by the warehouse company of
the amount of flour on hand. The state, in
Its endeavor to show the falsity of this state-
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BTATB V. MoAVOY
113
ment and that the amount of flour to the pos-
session of the milling company was much
lees than that represented In the report, of-
fered In evidence an InvMitory of the flour In
the hands of the warehouse company on July
30, 1914, made up by the bookkeeper of that
company. In making such Inventory the
bookke^)er started with the balance of flour
as shown by the Inventory of the month pre-
ceding, and deducted therefrom the deliveries
during the month as reported to him by the
teamers. These reports of the teamers were
made from time to time upon slips used for
that purpose which were filed In the ottlce of
the warehouse company. Some of these slips
were offered in evidence in verification of the
toventory of the bookkeeper. Another em-
ploye of the warehouse company testified
that he actually counted the stock of fiour on
hand, and found that his figures corresponded
with the figures of the Inventory made by the
bookkeeper. Besides this, Mr. Harris of the
milling company counted the barrels of flour
on hand In the warehouse and found a short-
age of 575 barrels.
[2] The defendant contends that the Intro-
duction of the slips referred to showing de-
liveries of flour made by the teamers of the
warehouse company and the Introduction of
the toventory of flour made therefrom by
the bookkeeper of the warehouse company
amounted to nothing more than the totroduc-
tloD of hearsay evidence, the admission of
which was error. The apparent purpose of
the testimony was to show that the defend-
ant had deceived the milling company by
conveying to that company a false report of
the flour on hand. If we take the view that
the admission of such testimony was errone-
ous. It would not constitute reversible error
to view of the fact that there was other tes-
timony establishing the falsity of the defend-
ant's toventory which he did not dispute.
The defendant's exceptions 32 and 33 must be
overruled.
[3] The defendant's exception 34 is to the
rultog of the court allowing the bookkeeper
of the warehouse to testify as to the number
of whole barrels of flour on band as shown
by the report of the defendant made to
the milling company. The defendant object-
ed to the question on the ground that the is-
sue waa not the embezzlement of flour. We
see no merit in this exception. The number
of barrels disposed of and unaccounted for
by the defendant would naturally form a
basis for ascertaining the amount of money
covered by the embezzlement. The defend-
ant's excepdon 34 Is overruled.
[4] At the condnslon of the testimony for
the state the defendant moved that he be
disdiarged, and his exception 36 is to the
refusal of the trial court t» grant that motion.
The basis of this motion was that under the
facts as presented the defendant was a del
credere factor, and that the relations between
himself and the milling company were simply
those of debtor and creditor. Passing over
101A.-S
the contention of the state that the disposi-
tion of such a motion is within the discretion
of the court and Is not the subject of excep-
tion, two questions present themselves for,
consideration: (1) Was the relation of the
defendant with the milling company that of
del credere factor? and (2) if such relation
listed, could the defendant be found guil-
ty of embezzlement under the todlctments
brought against him?
In determining the first of these questions,
we must consider the agreement between the
parties and apply thereto the familiar rules
of construction, all of which are subordtoate
to the leading principle that the intention of
the imrtles must prevail unless toconsistent
with some rule of law. And such intention
must be gathered not from a portion or por-
tions of the contract but from the whole
taken together. 11 R. O. L. 755; 1 Clark &
Skyles on Agency, 24.
In the case at bar the flour was never
consigned by the milling company to the de-
fendant It was shipped direct to the ware-
house In Providence, where It was held as
the property of and to the name of the mill-
ing company and was at all times subject to
Its orders. The defendant, after maktog a
sale of flour, was permitted by the milling
company to withdraw from its stock in the
warehouse a suflldent number of barrels to
fill the order. A bill was rendered to the
purchaser in the name of the milling com-
pany, there being stamped upon such bill a
notice to pay the amount due thereon to the
defendant as its agent. Upon the receipt of
the money the defendant was obligated, un-
der his contract, to deposit it in full in the
Merchants' National Bank to the credit of the
mllltog company without any deduction
therefrom for salary, commission, or ex-
I>enses.
We cannot flnd any intent of the parties,
either expressed by the contract itself or
by the methods In which thtir respective
duties under it were discharged, that would
warrant us In drawing the conclusion that the
defendant was acting otherwise than as the
agent of the milling company.
The defendant seems to place much reli-
ance upon the fact that under certain condi-
tions he was to be held responsible to the
milling company for Interest upon accounts
overdue for a certain length of time, and
to some tostances for the payment of the
principal sum. The reason for this arrange-
ment is quite apparent from the record. The
milling company had expressed its dissatis-
faction at the seeming todifference of the
defendant regarding the prompt collection of
the accounts due and his want of care to the
selection of responsible customers. The ar-
rangement was doubtless made for the pur-
pose of stlmnlattog the defendant to look
more closely after the collections and to be
more careful about making sales to irre-
sponsible parties. It could hardly be Inferred
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68
101 ATLANTIO SSPOBTBR
<N.J.
wlfhont power to refer tbe matter at bar to
a vice ordinary la also musonnd. Tbe con-
tention la that because tbe appeal la given
In terms to tbe ordinary, and that no power
to refer It Is given In the same statute, the
right does not exist This Is falladons, for
by act of 1918 (P. U p. 81) the ordinary Is
empowered to refer any matter pending in
the Prerogative Court to a vice ordinary for
hearing and advloe, but the jurisdiction
which the vice ordinaries ezerdse, upon ref-
erence to them, la not derived from this stat-
ute, but by delegation from the ordinary by
virtue of his inherent powers.
In an eihaustive review of the powers of
the vice chancellors <whose oflSoe was like-
wise created by statute), in Re Thompson, 89
N. J. Eq. 221, 96 Atl. 102, OhanceUor Walker,
at page 257, holds Uiat:
"Their jurisdictioQ is complete by delegation
from the chancellor under the aathonty inhering
In his general power derived from the High
Court of Chancery in England and devolved
upon our Court of Chancery by the ordinances
or Lord Combury and Governor Franklin, and
ratified by the ConstitutJons of 1776 and 1844."
And at page 261 of 85 N. J. Eq., 96 Atl.
102, he holds that a perfect analogy exists
with reference to the Prerogative Court, in
which tbe Lesialature has authorized the ap-
pointment of vice ordinaries, the ancient of-
fice of surrogate, as deputy or assistant to
Uie ordinary, being the source of power in
the vice ordinaries.
It is to be observed that in the act creat-
ing the office of vice ordinary (P. U 1913, p.
81) the Legislature lias provided that the or-
dinary may refer to any vice ordinary any
cause or other matter wUch at any time may
be pending in the Prerogative Court, to hear
tbe same for the ordinary and report Uiereon
to litm and advise what order or decree
should be made therein. Now, If tlie ordi-
nary is a functionary apart from himself as
the Judge of the Prerogative Court, it is
singular that the lawmaking body did not
t>estow the power to refer upon the Judge of
the Prerogative Court, ttie only functiooary
who in such case could constitutionally exer-
cise It, instead of casting it upon the ordina-
ry, who could not lawfully do so. In this
we have legislative interpretation to the ef-
fect that the ordinary and Judge of the Pre-
rogative Court, and likewise ttteir Jurisdic-
tion, are one and the same.
Enough has been shown, I tliink, to demon-
strate that the act imder which tills assess-
ment was made, and which gives an appeal
to the ordinary, treats the ordinary and the
Prerogative Court as one and the same — a
single Judicial entity.
[3] The giving of an appeal to the ordi-
nary in the Inheritance transfer tax act is a
valid legislative enactment
It may be that certiorari in tbe Supreme
Court is a method for the review of an ap-
praisement or tax made or levied under the
inheritance transfer tax act, but considering
that an appeal haa been provided to the or-
dinary, the Supreme Court would probably
deny the allocatur on such a writ before, or
even after, the time for appeal to the ordi-
nary had expired, as the allowance of an al-
locatur is discretionary. Florenzie v. East
Orange, 88 N. X Law, 438, 97 AtL 260.
In Re Prudential Ins. Co. of America, 82
K J. ESq. 335, 88 Aa. 970, the Court of Er-
rors and Appeals held that the statutory
scheme providing for the condemnation of
the capital stock of a stock life insurance
company for certain purposes mentioned was
cast by tbe Legislature upon the chancellor,
or the Court of Chancery, a distinction wlilcit,
if it exists, was of no practical moment to
the motion then before the Court of E^^^ors
and Appeals, and at page 339 that the statu-
tory proceeding before that court was review-
able by certiorari only, regardless of the fact
that one of the agencies that took part in it
was the "Court of Chancery."
I bold that the proceeding before me is one
in the Prerogative Court, and one which the
ordinary could lawfully refer by virtue of
the act of 1913 (P. L. p. 81) empowering him
to refer to any vice ordinary any cause or
other matter which at any time might be
pending in the Prerogative Court
Now, the act of 1909 (P. L. p. 325) pro-
vides for taxing the transfer of property of
decedents by devise, descent, etc., and section
18, as seen, allows any one dissatisfied with
an a^essment of such taxes to appeal to the
ordinary. The only question raised by such
an appeal is as to whether or not the assess-
ment is excessive, and the review of such a
question may be devolved upon a court of ap-
peal. Florenzie v. East Orange, 88 N. J.
Law, 438, 97 Atl. 260. There an appeal from
an assessment for benefits for a municipal
improvement was confided to the circuit
court, and the Jurisdiction thus given was
upheld. Here an appeal from the assess-
ment of a property transfer tax is confided
to the ordinary of the Prerogative Court
The principle is the same. The grant of ap-
pellate Jurisdiction to this court in tax trans-
fer matters is as valid as that to the circuit
courts in assessments for munidpal improve-
ments.
[4] The reason that legislation establish-
ing special statutory tribunals for the hear-
ing and determining of appeals theretofore
cognizable only in the Supreme Court on cer-
tiorari is valid is because a review of the
decision of the special tribunal is removable
into the Supreme Court by certiorari, and
that court's Jurisdiction on certiorari is there-
fore not impaired. Certiorari in such cases
is in the nature of an appeal, and aji appeal
Is a Judicial proceeding cognizable in a court
[S] It would appear that the decree of the
Prerogative Court on these appeals is re-
viewable by certiorari in the 'Supreme Court,
Instead of by appeal to the Court of Errors
and Appeals. In re Prudential Ins. Oo. of
America, 82 N. J. Eq. 335, 339, 88 Atl. 970;
Florenzie t. Bast Orange, 88 N. J. Law, 438,
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M.J.)
MATEREA v. ERIE! R. CO.
69
440, 97 Atl. 260. This qnestlon is snggested
in the brle£s, but Is not before me for deci-
sion.
The jurisdlctioaal qnestfam having been de-
termhied, I will, upon application of counsel,
designate a day for hearing the facts.
(90 N. J. Law. 4ET)
MATERKA v. ERIE B. 00.
(Supreme Court of New Jersey. June 6^
1917.)
fSyllabiM by the Court.)
J. Tbiai. «=s>139(1)— Jury— Wbioht or Tbsti-
HONT.
It is for the jury to say what weight shall
be given to the testimony of a witness having
an opportunity to hear, standing at or near the
crossing where the accident occurred, and wfao
testiiies that he did not hear the blowing of a
whistle or the ringing of a tfeU, in a grade cross-
ing acddent case.
[E:d. Note.— For other cases, see Trial, Cent.
Dig. H 832, 333, 33Sr^41.]
2. Railroads *=>350(1) — Grade Crossiwg
AcciDEUT— Nbgligencz and Conthibutort
Nbguoence— Question for Jurt.
It was not error in this case to refuse to
direct a verdict in favor of the defendant on
the ground there was no proof of negligence
on the part of the defendant or because the de-
cedent was guilty of contributory negligence.
They were both jury questions. Holmes v.
Pennsylvania R. R. Co., 74 N. J. Law, 468, 66
Ati. 412, 12 Ann. Cas. 1031, Weiss v. Central
R. R. Co., 76 N. J. Law, 348, 69 Atl. 1087,
and Howe v. Northern R. R. Co., 78 N. J. Law,
6S3, 76 Atl. 979, distinguished.
[Kd. Note.— For other cases, see Railroads,
Cent, Dig. § 1152.]
Appeal from Circuit Court, Hudson County.
Action by Mary Materka, administratrix,
etc., against the Erie Railroad Comx>any.
Judgment for plaintiff, and defendant ap-
peals. Affirmed.
Argued November term, 1916, before
TREINCHARD and BLACK, JJ.
Collins ft Corbin and George S. Hobart, all
of Jersey City, for appellant. Alexander
Simpson, of Jersey City, for respondent.
BLACK, J. This action was brought by
the plaintiff, as administratrix of Ferdinand
Materka, to recover damages for the benefit
of his widow and next of kin, by reason of
his death, on September 6, 1912, by being
■truck by an east-bound express train, at
tbe Park Avenue grade crossing, in the bor-
ough of E2ast Rutherford and Rutherford,
B«rgen county, «iiile he was crossing the
tracks on foot At that crossing there were
four tracks, safety gates, and a watchman.
A rule to show cause was allowed, reserving
objections and exceptions noted at the trial.
The verdict was reduced to the sum of $4,-
000. The trial court refused to set aside the
verdict on the ground that it was against the
weight of evidence. The points argued by
the appellant for a reversal of the judgment
are: First, there was no proof of negligence
on the part of the defendant ; second, a ver-
dict should have been directed for the defend-
ant because of contributory negligence of the
decedent, Ferdinand Materka ; third, error in
the charge of the trial judge, and In the refus-
al to charg^e as requested, but tliis latter point
involves the same points as are in the first
two, except as hereinafter noted. This is the
second trial of the case. The judgment re-
covered in the first trial was reversed by the
Supreme Court for trial errors. The judg-
ment of the Supreme Court was affirmed by
the Oonrt of Errors and Appeals. In the re-
port of the case the facts are quite fully and
satisfactorily stated. Materka v. Erie R. R.
Co., 88 N. J. Law, 372, 95 AU. 612.
[1,2] The crux of the case la whether
there was evidence from which the jury
might find that the decedent attempted to
make the crossing while the safety gates
were up and without receiving any warning
from the flagman; that the train which
struck the decedent approached the cross-
ing without giving the statutory signals of
ringing a bell or sounding a steam whistle.
The record cdiows the following testimony:
David Harris, a witness, testified:
"Q. Were the gates up when you crossed over?
A. Ye. • • • I crossed into East Ruth-
erford, and I saw this gentleman get oft this trol-
ley car and crosa the railroad tracks. Q. Were
the gates up when he crossed? A. The gates
were up on one — ^yes. Q. On your side? A.
The side I crossed the gate was up on, yes. Q.
That is the side he entered the tracks from?
A. That is the side he entered the tracks on.
Q. When he came from the trolley car and went
on the tracks the gates were up, I understand?
A. That is right, sir. Q. Aft«r he got on the
tracks what occurred? A. Why, that gate on
the Rutherford side went down. Q. Yes? A.
And the gate on the East Rutherford side was
up. Q. Yes? A. And I passed a remark. Q.
You cannot tell what you said, just what you
saw. You saw this? A. I saw this man cross
the tracks, and there was a train coming down
the track, and I said to myself, 'I don't think
he will get across,' and with that I saw the
man hit. • * • Q. Did you hear any whistle
or bell up to the time you saw him hit? A. I
did not, sir."
On cross-examination:
"Q. Ton did not know it was coming? A. No,
sir. Q. You were not listening for it? A. No,
sir. Q. Not pa. " _ .
A. No, sir. Q. I understand you to say, how-
Not paying any attention to it at all?
ever, that you did see it coming; is that rij^ht.
you did see the train coming before it struck
Mr. Materka? A. Yes. (Witness marks on a
photograph, Exhibit F-6, where he was stand-
ing at that time.)"
Redirect:
"Q. Now Mr. Hobart asked you if jrpu were
listening fo^ the express train. You did not
know it was coming until you saw it, did you?
A. No, sir. Q. And from the time you started
across the crossing up to and until the time you
saw the express train had you heard any whistle
or bell of any kind? A. No, sir."
Genevieve Ruth Saxly a witness standing
at the crossing at the time of the accident,
did not hear any whistle before the decedent
was struck. She said she was not listening
for whistles.
Under the rule laid down in the cases, in
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101 ATLAJITIG BEFOR.TBB
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the CSourt of Errora and Appeals of tbis state,
such as Danskin r. Pennsylvania R. B. Co.,
83 N. J. Law, 522, 526, 83 Atl. 1006, Horandt
V. Central R. B. Co., 81 N. J. Lew, 490, 83
AtL 511, Watbel T. West Jersey, etc., B. R.
Co., 87 N. J. Law, 573, 94 AtL 951, and Mc-
Lean T. Krle R. B. Co., 69 N. J. Law, 57, 60,
54 Ati. 238, affirmed 70 N. J, Law, 337, 67
Atl. 1132, this evidenne was for the Jury, it
made a Jury question. The point cannot be
removed from the domain of the Jury.
The cases of Holmes v. Pennsylvania B.
B., 74 N. J. Law, 469, 66 Atl. 412, 12 Ann.
Oas. 1031, Weiss v. Central B. B. Co., 76
N. J. Law, 348, 69 AtL 1087, and Howe v.
Northern B. B. Co., 78 N. J. Law, 683, 76 Atl.
979, distinguished. So contributory negli-
gence of the decedent was also a Jury ques-
tion under sadi cases as Brown v. EMe B. B.
Co., 87 N. J. Law, 487, 91 Aa 1023, and
Femettl v. West Jersey, etc., B. B. Co., 87 M.
J. Law, 268, 93 AU. 578.
This disposes of the case, except It Is fur-
ther urged that there was error in the re-
fusal of the trial court to charge each of
two specific requests in reference to the stat-
utory signals and the operation of the cross-
ing gates; each request covers separate
charges of negligence. The Judgment must
be reversed, so it is argued, because the trial
judge permitted the Jury to base a verdict
upon either ground, notwithstanding the spe-
cific requests submitted by the defendant
with respect to each allegation of negligence.
The court in the charge to the Jury had
covered each ground fully, accurately, and
clearly. The requests refused were, In effect,
to take the case from the Jury; hence this
was not error, in view of the cases above
cited.
The Judgment of the Hudson circuit court
is affirmed, with costs.
(266 Pa. 608)
WEIL V. MARQUIS.
(Supreme Court of Pennsylvania. Feb. 26,
1917.)
1. EXECTJTOKS AWD Administbators «=>426—
."'ETTiNO Aside Acts of Decedent— Bene-
fit OF Creditors.
An executor or administrator may bring an
action to set aside the fraudulent transactions of
the deceased for the benefit of creditors, whose
trustee he is.
rEd. Note. — For other cases, see Executors and
Administrators, Cent Dig. $S ^^^, 1665.]
2. Executors and Administrators ®=»426—
Death of Transferor — Administrator's
Action for Benefit of Creditors.
A tronsfer of property in fraud of creditors
is a nullity, and, after the transferor's death, an
action is maintainable by his administrator as
trustee to recover so much of the property trans-
ferred as may be needed to pay just claims of
creditors.
[Ed. Note.— For other cases, see Executors and
.'V'iministrators, Cent Dig. §§ 1663, 16C5.]
3. Insurance «s>586—BKMEnciABiXB— Vest-
ed Interest.
Where the insured took out life insurance
policies payable to his wife and did not exercise
his right to change his beneficiary during his life-
time, the widow's interest in the policies on bis
death became a vested interest
[HM. Note.— For other cases, see Insurance,
Cent Dig. S 1470.]
4. Insurance «=»590— Beneficiary— Liabili-
ty OF FuKD foe Debts.
Act April 15, 1868 (P. L. 103), providing
that Insurance money payable to the wife and
children of an assured shall be free from the
claim of creditors, governed where an intestate
who bad taken out life insurance policies pay-
able to his wife and died without having ezep-
cised the right to change the beneficiary, and
where the widow collected the insurance money
amounting to less than his debts, so that she
was entiUed to hold the proceeds as against the
insured's administratrix sning for money had
and received: Act May 1, 1OT6 (P. L. 53), Act
June 1, 1011 (P. L. 581), and Act May 5, 1915
(P. L. 253), relating to other forms of insur-
ance and to beneficiaries, not applying.
[Ed. Note.— For other cases, see Insurance,
Cent Dig. U 1479, 1482, 1485.]
Appeal from Court of Common Pleas, Phil-
adelphia County.
Assumpsit for money had and received by
Nita M. Weil, administratrix of the estate of
Abraham Marquis, deceased, against Jeanette
A. Marquis. From an order discharging a
rule for Judgment for want of a sufficient
affidavit of defense, plaintiff appeals. Affirm-
ed.
The facts' appear In the following opinion
by Audenrled, P. J., in the court below:
Abraham Marquis died August 14, 1914, intes-
tate and insolvent lie had taken out sundry
policies of insurance upon his life, each of whidi
was made payable to the defendant, his wife,
subject however, to the provision that he might
change the beneficiary thereunder. He died with-
out having exercised that right, and his widow
collected the money payable on these poUdes,
which amounted to much less than his debts.
Letters of administration upon the e.state of
Marquis have been granted to tlie plaintiff, who
has brought this action against his widow to re-
cover what tho latter received from the insur-
ance companies.
Upon these facts, which are not denied by the
defendant, the plaintiff asks judgment for either
tlie amount of the proceeds collected on the poli-
cies or the amount of their surrender value im-
mediately before the death of the insured ; both
amounts being ascertainable from the affidavit of
defense.
[1,2] As to the first question discussed by
counsel, we have no doubt While an executor
or administrator, as the mere personal repre-
sentative of a decedent, can take no step to set
aside for the benefit of heirs, next of kin, lega-
tees, or devisees, the fraudulent transactions of
the deceased, his right to do so for the benefit
of the creditors, whose trustee he is, has long
been recognized in tbis state. Chester County
Trust Co. V. Pugh, 241 Pa. 124, 88 Atl. 319. 50
I... B. A. (N. S.) 320, Ann. Cas. 1915B, 211.
A transfer of property in fraud of creditors is
a nullity as against the interests attempted to
be defrauded^ and, after the death of the trans-
feror, an acti(m is maintainable by his admin-
istrator, as their trustee for the recovery of as
much of the property so transferred as may be
needed for the payment of their just claims.
Buchler v. Gloninger, 2 Watts, 226; Stewart v.
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WEIL ▼. MARQUIS
71
Kewney, 6 Watts, 483, 81 Am. Dec. 4SZ. WbUe
the atatement of claim doea not allege actual
frand in the dealings of the defendant with her
husband in tespect to the policies of insnranc*
procured b; the latter upon his life, it is argued
that the facts above mentioned make oat a case
of constructive fraad. We think that, if this
contention can be sustained, the right of the
plaintiff to a recovery against the defendant Is
dear.
Several acts of assembly have been referred to
by counsel as bearing on the matter before the
coart, and our next inquiry, therefore, is wheth-
er these have any application to the case.
The most recent legislation on the subject of
life insurance policies such as those referred to
in the plaintiff's statement is the Act of May
5, 1915, P. L. 253. By its terms, this statuts
relates to policies of life iaaurance "which have
heretofore or which shall be hereafter taken out
for the benefit of, or assigned to, the wife or
children, or any other relative dependent upon"
the person whose life is insured. Grammatical-
ly, the use of the perfect tense of the verb ia the
clause "which have heretofore (been) taken out"
seems to imply that the policies therein referred
to were existing policies that had not, when the
act became effective, matured and been paid.
If this clause were construed to embrace all poli-
cies that bad been issued prior to the passage of
the act, thus including those with respect to
whose proceeds rights had already vested, the
act, to that extent, would violate both section
17 of article 1 of the CSonstitution of Pennsyl-
vania and clause 1 of section 10, art. 1, of the
Constitution of the United States, since it would
impair the obligation of contract by depriving
creiditors of their remedy, an impediment, in the
shape of an exemption which did not exist when
their debts were contracted, being placed in the
w^ay of collecting them. Penrose v. Erie Canal
Co., 56 Pa. 46; Edwards v. Kearzey, 96 U. S.
595, 24 L. Ed. 793; Kener v. Le Grange Mills,
231 U. S. 215, 34 Sup. Ct. 83. 58 L. Ed. 189.
We are of opinion therefore, that this act does
not affect the case before us.
Nor does section 25 of the Act of May 1, 1876
(P. L. 60) apply. The provisions of that sec^
ticm are expressly confined to policies issued by
companies incorporated under tlie act of which
it forma a part. It does not appear, and the
court cannot assume, that the Insurance compa-
nies that issued the policies referred to in this
case were so incorporated.
Section 27 of the Act of June 1, 1911, P. L.
•581, provides as follows: "A policy of insurance
issued by any company, heretofore or hereafter
incorporated, on the life of any person, expressed
to be for the benefit of any married woman,
whether procured by herself, her husband, or
any other person, shall inure to her separate use
and benefit and that of her children, independ-
ently of her husband or his creditors, or the pei^
son effecting the same or his creditors. If the
premium is paid by any person with intent to de-
fraud his creditors, an amount equal to the pre-
mium so paid, with interest thereon, shall inure
to their benefit." Unless this enactment is held
to be retrospective in its operation, it does not
apply to the policies involved in this case. The
last of these to be issued was taken out more
than nine months before it became a law. But
the act is not, in this respect, retroactive. The
use of the present tense of the verb in the con-
ditional part of the second sentence of the sec-
tion quoted plainly indicates that no reference to
policies previously issued is intended; and, if
its language were otherwise, no effect could be
given to it, so far as concerns such policies, for
the saue constitutional reasons that are referred
to above in discussing the Act of May 5, 1915.
Moreover, even if it was intended to change the
law as to the rights of creditors in respect to
policies of life insurance theretofore issued, no-
tice of such an intention is wholly lackiug in the
title of the act; Bad the attempt to make such
a change was therefore futile. Section 3, art. 3,
Constitution of Peonsylvama. When the subject
expressed in the title of an act is not broad
enough to cover all its provisions, such parts of
the act as are not within the purview of the ti-
Ue are void. Hatfield v. Com., 120 Pa. 895. 14
Atl. 151 ; Potter County Water Ca v. Austin
Borough, 206 Pa. 297, 65 AtL 991.
So far as our examination of the acts of as-
sembly goes, the only legislation that bears upon
the question involved in these rules is section 1
of the Act of April 15, 1868 (P. L.. 103). This
reads as follows: "All policies of life insurance
or annuities upon the life of any person which
may hereafter mature, and which have been or
shall be taken out for the benefit of, or bona
fide assigned to the wife or children or any
relative dependent upon such pereon, shall be
vested in such wife or children or other relative,
full and clear of all claims of the creditors of
such person."
It is conceded by the plaintiff that, if the pol-
icies in question were within the scope of this
act, judgment must be^entered in favor of the
defendant. It is contended, however, that they
do not fall within either of the two classes of
policies which the statute was intended to pro-
tect from the creditors of the person who has
taken them out and paid their premiums.
From the affidavit of defense it is impossible
to determine how the policies whose proceeds
are in dispute were originally issued. All that
appears is that the defendant was, prior to the
death of her husband, the beneficiary thereun-
der, and that he had the right to appoint anoth-
er as beneficiary in her place.
It is argued on behalf of the plaintiff that, if
the policies when originally issued were made
payable to the defendant subject to the condi-
tion that her husband should not designate some
other person as payee of their proceeds, they
were taken out by hira for his own benefit and
not for here; and that consequently the case
docs not fall within the first of the two cate-
gories embraced by the act. It is further ar-
gued that, if the policies were issued in the
name of the insured, they are not within the sec-
oud class to which the act refers, because the
'Wife took no interest in them uuder the subse-
quent assignment thereof to her ; the reserva-
tion to the insured of the right to change the
beneficiary securing full control of the policies
to him and leaving him, therefore, dBeir real
owner.
Although the policy of the law, even where
the rights of creditors may be adversely affected,
favors the wife to whom her husband has at-
tempted to secure the benefit of insurance upon
his life (Kulp v. March. 181 Pa. 627, 37 Atl.
913, 59 Am. St. Rep. 687), the argument of the
plaintiff thus summarized is of great weight,
and, if the creditors had attempted to reach
the policies during the lifetime of the insured,
we can see no reason why they should not have
been successful (In re Herr [No. 2 D. C] 182
Fed. 716; In re Jamison Bros. & Co. [D. C]
222 Fed. 92; In re Shoemaker [D. O.] 225 Fed.
329).
[3, 4] Nevertheless, the facts presented by this
case differ in a very important point from those
involved in the bankruptcy cases to which refer-
ence has been made. Here the insured is no
longer living. He had, it is true, reserved to
himself under his insurance contracts the option
of letting them inure to the benefit of his wife
or appointing some other beneficiary in her
stead. This he might have exercised whenever
he saw fit during his life, but it ended at the
very instant of his death. It did not survive
him. See McDonald, ISx'x, v. Columbian Na-
tional Life Insurance Co., 253 Pa. 239, 97 AU.
1088, U R. A. 1910F, 1244. The moment he
bt'eathed his last, the happening of the condition
subsequent whicn might have divested the de-
fendant's rights in the policies became impos-
sible. If up to that time her interest in the
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101 ATIAMTIO REPOaTBB
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polidea amounted to notbinc more tban a bare
expectancy, that expectancy them ripened, and
ber interest in the policies and their proceeds
immediately became a vested one.
Thus the air was cleared; and the position
of the creditors became forthwith what it would
have been if, when the p<^ciea were originally
issued or subsequently assigned to ber, no right
to change their beneficiary bad been reserved
by the insured. Setting aside the question of
fraud, any right that the creditors of Marquis
or their representative had to object to the stat-
ute as a bar to the appropriation of the policies
of insurance on his life payable to his wife to
the discbarge of their claims against him rested
solely on the ground that he still held a control
over them equivalent to ownership. That foun-
dation has slipped away. As the case now
stands, the disposition of the proceeds of the pol-
icies is governed by the Act of April 15, 1868.
If the defendant's rights as beneficiary re-
sulted from the assignment of the policies to her
by her husband, it would, of course, be poegible
to attack them, under the Act of 13 £}liz. C. S.,
on the ground of fraud. The Act of 1868 pro-
tects such assignments only when bona fide.
Although the assignment in this case, if there
was an assignment, was made by an insolvent
to his vrife, with a reservation of power to con-
trol the disposition of the policies as he pleased,
the court cannot declare the transaction, how-
ever suspicious it may be, fraudulent per se.
The statement of claim raises no question of
fraud in fact; but, if fraud were alleged, the
question of the good faith of the defendant and
ber husband would necessarily take the case to
the jury, to whose province such questions pecu-
liarly appertain. Sebring v. Brickley, 7 Pa,
Super. Ct. 198.
Argued before BROWN, 0. J., and STEW-
ART, MOSCHZISKEB, FRAZEE, and VfAIr
UNO, JJ.
Morris Wolf and Horace Stem, both of
Philadelphia, for appellant. Hampton L. Car-
son and Joseph Carson, both of Philadelphia,
for appellee.
PER CURIAM. This appeal is dismissed
on the opinion of the learned president Judge
of the court below discharging the rules for
Judgment for want of a sufficient affidavit
of defense.
(25S P>. SiO)
COMMONWEALTH T. STAUSH.
(Supreme Court of Pennsylvania. Feb. 26,
1917.)
1. Cbimiistai, Law <g=»980(2) — Plea of
Guilty— Sentence— Statute.
Act March 31, 1860 (P. L. 402) § 74, pro-
viding that, where a defendant pleads guilty
to an indictment for murder, the court shaU
proceed by examination of witnesses to determine
the degree of the crime, must be strictiy con-
strued, and thereunder the examination of wit-
nesses by the court means the seeing and heai^
ing of the witnesses, and a mere reading of their
testimony by a judge or judges who did not see
or hear them is not a compliance with the act
[Ed. Note. — For other cases, see Criminal
Law, Cent. Dig. IS 2494, 2495.]
2. Cbiminai, Iaaw <S=» 980(2) —Plea of
GurLTT—SENTENCE— Statute.
Under such provision, every member of a
court passing upon the degree of guilt must
see and hear the witnesBPs upon whose testimony
the degree of homicide is to to be determined,
and where three of the five judges heard the
testimony and thereafter the president judge
who was not present during the examination of
witnesses read the evidence, and joined in the
deliberations, and wrote the court's opinion
fixing the crime as murder in the first degree
the judgment would be reversed, and a proceden-
do awarded with leave to defendant to renew in
the court below a motion to withdraw his plea
of guilty.
[Ed. Note. — For other cases, see Criminal
Law, Ont Dig. |i 2494, 2495.]
Appeal from Ck>urt of Oyer and Terminer,
Luzerne Ciounty.
John Staush was convicted of murder in
the first degree, and he appeals. Reversed,
and procedendo awarded with leave to de-
fendant to renew in court below his motion
for leave to withdraw his plea of guilty.
Argued before BROWN, C. J., and MES-
TREZAT, STEWART, MOSCHZISKER, and
WALLING, JJ,
M. J. Torllnski and George Howorth, both
of Wllkes-Barre, for appellant. Frank P.
Slattery, Dlst. Atty. of Luzerne County, and
Edwin Shortz, Jr., Asst. Dlst Atty., both of
Wllkes-Barre, for the (Tommonwealth.
BROWN, 0. J. [1] John Staush, the ap-
pellant, entered a plea of guilty to an in-
dictment charging him with murder, and it
thereupon became the duty of the court be-
low, under section 74 of the act of March
31, 1860 (P. Lw 402), to "proceed, by examina-
tion of witnesses, to determine the degree
of the crime, and to give sentence accord-
ingly." Three of the five Judges of that
court m^ to perform the duty Imposed up-
on it, and witnesses were examined before
them. At the examination the common-
wealth was represented by the district attor-
ney, and the prisoner, with his counsel, was
present. The testimony was taken down by
the court stenographer, whose transcript of
the same was duly approved by one of the
Judges and ordered to be filed. After the
hearing, and before the three Judges had
reached any conclusion as to tlie degree of
the prisoner's guilt, they asked the president
Judge of the court — who had not been pres-
ent at the examination of the witnesses—
to Join them in their consideration of the
testimony taken, for the purpose of fixing
the degree of the crime. After reading the
evidence, he took part In their deliberation,
and found that the prisoner was guilty of
murder of the first degree. Subsequently
he wrote the opinion of the court, fixing the
degree of guilt, and pronounced the Judg-
ment of death. The real error of which the
appellant complains — and the only one up-
on which we need pass — Is the action of the
court below in having its president Judge
consult with his three colleagues over a
most solemn question, involving life, without
hds having seen or heard the witnesses up-
on whose testimony it was to be determined.
A tribunal, specially designated by the
Legislature, fixes the degree of guilt, xipon
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WOOD T. WILUAM KANE MFG. CO.
78
ccmvlctlon by confession, <mi an indictment
charging mnrder. Such a case is no longer
for a Jory, wbose province it is to fix tlie de-
gree of bmnlcide in every case where the
Bccnsed goes to trial on his plea ol not guil-
ty. The Legislature might have provided
that, on a plea of guilty, a Jury should beer
the testimony relating to the crime for the
sole purpose of fixing the degree of guilt;
bat it has not done so. It has committed
that duty to the court having Jurisdiction
of the indictment, and perhaps wisely so, in
view of homan sympatliy to which Jurors
not infrequently yield when called to pass
upon the life or death of a fellow man. To
enable It to discharge tills duty the court
must examine witnesses and hear what they
know and are able to trutlifully tell of the
circumstances attending the admitted feloni-
ous killing. As this statutory provision, re-
lating to a criminal procedure, must be strict-
ly construed, the examination of witnesses
by the court means its seeing and hearing
them, not a mere reading of their testimony
by a Judge or Judges who neither saw nor
beard them, and it means that every m&a-
ber of a court passing upon the degree of
gnilt in a homicide case must see and hear
the witnesses upon whose testimony the
question is to be determined. If it had been
for a Jury to determine the degree of the
appellant's guilt, and but eight of the Jurors
had seen and heard the witnesses, a verdict
of the twelve condemning him to death
would be promptly set aside, if the other
fbur Jurors had simply read the testimony
of the witnesses from the stenographer's
notes; and yet this, in efl^ect, la the situa-
tion here presented.
[2] The court below, composed of four of
its five members, found the prisoner guilty
of mnrder of the first degree^ They were
his triers; they deliberated together over
what their verdict should be, and, after so
deliberating, fixed his crime as the highest
known to the law; but one of them had
nether seen nor heard a single witness
called to sustain the commonwealth in ask-
ing for a first degree finding, or the plea of
the prisoner that intoxication had reduced
the degree of his oITense. One of the three
Judges who heard the witnesses limg hes-
itated In reaching his conclusion, and If
the fourth, who heard none of them, had
heard them all, he might also not only have
long hesitated, but actually refused to con-
cur In the finding of first degree murder.
In findings of fact by a Judge, sitting as a
dianodlor, the credibility of witnesses and
the wel^t to be given to their testimony
are for him, and their credibility Is often
sustained or Impaired by their appearance
on the witness stand and by their manner of
testifying. If this is true in dvil cases, it
is snrely true in a proceeding in a criminal
court in which a human life is at stake.
We are not to be understood as saying, or
even intimating, that on the testimony of
the witnesses seen and heard by the three
learned Judges of the court below they would
have erred in adjudging the prisoner guilty
of murder of the first degree; for that is
not the question before us. All that we now
decide is that error was committed in hav-
ing the president Judge take part, under £be
drctunstances stated, in a consultation and
deliberation which resulted in a finding nec-
essarily followed by the Judgement from
which we have this appeaL
Judgment reversed, and procedendo award-
ed, with leave to the prisoner to renew in
the court below his motion for leave to with-
draw his plea of guilty.
"°°°^~ (ST Pa. IS)
WOOD V. WILLIAM KANE MTG. CO., Inc.
(Supremo Court of Pennsylvania. March 6,
1917.)
1. Mabtkb ano SsBVAirr «=390 — Mabikb's
Duty— Extent.
The mere relation of master and servant
does not imply an obligation on the master to
take more care of the servant tlian he may rea-
sonably be expected to take of himself.
[Ed. Note. — For other cases, see Master and
Servant, Cent. Dig. § 139.]
2. Master and Sekvant «=s>265(12)— Neom-
QENCB— El(PI.OTI(KNT OF SEBVANTS.
The presumption is that an employer has
exercised proper care in the selection of its em-
ployes, and one charging negligence in the em-
ployment of men must show it by proper evi-
dence.
[Ed. Note. — For other cases, see Master and
Servant, Cent Dig. H 891, 906.]
3. Masteb and Sebvant ®=9l60(6) — AonoN
FOR Injubt—Nequobhcb— Evidence.
Where plaintiff in charge of rivetuig boilers
was suppUed by his employer with helpers, and
where one of the helpers, not shown to be in-
competent, and who was not instructed by plain-
tiff as to his duties, accidentally let go of the
base of a boiler so that it fell upon plaintiff,
there was no negligence on the part of defend-
ant, and the court should have directed a verdict
for it
[Ed. Note.— For other cases, see Master and
Servant, Cent Dig. U 302, 307.]
Appeal from Court of Common Pleas, Phil-
adelphia County.
Trespass for damages tor personal injury
by Thomas Wood against the William BCaue
Manufacturing Company, Incorporated. Ver-
dict for plalntiflT for $2,000 and Judgment
thereon, and defendant appeals. Reversed,
and Judgment entered for defendant
Argued before MESTREZAT, POTTER,
STEWART, MOSCHZISKER, and FRA-
ZER, JJ.
Frank P. Pridiard, of Philadelphia, for ap-
pellant John J. McDevltt, Jr., and Samuel
G. Stem, both of Philadelphia, for appellee.
POTTER, J. This was an action of tres-
ixiss to recover damages for personal inju-
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101 ATLANTIC RBPORTBB
(Pa.
rles. Plaintiff, who had the management of
the boiler making shop of the defendant com-
pany, charged his employer with negligence
in falling to provide an experienced helper,
which, as he alleged, resulted in his injuries.
He was supplied with helpers, varying in
number from three to six, who received In-
structions from him. On the day of the acci-
dent, plaintiff was engaged In riveting the
base of an upright boiler. The base was not
a perfect cylinder, but was smaller at the
top than at the bottom. It was about 14
Inches high, and weighed about 250 pounds.
PlalntlfT suspended It by two hoolcs from a
crane, and asked two of the helpers to steady
It while he applied a pneumatic riveter. In
order to secure proper contact it was appar-
ently necessary to tilt the base slightly. The
pneumatic riveter was applied under some
pressure to the side of the base, aAd when It
was withdrawn, one of the helpers let go of
the base, and it slipped from the hooks and
fell, injuring plaintiff's hand. It appears
from the evidence that Gordon, the helper
in question, had been employed in the estab-
lishment about a year, but had never been
called upon to assist in steadying a base of
that particular description. It was, as plain-
tiff said, "something out of the ordinary"
as to shape, and he liad made but five of them
during a period of three years. Plaintiff
gave no instruction to the helper, Gordon, as
to steadying the base while the riveting was
being done. The service required was not
complicated, or difficult to perform. There
is nothing In the evidence to show that the
young man was Incapable. He seems to have
been taken by surprise at the effect upon the
base of the removal of the pressure, and
faQed to hold on steadily. A word of caution
in advance from the plaintiff, who was stand-
ing close by, would, no doubt, have prevented
the accident It cannot justly be charged to
any lack of experience, upon the part of the
helper, in assisting to steady a piece of metal
of that particular size and shape. It may
very well be that, for the performance of
complicated or difficult work involving dan-
ger, an employer would be bound to furnish
not only competent, but experienced, men,
especially for leadership and supervision.
But in the present case, the plaintiff himself
was supervising the work, and the part which
the helper was called upon to perform was of
the simplest possible character. He was
asked to hold but little weight, and was mere-
ly to lay his hand upon the base to help
steady it, while supported by the hooks.
II] If any instruction or warning was need-
ed to aid him in the discharge of this very
simple duty, the necessity for It arose upon
the instant, and the word of caution should
have come from the plaintiff, who was in
immediate charge of the operation. The
mere relation of master and servant can nev-
er imply an obligation upon the part of the
master to take more care of the servant than
he may reasonably be e:tpeeted to take of
himself.
[2, 3] The presumption is that the employer
has exercised proper care in the selection of
employes, and it is incumbent upon one
charging negligence, in the employment of
men, to show it by proper evidence. The
plaintiff here was acquainted with the help-
er, and knew he had been working in the
shop for at least a year. The evidence shows
no suggestion that any complaint as to incom-
petence upon the part of the helper was ever
made by the plaintiff, or any one else. The
fact that he was employed merely as a helper
is in itself an indication that, having prop-
er capacity, he was expected to gain skill in
the work and knowledge of its details, under
the guidance and instruction of more ex-
perienced men, such as plalntifl, with whom
he was associated.
We find nothing in this record to Justify
placing the legal responsibility for the re-
sults of the accident upon the defendant.
The first assignment of error Is sustained,
the judgment is reversed, and is here entered
for defendant.
(257 Pa. M)
MUIiHERN et al. v. PHIIADELPHIA
HOME-MADE BREAD CO.
(Supreme C!ourt of Pennsylvania. March 5,
1917.)
1. MtmiCIPAI, OOBPOBATIONS «=3705(3)— UsK
or Stbeet— Gabk as to Childrkii.
Special caution on the part of driven pf
vehicles is requi/ed for the protection of chil-
dren congreg:ating in the vicinity of a school-
house.
[Ed. Note.— For other cases, see Municipal
Corporations, Cent. Dig. S 1515.]
2. MCNIOIPAI, COBPORATIONS €=706(6)— UsE
OF Streets— Nbqlioenck or Driver or Ve-
HioiJ! — Question fob Juey.
In an action for damages for personal in-
jury to a school child from being ran over by a
wagon, held, on the evidence, that whether the
driver's failure to stop it or turn aside to
avoid the injury was negligence was a qnes-
tion for the jury.
[BM. Note.— For other cases, see Municipal
Corporations, Cent Dig. { 1518.]
Appeal from Court of Common Pleas, Phil-
adelphia County.
Trespass for damages for personal Injuries
by Anna Mulhem, by her father and next
friend, WiUiam J. Mulhem, and by WilUam
J. Mulhem in his own right against the
Philadelphia Home-Made Bread Cktmpany.
Verdict for plaintiff Anna Mulhem for $2,-
000, and for plaintiff William J. Mulhem for
$200, and judgment thereon, and defendant
appeals. Affirmed.
Argued before MESTREZAT. POTTER,
STEWART, MOSCHZISKER, and FRA2^
ER, JJ.
William H. Peace, of Philadelphia, for ap-
pellant. John Martin Doyle and Eugene
Raymond, both of Philadelphia, for appel-
lees.
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PaJ
HARDIB ▼. BARRETT
76
POTTEIR, J. These appeals are grounded
npon the refusal of the conrt below to give
binding Instructions In fiivor of the defend-
ant, or to enter Judgment non obstante vere-
dicto. It appears from the testimony that
abont noon on February 4, 1909, some school
children just released from, school were
walking and sliding upon the ley sidewalk
on the south side of Tasker street near Eight-
eenth. Anna Mulhem, a child some ten
years of age, fell or was pushed over the
curb Into the edge of the driveway of the
street as a wagon driven by an employ^ of
defendant was approaching, the right-band
wheels running near the curb. The horse
was turned somewhat aside, but the front
wheel of the wagon ran over the little girl's
leg and broke it The question for determi-
nation was whether the driver, by the exer-
cise of proper care, should have seen the
child after It fell and was lying partly in
the street ahead of him in time to stop his
wagon, or torn it aside to avoid the accident,
and whether his failure to do so was negli-
gence.
A bystander testified that he saw the child
lying partly in the gutter when the wagon
was some 30 feet distant, and he said that
the driver was not then looking ahead, but
was at the moment looking backward into
the body of his wagon. The Jury may well
have found that the proximity of a number
of children upon the sidewalk at the side of
the street upon which he was driving and
the well-known tendency of children to make
sudden and heedless dashes should have put
the driver upon his guard at that particular
place, at least to the extent of keeping bis
horse well in hand.
[1] It is common knowledge that special
caution is required for the protection of chil-
dren who congregate in the vicinity of a
schooUionse. The plalntifiF Anna Mulhem
testified that after she had fallen down and
was lying partly in the gutter she saw the
wagon coming along the street some 30 to 60
feet away from her. If this was the fact,
the driver could have stopped his wagon or
tamed it aside before reaching her, if he
was moving at a proper rate of speed and
bad his horse under proper control.
[2] On the other hand, the evidence upon
the part of defendant tended to show that
the child came so suddenly and unexpectedly
from the sidewalk Into the line of travel In
the street that the accident was unavoidable.
If this was the case, defendant should not
have been held responsible.
Coimsel for appellant has contended with
great earnestness that the trial Judge should
have held as matter of law that the evidence
did not Justify an inference of negligence
npon the part of the driver. But we are un-
able to agree with his contention tn this re-
spect. As we read the evidence, the question
was purely one of twA upon conflicting state- i
menta by the witnesses. If the Jury accept-
ed as credible the evidence offered by the
plaintiff, they were Justified in inferring neg-
ligence ui)on the part of the driver. Bad
they accepted as accurate the testimony on
behalf of the defendant, they must have
concluded that the driver was not at fault
in any way, and the verdict would have been
for the defendant. We may feel that the
Jury might very properly have reached an-
other conclusion, but the question of fact in
dispute was for them to decide. To the
charge of the court in submitting the case
no exception was taken.
The Judgment is a£Brmed.
(2CT Pa. «)
HARDIE et ux. v. BAHRETT.
(Supreme Court of Pennsylvania. Uarch 6,
1917.)
1. HlOHWATS ®=3l75(l)— HiBED AUTOKOBILB
— Injury — Contbibutoky Neouoence.
When, the dangers arising from the negligent
operation of a hired automobile in which one
is riding as an invited guest are manifest to
a passenger having an adequate opportunity to
control the situation, and he permits himself
without protest to be driven to his injury, he
is fixed with his own negligence which bars a
recovery.
[Ed. Note.— For other cases, see Highways,
Cent. Dig. {§ 461-464.]
2. Highways ®=al75(l) — CotusioN — Con-
TBIBUTOBY NEOLIGENCE.
Where a husband and wife hired an auto-
mobile driven by the owner's chauffeur and
made no effort to have the chauffeur drive at
a proper speed and on the right side of the
street, they would be guilty of contributory negli-
gence barring their recovery for injuries from
a collision.
[Ed. Note.— For other cases, see Highways,
Cent. Dig. iS 461-464.]
3. Highways ©=»175(1)— Pebsonai, Ihjubt—
Neouoence— Pboximate Cause.
In an action by a husband and wife for per-
sonal Injuries when the hired automobile in
which they were riding in New Jersey collided
with defendant's wagon during a time when the
New Jersey law required that it display lights,
the fact that there were no lights on defendant's
wagon, if not the proximate cause of the acci-
dent, even though negligence, would not justify
a recovery.
[Ed. Note.— For other cases, see Highways,
Cent. Dig. {( 461-164.]
Appeal from Court of Common Pleas, Phil-
adelphia County.
Trespass for damages for personal injuries
by James G. Hardie an'd Olive M. Hardie,
his wife, and James G. Hardie against Wil-
liam M. Barrett, as president of the Adams
Express Company, a Joint-stock association
under the laws of New York. Verdict for
defendant and Judgment thereon, and plain-
tiffs appeal. AflSrmed.
Argued before BROWN, C. J., and POT-
TER, MOSCHZISKER, FRAZER, and WAI^
LING, JJ.
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76
101 ATIiANTIC REPORXEB
(Pa.
Sydney Toung, of Fblladelplila, tar appel-
iants. John Lewla Evans and Thomas D&-
Witt Cuyler, both of Phlladelpbla, for ap-
pellee.
MOSCHZISKER, 3. On the evening of
August 22, 1913, James G. Hardle, and Olive
M., his wife, hired an automobile with its
driver, one Louis S. Chester, Jr., to convey
them, with two women guests, from Sea Isle
City, N. J., to a nearby yacht club. On the
way a collision occurred between the car in
which they were riding and a one-horse ex-
press wagon belonging to the defendant com-
pany. Both Mr. Hardle and his wife were
injured ; they sued for Vlamages, and by ex-
press agreement of record their cases were
tried together, the issues Involved were sub-
mitted to the Jury, and in each Instance the
verdict favored the defendant, judgments
were entered accordingly, and the plalntUTs
have appealed.
The testimony on all the Important Issues
was most conflicting; but, when vlewefd In
the light of the verdicts rendered, the fol-
lowing facts can be found th«%from: The
accident happened on a rainy evening, be-
tween 8:30 and 0 o'clock. Mr. Hardle occu-
pied a front seat In the automobile, t>eside
the chauffeur, while Mrs. Hardle, her moth-
er and the other woman were In the tonneao.
The car was equipped with five lights, "two
large acetylene gas lamps on the head, two
on the side, and one rM light In the rear."
The headlights Illuminated the road so that
one In the car "could see 200 feet in front,"
and made the way "bright enough to see dis-
tinctly the curb." The part of the road upon
which the accident happened had a curb on
the west side and a single track trolley line
on the east, with a space of 22 feet between.
The automobile was traveling southward, on
the left-hany, or wrong, side of the road, at
an estimated speed of 40 miles an hour.
The wagcm was traveling northward on the
right-hand, or proper, side of the road, tJie
horse going at "a very slow trot." The driv-
er of the latter vehicle. In an endeavor to
avoid the collision, had his horse "nearly
half way over" the trolley track when the ac-
cident occurred. The nutoraobile struck the
wagon on the near front wheel; both ve-
hicles were badly damaged.
On the foregoing facts, It may be seen
that the chauffeur, and not the 'driver of the
horse and wagon, was the one guilty of the
negligence which caused the accident; but
the plaintiffs complain that the trial judge
committed substantial error by the manner
in which he submitted certain Issues to the
jury. In disposing of these complaints, we
shall first consider together assignments 1
and 2.
In brief, the trial judge Instructed that, if
the automobile was being driven with "man-
ifest improper speed," or U the chauffeur
had his car "manifestly on the wrong place
in the road," and these faults, or either o£
them, contributed to the happening of the ac-
cident, If the plaintiffs made no effort to "get
him to go at a proper rate of speed" or "over
on the right side of the road," they would
be guilty of contributory negligence, but that
they could not be found so guilty unless the
before-mentioned alleged faults on the part
of the chauffeur were "manifest"
In reviewing these instructions. It must
be kept in mind that the plaintiffs did not
endeavor to excuse the fact that the chauf-
feur was on the wrong side of the road by
explaining he was temporarily and justifia-
bly out of the regular track; on the contrary,
they called him as their witness, and each
of them gave testimony to substantiate his
story that, at the time of the accident and
prior thereto, he had been continually driv-
ing on the proper side of the road, at a speed
not exceeding 15 miles an hour, which was
much lowered Immediately before the colli-
don. Both plaintiffs not only stood upon
but reiterated this account of the manner in
which the automobile was alleged to have
been handled ; and, of course, ex necessitate,
it excluded the possibility of a remonstrance
on their part having been made to the chauf-
feur, by eliminating all possible reasons
therefor. Moreover, the plaintiffs' attitude
at trial. In a manner, adopted, or set their
seal of approval upon, the chauffeur's real
conduct, as the jury found it to be.
[1] The rule is well established that, when
p<»slble dangers arising out of the negligent
operation of a hired vehicle or a conveyance
In which one Is riding as an invited guest
are manifest to a passenger who has any ad-
equate opportunity to control the situation,
if he sits by without protest and permits
himself to be driven on to his Injury, this
is negligence which will bar recovery. In
other words, the negligence of the driver ia
not Imputed to the passenger, but the latter
Is fixed with his own negligence when he
joins the former In testing manifest dangers.
For discussion and, in some instances, ap-
plication of this rule, see Township of Cres-
cent V. Anderson. 114 Pa. 643, 8 AtL 379, 00
Am. Rep. 367 ; Dean v. Penna. B. R. Co., 129
Pa. 614, 18 AU. 718, 6 L. R. A. 143, 15 Am.
St Rep. 733; Winner v. Oakland Township,
158 Pa. 405, 27 Att. 1110, 1111; Dryden v.
Penna. R. B. Co., 211 Pa. 620, 61 Atl. 249;
Thompson v. Penna. B. R. Co., 215 Pa. 113,
64 Atl. 323, 7 Ann. Cas. 351; Kunkle v. Lan-
caster County, 219 Pa. 52, 67 AU. 918; Walsh
V. Altoona & Logan Val. Elec. Ry. Ca, 232
Pa. 479, 81 AtL 551 ; Wachsmlth v. Balto. &
Ohio R. R. Co., 233 Pa. 465, 82 AO. 755, Ann.
Cas. 1913B, 679 ; Trumbower v. Lehigh Val-
ley Transit Co., 235 Pa. 397. 84 AtL 403;
Senft V. Western Marj-land Railway Co., 246
Pa. 446, 92 Atl. 553; Dunlap v. Philadel-
phia Rapid Transit Co., 248 Pa. 130, 93 AtL
873.
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KinSHNE ▼. BROWIT
77
(2, 3] Here, the <deftr, string, preponderat-
ing eTidence shows that the chauftenr was
seea by numerous disinterested witnesses,
fiome three or four blocks north from the
point of the accident, driving In a reckless
manner, at an estimated siieed of 40 miles
an hour, on the wrong side of the road, quite
close to the trolley track ; furthermore^ the
aVlmisslons of the plaintiffs show that they
both were famUlar with automobiles and
able to appreciate the possible dangers of
this highly improjier course of conduct. Aa
already Indicated, since the story told by the
plaintiffs, as to the management of the mo-
tor was rejected by the Jury, the position
assumed by tbe former at trial left but one
conclusion i>osslble; 1. e., that they had Join-
ed the chauffeur In testing the dangers of
the situation created by the way in which the
car was in fact being driven. Under the cir-
cnmstances, we see UO error In the instruc-
tions complained of.
At this point it is but fair to say that the
instructions in question were coupleJd with a
correct and fair presentation of the plain-
tiffs' side of the case, and the Jurors were
plainly told that, if they believed the latter's
testimooy, they should render a verdict ac-
cordingly.
One other assignment calls for considera-
tion. There Is an act of assembly in New
Jersey which requires all vehicles to have
lights displayed thereon during specified
hours, covering the time when this accident
happened ; and the defendant admitted there
was no light on its wagon. The trial Judge
directed attention to this state of affairs, and
Instructed the Jurors that. If the absence of
a light "contributed to the accident, If that
• ♦ ♦ prevented the plaintiffs' chauffeur
from seeing the horse and wagon, that may
be considered by you as an act of negligence
which caused the accident; • * • and,
• • ♦ llf • • • there was no negli-
gence on the part of the plaintiffs, the plain-
tiffs would be entitled to your verdict"
nieae instructions were practically the
last word to the Jury, and we tliink them
as ftvorable to appellants as they had a
right to expect Had there been a light
on the wagon, it might have saved the plain-
tiffs from the result of their own negli-
gence In permitting the car occupied by
them to be driven in the manner in which
it was operated on the night of the accident;
but even this Is hardly probable, since the
plaintiffs said the acetylene gaslights on the
front of their automobile enabled them to
see at least 200 feet ahead. On the other
hand, if the absence of a light on the wagon
was not the proximate cause of the accl'dent,
even though an act of negligence on the part
of the defendant, it would not Justify recov-
ery by the plaintiffs (Christner v. Cumber-
land & Elk I.lck Coal Co., 146 Pa. 67, 23 AU.
221); and this In effect is what the trial
Judge said to the Jury.
The , assignments of error are- overruled,
and the Judgments affirmed.
(26T Pa. 37)
KUEHNE v. BROWN.
(Supreme Court of Pennsylvania. March 5,
1917.)
1. MtJWiciPAi, CoRPOBAnoNS <S=s>70e(6)— Op-
kration of automobili — negligence —
Question for Jury.
In an action for injury from the negligent
operation of an automobile, where the evidence
of defendant's failure to blow his horn was only
negative, and there was no positive evidence
that h& gave such warning, the weight of the
negative evidence was for the jury.
[Ed. Note. — ^For other cases, see Municipal
Corporations, Cent. Dig. f 1518.]
2. MuNicrPAL Corporations <8=>706(3)— Op-
EKATioN OF Automobile — I^st — Nkou-
eXNCE.
In action for personal injury to a child
struck by an automobile while m a highway be-
tween crossings, the test of defendant's liability
was whether in the exercise of due care he
should have seen the child in time to- have
avoided injury.
[Ed. Note. — For other cases, see Municipal
Corporations, Cent Dig. { 1515.]
3. MnNiciPAL Corporations <S=>706(e)— Op-
eration OF Autohobile— Personal Injury
—Question foe Jubt.
In such action, held, on the evidence, that
whether defendant was negligent in not seeiag
the child in time to have avoided the Injury was
for the jury.
[Ed. Note. — For other cases, see Municipal
Corporations, Cent Dig. { 1618.]
4. Municipal Corporations i®=9706(6)— Op-
eration or AUTOUOBILE — Neoligenoe —
Question fob Jubt.
In a father's action In his own right for
injury to minor child by defendant's automobile,
conflicting testimony as to its speed and dis-
tance retjuired to come to a stop made a ques-
tion for jury as to defendant's negligence in op-
erating the car.
[Ed. Note.— For other cases, see Municipal
Corporations, Cent Dig. | 1518.]
6. Parent and Child «=s>7(9)— Operation of
Automobile— Injury to Child— Pabhnt's
Contributory Neoliqence.
Where the father of a child, suing jointly
with him for personal injury from defendant's
automobiie, had permitted the child to cross a
highway when the automobile was approaching
only 75 feet away, notwithstanding his state-
ment that he looked in both directions and
saw nothing approaching, he was guilty of con-
tributory negligence barring a recovery in his
own right
[Ed. Note.— For other oases, see Parent and
Child. Cent Dig. § 94.]
Appeal from Court of Common Pleas,
Philadelphia Oount?.
Trespass by Paul Kuehne, Jr., by his fa-
ther and next friend, Paul Kuehne, and by
Paul Kuehne, In his own right, against
George H. Brown, to recover for personal In-
juries to the minor plaintiff. Compulsory
nonsuit entered as to both plaintiffs, which
the court subsequently refused to take off.
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101 ATLA.OT;IC aEPOBTBR
(Pa.
and plaintiffs appeal. AiBrmed as to one
plaintiff, and reversed as to the other.
Argued liefore BROWN, O. J., and MES-
TRBZAT, POTTER, STEWART, and FRA-
ZER, JJ.
W. Horace Hepburn, Jr., of Philadelphia,
for appellant.
FRAZER, J. This is an action by a father
and his minor child to recover for injuries to
the latter sustained by reason of alleged neg-
ligence of defendEint in operating his automo-
bile. A nonsuit was entered by tJie court
below as to both plaintiffs, and from this ac-
tion they have appealed.
At the time of the accident, September 6,
1915, the plaintiff, Paul Kuehne, Jr., was five
years of age. He and his father, the other
plaintiff, were standing on the west side of
Rising Sun Lane, near Comly street, in the
City of Philadelphia, talking with friends.
This is a suburban section of the city, and
Rising Sun Lane is about 60 feet in width,
with trolley tracks on each side of the street,
and a driveway for vehicles in the center ; the
driveway being of sufficient width to permit
three vehicles to stand abreast. The street
Is vrithout sidewalks, but at the place where
plaintiffs were standing is a platform con-
structed of planks, and extending across the
gutter to the car track. The father with
his two children were standing on the plat-
form referred to when one of the occupants
of an automobile, occupied by the child's
mother and others and standing on the op-
posite side of the street from the platform
on which the boy and his father stood, called
to the child, Paul, that there was room for
lilm in the car. The boy immediately started
to cross the street, and was about midway
between the platform and the automobile
when he was struck by defendant's car, com-
ing south at a speed estimated by various
witnesses at from 8 or 10 to 40 miles an hour.
There is no dispute, however, that the horn
was not blown, or other warning given of its
ai^roach. Another car was standing on
the same side of the street as the car in
whidi Mrs. Kuehne was seated, 100 feet
down the road in the direction from which
defendant's automobile approached, and, to
pass this car, defendant was obliged to turn
to the left side of the road. There were
no obstructions in the street and nothing to
prevent defendant from seeing the persons
standing on the platform adjoining the rail-
way tracks, or the boy on the street after
leaving the platform. The distance from
the platform to the point at which the child
was injured was estimated, by the witnesses,
at from 12 to 20 feet. Witnesses also testified
that when the child started to cross the street
defendant's automobile was in the neighbor-
hood of 75 or 100 feet away, and that the
brakes were not applied to the car until with-
in about 6 feet from the child, and that fol-
lowing the collision the automobile skidded
on the gravel road for a distance of more
than 30 feet.
The court below condnded the evidence of
negligence on the part of defendant was in-
sufficient to submit to the Jury, so far as the
rights of the minor were concerned, for the
reason that the accident did not happen at
a street crossing; that the evidence of de-
fendant's failure to give warning of his ap-
proach was negative only; and tliat there
was nothing to impose upon him the duty of
blowing his horn at the particular spot where
the accident happened.
[1-3] In so far as the question of warning
Is concerned, while the evidence of failure
to blow the horn was negative only, there
was no positive evidence that defendant
gave such warning, consequently, the weight
of the negative evidence was for the Jury.
Longenecker v. Penna. R, B. Co., 106 Pa. 328;
Haverstlek v. Penna. R. B. Co., 171 Pa. 101,
32 Atl. 1128. However, to the extent that the
rights of the child are concerned, whether
or not warning was given was not a vital
matter, as there is no question of contribu-
tory negligence on his part, the sole ques-
tion in Ills case being whether defendant,
in the exercise of due care, should have seen
the child In time to avoid the accident The
evidence shows defendant's view of the road,
and of the child on the platform over the
gutter and also in the street, was unob-
structed, making the situation before him
such as to Impose upon him the use of due
care to avoid injuring those who were right-
fully using the highway, even though there
was no crossing at this particular point.
There is evidence frcHn which the Jury might
have found that the child did not suddenly
dart in front of the car at a time too late
for defendant to avoid the accident, but on
the contrary that there was ample oppor-
tunity to stop his car had he been looking
ahead. If approaching at an extreme rate
of speed, as testified to by several witnesses,
and as indicated by the skidding of the ma-
cbine upon endeavoring to stop, it cannot
be said, as matter of law, that defendant
was performing his full duty toward those
who were properly using the highway. As-
suming the car was operated at the mini-
mum rate of speed, testified to by other wit-
nesses, no apparent excuse is shown for de-
fendant not seeing the chUd in time to stop
his car and prevent the accident, in view of
the testimony as to the distance whi<4i he
traveled from the time the child started to
cross from the platform to the autmnoblle,
and the unobstructed condition of the street
Consequently, the question whether he had
notice of the presence of the child in the
road in time to appreciate the danger and
avoid a collision was one for the Jury to
determine, under proper instructions from
the court Tatarewicz v. United Traction
Co., 220 Pa. 560, 60 Atl. 995; Bloom v.
Wbelan, 56 Pa. Super. Ct 277.
[4, S] In so far as the rights of the fftttaer
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P«J
IN KB HimXBS'S BSXATB
7»
are concerned tbe confilctinf testimony as to
the veed of tbe car, together wltb tbe dis-
tance required to oome to a atop, was suffl-
%ient to sobmlt to tbe Jury on tbe qneatlon
of defendant's negligence in operating tbe
car. As to tbe contributory negUjience of
the father, his testimony was that before
permitting tbe child to start across the street
to the automobile in which his wife was
seated he looked in both directions and saw
no car approaching. Considering there was
an unobstmcted view of the street for 300
or 400 yards, with the exception of the pres-
ence of another automobile, which was about
lOO feet distant, and In view of tbe tesd-
mony that defendant's car was approximately
75 feet away when tbe child was permitted
to start across the street, It is useless for
plaintiff to say bo looked and did not see
tbe antomoblle when It mast have been In
plain view at tbe time ; hence his negligence
In permitting a child of such tender years
to cross the street alone is too apparent to
require submission to the Jury. To the ex-
tent, therefore, that the father is concerned,
the nonsuit was proper. Glassey v. Heston-
TiUe, Mantua & Falrmount Pass. Ry. Oo., 67
Pa. 172; Johnson et ux. v. Reading City
Pass. By., 160 Pa. 647, 28 Atl. 1001, 40 Am.
St Rep. 752; Pollack v. Penna. R. R. Oo.
(No. 2) 210 Pa. 634, 80 Atl. 812, 105 Am. St
Rep. 846.
Tbe fourth assignment of error is sus-
tained, the Judgment is reversed, and the
record remitted wltb a new Tenlre.
(2S7 Fa. 13)
In re HUNTER'S ESTATE et al.
(Supreme (Jourt of Pennsylvania. March 5,
1917.)
1. MoBTOAQES <S=»559(3) — Mortgaoee's Rb-
LBA8E OF Title— Moktoaoob's Peesonal
LiABiLrrr.
Where a mortfi^gee has parted with his title
to tbe mortgaged premises, his release of part
thereof without the mortgagor's knowledge or
consent discharges the mortgagor from personal
liability for any loss to the mortgagee from a de-
ficiency In the proceeds in a subsequent sale un-
der foredoBure proceedinc*, as by such release
the mortgagee assumes the risk of the unreleased
part of the property.
[Ed. Note. — For other cases, see Mortgages,
Cent Dig. i 1592.]
2. MoBTOAOKS «=>568(3)— Penal Bond— Lia-
BIUTT.
In an audit of tbe account of a substituted
trustee of an assigned estate, it appeared that
prior to tbe assignment the assignor bad mort-
gaged real estate and had given a penal bond to
further secure the mortgage debt, and that sub-
sequent to the assignment parts of tbe realty
were released from the lien of the mortgage,
Tithoat the mortgagor's knowledge or consent,
and that the mortgaged premises were after-
wards sold for a sum insufficient to pay the
mortgage. Held, that the mortgagor was dis-
charged of any liability on the bond.
fEd. Note. — For other cases, see Mortgages,
Cent Dig. J 1592.]
Appeal from Court of O(nmnon Pleas, Phil-
adelphia.
Henry K. Fox, execntM- of the estate of
Elizabeth M. Lassalle, deceased, appeals from
a decree dismissing exceptions to the report
of Charles 'H. Mathews, auditor, in tbe mat-
ter of tbe estate of James Hunter and John
Hunter, individually, and as copartners. Af-
firmed.
Argued before BROWN, O. J., and POT-
TER, MOSCHZISKEB, FRAZEB, and WAL-
LING, JJ.
F. B. Vogel and Henry K. Fox, both of
Philadelphia, for appellant. George Sterner
and Charles R. Magulre, both of Philadelphia,
for appellees.
WALLING, J. This is an appeal from a
decree of distribution of an assigned estate.
In 1887 John Hunter Individually and tbe
firm of James and John Hunter made a gen-
eral assignment to John Field, for benefit of
creditors. Prior thereto in 1878 said James
Hunter and John Hunter, being tbe owners
of certain lands, comprising about 32 acres,
and situate near Fifty-Fifth street and Lan-
caster avenue, Philadelphia, executed a mort-
gage thereon and an accompanying bond to
Wbl C. Houston, administrator, etc, to se-
cure a loan of $27,000, payable in three years,
with Interest. Some days later John Hunter
conveyed his interest In tbe mortgaged prem-
ises to James Hunter, who thereafter and be-
fore the assignment executed a second mort-
gage upon the same property, by virtue of
which, subsequent to tbe assignment, the
same was sold by the sheriff and the title
thereto, subject to the prior mortgage, be-
came vested in Margaret D. Hunter, who
died in May, 1891, Intestate. And In Decem-
ber of the same year, by partition among
her heirs, su^b title became vested in Wm.
D. Hunter. Tbere then remained unpaid on
the first loan the sum of $10,000. However,
such title so vesting In Wm. D. Hunter did
not Include all the lands embraced in tbe
original mortgage, some having been released
meantime as hereinafter stated. On May 26,
1891, tbe administrator entered Judgment
on the bond accompanying tbe first mortgage;
and on November 18, 1892, he assigned the
bond and mortgage to James M. Connely, the
father-in-law of Wm. D. Hunter, for the coa-
sideration of $10,000.
Between the date of the assignment for
benefit of creditors and the time of tbe trans-
fer of the bond and mortgage to Connely.
the holder of the first mortgage bad released
from the Hen thereof twelve separate pieces
of land; some of which were released for
the nominal consideration of $1 each. And
It does not appear that tbe original mort-
gagors, or their assignee, consented to such
release or bad knowledge thereof. On No-
vember 23, 1894, at tbe Instance of Connely
and on the Judgment entered on tbe bond
sVor oUmf easw ■•• sam* toplo and KSY-NVUBW In all Key-Nnmbertd DlgMta and Indixas
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80
101 ATLAigriO REPORTER
(Pa.
as aforesaid, all of the nnreleased part of the
land Included in the first mortgage was sold
by the sheriff for $2,000, at which sale Con-
nely became the purchaser, and on the same
day conveyed a portion of the premises so
bought by him to James Dnnlap for $15,000.
Two months later Connely assigned the mort-
gage and Judgment entered on the bond to
his son-in-law, Wm. D. Hunter, for the con-
sideration of |1; and the latter same day
reassessed the damages on the Judgment at
$9,281.66. And on February 7, 1895, Con-
nely, also for the consideration of $1, made
a deed to his said son-in-law for the balance
of the land included in the sheriff's sale
"subject to existing incumbrance." On the
5th of the following June, Wm. D. Hunter
sold the land conveyed to him by the said
last-named deed to James B. Johnson for
$12,000, "clear of Incumbrance"; by various
transfers, the first mortgage and judgment
on the accompanying bond became vested In
appellant In 1907. Since that date the judg-
ment has been twice revived, and on each
occasion judgment was entered for want of
an appearance, on two returns of "nihil
habet." The last of these Judgments was
entered February 20, 1914, at which time
the damages were assessed at $22,351.22.
James Hunter died in 1896, John Field In
1904, and John Hunter In 1910. The assignee
filed a partial account in 18S9 and a final ac-
count In 1897, both being duly audited and
confirmed, and no claim being presented on
account of the first mortgage and bond at
either of the audita.
In 1006 Herman H. Wilson was appointed
substituted trustee in place of John Field,
then deceased. And in 1911 the substituted
trustee filed an account showing a balance
In his hands as the proceeds of a private
sale of real estate, formerly the property
of John Hunter. An auditor was appointed
to pass upon exceptions and report distribu-
tion of the balance; and before him appel-
lant presented his claim on the revived judg-
ment. Other claims amounting to $100,976.07
were also presented and proven before the
auditor; and to such other claims the net
fund for distribution, amounting to $1,790.79,
was distributed by the auditor and court
below, to the exclusion of appellant's claim;
and this appeal was taken from the final
decree of distribution of the fund.
[1] We entirely agree with the conclusion
readied by the court below. Where the
mortgagor has parted with his title to the
mortgaged premises, a release of a part there-
of by the mortgagee, wltboat the knowledge
or consent of the mortgagor, will discharge
the latter from personal liability for any
loss to the mortgagee resulting from a de-
ficiency in the proceeds of a subsequent sale
in foreclosure proceedings. Meigs v. Tun-
nicliffe, 214 Pa. 495, 63 Atl. 1010, 112 Am.
St Rep. 769, 6 Ann. Cas. 549. See opinion
by Mr. Justice Stewart. By such release
the mortgagee assumes the risk of the un-
released portion of the property being of
sufilclent value to secure his debt. That he
was not mistaken in this case appears from
the fact that shortly after the sheriff's sale
such unreleased property was resold for more
than double the amount unpaid on the mort-
gage. However, in the absence of fraud or
collusion at the sheriff's sale, the profits
on such resales would not Inure to the ben-
efit of the original mortgagors.
[2] The rights of creditors were fixed by
the assignment; and while the confession of
Judgment thereafter upon the bond would as
against the mortgaged premises relate back
to the recording of the mortgage, it would
not give the obligee in such bond any rights
superior to those of other creditors as to the
balance of the assigned estate. The entry of
such Judgment did not create a lien on land,
aside from the mortgaged premises, which
had previously passed from the mortgagors
by deed of assignment for benefit of credi-
tors. Cowan, Casey & Hutkoff v. Fenna.
Plate Glass Co., 184 Pa. 1, 38 AU. 1075. a%e
act of AprU 2, 1822 (7 Smith's Laws, 551;
Stewart's Purdon, vol. 1, p. 1185), to which
our attention was called at bar, authorizes
the collection of the mortgage debt from the
unreleased part of the premises, and provides
for the protection of the rights of the re-
spective part owners under sndi drcnm-
stances, but makes no reference to the per-
sonal liability of the mortgagor, and Is not
applicable to this case. As In our opinion the
release above stated of parts of the mort-
gaged premises Is a complete answer to ap-
pellant's dalm on the fund for distribution,
it Is not deemed necessary to discuss other
features of the case.
The assignments of error are overruled,
and the decree affirmed at the costs of the
appellant.
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Conn.)
APPEAI< OF SCH£I<LEN
81
m conn. TN)
Appeal ot SOHBJLLEN.
(Snpreme Coort of Ehrron of Oonnecttcnt Jane
14, 1917.)
Municipal Cobpohations ®=»514(7)— Publio
Improvements— AssKssuENTS.
Where the city has constructed a sewer im-
proTement, collected all the assessments there-
for, and made full payment, it cannot raise an
amount in excess of the cost by assessing benefits
to one who has subsequently erected a dwelling
and made connections with the sewer.
[Ed. Note.— For other cases, see Municipal
Corporations, Cent. Dig. { 1211.]
Appeal from Superior Court, New London
County ; Milton A. Shumway, Judge.
In the matter of sewer assessment of the
bwough of Groton. From a Judgment con-
firming an a^essment of benefits for sewer
Improvement, Pierre Lu Schellen, an abutting
landowner, appeals. Reversed and remanded.
The borough of Oroton is empowered by
Its cbarter to lay out and construct a sewer
system, to have supervision and control of
the same, and to assess against persons whose
property is specially benefited thereby such
sums as tbey ought Justly and equitably to
pay therefor to be determined according to
such rule of assessment based upon frontage
and area, either or both, as It may adopt as
being Just and reasonable. Pursuant to this
authority, tbe borough, In 1913 and 1914,
laid out and constructed a sewer system, and
assessed against the several owners of land
abutting on the streets in which It was built
the estimated cost of Its construction. This
assessment was completed in May, 1013. The
appellant, as the owner of a tract of land
located at the comer ot Broad and Bams-
dell streets, was one of tbe persons assessed.
He and all others against whom the assess-
ments were made paid tbe amounts thereof
to the borough. Preparatory to making these
assessments, the borough, acting under the
authority of its charter, adopted a rule for
the assessment ot benefits which provided
that the estimated cost of the work should be
assessed on the property specially benefited
In tbe pr<^>ortioii of four-tenths to frontage
and six-tenths to area ; the area to be calcu-
lated to a line parallel with and not more
than 100 feet distant from tbe street front-
age. The rule provided for a departure from
strict adherence to .the above provisions
where such adherence would lead to injustice
and for a certain frontage exemption in the
case of comer lots. It was provided that
the rate of assessment should be GO cents per
lineal foot of frcmtage, and 7^ mills per
square foot of area benefited. The assess-
ments of 1913 were made in conformity to
this rule. No change in or addition to any
of tbe sewers has been made since their orig-
inal construction In 1913 and 1914.
Sabsequent to May, 1918, the appellant
built a house upon his land which was lo-
cated more than 100 feet from the street
and connected the same with the sewer, and
certain others did likewise. A modification
of the rule of assessment was then made by
the borough so that It was provided that In all
cases where a bouse situated more than 100
feet from tbe street should be connected with
tbe sewer, a further and additional assess-
ment should be made against the owner
on account of the sewer with which connec-
tion was made, such additional assessment
to be made at the rate of 7% mills per square
foot of area upon so much land not thereto-
fore covered by the existing rule as would be
Included within a circle having a radius of
60 feet from the center of the house. Fol-
lowing this modification and pursuant to its
IMTOvisions, an additional assessment was
made against the appellant amounting to
$255.16. From that assessment the present
appeal was taken.
Other facts not pertinent to the opinion
need not be stated.
Jeremiah J. Desmond, of Norwich, and
i Warren B. Burrows, of New London, for
j appellant Arthur T. Keefe, of New London,
for appellee.
PRENTICE, C. J. (after staUng the facts aa,
above). It Is an open question whether the
borough's power to assess t)eneflts on account
of this public improvement was not exhaust-
ed before the attempted assessment appealed
from was made In 1916, even though the actu-
al cost of the work exceeded the estimated
cost which was originally assessed and some
portion of the actual cost remained undis-
tributed over the property specially benefited.
City of Chicago v. People ex rel. Norton, 56
111. 327, 332; Meecb v. City of Buffalo, 29
N. Y. 198, 216. Doubtless authority to make
a snpplemmtal assessment to cover cost not
already assessed may be conferred by stat-
ute; but there appears to be no such grant
of power to the borough of Groton. That
question, however, Is one which we have no
occasion to answer, since It nowhere appears
in this record that the actual cost of tbe
sewer system constructed exceeded Its esti-
mated cost which, pursuant to the rule adopt-
ed by the borough, was assessed on the prop-
erty specdally benefited and by the owners
of that property wholly paid In. In so far as
appears, the borough has been fully compen-
sated for the cost of construction by the prop-
erty owners specially benefited and assessed.
It Is without authority to raise an amount In
excess of tbe cost of a public improvement
through the meditun of an assessment of
benefits, and that for aught that appears Is
what the borough undertook to do when It
made the assessment of 1916 against the ap-
pellant
There Is error; the Judgment Is set aside,
and the cause remanded, with direction tc
vacate the assessment appealed from. The
other Judges concurred.
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82
Ma ATLANTIC EEPORTEa
(Conii.
(91' Conn. 880)
PICKETT ▼. BUIOKOLDT.
<Supreme Court of EJrrors of Connecticut. June
14, 1917.)
1. Insane Peksons €=>92— Action bt Con-
servator.
Action to recover property of an incapable
person would not be defeated because brought
in his conserTator's own name and not in the
ward's name, where the complaint alleged the
conservator brought the action as such conserv-
ator, since he was the proper person to brin^
the acUon, and under Gen. St. 1902, §§ 622, 023,
as to nonjoinder and misjoinder and substi-
tuting plaintiff, the ward's name might be sub-
stituted on motion.
[Ed. Note.— For other cases, see Insane Per-
sons, Cent. Dig. §{ 161, 162.]
2. Insane Persons «=»44 — Action bt Con-
servator—Death OF Incapable Person.
Deatli of an incapable person does not abate
action brought for his benefit by his conserv-
ator.
[Ea. Note.- BH)r other cases, see Insane Per-
sons, Cent. Dig. §§ C9, 70.]
3. Insane Persons ®=»44— Action by Con-
servator-Death OF Incapable Person—
Substitdted Plaintiff— Administrator.
Where conservator of an incapable person
had sued In his own name for benefit of the
ward, on the ward's death his administrator bad
a right to be substituted as plaintiff under Gen.
St 1902, J 62.3, as to substituted plaintiff, and
Survival Act (Pub. Acts 1903, c. 193) i 1.
[Ed. Note.— For other cases, see Insane Per-
sons, Cent. Dig. §§ 69, 70.]
4. Insane Persons «=>44 — Action by Con-
servator— Death of Incapable Person —
Survival of Cause of Action— "Kiout op
Action."
Undor the Survival Act, i 1, providing that
■"no cause or right of action shall be lost or
destroyed by death, etc, survival of actions is
the rule and not the exception, and the presump-
tion is that every cause or right of action sur-
vives until the contrary is made to appear; the
phrase "right of action" including the right to
commence and maintain an action and being
broad enough to include a right to be admitted
to prosecute a pending action either as a co-
plaintiff, or substitnted plaintiff (citing Words
jind Phrases, Ilight of Action).
[Ed. Note.— For other cases, see Insane Per-
sons, Cent. Dig. $i €9, 70.]
5. Insane Persons «=>44— Action bt Con-
servator—Death of Incapable Person-
Substitution OP Parties — Motion to
Erase from Docket.
Under Gen. St. 1902, i 822, providing that
no action shall be defeated oy nonjoinder or mis-
joinder of pai:ties, where administrator of an
incapable person after his death entered to
prosecute nnder Survival Act, § 2, an action
commenced for such person in his lifetime by his
conservator in his own na^e, instead of apply-
ing to be substituted as plaintiff under Gen. St.
1902, S 623, ns to substituted plaintiff, defend-
ant's appropriate remedy was not a motion to
dismiss and erase from the docket, but a motion
to strike from the record tlic entry to prosecute.
[Ed. Note.— For other cases, see Insane Per-
sons, Cent. Dig. §§ 69, 70.]
Appeal from Superior Court, New Haven
County ; Joseidi P. Tuttle, Judge.
Action by Etlvviu S. IHckett, Cionservator,
against George W.. Rulckoldt From order
erasing ease from docket, plaintiff appeals.
Error, and cause remanded, with direction to
restore it to docket.
Leonard M. Daggett and Robert J. Wood-
ruff, both of New Haven, for appellant Phil-
ip Pond and Louis M. Roaenbluth, both of
New Haven, for appellee.
BEACH, J. This action was brought by
the conservator in his own name to recover
real and personal property alleged to have
been transferred without consideration by
the ward to his brother, while under the un-
due influence of the transferee. Before any
answer ,was filed the ward died, and the
Union & New Haven Trust Company, his
administrator, entered to prosecute. Ten
months afterward the defendant filed a sug-
gestion on the record of the termination of
the conservatorship, and moved that the
cause be dismissed and erased from the dock-
et The motion was granted on the ground
that the action was originally Improperly
brought In the name of the conservator, and
not in the name of the ward by the conserva-
tor acting in his behalf; that as the action
never stood in the name of the deceased ward,
the statute authorizing the administrator of
a deceased plaintiff to enter and prosecute
does not avplj ; and that since no motion was
made to substitute one plaintiff for another,
the action was without a plaintiff. The old
rule was that a conservator could not main-
tain an action to collect the ward's debts in
his own name ns conservator. Treat v. Peck,
5 Conn. 280; Hutchlns v. Johnson, 12 Conn.
376, 30 Am. Dec. '622; Rlggs v. Zaleskl, 44
Conn. 120. Even If the rule still prevails,
the consequences of a failure to observe It are
very different now from .what they were
when Biggs v. Zaleskl was decided in 1876.
[1] The conservator was the proper per-
son to bring the action,: and in his complaint
he alleges that 'he brings it as the conserva-
tor of Arthur Rulckoldt. Under sections 62i2
and 628 of the General Statutes, the action
could not have been defeated, in Rulckoldt's
lifetime, because not brought in his name.
Being on tlte face of the complaint beneficial-
ly Interested, his name might have been en-
tered or substituted as a plaintiff, on motion.
In the meantime, the action, even if brought
by the wrong plaintiff, was still pending. As
was said In itowen v. National Life Ass'n, 63
Conn. 460, 476, 27 Atl. 1059, 1062, the Prac-
tice Act has "radically changed the old prac-
tice with reference to joinder, admlsidon and
dropping of the parties to a suit, and the
changes were intentiiwaUy and deliberatelj-
made."
[2] When Rulckoldt died the action did
not abate; nor was the conservator dis-
charged by his ward's death. He still had
tlie estate in his bands and must account
for It to the court of probate. Until he .wus
discharged tlie action was not without u
plaintiff and, subject to possible objection
4=9For other caua s«e same toplo and KEY-NUUBUR tn altKey-Numbered DieasU and ludexa^
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Oonn.)
BLUE RIBBON OARAGK t. BALDWIN
83
wblch the defendant did not make, it remain-
ed i>endliig In court, with the conservator as
the sole nominal plaintiff, until August 7,
1015, when the administrator entered to pros-
ecute. If the administrator then bad a right
to enter, the action remained iu court with
two plaintiffs, until the final account of the
conservator was accepted and he was dis-
charged by the court of probate. The record
does not show when the conservator was dis-
charged, but that fact was not suggested on
the record until Mar, 1916, ten months after
the administrator had entered to prosecute.
[3] We think the administrator had a right
to be substituted as plaintiff under section
623 of the General Statutes. Bulckoldt was
the party for .whose benefit the action was
brought, and his right to be substituted as a
plaintiff in the action was a substantial right
wbldi survived to the administrator.
[4] The broad language of section 1 of the
Survival Act of 1903 is that :
"No cause or right of action shall be lost or de-
stroyed by the death of any person, but shall
survive in favor of or against the executor or
administrator of such deceased person."
Under this statute the survival of actions
is the rule and not the exception, and the
presumption is that every cause or right of
action survives until the contrary is made
to appear by way of exception to the rule.
The phrase "right of action" includes the
right to commence and maintain an action.
Words and Phrases (vol 7) p. 6266. It is
broad enough to include a right to be admit-
ted to prosecute a pending action either as a
coplalatlff, or substituted plaintiff; and un-
der section 623 the administrator had a right
to be substituted as plaintiff in place of the
conservator. Nobody would doubt that the
administrator of a decedent, who ought to
have been made a defendant, but was omitted
through mistake, could be joined as defendant
In an action which survived against the es-
tate, and we see no reason why the admin-
istrator of a decedent who ought to have
been Joined as a plaintiff, but was omitted
through mistake, may not be admitted as a
coplaintlff, or as substituted plaintiff, if nec-
essary. In a pending action which survives In
favor of the estate.
[S] Strictly speaking, the right which sur-
vived to the administrator In this case was
the very same right .which the decedent bad
in bis lifetime; vis. the right to be substitut-
ed as plaintiff under section 623 of the Gen-
eral Statutes. It is therefore true, as the
memorandum of the superior court suggests,
that the administrator ought to have made
ai^licatlon under that statute to be substitut-
ed as plaintiff, instead of entering to prose-
cute under section 2 of the Survival Act.
Nevertheless he succeeded in making himself
a party on the record by entering to prose-
cute, and the defendant's real grievance was
not that the administrator had no right to
come into the action, but that be bad come in
through the wrong door. That being so, the
appropriate remedy was not a motion to dis-
miss and erase from the docket, but a motion
to strike from the record the entry to prose-
cute. Section 622 of the General Statutes
provides that "no action shall be defeated by
the nonjoinder or misjoinder of parties";
and this must Include the lesser proposition
that no action should be defeated because
the right party came into It, or attempted to
come into It, in the wrong way.
There is error, and the cause is remanded,
with directi<m to restore it to the docket.
The other Judges concurred.
(11 Ckmn. <T4)
BZiUB RIBBON OARAGE, Inc.. ▼. BALD-
WIN et al.
(Supreme Court of Errors of Connecticut June
14, 1917.)
1. Biixs AND Notes $=»414— Notice or Dis-
EONOB.
Under Negotiable Instruments Law (Pub.
Laws 1897, c. 74) as well as the former law
merchant, a bolder for collection of negotiable
paper, which has been dishonored, performs his
full duty in respect to notice of its dishonor by
giving such notice in due form and time to the
party from whom he receives it.
[Ed. Note.— For other cases, see Bills and
Notes, Cent Dig. Si 1142, 114&-1155.]
2. Bills and Notes ^=>414 — Notice op Dib-
HON<W.
Under Negotiable Instruments Law, as well
as former law merchant where negotiable pa-
per before presentment has passed through sev-
eral hands, whether of mere holders for collec-
tion or of parties beneficially interested therein,
notice given by each holder in turn to the prior
one from whom, it was received is notice suffi-
ciently given to fix' the liability of all indorsers
included in the chain of notice, each holder for
collection being regarded as a real holder, and
his relation to the party from whom the paper
is received being such that the latter is entitled
to be treated as his immediate principal; and
it is not necessary that notice of dishonor, to
be effective in fixing the liability of indorsers,
should be given by the holder at presentment di-
rectly to the beneficial owner, disregarding all
intervening holders for collection only.
[Ed. Note.— For other cases, see Bills and
Notes, Cent Dig. {g 1142, 1148-1155.]
8. Bills and Notes ^ss.'iSO— Action Aoainst
Indobser— FiNDiNoa of Fact.
In action against indorser of a note which
had been sent to a trust company for collection,
a finding that the trust company had never been
plaintitTs agent for any purpose whatsoever
might be disregarded as a mere conclusion of
law ; the facts showing the trust company to be
a holder for collection and therefore as matter
of law the owner's agent
[Ed. Note.— For other cases, see Bills and
Notes, Cent Dig. H 1911-1913, 1934.]
4. Bills and Notes «=»420— Notice of Dis-
HONOB.
Where the holder of a note, receiving notice
of its dishonor, notified a prior indorser and
the original payee of the dishonor by telephone
and personal visit and oral notification respec-
tively, this was sufficient compliance with the
Negotiable Instruments Law.
[Ed. Note.— For other cases, see Bills and
Notes, Cent Dig. U 1138-1140.]
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84
101 ATLANTIC REPORTER
(Conn.
Appeal from Court of Common Pleas, EWr-
3eld County ; John J. Walsh, Acting Judge.
Action by the Blue Ribbon Garage, Incor-
porated, against R. L. Baldwin and otbers.
From Judgment for plaintiff, the named de-
fendant and others appeal No error.
On February 15, 1915, the plaintiff be-
came the owner of the note In suit in part
payment for the sale to the defendant Bald-
win of an automobile. The note was drawn
by the defendant the State of Maine Lumber
Company, to the order of the defendant At-
water, and was made payable at the Con-
necticut Trust & Safe Deposit Company, of
Uartford. It bore the indorsements of the
five individuals who were made defendants,
Indudiug Atwater and Baldwin, against
whom Judgment was rendered. The pladn-
tiff still owns the note, which remains un-
paid. The date of maturity was March 2,
1916.
February 26, 1916, tie plaintiff deposited it
for collection with the First Bridgeport Na-
tional Bank of Bridgeport. l*at bank for-
warded it in due course of business to tbeir
agents, the State Bank of Albany, for col-
lection. The State Bank of Albany in like
manner forwarded It for collection to Its
agents, the Hartford National Bank of Hart-
ford. On or before the morning of March 2,
1916, the last-named bank delivered it to the
Connecticut Trust & Safe Deposit Company,
the place of payment Payment not having
been made at the close of business upon that
day, it was handed by the discount clerk of
the trust company to its teller, who demand-
ed payment, and, no payment having been
made, wrote across the face of the note:
"Protested for nonpayment Mar. 2, 1915,
Harvey W. Corbin, Notary Public." He then
made a certificate of protest and ten notices
of protest, one addressed to each of the banks,
and each party whose name appeared upon
the note, pinned the certificate to the orig-
inal note and placed the note and certificate
thus attached, together with the ten copies of
the notice of protest, in an envelope and mail-
ed It with its inclosures, Including two-cent
stamps for each notice save one, to the Hart-
ford National Bank. On the following day,
the last-named bank mailed the note, certifi-
cate of protest, and notices, save only the no-
tice to Itself, to the State Bank of Albany.
On March 5th, the First Bridgeport Nation-
al Bank received from that bank in the first
mail the same inclosures less the notice to the
State Bank of Albany. The Bridgeport bank
inintediately thereafter remalled them, less
the notice to it, to the plaintiff, who received
them during the forenoon of the same day.
Upon that day Baldwin was notified by the
plaintiff's treasurer by telephone of the dis-
honor. On the following day, Atwater, who
resided In New Haven, was visited by the
plalntiflTs agent and orally notified. No at-
tempt was made by the plaintiff to notify the
other indorsers.
George E. Beers, of New Haven, and Dan-
iel J. Danaher, of Merlden, for appellants
Baldwin and Atwater. Jolin Smith, of
Bridgeport, for appellee.
PRENTICE, O. J. (after stating the facta
as above). [1,2] The course of conduct of
the notary who made presentment at the note
in suit and of the several banks through
whose hands It passed in the collection pro-
cess conformed strictly, in so far as notice
of dishonor was concerned, to the require-
ments of the law merchant formerly control-
ling and to those of the negotiable Instrument
law now in force. By the overwhelming
weight of authority under the law merchant,
a holder for collection of negotiable paper,
which had been dishonored, performed his full
duty In respect to notice of Its dishonor by
giving such notice in due form and time to
the party from whom he received It Where
the paper before presentment had passed
through several hands, whether they were
those of mere holders for collection or of
parties having a beneficial interest in it the
approved rule was that notice given by each
holder In turn to the prior one from whom
it was received was notice sufficiently given
to fix the liability of all Indorsers Included
in the chain of notice. United States Bank
V. Goddard, 5 Mason, 366, 375, Fed. Cas. No,
917; Eagle Bank v. Hathaway, 5 Mete
(Mass.) 212, 215; Phlpps v. Mlllbury Bank.
8 Mete. (Mass.) 79, 84; Farmers* Bank v.
Vail, 21 N. Y. 485, 487; Seaton v. Scovin,
18 Kan. 433, 438, 21 Am. Rep. 212, note 26
Am. Rep. 779; Wood v. Callaghan, 61 Mich.
402, 411, 28 N. W. 162, 1 Am. St Rep. 597;
Daniel on Negotiable Instruments, 331. Each
holder for collection was regarded as a real
holder and his relation to the party from
whom the paper was received such that the
latter was entitled to be treated as his Im-
mediate principal. Bartlett v. Isbell, SI
Conn. 296, 299, 83 Am. Dec. 146; Phlpps
V. Mlllbury Bank, 8 Mete. (Mass.) T9, 84;
Freeman's Bank v. Perkins, 18 Me. 292, 294;
Howard v. Ives, 1 Hill (N. Y.) 263, 264 ; Ex-
change Bank v. Sutton Bank, 78 Md. 577, 587,
28 Atl. 563, 23 L. R. A. 173.
The Negotiable Instruments Act has not
changed the law in any of these respects.
The defendant's broad contention that no-
tice of dishonor to be effective In fixing the
liability of Indorsers should be given by the
holder at presentment directly to the benefi-
cial owner disregarding-all Intervening hold-
ers for collection only Is without foundation
in the act, and we have so distinctly held.
Gleason v. Thayer, 87 Conn. 248, 250, 87 Atl.
790, Ann. Cas. 1915B, 1069. Such a require-
ment necessitating, as It would, inquiries as
to who was the real owner and what his ad-
dress, and involving embarrassment and com-
plications In accounting as between those
through whose hands the paper passed in the
process of collection, would be fruitful of
such annoyances, difiScultles, and hazards of
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Conn.)
APPEAL 07 OORDANO
85
miscarriage and loss as to make It an onsat-
Isfitctory substitute for the simple, orderly,
and effective method pursued In this case and
by us heretofore approved. The case of East
Haddam Bank v. Scovil, 12 Conn. 303, fur-
nishes a good example of easily possible con-
Bequeaces. The law under consideration in
Oleason v. Thayer was, to be sure, the Ne-
gotiable Instruments Act as it was enacted
In New York; but its provisions of present
pertinence were identical with those of our
own.
The defendant's counsel undertake to es-
cape from the operation of the decision in
that case by an attempt to distinguish be-
tween the two cases upon the ground that
the note in Gleason v. Thayer presumably
was indorsed by the Whaling Bank, to the col-
lection bank in New York, whereas it does not
appear by the record that the note in this
case, when presented for payment, bore any
bank indorsements. It would doubtless be
quite In accordance with ttie fact to assume
that It did, but that is not a matter of con-
trolling importance. The note, as Indorsed
upon its delivery to the Bridgeport Bank,
was transferable by delivery, and the finding
is that It was sent along through the chain
of banks for collection. Each bank received
and transmitted it to its agents for that pur-
pose, and each receiving bank became its
holder for collection with all the rights,
powers, and obligations attached to such
holders. ESast Haddam Bank v. Scovil, 12
Conn. 302, 311.
[3] Counsel for the defendant attach great
Importance to one of the paragraphs in the
finding, and build much of their argument
upon It The paragraph is to the effect that
the Connecticnt Trust & Safe Deposit Com-
pany has never been the plaintiff's agent for
any purpose whatsoever. Tliat finding is
one of law and not of fact The legal char-
acter of tite relation in which tne trust com-
pany stood to the owners of the note is to
be determined as a legal conclusion upon the
facts. The finding, to be sure, does not state
In so many words that the Hartford Nation-
al Bank delivered the note to the trust cmu-
pany for collection for its account, but there
Is no other reasonable Inference from' the
facts found than that It did so. The conduct
of the parties throughout so indicates quite
unmistakably. As a holder for collection is,
as a matter of law, the agent of the owner,
the finding of the court upon this uiatter
must be disregarded as not Justified as a
matter of law by the facts. Gleoson v. Thay-
er, 87 Conn. 248, 250, 87 Atl. 790, Ann. Gas.
1915B, 1069.
[4] The action of the plaintiff in giving
notice to the defendants Baldwin and At-
water, following its receipt in due course
from the Bridgeport Bank, of the notice of
dishonor, complied in all respects with the
K-qulrements of the law, and no complaint of
irregularity in that respect Is made by the de-
fendants.
Certain evidence tending to prove a bank-
ing custom in the matter of giving notices of
dishonor was received against objection that
it was not permissible to show conformity to
a custom at variance with the provisions of
statute. The court has found no such cus-
tom, nor did It decide the caise upon the
strength of <me. Its. decision was based up-
on the provisions of statute and compliance
therewitli.
Two or three objections to the admission
of testimony, offered to show that the Hart
ford National Bank mailed the note, certifi-
cate of protest, and notices to the State Bank
of Albany on March 3, relate to details which,
in view of other testimony, were unimportant
The court was amply Justified in finding that
it did so upon proof that these papers were
received by the Bridgeport Bank by first
mail on the 5th contained In a letter from
the State Bank of Albany addressed to it
There is no error. The other Judges con-
curred.
(tl Conn. TU)
Appeal of OORDANO.
(Supreme Court of Errors of Connecticnt June
14, 1617.)
1. Intoxicatino Liquobs 9=>10&-~Licei7ses
Under Pub. Acts 1915, e. 282, prohibiting
granting of licenses to sell intoxicating liquor
witliin 200 feet of a cliurch, but exempting
transfer applications which are left to the dis-
cretion of the commissioners, the owner of a
licpDse, whether or not he has qualified to sell
under it, may sell and assign it as a piece of
property to another who may make applica-
tion to sell under it as a transferee.
[Ed. Note. — For other cases, see Intoxicating
liquors. Cent Dig. §§ 108-112.]
2. Intoxicatino Liquobs «s>103— Licenses
— Chabacteristics.
Property in a license to sell intoxicating liq-
uor is recogmizcd by law to the fullest extent as
property having a recognized pecuniary value
and the subject of sale, attachment levy, or re-
plevy.
[Ed. Note.— For other cases, see Intoxicating
Liquors, Cent Dig. §§ 108-112.]
3. Intoxicating Liquobs <S=»103 — Licenses
— TH A N SF^RS
Pub. Acta 1916, c. 282, prohibits the grant
ing of licenses for places located within 20i0 feei
of a church, but exempts transfers from the
operation of the statute. Chapter 36 provides
that a license sold upon execution shall for its
unexpired term be as valid in the hands of its
purchasers as in the bands of the original li
censee, provided that before the purchaser may
sell thereunder he shall comply with all the re-
quirements relative to the procuring of an origi-
nal license. A license was sold on execution and
purchased by a brewing company which did not
qualify as a licensee thereunder, but transferred
it to one who made application. Subsequent to
such assignment a church was erected within
200 feet of the saloon. Held that, transfers be-
ing exempt from the operation of the statute,
the assignee might qualify to sell under the li-
cense.
[Ed. Note.— For other cases, see Intoxicating
Liquors, Cent Dig. i§ 108-112.]
«=9For otbor case* sn same topic and KKY-NUMBEB in all Key-Numbered OlgesU and Indexes
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101 ATLANTIC REPORTER
(Oonn.
4. intoxicatimo liquobs «=» 103— licenses
— Fhacd.
The assignee of a liquor license sold upon
execution and purchased by a brewing company
which failed to qualify as a licensee thereunder
is not guilty of fraud in applying for permis-
sion to seil under the license as being in no posi-
tion to claim such rights where Pub. Laws 1915,
c. 282, expressly exempts transfers from the op-
eration of the prohibition against licensing
drinking places within 200 feet of a church.
[Ed. Note. — For other cases, see Intoxicating
Liquors, Gent. Dig. H 108-112.]
5. iNTOXtCATINO LiQTTOBS ^=9108— LICENSES
— Fkaud.
The assignee of a liquor license purchased
by a brewery on execution against the original
holder is not guilty of fraud in applying for per-
mission to sell thereunder because of the fact
that the assignor had not in fact perfected its
assignment to the applicant at the time he ap-
plied for permission to sell ; the facts being
known to the county commissioners.
[Ed. Note.— For other cases, see Intoxicating
Liquors, CJent. Dig. K 108-112.]
Appeal from Superior Court, litchfleld
County ; William L. Bennett, Judge.
Remonstrance by Nathaniel Cordano to the
action of the County Commissioners in grant-
ing the transfer of a liquor license. Affirmed
on reservation to superior court, and re-
monstrant appeals. Affirmed.
In 1916 the county commissioners of Litch-
field county granted to T. J. Sullivan a li-
cense to sell spirituous and Intoxicating liq-
uors at 215 Main street. In Wlnsted, expiring
October 31, 1016. In June, 1910, this license
was sold on execution against Sullivan. The
Yale Brewing Company was the purchaser.
That company did not qualify as a licensee
under the license, but sold the same to one
Darls, who did apply on July 31, 1916, for a
transfer of the license to him.
Subsequent to November, 1915, and the
date of Davis' application, a church had been
built and opened for services within 200 feet
of the saloon. A remonstrance was filed to
Davis' application upon the ground of the
proximity of the church to the saloon. Upon
the hearing before the commissioners no wit-
nesses were produced to establish the un-
sultability of the place, but the facts, as to
its proximity to the church, were agreed
upon as the facts upon which the commis-
sioners' decision was to be rendered. The
claim was made in behalf of the remon-
strance that the application was to be regard-
ed as an original one, and that therefore the
prohibition of the statute against the grant-
ing of a license for a place within 200 feet
from a church edifice was applicable to the
situation, and forbade the transfer of Sul-
livan's license to Davis. This claim was
overruled, and the application granted. From
this action the appellant, who was one of the
remonstrants, appealed.
Davis is a suitable person to receive a li-
cense.
Frank B. Munn, of Wlnsted, for remon-
strating taxpayer. Walter Holcomb, of Tor-
rlngton, for applicant for transfer. John T.
Hubbard, of Litdtfleld, for county commis-
sionera.
PRENTICH, C. J. (after stating the facts
as above). The stipulation of counsel upon
which this reservation was made limits the
questions, whose answers should determine
the Judgment to be rendered by the superior
court under our advice. In substance to two,
as follows: (1) Was the cotinty commission-
ers' action In granting Davis's application for
a transfer to him of Sullivan's license In vio-
lation of the provisions of statute touching
licenses for places located within 200 feet of
a church? and (2) Was Davis's applicatton
a fraudulent one?
Any question that might have been made
In the superior court that the county commis-
sioners erred In their exercise of discretion
in granting the application is waived.
[1] It appears to be conceded by the remon-
strant appellant that, if Davis had received a
transfer from Sullivan, his application to the
commissioners would not have encountered
the church prohibition. Such certainly would
have been the case, since chapter 282 of the
Public Acta of 1915, which embodies that pro-
hibition, specially excepts from Its operation
transfer applications, and leaves the decision
in their case to the discretion of the commis-
sioners, in view of the circumstances of each
particular case.
Davis, however, did not hold an as^gnment
to himself from Sullivan, the licensee. His
right to the license came to him from the
Yale Brewing Company, who had purchased
It upon an execution sale, and tiad never qual-
ified as a licensee under it The remon-
strant's contention is that under such con-
ditions he did not occupy the position of
one who .was enUtied to a transfer of the
license within the meaning of our license
statutes, and therefore could not avail him-
self of the exceptions provided in chapter 282
of the Public Acts of 1915 in cases of trans-
fer. His claim is that the exception made in
that act in favor of transfers of licenses re-
fers'only to such as attend the passing of
the ownership of the license directly from
the licensee to the applicant for a transfer
and without the intervention of any other
person's ownership of the license, and that
all other persons not so deriving title to the
license appear before the county commis-
sioners as original applicants and subject to
the regulations governing such applicants.
In support of this position he points to chap-
ter 148 of the Public Acts of 1915, where it
is provided that any licensee, or in case of
his death his administrator or executor, may,
with the consent of the county commission-
ers, transfer his license. This, he says, is
inclusive of all transfers which the law rec-
4s»ror ot£er cases see sama topic and KET-NUMBER to all Key-Numbered Digests and Indezei
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APPEAL OF CORDANO
87
ognizes as such, and confines the power to
make assignments, which by the approval of
the county commissioners may become trans-
fers, to licensees.
This construction of our statute is exceed-
tni^ly narrow and technical, and does not com-
port with sound reason. It reaches not only
those who, as here, are imrchasers of a license
at an execution sale, but also those who hold
voluntary assignments from the owner of a
license, provided they have not put them-
selves in a position to enji^ge in the liquor
business under its authority. We search In
Tain for a practical reason for the distinction
thus made between licensed and nonlicensed
owners of a license in the matter of their
(»mpecency to make an assiRnment of the
license whidi may be perfected as a transfer
by the action of the county commissioners,
lilgpecially hard is it to find a reasonable basis
for such distinction, since ownership by pur-
chase and assignment does not carry with it
the right to utilize the license in the conduct
of the business. In every case one who ac-
qnires an outstanding license is required to
obtain the approval of the county commls-
fiioners before be can sell under It. As the
llrense authorities have reserved to them the
iwwer to dictate as to .who among assignees
may exercise the franchise by becoming
filers, and are called upon in every case to
<>xercise that power, it is difficult to discover
what abuse can possibly arise from making
assignees of nonllcensed persons transferees
of the license which is not to be anticipated in
the case of assignees of licensed persons. The
public interest is not concerned with the char-
acter and suitability for the conduct of the
liquor business of a seller of a license who
does not prcvosc to operate under it. What
is its vital concern Is the character and sulta-
Mllty of the purchaser who applies for leave
to sell under the license.
[IJ Our law recognizes to the fullest extent
the quality of property in a license. It Is
property having a recognized pecuniary value
and the subject of sale, attachment, levy, or
replevy. Sayers' Appeal, S9 Conn. 315, 317,
»4 AtL 358 ; Quinnlplac Brewing Co. v. Hack-
barth, 74 Conn. 392, 395, 50 AU. 1023. As
PTopertj and the subject of sale, the owner
may prima facie at least sell it- and place the
purdiaser in his position as owner. What Is
there to impose restraint upon this power of
substitution of owners so that only one class
of them, to wit, those who hare guallfled as
licensees under the license, are free to make
the substitution as fully and completely as
the law in other respects permits it to be
made? The statutes expressly Impose none,
and none is to be found by way of Implication
iinles.<« the remonstrant's construction of chap-
ter 148 of the Public Acts of 1915 Is to be
accepted as correct As we already have had
occasion to observe, practical reasons in sup-
port of that construction are not apparent
On the other hand, it is easy to discover rea-
sons and cogent ones in opposition to it We
are of the opinion that the owner of the li-
cense, whether or not he has qoallfled to
sell under it, may seU and assign it as a
piece of property to another who may make
application to sell under it as a transferee.
[3] But the remonstrant Is not driven to
rely np<m the broad proposition Just dis-
cussed. He advances a more narrow one
based upon that portion of chapter 36 of the
Public Acts of 1915, which provides that a
license sold upon execution shall for its
unexpired term be as valid In the hands of
its purchaser as In the hands of the original
licensee, "provided before such purchaser
may avail himself of the benefit of such
license, he shall comply with all the require-
ments of law relative to the procuring of an
original license." His claim is that here,
by implication at least, is a direction that
an execution purchaser, and of a necessity
therefore his assignee, must if he would
avail himself of any beneficial use of the
purchased license, appear before the county
commissioners in all respects as an original
applicant, and be governed by aU the statu-
utory regulations concerning the granting of
licenses to such applicants. As one of these
regulations is the prohibition of the issuance
of a license to sell at a place located within
200 feet of a church edifice, he says that
it follows that an execution purchaser appli-
cant comes within the operation of that pro-
hibition.
He is, of course, correct in his statement
that an assignee of an execution purchaser
can stand in no better position as an ap-
plicant for leave to sell than wotdd his as-
slitnor If he were making such application.
If it be so that the law provides a special
rule for the case of an execution purchaser
so that he Is made to occupy a different and
less advantageous position when he seeks to
utilize his purchase by qualifylhg as a seller
from that occupied by voluntary assignees of
licensed persons, then, without doubt, every
owner under him of the license stands In no
letter position. The controlling question
therefore is: Does our law make execution
purchasers a class apart from all other pur-
chasers, end subject them, when they seek to
avail themselves of their purchases, to dif-
ferent and more stringent regulations than
those to which all other purchasers are sub-
jected?
In answering this question the particular
provision of statute which alone Is relied up-
on as accomplishing that result should be
read in connection with the other provisions
touching the same g«ieral subject, and such
construction, consistent with the language
used, given to It as will make a harmonious
and consistent whole. In arriving at that
construction, the evil sought to be avoided
should be borne in mind.
The evil which our law governing transfers
of license privileges seeks to avoid manifest-
ly Is the sale of spirituous and.iQtoxicatlng'
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88
101 ATLANTIC REPORTER
(Conn.
liquors by persons whose fitness to do so has
not been passed upon and approved by the
licensing authorities. Our policy In that
regard Is clearly indicated by our statutes.
We insist that every would-be seller shall
present his application for leave to sell to the
county commissioners, and that they, after a
formal hearing upon a prescribed notice, pass
upon his fitness to exercise the desired privi-
lege. This requirement extends to every
one whether he be an original applicant or
one desiring to sell as a substitute licensee.
When the applicant seeks to exercise tbe
right which was originally given to another,
a transfer of the license becomes necessary.
That transfer is not accomplished by a pui>
chase and assignment of the license. It Is
accomplished when, and only when, the coun-
ty commissioners have signified their con-
sent to the substitution of licensee. Chapter
148, P. A. 191f5. Our statutes make it
clear that the word "transfer," as used in
them, refers not to the transaction as be-
tween Individuals whereby the property In-
terest passes, bxit to the transfer of the right
to sell which follows the county commis-
sioners' consent. It matters not whether the
license, as representing an inchoate right to
sell, was obtained by a third party through
a voluntary assignment or upon execution
sale. There is no transfer within the mean-
ing of our statutes until the county commis-
sioners have given their consent to the sub-
stitution of parties, and there is in either
case one when that consent is given.
Bearing in mind that fact and also that
chapter 282, the latest In the order of enact-
ment of the license statutes, in unrestricted
language exempts transfers from the opera-
tion of the prohibition against the grant
of licenses for a place located within 200
feet of a church edifice, and also that no
reasons are apparent for the making of a
distinction between purchasers of different
classes, it is reasonably manifest that the
two statutory provisions should be read the
one as prescribing the applicant's course of
action, and the other the county commission-
ers' duty in passing upon his application
when duly presented. By force of chapter
36 the applicant must proceed in the matter
of application in all respects as an original
applicant is required to do. By virtue of
chapter 282 the county commissioners. In
passing upon the application when thus pre-
sented, are to be governed by the regulations
touching transfers.
[4, {] The remonstrant's claim tluit the
plaintiff's application was fraudulent is based
largely upon his assumption of an alleged
false position in asserting that be desired a
transfer of Sullivan's license and in asking
for such transfer when he was in no position
to claim it. What we have said upon that
subject disposes of that feature of the charge
of fraud. The charge is also based in part
upon the fact that at the time the application
was made the Yale Brewing Company had
not in fact perfected its assignment to the
applicant, although it was perfected prior
to the hearing before the commissioners. No-
where in the application or tn the applicant's
affidavit accompanying it Is it said that the
assignment had been made. The applica-
tion was for a transfer of Snllivan's license
to Davis, and nothing more. We discover no
misrepresentation of fact by Davis, nor pos-
sibility of misunderstanding or misconception
on the part of the commissioners as to any
material matter Involved in their decision.
It does not appear but that the situation
was fully understood by all, and It is of no
practical Importance whether or not the as-
signment to Davis was in form executed at
the time of the application's date.
The superior court is advised to a£9rm
the order of the county commissioners.
No costs in this court will be taxed in favor
of either of the parties. The other Judges
concurred.
01 Conn. 682)
TURNER V. CONNECTICUT CO.
(Suprome Court of Errors of Connecticut,
June 14, 1917.)
1. Appeai. and Erbor <S=»704(2) — Cobbec-
TiON OF Finding — Meuorandum of Deci-
sion.
The memorandum of decision, not being
made a part of the finding, cannot be corrected
on appeu.
[Ei. Note. — For other cases, see Appeal and
Error, Cent. Dig. |S 2900, 2939, 2941.]
2. Appeal and Error iS=>536 — Record —
Agreed Statement of Facts.
An agreed statement of facts, not being cer-
tified to by the trial court and made part of the
record, has no place therein.
[Ed. Note. — For other cases, see Appeal and
Error, Cent Dig. §§ 2402, 2403.]
3. Appeal and Error «=>656(3)— Correction
or Finding.
Appellant cannot have correction on appeal
under the method of Gen. St, 1902, | 797, of a
finding of the trial court, without having the
evidence certified and made part of the record.
4. Carriers «=>12{1) — Power to REonLAXS
Charges. , , ,^^
Under Public Service Corporations Act (Pub.
Acts 1911, c. 128) i 23, it is only after hearing
on complaint and finding that the rates made by
a Public Service Corporation are unreasonable
that the Public Service Commission may disturb
them, and determine and prescribe just and rea-
sonable maximum rates and charges.
[Ed. Note.— For other cases, see Carriers,
Cent. Dig. §{ 7, 15-20.]
5. Carriers «=9l8(2) —Rates— Appeai. from
Order— Review by Court.
Under Public Service Corporations Act (Pub.
Acts 1911, c. 128) I 29, providing for appeal
from the Commission to the superior court, and
section 31, as amended by Pub. Acts 1913, c.
225, providing that said court shall hear such
appoeJ and examine the question of legality o'
the order and the propriety and expediency
thereof in so far as it may properly have cog-
nisance of the subject, the court may determine
whether the Commission's order fixing maximum
^sfVar otiier case* see aame topic and KET-NUMBER In all Key-Numbered DlgesU and Indexes
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TURNER ▼. CONNEOTIOUT 00.
89
rates, or dedioing to change the rates fixed by
the company, is valid, by ascertaining whether
the rate so fixed or left unchanged was reason-
able; this being a judicial question.
[Ed. Note.— For other cases, see Carriers,
Cent. Dig. H IB, 16-18, 20, 24.]
6. PuBuc Service CoiotissioNS €s»7— "Riu.-
BOKABI.E Rate."
The reasonableness of a rate fixed by or for
a public service corporation is to be determined
after viewing its effect on the public as well as
the company; the rate being unreasonable if so
low as to be destructive of ttio company's prop-
city or if so high, either intrinsically or because
discriminatory, aa to be an unjust exaction from
the pubUc.
[Kd. Note.— For other definitions, see Words
and Phrases, First and Second Series, Roason-
able Rate.]
7. CABBIKBa «=»13(2) — Ratks — DiBCHauiNA-
TION.
In determining whether the rate of a carrier
in one locality is, in view of its rates in other
localities, discriminatory, depending on tho lo-
calities being similarly situated and subject to
like conditions, the element of distance is not
necessarily a controlling factor.
[Ed. Note. — ^For other cases, see OarTicrs,
Gent Dig. {{ 22, 21.]
& Appeal and Ebbob <8=s»1010(1)— Rbview—
Questions of Fact.
The facts found not supporting, much less
requiring, the conclusion that a carrier's rate
was excessive or discriminatory, the Supreme
Court cannot disturb the trial court's adjudica-
tion sustaining the Public Service Commission's
determination of reasonableness of the rate.
[Ed. Note. — For other cases, see Appeal and
Error, Cent. Dig. |$ 3979-3981, 4024.]
Appeal from Superior Court, Fairfield
County; Edwin B. Gager, Judge.
Petition by Jcihn C. Turner and others
against the Connecticut Company. From
Judgment of court, on appeal from Public
Utilities Commission, petitioner Turner ap-
peals. Affirmed.
Petition for a reduction in the rates of
fare charged by the respondent between cer-
tain points on one of its lines running from
Stamford to Norwalk, which rates were al-
leged to be unreasonable, brought to the Pub-
lic Utilities Commission, who heard and de-
nied the petition; and thence by appeal to
the superior court ; facts found and Judgment
rendered conflrmlng the action of the Public
Utilities Commission, from which the peti-
tioner Turner appealed.
•nie Connecticut Company operates seven
electric street car lines on Its Stamford
division which converge at Atlantic square
in Stamford. Two of these lines run out-
side of Stamford, one to Sound Beach and one
to Noroton, and five terminate at suburban
points in Stamford. Passengers riding from
Atlantic square to Noroton bridge, a distance
of 2.33 miles, pay one flre-cent fare, and an-
other fare from that point to Noroton village
and points beyond. Passengers riding from
Atlantic square to Sound Beach and the five
suburban lines pay one five-cent fare, and
on three of these lines ride less than the
distance from the square to Noroton bridge, |
while on three they ride a greater distance,
viz. to Sprlngdale, 3.5 mUes ; to Sound Beach,
3.22 miles, and to Shippan Point, 2.79 miles.
The New York and Stamford Railway Com-
pany operates an electric street car line
which converges at said Atlantic square.
Passengers riding by this line from the square
to Cos Cob, another suburb of Stamford, pay
one five-cent fare and ride 3.8 miles. Passen-
gers on all of these lines may transfer at the
square from one of these lines to any of the
others. The village of Noroton was original-
ly a part of Stamford, and in all of its as-
sociations is closely connected vtritb Stam-
ford. In point of healthfulness, natural
beauty, and the character of its population
it is a desirable place to live, and is in no
particular Inferior to Sprlngdale or Cos Cob.
Since the electric street car line was built
through Noroton two houses have been built
between the Noroton bridge turnout and St.
I>uke's Church, and 14 houses have been built
west of and within one quarter of a mile of
the Noroton bridge. Since the electric street
car line was built to Springdale and the five-
cent fare established between Sprlngdale
and Stamford, 170 houses have been built
in Springdale, and Its population has in-
creased rapidly and largely.
On February 24, 1915, the appellant, to-
gether with nine other residents of Darlen,
petitioned the Public Utilities Commission—
"to order a fare extension or 'lap over' so call-
ed, operative in both directions between the said
>oroton river bridge and said St Luke's Church,
or to make such other adjustment of fares as
may be necessary or advisable, so as to give a
single five-cent rate or charge for each passen-
ger between Atlantic square and St. Luke's
Church."
The term 'lap over" is one used in refer-
ence to electric street car lines to denote the
distance which a passenger Is allowed to
ride beyond a given fare limit before he Is
required to pay another fare, or upon taking
a car going in the opposite direction, the
distance which he may ride before reaching
a given fare limit at which he will be re-
quired to pay a fare.
The Stamford division is one of the poorest
earning divisions in the company's system,
and the Stamford portion of the Stamford-
Norwalk line of the Connecticut Company's
system Is one of the best earning lines in
this division. The establishment of the pro-
posed lap over to St Luke's Church would
extend the first five-cent limit out of Stam-
ford, and thereby to some extent decrease the
net earnings of the Stamford division.
In December, 1914, by agreement the towns
of Stamford and Darien paid $2,500 on ac-
count of the cost of widening the said bridge
over Noroton river and the Connecticut Com-
pany the balance of said cost, $3,162, and in
addition $33,000 in making physical connec-
tion between Its lines and Noroton river and
providing other facilities for through traffic.
fts>For other caae* ■«• auna topic and KBY-NUUBER In all K«gr-Numb«rad Dlsaata and Indaxas
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101 ATIiANTIC RSPORTER
(Conn.
The Connecticut Company thereafter laid Its
tracks across the bridge and thus connected
Its tracks, and this was the last step to
complete a continuous line of electric street
tracks between New York and Boston.
The Commission found and held that the
facts before them did not establish the un-
reasonableness of the present rate, and there-
fore denied the petition. The superior court
adjudged that the action of the Commission
was reasonable and proper, and confirmed
It and dismissed the appeal.
WUUam T. Andrews and Peter Dondlinger,
both of Stamford, for appellant Seth W.
Baldwin, of New Haven, for appellee.
WHBELBH, J. (after stating the facts as
above). [1-3] The first seven assignments of
error are assumed by the appellant to relate
to the correction of the finding. In fact they
relate to matters which are parts of the
memorandum of decision. That Is not made
a part of the finding, so that Its correction
cannot be had. The cause Is to be decided
upon the facts found, not upon those contain-
ed In the memorandum of decision. Far-
ther, the agreed statements of facts which
the appellant assumes to be a part of the
record had no place in the record. They
were not certified to by the trial court and
made a part of the record. So far as we
know, they were not necessarily before the
trial court, and certainly were not necessari-
ly the only facts In evidence. Counsel for
the appellee say the appellant petitioner In-
troduced oral testimony. Whether this is
accurate or not, the appellant cannot secure
the correction of the finding under the
method of General Statutes, { 797, without
having the evidence certified and made a part
of the record. The assignments of error,
aside from those relating to the correction
of the finding, are varying ways of stating
the single point tliat the trial court erred in
holding that the action of the Commission
was reasonable in finding and deciding that
the present rates complained of were not
unreasonable. The act regulating Public
Service Corporations (Public Acts of 1911,
c. 128) In section 23 provides tliat:
"Any ten patrons of any such company • • •
may bring a written petition to the Commission
alleging that the rates or charges made by such
company • • • are unreasonable."
Thereupon, after bearing had, the Com-
mission, If It finds such rates and charges
to be unreasonable, may determine and pre-
scribe Just and reasonable maximum rates
and charges to be thereafter made by such
company, and said compauy shall not there-
after demand any rate or charge in excess
of the maximum rate or charge so prescribed.
The limitation of rates to what are rea-
sonable is the enactment in statutory form
of an ancient rule of the common law. Rari-
tan. River R, O). v. Traction (3o., 70 N. J.
Law (41 Vroom) 732, 743, 58 Atl. 332; Rea-
gan V. Farmers' Loan & Trust Co., 154 U. S.
362, 397, 14 Sup. Ct 1047, 88 L. Ed. 1014;
LoulsvUle & N. R. (30. v. Garrett, 231 U. S.
298, 311, 34 Sup. Ct 48, B8 L. Bd. 229.
"To limit the rate of charge for services ren-
dered in a public employment, or for the use of
property in which the public has an interest, is
only changing a regulation which existed be-
fore. It establishes no new principle in the law.
but only giyes a new effect to an old one."
Munn V. IlUnois, 94 U. 8. 113, 24 L. Ed. 77.
[4] The remedy for the enforcement of
reasonable rates provided by our act was
new in this Jurisdiction. So long as the
company establishes reasonable rates, these
cannot be lowered by commission or court.
When it faUs in this duty the Public Utili-
ties Commission is authorized to prescribe
Just and reasonable maximum rates. And its
authority, under this act may be invoked
whenever the rates as fixed are either so
high or so low as to be unreasonable. The
Commission Is an administrative one, with
the delegated legislative function of fixing
railway rates.
[6] A court may not be required to fix or
regulate a tariff of rates for services to he
rendered by a public service corporation,
since this Is a legislative function and may
be conferred by law upon a specially desig-
nated ministerial body. Reagan v. Farmers*
Loan & Trust Co., 154 U. S. 302, 397, 14
Sup. Ct 1047, 38 L. Ed. 1014; Interstate
Commerce Commission y. Railway Co., 167
U. S. 479, 499, 17 Sup. <3t 896, 42 L. Ed. 248;
Janvrin, Petitioner, 174 Mass. 614, 55 N. E.
381, 47 L. R. A. 819; Raritan River R. Co. v.
Traction <3o., 70 N. J. Law (41 Vroom) 732, 68
Atl. 332.
Section 29 of the act provides for an ap-
peal to the superior court from any order of
the Commission. And section 31, as amend-
ed by chapter 225 of the Public AcU of 1913,
provides that:
"Said court shall hoar such appeal and exam-
ine the question of the legality of the order
• • • and the propriety and expediency of
such order * * * in so far as said court may
properly have cognizance of such subject."
Under this provision the court may hear
and determine whether the order of the Com-
mission fixing maximum rates, or its order
declining to change the rate fixed by the
company, is - valid or not by ascertaining
whether the rate so fixed or the rate un-
changed was reasonable or not Such a
question Is a Judicial one.
It has been so held in construing a like or
similar provision in state and federal stat-
ute. Janvrin, Petitioner, 174 Mass. 514, 55
N. B. 381, 47 L. R. A. 319 ; Raritan River R.
(30. V. Traction Co., 70 N. J. Law (41 Vroom)
732, 743, 58 Atl. 332; Chicago, M. & St P.
Co. V. Minnesota, 134 U. S. 418, 458. 10 Sup.
Ct. 4G2, 702, 33 L. Ed. 970; Smyth v. Ames,
169 U. S. 466, 18 Sup. Ct 418, 42 L. Ed. 810 ;
Reagan v. Farmers' Loan & Trust Co., 154
U. S. 362, 397. 14 Sup. Ct 1047, 38 L. Ed.
1014; Prentls v. Atlantic CJoast Line Co., 211
U. S. 210, 29 Sup. Ct 67, 53 L. Bd. 150.
[6] The reasonableness of the rate is to
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Conn.)
TUBNEB T. CONNECTICUT CO.
«1
1)e determined after viewing its effect upon
the public as well as upon the company. The
rate may, on the one hand, be so low as. to
he destructive of the property of the com-
pany, or it may be so hi^ as to be an un-
just exaction from the public; either in-
trinsically so, or because It is discrimina-
tory. In either instance the rate is unrea-
sonable. What the court does iin passing
upon this question Is to doclde after hearing
had in the course of a Judicial proceeding,
whether the rate complained of is so high or
«o low as to be unreasonable. No satisfac-
tory definition of reasonable, as applied to
rates, applicable to each case, can be made.
Each must be decided upon its own facts and
upon a consideration of many varying ele-
ments. A passenger rate upon a railway, to
be reasonable, must be Just to the public as
well as to the railway. It should be large
enough to provide for the passenger reason-
able service and for the railway a reasonable
return. The rate may be made high enough
to cover the cost of service, the carrying
charges, a reasonable sum for depreciation,
and a fair return upon the investment. Less
than this will not give the railway a reason-
able rate. The action of a utilities com-
mission which reduces a rate below this
point unduly deprives the owners of their
property without Just compensation. If a
rate exceeds this point to an appreciable de-
gree and the Commission, upon proper ap-
plication, declines to reduce it, the court
would, in the absence of other controlling
facts, reduce it to a reasonable point.
[7] If a rate in one locality is largely in
fxcess of rates in other localities similarly
sltnated and subject to like conditions, it is
an imreasonable rate, for this would instance
a discrimination against one locality in favor
of another, or other localities. A discrimi-
nating rate of this character would be an un-
reasonable rate, since as a general principle
the service of a public utility should be equal
to all patrons similarly circumstanced. Bald-
win, American Railroad Law, c. 26, f 6;
BUlottonKallroads,§ 1167; Union PadflcRy.
Co. T. Goodrldge, 149 U. S. 680, 690, 13 Sup.
Ct. 970, 37 L. Ed. S96; Western Union Tele-
graph Ca T. Call Pub. Co., 181 U. iS. 92, 99,
21 Sup. Ct. 561, 45 I* Ed. 765 ; Portland By.,
L. & P. G. ▼. Oregon B. B. Commission, 229
i;. S. 397, 411, 33 Sup. Ct 820, 57 L. Ed. 1248.
When we examine the finding before us we
see that there are no facts found from which
it could have been inferred as matter of fact
by the trial court, or must be Inferred by
us as matter of law, that the ten-cent rate
between Atlantic Square and Noroton is ex-
orbitant or excessive. We have not before us
the cost of service between these points, nor
the fair share of the carrying charges and of
depreciation, or what would be a fair re-
turn, for this distance. We are not given ei-
ther the gross or net earnings, or the per car
hour, or per car mile earnings. Nor are the
conditions found to be similar. All that the
finding tells us la that the earnings are less
on this system than on the defendant's other
systems. This unrelated fact, by itself, does
not help in ascertaining what, if any, profits
there are from this rate, and whether they
are excessive or exorbitant The petitioner
does not stand upon the Intrinsic unreason-
ableness of this rate, but upon the claim
that this rate is a discriminatory one, and
results and has resulted to the serious disad-
vantage of the people of the village of Noro-
ton.
It would seem, from the facts found, that
an Inference of fttct may have been Justified
that Sprtngdale had grown greatly and Noro-
ton had not, because of the one commimity
having bad a five-cent rate to Atlantic square
and the other not But we cannot so con-
clude, unless there Is a specific finding of
that fact Many other considerations may
have operated or largely contributed to this
result We may assume that a five-cent rate
would benefit Noroton and its public, for
this Is a self-evident fact But we do not
know what its effect would be upon the re-
turns to the railway. It may be held to be
a principle of tra£Qc that a reduction of
rates Increases the volume of business, but
no principle which we are at liberty to re-
gard tells us In a given case what will be the
extent of tlie increase, or what the effect up-
on the net returns. Chicago, etc.. By. Co. v.
WeUman, 143 U. S. 339. 344, 12 Sup. Ct 400,
36 L. Ed. 176.
In determining the reasonableness of a
rate we cannot leave out of the consideration
the effect of the change of rate upon the rail-
way return any more than we can that upon
the public.
The petitioner's case reduces itself to this:
That the schedule of rates upon the Stam-
ford division gives a materially longer ride
for a single five-cent fare on some of the
lines converging at Atlantic square than It
does en the Noroton line. In a similar situa-
tion the court say:
"The question presented for consideration is
not the reasonableness per se of the charge, but
its reasonableness considered in relation to
charges made by plaintiff at other localities on
its system for like and contemporaneous serv-
ice. • • • The discrimination, without an
excuse recognized by tlie law, would be in and
of itself unjust and unreasonable." Portland
By. L. & P. Co. V. Oregon B. Commission, 229
U. S. 397, 411, 33 Sup. OL 820, 57 L. Ed. 1248.
The petitioner is accurate In his claim as
to the lines to Springdale, Sound Beach, and
Shippan's Point but as to the other tliree
lines converging at the square the single five-
cent fare on the Noroton line gives the longer
ride. And the distance covered by the sin-
gle five-cent fare en the Noroton line is prac-
tically the average distance the single fare
will carry a passenger on all the lines of the
system converging at the square.
The element of distance may be a controll-
ing factor In a case of discrimination, but
not Invariably so. As a rule, other factors
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92
101 ATLANTIC REPOUTEtt
(Conn.
are neopssnrlly relevant before the conclusion
of a (llscrlnilnatlon in rates can be made.
Facts which affect the question of traffic
profit are factors to be considered. It may
be that a divergence In rates between com-
munities similarly conditioned would be dis-
criminatory irrespective of the element of
traffic profit That situation we leave open
until it presents itself. And the Identity or
similarity of cpnditions are also important
factors in determining whether a rate Is dis-
criminatory.
18 J Tlie foundation of the petitioner's claim
of a discrimination is that the defendant
charges "Noroton passengers twice the fare
that it charges to other passengers similarly
circumstanced." The finding does not sup-
port this. The Judgment must be controlled
by the finding. And upon that we cannot
hold that there was any undue preference or
advantage in the other rates, or that the
trial court erred in concluding that the rate
complained of was not reasonable, for the
facts found do not support, much less re-
quire, the conclusion that this rate is either
exorbitant, excessive, or discriminatory.
There is no error. The other Judges con-
curred.
(91 Oonn. 727)
BUIiKELEX ▼, BROTHERHOOD ACCI-
DENT CO.
(Sapreme Court of Errors of Connecticut
June 14, 1017.)
1. Insurance €=3339 — Accident Insdkancb
— Chanok or Occupation.
The act of setting off a single firework la
not a change of occupation from that of garden-
er to that of user or handler of fireworks, with-
in the provision of an accident policy.
[Ed. Note.— For other cases, see Insurance,
Cent. Dig. J 87».]
2. Insurance €=»461(1) — Accident Insub-
ANCE — VOLUNTABT EXPOSURE TO DANOEB.
Evidence that the bombs were ordinarily
safe, that from one to two minutes usually elaps-
ed between the lighting of the fuse and the ex-
plosion of the charge, which threw the bomb
upwards, and that insured, his employer, and
members of the family bad set off a great many
of them on other occasions, is enough to show
that the act of setting off in the usual way a
bomb, a firework, was not a voluntary exposure
to unnecessary danger, within the provision of
an accident policy.
[Ed. Note. — Far other cases, see Insurance,
Cent Dig. f 1180.]
3. Evidence €=>126(2)— Declarations— Man-
ner OF Accident.
Relative to the question whether insured,
fatally Injured t^ explosion of a bomb which
he was setting c^, voluntary exposed himself to
unnecessary danger, within the provision of his
accident policy, his declarations while mi the
way to the hospital, in answer to the question
as to what happened, that it went off sooner than
he expected, and something about a quick-burn-
ing fuse, aU that witness could remember, are
relevant and admissible, and make it more prob-
able that the accident occurred because of a
quick-firing fuse than from attempting to set
off the bomb in some unusual way.
[Ed. Note.— For other cases, see Evidence,
Cent Dig. { 373.]
Appeal from Superior Court* Hartford
County ; Milton A. Shuniway, Judge.
Action by Morgan O. Bulkeley, administra-
tor, against the Brotherhood Accident Com-
pany on a policy of health and accident as-
Burancfe From a Judgment for plaiutlfT, de-
fendant appeals. Affirmed.
The plaintiff's decedent, Oscar L. Johnson,
a gardener In the plaintiff's employ, was In-
jured by the explosion of a firework called a
bomb. Intended to be fired by placing it
In a mortar and lighting a fuse. Some of
these fireworks, left over from the previous
Fourth of July, were found about the prem-
ises, and Johnson was seen to take a bomb
and mortar from plaintiffs garage toward
an open place near by. Nobody witnessed the
accident, but an explosion was heard, and
Johnson was observed rolling on the grass
trying to extinguish a fire burning In the
dothlng alxtut his neck and idlest Two
days afterwards Johnson died in consequence
of boms and wounds received from the ex-
plosion of the bomb. While being taken to
the hospital Johnson was asked, "What hap-
pened?'' and said that it went off sooner thaJi
he expected, and something about a quick-
burning fuse.
The policy exonpts the defaidant from
liability for Injuries caused by "voluntary
exposure to unnecessary danger," and pro-
vides that in case of injury after the Insured
has "changed his occupation to one classified
by the C(»npan7 as one more hazardous than
that herein stated" the company's liability
shall be only for the amount which the
premium would have purchased at the rate
fixed by the company for such more hazar-
dous occupation.
The complaint alleges that the Insured
duly fulfilled all the conditions of the In-
surance on his part, and that the death was
not from any cause excepted In the policy.
The answer leaves the plaintiff to his proof
as to the facts, denies that the assured ful-
filled the conditions of the Insurance, al-
leges that the Injury was caused by volun-
tary exposure to unnecessary danger, and,
as an alternative defense, that the assured
had changed his occupation, and was en-
gaged in using or handling fireworks when
injured, whereby the company's liability was
reduced to $200, in respect of which a tender
is pleaded.
Stewart N. Dunning, of Hartford, for aiH
pellant Warren B. Johnson, of Hartford,
for appellee.
BBACH, J. (after stating the facts as
above). [1 , 2] It is too plain for discussion
that the act of setting off a single firework
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8CHWEHM V. CHBLTEN TBUST CO.
93
Is not a change of occupation from that of
gardener to that of a user or handler of
fireworks.
The other ground of defense, that the
injury was caused by voluntary exposure to
unnecessary daager, rests upon the determi-
nation of a motion to correct the finding by
erasing therefrom the finding that the death
was not from any cause excepted In the
policy, and by substituting therefor a pro-
posed finding that the plaintiff offered no
evidence to show that decedent did not volun-
tarily expose himself to unnecessary danger.
It Is, however, unnecessary to follow the de-
fendant's argument any further, because the
finding of the trial court is supported by the
evidence, and the defense of voluntary ex-
posure to unnecessary danger Is disposed of
on the merits in the plaintiff's favor. There
was evidence tending to show that the bombs
were ordinarily safe, that from one to two
minutes usually elapsed between the lighting
of the fuse and the explosion of the charge
which threw the bomb upward, and that the
decedent, his employer, and members of the
employer's family had set off great numbers
of than at Independence Day celebrations.
This was enough to show that the act of set-
ting off one of these bombs in the usual way
was not a voluntary exposure to unnecessary
danger.
[3] Then the question remained whether
Johnson attempted to set the bomb off in
some unusual way, or in some other way
voluntarily exposed himself to unnecessary
danger In setting It off. On this point his
declaratlona made while being taken to the
hospital are relevant and admissible, and
they make it more probable than otherwise
that the accident occurred because of a de-
fective quick-firing fuse. Defendant excepted
to the admission of these declarations, and
now makes the claim that they were too
vague and indefinite to be admitted in evi-
dence. This, however, was the fault of the
witness to whom the declarations were made,
who was obliged to give the substance of
what was said because he could not remember
the words. Taking these disconnected phras-
es as expressing the snbstance of John-
son's dedaratlons, there is no difficulty what-
ever in {rupportlng the finding of the trial
court that the death was not from any cause
excepted in the policy.
There Is no error. The other Judges con-
curred.
(JB7 Pa. 78)
SOHWEHM V. OHELTBN TRUST CO.
(Supreme Court of Pennsylvania. March 12,
1917.)
1. BmLDIICG AND LOAIT AsSOCIATIOITS C=»
23(4) — AxrrHOMTT or Pbesidewt oip LiOa.n
SOCIXTT— MlSAPPBOPElATION— LlABrLITT.
The president of a loan society, whom the
hy-laws made the chief executive officer and ac-
tive manager, was authorized to accept money
paid to the society by cash or by check to its
order, and his misappropriation of funds so
paid was the loss of the society.
[Ed. Note. — For other cases, see Building and
Loan Associations, Cent. Dig. S 29.]
2. Banks and Banking *=>109(2) — Piiesi-
DENT or IXIAN SOOIETT — InDOBSEUSNT OF
Bills ok Notes.
Where the authority of a bank president
comes from the directors, he may indorse bills
or notes payable to it.
[Ed. Note.— For other cases, see Banks and
Banking, Cent. Dig. § 259.]
3. Banks and Bankino $=>138— Deposits—
Payment on Check— Liability to Deposi-
tor.
Where a depositor drew his check upon de-
fendant bank to the order of a loan society,
whose president and chief executive officer in-
dorsed it and misappropriated the proceeds, the
bank was not liable, as the proceeds were paid
to the society in accordance with the terms of
the check.
[Ed. Note. — ^For other cases, see Banks and
Banking, Cent. DIj. U 39S-405.]
Appeal from Court of Common Pleas, Phil-
adelphia County.
Assumpsit for a bank deposit by Harry
J. Schwehm against the Chelten Trust Com-
pany. Verdict for plaintiff for $5,294.60,
and Judgment thereon, and defendant ap-
peals. Reversed, and judgment entered for
defendant.
Argued before MBSTREZAT, POTTER,
STEWART, MOSCHZISKER, and FRAZ-
ER, JJ,
Chas. C. Norris, Jr., of Philadelphia, for
appellant. Julius C. Levi and David Mandel,
Jr., both of Philadelphia, for appellee.
POTTER, J. Tbe plaintiff In this case,
who was a depositor with the Chelten Trust
Company, drew his check upon that insti-
tution for the sum of $5,002, payable to the
order of Federal Loan Society. The dieck
was indorsed, "Federal Loan Society, H. W.
Stoll, President, Jos. R. Friedman" and
was cashed by the Franklin Trust Company,
and collected by the latter from defmdan^
through the Com Exchange National Bank,
and charged by defendant against plaintiff's
deposit account.
[1] Plaintiff claimed that Stoll, who was
president of the Federal Loan Society, had no
authority to Indorse the check in the name of
the society, that his indorsement did not
transfer title to it, and that defendant's ac-
tion In paying It, and charging it against his
account, was not binding upon him. He
therefore brought this suit to recover the
amount so charged. At the trial, a request
for binding instructions in favor of defendant
was refused, and the jury were instructed
to render a verdict for plaintiff for the full
amount of the claim. From the Judgment
thereon entered, defendant has appealed. Its
counsel contend that under the by-laws of the
Federal Loan Society, the president was con-
.stltuted the general manager of the business
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lUl ATIANXIO REPOBTKB
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of the corporation, and tbis aecessarily gave
him the power to Indorse its commercial
paper. It appears from the record that the
by-laws were not silent as to the president's
authority, but they provided that he should
be the chief executive officer of the company
and should "have general and active manage-
ment of the business of the company," should
"have general supervision and direction of
all the other offlcers of the company," and see
that their duties were properly performed,
should make annually to the board of direc-
tors a report of the operations of the com-
pany for the fiscal year, and from time to
time report to them such matters as the in-
terests of the company might require to be
brought to their notice, and should "have
the general powers and supervision and man-
agement usually vested in the office of the
president of a corporation." Broader powers
!n ' the management of the business could
hardly have been bestowed. The president
was not only authorised to act for the com-
pany, but was to see that all other offlcers
discharged their duties. Counsel for plain-
tiff, however, contend that the power of the
president was limited by two provisions
of the by-laws. The first directs the treas-
urer to "deposit all money and other valu-
able effects in the name and to the credit of
the company in such depositories as may be
designated by the board of directors." This
provision, however, only relates to thei
duties of the treasurer, who is expressly
placed under the "general supervision and
direction" of the president. It puts no limi-
tation on the powers conferred on the presi-
dent himself. The other provision is that
"all checks, drafts or orders for the payment
shall be signed by the treasurer and counter-
signed by the president." This refers only
to instruments for the payment of mon&y
by the corporation, not to the Indorsement
or transfer of instruments of which the
corporation Is not the maker, but the payee.
It does not limit the power of the president
as to the latter.
[2,3] Under the by-laws» as noted above,
the president was made the "chief execu-
tive officer" and the general and active man-
ager of the business of the company. He
had control over every other officer of the
company, and power to direct the disburse-
ment of its funds. This authority was ample
to authorize him to accept money paid to
the company, whether in cash or in the form
of a check payable to the order of the com-
pany. If be misappropriated funds paid in
good faith to him as the representative of
the company, the loss must be that of the
•.■orporation that authorized him to act, and
held him out to the public as its chief of-
ficer and general agent As the power was
delegated to the president in the by-laws,
*here is no question here, as to acquiescence,
hy the board of directors. No action upon
the part of the directors was noccssnry. But
even where his authority comes from the
directors, the president of a bank may in-
dorse bUls or notes payable to it And It
would seem that he has an Implied power to
indorse and transfer its negotiable paper.
1 Daniels, Neg. Inst i 304.
It should be remembered that in the pres-
ent case, in so far as the record shows, the
validity of the Indorsement was not ques-
tioned by the Federal Loan Society, the
payee of the check. It is the drawer of the
check who complains. It does not appear
that the corporation has denied that it was
bound by the indorsement of its president,
or that it has refused to carry out the con-
tract for which the check constituted the
consideration. What the transaction was,
is not very clear, but apparently it was a
purchase of stock. Plaintiff testified that he
had not received the stock, but did not say
that the corporation had refused to issue it
to him, nor did he say that he had made de-
mand for it. Under the facts shown, we are
clearly of opinion that payment of the check
to the president of the company was payment
to the corporation.
The fifth and sixth assignments of error
are sustained. The Judgment is reversed,
and is here entered for defendant.
^^'"^ (2B7 Pa. 17)
O'MAIiLEY et aL V. PUBIiIC LEDGER CO.
(Supreme Court of Pennsylvania. March 5,
1917.)
1. MuNiciPAi CoBPORATiows «=»70e(4)— EJvi-
DENCB OF OWNEBSHIP— InJITBIKS ON STBBET.
In an action for personal injuries wbeu
struck by a motor truck alleged to be the prop-
erty of defendant company, where it appeared
that defendant's name was painted npon the
car containing bundles of newspapers, testimony
of a policeman that shortly before the accident
he saw a car of such description delivering bun-
dles of newspapers, and knew it because he bad
often seen it in the neiKhborhood delivering
newspapers, and that in the particular case his
attention had been attracted to the driver's hur-
ry in tossing papers from the car, was admissi-
ble.
[Ed. Note.— For other cases, see Uonicipal
Corporations, Cent Dig. | 1618.]
2. Appeal ano Ekbob «5a089— Jubt «=>149
— QuBSTioN fob Juby— Withdrawai, of Ju-
BOB.
In such action, where plaintiff husband tes-
tified as to conversation on day "when we
were awarded the verdict" in former trial, where
there was no effort to lead him to the objection-
able remark, and where the jury were instructed
to disregard it, the refusal of a continuance was
within trial court's discretion.
[Ed. Note. — For other cases, see Appeal and
Error, Cent Dig. Jg 3845^848; Jury, Cent
Dig. iS 635-637.]
3. municrpal, corpobations «=»706<o— use
op Stbket — Pebsonal Ivjubt — Qdestion
FOB Jury.
In action for personal injury when struck by
a motor truck, alleged to belong to defendant
newspaper rompnny. held, on the evidenoe, that
the ownership of the car and its operation in
the company's service was tor the jury.
[Ed. fs^otc.— For other cnsoa, see Municipal
Corporations, Cent Dig. § 151S.]
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O'MALLET V. PUBLIC LEDGER CO.
95
Appeal from Court of Common Pleas, Phil-
adelphia County.
Trespass for damages for personal Injury
by Catharine O'Malley and John O'Malley
against the Public Ledger Company. Ver-
dict for plaintiff John O'Malley for $750, and
for Catharine O'Malley for $i3,000, reduced
by the court to $500 and $2,000, respective-
ly, with judgment thereon, and defendant
appeals. Affirmed.
Argued before MESTREZAT, POTTER,
5?rEWART, MOSCHZISKER, and FRA.-
ZBB, JJ.
Robert P. Shlck and Wlnfleld W. Craw-
ford, both of Philadelphia, for appellant
Bertram D. Rearlck, of Philadelphia, for ap-
pellees.
MOSCHZISKER, J. John O'Malley and
Catharine, hte wife, sued to recover for per-
sonal injuries to the latter; verdicts were
rendered In their favor, upon which judg-
ments were ent««d ; the defendant has ap-
pealed.
On January 8, 1915, between 6 and 6:30 a.
in., Mrs. O'Malley was struck by a south-
ward-bound automobile while crossing Twen-
tieth street. In the city of Philadelphia, at
the south side of McClellan street, or about
150 feet from Moore street, the next thor-
oughfare to the north. The testimony relied
upon by the plaintiffs, when viewed in the
light most favorable to them, is sufficient to
snstaln the following material findings:
Just before leaving the sidewalk, Mrs. O'Mal-
ley lotted up and down Twentieth street
and, seeing no vehicles approaching from ei-
ther direction, she started slowly to cross
eastward ; in the center of that thoroughfare
there is a single car track, and. Just before
she reached the first rail of this track, she
was struck by the automobile, which had
turned southward into Twentieth street from
Moore street; the machine was being driv-
en at from 40 to 50 miles an hour, and came
suddenly upon Mrs. O'Malley, without warn-
ing of any kind ; she was knocked down, and
subsequently, as a result of the accident,
suffered a miscarriage and other Injurious
results; finally, the motor in question was
owned by the Public Ledger Company and,
at the time of the injury to Mrs. O'Malley,
it was being oi>erated in the defendant's
service.
There are numerous assignments of er-
ror ; but only a few of them require serious
consideration. To begin with, we have look-
ed at the medical testimony with care, and
feel that It is sufficient to connect Mrs.
CMalley's impaired physical condition with
the acddent, and to justify the conclusion
that ber injuries followed as a result thereof.
[1] We see no error In the admission of
the testimony of the policeman, Jordan. He
recalled the date of the oocurrence under
Investigation ; and the fact that his memory
In this respect was aided by ttw drcumstanca
that he had held a conversation with anoth-
er officer concerning the accident, right aft-
er It happened, would not militate against
the admission of his testimony. It may be
well to note, however, that the details of
this conversation were not allowed in evi-
dence. Other witnesses who saw the acci-
dent had already testified that the car which
injured Mrs. O'Malley was a small machine
with the name of the Public Ledger painted
thereon, containing bundles of newspapers.
The policeman was permitted to state that.
very shortly after the time fixed by the for-
mer witnesses, he saw an automobile of like
description delivering bundles of newspapers
about 4% squares from the place of the ac-
cident; that he knew the car, having seen
it in the neighborhood morning after morn-
ing, on a like errand ; and that, on this par-
ticular occasion, the driver attracted atten-
tion by his seeming hurry, when he tossed
out papers upon the comer where the wit-
ness was standing, without stopping his ma-
chine. Although this testimony, by It.self,
would have but little weight, yet, in connec-
tion with other evidence in the case, it was
circumstantially relevant to Identify the au-
tomobile which caused the damage as a ve-
hicle belonging to and, at the time, in the
service of the defendant Bowling v. Rob-
erts, 235 Pa. 89, 83 Atl. 600; Hershlnger v.
Penna. R. R. Co., 25 Pa. Super. Ct 147.
[2] WhUe the trial judge might have with-
drawn a Juror because of the unfortunate
remark made by Mr. O'Malley when upon
the stand, to the effect that he had a con-
versation with another man oa the day
"when we w«e awarded the verdict" (evi-
dently referring to the verdict in a former
trial of the same cause), yet we cannot say
the refusal so to do constitutes reversible
error. The trial had been on for three days ;
there was no attempt on the part of coun-
sel for the plaintiff to obtain an unfair ad-
vantage by leading o» the witness to the ob-
jectionable remark. On the contrary, it
seems to have slipped out without any pre-
meditated purpose, and, when this occurred,
the judge at once warned the jurors entirely
to disregard the Incident; moreover, at the
end of his charge, he repeated these Instruc-
tions. In conclusion, we do not conceive it
at all probable the remark In question had
any effect prejudicial to the defendant; for
if the jurors understood from it that there
had been a former finding in favor of the
plaintiffs, it must be assumed they likewise
realized that this verdict had been set aside
by the court
[3] No part of the charge is assigned for
error, and a careful reading thereof shows
that all the testimony was properly and cor-
rectly submitted to the Jurors, not only to
find the relevant facts, but to draw their
own Inferences therefrom in determining the
issues involved. Of course, there was testi-
mony produced by the defendant militating
against the evidence depended upon by the
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101 ATLANTIC REPORTER
(Po.
plaintiffs to show the former's ownership of
the car and that the machine was being oi>-
erated in Us serrloe at the time of the ac-
cident ; but this testimony was mostly oral,
and hence it was for the jnry to pass upon.
The assignments of error are all overruled,
and the judgments affirmed.
(257 Pa. 25)
SCOTT T. AMERICAN EXPRESS CO.
(Supreme Court of Pennsylvania. March 5,
1917.)
1. WrTNEssEs iS=»379(7)— Impeachment— CoN-
TBADICTOBY STATEMENTS.
The credibility of a witness may be im-
peached by his previous statements inconsistent
witli or contradictory to his testimony, including
statements made in plendinKS. where the omis-
aion in tlie inconsistent statement occurred when
the occasion called upon him for disclosure.
[Ed. Kote. — For other cases, see Witnesses,
Cent. Dig. J 1251.]
2. Wn-NESSES €=>387— Impeachment— I Ncoif-
siSTENT Statements — Swobn Pleadinqs.
In an action apaiust an express company for
injury to an employ^ from the defective condi-
tion of the brakes and steering apparntjis of its
motor truck, defended on ground that the acci-
dent was caiiscil by the intoxication of the driv-
er, a fellow servant, where defendant's super-
intendent testified that he visited the driver aft-
er the accident, and he then showed signs of
liaving been drinking, his cross-examination as
to whether he had not sworn to answers in the
driver's action in another court arising out of
name accident which said nothing about the
driver's intoxication, was erroneous, where un-
der the rules of that court the facts constituting
the defense were not required to be stated in the
answer.
[Ed. Note.— For other cases, see Witnesses,
Cent Dig. » 1228-12;?2.]
3. Appeal and Erbor ^=>232(2)— AdmissibiI/-
ITY or Evidence— Objection.
Where the record was not clear as to the
ground upon which objection to the cross-exami-
nation of a witness was based, the rule that on
appeal a party complaining of the admission of
evidence in the court below will be confined to
the specific objection there made, was not appli-
cable.
[Ed. Note.— For other cases, see Appeal and
ElTor, Cent. Dig. {{ 1430, 1431.]
4. Appeal and Error <S=»1004{1)— Amount oif
Verdict— Review.
The amount of a verdict will be reviewed by
the Supreme Court under authority of Act May
20, 1S91 (P. L. 101), only when so grossly ex-
cessive as to shock the sense of justice, and to
show a clear abuse of the lower court's discre-
tion in refusing to set it aside.
[Ed. Note.— For other cases, see Appeal and
Error, Cent Dig. H 3860-3876, 3948.]
6. Death «=s>09(3)— Excessive Damages.
Verdicts of $1,717 awarded the father of in-
jured minor employ^, and $12,540 awarded the
estate of the minor, were not excessive, where
he suffered a compound fracture of both legs
above the knees, lacerations end bruises of the
scalp, arms and back, underwent two operations,
and lived four months after the accident
[Ed. Note.— For other cases, see Death, Cent
Dig. §§ 125, 126, 128.J
Appeal from Court of Common Pleas, Phil-
adelphia Connty.
Trespass for damages for personal In-
juries by Elizabeth Soott, administratrix of
the estate of Joseph P. Scott, deceased, and
Elizabeth Scott, administratrix of the estate
of Edward A. Scott, deceased, against the
American Express Company. Verdict for
plaintiff as administratrix of the estate of
Edward A. Scott for $1,717, and as adminis-
tratrix of her deceased son, Joseph P. Scott,
for $12,540, and judgment thereon, motion
for new trial denied, and defendant appeals.
Reversed with a new venire.
PlaintifTs injuries consisted of oompoond
fractures of both legs above the knees, lacera-
tions and bruises of the scalp, arms and back.
Two unsuccessful operations were performed
to secure unions of the fractures of the legs.
Plaintiff suffered extr^ne pain except when
under the influence of opiates, and died as
a result of such injuries over four months
after the accident.
Argued before ilESTREZAT, POTTER,
STEWART, MOSOHZISKBR, and FRAZER,
JJ.
John Lewis Evans, John O. Johnsmt, and
Thomas De Witt Cuyler, all of Philadelphia,
for appellant. Frauds M. McAdams and
William H. Wilson, both of Philadelphia, for
appellee.
FUAZER, J. This action was brought by
Joseph P. Scott, a minor, and Edward A.
Scott, liis father, to recover damages for
Injuries sustained by the former, as a result
of alleged negligence of defendant in per-
mitting the brakes and steering apparatus on
a motor truck, on which the minor was riding
in the discharge of his duties, to become out
of order and remain in a state of disrepair,
which resulted in the machine becoming un-
manageable in descending a street with some
grade, and striking a telephone pole located
along the highway. Joseph P. Scott died as
a result of his injuries, and, upon the subse-
quent death of his father, Elizabeth Scott
prosecuted the action to Judgment as admin-
Istratrix of their estates.
The deceased minor was employed by de-
fendant to ride on its trucks and assist
drivers in handling aod guarding express
packages. The defense was that the accident
was caused by the negligence of the driver,
who, according to the evidence, had been
drinking and was in an intoxicated condi-
tion at the time; which fact was known to
Young Scott. The trial judge submitted the
case to the jury, in a charge to which no com-
plaint is made, and there was a verdict on
behalf of the father's estate for $1,717, and
on behalf of the estate of the minor for $12,-
540. A motion for a new trial was dismissed
by the court below, and defendant appealed.
We deem It unnecessary to refer In detail
to the circumstances of the accident, since
the only questions argued before this court
were as to the correctness of the action ot
the court in admitting certain evidence to
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SCOTT V. AMERICAN EXPRESS CO-
ST
Impeach the credibility of one of defendant's
witnesses, and whettier or not the verdict on
behalf of the minor's estate was excessive.
[1,2] Superintendent Jailer, of defendant
company, testified to visittog the hospital
within two hours after the accident, and, In
reply to a question by his own attorney,
stated he saw Carey, the driver, at that time
and his breath smelled as If he had been
drinking. On cross-examination by plaintiff's
counsel he was asked whether he had not
sworn to and signed answers in actions by
tlie driver and another person against de-
fendant in the municipal court involving the
same accident. Upon objection being made,
coonsel for plalntlfiF stated he wished to test
the credibility of the witness, whereupon the
objection was overruled. The witness then
admitted he had signed and sworn to the
papers, and that they contained no statement
to the effect that the driver had been drink-
ing, or was intoxicated. Defendant contends
this testimony was improperly admitted and
was extremely prejudicial to it, owing to the
fact that the Jury as laymen were likely to
place undue weight on the omission, whereas,
in fact, such omission was unimportant, and
tbe statement unnecessary as a part of the
pleadings in the case.
Hie rule is well settled that the credibility
of a witness may be impeached by showing
previously made statements inconsistent with,
or contradictory to, his present testimony,
and this includes inconsistent statements
made in pleadings in the causes. Henry's
Penna. Trial Evidence, { 65, and cases cited ;
Floyd V. Kulp Lumber Co., 222 Pa. 257, 71
AtL 13; 2 Wlgmore on Evidence, § 1066. To
constitute grounds for discrediting a witness,
however, the omission must be made at a
time when the occasion was sudi that he was
called upon to make the disclosure. It Is
only where the witness on a previous occa-
sion was under some duty to speak the whole
truth concerning the matter about which he
now testifies that impeachment becomes per-
missible by showing an omission to state cer-
tain material facts Included in his testimony.
Royal Insurance Ck>. v. Beatty, 119 Pa. 6, 12
AtL 607, 4 Am. St R^. 622; Huston's Es-
tate, 167 Pa. 217, 31 Atl. 553. ConsequenUy,
in CMisidering the competency of the evldeace
offered for the purpose of impeaching the
witness, the scope of the answers filed In the
municipal court of Philadelphia should be
considered. Rule 7 of that court provides
that an answer shall contain an admission or
denial of each fact averred in the statement
of claim, and that all facts not denied by de-
fendant, or of which he does not aver him-
self to be ignorant, shall be deemed to be
admitted. This rule does not require defend-
ant to state tbe facts constituting his defense,
but merely to either admit or deny those
averred In the statement of claim. We have
no knowledge of the contents of the state-
ments of claim referred to, as they are not
printed In either paper book, and nowhere la
101 A^7
the record does it appear that tbe question
of intoxication was raised in the declaration
In either case. The answers in questions
admit tbe happening of the accident, but
deny that either the brakes or steering ap-
paratus were defective or out or order, or
that the accident was the consequence of the
failure of these parts of the truck to properly
work, or of anything else for which defendant
was responsible. No necessity appears for
the assertion or denial of the charge that the
driver had been drinking previous to the hap-
pening of the accident
The formal pleadings in a case are drawn
by attorneys in technical language, and con-
tain only such averments of facts as in the
opinion of the attorneys are material to make
out a prima fade case. They, therefore, do
not purport to be a complete history or re-
dtal of all the facts of the transaction, and
no unfavorable inference should be drawn
from the failure to Include details which are
the natural and usual parts of the proof,
rather than of the pleadings in the case. For
these reasons it was error to permit the use
of the answers, filed in the municipal court
cases, in attacking the credibility of the wit-
ness.
13] Plaintiff claims the evidence was ob-
jected to solely on the ground that it should
have been Introduced as a part of plaintiff's
case; that this objection conceded its rel-
evancy, and, under the familiar rule that a
party complaining on appeal of the admission
of evidence, in the court below, will be con-
fined to the spedfic objection there made.
Morgan v. Gamble, 230 Pa. 165, 79 Atl. 410;
Roebllng's Sons Co. v. American Amusement
& Construction Co., 231 Pa. 261, 80 Atl. 647.
An examination of the record falls to con-
vince us that this rule should be applied in
the present case. When the papers were
handed to the witness Juller, defendant's
counsel made the following objection: "I
object to any evidence in regard to these
papers, unless it is Introduced as part of
plaintiff's case." The trial judge then said:
"It goes to the credibility of the witness, I
understand. Is that the purpose?" Plain-
tiff's counsel replied: "That is the purpose
entirely." The court thereupon overruled
the objection, but no exception was taken to
the ruling at this point After a preliminary
examination of the witness the record shows
the following:
"Q. In those affidavits yon didn't say a word,
did you, as to Carey [tbe driver] being drunk or
as to having a smell of intoxicatinK liquor on
him? (Objected to by counsel for defendant.
Objection overruled; exception to defendant.)
A. No."
While the objection first made relates to the
order of the admission of the evidence, tbe
comment of the court and counsel for plain-
tiff clearly indicate the evidence was offered
for the sole purpose of testing the credibility
oi the witness, and the general objection fol-
lowing that, upon which the exception was
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founded, may well have been based upon tbat
ground. It is sufficient to say that the record
is not clear or spedflc on tills point, and in
that case the rule invoked by appellee will
not be applied. Kuhn v. ligonler Valley R.
R. Co., 255 Pa. 445, 100 Atl. 142. It follows
that the first assignment of error must be
sustained.
[4, 5] The other question Involved is
whether or not the damages awarded are
excessive, or whether the court below abused
its discretion in refusing to cut down the
verdict, or allow a new triaL Since the pas-
sage of Act May 20, 1891 (P. L. 101), giving
this court povfer to set aside verdicts deemed
to be excessive, we have repeatedly said that
the question of the amount of the verdict
would be reviewed only in cases where so
grossly excessive as to shock our sense of
justice, and where the impropriety of allow-
iug a verdict to stand is so manifest as to
show a clear abuse of discretion on the part
of the court below in refusing to set it aside.
Qulgley V. Penna. R. R. Co., 210 Pa. 162, 59
AtL 958; Reed v. Pittsburg, Carnegie &
Western R. R., 210 Pa. 211, 59 Atl. 1067 ; Dun-
lap V. Pittsburgh, Harmony, Butler & New
Castle Ry. Co., 247 Pa. 230, 93 AtL 276. In
view of the nature of the injury, the pain
and suffering endured, and all the circum-
stances of the case, it cannot be said the ver-
dict in this case Is so excessive as to warrant
our Interference upon that ground.
The Judgment is reversed with a new ve-
nire.
.CS7 Pa. 1)
THOENEBB et al. v. MOSBY et al.
(Supreme Court of Pennsylvania. Feb. 26,
1917.)
Nuisance <S=>3(9)— Dance Haix— Chabactxb
OF NElaUBOBIIOOD.
A bill in equity to enjoin dancing in a hall
in a neigliborbood not strictly residential was
properly dismissed, where it appeared that the
colored persons attending the dances conducted
themselves in an orderly manner, and made no
more noise than was usual on sucU occasions,
though after the dancing, which usually closed
at 12 o'clock, Uiere was considerable noise in
the street on departing, as that could be satis-
factorily controlled by the police.
[Ed. Note.— For other cases, see Nuisance,
Cent Dig. |§ 20-22.]
Appeal from Court of Common Pleas, Phil-
adelphia County.
Bill in equity for an injunction by W. Her-
man Thoenebe and others against Jerome
Mosby and John Foreman, trading as Mosby
& Foreman, and Joseph M. Thomas, trading
as Charles J. Thomas Sons. From a decree
dismissing the bill, plain lifts appeal. Af-
firmed.
BUI in equity for an injunction. The facts
appear in the following opinion by Breg}',
P. J., in the court of common pleas:
This is a bill alleging that the defendants
are maintaining a nuisance at the hnll, 1512 to
1520 North Thirteenth street.
(1) The plaintiffs reside on Thirteenth street
between Jeiferson and Oxford streets.
(2) The defendants Mosby and Foreman are
lessees of a hall on Thirteenth street between
Jefferson and Oxford streets, where they have a
dancing school. The defendant Thomas is the
owner of the building.
(3) On Monday. Thursday, and Saturday
nights Mosby and Foreman, who rent the hall
on the third floor of the stable building kno\Vn
as Thomas' stable, have dancing parties that
begin at 9 o'clock and continue till 12 o'clock.
On Wednesday night they teach dancing from
8;30 o'clock to 10:45 o'clock. On Tuesday and
Friday nights the hall is not occupied by the
dancing school in any way, but the leasees sublet
it (with the consent of the owner, Mr. Thomas)
for concerts, balls, and so on as they can ob-
tain a tenant During the 15 months the de-
fendants have occupied the hall they have rent-
ed it for the above purposes 14 times.
(4) On Monday, Thursday, and Saturday
nights, the music tor the dancing parties begins
at 9 o'clock and continues till 11 :50, when it
stops and the patrons leave — the hall being emp-
tied by 12 o'clock. On Wednesday night, the
teaching night the school begins at 8:30 and
closes at 10 :45. On the occasions that the hall
has been rented out for different entertainments,
they have occupied the hall till 2 o'clock a. m.
(5) The music at the dancing parties consists
of five pieces, viz. : Piano^violin, cornet, trom-
bone, and trap drum. On Wednesday nights the
music is by the piano only. The same five pieces
play at the balls or entertainments when the
place is rented.
(6) When the music continues after 11 o'clock
it is muffled to subdue its noise, and so con-
tinues till the audience leaves.
(7) The hall here alluded to is on the third
floor of a large public stable building that has
been so occupied for over 40 years. During
the many years of the existence of this stable
it has been occupied as such, both for the sta-
bling of private teams and the hiring of horses
and carnages to the public. The ball on the
third floor has for over 30 years been rented out
as a dancing school, for parties, concerts, and
for different kinds of public meetings, political
and otherwise.
(8) The neighborhood is no longer a strictly
residential one. This one square on Thirteenth
street between Jefferson and Oxford has in ad-
dition to the large stable already mentioned quite
a number of business places. EVom the north
side of Jefferson street to the south side of Ox-
ford street, there is on one side a large furni-
ture manufactory, a barber shop, a store, a tailor
shop, a china decorating store, and an empty
store at the comer ; on the other side there is
a saloon, tailor shop, a wall paper establishment,
a butcher shop, and other stores. On the south
side of Jefferson street at Thirteenth street
there is a grocery store at one comer and a
drug store at the other ; and on the north side
of Oxford, a grocery store at one corner and an
insurance office at the other.
(9) The persons attending the dances and en-
tertainments heretofore spoken of have behaved
themselves in a proper way in the hall, and no
misbehavior there has been proved or, in fact
allepred against them.
(10) The patrons of the hall are colored peo-
ple.
(11) When the audience disperses there is on
the street the noises of these persons talking to
each other, saying good-bye and the calling to
ft friend to wait, etc.
(12) At the dancing parties the attendance
is from SO to 100 ; at the times the hall is rent-
ed sometimes there are as many as 400 there.
(\") The occupants of four hou.ses on Thir-
teenth street complain that they are annoyed
by the mnsic to the hall and by the noise in
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COMMONWEALTH t. SOHWABTZ
99
the street when the patrons leave. Very many
more say they are not annoyed and have no com-
plaint to make.
(14) Within the last few years the immediate
neighborhood, but not this street, has become
tenanted by a large number of colored people^
Conclusions of Law.
The plaintiffs seek to have the defendants close
tbe hall at about 10 o'clock, complaining that
the continuation of the music after that hour
and the dispersal of the audience and its at-
tendant noise are a nuisance that annoys them.
The compliiint raises the question as to what
hour a dancing school, party, concert, or ball
should close its doors. The answer must depend
upon the neighborhood, and the facts of each
particular case, as there can be no general rule
on the subject. Considering the fact that I have
foond this not to be a strictly residential neigh-
borhood, but one that has changed into a partly
business one, I do not consider it uureasonaDle
to keep open the dancing school till 12 o'clock.
The hours of entertainment are not what they
used to be. Everything is later, and, as times
change, we mast change our habits with them.
Everythins has been done by the proprietors of
the school to lessen the sound of the music
after 11 o'clock, and I see no reason to interfere
with the dancing school.
At to the parties or balls that are held on
other evenings, while not very many in number,
another question presents itself. Considering
tbe neighborhood and tbe admitted fact that on
an average of once a month an entertainment of
eotnt kind is given which continues till 2 o'clock
in the morning, is It proper to issue an injunc-
tion? This question is not without difficulty.
That it is an annoyance to the plaintiffs to have
their sleep broken by these gatherings is un-
doubtedly true. Those who live in cities must
take what goes with it, however. Those who
live in business neighborhoods cannot expect or
demand the quiet of the suburbs.
As the neighborhood changes they must take
the consequences. If it changes for the worse
and personal discomfort follows, that must be
submitted to. The running of street cars and
tbe noise of the automobiles all night long are
among the few annoyances that all sections of
the city are now subjected to, but would some
years ago have been considered a nuisance. Ap-
plying the principle that an injunction should
not issue in doubtful cases, I would not issue
one here.
There remains only the other question, viz.:
Can tibe bill prevail because of the noise in the
street after the entertainments are dismissed?
As I have found that the defendants' entertain-
ments bring together an assemblage of respecta-
ble, well-behaved people, and that the noises in
the street are not of a kind that are induced
by or encouraged by the defendants' parties, I
see no reason for a court of equity to act. This
is a matter for the police to see ta We would
not hesitate to enjoin the gathering of disorderly,
dissolute, drunken, or depraved persons, whose
coming t<Hfether must necessarily annoy the resi-
dents of nearby houses, but the saying of part-
ing words by respectable people and the calling
to friends as they leave the hall is a matter for
the police to regrilnte, rather than for a court
to dispose of by injunction.
Tbe court dismissed the bllL Plaintiffs ap-
pealed. Error assigned, inter alia, was the
decree of the court.
Argued before BROWN, O. J., and STEW-
ART, MOSCHZISKER, FRAZER, and WAL-
LING, JJ.
Ormond Rambo and Frank H. Warner,
both of Philadelphia, for appellants. J. H.
Shoemaker, of Philadelphia, for appellees.
PER CnRIAlfL This bill was filed to en-
Join dancing and moslc in a certain hall In
the city of Philadelphia. That it was prop-
erly dismissed appears by tbe facts found
and legal conclusions reached by the learned
president Judge of the court below, and, on
them, the decree Is afiSrmed at tbe costs of
appellants.
(267 Pa. 159)
COMMONWHAlffH ex rd. BROWN, Atty.
Gen., V. SCHWARTZ.
(Suprema Oourt of Pennsylvania. March 12,
1917.)
Quo Wabbawto «=»60— Judombht o» Oustkb
—Justice or the Pkacs.
A judgment of ouster in quo warranto pro-
ceedings to test the right of a justice of the
peace to hold office in a borough was properly
entered, where it appeared that respondent hod
been defeated at an election under wiiich he
claimed his right to the office.
[Ed. Note.— For other cases, see Quo War-
ranto, Cent Dig. { 71.]
Appeal from Court of Common Pleas, Lack-
awanna Coanty.
Qno warranto by the Commonwealth, on
ralatlon of Francis Shunk Brawn, Attorney
General, against Prank Berger and Phillip
Schwartz, to test the right of the last defend-
ant to act as Justice of the peace of the
borough of Old Forge. Judgment for defend-
ant Berger, and writ dismissed as to him,
and Judgment of ouster against defendant
Schwartz, and he appeals. Affirmed.
It appears by the record that an election t»
flu vacancies in the office of Justice of the
peace of Old Forge borough was held in
November, 1915, at which time the following
candidates received the number of votes set
out after their names: E. J. Garvin, 819
votes ; Frank Berger, 808 votes ; Fred Roon-
ey, 806 votes; J. J. Chelland, C91 votes;
Phillip Schwartz, 641 votes. It appeared also
that commissions were thereafter Issued tn
Frank Berger and Phillip Schwartz as Jus-
tices of the peace. When the case came to
trial It was agreed that It should be heard by
the court without a Jury, and after such hear-
ing the court found the following facts and
conclusions of law :
Facts.
(1) The territory constituting the borough
of Old Forge, before the incorporation of the
t>orough, had two justices of the peace.
(2) The borough was incorporated on May 2,
1809.
(3) An attempt was made at the February
election of 1899 to secure a vote for an increase
of two justices in the township of Old Forge.
Notices were posted as required by the act of
assembly, and there was a vote actually taken
on the question of increase. There was no re-
turn of the vote made to the office of the clerk
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101 ATIiANTIG BKPORTBR
(I*a.
of tbe court, nor the executive department of
Harrisburg. Nor is tbere any evidence what-
ever in this case as to whether the vote was in
favor or against an increase. Tbe election of
1899 has no place in the consideration of the
present controversy.
(4) Another election was held In the borough
of Old Forge in 1905, at which the question of
increase in the number of justices was voted
upon. The public notices posted before the
election specified an increase of three justices,
but the return of the vote on file in the clerk's
ofiice shows an increase of one only. Counsel
have agreed that the tabulation prepared by
the clerk is a correct copy of the returns in his
ofiice. The tabulation is as follows:
For Increase. Against Increase.
23 64
Ist Ward .
2d Ward ,
3d Ward .
4th Ward
5th Ward
eth Ward .
— 2
.... 75 6 For one Justice
.... 9 0 Increase one
0 0
This shows that the total vote in the borough
against the increase was 71; there were 23 votes
for increase without designation of any number,
and there were 84 votes in favor of an increase
of one.
Conclusions of Law.
1. Old Forge township previous to its incor-
poration was entitled to two justices of the
peace.
Counsel for all parties conceded this propo-
sition.
2. There was not, in law, an increase in the
number of justices in Old Forge township by
the election of 1899. There has been some mis-
apprehension as to the election of 1899. Coun-
sel have tried this case on the supposition that
the election was a borough election, although,
as already stated, there was no borough until
the May following. However, this is of no mo-
ment. The election was undoubtedly a town-
ship election, and a township, as such, had the
right to vote an increase in the number of jus-
tices. The same misapprehension is to be no-
ticed in the opinion of the deputy attorney gen-
eral found in the case of the Old Forge Justices,
30 Pa. 0. C. 164, who supposed the election of
1899 was a borough election, and, basing his
opinion on an affidavit, be states that there was
an increase of one justice at that election in Old
Forge in 1899. We have no doubt that if the
evidence before us was before the Deputy Attor-
ney General he would not have advised the Grov-
ernor in 1904 to make an appointment of one
person to fill the vacancy untU May, 1906.
3. The number of justices of the peace in Old
Forge borough was lawfully increased by one
at tjbe election in 1905. This proposition is so
plain that it needs no discussion.
4. Old Forge borough, prior to the dection of
1905, was entitled to two justices of the peace.
After said election it is entitled to tliree.
5. Two vacancies for the office of justice of
the peace were to be filled at the November elec-
tion, 1915. E. J. Garvin and Frank Berger
having received the majority of votes in the bor-
ough at said election for said office, are enti-
tled thereto, having been lawfully elected. We
note in this connection, that the right of B. J.
Garvin to office is not in question in this case.
6. The respondent, Phillip Schwartz, failed
of election in 1915, and is therefore not entitled
to the office of justice of the peace of Old Forge
borough.
Subsequently exceptions to the findings of
fact and conclusions of law .were dismissed,
and judgment was entered in favor of the de-
fendant Frank Berger, and the writ dismissed
as to him, and as to the defendant Phillip
Schwartz Judgment was entered In favor of
the relator, that the said defendant be ousted
and altogether excluded from the oflSce of
Justice of the peace of Old Forge borough.
Phillip Schwartz, defendant, appealed.
Argued before BROWN, C. J., and MES-
TREZAT, POTTER, FRAZER, and WALr.
LING, JJ.
A. A. Vosburg and John Memolo, both of
Scranton, for appellant John H. Bonner, of
Scrauton, for appellee.
PER CURIAM. This case was tried with-
out a Jury, and the Judgment of ouster
against appellant is affirmed on the facts
found and the legal conclusions readied by
the learned trial Judge.
"^"^^^^ (JBT Pa. 48)
MAGUIBB T. PREFERRED REALTY CO.
(Supreme Court of Pennsylvania. March 6,
1917.)
1. ACKITOWLEDOMXNT €=>5— DEKD»— NECBSei-
XT AS Between Pabtieb.
A deed executed and delivered is sufficient to
pass title between the parties, though not «o-
knowledged.
[Ed. Note. — For other cases, see Acknowledg-
ment, Cent Dig. {§ 22-42, 44.]
2. Pleading ®=3S(15)— Fradd— Allegationb.
Where a declaration in ejectment contains
no allegations of fact showing fraud, an amend-
ment must, in the same degree of certainty, de-
tail the circumstances pointing to that concla<
sion.
[EM. Note.— For other cases, see Pleading
Cent Dig. § 28^.]
3. Ejectment «=>75— Statement of Claix—
DEMtTRKEB.
A statement of claim in ejectment averred
that plaintiff conveyed the realty to defendant
in consideration of its agreement to give plain-
tifF certain shares of stock, and that after tbe
conveyance defendant had refused to deliver any
stock to plaintiff so that the consideration of the
conveyance had failed, but did not allege the facta
indicating fraud in securing the deed, field that
ejectment was not the proper remedy, so that a
demurrer to the statement of claim was properly
sustained without prejudice to plaintilTs right
to assert the claim m some other proceeding.
[Ed. Note.— For other cases, see Ejectment,
Cent Dig. { 204.]
Appeal from Court of Common Pleas, Phil-
adelphia County.
Ejectment by Mary Magulre against the
Preferred Realty Company for recovery of
land situate in tbe city of Philadelphia. De-
murrer to plaintUTs statement of claim sus-
tained, judgment for defendant, and plain-
tiff appeals. Affirmed.
Argued before BROWN, C. J., and POT-
TER, MOSCHZISKEIR, FRAZER, and WAL-
LING, JJ.
Alex. Simpson, . Jr., of Philadelphia, for
appellant Graham C. Woodward and Sam-
uel F. Wheeler, both of Philadelphia, for ap-
pellee.
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MAGUIRE y. PR£F£BR£D REALTY CO.
101
MOSCHZISKER, J. This action was In
ejectment; a declaration and abstract of
title were filed, to which a demurrer was
ait»ed; the judgment favored defendant,
and plaintiff has ai^>ealed. In the course
of bis opinion. Judge Ferguson, of the court
below, states the material facts thus:
"The plaintifl avers that she signed a deed
conveying the premises in qnestion to the de-
fendant [corporation], but that she did not ac-
knowledge the deed in the presence of the no-
tary public who certified that she had done so.
She also avers that the deed was signed in the
presence and at the request <rf Samuel F. Wheel-
er, 'who was her attorney,' and who the plain-
tin believed was the sole manager and counsel
and owner of all the capital stock of the de-
fendant corporation ; and that the consideration
for the deed was a verbal agreement made by
the defendant, through Wheeler, that all the de-
fendant's corporate stock should be transferred
and delivered to her as security for money due
her for advances made to Wheeler and his wife
and for money expended in connection with
the sheriff's sale under which plaintiff obtained
title. The declaration further sets out that the
deed was recorded without plaiutifTs knowledge
or consent, and the defendant, through Wheeler,
refused to surrender the stock [and that "the
consideration for said conveyance wholly fail-
ed")."
[1] After the foregoing review of the facts
stated in the declaration demurred to, the
(pinion goes on to say:
"It will be observed that the plaintiff fails
to aver anything with relation to the delivery of
the deed; in fact, a delivery is necessarily im-
plied from the averment that there was a con-
sideration which failed. The plaintiff nowhere
alleges that she demanded a return of the deed.
What she seeks is a delivery of the stock of the
defendant corporation, to be held by her as se-
curity. It is also to be noted that the plain-
tiff does not aver that the defendant company,
to whom she made the deed, held the stock or
was in a position to deliver it as the considera-
tion, but the stock is alleged to be owned by
Wheeler, who refuses to deliver it. A deed does
not necessarily have to be acknowledged before
a notary pnbUc to make it a valid instrument
between parties. Rigler v. Cloud, 14 Pa. 361;
Cable V. Cable, 146 Pa. 451, 23 Ati. 223. Eze-
ctition and delivery are sufficient to pass the
title, and there is no averment in the declara-
tion from which it could be inferred that the
deed was not delivered."
nien, after dtlng several authorities, the
court below determined that, on the fftce of
the plalnbUfs pleading, the suit was merely
an effort to enforce "a verbal agreement,
made by one not a party to the deed, that
all the capital stock of the defendant com-
pany should be transferred and delivered to
the plaintiff as security," which "agreement
cannot be enforced by an action In eject-
ment"
The plaintiff contends that the learned court
below misconceived the real purpose of her
suit, and that the very form of the action —
ejectment — shows It was to recover the land
and not to gain the consideration ; but, even
looking at the case from that vlewiwlnt. It la
not at all apparent material error was com-
mitted in entering the Judgment under re-
view. In her first declaration, the plaintiff
simply aTecred:
"On January 17, 1916, plaintiff conveyed said
§ remises to the Preferred Realty Company, the
efendant, by deed of that date, recorded, etc.
• • ♦ Said conveyance was made in consider-
ation of an agreement by defendant, through its
president, to give plaintiff stock of defendant
in payment therefor - but, since said convey-
ance was made, defendant, through its president,
has refused to give to plaintiff any of the stock
of defendant. • • * Wherefore the consider-
ation for said conveyance has wholly failed,"
etc
Subsequently an "amended declaration and
abstract of title" were filed, oontalnlng the
averments already outlined, and the appel-
lant contends that these new averments are
sufficient to show such a case of fraud as
entirely to avoid plalntlfTs deed of convey-
ance and leave the property In her as though
that instrument had never been executed.
If this were so, then It might be that the
plaintiff could maintain ejectment; but, be-
ing on demurrer, the Judgment must stand
or fall uptm a review of the declaration as
written, and not on the facts of the case as
they are contended to be in appellant's argu-
ment.
[2] The original declaration contains no al-
legations of fact indicating fraud, and the
averments in the amendment, while, perhaps,
suggesting the possibility of some fraudu-
lent purpose on the part of Mr. Wheeler,
when he secured the deed from the plaintiff,
do not so charge in terms. "Fraud is never
to be presumed." Addleman v. Manufac-
turers' light & Heat Co., 242 Pa. 687, 690,
89 Atl. 674, 675. When there Is no particu-
lar averment of a fraudulent purpose, but
the circumstances detailed are depended up-
on as showing such to be the case, then the
facts relied upon must not only be fully and
unequivocally avferred, but they must point
with some degree of certainty to the ccmclu-
sion contended for; and in such cases the
intendments are taken most strongly against
the pleader, for he la presumed to have stat-
ed all the facts involved, and to have done so
as favorably to hims^ as his conscience
win permit Baker v. Tustin, 245 Pa. 490,
601, 91 Att. 891; Little v. Thropp, 245 Pa.
639, 644, 91 Aa 924.
[3] Here, as already suggested, the facts
detailed in plaintiff's declarations do not,
with any degree of certainty, lead the mind
to the conclusion that. If they should be
proved, a Jury would be Justified In finding
the deed, under which the defendant claims,
to have been fraudulently obtained by It
We say this, for the averments of the dec-
laration are vague and Inconclusive in many
material respects. In the first place, it is
not averred that Mr. Wheeler was plaintiff's
counsel or attorney at the time the deed was
executed by her, or that be acted in such
capacity in this' particular transactlou ; next,
there is no allegation that he was duly au-
thorized or actually did act on behalf of the
defendant company in making the alleged
verbal agreement with the plaintiff; and,
finally, the averment that Wheeler was the
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101 ATLANTIC REPOttTER
(Pa.
ownier of all the corporate stock of the de-
fendant except a few shares, Is too Indef-
inite to substitute him In all respects for the
latter, there being no allegation that he was
the sole owner, In possession of the stock,
or In control of the coriwratlon, at the time
of the occurrences complained ot The fore-
RoinK are only a few of many insufficiencies
which, If necessary. Blight be pointed out;
but they are enough to show the inadequacy
of the declaration. We feel, however, the
plaintiff should be placed in such position
that the present Judgment will not be taken
as precluding her from properly asserting
her alleged rights in some other action or
proceeding where both the realty company
and Mr. Wheeler are Included as defendants.
The assignments of error are overruled,
and the Judgment is affirmed, without prej-
udice, as above Indicated.
(2ST Pa. 6)
AliLEN T. SCHEIE et aL
(Supreme Court of Pennsylvania. March S,
1917.)
1. Easbuxnts ®=»51— Use— Extent.
An easement cannot lawfully be used for a
purpose different from that for which it was
dedicated.
[Ed. Note.— For other cases, see Easements,
Cent Dig. a 10&-112.)
2. Easements <8=>12(2)— Feb— "Road"— "Pm-
VATE Road."
The term "road," and especially "private
road," is indicative of an easement rather than
a fee.
[Ed. Note.— For other cases, see Easements,
Cent. Dig. §S 36-38.
For other definitions, see Words and Phrases,
First and Second Series, Roi^d; Private Road.]
3. Easements «=»C1 (9)— Action foe Injunc-
tion—Burden OF Proof.
The burden was upon plaintiff to establish
her ownership to the fee of the land, included in
a private road in which defendants had a user,
before she was entitled to construct a gas pipe
line on the surface.
[Ed. Note.— For other cases, see Easements,
Cent Dig. g 143.]
4. Easements iS=>C1(9)— Action fob Injunc-
tion—Interest— Evidence.
Evidence in a suit by tlie owner of a farm
to enjoin defendants from obstructing a private
way giving access to a public road held to show
that plaintifE did not have the fee in the road,
but had only an easement of way.
[Ed. Note.— For other cases, see Easements,
Cent Vie. i 143.]
5. Easements <©=>51— Wat— Use.
The owner of an casement in a private right
of way, in which defendants also had a right
of use, was not entitled to maintain a line of
gas pire on the surface, as that was not con-
templated when the easement of way was cre-
ated.
[Ed. Note.— For other cases, see Easements,
Cent Dig. §S 109-112.]
6. Injunction <g=>130— Objection to Juris-
diction— Statute.
Though defendant's first objection to the ju-
risdiction of equity, to enjoin interference with
easement made in request for findings after the
evidence was submitted was not in compliance
with Act June 7, 1907 (P. I* 440) S 1, it did
not affect the chancellors duty to dismiss the
bill if the facta averred were not substantially
proved at the triaL
[EM. Note.— For other cases, see Injunction,
Cent Dig. a 288-300.]
Appeal from Court of CSommon Pleas, Al-
legheny County.
Bill In equity for an Injunction by Eleanor
Walker Allen against John Scheib, Sr., and
another. From a decree awarding an in-
junction, defendants appeal Modified and
affirmed.
Argued before BROWN, a J., and POT-
TER, MOSCHZISKER, FRAZBR, and WAI/-
LING, JJ.
E. J. McKenna, of Pittsbargh, for appel-
lants. J. W. (Jollins, of Pittsburgh, for ap-
pellee.
WALONG, J. This equitable action la to
determine the rights of the respective parties
to a certain strip of land situate In Richland
township, Allegheny county, and used as a
private road. The Butler plank road extends
through said township in a northerly direc-
tion, and the farm of the late John Scott,
containing 142 acres, is located thereon. He
died in 1875, and clause 4 of his will pro-
vides:
"I give and devise to my grandson, John Scott
Teacher, 15 acres of my Bakerstown farm ; t»
my daughter, (jatherine Harbison, 10 acres;
to my granddaughter, Sarah Harbison, 5 acres;
to my daughter Jaae Harbison, 10 acres, all to
be divided out o£ my Bakerstown farm west of
the plank road."
He left other heirs and devisees aside from
those above mentioned ; and, by some family
arrangement made shortly after his death,
the 40 acres mentioned in the clause was set
aside to the devisees therein named out of
the northwest comer of the farm, away from
the public highway. To afford access to the
40-acre tract it seems to have been a part
of the agreement that a private road or lane,
of the .width of 16% feet, should be opened,
extending eastwardly from the southeast
corner of the 40-acre tract, about 1,295 feet,
to the Butler plank road, which lane was
later fenced and opened, and has been used
for about 20 years last past by the occupants
of the 40 acres, the same having been par-
titioned in 1876, among the devisees above
named. This is shown by a map made that
year by Charles Gibson, at the Instance of
one of the devisees. The purparts thereby al-
lotted were sold from time to time, and the
deeds therefor include fractional parts of the
lane, corresponding to the siae of the respec-
tive purparts, for example, each deed for 15
acres Includes three-eighths of the lane. In
1901 the title to the 40-acre tract, together
with whatever Interest the owners thereof
had in the lane, became vested in John Scott
Harbison, who conveyed same to plaintiff in
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ALLEN ▼. SCHEIB
103
ISU. The lane was also used by the owners
ot the balance of the John Scott fann, as
their necessities required.
So far as appears the family arrangement
above stated was not in writing, and there
Is no record of any conveyance from the John
Scott heirs to plaintiff's predecessors for the
40 acres or the lane. Plaintiff contends that
tbe lane was included in the 40 acres. There
la a part of the John Scott farm containing
about 33 acres, some 24 acres of which He be-
tween the 40 acres and the Butler plank road
and north of the lane, as to which he seems
to have died Intestate. In 1881, all of the
heirs of John Scott Joined In a conveyance
of the 24-acre tract to James D. Harbison,
wherein the southern boundary is describ-
ed as:
"Thence along a certain road or lane between
the land herein conveyed and the land of John
Stirling."
Another part of the Scott farm, containing
about 30 acres, and called the Stirling tract,
is on the west side of the planli road and
bonnded on the north by the 40-acre tract
and the lane.
By sundry conveyances the title to the 24-
acre and the 30-acre tracts became vested
In Thomas Morrow, who in 1910 conveyed
same with other land to defendant, John
Scbelb, Sr., the deed for which in one of the
conrses mentioned, "a point at the corner
of a private road," and the general descrip-
tion therein includes the lane and the land ou
both sides thereof. After Mr. Schelb bought
this land there was a controversy about the
use of the lane, between Mr. Harbison and
plaintiff on one side, and the defendants,
"John Schelb, Sr., and John O. Schelb, on
the other, each side claiming to own the same.
One of the findings of the court below Is :
"Sixth. That said John Scheib. Sr.. by de-
stroying drains along said private roacl, taking
ont posts and trees planted by plaintiff and by
other acta has repeatedly interfered with plain-
tiff in the use of said private road."
The defendants, or those In their employ,
also drove their stock across this lane, and
In so doing obstructed It with wires, and re-
peatedly suffered the same to remain in that
condition, to the annoyance and damage of
plahitiff.
In 191S, plaintiff entered into a contract
with one Sebastian Mueller, for the constmc-
tl(m and maintenance of a line of gas pipe in
the lane, which defendants by opposition and
threats prevented being done. Thereafter
plaintiff filed her bill in this case. Joining
said Mueller as a defendant, but the bill as
to him was dismissed. The learned trial
judge, sltrlng as a chancellor, found that
plaintlfl had a good title In fee simple to the
strip of land herein called the lane, and
entered a final decree, Inter alia, enjoining
defendants from Interfering with the con-
struction of the gas line, and also from in-
terfering with plaintiff's free use and main-
tenance of the private road. Drfendants con-
cede that plaintiff has a right to the use of
the lane as a passageway ; in fact that Is the
only means of access to her property. We
fully agree with the learned chancellor that
under all the facts and circumstances defend-
ants should be enjoined from interfering with
plalntlfTs free use and enjoyment of the said
private road as such.
But plalntlfTs right to lay or authorize
another to lay a line of gas pipe therein de-
pends upon the nature of her ownership. If
an easement, then she can use It only for the
purpose for which it was established or dedi-
cated, and cannot lay a pipe line therein.
U. S. Pipe Line Co. & Breckenrldge v. Del.,
Lack. & Western B. B. Co., 62 N. J. Law, 254,
41 Atl. 759, 42 L. B. A. 672; 14 Cyc. 1207,
note 98.
[1] As an easement It cannot lawfully be
used for a purpose different from that for
which It was dedicated. Kirkbam v. Sharp,
1 Whart. 323, 29 Am. Dec. 57; Mershon v.
Fidelity Ins., Trust & Safe Deposit Co., 208
Pa. 292, 67 Afl. 669 ; 14 Cyc. 1215.
[2-6] As above stated the chancellor finds
that plaintiff owns the fee. If so, she may.
of course, construct the gas line therein ; but
a careful examination of the record falls to
disclose any sufficient evidence to support
that conclusion. As above stated, there Is
no deed or other writing showing any con-
veyance by the Scott heirs of the so-called
private road. Tnie, the road Is recognized
In their deed to James D. Harbison as above
quoted, "thence along a certain road or lane
between the land herein conveyed and the
land of John Stirling*'; but that does not
show that the title to the fee thereof has
passed from the Scott heirs. The term
"road," and especially "private road," Is in-
dicative of an easement rather than a fee.
See Klster v. Beeser, 08 Pa. 1, 42 Am. Bop.
608. Plaintiff relies largely on the evidence
of her grantor, John S. Harbison, as tending
to establish a parol partition of the Scott
farm made in 1876, by which this lane Is al-
leged to have been allotted to the owners of
the 40-acre tract, and as a part thereof. But
he does not say that all of the Scott heirs
were present, and shows they were not when
he names those who were there. The chan-
cellor in one part of his exhaustive discus-
sion says:
"Respecting plaintiff's right to the uninter-
rupted use of tbe road there is no room for dis-
pute. Respecting the precise limits of her
rights, whethor she has a fee or a mere ease-
ment, is a debatable question. • ♦ • Wheth-
er Mr. Scheib has the fee in the 16^-foot strip
of land or the mere right to use it in common
with the plaintiff, or any right in it, he has no
right to fill up necessary drains, or otherwise
prevent the free use and proj^er maintenance of
the road, and plaintiff is entitled to an injunc-
tion restraining him from interfering with her
in the exercise of her lawful rights.
The John Scott heirs, aside from those
named in Clause 4 of the will, were not par-
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104
101 ATLAKTIO REPORTER
(R.1.
tlea to the partition of the 40-acTe tract, nor
to the Gibson survey, nor, so far as the rec-
ord shows, bound thereby. And certainly
they were not bound by Qie recitals in the
deeds from the owners of the respective pur-
parts of the 40-acre tract One cannot create
a fee in land merely by including It in his
conveyance. And the above-cited reference
to this road or lane in the deed from the
Scott heirs to James D. Harbison, and also
In the deed from Morrow to defendant, arc
certainly as consistent with an easement as
with a fee. The mere reference in a con-
veyance to a private road does not teud to
show ownership in fee thereof in the party
for whose use it may have l>een established.
Such road, or alley, may, prima facie, be
used by all abutting owners, and defendants
as such would have standing to object to au
additional use being made thereof by the con-
struction therein of a gas line, especially as
this Is proposed to be constructed on the sur-
face of the ground.
PlaintlEF as the owner of the 40-acre tract
undoubtedly has an easement in the private
road and a right to the free and imintcrrupt-
ed use thereof as a way for purposes of pas-
sage over and upon the same; and, so far
as appears, defendants may lawfully make
such use thereof as will not interfere with
the rights of plaintitf.
The burden was upon plaintiff to establish
her ownership to the fee of the land included
in the road, and therein her proofs fail, and
the finding of the court below in her favor as
to that cannot be sustained; nor can the de-
cree In so far as it restrains defendants from
interfering to prevent plaintiff from the con-
struction of a gas line in the road.
[8] The defendants, John Scheib, Sr., and
John G. Scheib, did not, by demurrer or an-
swer, question the Jurisdiction of the court,
upon the ground that the suit should have
been brought at law, but filed an answer to
the merits of the case without asking for an
Issue as to any questions of fact, and thereby
the right of trial by Jury seems to have been
waived, under the provisions of section 1, of
the act of June 7, 1907 (P. L. 440 ; 5 Purdon's
Digest, p. 6001). The defendants first raised
the question of Jurisdiction in requests for
findings after the evidence was submitted;
this was not a compliance with the statute.
Nanhelm v. Smith, 253 Pa. 380, 98 AU. 602.
However, the proviso to this 8e(;tlon is:
"That this shall not alter or affect the duty
of the chancellor to dismiss the bill if the facts
therein averred, as sliowing or teudinR to show
the right to relief, be not substantially proved
at the trial"
— and by reason thereof plaintiff is not en-
titled to relief based on her alleged owner-
ship of the fee of the land in question; for
such claim Is not substantially praven.
The final decree entered by the court be-
low is therefore modified by striking out so
jiuch thereof as restrains defendants, John
Scheib, Sr., and John O. Scheib, from inter-
fering with plaintiff in ttie construction and
maintenance of a gas line in or upon said
private road. The costs on this appeal to be
paid by the apx>ellee.
"°'°°'"" (40 R. I. «S)
GAGNOX V. HHODB ISIAND Ca
(No. S022.)
(Supreme Court of Rhode Island. July 5»
1917.)
1. Tbiai, ©=>26(K1)— Rbfdbai. or Ihstbuc-
HONS COVEBED.
The refusal of instructions, which in so far
as they were correct were covered by those
given, was not error.
[Ed. Note.— For other cases, see Trial, Cent.
Dig. f 651.]
2. Damages €=»52 — PxbsonaIi Irjubies—
Mental Suvferino.
Mental suffering of a pregnant woman con-
sequent upon apprehension and anxiety as to
the effect of an injury upon the foetus becomes
an element of her damage as a natural and
proximate result of the negligence which caused
the injury.
[Ed. Note.— For other cases, see Damages,
Cent Dig. §§ 100, 255.]
3. Dauages €=>52 — Pebsoral Injubies—
MlENTAL SUFFEHING.
Although a mother should not be given dam-
ages for her child's misfortune during life re-
sulting from an injury to the foetus, or for her
own consequent mental distress during the life-
time of the child occasioned by its deformity,
she is entitled to damages for her distress and
disappointment at the time of the birth because
through defendant's negligence she has been de-
prived of the right and satisfaction of bearing
a sound child, if it be found that the child's de-
formity is due to the injury received through de-
fendant's negligence.
[Kd. Note. — For other cases, see Damages,
Cent Dig. §§ 100, 255.]
Exceptions from Superior Court, Provi-
dence and Bristol Ounties; Charles F.
Stearns, Judge.
Action by Eleanors Gagnon against the
Rhode Island Company. Verdict for plain-
tiff, new trial denied, and defendant ex-
;-epts. Exceptions overruled, and case re-
mitted for entry of Judgment
Archambault & Jalbert, of Woonsocket,
for plaintiff. Clifford Whipple and Alonzo
R. Williams, both of Providence, for defend-
ant
PER CURIAM. This Is an action of tres-
pass on the case brought to recover daunages
for injuries alleged to have been suffered by
the plaintiff through negligence of the de-
fendant The case was tried before a Jus-
tice of the superior court sitting with a Jury
and resulted in a verdict for the plaintiff.
Defendant's motion for a new trial was de-
nied by said Justice. The case Is before us
upon the defendant's exception to the de-
cision of said Justice on the motion for a
new trial and upon exceptions taken by the
defendant to certain rulings of said Justice
made in the course of the trial.
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PARIAIT y. OLSSON
105
It appears that the defendant's car track
(Ht John street near Pleasant street in the
dty of Woonsocket Is laid on the westerly
side of the roadway In John street, the west-
erly rail of said track being 2 feet and 10
Inches from the curbstone of the westerly
sidewalk of John street Near the corner of
John and Pleasant streets said track begins
to curve toward the east and runs Into
Pleasant street In passing upon and around
said curve the rear of a double-truck car of
the defendant begins to overlap the wester-
ly sidewalk of John street and continues to
80 overlap the sidewalk for a considerable
distance, the greatest overlapping being 15
Inches at one point On the day of the oc-
currence complained of, the plaintiff. In com-
pany with two other women, was walking
in a southerly direction on the westerly
sidewalk of John street; the plaintiff being
the one nearest to the curbstone. There
was testimony from which the Jury might
find that the servants of the defendant were
operating one of the defendant's double-truck
cars on said John street behind said plain-
tiff; and, without warning or care for the
safety of the plaintiff, when the danger to
the plaintiff must have I>een apparent to the
servants of the defendant they drove said
car around said curve, whereby the rear of
said car projected over a portion of the west-
erly sidewalk of John street struck the
plaintiff, knocked her down, and inflicted
serious injuries upon her. The justice pre-
siding refused to disturb the verdict in re-
spect to the finding of liability or the assess-
ment of damages. After an examination of
the transcript of evidence, we find no reason
tor overruling hia decision.
[1] The defendant's exceptions to the re-
fusal of said justice to charge the jury as
requested are without merit. Said justice
carefully Instructed the jury as to the duty
of the plaintiff and of the defendant In the
premises, and, so far as the charge which
the defendant requested was a correct state
ment of the law applicable to the evidence,
such instruction had been fully given by said
justice.
[2, 3] The plaintiff at the time of the ac-
cident was pregnant; she was struck and
felt pain In bar back and side, and she tes-
tified that at the time of the accident "I
felt the child pushing toward the right"
The plaintiff further testified that from the
time of the accident until the birth of the
child she entertained fears that the child
would be bom deformed. The defendant ex-
cepted to the admission of testimony that
the bead of the child was deformed at birth.
The defendant then excepted to the admis-
sion of testimony that when the plaintiff
saw this deformity she was pained. The
defendant also excepted to the charge of the
Jnstice to the jury that In assessing damages
they might consider any mental suffering,
which they found that the plaintiff had en-
dured, due to her apprehension that she
would give birth to a deformed child; and
that they might consider her mental suffer-
ing at the time of the bli-tb caused by her
disappointment at finding a deformity in
the head of the child, If the jury should also
find that the deformity was a result of the
accident to the plaintiff. The justice very
carefully Instructed the jury that the plain-
tiff was not entitled to compensation for the
Injury to the child or for any disappointment
and suffering which she as Its mother might
feel during Its life by reason of any deform-
ity In the child; but that the jury were
justified in giving compensation to the plain-
tiff for the mental suffering which the jury
might find she had endured before the birth
by reason of her apprehension of the child's
deformity, and also for her suffering at the
time of birth caused by disappointment In
finding she had not been delivered of a
sound child, provided they also found that
the deformity was due to the accident The
exceptions which we are now considering
should be overruled. The foetus 1^ a part
of the person of a pregnant woman, and if,
by reason of the nature and circumstances
of an Injury to her person caused by the neg-
ligence of a defendant, she suffers appre-
hension and anxiety as to the effect of the
injury upon the foetus, in accordance with
the well-recognized rule, such mental suffer-
ing becomes an element of her damage as a
natural and proximate result of the neg-
ligence which caused the Injury. Further-
more, although she should not be given dam-
ages for the child's misfortune during life,
resulting from an Injury to the foetus, nor
for her own subsequent mental distress dur-
ing the lifetime of the child occasioned by
Its deformity, the mother Is entitled to dam-
ages for her distress and disappointment at
the time of the birth because through the de-
fendant's negligence she has been deprived
of the right and the satisfaction of bearing
a sound child. If it be found that the child's
deformity Is due to the Injury she reorfved
through the defendant's negligence. Pres-
cott y. Robinson, 74 N. H. 460, 69 Atl, 622,
17 L. R. A. (N. S.) 694, 124 Am. St Rep.
987; Big Sandy y. Blankenshlp, 188 Kv.
438, 118 S. W. 316, 28 L. R. A. (N. S.) 845.
19 Ann. Cas. 264.
. The defendant's exceptions are all over-
mled, and the case Is remitted to the su-
perior court for the entry of judgment on
the verdict
PARIAN V. OLSSON et aL (No. 4796.)
(Supreme Court of Rhode Island. June 26.
1917.)
Exceptions, Bill of «=359(1) — Tbanbcbipt
OF Evidence.
Where plaintiff filed with his bill of ex-
ceptions a partial transcript of the testimony,
consisting only of the cross-examination of the
plaintiff, and certain rulings of tibe trial judge
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106
101 ATLANTIC ttEPORTBR
(B.I.
upon granting tlie nonsuit, and endeavored to
supplement the partial transcript by including in
hia bill of exceptions a summary statement pur-
porting to show what was proved b; the other
portions of the evidence, ija order thereby to
bring upon the record the purport of the whole
testimony on behalf of the plaintiff, the action
of the trial judge in striking out and disallow-
ing the summary statement of the testimony and
allowing the bill of exceptions thus changed and
in refusing to allow the partial transcript of
evidence filed with the bill of exceptions on the
ground that it was insufficient was proper.
[Kd. Note.— For other cases, see Exceptions,
BUI of. Cent Dig. {{ 106, lOa]
Action by Daniel Parian against Magnus
Olsson and others. On plaintiff's petition to
establish the truth of his exceptions. Peti-
tion denied and dismissed.
William J. Brown, of Providence, for plain-
tiff. Fred L. Owen, of Providence, for de-
fendants.
PER CURIAM. Upon the plalntlfTs peti-
tion to establish the truth of his exceptions
and the correctness and sufficiency of the
transcript of testimony. It appears that the
plaintiff, after suffering a nonsuit In the su-
perior court, having reserved certain excep-
tions, In due time filed his bill of exceptions,
and therewith a partial transcript of testi-
mony consisting only of the cross-examina-
tion of the plaintiff, and containing also cer-
tain rulings of the trial Judge upon granting
the nonsuit
The plaintiff endeavored to supplement the
partial transcript by Including In his bill of
exceptions a summary statement purporting
to show what was proved by the other por-
tions of the evidence, In order thereby to
bring upon the record the purport of the
whole testimony oa behalf of the plaintiff.
The trial judge struck out and disallowed
this summary statement with regard to the
testimony In the case, and allowed the bill of
oxcepUons as thus changed. The trial Judge
also refused to allow the partial transcript
of evidence filed with the bill of exceptions
on the ground that it was insufficient
Thereupon in due time the plaintiff filed In
this court his petition to establish the truth
of his exceptions and the correctness and suf-
ficiency of the transcript, under rul6 1.3 of this
court (62 Ati. iz). He asks thla court to estab-
lish his bill of exceptions as originally filed.
Including the summary statement of testimo-
ny therein, and attempts by his sworn petition
and by affidavit to show not only the correct-
ness of the portion of the transcript as filed,
but also by another summary statement what
was the purport and substance of all the
other testimony in the case.
We think the case Is niled by the case of
Beaule v. .^cnie Finishing Co., 36 R. I. 74,
8!) .Vtl. 73. In that cnsc a slmiliir attempt
was made. The plaintifl' filed with his bill of
exceptions only a portion of the transcript,
containing none of the evidence submitted to
the jury, but only containing certain rulings
of the trial Judge. Plaintiff Incorporated in
his bill of exceptions as filed a summary
statement of the meaning and effect of cer-
tain evidence alleged to have been Introduced
at the trial; the trial judge struck out and
disallowed this summary statement and al-
lowed the rest of the bill of exceptions. The
trial Judge also allowed the partial tran-
script as sufficient for the consideration of
certain numbered exceptions, and found it
not to be sufficient for the consideration of
certain other numbered exceptions. Plaintiff
then petitioned this court to establish the
truth of his exceptions and the sufficiency of
the transcript, and this court sustained the
action of the trial Judge in striking out the
summary statement, and also in his ruling
as to the insufficiency of the partial tran-
script for consideration of certain exceptions.
For the same reasons stated In Beaule v.
Acme Finishing Co., supra, this court is un-
able In the case at bar to find that the trial
Judge erred either in changing the bill of
e.^ccptious by striking out as he did or In his
disallowance of the transcript as insufficient.
We are unable to accept the plaintiff's state-
ment in his petition and affidavits in place of
the testimony which has not been brought
before us in due course of procedure; and we
are forced to rely upon the finding of the
trial Judge as to the insuffldency of the par-
tial transcript
Therefore the plaintiff's petition must be
denied and dismissed.
(40 a. I. 466)
MILLER V. TRUSTEED OF TRINITT UN-
ION METHODIST EPISCOPAL
CHURCH. (No. 364.)
(Supreme Court of Rhode Island. July 3, 1917.)
1. Mechanics' Ltkns <s= 130(1) — SxATFaiENT
— Separate BuiLDiNfis.
A Sunday school building on the same tract
of property upon which a church was located
and connected therewith by a corridor, electric
wires, and steam pipes is not a building separate
from the church within the Lien Law (Laws
1909, c. 257).
[Ed. Note.— For other cases, see Mechanics'
Liens, Cent Dig. {{ 178, 180, ISl.]
2. Mechanics' Liens €=»158— Statement —
Amend uENT.
A mechanic's lien claimant can file an
amended lien statement at any time before the
expiration of the period allowed for filing the
original lien, which amended statement takes the
place of the original statement in ail respects.
[Eid. Note.— For other cases, see Mechanics*
liens, Cent Dig. K 275-278.]
Appeal from Superior Court, Providence
and Bristol Counties; Chester W. Barrows,
Judge.
Action by Charles Miller against the Trus-
tees of Trinity Union Mi-thodlst Episcopal
Church to establish a mechanic's lien. De-
cree for defendant, and petitioner appeals.
Reversed and remanded.
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MILIiEB T. TRUSTEES OP TBINITT UNION M. E. CHURCH
107
Charles H. McKenna, of Providence, for
petitioner. Gardner, Pirce & Tbomlsy, of
Providence (Thomas O. Bradsbaw, of PrOT-
idenoe, of coonsel), for respondent.
VINCENT, J. This is a petition to es-
tablish a mechanic's lien upon land and build-
ings belonging to the Trinity Union Metho-
dist Episcopal CSiurch. The cause comes be-
fore this court upon the petitioner's appeal
from a final decree of the superior court de-
nying and dismissing Ids petition. The pe-
titioner's claim is for certain extra work
and materials famished by him In the con-
struction of a certain building owned by tbe
respondents.
It appears that the Thomas V. Culllnan
Company entered into a written contract
with the trustees of Trinity Union Metho-
dist Episcopal Church to erect a certain
boilding for Sun'day school purposes upon the
premises owned by fhem and located at the
comer of Bridgtaam street and Trinity square,
in the dty of Providence; that the contract
for the painting was snblet by the Culllnan
Company to CSiarles Miller, the present pe-
titioner; that the petitioner delivered cer-
tain materials and commenced work under
bis painting contract on May 3, 1915, and
rendered bis bill to the Culllnan Company
for $1,000, which was tlie entire amount of
the contract price ; that the petitioner on the
4th and 5th days of October, 1915, performed
certain extra work and supplied certain ex-
tra materials amounting to $32.86, rendering
a bill therefor on October 11, 1915; that
the petitioner performed some work around a
doorway in the church, a building adjoining
the Sunday school building and standing
upon a separate and adjoining lot of land:
that the Sunday school while being erected
was connected with the church by a corri-
dor, electric wires, water and steam pipes,
etc.; that a notice of Intention to claim a
mechanic's lien was served on respondent on
Xovember 5, 1915, and on the same day a
copy thereof was placed on record In the
office of the recorder of deeds la Providence;
that the petitioner on January 6, 1916, lodged
his account or demand in the office of said
recorder of deeds and filed bis notice, setting
forth the land and to whose Interest therein
the account or demand referred for the pur-
pose of commencing legal proceedings; that
the petltltmer afterwards lodged In the office
of said recor'der of deeds three other accounts
or demands, each of which was followed by
a notice setting forth the land and to whose
pstate the account or demand referred for
the purpose of commencing legal proceed-
ings. These accounts were filed respectively
on January 81, 1916, February 25, 1916, and
February 29, 1916; that on March 1, 1916,
within 20 days after the lodging of the fourth
account, and the demand and notice, the pe-
titioner filed In the office of the clerk of the
superior court for Providence coonty his pe-
tition to enforce said claim of lien, attaching
thereto notice of the last account or demand
filed under date of February 28, 1916; that
notice of the filing ot said petition was duly
given by the clerk of the superior court for
Providence county.
All these accounts were filed wltliln the
statutory period of 6 months from the com-
mencement of the work and the furnishing
of the materials which, are the subject of the
claim, an'd the petition to enforce the Hen
was filed In the derk's office of the supe-
rior court within 20 days after the lodging of
the fourth account, demand, and notice.
[1] The respondent claims that the peti-
tioner is seeking to enforce a joint lien on
two separate buildings; that Is, that the
Sunday school building, although connected
by means of a corridor, electric wires, water
and steam pipes, eta. Is, In contemplation of
the statutory provisions, two separate build-
ings, and that the petitioner's account lodged
with the recorder of deeds falls to separate
and specify which items apply to the Sunday
school building and which apply to the church
building. The respondent also claims that
the petitioner cannot be permitted to file
more than one account within the required
period of 6 months from the commencement
of the work or. In otlier words, that the sec-
ond, third, and fourth accounts filed must
be regarded as amendatory of the first ac-
count flle'd on January 6, 1916, and, that
being so, the petition to enforce a Ilcn was
not filed in the oflice of the clerk of the
superior court within 20 days after the com-
mencement of legal proceedings.
The respondent, admitting for the purpose
of argiuuent that the petitioner may abandon
the first three accounts filed by him for the
purpose of commencing legal process, and
can rely upon the fourth account filed Feb-
ruary 29, 1916, contends that such fourth ac-
count Is fatally defective in that it does not
specify which Items are chargeable to the
Sunday school building and which items are
chargeable to the church building.
The estate of the respondent at the comer
of Bridgham street and Trinity square com-
prises two adjoining lots of land, one having
been conveyed to It March 14, 1864, and the
other November 10, 1909. The church build-
ing, so called, Is situated upon the first-nam-
ed lot, and the Sunday school building upon
the other lot These buildings are used by
the respondent for the purpose of conduct-
ing and carrying on Its usual and customary
church work, and the two structures are, for
more convenient use, connected by a passage-
way providing an easy and unexiwsed means
of communication from one to the other.
Light, heat, and water are supplied to the
Sunday school building by means of wires,
steam, and water pipes extended from the
church building through the connecting cor-
ridor before mentioned.
The respondent has cited section 7, c 257.
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101 ATIANTIO REPORTEB
(R.I.
General Laws of 1909, and also several Rhode
(sland cases in support of its contention that
the account is 'defectire in not specifying
the items chargeable to each building. In
order to extend to these authorities any ap-
plicability to the case before us, It would
be necessary to reach the conclusion that the
church and Sunday school buildings were
separate and distinct structures. In Bou-
chard ▼. Guistl, 22 R. I. S91, 48 Atl. 934, the
notice failed to state that the materials were
furnished for any building or improTement
at all.
In McElroy v. Krfly, 27 R. I. 64, 60 Atl.
G79, It was held that the petitioner should
bare filed a separate notice of his intention
to claim a lien upon each house and a sep-
arate account for each house of the material
furnished an'd used in it. In that case, aa
the court said in its opinion :
"The bouses were exactly alike but were not
joined together in a block, but separated and
adapted to be occupied each with a separate
curtilage."
In Butler & Ck>. ▼. Rivers, 4 R. I. 88, the
petitioner proceeded against two several es-
tates having distinct owners, and sought to
charge both estates for the work and ma-
terials furnished for each, as the court said,
"in effect to make one of them chargeable
with work and materials expended upon the
other."
In McDuff Coal & Lumber Co. v. Del Mona-
co, 32 R. I. 323, 79 Atl. 831, the petitioner
undertook to proceed upon the theory that,
inasmuch as three houses on separate tracts
of land were undergoing construction at or
about the snme time, they had a general lien
upon all of them for a general balance due
on the assumption that probably approxi-
mately one-third of the materials bad been
used in each house, and that consequently
they could include all three claims in one
proceeding.
The respondent claims that it appears from
the foregoing cases to be incumbent upon one
desiring to establish a mechanic's lien for
materials furnished and used in the construc-
tion of more than one building, whether such
building be upon the same or adjacent lots
of land, to describe each lot and building sep-
arately and to particularize in his account
the items chargeable to each. We have no
controversy with such deduction from the
cases cited. As before stated, in order to
make them applicable it must be assumed
that the church and the Sunday school struc-
tures are separate and independent build-
ings. We cannot so hold. The whole tract
of land is owned by the respondent; the
buildings are used for one general purpose;
they are physically connected, the one being
dependent upon the other for light, heat, and
water. We think that under these condi-
tions the respondent's claim of two separate
and distinct buildings cannot be accepted.
In fact, to carry out and establish the con-
necting corridor work upon both structures
would be required, and the determination ot
a proper dividing line between the two would
be difficult, if not impossible.
[2] The respondent farther contends that
the account lodged with the recorder of deeds
February 29, 1916, that being the fourth ac-
count, la fatally defective, because it is In
amendment of the first account filed January
6, 1916, and cites Harris v. Page, 23 R. I. 440,
50, Atl. 859. In that case the petitioner
sought to amend his account by extending it
or adding thereto items not appearing in the
original statement. The opinion does nut
state specifically whether the application to
amend was made before or after the expira-
tion of the time allowed by statute for fil-
ing an account as the commencement of legal
process to establish a lien, but it may be rea-
sonably presumed that it was after; for oth-
erwise the petitioner might have filed a new
account and raised the same question which
we are now discussing.
The respondent further claims that the
filing of the first account on January 6, 1916,
was the commencement of legal process, and
that within 20 days thereafter the petitioner
was bound to file his petition in equity in the
superior court end failing to do so lost his
lien. The petitioner, on the other hand,
claims that he is not limited under section
7 of chapter 257 to the filing of one account,
but that he can file other accounts, waiviiig
and abandoning all former ones, provided the
last account is filed within the time limited
for the commencement of legal process and
his petition to enforce the lien is filed within
20 days thereafter.
It la apparent that the first three accounts
filed by the petitioner, for one reason or an-
other, were defective. The fourth account
was filed within the required time, and the
fact that the petitioner proceeded further in
the establishment of his lien upon the fourth
account only is evidence of an intention upon
his part to abandon all accounts previously
filed.
To say that the petitioner must stand upon
the first account filed, however defective it
may later be discovered to be, and that he
cannot abandon it and file another account
within the statutory period, would, in our
opinion, be Inflicting upon a petitioner an un-
necessary and unwarranted hardship which
the statute neither requires nor contemplatt>s.
The respondent argnes that after the fil-
ing of the first account innocent parties
might reasonably Infer that the full amount
of the claim bad been disclosed, and thus be
led into dealing with the estate to their dis-
advantage should the filing of a later account
be permitted. We do not see any great force
in this argument The statute fixes a x>eno<l
within which proceedings may be instituted
for the establishment of Hens, and one who
deals with the estate before its expirati>>n
must do so at his peril.
The appeal of the petitioner is sustained,
the decree of the superior court denying and
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B.L)
STATE r. MoAVOT
109
dUnilssiiig the petition la reversed, and the
cause is remanded to the superior court, with
direction to enter a decree establishing the
Hen of the petitioner upon the estate of the
respondent described In the petition for the
sum of $32.68.
KINGSTON V. WII/SON. (No. 6084.)
(Supreme Coart of Rhode Island. July 6, 1917.)
Gart^ishment «=»5e — Pbopebtt Subject—
Deposits.
Wherp it appeared that none of the mone;
deposited with tlie garnishee trust company in
the account of defendant as agent belonged to
him, but was wholly the money of liia principal,
the garnishee was not chargeable.
[Ed. Note. — For other cases, see Garnishment,
Cent Dig. {§ 110, 111.]
Exceptions from Superior Court, Prov-
idence and Bristol Oounties; CThester W.
Barrows, Judge.
Action by James E:ingston against Bobert
H. Wilson. PlaintifTs motion to charge the
garnishee was denied, and he excepts. Ex-
ception overruled, and case remitted.
John P. Beagan, of Providence, for plain-
tiff. Benjamin W. Grim, of Providence, for
defendant.
PER CURIAM. This is an action of debt
■on Judgment. The ease is before us on plaln-
tlfTs exception to the ruling of a Justice of
the superior court denying the plaintiff's
motion to charge the garnishee.
According to the affidavit filed by the In-
dustrial Trust Company, garnishee in the
case, it appears that at the time of the at-
tachment made under the direction contained
III the writ, there was in the hands and pos-
session of said garnishee $289.12 standing in
the name of the defendant as agent ; that the
defendant had stated to the garnishee that
he was the agent of Colgate & Co. From the
uncontradicted evidence given at hearing be-
fore said Justice on the plaintiff's motion to
charge the garnishee It appeared that the
defendant was the manager "for the district
here" of Colgate & CJo., an'd was charged
with the duty of directing the work of the
salesmen employed by said (Colgate & Co.;
that there were about 17 men employed by
Colgate & Co. under the direction of the de-
fendant; that none of the money deposited
in said account of "Bobert Wilson, Agent,"
belonged to the defendant, but was wholly
the money of Colgate & Co. In view of these
facts, which said Justice found to be true,
we are of the opinion that there is no error
In the action of the superior court denying
the motion to charge the garnishee.
Plaintiff's exception is overruled ; the case
is remitted to the superior court for further
proceedings.
(40 B. I. 437)
STATE V. McAVOY (two cases).
(Nos. 4948, 4949.)
(Supreme (Tourt of Rhode Island. July 8, 1917.)
L EUBBZZLEUBNT 4=>38— EVIDENCE— ADUIS-
SIBILITT.
In a prosecution for embezzlement by an
agent in charge of selling and delivering flour,
evidence as to instructions given defendant by
his predecessor as to his duties in maidng re-
ports, collections, and deposits was admissible.
[Ed. Note. — For other cases, aee Embexzle-
ment, Cent Dig. {i 61, 65, 66.]
2. Cbiuinal Law «=>1169(1) — Revikw —
Eabmless Ebbob.
In a prosecution for embezzlement by an
agent intrusted with the duty of selling and de-
livering flour, admission of slips showing deliv-
eries of flour tnr the warehouse company and of
an inventorjr oi flour kept therein made by its
bookkeeper, if error, held harmless.
[Ed. Note. — For other cases, see Criminal
Law, Cent Dig. {{ 3180, 3137.]
3. EvBEZZtxuKNT «=»38— EVIDENCE— Anins-
BIBILITT.
In a prosecution for embezzlement of the
proceeds of flour sold and delivered by an agent
testimony by the bookkeeper of the warehouse
wherein the flour was kept as to the number of
barrels on hand as shown by the report of the
defendant to the milling company was admissi-
ble.
[Eld. Note. — For other cases, see Embezzle-
ment, Cent Dig. §} 61, 65, 66.]
4. Embezzlement 9=344(5) — Defenses— Del
Cbedebe.
In a prosecution for embezzlement, evidence
held not to show that defendant was a del cre-
dere factor.
[Ed. Note. — For other cases, see Embezzle-
ment Cent Dig. S 70.]
5. Embezzlement 4=914 — Defenses — Dn.
Ckedebe Factobs.
That an agent charged with eml>ezzlement
was a del credere factor of his principal consti-
tutes no defense ; such relation not changing the
ordinary one existing between himself and his
principal within Gen. Laws 1900, c. 345, § 16,
providing tljat every officer, agent, clerk, or serv-
ant who shall embezzle property which shall
have come into his possession b^ virtue of his
employment shall be deemed guilty of larceny.
[Ed. Note.— For other cases, see Embezzle-
ment Cent Dig. {§ 13-16.]
6. Embezzlement 9=33&— Evidencb— Matebi-
ality— Pbivileqkd Communications.
In a prosecution for embezzlement, it was
not error to exclude as immaterial correspond-
ence received by the state board of tax commis-
sioners offered on the question as to whether the
employer, a company incorporated in another
state, had been doing business in this stnte, since
under Pub. Laws 1912, c. 769, § 15, such in-
formation could not be divulged except upon
order of the court.
[Ed. Note.— For other cases, see Embezzle-
ment, Cent. Dig. |S W, 65, 66.]
7. Embezzlement *5s>48(1) — Instbuotions —
Appbopkiation of Propebtt.
In a prosecution for embezzlement, it was
not error to instruct that the ownership of the
floor the proceeds of which were alleged to have
been embezzled was controlling as to defendant's
rights thereto.
[EM. Note.— For other cases, see Embezzle-
ment, Cent Dig. Si 72, 75.]
9=>For other oaaes see same topic and KEY-NUMBER is all Key-Numbered Digest* vnd Indexaa
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110
101 ATLANTIC UEPOUTEB
(B.I.
8. Bmbezztbuent «=»44(1)— Evidence— Stnr-
KCIENCT.
In a prosecution for embezzlement, evidence
\eld to warrant a finding of guilty.
[HJ. Note. — For other cases, see Embezzle-
ment, Cent Dig. S{ 67, 70.]
Exceptions from Superior Court, Ptot-
Idence and Bristol Counties; George T.
Brown, Judge.
Harry A. McAvoy was convlcte'd of em-
bezzlement, and he brings exceptions. Ex-
ceptions overruled.
Herbert A. Bice, Atty. Gen. (Claude E.
Branch, of Providence, of counsel), for the
State. Fitzgerald & Blggius and Peter M.
O'Beilly, all of Providence, for defendant.
VINCENT, J. In December, 1914, the
grand jury for Providence county presented
two indictments against the defendant for
embezzlement. To each of these indictments
the defendant plea'ded not guilty and was re-
leased on bail. The two cases were tried
together in the superior court. The defend-
ant moved to be discharged at the conclu-
sion of the testimony offered on behalf of
the state. The motion was 'denied. The Jury
returned a verdict of guilty as charged in
each indictment, each being for the em-
bezzlement of an amount exceeding $500.
The defen'dant filed a motion for a new
trial, upon the usual grounds, which was
denied by the trial court.
The case Is now before us upon the defend-
ant's exceptions covering the denial of his
motion for discharge; to various rulings
during the trial as to the admissibility of
evidence; to certain portions of the charge
of tlie court; and to the denial of the motion
for a new trial. The defendant's exceptions
are 58 In number, but we are advised by
his brief that he relies only upon exceptions
numbered 1, 2, 3, 32, 33, 34, 30, 53, 54, 57,
and 58.
The indictment No. 8269, now before us
on exceptions No. 4948, charges the defend-
ant, Harry A. McAvoy, on the 1st day of
January, 1914, at Providence —
"being then and there the clerk and agent of
the Bay State Milling Company, a corporation,
did then and there by virtue of his said employ-
ment have, receive, and take into his possession
money to a large amount, to wit, to the amount
of $1,368.87, and of the value of $1^68.87, of
the property and money of the said Bay State
Millmg Company, a corporation as aforesaid, the
said Hiury A. McAvov's employer, and the said
Harry A. McAvoy tne said money then and
there feloniously did embezzle and fraudulently
convert to his own use, without the consent of
the said Bay State Milling Company, a cor-
poration as aforesaid, the said Harry A. Mc-
Avoy's said employer, whereby and by force of
the statute in such case made and provided the
5aid Harry A. McAvoy is deemed guilty of
larceny," etc.
The Indictment No. 8270, now before us
on exceptions No. 4949, Is Identical with the
one above referred to, with the exception of
the date of the embezzlement, which Is stated
[ on July 1, 1914, and the amount embezzled as
! $2,834.30.
The defendant, covering the periods of the
alleged embezzlements, was In the employ of
the Bay State MilUng Company a corporation
created under the laws of the state of Min-
nesota an'd having its principal office in the
city of Boston, Mass. All the dealings of the
defendant were with this office. The defend-
ant was hired by the president of the com-
pany, Bernard J. Rothwell, and his assist-
ant, Ernest C. Harris, and commenced work
for said company In April or May, 1913. His
duties were to sell flour In Providence and
vicinity and to collect the proceeds of such
sales. During his earlier employment by the
milling company he perform^ these duties
for a stated salary of $70 per month and an
allowance for expenses, both of which were
paid by the checks of the milling company.
Upon assuming his duties the defendant
was Instructed to conduct the business In the
same manner in which It had been conducted
by his predecessor, Pay G. Hicks. In com-
pliance with such Instructions, the defend-
ant submitted himself to the tutelage of
Hicks for a period of about a week, receiv-
ing from him minute directions as to the
method of conducting the business and being
introduced by him to various customers.
The Instructions given to the defendant by
Hicks were that each sale was to be report-
ed to the milling company by sending to Its
office In Boston a duplicate or carbon copy of
the invoice slip on the day of the sale, and a
weekly report, including an account of the
stock on hand at the warehouse and a list of
the collections. The milling company fur-
nished to the defendant a pad of lnv<dce
slips, numbered consecutively, there bdng
four copies to each number, distinguishable
from each other by the color or character of
the paper. The original or white slip was to
be kept by tlie defendant; the blue slip to be
sent to the customer ; the slip of tissue paper
was to be forwarded to the office of the mill-
ing company In Boston; and the pink slip
was not required under the arrangement
with the defendant Printed blanks for the
weekly reports were also furnished to the de-
fendant by the milling company which were
designed to show, when pr<^;>erly filled out,,
the number of barrels of fiour received dur-
ing the week ; an Itemized list of the number
of barrels delivered to customers from the
wardiotise; the number of barrels remain-
ing In the warehouse; and an Itemized list
of all amounts collected from customers. As
soon as the defendant collected the proceeds
of sales, either In money or by check, he was
to deposit the same In the Merchants' Na-
tional Bank in Providence In the name of the
milling company and report the same by
sending to the milling company a copy of
the deposit slip.
On November 1, 1913, a further arrange-
tesaToT other cases see sama topio and KEY-NUUBER Id all Key-Numbered Dtgeata and Indexe*
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R.D
STATE y. MoAVOT
111
nent was made between the defendant and
the nulling company whereby tbe defendant
should thereafter, instead of receivlDg a
fixed salary, be paid a commission of 35
cents for every barrel of flour sold by him, he
iMiying bis own expenses, the expenses of
i>toriug and carting the flour in Providence
and the guaranteeing of all accounts. This
iirrangemout does not appear to have modi-
fied, or to have been intended to modify, the
previous Instructions given to defendant as
to r^iorts, collections, and deposits. In car-
rying out this additional arrangement the de-
fendant was paid $16 a week in advance on
account of commissions. The balance due the
defendant on account of commissions was
paid to him from time to time by check from
the milling company, and he was not permit-
ted to deduct such commissions from his col-
lections. Later, the milling company becom-
ing dissatlsfled with the defendant's dilatorl-
iiess in collecting the accounts, a further ar-
rangement vras made between the parties,
tiilktng effect in March, 1914, whereby the de-
fendant was to be charged interest on all ac-
counts which were not collected within 45
days.
During the sununer of 1014 there were
some negotiations between the defendant and
the milling company looking to some arrange-
ment whereoy the defendant should buy the
Hour tTom the milling company and sell it on
Ills own account, and on October 9, 1914, the
defendant wrote to the milling company that
by the next month he hoped to "buy the busi-
ness ootrigbt." This arrangement was never
completed, and the defendant admitted at
the trial that this. letter waa written merely
for the purpose of gaining time.
The milling company shipped the flour in
Its own name to a warehouse in Providence.
None of the flour waa ever consigned or
charged to the defendant, and the defend-
ant's name did not appear in the shipment.
.\11 the bills scut by the defendant to pur-
chasers of flour were in the name of the
milling oomi>ain7, a notice being stamped
thereon requesting remittance to "liarry A.
McAvoy, Agt" The defendant also in the
transaction of the business used stationery
which was headed "Bay State Milling Com-
pany." The defendant was given no author-
ity to make prices on his own account, and
letters and bills were sent direct to delin-
quent customers by the milling company.
The defendant undertook and purported to
randuct the business in .accordance with
these arrangements. He sent to the milling
company duplicate invoice slips and copies
of deposit slips and a weekly report in the
form heretofore described.
The evidence shows that the defendant
made sales and deliveries which he never re-
ported to the milling company, and that he
made collections which he did not deposit in
the Merchants' National Bank or report to
the milling company, but appropriated the
same to his own use. There is evidence
showing the methods resorted to by the de-
fendant tai concealing from the milling com-
pany that he was obtaining money which be
did not report ; that he omitted to report to
the company certain collections which he
had made am deliveries reported; that he
omitted to report certain sales and deliv-
eries; that he would deliver flour to two
different ctistomers under invoices of the
same nimiber and report but one of these
deliveries to the company, sending the white
slip to one customer and the blue slip of the
same number to another customer instead
of retaining either for himself, and cm the
tissue slip of the same number send to the
company a r^>ort of only one of the sales.
The defendant admitted that in one in-
stance he iiad intentionaily concealed from
the mUling company one sale and collection
auK>unting to $85, but he testified that his
failure to report other collections to the num-
ber of a dozen or more was due to forget-
fulness.
The defendant Iiad been instructed to de-
posit all collections to tiie account of the mill-
ing company in the Merchants' National
Bank and send the milling company a copy
of each deposit slip; and, according to the
testimony of the otflcers of the milliug com-
pany, the defendant had no authority to in-
dorse any check made out to the order of the
milling company or to deal with either money
or checks received in payment of flour ex-
cept to deposit the same to the account of the
milling company in the Merchants' National
Bank. The testimony shows, however, that
several checks made out to the order of the
milling company were deposited by the de-
fendant to his own account in the Industrial
Trust Company of Providence, the defendant
indorsing them "Bay State Milling Company.
Harry A McAvoy, Agent," and that the
amounts represented by such checks were
never reported to the milling company as col-
lections.
In July, 1914, the mUling company wrote
to the warehouse in Providence in which the
flour was stored requesting an inventory of
the flour of the milling company then in Its
possession. The defendant, visiting the otflce
of the warehouse company and seeing the let-
ter requesting an inventory, told the repre-
sentatives of the warehouse company that be
would take care of that matter, and accor 1-
Ingly prepared an Inventory on a sheet of
letter paper headed with the name of the
warehouse company, which paper had In
some unexplained manner come into the de-
fendant's possession. Tbe inventory thus
prepared by the defendant was typewritten
and without signature. There was nothing
upon it to indicate that it was not compiled
by employ^ of the warehouse company. The
amounts ^ven in this inventory correspond-
ed with those given by the defendant in his
reports, but exceeded by about 300 barrels
the amount of flour which was actually in
the bands of the warehouse company.
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101 ATLANTIO REPOKTJCU
(R.I.
The defendant made some explanation of
this matter of the Inventory to the effect
that an employe of the warehouse company
asked him to make out the Inventory and
that be copied the fiii^ures from his previous
reports. Although the milling company later
wrote to the defendant referring to this re-
port as the report of the warehouse com-
pany, the defendant did not advise the mill-
ing company that such report had beai made
by himself.
There was also testimony that on Novem-
ber 14, 1914, the milling company was noti-
fied by the Merchants' National Bank that its
account was overdrawn. Tills turned out to
be due to the fact that the defendant had
deposited In that bank a check against his
own account In the Industrial Trust Com-
pany which did not prove to be good. Mr.
Harris of the milling company came to Provi-
dence and telephoned the defendant that he
would like to see him at the Narragansett
Hotel. Harris testifies that defendant stated
to him over the telephone that he would be
at the hotel in a few minutes. The defend-
ant, however, went to New London, Conn.
Harris, after waiting for a time, telephoned
the defendant's father, who in turn tele-
phoned the defendant at New London, sug-
gesting to the defendant that he return to
Providence, and he accordingly came back
the next day. The defendant, however, testi-
fies that he told Harris over the tele];dione
that be had made arrangements to go to the
southern part of the state to see prospective
customers and could not see him that day.
On cross-examination the defendant admitted
that he had never before solicited business
in Westerly, and that he could not remember
the name of a single person upon whom he
called. He said that he went to New London
because there was no decent hotel In Wester-
ly where he could spend the night The de-
fendant further admitted on cross-examina-
tion that he knew nothing whatever about
the hotels at Westerly, and bad no reason
whatever for being dissatisfied with them.
Witnesses for the state testified that the de-
fendant admitted at the start that he had
gone to Connecticut because he was afraid to
face Harris; that he had appropriated money
collected to the extent of some $6,000, In-
cluding about $2,000 of the sales which he
had not reported to the milling company;
that he had made out a false inventory on
the letter paper of the warehouse company,
and that he bad paid out most of the money
which he had taken to make up for losses In
speculating in wheat; that the defendant,
without making any attempt to Justify the
taking of the money, told the representatives
of the company that they could put him in
Jail if they wanted to, and when arrested by
Inspector Maguire he said he had been a
fool to give up his ledger to the company.
In October, 1914, in answer to some com-
plaints of the milling company that he was
behind In the collection of his accounts, the
defendant wrote to the milling company that
in a few weeks an estate In which he was in-
terested would be settled, and that he would
then have the money to remit, but he admit-
ted on cross-examinati«i that this story was
a falsehood, and that there was no such estate.
The only exceptions pressed by the defend-
ant, as stated in his brief, are those number-
ed, 1, 2, 3, 32, 33, 34, 36, 63, 54, 57, and 58.
[1] The defendant's exceptions 1, 2, and 3
relate to the admission of certain testimony
of EViy C Hicks. Hicks was the predecessor
of the defendant as the Providence agent of
the milling company. The defendant was
told to get from Hicks instructions as to the
method of carrying on the business. The de-
fendant went to Hicks, and Hicks spent the
greater part of a week In giving him Instruc-
tions as to making and reporting sales and
collections and also taking him to Interview
customers. The defendant objected to the
testimony of Hicks in reference to the in-
structions he gave to the defendant on the
ground that such instructions were given in
April, 1913; that the contract under which
he was then employed by the milling com-
pany ended in November, 1913, previous to
the embezzlement set forth in the indictment ;
and that the arrangements from November 1,
1013, to the conclusion of his dealings with
that company were very different, and it was
immaterial what the arrangements were prior
to 1914, the time laid in the indictment.
We do not think that the contract between
the defendant and the milling company can
be said to have ended In November, 1913.
The contract was added to or modified la
some respects at that time, but such additions
or modifications did not relate to the reports,
collections, and deposits which the defend-
ant was instructed to make and under which
instructions he undertook to act
The modifications referred to related to
the defendant's compensation,' the guarantee-
ing of accounts, and to the payment of in-
terest on accounts after the same had been
overdue for a certain period. The duties of
the defendant in the matter of reports, collec-
tions, and deposits were those given to him
by Hicks at the instance of the milling com-
pany, and we think that sudi testimony was
properly admitted, and that the defendant's
exceptions 1, 2, and 3 must be overruled.
The defendant's exceptions 32, 38, and 34
relate to the same matter, and may be con-
sidered together.
In July, 1914, the milling company wrote to
the warehouse company for an Inventory of
the fiour on hand. This Inventory, as before
stated, was made up by the defendant type-
written upon the letter paper of the ware-
house company, was without signature, and
bore no indication that it emanated from the
defendant It was s«it by the defendant to
the milling company purporting to be a cor-
rect statement by the warehouse company of
the amount of flour on hand. The state, in
its endeavor to show the falsity of this state-
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STATE V. MoAVOY
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ment and that the amount of flonr In the pos-
«Gsion of the milling company was much
less than that represented In the report, of-
ffered In evidence an Inventory of the flour in
the hands of the warehouse company on July
30, 1914, made up by the bookkeeper of that
company. In making such Inventory the
bookke^ier started with the balance of flour
as shown by the inventory of the month pre-
ceding, and deducted therefrom the deliveries
during the month as reported to him hy the
teamers. These reports of the teamers were
made from time to time upon slips used for
that purpose which were filed in the office of
the warehouse company. Some of these slips
were oflfered in evidence in verification of the
inventory of the bookkeeper. Another em-
ploye of the warehouse company testified
that he actually counted the stock of flour on
hand, and found that his flgures corresponded
with the flgures of the Inventory made by the
bookkeeper. Besides this, Mr. Harris of the
mining company counted the barrels of flour
on hand in the warehouse and found a short-
age of 575 barrels.
[2] The defendant contends that the intro-
duction of the slips referred to showing de-
liveries of flonr made by the teamers of the
warAoose company and the introduction of
the inventory of flour made therefrom by
the bookkeeper of the warehouse company
amounted to nothing more than tiie introduc-
tion of hearsay evidence, the admission of
which was error. The apparent purpose of
the testimony was to show that the defend-
ant had deceived the milling company by
conveying to that company a false report of
the flonr on hand. If we take the view that
the admission of such testimony was errone-
ous, it would not constitute reversible error
in view of the fact that there was other tes-
timony establishing the falsity of the defend-
ant's inventory which he did not dispute.
The defendant's exceptions 82 and 33 must be
overruled.
[3] The defendant's exception 84 is to the
ruling of the court allowing the bookkeeper
of the warehouse to testify as to the number
of whole barrels of flour on hand as shown
by the reirart of the defendant made to
the milling company. The defendant object-
ed to the question on the ground that the is-
sue was not the embezzlement of flour. We
see no merit in this exception. The number
of barrels disposed of and unaccounted for
by the defendant would naturally form a
basis for ascertaining the amount of money
covered by the embezzlement The defend-
ant's esceptlooQ 84 is overruled.
[4] At the conclusion of the testimony for
the state the defendant moved that he be
discbarged, and his exception Sd is to the
r^asal of the trial court to grant that motion.
The basis of this motion was that under the
facts as presented the defendant was a del
credere fiictor, and that the relations between
himself and the milling company were simply
those of debtor and creditor. Passing over
101A.-8
the contention of the state that the disposi-
tion of such a motion is within the discretion
of the court and is not the subject of excep-
tion, two questions present themselves for,
consideration: (1) Was the relation of the
defendant with the milling company that of
del credere factor? and (2) if such relation
existed, could the defendant be found guil-
ty of embezzlement under the indictments
brought against him?
In determining Uie first of these questions,
we must consider the agreement between the
parties and apply thereto the familiar rules
of construction, all of which are subordinate
to the leading principle that the intention of
the parties must prevail unless inconsistent
with some rule of law. And such intention
must be gathered not from a portion or por-
tions of the contract but from the whole
taken together. 11 B. a L. 765; 1 Clark &
Skyles on Agency, 24.
In the case at bar the flour was never
consdgned by the milling company to the de-
fendant It was shipped direct to the ware-
house in Providence, where It was held as
the property of and in the name of the mill-
ing company and was at all times subject to
Its orders. The defendant, after making a
sale of flour, was permitted by the milling
company to withdraw from Its stock in the
warehouse a sufficient number of barrels to
All the order. A bill was rendered to the
purchaser In the name of the milling com-
pany, there being stamped upon such bill a
notice to pay the amount due thereon to the
defendant as Its agent Upon the receipt of
the money the defendant was obligated, un-
der his contract to deposit It In full in the
Merchants* National Bank to the credit of the
milling company without any deduction
therefrom for salary, commission, or ex-
penses.
We cannot find any Intent of the xmrties,
dther expressed by the contract itself or
by the methods in which their respective
duties under It were discharged, that would
warrant us in drawing the conclusion that the
defendant was acting otherwise than as the
agent of the milling company.
The defendant seems to place much reli-
ance upon the fact that under certain condi-
tions he was to be held responsible to the
milling company for interest upon accounts
overdue for a certain length of time, and
in some instances for the payment of the
principal sum. The reason for this arrange-
ment is quite apparent from the record. The
milling company had expressed its dissatis-
faction at the seeming lndlffer«ice of the
defendant regarding the prompt collection of
the accounts due and bis want of care In the
selection of responsible customers. The ar-
rangement was donbtiess made for the pur-
pose of stimulating the defendant to look
more closely after the collections and to be
more careful about making sales to irre-
sponsible parties. It could hardly be inferred
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that the milling company waa seeking to se-
cure Itself against loss through the liabilitr
of the defendant, who does not appear to
hare been a person of any financial standing.
[5] If we assume that the defendant was a
factor, we do not see how It could help him
in the pn>sent case. The defendant does not
deny that be was at all times an agent of the
company, nor does he claim that he had any
right to take the money wlilch he appropriat-
ed to his own use. A factor or any other
agent does not acquire the right to Iceep and
appropriate to his own use the money which
he collects, even if he has guaranteed the
account. The statute (General I/aws 1909, c.
;)45, S 16) Is explicit, and provides that:
"Every officer. ap.pnt, cleric, or servant • • •
who shall crabpiizle or fraudulently convert
• • * any money or otlior property which
shall have come into bis possession or shall he
under his care or charge by virtue of such em-
nloymont * • » shall bo deemed guilty of i
larceny."
This statute has been interpreted by this
court In State v. Tabenier, 14 R. I. 272, 276,
51 Am. Hep. 382, In whlcli case the court
said:
"The obvious meaning is that any agent who
has money in hi.s possession, which has come
into his possession by virtue of his agency, is
punishable under the statute if he embezzles or
fraudulently converts it."
The defendant argues that he was acting
under a del credere commission : that the
relations between himself and the milling
company were those of debtor and credi-
tor, and therefore he cannot be prosecuted
for embczzlemcut. As this court said In
Balderston v. National Rubber Co., 18 R. I.
338, 347, 27 Atl. 507, 511 (49 Am. St Rep.
772):
"The effect of the commission is not to extin-
guish the relation between principal and f.ictor,
bnt applies solely to a guaranty that the pur-
chaser shall pay."
In 9 Am. & Eng. Eiicyc. (2d Ed.) 183, the
law on this subject seems to be well sum-
marized as follows:
"The fact that an agent or factor is acting
under a del credere commiBsion does not affect
the ordinary relations existing between him and
his principal. Save for the additional security
affortled the principal, their reciprocal rights,
duties, and liabilities remain the same. • • •
A person who consigns liis goods to a del credere
agent for sale does not part with his title. He
remains the owner of such goods nntil sold; and
when the proceetls of the sale are received by
the agent or his assignees, they belong specifical-
ly to the principal, and do not become a part of
the agent 8 assets, the principal being an ordi-
nary creditor for the amount."
In Wallace v. Castle, 14 Hun (N. Y.) 106,
it was held that the consignment of goods to
a factor acting under a del credere commis-
sion does not necessarily destroy the fidu-
ciary relation existing between himself and
the consignor, and that when he Is in fact
paid by the debtor, the money so received Is
the money of the consignor and not of the
factor, and for a conversion thereof the lat-
ter is liable to arrest The court in its opin-
ion said:
"The defendant was a factor, and, although
entitled to del credere commission, his character
was not changed. His responsibility and his
compensation were enlarged, hut that was in
fact and in law the only change accomplished
by the agreement del credere. He guaranteed
the payment of the sum for which the goods
were sold, but his liability did not accrue until
the purchaser failed to pay. In this case the
payment was made, and the contract of liability
therefore occurring through the del credere com-
mission was not called into existence. The re-
lation of factor continued with all its obligations
and burdens. The money received was the plain-
tiff's money, and not the defendant's. It came
from the plaintiff's debtor, and should have been
paid to the plaintiff as his fund. * * » "
This case goes further than the exigencies
of the present controversy demand, because
the consignment was there made to the fac-
tor, while In the case at bar the consignment
was made to the warehouse in the name of
the milling company. See, also, Common-
wealth V. Smith, 129 Mass. 104 ; Audenried v.
Betterley, 8 Alien (Mass.) 302, 307 ; Moore v.
HiUabrand, 37 Hun (N. Y.) 491; Stanwood
V. Sage, 22 Cal. 516; Thompson v. Perlslns,
3 Mason, 232, Fed. Cas. No. 13,972.
The case o£ Leverlclt v. Meigs, 1 Cow. (N.
Y.) (i45, from which the defendant appears to
quote in his brief, although the apparent
quotation is not in the exact language of the
opinion, seems to us to sustain the principle
that while a del credere agreement may
malce the agent liable in the event of the pur-
chaser's default it will not operate to de-
prive the principal of his right to insist up-
on the performance of the agent's duty in
other respects. The court in its opinion
said:
"The only difference between a factor acting
under a del cre<lere commission or without one
is as to the sales made. In the former case he
is absolutely liable, and may correctly he said
to become the debtor of his principal, bnt it is
not strictly correct to say he is placed in the
same situation, as if he had become the purchas-
er himself; for, ns we have seen, the principal,
notwithstanding this liability, may exercise a
control not nllowabie between creditor and debt-
or. When the principal appears, the right of the
factor to receive payment ceases. This shows
that the effect of the commission is not to ex-
tinguish the relation between principal and
factor, but applies solely to a g\iaranty that the
purchaser shall poy."
The case of Gindre v. Kean, 7 Misc. Rep.
582, 28 N. Y. Supp, 4, which the defendant
cites, seems to us to be in line with the au-
thorities to which we have already referred.
In the course of its opinion the court spealk-
ing of the defendant, said:
"That he was answerable for the purchase
price under his del credere agreement in the
event of the purchaser's default in payment did
not operate to deprive bis principals of the right
to insist upon performance of his duty as
factor."
We think that defendant's exception 36
must be overruled.
The defendant's exception 53 does not seem
to us to possess sufficient merit to warrant
particular discussion.
[•] The defendant's exception 54 was taken
to the ruling of the trial court sustaining ai«
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BUTIiER V. BUTLER
116
objection to the introduction of any corre-
spondence received by the state board of tax
commissioners. The objection come from tbe
Attorney General at the request of the tax
commissioners, and was based npon the
groand that all information In possession of
such commission was confidential, and that
Its disclosure would impede its workings.
The puriiose of the particular question was
to ascertain if there bad been any corre-
spondence between the Bay State Milling Com-
|iany and the tax commissioners as to wheth-
er said company was doing business in Rhode
Island.
Under section 15, c 769, of the Public laws
of 1012, this information could not be di-
vulged except upon the order of the conrt.
It would be the duty of the trial court, in
the exercise of its discretion, to rule out the
question unless it should appear tliat the in-
formation sought was material to the de-
fendant's case. The materiality of the tes-
timony was not apparent to the trial court,
and it is not apparent to us. We thinlc it
was properly excluded. So far as appears,
it could be of no assistance to the Jury in
determining whether or not the defendant
was guilty of eml)ezzling the money of the
milling company.
[7] The defendant's exception 57 Is as fol-
lows:
"Also will your honor note my exception to the
charge of the court in which the court stated
that the ownership of the flour was controlling
"B to his rights to the proceeds."
Supposing the exception to t>e a substantial
statement of what the court said in Its
charge, it could hardly be claimed to be an
erroucous statement of the law ai)pllcabie to
the ease. If the flour was the property of
the defendant, be could not be guilty of em-
bezzlement. If, on the other hand, the flour
was the property of the milling company,
and the defendant appropriated the pro-
ceeds to his own purposes, when, under bis
agreement, he was bound to make deposit
thereof in the Merchants' National Bank to
the account of the milling company, then be
woald be guilty of embezzlement, and in that
view of the case the ownership of the flour
might reasonably be said to be controlling.
An examination of the charge of the court
satisfies ns that tbe instructions given
amount to a correct statement of the law.
For instance, the court said:
"So you see, gentlemen, that it is necessary,
in order to establish the crime charged against
the defendant here of embezzlement, that he
»hoiUd either have been an officer, an agent, or
clerk or servant, or a person to whom the money
was intrusted, of the Bay State Milling Com-
pany. That is the reason that so much stress
was laid upon tbe question as to whether or
not he was the owner of this business and car-
rying on bnsinesa on his own responsibility, own-
ing this property, or whether or not be was the
ai;ent of the Bay State Milling Company, and
being their agent, having this property given
into his hands as their agent, or for a specific
purpose, embezzled their money. If it was his
own money, he could not embeszle his own mon-
ey. It must have been the monev tliat came into
his hands as the agent, etc., of the Bay State
Milling Company. What the evidence is uiKm
that point you nave heard, both upon his side
and upon the side of the prosecution, and you
will determine for yourselves what the facts
are." •
These InstmctioDB were substantially re-
peated by the court in another portion of the
charge. We do not find any error in the
charge, and defendant's exception 57 must
be overruled.
[I] The remaining exception 68 is to the
denial of the defendant's motion for a new
trial. The jury has found the defendant
guilty, and the trial justice who saw, beard,
and observed the witnesses has denied the
motion for a new trial, and has found that:
"The evidence fully warrants the finding of
the jury that tbe defendant is ^ilty of the
crime ol embezzlement as charged in the indict-
ment"
An examination of the whole record con-
vinces ns that the conclusion of the trial
court in denying the motion for a new trial
was correct A detailed discussion of this
exception would be largely and substantially
a repetition of wliat has already been stated,
and would therefore be unnecessary. Excep-
tion 58 must be overruled.
All of tbe defendant's exertions are over-
mled, and tbe case is remitted to the sa-
perlor court for sentence.
. (40 R. I. 425)
BUTLER et al. v. BUTLER et ai (No. 393.)
(Supreme Court of Rhode Island. July 3,
1017.)
L Wills «=>028— Vested Remaindee— Def-
inition.
Tbe distinguishing feature of a vested re-
mainder is that there shall be a person or per-
sons in being, ascertained and ready to take pos-
session when the preceding estate may deter-
mine, and in such case the interest vests at
once, but enjoyment of it is postponed.
[Ed. Note.— For other cases, see Wills, Cent
Dig. I 1460.]
2. Wills ®=»628— Contingent Reuaindxr—
definition.
In the case of a contingent remainder,
whether or not any estate shall vest in either
right or possession, or who shall take it, depends
upon a future contingency, and in such case not
only the time of enjoyment but the right to en-
joy is uncertain.
[Ed. Note.— For other cases, see Wills, (Tent
Dig. i 1460.]
8. Wills ^=»62&— Vested Reicaindes.
The law favors vesting, and will not regard
a remainder as contingent in the absence of
very decisive terms of contingency, unless the
provisions or Implications of the will clearly re-
quire it and words expressive of future time are
to be referred to the vesting in possession, if
they reasonably can, rather than to tbe vesting
in right.
[Ed. Note.— For other cases, see Wills, (3ent.
Dig. SS 1461, 1462.]
4. Wills «=»C34(18) — Constbcction — Re-
main debs.
Provision in a will creating trust to termi-
nate upon tbe death of testator's wife, and when
CssVor otber case* sea uma topic tcai KEIT-NUMBER Id »U Key-Numbered Digests and Isdsxea
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101 ATLANTIC REPORTEB
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a son named shall reach the age of 28 years,
with remainder over to testator's children in
shares stated, created a vested remainder, since
any delay between the happening of the two
events wonld not postpone the vesting, but only
the enjoyment ; there being persons in being
at the time of the testator's death ascertained
and ready to take possession whenever the pre-
ceding estate should come to an end.
[Ed. Note.— For other cases, see Wills, Cent
Dig. { 1507.]
0. Wills €=»C30 — Combtbuctiok — Rei£ain-
DEns.
Where a will created a vested remainder in
children of the testator and gave a daughter a
larger share, but provided that if the daughter
should die before the termination of the trust
the shares of remaindermen shall be equal and
her share will go to her children, the daughter
took a vested remainder subject to being de-
creased in case she died before the termination
of the trust, and each son took a vested re-
mainder subject to being increased in case of
the death of the daughter.
[Ed. Note.— For other cases, see Wills, Cent
Dig. {{ 1514-1518.]
6. Wills ®=>CS4(7) — Remaindeb — Cumula-
tion OF Income.
Where a will created a trust terminating up-
on the death of the wife and when a named son
should reach the age of 28 years, upon the death
of the wife before the son reached the age stated,
the accumulation of income, which would have
been payable to the wife, should>be paid as it
accrues to the vested remaindermen, tne general
rule being that tlic right to accumulations of
income directed by will may be vested, and the
vested right will attach to each new amount as
fast aa it accumulates, and will, in general, be
either vested or contingent according as the
gift of the principal is vested or contingent
[Kd. Note. — B'or other cases, see Wills. Cent
Dig. I lC2o.]
7. Wills «=>634(S)—Constbuction— Remain-
debs.
Where a will created a vested remainder in
two-iifths of the corpus in a daughter, and in
contemplation of the decease of the daughter on
termination of the trust provided that the "then
trustee shall distribute all my estate equally,
share and share alike, to my children, their
heirs, administrators and assigns, the share of
any deceased child to go to the heirs of the body
of said child, if any, the children of [the daugh-
ter], if any, to take their mother's share," upon
the death of the daughter before the termina-
tion of the trust her children, if any, would
share equally with three sons and take one-
fourth of the estate, or upon her death prior
to the termination of the trust without issue
the corpus should be divided equally between
the three sons.
[Ed. Note.— For other cases, see Wills, Cent
Dig. § 1496.]
8. Wills <S=>C86(1)— CoNBTBtronoN— Tbcsts.
Where a will created a trust to be termi-
nated upon the death of the testator's wife, and
when a named son should reach the age of 28
years, the trust would terminate upon the death
of the son before reaching the age of 28 years,
and after the death of the wife, and the corpus
should be distributed aa of the date of his de-
cease.
[Ed. Note.— For other cases, see Wills, Cent.
Dig. §§ 1631, 1633, 1637.]
Certified from Superior Court, Providence
and Bristol Couutlcs.
Suit by Hayward M. Butler and others,
trustees under the will of John J. Butler,
agaln.st D. Forrest Butler and others. On
certificate from tbe superior court Decree
authorized in accordance with tbe optnlcm.
Gardner, Plrce & Thomley, of Providence,
for complainants. Ellsba C. Mowry, of Prov-
idence, for respondents Bntler. Fred A. Otis,
of Providence, guardian ad litem, pro se.
VINCE)NT, 3. This is a bUl in equity
brought in the superior court by the com-
plainants as trustees under tbe will of John
J. Butler. It appearing that all parties In-
terested, or who might become interested,
were represented, and that the only questions
of law raised by said bill iuvolTed tbe con-
struction of a will, tbe cause was certified
to this court for determination under section
35, chapter 289, of the General I^aws of 1909.
The testator died May 22, 1916, leaving a
widow, Laura E. Butler, and four children,
Hayward M. Butler, Nettle B. Rice, tbe com-
plainants, and D. Forrest Butler and Ward
B. Butler, two of tbe respondents. By the
residuary clause of the will tbe testator left
a considerable amount of property to the
complainants, as trustees, with directions to
pay all bis debts and after deducting tbe ex-
penses of tbe trust to pay tbe net Income aa
follows:
"To my wife during her life three-fifths and
to my said daughter Nettie during her life two-
fifths."
Without making any farther provision aa
to the payment of income, tbe will disposes
of the principal of the trust estate aa fol-
lows:
"On the death of my said wife, and when my
said son Ward shall have reached the age of
twenty-eight years, I hereby direct and em-
power my said trustees to terminate said trust
and distribute all my said estate, two-fifths to
my said daughter Nettie and, one-fifth each to
my said three sons, to each of them, their heirs,
administrators and assigns forever, free from ail
trust and obligation, giving to my said trustees,
discretion as to the substance and manner of
such distribution. If, however, my said daugh-
ter Nettie be not then living, the then trustee
shall distribute all my estate equally, share
and share alike, to my children, their heirs,
administrators and assigns, the share of any
deceased child to go to the heirs of the body of
said child, if any, the children of Nettie, if any,
to take their mother's share."
Tbe widow of tbe testator, Laura E. But-
ler, died January 30, 1917. The four chil-
dren are all living; tbe son Ward E. Butler
being of tbe age of 24 years, and unmarried.
Tbe testator's daughter. Nettle B. Rice, has
no children. Tbe other sons, Hayward M.
Butler and D. Forrest Butler, have each one
child. Both of these children are minors and
are represented by a guardian ad litem, who
also represents the interests of persona not
ascertained and not yet in being who may
be Interested In the trust declared by said
will.
The questions which have arisen in tbe
course of the administration of the trust and
which this court U asked to determine are
as follows:
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(1) Are the equitable estates In remainder
wMch shall take effect In possession upon the
tennlnation of the trust vested or contingent
temaluders ?
(2) Should the complainants, as trustees,
permit the three-fifths income of the trust
estate — which would have gone to the testa-
tor's wife had she lived until the end of the
trust — to accumulate and increase the cor-
png until the termination of said trust, or
should they distribute said three-fifths in-
come as it accrues? If the latter is correct,
to whom and in what proportion should It be
paid?
(3) In case said Nettle B. Rice should not
be living at the time of the termination of
said trust, would her children, if any, take
collectively one-fourth or two-fifths of the
corpus, and would the other three children
of the testator — ^his three sons — ^If then liv-
ing, each receive one-fourth or one-fifth of
said estate?
(4) Would said trust terminate at once in
case said Ward E. Butler should die before
reaching the age of 2S?
[1,1] The primary and most important
question to be determined is whether the eq-
uitable estates in remainder are vested or
contingent. It will therefore be convenient,
in the first Instance, to designate the partic-
ular features which serve to distinguish a
vested remainder from a contingent remain-
der. The distinguishing feature of a vested
remainder Is that there shall be a person or
persons In being, ascertained and ready to
take possession whenever and however the
preceding estate may determine. In such
case the interest vests at once, but the en-
joyment of it is postponed. In the case of a
contingent remainder, whether or not any es-
tate shall vest in either right or possession,
or who shall take it, depends on a future con-
tingency. In such case not only the time of
enjoyment, but the right to enjoy, is uncer-
tain.
[3] In applying these definitions to the
question which we are now discussing, It
most also be borne in mind —
"tiat the law favors vesting very strongly, and
will not regard a remainder as contingent, in
the absence of very decisive terms of contin-
jtency, unless the provisions or implications of
the wiU clearly require it, and that words ex-
pressive of future time are to be referred to
the vesting in possession, if they reasonably can
be, rather than to the vesting in right." In re
Kenyon, 17 R. I. 149, 20 Atl. 294; Ross v.
NetUeton, 24 R. I. 124, 127, 52 AtL 676.
In Storrs v. Burgess, 29 R. I. 269, 273, 67
AtL 731, 732, this court said, in qnoting with
approval from other authorities:
"Since contingent remainders have been rec-
ognized, the line between them and vested re-
mainders is drawn as foUowB: A remainder is
vested in A. when, throughout its continuance,
A., or A. and his heirs, have the right to the
unmediate possession, whenever and however the
preceding estates may determine," citing John-
son V. Edmond, 65 Conn. 492, 499, 33 Atl. 503 ;
Starnes v. Hill, 112 N. C. 1, 9, 16 S. E. 1011,
22 L. R. A. 598. "The uncertainty which
■naJces a gift contingent may be in the capacity
of the devisee to take, or in the hapt>ening of as
event upon which the gift is conditional/'
[4] The portions of the wiU of John J.
Butler touching the matter of remainders
providing that the trustees pay over the net
Income are as follows:
"To my wife during her life three-fifths and
to my said daughter Nettie during her life two-
fifths. • • • On the death of my said wife,
and when my said son Ward shall have reached
the age of twenty-eight years, I hereby direct
and empower my said trustees to terminate said
trust and distribute all my said estate, two-fifths
to my said daughter Nettie and, one-fifth each
to my said three sons, to each of them, their
heirs, administrators and assigns forever, free
from all trust and obligation, giving to my said
trustees, discretion as to the substance and man-
ner of such distribution."
From this language, taken by Itself, it
could be easily determined that the remain-
ders vested. The estate was certain and there
were persons in being at the testator's death,
ascertained and ready to take possession
whenever the preceding estate should come
to an end; that is, on the death of the tes-
tator's wife and when the son Ward B. But-
ler should reach the age of 28 years. The
delay would not have postponed the vesting,
but only the enjoyment The daughter, Net-
tie B. Rice, would have taken a vested re-
mainder in two-fifths and each of the three
sons a vested remainder in one-fifth of the
corpus, to come Into their possession at the
termination of the trust.
Storrs V. Burgess, supra, is similar to tbe
case at bar In that two things must happen
before tbe remainder vested in possession;
that is, that the .wife should die and the
daughter tOiould attain the age of 24 years.
In the case at bar the wife must die and the
son Ward reach the age of 28 years. The
court held in Storrs v. Burgess that the
daughter was given a vested remainder on
the testator's death. See, also, Staples v.
D'Wolf , 8 H. I. 74 ; Kelly v. Dike, 8 R. I. 436 ;
Rogers v. Rogers, 11 R. I. 88; Clarkson v.
Pell, 17 R. I. 646, 24 AO. 110; Spencer v.
Greene, 17 R. I. 727, 24 AtL 742 ; Morgan v.
Morgan, 20 R. I. 600, 40 Atl. 736.
[6] It is reasonably certain in view of the
authorities cited that we would be Justified
in holding that, under the provisions of the
will, last above quoted, the remainders were
vested. There is, however, a further provi-
sion in the will which must be considered in
this connecti(m. The testator goes on to say :
"If, however, my said daughter Nettie be not
then living, the then trustee shall distribute all
my estate equally, share and share alike, to my
children, their heirs, administrators and assigns,
the share of any deceased child to go to the heirs
of the body of said child, if any, the children of
Nettie, if any, to take their mother's share."
Do these words change the situation and
make the remainder contingent instead of
vested? They do not change the paLrties who
would take at tbe expiration of the trust, ex-
cept that it gives to Nettle's children. If any,
in case of her death the mother's share and
changes the proportion of tbe estate whldi
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each remainderman .wonld take. There seems
to be sound authority that this wonld not
change an estate already vested into a con-
tingent estate. In 40 Cyc. 1670, the general
rule Is stated in this language:
"A gift over on death or failure of tiie benefi-
ciaries in remainder does not render the remain-
der any the less vested, although it may be con-
tingent from other reasons. A gift over on
death leaving issue does not render the estate
of the first taker contingent, and a gift to others
on death without issue does not render the prior
estate contingent; but the gift over on death
without issue will itself be contingent"
R, I. Hospital Trust Ca v. Noyes, 26 R. I.
323, 68 Atl. 999 : Here all the net income was
to <o to T. aftw be reached 21 and before he
reached 25, and upon his reaching 25 he was
to get the whole corpus. But If he died before
reaching 25, the corpus was to go to his issue.
X. died between the ages of 21 and 25 without
issne. The court held that Y. took a vested
interest in the fund, subject to being divested
If be died without issue under 25.
Storrs V. Burgess, 29 R. I. 269, 67 Att. 731 :
Here the whole income was to go to the wife
until the daughter reached 25 when one-half
of the income was to go to the daughter;
If the wife died before the daughter reached
26, the .whole income was to be held In trust
for the daughter until she reached 25, and
then the corpus was to be paid to her. If the
daughter died before she reached 25 leaving
issue, half was to go to her issue, etc. The
daughter died before reaching 25, without
issue, the mother living. The court held that
the daughter took a vested equitable re-
mainder in fee, subject to be divested by her
death under the age of 25 or before her
mother.
Hayes v. Robeson, 29 R. I. 216, 69 Atl. 686 :
Here there was a trust to apply the income
for the education of two grandsons ; if either
died before 21, the whole income to the other ;
if both died before 21, then over. The court
held that the grandsons took a vested inter-
est in the funds, liable to be divested by
death under the age of 21.
In the case at bar remainders are given
with the provision that if one of the re-
maindermen, Nettie, dies before the end of the
trust the proportion of the amounts giv^i
will be changed and her share will go to her
children. In the above three cases (R. I. Hos-
pital Trust Co. V. Noyes, Storrs v. Burgess,
and Hayes v. Robeson) the trust provided for
gifts over under somewhat similar contin-
gencies, and in all three cases the court held
that the remaindermen took a vested re-
mainder subject to be divested on the hap-
pening of the contingency.
We think that these provisions of the will
must be construed as giving to Nettle B.
Rice a vested remainder in two-flfths of the
corpus, subject to being decreased to one-
quarter In case she died before the termina-
tion of the trust, and to each of the three
sons a vested remainder In one-flfth of the
oorpas, subject to being increased to one-
quarter In case Nettle died before tbe trust
terminated. In reaching this conclusion we
are not hampered by anything in the will
which appears to us to be an Intention on the
part of the testator to make tbe remainders
contingent rather than vested.
[6] We now come to the consideration of
the question as to what disposition should
be made of the three-fifths of the Income of
the trust estate given to the testator's wife
for life, from the time of her death to the
expliration of the trust, that is, when the son
Ward shall have reached the age of 28 years
or shall have deceased prior thereto. Should
this income be allowed to accumulate and
be added to the corpus until the termlnatlott
of the trust, or should It be paid oat as it
accrues and if the latter to whom and In
what proportion? The general rule is stated
in 40 Cya 1659, as follows:
"The ri);ht to accumulations of income direct-
ed by will may be vested, and tbe vested right
will attach to each new amount as fast as it
accumulates, and will, in general, be either
vested or c<niting«it accordug as the gift of
principal is vested or contingent."
In Rogers v. Rogers, 11 R. I. 38, the residue
of the estate was left in trust as a guaranty
for the payment of an income of ?3,000 to the
testator's wife for life, and after her death
to divide all tbe residue equally between the
trustee's eight children, and when tbe income
during the life tenancy exceeded the neces-
sary $3,000, it was held that the remainder
over was vested, and that the remaindermen
were entitled to the excess income during the
life tenancy. In discussiing the question of
accumulation or payment of the Income, the
court sold:
"Tbe will contains no traces of a wish to ag-
grandize a property which was already ample,
by mere accumulation, until tbe division ; and
the inference ia easily drawn that the testator
supposed that the income, instead of accumulat-
ing, would be enjoyed by the objects of his boun-
ty. Indeed, be probably had the idea that a
trust ordinarily means an arrangement by wldeb
the trnstee safely kepps the corpus of the prop-
erty, while the beneficiaries enjoy its income."
In Wakefield v. Small, 74 Me. 277, the tes-
tator directed his trustees to set aside from
the corpus $30,000, and to pay the whole
annual Income to his wife for life. If any
income from the corpus remained, he direct-
ed it to be divided equally among his chil-
dren until the youngest diild reached 21
years, and then the trustees were to divide the
unexpended residue set aside for the main-
tenance of the children, and also the $30,000
set aside for the support of the wife If she
was not then living. If the wife were living,
the trust estate of $30,000 was to continue
until her death, and then to be divided. She
died before tbe youngest diild reached 21.
It was held that upon the death of the wife
tbe $30,000 falls into the balance of assets,
the annual Income of which was paid to all
the children of testator, and each child re-
ceived tbe same proportionate part of tbe in-
come of the $30,000 that the will provided
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BUTLER ▼. BUTI.ER
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they should receive of the balance of the as-
sets ; the court saying:
"It is the opinion of the court that under the
will, upon the death of the widow, the applica-
tion of the income of the (30,000 to her use
during life having served its purpose, that sum,
the $30,000, fsUs into the balance of assets men-
tioned in tlie fourth section of the tenth clause
of the will, the annual income of which is to
be paid to all the children of the testator, 'each
receiving his or her equal share, until the young-
est of my said children that shall live to arrive
at the age of twenty-one years, shall arrive at
said age.' • • * Nothing indicates that the
testator intended the income to be invested and
accumulate during such a period."
The will under consideration falls to fur-
nlsb anything .which can be said to indicate
any wish or desire, on the part of the testa-
tor, that accTunulatioDa should go to Increase
the corpus of the estate and the disposition
of the whole Income under the trust would
seem to some extent to support the contrary
view. We think that the Income from the
three-fifths of the estate given by the testator
to his wife for life should not accumulate to
increase the corpus, but that it should be paid
as It accrues to the vested remaindermen,
Nettie B. Rice, Hayward M. Butler, D. For-
rest Butler, and Ward B. Butler In the pro-
portion of two-flfths thereof to Nettle B. Rice
and one-flfth each to Hayward M. Butler, D.
Forrest Butler, and Ward E. Butler.
[7] In the event that NetUe B. Rice should
decease prior to the termination of the trust,
leaving children, would such children take
one-fourth or two-flfths of the corpus of the
estate is the next question for consideration.
It would be but natural for the testator to
feel that his daughter would be less capable
than bis sons of earning an income, and it
is fair to presume that he may for that rea-
son have been desirous of favoring her to
Home extent In the disposition of his prot)-
erty. But, however that may be. It seems
reasonably clear from the will that he did
not desire to extend the same conslderaUon
to children that might possibly be born to
her In the future. In contemplation of the
decease of his daughter, prior to the ter-
mination of the trust, the testator provides
that:
"The then trustee shall distribute all my M|-
tate equally, share and share alike, to my chil-
dren, their heirs, administrators and assigns,
the share of any deceased child to go to the heirs
of the body of said child, if any, the children
of Nettie, if any, to take their mother s share.
This language seems to us to indicate an
intent on the part of the testator that in
tbe event of the death of his daughter, before
the termination of the trust, her children, if
any, should share equally with his three
itorta and take one-quarter of the estate.
We do not think that the testator, by the
words "the children of Nettle, if any, to
take their mother's share" intended that
Nettle's childr^i should take two-flfths of
tbe estate, but rather that they should take
the portion that would go to the mother upon
-the ba^s of an equal division of the estate
Into fhnr parts. Such Intent Is borne out
by the words which precede those above
quoted, "the then trustee shall distribute all
my estate equally, share and share alike, to
my chlldroi, their heirs, administrators and
We now come to the final question. Would
the trust terminate at once upon tbe de-
cease of Ward E. Butler before reaching the
age of 28 years?
[I] The whole object of the trust was to
protect the corpus of the estate during the
life of the testator's wife and until hte son
Ward became 28 years of age. Upon the
death of the son Ward, the wife having al-
ready deceased, there would not be anything
remaining upon which the trust could fur-
ther operate, and It would therefore termi-
nate. In Sammis v. Sammls, 14 B. L 123,
there was a provision that the trust should
continue until the youngest of three eons
should attain the age of forty years, and the
court held that the death of all three
before reaching that age would end the trust,
and said:
"This is because there is no reason for keep-
ing the trust or term alive, and it cannot be
kept alive until the arrival of the time named
for its termination, for that time never will ar-
rive. • • • The death of all the sons, there-
fore, before either of them attains the age of
40 years, will not defeat the remaindeiv, but
will only accelerate their taking effect in pos-
session.'*
Our conclusions may be specifically stated
as follows:
(1) That Nettle B. Rice on the death of
the testator took a vested remainder in two-
fifths of the corpus of the estate subject to
being decreased to one-fourth in the event of
her death before the termination of the trust.
(2) That Hayward M. Butler, D. Forrest
Butler, and Ward E. Butler on the death of
the testator each took a vested remainder
In one-flfth of the corpus of the estate subject
to be Increased to one-quarter in the event
that Nettle B. Bice should decease prior to
the termination of the trust
(3) That Nettie B. Rice should be paid two-
fifths, and Hayward M. Batler, D. Forrest
Butler, and Ward B. Butler one-fifth each of
Ot» thxae-flfths Income that would have been
payable to the testator's wife from the date
of her death to the end of the trust.
(4) That if Nettle B. Rice should decease
prior to the termination of the trust with-
out leaving issue the corpus of the estate
should be divided equally between her three
brothers Hayward M., D. Forrest, and Ward
El, but if Nettle should decease as aforesaid
leaving issue the corpus of the estate should
be divided Into four equal parts, one of
which should go to the child or children of
Nettle, and one to each of the testator's sons.
(5) That If the said Ward El. Butler should
not reach the age of 28 years the trust would
terminate upon his death, and the corpus of
the estate should be distributed as of the date
of his decease.
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The complainants may present to this
court, for approval, a decree in accordance
wltb this opinion.
(40 R. I. ««)
OARR V. CRANSTON PRINT WORKS CO.
(No. 5072.)
(Supreme Court of Rhode Island. Jane 19,
1917.)
1. Appeai. and Erbob «=>656(1)— Petition to
Establish Tbdth of Exceptions and
COEBECTNESS OF TBANBCBIPT— AFFIDAVIT —
RUUS OF COUBT.
Under rule 1.3 of the Supreme Court (62 Atl.
Ix), providing that every petition to establish
the truth of exceptions shall be verified by af-
fidavit accompanying the petition, setting forth
the rulings on which the exceptions are based,
and that every petition to determine the cor-
rectness of a transcript of testimony shall be ac-
companied by affidavit setting forth that the
transcript certified by the court's stencwrapher
is correct or incorrect, and. if incorrect, in what
particulars, etc., where defendant failed to com-
ply with the rule, and did not specifically set
out the rulings on which its exceptions were
based, and did not set forth that the transcript
was correct or incorrect, and, if incorrect, in
what particulars, plaintifTs motion to dismiss
defendant's petition to establish the truth of its
exceptions and the corrrrtness of the transcript
of evidence should be granted.
[EM. Note.— For other canes, see Appeal and
Error, Cent. Dig. (( 2826, 2828.]
2. Appeal and Error «=»656(1)— Petition
TO Establish Tbuth of Exceptions and
CORBECTNESS OP TRANSCRIPT— JURISDICTION
— Additional AmnAviTS.
Under mle 13 of the Supreme Court (62 Atl.
ix), concerning petitions to establish the truth
of exceptions and the correctness of transcripts,
if the Supreme Court has not acquired jurisdic-
tion by the steps taken within the 30 days next
after the filing of the bill of exceptions in the
superior court, it cannot acquire jurisdiction aft-
er the expiration of 30 days by_ the filing of ad-
ditional affidavits with petition to establish
truth of exceptions and correctness of transcript
of evidence.
[Ed. Note; — For other cases, see Appeal and
Error, Cent Dig. ff 2826, 2828.1
3. Appeal and Error «=>650(1)— Tbanscbipt
—Establishing Truth ob^— Rule of Coxjbt.
The Supreme Court would not deem it ad-
visable to change an apparently reasonable and
salutary rule relative to petitions to establish
the truth of exceptions and the correctness of
the transcript of evidence, which has been con-
sidered, explained, and enforced by the court in
numerous decisions, in response to the mere
allegation of a defeated litigant that its en-
forcement in his case will work an injustice.
[Bd. Note. — For other cases, see Appeal and
Error, Cent Dig. §{ 2826, 2828.]
Actica by Marlon Carr against the Crans-
ton Print Works Company. There was ^r-
dict for plaintur, and defendant filed motion
for new trial, which was denied, and filed Its
bill of exceptions in the office of the cleric
of the superior court On plaintifTs motion
to dismiss defendant's petition to estabUsh
the truth of Its exceptions and the correctness
of the transcript of evidence. Defendant's
petition to establish the tratb of its excep-
tions dismissed, and papers ordered to be re-
turned to the superior court
Flynn & Mahoney, of ProvidMice, for plain-
tiff. Herbert Almy, of Providence, for de-
fendant
BAKER, 3. This case la before the court
on plaintlfrs motion to dismiss the petition
of the defendant to establish the truth of its
exceptions and the correctness of the tran-
script of evidence.
This Is an action of trespass on the case
for negligence. It appears from the papers
in the case certified to this court that It was
tried before Mr. Justice Steams and a jury on
the 30th and Slst days of October, 1916, and
that a verdict was rendered for the plalntiCC
in the sum of |6,000. The defendant filed a
motion for a new trial, which was heard and
denied. Thereafterwards It duly filed a no-
tice of Its intention to prosecute a bill of
exceptions, its request for a transcript of the
entire record accompanied with a deposit of
the estimated fee therefor, and within the
time allowed therefor by the court the tran-
script of said record on March 24, 1917, and
said bill of exceptions on March 26, 1917,
were duly filed In .the office of the clerk of
said court
Owing to the election of Mr. Justice
Steams as a member of tbls court before
either of the dates last named, it became Im-
possible for him to perform the duties de-
volving upon him under section 19 of chapter
298 of the General Laws relative to the al-
lowance of the bill of exceptions and the
transcript
After the lapse of more than 20 days fol-
lowing the filing of said bill of exceptions
and within 30 days thereafter, to wit, on
April 18, 1917, the defendant filed in this
court Its said petition, in which It sets forth
the foregoing facts, and prays:
"That the truth of its exceptions be estab-
lished and the transcript of the evidence and
the rulings thereon and of the instructions to
the jury be allowed by this court as filed."
Attached to the petition was this affidavit :
"I, Herbert Almy, of the city and county of
Providence, in the state of Rhode Island, on
oath say I am the attorney of record in the case
of Marion Carr v. Cranston Print Works Com-
pany, and as such am familiar with the travel
of said case through the superior court; that
tSe statement of the travel of said case contain-
ed in the foregoing petition is true to the best
of my knowledge and belief. And I further
say that the exceptions contained in the bill of
exceptions in said petition referred to were duly
taken at the trial of said case before a jury and
noted by the judge who presided at the trial,
and said bill of exceptions,^ transcript of evi-
dence, etc., were duly filed in the office of the
clerk of said superior court within seven days
after notice of decision denying defendant's mo-
tion for a new trial. Herbert Almy.
"Subscribed and sworn to at Providence this
18th day of April, 1917.
"Charles H. McKenna, Notary Public."
The gronnds of the plaintiff's motion to dis-
miss are stated as follows:
"(1) Said petition is not verified by affidavit
accompanying the same, as required by rule 13
of this court (62 Atl. ix).
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"(2) Said d«fq»dant has not iet forth in its
petition the rulings npon which the exceptions
are based, as required by rule 13 of this court
"(3) Said defendant has not set forth in its
affidavit accompanying its petition the rulings
apon which the exceptions are based, as re-
quired by rule 13 of this court.
"(4) Said defendant has not accompanied its
petition to determine the correctness of its tran-
script of the evidence bjr affidavit setting forth
that the transcript certiSed by the court ste-
nographer is correct, aa required by rule IS of
this court.
"(5) Said defendant has not accompanied its
petition to determine the correctness of its
transcript of the evidence by affidavit setting
forth that the transcript certified by the court
stenographer is incorrect, and, if incorrect, in
what particular, as required by rule 13 of this
court"
So much of rule 13 of this court as Is per-
tinent to the questions now raised is as fol-
lows:
"Every petition to establish the truth of ex-
ceptions shall be verified by affidavit accompany-
ing the petition, setting forth the rulings upon
which the exceptions are based ; and every peti-
tion to determine the correctness of a transcript
of testimony shall be accompanied by affidavit
setting forth that the trauBcnpt certified by the
court stenographer is correct or Incorrect, as
the case may be, and, if incorrect, in what par-
ticular ; and the petitioner shall withiit 24 hours
after the filing of bis petition deliver to the
advprse party or his attorney of record a copy
of the same and of the affidavits,"
The petitioner In its brief admits :
"That the affidavit accompanying the petition
when filed did not specifically set out the rulings
npon which the exceptions were based."
It is also apparent by Inspection tliat said
affidavit does not set fortb:
•That the transcript • • * is correct or
incorrect, as the case may be, and, if incorrect,
in what particular."
The first question for consideration is as
to the effect of these omissions.
Tlie proTisitms regulating the prosecuting
of bills of exceptions are found in sections 17
to 22, inclusive, of chapter 298 of the Gen-
eral Laws (first enacted in May, 1905, as part
of tbe Court and Practice Act), and in cer-
tain rules of the superior and Supreme
Courts. In numerous cases litigants have
been held to a strict observance of this stat-
ute and these rules.
In HarUey v. H. I. Co., 28 B. I. 157, on
page 159, 66 Ati. 63, on page 65, tbe court
said:
"A strict construction of statutes relating to
bills of exceptions everywhere prevails. After
a litigant has had his day in a court of general
jurisdiction, with all the presumptions which
exist in favor of the decision of a jury instruct-
ed by an educated and experienced judge, if he
desires a review of tbe case in an appellate
court, he must apply for It in the time and in
the nianner prescribed by the statutes."
In Smith V. HaSkell Mfg. Co., 28 R. I. 91,
98, 65 Atl. 610, 611, It appeared that a liti-
gant bad failed to give the opposite party no-
tice of flUng his bill of exceptions within the
time required by rule 32 of the superior court
This court said :
"Upon the adoption of the rule so authorized,
tbe same became a part of the law of the state.
and governs the subject-matter to which it re*
lates, and cannot be ignored. As it is of statu-
tory origin, it can be changed, modified, or re-
pealed only in the manner provided by the stat-
ute. Obedience to its mandate became a neces-
sary step in the procedure to be taken in tiie
prosecution of liUls of exceptions."
And it held that it had no jurisdiction to
consider the bill of exceptions.
In Cole V. Davis Automobile Co., 33 R. I.
143, 80 Atl. 268, the petitioner, seeking to
establish the truth of his exceptions by peti-
tion, failed to show compliance with rule 13
of this court In delivering to the adverse
party a copy of his petition and the affidavits.
The court on page 149 of 33 R. L, page 270 of
80 Atl., after quoting from Smith r. Haskell
Mfg. Co., supra, the citation above given, said,
"This statement is equaUy applicable to the
rule under consideration in this case," and
dismissed the petition.
Vassar v. Lancaster, 30 R. I. 221, 74 Atl.
711, was heard upon defendant's petition to
establish the truth of tbe exceptions, and the
provisions of said rule 13 were considered, as
the petition did not ask to have the correct-
ness of the transcript determined, and there
was no affidavit as to its correctness or in-
correctness. Tbe court said (30 R. I. on page
225, 74 Atl. 712) :
"Although the question has not been raised
by the parties, still, as the jurisdiction of this
court in the matter depends upon the regularity
of the steps taken in bringing the exceptions
here, it is necessary to consider it"
And (30 R. I. on page 228, 74 AtL 713) it
also said:
"The defendant could have proceeded by peti-
tion, verified by affidavit, to establish the cor-
rectness of the transcript of testimony. He has
not done so, however, but has contented himself
with an attempt to establish only the truth of
the exceptions claimed. This leaves the truth
as to the rest of the proceedings at the trial un-
established."
And the petition was dismissed. See, also,
Paull V. Paull, 30 R. I. 253, 74 AO. 1016,
Mattesott v. Benjamin F. Smith Co., 30 R. I.
198, 74 Atl. 225, First Baptist Society v.
WethereU, 29 B. L 831, 71 AtL 66, McLean
V. Wheelwright, 31 B. L 562, 78 AU. 261,
and Beaule v. Acme Finishing Co., 36 R. I.
74, 89 Atl. 73, as further Illustrations of the
strictness with which the provisions for
prosecuting bills of exceptions have been con-
strued.
[1] As the defendant has failed to comply
with the provisions of rule 13, it seems ap-
parent that in conformity with tbe rules of
construction stated in the decisions above
cited the motion to dismiss should be
granted.
The defendant, however, raises one other
question. At the hearing on April 30, 1917,
on the motion to dismiss the defendant of-
fered two affidavits, which are called sup-
plemental affidavits, one made by its attorney
of record, the other by the court stenographer
reporting the case in the superior court, for
the purpose of covering the omissions in the
affidavit on file and to comply with the re-
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101 ATLANTIC REPORTER
(B.I,
quirements of rule 13. Tbe defendant urges
that this Is permissible, if not under tbe rule
as It stands, at all events by tbe exercise of
the power of the court to alter Its own rules
at will. Tbe citations from decisions of this
court above given make it plain that since the
passage of the Court and Practice Act this
court has uniformly held that Its Jurisdic-
tion as to bills of exceptions, and a tran-
script of testimony depends upon tbe regular-
ity of tbe steps taken In bringing tbe excep-
tions and transcript here, both as to time
and manner.
[2] Under tbe rule as it stands, If this
court bad not acquired Jurisdiction of tbe
case by the steps taken within the 30 days
next after tbe filing of tbe bill of excep-
tions In the superior court, it could not ac-
quire Jurisdiction after the expiration of
30 days by tbe filing of additional affidavits.
On April 30, 1917, more than 30 days bad
elapsed since the filing of tbe bill of excep-
tions on March 26, 1917. In some of said de-
cisions the court has said that rule 13 in
proceedings like these has the effect of a stat-
ute. Of course, the court has tbe power to
alter it as it has in fact once done. We
think, however, that it is by no means certain
that tbe court at this late day can so change
the rule as to give life and legality to the
steps already taken and to itself Jurisdiction.
[3] In any event we would not deem it ad-
visable to change an apparently reasonable
and salutary rule, which has been con-
sidered, explained, and enforced by the court
in numerous decisions, of which all the
members of the bar by the exercise of rea-
sonable care and diligence can readily In-
form themselves, tn response to the mere al-
legation of a defeated litigant that its en-
forcement in bis case will work an Injustice.
Tbe defendant's petition to establish tbe
truth of its exceptions is dismissed, and tbe
papers in tbe original case are ordered to be
returned to tbe superior court for Providence
county.
BRANIGAN V. LEDERER REALTY CORP.
et al. (two cases). (Nos. 5011, 5012.)
(Supreme Court of Rhode Island. July 3, 1917.)
Landlobd akd Tenant «=»ld4(l)— Injubus
TO TENANi^LiABii-rrY OP Landlord.
Where, in an action against a landlord for
injuries to a tenant from a fall due to the roll-
ing of a step nailed on the roof and on which
she placed her foot in order to throw out gar-
bage, it appeared not only that the leaso requir-
ed defendant to keep the roof in proper repair,
and that defendant or its agents knew of tbe
use made of the roof and the step, but that the
step had been moved by defendant's agent on the
day of tbe accident, and then replaced without
bemg nailed down, defendant was liable, regard-
less of whether plaintiff was on the roof by
the invitation, express or implied, of defendant,
or was a mere licensee, and though tho step and
the door leading to the roof had been placed
there by the owner from whom defendant leas-
ed the <»tire building.
[Ed. Note. — For other cases, see Landlord and
Tenant, Cent. Dig. H 630, 634-637.]
Exceptions from Superior Court, Provi-
dence and Bristol Counties; Elmer J. Bath-
bun, Judge.
Actions by Mary Branlgan and William B.
Branlgan against tbe Lederer Realty Cor-
poration and others. Verdict for plaintiffs,
and the defendant named excepts. Excep-
tions overruled, and cases remitted, with di-
rections.
Pblllp S. Knauer and George Hurley, both
of Providence, for plaintiffs. J. Jerome
Habn and Raymond P. McCanna, both of
Providence, for defendant
PER CURIAM. The above-mentioned cas-
es by order of trial court were tried together,
and resulted In a verdict against the Lederer
Corporation for tbe plaintiff Mary Branlgan
for $3,600, and for WlUiam B. Branlgan, her
husband, for $1,800, whifli latter verdict by
action of tbe trial court was reduced to $600.
The cases were brought to this court by tlie
defendant, tbe Lederer Corporation, by bill
of exceptions. In which objections are raised
to various rulings of the court, and more
particularly to the refusal of the trial court
to direct a verdict in favor of tbe said Leder-
er Corporation, and also to tbe refusal to
grant a new trial.
After a review of tbe record in this case
and upon consideration of the testimony, we
are of the opinion that there is sufficient evi-
dence to sustain tbe finding of the Jury and
the subsequent approval thereof by the trial
court.
The evidence shows that tbe roof In ques-
tion was tbe only place in the nature of a
yard which the plaintiffs, who were the oc-
cupants of tbe second story tenement, had.
On this roof were board walks and clothes-
lines runnin$r from one building to another,
wblcb had been there for a number of years
before plaintiffs occupied the tenement and
bad been used by former tenants. Some time
prior to the occupancy of the tenement by
the plaintiffs a window looking out upon tbe
roof and throu^ which tenants had formerly
passed in order to go onto the roof bad been
changed Into a door, and a wooden step had
been nailed to the side of tbe house between
tbe threshold of the door and the roof to
make the approach to tbe roof more con-
venient There is some question whether the
door and step were placed there by the
plaintiffs' landlord, or by tbe defendant, the
owner of tbe building from whom tbe plaiu-
tlffs' landlord leased the entire bulldiug,
with the exception of tbe roof, which was re-
served to the defendant. By tbe terms of the
lease it was the duty of the defendant to
keep the roof in proper repair. Assuming
that tbe defendant did not open tbe door in
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BEDDIITOTON r. OETCHXU<
123
quesUon and bnlld tbe step, It is clear that
the defendant or its agents knew of the use
made of the roof and tbe door and step refer-
red to. In attempting^ to go onto tbe roof in
order to throw some garbage into a garbage
r'an, which was kept there by the plaintiff,
she placed her foot on the step referred to.
The step rolled out from under her and she
had a severe fall. There was evidence which
would warrant tbe finding that this step,
which had been securely nailed to tbe side of
the bouse, bad been moved on the day of tbe
accident by the agent of the defendant, in or-
der that he might examine tbe roof for leaks,
and that it bad been replaced and left nnat-
tached to tbe bouse. If this is the fact, and
the plaintiff was injured as a result of tbe
Interference of the defendant's servant with
the Bt^, tbe Jury were warranted in finding
that d^endant was liable, and it is not ma-
terial whetber tbe plalntllt was on the roof
by tbe invitation, express or Implied, of tbe
defendant, or even if she were a mere li-
censee. She was lawfully on tbe roof, and as
held in tbe case of Knowles v. Exeter Mtg.
Co., 77 N. H. 208, 90 Atl. 970 (1914):
"The defendant, having assumed to act to-
ward a known situation, was bound by the
usual rule of reasonable conduct"
Tbe statement of tbe law to tbe Jury by
the trial judge was clear and correct, and
the damages awarded are not excessive.
We find no reversible error in the case.
The defendant's exceptions are overruled
in each case, and the cases are remitted to
the superior court, with direction to enter
Judgment for the plaintiff Mary Brantgan
upon the verdict and to enter Judgment for
the plaintiff William B. Branigan upon the
verdict as reduced by tbe remittitur.
<40 R. I. 483)
REDDINGTON v.
GETCHELI* (No. 4926.)
(Supreme Court of Rhode Island. July 6, 1017.)
1. NKGUOEKCE <e=»l 30(26) — CONTBIBDTOBT
Neguokkce— Question foe Juity.
In action for death of plaintiff's intestate
from overturning of his automobile in a gully
on defendant's land, whether deceased was neg-
ligent in driving his automobile outside the trav-
eled part of the highway on defendant's land
was tor the jury.
[Ed. Xote.— For other cases, see Negligence,
Cent Dig. §S 286, 333.]
2. Tbial €=>14(K1)— Coubt and Jury.
Credibility of witnesses is for the jury, and
not for the judge presiding.
(Ed. Note.— For other cases, see Trial, Cent.
Dig. f 334.]
3. Tkial «s»171— Direotiro Vkbdiot.
A justice may not direct a verdict in ac-
cordance with what he thinks is the preponder-
ance of the evidence.
[Ed. Note.— For other cases, see Trial, Cent
Dig. { 306.]
4. Trial <&=»1C8— Directino Verdict.
Although on motion for new trial a judge
may, and should, consider tbe credibility of wit-
iips^cs and preponderance of evidence, he should
direct a verdict only when there is no legal evi-
dence justifying a contrary verdict
[Ed. Note.— For other cases, see Trial, CJent
Dig. §{ 341, 876-380.]
5. Neoltoencb i8=»136(15) — Questions rOB
JUBT.
In action for death of plaintiff's intestate
from overtnming of his automobile by a gully
on defendant's land, the extent of the permission
or invitation of defendant and his predecesisor
in title for the public use of a street on his land,
near or on which deceased was driving, was
for the jury.
[Ed. Note.— For other cases, see Negligence.
Cent Dig. f 319.]
6. NzoLiQENCE «=>32(1) — DxJXT or Lamd-
OWNEB.
If the owner of land by invitation, express
or implied, induces a person to come upon his
land and to cross over it, he must use ordinary
care to keep that part of the land, to which such
person is invited safe for the passage.
[Ed. Note.— For other cases, see Negligence,
Cent Dig. { 42.]
7. Nbougxncx «=3l36(15) — QlTSRIONa vob
JUBT.
In action for death of automobile driver,
whose automobile was overturned at night in
gully on defendant's land, whether defendant's
implied invitation to use the highway on his land
was limited to daytime because, by ordinances,
an adjacent parkway was open to the public
only between sunrise and sunset was for the
Jury.
[E:d. Note.— For other cases, see Negligence,
Cent Dig. { 319.]
Exceptions from Superior Court, Provi-
dence and Bristol Counties; John W. Swee-
ney, Judge.
Action by Maiy B. Reddlngton against
Waldo I. Getcbell. Verdict for defendant,
and plaintiff excepts. Exceptions sustained
In part and overruled in part, and case re-
mitted.
Reargnment denied 102 AtL 88.
Tilllnghast & (ToIIlns, Easton, Williams &
Rosenfeld, and Charles R. Easton, all of
Providence, for plaintiff. Mumford, Huddy &
Emerson and (Tbarles O. Mumford, all of
Providence, for defendant
SWEETLAND, J, This Is an action
brought under tbe statute to recover dam-
ages for tbe death of tbe plaintiff's son,
Joseph Reddlngton, which death is alleged
to have been caused by the wrongful act of
tbe defendant Tbe case was tried before a
Justice of tbe superior court sitting with a
Jury. At the conclusion of tbe evidence said
Justice directed a verdict in favor of tbe de-
fendant. Tbe case is before us upon excep-
tion to said action of the Justice and upon
exceptions to certain rulings of the Justice
made in the course of said trial.
It appears that tbe plaintifTs s<hi Joseph
Reddlngton was, on and before tbe early
morning of September 30, 1913, the driver of
an automobile for hire in the city of Provi-
dence. The plaintiff claims that there was
a way, known as "Bangor street," laid out
over the defendant's land In said city, and
that the defendant, for a long time previous
to said September 30, 1913, had invited the
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124
101 ATLANTIC REPORTER
(R.I.
public to use said way. The alleged wrong-
ful act of the defendant consisted In negli-
gently permitting a gully or deep depression
to remain across tbe easterly portion of said
way, which gully extended beyond the line
of said way and on other land of tbe defend-
ant. Tbe existence of said gully was un-
known to Joseph Reddlngton. While said
Joseph was driving along said way, or across
land of tbe defendant to tbe east of and near
said way, shortly after midnight on Septem-
ber 30, 1913, the wheels of his automobile
went into said gully, said automobile was
overturned, and he was killed. It appears
that said way known as Bangor street was
50 feet In width. At tbe southerly end It
intersected, but did not cross, Chalkstone
avenue, a public highway of the city of Prov-
idence: from Chalkstone avenue It ran north-
erly for about 250 feet to the north line of
the defendant's land, and thence was contin-
ued as Rosebank avenue. In the trial of said
case and in the argument before us Rosebank
avenue has been spoken of as part of a pub-
lic park of the city of Providence known as
the "Pleasant Valley Parkway." Prom such
evidence as was introduced In the superior
court and certified to us it appears that said
Rosebank avenue for a considerable distance
beyond the northerly line of the defendant's
land was a highway of the city of Provi-
dence. Said Rosebank avenue from its
southerly end, at the north line of the de-
fendant's land, proceeds upon a curve toward
the northwest and then westerly in a straight
line to River avenue, a highway of the dty
of Providence. There are other highways of
said city which run into Rosebank avenue
from the north. Just before tbe occurrence
which caused his death Joseph Reddlngton
with five passengers in his automobile drove
snld automobile from the village of Centre-
dale through some highway and came upon
Rosebank avenue. Intending to go to Chalk-
stone avenue, and proceeded around said
curve in Rosebank avenue toward Bangor
street Said accident occurred Just after the
automobile came upon the land of the de-
fendant The defendant claims that while
on said curve Joseph Reddlngton left the
roadway and drove upon the land of the de-
fendant to tbe east of the way. The plain-
tiff claims that Joseph Reddlngton came
upon the land of the defendant within the
roadway of Bangor street, and that said
automobile was overturned by reason of Its
wheels going into said gully on Bangor street
The ordinance of the city of Providence with
reference to "Parks" was introduced In evi-
dence. Section 1, c. 410, of the Ordinances
of 1009, now section 7, c. 40, of the Ordinances
of 1914, Is as follows:
"Sec. 7. That portion of the Pleasant Valley
Park and parkway, which extends from Oak-
land avenue to Academy avenue, shall be open
to the public only from sunrise until sunset each
day."
Said Justice in directing a verdict In fa-
vor of the defendant said:
"I will grant tbe motion on two grounds—
tbe ground that the ordinance rendered tbe pass-
ing through the parkway between sunset and
sunrise illegal and therefore there can be no im-
plied invitation on the part of the defendant to
travel over that part of Bangor street Also on
the ground of contributory negligence of the
plaintiff in driving his automobile out of the
traveled part of the highway on to the sidewalk."
[1-4] We have frequently held that a ver-
dict should not be directed tor a defendant If
on any reasonable view of the testimony the
plaintiff can recover. Baynes v. Billings, 30
R. I. 53, 73 Atl. 625. After an examination
of the evidence we are of the opinicm that
said Justice was not warranted In directing
a verdict upon the second ground stated by
him. There was testimony upon which the
Jury might find that at the time the wheels
of the automobile first went into said gully
Joseph Reddlngton was driving his automo-
bile In the traveled part of Bangor street,
and not on the sidewalk thereof or on land
east of the sidewalk. No witness except two
of the women who were passengers In the au-
tomobile testifies that he was present at the
time of the accident. Certain witnesses for
tbe defendant, who examined the ground
near said gully after the accident testified
that they saw wheel tracks to the east of the
roadway, which wheel tracks they Inferred
were made by said automobile. From this
testimony and from the position of the auto-
mobile In the gully after the accident an In-
ference might be drawn that Just before the
accident the automobile was being driven
outside the traveled part of Bangor street.
Apparently in the opinion of said Justice
these drcnmstances produced a preponder-
ance of the evidence In favor of the defend-
ant upon that Issue. Witnesses for the
plaintiff, however, testified to their examina-
tion of the place shortly after the accident,
and state that wheel tracks In tbe roadway
which ran from the north to the edge of the
gully clearly appeared to them to have been
made by tbe automobile lying in the gully.
It was for the Jury to say from the testimony
whether wheel tracks of tbe automobile were
visible upon the ground, and to determine
what Inferences, If any, might properly be
drawn from their existence and location.
There was also before the Jury the testimony
of two witnesses who were In tbe car at the
time of tbe accident. Rose Marner and Jennie
Sief. These witnesses testified that the au-
tomobile was in tbe roadway at the time of
the accident, and that they could see the
road extending ahead of them in front of the
automobile. At the trial the defendant at-
tacked the testimony of Rose Marner on the
ground that she had made statements, soon
after the accident, which were inconsistent
with testimony given by her at the trial.
The defendant also criticized the testimony
of Jennie Sief, and claimed that her state-
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BEDDINGTON v. OETCHELD
125
ments regarding the accident were exagger-
ated and unreliable. Apparently said justice
did not place much value upon the testi-
mony of either of these witnesses. The ques-
tion, however, as to the credibility of wit-
nesses is, in the first Instance, for the Jury,
and not for the Judge presiding ; nor Is the
Justice warranted In directing a verdict In
accordance with what he thinks Is the pre-
ponderance of the evidence. Upon motion
for a new trial made by a party who Is dis-
satisfied with the verdict rendered by a Jury,
a Justice who presided at the trial Is Justified
In considering, and It is his duty to consider,
the credibility of witnesses and what, In his
view, is the preponderance of the evidence;
If he believes the verdict to be unjust, he
should set It aside and grant a new trial ; he
should not, however, direct a verdict upon
gudi grounds, but only upon the ground that
there Is no legal evidence which would Justify
a contrary verdict. Under our Constitution
and law, when the testimony is conflicting
the questions of the credibility of witnesses
and the preponderance of evidence must, in
the first Instance, be determined by a Jury;
as also they must be finally determined by a
Jury. Carr v. American Locomotive Co., 31
R. I. 234, 77 Atl. 104, Ann. Cas. 1912B, 131.
[S, I] We will now consider the first ground
given by said Justice for directing the verdict,
and also the claims of the defendant with
referaice to his duty In the premises. There
was evidence from which it might properly
be found that Bangor street was laid out
in the same manner as an ordinary public
street In that locality, with a sidewalk
slightly raised above the surface of the road-
way, retained by a curbing of edgestones,
with a paved gutter of regulation width;
that its roadway had a hard, even-rolled sur-
face, save that for a week or two before the
accident said gully had extended Into the
roadway; that upon a post at the westerly
comer of said street and Ghalkstone avenue
there was a sign of the same size as an ordi-
nary street sign, with the words "Bangor
Street" painted thereon; that said street
had remained In that same general condition
for about six years previous to the accident ;
that it was generally regarded as a public
highway by ■petaamt having occasion to use
It; that It had been constantly used, both
by day and at night, by persons desiring to
pass back and forth from Ghalkstone avenue
to the Pleasant Valley) parkway and to sec^
tions at the dty lying to the north of said
parkway; that the defendant and his prede-
cessor in title had never given notice to the
public, by signs or otherwise, that Bangor
street was a private way, or that free pasr
sage «jver It was not permitted by the owners.
The existence of some of these conditions tes-
tified to by the plalntifTs witnesses was de-
nied by the defendant The evidence pre-
sented proper Issues to be submitted for the
determination of the Jury as to the extent of
the permission or the invitation given by the
defendant and his predecessor in title for the
public use of said Bangor street The de-
fendant had been the owner of the premises
for more than a year before the accident,
and he must be held to know of the public
use whldi was being made of said street
by day and at night If the evidence pre-
sented by the plalntUt wlilch we have set
forth above was believed by the Jury, It may
be found that the owner knew that the condi-
tion In which he maintained this way creat-
ed the natural belief in the public that It
was Invited to use the way. From these
drcumstances there may be found an tm-
plied Invitation from the defendant to the pub-
lic to continue the use of Bangor street in
the manner In which it had been used tor
six years at least before the accident. If
the owner of land by Invitation, express or
Implied, Induces a person to come upon his
land and to cross over it, he must use ordi-
nary care to keep that part of the land, to
which sudi person is invited, safe for the
passage. Sweeny v. Old Colony R. R. Co., 10
Allen (Mass.) 368, 87 Am. Dec. 644; Holmes
V. Drew, 151 Mass. 578, 25 N. E. 22 ; Furey
V. N. T. R. R. Co., 67 N. J. Law, 270, 61 Atl.
505 ; Barry v. N. Y. R. R. Co., 92 N. T. 280,
44 Am. Rep. 377.
[7] Said Justice most have held as a mat-
ter of law that because, by the ordinances of
Providence, the Pleasant Valley parkway
was open to the public only between sunrise
and sunset any implied invitation of the de-
fendant for the public use of Bangor street
was limited to th^ same period. We do not
agree with that conclusion of the Justice.
Whatever may have been the status of a per-
son while he was in said parkway, between
sunset and sunrise, the duty of the defendant
would remain unchanged to use reasonable
care for the safety of a person whom he had
expressly invited after sunset and before
sunrise to pass out of said parkway onto
Bangor street or to pass across Bangor street
and into said parkway. An implied Invita-
tion may be as broad and unrestricted as any
which might be expressed, if from the cir-
cumstances it appears to be unlimited. The
invitation which the law might Imply in this
case would arise because It was found that
Bangor street had for years been maintained
by its owners with the appearance of an open
public highway at night as well as in the
daytime ; that the defendant knew that said
way was being used at all hours by many
persons who desired to pass across said park-
way to the highways at the north of it ; that
the defendant from these circumstances and
by his acquiescence in such unlimited use
led the public to believe that they were Invit-
ed to so use It If such conditions are
found — and nothing is found in the conduct
of the defendant to limit the invitation to be
implied therefrom — a person who came upon
said way In response to such Implied invita-
tion is In no different position from one who
has been expressly invited by the defendant
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126
101 ATLANTIC REPORTER
(R.L
Tbe defendant claims both thnt the evidence
offered by him and the circumstances shown
to exist there rebut the Implication of Invi-
tation and also it any Implied Invitation
pould be found it was clearly restricted to the
hours when the parkway was open to the
public. Such ertdence raises Issues which
should have heea submitted to the Jury.
As the evidence stands before us, however,
the oi-dlnance of the city of Providence with
regard to Pleasant Valley parkway is Im-
material. It appears that Bangor street did
not extend from Chalkstone avenue to a
drive of the Pleasant Valley parkway, but to
Rosebank avenue, a public highway. The de-
fendant Introduced evidence which shows
that in 1906 one Frederick B. Shaw enter-
ed into a contract with the city of Provi-
dence ; one of the provisions of said contract
was that said Shaw should cause to be con-
veyed to the city a certain strip of land
shown on a plat annexed to said contract
"for highway purposes" ; that in compliance
with said agreement on the part of said Shaw
the Valley C!ompany, a corporation of which
said Shaw was president, did convey to the
city of Providence said strip of land. One of
the provisions of this deed with reference
to said strip was as follows:
"Said strip is hereby conveyed for the especial
purpose of being used and Improved as a high-
way and for no other use or purpose whatever."
Said deed was approved as correct In form
and satlsfactorj' by the assistant city so-
licitor of Providence, and said deed was duly
recorded. It appears by plats Introduced in
evidence that said strip so conveyed to the
city of Providence for a highway Is that part
of Rosebank avenue which extends from the
north line of Bangor street about 700 feet
to another portion of Rosebank avenue which
runs into River avenue, a public highway.
This is the only e\'ldeuce with relation to
Rosebank avenue which we find among the
papers certified to us. It does appear In
the transcript of evidence that the defendant
Introduced and read to the jury a resolution
of the city council dedicating certain lands
for park and parkway purposes and provid-
ing for the care of Pleasant A'alley parkway,
and also Introduced certain plats showing
the extent of Pleasant Valley parkway. By
stipulation of counsel said resolution and
l>lat8 were withdrawn from the papers In the
case at the close of the trial. Whether the
resolution and plats so withdrawn throw
light upon the present condition of Rosebank
uveuue we do not know. If Rosebank av-
fnue is a public highway running through
said park the first ground upon which said
Justice directed a verdict has no foundation
In fact. If said Rosebank avenue is not a
public highway, but a part of said Pleasant
Valley parkway, from the facts which tbe
Jury might find from the testimony. It can-
not be siUd as a matter of law that any im-
plied invitation of the detendant for the
public use of Bangor street was limited by
the terms of the ordinances of the dty of
Providence with reference to parks.
After examination we find no merit in any
of the other exceptions taken by the plain-
tiff. The plaintiff's exception to the direc-
tion of a verdict is sustained ; her other ex-
ceptions are overruled.
The case is remitted to the superior court
for a new trlaL
(iO R. I. 402)
NORMAN et aL v. PRINC3B et aL (No. 387.)
(Snpreme Court of Rhode Island. June 37,
1017.)
1. WILLS <S=s>540 — OoNBTBUcnow — RasiDtnc
or Income.
A will directing that trustees pay the sum
of $20,000 annually to testator's wife and "di-
vide the residue of said net income * * * of
said trust estate into nine equal shares" showed
that it was testator's intent that payment of the
income to his wife should be personal to her,
and should not continue to her estate; and
hence, on decease of the widow, the annual
payments from the income to which she would
have been thereafter entitled had she lived fol-
lowed the destination of the several shares of
the residuary income.
[Ed. Note.— For other cases, see Wills, Cent
Dig. it 1164, 1302-1309.]
2. Wills iS=>603(1) — Constbuction— Poweb
OF Disposition.
A provision of a will that payment of a
share of the residuary income should be made
"as the trustees hereof for the time being in the
uncontrolled absolute discretion or pleasure of
said trustees shall see fit" created a valid and
absolute power of disposition ; tlie woixi "trus-
tee" being descriptive, and not controlling as to
his character in the disposition of such share.
[Ed. Note.— For other cases, see Wills, Cent.
Dig. i 1655.]
Case Certified from Superior Court, New-
port County.
Suit by Guy Norman and another, trustees,
against Abby Norman Prince and others, for
construction of will and for instructions.
Case certified. Instructions according to
opinion.
Baker & Splcer, of Providence, for com-
plainants. Eliot 6. Parkhurst and Edwards
& Angell, all of Providence (Walter F. An«eU,
qC Providence, of coons^), for certain re-
spimdrats. James B. lAttiefield, of Provi-
dence, guardian ad litem of minor defend-
ants. Royal H. Gladding, of Providence, rep-
resentative of conthigent interests. Robert
T. Burbank, of Providence, for re^)ondent
Dorothy P. N. Metcalt.
SWEETLAND, J. This is a suit In equity
brought by tbe trustees under the will of
George H. Norman, late of Newport, for the
construction of said will and for Instructions.
The questions involved relate to the con-
struction of the provisions contained In the
twelfth clause of said will. By said clause
tbe testator devises and bequeaths his re-
AssFor other casea sea wune topic and KBY-NUMBER In all Key-Numbered UlgesU and Indeze*
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NORMAN V. PRINCB
127
sidnary estate to Ws son George H. Norman,
Jr., and his heirs In trust By the terms of
the tmst the trustee Is directed to dispose of
the net Income of the trust estate as follows:
(1) To pay from said net Income the sum of
$20,000 annually to the testator's wife, Abby
D. K. Norman, In equal quarter yearly in-
stallments ; (2) to dlTlde the residue of said
net income into nine equal shares, and as of-
ten as once in six months to pay <me of said
shares to each of eight of the testator's nine
children, excluding from said provision the
testator's son Hugh K. Norman, and upon
the decease of each of sold elRht children to
pay the share of Income to which said child
wonld have been entitled as said child shall
by win appoint. In default of appointment,
to the lawful Issue of said child, and In de-
fanlt of appointment and Issue, to the testa-
tor's then next of kin, omitting and excluding,
howeTcr. the testator's son Hugh and his de-
scendants, if any: and (3) to pay the re-
fflalulng or ninth share of Income In whole or
in part at such time or times as the trustee
shall select to testator's said son Hugh or to
Htagh's wife or to any child or children of
Hugh or to any other person or persons
whomsoever, as the trustee for the time be-
ing In the uncontrolled absolute dl6cretl<Hi or
pleasure of said trustee shall see fit.
In said will the testator directs that upon
the decease of the survivor of his widow and
all of his nine children and when the young-
est living grandchild shall have reached 21
the whole principal of said trust shall be
divided by the trustee into eight equal shares,
said shares to be set apart so that they shall
awiertaln or relate to said eight children,
one share to each child, each share so ap-
pertaining to each child to be paid absolutely
and in fee simple, free from every trust, as
said child may by will appoint, in default
of appointment, to the lawful issue of said
child, and In default of appcdntment and
issne, to the testator's then next of kin; the
descendants of said Hugh, however, being
specifically excepted.
It was further provided in said will that said
George H. Norman, Jr., might at any time
or times appoint one or two persons to act as
trustee or trustees under said will, both with
him and after he should have ceased to act
as trustee by death or otherwise, and they
and the survivor ot them and every other
person appointed under the provisions of said
will should have every right, ixjwer, privi-
lege, and authority conferred by said will on
Geoi^ge 11. Norman, Jr., as trusted.
George H. Norman, Jr., duly qualified and
acted as sole trustee under said will until
February 13, 1908, upon which date. In ac-
cordance with the provision of the will, he
duly appointed his brothers Guy Norman and
Maxwell Norman as trustees to carry out
said trust On said Pebruary 13, 1908, the
said George H. Norman, Jr., died, and since
that date the said Guy and Maxwell Nor-
man, the complainants here, have acted and
are now acting as trustees. On October 30,
1000, the said Hugh K. Norman died, leaving
no issue. His widow, who was the sole bene-
fldaiy tinder his will, and who was duly ap-
pointed administratrix with the will annexed
of his estate, individually and as such admin-
istratrix has executed a release of all claims
to the estate of the testator, George H. Nor-
man. Abby D. K. Norman, widow of George
H. Norman, the testator, died on September
6, 1915. Certain of the grandchildren of the
testator have not yet reached the age of 21
years.
The present trustees and their predecessor
as trustee, said George H. Norman, Jr., up
to the time of the decease of the testator's
wiaow made the annual payments from in-
come to her In accordance with the provisions
of the will, and also, as directed, paid the
share of Income to each of the eight children
of the testator named In his will as afore-
said, the share of Income of George H. Nor»
man, Jr., being paid after his death to the
appointees under his will ; also said trustees
distributed said ninth share of income from
time to time In varying amounts and propor-
tions with the knowledge, consent, and ac-
quiescence of the defendants to the widow
and dilldren of the testator. Including Hugh
K. Norman and said George H. Norman, Jr.,
during their respective lives, and after their
respective deaths to the widow and surviving
children of the testator, to the widow of
Hhgh K. Norman, and to the appointees of
Income of said George H. Norman, Jr.
Upon the decease of the testator's widow
the question arose as to the future disposition
of the annual payments of $20,000 to which
she would be entitled if still alive, and also
the question arose as to the possible Invalid-
ity of the provision of said twelfth clause of
the will providing for the disposition of said
ninth share of income. In their bill the trus-
tees pray that their action in disposing here-
tofore of said ninth share of Income in ac-
cordance with the directions of the will be
approved, and they farther pray that the
court construe said will and determine the-
following questlcas: (1) To whom the anntial
payments of $20,000 directed by the twelfth
clause of said will to be paid "annually to
my wife In equal quarter yearly Install-
ments" from "the net Income, dividends, and
profits of said trust estate" became payable
(until the distribution of principal) upon the
decease of the testator's widow, said Abby
D. K. Norman ; (2) what disposition the trus-
tees are authorized and empowered to maKe
(until the distribution of principal) of "the
remaining [or ninth] share of the said nine
shares or parts" of the Income, dividends,
and profits of said trust estate.
The first question Involves a consideration
of whether upon the decease of said Abby D.
K. Norman the annual payments of income
to which she would have been thenceforth
entitled had she lived should: (a) Follow the
destination of the several shares of Income
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128
101 ATLANTIC HEPOUTER
(RI.
directed by the testator to be divided from
tbe "reeldue of said net Income, dividends,
and profits of said trust estate" ; or (b) fol-
low the estate of said Abby D. K. Norman
and be payable as her Intestate property to
her next of kin ; or (c) be deemed Intestate
property of Ueorge H. Norman and payable to
his next of Idn.
[1] In our oi^lon, upon the decease of the
testator's widow the annual payments from
the Income of $20,000 to which she would
have been thereafter entitled had she lived
followed the destination of the several shares
of residuary income. The trustees by the
twelfth clause of the will are directed to pay
"the sum of $20,000 annually to my wife"
and "to divide the residue of said net income
• ♦ ♦ of said trust estate into nine equal
shares." It was the obvious Intent of the
testator that the payment of Income to his
wife should be personal to her, for her com-
fort and support during her life, and should
not continue to her estate. The testator di-
rected the trustees after the annual payment
of $20,000 from the net Income of the trust
estate to his widow to divide the residue of
said net Income Into nine equal shares. The
residue Intended Is all that part of the net
Income which shall remain annually after
the payments directed have been made to
the testator's widow.
After the death of the widow the annual
payment to her of $20,000 ceased, and said
$20,000 each year falls into and should It-
self be regarded as part of the residue of
said net Income after all payments to the
widow have been made In accordance with
the provisions of the trust. In Weston v.
Weston, 125 Mass. 268, where the residue
was given to trustees to pay an annuity of
$1,000 to N. and L. during the continuance of
the trust, It was held after Wa death during
tlie continuance of the trust that the annuity
was not payable to her administrator. The
court sald:
"Tbe clause creating it [the annuity], being
A'ithout words of inheritance or succession, must
be construed as giving an annuity during
• • • the term of the trust. If (L.) should
live ao long, and, if she should not, for her own
life only."
In Bates v. Barry, 125 Mass. 83, 28 Am.
Rep. 207, where a testator had directed that
"five hundred dollars per year for ten years
be paid over to my niece A.," It was held
that upon the death of A. within the ten
years her administrator was not entitled to
further payment, the court saying:
"As there are no words of inheritance or suc-
cession in the bequest, it must lie construed as
giving an annuity for ten years, if tiie annuitant
should [live] so long ; and if slie should not, for
her life only."
See Butler v. Butler, 40 R. I. , 101 Atl.
116; Walcefleld v. Small, 74 Me. 277; Sand-
ford v. Blaise, 45 N. J. Eq. 248, 17 AU. 812.
[2] As to the second question presented by
the bill, we are of the opinion that the pro^
vision relating to the disposition of the ninth
share of income Is valid and amoimts to the
creation of an al>80lute power of disposition.
The will provides for the payment of said
ninth share of the residuary Income "as the
trustee hereof for the time being In the un-
controlled absolute discretion or pleasure of
said trustee shall see fit" Said provision
Imposes no trust or obligation with respect
to the disposition of said ninth share of in-
come. By the twelfth clause of said will the
testator's residuary estate is given to his
son Geoi^e H. Norman, Jr., in trust As
trustee the said George H. Norman, Jr., or
the trustees for the time being, are directed
to pay $20,000 of the net income of said trust
estate annually to the widow, to make divi-
sion of the residue of said income into nine
shares, and to pay eight of said shares to
persons definitely designated. From the very
broad language of the provision as to the
dl8i>osltlon of the said ninth share of net
income the testator's Intent can readily ba
found not to bequeath said share in trust for
Indefinite beneficiaries; but the provision
should be regarded rather as a bequest of
said share to the trustees with an arbitrary
power of disposition. The use of the words
"trustee" and "trustees" in this clause of the
will is not controlling as to his or their char-
acter in the disposition of said ninth share,
but said words must i>e regarded as descrip-
tive. In Glbbs T. Rumsey, 2 Ves. & B. 294,
the testatrix bequeathed certain estate, real
and per8(Hial, to two persons named upon
trust to sell; and, after making certain be-
quests out of the money derived from such
sale the testatrix, "proceeded thus, 'I give
and bequeath all the rest and residue of the
moneys arising from the sale of my estate
and all the residue of my p^^onal estate
after payment of my debts, legacies and fu-
neral expenses and the expenses of proving
this my will unto my said trustees and ex-
ecutors (the said Henry Rumsey and James
Riunsey) to be disposed of unto such person
and persons and in such manner and form
and in such sum and sums of money as they
In their discretion shall think proper and
expedient' " The Master of the Rolls held
that this provision created a purely arbitrary
power of disposition according to a discretion
which no court can either direct or control,
and not a trust for an indefinite purpose. Al-
though the testator in the case at bar has
coupled this power of disposition of a por-
tion of the income of the trust estate with
certain trust provlslops, we feel warranted
in construing this provision as we have In
accordance with th«t testator's obvious intent
See 5 Harvard Law Review, 380.
We accordingly approve the action of
George H. Norman, Jr., and of the complain-
ant trustees In the dii>posltlon which he and
they have made of wild ninth share of in-
come. We Instruct said trustees that the net
income of the trust estate arising after the
death of the testator's widow shall be di-
vided into nine equal shares, that eight oC
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McOINN T. B. H. OLAODING DBT GOODS CO.
129
said shares are to be disposed of in accord-
ance with tlie provisions of said twelfth
clause of the will, and that tlie remaining
share Is held by the trustees to be disposed
of by them in their discretion in accordance
with the power of disposition given to them
by the testator. We also find that the provi-
sl(Hi relating to said power of disposition is
valid.
On July 2d the parties may present to us a
form of decree in accordance with this
opinion.
(W R. I. S48)
McGinn t. b. h. gLiAdding dey goods
CO. (No. 5024.)
(Supreme Coart of Rhode Island. June IS,
1917.)
1. Landlokd A.ND Tenant «=»47— CoNDmoN
or Lbabe.
Where the lessor of a stable, prior to exe-
cution of the lease, stated that the lessee dry
fcoods company need not take the stable unless
it was high enough to accommodate any deliv-
ery wagons, the lessor, 15 days later, on execu-
tion and delivery to him of an unconditional
lease, might assume that the letting was com-
plete and unconditionaL
[£d. Note.— For other cases, see Landlord and
Tenant, Cent. Dig. fi 112, n3.]
2. Landlobd and Tenant <S=>231(6)— Condi-
tion or Leabr— Stjtficienct of Evidence.
In an action for rent by the lessor of a sta-
ble, evidence held insufficient to show that the
lease was executed and delivered on condition
that the stable entrance was high enough to ao-
commodate delivery wagons ordered by the lessee.
(Ed. Note. — For other cases, see Landlord and
Tenant, Cent. Dig. g§ 033, 984.)
3. Witnesses «=»37(1)— Knowucdob— Exxcu-
noN or Lease.
In an action for rent, where the officer who
signed the lease for defendant corporation died
before salt, testimony of a witness not present
at execution and delivery of the lease attempt-
ing to show that the person who signed the
lease signed in reliance on statements previously
made by the lessor at an interview between him
and the witness in the presence of the person
i)rho signed was incompetent and inadmissible.
[Ed. Note.— For other cases, see Witnesses,
Cent. Dig. iS 60, 83, 87.]
4. Evidence «=»441(4)— Pakol Bvidknok Af-
rsCTINO WRITINQ— IjEAHE.
In an action for rent of a stable, where
there was an unconditional defivery of the lease
by the lessee corporation to the lessor, evidence,
on behalf of the lessee, relating to statements
made by the lessor prior to execution and deliv-
ery of the lease, tending to show that the lessee's
obligation was conditional, was inadmissible as
varying a writing.
[Ed. Note.— For other cases, see Evidence,
Cent Dig. §{ 1736-1744, 2037.]
6. Landlobd and Tenant «=5>28(1)— Misrep-
BE5IENTATI0W BY LANDLOBD.
Where the lessor of a bam said that he
would "guarantee this bam is high enough to
carry any delivery wagon that ever
was built," the statement was not a misstate-
ment of fact within the lessor's knowledge, he
never having seen delivery wagons ordered by
the lessee dry goods company, and the agents of
the dry goods company negotiating the lease
knowing that he had no more actual knowledge
of them or their height than they had; the les-
sor's remark being merely dealers talk.
[Ed. Note. — For other cases, see Landlord and
Tenant, Cent. Dig. S| 82, 83.]
6. Landlobd and Tenant «=»109(5) — Sub-
bender BY Tenant.
The mere sending of the key to a leased sta-
ble by the lessee to the lessor without more was
not a surrender by the tenant and acceptance by
the landlord.
[Ed. Note. — For other cases, see Landlord and
Tenant, Cent Dig. { 865.)
7. Landlord anh Tenant «=>109(4) — Sub-
rendeb by Tenant— Acceptance — Belet-
TING.
Where the lessor of a stable, after the lessee
sent the key to him, relet to a third party with-
out notice to his lessee, without knowledge on
the lessee's part, and without its assent, the
reletting operated as an acceptance of a sur-
render by the lessee.
[Ed. Note. — For other cases, see Landlord and
Tenant, Cent Dig. f 364.]
8. Landlobd and Tenant 4=3232— Rent— In-
TEBEST.
A lessee liable for rent is liable for interest
at the rate of 6 per cent, from the date of ju-
dicial demand, that is, the date of service of
the writ; there having been no prior demand.
(Ed. Note. — For other cases, see Landlord and
Tenant, Cent Dig. |S 935-939.]
Exceptions from Superior Court, Provi-
dence and Bristol Counties ; WUlard B. Tan-
ner, Presiding Justice.
Action by Albert T. McGinn against the
B. H. Gladding Dry Goods Company. There
was a decision for defendant, and plaintiff
excepts. Exceptions sustained, and case re-
mitted to superior court, with direction to
enter Judgment for plaintiff In a sum stat-
ed, with interest.
Cooney & Cahill, of Providence, for plain-
tiff. Claude R. Branch and Edwards & An-
gell, all of Providence, for defendant
PARKHTJRST, C. J. This Is an action for
breach of a covenant to pay the rent cove-
nanted and agreed to be paid in a certain
lease from the plaintiff to the defendant cor-
iwratlon. The lease in evidence bears date
June 11, 1907, but appears to have been
signed by the parties on June 26, 1907, and to
have been acknowledged by the plaintiff be-
fore a notary public June 26, 1907, and to
have been duly recorded in Providence on
July 15, 1907. The premises are described
as "a certain stable at rear of No. 386 Foun-
tain street. In said city of Providence, com-
prising twenty (20) stalls and one (1) box
BtaU and all the floor space above the same."
The lease is in common form, containing the
usual covenants, and is for the term of three
years from July 1, 1907, to July 1, 1910. The
amended declaration in the first count alleges
nonpayment of rent in the sum of $1,158;
in the second count, alleges breach of the
covenant to keep the interior of the prem-
ises in repair and claims damages therefor.
No evidence in support of this second count
was offered, and It is therefore immaterial.
(bsf or odMr esses ■
101A.-«
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130
101 ATIiANTIC HEPORTBB
(R.I.
Defendant's first plea to first count says
that the lease Is not its deed. Defendant's
second plea to first count alleges payment
of rent up to July 12, 1907, and a surrender
of the premises to the plaintiff and his ac-
ceptance thereof on the 12th day of July,
1907. The suit was brought after the ex-
piration of the term, by writ of summons dat-
ed and served March 31, 1911. Thereafter,
Jury trial having been waived, the case was
tried before the presiding Justice of the su-
perior court in Providence without a Jury
September 27, 1916, upon the issues tender-
ed by the first count of the amended declara-
tion and the pleas thereto. September 29,
1916, the presiding Justice filed his decision,
in favor of the defendant, and thereafter in
due time the plaintiff prosecuted his bill of
exceptions to this court, and the case Is now
before us upon said bill of exceptions. The
exceptions alleged in the bill are six in num-
ber. Exceptions first to fifth. Inclusive, are
based upon the admission of evidence offered
by defendant and objected to by the plaintiff.
Kxception sixth is based upon the decision
of the Justice in favor of the defendant.
It appeared in evidence that negotiations
between the plaintiff and certain officers rep-
resenting the defendant corporation were be-
gun some time in June, 1907, looking to a
lease of the plaintiff's stable above describ-
ed to the defendant, and the plaintiff put In
evidence a certified copy of the recorded lease
above described. None of the witnesses on
cither side were able to fix the exact date of
such negotiations, but all admitted that they
were In June, 1907. We are left to infer that
these negotiations were about the llth day of
June, 1907, since that is the first date ap-
pearing in the lease, which was admitted to
have been signed and delivered by the par-
ties. It also appears that the lease was pre-
pared by plaintiff's attorney and sent to de-
fendant by plaintiff; and it appears by said
lease that the same was signed by both par-
ties and acknowledged by the plaintiff June
26, 1907. It is not disputed that the lease
was signed by the defendant's proper officer,
duly authorized, that he held it in his pos-
session about a week before returning It to
plaintiff, and that It was delivered to the
plaintiff by mail; but the defendant claimed
and attempted to prove that, although the
lease is absolute on its face, and was de-
livered to the plaintiff himself, it was nev-
ertheless executed and delivered upon the
condition that It was not to be binding upon
the parties, unless it later appeared that the
stable would permit of the entry therein of
certain new delivery wagons which the de-
fendant had ordered to be built for it, and
as to the exact height of which at the time
of the negotiations in June, 1907, the defend-
ant was not fully advised. It appears that
certain officers and employes of the defend-
ant, including William E. Aldred, then presi-
dent of the defendant and who afterwards
executed the lease, and Arthur Ij. Aldred,
then vice president, and the defendant's su-
perintendent and delivery clerk, went to In-
spect the plaintifTs stable, and there met the
plaintiff, presumably about June 11, 1907;
that they examined the premises very care-
fully, and found that the location and size
of the stable and its general accommodations
were quite suitable for their purpose; and
they admit that they needed to use the
stable at once and were very anxious to get
it It is claimed by the defendant's witness-
es and denied by the plaintiff that at that
time mention was made of the fact that new
delivery wagons had been ordered and not
yet received, and that It was a question
whether or not the entrance to the stable
was high enough to admit of the entiy of
these new wagons. And the defendant's wit-
nesses further claim that at that time the
plaintiff assured them, emphatically, with
certain profane words, that he would "guar-
antee this barn Is high enough to carry any
delivery wagon that ever was
buUt" And Mr. Arthur L. Aldred testifies
that after considering all other phases of
the situation he (A. L. Aldred) said, "All
right; under those conditions, barn is high
enough to carry delivery wagons, we will
take it;" and that McGinn then said, "All
right, you don't have to take it, if it isnt
because it wouldn't be any good to you."
All of this Is denied by the plaintiff. This
Interview is the only interview which the
evidence shows to have taken place betwewi
the plaintiff and the defendant's officers with
reference to the negotiations for a lease and
prior to the execution thereof and Its deliv-
ery to the plaintiff by mail on or about June
26, 1907. The admission of the testimony re-
cited above from several witnesses In sup-
port of the defendant's claim that the lease
was executed and delivered by the defendant
upon condition as above set forth was object-
ed to on behalf of plaintiff, and exceptions
thereto were duly taken, and these form the
basis of exceptions first to fifth, inclusive, in
the bill of exceptions.
The evidence shows that the defendant was
In great need of this stable, and that by its
agents and servants it took possession of
the stable immediately after the above Intet^
view to clean up and make repairs and placed
several horses in the stable without waiting
for the execution of a lease ; that thereafter
on the 26th of June, 1907, the lease without
any condition was executed and acknowledg-
ed by plaintiff, and was executed by defend-
ant and delivered to plaintiff as above shown,
and that, without any protest or mention as
to the absolute and unconditional terms of
the lease, the defendant continued after the
execution and delivery of the lease to oc-
cupy and use the premises for several horses
and at least one wagon; that nothing was
said at the time of execution and delivery
by defendant or any one on its behalf to
plaintiff about any conditional execution and
delivery. It thus appears that some two
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weeks elapsed between the interrlew on or
about June 11, 1907, and the execution and
delivery about June 26, 1907, during which
time, for all that appeared to the plaintiff,
the defendant might have ascertained that
the height of the stable entrance was suffi-
cient for the entry of the new wagons.
There is nothing to show that at the time
when the unconditional lease was executed
and delivered between the parties, the plain-
tiff had any idea that the delivery then made
by the defendant was supposed by the de-
fendant to be conditional. The talk about
the height of the delivery wagons was pre-
liminary. It was within the defendant's
power to' have ascertained their exact height
and to have Informed itself in the time which
Intervened whether the stable entrance was
high enough to admit them. The plalntlfT
had no knowledge or means of knowledge as
to the height of the wagons.
[t] Assuming that the plaintiff in fact said
on or about June 11, 1907, all ttaat the de-
fendant's witnesses testified, plaintiff might,
on June 26, 1007, upon the execution and de-
livery to him of the unconditional lease, as-
sume that the letting was complete and un-
conditional. There was no meeting of the
minds of the parties upon the subject of con-
ditional letting at the time of the execution
and delivery of the lease. It further appears
that defendant continued to occupy the stable
with horses and at least one wagon after
the execution and delivery of the lease up
to some time in July or August, 1907, which
does not definitely appear. It further ap-
pears that at some date not definitely fixed
between the 10th and 15th of July, 1907, one
of the new delivery wagons arrived in Provi-
ilence, and that on such arrival an attempt
was made to put the new wagon Into the
stable, and It was found after several trials
that the height of the entrance was not suf-
ficient to allow the wagon to enter; that
thereupon the representatives of the defend-
ant, Mr. A. L. Aldred, Mr. Steed, the super-
intendent, and Mr. JosUn, superintendent of
delivery, who bad been present at the stable
when it was attempted unsuccessfully to
place the new wagon therein, went ttack to
the store of the defendant, and talked the
matter over with Mr, W. E. Aldred, presi-
dent, and decided that they could not use
the stable for the new wagons ; that within a
day or two afterward, Mr. A. L. Aldred and
Mr. Steed again went up to the stable and
saw the plaintiff there and told him they
conld not get the new wagons Into the stable,
and so that the stable would be useless to
tbe defendant, and th^ would have to give
it up. Both Aldred and Steed In substance
testified that tbe plaintiff said:
"That is all right. * * * I don't ask you
to take anything • • » tliat you can't use.
• • • That wiU be aU right"
It further appears ttiat the stable was at
that time, and had been since some time in
June, In continuous use by the defendant, as
above set forth, for its horses and one wag-
on; that this last interview was about the
15th day of July, 1907; that the plaintiff
went on that day to Ills attorney, who ad-
vised him to put his lease on record, and who
wrote to the defendant, at plaintiff's request,
a letter to the effect that he would bold the
defendant on the lease; that tbe defendant
did not at this last Interview with plaintiff
on or about July 15, 1907, at once abandon
the premises, but continued to occupy them
for a time which is nowhere definitely fixed
by the evidence. It does appear, however,
that the defendant without any letter or no-
tice sent to the plaintiff the key of the stable
by registered mail received by tbe plaintiff
on the 8th day of August, 1907; that the
plaintiff thereafter without further com-
munication with or notice to defendant rent-
ed the stable for one month from September
1, 1907, for $30; that October 21, 1907, he
sent a bill to defendant for rent for three
months, July 1-October 1, 1907, $117.99,
and gave defendant credit for amount re-
ceived for September $30, balance $87.09. It
does not deflnltdy appear that this bill was
ever received by defendant or that any reply
thereto was ever made, but it does appear
that this bill was not paid and notlilng was
ever paid under the lease by the defendant
It further appears that plaintiff again rented
the stable to another party for five months,
February-June, 1908, inclusive, and that he
received therefor $150; and that there was
no further rental during the period covered
by the lease.
Upon this state of the evidence the defend-
ant claimed: (1) That then the delivery of
the lease was conditional as above set forth ;
(2) that even If this were not so found, there
was a surrender by the defendant and ac-
ceptance thereof by the plaintiff, in fact on
or about July 15, 1907 ; or, if that were not
found to be the fact, that in any event there
was a surrender and acceptance by operation
of law, by reason of the al)andonment of the
premises by the defendant, the sending; of
the key to the plaintiff August 8, 1907, and
the snbsequ«it letting of the property by the
plaintiff on September 1, 1907, to a third
party. The presiding Justice of the superior
court, in his rescript filed September 29,
1916, stated that he was of the opinion "that
tbe preponderance of the evidence shows that
the lease was never actually executed, but
was to take effect only upon the condition
that the premises proved to be high enough
to admit the defendant's new delivery wag-
ons. It turned out that the premises would
not admit said new delivery wagons."
[2, S] This court Is not able to agree with
this finding of fact From our analysis of
the evidence above set forth, we are unable
to find that the lease was executed and de-
livered upon any such condition. It is not
disputed that it was executed and delivered
by a duly authorized officer of the defendant
corporation, Its president, WilUun E. Aldred,
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and sent by mail to plaintiff ; that ttie lease,
unconditional upon its face, was in defend-
ant's possession for alwut a weelc l)efore it
was delivered to the plaintiff, and it is not
clnimed by any one tliat anything was said to
ttte plaintiff at tbe time wben it was deliv-
ered to him that any condition was Insisted
upon. It further appears that William B.
Aldred died some time prior to the institu-
tion of this suit, and it does not appear that
any person was present at the time he sign-
ed the lease except the witness to his sig-
nature. It was attempted to be shown
through tbe witness Arthur Ij. Aldred that
his brother signed the lease in reliance upon
the statements theretofore made at the in-
terview above recited (some time l)etween
June 11 and June 26, 1917) between the plain-
tiff and this witness in presence of said Wil-
liam B. Aldred. This testimony was objected
to on behalf of plaintiff, on the ground that
this witness, not l>elng present at the execu-
tion and delivery of the lease, could not
know whether or not the lease was delivered
upon any condition. We are of the opinion
that this evidence was incompetent and In-
admi.%slble, and should have l>een excluded.
Exception third, which is based upon the
admission of this testimmy, is sustained.
[4] We are also of the opinion In view of
our analysis of the testimony above that ex-
ceptions first, second, fourth, and fifth must
be sustained. These all relate to the admis-
sion of evidence on behalf of the defendant
over plaintiff's objection relating to the state-
ments made by plaintiff at the interview in
June prior to tbg execution and delivery of
the lease. In view of what we have said as
to the unconditional delivery of the lease on
or about June 26, 1907, all these statements
were Immaterial and Inadmissible in accord-
ance with the general rule stated in Abney
V. Twombly, 39 R. I. 304, 317, 97 Atl. 806
et seq., where it was attempted to prove by
evidence of certain prior oral conversations
and statements between the parties to a sale
and conveyance of land that the grantor had
In fact agreed to convey a certain exclusive
right of way as appurtenant to the land
afterwards conveyed, although the deed itself
did not by Its terms convey an exclusive
right of way. As to the evidence this court
said (39 R. I. S18, 97 Atl. 812) :
"We think that all this evidence was imma-
terial and incompetent. The deed Is in no way
ambifmous on its face, and is to be construed
without reference to any prior understandings or
promises on the part of the Krantor or his agent;
and parol evidence as to such matters is not to
be considered."
The general rule that contracts In writing
shall not be modified by testimony relating
to prior oral conversations, etc., is well
stated in Putnam Foundry & Machine Co.
V. Canfield, 25 R. I. 648, 552, 66 AU. 1033,
1034 (1 Ann. Oas. 726):
"Tbe rule invoked * * * la a most salutary
one, and this court has nniformly adhered to it.
Gardner v, Chace, 2 R. I. 112 • Sweet v. Ste-
vens, 7 R. I. 375; Yaughan v. Ma8<«, 23 R. I.
348 [50 Atl. 390]- Martin t. Clarke, 8 R. I,
380 [5 Am. Rep. 586] ; Dyer v. Print Works,
21 R. I. 63 [41 Atl. 1015]; Watkins v. Greene,
22 R. I. 34 [46 Atl. 38]; Myron v. Railroad
Co., 19 R. I. 125 [32 Atl. 1651. It is based upoD
tbe common sense theory that, 'when parties
have deliberately put their engagements into
writing in such terms as import a legal obliga-
tion, without any uncertainty as to the object or
extent of such engagement, it is conclasivcly pre-
sumed that the whole engagement of the parties
and the extent and manner of their undertaking
was reduced to writing; and all oral testimony
of a previous colloquium between the parties, or
of conversations or declarations at the time
when it was completed or afterwards (as it
would tend in many instances to substitute a
new and different contract for the one which
was really agreed upon, to the prejudice, possi-
bly, of one of the parties) is rejected.' 1 GreenL.
Ev. (16th Ed.) S 276."
See, also. Wolf v. Megantz, 1S4 Mich. 452,
151 N. W. 622, Ann. Cas. 1916D, 1146 (lease) ;
Ryan v. Cot*e, 172 111. 302, 309, 50 N. B.
213; O'Malley v. Grady, 222 Mass. 202, 109
N. E. 829 (lease) ; Flndley v. Means, 71 Ark.
289, 73 S. W. 101; Caufleld v. Hermann, 64
Conn. 325, 30 Atl. 62; Naumberg v. Toung,
44 N. J. Law, 33L 43 Am. Rep. 380 Oease).
Very many cases have been dted by plaln-
titTs counsel In support of the same general
doctrine as applied to leases and other con-
veyances of real estate, as well as to other
contracts In writing. All of them have been
examined; but It would unduly extend this
opinion to dte and comment upon them.
Those which we have dted are typical cases,
and those of them which relate to leases axe
quite in point under the facts of this case.
This court Is not unmindful that there are
many cases relating to leases where It has
been held admissible to prove by oral testi-
mony that, at the time of delivery of a lease
even though delivered directly to the party
or parties thereto and not to a third party
in escrow, there may be such a conditicm Im-
posed by a contemporaneous oral agreement
as will prevent the lease from becoming
binding and effectual between the parties
until sudh condition has been fulfilled, and
that such condition may be proved by oral
testimony, even though the lease upon its
face is absolute. Several such cases have
been dted on behalf of the defendant, in the
attempt to support Its first defense that the
lease In the case at bar was delivered upon
condition.
[S] Hinsdale v. McCune, 135 Iowa, 682,
113 N. W. 478, cited for defendant, was a
suit for rent under a lease, where tbe de-
fendant pleaded and was allowed to prove
false and fraudulent misrepresentations of
facts within the plaintiff's knowledge as to
the suitability of the premises for defend-
ant's business, made by plaintiff at the time
of the letting as an Inducement to defendant
to take the lease. The proof of the fraud
was ample and uncontradicted, and the caso
was determined upon this point. In the case
at bar there was no fraudulent misrepresen-
tation of facts within plaintiff's knowledge,
which misled tbe defendant If the plaintiff
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Mid that he would "guarantee this bam is
high enough to carry any de-
ttvei? wagon that ever was built" (as daimed
by defendant's witnesses), that was not a mis-
statement of fact within plaintiff's knowl-
edge. He had never seen the intended new
delivery wagons of the defendant, and de-
fendant's agents knew that he had no more
actual knowledge of them or their height
than they had. His remark, as shown by
its very language, was no more than mere
"dealers' talk" (Handy v. Waldron, 18 R.
I. 567, 569, 29 Atl. 143, 144 [49 Am. St Rep,
791]), not worthy to be relied upon by pru-
dent business men. The case of Hinsdale v.
HcCune, supra, is not in point under the
facts of the case at bar.
Metzger v. Roberts, 26 Ohio Cir. Ct. R.
875, was a suit for rent where defendant
pleaded a contemporaneous parol agn^eement
made at the time a written lease was execut-
ed, by which the lease was only to be used In
organizing a corporation, and transferring
the same to It, and was under no dreum-
stnncea to be a valid lease between the origi-
nal parties. And it was further pleaded that
to allow the plaintiff to collect rent from
defendant would be a fraud on him under
the facts. Parol evidence of the oral agree-
ment was held admissible both to prove a
condition, and also to prove the fraud
pleaded.
Donaldson v. Uhlfelder, 21 App. D, C. 489,
was a suit to collect rent, wherein the de-
fendant was allowed to prove that at the
very time of the tender of the lease to him
be refused to accept it unless upon the ex-
press promise of the lessor to make certain
repairs; that the lessor then and there
promised to make the repairs and the de-
fendant then signed the lease and delivered
it to lessor's agent, and that the repairs were
never made; and it was held proper evi-
dence and a good defense.
Cartledge v. Crespo, 5 Misc. Rep. 349, 25
N. T. Snpp. 515, and Davis v. Jones, 17 C.
B. 62S, were cases very similar in legal ef-
fect to the two previous cases. There was a
contemporaneous oral agreement to r^air,
as a condition precedent to the validity of
the lease, and as an inducement to get it
signed. Some other cases are cited on the
same point on behalf of the defendant. Such
of them as are In any way applicable here
are similar In effect to those above set forth.
Some of them relate to contracts other than
leases, and in some of them the delivery of
the contract was expressly in escrow to a
third person.
It is enough to say that while we do not
now find it necessary to further discuss the
cases cited by defendant on this point, we do
And that such cases as support the proposi-
tion that a lease absolute on Its face and ac-
tually delivered between the lessor and les-
see may be shown by oral testimony to have
been delivered upon a condition precedent
not to become valid unless the condition is
fulfilled, are based upon fCicts showing that
such oral agreement was in fact contempo-
raneous with the delivery and shown by
competent evidence of witnesses knowing the
fact to be so, and to be the inducement
whereby the lessee at the time of the deliv-
ery was Influenced to execute the lease. We
are of the opinion that the evidence offered
that the lease in this case was delivered up-
on a condition as claimed by the defendant
fell far short of proving such conditional
delivery, and was Incompetent and inadmis-
sible for the reasons above set forth. The
plaintiff's exceptions based upon the admis-
sion of such evidence (exceptions first, sec-
ond, fourth, and fifth) are therefore sus-
tained.
[6] We now come to the question whether
there was at any time a surrender by the
defendant and an acceptance thereof by the
plaintiff. From our analysis of the evidence
above set forth, we are unable to find that
there was any surrender in fact by the de-
fendant In July, 1907, and consequently there
could have been no acceptance of surrender
at that time by the plaintiff. The defendant
continued to occupy the premises for such
purposes as it saw fit after it found that the
new wagons would not go into the stable.
There is no evidence to show just when it re-
moved its horses and other property from the
stable; and the only act of abandonment at
a definite time appearing in the record was
Its sending of the key of the stable to the
plaintiff by registered mall on or about Au-
gust 8, 1907. It does not appear that defend-
ant occupied the stable after that time. It
does definitely appear that the plaintiff no-
tified the defendant in writing on July 15,
1907, that he would hold it on the lease.
The key was sent by defendant to plaintiff
on August 8, 1907, without any letter or
notice, and plaintiff kept the key. There is
no evidence that plaintiff took possession of
the stable or did any act in relation thereto,
until September 1, 1907, when he rented It to
a third party without notice to defendant.
There is nothing to show that defendant in
any way gave its consent to such letting,
nor is there any condusive evidence that the
defendant ever received notice at any time
that the stable was let to other parties.
The mere sending of the key to the plain-
tiff without more has been frequently held in
this state not to be a surrender and accept-
ance ; and this is in accord with the authori-
ties elsewhere. Smith v. Hunt, 32 R. I.
326, 330, 79 Atl. 826. 35 L. R. A. (N. S.) 1132,
Ann. Cas. 1912D, 971, and cases dted and
cases infra.
The sole question now remaining is wheth-
er the reletting by the plaintiff on September
1, 1907, worked an acceptance of the surren-
der as a matter of law. This bald question
as to the effect of a reletting by the land-
lord after abandonment by the tenant and
without notice to him or assent, express or
implied on bis part; and without other acts
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and circumstances from which an acceptance
of the surrender in fact or as a matter of law
may be Inferred, has not heretofore arisen
In any reported case In this state. In the
case of White v. Berry, 24 R. I. 74, 79, 52
Atl. 6S2, there were many acts on the part
of the landlord, from which it was found
that the landlord's acceptance of surrender
was to be Implied ; among these acts was
the actual reletting of the premises witliout
consulting with the defendant 24 R. I. 79,
S2 Atl. 682. In Smith v. Hunt, 32 R. I.
326, 79 Atl. 826, 35 L. R. A. (N. S.) 1132, Ann.
Caa. 1912D, 971, there was no reletting dur-
ing the time for which rent was claimed, and
it was held that the facts proved showed only
SBdi acts on the part of the landlord after
abandonment by the tenant as the landlord
was entitled to do for the protection of the
abandoned property, and with a view to re-
letting it; that these acts were done with
full knowledge of the defendant; and that
there was no acceptance of surrender.
The plaintiff has cited several cases in sup-
port of his claim that the reletting by plaln-
tlBF, although without notice of such reletting
to defendant, and without notice that such
reletting would be on the lessee's account,
was not as- a matter of law an acceptance of
the surrender. Biggs v. Stneler, 93 Md. 100,
48 Atl. 727; Oldewurtel v. Wlesenfeld, 97
Aid. 165, 54 Atl. 969; Alsup v. Banks, 68 Miss.
664, 9 South. 895, 13 L. R. A. 598, 24 Am. St.
Rep. 294. In these cases there was express
refusal to accept surrender; and notice was
given to the lessee that the lessor would rent
the property for the account and risk of the
lessee, and bold the lessee for any loss.
In Toslin v. Mcliean, 99 Mich. 480, 58 N. W.
467, cited by plaintiff, there is nothing in the
report of the case to show that there was
any reletting during the time covered by the
suit for rent accrued; and the court found
nothing to show any acceptance of surrender
by the landlord. The key was sent by the
lessee to lessor by mall without notice or
r-omment The lessor simply took possession
and undertook to rent the property ; but it
does not appear that he was trying to recover
rent for any period of time after he actually
rented the property. In Stewart v. Sprague,
71 Mich. 50, .18 N. W. 673, dted in Joslln v.
McLean, supra (but not referred to in plain-
tiff's brief), it does appear that the court
held that the lessor, after abandonment
which was not accepted, could relet for ac-
count of the abandoning lessee, and hold him
for the lo»,s, and that notice of intention to re-
let was not essential or material. In Scott T.
Beecher, 91 Mich. 594, 52 N. VV. 20, also cited
In Joslln V. McLean, supra, the recovery
sought was only for the time during which
the property remained vacant, and it was
held that the reletting did not operate as an
aco^tance of surrender by operation of law
BO as to relieve the lessee from payment of
the rent undM- the lease for the portion of
the year during whldi the property remained
vacant. In Auer v. Tenn., 99 Pa. 370, 44 Am.
Rep. 114, there was an express refusal to
accept the surrender, and there was express
and repeated notice in writing to the surety
of the lessee that he would be held for the
rent, and that the premises would be rented
at his risk. In Hlgglns v. Street, 19 Okl. 46,
92 Pac. 153, 13 L. R. A. (N. S.) 398, 14 Ann.
Chs. 1086, there was reletting after notice of
a similar nature. In ICose Mercantile Co.
T. Smith, 139 La. 217, Tl South. 487, the
holding upon this point was merely Incidental
and whether or not notice of reletting was giv-
en or whether the reletting was done imder
such' drcorastances as to imply the assent of
the lessee does not appear.
Holden v. Tanner, 6 La. Ann. 74, seems to
bold that reletting wltboiut notice to the lessee
does not release the surety on the lease, and
is not evidence of the acceptance of the sur-
render. This case is not In accord with the
cases cited infra. This case, and that of Stew-
art V. Sprague, supra, are the only cases
cited by plaintiff which seem to go to the
extent claimed by plaintiff in Ills brief. It
appears In the case at bar that there was no
sufficient proof of an abandonment and sur-
render of the premises by the lessee prior to
the sending of the key to the landlord on
August 8, 1907. At that time under the evi-
dence it may be assumed that there was evi-
dence of intention on the part of the tenant
to surrender the premises' to the landlord.
At that time, however, the landlord did not
attempt to notify the lessee that be would not
accept surrender of the premises, nor did he
ever at any time notify the lessee that be
would rent the premises for account of or at
the risk of the lessee and would h'old the
lessee for the balance of the agreed rent over
and above what he should be able to get by
way of rent of the premises for the balance
of the term. It does not appear that the
plaintiff as landlord, after the receipt of the
key on August 8, 1907, gave any notice of any
kind to the lessee refusing to accei)t the sur-
render. It does appear that on September 1,
1907, he rented the premises to a third party
for one month, and that on October 21, 1907,
after this reletting, he sent a bill to the de-
fendant for three months' rent, and gave the
defendant credit for $30 received from his ten-
ant. It is not shown that the defendant ever
received this bill, but It does appear at least
that it never was paid. After this relettlns
there was a further reletting for five moutbis
to stUl another party, and as to this relet-
ting there was no notice or attempt at no-
tice to the defendant, so far as the evidence
shows, either before or after the reletting.
The defendant contends that under these
circumstances the reletting by plaintiff was,
as a matter of law, an acceptance of the sur-
render; that the creation of this new teuaaey
was "of such a diaracter as to have been la-
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135
eonslstent with the defendant's continued
possession and use of the property"; and
cites In support of such cVjntentlon a num-
ber of cases where a reletting after abandon-
ment by a lessee has been held to be, as a
matter of law, an acceptance of surrender,
although the lessor, at the time of abandon-
ment by the lessee, had refused to accept
surrender and release the lessee.
In Gray t. Kaufman Dairy & Ice Cream
Co., 162 N. Y. 388, 56 N. E. 903, 49 L. R. A.
5S0, 76 Am. St. Rep. 327, there was a lease
from plaintiff to defendant of certain premis-
es In New York City for a term of ten years
from August 1, 1893, and the lessee entered
into possession, and remained and paid rent
to November 1, 1S93, and then moved out and
abandoned the premises, and sent the keys
to the plaintiff by mall. The plaintiff re-
ceived the keys about November 2, 1893, and
on November 3, 1S93, sent the following no-
tice to the defendant:
"Yesterday I received the keys of 787 Eighth
avenue by mail. I hprcby notify you that I
do not accept a surrender of the premises, and
that I intend to hold you responsible for the
rent under the lease. I shall let the premises
un your account, and I hold you for any loss
which may be sustained."
The defendant made no answer to this no-
tice; but there were further personal nego-
tiations between the parties looking to a
compromise or arrangement whereby the mat-
ters in dispute would be settled. On or about
December 1, 1893, the plaintiff let the prem-
ises to a third party, but it did not appear
that this reletting was on account of the de-
fendant or with its consent. It did appear
that the reletting was In plain tlfTs own name.
The gist of the opinion is well stated In the
beadnote, viz.:
"A surrender of leased premises is created by
operation of law, altbouKh the landlord has de-
clined an offer of surrender, where after the ten-
ant baa abandoned them the landlord lets them
in bia own name to a third person for a new
term, without the tenant's consent"
It was further held that the case was dis-
tinguishable from the case of Underhlll v.
Collins, 132 N. T. 260, 270, 30 N. E. 576,
where there was a reletting of premises leas-
ed after abandonment by the lessee, and
where it appeared in evidence that there was
such a reletting pursuant to a conversation
between the parties, a few days before the
lessee vacated the premises, wherein the
lessor refused to accept a surrender at re-
quest of the lessee, but then and there in-
sisted that be would hold the tenant for the
rent and would lease the premises for and
on his account. In this latter case there was
held to be an implied assent on the part of
the lessee to the reletting for and on the les-
see's account. In the case of Gray v. Kauf-
man, etc., Co., supra, it was found upon all
the evidence that there was no such assent.
The sane general doctrine is supported by |
other cases cited on defendant's brief, viz.:
Dagett V. Champney, 122 App. Div. 264, 106
N. Y. Supp. 892; Coe v. Haight, 95 Misc.
Rep. 603, 159 N. Y. Supp. 666, 669; Ladd v.
Smith, 6 Or. 316; Welcome v. Hess, 90 Cal.
507, 27 Pa& 369, 25 Am. St. Rep. 145; Pel-
ton V. Place, 71 Vt. 430, 438, 46 Atl. 63; Hay-
cock V. Johnston, 97 Minn. 289, 106 N. W.
304, 114 Am. St. Rep. 715; Matthews' Adm'r
V. Tobener, 39 Mo. 116; Rice v. Dudley, 65
Ala. 68; Nickells v. Atherstone, 10 Q. B.
944; Thomas v. Cook, 2 B. & Aid. 119. See,
also, 2 Tiffany, Land. & Ten. 1338-1342; 19
Am. & Eng. Enc. Law (2d Ed.) 364, 365.
[7] In the examination of the many cases
dted, we have found some confusion and
conflict of authority upon the question wheth-
er the reletting by the landlord after aban-
donment by the tenant amounts to an ac-
ceptance of surrender as a matter of law.
As above shown we have found only two
cases where it has been baldly held that
the landlord, after refusing to accept a sur-
render, can, as a matter of right, without
notice to the lessee, or without his assent,
either express or implied, relet the premises
for the account and risk of the lessee and can
hold the lessee for the loss. If any. In all the
other cases cited by plaintiff, al>ove referred
to, it either appears that the landlord gave
notice of bis intention to relet for account of
the lessee or at his risk, or that there was
an assent either express or implied on the
part of the lessee that such reletting could
be made for his benefit and on his account
or at his risk. We find, therefore, that the
weight of authority, so far as the facts of
the case at bar are concerned, is to the effect
that the reletting to a third party by the
plaintiff without notice to the defendant,
without knowledge on its part or without its
assent, operated as an acceptance of the sur-
render by the defendant from and after Sep-
tember 1, 1907, and that after that date the
defendant was no longer bound by the leise.
[8] We also find that the defendant was
bound for the rent under the lease from July
1 to September 1, 1907, and that the plaintiff
is entitled to recover the sum of 178.67, l>e-
ing two months' rent tinder the lease, with
Interest at the rate of 6 per cent thereon
from the date of Judicial demand, being the
date of service of the writ, March 31, 1911,
there being no evidence of demand made at
any prior date. The plaintiff's exceptions are
sustained; but in our opinion there is no
need of a new trial, in view of the above
findings. We think that the case should be
remitted to the superior court sitting in Prov-
idence, with direction to enter its Judgment
for the plaintiff for the sum, with Interest
as above stated.
The defendant may show cause. If any it
has, why this order should not be made, oa
Monday, June 18, 1917, at 10 o'clock in th«
forenoon.
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101 ATIiANTIC RBPORTEE
(R.I.
ANDERSON ct al t. NELSON. (No. B030.)
(Supreme Court of Rhode Island. July 5, 1917.)
Vendor and Purchaser €=>7&— Contract—
Construction.
A land sales contract, providing that its
building restrictions were imposed for the bene-
fit of the vendor's remaining land and premises
heretofore conveyed by him, and containinR a
provision regarding "no undesirables,'' is solely
for the vendor's benefit, and a purchaser can-
not complain of a breach thereof.
[Ed. Note.— For other cases, see Vendor and
Purchaser, Cent. Dig. SS 7, 8, 127-131.]
Eixc^ptloDS from Superior Court, Provl-
Aaice and Bristol Counties; George T.
Brown, Judge.
Assumpsit by Carl E. Anderson and others
against Alfred B. Nelson. Verdict for de-
fendant, and plaintiffs except. Exceptions
overruled.
Hugo A. Clason, of Providence, for plain-
tiffs. Wilson, Gardner & Churchill, of Provl-
denoe, for defendant.
PER CURIAM. This Is an action to as-
sumpsit to recover money paid by the plain-
tiffs to the defendant upon a certain agree-
ment for the purchase of a lot of land situat-
ed on a plat belonging to the defendant In
Bast Providence. It appears that the parties
entered into a written agreement for the
purchase of said lot. By said agreement the
plaintiffs undertook to pay to the defendant
the sum of $50 and further sums of $5 eadi
month until the principal sum of $475, with
interest, had been paid; and the defendant
agreed to deliver to the plaintiffs a warranty
deed of said lot when said principal sum,
with Interest, had been paid to him by the
plaintiffs. In said agreement was the fol-
lowing clause:
"Sixth. That the following restrictions which
shall terminate on the first day of January, A.
D. 1985, and which are imposed for the benefit
of the remaining land of said party of the first
part, and of any premises heretofore conveyed
by said party of the first part, and which re-
strictions said party of the second part hereby
agrees shall be binding upon him, heirs and as-
signs, and shall be made a part of the deed
herein provided for, viz.: First, that all build-
ings erected or placed thereon shall be placed
end set back not less than fifteen (15) feet
from the street line, provided that steps, win-
dows, porticoes and other projections appurte-
nant thereto may be within said distance. Sec-
ond, that no dwelling house coating less than fif-
teen hundred dollars ($1,500.00) for a one family
house, or twenty-five hundred dollars ($2,500.00)
for a two family house, shall be built on said
land. Third, no trees shall be cut, or material
moved from said lot, or objectionable structure
erected thereon without a special permit in writ-
ing from Alfred E. Nelson. Fourth, no unde-
sirables."
The plaintiffs alleged that the defendant
failed to keep his promises contained In said
agreement, and the same became void, and
that they were entitled to the return of $60,
the amount paid by them on the agfreement.
The defendant pleaded the general issue, and
also in set-off claimed an Indebtedness of the
plaintiffs to him amounting to the sum of
$13.75 for merchandise delivered by him to
the plaintiffs. The case was tried before a
Justice of the superior court sitting with a
Jury. At the conclusion of the testimony
said Justice directed a verdict for the defend-
ant for $13.75 on his plea in set-off. The
case Is before us upon the plaintiffs' excep-
tion to said action of the Justice, and also
upon exceptions to certain rulings of said Jus-
tice made during the course of the triaL The
plaintiffs contend that by said agreement
the defendant bound himself to sell none of
the r«nalnlng lots upon said plat to per-
sons of a certain nationality, and that he has
disregarded this promise and has made such
sale. They base this contention upon the
expression contained in the sixth clause of
said agreement quoted above, "Fourth, no
undesirables." At the trial the plaintiffs
sought to show by parol evidence what the
parties intended by the expression, "No un-
desirables," contained In said agreement.
The plaintiffs' exceptions, other than that
taken to the direction of a verdict, relate to
the refusal of said Justice to permit the in-
troduction of such evidence. There was no
error In said rulings. It would not avail
the plaintiffs If they had been permitted to
explain said amblgoous expression. It is
contained In a clause imposing restrictions
upon the plaintiffs for the benefit of the de-
fendant, and is binding only upon them.
Such restrictions form no part of any prom-
ise or undertaking of the defendant contain-
ed in said agreement.
There was no testimony apon which plain-
tiffs were entitled to recover the amount
claimed by them; and the defendant was
clearly entitled to the amount allowed by
said Justice in set-off.
The plaintiffs' exceptions are all overruled.
The case Is remitted to the superior court
for the entry of Judgment upon the verdict.
CURTIS-YOUNG CO. v. CROWN GARAGE
CO. (No. 6062.)
(Supreme Court of Rhode Island. June 26.
1917.)
Exceptions from Superior Court, Providence
and Bristol CV>unties ; John W. Sweeney, Judge.
Action by the Curtis-Young Company against
the Crown Garage Company. Verdict for plain-
tiff, and defendant excepts. Exceptions over-
ruled, and case remitted, with direction.
Barney, Lee & McCanna, of Providence
(Walter H. Barney and IJYancis I. McCanna,
both of Providence, of counsel), for plaintiff.
Mum ford, Huddy & Emerson and George H.
Huddy, Jr., all of Providence, for defendant.
PER CURIAM. We have given full consid-
eration to the very elaborate briefs and argu-
ments of counsel in the above cause, and have
also given due consideration to the evidence in
the cause. The evidence was sharply conflicting;
upon the issues of the case, as appears from the
«s9For other casM see same tople and KET-NUMBBR In all Kw-Numbsrad OlgMtt and ladtxn
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yia.)
BERGEN T. TRIMBLE
137
very extended quotations from tke testimony in
tlie briefs of counsel. The jury returned a ver-
dict for the plaintiff, and this verdict has been
fully approved by the justice before whom the
case was tried. We find that there was ample
evidence to support the verdict of the jury, both
as to defendant's liability and as to the dam-
ages awarded, and there was no error on the
part of the trial justice in denying the defend-
ant's motion for a new trial.
We have carefully examined all of the de-
fendant's exceptions, based upon the rulings of
the trial justice in admission and exclusion of
testimony, and as to such admissions and ex-
clusions we find no reversible error.
We have also examined the defendant's ex-
ceptions based upon the refusal of the trial jus-
tice to submit certain special findings to the
jury, and in our opinion the submission of the
special findings referred to was properly re-
fused, for the reason that such special findings
would have raised issues immaterial to the
decision of the case, and woiild have tended to
confuse and mislead the jury.
We have also examined aU of the defendant's
exceptions based upon the court's refusal to
charge the jury as specially requested, and in
doing so we have examined the whole charge of
the court to the jury. We are of the opinion
tliat, 80 far as such special requested instruc-
tions were warranted in law and based upon
facts in evidence, they were substantially in-
cluded in the charge to the jury. We find that
the jury was properly instructed in the law of
the case, and that the trial justice was not in
error in refusing to instruct the jury as special-
ly requested.
We find no reversible error in respect of any
of the exceptions urged on behalf of the defend-
ant. The defendant's exceptions are all over^
ruled, and the case is remitted to the superior
court sitting in Providence, with direction to
enter judgment for the plaintiff upon the ver-
dict.
(130 Ud. £69)
BEROEN y. TRIMBLE et al. (No. 40.)
(Coort c^ Appeals of Maryland. May 9, 1917.)
1. Biixs AND Notes ®=»39&— Interest on I>b-
MAND AND NOTICE TO INOOBSEB— "ACCOM-
MODATED iNDOmEB."
Although a loan for which notes were given
was not made for the sole benefit of indorsers,
they were still "accommodated indorsers" with-
in the meaning of Code Pub. Gen. Laws 1904,
art. 13, {{ 99, 134, providing that demand for
payment and notice of dishonor are not required
to charge such indorsers.
[Ed. Note.— For other cases, see Bills and
Notes, Cent. Dig. {§ 1022-1028.
For other definitions, see Words and Phrases,
Second Series, Accommodation ot Indorsers.]
2. Bills and Notes «=»537(7) — Action
aoainst indobsers — accommodation ov
Officeb— Question fob Juet.
Evidence showing that notes were indorsed
by defendants in accordance with express agree-
ment made in presence of payee, and that it
was upon them alone that payee relied for pay-
ment, held sufficient to go to jury as tending to
show that note was made for the accommodation
of the indorsers within meaning of Code Pub.
Gen. Laws 1904, art. 13, {{ 90, 134.
[Ed. Note. — For other cases, see Bills and
Motes, Cent Dig. U 1882-1884, 1887-1880.]
Appeal from Superior Court of Baltimore
City; James M. Ambler, Judge.
Suit by De Witt Bergen against Prank W.
Trimble and another. Judgment for defend-
ants, and plaintiff appeals. Reversed, and
new trial awarded.
Argued before BOYD, 0. J., and BRISCOE,
BURKE, THOMAS, PATTISON, URNBR,
STOOKBBJDGB, and CONSTABLE, J J.
Edgar Allan Poe, of Baltimore (Bartlett,
Poe & Claggett, of Baltimore, on the brief),
for appellant. John D. Nock, of Baltimore
(Benson & Karr, of Baltimore, on the brief),
for appellees.
PATTISON, J. The suit In this case was
brought by the appellant, De Witt Bergen,
against Frank W. Trimble and John H.
Trimble, copartners, trading as F. W.
Trimble & Bro., as Indorsers upon the follow-
lug promissory note:
"$4,000.00. Baltimore, June Ist, 1910.
"Three months after date I promise to pay to
the order of F. W. Trimble & Bra four thou-
sand doUara, at with interest.
"John Cowan."
This note was Indorsed by F. W. Trimble
& Bro. to the plaintiff, De Witt Bergen, the
present holder, who at its maturity instituted
suit thereon. At the conclusion of the plain-
tiff's testimony the court, at the instance ot
the defendant, granted the following prayer:
'The court instructs the jury tliat there is no
evidence legally sufficient to entitle the plaintift
to recover, and the verdict must be for the de-
fendant."
The Jury, In obedience to such instruction,
rendered a verdict for the defendant, and
upon that verdict a Judgment was entered for
defendant's costs. It Is from that Judgment
this appeal was taken.
The note was not presented for paymoit at
maturity, and no notice of its dishonor was
given to the indorsers. The only question
involved in this appeal was whether the
plaintiff was entitled to recover without
presentation of the note for payment at ma-
turity, and without notice to the indorsers
of its dishonor. In the determination of this
question the following sections of article 13
of the Public General Laws of this state are
Involved:
Section 99:
"Presentment for payment is not required in
order to charge an indorser, where the instru-
ment was made or accepted for his accommoda-
tion, and he has no reason to expect that the
instrument will be paid if presented,"
Section 134:
"Notice of dishonor is not required to be given
to the indorser • • • where the instrument
was made or accepted for bis accommodation."
It is contended by the plaintiff that the
evidence offered shows, or at least tends to
show, that the promissory note In question
was made for the accommodation of the
defendants, within the meaning of the stat-
ute, and therefore to entitle the plaintiff to
recover it was not essential that the note
should have been presented for payment, or
notice of Its dishonor given to the Indorsers,
and that the instmctlon of the court direct-
fissFor other cases see same topic and KBT-NUMBER in all Key-Numbered DlRetts and Indixei
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138
101 ATLAjraiG REP0RTE3R
(Md.
log a verdict for Uie defendant was errone-
ously given.
The facts and circumstances leading up to
and surrounding the execution of the note,
as disclosed by the record, are briefly as fol-
lows:
The defendants were in 1908 largely In-
terested in a corporation known as the Dud-
ley Adding Machine Company. As expressed
liy one of the witnesses, this company "was
practically F. W. Trimble & Bro., who held
certain patent rights, with the inventor,
Dudley, subject to a royalty agreement held
by the Numerograph Company," by which the
Numerograph Company was to be paid a
royalty of $10 on each and every machine
manufactured by the Dudley Company.
The defendants, with Cowan and others,
became interested in the formation and
organization of another company for the
manufacture and sale of adding machines,
which was to take over the Dudley Adding
Machine Company, with Its above-mentioned
patent rights, subject, as we have said, to
the royalty rights of the Numerograph Com-
l>any.
The new company, it seems, had been incor-
liorated, though its stock had not at such
time been distributed or disix>sed of. It was
at this stage In the promotion of the com-
piiuy that those intere»ted therein, including
the defendants and Cowan, proceeded to sell
its stock, but found they could not do so ow-
ing to the royalty rights of the Numero-
graph Company. It was then decided to pur-
chase such rights.
Five thousand dollars were required to
purchase these rights, and this amount, in
addition to the sum of $1,000, which was
needed for the payment of certain expenses
to be incurred in launching the enterprise,
was borrowed from the plaintiff, and to se-
cure the payment of said loan a note of
$6,000, signed by Cowan payable to F. W.
Trimble & Bro., and Indorsed by said Arm,
was delivered to tlie plaintiff. Payments
were made upon this and renewal notes
given therefor, until the amount of said in-
debtedness was on June 1, 1910, reduced to
$4,000, at which time the note In question
was executed and delivered to the plaintiff.
The amount of the loan, $6,000, secured by
the original note, was paid by two checks
l/oth drawn by the plaintiff to Cowan, one for
95,000 and the other for $1,000, and sent to
Harry E. Karr, counsel for Trimble & Bro.,
nnd also for them and others in the promo-
tion and organization of the new corporation.
Cowan called at the office of Mr. Karr, and
there indorsed the checks. Five thousand
dollars of the amount realized on said checks
were paid by Karr to the Numerograph Com-
pany for the purchase of its aforesaid royal-
ty rights, but it is not shown to whom such
rights were assigned, and the remaining
$1,000 was applied either by Karr or Cowan ,
to the payment of certain expenses to which '
we have already alluded. The payments up-
on the original and renewal notes were made
by Cowan, but whether from bis own in-
dividual money or from money derived from
other sources it is not disclosed, except as
to $300, which is said to have been received
"from the creditors' committee of John
Cowan." The character of this committee
or how or for what piupose it was created
is not disclosed by the evidence. The testi-
mony, however, discloses that before the
note of $4,000 became due and payable Cowan
Informed the Indorsers that he would not be
able to pay the note at maturity, and that it
would have to be renewed, but the Indorsers
refused to renew it
Bergen testified that the money was loan-
ed by him to Cowan and Trimble Bros, for
the purpose of putting it into an adding ma-
chine businesB, made simply as a loan to
them, as they were short of funds at that
time. Miller, who acted for Bergen in the
negotiation of the loan, testified:
"The Trimbles, with Mr. Cowan. Mr. Davis,
and Mr. Karr, wanted some moaey. They asked
me if I could get it from Mr. Bergen, and I
presented the matter to Mr. Bergen and got the
money."
Davis, It seems, was in some way in-
terested in the transaction.
Miller farther testified that:
These people, "in order to go ahead with Aeir
promotion, were obliged to pay $5,000 (for the
royalty rights of the Numerograph Company'),
and they did not have the money, so they stated.
They wanted the money for that purpose, to-
getlier with an extra $1,000 for equipping omoes
in Philadelphia."
He was then asked was anything ^aid at
the time that you arranged the loan as to
the form that that loan was to take; as to
whether It was to be evidenced by a note or
a bond or otherwise.
"A. They were to give a note. Q._ What was
the arrangement as to who was to give the note
and the amount of same when you say they were
to give a note to Mr. Bergen/ A. Mr. Cowan,
indorsed by defendants. Q. VVaa anything said
at this conference, and, if you remember, by
whom, as to this $5,000? A. Xea. Q. By whom
was it said, if you remember? A. By all of them.
It was a general conversation. Q. What was
said? A. That the money was to be raised by
the Trimbles to clear their title to hold the pat-
ent"
If the money was loaned to the defendants
for their sole benefit the note, though signed
by Cowan as maker, was made for their
accommodation, and no demand of payment
of the note at maturity was necessary and
no notice of its dishonor was required to
be given the defendants as indorsers. If the
loan was made to Cowan and the defendants
for tbelr Joint benefit and the repayment of
that loan was to be secured by a note exe-
cuted by agreement between them in the man-
ner and form shown by the record, there was
an obligation on the part of both the defend-
ants and Cowan to pay the note at maturity.
[1] The fact that the loan was not made
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AO-RICUIiTUBAL SOO. t. STATB
139
for the sole benefit of the defendants does
not diange the character of the Indorsement
In respect to demand for payment or notice
of dishonor. They were nevertheless, in our
opinion, accommodated indorsers within the
meaning of the statute; and the plaintiff
was not required to make demand upon Cow-
an or give notice to the defendants of the
nonpayment of the note. Bank of Washing-
ton V. Way, 2 Cranch, O. O. 249, Fed. Cas.
No. 957.
[2] The evidence offered, we think, was
legally sufficient to go to the jury as tend-
ing to show that the note was made for the
accommodation of the indorsers within the
meaning of the statute, and that their in-
dorsement thereon was that of accommodated
Indorsers, who had no reason to expect the
note would he paid by the maker If presented
f<H- payment.
The cases of First National Bank v.
Blekel, 14.3 Ky. 754, 137 S. W. 790, and liuck-
enbach v. McDonald, 170 Fed. 434, 95 C. C. A.
604, which were cited to us by the defend-
ants in support of their contention, in which
the indorsers were held to be entitled to
notice of dishonor, differ widely from the
case before us. In each of those cases the
loan was made to the corporation, and to
secure the repayment of the loan, the note of
the corporation, payable to the plaintiff and
Rlfmed by its president, and indorsed by him
and other directors of the corporation, was
delivered to the plaintiff. In the latter case
Jndse Gray, speaking for the court, said:
"There is no evidence disclosed by the record,
tending to show that anythlne else was con-
templated by those who negotiated this loan than
that it was to be a loan to the corporation for
the promotion of its business, for wnich the cor-
poration was to be primarily bound bv the prom-
issory note which it made, and that the directors
who loaned their credit by indorsement assumed
the secondary liability of indorsers, and none
other. • • • All the evidence tends to show
that the payee of the note had no other thooght
than that the security he held for his note was
what it puriKHrted to be on its face ; i. e., the
primary liability of the corporation, as maker,
and the secondary liability of the defendant and
his two C(dleagues, as indorsers."
In the case b^ore us, as the evidence
trads to show, the loan was not made to
either of the corporations mentioned in the
record, but to Cowan and the defendants,
and the note given to secure such loan was
signed, not by either of said corporations,
but by Cowan as maker, and indorsed by
the defendants in accordance with an ex-
press agreement between them made in the
presence of the plaintiff, to whom it was
thereafter delivered; and it was upon them
alone that the plaintiff relied for the repay-
m<>nt of said loan.
It follows from what we have said that
tl>e Judgment of the court below will be re-
versed, and a new trial awarded.
Judgment reversed, and new trial awarded,
with costs to the appellant.
(UO Ud. 474)
AaRIODIiTDRAL SOC. OF MONTGOMERY
COUNTY V. STATB. (No. 20.)
(Court of Appeals of Maryland. May 4, 1917.)
1. GAUIHO <S=>71 — BOOKIIAKINO — Pbosecu-
TION.
Under Code Pnb. Civ. Laws, art. 27, H 217-
221, prohibiting gambling on the result of horse
races unless the grounds are licensed by the cir-
cuit court for the county in which they are lo-
cated, an agricultural association which suffos
its grounds to be used for such purpose without
license is not excused from failure to apply for
such license by the fact that sadi license had
been previously refused.
[Ed. Note.— Por other cases, see Gaming, Gent.
Dig. :§ 166, 187.]
2. Statutks 9s>64(1)— Paktiai. Irvauoitt—
Test.
If different sections of a statute are inde-
pendent of each other, unconstitutional ones may
be disregarded and valid sections may be en-
forced; but, if the valid sections without the ob-
noxious would cause results not contemplated
or desired by the Liegislature, the entire statute
is inoperative.
[Ed. Note.— For other cases, see Statutes,
(}ent. Dig. SS 58, 195.]
3. Statutes ®=>64(6)— Partiai, Ihvauditt—
Leoislativb Intent— Hibtobt.
Where the history of legislation on horse
racing shows that its main object has been to
curb it, the prohibitory section of the statute is
severable from the license portions, and will
stand even if the latter portions are unconstitu-
tional.
[Ed. Note.— For other cases, see Statutes,
Cent. Dig. §§ 63, 195.]
Briscoe, J., dissenting in part
Appeal from Circuit Court, Montgomery
County; EXlward O. Peter, Hammond Urner,
and Glenn H. Worthlngton, Judges.
The Agricultural Society of Montgomery
County was found guilty of suffering its
grounds to be used for the purpose of mak-
ing, selling, and buying books on the result
of horse racing, and appeals. Affirmed.
Argued before BOYD, C. J., and BRISC!OE,
BURKE, THOMAS, PATTISON, STOCK-
BRIDGE, and CONSTABLE, JJ.
Robert B. Peter, of Rockville, for appel-
lant. Albert M. Bouic, State's Atty., of Rock-
ville, and Ogle Marbury, Asst Atty. Gen. (Al-
bert C. Ritchie, Atty. Gen., on the brief), for
the Stata
CONSTABLE, J. The appellant, which
conducts an annual fair in Montgomery
county, was Indicted by the grand Jury of
that county by an Indictment containing two
coimts, the first of which charged that it on
the 25th day of August, 1916, unlawfully
and knowingly suffered Its grounds to be us-
ed for the purpose of making, selling, and
buying books and pools thereon upon the re-
sult of a running race of horses held within
the said grounds on the said date. The
second count charged tlie same offense, with
the addition that the appellant was not
licensed by the circuit court for Montgomery
county to suffer its grounds to be used for
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140
101 ATIAMTIO REPORTER
(Md.
tbe purpose of making, selling, and buying
books and pools thereon upon a result of a
running race of horses to be held thereon.
The appellant pleaded not guilty, and the
case was submitted to the court upon an
agreed statement of facts. Keller y. State,
12 Md. 322, 71 Am.' De& 596; Salfner y.
State, 84 Md. 299, 35 AU. 885. The court
found the defendant guilty, and Imposed a
fine of $50 and costs, from which Judgment
this appeal was taken.
The statute which it is charged the appel-
lant violated is that which was enacted by
Acts 1898, c. 285, and which is now codified
in Bagby's Code, vol. 3, as sections 217, 218,
219, 220, and 221 of article 27.
Section 217 Is as follows:
"It shall not be lawful for any penon or per-
sons, or association of persons, or for any cor-
poration within the state of Maryland, to bet,
wage or gamble in any manner, or by any means,
or to make or sell a book or pool on the result of
any trotting, pacing or running race of horses
or other beasts, or race, contest or contingency
of any kind, or to establish, keep, rent, use or
occupy, or knowingly suffer to be used, kept or
rented or occupied, any house, building, vessel,
grounds or place or portion of any bouse, build-
ing, vessel, grounds or place, on land or water,
within the state of Maryland, for the purpose of
betting, wagering or gambling in any manner,
ur by any means, or making, selling or buying
books or pools therein or thereon upon the result
of any race or contest or contingency, or by any
means or devices whatsoever, to receive, become
the depository of, record or register, or forward
or purpose, or agree or pretend to forward any
money, bet, wager, thing or consideration of val-
ue, to be bet, gambled or wagered in any manner,
or • • • device whatsoever, upon the result
of any race, contest or contingency, and any
person violating any of the provisions of this sec-
tion shall be deemed guilty of a misdemeanor,
and upon conviction thereof shall be subject to a
tine of not less than two hundred dollars nor
more than one thousand dollars, one-half of said
fine to go to the informer, and shall be subject to
imprisonment in jail for not less than six months
nor more than one year, or be both fined and im-
prisoned, in the discretion of the court"
Section 218 provides tliat nothing in the
preceding section shall render It unlawful
in any county in the state for any persons
to make a pool or book, or to bet within the
grounds of any agricultural association, race
course, or driving park upon the result of any
trotting, pacing, or runulng race of horses
which shall be held wlthia the said grounds,
race course, or driving park upon which said
persons shall make a pool or book or shall
so bet upon the same day on which said
race shall be held, provided the grounds be
licensed by the circuit court for the county
within which such grounds or tracks may be
located. Section 219 provides for the applica-
tion for the license and the advertisement
of the application. Section 220 provides for
what the application shall contain. Section
221 provides for what the license shall con-
tain, such as the name of the grounds and
the number of days and the month within
which such license shall be operated, and
further provides what number of days in any
one year betting con l>e carried on, and also
what months during whldi betting shall not
be permitted, and further names certain
counties to which this section shall not be
applicable. Including Cedl, Washington, and
Anne Arundel counties. Sections 219, 220,
and 221 are no longer applicable to Balti-
more and Harford counties, for which, by
Acts 1912, c& 77, 132, racing commissions
were created to control horse racing In those
counties.
By the said agreed statement of facts It
appears:
(1) That the defendant is a corporation
and owns a fair ground at ItockviUe, in
Montgomery county, upon which there Is a
race course.
(2) That on the 25th day of August, 191C,
the defendant did knowingly suffer its said
grounds to be used for the purpose of mak-
ing, selling, and buying books and pools
therein upon the result of a running race
of horses held within the said grounds on the
said 25th day of August, 1916.
(3) That the defendant is an agricultural
association, and annually holds a fair for
four days upon its said grounds, and that
the "fair" for the year 1916 was actually
being held upon its grounds on said 25th day
of August, 1916, when said running race took
place.
(4) That the defendant's said race course
is the only race course or driving park in
Montgomery county upon which horse races
were to be held during the year 1916, and
that the racing on this course was for only
four days, and they were the days the de-
fendant was actually holding its fair.
(5) That the defendant did not apply to the
circuit court for Montgomery county for a
license to suffer its grounds to be used for the
making, selling, and buying books and pools
thereon upon the result of horse racing in
the year 1916, and that no license was issued
to the defendant for that purpose in that
year.
(6) That In the year 1910 the defendant
made application to the circuit court for a
license to permit bookmaking and pool sell-
ing upon horse racing upon its said fair
grounds for four days during its fair for the
year 1910, but that a license was refused by
a full bench, and that the defendant has
not made application for a license since said
refusal; that the circuit court for Mont-
gomery county In said year 1010 convicted a
certain Artliur J. Mark of gaming and book-
making at the fair grounds of the defendant
at its annual fair held for the year 1910,
and he was fined $400 and costs.
(7) It is fmther agreed tliat the court
should have power to enter up Judgment In
conformity with Its findings.
It la contended on behalf of the appellant
that the sections of the act providing for the
granting by the circuit court of the different
counties of the state of licenses to agricultu-
ral associations, race courses, and driving
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AGRICULTURAIi SOO. v. STATE
141
parks are void, tor the reason tbat the datles
therein attempted to be imposed upon the
courts are nonjudicial duties, and b7 reason
of those sections being of no effect the re-
mainder of the act becomes also void and of
DO effect It is then claimed that, because of
the failure of this act, then cliapter 232 of
the Acts of 1894, which was attempted to be
repealed by the present act, again becomes
the law of this state ui>on this subject
For the disposition of this case we do not
ileeai it necessary to either discuss or decide
whether or not the sections mentioned impose
a Judicial or a nonjudicial duty upon the
courts, and are therefore void, because, if
the duty imposed should be held by this court
to be a Judicial duty, and therefore not af-
fect the validity of said sections, then, of
course, it must follow that the apimllant was
guilty as charged in the second count of the
Indictment; for the statute requires tliat,
before any agricultural association, race
course, or driving park shall t>e entitled to
the exemption from the provisions of section
217 (the prohibitory section), it should make
application and l>e granted a license l>efore
it could permit books or pools to be made and
sold on its grounds.
[1] By the agreed statement of facts it is
admitted that the appellant made no such
application for dates for the year 1916, and
that no license was issued to it for that pur-
pose and for that year. The fact that the ap-
pellant did make application for dates in
the year 1910, and was refused a license for
those dates by the court, could have no ef-
fect, tmder the statute, toward excusing its
failure to make application for dates in 1916,
and therefore, under this view of the law and
facts, the appellant would clearly have been
found guilty. If, on the other band, it should
be held that the duty imposed upon the
courts is a nonjudicial duty, and therefore
void, nevertheless we are of the opinion that
the prohibitory portion of the act still re-
mains in force, and that a verdict of guilty
as charged in the first count would be cor-
rect.
[2] As to what is the effect upon other and
valid portions of a statute when certain
parts of the same statute are held to be in-
valid and unconstitutional has several times
been considered by this court, and there
should not now be any difficulty in stating
the general rule, but the difficulty arises
rather in its application. In Storck v. Bal-
timore City, 101 Md. 476, 61 AU. 330, this
court adopted the language used by the Su-
preme Court of the United States In the case
of Connolly v. Union Sewer Pipe Co., 184 U.
S. 540, 22 Sup. Ct 431, 46 L. Ed. 679, In
saying:
"If different sections of a statute are inde-
pendent of each other, that which is unconstitu-
tional may be disregarded, and valid sections
may stand and be enforced. But if an obnoxious
section is of such import that the other sec-
tiona without it would cause results not contem-
plated or desired by the LiCgislature, then the'
entire statute must be held inoperative." State
V. Benzinger, 83 Md. 481, 35 AO. 173; Stie-
fel's Case, 61 Md. 144.
Assuming only for the purpose of a dis-
position of this case that the licensing sec-
tions are void and inoperative, the inquiry
then must be as to whether or not the whole
of the act thereby is rendered void and of no
effect. The authorities cited above, and in
fact the authorities practically everywhere,
hold that the test is whether or not one sec-
tion can stand alone as expressing the legis-
lative will; whether or not thel lawmaking
body would have enacted one without enact-
ing both or all as a whole.
[3] To arrive at the legislative intent
in reference to the subject with which
it was dealing, it may be profitable to
review the race track history of this state
as applying to gaming. Speaking gener-
ally, there was no statute seeking to control
or limit such until the adoption of chapter
206 of the Acts of 1890. This act, among
other things, sweepingly prohibited gaming
upon the result of any horse race, unless such
was done upon the track where the race was
actually being held. The provisions of that
act were amended by enacting chapter 232
of the Acts of 1894, providing that gaming
within the grounds of agricultural associa-
tions, driving parks, and race courses on the
result of horse races on the same day as the
races were actually run, as provided by the
said act of 1890, should be limited to 30 days
in any calendar year. This act was amended
by the act now under consideration, and thus
has stood the law of the state up to the pres-
ent, with the exception of several counties
to which certain local laws are applicable.
It is thus apparent tliat since the year 1890
the tendency of the Legislatxire has been to-
wards restricting and limiting what to a
great number of persons has seemed a great
evlL
If the contention of the appellant Is cor-
rect, in that the license portions of the act
are void, and that the act is not severable,
and that thus the whole act should fall, the
result would be that the act of 1894 would
be revived. State v. Benzinger, supra.
We cannot lose sight of that which la a
part of the legislative history of the state.
It must be remembered how under the act
of 1894 six race tracks were located in one
county of the state, upon each one of which
racing and gaming were carried on for 30
days, or for a total of 6 months during the
winter months of each calendar year. At
the session of tha same Legislature which
passed the act now before us there was pass-
ed a statute, chapter 13, Acts of 1898, ab-
solutely prohibiting race track gaming in the
county just mentioned, without any qualiflea-
tions at all, and thus relieved the deplorable
conditions that had arisen from the practical
working of the act of 1894. With the ex-
pressed opinion of that Legislature as to the
abuses which were permitted under coTer of
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142
101 ATIAiraiC REPORTER
(Md.
that statute, It can fairly be assumed that the
same Legislature did not Intend that like
abuses should spring up in the other counties.
It attempted to accomplish this end by pass-
ing the present act, and making the dates for
racing and gaming subject to the control of
the courts. The main object of all legisla-
tion on horse races since 1890 has been to
curb this form of gaming. The various stat-
utes clearly prove this, and we are satisfied
that the prohibitory section is severable from
the license portions of the act, and can there-
fore stand.
It follows, therefore, that whichever view
is taken as to the constitutionality of the li-
cense section, the appellant was properly
found gruilty as held by us In a per curiam
opinion heretofore filed.
BRISCOE, J., concurs in the conclusion,
but dissents from the reasons assigned there-
for.
(130 Md. 60O
BRADY et al. v. MAYOR AND CITY COUN-
CIL OF BALTIMORE. (So. 34.)
(Court of Appeals of Maryland. May 9, 1917.)
1. MuNiciPAi, Corporations <8=»648— Streets
—Adverse Possession — Color of Title.
Where city of Baltimore widened Dock
street and remained in possession for 40 years,
under authority of Acts 1836. c. 63, vesting
in it title to street so widened provided that
vested riebts of individuals who owned fee in
street subject to easement were not interfered
with, it acquired title to fee by adverse posses-
sion, since agreement whereby proprietors re-
liDquisbed all interest in the street, though not
suincient to convey fee, showed that city oc-
cupied street in the belief that fee vested in it,
and therefore its occupancy was under a claim
of supposed right and was adverse.
[Ed. Note.— For other cases, see Municipal
Corporations, Cent. Dig. !$ 1421, 1422.]
2. Adverse Possession ®=>4 — Prescription
Agai.vst Public
Prescription will not run against the dty or
the public.
[Ed. Note.— For other cases, see Adverse Poa-
wBsion, Cent. Dig. !§ 7-10, 12-57.]
Appeal from Superior Court of Baltimore
City; James P. Gorter, Judge.
Action by the Mayor and City Council of
Baltimore against Lizzie J. Brady and others.
From a judgment In favor of plalntUF, de-
fendants appeal. Affirmed.
Argued before BOYD, a J., and BRISCOE,
THOMAS, STOCKBBIDGB, and CONSTA-
BLE, JJ.
R. E. Lee Marshall and Edgar Allan Poe,
both of Baltimore, for appellants. Alexan-
der Preston, Deputy City S<A., of Baltimore
(S. S. Field, City Sol., of Baltimore, on the
brief), for appellee.
CONSTABLE, J. This Is an acUon of eJec^
ment brought by the Mayor, etc., of Baltimore
against the appellants. In which the appel-
lee recovered a judgment for the land de-
scribed in the declaration and damages.
The land In controversy Is located at the
northwest corner of Caroline and Dock
streets, and forms a part of Dock street In
1814, at which time the events began which
gave rise to this controversy, all of this land
was under the waters of the Patapsco river.
Queen street runs in the same general di-
rection as Dock street, east and west, and Is
south of that street. In 1814 John Cimyng-
ham an'd John Brlggs were the separate own-
ers of two contiguous lots of land, both of
which formed a lot designated on a plot as
lot No. 28. In 1823 Cunyngham purchased
the lot of Brlggs, and thus became the sole
owner of the whole of lot No. 2a In 1843
John Cunyngham and wife, Margaret, convey-
ed in fee simple all of their title In lot 28 to
their daughter, whose executors conveyed. In
1889, the same to E. S. Brady, who was the
immediate predecessor in title of the api>el-
lants herein. Lot No. 28 was situated on the
north side of Queen street with a frontage
of 60 feet and a depth of 40 feet towards
what is now Dock street.
All the land Involved in this case was sit-
uated In a part of the city called Fells Point,
and for the most part was covered by water.
In 1814 the port wardens submitted to the
city council a plan for Improving that part
called the Cove, by making a dock with
streets and alleys leading thereto. That
plan was delineated on a plat which was filed
with the city librarian, and a copy of which
is In the present record. The mayor, etc.
passed on March 25, 1814, an ordinance adopt-
ing the plan an'd appropriating $6,000 to en-
able the port wardens to proceed with the
work as soon as the proprietors of land ad-
jacent to the water should signify their as-
sent thereta The wardens proceeded with
the work and built the city dock and the dif-
ferent streets, including Dock and Caroline
streets. Dock street had a width of 50 feet,
and its northern boundary was the southern
boundary of the dock. And all the land un-
der water between the fast land to the rear
of the properties facing on Queen street
and the dock was filled with earth and
made fast land, and Dock street laid out.
It does not certainly appear when this work
was completed, but by the agreed statement
of facts it was agreed that such was the fact
prior to 1836, and prior to the act of assem-
bly next to be mentioned. By chapter 63 of
the Acts of 1836 It was enacted as follows :
"Section 1. Be it enacted by the General As-
sembly of Maryland, that the mayor and dty
council of Baltimore shall have full power and
authority to increase the width of Dock street
In said city, to eighty feet, and to fill up and
make said street of the width aforesaid ; and
that the title thereto, when so made, shall be
vested in the mayor and city council of Balti-
more.
"Sec. 2. And be it enacted, that the mayor and
dty council of Baltimore Bhall_ be and hereby
are vested with the right and title to any land
made, or to be made by them, out of the water,
in making and completing the improvement oT
c^;=>For other cases see same topic and KEY-NUMBER Id all Key-Numbered Digests and Indexes
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BRADY ▼, MAYOR AND CITY COUNCIIi OF BALTIMORE
143
the city dock, according to the plan heretofore
adopted by them: Provided nevertheless, that
nothing in this act contained, shall be construed
to interfere with the vested rights of individ-
uals."
By Ordinance No. 56, approved March 29,
IStT, the city commissioners were authorized
an'd directed to widen Dock street 30 feet
from its northern boundary line into the dock,
thus making its width over all 80 feet, and ap-
propriating over $6,000 for the purpose, pro-
vided the proprietors should assent to a re-
linquishment of all rights they may have In
Dock street On April 25th following the
proprietors executed an agreement whereby
they signified their full assent to the Im-
provements made under the Ordinance No.
13 of the year 1814, and, in the language of
the agreement, "hereby absolutely renounce
and relinquish, abandon, and make over to
the corporation of the city of Baltimore for-
ever all the right, title, and Interest which
we, or any of us, our or any of our heirs or
iisslgns, may or can have in or to all the fol-
lowing streets, wharves, block or pier, etc.,
to wit: • * • All Dock street." They
therein ot>ligatcd themselves to execute a
more formal assignment to the corporation
npon its request or whenever required. This
agreement was signed by all the proprietors;
Margaret Cunyngham signing for John Cun-
fogbam. The work of widening was then
earried to completion in 183&. Numerous or-
dinances have been passed looking to the care
and mal ntenance of the dock and Dock street.
The first 50 feet of the street have been pav-
ed, it has lieen lighted, and water and sewer
pipes have been Installed. As we have seen,
the lot In controversy Is within the lines of
lot Mo. 28 extended to the water, and la sep-
arated from the original extension of said
lot by the original 50 feet of Dock street.
[1] The contention of the appellants is baa-
ed npon the rights claimed to have been con-
ferred upon their predecessors In title by
chapter 9, 1 10, of the Acts of 1745. This act,
for the purpose of encouraging persons own-
ing water front properties In Baltimore to
make Improvements In front of their prop-
erties, provided:
"That all improvements of what kind soever,
either wharves, honses, or other buildings, that
iMve or shall be made out of the water, or
where it usually flows, shall (as an encouraee-
ment to such improvers) he forever deemed the
right, title and inheritance of such improvers,
their hein and ossignB forever."
And reasoning from that act and the de-
cisions thereon, they argue that the title to
all Improvements made by the city under the
ordinance of 1814 became vested In their
predecessors as the owners of the fast land
as soon as they were completed, and further
argue that, such being the case, the further
extension of the limits of their lot by the
Improvement by the city, under the act and
ordinance of 1837, vested in them title to the
land in question.
Many interesting and instructive cases are
to be found In the decisions of this court as
to the rights secured to property owners by
virtue of this statute, such as that the ri-
parian owner had no vested tide to the land
covered by water immediately in front of
his property, nor to the improvements built
out of the water, until the improvements had
been actually completed (Glraud v. Hughes,
1 GUI & J. 249), and that, before the riparian
owner had made any improvements In front
of his property, the state could Intercept his
right to make them by a grant of the land
covered by water (Casey v. Inloes, 1 Gill,
430, 39 Am. Dec. 66S; Linthicum v. Coan,
04 Md. 439, 2 AtX. 826, 54 Am. Rep. 775).
This right of the state was taken away by
chapter 129 of the Acts of 1862, which for-
bade the Issuance of any patent for land cov-
ered by navigable water, and that the rights
given to a riparian owner under the act was
a valuable one, of which he could uot be de-
prived by another person without his consent.
Casey v. Inloes, supra.
For the disposition of this case, we do not
find it necessary to enter Into a discussion
of any but one point, for, In our opinion, the
question of whether or not the appellee had
secured title to the entire bed of Dock street
as it exists to-day, by adverse possession set-
tles this case.
In the ordinance of 1814 It was made a
condition precedent to the making of the
Improvements that the proprietors should
signify their assent to the plan. This by Its
terms could be verbal as well as written. It
does not appear from the record whether or
not this assent was secured. But It does ap-
pear that the money appropriated for the
work on the above condition was expended
and the work done. Of course, at this far
day, there Is no person who could testify a*
to that, but the presumption Is that the pub-
lic oflSclals secured such assent In conform-
ity with their expressed duties. From th«
plan drawn on the plat It appeared to any
one Interested In the Improvement that the
streets around the dock formed a very Im-
portant feature of the Improvement, and they
must have known that the dock would be of
very little use as a public Improvonent with-
out these streets were opened to the public
as public highways. When we consider that
the plan provided for an extension of lot
28 of approximately 250 feet, thus converting
a shallow lot into one of good depth, and
making entrance possllde from the front and
rear. Is It not an Irresistible presumption that
the then two owners of that lot gave their
assent readily? After making this street, the
city has treated it just as any other thorough-
fare of the city. They have exercised com-
plete control over it ever since until the
present They have lighted It, paved it, put
in water mains and sewers, cared for It In
the way of maintenance, and at all times
has It been open to the public. Not since It
was constructed until the present time has
there been a claim made by any one that tha
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101 ATLANTIC REPORTER
(N.B.
city had not acquired an easernent in said
50-foot street for a public tljoroughfare over
it In fact, such a concession was made by
the counsel for the appellant during the tak-
ing of testimony.
The situation of Dock street prior to the
passage of chapter 63 of the Acts of 1836, so
far as the title to Dock street was concern-
ed, was that the fee to the bed of that street
was in John Cunynie^ham, subject to the right
of travel by the public thereover ; the fee in
John Cunyngham having been acquired, of
course, by virtue of the provisions of the act
of 1745. It was during this situation of the
title that the Legislature of 1837 passed the
net Just referred to, by which the city was
given the authority to widen the street to
the extent of 30 feet, and granted to it not
only the fee in the same when it should be
constructed, but also the fee to the original
50 feet already constructed and then in use
and occupancy, but nevertheless saving to
any individuals any rights with which they
might be vested under the act of 1745 or oth-
erwise. It was after this that the ordinance
of March 29, 1837, was passed directing that
the improvement provided for under the act
of 1836 should be carried into effect, provided
that first the proprietors of ground bound-
ing on the dock should execute a deed ol
conveyance of the right of wharfage and the
bed of the street to the city. It was for the
purpose of accomplishing that result that the
city obtained on April 25, 1837, the paper
which we have referred to alwve. While
this paper is very Informally drawn and
could hardly be considered of such legal ef-
fect as to convey the rights which it purport-
ed to assign, yet nevertheless it does have
the effect of showing that the city thought
that it was carrying out the duty Imposed
upon It by the ordinance, and believed that it
was obtaining a fee-simple title to the bed
of the street already built and about to be
built, in consideration of making the addi-
tional improvement. Acting on the belief
that title had been obtained by it, the dty
proceeded with the work, and completed it
in 1839, and entered into possession of it and
continued In the possession of the original
50 feet.
[2] As we have said above, while this pa-
per would have no legal eCTect to change the
title to the street, yet It does have a great
effect in showing that the appellee was oc-
cupying the street under tlie belief that the
fee to the same was vested in It, and that
therefore their occupancy was under claim
of a supposed right, and therefore adverse.
The dty continued from 1839 to so occupy
the whole of Dock street until the year 1880,
a period of over 40 years, before claim was
made by any one to any portion of the 80-foot
strip. We are then of the opinion that there
was abundance of evidence from which it
:ould be found that the appellee had obtain-
ed a fee-simple title to the whole of Dock
street through adverse possession. There-
fore the lower court was correct in refusing
to rule as a matter of law that there was no
evidence in the case legally suffident to
show that the plaintlfT had acquired any ti-
tle, interest, or estate In or to the strip of
land in controversy. The ruling of the court
in rejecting the prayers of the appellant deal-
ing with their claim to the benefit of the law
of adversary possession as applied to their
occupancy, was correct, for the reason that
this court has held that prescription will not
run against the dty or the public. Cushwa
V. WiUlamsport, 117 Md. 318, 319, 83 Atl.
389; Ulman's Case, 83 Md. 144, 145, 34 Atl.
366.
Finding no error in the rulings of the
learned court below, we will affirm the judg-
ment
Judgment affirmed, costs to the appellee.
TOWN OF TILTON ■
(78 M. H. 4«>
CITY OP CONCORD.
(Supreme Court of New Hnmpshire. Belkoap,
June 5, 1917.)
1. Pattpers «=»39(3) — S«?rn,EMBNT— Rbqui-
8ITE8.
Where the paupers had no settlement in
Concord, except tlirouph the fnther. who had
not wholly (rained his settlement durinir the ten
years preceding, they were county charges in
view of I.AW8 1903, c. 106, providing that: "'So
town shall be Uable for the support of any per-
son unless he, or the person under whom he
derives bis settlement, shall have wholly gained
a settlement therein during the ten years pre-
ceding the last date of application for support."'
[Ed. Note.— For other cases, see Paupers^
Cent Dig. { 164.)
2. Paupebs «=341 — Dunxs of Ovbbbekkb —
Special Request.
I'nder direct provisions of Pub. St 1901, c
84, f 1, it is the duty of the overseers of the
poor of a town to relieve all persons therein
unable to support themselves, and no special re-
quest need be shown.
[Ed. Note.— For other cases, see Paupers,.
Cent Dig. H 182, 183.]
3. Paupers ®=»52(6) — Pdhnishino Relief —
Presumption.
Where relief is actually furnished to tk
person in distress, it is presumed to be done at
his request
[Ed. Note.— For other cases, see PaupersL.
Cent Dig. U 229-231.]
4. PaTTFEBS «=>52(2)— LIABILIT7 MB SUPPORT
— Rbsidbrcb.
Where at the date of the application the
paupers had no settlement in Concord, there-
could be no recovery from it for relief given by
plaintiff town.
[Fid. Note. — For other cases, see Paupers,
Cent Dig. §S 216, 219, 220.]
6. PATJPBBS «=»52(2)— LlABILlTT FOB SUPPORT
.— Rbsidbncb.
There could be no recovery from the city
where alleged paupers had a settlement if there
was no existing necessity for the relief given by
plaintiff town.
[Ed. Note.- For other cases, see Paupers.
Cent Dig. H 216, 219, 220.]
^saVoT other catei see aame topio and KBT-NUMBER In all Key-Numbered DtgeiU and Indezei
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COGSWELL y. BOSTON A M. R. R,
145
ft. PAtTPEBS *=>52(6) — REI.IEF TO PAUPEBS —
PflESTrMPTION.
BiCLch item of pauper snppoit legallr furnish-
ed IB prestimed to be famished upon application
then made.
[Ed. Note. — For other cases, see Faapers,
Cent. Dig. Si 229-231.]
Transferred from Superior Court, Belknap
County; ELlvel, Judge.
Assumpsit by the Town of Tllton against
the City of Concord. Transferred on an
asrreed statement of facts. Judgment for de-
fendant.
Assumpsit for aid furnished paupers. The
paupers are the widow and minor cblldreu
of one Moses Ayotte, who acquired a settle-
ment in Concord by the payment of poll
taxes for the years 1906 to 1912, inclusive.
In 1912 or 1913 Moses removed to Laconla,
where he died February 22, 1914. His widow
and children shortly thereafter moved to
Tllton, where July 1, 1914, they applied to
the overseers of the poor of Tllton for aid,
which has since been continuously furnish-
ed tbem. The dty of Concord reimbursed
niton for all sums expended for the paupers
np to April 1, 1916, and then refused fur-
ther payment The action is to recover for
sums expended in support of the paupers
between June 19 and September 19, 1916, of
which due notice was given the defendant
Fletcher Hale, of Laconla, for plaintiff.
HolUs & Murchle, of Concord (Alexander
Murchle, of Concord, orally), for defendant
PAKSONS, C. J. [1] "No tovra shall be
liable for the suptiort of any person unless
be, or the person under whom he derives his
settlement shall have wholly gained a set-
tlement ther^n during the ten years preced-
ing the last date of application for support"
Laws 1903, c 106. The paupers had no set-
tlement except that derived through the hus-
band and father, Moses Ayotte. It Is con-
ceded his settlement In Concord was not
wholly gained during the ten years preced-
ing the time when the support sued for was
famished. The paupers therefore at the
time the aid was furnished had no settlement
In Concord and were county charges. Lan-
caster V. Coos County, 74 N. H. 439, 68 Atl.
887; P. S. c. 84, { 1. July 1, 1914, they ap-
plied for aid, which has since then been con-
tinnously furnished them. He plaintiff ar-
gues that July 1, 1914, was the last date of
application for aid, and that the true c<m-
Btrucdon of the statute Is that the city of
Concord, being then liable to support the
paupers, continues liable as long as support
is furnished under such application. But
the fact stated Is that the api^lcatlon, July
1, 1914, was the first not the last application
for aid. April 1, 1916, Concord denied fur-
ther liability. If the paupers thereafter
made formal application for the assistance
subsequently furnished between June 19th
and September 19th, the defendant Is not lia-
ble upon the plaintiff's construction of the
statute.
[2] It was the duty of the overseers of the
poor of Tllton to relieve and maintain all
persons In the town unable to support them-
selres. P. 6. c. 84, { 1. No special request
was required if assistance was necessary.
Rumney v. Keyes, 7 N. H. 571, 577.
[3] "Where relief is actually furnished a
person in distress, It Is presumed to be done
at the request of him who had it and no
special request or application need be shown."
Moultonborough v. Tuftonborough, 43 N. H.
316, 320. That the supplies furnished In the
summer of 1916 were furnished in good faith
because then requested or applied for or Ije-
cause the situation at the time Implied such
request or application was the foundation
of the plalntlfTs case. Moultonborough v.
Tuftonborough, supra. As to the necessity
for the aid and the good faith of the town
oflSdals no facts are agreed.
[4-1] If it is assumed the aid was furnished
in good faith because then needed and ex-
pressly or Impliedly applied for, there can
be no recovery because at the date of the
application the paupers had no settlement In
Concord. If the facts are otherwise, and the
aid was furnished because applied for two
years before without existing necessity, there
could be no recovery even if the recipients
had a settlement in Concord. Each item of
pauper support legally furnished is presumed
to be furnished upon application then made.
Judgment for the defendant All concur-
red.
(78 N. H. 378)
COGSWELL ▼. BOSTON & M. R. R.
(Supreme Cotut of New Hampshire. Merri-
mack. April 3, 1917.)
1. Canceixation or Instbuments «=»37(5)—
Reuef in Equity— Mistake— BrLii—STJFFi-
CIENCT.
A bill, alletring that injuries resulting in
death of the releasor were unknown to both par-
ties when the settlement evidenced by the release
was made, and that the release agreed on was
only intended as compensation for the damage
to releasor's vehicle and his personal injury of
lameness in the shoulder, is sufficient to auuior-
ize a decree setting aside the release.
[Ed. Note.— For other cases, see Cancellation
of Instruments, Cent Dig. fS 68, 74, 77, 79, 80.]
2. Reijcase <S=>16— Reukf in Equity— Mis-
take— Nature or Mistake.
Where the releasor at the time he was in-
jured was suffering from chronic Bright's dis-
ease and received an injury to his shoulder
and his back and gave a release which the de-
fendant secured for the purpose of avoiding
litigation, without fraud or compulsiouj a subse-
auont aggravation of his disease by his injury,
iiough both parties were ignorant of such con-
dition, did not show such a mutual mistake as
to warrant setting aside the release, which was
conclusive.
[Ed. Note.— For other cases, see Release,
Cent Dig. { 31.]
«=37or otber uMs sm same topic and KBT-NUMBBR in all liley-Numbered Dtgests and Indexes
101 A.— 10
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3. Reu:&8b «s>16— Rkuet in Equitt— Mis-
take.
Ignorance of a fact which, if known, would
have prevented the making or altered the terms
of a release does not alone authorize rescission,
since the release cannot be disturbed, unless the
fact of whirh the parties were ignorant was a
material inpredicnt in the contract and disap-
points their intention by mutual error.
[Eid. Note.— For other cases, see Release, Cent
Dig. I 31.]
4. Cancellation or Instbitments €=»37(1) —
Relief in Equity— Plbadino — Grounds.
A claim that a release, if valid against the
releasor, is not an nnswer to the suit by his
executor, claiming damages for the injury as to
which the release was piven, which resulted in.
death of the releasor, is an answer nt law to
the plea, and presents no ground for equitable
intervention.
lEiA. Note. — For other cases, see Cancellation
of Instruments, Cent Dig. §S 06-68, 71.]
5. Death «=5>25 — Sdbvival— Tobt Actions—
Rights of Executob.
Where an iajured person had given a re-
lease from all litigation ari^'ing from the inju-
ries, his executor could not mnintnin suit for
death resulting from such injurie.s, since Pub.
St 1901, e. l!tl, §§ S-12, provides for survival
uf existing causes of action, but not for causes
which have been extinguished.
[Ed. Note.— For other cases, see Death, Cent.
Dig. { 27.]
Exceptions from Superior Court, Merri-
mack County.
BUI by Edward N. Cogswell, executor of
Josiah W. Emery, deceased, against the
Boston & Maine Railroad. On excpptlons by
plaintiCf and defendant to the orders of the
judge. Plaintiff's exceptions overruled, and
bill dismissed.
Bill In equity In aid of an action at law.
ITie plaintiff brought action against the de-
fendants, claiming the death of his testator,
Josiah W. Emery, was occasioned by the
defendants' negligence. The defendants
pleaded the general issue, with a brief state-
aient setting up a release, under seal, of all
olalms against the defendants in consequence
of the accident and injury referred to in the
plalutill's declaration and executed by the
plaintiff's testator, December 26, 1013. There-
upon the plaintiff brought this bill to have
the release set aside upon the ground that it
was executed upon a mutual mistake as to
Ibe Identity, character, and extent of the in-
juries which had been received by Emery,
and In entire ignorance of the principal in-
juries whidi resulted in his death and on ac-
(wunt of which the action was brought The
defendants answered, denying the allegations
of the Ull. The plaintiff then claimed in an
amendment to the bill that the release ex-
ecuted by Emery befoi-e his death was not a
bar to the suit brought by his executor,
claiming damages for the death resulting
from the injury. The cause was heard upcm
the pleadings by Branch, J., who found the
following facts: December 24, 1913, Josiah
W. Emery was struck uiJon a grade crossing
liy the defendants' motor section car, and
tin-own out of the sleigh in which he was
j riding. The only Injur; of which he com-
plained was a lame shoulder, side, and back.
He drove home, and then drove to Hennlker
village, a mile and a half, for liniment and
alcohol, which bis wife applied for several
days. There was a large black and blue spot
below his right shoulder and a small one In
the small of his back above bis right hip.
The deceased did bis farm work as usual the
day of the accident and the following day.
On December 28th, as he was driving to Hen-
nlker, he met the claim agent of the railroad,
who drove with blm to the railroad station,
and on the way talked about a settlement
The only claim of personal injury then made
by Emery was a little lameness of the shoul-
der. Twenty-five dollars was agreed upon to
settle the claim for both personal and prop-
erty damage. A release was drawn up, which
was read by Mr. Emery, was read over to
him, and was fully understood by him. There
was no fraud.
Some time in January, Mr. Emery began to
be troubled with shortness of breath. About
the middle of February, he gave up all work,
and died March 1, 1914. February 16th he
first consulted a doctor, who thought him
afflicted with Brigbt's disease, a diagnosis
which was subsequently confirmed. The
plaintiff claimed that Brigbt's disease result-
ed from the Injury. From the medical testi-
mony the court found that Emery's death
was caused by chronic Brlght's disease, which
be must have had for a considerable time b«>-
fore the accident, and that the accident could
In no way be regarded as the cause of the
disease, but the effect of the fall was to ac-
celerate the course of the disease and to
hasten death.
Neither Emery nor the claim agent had
Itnowledge of Emery's bodily condition, which
rendered the results of the accident more
serious to him than they might otherwise
have been. The dalm ag^it, for the purpose
of avoiding litigation. Intended to settle once
and for all every claim which Emery had or
might have in the future growing out of this
accident Hie release so stated, and It was
so understood by Mr. Emery. The railroad
Intended to buy Its peace.
The court ruled that these facts present a
case where a contract was fairly entered Into
by both parties, and where the tecma of the
contract were themselves fair, in view of
the facts which the parties knew at the time,
but a case where both parties contracted in
ignorance of an Important fact which, If
known, would have materially altered the
terms of the agreement and found that this
is not a case where the parties "negotiated
upon a mutual understanding tliat It was
doubtful who was to blame for the acddoit
and what the plaintiff's Injuries might turn
out to be," and where "both parties intended
to take the risk of loss as It might there-
after appear," but that It is rather a case
wh«>re wltliout reference to the question of
liability the amount paid depended upon, and
«%=»For other cues see ume tcp<e and KEY-NUMBER Id all Key-Numbered Digest! and Indexea
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COGSWELL V. BOSTON & M. R. B.
147
was Intended "In some degree to be com-
mensurate with, existing Injuries," and made
the following orders: (1) That the prayer of
amended bill be denied as matter of law, and
the plaintiff excepted. (2) That the release
be set aside upon the ground that It was ex-
ecuted by reason of a mutual mistake of
fact, and the defendants excepted. ISie
defendants also excepted to the denial of
th^r motion for the dismissal of the bill
made at the close of aU the evidence, and to
the findings as to the character of the case
upon the groimd that they were unsupported
by the evidence and were inconsistent with
prior special findings.
Joseph S. Matthews and Martin & Howe,
all of Concord, for plaintiff. Streeter, De-
mond, Woodworth ft Sulloway, of Concord,
for defendant.
PARSONS, C. J. The plaintiff's testator,
Emery, was thrown from Ills sleigb Decem-
ber 24, 1913, by a collision with the defend-
ants' motor section car upon a highway
grade crossing of the defendants' road. He
died March 1, 1914. The plaintiff brought
suit against the defendants, claiming the
death was caused by the collision, which was
alleged to have been due to the defendants'
negligence. In answer, the defendants plead-
ed a release under seal executed two days
after the accident. This purported to be a
release and discbarge of all causes of action
arising ont of the accident. Thereupon the
plaintiff, in accordance with the procedure
suggested in Mclsaac v. McMurray, 77 N. H.
4(56, 93 Atl. 115, L. R. A. 1916B, 769, brought
this bill to set the release aside.
[1] The bill alleges that the Injuries which
resulted in Emcir's death were unknown to
Ijoth parties when the settlement evidenced
by the release was maide, and that the con-
tract of settlement then agreed upon was
only Intended as compensation for the dam-
age to Bmery's sleigb, and the only personal
injury of which Bmery then complained, "a
little lameness in the shoulder." The allega-
tions are sufficient to authorize a decree for
tlie plaintiff within the rules laid down in
Mclsaac v. McMurray, in which the subject
of reformation or rescission for mistake is
fully considered. It was there pointed out
that a release under seal was the written evi-
dence of a contract made by the parties, and
tbat if by mistake in a material matter the
documentary evidence failed to state ac-
curately the Intention of the parties — 1. &,
the contract— equity had power in a proper
case to give relief. In that case, whlc^ was
also a suit for personal damages caused by
negligence, it was claimed that the real con-
tract between the parties was not for the set-
tlement of all c<mtroversy between them in
reference to the defendants' liability for the
plaintiff's injuries, but was merely to give
the plaintiff compensation for certain known
injuries, and that at that time plaintiff had
reoeiTed a serious injury, a broKen hip, of
which injury both parties were In Ignorance
at the time of the contract of settlement. It
was held that these facts, if so proved as to
overcome the weight of the written document
as evidence, would authorize the rescinding
of the release so far as it was in conflict
with the contract of the parties.
The mistake claimed being mutual Igno-
rance at the time of the contract of the seri-
ous injury to the plalntUTs hip, it was said:
"Upon these facts, the question arises whether
the mistake related to a matter that was mate-
rial to the contract of settlement The fact that
the parties were justifiably ignorant of the se-
rious injury to the plaintiff's hip does not alone
show that the mistake was in respect to a ma-
terial matter. Whether it was or not depends
upon the intention of the parties in makinz the
contract. If their purpose was to termmate
all dispute and litigation between them in ref-
erence to the defendant's liainllty for negli-
gence in causing the piaiutifTs injuries, * * *
the mistake as to the extent of his injuries
would be immaterial." Mclsaac v. McMurray,
7T N. H. 466, 472, 473, 93 AU. 115, 118 (L.
R. A. 1916B. 769).
The question In that case arose upon the
pleadings, and It is clearly stated that the
matter to be determined by proof was the
actual contract. What did the parties intend ?
What was the proposition upon which the
minds of the parties met? Was it the re-
lease of the defendant from all further lia-
bility to answer for the consequences of the
accident, or the amount of compensation that
ought to be paid for a certain known In-
Jury?
[2] In this case the plaintiff failed upon
hearing to establish a tangible. Independent
injury existing at the time of the settlement
of which the parties were Ignorant The fact
found of which the parties were Ignorant was
that at the time of the accident Emery was
afflicted with chronic B right's disease which
he had had for some time before. This dis-
ease caused his death. The disease was not
caused by the accident, but the effect of the
fall was to accelerate the course of the dis-
ease and thus to hasten death. The settle-
ment which the release was offered to prove
was made between E^ery and the defendant's
claim agent It is fom>d that the claim agent
for the purpose of avoiding litigation. In-
tended to settle once and for all every claim
which Bmery bad or might have In the future
growing out of this accident The release so
stated. It waa so understood by Emery.
The railroad intended to buy Its peace. This
was an offer of a certain sum In full of all
claims which could arise out of the accident,
knowingly accepted, without fraud or com-
pulsion by the party to whom the offer was
made. Emery's acceptance of the offer which
he understood completed the contract Mc-
DanleU v. Bank, 29 Vt 230, 235, 70 Am. Dec.
406. The contract proved by parol Is the
precise contract proved by the written evi-
dence, the release pleaded. There is no evi-
dence to support the conclusion that the rail-
road Intended to pay $25 In compensation for
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tbe lame shoulder and fractured sleigh, leav-
ing open the question of liability to make
compensation for other Injury or other re-
sults than temporary lameness, or that Emery
80 understood. The conclusion that such was
the contract is not supported by evidentiary
findings which establish a different contract.
[I] Upon these facts the trial court ruled
that the facts presented a case where a con-
tract was fairly entered into by both parties,
and where the terms of the contract were
themselves fair in view of the facts which the
parties knew at the time, but a case where
both parties contracted in ignorance of an
Important fact, which, if it had been known,
would have altered the terms of the agree-
ment But ignorance of a fact which, if
known, would have prevented the making or
altered the terms of an agreement does not,
of itself, authorize the rescission of an agree-
ment In this case both parties knew that
EJmery had sustained a fall, necessarily caus-
ing more or less shock to his system. What
the result would be they could not know.
If they had known of his bodily condition,
they might, with the aid of medical advice,
nave anticipated more serious consequences
from thj shock than they would have antici-
pated in the case of a similar person in
good health. Whether their ignorance re-
lated to a past or existing fact or to a future
uncertain result need not be determined. Mo
Isaac V. McMurray, supra, 77 N. H. p. 475,
03 AtL 115 ; 8. c., I* R. A. 1916B, note page
777.
The most favorable view of the findings for
the plaintiff is that, unknown to the parties,
Emery at the time of the settlement had re-
ceived from the accident a shock to his
system liable to be followed by serious re-
sults. Conceding for the purpose of the
discussion that this constitutes an additional
injury of which the parties were Justifiably
ignorant at the time the contract was made,
does such ignorance authorize the cancella-
tion of the contract? The contract may not
be disturbed unless the fact of which the
parties were Ignorant was —
"a material Insredient in the contract of the
parties, and disappointfi their intention by a
mutual error. But where each party is equal-
ly innocent, and there is no concealment of facta
which the other party has a right to know, and
no Burpriee or imposition exists, the mistake or
ignorance, whether mutual or unilateral, is
treated as laying no foundation for equitable
interference. It is strictly damnum absque
injuria." 1 Story, Eq. § 151; Mclsaac v. Mc-
Murray. snpra, 77 N. H. 473, 93 AtL 115, L.
R. A. WlfiB, 769.
"There are many extrinsic facts surronnding
every business transaction whirh have an im-
gortant bearing and influence upon its results,
ome of them are generally unknown to one or
both of the parties, and, if known, might have
prevented the transaction. In such cases, if a
court of equity could intervene and grant re-
lief, because a party was mistaken as to such
a fact which would have prevented him from
entering into the transaction if he had known
the truth, there would be such uncertainty and
inatal^ty in contracts as to lead to much em-
barrassment As to an such facta, a party must
rely upon his own circumspection, ezaminaticHi,
and inquiry; and, if not imposed upon or de-
frauded, he must be held to his contracts."
Dambmann v. Schulting, 75 N. X. 55, 64.
"The fact concerning which the mistake is
made m:ust be material to the transaction affect-
ing its substance, and not merely its incidents.
♦ • • If a mistake is made by one or both
parties in reference to some fact wliich, though
connected with the transaction, is merely in-
cidoutai, and not a part of the very subject-
matter, or essential to any of its terms * * *
the mistake will not be ground for any relief
affirmative or defensive." 2 Pom. £q. Jur. f
&56.
"The fact involved in the mistake must have
been as to a material part of the contract,
• • ♦ an intrinsic fact; that is not • » •
material in the sense that it might have bad
weight if known, but that its existence or non-
existence was intrinsic to the transaction, one
of the things actually contracted about" Kow-
alke V. Electric Co., 103 Wis. 472, 79 N. W.
702, 74 Am. St Rop. 877.
See Kerr on Fraud and Mistake, p. 433;
Laldlaw V. Organ, 2 Wheat. 178, 4 h. Kd.
214; Hecht r. BatdieUer, 147 Mass. 335,
338^ 17 N. E. 651, 9 Am. St Rep. 708.
Whether the fact now in question Is ma-
terial, intrinsic, a part of the subject-matter,
is answered by the finding what the contract
was. If the contract was to make oompensu-
tlon to Emery for Injuries received in the
accident, the unknown injury was a material
part of the contract In such case the sub-
ject-matter was the injuries received. This
position was well put by counsel In argument
In the claim that what Emery sold was a
lame shoulder, not a death-hastening shock.
The same argument was made in Mclsaac
V. McMurray, that the sale was of certain
bruises, not of a broken hip.
But the fact as found is that the subject-
matter of the contract was the avoidance of
future litigation. The offer to pay a certain
sum to settle once and for all every claim
growing out of the accident, knowingly ac-
cepted by Emery, was the contract Etaiery
having accepted the money tendered on such
conditions, is bound by his acceptance of the
terms. It is found as a fact that the rail-
road Intended to buy Its peace. The subject-
matter of the contract, that which the parties
bought and sold, using the language of coun-
sel, was not Emery's injuries, but the rail-
road's peace. The extent of Emery's Injury
did not affect the subject-matter of the con-
tract
It may be the amount paid or to be paid
was determined with reference to the injuries
understood to have been received, but the
manner in which the compensation considered
sufficient was arrived at Is not necessarily
part of the subject-matter. Doubtless the
parties, although intending to settle the
whole matter, might have made their settle-
ment dependent upon the receipt by E^ery
of adequate compensation for past and
future damage resulting from the injury,
but the explicit finding that the subject of the
contract was the avoidance of all future
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STATE V. WARNER
149
litigation renders impossible such Interpreta-
tion of the contract In this case.
Ttae subsequent general findings or rulings
made by tbe court are inconsistent witb the
special finding what the contract was. The
exceptions thereto, to the denial of the motion
to dismiss, and to the decree setting aside the
release are sustained.
[4] There was no error In the order deny-
ing the prayer of the amended bill. The
claim therein set up that the release, if
valid against a suit by Emery, is not an an-
swer to the suit by his executor claiming
damages for an injury resulting in deatli, if
sound, IS an answer at law to the plea, and
presents no ground for equitable intervention.
f5] As to the question of law which has
been argued, it seems sufllctent to say that,
Emery's cau.se of action having been dis-
charged before his death, none was in ex-
istence at his death upon which his executor
can maintain a suit. P. S. c 191, H 8-12,
provides for the survival of existing caus-
es of action in case of the death of one of
the parties. No action is given the executor
upon a cause which has been extinguished
by Judgment or contract In the testator's life-
time. See Louisville Ry. v. Raymond. 1.^5
Ky. 738, 123 S. W. 281, 2T I/. R. A. (N. S.) 176,
and notes. The plalntlfTs exception Is over-
ruled.
Bill dismissed. All concurred.
(91 vt. 3M)
STATE V. WARNER.
(Supreme Court of Vermont Windsor. May 1,
1917.)
1. Cbimiwai, Law «=»384— Dbfensib— Ina^N-
ITT — EVIDENCI! — ADMISSIBIUTT.
Where one areused of murder defended on
the ground of insanity, and offered testimony
tending to show that a diseased mental condition
lipjran two years before the alleged offense, tes-
timony of persons who knew him. as to his sani-
ty, for a considerable period prior to the of-
fense, was not inadmissible as too remote.
[Ed. Note.— For other cases, see C5riminal
Liw, Cent Dig. } 848.]
2. HojaciDE ^=»179 — Defenses — Insahitt
^KviDENCE — Admissibility.
When one accused of murder puts his men-
tal condition in issue by evidence tending to
show Insantty, his whole life may be canvassed
for evidence bearing upon that question, and his
ancestry and family history may be investigated.
[Ed. Note.— For other cases, see Homicide,
Cent. Dig. { 380.]
3. Homicide €=179 — Defenses — Insahitt
— ^Evidence— Admissibility.
One accused of murder cannot, by limiting
bi? own evidence as to his alleged insanity to a
certain period of time, circumscribe the inquiry
on behalf of the prosecution.
[Ed. Note.— For other cases, see Homicide,
Cent. Dig. { 380.]
4. Homicide «=>151(2) — Defenses — Insan-
ITT — Evidence— Admissibility.
When one accused of murder introduces evi-
dence tending to show that he was Insane, the
burden is upon tbe state to show all the circum-
stances affecting the question of sanity; since it
is the state's duty as well to prevent conviction
of an insane person as to prevent a sane per<
son from escaping punishment.
[E3d. Note. — For other cases, see Homicide,
Cent Dig. { 277.]
6. Cbiminax Law «=>1169(2) — Apfeai. —
Habmless E>brob.
Admission of improper evidence to establish
an undisputed fact is harmless error.
[Ed. Note. — For other cases, see Criminal
Law, Cent Dig. § 3138.]
6. HoMiciDB «=151(2)— Defenses— Inbanitt
—Burden of Pkoof.
Where one accused of murder defends on the
ground of insanity, the burden is on the state
to establish his sanity as an intrinsic element
of the crime.
[Ed. Note.— For other cases, see Homicide,
Cent Dig. | 277.]
7. Homicide 'S=>151(2)— Defenses— Insanity
—Burden of Proof.
Sanity being the normal condition of the hu-
man mind, the law presumes that one accused of
murder is sane ; but insanity is not an aflirma-
tive defense.
[Ed. Note. — For other cases, see Homicide,
Cent Dig. { 277.]
8. Homicide <s=»151(2), 237— Dkfbhses— Iw-
BAN ITY — I NBTBDCTIOna.
In prosecution for murder, defended on the
ground of insanity, instruction that it is the
burden of the defendant, in the first instance, to
malce proof on the issue of his sanity, but that
when it was in the case his sanity must be
proved beyond a reasonable doubt, was proper.
lEd. Note.— For other cases, see Homicide,
,Cent Dig. }S 277, 600.J
Exceptions from Windsor County Court;
Franlc L. Fish, Judge.
George Warner was convicted of murder,
and he excepts. Affirmed.
Argued before MUNSON, C. J., and WAT-
SON, HASELTON, POWERS, and TAY-
LOR, JJ.
H. G. Barber, Atty. Gen., and Bert E.
Cole, State's Atty., of Windsor, for the State.
Fred G. Bicknell, of White River Junction,
for respondent
POWERS, J. [1] George Warner has been
convicted of murder in the first degree. The
homicide was committed In the town of An-
dover on November 4, 1914, and Henry Wig-
gins was Its victim. The respondent brings
here but two questions, neither of which re-
quires any particular statement of the evi-
dence. He Introduced some evidence tend-
ing to show that he was Insane at the time
of the homicide, and tliat this mental un-
soundness developed about two years be-
fore that event Thereupon the state pro-
duced various witnesses, who had known
the respondent for many years preceding
the trial, and after they had testified to
certain facts, circumstances, and observa-
tions, they were allowed, subject to the re-
spondent's exception, to predicate thereon
opinions of Ills mental soundness. The only
question raised below or made here regard-
ing the admissibility of tills testimony is
that it was too remote. In view of the evl-
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dence of the respondent, and It Is Insisted
that these witnesses should have been limit-
ed to opinions based upon facts observed
within the two years preceding the crime —
the period covered by the respondent's evi-
dence. The exception Is without merit. Re-
moteness is ordinarily a question addressed
to the discretion of the trial court State
V. Bean, 77 Vt 384, 60 AU. 807; Smith v.
C. V. Ry. Ck>., 80 Vt. 208, 67 Atl. 535 ; Belka
v. Allen, 82 Vt 456, 74 AtL 91; Perking v.
Perley, 82 Vt 624, 74 Atl. 231. There is
nothing in the record before us to take the
case out of the mle.
[2-C] When a respondent puts his mental
condition in issue by the introduction of evi-
dence tending to show his insanity, he opens
an Inquiry that may take a very wide range ;
how wide depends upon the circumstances
of the case in hand. Undh. Cr. Ev. { 160;
1 Wig. Ev. { 233. Broadly speaking, his
whole life may be canvassed for evidence
bearing upon the question, and his ancestry
and family history may be investigated. In
this very case, the respondent properly In-
troduced evidence tending to show insanity
in bis ancestors, and asked the jury to be-
lieve that the seeds of the malady came to
him by inheritance. In these circumstances,
if not otherwise, it was proper for the state
to show that mental disease had not appear-
ed in the respondent during the time covered
by its witnesses. For this very fact was, of
Itself, a circumstance bearing upon the prob-
ability that it developed at all. Nor can a
rcsi)ondout, by limiting his own evidence to
a certain period of time, thereby circum-
scribe the inquiry or affect the right or duty
of the prosecution. Moreover, sound public
l)ollcy and a proper regard for the rights and
interests of a respondent In a capital case,
whose mental responsibility is an issue at
his trial, forbid that he should be allowed
to concede away his rights by admitting that
he was sane at any previous date or time.
When the issue Is once raised, it is the duty
of the state to produce sufficient relevant
evidence to establish his legal responsibil-
ity by the measure of proof required by the
law. It Is as much the duty of the state to
protect an insane man from conviction, as it
is to prevent a sane man from escaping that
result We cannot say from the record that
the ruling complained of resulted in a wider
range of inquiry than was allowable. Be-
sides, the respondent's position only amounts
to this : Improper evidence was admitted to
establish an undisputed fact — which is harm-
less error. McKIndly v. Drew, 71 Vt 138,
41 Atl. 1039; Coolidge v. Taylor, 85 Vt. 39,
80 Atl. 1038; First Nat Bank v. Bertoll, 88
Vt 421, 92 Atl. 070; State v. SaldeU, 70 N.
H. 174, 46 Atl. 1083; 85 Am. St Rep. 627;
Dietz V. Big Muddy C. & I. Co., 263 lU. 480,
105 N. E. 289; Watters v. Brown, 177 Ala.
78, 58 South. 291 ; Standard Life & Ac. Ins.
Co. v. Schmaltz, 66 Ark. 588, 53 S. W. 49, 74
Am. St Rep. 112.
[(] At the close of the diarge, the respond-
ent excepted to the failure of the court to in-
struct the jury that:
"The burden of proof as to sanity, in cases ol
murder of the first degree, and with premedita-
tion, enters in as an element of the cnme."
From the course of the trial as shown by
the record, it is manifest that the meaning
of this somewhat obscure exception was that
the respondent was entitled to an instruc-
tion that the burden was on the state to es-
tablish the respondent's sanity as an intrin-
sic element of the crime, and to establish it
beyond a reasonable doubt Tbia is unques-
tionably the law.
[7] Sanity is the normal condition of the
human mind. Consequently, the law, in re-
liance upon this self-proving assertion, pre-
sumes at the outset of the trial that the re-
spondent in any given case possesses the req-
uisite degree of mental capacity to mate
him criminally responsible. And this pre-
sumption answers the administrative re-
quirements of the law until evidence oomes
into the case from some source tending to
show otherwise. But, if such evidence ap-
pears, it then becomes the duty of the prose-
cution to establish the respondent's sanity
as an essential ingredient of the crime, and
to establish it beyond a reasonable doubt.
A frequent way of stating this rule, and one
made use of below in a part of the charge
unexcepted to, is this: The law presumes
the respondent to be sane until the contrary
is shown by evidence; and this presumption
continues until overcome by evidence to the
contrary. Even so accurate a legal writer as
Judge Cooley uses language much like this
in People v. Garbutt 17 Mich. 0, 97 Am. Dec.
162. Nevertheless, we consider this form of
statement unfortunate and calculated to mis-
lead. The expression "overcome by evi-
dence" naturally indicates that the respond-
ent must overcome the presumption, must
produce evidence to outweigh it Such is not
the law. It is not the law of Judge Oooley's
opinion. It is not the law of the charge
below, taken as a whole. Insanity is not
an affirmative defense. It is a means of
meeting the case made by the prosecution
and weakening one of its essentials; be-
yond this it need not go. "Sanity is an in-
gredient in crime as essential as an overt
act," is the way Chief Justice Breese correct-
ly puts it In Chase v. People, 40 111. 352.
It is necessarily involved in every criminal
trial, and the burden of proof is always and
at all times on the state. The presumption
of sanity answers the requirement of this
burden until countervailing evidence chal-
lenges it; but then, upon all the evidence
in the case, sanity must be affirmatively
established beyond a reasonable doubt Oth-
erwise, there can be no conviction. The duty
of going forward on this subject is on the
respondent, but nothing more. State v. Do-
herty, 72 Vt at page 403, 48 Atl. 658, S2
Am. St Rep. 951; 2 Chamb. Ev. {974; 1
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VERMONT MARBtJB 00, ▼. EASTMAN
151
Whart & StllW, Sfed. Jur. $ 315; Darls
V. United States, 160 U. S. 469, 16 Sup. Ct.
:io3, 40 L. Ed. 499, and cases cited. The
''harge of the court below was in Iiarmony
with the foregoing views. While it did not
follow the exact language of the respond-
ent's request on that point, it recognized the
nile of law contended for, and adequately
{)laced the same before the Jury, Nothing
more was required. State v, Eaton, 63 Vt.
574.
[t] The court gave a supplemental instruc-
tion on this subject as follows:
"The defense of insanity is made by the re-
fpondent He brings it here, and it is for him,
in the first instance, to make proof on that is-
sue. But when it is In the case, * • • and
^ou are considering the right and wrong of that
issue, yon must find the guilt of the respondent
established beyond any reasonable donbt; which
means, as applied to insanity, that at the time
of the killing the act was not the result of in-
sanity,"
Complaint is now made of the expression
"make proof on that issue," and the respond-
pDt treats It as meaning "make proof of that
issue." It is apparent, however, that it was
only intended to mean that the respondent
was required to produce proof or evidence
nn that isisue. The instruction as a whole
"breath.es the true spirit and doctrine of the
law," and, especially in view of the con-
text, th ere Is no fair ground to say that the
juiy WQ8 misled by it Fassett v. Rosbury,
53 Vt 552; Ide v, Boston & Maine Rail-
road, 83 Vt 66, 74 Atl. 401.
We h.ave no occasion to give further oon-
siderati on to the character and effect of the
presumvtion of sanity to Inquire whether
it Is in the nature of evidence or a mere ad-
mlnlstrstlve expedient that becomes functus
officio tta soon as evidence of insanity comes
into the case ; for. though the charge gave it
•'vldentlal effect, no exception was taken,
and no question thereon is made here.
We httve patiently examined the transcript
and hav-e carefully considered the arguments
of coun;sel on all points presented; we And
no erroi and are satisfied that the respond-
ent had a fair and impartial trial, and that
the result was fully warranted by the evi-
dence.
Judgment that there is no error in the
record and that the respondent takes noth-
ing by his exceptions. Ijet sentence pass and
execution be done.
<M vt. 42t)
VERMONT MARBLE CO, t, EASTMAN et aL
(Supreme Court of Vermont Rutland. May 1,
1917.)
1. Appeal and Ebbob $=»265(1) — Questions
RE.VIBWABUS— Rulings on Evidencis.
The findioga of the chancellor stand like the
report of a special master within P. S. 1208,
providing that no question as to the admission
or rejection of evidence by a special master
^hnll bo heard in the Supreme Court, unless rais-
ed by exception to the report filed !n the court
of chancery.
[Ed, Note,— For other cases, see Appeal and
Error, Cent Dig, {{ 1638, 1538, 1543-1551.]
2, Appbai. and Ebbob «=>265(1)— Exckptions
— Sebticx or Advebse Pabtt.
Although plaintiff had no knowledge of ex-
ceptions to findings of fact filed by defendant
until briefs were exchanged, the exceptions will
be considered where it does not appear that at
the time of filing a copy was not left with the
clerk of court, in view of rule 48, requiring the
derk to notify the adverse party of such filing.
[Ed, Note. — For other cases, see Appeal and
Error, Cent Dig, If 1536, 1538, 1543-1561.]
3, Appeal and Errob ^=522(1) — Record —
Matters Included— Testimony.
Where the transcript of the testimony was
not made a part of the chancellor's report^ that
it was referred to by defendants in their ex-
ceptions and made a part thereof would not
bring it before this court
[Ed. Note, — For other cases, see Appeal and
Error, Cent Dig. §§ 2367, 2368, 2370, 2371,1
4, Appeal and Ebbob €=31078(1) — Excep-
tions—WAivEa,
Exceptions not briefed were waived,
[Ed. Note.— For other cases, see Appeal and
Error, Cent Dig. i 4266.]
6. Appeal and Ebbob «=»694(1)— Fikdiros—
Presumption.
Where exceptions to findings of fact involve
the consideration of evidence not before this
court, it cannot say that the evidence did not
support the findings.
[Ed, Note, — For other cases, see Appeal and
Error, Cent Mg, {{ 2910, 2915.]
6, Appeal and Ebbob €=91071(1)— Finoinob
—Harmless Ebbob.
Defendants' exceptions to findings will not
be considered where, if it be conceded thot the
court was wrong, the defendants were not
banned.
[Ed. Note, — For other cases, see Appeal and
Error, Cent Dig, { 4234,]
7, Boundabies €=>6— Coubses,
The two first calls in a deed which deter-
mined the others were as fellows: "(1) C<Hn-
mencing at a point on the first stone wall west
of the highway leading past the residence of the
said Mead 20 rods south of said Mead's north
line, the north end of said stone wall being 55Vi
rods westerly from said highway, and said point
being on said stone wall 20 rods from sold
Mead's north line ; (2) thence southerly on said
stone wall to the end of the same, and thence
southerly on the fence that joins on the same,
in all 20 rods to a maple tree." The highway
leading past M. ran almost due north and south,
and the north line of his land ran almost due
east and west while the stone wall extended
from the north line somewhat southwesterly,
Held, that the first call was to be determined
by measuring sooth at right angles with M.'s
north line to the place where the measurement
of 20 rods just meets the stone wall, and not
by measuring that distance from said north line
along die stone wall, while the second call should
be measured from the point thus determined
southerly along the stone wall to the end there-
of and in the direction thus started 20 rods from
the point first determined.
[Ed. Note.— For other cases, see Boundaries,
Cent. Dig, i§ 47-67,]
8, Boundabies €=>6— Coubsks.
where a boundary line is described as run-
ning toward one of the cardinal points of the
compass, it should be considered as running di-
rectly In that course, unless other words are
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used for the purpose of qualifying its meaning
or its direction is controlled by some object,
[Ed. Note.— For other cases, see Boundaries,
Cent Dig. §§ 47-57.]
9. BOIDND ABIES €=>.3(4) — COCBSES.
In description "thence southerly on said
wall ten rods," the words "on said wall"' show
that the course of the line is controlled by the
course of the wall.
[Ed. Note. — For other cases, see Boundaries,
Cent. Dig. {{ 14-18.]
10. BOTJNDARIEB ®=>6 — COUBBES.
The distance of a course being definitely
stated in a deed, without any monument as its
termination, the course and distance must gov-
ern.
[Ed. Note. — For other cases, see Boundaries,
C«it. Dig. §1 47-57.]
11. Deedb €=395, 110— CoNarBUCTioN— QnEs-
TioNs OF Law.
t Where the language of a deed, when inter-
preted in connection with, and in reference to,
the nature and condition of the subject-matter
at the time it was executed, and the obvious
purpose the parties had in view, is clear and un-
ambiguous, its meaning is a question of law for
the court, and the intent cannot be altered by
evidence, or findings, of extraneous circum-
stances.
[Eld. Note. — For other cases, see Deeds, Cent.
Dig. IS 238, 241-255, 293.]
12. Deeds €=»99—CoN8TBncrioN— Evidence.
Deeds, surveys, and plans not referred to in
the deed in question can neither restrict nor
extend the import of the terms used.
[Ed. Note.— For other cases, see Deeds, Cent.
Dig. a 261-265.]
13. Deeds €=»101 — Pleadino «=536(1) —
Facts Admitted — Pbactical Constbuc-
TION.
Where the effect of the pleadings is to ad-
mit defendants' ownership of a narrow strip of
land along the boundary m dispute, and sucn is
also the [H'actical construction which has al-
ways been given to the deeds through which de-
fendants trace title, such strip will be considered
as a part of defendants' grant
[Ed. Note. — ^For other cases, see Deeds, Cent
Dig. { 233; Pleading, Cent Dig. i§ 81, 84, 86.]
14. bountdabies «=>40(1) — constbuotion —
Question of Fact.
The location of the division line on the land
described in the deeds was a question of fact to
■ be determined on the evidence.
[Ed. Note. — For other cases, see Boundaries,
Cent Dig. {{ 196-203.]
15. Equitt $=3389— Findings— Conclusions
OF Law— "Decision."
Chancellor's finding that "the decision is that
the line between the properties involved in this
case is the so-called pin line" is not a conclu-
sion of law; as a "decision" of the court is its
finding upon either a question of law or fact
arising in a case.
[Ed. Note. — For other cases, see Equity, Cent
Dig. i 830.
For other definitions, see Words and Phrases,
First and Second Series, Decision.]
16. BouNDABiKS «s»3(3)—DiBCBEPANCT— La-
tent Ambiguity.
That the length of the coarse required by
the second call in the deed, the southerly ter-
minus of which is given as the maple tree, was
about 1.8 rods shorter than the distance given
in the deed, Aeld not to constitute a latent am-
biguity.
[Ed. Note.— For other cases, see Boundaries,
Cent Dig. fS 6-19.]
17. BouxDABiEs $=»3(1) — CouBSES- Abuttals
AND Monuments.
As between courses and distances, on one
hand, and abuttals and monuments, on the other,
the latter, when identified, must control; the
reason being that mistakes in the former are
more probable.
[Ed. Note. — For other cases, see Boundaries,
Cent Jyig. Si 3, 5.]
18. Boundaries «=>6 — Coubsks — Place or
Beginning.
The place of beginning being well known and
ascertained, it must govern, and the grant must
be confined within the boundaries given in the
deed.
[Eld. Note.— EV>r other cases, see Boundaries,
Cent Dig. SS 47-57.]
19. Boundabies €=96— Unckbtaintt in De-
scription—Calls.
There being no uncertainty in the descrip-
tion, to locate the lines, the regular order of the
calls should be observed and followed, and a
posterior line cannot be controlled by a reverse
survey.
[Ed. Note.— For other cases, see Boundaries,
Cent Dig. S§ 47-67.]
20. Evidence €=3390(3)— Bxtbinsio Btidencb
TO Vary Deed.
Extrinsic evidence held not admissible to
show that, by mistake, one tract of land instead
of another was inserted in either of two deeds,
thereby establishing a different contract
[Ed. Note. — For other cases, see Evidence,
Cent Dig. SS 1723, 1724.]
21. Frauds, Statute of «=>100 — Memoran-
dum—Sufficiency.
Signed statements referrinj; to land wer«
insufiicient to answer the requirements of the
statute of frauds where they did not contain sub-
stantia) terms of a contract for sale expressed
with such certainty that they could be under-
stood from the statements alone or from some
other writing to which they referred.
[Eld. Note. — For other cases, see £>auds, Stat-
nfe of. Cent Dig. { 189.]
22. BouNDAinxs «=948(6) — Acquiescence —
Advbbse Possession- Essentials.
Recognition of and acquiescence in a bound-
ary line is of no force unless followed b^ such
possession of the land beyond the true divisional
line for the period of 16 years as shall give a
perfect title by adverse possession.
lEd. Note.— For other cases, see Boundaries,
Cent Dig. S 240.]
23. Advkbsk Possession $=»13 — Oocufanct
Without Claim of Right.
That a strip of land was used for dumping
refuse from a quarry, that marble blocks were
placed thereon, or that guys and ropes or cables
were maintained upon the same would not give
title by adverse possession where such occupan-
cy was not under a claim of right.
[Ed. Note. — For other cases, see Adverse Pos-
session, Cent Dig. SS 65, 67-76.]
24. Adverse Possession €=943(4) — Tacking
Possession— Ev i dbnce.
Where each prior grantee did not transfer
to his successor his possession of the land with-
out the calls of his title deeds, and the laud ad-
versely held has never been covered by the de-
scription in any of the deeds within defendant's
claim of title, there can be no tacking so as to
make continuity of possession ; as no privity of
estate or of possesion between the successive
decisions is shown.
[Ed. Note.— For other cases, see Adverse Pos-
session, Cent Dig. { 218.]
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163
25. AoTxssK Possession «=>40 — Tnix Rb-
QUIBBD.
Where defendants had not occupied that
{Wrt ot the boundary in dispute for 15 years,
they could not of themselves have acquired any
adverse rights.
[Ed. Note.— For other cases, see Adverse Pos-
tesBioo, Cent. Dig. {g 148-183.]
On Motion for Beargument;
26. VBRDOB and PURCHASEB 4=361— DxscBiP-
noH OF Pbeuibes— "Adjacknt to."
Redtal in a bond for a deed that "said Mead
luTing this day executed a bond to them there-
by agreeing to convey • • • the piece of
land north of and adjacent td said premises"
luld 00 part of the description previously made
in the hoai ; the words "adjacent to" not neces-
sarily implying "adjoining" or "contiguous."
[Ed. Note.— For other cases, see Vendor and
Parchaser, Cent. Dig. {| 97, 98.
For other definitions, see Words and Phrases,
First and Second Series, Adjacent.]
27. Dexdb ^=394— Bond fob Dekd— Mebqkb.
Where the bonds were executory contracts
for deeds, and were executed and consummated
by the deeds subsequently given, they were con-
clusively merged in the deeds, and, not being
incorporated by reference, could not be looked to
in determining the rights of the parties.
[Ed. Note— For other cases, see Deeds, Cent
«B. I 286.]
28. BviDENCE «s>414 — Parol Etidenoe —
Time of Oivine Bond.
Parol evidence was admissible to show the
true time of the giving of eadi bond.
[Ed. Note.— For other cases, see Evidence,
Cent Dig. i 185^:]
20. Appbai, and Ekbob <9=»931(1) — Finding
OF Chancellob— Review— Presumption.
This court will not assume, for the purpose
of finding error, that the evidence did not sup-
port the chancellor's finding,
[Ed. Note.— For other cases, see Appeal and
Error, Cent. Mg. g 3762.]
30. Appeal and Ebrob «:3934(1)— Review-
Intendment.
Every reasonable intendment should be made
m favor of the decree under review.
[Ed. Note. — For other cases, see Appeal and
Error, Cent Dig. gg 3777, 3780-3782.]
8L BocNDABiEs «=»24— Bond fob Deed— Re-
COBDIWO — PBIOBITT.
That one of two bonds for a deed was re-
corded before the other gives it no priority as
a contract for title in determining boundaries.
[Gd. Note. — For other cases, see Boundarlea,
Cent Dig. g 136.]
32. Boundaries «s63 — DEXBRiaNATiON —
SUBVET AND PLAN.
A Rurvey and plan not being participated in,
authorized, or ratified by all the parties to ei-
ther contract to convey, and not being referred
to therein nor in either deed, cannot be consid-
ered in the construction of the bonds for the
deeds or the deeds.
[Ed. Note.— For other cases, see Boundaries.
Cent Dig. gg 264-267.]
33. Boundaries €=»46(2)— Disputed Bo0Hd«
ABT— AOBEEaiENT BT CO-OWNEB.
An agreement by one of several co-owners
establishing a doubtful or disputed boundary
is not binding on the others unless they consent
thereto.
[Ed. Note.— For other cases, see Boundaries,
Cent. Dig. gg 219, 220.]
34. Tenancy in Comuon «sal6(7, 8)— Ad-
verse Possession- Exclusive Ownership.
To render the possession of a cotenant ad-
verse, it must affirmatively appear that the oth-
ers had knowledge of his claim of exclusive own-
ership which was accompanied by such acts of
possession as would amount to an ouster as be-
tween landlord and tenant
[Ed. Note. — For t>ther cases, see Tenancy in
Common, Cent Dig. g 49.]
35. Advebse Possession «=3>85(4)— Claiic of
RioHT— Evidence.
That defendant who owned land adjcHuing
plaintiffs, purchased from plaintiff for a valua-
ble consideration an interest in a part of the
land within plaintifTs title deed, was evidence
tending to show that defendant's previous use
by way of anchoring guys on the land was not
adverse or under a daim of right
[EA. Note. — For other cases, see Adverse Pos-
session, Cent Dig. gg 313, 503, 688.]
36. Easements «=»36(1)— Acquisition— Bub-
den of Proof.
The burden of establishing the prescriptive
right of easement was with the defendants who
claimed title.
[Ed. Note. — For other cases, see Easements,
Cent Dig. gg 77, 78, 88, 89.]
Appeal In Chancery, Rutland County;
Frank U Fish, Chancellor.
Bill by the Vermont Marble Company
agHlnst G«orge P. Eastman and another.
From a decree for orator, defiendants appeal.
Decree affirmed, and cause remanded.
This case was beard before, and facts
found by the chancellor. Among other things
reported and noticed In the opinion, the chan-
cellor states the following facts:
The defendants did not at first claim to
own as far north as they now claim. At the
beginning of the trial and before finding some
old plans (known as the Brown, the Green,
and the Murphy plans) and surveys of the
properties between which the dividing line is
In dispute, they claimed to a line 20 rods
(measured along the line of a fence and wall
on the easterly side of the premises) north of
the maple tree at the southeast corner of the
defendants' land, which is nearly 2 rods
south ot the line now claimed. The plalntlflT
claimed to own to a line 20 rods southerly
at right angles with Mead's north line and
parallel therewith; and. If it failed in es-
tablishing this line, it claimed to the so-call-
ed "pin line" which Is a few feet further
north and is obtained by measuring 10 rods
souQi from Mead's north line and then 10
rods along the east wall. Each side intro-
duced evidence tending to establish its daim
as then made, and the hearing was about to
close when the defendants, having discovered
the old plans and surveys mentioned above,
asked and were granted leave to file a cross-
biU. Tliereupon they filed an amended
answer and cross-bill in which they claimed
the true line to be a line parallel with Mead's
north line and 20 rods north of the maple
tree, at right angles to said north line. The
line so claimed is 33.6 feet further north,
measured along the easterly wall, than the
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101 ATIiAITOIO REPORTEIR
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line to -whlcb defendants before claimed, 3
rods 7% feet north of a line 20 rods soutb
of Mead's north line, and only 16 rods and 9
feet south of this north line. The area of
defendant's quarry lot south of a line meas-
ured at right angles 20 rods south of Mead's
north line Is 7.184 acres ; .south of the "pin
line" It Is 7.436 acres; and south of the line
now clnimed by them It Is 8.69 acres.
The chancellor states that the old surveys
and plans which caused the defendants to
claim the line to be 20 rods north of the
maple tree, measuring at rtght angles to
Mead's north line, and the evidence taken In
connection therewith, induce findings as fol-
lows:
"In the fan of 1866, negotiations having been
entered Into between Andrew J. Mead and pros-
pective purchasers of the quarry property, at
the request of said Mead and Alanda W. Clark,
one of the prospective purchasers, James Brown,
of Rutland, a surveyor, on September 26tb went
to West Rutland for the purpose of- laying out
the boundary lines of the marble property un-
der consideration.
"Accompanied and directed by said Alanda
W. Clark and Mr. Mead and his son, Eugene,
Mr. Brown ran a line at right angles to the
north line of the Mead farm, northerly from the
point where two fences comer at the north side
of a large maple tree. On this line be measured
off 20 rods and then set a stoke. Through this
stake he ran a line parallel to the Mead-Slanch-
ard line easterly to a stone wall, where he set
a stake, and westerly to an old rail fence run-
ning northerly and southerly, and there set a
stake. From the stake first set he continued
the right angle line northerly 10 rods, and there
set a stake, and from that stake ran easterly
parallel with the Mead-Blanchard line to the
said stone wall. From the maple tree he ran
westerly along the line of a board fence 66 rods
to the north bar post of a barway then stand-
ing, and there set a stake, and then turned a
right angle to the north and ran a line to meet
the line parallel with the Mead-BIanchard line.
"On the same occasion a small piece of land
was surveyed lying east of the parcel above re-
ferred to, its westerly boundary being a part
of the easterly boundary of the large parcel, and
the northwest comer being a point on the wall
18 feet southerly from the butternut tree. • ♦ •
"No other parcels of laud were surveyed by Mr.
Brown. » • •
"On September 27, 1866, the day following
Brown's survey, n rough sketch or plan of the
premises was prepared, and Mr. Mead made
and retained a copy thereof for himself, showing
in detail the boundaries, corners, monuments,
and distances, and containing complete direc-
tions for drawing the conveyance as shown there-
on. •• •
"By this survey and Mead's plan the bound-
ary lines of the property bonded to Oliver and
associates were indicated as follows: The east
side of the property was bounded by a stone
wall running in a northerly and southerly di-
rection from a point near the maple tree re-
ferred to, to the north farm line between the
Head and Blnnchanl lots. From the southerly
end of the wall there was a rail fence extend-
ing to the maple tree, and from the maple tree
westerly in the south line of the premises sur-
veyed was a board fence. About midway be-
tween the maple tree and the north farm line
there was a small butternut tree standing on
the east side of the stone wall. The norther '^i
comer of the parcel surveyed and measured by
Brown was 27 feet 3 inches north of the butter-
nut tree and 143 feet 2 inches east of the 20-
rod point. The northerly line [of the property]
was a line beginning at the stone wall on the
east at the point 27 feet 3 Inches north of the
butternut tree, extending westerly through the
20-rod point and parallel with the Mefld-Blanch-
ard division line until it intersected a rail fence,,
which was the westerly [of the property], at
which place there was a stake and stones.
Following the giving of the bond to Oliver
and others, the corporation known here as
the American Marble Company was organ-
ized and began to operate the property In
the way of opening and developing a marble
quarty thereon and excavating the loose
earth. In excavating and opening the quarry
the loose dirt from the top and part of the-
stone taken out by blasting was dumped on
the easterly side of the ledge north of the
northeast corner of the quarry opening.
This company continued Its operations down
to the early part of the year of 1871, when It
became Insolvent, and Its property was as-
signed by the court of insolvency to Charles
Woodhouse as assignee on the 7th day of
April of that year. On the 2lBt day of July
following Woodhouse, as assignee, conveyed
the property, subject to all Incumbrances, to
A. N. Russell and others, who on the 23d of
August, same year, conveyed the same to
the New American Marble Company. At the
March term, 1871, of the court of chancery
Mead brought proceedings to foreclose a mort-
gage of January 4, 1860, given by the Ameri-
can Marble Company on the property, and a
decree was entered in his favor, which de-
cree became absolute April 27, 1872. On the
1st day of July, 1873, Mead conveyed a one-
eighth Interest in the premises to Stlllman C.
White, and seven-sixteenths Interest to Isaac
M. Hillman, and seven-sixteenths Interest
to Lyman A. Bardln. At the March term,
1875, of the court of chancery Bardln and
Hillman, assignees of another mortgage on
the property given by the American Marble
Company, foreclosed the same against the
New American Marble Company and Stlll-
man C. White; the decree becoming absolute
March 27, 187C. In 1875 Bardln and HIU-
man mortgaged their seven-eighths interest
in the property to one Thrall, who, at the
March term, 1878, of said court, obtained a
decree of foreclosure which became absolute
April 12, 1879. On the 16th day of the same
month Thrall conveyed said seven-eighths In-
terest to said Bardln.
At the time the property was being operat-
ed by the American Marble Company there
was a wooden post set at the point located
by Brown as the northeast comer of the
property, whldb post was on the west side of
the stone wall before mentioned and 27 feet
3 Inches north of the butternut tree. Wester-
ly of this post and between the post and the
ledge was a large square cut marble block
in the center of which was Ein iron pin, bent
to hold a guy from the derrick, and westerly
over the ledge there was a row of large iron
pins of various heights about 1^ Inches In
diameter and from 1 foot to 2^^ feet above
the ledge, and west of the ledge was aa ap-
ple tree standing In the line. These objects
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TBRMONT MABBLE CO. y. EASTMAN
155
were practically in the Hue, and, except tbe
apple tree, were apparently Intended to mark
a boDndary.
I>urlng the time that company was operat-
ing the property a boarding house had been
erected a considerable distance west of the
quarry opening and about halfway between
tie ledge and the west fence line of the prop-
erty. This hoarding house was occupied dur-
ing this period by a man named Burr, an em-
ploy§ of the company, and with whom some
of the other employes boarded. While these
premises were occupied by Burr, a portion
of the land west of the ledge was inclosed as
a garden in connection with the boarding
house; the northerly fence of such garden
beginning at a point on th0 west line .fence
and mnnlng easterly to the ledge. The east-
erly end of this fence was connected with
the east end of the fence below referred to
on the Brown and Green line, and also to the
south line fence of the property, by a fence
mnning northerly and southerly across the
property. The indosure in which stood the
boarding house wag used and occupied by
Burr as a garden, and the small inclosure
north of the garden fence was used as a
night pasture for Burr's cattle The garden
fence or board fence was about 80 or 40 feet
north of the boarding house, and the rail
fence on the north line was some 50 or 60
feet further north. At the time of Green's
surrey mentioned below be found these fenc-
es as above set forth.
After the said Bardin obtained an interest
in the property under this deed from Mead
on July 1, 1873, he and Mead caused the
premises to be resnrveyed by G. B. Green, a
eivll engineer, in the latter part of July,
same year. Green surveyed the entire prem-
ises. Including the small lot lying to the
east, and which had l)een sold by Mead for a
dumping ground for the refuse from the mill.
Prior to the time of this survey the wooden
post at the northeast comer of the premises
had disappeared, and a marble post had been
set on tbe opposite side of the wall, which
post Green found to be 27 feet 7 inches north
of the butternut tree and 146 feet east of the
^rod point, or, as designated on Mead's
plan, "point No. 1."
Green ran the northerly line of the prop-
erty beginning at the marble post designated
on Mead's plan as "corner A" westerly
through "point No. 1," or the 20-rod point,
found the iron pin In the large aquare-cnt
block to be in line, and In running over the
ledge foond five large Iron pins in a row,
two of which were exactly on the line, and
in running westerly over the ledge along the
fence before referred to found that the line
passed over a point projecting from a peculi-
ar large flat rock, and continuing the line
westerly to the west line fence, where he
found a stake in stones in the center line of
the old rail fence which was the westerly
boundary of said premises. A short dis-
tance westerly of the large flat rock, and
some 10 or 12 feet north of the line, he found
a marble post whidti Mead said was set to
mai^ the original southwest comer of the
Cflark lot or "second lot B." At this time
there was a marble post on the east side of
the stone wall before referred to and 39
feet south of tbe apple tree. This post was
at the end of a line drawn parallel with tbe
Mead-Blanchard divisional line, and inter-
sected the continuation of the right angle line
before referred to running northerly from
the maple tree at a point 10 rods north of
the Brown and Green line. The post at the
time of the hearing had apparently bew.
buried many years. There was no evidence
that it was ever above the ground, and, if It
was, it was buried before 1890.
Green discovered and called to the attri-
tion of Woodhouse, Clark, and Mead the
fact that the calls In the deed concerning the
boundary did not correspond with the monu-
ments and objects on the land, and that the
marble post marking the northwest comer of
the 96-rod piece was 8 feet farther south of
the butternut tree than Brown had found
and Mead's plan shows. Green located
points on the Clark lot where derrick guys
were fastened, and, having completed his
survey, made a scale drawing of the same,
showing in detail the monuments, courses,
distances, buildings, fences, outline of the
quarry opening, outline of the quarry dump,
and the guy hitches located on that lot, and
also made complete notes of the plan with
regard to the various points and matters
relating thereto. After the plan had been
completed and the parties had verified the
work, the following statement was placed on
the plan:
"July 29, 1873. Boundaries, corners, measure-
ments and notes made hereon are agreed to and
witnessed as correct."
This statement was signed by A. J. Mead,
who at that time owned a one-tenth interest
in the Clark lot, by one Marcellus Newtcm,
who was familiar with the property, by
Charles Woodhouse, who was secretary of
tlie American Marble Company, and at that
time one of the owners of the small parcel
or dumping ground, and was also signed by
J. E. Manley, who was Mead's attorney.
A statement was made and signed by H.
G. Clark (who at the time owned a three-
tenths interest in the Clark lot, or "second lot
B," and was also one of the owners of the
small parcel or dumping ground) as follows:
"July 28, 1873.
"This is to say whereas myself and others pur-
chased options on two adjoining pieces of prop-
erty, one on September 29, 1866, and one on
October 2, 1866, both being owned by one A, J.
Mead and which were both later on deeded on
January 1, 1868; and whereas, in both deeds it
hag since been found out that the way in which
the said parcels were described in tbe records is
not equivalent to the parcels as originally laid
out and marked by one Jas. Brown and agreed
to by the said Mead and ourselves: Now, there-
fore, for $1.00 lawful money to me in hand paid,
I hereby agree that tbe said propertip« shall be
and remain as originally laid out by said Brown,
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101 ATLANTIC REPORTER
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and that the survey by one G. E. Green signed
by A. J. Mead and M. Newton on July 29, 1873,
and now in possession of one J. E. Manley, is
accordingly correct and satisfactory to us. To-
gether with the agreements cited thereon espe-
cially as to our acknowledging the sale of the
right to attach three guys at or about the points
on our ten-rod lot as now in use.
"[Signed] H. G. Clark.
"Witness:
"Charles Woodhouse."
In making the foregoing sarvey and plan.
Green was employed by both Mead and Bar-
din, and each paid one-half of his charges
therefor.
The line from comer "A" through "^Int
No. 1" and the pin in the marble block ex-
tended westward passes over a large flat
rock with a peculiar Jagged point extending
upward In the line. At the westerly extrem-
ity of this line In the bottom of the old rail
fence now remaining there was found evi-
dence of a stake with stones around it. The
position of this line Is shown on plaintiff's
plan exhibit IIS as the line marked "C," and
is further shown on defendants' plan, Exhib-
it 38.
The distance from the Mead-Blanchard di-
visional line to the maple tree, measuring at
right angles to said line. Is 36 rods 6% feet,
and, measuring along the wall, is substantial-
ly 39 rods. The marble monument standing
east of the wall 27 feet 7 inches northeasterly
of the butternut tree, the wooden post stand-
ing west of the wall 27 feet 3 inches north-
east of the butternut tree, the marble post on
the flat standing at point No. 1 on the Brown,
Mead, Green, and Murphy plans, the large
square marble block with the Iron pin leaded
Into it,, the row of flve large iron pins, the
fence running westerly from the blazed ap-
ple ti'ee, and the stoke and stones in the west
line, were for the purpose of marking the
northerly boundary of the American Marble
Company property.
Ab some time after Eastman began opera-
tions the old derrick was replaced by a new
one, the latter being guyed at substantially
the same locations as the former, excepting
that there were not so many guys on the new
mast as there had been on the old. The guy
which had formerly been fastened to the
marble block with the line pin was moved
slightly to the rear of the block, and the guy
theretofore fastened to the walnut tree was
moved a little to the west and fastened to an
anchor set in the ground as the tree was
considered unsafe fx>r that purposei The
defendants are maintaining upon the prem-
ises which the plaintiff claims to own three
guy attachments. These are north of the so-
called "pin line."
Lyman A. Bardln died In June. 1887, and
the property, including the dumping ground
lot on the east passed under his will to bis
widow, Phoebe J. Hardin.
In 1884-85 Lyman A. Hardin wrote letters
to his son, who was then operating the quar-
ry at West Rutland. These letters were in-
eroduced in evidence, and (in part) are quoted
In the findings of firt. Therein Bardln
said, among other things:
"We call for a right of way to pass and repass
and also twenty rods in front of our milL
• • * We want our number ot rods in front
as specified upon the records, and also our right
of way. I will send yoti a copy of the mortgage
decree which is the same word for word aa
Mead's deed to the American Marble Company
reads, and I want you to keep the copy, as it
contains the survey of our property."
"We want our lines established as our deeds
and titles specify. • ♦ • We want our twen-
ty rods as our title specified. • • •
"In surveying the premises I should make right
angles to all the corners on the west side of our
lot made parallel with Mead's north line after I
had taken our twenty rods from the twenty-rod
point south of Mead's north line. I should then
run down and see where it would locate the cor-
ner by the maple tree; and I would commence
and run the line from the twenty-rod point on
the east side and see if they two would agree.
What we want is our tvrenty rods and the right
of way."
"Now as to the survey of our quarry I think
the way you propose is the correct way, i. e., run
out the hne from ttarting point [underscored by
Hardin] and plant your comers as the title
reads, and if Mr. Mead is not satisfied, let him
move them by law. ♦ • * "
Neither of the defendants ever occupied
or possessed land north of a line parallel
with, and 20 rods south of, Mead's north
line, before the deed from Howe to Eastman,
May 29, 1903. It is further found that none
of the following persons: John W. Howe in-
diridnally or as trustee, the Rutland White
& Blue Marble Company, the Rutland White
Marble Company, A. L. Burbank as trustee
or Individually, J. W. Howe, H. T. Buck, M.
H. Murphy, O. H. Bardln, the Rutland Coun-
ty Marble Company, Charles H. Barbour,
Phoebe J. Barbour (the record Indicates that
this last name should be "Bardln"), Lyman
A. Bardln, Isaac N. Hillman, Sarah A. Hill-
man, or Ransom B. Hillman— ever occupied
land north of the present "pin line," unless
it may hare been in the way of dumping
some refuse from the quarry now owned by
the defendants, or by placing marble blocks
on the land.
The plaintiff became the owner of an undi-
vided nine-tenths interest in the land immedi-
ately north of the line in question by deed
from Walter W. Fant dated May 27, 1890;
of an undivided two-thirds interest In an un-
divided one-tenth part of this land by deed
from John Mead, Charity Burr and her hus-
band, dated July 6, 1905; and of the other
one-third interest in an undivided one-tentb
part by deed from defendant Eastman (un-
der order of the court of chancery) dated No-
vember 15, 1911. This land baa sometimes
been spoken of or referred to as the "Fant
lot," or "Fant property." It has also some-
times been called the "C/lark lot," and on
Brown's plan it is marked "Second Lot B."
Argued before MUNSON, C. J., and WAT-
SON, HASBLTINB, POWERS, and TAI-
LOR, JJ.
John G. Sargent, of Ludlow, and Walter S.
Fenton, of Rutland, for appellants. V. O.
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VERMONT MARBLE CO. v. EASTMAN
157
Partridge, of Proctor, and Lawrence, Law-
rence & Stafford and T. W. Moloney, all of
Rutland, for appellee.
WATSON, J. The primary question In this
case is as to the true location of the di-
visional line between land owned by the
plaintiff and land owned by defendant Bast-
man, the legal and record title to which
latter is held by defendant Clement In trust,
the same being in the nature of an equitable
mortgage, and not otherwise.
[1] Both sides discuss, more or less, ques-
tions regarding the admission or rejection of
evidence; but no such objection was made
by either side by exception to the report filed
in the court of chancery, and consequently
no question of that character can be heard.
The statute is peremptory that no such ques-
tion shall be heard in this court unless the
objection is made by exception to the report
duly filed in that court P. S. 1268. And this
statute is construed to be alike applicable
when the cause is heard before a chancellor.
Barber v. Bailey. 86 Vt 219, 84 Atl. 608, 44
L. R. A. (N. S.) 08; Rowley v. Shepardson,
90 Vt 25, 96 AU. 374; Osha v. Hlggins, 90
Vt 130, 96 Atl. 700.
[2] Defendants filed 18 exceptions to find-
ings of fact; but the plaintiff urges that
these exceptions should not be considered,
because, as shown by aflSdavlts, neither the
company nor any of its solicitors received a
copy of the exceptions, nor had any knowl-
edge or notice that they had been filed, prior
to the time when a copy of defendant's brief
was received in exchange for a copy of
plaintiff's brief, late Sunday afternoon, a
week and two days before the case was ar-
gued in this court The affidavits do not
show that at the time of filing the exceptions
a copy thereof was not left with the clerk
of the court for the adverse party, as re-
qolred by chancery rule 47. By rule 46 it
was the duty of the clerk, when these ex-
ceptions were filed, forthwith to notify the
plaintiff or its solicitors of such filing. Ac-
cording to the affidavits, this was not done.
Such negligence on the part of the clerk be-
ing shown, we cannot say that it was not
due to his neglect also that plaintiff or its
solicitors did not receive a copy of the ex-
ceptions. In these circumstances it would
be doing the defendants an Injustice to de-
prive them of the benefit of their exceptions
on the ground stated, when, so far as ap-
pears, the fault was not theirs.
[3] The transcript of testimony was not
made a part of the chancellor's report It
was referred to by the defendants in their
exceptions and made a part thereof ; but this
does not bring it before us. Royce v. CJftr-
penter. 80 Vt 37, 66 Atl. 888; Child v. Pinney,
81 Vt 314, 70 AU. 566; Barber v. Bailey, cit-
ed above.
[4, S] ESxceptions 10, 11, and 13, not being
briefed, are waived. Exceptions 1, 4, 6, 7, 8,
9, 12, 14, 16, 16, and 17 involve the examina-
tion and consideration of evidaioe not before
the court; hence we cannot say that the evi-
dence did not support the findings. Fraser
V. Nemey, 89 Vt 257, 96 Atl. 601.
[(] Exception 2 Is to the finding that the
deed from Walter W, Fant to the plaintiff
is a warranty deed, for that its legal charac-
ter Is a question of law, not of fact ; and ex-
ception 3 is to the finding that the deed from
Phoebe J. Bardln to Charles H. Barbour Is a
quitclaim deed, on the same ground. Wc
give these two exceptions no consideration;
for, if it be conceded that in each instance
the court was wrong, the defendants were
not harmed thereby In the view we take of
the case.
Exception 6 is to the language In article
70 of the findings, "unless there was some-
thing In the record title to put the orator
upon notice at the time it bought of Fant,
of a claim by the adjoining owner on the
south to a line north of the present 'pin
line,' there was nothing sufficient to give It
such notice," for that the matter there Stated
is a question of law, and not of fact, and the
determination of what is sufficient to give
such notice is a question of law for the court
upon all the facts in the case. However this
may be, the disposition we make of the case
renders the question here raised Immaterial.
The question presented by exception 18 Is
determined below.
Findings to which no except{(m was taken
show that the lands between which is the di-
visional line In question were formerly own-
ed by Andrew J. Mead, under whom, as com-
mon grantor, through divers conveyances,
both the plaintiff and the defendants claim
their titles, going back to the same day, Sep-
tember 29, 1866; that there Is no dispute as
to the location of Head's north line, it being
correctly shown in plaintlfTs plan. Exhibit
118, dated September, 1914. The record
shows that the stone wall mentioned in the
deeds from the common source and made the
easterly boundary of the lands thereby con-
veyed (as far as the wall extends), now own-
ed by the plaintiff and by the defendants, re-
spectively, and between which the location of
the line is now in dispute, is still there. This
wall may well be treated as a permanent ob-
ject in its original location on the ground.
The deeds and the decrees in the chain of ti-
tle of each of the parties were made exhibits
in the case, and are before us as a part of
the chancellor's report.
On September 29, 1866, Andrew J. Mead
gave a bond for a deed of a certain part of
his farm, particularly describing It, in favor
of Horace G. Clark, Alanda W. Clark, Nor-
man Clark, Gardner L. Gates, and Hiram L.
Briggs, giving them and their assigns the
right to enter upon the premises for the pur-
pose of opening, developing, and working any
and all marble quarries thereon, within the
time therein limited. At the same time Mead
gave a bond for a deed of another certain
part of his farm, particularly desLMbing It,
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101 ATI-AJfTIO RBPORTEE
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In (aror of Wlllard N. Oliver, Horace G.
Clark, Alanda W. Qark, and Norman Clark,
giving tbem similar rights as to entering
upon the premises for the purpose of opening,
developing, and working marble quarries
thereon within the time tliereln limited.
Within a few days after the giving of these
bonds they were recorded in the town clerk's
office of the town In which the land is situ-
ated. On January 1, 1S69, Mead and his wife
gave a warranty deed In favor of the obligees
in the bond first mentioned, the description
therein of the land conveyed being Identically
the same as the description in that bond,
complete In itself, and as follows (we num-
ber the calls for convenience):
"(1) OommeDciDg at a point on the first stone
wall west of the highway leading past the prem-
ises of the said Mead, 10 rods south of said
Mead's north line, the north end of said stone
wall being 65% rods westerly from said high-
way, and said point being on said stone wall 10
rods south of- said Mead's north line; (2) thence
southerly on said wall 10 rods; (3) thence west-
erly parallel with said Mead's north line fifty-
six rods to a stake and stones; (4) thence
northerly at right angles with said last-mention-
ed lineto a point 10 rods south of said Mead's
north line; and (5) thence easterly to the place
of beginning."
Through this deed the plaintiff traces Its
chain of title from the common grantor; and
in the successive subsequent conveyances the
description of the land Is the same as the
foregoing, either given in full or by reference
to this deed. On the same day Mead and
his wife gave a warranty deed In favor of
the American Marble Company, the descrip-
tion therein of the land conveyed being iden-
tically the same as the description in the
bond secondly above mentioned, complete In
Itself, and as follows (we number the calls for
convenience):
"(1) Commencing at a point on the first stone
wall west of the hiirhway leading past the resi-
dence of the said Mead 20 rods south of said
Mead's north_ line, the north end of said stone
wall being 53 Vi rods westerly from siiid higli-
way, and said point being on said stone wall 20
rods from said Mead's north line ; (2) thence
southerly on said stone wall to the end of the
same, and thence southerly on the fence that joins
onto the same, in all 20 rods to a maple tree;
(3) thence westerly 58 rods to a stake and
stones; (4) thence northerly at right angles with
said last-mentioned line to a point 20 rods south
of said Mead's north line; and (5) thence east-
erly in a line parallel with said Mead's north
line to the place of beginning,"
Through this deed the defendants trace
their chain of title from the common gran-
tor ; and in the successive subsequent convey-
ances the description of the land conveyed
Is the same as the foregoing, either given In
full, or by reference to this deed, or to some
other deed In the chain of title.
[7] The question arises as to the true In-
terpretation of the boundaries contained In
these two deeds from Mead. Mead's north
line runs practically east and west. The
stone wall mentioned extends from this north
line somewhat southwesterly for a distance
of approximately 22% rods. No uncertainty
in the description, so far as the reading of
the deeds goes, is claimed. And the only
part of the boundary c<mtained in the deed in
the plaintiff's chain of title concerning which
any real question can arise as to its mean-
ing when applied to the land Is the iralnt of
commencement; whether this is to be found
by measuring at right angles (practically
south) from said north line at a place where
such a measurement of 10 rods Just meets
the stone fall, or by measuring that distance
from said north line along the stone wall.
The plaintiff's plan, Exhibit 118. drawn to a
scale, shows that the right-angled triangle,
having for Its perpendicular a line 10 rods
long drawn from said north line south to the
point of its meeting the stone wall, and for
its hypotenuse a line dravim from this point
of meeting, along the wall to said north line,
has its base on this north line, approximately
35 feet long. There Is nothing In the deed
indicating that the hypotenuse line, running
to such an extent southwesterly, rather than
the perpendicular line running practically
south, is the course of measurement from the
north line mentioned, In locating the point of
beginning.
[S] It is a mle of constuctlon that, where
a boundary line Is described as running to-
ward one of the cardinal points of the com-
pass. It should be considered as running di-
rectly In that course, unless some other word
or words are used for the purpose of qualify-
ing its meaning, or Its direction is controlled
by some object Sowles v. MInot, 82 Vt. 344,
73 Atl. 1025, 137 Am. St Rep. 1010; Jackson
V. Lindsey, 3 Jotma. Cas. (N. Y.) 86 ; Brandt
V. Ogden, 1 Johns. (N. Y.) 156; Hagan v.
Campbell. 8 Port (Ala.) 9, 33 Am. Dec. 287:
SYatt V. Woodward, 32 Cal. 219, 91 Am. Dec.
573. In Currier v. Nelson, 08 Cal. 506, 31
Pac. 531, HI Am. St Rep. 239, this rule was
applied, as In the Instant case, in interpret-
ing the language of the boundary as to the
point of commencement. There the first de^
scriptlve call In the deed was "commencing
at a point <m the northwesterly line of" the
street named, so many "feet north of the
northeasterly line of another street named,
and the court was called upon to determine
the meaning of the word "north" as there
used. The word was held to mean due north,
unless qualified or controlled by other words,
and this was its meaning in the deed under
consideration.
[9] In the case at bar. If the Intention had
been to fix the point of beginning at the dis-
tance given southerly of Mead's north line,
measured along the wall, it was easy to In-
dicate In language plainly to that effect, the
same as was done in the second call, "thence
southerly on said wall 10 rods." There
the words "on said wall" show that the
course of the line Is controlled by the course
of the wall. In Park v, Pratt, 38 Vt 645,
the line was described as beginning "on the
south line of land owned by Lafayette Ly-
on," and running "east 15 degrees south on
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said Lyon's line," etc. The referee found
that the true dMslonal line ran 13% de-
grees south, instead of 15, on Lyon's line,
so that the difference between the course
of Lyon's line and the line as described by
the compass in the deed was 1% degrees.
It was held that "on said Lyon's line" was
the controlling description, and that this
made Lyon's land an abuttal, a boundary,
and in effect the same as If the deed had
bounded the land granted north by Lyon's
land.
[10] The distance of this course being defi-
nitely stated in the deed, without any monu-
ment as Its termination, the course and dis-
tance must govern. Bagley v. Morrill, 46
Vt. M; Grand Trunk Ry. Co. v. Dyer, 49
Vt 74. And the call requires the line to be
10 rods long from the point of commence-
ment named in the deed. Owen t. Foster,
13 Vt 263; Day v. Wilder, 47 Vt. 583.
The importance of right conclusions re-
garding the first and second calls Is readily
seen when we observe their controlling effect
upon the third call, the line In dispute so far
as it rests on the plaintiff's title deeds. The
third call requires the line to nm westerly
from the southerly terminus of the 10-rod
line of the second call, parallel with Mead's
north line 56 rods to a stake and stones.
By the course there given the land conveyed
has a uniform width north and south, cor-
re^wndlng with its width at the easterly
end, and answering the fourth call, "thence
northerly at right angles with said last-men-
tioned line to a point 10 rods south of said
Mead's north line," and the fifth call, "thence
easterly to the place of beginning," the land
between the last-named line and Mead's
north line is of the same width throughout
as at the east end, where the measurement
of 10 rods south from this north line is to
be made in locating the point of commence-
ment
[11] The language of this deed, interpreted
in connection with, and in reference to, the
nature and condition of the subject-matter of
the grant at the time the instrument was
executed, and the obvious purpose the par-
ties had in view, is clear and unambiguous,
its meaning is a question of law for the
court, and the intent cannot be altered by
evidence, or findings, of extraneous circum-
stances. Crosby v. Montgomery, 38 Vt 238.
The language being clear and unambiguous,
the deed is to be Interpreted by its ovni lan-
guage, and the court is not at liberty to look
at extraneous circumstances for reasons to as-
certain Its Intent, and the understanding of
the parties must be deemed to be that which
their own written instrument declares.
Smith V. Fitzgerald, 59 Vt. 451, 9 Atl. 604 ;
Clement v. Bank of Rutland, 61 Vt 298, 17
AH. 717, 4 Ta R. a. 425; Marsh v. Fish, 66
Vt 213, 28 Atl. 987 ; New York Life Ins. &
Trust Co. V. Hoyt, 161 N. Y. 1, 55 N. E. 299.
It is to l>e borne in mind that on the day
of giving the deed Just examined Mead also
gave the deed (to the American Marble Com-
pany) under which the defendants derive
title from the common source. The bounda-
ries in the two deeds are so essentially alike
In form as to the first call and as to the
course required by the second call that the
legal Interpretation of the first one men-
tioned in these reBi)ects is for the same rea-
sons the legal interpretation of the other al-
sa The point of commencement on the stone
wall is to be found by measuring at right
angles south from Mead's north line, at the
place where such measurement of 20 rods
Just meets the stone wall; and by the sec-
ond call, "thence southerly on said stone
wall to the end of the same, and thence
southerly on the fence that Joins onto the
same In all 20 rods to a maple tree," the
course of the line follows the course of the
wall and the course of the fence, terminat-
ing at the maple tree. The length of this
course Is discussed further on. The norther-
ly terminus of the line answering the fourth
call, "a point 20 rods south of said Mead's
north line," is definitely fixed as at a specific
distance south of an object concerning the
location of which there was, and is, no mis-
understanding. The fifth call requires not
only a line easterly to the place of beginning,
but one that is parallel with said north line.
This indicates a purpose to make It doubly
sure that the north line of the property con-
veyed shall be throughout the same specified
distance, measured at each end, south of
Mead's north line; for, unless it be made
conformable thereto in its location on thu
ground, its parallelism must be wanting.
Graves v. Mattlson, 67 Vt 630, 32 Atl. 498.
The description contained in this deed, like
that contained in the other deed from Mead
of the same date, is definite, certain, unam-
biguous; and hence we interpret it, as a
matter of law, without noticing any extrin-
sic evidence (by way of exhibits before us)
introduced on the basis of defendants' claim
of latent ambiguity, or any extrinsic facts
reported. Thus it is seen that the north Une
of the premises conveyed in the deed from
Mead in the defendants' chain of title in
no wise conflicts with the south line of the
premises conveyed from the same source In
the plaintiff's chain of title. The fact that
by such interpretation of these two deeds
there may be a very narrow strip of land be-
tween the properties conveyed, consequent
on the fact that the width of plalntlfTs land
is governed by its east line of 10 rods meas-
ured from the point of beginning, southerly
on the wall. Instead of at right angles with
Mead's north line, cannot affect the legal
meaning of either Instrument.
[1 2, 1 9] Deeds, surveys, and plans not re-
ferred to in a deed in question can neither
restrict nor extend the import of the terms
used. Butler v. Gale, 27 Vt 739. So far as
this case is concerned, however, such narrow
strip is to be considered as a part of de-
fendants' grant; for not only Is such the
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effect of the allegations In the bill, admitted
In the several answers of defendants, but it
Is manifest that this Is according to the
practical construction which has always
been given to the deeds through which de-
fendants trace their title In their application
to the land Itself.
[14] The location of the divisional line on
the land was a question of fact to be deter-
mined on the evidence. Grand Trunk Ry.
Ck). V. Dyer, cited above. As a put of his
findings the chancellor states that on the
west side of the stone wall which runs along
the east side of the land of the plaintiff
and of the land of the defendants there is
now a marble post about 4 Inches square,
substantially 10 rods south of the north line
of the Mead farm, and shows above ground ;
that there Is another such post on the same
side of the same wall, substantially 10 rods
measured southerly along the wall from the
first post, and standing several inches above
ground ; that there is another such post
about 56 rods west of the last, measuring In
a line substantially parallel with Mead's
north line, also standing several Inches above
ground; that there is another such post
north of the one last mentioned, substantial-
ly 10 rods south of Mead's north line; that
these posts were put there before 1800 ; that
there Is now In the ledge three iron pins in
a line between the southerly marble posts
mentioned, which Iron pins are three-fourths
of an Inch In diameter, and are driven firmly
into the ledge, standing 4 or 5 inches above
It The line of these two southerly marble
posts and the three Iron pins Is marked on
plaintiff's plan. Exhibit US, as the "pin
line." In 1800 these marble posts and Iron
pins appeared the same as they do now, and
did not have the appearance of having been
recently put there.
[IS] "On the findings," as reported by him
and in connection therewith, the chancellor
states, "the decision is that the line be-
tween the two properties Involved In this
case Is the so-called 'pin line.' " This state-
ment seems to be considered In defendants'
brief as a conclusion of law; but such con-
sideration Is hardly warranted. It devolved
upon the chancellor, as before Indicated, to
determine as a fact the location of the true
divisional line on the ground itself. With-
out doubt this Is what he undertook to do,
as he well might, by drawing an Inference
to that effect from the other facts reported,
and In this sense used the word "decision."
"A decision of the court is its finding upon
a question of law or fact arising In a case."
See quotation given in Webster's Interna-
tional Dictionary; Froman v. Patterson, 10
Mont. 107, 24 Pac. 692; Wilson v. Vance, 55
Ind. 394; Gates v. Baltimore, etc., R. Co.,
154 Ind. 338, 56 N. E. 722; Corbett v. Twen-
ty-Third St R. Co., 114 N. Y. 578, 21 N. E.
1033. The conclusion of law is stated by
the chancellor In appropriate language In
the decree:
"It is hereby ordered, adjodged and decreed
that the line dividing land of the orator from
land of defendants * * * is the line marked
by three iron pins • • • in the marble ledge
and marblo monoments at the east and west
ends. • • •"
This In effect disposes of defendants'
eighteenth exception to findings.
It Is said by the defendants that the origi-
nal bonds and the deeds following them by
which the land of the defendants and the
land of the plaintiff were carved out of the
lands of Mead by their terms placed the
boundary line between them, that Is, the
north line of defendants' land 20 rods north
from the maple tree (a known monument at
which defendants' land comers) and 20 roda
south of the north line of Mead's farm (a
known monument not on or adjacent to any
of the land In either bond or the deed fol-
lowing it) ; that so far as the reading of the
bonds and deeds goes, this description is
clear, and not ambiguous, but upon applying
them to the land It at once appears that the
distance between the maple tree and the
north line pt Mead's farm Is only 36 roda
6% feet Consequently (it is further said)
the north line of the land bonded to Oliver
and others, and conveyed to the American
Marble Company in the formation of which
they were associated, could not be both 20
rods north from the maple tree and 20 roda
south from Mead's north line; and so here
is a latent ambiguity to cure whldi resort
may be had to extrinsic evidence.
[1 1, 1 7] The description contained In the
bond is not different from that contained In
the deed. It appears (from the plaintiff's plan.
Exhibit 118) that the length of the course
required by the second call in the deed, the
southerly terminus of which is given as the
maple tree. Is about l»/io rods shorter than
the distance stated in the deed. Yet this
discrepancy, appearing in the application of
the description to the land, does not con-
stitute a latent ambiguity. The maple tree
is a natural object then and now on the
ground, directly In the course and made to
mark the southeasterly comer of the land
conveyed; and there Is nothing by reason of
which the description In this respect Is taken
out of the general rule that as between
courses and distances, on the one hand, and
abuttals and monuments, on the other, abut-
tals and monuments, when identified, must
control, the reason of the rule being that
mistakes in courses and distances are mora
probable and more frequent than in abuttals
and monuments capable of being clearly
designated and accurately described. Bundy
V. Morgan, 45 Vt 46; FuUam v. Foster, 68
Vt 590, 35 Atl. 484 ; Sowles v. Butler, 71 Vt.
271, 44 Atl. 355. Moreover, it is erroneously
said that the second call in the deed in terms
places the north line of defendants' land 20
rods north from the maple tree. As already
observed, this call requires the course to be
southerly along the wall and along the fence
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VERMONT MABBI-E CO. y. EASTMAN
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extending fron» the end of the wall, the dis-
tance given being of the course going In the
direction stated, whldi by rule of construc-
tion Is limited by the location of the natural
object (maple tree) designated as the termi-
nus.
[11,11] The place of beginning being well
known and well ascertained, It must govern,
and the grant must be confined within the
bonndarles given in the deed. Oilman v.
Smith, 12 Vt 150. And there being no un-
certainty in the description, to locate the
lines the regular order of the calls should
be observed and followed ; and a posterior
line cannot be controlled by a reverse surrey.
Taeker v. Satterthwalte, 123 N. C. 511, 31
S. E. 722.
It Is contended by the defendants, how-
ever, that the dividing line as now claimed by
them was established by recognition and
acquiesced In by the owners of the land on
both sides for more than 15 years, and that
the owners and occupants of defendants' lot
occupied and used the land In question, treat-
ing It as their own, In which occupancy, use,
and treatment of the lot to this line the
plalntur and its predecessors in title ac-
quiesced, sometimes expressly, sometimes by
inaction and license, for the entire period
from 1866 to IMl, 45 years. This raises
the question of title in the defendants by ad-
verse possession of the strip of land between
the tme divisional line as found and ad-
judged by the chancellor and the line now
claimed by them.
This action does not involve the reforma-
tion of any Instrument of conveyance given
by Mead; and It can serve no good purpose
to conjecture why, in making the description
of the land in the bonds and in the deeds
fSven pursuant to the bonds, the survey and
the plan made by Brown were not followed.
The departure therefrom in each Instance Is
so material and so marked as to indicate a
change of purpose. The descriptions adopted
show unusual care and precision in their
framing. Whatever may have been pre-
riously done or said by the parties to the
transactions, relative to that survey and plan,
sneh acts and declarations were merged in
the written Instruments subsequently execut-
ed on the one hand and accepted on the
other; and neither the survey nor the plan
can have any force in this case, beyond what
bearing it may have, if any, by reason of Its
subsequent use by the parties in connection
with the asserted recognition of, or acquies-
cence in, the line now claimed by defendants.
[21] Extrinsic evidence is not admissible
to show that, by mistake, one tract of land
Instead of another was inserted In either
of those deeds, thereby really establishing a
different contract McDufBe v. Magoon, 26
Vt 518; Pitts V. Brown, 49 Vt 86, 24 Am.
Bep. 114.
After the giving of the bonds, there was no
«irvey made of the premises until July,
101 A,-ll
1873, when the Green suryey was made as
shown in the statement of the case. It is
manifest that In making this survey no
attempt was made to follow the boundaries
contained in either of the deeds from Mead,
nor even to locate the point of beginning
according to the requirements tn either. The
whole purpose was to establish the corners
and follow the boundaries as shown by the
Brown sun-ey and the plan made pursuant
thereto. That this is so, and that the de-
scription in the respective deeds did not
correspond therewith, appear from the plan
made by Green (Defendants' Exhibit 39),
whereon It is stated :
"July 29, 1873. Boundaries, comers, measure-
ments, and notes made herein are agreed to and
witnessed as correct"
— being signed by Mead, Marcellus Newton,
and Charles Woodhouse, and from the state-
ment made and signed by H. O. Clark In con-
nection therewith, wherein he states that:
"Whereas, in both deeds [from Meadl it has
since been found out that the -way in which the
said parcels [of land] were described in the reo-
ords is not equivalent to the parcels as original-
ly laid out and marked by one Jas. Brown and
agreed to by the said Mead and ourselves: Now,
therefore, * * * I hereby agree that the
said properties shall be and remain as originally
laid out by said Brown, and that the survey
by one G. B. Green signed by A. J. Mead and
M. Newton on July 29, 1873, • • * is ac-
cordingly correct and satisfactory to us."
The notes (on Green's plan) agreed to as
stated above are particularly significant to
the same effect. Furthermore, when making
his survey, Green called to the attention of
Woodhouse, Clark, and Mead the fact that
the calls in deed did not correspond with
the monuments and objects on the land.
Thus It is seen, and by Intendment It
will be taken that the chancellor found, that
the line which defendants contend was then
recognized and thenceforth acquiesced in by
the successive owners and occupants on each
side thereof for a period of more than 15
years was not then understood to be, and is
not the south line of the land now ovraed
by the plaintiff, as described In its title deeds,
nor the north line of the land now owned by
the defendants, as described in their title
deeds. But it was then understood to be,
and is, another line which is 3 rods and
7% feet further north and only 16 rods and
9 feet south of Mead's north line, which In-
creases the size of defendants' quarry lot
approximately 1% acres from what it is
according to their paper title. We need not
discuss the rule where the true divisional
line between lands of adjoining owners, ac-
cording to the calls in their respective deeds
is uncertain and in doubt and Its location Is
agreed upon and established by parol as the
line to which the title of each extends, fol-
lowed by the acquiescence of such owners,
for that Is not this case. Here, It having
been ascertained that the two parcels of land
described In the two deeds mentioned were
"not equivalent to the parcels as originally
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laid ont and marked" In Brown's surrey, an
attempt was made some years afterwards,
by some of those (at least) who participated
therein, to extend the title of defendants'
grantors northerly by establishing the di-
visional line as marked by Brown and by
Green on their respective plans.
[21] The statements before mentioned
made and signed in connection therewith were
not sufficient as a memorandum to answer
the requirements of the statute of frauds.
They do not contain the substantial terms of
any contract for the sale of land, or of an in-
terest in land, expressed with such certainty
that they may be understood from the con-
tract itself, or some other writing to which
it refers, without resorting to parol evidence.
Buck V. Pickwell, 27 Vt 157 ; Adams v. Janes,
88 Vt 834, 75 Atl. 799.
[22] The so-called recognition of and ac-
quiescence in this line Is without force, un-
less followed by such possession of the land
north of the true divisional line and up to
the line thus recognized for the period of 15
/ears as shall give a perfected title by ad-
rerse iwssesslon. Lewis t. Ogram, 149 Cal.
505, 87 Pac. 60, 10 L. E. A. (N. S.) 610, 117
Am. St Rep. 151; Vosburgh v. Teator, 32
N. T. 661.
[2S] It is urged that the facts found show
that the American Marble Company occu-
pied the land up to this line, though previous
to the date last named, and that this occu-
pancy, as well as the similar occupancy by
the successive subsequent owners of the
land within the defendants' grant Is to be
considered in determining defendants' owner-
ship by adverse possession of the land men-
tioned without their grant Yet this position
cannot be sustained. Neither the American
Marble Company nor any of its successors
had any color of title to the strip of land
in question; and It is observable from the
statement of the case that of such successors
none prior to the defendants ever occupied
that strip, unless It may have been in the
way of dumping refuse from the quarry now
owned by defendants, or by placing marble
blocks on the land. Whatever occupancy
that company or its successors in the way
mentioned had of the land, there is no
finding that the occupancy by any of them
was under a claim of right Their several
possessions therefore do not appear to have
been adverse. Demerltt v. Parker, 82 Vt 69,
71 Atl. 833. Indeed, in 1884-85 Bardin, then
the record owner of the land south of the
dividing line, wrote his son (who was oi)erat-
iiig the quarry), "We want our lines estab-
lished as our deeds and titles specify," and
that he thought the correct way to have the
quarry lot surveyed was to "run out the line
from starting point and plant your cor-
ners as the title reads, and If Mr. Mead Is not
satisfied, let him move them by law." See
l>ay V. Wilder, 47 Vt 583, 593, 594.
[94] But if the record before us be con-
strued as showing sudi possession to have
been severally adverse, as defendants urge,
the result is the same. The land so adversely
held has never been covered by the descrip-
tion of the land contained In any of the deeds
within the defendants' chain of title. Nor
is It found that each prior successive grantee
in writing, or by parol agreement or under-
standing, transferred to his successor his pos-
session of said land without the calls of bis
title deeds, accompanied by an actual delivery
of the possession of the premises. No privity
of estate or of possession between the suc-
cessive disseisors is shown. Without some
privity between them, the several possessions
caimot be tacked so as to make continuity
of possession. Winslow v. Newell, 19 Vt.
164; Sheldon v. Michigan Cent. R. Co., 161
Mich. 506, 126 N. W. 1056; Illinois Steel
Co. V. Budzisz, 106 Wis. 499, 81 N. W. 1027, 82
N. W. 634, 48 L. R. A. 830, 80 Am. St Rep.
54; Rich V. Naffzlger, 255 111. 98, 99 N. E.
341. Since there was no privity, upon the
termination of the possession of each disi
selsor, the seisin of the true owner revived
and was revested, and a new distinct dis-
seisin was made by each successive disseisor.
Sawyer v. Kendall, 10 Cush. (Mass.) 241;
Wlshart v. McKnight 178 Mass. 356, 69 N.
a 1028, 86 Am. St R^. 486.
Regarding the placing and maintaining of
guys and ropes or cables on the land north
of the true divisional line bs the defendants'
predecessors in title, It Is enough to say that
sudi acts are not found to have been under
a claim of right; and consequently, for rea-
sons already stated, they cannot be con-
sidered on the question of a prescriptive
right In the nature of an easement in favor
of defendants' land, as the dominant tene-
ment, to such use of the land first named,
as the servient tenement
[25] The defendants' ownership of their
quarry lot began May 29, 1903. Hence In
point of time they cannot of themselves have
acquired any adverse rights In or to the land
north of the dividing line between their land
and the land of the plaintiff, as found and
adjudged by the chancellor.
Decree affirmed, and cause remanded.
On Motion for Reargument
WATSON, J. The foregoing opinion be-
ing promulgated, the defendants moved for
leave to reargue the case, and were permit-
ted to file a brief upon that motion, the
plaintiff to have leave to submit a brief In
reply.
[26] It Is said In defendants' brief so 8til>-
mltted that the opinion shows that the court
understood that the two deeds from the
common grantor (dated January 1, 1869) do
not refer to each other, and that their con-
struction must be separate and distinct be-
cause of that fact, citing Butler v. Gale, 27
Vt 739, and that this would seem to be a
misunderstanding of the court where It r&
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dtes the description In each of the deeds.
In each Instance It states that the descrip-
tion is "complete In Itself." Whereas "in
the case at bar each of the deeds refers to
the other," says the brief, "and makes one
property an abutter of the other." We are
here referred to the findings, articles 1 and
2, also to orator's Exhibits C and O. Articles
1 and 2 relate exclusively to the giving of the
two bonds for deeds of the properties Dow
owned by the plaintiff and by the defendants,
respectlTely. These findings say nothing as
to the relative situations of the properties
described in the bonds; but the bonds are
made exhibits in the case, and the descrip-
tion of the land now owned by the plaintiff,
as contained in the bond marked Exhibit C,
and as contained in the deed subsequently
given by Mead In performance of the pro-
visions of that bond, is correctly copied Into
the opinion, except in the latter the calls are
niunbered for convenience. After the de-
scription this bond contained a clause as
follows:
"And the said Mead also hereby further agrees
to convey at the same time • * • the right
of way acmsB hig land from the highway to said
premises to the said Horace G., Alanda W., Nor-
man, Gardner L., and Hiram Ia, their heirs and
«asigns, la common with Willard N. Oliver, the
said Horace G., Alanda W., and Norman, they
baring this day talten a bond for a deed of the
piece of land south of and adjacent to said prem-
ises."
The other bond, Exhibit O, contains the
description of the land now owned by the de-
fendants, exactly as contained In the deed
subsequently given by Mead in performance
of the provisions of that bond, and as copied
Into the opinion (excluding the numbers of
the calls as in the other instance). This
bond then contained a clause as follows:
"And the said Mead also hereby further agrees
to convey at the same time * * • the right
of way across his land to said premises from
the highway to the said Willard N., Horace G.,
Alanda W., and Norman, their heirs and as-
signs, in common, with tho right of the said
Horace G., Alnnda W., Normnn, and one Gard-
ner Tx Gates to the use of said water, the said
Mead having this day executed to them the
said Horace 6., Alanda W., Norman,, and
Gaiflner I>. Gates, thereby agreeing to convey
to them upon certain terms therein mentioned
the piece of land north of and adjacent to said
premises."
Neither the redtal in the bond first men-
tioned, that the parties named "having this
day taken a ibond for a .deed of the piece of
land south of and adjacent to said premises"
nor the recital in the bond last mentioned
that "Said Mead having this day executed
a bond to them [the obligees named in the
other bond] thereby agreeing to convey to
them * • • the piece of land north of
and adjacent to said premises" was any part
of the description of the laud thus mentioned.
Moreover, the words "adjacent to" do not
necessari^ imply "adjoining" or "contigu-
ous." Mr. Webster says "objects are adja-
cent when they lie close to each other, but
not necesi<arily,in actual contact." To the
same effect is 'B&ooa v. Boston & Maine B. B.,
83 Vt 528, 77 Atl, 858. In each bond the re-
cital was general and only a statement show-
ing why the rigllt of way agreed to be grant-
ed for the benefit of the premises therein de-
scribed was to be In common with a like use
agreed In the other bond, to be granted for
the benefit of the premises therein described.
The statement thus made in either bond was
not intended to affect the description of the
premises previously made in that instrument,
and Is not to be used for such purpose.
Grand Trunk Ry, Co. v. Dyer, 49 Vt. 74.
[27] But there Is another well-estaibllahed
principle of law by which the recitals quoted
above from the bonds cannot be considered
in the interpretation of the deeds. The
bonds were executory contracts for deeds,
and were executed and consummated by the
deeds subsequently given on January 1, 1869.
Neither of the deeds so given contains any
such redtal, and neither makes any reference
to the bond In i)erfonnance of the provisions
of which it was given. In each instance the
deed was delivered and accepted as perform-
ance of the previous contract to convey, and
therefore the contract was conclusively merg-
ed in the deed, and even though the terms of
the deed may vary from those contained in
the contract, the deed, so far as its construc-
tion Is concerned, must be looked to alone to
determine the rights of the parties. In Car-
ter V. Beck, 40 Ala. 590, it was held that the
acceptance of a deed is considered as a full
compliance with the contract to convey, and
as annulling it In Howes v. Barker, 3 Johns.
(N. Y.) 506, 3 Am. Dec. S26. it is said:
"The contract between the parties, according
to the articles of agreement (under their hands
and seals), was executory, and, having been exe-
cuted and consummated by the deed subsequent-
ly given, the agreement became null and of no
further effect."
In Slocum v. Bracy, 55 Minn. 249, 66 N.
W. 826, 43 Am. St. Rep. 490, it Is said:
"No rule of law is better settled than that,
whore a deed has been executed and accepted
as performance of an executory contract to con-
vey real estate, the contract is functus officio,
and the rights of the parties rest thereafter sole-
ly on the deed."
And:
"This is so although tho deed thus accepted
varies from that stipulated for in the contract."
To the same effect are Kerr v. Oalvlt,
Walk. (MIS.S.) 115, 12 Am. Dec. 537; TImms
V. Shannon, 19 Md. 296, 81 Am. Dec. 632;
Portsmouth, etc., Refining Co. ▼. Oliver Re-
fining Co.. 109 Va. 613, 64 S. B. 56, 132 Am.
St. Rep. 924 ; 2 DeVlIn on Real Est. (3d Ed.)
$ 950a, Such a contract, not referred to,
cannot contradict or control the operation
of the deed. Clifton v. Jackson Iron Co.,
74 Mich. 183, 41 N. W. 891, 16 Am. St. Rep.
621. Nor is the general rule any different
where the previous contract was In the form
of a bond conditioned for the conveyance
of the property, as in the case at bar.
Shontz r. Brown, 27 Pa. 123; Maniqpeaker
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V. Plpher, 48 Pac. 868i; 2 Devlin on Real
Est, dted above. The foregoing general
principle is tbe same as has been declared
by this court regarding the merger of prior
parol agreements when a deed or other writ-
ten instrument has been subsequently execut-
ed, delivered, and accepted. Smith v. Fitz-
gerald, 69 Vt 451, 9 Atl. 604; In re Perkins'
Estate, 65 Vt 313, 26 AtL 637.
It is said by defendants in their brief for
reargument that the language of the opinion
"is such as to show that the matter lies in
the mind of the court as if the plaintifTs
title to its property were prior in origin, or
at least contemporaneous with the defend-
ants' title," and that "this must be a mis-
apprehension, for the defendants' title (equi-
table title at least) begins In an Instrument
on record six days I>efore the plaintiff's."
It Is true tliat the court did understand
when writing the opinion, and it understands
now, that the rights given by the common
grantor by Ills two bonds mentioned were
contemporaneous. The bonds bear the same
date, they purport to have been acknowledg-
ed by the grantor before the same justice of
the peace on the same day, and the chancel-
lor found that they were given "at the same
time." Exception was taken to this finding
for that it "Is not supported by the evidence
and is contrary to the evidence." It is said
in defendants' brief for reargument that the
determination of tliis question "does not re-
quire examination and consideration of evi-
dence not before the court but of the find-
ings of fact made and filed by the chancel-
lor."
[21-31] The chancellor has not reported on
what evidence be made that finding. Parol
evidence was admissible to show the true
time of the giving of each bond. 4 Wig. Ev.
I 2410; Bellows v. Weeks, 41 Vt 690; Wil-
mpt V. Lathrop, 6T Vt 671. 32 AtL 861. It
d6es not appear that such evidence was not
before the chancellor, and we cannot, for the
purpose of finding error, assume that the
evidence did not support the finding. Hyde
V, Swanton, 72 Vt 242, 47 Atl. 790. The
evidence, other than exhibits, not being be-
fore us, it does not appear that the finding
was not made upon sufficient evidence.
Sowles r. Hall, 73 Vt 55, 50 AU. 550. In the
circumstances shown, including the fact that
some of the obligees in the two bonds were
the same persons, and the further fact of the
redtal In each bond noticed above, there can
be no doubt that each set of obligees, when
receiving the bond to them, had knowledge of
the giving of the other bond. It should be
borne in mind that every reasonable intend-
ment is to be made in favor of the decree
under review. The fact that one of the
lx>nds was placed on record before the other
* Reported In full In the Pacific Reporter ; re-
ported as a memorandum decision vitbottt opinion
In t Kan. App. m.
gives it no priority as a contract for title.
Hill V. Murray, 56 Vt 177.
It is further said in defendants' brief for
reargument that the court in its opinion
states tliat the description in defendants'
deed, like that in the plaintifTs, is definite,
certain, unambiguous, and therefore it is in-
terpreted as a matter of law without notic-
ing exhibits or extrinsic facts reported. In
that connection defendants state it to be
their belief that further discussion must
make It clear to the court "that the existence
of a monument on the land, placed there
and understood by all the parties as marking
the 'point' of beginning of the description,
is not extrinsic matter, but must be con-
sidered, as a matter of law, in connection
with and in reference to the nature and con-
dition of the subject-matter of the grant at
the time the Instrument was executed and the
obvious purpose which the parties had in
view," and that, "so interpreting the deed,
with the fact found that monument was actu-
ally set by the parties to designate the 'point*
of beginning described in the deed, in apply-
ing the description to the land It must start
at that monument." Again, it will be seen
that this claim that "a monument was actu-
ally set by the parties to designate the 'point'
of beginning described in the deed" is not
borne out by the record, not if "by the par-
ties" is meant as the language indicates all
the parties to the proposed purchase or pur-
chases. The findings show that, "in the
fall of 1866 negotiations having been entered
Into between Andrew J. Mead and prospee-
tive purchasers of the quarry property," on
September 26, 1866, the Brown survey was
made "at the request of Mead and Alanda W.
Clark, one of the prospective purchasers";
that, "accompanied and directed by said Al-
anda W. Clark and Mr. Mead and his son,
Eugene, Mr. Brown" made this survey ; that
Mead paid Brown for his services, and Alan-
da W. Clark paid for a team for his use.
It is further found that on the next day
a rough sketch or plan of the premises was
prepared, and Mead made and retained a
copy of it for himself, showing in detail the
boundaries, comers, monuments, and distanc-
es, and containing complete directions for
drawing the conveyances as shown thereon;
that "no survey or measurement except on
the 20-rod parcel and the 90-rod piece had
been made at that time, except to measure
ofr the width of the '10-rod lot B.'" Bnt
the findings do not eliow that any of the other
prospective purchasers (who became obligees
in the bonds fbr deeds) had anything to do
with causing or authorizing the Brown sur-
vey and plan to be made, nor that any of
them thereafter ratified this survey or plan,
except the statement made In writing by
Horace O. Clark on July 28, 1873, at the time
the Green survey was made, which was 6
years and 10 months after the bonds were
given, and more than 4V^ years after the
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deeds of January 1, 1869, wore delivered and
accepted as performance of the contracts to
convey. Tlie defendants had the burden of
proof upon the foregoing question, and. Judg-
ed by the record, they failed to sustain It
As seal by the statement of the case:
Brown, in making his survey, "ran a line at
right angles to the north line of the Mead farm
northerly from the point where two fences
comer at the north side of a largo maple tree.
On this line he measured off 20 rods and then
set a stake. Throufrh this stake he ran a line
parallel to the Mead-Blanchard line easterly to
a. stone wall whore be set a stake, and westerly
to an old fence running northerly and southerly
and there set a stake. Prom the stake first set
he continued the right angle line northerly 10
rods, and there sot a stake, and from that stake
ran easterly parallel with the Mead-Blanchard
line to the said stone wall. From the maple
tree he ran westerly along the line of a board
fence 56 rods to the north bar post of a barway
then standing, and there set a stake, and then
turned a right angle to the north and ran a
line to meet the line parallel with the Mead-
Blancfaard line."
[32] But the Brown survey and plan, not
being participated In, authorized, or ratified
by all the parties to either contract to con-
vey, and not being referred to therrfn, nor
In either deed of January 1, 1869, cannot be
considered In the construction of either the
bonds or the deeds. Sanborn v. Clough. 40
N. H. 316 ; Wells v. Jackson Iron Mfg. Co.,
47 N. H. 235, 90 Am. De& 575. The case last
dted is macta in point. The chief matter in
controversy was the title to the summit of
Mt. Washington, which the plaintiffs claimed
as owners of Thompson & Meserve's purchase,
and the defoidant as owner of Sargent's pur-
chase. The plaintiff introduced as evidence
of paper title, a resolution of the Senate and
House authorizing the Governor to appoint a
land commissioner, whose duty It was to
sell certain lands of the state and' execute
deeds therefor, a copy of the proceedings of
the Governor and council nominating and
appointing one James Wllley land commis-
sioner, and a copy of quitclaim deed from
Wllley to Thompson & Meserve, conveying a
tract of land "beginning," etc. Thompson
testified to a survey made by him and Wll-
ley after negotiations between them for the
sale, and a few days before the date of the
Wllley deed, and that their object was to
Ar the bounds of the land to be conveyed.
Tbe court said that the prior negotiations
must be taken, so far as the construction of
the deed was concerned, to have been merged
In that instrument, the conclusive presump-
tion being that the whole engagement of the
parties and the extent and manner of it were
reduced to writing; that the deed contained
no reference to any mcmument established by
Thompson or WiUey, or to any survey by them,
and the effect of the evidence, at most, could
tie merely to show that Wllley and Thompson
intended a dlBefent tract of land from that
afterwards conv^ed by the deed, if the lines
of tbeir exploration were found to differ from
tlie calls of the deed, and its reception to con-
trol the deed would be In violation of a prin-
ciple quite elementary; that, "besides, Me-
serve, who was one of the grantees in tbe
deed, was not a party to this transaction by
Wllley and Thompson, and there is no evi-
dence that he ever authorized or ratified it.
Prescott V. Hawkins, 12 N. H. 27. This evi-
dence was therefore incompetent to affect
the construction of the deed."
It follows that, since all the parties in
interest did not cause or authorize the
Brown survey to be made, nor ratify it, the
comers marked in the course of that survey.
Including tbe points of beginning, were not
In a legal sense marked by the parties, and
cannot be regarded as practical locations oon-
trolllng the courses of the deeds or either of
them.
It Is further urged In the defendants' brief
for reargument, as in their former brief, that
the divisional line as claimed by them was
subsequently recognized and acquiesced in by
the parties ; in other words, that the parties
themselves, by their practical construction of
the deeds, treated the location of the line as
being where defendants now claim it to t>e.
In connection with this claim particular ref-
erence Is made to what they please to term
by a misnomer, "the solemn declaration of
Mead on the Green plan" that the northeast
corner stake set by Brown correctly shows
the place of the northeast comer of defend-
ants' land. Notice was taken in the opinion
of the so-called recognition and acquiescence
of the divisional line as claimed by defend-
ants, in connection with and consequent upon
the resurvey and plan made by Green in
July, 1873, and the statements placed on the
plan, and the separate, written statement
then made and signed by Horace G. Clark
relating thereto, as far as was deemed nec-
essary and proper in the determination of
the case. But, in view of the arguments put
forth why the motion for reargument should
be granted, we discuss here more fully the
significance of that survey, including the
matters connected therewith, as bearing upon
the question of recognition and acquiescence
presented. At the time when that resurvey
and the plan were made, and when the notes
on the latter were agreed to and signed, An-
drew J. Mead owned a one-tenth undivided
Interest in the property now owned by the
plaintiff. Horace G. Clark, Norman Clark,
and Alanda W. Clark owned the remaining
nine-tenths Interest therein. The property
now owned by defendants was then owned,
seven-sixteenths by Lyman Bardin, two-six-
teenths by Stillman C. White, and seven-six-
teenths by Isaac M. Hillman. The findings
show that of the then owners of the property
now owned by the plaintiff only Mead had to
do with the making, or the causing to be
made, of tills resurvey and plan, and of the
then owners of the property now owned by
defendants only Bardin liad to do with the
causing of that resurvey and plan to be
made. The record states that Green was em-
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101 ATIiANTIO REPORTHB
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ployed to do this work "by both Mead and
Bardln, and each paid one-half of bis charges
therefor." Furthermore, none of the other
common owners of either property, except
Horace G. Clark by his writing referred to
abo7e, ever authorized or ratified this sur-
vey or plan, so far as the case shows, and
if the defendants claim otherwise, the bur-
den was on them to sbow it 4 R. C. Ia 120.
The conduct of Horace G. as president of the
American Marble Company is referred to by
defendants in connection with their claim In
this behalf, but there Is nothing in the find-
ings showing bis conduct in the position nam-
ed to have this effect as a matter of law.
(33] The law Is that an agreement by one
of several co-owners establishing a doubtful
or disputed boundary is not binding on the
others unless they consent thereto, and so as
H general rule all the parties interested in
the lands mast be parties to the agreement.
9 a J. 236; Strlckley v. Hill, 22 Utah, 257,
62 Pac 8(Ki, 83 Am. St Uep. 786; Wright v.
WUloughby, 79 S. C. 438, 60 S. B. 971; Smith
V. GlUey (Tex, Civ. App.) 135 S. W. 1107.
See Sawyer v. Coolldge, 34 Vt 303; Sllsby
A Co. V. Kinsley, 89 Vt 263, 05 AU. 634.
The finding that "Green discovered and
called to the attention of Woodhouse, Clarks,
and Mead the fact that the calls in deed
concerning the boundary did not correspond
with the monuments and objects on the
land, and that the marble post marking the
northwest comer «f the 06 rod piece was 8
feet farther south of the butternut tree than
Brown bnd found and Mead's plan shows,"
is not sufndent to establish a practical loca-
timi of the boundary line on the ground as
against Alanda W. Clark and Norman Clark,
construing the word "Clarks" as including
thnn, in the absence of proof that they
agreed to the survey as establishing the cor-
rect line. 9 C. J. 243; Hniby v. Lonseth, 63
Wash. fiSO, 116 Pac. 26. Nor in this respect
is the standing of Alanda W. Clark affected
hy the fact that he participated in the mak-
ing of the Brown survey; for, as ob6er\'ed
in the (pinion, that survey was not followed
by Mead In describing the properties to be
conveyed, and whatever was previously said
and done concerning the survey was merged
In the written instruments subsequently exe-
mted on the one hand, and accepted on the
other, and it can have no bearing In the case
unless it was afterwards used by the parties
in connection with the asserted recognition
of, and acquiescence in, the line now claim-
ed by the defendants. There is no finding
that Alanda W. made any such use of It At
the time that survey was made he was one
of the prospective purchasers of each piece
of property, and became one of the obligees
in each bond tor a deed. At the time of the
Green resurvey he was interested only In
the property now owned by the plaintiff.
'lliis shows a reason why at the latter time
he may not have been willing to become a
portjr to the so-called recognition and acqui-
escence, which, if It had the force now claim-
ed for It would deprive him and his co-own-
ers of a strip of land within their title deeds
approximately 2% rods wide, as the division-
al line Is located on the ground by the chan-
cellor. As to Norman Clark, it is said that
be recognized the line claimed by defendants
by his conduct as saperintendent of the
American Marble Company. Suffice it to say
that the record does not show what his con-
duct was US such superintendent and no
intendments are to be made against the de-
cree.
Concerning the land outside the defendants'
paper title, which they claim to own, the
opinion states:
"Nor is it found that each prior successive
grantee, in writing or by parol agreement or
understanding, transferred to Iiia successor his
possession of said land without the calls of bis
title deeds, accompanied by an actual delivery of
the possession of tho premises."
Defendants say In their brief for reargu-
ment that It is clear from this statement in
the opinion that the court does not have in
mind the facts found and reported reQicctlng
the subject-matter, the brief stating:
"It appears from the findings that npon the
giving of the bond to Oliver and others the
American Marble Company immediately went
Into possession of this property. The land oc-
cupied by tliem and those claiming under them,
namely, Burr, was inclosed and marked, first
with a fence extending some 400 feet easterly
from the west line, and, continued easterly, by
the apple tree, the row of large, tall, iron pins,
and squaro-cut marble block with the guy pin.
'the wooden post and the marble post; each of
these objects being found by the chancellor to
have been placed there for the purpose of mark-
ing the boundary, and to have otarked the bound-
ary from 1866 to 1885. This property passed
back to Mead under his foreclosure, with this
fenco and those markers inclosing the land claim.
Mead transferred it to Bardin, and Mead point-
ed out to Bardin on the ground the exact loca-
tion of the land which he was projwaing to con-
vey, and delivered possession thereof."
The only transfer from Mead to Bardin
was on .July 1, 1873, and that was of a seven-
sixteenths Interest In the property within the
defendants' title deeds. The fact asserted In
the brief that Mead pointed out to Bardln
on the ground the exact location of the land
which he proposed to convey, and delivered
possession thereof. Is not borne out by the
record; there is no finding to that effect.
The facts shown by the record, of the nature
of the others stated within the foregoing quo-
tation from defendants' brief, may be con-
sidered as fairly warranting an inference
that the possession of the strip of land out-
side the defendants' title deeds was by parol
transferred by each of the grantees to bis
successor, accompanied by actual delivery of
the possession of the premises, and yet that
is not sufficient; for the decree rendered
shows by intendment that suc^ Inference was
not drawn; such facts not found. The land.
not being included in the several deeds, an
actual transfer of possession thereof in each
instance was necessary to be shown^ and
found as a fact Without such fbct being «■-
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tabllslted, tbe possession could not be tacked
In making ont privity of estate or of jws-
sesslon between the successive disseisors es-
sential to continuity of possession. Winslow
V. Newell, 10 Vt. 184; 2 C. J. 92 ; Hames v.
Bernstein, 72 Ala. 546; Illinois Cent. R. Co.
T. Hatter, 207 111. 88, 69 N. E. 751; WIshart
T. McKnlRht, 178 Mass. 356, 69 N. E. 1028,
86 Am. St. Rq>. 488; Id., 184 Mass. 283, 68
N. E. 237; Ridi v. Naflzlger, 255 111. 98, 99
N. E. 341.
In referring to what the opinion says np-
m the snbject of guys, namely, that the
acts of placing gays on the land now own-
ed by the plaintiff are not found to have
been under a daim of right, defendants say
in their brief for reargument that the court
most have overlooked some facts found and
reported by the chancellor, naming as among
such facts that these guys were placed upon
the "dark lot" (Fant lot) by the American
Marble Company when it began its opera-
tions (quoting from the brief), "not only under
a claim of right, but by purchase of the right
to 80 place them." In this connection refer-
ence is made In the brief to Exhibits 38 and
41, and to article 96 of the findings. Exhibit
38 is defendants' plan; and Exhibit 41 is
the statement In writing signed b.v Horage O.
Clark in connection with the making of the
Green plan, as already noticed. Article 96
contains no finding that any of tbe guys in
question were placed on the "Clark lot," or
maintained there, under a claim of right.
The writing mentioned is copied Into the
record under the article named, but it is no-
where found that the statement in the writ-
ing relating to "the sale of the right to at-
tach three guys at or about the points on the
10-rod lot as now in use," or the somewhat
similar declaration stated on Exhibit 38 to
have been made by Mead, was true in fact
Such a statement by Mead, if properly shown,
and tbe statement in the writing by Horace
6. Clark, though evidence against them re-
spectively, were not evidence against their co-
tenants. Blondin v. Brooks, 83 Vt. 472, 7G Atl.
184. And the fact of such a purchase Is not
found. So the only right, if any, the defend-
ants have to place and maintain their guys
on the plalntlfT's land rests on adverse enjoy-
ment of tbe easement in connection with the
use and occupancy of the land now owned by
them; and In order to make out such a right
it was necessary for defendants to prove an
uninterrupted adverse enjoyment of the ease-
ment for a period of 15 years by themselves
or their predecessors in title, or both com-
bined. Perrin v. Garfield, 37 Vt 304. The
three Clarks who, with Oliver, were the ob-
ligees in the bond from Mead for a deed
of the property now owned by the defend-
ants, were associated In the formation and
(qperation of the American Marble Company.
Horace G. Clark was president of the com-
pany, and Norman Clark was superintendent.
During all the time that company was In
opexaUou tbe three Clarks were also Interest-
ed In the property now owned by tbe plain-
tiff, either as obligees In the bond for a deed
thereof with the right to enter thereon to
open, develop, and work all marble quarries
on said premises, or as tenants in common
(after the deed was given), tbe owners of
the major part of the land conveyed. The
Clarks being Oius interested In the two prop-
erties severally, and in the operation and
management of the company named, their re-
lations In these respects were Important mat-
ters for consideration in deciding whether the
use of the property now owned by the plain-
tiff for anchoring or hitching guys or guy
ropes thereon for the benefit of the other
property was adverse or permissive.
"The general rule is that the enjoyment of
an easement of this character is presumed to be
adverse unless something appears to rebut that
presumption. • • • There are some cases
where the user is of gatii a character and the
circumstances attending it are such aa to show
that it was a mere privileije enjoyed by leave of
the proprietor of the servient tenement, express
or implied, and not adverse"; and in some ar-
cnmstances the use "would be presumed to be
de gratia, or with the express or implied permis-
sion of the proprietor of the servient tenement."
Plimpton V. Converse, 44 Vt 158; Perrin v.
Garfieltl, cited above; Bradley Pish Oo. v. Dud-
ley. 37 Conn. 136.
In the case last cited the plaintiff wos i>
voluntary association and sued as such. The-
action was for obstructing an alleged right of
way lending from the plaintiff's fish place
over defendant's land to a public highway.
A prescriptive right of way was claimed.
The defendant Insisted that the user upon
the conceded facts could not be adverse, be-
cause the owners of tbe premises over which
the way was claimed to be were themselves
during the entire period of the user active
memliers of the plaintiff association. The
court stated the question to be whether one's
own land may be subjected to an easement
in favor of himself and another as joint
owners of other lands. It was held that In
such circumstances an easement may exist,
but that the use ought more than In ordinary
cases, to appear to be under a claim of right
The court said the Interest of the owners of
the land over which was the alleged way in
the business of their associates might lead
them to permit a passage over their individ-
ual lands, and on tbe question of fact a Jury
might think the use should be referred to such
permission rather than to a claim of right,
that the relation In which the parties stand to
each other may often serve to Indicate tbe
character of the use, and that the fact that
the owner of the land over which the way
was claimed was himself a member of the
plaintiff association and largely Interested
in its business might be, and was, an import-
ant matter to be weighed In deciding whether
the use was adverse or permissive.
On April 27, 1872, by decree of foreclosure
becoming absolute, Mead again became tbe
sole owner of the property previously owned
and operated by the American Marble Com-
pany, and remained such owner until the Ist
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101 AXIANTIC BBPORTEJB
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day of Jnly, 1873. Doling this same time he
was a cotenant In ownership of the prc^ierty
now owned by the plaintiff, and he could gain
a prescTlptlTe right of easement therein only
by user adyerse to his cotenants. Reed t.
West, 16 Gray (Mass.) 283.
[34] If a cotenant enter upon the whole or
part of the c<xnmon property, as he has a
legal right to do, the law presumes that he
Intends nothing beyond an assertion of bis
right. In order to sever his relation as co-
tenant, and render his possession adverse. It
must be affirmatively shown that the other
cotenants had knowledge of his claim of ex-
clusive ownership, accompanied by such acts
of possession as were not only inconsistent
with, but in exclusion of, the continuing
rights of the other cotenants, and such as
would amount to an ouster as between land-
lord and tenant Chandler v. Ricker, 49 Vt
128; Holley v. Hawley, 39 Vt 625, 94 Am.
Dec. 350; Roberts v. Morgan. 30 Vt 819;
Leach V. Beattle, 33 Vt 195.
[S5] A similar relation of the parties was
created on June 14, 1905, when defendant
Eastman, then the owner of the property
within his present title deeds, took a convey-
ance by warranty deed of one-third Interest
in an undivided one-tenth part of the land
within the plaintiff's title deeds, and on
which the defendants' guys are anchored and
fastened, and the same principles of law are
applicable. Flirthermore, the record before
us shows that the aforesaid Interest in the
land was purchased by Eastman for a valua-
ble consideration by him paid therefor.
There is nothing In the case indicating that
he made such purchase for the purpose of
quieting his own title, or to protect him
against litigation. Such purchase and ao
ceptance of the warranty deed amounted to
an acknowledgment that the title was In the
common owners, the interest of one of whom
he took by the purchase, and It was evidence
tending to show that the previous use (by
way of anchoring and fastening guys on the
land) was not adverse, or under a claim of
right Tracy v. Atherton, 86 Vt 608; Per-
rln V. Garfield, dted above.
Regarding such guy attachments between
the time when Mead sold the property of the
dominant estate on July 1, 1873, and the time
when Eastman became a tenant in common in
ownership of the servient estate In 1905, the
findings show that Green, In making his resur-
vey In the latter part of July, 1873, "located
points on the Clark lot where derrick guys
were fastened, and having completed his sur^
vey, he made a scale drawing of the same,
showing In detail the monuments • • •
and the guy hitches located on the Clark lot" ;
that In 1890 the large stone with the guy
attachment In the Brown and Green line was
visible ; that at some time after Eastman be-
gan operations the old derrick .was replaced
oy a new one, and the new derrick was guyed
at Bnbstantlally the same locatloas as 0x9
old one had been, excepting that there were
not 80 many guys on the new mast as there
had been on the old ; and that defendants are
maintaining upon the premises three guy at-
tachments which are north of the so-called
"pin line."
[3(] It Is quite evld^it from the record
that the proof and Inferences toudilng the
question of the easement claimed are not all
one way; and it cannot be said, as matter
of law, that within the time asserted by de-
fendants there was an uninterrupted user
and enjoyment of the easement for a period
of 16 years under a claim of right Assum-
ing that such a user and enjoyment might
reasonably have been Inferred from the facts
reported, it must be intended that such in-
ference was not drawn; for otherwise the
decree rendered by the chancellor was not
.warranted. So the case stands In this re-
spect that facts essential to the establish-
ment of the prescriptive right of easeinent
are not found; and thereon the burden was
with the defendants. Barber v. Bailey, 86
Vt 219, 84 AU. 008, 44 U Rs A, (N. S.) 98.
The defendants' brief in support of tlie
motion for reargument has been carefully
considered, and no substantial ground for the
motion is found.
The motion for reargument is denied.
Decree affirmed, and cause remanded.
(to N. J. Law. 637)
NEW YORK & NEW JERSEY WATER CO.
V. STATE BOARD OF ASSESSORS.
(Court of Errors and Appeals of New Jersey.
June 18, 1917.)
Taxation #=»36S— Public Service Corpora*
TIONS— Franchise Taxes— Rates.
Voorhecs Franchise Tax Act (4 Comp. St
1910, p. 5299) i 4, requires the owner of a
franchise first to make return of the gross re-
ceipts of the business, and also reqaires every
owner of a frandiise having part of its trans-
portation line on private property and part on
public streets or ploces to make return showing
the gross receipts for transportation. Beld, that
a water company having pipes in the public
streets is not engaged in transportation within
the act. and must make return on the whole of
its gross receipts.
Appeal from Supreme Court
Certiorari by the New York & New Jersey
Water Company against the State Board of
Assessors to review the assessment of a fran-
chise tax against prosecutor's property.
From a Judgment dismissing the writ (88 N.
J. Law, 695. 97 AU. 153). and afflrmlng the
action of the assessors, prosecutor appeals.
Affirmed.
Franklin W. Fort, ot Newark, for appel-
lant Francis H. McOee, of Trenton, and
Herbert Boggs, Asst Atty. Gen., for appellee.
SWAYZB, J. One point raised by the ap-
pellants seems to require uotlca it is ar-
gued that the franchise tax on a water com-
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GROSS V. COMMERCIAL CASUALTY INS. CO.
169
peny under flie act of 1903 amending tbe
Voorhees PrancMse Tax Act of 1900 (P. L.
1903, p. 232; C. S. p. 5298) must be calculated
only upon the gross receipt for transporta-
tloD. Hence, it is said, it was erroneona to
tax the prosecutor on tbe whole of Its gross
receipts, since It owned tbe water it trans-
ported, and to calculate the tax on the whole
of the gross receipts was to calculate it, at
least In part, on receipts for the sale of wa-
ter, as distinguished from receipts for its
mere transportation. The tax la fixed by sec-
tion 6 (C. S. 5299, pi. 631) at 2 per centum
of the annual gross receipts "as aforesaid."
The reference Is to section 4, and the diffi-
culty arises out of the fact that by that sec-
tion the owner of a franchise Is first requir-
ed to make return of the gross receipts of
the business, and later in the same section
every owner of a franchise having part of its
transportation line on private property and
part on public streets or places is required to
make return showing the gross receipts for
transportation. The appellants assume that
a water company Is within the last provision.
The history of the legislation shows the fal-
lacy of this assumption. The corresponding
part of section 4 as originally enacted in
1900 (P. L. 503) appUed only to oil or pipe
Hoe companies having part of their trans-
portation line in this state and part in an-
other state and to their receipts for trans-
portation of oil or petroleum. At that time
oil and pipe line companies transporting oil
or petroleum having part of their lines in
this state and part in another state were
transportation companies called transit ccwn-
panles, and were soon after treated as com-
mon carriers by the act of Congress known as
the Hepburn Act (Act June 29, 1906, c. 3591,
34 Stat 584). This view has recently been
sustained by the Supreme Court of tbe Unit-
ed States. The Pipe IJne Cases, 234 U. B.
548, 34 Sup. Ct 956, 58 U Ed. 1459.
The Legislature in the act of 1903 dealt
with two classes of owners of franchises, one
of which was required to make a return of
the gross receipts of the business, the other
a return of gross receipts for transportation.
Probably all owners of franchises affected by
the act— L e., those having the right to use or
occupy, and occupying the streets and public
places— used the streets for the transporta-
tion of their product. Such are the owners
of gas plants, electric light plants, telegraph
and telephone plants, steam heating plants.
If all these are to be dealt with as transpor-
tation companies under the later clause,
there will be few or none left to make return
On the whole of their gross receipts under
the earlier clause. What was meant by the
later clause was to tax the owners of fran-
chises whose business was transportation,
like the New York Transit Company and the
National Transit Company. Others whose
business was the sale of their commodities or
services, gas, electric current, electric com-
munication, steam or water, with whom the
means of transportation — wires or pipes —
were only the necessary means of delivering
their commodities; were taxable on their total
gross receipts under tbe earlier clause. This
disposes of the objection to the view of the
Supreme Court that the error In apportion-
ment affects only the municipalities, and they
do not complain. It disposes also of the
contention that the apportionment should be
made not according to the length of the Une,
whether there was one pipe or more, but ac-
cording to the number of feet of pipe. There
is no apportionment necessary in ascertain-
ing the amount of the tax, in which alone
the appellants are Interested. If there has
been error in apportioning the amount amcaig
the taxing districts, the appellants are not
injured thereby.
As to other points raised, we have nothing
to add to what was said by the Supreme
Court
We find no error, and the Judgment is af-
firmed, with costs.
(80 N. J. L»w, 6»4)
GROSS V. COMMERCIAL CASUALTY INS.
CO. OF NEWARK. (No. 110.)
(Court of Errors and Appeals of New Jersey.
June 18, 1917.)
(ByTUihug hy the Court.)
INSTTKANCI! ©=»524 — INDEMNITY InBTTBANCB—
CoNSTBrcnoN of PotlCT— Disabiutt.
An insnrance company by its policy con-
tracted to pay the assured a weekly indemnity
so long as he should be totally disabled and
wholly and continuonsly prevented from per-
forming any and every idnd of bnsineBs relating
to his occupati(Mi. The business of the assured
was that of a traveling salesman, which re-
quired a constant use of his feet, and during the
term of the policy he was afflicted with a foot
ailment which entirely prevented him from trav-
eling and soliciting business, although during
part of the term for which be claimed indemnity
be was able to go to the office of his employer
and conduct some business by writing letters and
the use of the telephone. The trial court in-
structed the jury that the reasonable construc-
tion to be put upon the language used was, not
that he must be so disabled as to prevent him
from doing anything whatsoever pertaining to
his occupation, but that, if he be so disabled
as to prevent him from doing any and every
kind of business pertaining to his occupation, he
was entitled to recover. Held, iJiat sncb an in-
struction was not error.
[Ed. Note.— For other cases, see Insurance.
Cent. Dig, § 1310.]
Appeal from Circuit Court, Essex County.
Action by Rudolph Gross agalu.st the Com-
mercial Casualty Insurance Company of New-
ark, N. J. Judgment for plaintiff, and de-
fendant appeals. Affirmed.
William E. Holmwood, of Newark, and Ed-
ward L. Katzenbacb, of Trenton, for api>el-
lant. Jacob L. Newman, of Newark, for ap-
pellee.
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170
101 ATLANTIC REPORTER
(M.l
BBRGBN, J. The plaintiff brought hU ac-
tion to recover on a policy Issued to him by
the appellant, assiu-ing him certain payments
In case of death or disability resulting from
bodily Injuries effected solely through ac-
cidental means, and It provided that If, by
reason of disease or Illness contracted during
the term of this Insurance by the assured, he
be totally disabled, and "wholly and contin-
uously prevented from performing any and
every kind of business pertaining to his oc-
cupation and necessarily confined in the
house," he should be paid as for total dis-
ability, "and if, Immediately following such
a period of total disability and conQnement
in the house, he shall be totally disabled and
wholly and continuously prevented from per-
forming any and every Idnd of business per-
taining to his occupation, but Is not necessa-
rily confined In the house, three-fourths of
said amount per week shall be paid to the
assured."
The plaintiff recovered a Judgment, from
which the defendant has appealed. This ap-
peal presents two questions: First, is the
plaintiff entitled to recover? and, second. If
entitled to recover, was the Jury improperly
instructed as to the extent of disability re-
quired by the policy?
The first was raised by motions to nonsuit
and for a direction in favor of the defendant,
and second by an objection noted to the in-
structions given to the Jurj'. The solution of
the first question favorably to the appellant
depends upon a determination that the policy
was invalidated because of a breach by the
plaintiff of certain written warranties made
by him, and made a psLtt of the policy which
was issued on October 11, 1911, and contain-
ed among other warranties the following:
"I have not been disabled nor have I received
any medical or surreal attention during the past
five years except as follows: In 1911 for eczema,
lasting fonr months."
And:
"My hftbits of life are correct and temperate :
my hearing and vision are not impaired; I am
in sound condition mentally and physically, ex-
cept as herein stated: No exceptions."
This policy expired October 1, 1912, and
was renewed each year thereafter, the last
being from October 1, 1914, to October 1, 1915.
The renewals were manifested by a certifi-
cate continuing in force the original policy —
"provided the statement in the schedule of war-
ranties in the original contracts are true on
this date and that nothing exists on the date
hrreof to render the hazard of the risk greater
than or different than that shown by such sched-
ule."
The testimony permits an Inference:
That previous to the issuing of the last certifi-
rnte the plaintiff had called upon a physician be-
cause, as plaintiff testified, he "got so easily
tired in my feet. I went down tiiere to con- I
)<ult bfoause he once treated me before, about a
few years ago. • * * I went down there, and
he loolccd me over. He did not say anything.
He said. 'You go borne and take a little more
care and take a little rest and rub j-oiir feet -
with alcoboL' Q. lie did not tell you anything '
was the matter with yon? A. No. Q. And you
had no troable after that until this last illness?
A. Yes."
This he testified happened six montlu or a
year prior to the last renewal. As this
branch of the case rests upon the motions to
nonsuit and for direction of a verdict, the
foregoing testimony must be taken as true,
and the question is whether this testimony
conclusively established the fact that when
the lost renewal certificate was issued the
plaintlfTs warranty that he had "not t>een
disabled nor have I received medical or sur-
gical attention during the past five years"
was untrue, and therefore a breach of the
warranty within the meaning of the policy,
and also V( bother his condition made "the
hazard of the risk different or greater tlian
that shown by such schedule." The plain-
tiff's business required him to be on his feet
most of the time, and finding that he tired
easily, he went to the physician and repre-
sented his condition, but was not Informed
by him that he had any illness; was simply
told to bathe his feet in alcohol. We do not
consider this receiving medical attention of
such a character as to require the plaintiff
to state it to the defendant on the renewal,
or that not doing so would invalidate the
policy. Neither the physician nor the plain-
tiff bad any idea that the symptoms might be
an indication of the allm«it which subse-
quently developed, or that it was a disease
or sickness. Advising one to l>attae his feet
in alcohol simply because they are tired la
not conclusive evidence that the plaintiff bad
reo^red medical or surgical attention suffi-
cient to forfeit the poUcy because it had not
been made known to the defendant any more
than if the ailment was temporary, such as
an ordinary cold. Whether the plaintiff had
knowledge that his condition was such that
the hazard of the risk was different or great-
er than that shown by the schedule of waiv
ranties was a Jury question. The court sub-
mitted to the Jury the question whether the
ailment was of so serious a character as to
permanently affect bis health and to make
him a less desirable risk, and directed them
that if they found in tbe affirmative then
there could be no recovery. It was not error
for the court to refuse to nonsuit, or to di-
rect for tbe defendant, for the reasons urged.
The second branch of the case depends
upon the construction to l>e given to the fol-
lowing part of the policy:
"If, immediately following such a period of
total disability and confinement in the hovse.
he shall be totally disabled and wholly and con-
tinuously prevented from performing any and ev-
ery kind of business pertaining to his occupa-
tion, but is not necessarily confined to the house,
three-fourths of the said amount for the week
will be paid to the assured."
The trial court Instructed the Jury that
the reasonable construction to be put upon the
language used was, not that be must be so
disabled as to prevent him from doing any-
thing whatsoever pertaining to his occupa-
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GRILLO V. THOMAS A. EDISON
171
tlon, but that, If he be so disabled as to pre-
vent him from doing any and every kind of
business pertaining to his occupation, he was
entitled to recover.
The proofs show that the occupation of the
plaintiff was traveling for his employer from
Newark, N. J., to New York, Boston, PhUa-
delphla, and other places to sell and buy
leather and hides and attend to the ship-
ments; that he sometimes did office work,
calling people on the telephone and dictating
letters concerning business growing out of
his traveling; that from January 4, 1915, to
the 15th of October following he was not able
to do any traveling because of a severe and
persistent aliment affecting his feet; they
were so siwoUen that he could not wear his
shoes until nearly the end of the period,
when he was able to wear a special shoe made
for his use; he would go to the office with
an automobile, and while there occasionally
dictated a letter, the proofs showing that
during the entire period he dictated about 80
letters, but that he did not do his regular
work. TVe think that the instruction of the
trial court was right. The indemnity con-
tained in the policy included any and every
kind of wotk appertaining to his occupation,
not a part of his work, but any and every
kind, and the policy makes the distlnctiou be-
tween the total disability which confined him
to the house, and the disability to do every
kind of .work pertaining to his occupation
after he was able to go out of the house, and
provided a lower rate for the latter disability.
In Young v. Travelers' Ins. Co., 80 Me. 244,
13 AtL 806, the Supreme Court of Maine dealt
•with a policy which had in it this clause :
"And wholly disable and prevent him from the
prosecution of any and every kind of business
pertaining to the occupation under which he is
insnred."
In that case the trial court Instructed the
Jury that the meaning of this language was
not that he must be so disabled as to prevent
him from doing anything whatsoever per-
taining to his occupation or to any part of
his business, but that he must be so disabled
aa to prevent him from doing any and every
kind of business pertaining to his occupation,
and that there was a difference between being
able to perform any part and any and every
kind of business, and the appellate court sus-
tained this instruction to the Jury :
"If the prosecution of the business required
him to do several acta and perform several kinds
of labor, and he was able to do and perform only
one, he was as effectually disabled from per-
forming his business as if he could do nothing
required to be done."
In Hooper v. Accidental Ina Co., 5 Hurl-
stone & Norman, 546, where the plaintiff was
an attorney, he sprained his foot while rid-
ing on horseback, and the claim by the In-
snrance company was that it did not wholly
disable him. In that case the covenant was
that, if the Injury be of "so serious a nature
as to .wholly disable him from following his
usual business, occupation, or pursuits," the
company would pay, and the court held :
"If a man is so incapacitated from following
bis usual business, occupation, or pursuits as to
be unable to do so, he is wholly disabled from
following them. His usual business and occupa-
tion embrace the whole scope and compass of his
mode of getting his livelihood. • • • They
intended that when the insured was wholly in-
capable of performing a very considerable part
of his usual business he should receive a com-
pensation in respect of that disablement"
In construing a policy we should adopt the
meaning of the words used most advan-
tageous to the assured, and In the present
case the indemnity runs during such period
as the insured Is disabled to perform any and
every kind of his occupation. The proofs
show sufficiently for the Jury to so infer that
the principal part of the occupation of the
insured was traveling in which the use of
his feet were absolutely necessary, and be-
cause of his peculiar illne.ss he was disabled
from performing tlie principal and major part
of his occupation.
We see no error in this record, and think
the Judgment should be affirmed.
90 N. J. lav. 680)
GRILLO et al. v. THOMiAS A. EDISON, Inc.,
et al. (No. no.)
(Court of Errors and Appeals of New Jersey.
June IS. 1917.)
1. Triai, ®=»178— Motion to Dibect Veb-
DicT— Question Pbesented.
A motion to direct a verdict presents only
the question of defendant's liability, and does
not stir the question of the measure of dam-
ages.
(Ed. Note.— For other cases, see Trial, Cent
Pig. S$ 401^03.]
2. Waters and Wateb Goubsgs ®=96S —
Pollution— Manufactubimq Plants— Con -
tbibutino Caubb.
Where substances put into a stream by de-
fendant manufacturing company created a con-
dition injuring plaintiffs health and property,
the fact that sulphuric acid, already in the
stream, contributed to the result did not ab-
solve the defendant, and it was immaterial
whether such acid was a natural ingredient of
the stream, or was artificially introduced by
strangers to the suit
W^Ed. Note.— For other cases, see Waters and
ater Courses, Cent. Dig. { 60.]
Appeal from Supreme Court.
Action by Salvatore Grlllo and others
against Thomas A. Edison, Incorporated, and
others. Judgment for plaintiffs, and defend-
ants appeal. Affirmed.
In the Supreme Court the following per
curiam was filed:
[I] "This case, which was tried before the
district court without a jury, resulted in a
judgmenb against the defendant, Thomas A.
Edison, Incorporated. The trial court found
from the proofs that substance flowing from
this defendant's plant through its artificially
constructed channel into the stream created a
condition that was injurious to health and
property. Touching this finding, the appellant
says: 'The learned judge's finding of fact is
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173
101 ATIANTIO REPORTER
(N.J.
correct, but his conclusion of law is erroneous.*
The legal ruling of the trial court that is com-
l)Iained of is the denial of the appellant's mo-
tion to direct a verdict in its favor. This mo-
tion does not stir the question of the measure of
damages, and, its denial presenting only the
question of the liability of the defendant, the
motion was properly denied.
[2] ''The substances put into the stream by
the defendant were the proximate and efficient
cause of the injury to tiie plaintiff. Tlie cir-
cumstance that the sulphuric acid already in
the stream contributed to this result does not
absolve the defendant; and tliia is equally true
whether the acid was a natural ingredient of
the stream or was artificially introduced by
strangers to this suit.
"Weidman Silk Dyeing Co. v. East Jersey
Water Oo. (Sup.) 91 Atl. p. 338, was an action
for the unlawful abstraction of <vater from a
stream. The contention there, as here, was that
the injury was created in part by the acts of
others than the defendant, in that they polluted
the water. In that case, in declining to give
the desired force to this argument, we said:
'The abstraction was a direct and proximate
cause of the injury, though alone it would not
have caused it' (citing Newman v. Fowler, 37
N. J. Law, p. 88 : Matthews v. D. L. & W. R.
R. Co., 56 N. J. I.aw, p. 34, 27 Atl. 919, 22 L.
R. A. 261, and referring to 38 Cyc. 488).
"The subsequent reversal of the judgment (88
N. J. TjBlv, 273, 96 Atl. p. 60) was upon a total-
ly different ground, and in the case upon which
such reversal rested, viz. Auger & Simon, etc., v.
East Jersey Water Co., 88 N. J. Law, 273, 96
Atl. p. 60, it was said by Mr. Justice Bergen
speaking for the Court of Elrrors and Appeals:
'It is no answer to an action • • • for a
nuisance to show that a great manjr others are
committing the same species of nuisance upon
the stream, for, if the defendant's acts apprecia-
bly add to the pollution, they create a nuisance.'
The diflference between a nuisance created by the
concurrence of pollution of the stream and the
abstraction of its waters does not differ in prin-
ciple frdra a nuisance created by a chemical
reaction between a substance already in the
stream and one placed therein by the act of the
defendant. Upon the question, therefore, of
liability, which is all that wag presented by the
motion to direct a verdict, the trial court com-
mitted no error in the denial of such motion.
"The question of the measure of damages is
not before us upon an appeal from this ruling.
The judgment of the district court is affirmed,
with costs."
McCarter & English, of Newark, for appel-
lants. John Larkln Hughes, of Passaic, for
appellees.
PER CURIAM. The judgment tinder re-
view will be afflrmnd for the reasons set forth
in the opinion of the Supreme Court.
(87 N. J. Bq. 4U)
CONDIT BREF & PROVISION CO. et al. T.
ARLISS et al. (No. 42/80.)
(Court of Chancery of New Jersey.
May 22, 1917.)
PRAUDtTLRNT CONVEYANCES ®=20C{2) — "EX-
ISTING Cbeditobs" — Settino .\siue.
Defendant was indebted to plaintiff on run-
ning account when he made a voluntary con-
veyance to his wife. Ho continued to buy and
items due at time of conveyance were satisfipd
by payments made, but account was never paid
in full, but up to time of judgment the balance
due was always great as debt at time of con-
veyance. Beld, that plaintiff was an "exist-
ing," and not a subsequent, creditor, and entitled
to set conveyance aside.
[Ed. Note.— For other cases, see Fraudulent
Conveyances, Cent. Dig. f 630.
EV>r other definitions, see Words and Phrases,
First and Second Series, Existing Creditors.]
Stilt to set aside a voluntary conveyance
by the Condit Be^ & Provision Company
and others against Simeon W. Arllss and
others. Judgment for plaintiffs.
Herbert J. Hannoch, of Newarlc, for com-
plainants. Hugo Woerner, of Newark, for
defendants.
STEVENS, V. C. This Is a creditor's biU
to set aside a voluntary conveyance.
In March, 1915, the defendant Arllss, a re-
tail butcher, made such a conveyance to his
wife. At the time he made It, he was in-
debted to the complainants, wholesale butch-
ers, on a running account. He continued to
buy from them for several months thereaft-
er, and, from time to time, made payments
on account. According to the rule relating
to appropriation of payments, ,the debit
Items of the account, as they stood when the
conveyance was made, were satisfied by tlie
payments made subsequently, but the ac-
count was never paid in full; and It was
not reduced to an amount less than that
wUch was owing at the time of the convey-
ance.
The question Is whether complainauts
were existing creditors, within the rule of
Haston v. Castner, 31 N. J. Eq. 703. This
question was answered In the afflnnatlve hy
Howell, V. C, In Crane v. Brewer, 73 N.
J. Eq. 558, 68 Atl. 78. The argumwit now
made Is that the decision does not notice
and does not accord with that of the Court
of Errors in Severs v. Dodson, 53 N. J. Eq.
634, 84 Atl. 7, 51 Am. St Rep. 641. I should
hardly feel at liberty to disregard Crane v.
Brewer, but I may say that it seems to me
to be rightly decided. Haston r. Castner
holds that a rolnntary conveyance Is pre-
sumed to be fraudulent as to debts antece-
dently due ; and that, as a rule of evidence,
no drcnmstances will be permitted to repel
this legal presiunption. Severs y. Dodson
decides that an accommodation Indorser of a
promissory note Is not a debtor within the
meaning of the rule.
In the case In hand the complainants were
creditors when the conveyance was made,
and they continued to be, up to the entry of
judgment There was always, during the
intervening period, a debt owing as great
as that which existed at the time defendant
conveyed. The debt. It is true, was from
time to time Increased and diminished, but
it continued to be one debt, contained in one
accoimt and constituting a single cause of
action. The situation was similar to that
appearing In Whittington v. Jennings, 6 Sim.
493, a case in which a voluntary assignment.
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WILSON T. VOOBL
173
made nnder like drcnmstances, was avoided.
The case In hand differs from Severs v.
Dodson In the controlling circumstance that
there there was a contingent liability and not
an existing debt Beasley, C. J., said that
the conclusive presumption only obtained
when the conveyance was made by one in-
dehted. In the case in hand it was so made.
It was therefore voidable at the time. As
the debt persisted until judgment, although
the Items of which it was composed under-
went change, it would seem more reasonable
to apply the rule of Haston v. Castner than
that of Severs v. Dodson. Tliat, it seems
to me, would be putting the rule as to tip-
plication of payments to a very unwarrant-
able use. It is argued that the partial pay-
ments were made with reference to particu-
lar Items. I fail to see that It makes any
difference, as far as the present question la
concerned, whether the payments exactly
eqnal the items or overpay them. In either
case a part of the whole debt remains.
(t7 N. J. Bq. ES4)
WILSON et aL v. VOGBU (No, 42/706.)
(Conrt of Chancery of New Jersey. May 19,
1917.)
1. Vesdob and Purchaser «=»129(4)— Sutfi-
ciB.NCY OF TCiTLE— Questions of Law-
Wills.
A will devised testatrix's property to two
danrtters to be divided equally between them,
share and Bhare alilie, and in case either die
without issue, and intestate, her share to go to
the survivor. The devisees tendered a deed sign-
ed by them together with releases of their pow-
ers of disposition. Held, that there was a doubt
u to whether the devise created a fee simple
defeasible upon the first taker dying without
issue and_ intestate whereupon the executory
devisee miRht transfer her interest and release
her testamentary power of disposal, or whether
it created a life estate with power of testamenta-
ry disposition, and hence specific performance
could not be decreed.
[Ed. Note. — For other cases, see Vendor and
Purchaser, Cent. Dig. g 241.]
2. EQurrv «=>.39(2)— Questions of Law.
If a doubt raised depends upon a question
of the application of general principles of law,
equity will decide the question in a suit for
specific performance, unless the question is not
settled by previous decisions, or If there is dicta
indicnting that courts might differ.
_[Ed. Note. — For other cases, see Equitr, Cent.
Dig. fi 1W-109, 114.]
Suit for spei'iSc performance by Edna S.
Wilson and otiiers against George U Vogel
to determine the validity of a tltla Bill dis-
missed.
IMker & Hiker, of Newark, for complain-
ants. Arthur R. Denmaii, of Newarii, for de-
fendant
LANE, V. C. This is the familiar friendly
suit in specific performance to determine the
validity of a title. The conclusions 1 have
reached render It unnecessary for me to
express an opinion as to whether the title Is
valid or not Complainants derive their title
from Esther C. Shelby, their mother. The
will, so far as material, provides as follows:
"I give, devise and bequeath to my said
daughter Edna L. and my said danshter Mabel
B., their heirs and assigns to be divided between
them, share and share alike (the property in
question and also certain personal property).
* * * In case either of my said daughters
dies without issue, and intestate, her share in
said house lots and stable and contents thereof
shall go to the survivor."
[1] A deed has been tendered, signed by
Edna L. Wilson and Mabel E. Beleases of
the powers of 'disix>8ition have also been
duly executed by them and their husbands to
each other and tendered. The sole question
Is whether the complainants can, with the
aid of such releases, convey an estate In fee
simple to the defendant The residue of the
estate is- to be held by trustees not only for
the benefit of the two daughters and their
issue, but also a son.
[2] The rule appears to be settled that if a
doubt raised depends upon a question involv-
ing the application of general principles of
law, it la the practice of courts of equity to
decide the point of law In a suit for specific
performance, but that In such cases specific
performance should not be decreed If there
is reasonable ground for saying that the
question la not settled by previous dedslons,
or if there are dicta of weight which indi-
cates that courts might 6ltter as to the de-
termiuatlon of the iwint Involved, and that
one of the categories in which the courts
decline to compel specific performance la
where the doubt as to the vendor's power to
convey a good title arises in ascertaining the
true construction and legal operation of
some ill-expressed aiud inartificial Instrument.
This Is almost precisely the language of Vice
Chancellor Grey in Richards v. Knight, 64
N. J. Eq. 196, 53 Atl. 452. And see Lippincott
V. Wlkoff, 54 N. J. Bq. 107, 33 Atl. am. and
Faby v. Cavanagh, 59 N. J. Eq. 278, 44 Att.
154. I have reached the conclusion that no
construction which I can put upon this clause
of the will is so free from doubt as to war- '
rant this court in decreeing specific perform-
ance. The contention of the respective par-
ties is, the complainant that the devise creates
a fee simple defeasible upon the first taker
dying without issue and intestate, In whldi
event the executory devise over would oper-
ate, and that the executory devisee being in
esse and ascertained she may Join In the deed
and thereby transfer her Interest, and that
the testamentary power of disposal being a
power in gross may be released and the re-
sult Is a good title; the defendant, that un-
der the determlnaticm of the Court of Ap-
peals in Kellers v. Kellers, 80 N. J. E>i. 441,
85 Atl. 340, Cantlne v. Brown, 46 N. J. Law.
599, and Kent T. Armstrong, 6 N. J. Eq. 637,
the devise is that of a life estate only with a
power of testamentary disposition, and that
inasmuch as the estate is one for life only, 11
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174
101 ATLANTIC REPORTER
(N.J.
the first taker dies without Issue and Intes-
tate, then the executory devise over would
operate, and that If she dies with Issue, ei-
ther the Issue will take or the estate will fall
Into the residue of first testator's estate.
Defendant further contends that in view of
Thomson's Executors v. Norrls, in the Court
of Appeals. 20 N. J. Eq. 489, that there Is at
least dictum in this state which would in-
dicate that the power of disposal is not such
a power In gross as may be released, with
the result that the first taker might, notwith-
standing her release, subsequently exercise
her power of disposition by will. If the case
of Kent V. Armstrong is to be given full
force and effect, then there is no doubt but
that the estate created by this will is a life
estate only. It is said that the force of the
case is weakened because it rests, to some
extent at least, upon the fact that the effect
of tho words "should die without heirs" was
to create at common law a fee tall and under
our law a life estate at the time of the de-
cision, but that subsequent to that case, in
1851, a statute was passed (Volume 4, G. S.
of N. J. 1910, Wills, par. 27, p. 5870), whldj
provides that in any devise or bequest of real
or personal estate the words "die without
Issue" or "die without lawful issue" or "have
uo issue" shall be construed to mean a wane
or failure of issue, in the lifetime or at the
death of such person, and not an indefinite
failure of issue, imless a contrary intention
should otherwise appear by the will, and
that this statute has been considered in nu-
merods cases, among others Patterson v.
Madden, 54 N. J. Eq. 714, 38 Atl. 27.^ : Braz-
zalle V. Dlebm, 86 N. J. Law, 276, 90 Atl.
1128; Dean v. Nutley, 70 N. J. Law, 217, 67
Att. 1089; Steward v. Knight, 62 N. J. Eq.
232, 49 Ati. 535; Vreeland v. Blauvelt. 23 N.
J. Eq. 483; Dilts v. Clayhaunce, 70 N. J. Eq.
10, 62 Atl. 672; Oondlt v. King, 13 N. J. Eq.
375; Da vies, Administrator, t. Steele's Ad-
ministrator, 38 N. J. Eq. 168; McDowell v.
SUger, 68 N. J. Eq. 125, 42 Atl. 575; and
'that such cases construe the statute as creat-
ing in the first taker a vested but defeasible
fee-simple estate, the condition of the de-
feasance being the occurrence of the devisee
dying without issue. Cantlne y. Brown, 46
N. J. Law, p. 599, was decided, however, by
the Court of Appeals subsequent to the pas-
sage of this statute. There the devise was
to three daughters, their heirs and assigns,
with a proviso that in case one should re-
main unmarried and should make no dispo-
sition of her estate by will her share should
at her death be equally divided among her
sisters, and the Court of Appeals said:
"The question presented is whether under
that devise she takes a fee or merely a life
estate, with power of testamentary disposition of
the property. Tiie decision of this court in Kent
V. Armstrong, 6 N. J. Eq. 637, disposes of the
question."
Again the Court of Appeals in Kellers v.
Kellers, 80 N. J. Eq. 441, 85 Att. 340, where
the devise was to testator's wife, her heirs
and assigns, and should she acquire the es-
tate and die without making a will, then
that his will should operate and his estate
be divided between his children as therein
provided, said again, quoting Kent v. Arm-
strong :
"It was held in that case that the primary
deviseo took a life estate only, with a power of
testamentary disposition, and that in the event
of her dying intestate the executory devise over
became operative. Thirty-five years later we
aeain had before us in the case of Cantine v.
Brown, 46 N. J. Law, 699, the question of
the construction of a devise similar to that un-
der scrutiny in Kent v. Armstrong, and de-
clared that the decision in the earlier case must
be regarded as the law of construction in this
state on sudi devises."
If the estate taken by the first taker Is
merely a life estate, then if she dies with is-
sue, but Intestate, It would seem that either
the Issue take by implication or the property
falls Into the residue of the testator's estate.
This result might be avoided by holding
that the first taker took a fee defeasible upon
the happening of the contingency, and I
might be Inclined if the matter was novel
to so hold, but I cannot conceive that such
a holding would be so free from doubt as to
permit me to require specific performance.
The Court of Errors and Appeals must have
given some effect to the words "and intes-
tate" In determining the nature of the es-
tate created.
So with respect to the power to release
the right of testamentary disposition. I
have considered the numerous cases cited
by the complainant, and Norrls v. Thomson's
Executors, 19 N. J. Eq. 307, in the Court of
Chancery, and Thomson's EJxecutors v. Nor-
rls, 20 N. 3. Eq. 489, at page 524. Chief Jus-
tice Beasley In the latter case said that:
"I have not found any case in which it was
mamtaitied the power to appoint to strangers,
after the expiration of an interest piven to the
donee of the power, was a power in gross."
There was In existence at that time Al-
bany's case, 1 Coke, llOd, 76 Eng. Reprint.
250, which has been dted in the case below
by the chancellor. To the same effect is
Smith V. Death, 56 Eng. R^rlnt, 037. In
Grosvenor t. Bowen, 15 R. I. 649, 10 Atl. 589.
there was a bill for spedflc performance,
the question of title being raised under a
will which gave property to A. for life, on
his decease to such person as he might ai>-
polnt by his will, and In default of such ap-
pointment to the heirs of testatrix; It was
held that he might release his power to ap-
point to the tenants In remainder or to ex-
tinguish it by joining with the other com-
plainants in a deed conveying the bargain-
ed lot to the defendant In fee simple and
therein releasing the power to him. There
is a full discussion of the law in this case.
There may also be a very clear distinction
between a power to appoint among designat-
ed strangers and a general power to appoliit
among all the Inhabitants of the earth, in
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X.JJ
CB0P8ET T. CROPSKT
176
view of the dlctnin of Cblef Justice Beasley
in Thomson's Executors t. Norris, sui>ra, it
cannot, I think, be said that the law is so
well settled on this point as to permit a de-
cree for si>eciflc performance.
I will advise a decree dismissing the bill.
(88 N. J. Bq. «1)
CROPSET v. CBOPSEY.
(Court of Chancery of New Jersey. May 21,
1917.)
1. HCSBAND ANI> WiFB €=»201 — SBTTINO
Aside Convetance— Evidence— Bubden of
Pbooi'.
The burden of establishing fraud is upon
the complainant, and the rule that, in an action
by a wife against her husband to set aside a
conveyance of her property, a presumption of
fraud arises which the husiband must overcome
does not apply to an action by the wife to set
aside deeds by her to a third person and from
the third person back to the husband and wife,
where it was shown that the property was pur-
cha.sod with their joint savings, and the husband
got from his wife that which in fact, belonged
to him.
[Kd. Note. — For other cases, see Husband and
Wife, Cent. Dig. § 735.]
2. Husband and "Wife <8=»49%(7)— Convey-
ance TO Wife— Pbesumption.
As a rule, where a husband transfers his
property to bis wife or causes it to be trans-
ferred to her, there is a rebuttable presumption
that the transfer was a gift.
W"Ed. Note.— For other cases, see Husband and
ife. Cent Dig. § 253.]
3. Husband and Wife <S=»49%(7)— Cos^tit-
ANCE OF PSOPEBTY By WirE--llEBUTTAI, OF
Pbesumption.
The rule is less rigid to rebut the presump-
tion that property conveyed to a wife wns a
jrift, and to prove that it was a trust, where
the trust is set up in defense of a deed alleged
to have been given in discharge of the trust.
{Bid. Note. — For other cases, see Husband and
Wife, Cent Dig. { 253.]
4. Husband and Wife ®=201 — SEiriNa
Abide Conveyance — Evidence — Suffi-
ciency.
In an action by a wife against her husband
to set aside a conveyance by the wife of their
home to a third person and by the third person
back to the husband and wife, evidence held not
to show alleged frand by the hnsband in pro-
coring the deieds.
[Ed. Note.— For other cases, see Husband and
Wife, Cent Dig. | 735.]
Suit to set aside a conveyance by Eva P.
Cropsey against Charles D. Cropsey. BlU
dismissed.
Merritt Lane, of Newark, and Harry Lane,
of Jersey City, for complainant Robert
Carey, of Jersey City, for defendant.
BAOKB8, V. C. (orally after or^ment).
The bin Is tiled by Mrs. Cropsey against her
husband. Dr. Cropsey, to set aside convey-
ances of their home in Rutherford; one
luade by Mrs. Cropsey and her husband to
Cook Conkllng, and the other by Conkling to
Mr. and Mrs. Cropsey, dated May 29, 1913.
The cause for action is fraud imposed by the
hnsband upon the wife, namely, that he co-
erced her into signing the deed by threats of
abandonment, and Induced her to execute it
upon the fraudulent promise that he would
cease attentions to another woman, mend his
ways In other respects, and resume conjugal
relations, all of which it la charged he failed
to do.
[1] The burden of establishing the fraud la
upon the complainant, although In actions of
a certain class, by a wife against her hus-
band, to set aside a conveyance of her prop-
erty, a presumption of fraud arises, which
the husband must overcome. For instance,
if this deed were a pure gift by the wife to
the husband of her property, the burden
would be upon the husband to show that it
was her voluntary act, and I incline that he
would also be obliged to show that she had
the benefit of independent advice, or at least,
as the books lay it down, the burden would
be upon him to prove that he did not deceive
or oppress her, and that he dealt fairly with
her, and that she understood the nature of
the transaction. But this is not a gift case
to which the rule applies, as I understand it
Here the husband got from his wUe that
which In fact belonged to him.
This couple were marrieil, as I recall, in
1S92, and for many years, during the strug-
gling period, got along happily. Both worked
and saved money together; he as a pbysidan
and she as a singer and music teacher. She
was the treasurer; they had but one pocket-
book, and this she controlled. She managed
the finances and ran his books and bank ac-
counts. With the accumulations they bought
a lot and put the title in her name, and out
of tlielr savings they built their home in
1905, costing some $6,000 or $7,000, and later
they paid oS some of the mortgage incum-
brance. The greater portion of the money
came from the doctor's practice. Somewhere
in the evidence it appears that the object of
putting the title in Mrs. Cropsey was to pro-
tect It from the consequences of possible law-
suit against the doctor. Later In life, and
some six or seven years ago, their relations
became somewhat strained, largely due, as I
take It, to his persistent demands and her re-
fusal to transfer the home to the name of the
two. The ill feeling gradually Increased, and
they drifted further apart, and when Dr. De
Baun came Into her life it reached an acutb
stage, which resulted In complete estrange-
ment After he came on the scene she was
not as constant In wifely deportment, to put
it mildly, as she ought to have been. For
two years Dr. De Baun's attentions to Mrs.
Oopsey were marked, which served to in-
tensify the bitterness upon the part of her
husband, whose close and intimate friend Dr.
De Baun had been for many years. He was
a free visitor at the house, calling almost
daily, day and night, whether the doctor was
home or absent, and their conduct and es-
capades finally led to the divorce courts, Dr.
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176
101 ATIANTIC REPORTER
(N.J.
Oropsey charging Ms wife with adultery with
Dr. De Baun, In which she countercharged
him with a like offense with two women
whom she named. I tried that case, and dis-
missed the cross-petition because the charges
were entirely unfounded, and also dismissed
the doctor's petition. I denied him a decree,
not that there was not an abundance of evi-
dence calculated to arouse a strong suspicion
of wrongdoing, but solely because the proof
did not measure up to the legal requirements
to Justify judging her guilty. The final sepa-
ration toolc place in July or August of 1913,
after a Mrs. Thompson disclosed to Dr. Crop-
sey the mistmhavlor of his wife and Dr. De
Baun at her home the summer before, and
the impending scandal and exposure of a
threatened divorce suit was followed shortly
by the death of Dr. De Baun by suicide, as I
understand. I do not know that. In drawing
upon my memory, I am referring to the testi-
mony In this ca.se or the testimony in the di-
vorce suit — I am unable to distinguish Just
now — but It does appear In the one or the
other, and If It does not appear In the one I
am trying. It must be disregarded.
[2, 3] As a rule, where a husband transfers
his property to his wife or causes It to be
transferred to her. It Is presumed to be a
gift, but this Is a mere presumption, and,
like all other presumptions, may be rebutted.
Looking into the circumstances of this case
— the singleness of purpose of husband and
wife earning and saving in common to buy a
home ; his daily earnings and Income con-
tributing largely to the fund, the lifetime
savings of the two, and the complete under-
standing that the home was to be the prop-
erty of both, though title was put In the wife,
and that upon the death of either It was to
go to the survivor — we find there was In
morals and common Justice, at least, a most
sacred trust; perhaps unenforceable because
of the presumption of gift and the rule re-
quiring resulting trusts to be definitely es-
tablished by satisfactory and convincing
proof. But the rule is far less rigid to rebut
the presumption and to prove the trust,
where the trust Is set up in defense of a deed
alleged to have been given In discbarge of
the trust
[4] The doctor had been Insisting upon
this deed for years, because, as he says, they
had no children, and if his wife should die
first his rights would be lost ; and Indeed It
appears from Mrs. Cropsey's testimony that
to guard against such an event she had made
a win In bis favor. As between himself and
his wife, things were going from bad to
worse. Discord reigned supreme In the
household. Dr. De Baun's attentions and
presence In the house had become so objection-
able to Dr. Cropsey that he ordered him to
stay away, but despite this Mrs. Cropsey en-
tertained him. The night before the day the
deed was executed De Baun was a caller.
This succeeded an occasion by two or three
days when Dr. Cropsey found bis wife and
De Baun in darlcness In the house, and, ac-
cording to his story, under most peculiar and
suspicions circumstances. As I recall his
testimony, her hair was disarranged, her
face flushed. On the night In question, De
Baun and Mrs. Cropsey returned home about
1 o'clock In the morning; the doctor says
they had been drinking, and that they drank
after they returned, and that he saw them
from upstairs caressing and kissing. True,
or not, he accused them of It and put X>e
Baun out, with orders to stay away, which
were promptly disregarded by De Baun's re-
turn the next evening or the evening after —
to apologize. It Is said. The anger of the
doctor and the scene that night must have
Impressed Mrs. Cropsey that the cUmax, the
point of separation, was near; and Just
how it came about that at this time Mrs.
Cropsey yielded to her husband's longing for
his share of the property the stories of the-
two differ. He says that the next morning at
the breakfast table she made the offer ; while,
on the contrary, she says that he threatened
to leave her, and, fearful that he would, and
relying upon his promise to give up a named
woman and that he would become fully rec-
onciled, she agreed. At any rate, after break-
fast they went to Mr. Conkling's office, a
reputable lawyer in Rutherford, and detailed
to him what was wanted, and after a full ex-
planatlon of the effect and consequences, they
were told to return at 2 o'clock, when the
deed would be ready, and when It was sign-
ed and acknowledged before a Mr. Miller, a
master of this court, and left with Mr. Conk>
Itng for recording. In the meantime. Dr.
Cropsey returned to hia house to fetdi the
title deeds for the draft Later In the day,
Mrs. Cropsey telephoned to the lawyer bo
withhold the deed from record, but on the
following Monday she retracted by a note, di-
recting that It be recorded. I cannot credit
Mrs. Cropsey's story that she signed the deed
under pressure of her husband's threat to
abandon her, and that she signed It against
her will, and that she told the lawyer, Couk-
ling, that what she was about to do was
against her will, and that the deed was not
of her own free will, but was done to please
the doctor. I doubt very much that Mr.
Conkllng, under such drcumstaoces, would
have consented to act as the conduit, and I
am satistied that he fully explained to her
the consequences, and that she acted under-
standlngly and willingly. If there had been
any connivance between him and Dr. Cropsey,
he certainly would not, later on In the at ter^
noon, when Mrs. Cropsey telephoned to him,
have kept the deed from the record. I doubt
not that Dr. Cropsey many times npbralde>d
his wife because of her conduct and threat-
ened to leave home — and be could not be
blamed If he had — but I have ao confidence
in her story that she was moved to sign the
deed by his promise of future continence.
Such threats. If we may believe her, had of-
ten been made before, and with the same de-
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m BE STBUBLE'S ESTATE
177
bIkd, and she always strennoiiBly resisted,
and therefore why capitulate at this time?
As I review the sltaatlon, Mrs. Cropsey
sensed her husband's suspicion of her mis-
conduct with Dr. De Baun. His discovery of
a few nights before had brought on a crisis,
and to appease him, to avoid an open break,
to maintain her status publicly as his wife,
she relinquished. This was her gain. She
was Impelled by motives of self-preservation,
conscious that she was simply restoring to
bUu his own, and discharging the trust he
put In her years before when love and affec-
tion and confidence ruled. Her attempted
repudiation of the deed In the afternoon
shows no more than that she regretted the
step she had taken and does not argue that
her action earlier in the day was unwilling;
for, as I have said, Mrs. Cropsey's Jealousy
of the other woman was without foundation
In fact, and her whim a mere subterfuge.
That her action was deliberately considered
and freely consummated, without haste or
nrgeocy on the part of her husband, is borne
out by the fact that they first consulted
counsd without taking with them their title
deeds, which ordinarily would not have been
the case had her conduct been precipitate
. and coerced ; and, having placed her in dire
fear and deluded her by false promises, as
she says was the case, we would naturally
expect he would supply himself with the
Qieans for a hurried accomplishment.
The complainant has not made out her
case, and the bill will be dismissed.
(87 N. J. Bq. ni)
In re STRUBI^'S ESTATE.
(No. 8680.)
(Prerogative Court of New Jersey. May 1,
1017.)
1. EXECVTOBS AITD AdMINIBTBATOBS 4s>120
(1)— Decedent's Kealtt.
Ordinarily, tJie adminlBtrator has no con-
cern with decedent's realty.
[Ed. Note.— For other cases, see Executors
and Administrators, Cent. Dig. {f 533, 534.]
2. C!ouKTs <S=3l98— Obphanb' Ooubt.
The orpbanti' court cannot assume jurisdic-
tion unless couferred by statutes.
[Ed. Note.— For other cases, see Courts, Cent
Dig. H 469, 471-475, 478.]
8. JuDoicENT $=9^89 — Obphans' Coubt—
tbanscenonco jcbisdicnor— collatebai,
Attack.
If the orphans' court transcends its juris-
dictioD, its acts pass for nothing, and may be
collaterally attacked, and if an administrator
sbould account for rents in the orphans' court,
and should thereafter be required to account
elflewhere by some one dissatisfied by the or-
phans' court's order, certainly if by some one
who did not appear in the orphans court, the
administrator, if the orphans' conrt had no ju-
risdiction, would be obliged to account again.
(Ed. Note. — For other cases, see Judgment,
Cent. Dig. {{ 024, 025.J
4. Courts «=>23 — Juribdictior — Obphans*
COUKT — ACQUIESriSNCE.
Aoquiescence by an administrator and heirs
In the admiDistrator's accounting to the or-
phans' conrt for rents of decedent's realty will
not confer jurisdiction on the orphans' court.
[Ed. Note.— For other cases, see Goorts, Cent.
Dig. §§ 75, 76%, 81.)
6. BXKCUTOBS AND Administbatobs S=>510(4)
— AcconNTiNo— Jdbisdiction — Appeal.
An administrator, who mistakenly accounted
to the orphans' court for rents for decedent's
realty, is not precluded from insisting, on ap-
peal from an order of the orphans' court refus-
ing to strike out exceptions ^ed to his account-
ing, upon his right to account in some tribunal
whose decree will adequately protect him.
[Ed. Note.— For other cases, see Executors
and Administrators, Cent. Dig. i 2244.]
6. BXECOTOBS AND Administbators €=504(7)
— Accounting — Orphans' Court— Liack op
JuBisDicTioN— Motion to Stbikx Excep-
tions.
Where the orphans' court had no jurisdic-
tion to compel an administrator to account for
rents from decedent's realty, motion to strike
out exceptions tiled to the accounting of the ad-
ministrator, on the ground that the exceptions
were based on the administrator's neglect to
account for rents collected by him subsequent to
intestate's death, should have been granted.
lB(d. Note. — For other cases, see Executors
and Administrators, Cent Dig. { 2167.]
Appeal from Orphans' Court, Sussex
County.
In the matter of the estate of August
Struble, deceased. Appeal from an order
of the orphans' court, refusing to strike out
exceptions filed to the administrator's ac-
count on the ground that the exceptions were
based on the administrator's neglect to ac-
count for rents collected by him subsequent
to intestate's death. Order reversed.
Charles F. Kocber, of Newark, for appel-
Unt.
LANE, Vice Ordinary. Th\s Is an appeal
from an order of the Sussex county orphans'
court, refusing to strike out exceptions filed
to an accounting of an administrator upon the
ground that the exceptions were based upon
the neglect of the administrator to account
for rents collected by him subsequent to the
death of the intestate
[1] The orphans' court while admitting,
as it was bound to do, that ordinarily the ad-
ministrator has no concern with real estate,
yet held that, because In fact the adminis-
trator had In previous accounts accounted
for rents, and that there was a tacit agree-
ment between the telrs that he should ac-
count for rents as assets of the estate, the
administrator was estopped from denying
the jurisdiction of the orphans' court to
compel him to account No answer was filed
to the petition of appeal, and this court has
not be^a favored with the views of counsel
for the exceptants.
[l-S] The question is one of jurisdiction
The orphans' court cannot assume jurisdic-
tion unless conferred by statute. If the
court transcend Its jurisdiction, its acts pass
for nothing, and may be collaterally attack-
ed. In re Alexander, 79 N. J. Eq. 226, 81
«s»For otber casn see lams topic and KBT-NUMBER In all Ker-Numbered DIgeaU and IndnM
101 A.— 13
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178
1(11 ATLAHrriO REPORTER
(N.3.
AtL 732. If the administrator should ac-
count in the orphans' court and shoald there-
after be required to account elsewhere by
some one dissatisfied with the order of the
orphans' court, certainly If by some one who
had not appeared In the orphans' court, he
would. If the orphans' court had no Jurisdic-
tion, be obliged to account again. There
may be cases where those Interested in the
rents are persons over whom the orphans'
court has no claim of Jurisdiction. Acquies-
cence will not confer Jurisdiction. Certain-
ly the mistaiccn prior accounting for rente
does not preclude the administrator from
now insisting upon his right to account in
fiome tribunal, the decree of which will ade-
quately protect him.
[S] The orphans' court not having Juris-
diction to comiiel the administrator to ac-
count for the rents, the motion to strilte out
the exceptions should have been granted.
The order of the orphans' court will be
therefore reversed.
(S7 N. J. Eq. 674)
POSSBLT et al. v. D'ESPARD et aL
D-BSPARD ct al. v. FRITZ SCHULZ JUN-
IOR CO.
(No. 43/244.)
(Court of CJhancery of New Jersey. June 21,
1917.)
Corporations ®=>320(13) — Receivers — Ap-
pointment — Grounds — Alie.h Enemy
Stockholders.
The stock of a company for the manufacture
of metal polish, incorporated in New Jersey,
was entirely owne<l by a German corporation.
The board of directors was composed of three
Germans and two Americaus. In the absence in
Germany of two of the German directors, the
two American directors called a meeting in the
office of the remnining German director, oustetl
him from his position as general manager, and
Appointed other officers, thereby attempting to
appropriate to thoir own uses the pmporty of the
company. Held, that, the ousted director being
the only one representing the interests of the
stockholders, there was no bourd competent to
act, and a receiver would be appointed as the
only method by wliich the interests of alien ene-
mies could be protected.
Consolidated suits by Alfred Hugo Posselt
and others against R. Seabury D'Espard
and others and by R. Seabury D'Efepard and
others against the Fritz Schulz Junior Com-
pany for the appointment of a receiver. Ap-
plication granted.
See, also, 100 Att. 893.
Randolph Perltlns, of Jersey (3ity, for R.
Seabury D'Espard and William Howard
Ho<9le. Joseph Kahrs, of Newarlc, for Al-
fred Hugo Posselt. Fritz Junior Aktiea Ges-
selschaft, and Fritz Schulz Junior Co.
LANE, V. C. (orally). I am going to decide
the case of D'Espard v. Fritz Schulz Junior
Company, on application for appointment of
a receiver.
The foUowlDg facts appear: In October,
1905, the company was Incorporated under
the laws of this state for the purpose of
manufacturing a metal polish. The capital
stock was owned wholly by a German cor-
poration. No money was invested except
that invested by the German concern. At
that time the German company had a sales
agreement with a company known as Raimcs
& Ck>., limited, of London. The purpose of
the Incorporation of the Fritz Schulz Junior
Company in this country was to avoid the
necessity of transferring the manufactured
product from Germany here. Tlie; Fritz
Schulz Junior Company entered into a sales
agreement with a company in New York, a
concern incorporated by Raimes & 0>. of
London, Limited, for the purpose of acting in
this country in the same manner as Haimes
& Co., Limited., acted in Europe. The rela-
tions then existing oetween Raimes & Ck>.
and the German corporation were extremely
friendly. The board of directors of the Fritz
Schulz Junior Company consisted, I think, of
three Germans and two rei)resentatlves of
Kaimcs & Co. The directors held one share
of stock each, but were pure dummies.
At the outbreak of the war in 1914 the
rights of the German concern in England
were by act of Parliament forfeited and
were taken over by Raimes & Co. of Loudon,
Limited. When there was prospect of war
between this country and (Jerumny I think
the conclusion is irresistible that the di-
rectors of tlie Fritz Schulz Junior Company,
who were or had been representatives of
Raimes & Co. of New York, conceived the
idea, in view of the absence in Germany of
one or two of the German directors, of con-
summating lawlessly in this country what is
sold to have been permitted by law in Eng-
land. They thought that the time was oppor-
tune to take over the property of the Fritz
Schulz Junior Company In this country, not,
however, for the l)eneflt of the government,
but for the benefit of themselves. They at-
tempted to do this by going to the office of
the company in Lincoln, N. J., where the
general manager, who was the resident di-
rector representing the German concern, then
was, and, finding him there, calling a meet-
ing of the board of directors of the Fritz
Schulz Junior (Company and proceeding to
oust the representative of the German con-
cern as general manager and as an ofiBoer of
the company, and substituting ofllcers of
tlieir own selection. They then directed the
discontinuance of a suit which had been
brought by the Fritz Schulz Junior Com-
pany against Raimes & C!o. in New York for
breach of contract They were defeated in
this in the New York courts, and a judgment
was obtained for something like $8,000. That
Judgment has not yet been collected. The
assets of Raimes & Ck>. I understand have
l>een put In such shape as to make it dif-
ficult of collection. In that situation the
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KITCHELL ▼. CHOSSLET
179
resident representative of the German com-
pany appealed to this court for an Injunction
restraining the two directors representing
Ralmes & Ck>. from acting as directors and
officers, upon the ground that they had com-
mitted a breach of trust. The original bill
prayed for the appointment of a receiver;
subsequently an amended bill was filed, in
which the prayer for the appointment of a
receiver was omitted. I advised the injunc-
tion. The two American directors then filed
a bill, praying for ttie appointment of a re-
ceiver upon the ground ttiat the Fritz Schulz
Junior Company had no board of directors
competent to act, and it is upon that bill
that the present application has been made.
There Is no doubt but that the company at
this time has no proi)er board of directors.
The one director who really represents the
stockholders is the general manager of the
concern who was ousted by the vote of the
two American directors. I think that the
two other German directors are now In Ger-
many, and cannot get her& That leaves the
three directors In this country, one, who
really represents stockholders, and two who
really represent antagonistic interests. Be-
cause of the apparent legality on its face of
the meeting of the directors which ousted the
representative of the German company from
control, it is necessary that this court should
intervene for the protection of the interests
of the company. The effect of my injunc-
tion will be practically to permit the con-
cern to be mn by one director, and he not
a citizen of this country. I am unwilling to
permit such a situation to exist The ap-
pointment of a receiver is resisted by the rep-
resentatives of the German interests. I think
tliat it is not only In the Interest of the Ger-
man company that a receiver should b& ap-
pointed, but that it is absolutely necessary for
the conservation of the property of the com-
pany. It has been suggested that they would
like to take their chances. They have the ut-
most confidence that If I enjoin the directors
from acting, the one German (I think it Is now
said he is Austrian) director here would be
able to continue business in the same manner
as it has been continued. I can see that if
I permit this it will only lead to endless liti-
gation in other courts, and that it is really
contrary to the interest of the German stock-
holders. Nor do I think that this court is
justified, where a situation exists such as
this in which the aid of this court must be
obtained in order to protect the Interests of
alien enemies, and in which this court has
undoubted Jurisdiction to appoint a receiver,
in granting the relief to the alien enemies
withont also going further and seeing to it
that the effect of the relief granted will not
be to permit the transfer of property from
this country to an alien enemy.
I will appoint the present general man-
ager as a receiver under a bond of $25,000,
and will associate with him as receiver Ed-
win Maxson, of Summit, under a bond of $25,-
000. The active management of the com-
pany until further orders will be in charge
of the first receiver mentioned. The duty of
Mr. Maxson will be supervisory.
I also on my own motion will make an
order consolidating these two causes. It Is
understood that the appointment of a receiver
is not an appointment under the statute; it
is a pure equity receivership, and will be con-
tinued only so long as the company shall be
without a board of directors competent to
act, or so long as the exigencies of the occa-
sion require. The business will be directed
to be carried on. Debts as they accrue will
be paid. The business of the company is
not to be Interfered with In the slightest de-
gree.
(W N. J. lAW. 574)
KITCHELL T. CROeSLET et aL (No. 143.>
(Court of Errors and Appeals of New Jersey.
June 18. 1917.)
(SyUahut hv the Court.)
1. Damages ®=>121 — ^Action fob ARCHrrEcr's
Services — Amount of Recoveby.
Plaintiff, an architect, was employed to make
plans and specifications for a new building. A
dispute having arisen respecting the amount of
his compensation, the parties agreed in writing
that he should be paid $1,500 for said plans and
specifications and supeiTising the construction
of the building, $750 of which was payable upon
the completion of. the plans and specifications,
$375 when the building was half completed, and
the remainder upon completion. The $750 was
paid upon the signing of the agreement, but the
defendants never proceeded to the construction
of the building. Held, in a suit by the architect
to recover for his services, that tlie written con-
tract was controUiug as to the rate of compen-
sation, and that the amount of same was to be
determined according to the rule laid down in
Kehoe v. Kutherford, 56 N. J. Law, 23, 27 Atl.
(Kd. Note. — For other cases, see Damages.
Cfent. Dig. iJ 306-308.]
2. Case Distinguisiieo.
Stephen v. Soap Co., 75 N. J. Law, 648, 6&
AtL 69, distinguished.
Appeal from Circuit Court, Essex County.
Action by Bruce P. KItcfaell against James
Ew Crossley and others. Judgment for plain-
tiff and defendants appeal. Seversed, to-
the end that a venire de novo issue.
Raymond, Mountain. Van Blarcom & March,
of Newark, for appellants. Church ft Harri-
son, of Newark, for appellee.
PARKER, J. The plaintiff's claim was for
the "reasonable value" of his services as
architect in drawing plans and spedflcatlons
and receiving bids for a proposed new build-
ing which was never built according to such
plans. Defendants undertook to meet this by
setting up a written agreement signed by
plaintiff and by James B. Crossley as defend-
ants' agent whereby plaintiff stipulated ta
draw the plans, etc., and sui)ervl8e the erec-
$=3For other ca^cs f6e nunt topic and KBY-NIIMBBR In all Key-Numbered Digests and Indexu
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180
101 ATIiANTIO BEPOBTBR
(N.J.
tlon of the building for $1,500, of whldi $750
was to be payable on completion of plans,
$375 when building should be half completed,
and the remainder on completion. Plalutlff
atatacked this as havlqg been "abandoned,"
and claimed for what he had done at the
architects' customary rate, as testified, of
three-fifths of 6 per cent, on the estimated cost
of the building, and had a verdict of $2,757.26
besides the $750 which had been paid to him
at the time of executing the written agree-
ment, or about $3,500 in all. He did nothing
after receiving bids, though he was ready
to perform all needed services; the deifend-
ants having refused to go on according to his
plana and having employed another architect.
The dedslcm turns upon the rule to be ap-
plied touching the amount of recovery.
When plaintiff was first employed there
was no specific agreement or understanding
as to the rate of his compensation, and after
the plans were substantially ready he sent
Mr. Orossley a bill for $2,520 for services up
to that point. This and later communications
threatening suit brought Crossley to Iiis office,
and there was some disputing about the
amount of compensation, which resulted in the
preparation, by plaintiff, of the following
paper in the form of a letter or proposal on
plalntlfTs letter head, and signed by him.
Both parties agree that It was accepted by
Crossley, and it is plain that Ms signature
thereto was intended as such acceptance.
"Newark, N. J. October 27, 1914.
"Mr. J. E. Crossley, Newark, N. J.— Dear Sir:
I propose to make the plans, specifications and
supervise the works on the new four-story and
basement building on the comer of Market and
Halsey street, Newark, N. J., for the Peddle es-
tate, for the sum of One Thonsaod Five Hundred
($1,500.00) dollars, Seven Hundred and Fifty
($750.00) on completion of plans. Three Hun-
dred and Seventy-Five, $375.00, when building is
half erected. Balance as work proercsses.
"Yours truly, Bruce P. KitcheU.
"J. E. Crossley."
At the time this paper was signed by the
plaintiff on his own part and by Crossley as
representing the defendants, the plans and
specifications had not been sent out to pro-
spective bidders. The case shows that the
$750 stipulated for was paid at the time the
agreement was made or almost immediately
thereafter, and that plaintiff was instructed
to get the bids. He did so, and according to
his testimony, Crossley never came to his
office to consider the bids, and did nothing
further in the matter. As a result, the plain-
tiff was not only not required to complete the
work he had stipulated to do by this agree-
ment, but was actually prevented from com-
pleting it by the action of the defendants.
At the trial It was claimed by the defend-
ants that this agreement wns a compromise
and settlement of plaintiff's claim for what he
had actually done and a written agreement
with respect to what he should be paid there-
for, and that it was binding ui>on the plain-
tiff. The plaiutifTs claim was that by reason
of the fttllnre of the defendants to go on
with the building, be was not bound by the
agreement either for what he had done or
vrtth respect to what he was to do. The
trial Judge left it to the Jury to say: First,
whether the written agreem^it was a settle-
ment for the work that had been done by the
architect up to that time; whether (to quote
hla language) when they signed that agree-
ment It was with an understanding between
the architect and Mr. Crossley that what work
had been done up to that time was included in
the sum of $1,500 which he was to receive,
as well as the services which were afterwards
to be performed by| him, as the architect,
in the construction of this building. He went
on to say that if it was, a certain rale of law
applied, and then stated the rule as laid
down In Kehoe v. Kutherford, B6 N. J. I^w,
23, 27 AU. 912, and Wilson v. Borden, 68
N. J. Law, 627, M Atl. 815, and under that
rule limited the plalntlfTs recovery to three-
flfths of the total price of $1,500, stating
that no claim, as be understood It, was made
for profit on the work that still remained
to be done by the plaintiff, and that there was
no evidence of what the profit would be. He
then further charged as follows:
"Now, gentlemen, on the other view of the
case, if you should find that the agreement a)
October 27th was not in settlement of all Ihf
work that bad been done prior to that time,
then the architect, Mr. KitcheU, would be enti-
tled to recover for bis services whatever they
were worth up to that tinie, less the $750 which
he received at that time."
This was followed by instructions as to
the details of the amount recoverable under
those circtmistauces. Defendants' counsel
requested a charge laying down the rule of
Kehoe v. Butherford in the language of that
case, which was refused, and an exception
noted, both to this refusal and to the por-
tion of the charge permitting a recovery for
the value of the services as above set forth.
[f] We consider that there was error in
the matters excepted to. There was no ques-
tion but that the written agreement was
made because of a dispute between the par-
ties and for the purpose of settling that dis-
pute. At that time, plaintiff had rendered
some services for which he was perhais then
entitled to compensation, but at an amount
not agreed upon, and therefore uncertain.
It was evidently the desire of both parties
that the amount that be should he entitled
to receive should be fixed and settled be-
tween them, with a view of avoiding further
controversy, both as to services already ren-
dered and as to such as the parties contem-
plated should be rendered. If this agree-
ment had been made before the plaintiff
performed any services, and after he had fin-
ished the plans and specifications the defend-
ants had refused to go further, we think
there can be no question but that the rule of
Kehoe V. Rutherford would apply, and the
damages recoverable on a breach, whereby
plaintiff was prevented from performins in
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H.J.)
STATE y. FLETCBKR
181
full, woold be limited by that rule as ap-
plied to the contract price. The fact that
the agreement was made after some work
had been done and a dispute had arisen
makes no difference in the result, except
that the additional element Is Introduced
of a compromise and settlement of the dis-
pute, the legal consideration of which can-
not be successfully challenged. McCoy v.
MUbury, 87 N. J. Law, 697. 94 AU. 621.
[J] Respondent relies upon the case of Ste-
phen V. Camden & Philadelphia Soap Co.,
T5 N. J. Law, 648, 68 Atl. 69, as authority
for the claim that the contract now under
consideration was abandoned, and that the
role of reasonable value for the services
should be applied. There Is no doubt that
the plaintiff should have the reasonable val-
ue of his services, but the question Is, How
Is that reasonable value to be ascertained?
Is it to be ascertained by Inquiry with
respect to the usual and customary rate of
compensation. In the absence of special con-
tract, or are we to look to the contract Itself
aa determinative of the rate of compensa-
tion? This question Is not answered by the
case cited. An examination of that decision
fails to disclose how much the plaintiff
recovered, or on what basis. The errors
assigned were that the court below should
have construed the contract so as to relieve
the defendant from liability, and erred in
refusing to grant a nonsuit, or, If not, then
to direct a verdict In Its favor. These were
the only two questions considered. In de-
riding ftera the court had occasion to quote
from authorities which, In laying down the
rule tkat plaintiff was entitled to recover
something for his services, also discussed
the question whether the price fixed by the
contract. If any, should be made the conclu-
sive test of the value of the services ren-
dered, or the real value of the services,
though in excess of the contract price; but
this court did not decide the question in that
case, because it was not raised. The opin-
ion concluded, however, by dtlng the cases
of Kehoe v. Rutherford, supra, and Ryan v.
Remmey, 57 N. 3. Law, 474, 31 Atl. 766, In
both of which the amount of recovery for
work done under an uncompleted contract,
terminnted by the wrongful act of the de-
fendant, was predicated upon the contract
price.
We are nnable to see that the circinn-
stances of this case prevent the application
of the mie laid down In Kehoe v. Ruther-
ford, and Wilson v. Borden, or that there
was any question for the jury as to whether
the written contract between the parties
applied. There was no fraud in its making,
as the court Itself expressly charged; Its
consideration was adequate, and, there being
nothing to vitiate it, It stood as the agree-
ment of the parties. It was therefore error
for the trial court to jjermlt the jury to pass
on the question whether this contract was
controlling, and for this error the Judg-
ment must be reversed, to the end that a
venire de novo issue.
(90 N. J. Law, 722)
STATE V. FLETCHER. (No. 5.)
(Court of Errors and Appeals of New Jersey.
June 18, 1917.)
1. Witnesses <S=»255(2)— Right to Refresh
Recollection— HoBFiTAi. Histobt.
It was proper to allow a medical witness
to use his hospital history to refresh his recol-
lection, although it was dictated by him aod not
trauscritied in his presence, where he identified
it as a transcript of the notes he dictated at
the time, and no more proof waa necessary to
justify its use. "
[Ed. Note.— Fw other cases, see Witnesses,
Cent. Dig. S 876.]
2. Witnesses «=>277(3>— Cbosb-Examination
OF Accused— Facts SEpwiNo Pbobabiutt
or Guilt.
Where defendant, accused of criminal abor-
tion, testified that her patient told her she had
come from a doctor in New York, cross-exami-
nation as to defendant's acquaintance with that
doctor was permissible, since her knowledge of
the doctor might throw light npon the probabil-
ity that she would perform an operation on a
girl who claimed to have l>een sent by such doc-
tor.
[Ed. Note. — For other cases, see Witnesses,
Cent. Dig. § 981.]
3. Cbiuinal Law @=>404(3) — Admission of
Evidence— Abortion — Illustration.
In a prosecution for abortion, it was per-
missible to use the speculum offered in evidence
to illustrate the kind of instrument which the
girl said the defendant had used.
(Ed. Notew— For other cases, see Criminal
Law, Cent Dig. §§ 873, 891, 893, 1457.]
4. Cbivinal Law <S=s>1172(7)— Appeal— Habm-
LE88 BREOB— INSTBUCTIONS FaVOBABLE TO
Defendant.
Defendant, accused of criminal abortion,
could not assign as error the giving of an in-
struction stating that the fact that the girl had
had a previous miscarriage or visited some one
else than defendant was immaterial in determin-
ing the defendant's guilt, since it was intended
as a warning in favor of defendant that the
jury was not to convict defendant because some
one ought to be punished.
[Eid. Note.— For other cases, see Criminal
Law, Cent. Dig. { 8160.]
6. Witnesses <3='277(3)—Cbos8- Examination
OF Accused— Pbobabilitt of Defendant's
Testmont.
Where defendant, accused of criminal abor-
tion, stated she had refused to perform the op-
eration and had offered to do nothing to al-
leviate the girl's pain, it was permissible to
Hsk defendant if she could not have given the
girl something to alleviate the pain ; such ques-
tion bearing upon the probability of defendant's
testimony.
['Bid. Note. — For other cases,' see Witnesses,
Cent Dig. | 961.]
Appeal from Supreme Court.
Jane Fletcher was convicted of crime, and
appeals. Affirmed.
On appeal from the Supreme Ck>urt, in
which the following per curiam was filed.
[I] "We think it was proper to allow Dr. Ill
to use bis hospital history to refresh his recol-
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101 ATLANTIC RBPOUTER
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lecdon. Althongli it was dictated by him to
another, and not transcribed in his presence, he
identified it as a transcription of the notes he
dictated at the time. We think he might well
do 80 ; and no more proof was necessary to jus-
tify its use.
"The evidence warranted the statement of the
prosecutor that Dr. Ballentine became convinced
that a criminal operation had been performed.
The statement that the doctor made an examina-
tion perhaps was inaccurate, dependent on the
sense in which the word 'examination' was used;
but it was barmleea.
[2] "The cross-examination of the defendant
as to her acquaintance with Dr. Muttart was
permissible. She testified on direct examina-
tion that her patient told her she had come from
a doctor in New York. On cross-examination
she said the girl gave her the name of Dr.
Muttart. Her knowledge of the doctor might
throw lig^t on the probability that she would
perform an abortion on a gin who claimed to
have been sent by Dr. Muttart."
[3] "It was permissible to use the speculum
offered in evidence to illustrate the kind of an
instrument which the girl said the defendant
had used."
[4] "The defendant was not injured by the
charge that 'the fact that this young woman
bad a previous miscarriage or visited some one
else is not finally to affect your minds in deter-
mining this defendant's guilt If she had 99
other operations and somebody else had gone
free, that is not the question.' We infer that
the judge was trying to warn the jury not to
convict the defendant because they thought some
one ought to be punished. It seems to be intend-
ed as a warning in favor of the defendant."
[5] "We think it was permissible to ssk tlie
defendant if she couldn't give the girl somethinjg
to alleviate the pain. The defendant had testi-
fied that the girl had come to her suffering pains
of pregnancy and wanting her to perform an
abortion; that she had refused to do so, and
offered to do nothing to alleviate the pain. The
questions bore upon tlie probability of defend-
ant's testimony, since the prosecutor niisht well
argue that the natural instinct of humanity
would lead the defendant to alleviate the pains
if she was unwilling to perform the ahortion.
"Part of the prosecutor's examination of the
complaining witness was leading, but we cannot
say there was any legal error or abuse of discre-
tion.
"The judgment must be affirmed."
HamlU & Cain, of Jersey City, for appel-
lant Robert S. Hudspeth, Prosecutor of
Picas, of Jersey City, for tbe State.
PER CURIAM. The judgment under re-
view will be affirmed for the reasons set
forth in the (pinion of the Supreme Court
(90 N. J. Law, 176)
ROUNSAVILI^E v. CENTRAL R. OF NEW
JERSEY. (No. 81.)
(Court of Errors and Appeals of New Jersey.
June 18, 1917.)
(Byllabut by the Court.)
Master and Sebvant 4=3365— Wobrsien's
Compensation Act— Injury in Intebstate
Commerce— Right to Compensation.
The federal Employers' Liability Act (Act
April 22, 1908, c. 149. 35 Stat. 65 [U. S. Comp.
St. 1916, §§ 8G57-8665]), wiUiin its scope, viz.
interstate commerce, deals with the same sub-
ject that Is dealt with by tbe New Jersey Work-
men's Compensation Act (Laws 1911, p. 134)
under which tiie duty of an employer to make
compensation to an employ^ for injuries arising
out of the employment may exist independently
of the negligence of the employer ; whereas the
federal statute makes such duty to depend upon
such negligence and excludes the e^tence of
such duty in the absence of negligence. "Bie
federal act being thua comprehensive, both of
those cases in which it excludes liability and of
those in which it imposes it ousts the courts
of common pleas of this state of jurisdiction
under the New Jersey Workmen's Compensation
Act to award the compensation to be paid by a
carrier to its employ^ for injuries received by
the latter while both were engaged in interstate
commerce.
Appeal from Supreme Court
Proceedings under the Workmen's Oompen-
sation Act by George A. Rounsaville, to ot^■
tain compensation for personal Injuries, op-
posed by the Central Railroad of New Jersey,
employer. From a Judgment of the Supreme
Court (87 N. J. Law, 371, 94 Ati. 392), on cer-
tiorari to a judgment of the common pleas
denying compensation, reversing the judg-
ment and remanding the case, tbe employer
appeals. Judgment of the Supreme Court ^<^-
versed, and judgment of the common pleas
affirmed.
Charles E. Miller, of Jersey (Tlty, for ap-
pellant Elinor R. Gebhardt of Jersey
City, for appellee.
GARRISON, J. The respondent, a brake-
man on the appellant's train under a con-
tract made In this state, was injured In the
course of bis employment in Pennsylvania,
while appellant and he were engaged In in-
terstate commerce. His petition to tbe com-
mon pleas of Warren county for compensa-
tion under the New Jersey Workmen's Oom-
pensation Act was dismissed by Judge Rose-
berry upon the ground that the enactment by
Congress of the federal Ehnployers' Liability
Act prevented the application of state legLs-
lation to an injury received In the coarse of
interstate commerce. Upon appeal the Su-
preme Court held that this was not so, and
the Judgment of tbe pleas was reversed.
Rounsaville t. C!aitral Railroad Ckk, 87 N.
J. Law, 371, 94 Ati. 892. From the Judgmoit
of the Supreme Court this appeal was taken
and argued before this court at the November
term, 1916.
The decision of this appeal was held await-
ing the decision by the Supr^ne Court of the
United States of the case of Erie Railroad
Company v. Wlnfteld, wbldi involved precise-
ly the questions.
That decision has now been promulgated
in an opinion filed by Mr. Justice Van Devan-
ter, 244 U. 8. 170, 37 Snp. Ct 656, 61 U £kl.
1057, in which it is held that:
"The federal act (Employers' Liability Act>
proceeds upon the principle which regards neg-
ligence as the basis of tlie duty to make cona-
pnnsation, and excludes tbe existence of such a
duty in the absence of negligence, and that Con-
gress intended the act to be as comprehensive of
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183
those instances in which It excludes liability as
of those in whicb liability is imposed."
A further question decided was whether or
not under the New Jersey Workmen's CJom-
pensatlon Act the Interstate carrier might be-
come bound contractually to make compensa-
tion to an employ^, even though such In-
Jury came within the federal act as above
-construed. Upon this question Mr. Justice
Van Devanter says:
"It is beyond the power of any state to inter-
fere with the operation of that act (federal Em-
ployers' Act), either by patting tbe carriers and
their employes" in interstate commerce "to an
election between its provisions and those of a
state statute, or by imputing such an election
to them by means of a statutory presumption."
This decision by the highest federal court
as to the construction of a federal statute Is
binding upon this court, and leads to tbe
reversal of the judgment brought up by this
appeal and the affirmance of the judgment of
the common pleas of Warren county.
<i)0 N. J. Law, «S)
ROGERS V. WARRINGTON. (No. 70.)
iConrt of Errors and Appeals of New Jersey.
June 18, 191T.)
(SyllahuM ij/ the Court.)
1. Highways ®=>S0 — Abuttino Owneb —
Fee.
Lends in New Jersey over which hiehways
have been laid, tbe fee of the land is in the
abutting owner.
[Ed. Note.— For other cases, see Highways,
<^t Dig. {{ 288. 280.]
2. Ejectment <E=>9(6)— Title— Feb in Hiqh-
WAI.
The owner of tbe fee, for the soil in the
highway, may maintain an action of ejectment
against any pei-son wrongfully taking or claim-
ing exclusive possession of the same.
[Ed. Note. — For other cases, see Ejectment,
Cent Dig. $ 2&]
3. Pleadino «=>127(1)— Plea of Not GviXJTt
—Admission.
By tho statate (Comp. St 1910, vol. 2, p.
2060, par. 13), in an action of ejectment for
land occupied by the defendant, a plea of not
guilty admits such possession as excludes tbe
plaintiff.
[Ed. Note.— For other cases, see Pleading,
Cent Dig. K 261-268.]
Appeal from Supreme Coart
Action In ejectment by Jcrusha B. Rogers
against Susan N. Warrington. Judgment
for plaintiff, and defendant appeals. Af-
firmed.
Kalghn & Wolverton, of Camden, for ap-
pellant Q. M. HUlman, of Mount Holly, for
appellee.
BI4AOK, J. This was an action in eject-
ment. Tbe record shows, however, that the
.plaintUI was tbe owner of a lot of land, upon
which ber dwelling house was erected,
situate on tbe south side of Main street, at
tbe forks of the road known as Perkins Cor-
ner in Moorestown, Chester township. Bur-
lington county, N. J. The suit was brougbt to
recover possession of the land, In tbe public
highway, In front of the plaintiffs lot
[3] The defendant erected a public drink-
ing fountain or watering trough, in the high-
way, tie fee of which was owned by the
plaintiff. Tbe suit was brougbt to recover
that portion of the highway, thus appropriat-
ed by tbe defendant, by tbe erection of the
drinking fountain or watering trough. Tbe
answer defends the action, as to a part of
tbe premises claimed In the complaint, viz.
tbe portion thereof, within tbe lines of
Main street, occupied by tbe public drinking
fountain, erected by consent of tbe municipal
authorities, as to which part the defendant
denies the truth of tbe matters contained in
tbe complaint. By force of the statute, Comp.
Stat of N. J. vol. 2, p. 2056, par. 13, the
plea for the purpose of this action is an ad-
mission that the defendant was in possession
of the premises for which she defends.
French v. Robb, 67 N. J. Law, 260, 51 Atl.
509, 57 U R. A 906, 91 Am. St Rep. 433;
Jacobson v. Hayday, 83 N. J. Law, 537, 83
Atl. 902.
[1] The case was tried by tbe court at tbe
circuit, without a Jury, resulting in a Judg-
ment for the plaintiff; the damages being
assessed at six cents. Tbe plaintiff's title
to tbe fee of tbe premises in question being
conceded, tbe plea admitting tbe defendant
was in possession, tbe ruling of the trial
court was not error in giving judgment for
the plaintiff.
It is tbe accepted law of this state that
lands on which streets and highways have
been laid, tbe fee is in tbe abutting owner.
Hoboken Lend & Improvement Co. v. Mayor,
etc., of Hoboken, 86 N. J. Law, 640; Starr
V. Camden, etc., R. Co., 24 N. J. Law, 592.
[2] It also has long be«i the settled law of
this court that tbe owner of tbe soil in such
cases may maintain an action of ejectment
against any person wrongfully taking or
claiming exclusive possession of the same.
All tbe cases are in harmony on this point
Wright V. Carter, 27 N. J. Law, 76 ; Hoboken
Land & Improvement Co. v. Mayor, etc., of
Hoboken, 36 N. J. Law, 540; French t. Robb,
67 N. J. Law, 260, 61 AU. 509, 57 I* R. A.
9^, 91 Am. St Rep. 433; Bork v. United
New Jersey, etc., Co., 70 N. J. Law, 268, 67
Atl. 412, 64 L. R. A. 836, 103 Am. St Rep.
808, 1 Ann. Cas. 861 : Moore v. Camden, etc..
Ry. Co., 73 N. J. Law, 599, 04 Atl. 116;
Johanson v. Atlantic OUy. R. Co., 73 N. J.
Lew, 767, 64 Atl. 1061.
Whether tbe drinking fountain or watering
trough Is an additional servitude on t^ land
to that of tbe highway is not before ns for
consideration on this record. We therefore
express no opinion on that point
Finding no error in the record, the Judg-
ment of tbe Supreme Court is therefore af-
firmed, with costa
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101 ATLANTIC REPORTER
(N.J.
(90 N. J. Law, e96)
KOESTIGSBBRGER v. MIAU (No. 75.)
(C!ourt ot Brron and Appeals of New Jersey.
June 18, 1917.)
1. Plbadino ^=9366 — Amended PiXADiNa^
Notice of Pimno— Presumption.
Where 20 days after the filing of an amend-
ed complaint defendant moved to strike ont cer-
tain portions thereof, she was presumed to hare
had notice that it was filed,
[B)d. Note — For other cases, see Pleading,
Cent. Dig. { llC]
2. Pleading 9=9365(3)— Motion to Stbikh—
Abandonment.
Defendant's failure to enter a rale in ac-
cordance with a decision of the court in her fa-
vor on a motion to strike out certain parts of
the amended complaint was an abandonment of
her motion.
[£)d. Note. — For other cases, see Pleading,
Cent. Dig. §§ 1108, 116».]
3. Judoment <S=>106 — Default — Riqbt to
Enter.
Where defendant abandoned her motion to
strike out certain parts of the amended com-
plaint and failed to plead to such complaint
within the time specified by the court's order,
Elaiutiff was entitled to take judgment against
er by default
[Bid. Note. — For other cases, see Judgment,
Cent. Dig. { 201.]
4. Judgment «=»145(2)— Default— Riobt to
Enter.
That defendant's failure to plead to the
amended complaint as required by law was due
to neglect of her attorney did not entitle her to
have the default judgment opened, where she
did not show that she had a meritorious de-
fense.
[Eli. Note. — For other cases, see Judgment,
Cent Dig. U 271, 293.]
Appeal from Supreme Court.
Action by Ferdinand H. Koenlgsberger
against Kate A. Mlal, Individually and as
executrix of the last will and testament of
Henry H. Hanklns, deceased, bnllder and
owner. From judgment for plaintiff, defend-
ant appeals. Affirmed.
The following Is the per curiam opinion
of the Supreme Court:
"This is an appeal from a judgment entered
by default against the defendant in an action
brought by the plaintiff to recover for architect's
fees alleged to be due him on a building opera-
tion. Originally the suit was brought against
Kate A. Miol individually, and Lieonidas Ik
Mial as executor of Henry U. Hanking, deceas-
ed. The complaint was filed in September,
1913. Subsequently, and in March, 1914, ap-
plication was made on behalf of the defendants
to compel the amendment of the complaint by
striking therefrom the name of Leonidas A.
Mial, and substituting that of Kate A. Mial as
executrix. The rule directing the amendment
required a copy thereof to be served upon Kate
Mial within 20 days after its date, and allow-
ed her 20 days after such service within which
to file, her answer. The date of this rule was
March 30, 1914. The amended complaint was
filed on the 15th day of April of that year.
On the 15th of May following the defendant
moved to strike out certain portions of the
amended complaint for reasons set forth in a
notice of the motion which was served upon the
plaintiff's attorney on the 5th day of that month.
The court took time to consider the motion, and
on the 19th day of Jane filed a memorandum,
stating that the defendant was entitled to have
struck from the complaint the provisions refer-
red to in her notice of motion. No rule was
entered pursuant to this finding of the court,
nnd on the 17th of November, 1914, the plain-
tiff entered judgment by default. The de-
fendant Kate Mial, thereupon applied for and
obtained a rule to show cause why the judg-
ment should not be opened as having been pre-
maturely and improvidently entered. Testimony
was taken in support of, and in opposition to,
the making of this rule absolute, and in Janu-
ary, 1916, the matter coming on to be heard
before the circuit court, the rule to show cause
was discharged. The defendant thereupon ap-
pealed to this court"
[1-3] "We think the judgment under review
should be affirmed. On its face it is regular.
Tlie defendant is presumed to have had notice
ot the filing of the amended complaint, because
within 20 days after its filing she moved to
strike out certain portions thereof. Her failure
to enter a rule in accordance with the decision
of the circuit court in her favor on the motion
to strike out certain parts of the amended com-
plaint was, we think, an abandonment of the
motion. Having abandoned the motion, and
having failed to plead to the amended complaint
within the time specified by the order of the
court, the plaintiff was entitled to take judgment
aprainst her by default According to the theory
of the defense, a suit might be perpetually stay-
ed by a defendant by following the course pur-
sued in the present case by Kate A. Mial, the
appeUant. Without stopping to consider wheth-
er, on an appeal from the judgment now under
review, the appellant can attack the action of
the lower court in discharging the rule to show
cause, we are of opinion that the action com-
plained of was proper."
[4] "If it be true, as counsel suggests, that
the failure of the defendant to pursue her de-
fense as required by law was due to the neglect
of her attorney, that fact alone did not entitle
her to the relief she sought under the rule. She
was required, in addition, to show that she had
a meritorious defense, and this the circuit court
considered she had failed to do. Our examina-
tion of the testimcmy submitted under the rule
to show cause leads us to the same conclusion.
"The judgment under review will be affirmed."
Samuel A. Besson, of Hoboken, for appel-
lant Runyon & Autoireltli, of Jersey City,
for appellee.
PER CURIAM. The judgment under re-
view will be affirmed for the reasons set
forth in the opinion of the Supreme Court.
(90 N. J. I4tw, tss)
POX T. FORTY-FOUR CIGAR CO.
(No. 30.)
(CJourt of Errors and Appeals ot New Jersey.
June 18, 1917.)
(Byllah»$ bt th0 CourtJ
1. Witnesbks <©=>321, 880(5) — Impeaobiitq
Own Witness— Contbadictino Witness.
While a party cannot impeach a witness
called by him, which is done by showing by gen-
eral evidence that he is unworthy of belief, he
may nevertheless show that such witness has
made other and different statements from those
to which he has testified. That is contradicting,
not impeaching, the witness.
[£V]. Note.— For other cases, see Witnesses,
Cent. Dig. §{ 1094, 1099, 1100, 1214, 1219.]
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185
2 WlTIIEBSBS 4=>10&(4)— PBITnAaS— AXTOK-
vtt.
A commtmiciitlon made by a party to an at-
torney after the tatter's employment has termi-
nated is not privileged, and the attorney may be
compelled to disclose the information ao ac-
quired.
lEd. Note.— For other caaes, see Witnesses,
Cent. Dig. K 766. 767.]
8. Witnesses ®=204(2!)— Pbivileqb— Attob-
HEY.
When a party writes a letter to a member of
the bar, whose relation as counsel to the former
had cea^, if, in fact, there ever had been such
relationship between them, which letter contain-
ed statements tending to prove a fact concern-
ing the qaeation of master and servant, vbicb
was pertinent to the issue, the letter is not a
privileged communication, and is competent evi-
dence against the party writing it.
[Ed. Note. — For other cases, see Witnesses,
Cent. Dig. § 792.]
AM)eal from Supreme Court.
Action by Vorls Fox against the Forty-
Foar Cigar Company. Judgment for defend-
ant on a directed verdict, and plaintiff ap-
peals. Beversed to the end that a venire de
novo may (be awarded.
Bourgeois & Coulomb, of Atlantic City, for
appeUaut Clarence U. Cole, of Atlantic City,
for appellee.
WALKER, Ch. This waa an action at law
for damages growing out of an accident to
the plaintiff by collision with an automo-
bile while he and another were riding on
a motorcycle along a public road in At-
lantic county. On August 16, 1915, the plain-
tiff and his companion were traveling along
the road in the motorcycle, when an auto-
mobile driven by a director and officer of the
defendant company approached, and a colli-
sion occurred, which demolished the motor-
cycle and Injured the plaintiff. One defense
was that at the time of the accident the car
was not being used for the purposes of the
defendant company, and therefore the com-
pany was not liable to the plaintiff.
During the progress of the trial, for the
purpose of showing that the car was being
used for the puriwses of the company, and
for the purpose of showing an Inconsistent
statement made by Max Lipschutz, the as-
sistant treasurer, certain letters to W. Frank
Sooy, Esq., a member of the bar, were of-
fered and admitted In evidence. After the
testimony had been concluded, the letters
were excluded by order of the court, to which
ao exception was noted. The Judge then di-
rected a vendlct In favor of the defendant,
to which exception was taken, and the plain-
tiff appealed.
The defendant company In Its answer ad-
mitted that on the day of the accident It was
the registered owner of a certain touring car
which was being driven by Max Ivlpschutz,
who was a stockholder, director and ctfttcer
of the company, but denied that the car was
being driven by him as such stockholder, of-
ficer, director, agent, or employ^.
Max I,li)sdintz was called by the plaintiff
and testified that he was assistant treasurer
of the defendant company, whose president
was his father, Benjamin Ldpschutz, and
whose assistant secretary was George M.
Lex ; that the defendant did quite extensive
advertising through New Jersey by signs. He
testified to the genuineness of a letter dated
December 15, 1015, as to his own and Lex's
signatures thereon. Asked what was the
object of his tour through South Jersey on
the day In question, he answered that he had
promised his sister, who was sick, a little
ride and outing for her friends, and It was
for that purpose alone that he took them out
that afternoon. Asked whether at that time
he was engaged on the business of the com-
pany, he answered that he always lo<Aed
around (meaning for and at the signs), but
tibat the idea of taking them out that day
was for pleasure alone. He could not re-
member whether he stated to the (^oers of
the company that he was going out on the
business of the company that day. Shown
the letter again, and asked to tell whether he
Informed the secretary that he was out on
business of the company that day, be first
answered "No," and then "Yes." He after-
wards said that he had not gone oat to In-
spect the signs on that day.
W. Frank Sooy, E^., counselor at law, was
called by the plaintiff, and testified he was
one of the firm of Bolte, Sooy & Gill; that
he met Mr. iJpschutz, Sr., and Mr. lApschutz,
Jr., and talked the situation over with them ;
that he was notified by the defendant com-
pany that he was representing Max Llp-
schutz ; that he was never formally employed
by the company; that be handed the letter
in question to Mr. Stem, who was associated
with Messrs. Bourge<ds & Coulmnb, attorneys
for the plaintiff, to carry out an agreement he
had with Mr. Stem as to the form of answer
that would be filed by the company, leaving
out, as defendants. Max lApschntz and his
father.
Benjamin LIpschutz testified that he In-
structed his son. Max, on the day In question
not to take his sister out, but to attend to
certain business; that the car had been own-
ed by the company for a couple of years, and
was bought to entertain customers and for
other business; that It was used by his son,
by Mr. Funk (secretary of the company), and
Mr. Lex; that It was primarily bought for
the purposes of the company and the benetit
and convenience of its officers, and also for
the purpose of taking out his sick daughter.
In view of the testimony of the Llpschntzea,
father and son, to the effect that the young
man was not out on the business of the com-
pany that day. It became highly important to
the plalntlh: to have In evidence the letter
from the assistant secretary to Mr. Sooy, in
which It is stated, inter alia, that Max Llp-
sdiutz would testify at the trial that he was
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101 ATLANTIC REPORTEB
OX. 3,
driving the car, oomUnlng both bnslness and
pleasure. The following Is a copy of the let-
ter:
"Benjamin Lipschutz, President and Treasur-
er. Mahlon A. Funk, Sect'y and Sale* Mana-
ger. Max Lipgchatz. Assistant Treasurer.
Geortre M. Lex, Aasistant Secretary. Forty-
Four Cigar Company, Incorporated. Lipschutz'a
44 Cigars. Adlon Cigars. Business Establish-
ed by Benjamin Lipschuti 1893. Main Office
and Factory, N. B. Cor. 11th and Wharton
Streets, Philadelphia. P. O. Address, Southward
Station. Address all communications to com-
pany. December 15, 1915. Bolte, Sooy & Gill,
21 Ijaw Building, Atlantic City, N. J. Atten-
tion of W. Frank Sooy. Esq. Gentlemen: The
writer has your letter of the 13th inst. addressed
to Mr. Max Lipschutz. The answer as filed by
the insurance company is about what we ex-
pected, nevertheless, the policy that they issued
to us calls for business and pleasure, and as
Mr. Max Lipschutz was an officer of the compa-
ny, we feel, under the terms of the contract, that
he bad a perfect right to drive the car. You
can rest assured that Mr. Max Lipschutz at the
trial will testify. First. That the company
owned the car. Second. That be was driving
the car, combining both pleasure and business.
Third. That he is an officer of the company. In
order to fulfill your wishes in the matter, I am
having a postscript in this letter which is signed
by Mr. Max Lipschutz. Very truly yours, '44'
Cigar Company, Inc., Geo. M. Lex, Asst. Sec.
L-AH
"P. S.— W. Frank Sooy, Esq.: The facts as
covered by Mr. Lex above will be testified to by
me at the trial.
"Very truly yours, Max Lipschutz."
[1J The letter was offered to contradict
Max Lipschutz, and as an admission by the
company. Counsel for the defendant states
in bis brief that there is not the slightest evi-
dence that the writer, who signed himself
"Assistant Secretary," was such, or that he
had authority to bind the company. This Is
evidently a misconception on the part of the
learned counsel who argued the case for the
defendant Max Lipschuts testified that he
was the a»!istant treasurer, and that Mr.
Lex was the company's assistant secretary.
As to whether they had authority to bind the
company was, in all the circumstances of the
case^ at least Inferable. The question re-
mains: Was the letter properly excluded?
We think not. It should have been admitted,
and the case submitted to the jury.
Counsel (or the defendant argues that the
attempt to put the letter in evidence was for
the purpose of Impeaching the plaintiff's wit-
ness. This Is not so. The attempt was to
contradict the witness. The inhibition Is
only that a party calling a witness will not
be permitted afterwards to Impeach his gen-
eral reputation for truth or veracity by gen-
eral evidence tending to show him to be un-
worthy of belief. IngersoU v. English, 66 N.
J. Law, 463, 49 Atl. 737. A party to a suit
Is not precluded from proving the truth of
any particular fact by competent testimony
In direct contradiction to that to which any
of the witnesses called by him may have
testified. Schreiber v. Pub. Serv. Ry. Co., 89
N. J. Law, 183, 98 AU. 3ia It Is always al-
lowable to show that a witness had made
other and diCFerent statements than those to
which he testifies. Vice Chancellor Pitney,
in Thorp v. Leibrecht, 56 N. J. Kq. 499, at
page 502, 39 AU. 361, states that the rule
forbidding a party calling a witness to offer
evidence for the purpose of impeaching hla
general character for truth and veracity falls
far short of forbidding the party to show by
any legitimate evidence that the witness has
testified to wlut Is not true in a matter ma-
terial to the Issue. This rule was approved
by this court in Buchanan v. Buchanan, 73
N. J. Eq. 544, at page 546, 68 Atl. 780. Al-
though in Thorp v. LeibrecU and Buchanan
V. Buchanan the witnesses called by com-
plainants were defendants, the rule Is not
restricted to such witnesses, that Is, wit-
nesses who are adversary parties, but is as
broad as the statement in Buchanan v. Bu-
chanan, at page 546 of 73 N. J. Bq., at page
781 of 68 AU., that:
"The rule against impeachment denies the
right to impeach the general reputation of the
witness for truth, but does not deny the right
to show that the whole or any part ot the tes-
timony of the witness is untrue."
In fact, counsel for defendant concedes
this in his brief, where he says:
"While the law permits one who calls a wit-
ness to contradict him, it does not permit Im-
peachment"
Impeochment, as shown, is an attack upon
a witness' general reputation for truth and
veracity ; and as that which was attempted
In this case was not such an attack, but only
a contradiction of the witness' statement,
the letter was admissible upon that score.
[2, 3] It is nest objected on behalf of the
defendant that the letter was a privileged
communication by defendant addressed to
the attorneys, Messrs. Bolte, Sooy k Gill.
While addressed to them, it was marked for
the "Attention of W. Frank Sooy, Esq.," who
appears to have had charge of the matter bo
far as bis firm was concerned with It, If at
all. Mr. Sooy was called as a witness by the
plaintiff, and asked whether he or his Ornt
represented the defendant company, and an-
swered that he would rather tell what they
did; that he did not know how to answer
the question rightly. He also stated that he
was advised that he was representing Max
Lipschutz, and that Judge Starr, he thought
it was, would take care of the defendant
company. As a fact Judge Starr did rep-
resent the company, filed their answer, and
tried the case. It is a fact also that Mr.
Sooy's bill was made to Max Lipschutz and
paid by him, Besides, if Messrs. Bolte, Sooy
& Gill were retained by the defendant, their
representative capacity ceased on December
11, 1915, when they received a letter from
the defendant, signed by the assistant secre-
tary. Lex, in which the company said:
"Please leave the insurance company attend
to looking after the '44' Cigar Company's inter-
ests and you look after the interest of Mr. Ben-
jamin Lipschutz and Mr. Max Lipschutz person-
ally, as they no doubt have arranged for."
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MGHTCAP ▼. LEHIGH VALLEY B. 00. OF NEW JBaElSBT
187
There Is no prlvUege as to communlcfttloiui
made to an attorney after his employment
bag terminated. 4 Wigmore on Bvidenoe, g
2304; 40 Cy& p. 2366.
Tbese two letters were declarations by the
company which were admissible in evidence,
the one of December 11th to show that the
firm of Bolte, Sooy & Gill did not represent
the defendant company, at least after that
date, and the one of December 15th that the
company owned the car, and that Max Up-
sdiutz was one of its officers who bad a
right to drive it, and was driving it in busi-
ness as well as pleasure.
Tbii remaining contention on behalf of the
defendant is that the testimony failed to dis-
close that Max Llpschutz, the driver of the
automobile at the tUne of the accident, was
a gerrant of the corporaticm defendant, en-
gaged on its business. Without deciding this
qoestion on the evidence which was before
the conrt at the time of the direction of the
rerdict for the defendant, it is apparent, as
stated, that if the letter of December 15,
1915, had been in evidence, it might have
been inferred, if the jury found the other
qnestions raised by the pleading and evi-
dence In fbvor of the plaintiff, that the de-
fendant company was liable for the conse-
quences of the accident which was the sub-
ject of the controversy in the suit. Ko cita-
tion of authority is necessary to support so
plain a proposition.
The letter of December 8, 1016, from the
defendant company to Messrs. Bolte, Sooy &
(rill, whldi is referred to in the letter of De-
cember 11th, and which indicates that that
llrm represented the Llpfschutzes, father and
son, and not the defendant company, was
pertinent evidence, and should have be«i ad-
mitted; not so the letter of January 25, 1916,
written to Messrs. Bolte, Sooy & Gill by Max
Llpschutz personally, in which he inclosed
his own check, with thanks to Mr. Sooy, or
the firm (it not being stated which) for serv-
ices rendered. Tills was properly excluded.
The Judgment of the court below must be
reversed, to the ead that a ventre de novo
may be awarded.
<30 N. J. Uw, 620)
LIGHTCAP et al. v. LEHIGH VALLET R.
CO. OP NEW JERSEY.
(No. 38.)
(Court of Errors and Appeals of New Jersey.
June 18, 1917.)
(SylUihut by {he Court.)
Mttnicipal Corporations ®=»808(5), 819(2)—
Defective Sidewalk — Irjubt to Pedes-
TftlAN— LlABIUlT.
The defendant owniiif a tract of land^ upon
which was located a freight shed, filled m the
land 80 a« to change its topography and the di-
rection of the flow of surface water therefrom.
Snow having accumulated on the retaininir wall
of the embankment erected, the water uowed
therefrom over the adjacent sidewalk and froze
thereon. The plaintiff while walking on the
sidewalk slipped, fell, and was injured. In an
action to recover for the injuries, the trial court
charged the jury that unless there was affirma-
tive proof in the case, from which they could
infer that the ice upon the sidewalk was caused
by melting snow, which had been transported
from another locality to the defendant's prem-
ises, there could be no recovery ; and also that
the mere presence of piles of snow upon defend-
ant's wall presented no proof that the snow
had been carried thereto from another place by
the defendant or its agents. Held, that the in-
structions of the court in these particulars were
correct.
[Ed. Note. — For other cases, see Municipal
Corporations, Cent Dig. { 1686.]
Appeal from Supreme Court.
Action by Ava Llghtcap and others against
the Lehigh Valley Bailroad Company of New
Jersey. Judgment for defendant, and plain-
tiffs appeal. Affirmed.
See, also, 87 N. J. Law, 64, 94 AtL 35.
William C. Gfebhardt, of Jersey City, for
appellants. Smith & Brady, of Pblllipsburg,
for appellee.
IflNTURN, J. While walking along Mer-
cer street, in the town of Pblllipsburg, the
appellant fell and injured her kneecap. She
attributed the accident to the dangerous con-
dition of the walk, owing to the accumulation
of ice thereeon, caused as she alleges by the
wrongful act of the defendant in causing to
be brought an accumulation of snow upon its
lands, adjoining the walk, which snow in
the process of melting flowed upon the side-
walk, thereby creating a public nuisance, and
causing the injury In question.
The facts elicited from the testimony show :
That the defendant was owner of a tract of
land which was used by it for a freight sta-
tion. That it filled in the tract to such an
extent as to work a change in the topography
of the land, and to cause the surface water to
run in a southerly. Instead of, as formerly, in
an easterly, course. The municipality caused
a street to be opened along the easterly line
of the defendant's property, thereby requiring
the excavation of the earth along defendant's
line, which In turn necessitated, upon de-
fendant's part, the erection of a stone re-
taining wall along the line of the sidewalk.
The snow which accumulated upon the prop-
erty was precipitated over the wall in the
form of water, and running upon the adjoin-
ing sidewalk became frozen, thereby produc-
ing the condition .which caused the accident
The liability of the defendant was predicated
upon the theory of alleged fact that it had
caused quantities of snow to be carried upon
or near its wall, which, having melted, pro-
duced the condition complained of.
It will be observed that the plaintiff sought
to charge the defendant with liability upon
the principle enunciated In the English Ex-
chequer, in the cases of Fletcher v. Rylands, 1
L. R. Ex. 265, 3 H. L. 330, to the effect that
tftsFor oiber casM n* ■am* topto and KBT-NVUBBK la «U Ker-NBrnbered Digest* and IndexM
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101 ATLANTIC REPORTER
{H.3.
one who for his own purposes brings on his
lands, and keeps and collects there, anything
likely to do mischief If it escape, must keep
It at his peril, and. If he fall to do so, Is
prima fade answerable for all damage which
is the natural consequence of his act While
this doctrine has not been repudiated as a
legal principle, it has been placed In the cate-
gory of vexatlo questlo, both in this country
and In England, by the criticisms of the
courts and the text-writers, as a principle of
law fundamentally unquestionable, but con-
taining a statement too generic in form for
practical application, as a test of legal lia-
bility, and consequently It has been definitely
qualified, distinguished, and limited by tlie
adjudged cases until the original statement
has become quite attenuated. Nicholas v.
Marsland, 2 Ex. D. 1, L. R. 10 Ex. 255, 1 Ex.
R. a 272; Loeee v. Buchanan, 51 N. Y. 476,
10 Am. Rep. 623 ; Gorham t. Gross, 125 Mass.
240, 28 Am. Rep. 224; WUson v. New Bed-
ford, 108 Mass. 261, 11 Am. Rep. 352 ; CahUl
V. Eastman, 18 Minn. 324 (Gil. 292), 10 Am.
Repw 184 ; Cooley on Torts, 573 ; 14 Am. U
Rev. 1.
In this state. Chief Justice Beasley, In
MarshaU v. Welwood, 38 N. 3. Law, 339, 20
Am. Dec. 394, criticizes it on the ground that
it is a rule "mainly applicable to a class of
cases which I think should be regarded as in
a great degree exceptional." In the case In
which It was applied In the Exchequer, the
trend of opinion is that its application to the
situation was proper and Justifiable, but the
consensus of opinion in later cases supports
the criticism of Chief Justice Beasley that
the doctrine enunciated "is amplified and ex-
tended into a general, if not universal, prin-
ciple," and following the New York case of
Losee v. Buchanan, supra, he held, speaking
for our Supreme Court, in a case involving
damages cau.%d by the explosion of a boiler,
that in principle the doctrine was inappli-
cable.
But If we assume that the doctrine might
be applicable to tlT" circumstances of the case
at bar, from the plaintlflf's conception of it,
we are met by the controlling fact that tn
no aspect of the testimony can It be aflSrmed
that the defendant brought uiKtn Its land the
cause of the damage, so as to enable the plain-
tiff to invoke the rule referred to, and the
doctrine therefore can have no application
here.
The conclusion that the defendant trans-
ported the snow from another place to Its
premises, because the snow was heaped
upon the wall, at a i>eriod of the year .when
snow was universal in the neighborhood, Is
manifestly a non sequitur, and rests entirely
upon the obvious fallacy that because the
snow was there the defendant, and not vis
major or other extraneous cause, brought It
there, for which act, under the many qualify-
ing cases following Fletcher v. Rylands, legal
reeponslbiUty could not be imposed upon a
landowner entirely quiescent, and guUty of
no active tort-feasance.
An interesting and well-considered r6sum6
of the doctrine herein discussed, particularly
with reference to the liability which emanates
from the application of the '"■tI"', "Sic
utere tuo ut allenum non isedas," and its
many qualifications in practical use to a situa-
tlon like the present, will be found in the May
number of the Columbia Law Review, p. 388 ;
Nicholas V. Marsland, 2 Ex. D. 1 ; Penn Coal
Co. V. Sanderson, 113 Pa. 126, 6 Atl. 453, 57
Am. Rep. 445; Marshall v. Welwood, supra.
In this aspect of the case, however, as-
suming the rule to be applicable to the plain-
tiff, she manifestly is in no situation to com-
plain, since the trial court allowed the case
to go to the jury, upon a charge which ex-
pressly left It to them to find, as the test of
liability, whether or not the defendant had
transported the snow to its premises, and
they found to the contrary.
In contradistinction, however, to the doc-
trine of liability thus applied, the nonliability
of the defendant, for damages resulting from
the mere presence of the snow upon its prem-
ises, in the absence of proof of active tort
feasance, in bringing it there, has been set-
tled beyond controversy by the pronounce-
ments of the courts of this state.
This court, in Jessup v. Bamford Bros. Co.,
66 N. J. Law, 641, 51 Atl. 147, 58 L. R. A. 329,
88 Am. St Rep. 502, in an opinion by the
present Chief Justice, approving the doctrine
enunciated by the Massachusetts Supreme
Court in Gainnon v. Hargadon, 10 Allen
(Mass.) 106, 87 Am. Dec. 025, declared that :
"The right of an owner of land to occupy and
improve it in such manner, and for such pur-
pose, as he may see fit, either by changing the
surface or the erection of buildings or other
structures thereon, is not restricted or modified
by the fact that his own land is so situated, with
reference to that of adjoining owners, that an
alteration in the mode of its improvement or
occupation in any portion of it will cause water,
whidi may accumulate thereon by rains ana
snows falling on its surface, or flowing onto
it from tbe surface of adjacent lots, either to
stand in unusual quantities on other adjacent
lots or to pass into or over the same in greater
quantities or in other directions than they were
accustomed to flow."
And tbe general doctrine was enunciated
that:
"The obstruction of surface water, or an al-
teration in the flow of it, affords no cause of
action in behalf of a person who may suffer loss
or detriment therefrom against one who does no
Oct inconsistent with tbe due exercise of domin-
ion over hia own soil."
To the same effect are Bowlsby v. Speer,
31 N. J. Law, 351, 86 Am. Dec 216; Llgbtcap
V. Lehigh Valley R. R., 87 N. J. Law, 64. 94
Atl. 33; Sullivan V. Browning, 67 N. J. Eq.
391, 58 Atl. 302.
The trial court, consistently with this con-
ception of the law, instructed the jury that,
unless they could find from the te.stlmony
that the defendant carried the snow from
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HEYNIGER r. I^EVINSOHN
189
another place to the premises In question,
thereby causing the condll^lon which superln-
daced the accident, there could be no reoor-
The jviry having found for the defendant,
tbe plaintiff argues that the trial court was
In error, because It declined to charge that
the defendant, by filling In the land, changed
tbe topography of the premises, and Inciden-
tally the adjoining lands, so as to cause a
change in direction of the previously exist-
ing water course, thereby causing the con-
ditions complained of. As has been stated,
there was no proof that the defendant or its
agent had transported the snow, or that they
had in any manner transposed its condition
or Its original status, further than the fact
that it existed In piles upon the wall, which
inddent, as we have Intimated, was neither
convincing nor evidential to show its trans-
ference from elsewhere to the premises In
question, and, as we have observed, the
mere fact that the defendant exercised over
his land an indubitable right of ownership
In changing the grade or slope to suit the de-
fendant's convenience or necessities In the
use thereof presents no ground of liability
for an incidental Injury to another, but is
clearly damnum absque injuria.
"Affirmative" evidence, the trial court de-
clared, must be found In the case from which
an Inference could be rationally drawn that
the snow on the wall was an accumulation
transported to tbe premises from another
locality, and to this direction exception is
taken. When it is recalled that the grava-
men of the action was the acUve Interfer-
oice by tbe defendant with the normal situa-
tion, by the transportation to its premises
of an element, in which Inhered the possibili-
ties of danger and damage, in the absence
of the exercise of due care In its management
and control, It is not perceived in what as-
pect of the situation the use of the adjective
Id question can be characterized as either
Inappropriate or misleading, or as conveying
any definitive meaning, unless it be consid-
ered as conveying a correct indication of the
quantum and quality of the proof necessary
to entitle the plaintiff to recover under the
testimony, and the rules of law to which
we have adverted.
The Judgment will be affirmed.
(87 N. J. aq. 471}
HBTNIGER et aL v. LBVINSOHN.
(No. 37/228.)
(Coart of Chancery of New Jersey. May 29,
1917.)
1. Injunction «=62(3) — Buh-mng Restbio-
Trows— Enfobcement.
Where defendant had knowledg" of a build*
lag line restriction by express covenants in his
deed, and was familiar with a preyious decision
upholding the right to enforce the restriction, a
mandatory injnnction will be granted compelling
him to tear down so mneh of Us building as is a
violation of the restriction.
[Ed. Note. — For other cases, see Injunction.
Cent. Dig. S 1^7.)
2. Injunctiow «s=>113 — Lzmtfation and
Laches.
Where complainants upon discovery of a
violation of a building lice restriction took steps
to enforce it, they were not guilty of laches.
[Ed. Note. — For other cases, see Injunction,
Cent Dig. S§ 198-201.]
3. Covenants ®=3l03(3) — Acquiescence ob
Estoppel — Vioiatiow of Building Re-
stbictionb.
Although tbe acts of the council in building
a pavilion in violation of a building line restric-
tion might estop the municipality from enforcing
the restriction, it would not estop property own-
ers not concerned therein.
[Ed. Note.— For other cases, see Covenants,
Cent. Dig. | 169,]
Bills by George H. Heynlger and others
against Abraham Levlnsohn. Decree for
complainants.
Henry H. Snedeker, of East Orange, and
Harry R. Cooper, of Belmar, for complain-
ants. Patterson & Rhome and Durand, Ivlns
& Carton, all of Asbury Park, for defendant
LEWIS, V. O. The complainants in these
cases ask that a mandatory injunction be
granted, compelling the defendant to tear
down or remove so much of his building a^
Is erected nearer the line of Tenth avenue
than 20 feet Both actions were heard to-
gether.
The borougih of Belmar includes all of the
property originally owned by the Ocean
Beach Association. The property of this as-
sociation Is located south of Shark river and
west of the Atlantic Ocean. The association
laid out the property in building lots, with
streets running north and south, and avenues
running east and west The association also
caused a map of Its property to be made and
filed In tbe office of the Monmouth county
clerk. The streets and avenues on the map
are the same to-day In Belmar. The Ocean
Beach Association is now out of existence.
It was incorporated on March 13, 1873. P. L.
1873, p. 1089. It was authorized to purchase
and sell lands, and was especially empowered
to require any grantee from it to make and
maintain sudi style and character of im-
provements on the land conveyed, or on the
streets fronting thereon, as might seem most
expedient for securing a uniform system of
development and Improvement. The associa-
tion, on June 9, 1873, passed a resolution as
follows:
Resolved, that it is highly important to main-
tain uniformity in the line of buildings on the
main avenues of this association, and for secur-
ing said object that no building be erected on
said avenues nearer the line of tlie same than
twenty feet.
The association executed and delivered 740
deeds, each of which, with the exception of
those about to be referred to, contain this
covenant:
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101 ATLAimO REPORTBa
(N.J.
Subject, nevertheless, to the coTenasts, condi-
tions, and restrictions contained in the aforesaid
act, entitled "An act to incorporate Ocean Beach
Association"; and the said party of the second
part, for himself, his heirs, and assigns, does
covenant and agree to and with the said Ocean
Beach Association, their successors and assigns,
that the said party of the second part, his heirs
and assigns, shall not sell, or suffer to be sold,
on the said premises hereby conveyed any spirit-
uous or intoxicating liquors, nor violate any of
the provisions contained in the said act of in-
corporation, by-laws, rules, or regulations made
by the said association at any time.
The only deeds in wblch the covenant in the
above form do not appear are: Two to the
mayor and council of Belmar, for proiierty
for public parka ; three on land not Included
In the map of the Ocean Beach property ; two
are deeds made in accordance with a decree
in chancery (one of the property along the
ocean, between Tenth and Eleventh avennes,
for bathing puriwses, and one a deed by the
sheriff, pursuant to a judgment In an ac-
tion in which the Ocean Beach Association is
party defendant) ; one in which the covenant
was omitted, but a prior deed in the ctialn of
title contained it; one where the covenant
appears, and also an additional covenant in
regard to the removal of a building; one
where the word "rules" was omitted; and
two of property for railroad purposes.
Tenth avenue is one of the principal av-
enues Included In the resoluti(Hi of the Ocean
Bench Association. However, all of the av-
enues have been construed to be main av-
enues, and the restriction applies to ail of
them. The general plan to obtain and compel
uniformity in the building line for the bene-
flt of every person to whom the said Ocean
Beach Association sold a lot has been main-
tained. The testimony clearly shows this. It
is established that most of the houses were
erected with the main body of the building lo-
cated with reference to the building line. Tliat
the restrictive covenant does not apply to
c^en porches, bay windows, and eaves is a
construction put upon it by those in authority
and the contractors in the borough of Belmar.
The late Vice Chancellor Emery, in Morrow
T. Hasselman, 68 N. J. Eq. 612, 61 Atl. 369,
held that immaterial violations of the restric-
tions, not showing an intention to abandon
the plan, are no defense to an action. In
other words, that slight and immaterial vio-
lations of the restrictive covenant would not
be considered, unless they went to the extent
of showing a general abandonment of the
restrictions by the owners of the property
alon;; the line of the thoroughfare I do not
find from the evidence before me that there
has been an abandonment. It is apparent that
the original grantor who first imposed the
restrictions upon the property has done noth-
ing which would Indicate an intention upon
Its part to disregard the covenant.
[1] The evidence clearly discloses that the
defendant knew of the building restriction.
The express covenant in his deed in Itself
would be sufficient to give him notice; and
his testimony shows that before be com-
menced the erection of his building he had
full knowledge of the building line restric-
tion. He says in one part of his evidence
that he asked the mayor, Mr. Poole, what he
thought about his going over the building
line in erecting his structure, and, further, if
he would stand for it he would put it up
In that way. He then claims that he ob-
tained permission from the mayor to do so;
but this is expressly denied by Mr. Poole.
And the fact that he (Poole) immediately had
a surveyor place stakes on the lot would
seem to negative any consent. The defend-
ant was thoroughly informed about the situa-
tion before be began operations on his
ground. In fact, he states that he knew of
the restrictions before he bought the land,
and was familiar with the case of Newbery y.
Barkalow, 76 N. J. Bq. 128, 71 AtL 752, in
which the late Vice Cliancellor Howell had
the same building line restriction under con-
sideration and upheld the right to enforce It
The testimony of other witnesses also shows
the defendant's knowledge of the restriction.
[2] I do not think the complainants have
been guilty of laches, for steps seem to have
been taken by them to enforce the restriction
immediately upon discovery of the violation
by the defendant. The defendant proceeded
at his peril, in an apparent disregard of all
other's rights. He took bis chances on the ef-
fect of his conduct, with knowledge of the de-
cision in the Newbery Case.
[3] It does not appear, although many new
buildings that have been erected on Tenth
avenue since the Newbery Case, that any of
them have been located with the main foun-
dation wall projecting beyond the bulldtag
line. Barring the erection of these new
buildings, the conditions remain about the
some as at the time the Newbery Case was
decided. I cannot find that the complainants
are estopped by the erection of the Buhler
pavilion. The evidence does not appear to
disclose that it is located on Tenth avenue;
but if it was, and the act of the council In
this operated as a bar to the municipality, it
could not estop its cocomplalnants Wlldman
and Newman, and the complainant Hey-
nlger.
There has been shown a general intention
on the part of the borough and of the parties
owning land along the avenues to keep alive
and observe the building line restriction, and
the Newbery Case is binding upon me.
The decree, therefore, will be for the com-
plainant.
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HIRSCHBERG- ▼. FLUSSBR
191
(V S. 3. Bq. ESS)
HIRSCHBERO r. PLTJSSEEU (No. 48/8«a)
(CoQit of Chancery of New Jersey. June 21,
1917.)
IRJTJKCTION ®=)50 — Remedy at Law — R«-
MOVAL OF ENCROACHMENTA.
Where defendant has encroached apoa plain-
titPa land by building a foundation wall, under-
neath the surface, of stones so large that they
form part of defendant's building on defendant's
land so that it is impossible to remove them
without trespassintr on his land and injuring his
building, and plaintiff's title and right have been
■ettled in an ejectment suit, there oeing no ade-
quate remedy at law, a mandatory injunction
will issue to compel defendant to remove the
wall.
[Bid. Note.— For other cases, see Injunction,
Cent Dig. { 103.]
Suit by Joseph Hlrschberg against Ben-
jamin Flusser. On motion to strike out
bill. Motion carried over until final hearing.
Philip J. Schotland, of NewarK, for com-
plainant. Samuel Roessler, of Newark, for
defendant
LANE, V. C. This is a motion to strike
out a bill. The bill alleges that complainant
Is the owner of certain property; that de-
fendant, who Is the owner of a'djolnlng proi>-
erty, on or about May 3, 1911, intending to
build an addition to bis building, excavated
to a depth of 24 feet, and in so doing exca-
vated a portion of complainant's property
substantially 26 feet 5 Inches by 9 Inches;
that defendant then proceeded to build on
his own land and also on the land of com-
plainant Ills foundation and side wail up to
the level of the ground, but that above the
levd of the ground the defendant cbntinued
with his buifding on his own land; that
about the 3d day of July, 1911, complain-
ant brought suit in the New Jersey Supreme
Court to recover possession of the land oc-
cupied by defendant's foundation and side
wall below the level of the ground, and on
the 25th day of September, 1913, procured a
ju'dgment against the defendant, and it was
therein found that the complainant was en-
titled to recover the possession of the prem-
ises referred to in the bill of complaint; that
the defendant did not remove the founda-
tion wall or side wall, and the complainant
has been unable by means of execution to
get the sherifC of the county of Essex to re-
move such encroachment, because a large
part of the wall which encroaches on the com-
plainant's land is built with stones so large
that tJiey not only encroach upon complain-
ant's land but extend into and form part of
the wall of defendant's building on defend-
ant's land, and it is impossible to remove
the part that encroaches without trespassing
upon defendant's land and injuring his build-
ing.
I assume that the bill may be considered as
charging that the complainant actually issued
execution and that the sheriff has failed or re-
fused to Temore the encroachment The mo-
tion to strike out is based upon : First, that
there is an adequate remedy at law; and, sec-
ond, that there is laches. It is Insisted by the
defendant that the complainant by virtue
of the judgment in ejectment has been
awarded the possession of the property in
dispute and may remove whatever may be
thereon; further, that he may compel the
sheriff, if the nature of the defendant's prop-
erty on the land in question is such that it
may be removed, to remove It and put him
In an actual physical possession of the soil
as It was prior to defendant's interference
with It, tliat the sherifT may, however, re-
quire indemnity, and if any part of the de-
fendant's building is injured by the action
of the sheriff acting under the writ the com-
plainant will be responsible; and, finally,
that If the nature of the property of the de-
fen'dant upon the land of complainant is such
that it may not be removed without injuring
defendant's prot)erty, then the complainant
is entitled only to constructive possession.
Where the injury is irreparable, tliis court
will enjoin continaoua trespasses. In cases
where the fundamental right of the com-
plainant to equitable relief depends upon
legal title in dispute, the Court of Errors
and Appeals has said that it is the duty of
the court to retain the bill and to send the
complainant to law so that the legal title
may be settled (Todd ▼. Staats, 60 N. J. Eq.
[15 Dick.] 507, 46 Atl. 645, and cases follow-
ing) ; the complainant in the meantime pro-
ceeding with the building at his peril. The
logical result of Todd ▼. Staats Is that, the
legal right having been settled in favor of
the complainant, a mandatory injunction will
go to compel the defendant to remove the
offending structure if equitable considera-
tions do not prevent and If the remedy ob-
tained at law be not adequate. In Stan-
ford V. Lyon, 37 N. J. Eq. 94, Vice Chancel-
lor Van Fleet held that the court would
grant a mandatory injunction compelling de-
fendants to remove portions of buildings
erected by them which prevented complain-
ant from exercising rights In a yai'd. The
Court of Errors and Appeals, in 42 N. J. Eq.
411, 7 Atl. 869, modified the decree so as to
define the complainant's rights as they were
defined in an action at law which he had
previously brought against the defendants
and in which his rights had been determined.
The Court of Errors and Appeals did not ques-
tion the power of the court of equity to, after
the right had been settled at law, protect the
right by mandatory Injunction if that were
necessary. The first head of equitable ju-
risdiction stated in Hart v. Leonard, 42 N. J.
Eq. 416, 7 Atl. 865, is that of cases where
the legal right has been established in a suit
at law an'd the bill in equity is filed to ascer-
tain the extent of the right and enforce or
protect it in a manner not attainable by le-
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192
101 ATIi4NTIC &S3P0KTBB
(N.J.
gal procedure. And see the sixth and ninth
head. In Haltsch v. Duffy (1914, Del.) 92 Atl.
249, the Chancellor, la a case In which an In-
junction was prayed against defendant en-
Joining him from asserting a right of air
and light over complainant's land and compel
the removal of a structure which Interfered
with complainant's rights, held that a court
of equity had the power to grant such relief
prior to the determination of the right at
law. He said, referring to Herr v. Bier-
bower, 8 Md. Cb. 456 :
"The court considered that it was no answer
to say that by suit in ejectment the complain-
ant would recover possession of the land en-
croached upon, and would so eet any wall or
building erected on the land so recovered. The
structure would still remain, and in order that
the complainant be restored to the full use of
his land it would be necessary that the wall, or
structure, be removed."
He further said:
"This equitable jurisdiction is probably based,
not on the irreparable character of the damage
by the agKression, nor to relieve the necessity
for multiplicity of suits as if it were a contin-
uous trespass. The right to a mandatory in-
junction to require the removal of an encroach-
ment on land is based on the peculiar nature of
the right invaded and the subject matter af-
fected, viz. land."
I am Inclined to think that the Jurisdiction
Is In the last analysis based upon the impos-
sibility of securing at law any adequate re-
lief for the damage done, either by ejectment
or by numerous suits in trespass. In Baron
V. Kom, 127 N. Y. 224, 27 N. E. 804, opinion
by Parker, Judge, the New lork Ck)urt of Ap-
peals, in an action to restrain the erection of
a portion of a building on land of complain-
ant, said:
"Assuming plaintiffs' title to be established,
the authority of the court in a suit in equity to
interfere and prevent an appropriation of their
lands to the use of another for building pur-
poses cannot be longer questioned, not only for
the purpose of avoiding multiplicity of actions,
but also because they were without adequate
remedy at law. • • • The sheriff might not
regard it as bis duty to deliver possession by
taking down the wall, which would burden him
with the risk of injury to other portions of de-
fendant's building, not included within the nine
inches. (It is to be observed that the amount of
land involved in that case was almost precise-
ly what it is in this, at least so far as width is
concerned.) But in equity the obligation to re-
move can be placed directly on the parties who
caused the wall to be erected. » ♦ • "
The court did not consider the question as
to whether It was necessary that the title
should first be determined at law, holding
that the question had not been properly rais-
ed. Upon the authority of the foregoing cas-
<>s, I think that the bill may be maintained.
The title and right of complainant has been
settled at law. The law courts are not by
reason of the nature of their processes able
to give complete and adequate relief. Nei-
ther the sheriff nor the complainant should
be compelled to take the risk, on removal of
this structure, of Injuring property of the de-
fendant. To give the complainant construc-
tive possession Is no remedy at all ; he has al-
ways had that To remit htm to actions for
trespass will not afford adequate relief. He
is entitled to the enjoym^it of the land in the
position It was before the defendant en-
croached upon it It is only by the process
of mandatory Injunction that the obligation
to temovB, in the language of the New Tork
court can be placed directly on the party
who caused the wall to be erected. The case
of D. L. W. V. Bre?kenridge, 65 N. J. Eq. 141,
35 Atl. 756, affirmed 53 N. J. Bq. 693, 39 Atl.
1113, Is not In conflict with this holding, nor
are the cases of Boyden v. Bragaw, 53 N. J.
Eq. 26, 30 AtL 830, and Ck>lloty r. Stein. 80
N. J. Eki. 405, 84 AtL 193. In the first, Vice
Chancellor Emery, In dealing with an appli-
cation for an Injunction directing the remov-
al (tf certain water pipes, did say that the
equitable remedy could give no different re-
lief from the executl<» In ejectment ; but the
Inability to execute the execution without
danger to complainant was not considered
by him, moreover, the effect of his order was
merely to retain the cause until the legal ti-
tle had been settled at law. In the second.
Vice Chancellor Bird held that there was an
adequate remedy at law, to wit, damages
measured by what It would cost the complain-
ant to remove the offending monument and
put the land back In the condition it was be-
fore the erection. Such relief cannot be
granted here. In the third. Vice Chancellor
Leaming merely held that prior to determina-
tion of the legal title at law equity would not
intervene to prevent the erection of a build-
ing alleged to encroach on complainant's
lands.
Second, on the question of laches: Wheth-
er the complainant has been guilty of laches
depends, I think, upon a consideration of
facts which are not before the court upon the
present motion. The bill alleges that the
construction was started on or about May 3,
1911, and that the ejectment suit was start-
ed on or about July 3, 1911, two months aft-
erward. When the complainant knew of the
encroachment is not disclosed. Nor is It dis-
closed to what extent the building had pro-
gressed at the time of the ejectment suit By
the commencement of the ejectment suit de-
fendant had notice of the claim of complain-
ant's right The suit was not brought to
Judgment until September, 1913. Whether
that was the fault of complainant or because
of necessary delay In court Is not disclosed.
This bill was not filed until May 8, 1917.
Whether this delay was occasioned by the
complainant endeavoring to obtain relief at
law Is not disclosed. It may very well be as-
sumed, I think, that no Injury occurred to
the defendant between September, 1913, and
March, 1917, as the building had unquestion-
ably been fully completed. Whether It was
the duty of the complainant to file a bill In
equity at the same time as commencing the
suit In ejectment applying to the court to re-
tain the bill until the right at law had been
settled, under the case of Todd t. Staats, may
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LAUBNSTEIN v. LAUENSTEIN
193
depend upon drcumstancea wliich are not
now before me. I will wltbhold considera-
tion of tbe questloii of lacbes until final
bearing.
In view of the fact tbat, if an order is
made sustaining the bill and it Is taken to
tbe Court of Errors and Appeals and there
affirmed, there will hare to be a trial upon
at least the question of laches, and the case
may then again go to that court, I am inclin-
ed to ttdnk that the proper order in this case
ig an order carrying over tbe motion to dis-
miss the bill until final hearing.
I wish counsel would communicate with
me as to their views on this point.
(n N. J. Bq. 408)
LACENSTEtN et al. v. LAUENSTBIN et al.
(No. 42/319.)
(Conrt of Chanceiy of New Jersey. May 18,
1917.)
1. Wills ®=3753— Riohts oj- LEaATBES— Spb-
cmc Leoact.
A will devising the stock and equipment of
an auto supply business, subject to itis debts and
obligations, absolutely to testatrix's son and not
tobject to restrictions on his sbare in the re-
mainder of the will, ia a specific legacy.
[EU. Note.— For other cases, see Wills, Cent
Dig. {! 1939-1944.]
2. Will's e=>732(7)—OoNBTBucTioN— Gifts.
A will, reciting that part of the estate con-
sisted of the stock, equipment, etc., of an auto
supply business, bequeathed such property to the
son of testatrix. The stock and equipment of
the business did not belong to testatrix, but to
her husband, who was' indebted to his wife for
idvancements made to carry on the busiuess.
Held, that the gift of such sums due could not
be sustained under the terms of the will in lieu
of tbe bequest of the stock and equipment upon
its failure.
(Ed. Note.— For other cases, see Wills, Cent
Dig. H 1732-1737, 1811, 1812.]
Action by Augustus J. Lauenstein and oth-
ers against Elizabeth Lauenstein and others
for the construction of a will, under which
Thomas J. Conlon makes a claim. Claim not
■nstahied.
Charlton A. Beed, of Morristown, for ex-
ecutors. Elmer King, of Morristown, for
Edward Kelly, guardian. B. W. Ellicott, of
Dover, for Thomas J. Conlon.
STEVENS, V. C. This is a biU for the
construction of the third paragraph of the
codicil of the will of Julia Kelly. It reads
as follows :
"Third. A part of my estate consists of the
stock, equipment, etc., of the business known as
Dover Auto Supply House located on Blackwell
street in Dover, N. J.; this, subject to the debts
and obligations thereof, I give and bequeath to
my son Thomas Conlon, who ia now associated
in the management thereof.
"This is an absolute bequest to him and not
subject to the restrictions placed on his share
of the residue in my said will. It is my will
however that this bequest to the amount of
twenty-five hundred dollars be considered as paid
to him out of the residue of my estate and to
said extent as on account of his share thereof."
[1] There can he no doubt that, looking
only to the langnage at the bequest, tbe l%a-
cy Is specific. It has, however, been Judicial-
ly determined by this court that the "stock,
equipment, etc.," of the business did not be-
long to the testatrix, but to her husband.
Consequently the gift failed. McKlnnon v.
Thompson, 3 Johns. Ch. (N. Y.) 307. Mar-
shall V. Hadley, 60 N. J. Eq. 547, 25 AtL 825.
[2] But It Is said tiiat, on the peculiar cir-
cumstances, if the legatee cannot have the
business, he is entitled to have what tbe busi-
ness owed his mother for advances. It ap-
pears that testatrix was desirous of giving
her son a start. For this purpose she con-
tributed the money with which a considera-
ble part of the stock and equipment were, nt
the beginning, purchased. The business waf»
to be carried on in the name of the "Dovei
Auto Supply House," and to this end Mrs.
Kelly's husband, pursuant to the act of May
17, 1909, filed in the county clerk's office a
certificate in which he stated that he (Ed-
ward Kelly) intended "to conduct the business
of dealer in auto supplies, etc., and that the
true name of the person who was to transact
it was himself. He was a man of pecuniary
responsibility, and the goods, bought from
time to time, were largely purchased on Ills
credit The legatee, Thomas, was made the
active manager, and he conducted the busi-
ness under the general supervision of his
father. Mrs. Kelly received interest on the
money advanced by her, a part of which was
repaid. It was ascertained by the decree of
this court that at the time of her death Mr.
Kelly owed her estate a balance of $2,029.40.
The contention is that Thomas Conlon Is
entitled to the Immediate payment of this
sum, as a substitute for the business which
testatrix Intended to give him — a business
she, no doubt, believed to be hers, because of
the money she had contributed. The legal
aspect of the matter is this : The stock and
equipment belonged to her husband. He was
her debtor for the money lent By her will
she gave this stock and equipment expressly
subject to "the debts and obligations thereof."
Thomas, taking the business, was to take it
subject to debts, one of which was the debt
due to herself. The debt in question was not
a benefit to the business, but a burden.
Thomas was, according to the language of the
will, not to receive it, but to pay it. To hold
that a gift of the business, subject to its debts
was a gift of the money which the legatee
would have been under the necessity of thus
paying, if he had taken it, would be impossi-
ble. He certainly would not take under thu
words of gift In Marshall v. Hadley, supra.
Vice Chancellor Van Fleet held that a gift
of land, .which neither at the time of the mak-
ing of the will nor afterwards the testator
owned, did not include a gift of a mortgage
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101 ATIiANTIC REPOB.TEB
apon tbe land which he did own ; and in Me-
Klnnon v. Thompson, supra, Chancellor Kent
decided that a devise of land not owned by
testator could not operate as a bequest of a
Judgment debt charged upon the land In his
favor. These cases are much more favorable
to tbe contention than tbe one in hand. Here
testatrix, so far from giving, Imposed an
obligation to pay.
I think that Mr. Conlon's claim to the mon-
ey cannot I>e sustained.
NOLAN et al. v. UNITED BKOTHERHOOD
OF CARPENTKRS AND JOINERS OF
AMERICA. (No. 43/297.)
(Court of Gboneery of New Jersey. June 21,
191T.)
Injunction ®=»137(4)— Tempobabt Injunc-
tion—Wukn Gbanted.
A temporary injunction will not issue where
the law and facts are in sutwtantial dispute;
as to doubt is to deny.
[Ed. Note. — For oUier cases, see Inlunction,
Cent Dig. { 309.]
Application for a temporary injunction
by Patrick J. Nolan and others against tbe
United Brotherhood of Carpenters and Join-
ers of America. Application denied.
J. A. Kiernan, of Elizabeth, for complain-
ants. Henry C&rless, of Newark, for de-
fendant.
LANE, V. O. I have concluded In this case
to deny the application for a temporary In-
junction. The charge is that the complain-
ant and several others are members of Local
Inion No. 167 of the United Brotherhood of
Carpenters and Joiners of America, and
liuve t>cen such members since September 14,
1896; that that union is affiliated with an
organization known as the Elizabeth District
Council of Carpenters, and that both are
subordinate organizations of the United
Brotherhood of Can^cnters and Joiners of
America ; that the general objects are to pro-
mote social relations, regulate laboring
hours, unionize workmen, and to pay sick,
disability, and death benefits; that as a
member In good standing of the local union
the complainant would be entitled to $5 a
week sick benefit, $400 for total disability,
and a certain sum to Ills next of kin as a fu-
neral benefit, provided he was a member In
good standing and had complied with the
rules and regulations; that since May 3,
1916, he has been working as a carpenter
continually at the plant of the Grasselli
Chemical Company, at Tremley, Union coun-
ty, N. J., and that shop Is what is known as
an open shop.
The bin alleges that he has practically re-
ceived union wages, worked union hours, and
that the place is desirable ; that on or about
March 12, 1917, at the instance of the general
officers of the union, and particularly at the
Instance of the boslness agent of tlie local
union, charges were made against Um that
he was violating the- constitution, roles, and
regulations of the United Brotherhood and
its council and local vmlons as a union mem-
t>er by working in an open shop. He alleges
that charges were propounded against him
and certain others, all employed by the Gras-
selli Company, and that there Is unjust dis-
crimination in view- of the fact that there
are other open shops in the neighborhood,
and members of the organization working in
such other open shops are not being pro-
ceeded against.
The affidavits of the defendant deny that
the charge against the complainant Is that
he is working in an open shop, but that he
has violated a trade rule of the organization
wlkich requires that union carpenters should
work only 44 hours a week at 66^ cents per
hour ; that the complainant is receiving only
45% cents per hour, with time and a half for
overtime for a week of 62V6 hours. Tbe af-
fidavits expressly deny that there is any de-
sire to discriminate against complainant for
the reason that he is working in an open
shop, provided he receives union wages and
works under union conditions.
(Complainant wlien he Joined the union
agreed to abide by its constitution and by-
laws. One of the provisions of the consti-
tution and by-laws is that no member should
be allowed to violate the trade rules of the
locality in which he works. Another section
provides that, if he does he may be fined,
suspended, or expelled, as the Local Union
may decide. There are further provisions for
an appeal from the determination.
The aflldavits show that the charge against
the complainant is not that he Is working
with nonunion men in what Is termed an
open shop, but that he violated the trade
rules with respect to the hours of work and
the rate per hour. The complainant has
not been tried by the local union and I have
only his surmise as to what the result of
such a trial will be. The Grasselli Company
Is not a party, so that we have not the situa-
tion presented by Booth & Bro. v. Burgess,
72 N. J. Bq. 181, 65 Atl. 228, and Barr v.
Essex Trades CJoundl, 53 N. J. Eq. 101, 30
Atl. 881.
I do not find It necessary on this prelim-
inary application to pass upon the question
aa to whether or not individuals may sur-
render their right to contract, referred to
by Vice Chancellor Stevenson In Booth & Bro.
V. Burgess, 72 N. J. Eq. at page 197, 65 AtL
226, nor whether the fact that complainant iu
entitled to a sick benefit and payment of dis-
ability and death claims constitute a proper-
ty right which will be protected by this
court, nor wliether the complainant is obliged
(and this depends upon the finding with
respect to whether there is a property right)
to pursue his remedy by appeal to the so-
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PRICE V. LONG
195
perior body of the order. If the council shall
proceed and expel Mm, and this expulsion
shall be Improper, either the Supreme Court
or this court may grant relief. Plrlcs ▼.
First Kusslan, etc., Society, 83 M. J. Eq. at
page 34, 89 Atl. 103&
^Vhere the law and facts are In substantial
dispute, as In this case, to doubt is to deny.
See the remarlcs of the present <diancellor,
tben vice chancellor, in Allman t. United
Brotherhood of Carpenters, etc., 79 N. J. Bq.
at page 155, 81 Atl. 116.
The result Is that tho application for pre-
Umlnary injunction will be denied.
(90 N. J. Law. cn»
EDWAIUOS, Comptroller of Treasury, ▼. PE-
TRT. (No. 77.)
(Court of Errors and Appeals of New Jersey.
June 18, 1917.)
Civil, Rights ®=»2— Cokstitutionaii IiAW
€=>56— JUBIBDICTION— VaUDITT OF STAT-
UTE.
The jurisdiction given to a justice of the
Supreme Court by Act March 30, 1G15 (P. tt.
p. 209), providing for an order by a justice to
enforce rights ond^ the Civil Service Act, is
Dot invalid as interfering with the right of the
Supreme Court to review the entire case by
certiorari, but adds an additional step in a pi-o-
ceeding which may ultimately reach the {Su-
preme Court as a reviewing tribunal.
[Bd. Note.— For other cases, see Civil Rights,
Cent. Dig. $§ 1-10; Constitutional Iaw, Cent.
l>ig. H 62-05.1
Appeal from Supreme Court
Certiorari by Edward I. Edwards, Comp-
troller of the Treasury, against Frederick
I'etry, Jr. From judgment for defendant,
prosecutor appeals. Affirmed.
On appeal from the Supreme Conrt, In
which the following per curiam was filed:
"This is a writ of certiorari to review an or-
der made by Justice Trenchnrd, imder chapter
120 of tlie J^WB of 1915, providing for an or-
der by a justice of the Supreme Court to enforce
rights mider the Civil Service Act. Tlie sole
question argucil by the prosecutor was as to
the power of the I/egislature to delegate to a
justice of the Supreme Court this right to re-
view.
"In the present case tlic defendant appealed to
the civil service commissiim and met with an
adverse decision, and thereupon applied to Jus-
tice Trencliard and secured an order reversing
the action of the Commission. We do not find
in the case that Justice Trcnchard went further
than to issue a rule to show cause on the comp-
troller, and the power to issue the writ was
therefore challenged in limine. Xliis involves
the questions that were discussed in this court
in New Brunswick v. McCann, 74 N. J. Law,
171, 04 Atl. 169; Newark v. Kazinski, 86 N. J.
Law, 59, 90 Atl. lOlC, and Summit v. loraiso,
87 N. J. Law, 403, 94 AU. 806. We think that,
while the case presents some difficulty, we are
bound, nevertheless, to follow the last two cases,
wliich seem to us controlling.
"We think that the jurisdiction given to the
justices of the Supreme Court by the act under
consideration in no way interferes with the
right of the Supreme Court to review the entire
case by certiorari, but superadds an additional
step in a proceeding which may ultimately reach
this court as a reviewing tribunal. We are not
to be understood as approving of this character
of legislation which quite inmdiously results in
unsettling the legal machinery of the court
without gaining ultimately any substantial ad-
vantage to the litigant by the disarrangement.
"We think this writ must be dismissed."
John W. Weacott, Atty. Oen., for appel-
lant. Linton Satterthwait, of Trenton, for
appellee.
PER CURIAM. The Judgment under re-
view will be affirmed for the reasons set
forth in the opinion of the Supreme Court.
Cn N. J. Bq. 778)
PRICE T. LONG et al. (No. 42/631.)
(Court of Chancery of New Jersey. May 11,
1917.)
Trusts iS=>193%— Sale o» Tarsr Pbopebtt
POWSR OF COUBT TO ATTTHOBIZE.
An equity court has jurisdiction to author-
ize sale of stock devised to trustees, to be held
by them for 25 years, before expiration of that
time, where business of the corporation has suf-
fered seriously because of general business de-
pression occurring since his death, and will be
disastrously affected by entrance of the United
States into the war, where the parties oppos-
ing the sale conceded its stock should be sold,
and opposed sale on ground that price is not
fair, since an emergency has arisen which could
not have been in contemplation of testator.
[Ed. Note.— For other cases, see Trusts, Cent
Dig. §1 246, 24a]
Bill by Mathias J. Price, one of the trustees
under the will of Philip H. Long, against
iSmlly A. Long and others, beneflciaries under
his will, asking court to direct the sale of
stock belonging to the estate. Decree for com-
plainant
Llndabnry, Depue & Faulks, of Newark
(P. J. Faulks, of Newark, of counsel), for com-
plainant Cortlandt & Wayne Parker, of
Newark (Cortlandt Parker, of Newark, of
counsel), for defendants Walter !>. Long and
others. Lum, Tamblyn & Colyer, of Newark
(Ernest Lum, of Newark, of counsel), for
defendants Emily A. Long and Fred W. Tay-
lor, aa'tru8te&
LANE, y. O. Philip H. Lone died on
December 9, 1908. Under bis will he gave
to his executors and trustees, Frederick W,
Taylor and Mathias J. Price, 65 shares of
stock of the Long & Koch Company, t.o be
held by them in trust for a period of 25 years.
The Income or dlv'idends from 27M shares of
such stodc Is to be paid to lila wife, f^nily
A. Long, so long as she lived; If she dies
prior to the expiration of the 25 years, then
the income on such 27H sluices is to be paid
to her brother Edmund Taylor, a sister, Kato
Prosser, and her sister-in-law, Mrs. Emily
Taylor, and such of her nephews and nieces
as shall he living at the time of her death,
except that if her nephew Harry B. J. Taylor
should predecease her, the share that he
would be entitled to if living is to be paid
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101 ATIiANTIO REPORTER
(N.J,
to hla wife and chMren. The Income on
the remaining 37H shares Is to be divided
equally between testator's two brothers, Fred-
erick T. Long and Walter L. Long, and sacb
of testator's n^hews and nieces as shall be
llTlng at the time of testator's death, and his
cousin Philip J. Long also Is to share In the
Income so long as he shall remain an employ^
of the company. At the end of 25 years the
said 65 shares of stock are to be sold and dis-
posed of, certain relatives having the first
right to purchase. The proceeds are to be di-
vided among certain charities and among
certain relatives. Some of the beneficiaries
are at this time unascertained ; the residences
of those that have been ascertained are wide-
ly scattered In this country and abroad ; some
are infants.
The Long & Koch Company is a manufac-
turing concern founded by Philip Long and
to whldi be gave his attention up to the
time of his death. Its chief business is the
making of cheap jewelry, with a very smaU
margin of profit. During the life of Mr. Long
It was extremely successful, and for a few
years after his death continued to be. Its
dividends for several successive years were
as follows: 1904, 80 per cent ; 1906, 100 per
cent ; 1906, 130 per cent ; 1907, 175 per cent ;
1908^ 100 per cent; from 1908 to 1912, 100
per cent In 1913 the dividends- were re-
duced to 60 per cent. In 1914 further reduced
to 20 per cent, and since 1914 no dividends
have been declared. The testimony is to the
effect that although a dividend may be declar-
ed for the year 1917, it will be small. The
corporation is a close corporation ; it has but
150 shares of stock. Of this the estate holds
66; Mrs. Elmily Long, 10; Julius Koch, 74;
Mrs. Koch, one. The control is evenly divid-
ed between the Koch and the Long interests.
Mr. Koch Is now at the bead of the concern,
and Frederick W. Taylor, one of the trustees,
is employed by the corporation at a salary.
The reason for the decline of the business
is attributed to two sources: First, the loss
of Mr. Long, whose genius had buUt up the
business; second, the general depression in
the Jewelry trade. The book value of the
stock is In excess of $1,000 a sbarei. Mr.
Koch has offered to buy out the Interest
of the estate at a price of $400 a share. Fred-
erick W. Taylor, one of the trustees, Is
against the acceptance of the offer, whereas
Mr. Price, the other trustee, considers It
not only advisable In the Interest of the
estate, but necessary, if great loss is not to be
sustained, that the offer be accepted. He
therefore, brings this bill asking this court
to direct the sale, and make parties all per-
sons whom be knows to have an interest in the
estate. The application is resisted by certain
of those entitled to Income, among them the
widow, and also by the cotrustee. Many of
the parties have not appeared. The answer-
ug defendants, while admitting that because
of the uncertainty attending the present in-
vestment, it may be desirable that the stock
be sold, yet insist that the price is not ade-
quate, and raise by their answers the ques-
tion of the power of the court In the premises.
Mr. Price Is in no wise connected with the
company, and he takes the position that It is
his duty to brlog the situation to the atten-
tion of the court The attitude of Mr. Taylor
is unconsciously affected by the fact that a
sale of the stock may mean the loss of hi»
position with the company, and will unques-
tionably lead to the loss of the influence
which he now enjoys. While the book value
of the stock Is in excess of $1,000, it is im-
possible to sell It to any one except Mr. Koch
for any reasonable figure. Mr. Taylor frank-
ly concedes this. Koch says $400, consider-
ing all of the circumstances, is about fair
value of the stock, and I think that under aU
the circumstances it is. Counsel for the com-
plainant fuiTilshed me memoranda of the
cases on both sides of the question, and X
have considered them.
Chancellor Runyon, In Fidelity Co. v. Unit-
ed Co., 36 N. J. Bq. 405, at page 408 says:
"It is the rule that the directions for invest-
ment contained in an instrument of trust are
imperatively obligatory on the trustee; but by
the direction of a competent court he may de-
part from them. The court however, should ex-
ercise its authority • » * only in view of
the existence of a necessity. The power of this
court to abrogate or annul any of the terms of
the before-mentioned agreements should not be
exercised except for clear and cogent reasons,
and with full opportunity to the parties who are
to be affected by such action to be heard."
Chancellor Vroom has said, in Oliver ▼.
Oliver, 3 N. J. Eq. 368. at page 373:
"One thing is certain; this court will not in-
terfere with the appropriation of this trust
fund, so as to direct it differently from the in-
tention of the testator, except in a very clear
case."
In Dodd T. Una, 40 N. J. Eq. 672, 6 AU.
155, the Court of Brrors and Appeals held
that this court had no power to impose Its
view upon the method in which the funds of
a savings bank were to be dealt with where
the details were specified by statute. In Lis-
ter v. Weeks, 61 N. J. Eq. 623, 47 Atl. 588,
the Conrt of Errors and Appeals sustained
an order made by the Court of Chancery, di-
recting a certain Investment to be changed,
but put Its decision upon the ground that
the parties In interest especially the appel-
lants, had consented to It and could not
thereafter withdraw their assent In Eng-
land the power of the Court of Chaiicery in
the exercise of its general administrative
Jurisdiction to sanction or direct trustees to
perform acts contrary to the provision of an
Instrument of trust where there arises an
emergency or a state of circumstances whicb
It may reasonably be supposed was not fore-
seen or anticipated by the author of the
trust and Is unprovided for by the trust In-
strument and which renders It desirable and
perhaps even essential in the Interest of the
beneficiaries that such act should be done.
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HUGHES T. HURLET
197
has been snstalned In England In the cases
of In re New et al. aOOl) 2 Ch. Dlv. 534;
In n ToUemache (1902) 1 Ch. Dir. 467. In
the first case, Romer, J., said:
"The principle seems to be this: That the
eonrt may, on an emergency, do something not
authorized by the trust. It has no general pow-
er to interfere with or disregard the trust; but
there are cases where the court has gone beyond
the express provisions of the trust instrument,
cases of emergency, cases not foreseen, or pro-
vided for by the author of the trust, where the
circumstances require that something should be
done,"
— and, farther:
"It is impossible, and no attempt ought to be
made to state or define all the circumstances
under which, or the extent to which, the court
will exercise the jurisdiction ; but it need
scarcely be said that the court will not be justi-
fied in the sanctioning of every act desired by
the trustees and beneficiaries merely because it
may appear beneficial to the estate; and certaiur
]y the court will not be disposed to sanction
transactions of a speculative or risky charac-
ter."
I have grave donbt as to the power of this
court, but because of the existence, I think,
of the present emergency and the fact that
if I should decline to exercise jurisdiction
the applying trustee will have performed bis
duty and there will probably be no review
by the Court of Errors and Appeals, where-
as If I exercise Jurisdiction the present de-
fendants will have the opportunity to ap-
peal, and the matter may be passed upon by
that court, I am going to resolve the doubt
as to Jurisdiction in favor of the complain-
ant. The situation Is such that I cannot as-
sume responsibility for the continuance of
this investment in this stock. Not only has
the business of the company suffered seri-
ously because of the loss of Mr. Long and
the general depression In the business, to
such an extent that Its dividends have been
reduced from 175 per cent per year to nil, a
condition whldi I think was not In the con-
templation of the testator, although It may
be said that be must be presumed to have
contemplated it; bat a world war has, since
his death, broken out, in which this country
has now become Involved, a condition which
be certainly did not contemplate, and which,
I tbtnk, it Is not to be presumed he contem-
plated. As a matter of fact, no one contem-
plated It, except possibly the governmental
antborlties of Germany. It Is impossible to
determine how long the war will last, or
what its consequences wUl be, or what the
conditions will be upon a readjustment after
Its close. It must have a disastrous affect
upon such businesses as that carried on by
the Zx>ng & Koch Company, manufacturing,
as I before stated, cheap Jewelry at a very
narrow margin of profit Coming on the
heels of the condition created by the loss of
Mr. Long, and the general depression In the
Jewelry business. It may have a very disas-
trous effect upon the business of Long &
Koch. It should also be kept In mind that
the control of the business Is equally divid-
ed between the Koch and the Long Inter-
ests, and this equal division must Inevitably,
If the business continues to lose money, lead
to discord within the company Itself. Under
the circumstances I think that the offer of
$400 a share Is a fair one; that It should
be accepted, notwithstanding the opposition
of the cotrustee and of certain other benefi-
ciaries. Indeed, the cotrustee and the bene-
ficiaries appearing concede in their answers,
and conceded on the oral hearing, that it
was advisable that the stock should be sold.
The only question was the question of price.
They all conceded that no more could be ob-
tained. Dissolution cannot be forced. Un-
less this offer is accepted, it seems to me
that this risky Investment must be continued.
I win advise a decree permitting and di-
recting the sale of the stock at $400 a share,
and at the foot of the decree application may
be made for instructions as to the Investment
of the proceeds. Settle the decree on one
day's notice.
HUGHES et ah v. HURLET et aL (No. 41/8.)
(Court of Chancery of New Jersey. May 19,
1917.) .
1. Contracts ^=3189 — Conbtbtjotiok — Fob-
BEABANCE TO SuE.
Where a party, heavily interested in a bond
secured by a mortgage which covered a compa-
ny's realty and personalty, but was not effective
as to the personalty because it waa not recorded
as a chattel mortgage, agreed with certain gen-
eral creditors of the mortgagor that, in con-
sideration of their forbearance to press their
claims, he and such creditors would consen'p
the interest of the mortgagee and creditors at
large by buying up the claims of smaller cred-
itors if necessary to prevent action on their
part, such agreement bound the parties to join
and purchase, if necessary to protect it from
being dissipated, not the mortgaged realty, in-
cluding machinery and appliances, but the per-
sonalty which was i^eed from (deration of the
mortgage.
[Ed. Note. — For other cases, see Contracts,
Cent Dig. g} 811-845, 900-902, 906.]
2. Tbttsts «=>231(2)— Violation or Agbec-
UEirr— PxTHcnASE at Sheriff's Sale.
The action of one party to such agreement
In buying at sheriff's sale for $900 part of the
personalty worth about $100, together with an
equity in the machinery and appliances which
was of no value because covered by the mort-
gage and not subject to sale, was not fraudulent
as to the other contracting creditors, or an act of
which they could complain, where the proceeds
were applied to the payment of preferential
debts.
[Ed. Note.— For other cases.
Dig. § 331.]
I Trusts, Cent.
Suit by D. W. Hughes and others against
William L. Hurley arfd others. Bill dis-
missed.
Bourgeois & Coulomb, of Atlantic City,
for complainants. Stackhouse & Kramer,
of Camden, for defendants.
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198
101 ATLANTIC REPORTER
(X.J.
BACKES, V. C. This case was tried thoi^
oughly and very ably argued by counsel,
and during the trial the yarions phases of
it were discussed In such detail that I am
able as well now to dispose of the matter as
if I should give it further consideration.
There are no Involved legal principles, and
there is only one issue of fact as to which
the testimony Is In sharp conflict.
The bill is filed by the three complainants,
who are creVlitors of the Central Freezing
Company, which in the early part of 1915
became financially embarrassed. This cor-
poration was formed to operate an Ice plant
In or near Atlantic City, which had previous-
ly been the property of the Center-Freeze
Realty Company, and was purchased from
that company In December, 1912, for $175,000,
In payment of which the freezing company
gave Its bond for the full consideration of
$175,000, and executed a mortgage to secure
this bond upon the property purchased. For
commercial convenience, the mortgage was
made to the Central Trust Company of Cam-
den, as trustee; the scheme being to later re-
place the bond of $175,000 by negotiable
I)onds in denominations of $500 and $1,000.
The defendant Hurley was heavily interested
in this bond and mortgage, either as a stock-
holder or a creditor of the realty company.
At the time of the financial embarrassment
of the freezing company, the three complain-
iints, or some of them, called upon Dr. Grace,
the president of the trust company, who, at
that time, also represented Mr. Hurley dur-
ing his temporary absence on a vacation In
Florida, for the purpose of conferring with
reference to the condition of the freezing
company, with the end in view, on the part
of the complainants, of protecting their
claims; and as a result of that conference,
it was arranged that the complainants should
not precipitate bankruptcy or otherwise fur-
ther embarrass the situation or add to the
precariousness of the freezing company, they
agreeing to forbear prosecuting their claims,
with the understan'dlng that the property
of the company was to be by the complain-
ants and the defendant — Grace acting for the
defendant — conserved In the interest of the
mortgagee and the creditors at large of the
freezing company, by buying up the claims
of the smaller creditors, If necessary, so as
to prevent action on their part. That, gen-
erally, was the agreement between the par-
ties, as I think it was understood by all con-
cerned, and to this Mr. Hurley was bound,
because he admitted very frankly on the
stand that Dr. Grace represented him and
had the power to make such a bargain.
The realty company's mortgage of $175,000
covered all of the real and personal estate
of the freezing company, including after-
iicquired property, the personal proi)orty not
being particularized. The realty company
failed to record its mortpage as a chattel
mortgage, and by this omission it had lost
the benefit of the personal security. Hur-
ley, as one of Its stockholders and creditors,
was apprehensive lest the personal property
be seized and sold an'd the value of the mort-
gage security upon the realty thereby dimin-
ished. Anxious to keep the property Intact
as a plant, and realizing that the mortgage
would have to be foreclosed and the property
bought In by the mortgagee, he hoped to sell
It to better advantage as a unit ; and at the
time of the conference the parties were agreed
that this course would be advantageous to
all concerned. At the meeting It was under-
stood that the property was Incumbered by
mortgages amounting to $60,000, and that
these mortgages were prior liens to the $175,-
000 mortgage, and were to have been taken
up by the proceeds from the sale of the $175,-
000 of bonds, which never came to pass. It
was also given out and fairly understood
that there was an equity In the property over
and above the $60,000 mortgages, approxi-
mately of from $30,000 to $40,000, although
the property had been previously sold to the
freezing company for a much larger sum.
The $60,000 of mortgages were, as I recall
them, purely real estate mortgages; and, al-
though nothing was said at the meeting in-
dicating or differentiating the personal from
the real property covered by the realty com-
pany's mortgage, it may have been, and prob-
ably was, assumed by the complainants that
all In excess of $60,000 of realty mortgages
represented persotial pr<^erty.
Shortly after the conference, two judg-
ments were recovered against the freezing
company, and under them tlie sheriff of At-
lantic county levied upon certain ma<ditnery
and appliances, part and parcel of the Ice
plant, and also upon a few articles strictly
personal, but of very little value. The prop-
erty, as levied upon, was advertised for sale,
of which Mr. Huriey beard the day before
the sale took place, and without notifying
the defendants of what was about to happen,
he attended the sale and bought in the prop-
erty for the amount of the Judgments — some
$900. Upon a subsequent denial to the com-
plainants that he bought this property pur-
suant to the terms of the agreement and that
he held It according to the arrangement, this
bill was filed for the purpose of subjecting it
to the engagement and to have It decreed
that Mr. Hurley holds the property in trust
for the benefit of the unsecured creditors of
the freezing company. The prayer is for a
receiver and an accounting, and for other re-
lief.
[1] The case very much turns upon the
scope of the agreement, which. In effect, un-
doubtedly was that, If occasion demanded,
the parties were to join and purchase the
proijerty of their common debtor, so that
it would not be dissipated, so that It would
not suffer In value as a unit, and so that It
would produce the greatest results by a
sale as a plant; and the obligation to pre-
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HUGHES ▼• HUKIiBT
199
s^rre It was imposed apon no matter wblch
ot tbem might later on come into possession
of the property- by such a purcliase. And
right here the question is, What property
was involved, and what was to be protected
as against the action of other creditors?
Snrely, not the real estate incumbered by
the lien of the realty company's mortgage,
except, peAaps, the equity, and there was
none, and obviously only the personal prop-
erty of the freezing company, which, as to
its common creditors, had been freed of the
operation of the mortgage for failure to re-
cord, could have been the subject of the pro-
posed concerted action. Further than this,
that is, the chattels, the personal property,
the agreement did not extend. The fact tliat
the sheriff 8ul>sequaitly levied upon and sold
as personal property machinery and appli-
ances which were essentially part of the real
estate did not enlarge the embracement The
machinery and appliances so sold by the
sheriff to Hurley were annexed to and formed
a part of the Ice-maklng plant, and were
installed by the realty company,, and were
used by it in operating the plant, and were
annexed with Intent that they should become
a part of the realty, and as a going concern
the plant was sold by the realty c(Mnpany to
the freezing company, and as a whole was
mortgaged by the latter to the former. The
mortgage, as I have said, described the land
and included the machinery and appliances
and all personal property presently owned
and thereafter to be acquired, without partic-
ularizing what was personal property, but
it is perfectly plain that the legal status of
the mortgage as a Hen upon the real prop-
erty and upon all that became realty by
installation and annexation as a part of the
plant was not disturbed nor the machinery
reconverted by combining the real with, but
wltljout defining, the personal property, as
security, in this document. The chattel fea-
ture of the mortgage was designed to cover
such personal property as horses, wagons,
tools, office furniture, etc., and was not in-
tended to embrace that species of property al-
ready included and foniiing a part of the
realty. So, to repeat, we have this situation
at tlie time the agreement was made: The
$175,000 mortgage was a valid and subsisting
and enforceable real estate lien upon the
plant, which lien covered aU that was con-
veyed by the realty company to the freezing
company, as a part of that plant, viz. the
land and the fixed machinery and appliances
whl<A wait to make it up. The legal conse-
quences of tills lien, of course, were not, and
conid not be, affected by the arrangement,
and besides there was no intention, as be-
teen the parties, to abridge its lawful sweep,
and this is so regardless of the misconception
of its force and effect, entertained, perhaps,
by Dr. Grace and Mr. Hurley, or the com-
plainants. It was clearly the property of
the freezing company not covered by the
mortgage with whldi the parties were con-
cerned, and with reference to which they
bargained. Ibere was none other upon
which the agreement could operate, and there
was no trust, except as to that property.
[J] The defendant sets up that the arrange-
ment was abandoned before Mr. Hurley pur-
chased at the sheriff's sale, and for that
reason there was no breach of confidence.
The parties again met before the sale, and
Dr. Grace says that he gave them the name of
the lawyer representing the two Judgments
nnder which the sheriff afterwards sold, and
suggested that they place their claims in
his hands, at the same time announcing that
his agreement was at an end, and that they
were free to act as they pleased, so far as
he was concerned. The complainants admit
being at the meeting, but emphatically deny
that the arrangement was rescinded. The
view I take of the case makes it unnecessary
to pay upon the veracity of the witnesses.
They are all truthful men, and undoubtedly
related the facts and circumstances as they
were impressed upon their minds, clouded
somewhat by the efflux of time, as nearly as
they could. Granting that Mr. Hurley's
trusteeship remains, it is to be regarded as
extending only to the property bought by him
at the sheriff's sale, which was unincumbered
by the $175,000 mortgage, viz. one desk, two
chairs, one work table, one lot of tools, one
hand vise, one pipe vise, and one wa^n,
estimated to be worth $100, and he having
for these (and for the equity in the machinery
and appliances, the value of which is nil)
paid $900, and as the proceeds were applied
to the payment of preferential debts, the
transaction is purged of the alleged fraud
and the complainants are not aggrieved.
Complainants' counsel's argument differs
materially from the attitude he assumed
during the trial as I understood him then,
and he now concedes that the machinery and
appliances are a part of the plant and realty
incumbered by the $175,000 mortgage; and,
as I now understand his position, he contends
that, notwithstanding, his clients are en-
titled to recover to the extent of their value
simply because they forebore prosecuting
their claims, and that it makes no difference
whether the machinery is real or personal
or whether it was incumbered by the mort-
gage or not, it was held out to be personal
property, or assumed to be, and that Hurley,
in consideration of the forbearance and the
benefits which would fiow therefrom to the
security of the realty mortgage, agreed that,
as between the parties, the property was to be
regarded as personalty. I cannot entertain
this proposition of defendant's accountability,
nor can the statement by Dr. Grace that the
plant was worth $90,000 or $100,000, and that
the mortgage Indebtedness upon it was some
$60,000. and that there was an equity of
aroroxlinately from $30,000 to $40,000 be
interpreted as an undertaking that the differ-
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101 ATLANTIC REPORTEE
(N.J.
ence was to accme to the common creditors,
it no action were taken, or that of this
estimated amount the ralne of the machinery
and appliances was to be so applied. As I
have said before, that might have been the
assumption of the complainants, but In the
very nature of things, It seems to me, the
agreement could not have been so contemplat-
ed hy the parties. There Is nothing in the
testimony from whldi it might be even in-
ferred that the realty company was to sur-
render any of Its rights secured by its mort-
gage, whatever they might prove to be, and
It Is but reasonable to assume that the par-
ties dealt with that understanding. The
transaction will not admit of the construc-
tion that the machinery and ai^Ilances were
to be considered as the subject of the trust,
regardless of their legal character and the
lien to which they were subject; nor, to
repeat, can it be allowed thai their seizure
and sale as personal property, and their
purchase by Hurley, worked a change. The
sale was a mere incident, upon which the
complainants have seized to measure their
damage. To follow counsels' reasoning leads
to a personal responsibility upon the pert
of Hurley, to the value of the machinery and
appliances, admittedly wrongfully seized as
personal property, wholly independent of any
breach of trust, although breach of trust Is
the gravamen of the bill. In flne, the ar-
gument is that, even if the realty company,
upon a foreclosure of its mortgage rightfully
sold this property — a thing which it has done
since this snit was begun — and Hurley failed
to secure and hold it for the common credi-
tors, by purchase or otherwise, his liability
would be absolute; that is, having failed
to wrest it from Its true owner, he must
respond. Suppose the plant had been sold
by an insolvency receiver, free of the mort-
gage : Could he have been held, If the court
declined to distribute the proceeds of sale, to
the value of the machinery, amongst the un-
secured creditors? Manifestly such a bur-
den was not within the letter or spirit of
the defendant's engagement, and the bUl
must be dismissed, with costs.
(90 N. J. Law. st»)
EISELB et al. v. RAPHAEIi.
>Court of ESrrors and Appeals of New Jersey.
June 18, 1917.)
(St/Valui hy the Court.)
Appeai, AND Ebroe <S=>931(1)— Striking Fbiv-
ot.ou8 Pt,ea— Rule of Coub't— Conclusive-
ness OF Finding.
Rule 80 of the Supreme Court (100 Atl.
zziii) declares that a frivolous or sham plea may
be stricken out, upon proper affidavit in support
of a motion for that purpose, unless the defend-
ant by nflidavit or other proof shall show such
facts as may be deemed, by the judge hearing
the motiou, sufficient to entitle him to defend.
Under this rule, the finding of the ju<l!?e must be
taken as true until the contrary appears, and
this is 80 when an appeal is taken from such
an order as permitted by section IS of the Prae-
ace Art of 1912 (P. L. p. 380).
[Ed. Note. — For other cases, see Appeal and
Error, Cent Dig. { 3762.]
Gummere, C J., and Swayze and Parker, JJ.,
dissenting.
Appeal from Supreme Court
Action by John Elsele and Nathanlal King,
partners trading as Elsele & King, against
Ellas Raphael. From an order of the Su-
preme Court striking out the answer and
entering Judgment, defendant appeals. Af-
firmed.
Levltan & Levltan, of Jersey City, for ap-
pellant Edgar W. Hunt, of Lambertvllle,
for appellees.
BERGEN, J. This action was brought by
the plaintiffs to recover from the defendant
a balance due on an account relating to the
purchase and sale of the capital stock of
certain corporations, bought and sold on what
is commonly called a "margin," which it la
alleged the defendant refused to take up
and pay for, and thereupon plaintiffs sold the
stocks on the New Tork Stock Exchange for
less than they cost The defendant had made
a deposit to be applied on account of such
purchases pledging the stock to secure the
balance of the purchase price advanced by
the plaintiffs, and recovery is sought for the
difference between the sum of the proceeds
of the sale and deposit, and the cost The
answer denied each paragraph of the com-
plaint in such a manner as to amount to a
general denial of all the allegations set out
in it and then stated, as separate defenses:
(1) That the complaint did not state a cause
of action. We think that the complaint does
state a cause of action. (2) That defend-
ant had on deposit with the plaintiffs cer-
tain shares of stock which they sold with-
out BufBdent notice to the defendant. (3)
That when the deposit of the defendant was
exhausted plaintiffs continued to buy and
sell stocks for the defendant's account with-
out demanding an additional margin. This,
if true, would be no defense if the defendant
gave orders to purchase and they were ex-
ecuted; for it waa nothing more than ex-
tending him credit Defendant also filed a
counterclaim for the deposit and an alleged
conversion of stock which the defendant
claims the plaintiffs had purchased for him.
The plaintiffs moved to strike out the answer
and counterclaim as frivolous and sham,
which motion was heard by a justice of the
Supreme Court on affidavits read on behalf
of plaintiffs and answering affidavit of the
defendant The justice struck out the an-
swer and counterclaim and ordered a judg-
ment for plaintiffs, from which the defend-
ant has appealed.
That an order striking out an answer and
the entering of a summary judgment rested
in discretion and was not the subject of a
writ of error, prior to the Practice Act of
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N.J J
EISELE ▼. RAPHABL
201
1912, has been long settled In this state and
is not open to argument (State Mutual B.
& I* Asa'n V. WUUams, T8 N. J. Law, 720, 75
Atl. 927); but It Is claimed that the Prac-
tice Act of 1912 has altered the rule In this
state. This is so to the extent of allowing
an appeal and a review of such an order.
Section 16 of the new Practice Act pro-
vides that:
"Subject to rules, any frivolous or sliam de-
fense ♦ • • may be struclc out; or if it ap-
pear probable that the defense ia frivolous or
ibam, the defendant may be allowed to defend
on terms. Defendant, after, final judgment,
may appeal from any order made against him
nnder this section."
This section, being made expressly "sub-
ject to rales," must be rend In connection
with rules 80 to 84, Inclusive [100 Atl. xxlll,
xxlv], relating to the entry of summary
judgments. Eule 80 provides that :
"The answer may be struclc out and judgment
final may be entered upon motion and affidavit
as hereinafter provided, unless the defendant by
affidavit or other proofs shall show such facts
as may be deemed, by the ^udge hearing the
motion, sufficient to entitle lum to defend."
Rule 81 reqnlres that the motion to strike
ont be made upon affidavit of "the plaintiff
or that of any other person cognizant of the
facts verifying the cause of action, and stat-
ing the amount claimed, and his l)elief that
there Is no defense of the action." Reading
the rules, to which the statute Is subject,
and the statute together, a plaintlir will
be entitled to a summary judgment upon pre-
senting an affidavit complying with rule 81,
which should set out fuUy the facts upon
wlilch the cause of action is based, unless
the defendant by affidavit or other proof
shall show facts deemed by tbe Judge hear-
ing the motion sufficient to entitle him to
defend. This confers upon the Judge the
power to determine the sufficiency of the
facts set up by the defendant, and his con-
clusion that they are not sufficient should not
be set aside unless the sufficiency clearly ap-
pears. In the present case, the affidavits of
the plaintiffs show that they were stock-
brokers; that defendant deposited with them
a maigin to cover stock purchases; that he
ordered purchases and sales, and they ad-
vanced to him the difference between the
cost of the stock and the deposit holding the
stock in pledge to secure the repayment of
such advances; that each purchase and sale
was reported to the defendant on a printed
statement containing a notice that It was
understood and agreed between the defend-
ant and plaintiffs that all stock bought for
the defendant, and so held In pledge, could
be sold without demand for a further mar-
gin, or notice of a sale of the stock whenever
such gale was deemed necessary by the plain-
tiffs for their protection ; that defendant re-
fused on demand to take up and pay for the
stock purchased for him or to deposit addi-
tional money to protect the plaintiffs from
loss; that they thereupon sold the stock In
the open market at public sale oa the New
York Stock Exchange to protect them from
further loss; that the stock did not sell for
a sum which, with the deposit added, was
sufficient to cover the cost ; and that, having
exhausted the pledge, there still renmlned
a balance due to them. Without further
statement of plaintiffs' proofs submitted to
the Judge, it is sufficient to say that by them
It was conclusively shown that defendant
was liable to the plaintiffs for the amount
claimed.
The facts set up by the defendant's affida-
vit are these:
(a) That he never read the agreement giv-
ing the plaintiffs the right to sell the stock
without demand or notice. This, if true,
would not be a defense, for the agreement
was printed on every statement sent him for
each purchase and sale, about SO in numt>er,
and these he accepted and held as evidence
of his contract of purchase.
(b) That he did not order plaintiffs to buy
certain stocks which are speciflenlly set out,
but in the next paragraph of his affidavit he
says that these purchases were not made in
September, 1915, as he had previously testi-
fied, "but by the notices In my possession
appear really to have taken place in Octo-
ber." This ia an admission that he had
notice of the purchase of this stock, and
he says In one of his affidavits:
"I did not object when I found out, because I
thought the said Pope was doing the right thing
by me."
He now claims tliat these purchases were
not made by his order, but, if this be true,
it was his duty to object at once and not wait
and have them held for him with the ex-
pectation of a profit, to be repudiated \t he
subsequently found that the purchase result-
ed In a loss. He had an account with the
plaintiffs to whom he admits that he gave
numerous orders to purchase and sell stocks,
and, as soon as be fdund out that a purdiase
had been made for him which he had not
ordered, it was his duty to promptly disavow
it and not speculate on the result, whidi if
favorable he could avail himself of and if
unfavorable repudiate. Under the facts set
out in his own affidavit, his conduct amount-
ed to a ratiflcation of the purchase.
(c) That he never ordered plaintiffs to pur-
chase two lots of stock which he names, but
as the purchase and sale of these two lota
resulted In a profit to him he suffered no loss,
for Ills account had been credited with the
profit and does not enter into this contro-
versy except to his advantage.
(d) That he was not given notice to make
any additional deposit of a margin. TUa
was not required under his wmtract, and he
knew that at any time he could take up the
stock purchased for him by paying the bal-
ance due.
There is nothing in the defendant's af-
fidavit which entitles him to have this court
reverse the finding of the Judge that be
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101 ATIiANTIO REPORTER
(N.J.
deemed the facts shown by the defendant to
be Insufficient to entitle him to defend.
The record shows that from September 7
to November 1, 1915, a period of less than
two months, this defendant dealt In over
2,700 shares of stock at a total cost of ?134,-
821, and that over SO purchases and sales
were made for him by the plaintiffs from
which he reaped a profit In nearly every
case, except In the 5 transactions which he
now seeks to repudiate, which shows that he
was an active and rather a liberal speculator
la stocks and in most Instances a successful
one.
The order of the Judge In this case declares
that the answer filed Is frivolous and a sham,
and that the defendant failed to show such
facts as he deemed sufficient to entitle him
to defend. The finding of the Judge must be
assumed to be true until the contrary ap-
pears, and, as it does not appear in this
<.ase, the finding must be taken as correct
ijtrlking out a sham or frivolous plea Is not
11 u infringement of the right of trial by Jury.
A plea of general issue, although it denies
the entire claim of the plaintiffs, and ap-
parently raises a question of fact. Is not pro-
tected for that reason against a motion to
strike out as sham or frivolous. Coykendall
V. Robinson, 39 N. J. Law, 98.
As to the counterclaim based upon the
conversion of stock, we do i»ot perceive how
there could be a conversion to defendant's
Injury by the sale of stock to raise the money
necessary to pay a loan for the security of
which the stock was pledged.
The Judgment will be affirmed, with costs.
GUMMERE, G. J., and SWAYZE and
PARKER, JJ., dissenting.
(90
N. J. Law, 717)
ROSE v. nTZGERALD.
(No.
89.)
Jersey.
(Court of Errors and Appeals of New
June 18, 1917.)
1. Appeal and Erbob «=>575— TBANacRiPT—
Necessity of Legal Appointment of Stb-
noobapiies.
A stenographic transcript of testimcmy on
appeal bas no value, where the record does not
show that the stenographer was appointed pur-
suant to the statute.
2. Husband and Wife *=>232(1) — Action
FOB Wife's Debts— Bubdkn of Pboof— No-
TICB.
In an action against a husband for bill in-
curred by his wife, the burden was on the hus-
band to Hhow that the plaintiff saw a notice on
the husband's check that no more credit was to
be given to the wife.
[Ed. Note. — For other cases, see Husband and
Wife, Cent Dig. g§ 844, 981.]
3. Appeal and Error «=»604(S)— Unofficial
Tbanbcbipt — Impeachment of C!oubt's
Statement.
The silence of an unofficial transcript on | _.. „_ . _^
appeal ns to evidence will not be taken as im- nssisnod that should lend to a reversal, amj
Iienohinff a statement of the case settled by the ' judgment will therefore be affirmed
trial judge whidi included a stenographic tran-
script
[Ed. Note.— For other cases, see A|q>eal and
Error, Cent Dig. { 28SS.]
4. Appeal and EIbbor «=»206(1)— Neoessitt
of objection to evidence.
The ruling that evidence as to what were
necessaries for which the husband was liable
was part of the defense will not be considered
on api>eal, where it was not objected to at the
trial.
[Kd. Note.— For other cases, see Appeal and
Error, Cent Dig. U 128»-12S5.]
5. Appeal and Ebbob «=»719i(5)— Necessitt
OF ijI-ECIFriNa'CiBOUNDS OF Ebbob.
Where a ruling relating to evidence was not
specified as a ground of error, it will not be
considered on appeal.
[Eki. Note.— For other cases, see Appeal and
Error, Cent Dig. Ii 2974, 3490.]
6. Appeal and Ebbob «=9724(2)— Sufficien-
cy OF ■General Objection.
The general objection that the defendant did
not have a fair trial presents no question on
appeal,
[Ed. Note.— For other cases, see Appeal and
Error, Cent Dig. §S 2997, 2998, 3022.]
Appeal from Supreme Court.
Action by Harry Rose against Benjamin
G. Fitzgerald. Judgment for plaintiff, and
defendant appeals. Affirmed.
The following Is the opinion below:
This was a suit against a husband to collect
the amount of a bill for tailoring done for the
wife. There was a judgment for the plaintiff
below. The defense was mainly based upon the
claim that the plaintiff had been uotitied by th<!
husband not to give any credit to the wife and
also that the articles furnished were not neces-
saries. After the suit was begun, the wife paid
a part of the bill, leaving a balance of $4>>.
which was the basis of the judgment
[1] Appellant has put in what appears to be
a stenographic transcript of the testimony tak-
en in the court below, but there is nothing in
the record to show that a stenographer was ap-
pointed pursuant to the statute, and, unleae
there was an appointment, the transcript hns
no value. On the other hand, there is a state-
ment of the case settled by the trial judge,
which naturally excludes a stenographic tran-
script. The alleged errors called to our atten-
tion are the following:
[2,3] First That the conrt found against
uncontradicted evidence that the plaintiS did
not see a written notice upon the dofendaut's
check that no more credit was to be given to
the wife. The burden was on the defendant to
show that the plaintiff did see this notice, and
the judge certifies that th? plaintiff testified
that if tie clause was there he did not see it,
while the transcript is silent On this point "We
tliink we should not take the silence of the
unofficial transcript as impeaching the state-
ment of the court to the contrary.
[4,5] The same may be said as to the otvurt'a
finding that the defendant did not supply his
wife with necessaries. The ruling *hat evi-
dence as to what were necessaries was part of
the defense is complained of in the brief, but
WHS not objected to at the trial and waa not
specified as a ground of error.
[6] 'Third and fourth. It is objected general-
ly that the defendant did not have a fair trial.
A general objection of this character, of conrso)
counts for nothing.
We find, no error of the trial court properly
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ARMBRECHT t. DELAWARE, Jj. tt W. R. CO.
203
J. J. Crandall and James A. Llghtfoot, both
of Atlantic City, for appellant. Morris
Bloom, of Atlantic City, for appellee.
PER CURIAM. The Judgment under re-
view will be affirmed for the reasons set
forth in the opinion of the Supreme Court
(M N. J. lAw. Et»)
ARMBRECHT ▼. DEI^WARE, U & W. B.
CO. (No. 111.)
(Cooit of E<rrors and Appeals of New Jersey.
June 18, 1917.)
(Byllahut by the Court.)
MAaTBB AND Skevant «=>284(1), 286(1), 288(1)
—Federal Liabilits Act— Question fob
JuBT — Employment in Intebstatk Com-
MEBCE — Negligence — Assumption of Risk.
In an action under the federal Employers'
Uability Act (Act April 22, 1908, c. 149, 35
Sut. 65 [V. S. Comp. St. 1916^ §S 8657-8UC5]),
it was open to the jury to infer from the evi-
dence that the plaintiff's intestate was engaged
in removing snow from the tracks, both inter-
state and intrasUte, of a railway; that the
work had been only temporarily suspended;
that the men were told by the boss to go in a
covered car, as it was raining and freezing at
the time; that to do so they walked along the
tracks because they could not go otherwise, and
decedent was struck and killed by a fast pas-
senger train considerably behind time; that
there was a failure to warn him that the pas-
senger train was behind time and might be ex-
pected. HM, that it was for the jury to say
whether the decwlcnt was engaged in interstate
commerce, whether there was negligence on the
part of the railway company, and whether the
decedent had assumed the risk.
[Ed. Note.— For other cases, see Master and
Servant, Cent. Dig. Si 1000, 1001, 1008, 1008,
\0e», 1687, 1088.]
An>eal from Circuit Court, Hudson County.
Action by Augusta Armbrecht, administra-
trix, against the Delaware, Lackawanna &
Western Railroad Company. Judgment for
plaintitr, and defendant appeals. ASlnued.
Maximilian M. Stallmau, of Newark (Fred-
eric B. Scott, of New York City, on the brief),
for appellant Alexander Slmpeon, of Jersey
City, for appellee.
SWATZE, J. This Is an action under the
federal Employers' Liability Act There was
eTidence from which the Jury might infer
that the deceased was engaged In removing
snow from the tracks both intrastate and In-
terstate at the Port Morris yard; that after
working for some time it became necessary
to back the work train east some four miles
to Chester Junction, for the purpose of get-
ting back to the Port Morris yard on the
west-bound tracks; that more snow was to
be removed; that the train was held some
minutes at Chester Junction; that the men
were told by the "boss" to go In the covered
car as It was raining and freezing at the
time; that to do so, they walked along the
tracks becanse tliey could not go otherwise;
that a fast passenger train came along con- 1
siderably behind time, struck the men on
the track, and killed plaintiff's Intestate;
that there was no warning that it was be-
hind time and might be expected.
The trial Judge left it to the Jury to say
whether the deceased was engaged In Inter-
state commerce and whether there was neg-
ligence on the part of the defendant We
think the evidence required him to take this
course. The fact that there was a temporary
cessation la the work of removing snow, and
a temporary rest from work, did not require
a finding that the decedent at the moment
of the aoddent was not engaged in interstate
commerce; nor do we think that the fact
that he was about to take refuge from the
storm in the covered car makes any differ-
ence. That was a mere Incident of the em-
ployment, which did not thereby change Its
general character. The work was the remov-
al of snow from railway tracks, interstate
as well as Intrastate; it had merely suf-
fered a temporary interruption due to the
necessities of traffic on a busy railway and
in some degree to the inclemency of the
weather. It is enough to refer to N. T. Cen-
tral R. R. V. Carr, 2.38 U. S. 260, 35 Sup.
Ct. 780, 59 L. Ed. 1298, and to Shanks v.
Delaware, I^ckawanna & Western R. R., 239
U. S. 556. 36 Sup. Ct. 188, 60 L. Ed. 436, L. R.
A. 1916C, 797, as showing the line of cleav-
age between the cases. Other cases are cit-
ed in the oi)inlon in the Shanks Case. What
we hare said Is enough to distinguish the
present case from Minneapolis & St. Loula
R. R. Co. V. Winters, 242 U. S. 333, 37 Sup.
Ct 170, 61 L. Ed. 358, and to bring it with-
in the principle of Louisville & Nashville R.
Co. V. Parker, 242 U. S. 13, 37 Sup. Ct 4. 61
L. Ed. 119. Other recent cases on one side
or the other of the line are Erie R. R, Co.
V. Welsh, 242 U. S. 303, 37 Sup. Ct 116, 81
L. Ed. 319 ; Illinois Central R. R. Co. v. Peery,
242 U. S. 292, 37 Sup. Ct 122, 61 L. Ed. 809.
The question of negligence is more difficult
The failure of the engineer of the passenger
train to blow a whistle until too late for any
good does not indicate negligence, since he
could not be supposed to anticipate that men
would be walking on the track at that point.
But we think the failure to warn the men
that the passenger train was behind time and
might be expected is sufficient to sustain the
verdict, since the Jury might have believed
the evidence that the boss told the men to go
to the covered car, and that there was no way
to go except along the track. This disposes
also of the question of the assumption of
risk. No doubt a railroad employe or any
one else assumes the risk of walking on the
track, but it does not follow that he assumes
the risk of being struck by a train which
he may well think had gone by. The request
to charge did not embody all the pertinent
facts. We find it difficult to understand what
the Judge had In mind when he told the Jury
that they might take Into consideration the
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101 ATIiAKTIO ItEPORTEK
(N.J.
speed of the passenger train In considering
the other charges of negligence, bnt as he had
Just charged that the speed of the train did
not present a question of negligence, because
tbe company had the right to exercise Its
Judgment In that respect, we think no harm
could have been done the defendant by that
portion of the charge which Is made a ground
of appeal.
The Judgment Is affirmed, with costs.
(90 N. J. Law, 6G5)
PEOPLE'S NAT. BANK OF TARANTUBI,
PA., ▼. CRAMER.
(Court of Errors and Appeals of New Jersey.
June 18, 1917.)
Banks ano Banking $=3ll6(2) — Notick to
Cashier as Notice to Bank.
Although cashier of bank discounting notes
knew that payee indorser was in danger of going
into receivershipi, he being an officer in that com-
pany, this did not prevent bank from becoming a
holder in due course, where cashier did. not know
of the outstanding contract with the payee for
which the note was given, and which the payee
failed to perform in part, and it was immaterial
that the payee went into the hands of a receiver
two days following the discounting of the note,
or that the cashier advised calling the meeting
for that purpose.
[Eld. Note.— For other cases, see Banks and
Banking, Cent. Dig. { 283.]
Appeal from Supreme Court.
Suit by the People's National Bank of Ta-
rantum, Pa., against WilUam E. Cramer.
Judgment for plaiutlfr, and defendant ap-
peals. Affirmed.
Joseph Beck Tyler, of Camden, for appel-
lant Grey & Archer, of Camden, for appel-
lee.
WHITE, J. This Is a suit upon a promis-
sory note given by the defendant appellant,
Cramer, as drawer, to the Fidelity Glass
Company, as payee, in payment for a carload
of glass bottles purchased and delivered,
which note was discounted prior to maturity
with the plaintifF respondent bank (the pro-
ceeds being duly placed to payee's creditX
and upon maturity was not i>ald. The de-
fense is that the csrload of glass bottles in
question was part of five carloads contracted
to be delivered by the payee to Cramer at a
fixed price; that the payee went into the
hands of a receiver, and the remaining four
carloads of the contract were never delivered,
so that Cramer was compelled to buy else-
where at a loss of more than the amount of
the note; that the bank Is chargeable with
this defense because its cashier, Crawford,
WAS given general authority by the directors
to discount notes, and did tn fact discount
this note ; that at the time he did so, which
was two days before the receiver was applied
for, he was also the treasurer and a member
of the board of directors of the payee. Fidel-
ity Glass Company, and as such knew that
that company had been losing money; that it
was going from bad to worse; that the man-
ager told him that It conld not fill Its exUt-
Ing contracts by reason of the advance In
cost of materials, etc. ; and that on the same
day he was told this, which was the day he
discounted the note, he advised the manager
to call a meeting of the board of directors of
the Fidelity Glass Company, at which meet-
ing It was decided to apply for a receiver.
Whether the payee was in fact Insolvent Is
uncertain. Under the receivership it paid
its creditors 92 cents on the dollar. The
learned trial Judge directed a verdict for the
plalntiCr for the full amount of the note, with
interest on the ground that the cashier
Crawford's knowledge of these facts was not
Impotable to the bank because he acquired it
not while acting for the bank, and because in
the transaction in which he was acting for
the bank his interests as an officer of the
payee, the Fidelity Glass Company, were
opposed to those of the bank.
Upon this view we express no opinion be-
cause we do not find It necessary to do so,
for the reason that, assuming that all the
knowledge which the cashier was proved to
possess was properly imputable to the bank
itself, the latter still became a holder for
value in due course without notice of the de-
fense here set up, because it is not shown that
the cashier, either as snch or as treasurer
and director of the Fidelity Glass Company,
knew of the outstanding contract with the
drawer, Cramer, for the other four carloads.
The evidence shows that the running of the
business of the Fidelity Glass Company was
in the hands of a manager, and in fact the
cashier testifies that he had no snch knowl-
edge, and he is not contradicted. Without
such knowledge It Is obvious that It made no
difference whatsoever to the bank's standing
as a holder for value in due course that It
knew the payee indorser of this note, given
for goods sold and delivered, was losing mon-
ey, was In a bad way, and In danger of hav-
ing to go Into the hands of a receiver. If it
were otherwise, much of the bank's useful-
ness In enabling people in financial difficulties
to avoid disaster would be destroyed.
The Judgment is affirmed.
(87 N. J. Eq. 387)
TH*rOW et al. v. RANDAI-.L et al. (No. 4S/1.)
(Court of Chancery of New Jersey. April 27,
1917.)
(SyUalus Iv the Court.)
1. EUjUITT €=204 — ^MiOTION TO StBIXK OdT
Bill.
A motion to strike out a bill is one substi-
tuted for, and takes the place of, a demurrer ia
the former practice, and is practically a de-
murrer.
[Ed. Note.— For other cases, see Equity, Cent.
Dig. ii 636-540.]
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N.JJ
TIPTON v^ BAXDAU.
2. PLEiiDiife <Ss>406(3)— Dbmvbbkb.
The general rule is that a party will not be
permitted to demur after he has pleaded to the
merits.
[Ed. Note.— For other cases, see Plesding,
Cent. Dig. { 1358.]
& ElQuiTT <8:»181— Dbcbei Pko Conibsso—
Motion to Stbikx.
Under the terms of an order striking out an
answer the defendants were granted leave to file
an amended answer within a given time, not to
demur. Within the time so limited the defend-
ants gave notice of a motion to strike out the
bill on various grounds; and, the time for filing
the amended answer having expired, the com-
plainants entered a decree pro confesso which
defendants now move to strike out as improvi-
dently entered, claiming that rule 75 of this
court (100 Atl. — — ) suspended the running of
the time to file an amended answer. Meli,
that as the motion to strike out the bill was
made after the defendants had submitted to an-
swer, which answer was struck out with leave
to file an amended answer, not to demur, the
motion to strike oat in lieu of demurrer is in-
efficadioas, and that the rule did not suspend
the time for filing an amended answer, and
that, consequently, the decree pro confesso was
properly entered and the motion to strike it
oat, for the reason relied on, must be denied.
[Bid. Note.— For other cases, see Equity, Cent
Dig. i 417.]
Bill by Arthur G. Tipton and others against
John Randall and others. Motion to strike
out decree pro confesso denied without preju-
dice.
William A. Ix)rd, o£ Orange, tor the mo-
tloD. Stirling D. Ward, of Newark, opposed.
WALKMI, Ch. The flies in this case sbow
that the defendants answered the complain-
ants' bUl, and that by an order made on
March 23, 1917, the answer was struck out
and defeadants given 10 days within which
to file an amended answer. Before the expi-
ration of that time defendants'' solicitor serv-
ed a notloe on complainants' solicitors of a
motion to strike out the bill of complaint on
various grounds, and claims that rule 79 of
this court suspends the running of the time
to file an amended answer. It does in terms,
but the question is as to whether or not the
rule applies at all In this case, under the given
Circumstances. And that depends upon
whether the defendants had a right to move
to strike out the bill after having submitted
to answer. The time for answering under
the order of March 23d expired on April 2d,
and, for want of an amended answer being
filed, the complainants' solicitors entered a
decree pro confesso on April 4th. Motion is
now made to strike ont the decree pro confes-
so as Improvidently entered, as a necessary
step precedent to arguing the motion to strike
■out the bUl.
[1] A motion to strike out a bill is one
Bubstltuted for, and takes the place of, a
demurrer in the former practice. It is prac-
tically a demurrer. This has been repeatedly
decided.
[2] The general nde is that a party will
not be permitted to demur after he has plead-
ed to the merits. 31 Cya 275. And demur-
rers come too late after the time limited for
filing them has expired. Id. p. 274. Under
the terms of the order to strike out the an-
swer, the defendants were given leave to file
an amended answer, not to demur. In Eng-
land a defendant demurring along to any bill
might do so within 12 days after his appear-
ance, and not afterwards. Dan. Ch. PL & Pr.
(6th Am. Ed.) *5&1. And a demurrer would
not be received after the 12 days without a
special order enlarging the time, and giving
leave to file it, and if by Inadvertence it was
received, it would, on applicatitxi of the
plaintiff, be taken off the flies. Id. *592.
[3] The question before me I regard as set-
tled in this state by the decision of the Ck>urt
of Errors and Appeals in Hand v. Hand, 60
N. J. Eq. 518, 46 Atl. 770, In which it was
held that a defendant who had failed to file
his pleadings within time and a decree pro
confesso had been entered against him could
not, tinder i>ermisslon to answer, file a de-
murrer to the Mil. The facts In that case
and the one at bar are not the same, but the
principle Is. There a decree pro confesso had
been entered before any defensive pleading
was filed, and the defendants applied for and
obtained an order opening the decree to al-
low them to file an answer In the cause.
Under this permission the defendants filed
an answer setting up Inter alia that the bill
was multifarious, and prayed the benefit of
such defense by way of demurrer, and the
court held (80 N. J. Eq. 621, 46 AO. 770) that
as the permission granted extended only to
answering the bill, they were limited to the
defense mentioned, and could put in no fur-
ther or other defense without leave of tiie
court
From the foregoing It follows that the mo-
tion to dismiss the bill In this case, made aft-
er the time for answering had expired and
when an answer already put in had been
overruled, with permission only to file an
amended answer, came too late, and the com-
plainants had a right to disregard It and en-
ter their decree pro confessq after the expi-
ration of the time limited for filing an amend-
ed answer. The motion to strike out the de-
cree pro confesso, on the ground that it was
improvidently entered, must therefore be de-
nied, with costa But this will be without
prejudice to an application to-op«i the de-
cree pro confesso for the purj>o8e of filing an
amended answer, if notice of such application
be given within 5 days.
A defendant coming In without unnecessary
delay after a decree pro confesso regularly
taken will, upon reasonable ground, be per-
mitted to answer upon payment of costs.
Dick. Ch. Prec. (Rev. Bd.) p. 34^ note (a).
See, also, Emery v. Downing, 18 N. J. Eq
61 ; Williamson t. Sykes, 13 N. 3. Eq. 182.
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101 ATLANTIC REPORTER
(Me.
(W N. J. Imw. tm
STATE V. MONETn. (No. 66.)
(Oonit of Errors and Appeals of New Jeney.
June 18, 1017.)
(Svllalnu iy tAe Court.)
Pebjust ^=»32(4) — Pebson ADiiiNunzBiNa
Oath— Paroi, Evidence.
Parol evidence that a certain person was
foreman of ttie grand jury and administered
the oath to defendant as such foreman at a ses-
sion of the grand jury is competent, on the trial
of an indictment for perjury before the grand
jury, as evidence that he was in fact such fbre-
man.
[Ed. Note.— For other cases, see Perjury, Cent.
IMk. i 111.]
Error to Supreme Court
Mollle Monettl was convicted of perjury,
and, from a Judgment of the Supreme Court
affirming the conviction, she brings error.
Judgment affirmed.
Anthony R. FinelU, of Newark, for plalntlfr
In error. J. Henry Harrison, of Newark, for
the State.
PER CURIAM. Plaintiff in error was con-
victed of perjury in falsely swearing be-
fore the grand jury of Essex county. At the
trial it was objected that there was no proof
of the administration of the oath to her by
any one competent to administer it The
clerk of the grand Jury was then caUed, and
testified that the oath was administered (giv-
ing its language) by one T. F. who was then
foreman of the grand Jury.
This was sufficient The question whether
perjury can be assigned upon an oath taken
before a de facto officer need not be consider-
ed. See Izer ▼. State, 77 Md. 110, 26 Aa
282. In this state there is a line of cases
holding that parol evidence that one is a
public officer, or that he was acting aa such.
Is prima fade evidence of his tenure of the
office without resort to bis written authority
so to act Denn ex dem. Lee v. Evaul, 1 N.
J. Law, 286; Denn v. Pond, 1 N. J. Law,
379; Stout V. H<9plng, 6 N. J. Law, 125;
Gratz V. Wilson, 6 N. J. Law, 419 (Justice of
United States Supreme Court); Brewster v.
Vail, 20 N. J. Law, 66, 38 Am. Dea 647
(sheriff) ; Cionover v. S<^omon, 20 N. J. Law,
296 (justice of the peace) ; Beeves v. Fergu-
son, 31 N. J. Law, 107 (overseer of the poor) ;
Vandegrift ▼. Meible, 66 N. J. Law, U6, 49
AU. 16 (official chemist) ; State t. RelLly, 88
N. J. Law, 108, 05 AU. 1005 UnsUce of the
peace). We see no reason for excepting a
foreman of the grand jury from the operation
of this rula There was no attempt to rebut
the evidence, but the court was asked to
direct an acqalttaL This was rightly de-
nied.
The other point argued in the brief (there
was no oral argument) relates to a por-
tion of the charge not challenged by any as-
signment of error or cause for reversal under
the statute, and therefore requires no con-
sideration.
The judgment of the Supreme Ourt affinn-
tng the conviction is affirmed.
cut He. tse)
STAIRS V. BANGOR POWER CO.
(Supreme Judicial Court of Maine. June 25,
1917.)
Entry, Warr of «=>23— Title ot PLAiwrnrr—
Deed of Relbabb.
On writ of entry seeking recovery of lands,
that plaintiff had deed of release to two strips
of land from one of two heirs at law of source
of title, and the strips so conveyed were ex-
pressly excepted in a deed made by source of
title, sufficiently shows title in plaintiff to such
strips to entitle him to a judgment against the
defendant for the fractional portion of both
strips upon which defendant's dam encroaches.
[Ed. Note.— For other cases, see Entry, Writ
of, Cent Dig. {J 48-^0.]
Report from Supreme Judicial Court, Pen-
obscot County, at Law.
Writ of entty by James H. Stairs against
the Bangor Power C!ompany. On report
from the Snpreme Judicial Court Penobscot
County. Judgment for plaintiff.
Argued before SAVAGE, O. J., and COR-
NISH, KING, BIRD, HALEY, and PHIL-
BROOK, JJ,
Morse & Cook, of Bangor, for plaintiff.
Ryder & SlmpscHi, of Bangor, and Charles
J. Dunn, of Orono, for defendant
BIRD, J. The plaintiff by this writ of
entry seeks the recovery of land described as
follows: Commencing at the thread of the
northerly branch of Pushaw stream, so called,
at a point where the thread of said stream
intersects the thread of the Stillwater branch
of the Penobscot river; thence northwest-
erly up the thread of said Pushaw stream
about 20 rods to a point where the south^'ly
line of land formerly owned by Frank Lan-
caster Intersects the thread of said stream:
thence westerly on the southerly line of
said Frank Lancaster's land to the Bennoch
road, so called ; thence southerly along said
Bennodi road to Oilman Falls avenue;
thence easterly along said Oilman Falls
avenue to the thread of the Stillwater brandi
of the Penobscot river; thence northeasteriy
along the thread of said Stillwater branch of
the Penobscot river to the point of beginning.
The defendant pleaded the general issue
and, by way of brief statement:
"That it claims and was in possession of only
a part of the premises described in plaintiff's
writ when said action was commenced, vis. a
strip of land one rod in width on the west side
of Pushaw stream and the Stillwater branch of
the Penobscot river extending along the south-
erly line of land formerly owned by Frank Ian-
caster as alleged in plaintifTs writ to Gilmaa
Falls avenue, so called. Said defendant further
says that it was not on the day of the date
of plaintiff's writ and never since has been, and
is not now, tenant of the freehold in, or in pos-
session of so much of the premises deseribea in
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STAIRS T. BANGOR POWER CX>.
207
plaintiff's writ aa liea Ureal ot a strip of land one
rod in width on the west side of Pusbaw stream
and Stillwater branch of the Penobscot river
extending from the southerly line of land for-
merly owned by Frank Lancaster as alleged in
plaintiffs writ to Gilman Falls avenue, so
caUed."
The case Is reported to the Law Court up-
on so mocta of the evidence as is legally ad-
missible; "that conrt to determine all the
rights of the parties and order final Judg-
ment"
The following sketch Illustrates the loca-
tion:
It is admitted:
"That on the 1st day of .Jannary. 1846, Daniel
White, deceased, was tiie owner in fee simple
of 66 andivided lOOths part of the land describ-
ed in the plaintiSTs writ, and John Bennoch, de-
ceased, was the owner in fee simple of 35 un-
divided lOOtha part at said land. The above
admission is not to preclude either party from
introducinK deeds for the purpose of construc-
tion only.
TTie primriples of law involved are, if not
elementary, -amply established by authority.
The questions to be determined are ques-
tions of fact Tbey are stated by defendant
to be:
"(1) What is the main branch of Pusbaw
stream ? (2) The plaintiff has shown title to the
land described in his declaration in two ways ;
by title deeds, and again by adverse posaesaion."
To discuss ezteosivelx the evldetice upon
«ltber of these two points would be profitless.
The court concludes, upon the evidence af-
forded by the plan of 1805, the construction of
the deeds offered and admitted and the oral
evidence Including that of the engineers that
the main Pushaw stream extended to the
south end of the Island, which lies south of
Irving Point, and that the mouth of Pushaw
river referred to In the deeds is the mouth
between the south end of the Island and a
point on the west bank of the river north-
easterly of Pushaw road, or Gilman Fall^
avenue, as otherwise called, and not the
mouth north of the island, aa claimed by
plalnticr, which the court concludes was arti-
ficially formed.
The plaintiff claims title by sundry mesne
conveyances from Daniel White and John
Bennoch through Alexander Gray and his
grantee, Richard Lancaster. We do not find
the plaintiff's contention supported by the
deeds. He also claims title by adverse pos-
session, but the acts relied upon to show
open, notorious, exclusive, and uninterrupted-
ly continuous possession for the requisite
period are not in the opinion of the court,
siifflclent to give title by adverse possession.
Roberts v. Richards, 84 Me. 1, 24 Atl. 425.
Plaintiff shows no title to the island or the
strips of land along the Stillwater river or
Pushaw stream, either by deeds above con-
sidered or by adverse possession. Derby v,
Jones, 27 Me. 357, 362.
The plaintiff, however, offers the deed of
release of William H. White, one of the two
heirs at law of Daniel White, deceased, "of
a strip of land one rod in width upon Still-
water stream and a strip of land one rod In
width on Pushaw stream from the mouth of
the same," to a point several rods norther-
ly of the Island. The strips so conveyed were
expressly excepted In the deed of Daniel
White and John Bennoch to Alexander Gray.
The plaintiff therefore shows title to .32%
In common and undivided of the strips, one
rod in width, on both Pushaw stream and
Stillwater river, but no tlOe to the "island."
The defendant's dam encroaches' upon both
these strips, and plaintiff is entitled to Judg-
Inent against It for such fractional proportion
of both strips.
Judgment for plaintiff for .321^ In common
and undivided of a strip of land one rod
in width upon the westerly side of Pushaw
stream from the south line of land of Flrank
Lancaster to a point on the westerly side
of Pushaw stream, southwest of the south
point of the "island," and .32^,^ in common
and undivided of a strip of land one rod In
width on the westerly side of Stillwater river
from the northerly point of the "Island" to
Gilman Falls avenue.
So ordered.
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208
101 ATLANTIC RBPORTBB
CM&
(US Ha. MO)
KTATB T. DAVIS.
(Supreme Jadidal Conrt ot Maine. Jnne 29,
1917.)
1. Crtminai. Law <&=3l091(7) — Appeal —
Bill of Exceptions — Sufficiency.
Where a bill of exceptions in a criminal ap-
peal iras silent as to Uie allegation that the ju-
ry were allowed to separate, such ground of ex-
ception will not be considered, although the
transcript of the evidence which is made a part
of the bill shows the irregularity.
[Ed. Note. — For other cases, see Criminal
Law, Cent Dig. §§ 2815, 2831.]
2. CBmiNAL Law ©=5901— Appeal— Waiver
OP ExcEPTiow— Motion fob New Trial.
A motion for new trial in a criminal prose-
cution waives exceptions to refusal to direct a
verdict of not guilty.
[Ed. Note.— For other cases, see Criminal
Law, Cent. Dig. f 2124.]
3. Criminal Law iS=»068(8)— Motion in Ar-
rest OF Judouent — Verdict Against Law
AND Evidence.
A motion in arrest of judgment in a criminal
prosecution cannot be maintained upon the
ground that the verdict is against law and evi-
doice, and, like a demurrer, such motion ad-
dresses Itself to the record alone, which docs
not include the evidence.
[Ed. Note.— For other cases, see Criminal
Law, Cent Dig. { 2437.]
4. CRnnNAL Law «=>753(2)— Dibeotiho Vkb-
DicT OF Not Guilty.
Where the evidence in a criminal prosecution
ia so defective or weak that a verdict of ^ilty
based upon it cannot be sustained, a verdict of
not guilty should be directed, and a refusal to
do so constitutes a valid ground of exception.
[Ed. Note. — For other cases, see Criminal
Law, Cent Dig. iS 1727, 1729.]
Exceptions from Superior Court, Cumber-
land County.
W. Ci Davis was convicted of crime, and
brings exceptions. Exceptions sustained.
Argued before CORNISH, KING, BIRD,
HALEY, HANSON, PHILBBOOK, and MAD-
IGAN, JJ.
Jacob H. Herman, Co. Atl7.> of Portland,
for the State. Henry C. Sullivan, of Port-
land, for respondent.
BIRD, J. The Indictment In tbl« case
charges the defendant with violation of R.
5. 1903, a 119, I 16, punishable by imprison-
ment for any term of years. At the close of
the evidence at the trial a motion was made
for the direction of a verdict for defendant,
which was refused. After verdict of guilty,
the defendant moved in arrest of Judgment,
because:
(1) "The indictment does not allege or set
forth any substantive crime;" (2) "because the
indictment does not set forth or allege any facts
suflSdent to constitute the substantive crime,"
etc.; (3) "because the verdict is against the law
and the evidence."
Tbia motion was also overruled.
The bill of exceptions, upon which alone
the case is before this court, sets out the
two motions, their refusal and the reserving
of exceptions thereto. It concludes:
"The report of the evidence given at said trial,
which is filed herewith, is hereby expressly re-
fo-red to and made part of this Un ot viceft'
tions.
"To all which rulings and instructions and
refusals to instruct the said respondent excepts,
and prays that his exceptions may be allowed.
[1] The defendant urges that during the
trial the jury were allowed to separate (but
to this order of the court no objection ap-
pears to hare been made nor exception noted),
and that his exceptions should be allowed
upon this ground. This alleged irregularity
In the course of the trial, assuming it can
be reached by exceptions, cannot be consid-
ered. The bill of exceptions is entirely silent
as to any such ground. Such a bill of ex
ceptlons la insufficient, even when the tran-
script of the evidence Is made part of the
bill and the transcript shows the Irregularity.
McKown V. Powers, 86 Me. 291, 29 Atl. 1079 ;
Richardson v. Wood, 113 Me. 328, 330, 93 Atl.
836; Borders y. B. ft M. R. R., 115 Me. 207,
98 Ati. 662.
[2, 3] The defendant at the close of the evi-
dence asked a directed verdict, as already
seen. The request was refused, and defend-
ant reserved exceptions. After verdict, he
moved in arrest of judgment for alleged de-
fects in the indictment and because the ver-
dict was against the law and the evidence.
The exceptions to the denial of the motion
in arrest by reason of defects in the Indict-
ment Is not argued. If the last or third rea-
son alleged can be ground for a motion In
arrest, it precludes the consideration of the
exceptions to the refusal to direct a verdict,
as it is in effect a motion for new triaL The
motion waives the exceptions. State t. Simp-
son, 113 Me. 27, 92 Atl. 896. But a motion
for arrest of judgment cannot be maintained
upon the ground that the verdict is against
law and evidence. Like a demurrer, a mo-
tion in arrest addresses itself to the record
alone, and evidence is no part of the record.
We conclude, therefore, that the motion In
arrest In this case is not for these reasons
to be treated as a motion for new trial, and
thus bring the case within the rule of State y.
Simpson, supra.
[4] Upon a careful reading of the evidence,
the unpleasant details of which It is undesir-
able and unnecessary to rehearse, it is the
opinion of the court that the exceptions to-
the refusal to order a verdict, as moved by
defendant, be sustained. 'Bsm evldoioe ia
not such as warranted a verdict of guilty.
When the evidence in support of a criminal
prosecution is so defective or so weak that a
verdict of guilty based upon it cannot be
sustained, the Jury should be instructed t»
return a verdict of not goilty. A refusal
to so Instruct is a valid ground of exception.
State y. Cady, 82 Me. 426, 428, 19 AU. 908;.
State y. Simpson, 113 Me. 27, 28, 02 AtL 898:
Mlckle y. United States, 157 Fed. 229, 84 C.
C. A. 672. See, also, Whar. Cr. PL & Pr. (8th-
Ed.) ! 812.
The exceptions are sustained.
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DIONNE ▼. AMERICAN EXPRESS CO.
20O
(»1 Vt. 521)
DIONNE T. AMERICAN EXPBESS 00.
(Supreme Court of Vermont. Caledtmia. July
2, 1917.)
1. Cabbiebs *=>177(3)— Loss of Goods— Lia-
BILTTT— INTKBSTATB SHIFIGBNI^-RECEIFT OB
Bill or Lading.
A carrier accepting eoods for interstate ship-
ment is liable for their loss, though in violation
of Hepburn Act June 29 1906, c. 3591, 34
Stat. 584, no receipt or bill of lading was is-
sued, and though Interstate Commerce Act Feb.
4, 1887, c. 104, 24 Stat. 379 (U. S. Comp.
St. 1916, t 8574), of which the Hepburn Act is
amendatory, by section 10, imposes penalty on
the carrier for noncompliance with its require-
ments.
lEd. Note.— For other cases, see Carriers,
Cent. Dig. t§ 779-789.]
2. Casbuebs 9=3134 — Acceptance or Goods
roR Shipment — Question fob Jubt.
Relative to carrier's liability for loss of
goods at station before shipment, evidence held
sufBcient to go to jury as to delivery and accept-
ance thereof for shipment as soon aa practicable
in the usual course of busineBs, rather than to
await future orders.
[Ed. Note.— For other cases, see Carriers,
Cent. Dig. §§ 588-592, 607.]
3. Cabbiebs ^xs>ltS — Acceptance of Goods
FOB Shipment— Liability fob Loss.
A carrier having accepted goods for shipment
as soon as practicable in the usual course of
business, and not to await further orders, and
having placed them in the station for its own
convenience, its liability as carrier for their loss
commenced at once.
[Ed. Note.— For other cases, see Carriers,
Cent Dig. i§ 100, 101, 608-620.]
4. Witnesses 9=3287(3)— Redibeot Examina-
tion—Reason fob Act Shown on Cbobs-
Examjnatxon.
Defendant having on cross-examination of
plaintiff shown plaintiffs omission to do an im-
material thing, ask for receipt for goods deliv-
ered for shipment, permitting plaintiff on re-
clirect to give the reason therefor was not error.
[Ed. Note.— For other cases, see Witnesses,
Cent. Dig. § 1001.]
6. Witnesses «=3372(1) — Showing Intkbest
and Feeling — Discbetion of Coubt.
Permitting plaintiff, for the purpose of show-
ing the interest and feeling of defendant's wit-
ueBa E., to pursue a line of cross-ezamination of
E. tending to show he went to the station to
meet the train on which plaintiff's witnesses
came, and said to R., one of them, that ha
thought perhaps he would not know where to go,
and that he would come down and tell him, and
^at he took him to the office of defendant's
counsel, and in this connection to show by R.
that when E. met him he spoke of wanting to
find plaintiff's counsel, and E. took him to the
office of defendant's counsel, was within the dis-
cretion of the trial court.
[EJd. Note.— For other cases, see Witnesses,
Cent. Dig. S! 1102, 1197, 1199.]
6. Evidence «=9H1— Acceptance or Goods
FOB Shipment — Custom of Agent.
On the issue whether or not defendant's
agent accepted goods for transportation, though
be did not issue a receipt, exclusion of evi-
dence under defendant's offer to show by him
that he never accepted matter for transporta-
tion without issuing a receipt was proper.
[Ed. Note.— For other cases, see Evidence,
Cent Dig. S{ 247-253.]
7. Cabbiebs ®=341 — Acceptance of Goods
fob Shipment — Instbucttons to Agent.
There can be an acceptance by a carrier's
agent of goods for shipment binding on it, as re-
gards liability for their loss, though no receipt
is issued therefor, notwithstanding book of in-
structions issued by carrier to employes requir-
ing a receipt to be given for goods when re-
ceived.
[Ed. Note.— For other cases, see Carriers,
Cent Dig. {{ 102-106.]
8. WiTNESSia «=>414(1) — Cobbobobation —
Rules or Emfloteb.
Book of instructions issued by carrier to
employes not only requiring a receipt to be given
for goods received for shipment, but forbidding
acceptance of goods to be held for further in-
structions, have no tendency to increase proba-
bility of truth of testimony of carrier's agent
that goods which were received, and for which
no receipt was given, were received to await
further instructions, and not for immediate ship-
ment, as claimed by shipper, and so are inadmis-
sible.
[Ed. Note.— For other cases, see Witnesses,
Cent. Dig. | 1287.]
9. Cabbiebs ®=3l37 — Loss of Goods — In-
stbucttons.
Instructing in action for loss of goods burn-
ed, in which the issue was whether defendant ac-
cepted them for immediate shipment or received
them to await further orders, and in which there
was no evidence or suggestion that the fire was
due to defendant's want of care, after stating
that its liability as carrier was that of an in-
surer, that if they were held that something fur-
ther might be done, defendant's liability would
be that of a warehouseman, which is not liable
for anything more than the exercise of ordinary
care, without stating further that a warehouse-
man is not liable for loss by a fire occurring
without its fault did not harm defendant
[Ed. Note.— For other cases, see Carriers,
Cent Dig. Si 694, 696.]
Exceptions from Caledonia County Court;
Zed S. Stanton, Judge.
Action on the case by Theresa M. Dlonne
against the American Express Company, with
plea of general Issue. Verdict for plalntUf,
and defendant brings exceptions. Affirmed.
Argued before MUNSON, C. J., and WAT-
SON, HASEI/TON, POWERS, and TAY-
LOR, JJ.
Porter, Witters & Harvey, of St Johnsbury,
for plaintiff. iSimonds, Searles & Graves,
of St Johnsbury, for defendant
MUNSON, C. J. The plaintiff seeks to
recover the value of a box of merchandise
which was destroyed by the Are which burn-
ed the raUroad station at Sheldon Junction
in the night of the 7th of September, 1914.
The box was left on the station platform in
the afternoon of that day, for shipment to
Plattsburg, N. Y., shortly before the arrival
of the 3:18 train for St Albans. Another
train carrying express left for St Albans at
825 p. m. The evidence was conflicting as
to what passed between the plaintiff and de-
fendant's agent regarding the shipment. No
receipt or bill of lading or other memorandum
of contract was Issued by the agent The de-
fendant moved unsuccessfully for the direc-
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210
101 ATIANTIO REPOETBE
(Vt
tlon of a verdict on several grounds, of
which the only one argued is the want of a
rec-elpt or bill of lading.
|1] The Hepburn Act, so called, enacted
June 29. 1906, In amendment of the Inter-
state (Jonimerce Act of February 4, 1887, pro-
^!des:
"That any common carrier, railroad, or trans-
portation compauy receiving property for trans-
portation from a point in one state to a iK>iut in
another state shall issue a receipt or bill of lad-
ing tliercfor and shall be liable to the lawful
holder thereof for any loss, damage, or injury to
such property caused by it. • ♦ * "
Section 10 of the act of 1887 provides for
the punishment by fine of any common car-
rier, and in the case of a corporation, of any
officer, agent or person acting for such cor-
poration, who shall willfully do or permit
Anything in this act prohibited or declared
to be unlawful, or "shall willfully omit or
fall to do any act, matter, or thing in this
act required to be done. * • * " The de-
fendant claims that these provisions require
that any acceptance of goods for transporta-
tion without the issuance of a receipt or bill
of lading be treated as the act of the carrier's
servant, and not as the act of the carrier,
and cites in support of this view the state-
ment In section 11 of Story on Agency that:
"Although a person may do an unlawful act, it
is clear that he cannot delegate authority to an-
other person to do it."
The enactment which includes this provi-
sion Is a regulation of the interstate business
of common carriers, and penalties are imposed
on the carrier to secure its compliance with
the law. The general purpose of the statute
is the protection of the public. No duty Is
Imposed on the sbipi>cr in connection with
the shipment of bis goods. The acceptance
of the goods for transportation without issu-
ing a receipt or bill of lading therefor is
Illegal only as to one of the 'parties. The
transportation of goods upon tendering to
the carrier Its proper charges is, as regards
Its own line, a service which the shipper Is
entitled to as of right, and not a matter
depending upon negotiation and agreement.
In assuming the extended liability for ship-
ments over connecting lines under the pro-
visions of this stntute, the nature of the
carrier's relation to the public remains the
same. The rules which determine the legali-
ty of ordinary contract undertakings are not
applicable.
The effect of this statute was considered In
Morrison Grain Co. v. Mo. Pac. R. R. Co.,
182 Mo. App. 339, 170 S. W. 404, and there
it was said:
"If the carrier chose to accept and begin the
transportation of goods without issuing a bill of
ladini!. it would be violating the act referred to,
but the relation of shipper and carrier would ex-
ist none the less."
In International Watch Co. v. Delaware,
etc., R. Co., 80 N. J. Law, 553, 78 Ati. 49, It
-was chiluuHl that this provision did not Im-
,pose a liability upon the initial carrier unless
such carrier should issue a receipt or bUl
of lading for the property received, and tht>
court characterized the claim in this lan-
guage:
"This contention in substance is that, although
the defendant upon receipt of these goods for
shipment failed in its duty to issue a receipt or
bill of lading therefor, it, by reason of soch
failure, escaped the liability which wonld have
rested upon it had it performed its statutory
duty."
We think it cannot be said that there can
be no acceptance for shipment by the agent
binding upon the company unless a receipt or
bill of lading Is given. So It will be neces-
sary to examine the evidence bearing upon
this point
A truckman testlfled that he took a box
for the plaintiff from the fair ground to the
station, and left it on the station platform.
The plaintiff testlfled that the box contain-
ing the goods sued for was about ten feet
long and eight feet wide; that she put tags
on an end and side containing the direction
"Plattsburg, N. Y., sent by American Ex-
press" ; that the lx>x vma on a truck at the
station when she got there sbftrtly before 3
o'clock ; that the express agent was stand-
ing near it, and she spoke to him about it,
and he said he would attend to it; that be
told her he did not have time to get it off on
that train, and she asked hiro If he would
change the address if she should phone blm
to do it when she got to St Albans, and he
said he would ; that she did not so phone ;
that the agent did not ask her to pay charges,
and she did not ask for a receipt. The ex-
press agent testified that the plaintiff came
to the station that afternoon and told him
she would have a shipment going either to
Flattsburg or St Johnsbury, and that she
would give him Instructions the following
day, by telephone or letter, whleh place she
would ship to, and said nothing else; that
he told her he could not do anything for her
at that time; that be did not see her box,
and she did not tell him where it was ; that
she did not ask whether the box could go on
that train; that he did not weigh the box.
nor make out a waybill for it and did not
accept any box for dilpment ; that after the
Are you could see from some of the stuff
where the box had been; that he and bis
helpers took Into the station the boxes that
were burned there.
[2, 3] This evidence tended to show the
delivery and acceptance of the plaintlfTs
goods, to be shipped as soon as practicable in
the usual course of business. For anything
that appears they might have been shlpx>ecl
by the evening train. Instead of being left In
the station where they were destroyed. If
placed in the station solely for the defend-
ant's convenience, and not to await further
orders, as the plaintiff's testimony tended to
show, the defendant's liability as a carrier
connnonced nt once, and the loss falls on
the defendant.
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DIONNE y. AMERICAN EXPRESS CO.
211
So tbere was a case for tbe Jury, and the
motion for a verdict was properly overruled.
[4] Defendant's counsel drew from the
plaintiff on cross-exanal nation tbe fact tbat
she did not ask for a receipt. Her counsel
was permitted to ask her In redirect exami-
nation why sbe did not, and she said it was
because he was busy and she knew that he
could not weigh the box and give the receipt.
This was not error. Moreover, the answer
was harmless ; for both tbe fact and the ex-
planation were immaterial.
[8] During tbe cross-examination of the ex-
press agent, and for tbe purpose of showing
the interest and feeling of the witness, plain-
tiff's counsel was permitted to pursue a line
of Inquiry which tended to show that the wit-
ness went to the station to meet the train on
which the plaintiff's witnesses came In, and
said to Rice, tbe truckman, that he thought
perhaps he would not know where to go, and
that he would come down and tell him, and
thereupon took him to the office of defend-
ant's counsel. In connection with this, plain-
tiff's counsel was permitted to show by Rice
that when tbe express agent met him witness
spoke of wanting to find plaintiff's counsel,
and that the agent took him to the office of
defendant's counsel. This was a matter en-
tirely within the discretion of tbe trial court.
[•] Tbe defendant offered to show by the
agent "that be never accepted express mat-
ter for transportation without issuing a re-
ceipt for the same to the shipper or the agent
of the shipper," and the evidence was ex-
cluded. The .fudges are agreed in saying that
the exclusion was proper on the case present-
ed. It Is considered by a majority that this
was no more than an offer to show the
station agent's custom or business habit, and
that under our cases this was inadmissible.
Scott V. Bailey, 73 Vt. 49, 50 Atl. 557; Aiken
V. Kennlson, 58 Vt. 665, 6 AtL 757; Clark
V. Smith, 72 Vt. 138, 47 Atl. 391; State v.
Wilklns, 66 Vt. 1, 28 Atl. 323. See, further,
Lucia v. Meedi, 68 Vt. 175, 179. 34 Atl. 695 ;
Ware v. Chllds, 82 Vt 359, 73 Atl. 994 ; Russ
V. Good, 90 Vt. 236. 97 Atl. 987.
[7,1] Tbe defendant offered certain in-
stmctions contained in a book of rules and
instructions issued by the defendant for tbe
guidance and use of its employes only, which
instructions forbade the acceptance of any
shipment offered for transportation with a
request that It be held for further Instruct
tions, and required that a receipt be given
for every article at the time it was received,
whether asked for or not, and required fur-
ther that a shipment be refused if the sblp-
l>er refused to accept the receipt, or If, when
.shipment was called for, tbere was no one
present to accept a receipt These Instruc-
tions were offered: First, to show that the
agent could not bind the company by accept-
ing the box without giving a receipt; and,
second, to corroborate the agent's testimony
that he did not accept the plaintiff's box for
shipment Tbe evidence was excluded, and
an exception allowed on each ground. The
first point is sufficiently covered by what has
already been said. We treat the second of
these exceptions as having reference to all
the agent's testimony bearing upon the ques-
tion of acceptance, and not simply to his
answer corresponding to tbe terms of the
offer.
When there is a question whether some do-
ty required by a rule or regulation has been
done, the rule or regulation Is received bt
evidence as t«iding to Increase the probabil-
ity that the thing required was done. Tbere
is no question here as to what tbe agent did
with the plaintiff's box. He did not send it
on the 8:25 train, but put It In the station.
So this is not the case of evidence offered in
corroboration of a claim tbat a certain spe-
cific act was done. The issue depended npoa
the quality of the act done, and its qualit7
was not to be determined by the agent's in-
tention or understanding, but from a consid-
eration of the attending statements and cir-
cumstances. If the plaintiff's testimony is
correct the box was ready for shipment on
tbe evening train. If the agent's testimony
is correct, it was held to await instructions
to be sent the following day. So if the rules
were admissible here, they were admissible
as Increasing the probability that the agent's
version of what passed between him and the
plaintiff was true. But the rule did not have
that tendency, as it forbade acceptance for
the purpose testified to by the agent.
[9] Early In the introduction of the de-
fense counsel Indicated their claim tbat tbe
defendant could be held liable only as a
warehouseman, and one ground of the mo-
tion for a verdict was that there was no evi-
dence that tbe goods were delivered to and
accepted by the defendant In any other ca-
pacity than as a warehouseman. The de-
fendant requested Instructions to the effect
tbat, if the goods were held at the request
of the plaintiff in order tbat something fur-
ther might be done to prepare them for trans-
portation or to await further orders before
shipment tbe defendant's liability during
the detention was only that of a warehouse-
man, and that a warehouseman is not liable
for a loss by fire which occurs vrlthout bis
fanlt or neglect There was no evidence or
suggestion during the trial tbat the fire vras
due to any want of care on the part of the
defendant. The court charged. In substance,
that the llaUllty of tbe defendant as a com-
mon carrier was tbat of an insurer of tbe
safety of the goods, but that, if the goods were
held after delivery for the accommodation
of tbe plaintiff, tbat something further might
be done, the liability of the defendant during
such detention would be that of a warehouse-
man only, and that a warehouseman is not
liable for anything more than an exercise of
ordinary care. The court went no further;
and the defendant claims tbat the failure
to instruct the Jury that a warehouseman
is not liable for loss by a fire which occurs
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212
101 ATLANTIC RBPOBTBB
(N.H.
without his fault was a serious error. The
court might well have presented the matter
more fully, but we think the defendant has
not been harmed by the Incompleteness oom-
plained of.
Judgment affirmed.
<T8 N. H. 4SS)
GAGNE V. MASSACHUSETTS BONDING A
INS. CO.
(Supreme Court of New Hampshire. Cooa.
June 5, 1917.)
1. IlTBTTRANCZ: ®=>130(5)— ACCEFTAITCR or Poi>
lOT— Presumption .
In the absence of fraud, one who accepts an
insurance policy is presumed to know the terms,
conditions, and limitations therein contained.
[Ed. Note. — For other cases, see Insurance,
Cent Dig. a 222-224, 229, 230.]
2. Insubance ^=»3SS(2) — SioK Benbtitb— Rb-
COVEBT CNDEB POUCT.
Under a policy following Laws 1913, c. 228,
I 3, Bubsec. 3, (C) 3, and providing that, "if de-
fault be made in the payment of the agreed pre-
mium for this policy, the subsequent acceptance
of a premium • • • shall reinstate the poli-
cy only to cover, • • • such sickness as may
begin more than 10 days after the date of such
acceptance," insured could not recover by virtue
of a premium payment made October 27th, for
an illness beginning October 25th, without show-
ing a new contract creating such liability.
[Ed. Note. — For other cases, see Insurance,
Cent. Dig. { 933.]
Exceptions from Superior Court, Coos
County; Chamberlln, Judge.
Assumpsit on insurance policy by John
Oa«ne against the Massachusetts Bonding &
Insurance Company to recover for sick bene-
flt& Upon an agreed statement of facta, the
court pro forma found a verdict for the plain-
tiff, and defendants except Exceptions sus-
tained, and Judgment for defendants.
Ovlde J. Coulombe, ot Berlin, for plaintiff.
Goes & James, of Berlin (W. W. James, of
Berlin, orally), for defendant
PARSONS, O. J. By its terms the policy
expired on the 1st day of June, 1915, but
was renewable from month to month at the
election of the company by the payment of a
monthly premium of $1.65 on or before the
1st day of eadi month expiring In all cases
upon the 1st of the month. If not renewed.
The plaintiff paid the premium due Septem-
ber Ist, but did not pay the October premlvun
until October 27th, two days after his Illness
began, October 25th. He was Insured against
disability resulting from Illness which is
contracted and begins during the life of the
policy. As the policy was not in force when
the illness began for which sick beneflts are
claimed, unless the payment and acceptance
October 27th of the monthly premium for Oc-
tober restored the policy and gave It life
from October Ist, the plaintiff cannot recov-
er. The effect of such payment and accept-
ance depends upon the agreement or under-
standing of the parties. It is to be given
the effect they agreed It should have. The
policy provided that:
"If default be made in the payment of the
agreed premium for this policy, the subsequent
acceptance of a premium • • • shall rein-
state the policy, but only to cover accidental in-
jury thereafter sustained and such sickness as
may begin more than ten days after the date of
such acceptance."
[1 , 2] In this provLslon the policy follows
the statute. Laws 1913, c. 226, 1 3, subsec. 3,
(C) 3. In the absence of fraud, one who ac-
cepts a policy of Insurance is presumed to
have knowledge of the terms, ctmdltions, and
limitations therein contained. Johnson v.
Casualty Co., 73 N. H. 259, 60 Atl. 1009, 111
Am. St Rep. 609. In a suit on the contract
the plaintiff must recover according to Its
terms. Anderson v. .SItna Life Ins. Co., 75
N. H. 375, 377, 74 Atl. 1051. (Recovery, there-
fore, cannot be had for an illness beginning
October 25th by virtue of a premium pay-
ment October 27th by the terms of the writ-
ten contract To recover, the plaintiff must
show a new contract creating such llabUlty,
— one establishing such liability by express
terms, or by implication from circumstances,
or by estoppel. The only evidence offered is
the payment and acceptance of the July pre-
mium on July 16th, and ot the August premi-
um (« August 13th. But there is no evidence
that either of these premiums were paid or
accepted, except in accordance with the terms
of the policy and the statute, or that the
plaintiff understood otherwise. The facts
stated falling to establish liability, the ver-
dict ordered is set aside.
Exception sustained. Judgment for the de-
fendants. All concurred.
(78 N. H. OS)
THOMPSON ft NESMITH v. MANCHES-
TER TRACTION, LIGHT &
POWER CO.
(Supreme Court of New Hampshire. Merri-
mack. June 5, 19170
1. Eminbnt Domain «=>17— CoHDmmATiow
OF Flowaoe Rights.
Public Service Commission Act (Laws 1911,
C. 104) § 13d, giving railroads and public utili-
ties the right to petition the Public Service Com-
mission to take lands needed for the construc-
tion of a Une, branch line, extension or pipe
line, conduit, line of poles, etc., to meet the rea-
sonable requirements of service to the public,
does not give public utilities the power to secure
flowage rights by eminent domain, though the
words "rights and easements" and "land" in the
statute makes it broad enough to include flowage
rights.
[Ed. Note.— For other cases, see Eminent Do-
main, Cent Dig. H 6, 90.]
2. Eminent Domain is=»13— Taking of Pbop-
EBTY FOR PRIVATB USES.
Private property cannot be taken by eminent
domain for private uses.
[Ed. Note. — For other cases, see Eminent Do-
main, Cent Dig. §§ 51-53.]
^s^ror other cues ■«« «am« topic and KEY-NUMBER in all Key-Numbered Dlgesti and Indoxw
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N.H^ THOMPSON & XESMITH ▼. MANCHESTER TRACTIOK, li. <fe P. 00.
213
3. Watims and Wateb Cotjbsbs «=>163 —
Flowage Act — Supebsession bt Pubuo
Service Commission Act.
The Public Service Commission Act, { 13d,
giving railroads and public utilities the right to
petition the Public Service Commission to take
lands needed for the construction of a line,
branch line, extension or pipe line, conduit, line
of poles, etc to meet the reasonable require-
ments of service to the public, not conferring
on public utilities the power to acquire flowage
rights by eminent domain, does not supersede
the Flowage Act (Pub. St 1901, c. 142).
[Ed. Note.— For other cases, see Waters and
Water Courses, Cent. Dig. { 208.]
Transferred from Superior Court, Merri-
mack County; Sawyer, Judge.
PetlUon, under Pub. St. 1901, c 142, by
Albert Thompeon and Mary B. Nesmitb,
against the Mandiester Traction, Llgbt &
Power Company, to assess damages caused
by flowing lands. On transfer without rul-
ing. Petition of plaintiffs ordered to stand
for trial In accordance with the agreement
of transfer, and case discharged.
Petition imder chapter 142 of the Public
Statutes to assess the damages caused to the
plaintiffs by flowing their land by the defend-
ants. The petition coming on for hearing,
the defendants represented that they had
filed a petition with the Public Service Com-
mission imder chapter 164 of the Laws of
1911 and amendments thereto, to acquire as
against the plaintiffs certain rights of flow-
age or easements necessary to the mainte-
nance of certain dashboards to be used
on their dam, and for a necessary extension
of their plant and works. The defendants
filed a plea and motion, claiming that the
proceedings before the Public Service Com-
mission, under chapter 164 of the Laws of
1911, and The amendments thereto, super-
sede the proceedings begun by the plain-
tiffs under the flowage act, and requested
the court so to rule, and to continue the peti-
tion under the flowage act until the final
determination of the petition of the defend-
ants before the Public Service Commission.
The case was transferred without ruling,
upon the agreement that, if the provisions
of chapter 164 of the Laws of 1911 supersede
chapter 142 of the Public Statutes for the
determination of the value of the rights and
easements referred to under the circumstanc-
es In this case, the defendants' motion shall
be granted; if not, then this case shall
stand for trial In its order.
Robert W. Upton, of Concord, for plain-
tiffs. Streeter, Demond, Woodworth & Sullo-
way, of Concord, and Jones, Warren, Wil-
son & Manning, of Mancheater, for defend-
ants.
PLUMMBR, J. The defendants contend
that they are entitled to acquire flowage
rights under section 13d of chapter 164
of the Laws of 1911, and that the Flowage
Act (P. S. c. 142) respecting public utilities
is thereby superseded. This section whidi
was not changed by amendments made in
1913, provides that:
"Whenever it is necessary, in order to meet
the reasonable requirements of service to the
public that any railroad corporation or public
utility subject to supervision under this act
should construct a line, branch line, extension
or a pipe line, ccmduit, line of poles, towers or
wires across the land of any other person or cor-
poration, or should acquire land for necessary
extension of any plant or works operated by
such railroad corporation or public utility, and
such railroad corporation or public utility can-
not agree with the owner or owners of such
land as to the necessity or tlie price to be paid
therefor, such railroad corporation or public
utility may petition the commission for such
rights and easements or for permission to take
such lands as may be needed tor said purposes."
The rights and easements that public utili-
ties are empowered to take by eminent do-
main under this act are to construct a line,
branch line, extension or a pipe line, conduit,
line of poles, towers or vrires across the land
of any other person or corporation. And
the land that this law enables them to ac-
quirer Is land for necessary physical exten-
sion of any of their plants or worlcs; that
Is, the land upon which they desire to con-
struct buildings or other works. The de-
fendants contend that the use of the words
"rights and easements" and "land" In the
statute makes it broad enough to Include
flowage rights. Undoubtedly these terms are
sufficient to describe such rights. But these
words do not refer to flowage rights. They
have reference to certain deflnite purposes
enumerated in the statute as Above pointed
out
[1] The act does not give public utilities
the power to secure flowage rights by eminent
domain. Its language does not indicate that
such was the intention of the Legislature;
The rights that they can obtain by eminent
domain are specifically stated, and flowage
rights are not included. This statute, which
gives to public utilities the special and
extraordinary right to condemn private prop-
erty for their uses, being an exercise of
sovereign power, and in derogation of com-
mon right, must be strictly construed, and
eliould not be extended beyond its plain and
unmistakable provisions. Clarem<mt Oo. v.
Putney, 73 N. H. 431, 82 Atl. 727; MItdiell
V. Electric Co., 70 N. H. 56©, 49 Atl. 94;
Oooley's Con. Llm. (7th Ed.) 762; Harvey
V. Aurora & Geneva Ry. Co., 174 111. 296,
304, 51 N. E. 163 ; U. S. v. Rauers (D. C.)
70 Fed. 748; Moorhead v. Little Miami R.
R. Co., 17 Ohio, 340, 351 ; Lance's Appeal, 55
Pa. 16, 26, 93 Am. Dec. 722. "In the construc-
tion of powers given to a corporation to take
land by eminent domain, every reasonable
doubt Is to be resolved adversely. The af-
firmative must be shown and silence is nega-
tion." 15 Cyc. 667; Providence, etc., R. Co.,
Petitioner, 17 R. I. 324, 343, 21 Atl. 965.
In Claremont Co. v. Putney, supra, the plaln-
4t=9For orker cases see same topic and KBY-NUUBER In all Ker-Numbered Digests and Index**
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2U
101 ATIiAKTIC UBPORXBR
(N.H.
tUb claimed that tbey were authorized to
take water ri^ts by onlnent domain be-
cause their charter gave them the power
to "lease, purchase, hold, and acquire such
real and personal estate as may be necessary
or convenient in carrying out the purposes
lor which said corporation is organised."
Laws 1001, c. 276. The court in answer to
this claim said :
"The first contention of the plaintiffs is that it
is to be implied from the use of the word 'ac-
quire' in their charter that the Legrislatnre in-
tended to confer upon them tfae power to take
by eminent domain such property, real and per-
sonal, as might be necessary to the prosecution
of their business. But the answer to this is
that as the exercise of this power is against
common right, and the plaintiffs' charter does
not expressly confer the power, or point but the
steps to be pursued in its exercise, or make pro-
Tision for compensation, the presumption is that
the Legislature did not intend to confer it.
Private property cannot be invaded by this
power without statutory authority ; and stat-
utes which are claimed to authorize its exer-
cise are to t>e strictly construed."
The plaintiffs further contended that they
were empowered to exercise the rights of
eminent domain to obtain water privileges
under section 4, chapter 93, of the Laws of
1901. The language of the section upon
which they based this claim is:
"Said railway corporations may take and hold
• • * such land as may be necessary for
the purposes of installing and maintaining pow-
er plants."
"But this provision," said the court, "does
not authorize street railway corporations to
condemn land and water privileges for the
purpose of diverting streams and procuring
power with which to operate power plants
erected or to be erected on their own land.
On the contrary, the authority there confer-
red is limited to taking such land as may
be necessary for locating or placing power
plants in position for use and maintaining
the same." This case, it will be perceived, is
very similar In principle to the instant case.
It Is argued by the defendants that the
flowage act does not meet the needs of public
utilities, only in an Incidental and Inade-
quate way, and that the act was framed
primarily for the beneSt of manufacturing
enterprises, which are private callings and
serve the public only in an indirect or eco-
nomic sense. The ground upon which the
flowage act was upheld as constitutional
was that flowage rights taken under It must
be employed by those so acquiring them for
the public use or benefit
[2] It is elementary that private property
cannot be taken by eminent domain for pri-
vate uses. Concord Railroad v. Greely, 17 N.
H. 47: Ash V. Curamlngs, 50 N. H. 591, 612;
Rockingham Light, etc., Co. v. Hobbs, 72 N.
H. 531, 58 Atl. 46, 66 L. R. A. 581; McMil-
lan V. Noyes, 75 N. H. 258, 72 Atl. 759. The
act provides that, if in the opinion of the
court the erection of a dam is not of public
use or benefit, the petition to obtain flowage
rights shall be dismissed. P. S. c. 142, § 16.
And as to the claim of the defendants that
the flowage act does not meet the needs of
public utilities, it was held In McMUlan v.
Noyes, supra, that a hydroelectric company
engaged in manufacturing electrical energy,
and furnishing it primarily to the public,
was entitled to maintain a petition to ac-
quire flowage rights under the flowage act.
Consequently this act affords to hydroelectrl-
cal companies engaged in manufacturing
electrical energy as ample and adequate
means of obtaining flowage rights as it does
to any other manufacturing concern. If it
were decided that public utilities could ac-
quire flowage rights under the Laws of ISIX,
chapter 164, the law of the state respecttnc
such rights would he in tliis anomalous situa-
tion: Public utilities could obtain flowage
rights by paying the actual damages caused
by the flowage while all other manufacturing
companies engaged in enterprises for the pub-
lic use or benefit could only acquire such
rights under the flowage act by paying 60
per cent, more than the actual damage. P.
S. c. 142, U 16, 17.
Under the flowage act, if the parties could
not agree upon the damages caused by the
fiowage, either party could petition the court
for the assessment of damages. P. S. c. 142,
§ 13. But chapter 164 of the Laws of 1911
does not give to persons whose lands are tak-
en the right to petition to the Public Service
Commission to have their damages assessed.
Only public utilities and railroads can peti-
tion for such assessment of damages. There-
fore, if this act supersedes the flowage act,
persons whose lands are flowed by public
utilities have lost not only the right to re-
cover 50 per cent, more than the actual dam-
age caused by the flowage, but they have
also lost the right to briug a petition to have
their damages assessed. This is a cogent
indication that the Legislature did not In-
tend to confer upon public utilities the pow-
er to acquire flowage rights under the pub-
lic service commission act
It is true, as the defendants state in their
brief, that many companies under special
acts of the Legislature have been granted
the power to acquire flowage rights by emi-
nent domain without paying 60 per cent,
more than the actual damages occasioned
by the flowage. These companies, however,
have been largely aqueduct companies for the
purpose of supplying towns with water, and
some of them were municipal water compan-
ies, but the rights granted do not imply the
use of water for power. Only a very few
of these companies chartered previous to the-
public service commission act were hydro-
electric companies similar to the defendants"
company. It will be noted that some of the-
largest companies of this character that have
in recent years been granted the right to ob-
tain flowage riglits for power by special leg-
islative act have been required to pay 50-
per cent, more than the actual flowage dam-
ages. Laws 1903, c. 306: Laws 1909, c. 328;
I^wB 1911, c 358. Since the passage of the
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R. I.) SPOUTINO ROCK BEACH ASS'N T. TAX COM'RS OP BHODS ISIiAND 215
public service commlsiiion act In 1911 several
public utility companies have been granted
by spedal acts of the Legislature power to
acquire flowage rights by paying only the
Actual flowage damages. Laws 1913, cc. 353,
^68, 394; Lavrs 1915, cc. 285, 303. If the po-
sition of the defendants Is correct, there was
no occasion for these companies to seek such
rights by special acts from the Legislature,
and no reason why they should have been
fH'auted.
[3] As the public service commission act
•does not confer upon public utilities the pow-
er to acquire flowage rights by eminent do-
main, it does not supersede the flowage act,
■and the petition of the plaintiffs Is to stand
for trial in its order, in accordance with the
agreement upon which It was transferred.
Case discharged. All concurred.
■<40 R. I. 4W)
atovnvo kock beach ass'n t. tax
COM'RS OF RHODE ISLAND.
(No. 4982.)
(f^apreme Court of Rhode Island. July 6, 1917.)
1. Taxation «i=»115— Taxation or Corpora-
tions—Corporation FOB Profit.
In determining whether a corporation is to
be asaessed as a corporation carrying on a busi-
ness for profit, the fact that no dividends have
oeen paid Is not material, where a surplus is bb-
ing accumnlnted which necessarily is for the
benefit of the stockholders.
[Ed. Note.— For other cases, see Taxation,
Cent Dig. | 211.]
2. Taxation ®=»115— Taxation or Cobposa-
TiONS— Cobporation fob Profit.
In determining the nature of a corporation
for the purposes of taxation, the amount of busi-
uoHi done or the profits ra-ide Is of no eflect.
[EM. Note.— For other cases, see Taxation,
Cent Dig. i 211.]
3. Taxation <g=115 — Taxation of Corpora-
tions— CORPOBATION FOB PROFIT.
Pub. Laws 1912^ c. 769, f 9, provides for
taxation of corporations carrying on a business
•for profit Section 47 provides for exemption
of corporations organized for social purposes.
A corporation organizpcl by special act was em-
powered to buy, sell, lease, let, and improve real
and personal property, bathing privileges, and
other rights, and to undertake such measures as
may promote the welfare of the city of Newport
as a resort for summer residents and owners of
cottages, and for the transaction of any busi-
ness connected therewith and incidental thereto,
with all the powers and privileges, subject to all
the daties and liabilities set forth in Gen. Laws
1806, c. 177. The charter provided that no
stockholder should transfer his stock without
inving the corporation the first opportunity to
purchase, and that no assignee of stock should
be entitled to privileges of membership or to
a voice in the corporation affairs until regularly
elected a member. Ueld, that the corporation
was not a social corporation, but a corporation
carrying on a business for profit, since it bad
accumulated a large surplus through its real es-
tate holdings and was therefore taxable as a
business corporation.
[Ed. Note.^-For other cases, see Taxation,
Cent Dig. $ 211.]
Vincent and Baker, JJ., dissenting.
Exceptions from Superior Court, Provi-
dence & Bristol Counties; WUlard B. Tan-
ner, Judge.
Petition by the Spouting Rock Beach As-
sociation against the Tax Commissioners fof
relief from a tax assessment. On x>etltioner's
exceptions to the denial of the petition. Ex-
ceptions oTerraled.
Sheffield & Harvey, of Newport, for peti-
tioner. Herbert A. Rice, Atty. Gen. (James
A. Tillingbast, of Providence, of counsel),
for respondents.
STEARNS, J. Case on the petitioner's ex-
ception to the decision of the superior court
confirming a tax assessment made by the re-
spondents, tax commissioners of the state of
Rhode Island, against the petitioner, as a
corporation carrying on business in this state
for profit.
Is the petitioner a corporation carrying on
business for profit within this state, within
the meaning of section 9, c 769, Pub. Laws
1912, or Is it, as claimed by the petitioner, a
corporation organized for social purposes,
an'd consequently exempt from taxation on
its intangible property, "called its corporate
excess,"' as provided for by section 47 of said
chapter? In considering the nature of this
corporation we wUl examine, first, the pow-
ers given to the corporation by its charter,
and Its organization thereunder, and then
the acts of the corporation.
The Bailey Beach Association was incor-
porated by a special act of the General As-
sembly on February 6, 1897, and the name
was changed to the Spouting Bock Beach As-
sociation by amendment May 20, 1897. The
charter is as follows:
"Section 1. Robert Goelet, Henry A. O. Tay-
lor, and I. Townsend Burden, and their asso-
ciates and successors, are hereby created a cor-
poration by the name of the Bailey Beach As-
sociation, for the purpose of buying, selling,
leasing, holding, and improving real and per-
sonal property, bathing privileges, and other
rights, and of undertakine such measures as
may promote the welfare of the city of Newport
as a resort for summer residents and owners of
cottages, and for the transaction of anv business
connected therewith and incidental thereto,
with all the powers and privileges, and subject
to all the duties and liabilities, set forth in
chapter 177 of the General Laws, and of all
acts in amendment thereof and in addition
thereto.
"Sec. 2. The said corporation shaU have pow-
er to make and ordain such constitntion and by-
laws, not repugnant to the Constitution and
laws of this state and of the United States, aa
it may think proper, and the same to modifj;
and repeal at pleasure, to take, hold, and con-
vey real and personal property to an amount
not exceeding two hundred thousand dollars,
and which real and personal property may be
divided into such number of shares and of such
amount as may be determined from time to time
by said corporation, and which shall be deemed
personal property and be transferred as such
according to such rules and conditions aa the
said constitution and by-laws of said corpora-
tion may prescribe.
As»Por other cases «ee saitae topic and KBy-NVUBBR In all Key- Numbered Digests and Indexes
Digitized by VjOOQIC
216
101 ATLANTIC EBPORTER
(K.L
"See. S. No stockliolder sball sell or transfer
his stock or any portion thereof without first
gMng said corporation the right to purchase
the same at the lowest price for which he is
willing to sell such stock, and said corporation
may provide by by-laws in what way such right
of pre-emption shall be exercised by said cor-
poration.
"Sec. 4. This act shall take effect from and
after its passage."
By tbe constitution of tbe corporation tbe
amount of the capital stock Is fixed at $200,-
000, divided Into shares of $500 each, with
stock certificates In the usual form, signed
by the treasurer and secretary.
Clause 5 Is as follows :
"No assignee of stock in the corporation shall
be entitled to the priTileges of membership, or
to a voice in the affairs of tbe corporation, un-
til he shall have been regularly elected a mem-
ber, as herein provided. '
Without passing on the question of the
legality of this particular by-law, it Is ap-
parent that the capital stock of this corpo-
ration is similar to the capital stock la the
ordinary business corporation. It is person-
al property which can be bought and sold.
Is transferable and assignable, and on the
decease of a stockholder the stock Is the prop-
erty of the estate of such member unless dis-
posed of by wilL Ownership of tbe stock,
however, does not carry with It the privilege
of membership and the social enjoyment of
the use of the property.
In the Constitution are the following pro-
visions :
" 'Members' shall be all persons who, having
been duly elected and being stockholders, are
members of the corporation. Every member, ex-
cept the corporators and original members, shall
be elected by the governing committee."
No person shall be elected a member un-
less he is the owner of at least one share of
stock. Every member has one vote for each
share of stock held by blm, at all meetings
of the corporation. The control of the busi-
ness of the corporation, except the sale or
mortgage of its real estate. Is vested In a
governing committee of nine members, with
power to make rules and regulations which
have the force of by-laws, and the by-laws of
the corporation may be amendeJd or repealed
by the governing committee. The by-laws
also provide for the use of the property by
"subscribers" who upon payment of a sub-
scription and on rote of the executive com-
mittee are entitled to tbe privileges of mem-
bers for tbe time subscribed for.
In article 3 of tbe Constitution is the fol-
lowing provision :
"Each original member (or subscriber) being
the owner of four shares of the capital stock,
shall have the privilege at any time of having
from one to four bathhouses built and conveyed
to him (or to such member as he may designate)
by payment to the treasurer of one hundred
dollars for each house desired.
"Said houses to be built by the association,
end to be similar to those previously erected on
the beach, and to he conveyed to the member
by deed or grant, containing same covenants,
etc., as in deeds of bathhouses made by Bailey
and Smith, the (ormer owners of said beach."
Coming now to the consideration of the
acts of the corporation, the following facts
appear from the statement of the corpora-
tion for the year 1014, which was filed by the
corporation under protest :
Total amount ol authorized capital stock )200,000 00
1. Amount Issued and outstandlag 107,600 00
Number of sbarea outstanding Z16 00
Par value of shares 600 00
Average fair cash value 260 00
ta. Rate of annual dividends paid none
Zb. Rats of annual dividends earned none
I. Amount of bonds, debentures, or out-
standing Indebtedness none
4. Gross receipts within and without R. L 7,220 35
6. Assets.
Real estate UablllUM.
and Im-
provements I 93,934 14 Capital stock.. |10T,600 00
Cash 184 S2
Securities .. 11.387 10
Proflts and
loss 1,994 14
(107,500 00
0, Assessed vsluotlon:
Real Estate. Tangible Personal.
Assessed and fair cash Assessed and fair casta
value (41,800 00 value |2,000 OO
T. Securities:
Certificate of deposit, Newport Trust
Co I 8,000 00
Seven bonds. C, B. ft Q. R. R. 7.387 10
One bond. N. J. Zinc Co 1,000 00
^,387 10
The manner of conducting tbe affairs of
the corporation was thus described by Mr.
Paine, the assistant treasurer of the cor-
poration (cross-examination):
"Q. 74. And from time to time since the pur-
chase of the land have you given rights to
members by giving them also an easement in the
real estate? Is that the theory of the associ-
ation? A. They purchased stodi, and that en-
titled them to bathhouses or more, according to
the number of shares taken." "Q. 79. They
assign a bathhouse from time to Ome, either
this one or that one, or any other, from year
to year, to the different members, and so long
as they have a bathhouse it makes no differ-
ence? A. No. It is strange I can't remember.
We do— Q. 79. Don't you know your method
of granting these privileges to members? A.
Yes; we do. I was afraid that I might not
state it exactly — you see the reason that I
hesitate — but we do give a deed to that partic-
ular portion of the beach. Q. 80. Occupied by
the bathhouse? A. Occupied by the person who
purchases it. Q. 81. To the purchaser? A. To
the person who — Q. 8Z Is the owner of the
stock? A. Who owns the stock. The Court:
A deed in writing? A. A deed in writing. Q.
83. You give a deed in writing? A. In writing.
Q. 84. What does that deed convey? A. That
conveys— I am stating now as well as I can
recall so I shall not make any mistake, that
conveys a bathhouse of such a number — we have
them all numbered. It conveys that particular
number to the person purchasing. The 0>art:
Then what you give is a deed to a particular
bathhouse, and the personal use of the beach;
is that put on, too? A. A i>articular bath-
house on the beach." "Q. 94. Tbey pay $10
for each house, and the association takes care
of all tiie houses? A. It does. Q. 95. Now, do
you charge admission to come onto the beach?
A. Nobody can come on the beach unless by the
invitation of ai member. Q. 96. Ilie member
doesn't have to pay to come on the beach?
A. The member doesn't have to pay. Q.97.
Suppose they have guests, what system have
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B. L) SPOUTINO BOCK B£AOH ASS'N v. TAX COM'RS OP RHODE ISLAND 217
Ton to entertain » guest? A. A member pays
25 cents for each guest that he brings in." "Q.
117. All your revenue comes from the privileges
granted at the beach? A. From the dues and
privileges. Q. 118. The different privileges at
the beach? A. Xes, sir."
The corporation owns ten acres of land
on the other side of the street from the bath-
ing beach, also another strip of land on the
water side of the street near the beach.
In regard to the finances of the corpora-
tlon, Mr. Paine testified as follows:
"Q. 126. Now you have accumulated some
assets which conBiBt of a certificate of deposit
of $3,000; that is in the bank at Newport;
you have that in hand now? A. In the bank at
Newport. Q. 127. Ton also have seven shares
of C, B. & Q. property— «even bonds? A. bonds.
Q. 12a Of the C, B. & Q.? A. Yes, air." "Q.
130. And you have one other bond of $1,000
facd value. Is that all of your assets? A.
VHhat is alL Q. 181. O^iat is money assets, be-
sides the property at the beach? A. That is
all that I am aware of. Q. 132. What do you
do with your income firom this property? A.
We carry it, what there is. Q. 138. Do you
keei> it in the bank? A. Keep it in the bank;
or, if it amounts to anything worth while, the
treasurer buys some stock or something, and
deposits it. What we have on hand has been
stated, I believe. Q. 134. You try to keep
your assets, these assets, the intangible assets,
you try to keep them apart as a reserve fund?
A. As a reserve fund for any purpose, anything
that happens. Q. 135. You attempted to get
enough revenue from different privileges at uie
beach to pay all the expenses at the Deacb ; is
that correct? A. Yes, sir. Q. 136. Have you
some cash on call besides these items? A. We
have not, only what little cash may be in the
bank. Q. 137. A running account? A. A run-
ning account. Q. 138. Have you ever sold any
of the real estate that the association original-
ly bought? A. We have never sold any that
I am aware of."
In 1807, when this special charter was
granted, corporations formed by general law
were incorporated In accordance with the
requirements of General Laws of 1896, c. 176,
now Gen. Laws of 1909, c. 212. In said chap-
ter 176 it was inroTlded:
"Hie several elasaes of corporations shall be
formed according to the methods herein pre-
scribed.
"Clsss I. — Business Oorjwrations.
'XDlass II. — Insurance and Banking Corpora-
tions.
"Class III. — Literary and Scientific Corpora-
tions and Miscellaneous Corporations."
The method provided for the creation of a
social organization Is distinctly set forth in
section II:
"All libraries, lycenms, fire-engine companies,
and corporations formed for religious, char-
itable, literary, scientific, artistic, social, musi-
cal, agricultural or sporting purposes, not or-
ganized for business purposes, and all other
corporations of like nature not hereinbefore
otherwise provided for, shall be created in the
following manner."
Five or more persons may associate by
written articles which shall express their
agreement to form a corporation, the name
by which it shall be known, the purpose for
wblch It is cmistitnted, and the location.
Tbls agreement must be filed with the Secre-
tary of State, and upon payment of a fee
of five dollars the Secretary of State issues
a certificate, and the incorporators are then
authorized to carry out the purpose of their
agreement as a corporation.
Class I, business corporations, with certain
specified exceptions, such as railway, quasi
public corporations, etc, are formed in a
similar way, with this difference, that the
written articles of the associates must con-
tain a statement of the amount of capital
stock and the par ralne of each share, and
the fee for incorporation in this class is $100.
The apparent purpose of this statute was
to provide a simple method of Incorporation
for Class I and Class III corporations, wlth-
otit Imposing upon the Incorporators the
burden and expense of a special application
to the Legislature, and also to provide for the
creation of corporations at times when the
Legislature was not in session. This corpora-
tion at the time of its formation belonged
either in "Class I. — ^Business Corporations,"
or "Class III. — Literary and Scientific Cor-
porations and Miscellaneous Corporations."
If the attempt had been made to incorporate
under the general law under Class III, and
the proposed articles of agreement Iiad con-
tained the statement of the purpose for which
the proposed corporation was constituted, as
set forth in section 1 of the charter, and also
the provision for capital stock, it is dear
that the Secretary of State could not have
issued a certificate of incorporation, as for a
corporation formed for social purposes not
organized for business purposes. The parties
would have been required to incorporate un-
der the "Class I. — Business Corporations,"
and the fact that the corporation .was created
by special act does not change the nature of
the oorporatloa The language of this char^
ter neither expresses nor implies in any way
the formation of a corporation for a social
purpose. The Instrument is silent on the
subject of promoting the social welfare of
its members. It states nothing from which It
may be inferred that the corporation Is con-
stituted for any social object or purpose. The
clause, "and of undertaking such measures as
may promote the welfare of the city of New-
port as a resort for summer residents and
owners of cottages," Is incidental and sub-
sidiary in this section of the charter, and
does not change the general business charac-
ter of the powers granted. Social clubs are
not organized for the purpose of buying and
selling and improving real and personal
property. By general law, and without spe-
cial authority of the state (section 13, c. 176,
Gen. Laws 1896, now section 13, c. 212, Gen.
Laws 1909), a social dub is entiUed to "take,
hold, transmit, and convey real and personal
estate to an amount not exceeding in all one
hundred thousand dollars." This power is
given to such organizations as an Incident to
the main purjmse, which is the social en-
joyment of the members, and to enable such
social club to provide the place and means
for social enjoyment. It is a much more i»-
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218
101 ATIANTIO KBPOUTBB
(B.I.
atricted pawer than the power of buying and
selling given by this charter.
The organization of this corporation is
diCFerent in many respects from that of the
ordinary social organization, in which mem-
bers have equal rights of control. In this
corporation tiie members have a share In the
control and a property interest In the corpo-
ration proportionate to their stock holdings.
By purchase, gift, or Inheritance a person
may become a stockholder and part owner
of the property of the corporation without
thereby becoming entitled to any enjoyment
of the social privileges of members. Three
classes are created by the constitution and
by-laws. The stockholders who are the own-
ers of the property, members who are also
owners but who must be elected to member-
ship, and pay an initiation fee and dues In
order to enjoy the social privileges, and snb-
scribers who are allowed temporarily the
social privileges on payment therefor.
There Is a distinction drawn between the
stockholders, the owners of the property and
the persons who may enjoy the social privi-
leges of Its use.
[1,J] The actual conduct of the corpora-
tion affairs discloses the existence of a cor-
poration doing business to a limited extent
for the benefit of the stockholders, and also
engaged in rendering services to a particu-
lar class of persons, which latter group coa-
stitutes the social organization. The state-
ment supra shows that the corporation has
acquired a surplus which It calls a reserve,
and with the surplus It has Invested In bonds.
The policy of the corporation apparently is
to accumulate a surplus and not to divide it
in the form of dividends. The result of either
method is of benefit to the stockholders, and
the fact that no dividends have been paid Is
not material. It is argued that by the use of
the words In the tax act, "a corporation car-
rying on business for profit," it was the in-
tent of the Legislature to Impose the tax on a
class of corporations different from the class
of corporations heretofore referred to as
"Class I. — Business Corporations." We are
unable to discover any such Intention after
an examination of the statutes in question,
but, even if this contention was sound, in
this case the facts show that the corporation
has carried on business for profit, and that
thus it comes within the letter of the law as
well as its spirit. Granting that the amount
of business done is less than might have been
done, and that the gain Is not large, this does
not change the character of the corporate
activity.
The question in this case Is one which in-
volves the interpretation of the la,WB of this
state, and more particularly the provisions of
chapter 769, enacted In 1912. No cases have
been called to our attention by counsel which
have any decisive bearing on the question
Involved.
[3] In the case of R. I. Hospital Trust Co.
V. Rhodes, 37 B. I. 141. 91 AtL 50, decided In
1914, this court has defined the meaning of
the phrase "carrying on business," and dis-
cussed the general meaning of the act in
question. The precise issue In this case, how-
ever, was not Involved In the decision of
that case. In consideration of the intent of
the original incorporators, as shown by the
application for and acceptance of the charter,
and the character of the organization effect-
ed, and the nature and results of the corpora-
tion acts, we are of the opinion that the peti-
tioner is a corporation "carrying on business
for profit," and consequently that the tax
appealed from was properly assessed.
The petitioner's exception is overruled,
and the case is remitted to superior court
BAKER, J. (dissenting). As I do not agree
with the conclusion reached In the opinion
of the majority of the court, I hereby state
the grounds of my dissent.
The petition was filed in the superior court
In accordance with the provisions of section
18 of chapter 769 of the I'ubllc Laws, pray-
ing for relief from a tax- assessed against
the petitioner, under section 12 of said act,
upon its corporate excess for the years 1912.
1913, and 1914. The petition was denied, the
petitioner excepted, and the case Is before
us on its bill of exceptions.
Chapter 769, In sections 9, 10, and 11, pro-
vides for the assessment of a' tax of that por-
tion of the Intangible property of certain cor-
porations and Joint stock companies called
their corporate excess. This expression "cor-
porate excess" was a new designation euid
classification of property. The classification
of corporations liable to this tax is effected
by the use of the language, "every corpora-
tion • • • carrying on business for
profit in this state."
Two questions arise: First, What Is the
proper Interpretation of the words "carrying
on Imslness for profit"? Second, Was the
Spouting Rock Beach Association, a corpora-
tion, "carrying on business for profit in this
state" In the years 1912, 1913, and 1914?
It is to be noted that the language of sec-
tion 9 aforesaid creates a new classiflcatlou
of corporations hitherto not known to our
statutes. When chapter 769 was passed in
1912, chapter 212 of the General Laws was
In force, which classifies corporations Into
three classes: "I. — Business Corporations^
II. — ^Insurance and Banking Corporations,
in. — Literary and Scientific Coittoratlons
and Miscellaneous Corporations." If the
General Assembly intended by said section 0
to make "Class L — Business Corporations,"
as such, subject to the tax for corporate ex-
cess. It would have been both easy and nat-
ural to adopt the existing and well-known
classification. Including with them also siut-
llar business corporations Incorporated under
special charters. The natural Inference is
that the liegialature, in not adopting the ex-
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R. 1.) 8POUTINO ROCK BEACH ASS'N y. TAX COM'RS OF RHODE ISLAND 219
istlng classification. Intended and did make
a new classification of corporations for the
tmrpose of determiniu? their Ilabiltty to be
taxed for corporate excess. This view Is
supported by the caption preceding section 9,
which is "Taxation of Manufacturing. Mer-
cantile, and Miscellaneous Corporations."
The petitioner is certainly neither a manu-
facturing nor a mercantile corporation, and.
If taxable under section 0, it must be under
the designation "Miscellaneous Corpora-
tions." But under chapter 212, "Miscella-
neous Corporations" is placed under Class
III. Obviously the words in the two chap-
ters are nsed with different meanings, thus
further Indicating an intentional departure
from the classifications at chapter 212.
Moreover, the classification In the two chap-
ters shows another significant and basic dif-
ference. The classiflcation nnder chapter 212
is (speaking In a general way) based upon
the character of the dissimilar powers given
the different corporations. The class created
by section 9 rests upon the actual activities
of the corporation, coupled with and modified
by the words "for profit," as expressive of
the purpose of such activities. The neces-
sary Inquiry as to the latter class is. What Is
the corporation doing for the purpose of
gain? and not. Do Its corporate powers make
It a business corporation?
In R. I. Hospital Trust Co. v. Rhodes, 37
R. 1. 141, on page 149, 91 Atl. 50, on page 52,
this court stated that the words, "every cor^
poratlon • • • carrying on business for
profit In this state," effected a general clas-
Kiflcation of corimrations liable to a tax for
corporate excess, and held that, in addition
to the corporations specially excepted from
such taxation by chapter 769 (that is, busi-
ness corporations of certain kinds and all
corporations in Glass lU, under chapter 212),
"by implication • • • all corporations not
'carrying on business for profit in this state'
wwape liability for taxation for 'corporate
excess.'" In other words. It Is held that
other business corporations, other than those
spedfled, may be exempt from taxation for
corporate excess. It may be readily agreed
in the present case that the petitioner, Judg-
ed by the principles of classification estab-
lished in chapter 212, is a boslness corpora-
tion. But that would aid little. If at all, in
determining the question now raised, which
Is to be answered by means >ot the new clas-
sification Instituted for the purpose of deter-
mining liability for taxation for corporate
excess. The rule as to the interpretation of
statutes Is clearly stated as follows in 26
Am. Sc Bng. EMcy. of Law, 598:
"Where Meaning Plain, the Letter Controls—
(1) General Statement. In order to ascertain
the legiblative intention, the primary rule is
tliat a f^tatiite is to receive that meaning which
the ordinary reading of its language warrants,
words not technical being taken in their ordi-
nary, familiar acceptation, with regard to their
general and popular use; and the meaning thus
ortired at most be adopted when it iovolves no
absurdity, if from a view of the whole law and
other laws in i>ari materia no different legis-
lative intent is apparent.
"(2) Results, Motives, and Policy Not Con-
sidered. If the language is clear and admits
but one meaning, the Legislature should be in-
tended to mean what it has plainly expressed,
and there is no room for construction. The
plain and sound principle is to declare ita lex
scripta est, although so understood the statute
leads to absurd and mischievous results, or to
conaeqnences not contemplated by the Legis-
lature; for courts are not to inquire as to the
motive of the Legislature, nor to depart from a
meaning clearly conveyed in nnambiguous
words, neeause the statute, as literally under-
stood, appears to lead to unwise consequences
or to contravene public policy. A fortiori there
can be no departure from the terms of Uie stat-
ute where no absurdity or inconvenience will
follow from a literal interpretation."
The meaning of the words "carrying on
business for profit" is so plain as to leave no
room for construction. If we substitute for
them the expression "prosecuting or conduct-
ing business for the purpose of pecuniary
gain" we do not explain the original erptea-
sion, but simply paraphrase it In R. I. Hos-
pital Trust Co. V. Rhodes, supra, the question
considered was whether the United Trac-
tion & Electric Company was "carrying on
business for profit in this state." Its powers
under its charter were numerous, broad, and
comprehensive. It clearly was a business
corporation. In considering the question of
its liability to this peculiar form of taxation,
this court took into account only the exer-
cise of its corporate powers actually employ-
ed, and held that the exercise of any of its
corporate powers in this state constituted
the "carrying on of business." It also rec-
ognized the fact that the inquiry involved the
ascertaining of whether the business was
conducted for profit, when It said (37 R. I.
on page 147, 91 AtL on page 61) :
"It is certainly idle to suggest that the ac-
tivities of the company, by whatever name they
may be characterized, were not carried on 'for
profit.' The stockholders received eight hundred
and fifty thousand dollars a year on ita invested
capital, and the only reasonable inference is
that they were maintaimng the corporation and
carrying on its work for the "profit' or gain
afforded thereby and not for pleasure or char-
ity."
Under the authority of the case quoted,
the Sponting Rock Beach Association is cer-
tainly carrying on business in this state.
The only question, as affecting its liability
to be taxed for corporate excess, is as to
whether It is carrying on business "for prof-
it." The argument ab Inconvenienti, as re-
lated to the dllHculty of the tax commission-
ers ascertaining whether a business is car-
ried on for profit, should be given little
weight in view of the rule of construction
already quoted. Moreover, chapter 769 ap-
parently contemplates Investigation along
this line in fixing the amount of corporate
excess, as may be seen by a careful examina-
tion of the provisions of sections 9, 10, and
11 of that chapter.
I think the opinion of the majority inac-
curately states the questiona Involved, and
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220
101 ATLANTIC REPORTBE
(at.
also the dalm of tbe petitlooer In saying,
"Or Is It, as claimed by the petitioner, a cor-
poration organized for social purposes, and
consequently exempt from taxation on its in-
tangible property, called Its corporate ex-
cess, as provided for by section 47 of said
.chapter." I fall to find any claim of ezen^
tion under section 47. On the contrary, the
claim is that the petitioning corporation is
not in the class created by the words "carry-
ing on business • * * for prottt"
For the reasons above stated, I am of the
opinion that the words "carrying on business
• • • for proflt" should receive the mean-
ing which the words have when "taken In
their ordinary familiar acceptation, with re-
gard to their general and popular use."
The remaining question is one of fact.
As the majority opinion quotes the act of
Incorporation in full and portions of the con-
stitution and by-laws, states the amount of
capital stock authorized, and the par value
of the shares of stock, it Is not necessary to
restate these matters. The statement of the
corporation for 1914 filed with the tax com-
missioners shows its asseta and llabilitlea to
be as follows:
Real estate and
ImproTementa % 93,934 U
Cash 184 t»
Securities 11.387 10
ProdU and loss 1,994 14
%im,SllO 00
UabllltlM.
Capital stock.. . )107,EOO 00
Respecting this statement, Frederick H.
Paine, assistant treasurer and assistant sec-
retary, testified in his direct examination:
"Q. 4.1. That was all you held to represent the
$107,500 worth of capital stock was that real
estate and those securities? A. That Is all."
And In cross-examination:
"Q. 68. Is the real estate and improvemeats
thereon carried on your books as to that
amount, and returned to the tax assessors, $93,-
934.14? A. Everything here was taken from
the books. Q. 60. It was taken from the
books? A. Yea. sir. Q. 70. Then they have
actually spent for land and for improvements
on the land something over $93,000. Is that
correct? A. That is correct, as far as I can
tell." "Q. 136. Have you some cash on call be-
sides these items? A. We have not, only what
little cash may be in the bank. Q. l37. A run-
ning account? A. A running account."
Just preceding these last two questions,
the witness has been Interrogated as to the
Items grouped as "securities" In the state-
ment. The statement In evidence shows
that no dividends had been paid an'd none
earned. It Is obvious from this that the
Item, "Profits and loss, $1,994.14," represents
loss, and that the corporation, in the 17
years of Its existence, had not been carrying
on business at a proflt. It Is to be reason-
ably Inferred also that the item, "Securities,
$11387.10," represents capital, probably aris-
ing from the sale and issuance of capital
stock since the purchase of the land and the
maUng of the improvements.
It may be agreed, however, that the fact
that the business had been conducted at a
loss does not in itself establish the further
fact that it was not conducted for proflt. Mr.
Paine testified, in reply to the question, "Is
the corporation operated for proflt?" "A-
It is not." This is, of course, not conclusive,
but as the opinion of a well-informed, though
presumably an Interested witness. It Is to be
considered. Speaking in general terms, the
petitioner exercised its corporate powers by
buying, holding, and improving real estate
and thereafter leasing bathing privileges.
These bathing privileges it has conducted Id
the form of a club organization, with the
customary restrictions as to membership and
the use of club privileges. In this respect
its activities have the characteristics of those
of a social club, peculiar In the respect that
they are conducted on a beach and during
the three or four months of each year when
in this region out-of-door bathing la ordina-
rily Indulged in. This Is the only business
carried on by the corporation during the
three years when the taxes In question were
assessed. The only revenue or Income of the
corporation was the dividends on Its securi-
ties, the annual dues of $20 due from each
of its 71 members, the annual charge of $10
on each bathing house belonging to members
(a member being entitled to own one bath-
house for each share held by him), the dues
receivable from persons temporarily admit-
ted to the club privileges of the corpora-
tion, called subscribers, the amount of which
Is not in evidence, an'd the sums received
from members paying 25 cents for eadi guest
brought in by them. The social character of
the petitioner's activities, and their puri>oses
as being similar in kind to those of a purely
social club, are clearly evidenced by the con-
stitution and by-laws. The total amount of
revenue Is not shown. There is an Item In
the statement for 1914 of total gross receipts
of $7,220.25, but this amount may contain
proceeds of the sale of stock during that
I)eriod. Tb6 fact that the largest possible
annual revenue from membership dues and
the charges on the 215 bathhouses which the
members are entitled to have (one for each
share) is $3,570 makes It probable that such
receipts contain such proceeds of sale. In-
asmuch as the stockholders are shown to
have paid $500 a share for their stock, and
to have contributed annually approximately
at least the amount of $3,500 for the upkeep
and management of the corporation an'd its
property, and never to have received a div-
idend on their stock, it is difficult to rea-
sonably conclude that they acquired and have
continued to hold the stock of this corpora-
tion as an Investment, or for any other pur-
pose than the enjoyment of the bathing and
other privileges and pleasures afforded them
as members. This is plainly apparent from
the fact that 37 of the 71 members each hold
four shares of stock and upwai'ds, a large
and controlling majority of the stock. And
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EAZARIAX BROS. ▼. PROVIDENCE-WASHINGTON INS. CO.
If we consider the purposes of the present
activities of tiie cortM>ration as sbown In
Its constitution and by-laws, and the char-
acter of these activities themselves, and the
farther fact that the corporation, by the con-
tinued maintenance of these activities for
17 years, has brought to Itself no pecuniary
profit, but the contrary, it is equally difficult
to Infer or believe that the corporation has
been "carrying on business for profit." I am
of the opinion that, on the contrary. It very
clearly appears that the petitioner has not
been "carrying on business tn this state for
profit"
The presiding Justice of the superior court
In his oral dedslon at the close of the testi-
mony, after saying that the question was
"somewhat close," said:
"I think they are doinK business to make mon-
ey, and if they go on making a profit on the
enterprise, * * * if an association of tiiis
kind for any reason elected to diesoive, and bad
a big surplus in its treasury, every atockholdei
would get the benefit of it, and there would be
a profit there."
I think he misinterpreted the Item, Secxtri-
ties" as indicating a surplus, and from this
that the corporation had made and was mak-
ing; a profit in the conduct of Its business,
and therefore concluded that the business
was conducted to make money. For the same
reason, I think that the majority opinion is
In error In stating that the petitioner has
"acquired a surplus." This impression of the
existence of a surplus was perhaps derived
from the cross-examination of Mr. Paine
(questions 126 to 135, inclusive, quoted in the
majority opinion). The inquiry related to
the different items of the securities. After
naming them, a part of question 1.30 is:
"Is that all vour assets? A. That is all that
I am aware of. Q. 132. What do you do with
your income from this property? A. We carry
it, what there is."
The word "Income," from its construction,
plainly refers to the income from these se-
curities. Question 135 and its answer clear-
ly show this. Ills answer to question 134,
that these assets are kept "as a reserve fund
for any purpose, anything that happens,"
might aid the impression of a surplus. But
as hereinbefore pointed out, the statement
filed with the tax commissioners shows be-
yond question that the corporation has ac-
camulat€»d no surplus in excess if Its liabili-
ties.
Ab has already been stated, my opinion Is
that the evidence clearly shows that no pe-
cuniary profit has resulted from the business,
and that tliere Is no surplus, and therefore
that the conclusion that the corporation was
"doing business to make money" is without
aopport.
Accordingly, I am of the opinion that the
decision of the presiding Justice denying the
petitioner relief was clearly an error, and
that the exception should be sustained, and
the case remitted to the superior court for a
new trlaL
VINCENT, J., concurs in dissenting opin-
ion of BAKER, J.
KAZARIAN BROS. v. PROVIDENOB-
WASHINGTON INS. CO.
(No. 4972.)
(Supreme Court of Rhode Island. July 6,
1917.)
1, Plbadino <s=389 — Withdbawai. of Spe-
cial Plea— Discretion of Court.
It was within the discretion of a justice of
the superior court to permit the withdrawal of
defendant's special plea to a count of the decla-
ration in an action on a fire policy.
[Ed. Note. — For other cases, see Pleading,
Cent Dig. |§ 1033-1045.]
2. Insurance is=»068(14) — Action on Fibb
Policy— Nonsuit.
In an action on a fire policy, where the
plaintiff failpd to present evidence establishing
the filing of proof of loss in accordance with the
requirements of the policy, the court properly
granted a nonsuit.
[Ed. Note.— For other cases, see Insurance,
Cent Dig. gg 1747. 1749, 1750, 1766, 176&]
8. Insurance <g=9230— Action on Fibb Pot-
iCT— Nonsuit.
In an action to recover unearned premiums
paid on a fire policy, where plaintiff failed to
present evidence of a return of the policy to
the defendant as required by the policy, the
conrt properly granted a nonsuit
[Ed. Note.— For other cases, see Insurance,
Cent Dig. H 509-512.]
Exceptions from Superior Court, Provi-
dence and Bristol Counties ; Wlllard B. Tan-
ner, Presiding Justice.
Action by Kazarian Bros, against the
Providence-Washington Insurance Company.
On plalntifTs exceptions to the granting of a
nonsuit. Exceptions overruled, and case re-
manded to superior court for entry of Judg-
ment upon the nonsuit.
Reargumcnt denied 102 Atl. 88. See, also,
96 Atl. 839.
William J. Brown, of Providence, l]br
plalntifTs. Claude B. Branch and Edward.*
& Angell, all of Providence, for defendant.
PER CURIAM. This is an action in as-
sumpsit brought upon a fire Insurance policy
issued by the defendant to the plaintiffs to
recover for a loss by fire alleged to have oc-
curred to the property covered by said pol-
icy.
The declaration is In two counts. The first
count alleges that a large amount of said
property was destroyed by fire, and that
the plaintiffs filed with the defendant due
notice and proof of loss in accordance with
the requirements of the policy. The de-
fendant canceled said policy after the fire
and loss alleged in the first count; and
the second count was for the recovery of
a certain sum as unearned premium. The
defendant pleaded the general Issues to both
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101 ATIiANTIO REPOBTBB
(R.I.
counts, and also pleaded specially to the
first count. To this special plea the plain-
tiffs replied by two special replications, to
which replications the defendant demurred.
Said demurrers were sustained In the su-
perior court The case was tried before a
Justice of the superior court sitting without
a jury. Before proceeding to trial, the de-
fendant moved that the court permit it to
withdraw its special plea to the first count of
the declaration. This motion was granted
by said Justice, to which action of said Jus-
tice the plaintiffs excepted. At the conclu-
sion of the plaintiffs' evidence, on motion of
the defendant, said Justice nonsuited the
plaintiffs on the first count of their declara-
tion on the ground that the evidence dis-
closed that the plaintiffs had not filed with
the defendant a proof of their loss in ac-
cordance with the terms of the policy. Said
Justice nonsuited the plaintiffs on the sec-
ond count on the ground that the evidence
showed that the plaintiffs had never surren-
-dercd said policy to the defendant, upon
which surrender alone, under the terms of
the policy, their right to recover the un-
«amed premium accrued to them. The plain-
tiffs also claim other exceptions to certain
rulings of said Justice made during the trial.
[1] It was within the discretion of said
justice to permit the withdrawal of said
special plea. We fail to see that the plain-
tiffs can properly claim they were prejudiced
hy that action of said Justice. The plaintiffs
take nothing by this exception.
[2, 3] The nonsuit was properly granted.
The plaintiffs clearly failed to present evi-
dence establishing either the filing of proof
of their loss with the defendant or the re-
turn of said policy to the defendant
The other exceptions of the plaintiffs are
entirely unimportant in view of our opinion
upon the question of nonsuit
All the plaintiffs* exceptions are overruled ;
the case is remitted to the superior court
for the entry of judgment upon the nonsuit
RICHARDS V. CAVALRY CLUB OF
RHODE ISLAND. (No. 882.)
(Snpreme Court of Rhode Island. July 6,
1917.)
1. CoBPO&ATiONS ^=>613(1)— Pboceeoins fob
Dissolution— Pabtikb.
Proceedings for the dissolution of a cor-
poration because it has ceased to act under its
franchise cannot be brought by a private indi-
vidual but mast be brought by the state.
[Ed. Note. — For other cases, see Corporatioas,
Cent Dig. H 2431-2434.]
2. COKFOBATIONB <^=>092 — PETITION FOB DIS-
SOLUTION—DISMISSAL.
A petition based on Gen. Laws 1909, c. 213,
i 27, as amended by Pub. Laws 1911-12, c. 780,
providing for proceedings for the dissolution of
corporations, was properly dismissed, where it
appeared not only that the active members of
the corporation did not wish to have it dissolv-
ed, but that the corporation did not Iiave capital
stoclc, and a majority of the members had not
voted to dissolve, and that the petitioner had
resigned and ceased to be an officer or meml)er
of the defendant corporation, and had lost all
interest In its affairs.
[Ed. Note. — For other cases, see Corporations,
Cent. Dig. {{ 2373-2375, 2378, 2379, 2381, 2390,
2401.]
Appeal from Superior Court, Provldenc*
and Bristol Counties; WUlard B. Tanner,
Presiding Justice.
Petition by John 3. Richards fbr appoint-
ment of a receiver and for the dissolution ot
the Cavalry Club of Rhode Island. From a
decree dismissing the petition, complainant
appeals. Afilrmed and cause remanded.
John P. Beagan, of Providence, for appel-
lant Boss & Barnefield, of Providence, for
appellee.
PER CURIAM. This is a petiUon for th*
appointment of a receiver and for the dis-
solution of the defendant corporation. The
petitioner claims that he is entitled to re-
lief under the provisions of chapter 213, Gen.
Laws 1909. Said petition was heard by a
justice of the superior court and a decree was
entered dismissing the petition. From said
decree the complainant has appealed to tills
court
It appears that the defendant corporation
was organized and incorporated under the
provisions of chapter 212, Gen. Laws 1909,
class III, "Literary and Scientific Corpora-
tions and Miscellaneous Corporations." The
defendant's by-laws provide that the member-
ship shall consist of two classes, active and
associate. Sections 2 and 8 of said by-laws
are as follows:
"Sec. 2. The active membership shall be made
np of officers of the cavalry organizations of the
National Guard of Rhode Island.
"Sec. 3. The associate membership shall be
made up of those persons holding membership
certificates and their membership shall termi-
nate upon surrender of the certificate. An as-
sociate mpmber shall not be eligible for election
to any office or any permanent committee, and
shall have no vote m the managemeut of the or-
ganization, but may, however, serve on tempo-
rary committees."
At the time of the organization of the de-
fendant corporation the complainant was an
officer in one of the cavalry organizations of
the National Guard of Rhode Island, and
was one of the incorporators of the defend-
ant It is as an active member that the com-
plainant has brought this petition.
The primary purpose of the corporation
was to procure horses for use of the cavalry
of the National Guard of Rhode Island at
drill. It further appears in the certificate of
incorporation that it was formed for "the
purposes of advocating and promoting sudi
a confederation of the National Guard
Cavalry of the New England states as will In-
crease its general ef&ciency as an Incident of
national defense, and especially to develop
and assist the cavalry of Rhode Island by
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ROWE V. BORSKR OITT GARNETTINO 00.
22S
the MieonniKement and promotlan of hone-
niaottiip." In carrying out its purpoges,
after organization the corporation purchased
a number of horses, and the caralry organiza-
tions of the National Guard of Rhode Island
continued to use said horses until said cavaU
ry organizations were called into national
service and ordered to the Mexican border In
1916. Said horses were then sold to the
United iStates government The petitioner
claims that the United States government has
now talien over "the matter- of tarnishing
horses to the troops for drill purposes, there
is no longer necessity or occasion for the
esistence of the Cavaliy Club, and all the
purposes for which It was Incorporated have
been accomplished." He further alleges that
the Cavalry Club has many outstanding un-
paid bills ; that It has not met regularly in
accordance with its by-laws ; that the treas-
urer of the organization has been permitted
to exceed his authority. The complainant
brought this petlti<Mi on December 13, 1916.
After filing said petition and before the
time of trial in the superior court the com-
plainant resigned as an officer of the cavalry
organizations of the Nattonal Guard of Rhode
Island.
We find no merit, in the reasons of appeal
upon which the case is before ua. The find-
ings of fact made by the justice of the su-
perior court that the conduct of the business
of the defendant does not warrant a dissolu-
tion is Justified. The purposes for which the
corporation was organized may still be pur-
sued. It appears that the present active
members of the assoeiatiou do not wish to
have the corporation dissolved.
(11 Proceedings for the dissolution of a
corporation because It has ceased to act un-
der its franchise are not properly instituted
by a private individual, but must be brought
bgr the state.
[2] The section of the statute whidi the pe-
titioner Invokes as a basis for his petition is
section 27, c. 213, Gen. Laws 1909, as amend-
ed by chapter 780 of the Public Lews (1911-
12). That portion of said section which re-
lates to the matter under consideration is as
follows:
"Sec. 27. Whenever any oorporatlon incorpo-
rated under the laws of this state, except a
bank, savings bank, or trust company incorpo-
rated under the laws of this state, is insidvent,
or whenever by reason of fraud, negUgmce, mis-
conduct, or continued absence from the state of
the executive officers of any such corporation,
or whenever by reason of the neglect, refusal or
omisnoQ by the stockholders of any such cor-
poration for an unreasonable time to bold meet-
ings Or attend to its concerns, the estate and ef-
fects of such corporation are being misapplied
or are in danger of being wasted or lost, or
whenever any such corporation has done or
omitted to do any act, which act or omission is
ground for the forfeiture of its charter, or when-
ever a majority in interest of the members of
such corporation having a capital stock, or a
majority of the members of such corporation
having no capital stock, shall have voted to dis-
solve said corporation and to wind up its affairs,
the superior court may, upon the petition of any
stockholder or creditor of such corporation, and
upon such reasonable notice as the court may
prescribe, decree a dissolution of such corpora-
tion and appoint a receiver of its estate and ef-
fects, or may decree such dissolution without ap-
pointing a receiver, or may appoint such re-
ceiver without decreeing a dissolution."
The defendant corporation does not have
capital stock, and a majority of the members
have not voted to dissolve the defendant and
to wind up its affairs. It therefore clearly
appears that the petitioner has no standing
In court under the provisions of said section.
Furthermore, the petitioner, when he resign-
ed and ceased to be an officer in any of the
cavalry organizations of the National Guard
of Rhode Island, was no longer a member of
the defendant corporation, and lost all legal
Interest in the affairs of the corporation.
The decree of the superior court is affirm-
ed ; the cause is remanded to that court for
further proceedings.
(40 R. I. 3U)
ROWE V. BORDER CITY GARNETTING
CO. et al. (No. 275.)
(Supreme Court of Rhode Island. June 27,
1917.)
1. COBPORATtORS «=>130 — ST0CKnoI.DEB'S
Right to Reqistbation of Shabjcs.
When a bona fide owner of stock presents
his certificate to the company and demands a
registration of his shares, the corporation is
legally bound to recognize his ownership, and
to make due transfer of such stook, in his name,
on its books.
[Kd. Note.— For other cases, see Corporations,
Cent. Dig. Si 488, 489.]
2. Mandauus ®=3l26 — REaiSTBATioN or
Stock.
In view of financial condition of corporation,
mandamus was proper to compel transfer ol
stock on corporation s books to a bona fide pur-
chaser, since, under the circumstances, petition-
er would not otherwise have an adequate rem-
edy.
[Ed. Notei— For other cases, see Mandamus,
Cent Dig. t 261.]
3. Mandamus ^s»10 — Rkoistbaxioit or
Stock— Disputed Ownebship.
As to shares of stock regarding which peti-
tioner's title was questionable, manrlamuB to
compel registration was not permissible, and
petitioner must resort to some other remedy.
[Ed. Note. — For other cases, see Mandamus,
(knt. Dig. { 37.]
4. Masdai^s $=33(7) — Reqistbation or
Stock.
Where court deems remedy at law adequate,
it may, in its discretion, refuse to allow manda-
mus to compel registration of stock on corpora-
tion's books, although petitioner's title is undis-
puted.
[Ed. Note. — For other cases, see Mandamus,
Ont Dig. S 34.]
5. Mandamus 9=92 — (^onbtztutionai, and
Statutobt Pbovisionb.
Article XII of Amendments to Constitution,
providing that the Supreme Court "shall have
power to issue prerogative writs, and shall also
have such other jurisdiction as may, frran time
to time, be prescribed by law," and Gen. I^aws
10G9, c. 2T2, § 2, providing that the Supremt
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224
101 ATLA.NTIC REPORTER
(B.I.
Court "may issae writs of habeas corpus, of er-
ror, certiorari, mandamus, prohibition, quo war-
ranto, and all other extraordinary prerogative
writs and processes necessary for the further-
ance of justice and the due administration of
the law,' were not intended to alter essential
character of writs of mandamus and other pre-
rogative writs named therein.
[Ed. Note.— For other cases, see Mandamna,
Cent Dig. S 4.]
6. Mandaxtjb <&=33(2)— Scopx or Rkmedt.
Gen. Laws 1900, c. 272, { 2, authorizes the
use of mandamus where circumstances of the
case show that petitioner has no other adequate
IwaX remedy, although such use of the writ
may be contrary to practice established by com-
mon law.
[Ed. Note.— For other cases, see Mandamus,
Cent. Dig. { 8.]
7. Mandamds e=3l4(l) — Dkmand — Stock-
holder's Inspection oi' Books.
Where demand for inspection of corpora-
tion's boolcs by stockholder and refusal are not
shown, mandamus will not lie to enforce sudi
right.
[Ed. Note.— For other cases, see Mandamus,
Cent Dig. { 44.]
Petition for mandamus by Leon R. Rowe
against the Border City Garnettlng Company
and others. Petition granted In part and de-
nied In part
Walling & Walling, of Providence, tor pe-
titioner. John R. Hlggins, of Woonsocket,
for respondents.
BAKER, J. This is a petition for a
writ of mandamns against the Border City
Garnettlng Company, a corporation organiz-
ed under tbe laws of this state, and Allan
Mcintosh, Ulrlc A. Poulln and Hector L.
Poulin, respectively president, treasurer, and
secretary of said corporation, ordering it and
tbem to transfer upon tbe books of said cor-
poration 46 Shares of the stock of said cor-
poration now standing in tbe name of the de-
fendant Allan Mcintosh, and represented by
three certificates, one for thirty shares and
two tor 8 shares each, to tbe name of tbe
petitioner and to issue new certificates there-
for to your petitioner. A citation was is-
sued, and duly served on the corporation and
the other respondents. There was a general
entry of appearance for respondents by an
attorney, although it was apparent at the
bearing that be did not represent Allan Mc-
intosh, who did not appear, and was, we as-
sume, tn fact unrepresented. Tbe counsel
for tbe respondents In open court admitted
that tbe title of tbe petitioner to the SO
shares r^resented by tbe certificate for that
amount was a clear one, and that he was en-
titled to have them transferred upon the
boolss of the corporation and a certificate
therefor issued to him, and the evidence of-
fered also shows this to be tbe fact But the
petitioner's title to tbe 16 shares represented
by tbe two certificates of 8 shares each was
disputed, tbe two respondents Poulln claim,-
ing that tbe respondent Mclntosb bad receiv-
ed these two certificates in trust, and bad
transferred tbem in breach of that trust to
tbe petitioner, claiming also that the petition-
er at the time of the transfer bad knowledge
of these alleged facts.
The respondents urge tbat mandamus is
not tbe proper proceeding to compel a trans-
fer of corporate stock upon tbe books of a
private corporation and the Issuance of a
new certificate on the ground that the peti-
tioner tias an adequate remedy in an action
at law for tbe value of the stocks claimed.
Tbe text-book writers and commentators as
a rule concede that tbe weight of authority
supports this dalm. For example, while
Cook on Corporations (1913 Ed.) in section
380, vol. II, says tbat the remedies of a
transferee for refusal of the corporation to
allow the registry of a transfer of stock are
three, namely, be may apply in a court of
law for a mandamus to compel the transfer,
or to a court of equity to accomplish tbe
same purpose, or may bring an action at law
against the conwration tor damages for con-
version of his stock, in section 390, in dis-
cussing tbe remedy by mandamus, says:
"The authorities are in irreconcilable conflict
on the question whether a mandamus lies to
compel a corporation to allow a registry on
its books of a transfer of stock. The weight of
authority holds very clearly that mandamus will
not lie. This rule is based largely on the his-
torical origin of the writ of mandamus, and on
the theory that the stock of a private corpora-
tion has no peculiar value, and may be readily
obtained in open market or fully compensated
for in damages. There is a strong line of deci-
sions, however, which holds that a mandamus
does lie to compel a corporation to allow a regis-
try of a transfer of stock, particularly where the
corporation has no good and sufficient reason for
refusing the registry"
-rand be dtes with great fullness the cases
supportive of the two views. See, also, as
to weight of authority on this point 26 Cyc.
347; 7 R. O. L. 271 ; Thompson on Corpora-
tions (2d Ed.) vol. IV, i 4439; 19 Am. & Eng.
Ency. of Law, 881 ; Morawetz on Private Cor-
porations, vol. I, i 215; Bailey on Habeas
Corpus and Special Remedies (1913) vol. II, §
303. The latter writer says:
"The courts of this country quite generally
at an early day, when the remedy by mandamus
was much more restricted in its nature and
purpose than it is at present, concluded that the
writ would not lie to compel the proper officer
to transfer stock of a shareholder upon the
books of the company. Since that time, r«dy-
ing upon the precedents establlBhed, many ot
them, and others where the question became one
of first impression, have adhered to the original
holding. The reason upon which their conclu-
sion was based is that the ^areholder had an
adequate remedy at law against the corporatirat,
for the value of the stock claimed."
After pointing out conditions under wbicb
the action at law would not afford an ade-
quate remedy, the author says:
"Courts of respectable authority hold that
such transfer may be compelled by mandamus,
espeoially where there is no dispute with respect
to the ownership or right of possession of the
stock. It would seem that some of the courts
do nut hold that the writ will not lie in all cases,
or that an action for value of the stock is an
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ROWE V. BORDER CITY OARNETTING CO.
225
adequate ranedy. They only ao hold when
the legal rifcht of the petitioner to the posses-
sion of the stock and to the right of transfer is
oot clear and unquestionable; and such un-
doubtedly is the better rule and best in accord
with the principles which underlie the granting
of the writ, if there be doubt as to what his
legal right may be, involving the necessity of
litigation to determine it, mandamus ought to
be withheld, upon the well-settled principle that
the relator must show a clear right"
In Dennett t. Acme Mfg. Co., 106 Me. 476,
76 ktL 922, there was a petition for manda-
mus for a transfer of stock and the issuance
of a new certificate. On page 482 of 106 Me.,
CD page 925 of 76 Atl., tbe court says:
"The idea of the cases, denying mandamus on
the ground that an action at law is open to the
petitioner, ia that in such action he could recov-
er as damages the market value of the stock,
and would thereby be fully indemnified. But it
must be conceded, we think, that in very many
cases that idea could not be realized in practice.
Business of all classes and kinds is now carried
on ander corporate organization. The capital
stock of some of these corporations has some
known market value, but that of the greater
number of them, perhaps, has none. Neverthe-
less, the shares in the latter have a substantial
value to the owners thereof. That value may
result from business immediately profitable,
from special opportunities and circumstances in-
soring future profits, or from the good will of
a well-established business. It does not there-
fore seem reasonable that the owner of such
■hares is afforded adequate relief, for a denial
of his rights as a stodtholder, by an action at
law, to be prosecuted at his own expense and
trouble, and for the uncertain recovery of some
trifling sum as damages in lien of the rights and
benefits be would have enjoyed if the transfer
to whidi be was entitled had been made to
him. • • •
"The same reasons and objections, we think,
may be urged against the suggestion that the
petitioner has an adequate remedy in equity.
Before that remedy could be prosecuted to a
final decree imi>ortant opportunities to enhance
tbe value of the business of the corporation may
have passed, and maladministration have wast-
ed and dissipated its assets. Such a remedy is
not commensurate with the petitioner's rights.
"Notwithstanding the fact that the weight of
aathority in other jurisdictions appears to be
otherwise, we are nnable to assent to the doc-
trine that a bona fide share owner in a private
corporation, existing under our statutes, who
is wrongfully denied bis statbtory right to
have a certificate of his shares issued to him by
the corporation, and a record transfer thereof
made on its books, is afforded an adequate rem-
edy, a remedy commensurate with bis special
and peculiar rights and necessities under all
the circumstances, by an action at law against
the corporation for tbe value of his shares, or
by equitable proceedings for a specific perform-
ance. And we are of opinion that such remedies
should not constitute a bar to relief by manda-
mus to compel such issue and transfer where the
petitioner's right is unquestioned, and where nei-
ther the corporation nor its officers have, or pre-
tend to have, any reason or excuse for their re-
fusal.
"We readily perceive that great injury would
often result to a petitioner from a refusal of
mandamus in such case as the one at bar, while,
on tbe other hand, we fail to perceive how injus-
tice could be done to any one from granting it
in such case, since no reason is given or sug-
gested why the shares dioold not be transferred
as requested."
101A.-16
See cases there cited and in addition Sbep-
pard v. Rockingham Power Co., 150 N. C
770, 781, 64 S. E. 894.
[1] There was a statutory provision in
Mulne requiring the Issuance of a new cer-
tificate. But this does not seem to ns to
be material, as It is generally recognized
that:
"Where there is a valid sale of stock, and where
a bona fide owner of stock presents his certifi-
cate to the company and demands a registration
[of his shares] tbe corporation is legally bound
[to recognize his ownership and] to make due
transfer of such stock, in his name, on its
books." 7 B. O. Ia 262.
[2] From the testimony offered In the case
at bar as to the financial condition of tbe
corporation we are of the opinion that an
action at law, so far as the certificate rep-
resenting SO shares is concerned, does not
afford the petitioner an adequate remedy,
and that mandamus is a permissible and
proper nonedy for him in tbe circumstances
of this case. Although not precisely in point,
see, also, Portland Stone Ware Co. y. Tay-
lor, 17 R. I. 33, 19 Atl. 1086; Cornell v.
Barber, 31 B. I. 358, 378, 76 Atl. 801, for
similar use of the writ ; also Norris v. Irish
Land Co., 8 £. & B. Reports, 512, (pinion of
Coleridge on page 527, as to tendency to en-
large the remedy by mandamus.
[3] We think the situation as to the 16
shares represented by tbe two certificates of
8 shares is a different one. Tbe title of the
petitioner to them is questioned. In Townes
V. Nichols, 73 Me. 615, there was a petition
for mandamus for the issuance of a certifi-
cate of stock, and the UUe of tbe stock was
In question. The court said, on page 617:
"All the authorities declare that the remedy
by mandamus cannot be resorted to in a case
like this, unless tbe legal right of the petitioner
to tbe possession of the thing sought for is clear
and unquestionable. If there be doubt as to
what his legal right may be, involving the neces-
sity of litigation to settle it, mandamus must
be withheld. Mandamus is the right arm of
tbe law. Its principal ofBce is, not to inquire
and investigate, but to cmnmand and execute.
It is not designed to assume a part in ordinary
lawsuits or equitable proceedings. • * * An
application of this rule defeats the petitioner's
claim under the present proceeding. • • • It
should appear to be an unquestionable claim."
See Bailey on Habeas Corpus, etc., supra,
I 303 ; Murray v. Stevens, 110 Mass. 95.
In onr opinion, in the circumstances dis-
closed in this cas& mandamus is not a per-
missible remedy for the petitioner as to the
shares represented by the two certificates of
8 shares each. He must resort to some other
proceeding for relief. Gook on Corporations,
supra, in section 800, suggests that by a bill
in equity "not only can a registry be specifl-
cally decreed and ordered by the court, but
the rights of the corporation and of all the
claimants may be fully and finally beard and
disposed of."
[4] We do not regard our conclusions in the
present case as in conflict with Wilkinson t.
Providence Bank, 3 R. I. 22. Referring to
mandamus, the court said:
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101 ATIiANTIC REPOBTBR
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"The law • ♦ • wisely restricts its appli-
cation as a remedy to enforce mere private
rights of property to cases where the applicant
has no adequate remedy by action in the due
course of the common law
— and after calling attention to the fact that
tbere was a dispute as to tbe ownership
of the stock, said, "the present proceeding
Is a very Imperfect mode of trying these
questions," and held that an action at law
for damages for the refusal of the bank
to transfer shares of Its stock was an ade-
quate remedy, and left the petitioner to
the common-law remedy by action. We be-
lieve the dedslon was sound ; and, al-
though we might now be disposed to place
more emphasis on the existence of the dis-
pute as to ownership, we do not now mean
to Imply that. In the absence of such dilute,
the court may not, In its discretion, refer a
petitioner to his remedy at law, If It deem
such remedy in the circumstances adequate.
[6] It may be noted, also, that Wllldnson
T. Providence Bank, supra, was decided
under the Constitution and statutes in force
In 1853 in strict accordance with the rules
of the common law. Article XII of Amend-
ments to the Constitution, adopted November,
1903, provides among other things, that the
Supreme Court "shall have power to issue
prerogative writs, and shall also have such
other Jurisdiction as may, from time to time,
be prescribed by law." Section 2, c. 272,
of the General Laws provides that the
Supreme Court "may issue writs of habeas
corpus, or error, certiorari, mandamus, i«o-
hibitlon, quo warranto, and all otiier extraor-
dinary and prerogative writs and processes
necessary for the furtherance of Justice and
the due administration, of the law." It la
not to be presumed, wq think, that this
amendment and this statute are intended to
alter the essential character of these pre-
rogative writs.
[1] It does not seem, however, too much to
claim as to the matter of the proper use of
process, say of mandamus, that, if tbe cir-
cumstances of tbe case show, in the Judgment
of the court, that a petitioner has no other
adequate legal remedy, and that Justice can
be done only by mandamus, the statute does
in such case authorize the use of mandamus,
although such use may run counter to its use
under the practice established by the common
law.
[7] The petitioner also asks for a mandate
permitting him to Inspect tbe books of tbe
corporation. Tbere is no evidence of any
demand for such Inspection and of its re-
fusal, and this request is denied.
The prayer of the petition is granted to
the extent that a peremptory writ of manda-
mus Is ordered to issue to the respondent
corporation, commanding it by its president
and treasurer to transfer on its books tbe 30
shares of stock, represented by certificate
N»). 8, now standing In the name of Allan Mc-
intosh, to the name of the iietltloner, and to
issue to him a new certificate for said shares,
upon the surrender to It for cancellation of
the certificate now held by him. In other
respects the petition is denied.
(40 R. I. 410)
SLATERSVIIiLI} FINISHING CO. T.
GBEBNE et al.. Assessors of Taxes.
(No. 4905.)
(Supreme Court of Rhode Island. June 27,
1917.)
1. Taxatiow «=3348 — Valuation — Use of
Land.
Tho valnation of land for tlie purpose of
taxation is fixed by the elements of value which
lead to the most profitable form of improrement,
though the owner may not improve tne land at
all, or may put it to uses which are less profit-
able than others for which it is suited.
[E}d. Note.— For other cases, see Taxation,
Cent Dig. fj 5S1-5S9.]
2. Taxation ®=>34S— Valuation or Land—
Watkb Powkb.
That the owner of land, formerly assessed
at its value as a mill privilege, erected a dam
below such land, causing it to bo overflowed,
thereby destroying elements ot value in it, did
not require that it be thereafter valued at a less
amount, though the water power created by the
dam was conductd to mills situated elsewhere
and there applied; such circumstance not taking
away any elements of value from the land,
where tho power was created, though it in-
creased the value of the mills receiving the pow-
er, and could be considered in the taxation of
such mills.
VEd. Note.— For other cases, see Taxation,
Cent. I>ig. li 584-689.]
8. Taxation «=>64 — Valuation — WAT«a
PowEB — Watbb Kioutb — "Poweb" —
"Wateb."
Though, for the purpose of taxation, the
right to use the water of a stream, and the
water power that arises from controlling the
flow of its current, must be considered as ap-
purtenant to and an incident of some land, wa-
ter power and water rights are not independent-
ly taxable; power being a force, and water a
nontaxable element.
[BM. Note.— For other cases, see Taxation,
Cent. Dig. |S 148, 149.
For other definitions, see Words and Phrases,
First and Second Series, Power; Water.]
Case (Certified from Superior Court, Provi-
dence and Bristol Counties.
A petition by the Slatersvllle Finishing
Company against Albert S. Greene and oth-
ers, assessors of taxes, was certified from
the superior court on agreed statement of
facts. Decision for respondents, and case re-
mitted, with directions to enter final Judg-
ment
Barney, Lee & McCanna and Walter H.
Barney, all of Providence, for petitioner.
Irving Champlln, James Harris, and John J.
Lace, all of Providence, for respondents.
SWEETIJVND, J. This is a petition
brought under the provisions of section 16, c.
58, Gen. Laws 1909, for relief against a tax
assessed against the petitioner's ratable es-
tate in the town of BurriUvlile. The petition
«s»For oUier cases see smme topic and KEY-NUMBBR In all Key-Numbered Dlgesta and IndazM
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SLATERSVIIiLE FINISHINO CO. ▼. OREENB
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has been certified to us upon an agreed state-
ment of facts.
By said statement it appears that on Au-
gost 1, 1910, the petitioner duly brought in
before the assessors of said town an account
of its ratable estate in said town, including
a parcel of land described in said account as
follows:
"SlatersriUe Finisbinir Company, Slatersville,
land lying southerly of the highway leading from
NasonvUle to Slatersville, bounding westerly by
the Douglas pike, and by Inman road, so callea,
on the east, $500."
The assessors assessed said parcel as fol-
lows:
"Slatersville Finishing Company, SlatersTillo,
land, mill privilege and water rights, formerly
the Inman mill privilege, lying southerly of the
highway leading from Nasonvflle to Slatersville,
bounding westerly by the Douglas pike^nd by
Imnan road, so called, on the east, $S,000."
The petitioner paid under protest so mndi
of said tax as was assessed upon the valua-
tion of said parcel in excess of the valuation
set out In the petitioner's account. In said
agreed statement it appears that said parcel
was situated upon a stream of water the
name of which is not given in the statement;
that on said parcel was formerly located a
mill known as the "Inman Scythe Works,"
the use of which was discontinued, and which
fell in ruins many years ago ; and that there
was a dam, waterfall, and mill privilege con-
nected with said land. The parcel was sold
in January, 1860, by Ezekiel Daniels and oth-
ers to John F. and W. S. Slater, who are
the predecessors in title of the petitioner, the
SlatersriUe Finishing Company. Either said
Slaters, or the "Slatersville MUls," which
succeeded them, erected or raised lower down
on said stream at Slatersville, in the town of
North Smlthfield, a dam, thus creating a
mill pond extending back over said stream
into the town of Burriliville, and flowing
out the Inman mill privilege and water
rights, so that there is no fall of water there
when the Slatersville dam is full. At and be-
fore the time of the raising of said dam and
the flowing of said land, said land was as-
sessed for its value as a mill privilege, and It
Is agreed that such value was not less than
$5,000. If the elements of value attributed to
said land by the assessors ought not to have
been considered by them in fixing the valua-
tion at the time of said assessment, It is
agreed that the value of said land for the
purposes of taxation was $500.
The petitioner contends that in this matter
the court should adopt one or the other of
two views, and that, in accordance with ei-
ther, the petitioner should have the relief
which it seeks. Its daim is that, by the erec-
tion and use of the dam at Slatersville, ei-
ther said mill privilege and water rights in
BarriUville have been destroyed as elements
of value to be considered in assessing said
land in BurrllMUe, or said privilege and wa-
ter rights have become a part of and have
increased the value of the water rights ap-
purtenant to the mill at Slatersville, in the
town of Kortta Smlthfield, and are only tax-
able there.
In support of its position that said mill
privilege and water rights no longer exist as
elements of value in the parcel of land under
consideration, the petitioner relies chiefly up-
on language employed in certain ciises dealing
with claims for damages made by the owners
of lands which have been permanently sub-
merged through the construction of public
works. In some of the cases cited there was
a mill privilege upon the land flowed; in
others, there was not In no case is the ques-
tion of taxation Involved. In each case the
Court was considering whether, because of
the Impairment or destruction of the owner's
beneficial use of the land or mill privilege,
he should be entitled to compensation under
constitutional requirements that just compen-
sation shall be paid to owners of property
taken for public use. We vriU briefly consid-
er the cases dted by the petitioner upon this
point.
In People t. Canal Appraisers, 13 Wend.
(N. Y.) 355, It appeared that, in the course of
construction for the improvement of canal
and lock) navigation, the state of New York
had built a dam across the Hudson river at
Troy. Thereby a waterfall belonging to the
relator, situated on a branch of the Mohnwk
river, tributary to the Hudson above said
dam, had l>een permanently overflowed. In
these circumstances the court held that there
had been a "taking" of said waterfall for
public use, and the relator should have com-
pensation. In Velte v. V. S., 76 Wis. 278, 45
N. W. 119, and in Pumpelly v. Green Bay
Co., 13 Wall. 166, 20 L. Ed. 557, the respec-
tive plaintiffs were seeking compensation for
the permanent flowing of their lands through
the erection of dams as part of public works
for the improvement of the Fox and Wis-
consin rivers. In each case it was held that
the plaintiff's use of bis land had been de-
stroyed, and that the flowing constituted a
"taking" of the land within the meaning of
the Constitution. The petitioner cites Hatch
V. Dwight, 17 Mass. 289, 9 Am. Dec. 145.
The decision in that case, upon analysis, does
not support the view that, when a mill privi-
lege has been flowed out by the raising of a
dam below it on the same stream, the mill
privilege is destroyed as an element of value
in the land to which it was attadied. The
court held that the owner of ai privilege so
overflowed was entitled to an action for his
damages, and approved an assessment of
damages amounting to yearly interest upon
the value of the privilege as it was before
obstruction. This is by no means an author-
ity for the contention that a privilege when
flowed out is destroyed. The case proceeds
upon the theory that the owner of the privi-
lege had been deprived of its use, which use,
in a sense, had been taken by the owner of
the dam lower down, and for such taking he
should iMy an annual' compensation wXiile
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101 ATIiANTIC EEPORTEE
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the taking continued. It cannot with reason
be urged from thla that the value of the privi-
lege as an Incident of the land had been de-
stroyed and should be disregarded in negoti-
atlMi tor the sale of the land, or that the
assessors of Northampton, where the land
was situated, could not proijerly consider this
element in placing a valuation ui>on said land
for the purpose of taxatlMi.
For the promotion of manufactures, Legis-
latures in most of the states have enacted
so-called "Mill Acts," giving to a riparian
proprietor upon a stream, where water power
may be utilized, the right to increase the im-
pelling force of the current at his land by
the erection of a dam and the setting back of
the water of the stream beyond the limit of
bis own land and upon that of a proprietor
above, with provision for compensation in
damages, and with the restriction, generally
expressed in the act, that a proprietor can-
not flow back and obstruct the operation of a
mill privilege above which has already been
established by authority of law. This re-
striction is not expressed in the Rhode Island
act Chapter 148, Gen. Laws 1909, amended
by Pub. Laws (1011-12), c. 897. This court,
however, has held that our mill act should
receive a reasonable construction, and that it
does not authorize the owner of an unoccu-
pied privilege to erect thereon a dam and
mill, and then to flow out an occupied privi-
lege above. Mowry v. Sheldon, 2 R. I. 369.
The constitutionality of these mill acts haa
frequently been questioned. Their constitu-
tionality has generally been supported, some-
times on the ground that the flowing out of
the land above was a taking for public use
under a delegation of the state's right of
eminent domain. Perhaps the constitutional-
ity of these acts is better supported on the
ground that it is within the power of the
Legislature to regulate the manner in which
the rights of riparian owners may be asserted
and enjoyed with due regard to the inter-
ests of all and to the public good. Head t.
Amoskeag Mfg. Co., 113 U. S. 9, 6 Sup. Ct
441, 28 L. Ed. 889.
Whether It be regarded as based on the
right of eminent domain or as a legislative
regulation of the common right of the differ-
ent riparian proprietors to use the waters of
a stream, such act does not work the destruc-
tion of the property which may be invaded in
accordance with its provisions. The statute
contemplates that the property submerged
should remain as a valuable possession of the
owner, even though he has been deprived of
his unobstructed enjoyment Although the
owner may elect to have his damages in
gross, the Rhode Island act provides for the
appraisement of the damages that the owner
of land overflowed ought yearly to receive
and recover from the owner of the dam be-
low, his heirs and assigns, until five years aft-
er the dam shall be removed by its owner,
bis heirs and assigns. Similar provisions are
contained in all the acts of other states which
we have examined. The case of Quinebaug
Reservoir Co. ▼. Union, 73 Conn. 294, 47 Atl.
328, we shall consider later in Its bearings
upon the other branch of the petitioner's
claim. With reference to the point with
which we are now dealing, viz. as to the taxa-
ble valuation of lands which have been sub-
merged to increase the water power at a mill
site lower down on a stream, the court said
that under the system which makes all real
estate taxable by the town in which it is sit-
uated, the court would expect that either the
value of the power created by submerging the
land, or so much of It as equals that of the
land if left in Its natural condition, would be
made taxable in the same way in wMCh the
land had been before.
[1] Many of the questions which might
arise when the land submerged and the land
on which the dam is located belong to differ-
ent owners are not presented in the case at
bar, where the petitioner owns both parcels
of land. The value of land depends upon Its
capacity for improvement The elements of
its value may be its fertility, the minerals
in Its soil, its location, the configuration of its
surface, and many other circumstances, one
or more of which may be incident to a certain
tract of land. In estimating its value for the
purpose of sale or of taxation, all these inci-
dents should be considered, and the element
or elements of value which lead to the most
profitable form of improvement fixes the
proper valuation of the land. The owner
may not see fit to improve his land at
alL He may put it to uses which are much
less profitable than others for which it is
suited. He cannot thereby lessen its valua-
tion for the purpose of taxation. Generally
the chief element of value of a parcel of land
on one of the principal streets of the city of
Providence is its capacity for profitable use
as the location of a building for business pur-
poses. The owner of such parcel may permit
it to remain unimproved, he may use it in
a manner which produces little return, but
the assessors of taxes would be justified tn
assessing it upon a valuation based upon its
favorable location and its desirability for
building purposes. The petitioner in the case
at bar is the owner of a parcel of land admit>
tedly of the value of $S,000, in view of Its
possible use as a mill sitOk If the petitioner
made no use of this parcel, it could not claim
that a valuation of $5,000 was excessive. la
the furtherance of its business, it flnds it
profitable to employ this $5,000 tract of land
as part of its works to increase its water
power at SlatersviUe. It is fair to presume
that the added water power at SlatersviUe
which is obtained by this use of the land Is
of greater value to the petitioner than any
return which it would obtain from the use of
the land simply as a mill privilege; and the
capacity of the land to produce water power
in this way to be used at SlatersviUe Is an
element of greater value than its capacity
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SLATERS VILLE FINISHING CO. ▼. GREENE
229
for producing water power to be used on the
land Itself In BurrllMlle. In accordance
vlth the suggestion made by the Connecticat
oonrt tn Quinebang Reservoir Co. v. Cnlon,
inpra. It might be said that either the full
Talue of the power so obtained at Slaters-
TlUe through the nse of this land, or so much
of that value as equals the value of the land
If It had been left In Its natural condition,
should be made taxable In the same way tn
which the land has been taxed before.
[2] However that may be, and wlthoat ref-
erence to the value of the added power which
the use of this land has enabled the petition-
er to obtain at SlatersviUe, the valuation of
the land made by the assessors should not be
disturbed on the ground that, because the !»•
tltloner has seen fit to employ this land for
purposes which are either more or less profit-
able than that for which it surely Is suited, the
petitioner has in that way destroyed certain
elements of value which formerly pertained
to it It is true that the petitioner has sub-
merged the land and concealed it from view,
but in no proper sense can it be said to Iiave
destroyed any of its elements of value.
In support of the position that said privi-
lege and water rights In Burrillvllle might
properly be held to have become a part of
the water rights appurtenant to the mill at
Slatersvllle, and only taxable there, the pe-
titioner relies mainly upon what it claims is
the authority of Boston Mfg. Co. v. Newton,
22 Pick. (Mass.) 22, and Union Water Power
Co. V. Auburn, 90 Me. flO, 37 Atl. 331, 37 L. R.
A 651, 60 Am. St Rep. 240.
[3] In considering this phase of the case,
we may start with the principle, generally
conceded, that water power and water rights
are not Independently taxable. Power is a
force and water is an element no more taxa-
ble tlian air. The respondent assessors did
not assume to tax the mill privilege and wa-
ter tiower Independently, but as a part of the
land. For the pnrpose of taxation, the right
to dse the water of a stream and the water
power that arises from controlling the flow of
its current must be considered as appurte-
nant to and an incident of some land. When
the power has been applied at some place
other tliaii that at which It was produced
there has l>een some slight disagreement In
the cases, a disagreement, however, more ap-
parent than real, in regard to the land to
which the iiower shall be considered as appur-
tenant, whether to the land which from its
situation and configuration was able to pro-
duce tlie power or to the laud where the
power is applied. It should be observed that
the case at bar does not present the condition
of power produced by a fall at one place and
applied at another. However, cases which
deal with that condition furnish as-slstance in
the determination of the petitioner's claim
that some of the elements of value of the
Burrillvllle land have been taken from it and
annexed to the land at Slatersvllle.
In Boston Mfg. Co. v. Newton. 22 Pick.
(Mass.) 22, relied upon by the petitioner, it ap-
pears that the plaintiff was the owner of two
miUdams across the Charles river where it
passed between the towns of Waltham and
Newton, one half of each dam being in New-
ton, and the other half in Waltham, and that
the water power thereby created was applied
exclusively to drive certain mills of the plain-
tiff in Waltham. The plaintifT was taxed in
Newton, upon separate Items, for one-half of
the value of each dam, for the value of the
land in Newton covered by the river, and for
one-half of the water power. The action was
brought solely for the purpose of trying the
right of Newton to tax any portion of the wa-
ter power, all of which was applied in Wal-
tham. The court held that water power can-
not be taxed independently of land, and fur-
ther stated as their opinion that the water
power had been annexed to the mills at
Waltham and could only be taxed there. The
plalntlfC in that case did not question the
taxation of the land under the tl\er in New-
ton, and hence the court was not called to
pass upon the elements of value which per-
tained to that land, or whether its value was
Increased by its capacity to create water
power. The case is of little if any value
in determining the matter before us.
In Water Power Co. v. Auburn, 90 Me. 60,
37 AU. 331, 37 L. R. A. 651, 60 Am. St Rep.
240, it appears that the plaintiff was the own-
er of dams across the Androscoggin river
where it flows between Auburn and Lewiston.
None of the power created by these dams was
used in Auburn, but was employed by the
plaintiff in connection with its mills at Lewis-
ton. The assessors of taxes of Auburn as-
sessed a tax upon the plaintitTs dam and
water rights. The action was for an abate-
ment of said tax. The court held that water
power, until applied, is potential, and that
when applied to mills It becomes a part of
the mill property and is a subject of taxa-
tion where the mills are located. Prom this
opinion of a majority of the court Mr. Jus-
tice Emery dissented, and in an able opinion
pointed out tliat in these clrcnmstancea wa-
ter power as a force was not taxable either
in Auburn or Lewiston, but as a waterfall or
mill privilege it is a parcel of land over which
a stream of water flows and falls, and la to
be taxed in the town where it Is situated. So
far as the land is more valuable by reason of
the stream and the falls, so far those facts
are to be considered in the valuation of the
land. The owner of the land owns not strict-
ly the power but the gateway through wliich
alone the power can be captured and led out
If the right to use the power has been ac-
quired by the owner of a mill situated else-
where, either personally or as an incident of
the ownership of the mill, the value ef such
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101 ATIiANTIO RBPORTBE
(BI.
right is to be estimated In assessing tbe own-
er or the mill.
"It stionld not be assumcKl that taxing in
T^wistoit the right of the mill to have water
power from the dam in Auburn should reduce
the tax in Auburn upon the corresponding right
of the dam to receive compensation therefor.
Tbe water power is not to be taxed in either
town. The increased value of the real estate
by reason of the incident natural monopoly, or
incident acquired rights, is to be taxed in the
town in which the real estate is situated."
The principles thus enunciated by Judge
Emery have been followed in later Maine
cases. They are In accordance with the rule
in New Hami>shlre and in the later Massa-
chusetts cases.
In Water Power t. Buxton, 98 Me. 29S,
56 Atl. 914, the court said :
"The property assessed here was a 'mill privi-
lege.' It was the land and the dam, but it
was the land and the dam situated as they were,
with the capacity to hold the water of the
stream and create power. By the terms of the
assessment, the power was not assessed, and the
water was not assessed. The 'privilege' was as-
sessed. Its value might be greatly enhanced by
the existence of tbe water and the means of
creating the power."
In Fibre Co. v. Bradley, 99 Me. 263, 69 AtL
83, it appeared that the plaintiff was the
owner of the entire dam and mill privilege
of the Penobscot river as it flows between
Oldtown and Bradley. The principal worlcs
of the plaintiff were situated in Oldtown, and
nearly all the water power created by the
dam was used there. The plaintiff urged
that such water power should be regarded
as appurtenant to the mills in Oldtown, "and
that the additional value which the exist-
ence of the water power creates should not
be assessed to the company In Bradley." The
court said:
"Land upon which a mill privilege exists is
taxable, and the value of the land may be great-
ly enhanced by the fact that its topography is
such that a dam may be maintained across a
stream upon it, and water power thereby creat-
ed. The capability of the land for such use, and
the probability or certainty, as the case may
be, of its use, certainly affect its value. • • •
It is not. where is the water power crcnted by
the appellant's dam used, but bow much is its
property in Bradley worth. How much is it
worth as it stands— not for farming merely, or
for bouse lots, uor for any other one thing, but
for any and all purposes for which it may be
used. How much is it worth, taking into ac-
count that it is part of a valuable mill privi-
lege."
The question now under discussion has
arisen in a number of New Hampshire cases,
and the Supreme Court of that state lias
passed upon it in very carefully considered
opinions. Those cases are all opposed to the
contention of the petitioner that a part of
the value of the mill privilege In Burrilivllle
shall be held to have become appurtenant
to the mill at Slatcrsville, and to be taxable
solely in the town of North Smithfleld. Co-
checo Co. V. Strafford, 51 N. H. 4.55 ; Manu-
facturing Co. V. Gilford, 64 N. H. 337, 10 Atl.
»49; Amoskeag Co. v. Concord, 66 N. H.
562, 34 AU. 241, 32 L. R. A. 621.
In Pingree v. County Commissioners, 102
Mass. 76, it appeared that the petitioner was
the bolder of land and a dam in tbe town of
Wlnsor, which was used to form a reservoir
to hold back water to be used at mills in
the towns of Dalton and Pittsfield. The
dam, independent of its use for the purpose
of a reservoir, was of nominal value, but
for that poipose was of great value; the
land while covered by water was of only
nominal value considered merely as land
without regard to reservoir purposes. The
assessors of Wlnsor taxed the dam and land
for $15,000. l%e plaintiff asked for an
abatement of the tax, contending that the
said valuation and tax must have been made
and assessed upon the water power, none of
which was applied in Wlnsor. Tbe court
pointed out that Boston Mfg. Co. v. Newton,
22 Pick. (Mass.) 22, apparently relied upon
by the plaintiff as It is by the petitioner In
the case at bar, while It decided that the
water power should be regarded as incident
to the mills to which it was applied, did not
decide that the land and the structures by
which the water power was created were not
taxable at their value for sucb purposes.
The court in the Pingree Case sustained tbe
valuation and tax; held that the land and
the dam are taxable In Wlnsor, and "that
the valuation should be made, not subject
to the use to which they are, for the time, ap-
propriated, nor Independently of that use,
in any sense which excludes it from consid-
eration as a means by which their value Is
made available."
In Blackstone Mfg. Co. v. Blacfcstone, 200
Mass. 82, 85 N. E. 8S0, 18 L. R. A. (N. S.) 755,
It appeared that a Rhode Island corporation
erected in Massachusetts a dam across the
Blackstone river, and constructed in con-
nection therewith, upon land owned by It,
canals, ponds, and trenches In the town of
Blackstone, but, without making any applica-
tion of the water power in Massachusetts,
carried the water In a trench with a slight
fall Into Rhode Island, where it was used in
a powerhouse to generate electricity with
which to run a mill In that state. The as-
sessors of Blackstone taxed such of the pn^>-
erty of the corporation as was in that town,
including the dam, the pond, the canals, and
the trench, with reference to its value as a
means of furnishing power at the corpora-
tion's power house In Rhode Island, and the
corporation petitioned to have the tax abat-
ed. As part of a very fully considered opin-
ion, the court said:
"What is the value of the petitioner's prop-
erty, having reference to any and all of the
uses to whirh it is adapted? • • • If con-
ditions in Rhode Island were disregarded, the
value of the property in Massachusetts, includ-
ing with the land and water the fall which the
land furnishes, and the dam, pond, canals, and
other appurtenances, would be estimated in ref-
erence to the most profitable uses to which it
could be put, and especially its use to furnish
power to a mill in Massachusetts, situated near
the line of the state of Rhode Island. Inas-
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WHITE ▼. TAYIiOB
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much tm it haa been Joined to the property la
Rhode Inland, and used with the slight addi-
tional fall there to produce a single unit of wa-
ter power, and inasmuch as it ia found that this
is the most valuable use to which it can be
put, there is no reason why its value should not
be considered in reference to the use to which
it is adapted^ and which is now made of it in
connection with the property in the other state."
In the state of Connecticut It is provided
by statute that, when water power is used
in a different town from that In which It Is
created, such power shall be listed for taza-
tiOD only In the town where It is used. In
Quinebaug Reservoir Co. v. Union, 73 Conn.
294, 47 AU. 328, It appeared that the plain-
tiff was the owner of certain water rights
in the town of Union, which the court held
to be an Incorporeal hereditament and real
estate. The plaintiff employed these water
rights for the purpose of accumulating a
water supply for use by mills lower down on
the stream In the state of Massachusetts.
The court held that the said statute was to
be construed as applicable only to towns In
Connecticut. As the power was used In
Massachusetts the ordinary rule governed,
and the water privilege was properly taxed
in Union.
"When water is artificially stored upon land
so as to create mechanical i^ower by its fall,
the necessary result is to bring into existence
a new element of value. If the land thus used
for storage purposes would be more valuable for
other purposes, the value gained is less than the
value lost. If, on the other hand, the power
created has a value exceeding that of the land
occupied, the taxable resources of the state in
which that land is situated are increased."
In our opinion, the better reason well sup-
ported by the weight of authority is that land
should be taxed with all its elements of val-
ue in the town where the land is situated.
If land upon a stream has such topography,
either natural or artificial, as to give to the
land the capacity to control the current of
the stream, and to pour out the water of the
stream from an elevation, thus creating wa-
ter power, these circumstances enhance the
value of that land and furnish a basis for
taxation. This Is true whether that capacity
Is employed to create water power to be
used on that land or upon other land In an-
other town or another state, and also even
in case such capacity of the land Is not em-
ployed at all. If water power thus created
is conducted to mills situated elsewhere, and
there applied, IJiat circumstance may rea-
sonably be regarded as Increasing the value
of the mills receiving such power, and may
be considered In the taxation of such mills;
but no element of value Is thereby taken
from the land, where the power is created
and transferred and made appurtenant to
the mills where the power Is used.
In our opinion, the petitioner Is not enti-
tled to relief upon either of the grounds that
it has urged before us. We give decision in
favor of the respondents for their costs.
The papers are ordered to be sent back to
the superior court with this decision certi-
fied thereon, and with direction to enter final
Judgment upon said decision.
(n Conn. 681)
WHITE T. TATLOn.
(Supreme Court of Errors of Connecticut
June 1, 1917.)
1. Brokebs «=>88f8>— Acnoir fob Cokuib-
BION — iNSTBUCnoN.
In broker's action for loss of profit when
defendant saloon owner refused to sell to par-
chaser obtained b^ plaintiff, charge heid to mace
burden on plaintiff to prove consent of defend-
ant's partner if defendant's offer to sell was on
condition that partner's consent be obtained.
[Ed. Note.— For other cases, see Brokers, Cent.
Dig. iS 124, 127.]
2. Trial «=>287(3) — Modificatioit or
Chaboe.
Modification of charee Held a proper appli-
cation of a legal proposition to the evidence.
[Ed. Note.— For other cases, see Trial, Cent.
Dig. §S 668, 672.]
3. Trial e=»25e(13) — Instructions — Rk-
QrESTS.
In an action for commission in nesotiatinir
sale of a business, a charge on the question of
damaices was not erroneous for failing to state
that the Jury should add interest in case of a
verdict for plaintiff, plaintiff not calling to the
court's attention that he claimed interest should
be added if the jury found for him.
[Ed. Note.— For other cases, see Trial, Cent
Dig. I 640.]
4. Brokers «=385(3)— Actions fob Compen-
sation—Eviden ce— Relevancy.
The fact that the prospective purchaser of
a saloon, procured by a broker endeavoring to
negotiate its sale, had money enough to Duy
another saloon three months later, was not it-
self evidence in the broker's suit for commission
that he had enough three months previous.
5. Partnership €=>49— Evidencx of Exist-
ENCB— MATERIALrrr.
In suit against a member of a firm operating
a saloon for commission for negotiating sale of
the saloon, defendant contending that his agree-
ment to sell through the broker was conditioned
on his partner's consent the partnership agree-
ment was admissible to prove the existence of
the partnership.
[Ed. Note. — For other cases, see Partnership,
Cent Dig. SS 67-74.]
Appeal from District Court of Waterbury ;
Francis T. Reeves, Judge.
Ajction by Alexander J. White against
Thomas J. Taylor. From a Judgment for
defendant, plalutliT appeals. No error.
The plalntlfTs complaint alleges In sub-
stance these facts: In September, 1914, the
defendant was the owner of a retail Uquor
tmsiness in the town of Torrlngton. On the
day named the defendant agreed with the
plaintiff to sell the business within a reason-
able time for $9,500. The defendant agreed
to pay the plaintiff as compensation for his
service in obtaining a purchaser any sum
realized over $9,500, and If the plaintiff fail-
ed to procure a purchaser the plaintiff would
make no charge for his services. In October,
1917, the plaintiff procured a customer for
^9For otbcr case* see same topic and KET-NOUBBR in all Key-Numbered Digest* and Indexes
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101 ATLANTIC EEPORTEE
(Conn.
the business tor the price of $10,000. The
defendant refused to sell, and the plaintiff
lost the profit of $500. The defendant's an-
swer was a general denial. The defendant
offered evidence tending to prove the follow-
ing: The plaintiff had been In the real es-
tate and meat business In the city of Wateiv
bury for five years. The plalntltT is a Lithu-
anian, and speaks that language. At the time
of the alleged agreement to sell, the defend-
ant and one Zavakay were partners and Joint
owners of the liquor license and saloon busi-
ness In Torrlng^ton. Before the agreement
was made, the plaintiff and several of his
friends, all Lithuanians, visited Torrington
for the puriwse of buying a saloon, and on or
about the 1st day of September, 1914, the
plaintiff called upon the defendant and re-
quested him to sell the saloon. At that time
the defendant Informed the plaintiff that he
was willing to sell the saloon, providing bis
partner would agree to the sale. On or
about S^tember 18th the plaintiff again
visited the saloon, and the defendant then
agreed to sell the saloon to the plaintiff for
$9,600 providing his partner, Zavakay, would
agree to the sale. The plaintiff had one or
two Interviews with Zavakay, and he would
not consent or agree to the sale. The defend-
ant understood from the plaintiff that he was
the prospective buyer, and he never Inform-
ed the plaintiff that the price of the business
was $10,000. The plaintiff and one George
Mlglan came to the saloon later, and led the
defendant to believe that Mlglan intended to
purchase the business, and ttuit the plaintiff
was acting as Miglan's agent The plaintiff
never informed Mlglan that the defendant's
price for the saloon was $9,500, but did in-
form him that the price was $10,000. On
October 7, 1014, Mlglan offered to buy the
business. The defendant never placed the
saloon and liquor business In the plaintiff's
hands for sale as a broker, and the plaintiff
never informed the defendant that he ex-
pected conpensatlon In the event of a sale.
The plaintiff offered evidence tending to
prove the allegations of the complaint. The
cause was tried to the Jury, and verdict was
rendered for the defendant From a Judg-
ment for the defendant the plaintiff appeals,
assigning as error that the court erred In the
charge to the Jury, and his refusal to charge
as requested by the plaintiff, and assigning as
erroneous rulings on evidence.
Clayton L. Klein, of Waterbury, for appel-
lant Edward B. Reiley, Jr., of Waterbury,
for appellee.
SHUMWAT, J. (after stating the facts as
above). The material and controlling fact
In the plaintiffs case was the agreement set
out in the complaint and as the parties were
directly at Issue on this allegation, a verdict
for the defendant necessarily Implies a find-
ing of liils Issue for the defendant and the
Judgment most stand, unless there is some
material error In the charge to the Jury.
[1] The plaintiff complains of this para-
graph taken from the charge:
"If you believe that the defendant told White
that before the sale of the business could be
consummated the consent of the defendant's
partner must be obtained, then before the plain-
tiff could recover from the defendant it would
have to appear, by a fair preponderance of the
evidence, that the partner's consent had in fact
been obtained. Such consent would be a part
of the tenns of the sale. Otherwise the consent
must have been obtained before the terms of the
sale were made."
The last sentence may not be entirely clear,
but its meaning in connection with the con-
text is apparent The Jury must have under-
stood that there was no contract binding on
the defendant without the partner's consent
to the sale in case the Jury found the defend-
ant's offer to sell was upon condition that
first the consent of the partus must be ob-
tained, then the burden was upon the plain-
tiff to prove such consent
[2] The plaintiff fiurther complains that the
court refused to charge as follows:
"An agent who obtains a purchaser who la
ready, able and willing to buy the property upon
the terms and conditions prescribed by its owner
is entitled to his commission though the sale
finally falls through, liecause the owner subse-
quently refuses to sell on such terms and seeka
to impose additional conditions."
An Inspection of the charge shows that
the court used that exact language, but add-
ed these words:
"It la for. you to say whether Miglan was a
person ready, willing, and able to buy the retail
liquor business in question at the terms pre-
scribed by the defendant if you further ijelieve
from the evidence that the plaintiff was author-
ized by the defendant to sell the premises or the
business."
There was no error In this. It was a prop-
er application of a legal proposition to the
evidence In the case, and the court left It to
the Jury to determine what In fact the con-
tract was between the parties.
[3] The plaintiff took an exception to the
charge upon the question of damages. In that
the court did not say to the Jury that they
should add interest In case of a verdict for
the plaintiff. As the Jury rendered a ver-
dict for the defendant they were not requir-
ed to consider the question of damages. The
plaintiff did not call to the attention of the
court that he claimed Interest should be add-
ed In case the Jury rendered a verdict in bis
favor for $500, and It does not follow as a
matter of law that In all cases such as this
Interest should be allowed.
[4] The plaintiff excepted to the ruling of
the court in excluding a question to the wit-
ness Mlglan. There was a question raised
as to Miglan's having enough money to pur-
chase the saloon, and It appeared he had, two
or three months later, purchased a saloon la
another place, and he was asked bow much
he paid for the latter saloon. This question
was excluded. The fact that Mlglan had
money enough to buy the saloon In Decembei;
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DE WOLT T. BONEE
233
was not In Itself evidence that he had enough
Id the October previous, but the case did
not turn upon that fact, though it appeared
in evidence that Mlglan had only ^,000 In
October, 1914.
[S] The court admitted In evidence, over
the objection of the plaintiff, the partnership
agreement between Taylor and Zavakay.
This agreement was admissible to prove the
existence of the partnership, and it did not
appear that It was used for any other pur-
pose.
There Is no error. The other Judges con-
curred.
(91 ConsL 711)
DB WOLF V. BONEE.
(Supreme Coart of Errors of Connecticut
Jane 14, 1917.)
1. IrlzcnANios' Liens ®=3281(4)— Evidenck—
Good FxrrH.
_ In a suit to foreclose a mechanic's hen,
evidence k^ld to sustain a finding that defendant
Iiad paid the entire contract price to the con-
Ixaotor in good faith.
[Ed. Note. — For other cases, see Mechanics'
Liens, Cent Dig. { 571.]
2l Mechanics' Liens <»=>149(4)— Cu^iu— Oeb-
TAINTT.
A suit for a lien cannot be maintained where
the lien claim does not disclose bow much ma-
terial had been fnrnished for the building
against which the hen was claimed ; another
bnilding having been erected at the same time
on an adjacent lot by the same contractor, and
the claimant having furnished material for both.
[Ed. Note. — For other cases, see Mechanics'
Liens, Cent Dig. % 259.]
S. Mechanics' Liens «=>136(2)— Statekent—
Descbiftion.
A statement for a mechanic's lien is fatally
defective, where it alleges that plaintiff has
inmished materials and rendered services for
the coDstmctlon of a certain Iniilding owned
by a named person and located upon a described
lot, where it appears that the material was in
fact fnrnished for two separate buildings owned
by different parties located on separate tracts
of land.
[Ed. Note.— For other cases, see Mechanics'
Idens, Cent Dig. i 214.]
Appeal from Court of Common Pleas, New
London County ; Charles B. Waller, Judge.
Action by Asahel R. De Wolf against
Joseph Bonee. Judgment for defendant and
plaintiff appeals. No error.
The action Is to foreclose a mechanic's
Men and for damages. On May 4, 1914, Alex-
ander Hepburn, a carpenter and builder, sub-
mitted the following proposal to the defend-
ant:
"Hartford, Conn., May 4, 1914.
"Mr. Bonee: I agree to furnish all material
and labor required to erect and ' complete the
carpenter and mason worlc on your cottage at
Sound View, Conn., for the snm of $1600.00.
"Alex Hepburn.
"This estimate includes painting two coats
outside and inside for the first and second story.
"Alex Hepburn."
Upon the same day the defendant accepted
Hepburn's written proposal. This acceptance
and proposal constituted the entire agree-
ment as t)etween the parties. No time was
fixed upon f<H: the payment of the contract
price by the parties. When this agreement
between Hepburn and the defendant was
made, James D'Atro, a relative of the de-
fendant, owned a lot of land adjoining the
defendant's lot at Sound View. Shortly
thereafter, D'Atro requested Hepburn to
build a cottage on his lot similar In all re-
spects to that which Hepburn had agreed to
build for the defendant. During the con-
struction of the D'Atro cottage, the plans
were changed so that his contract price was
$1,800. These contracts entered Into by the
defendant and D'Atro were entirely inde-
pendent of and had no connection with each
other. After making this contract, Hepburn
contracted with the plaintiff for certain
building materials which were to l>e d^v-
ered by the plaintiff at Sound View, and
which were used In the construction of the
cottages for the defendant and D'Atro. Be-
tween May 11, 1914, and the 22d day of June,
1914, the plaintiff furnished and delivered to
I Hepburn, on the premises of the defendant
and D'Atro at Sound View, building materi-
als for which Hepburn agreed to pay the
, plaintiff $1,928.44. No payment on this snm
I was made by Hepburn until July 17, 1914.
Hepburn completed the defendant's cottage
I on July 6, 1914. Prior to this time, the de-
\ fendant had paid to Hepburn on account of
his contract $1,300, $800 of which was paid
on June 20, 1914, and $500 of which was paid
on some date subsequent to June 20, 1914.
Both of these payments were made before
the defendant's cottage was completed. The
balance of $300 due on the defendant's con-
tract was paid by blm to Hepburn on July
17, 1914. The defendant had no knowledge
or information that the plaintiff was fur-
nishing materials for the construction of his
cottage until the 6th day of August, 1914, and
all the payments described in the foregoing
paragraph were made by the defendant with-
out notice of any kind to the plaintiff. Prior
to the 6th day of August, 1914, the defend-
ant paid Hepburn In good faith the sum of
$1,600, the full contract price for the de-
fendant's cottage. On July 17, 1914, Hepburn
paid to the plaintiff the sum of $1,000, for
which amount credit was given by the plain-
tiff to Hepburn on his account for materials
furnished which were used by H^bum in
the construction of the defendant's cottage
and the cottage of James D'Atro, and there
then remained due on account thereof to
the plaintiff the sum of $880. On the 22d
day of August, 1914, the plaintiff gave the
defendant written notice of his intention to
claim a lien for the sum of $880. This sum
represented the total balance due from Hep-
bum to the plaintiff for materials and serv-
ices furnished for the construction of the
cottage of the defendant and for the cottage
of D'Atro. On August 22, 1914, at the time
«fe»For other cases see same topic and KBT-NUMBER In all Ker-Numbered Disasta and Indexas
Digitized by VjOOQIC
234
101 ATLANTIC BEPOBTEB
(Conn.
the plaintiff gave the defendant written no-
tice of his Intention to claim a lien, there
was nothing due from the defendant to Hep-
bum. The certlflcate of lien filed by the
plaintiff against the premises of the defend-
ant states that the value of the materials and
services furnished for the construction of
the defendant's cottage amounts to the sum
of $880. It did not appear In evidence as to
Just what materials were used In the con-
struction of the defendant's cottage, other
than that the plaintiff furnished materials
to the value of $1,938.44, used in the con-
struction of both the defendant's and VAt-
ro's cottages, and that materials were fur-
nished to the value at least of $880, which
were used In the construction of the defend-
ant's cottage.
C. Hadlal Hull, of New London, for ap-
pellant. Edward W. Broder and John Lw
Bonee, both of Hartford, for appellee.
RORABACK, J. (after stating the facts as
above). [1] There are numerous exceptions
to the finding and to the refusal of the trial
court to find certain matters which the ap-
pellant claims were established by the evi-
dence ; but one of these merits consideration.
This exception relates to the foundation of
the plaintiff's cause of action. In this con-
nection, it appears that the plaintiff con-
tends that the court below erred in holding,
from the evidence, that the defendant in good
faith paid the full contract price for the
materials used In the construction of his cot-
tage t>efore he had any knowledge or Informa-
tion tliat the plaintiff was furnishing ma-
terials for his building. The plaintiff in-
sists that this conclusion is not Justified by
the evidence which is before us, and we are
asked to correct the finding so that It will ex-
press an opposite conclusion. An examina-
tion of the record discloses that the evidence
upon this branch of the case was conflicting,
and that the weight of It tended to sustain
the defendant's contention that the payments
made to Hepburn, the contractor, were made
in good faith. The proof relied upon by the
plaintiff to show that the payments made by
the defendant to Hepburn were not made In
good faith was that the defendant had a gen-
eral knowledge that some one besides Hep-
burn was furnishing materials for the con-
struction of his building. This was not
enough.
"Everybody who contracts (or a building must
know in a general way that the contractor is
not doing the work with his own hands, nor, as
a rule, with his own stock of materials. The
statute, however, contemplates a degree of
knowledge sufficient to give written notice to
each person who has furnished materials or
rendered services, and that must involve a
knowledge o( the nanies of such persons and
<if their relaciou to the work. Tlie plaia im-
plicntioD of tlic statute is that only persons so
Itnonn are entitled to notice. Ilubliell, Hull &
liaudall Co. v. Pentecost, 80 Conn. 208 [03 Atl.
072]."
The record discloses that there was evi-
dence from which tlie court could have rea-
sonably reached a conclusion favorable to the
defendant's contention upon the Question of
good faith. Therefore the motion to correct
is denied.
[2] There Is another serious oibjectlon to
the validity of the plalntifrs claim against
the defendant A careful examination of the
record discloses that the amount of his claim
cannot be ascertained. It appears that the
plaintiff did not take the necessary steps for
laying the foimdation of a claim for a lien
against the defendant's property, as be kept
no separate account of the materials furnish-
ed by him which were used in the construc-
tion of the Bonee cottage. The record dis-
closes that the materials for both cottages
wera sold to Hepburn for a round sum and
under one contract These materials were
delivered to Hepburn and used by him In the
construction of both cottages. There Is noth-
ing to indicate how much was used In the
construction of either cottage There is noth-
ing to show that the amount now claimed to
have been delivered for the Bonee cottage
was In fact used for any sudi purpose. The
plaintiff's claim does not meet the reaoire-
ments of our statute, in that it does not ap-
pear how much was in fact used in the con-
struction of the defendant's building.
In the case of Larklns v. Blakeman, 42
Ck>nn. 203, this court stated:
"The materials were not charged in a separate
account, but in a general account, including
cliarges for materials furnished for other build-
ings. In respect to that, however, perhaps the
finding shows with reasonable certainty that the
amount claimed was actually expended in the
two houses. The value of the materials fur-
nished for each house does not appear. The ag-
gregate value of the materials for th« two
houses is stated, a single lien is claimed covering
both houses and the Tots on which they stand,
and one certificate only is filed. The record
therefore does not show, and it is impossible
now to ascertain, the amount furnished for emch
house. This is a fatal objection."
The Larkins Case was one In which ma-
terials were furnished, under separate con-
tracts, for two houses that were being con-
structed by the same builder upon adjoining
lots; one being commenced about six weeks
before the other. No seimrate account was
kept of the materials furnished to either
bouse, and It could not be ascertained how
much had gone Into either.
[3] The plainUff in his cerUflcate of Uen
states that he has "furnished materials and
rendered services In ttie construction of a cer-
tain building owned by said Joseph Bonee
and situated in the town of Old Lyme, on a
lot of land belonging to said Joseph Bonee,"
and then he claims a lien "on said building
and land on which It stands." It now ap-
pears that the certain "building and land on
which it stands" were two separate build-
lugs owned by different parties and located
upon separate tracts of land. It is plain that
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STAMFORD TRUST CXJ. v. MACK
235
such a lien does not meet with the require-
ments of our statute.
There Is no error. The other Judges con-
curred.
(91 Conn. 620)
STAMFORD TRUST C50. ▼. MACK et al.
(Supreme Court of Errors of Connecticut.
June 1, 1917.)
1. Tbubts «=s>226— Trustee— Lia.bu.itz >ob
Taxes— Drir to Pat.
Those to whom a testamentary trustee is
required br the will to accord the right of oc-
copancy oi a building, even though such right
is concutioned cm their defraying the expenses
of carrying the property, are under no legal
obligation to pay taxes on the building levied
against, the trustee having the legal title and
right of possession; it being the trustee's duty
to cause such taxes to be paid if the means to
accomplish that end are at its command.
[Ed. Note.— For other cases, see Trusts, Cent
Die. I 323.]
2. Trusts ®=>184— Trustee's Dxttt to In-
sure, etc.
It was the duty of a testamentary trustee,
holding legal title to a buildf jg, to make neces-
saiy repairs and maintain reasonable insurance
thereon ; the will having made an express bequest
to the trustee to pay taxes, defray the cost of
insurance and necessary repairs, and to keep
the property free from incumbrances-
[Ed. Note.— For other cases, see Trusts, Cent
Dig- i 238.]
3. WnxB <S=>e84(5) — Trust- Patuemt of
Taxes— Use of Funds.
Where testator's will provided for the ac-
comulation of a $14,000 fund, and devoted it to
the production of income to be paid over to
surviving nephews and nieces, it being his evi-
dent Intent that the fund, when accumulated
to the specified amount should be kept intact,
and its income enjoyed by the nephews and
nieces, the trustee could not appropriate any of
the income of such fund, or any of its prin-
cipal, to the payment of taxes or the cost of
insurance or repairs on a Imilding which the
nephews and nieces were given the right to oc-
cupy so long as they remained unmarried.
[Ed. Note.— For other cases, see Wills, Cent
Dig. { 1621.1
4. Trusts «=>191(1)— Trustee's Power to
Sell Rbaltt— Payment of Taxes.
Where testator's will gave a building for
the occupancy of his nephews and nieces so
long as they should remain unmarried, etc., and
provided that on the death of all the beneficia-
ries the executors and trustees should transfer
all the estate to a Lutheran seminary, to apply
a portion not exceeding $14,000 to the erection
of a brick or a stone church on the realty on
which the building stood, and the trustee for
the nephews and nieces was expressly author-
ised to sell and convey by proper deed any and
all portions of testator's estate, the trustee had
power to aell and convey the northerly half of
the realty on which the building stood to pro-
cure money to pay accrued taxes on the prop-
erty, to make repairs, and to secure insurance,
if tiie course was necessary to carry testator's
purpose into effect to the fullest practicable ex-
tent
[Ed. Note.— For other cases, see Trusts, Cent.
Dig. f 243.1
Case Reserved from Superior Court, Falr-
fleld County; Edwin B. Gager, Judse.
Suit by the Stamford Trust Company, ex-
ecutor and trustee, against Dorothea W.
Mack and others. Reserved by the superior
court on an agreed statement of facta for the
advice of the Supreme Court of Errors. Supe-
rior court advised.
Charles F. A. Mack died in Stamford in
1882, leaving personal estate and a single
piece of real estate located on Franklin street
In that dty. By provisions of his will pre-
ceding the seventeenth paragraph be made
dl^Nisitions of personal estata The seven-
teenth, nineteenth, twentieth, twenty-first,
and the first portion of the twenty-second
paragraphs are as follows:
"Seventeenth. I give and devise to my execu-
tors and to their successors, my real estate, in-
cluding the buildings thereon, situated on Frank-
lin street in said Stamford, in trust neverthe-
less to hold the some as a place of habitation
free of charge, for my said nephew and nieces
jointly during the term of their natural lives, or
so long as they and each of them shall be and
remain single and unmarried, and it is my
will that if at any time hereafter my said neph-
ew or any of my said nieces shall marry, such
use shall thereupon cease so far as such one or
ones as shall be married are concerned, but the
same shall be en^'oyed jointly by such of them
as shall remain single and unmarried, and it is
my further will and desire that should the
wife or husband of such of my said nephew or
nieces as shall marry, die leaving them surviv-
ing such nephew or nieces shall thereupon be
entitled to the use of said premises jointly with
the others, in the same manner as if they had
never married, and further in case none of my
said nieces or my said nephew shall have re-
mained single and unmarricu, or neither of them
shall have become widows before the last of
my said nieces and my said nephew shall have
married, then it is my will, and I hereby give
my said executors and their successors the pow-
er, in their discretion to continue said use for
the benefit of my niece last married or any or
all of my said nieces, for the purpose of prevent-
ing at all times the invalidation of any policy
or policies of insurance now covering or to
hereafter cover the buildings ut>on said real es-
tate, giving to my said executors and to their
successors the right to extend and continue
such use during the life time of such of my
nieces as they (my said executors) may see fit,
but upon the death of any of them, said use
shall thereupon at once and forever cease, so
far as her or their respective husband or hus-
bands are concerned, and in case my said neph-
ew or either or any of my said niecea or all of
them, shall take any steps towards the invalidat-
ing of this my last will and testament, or shall
appeal from or in any way oppose any of the
acts of my said executors or their successors in
the administration of my estate as herein pro-
vided, then I hereby give to my said executors
and their successors the power to discontinue
such use of my said real estate as is herein given
so far as such one or ones aa shall in any way
oppose or appeal from the administration of my
estate, are concerned, and my said executors and
their successors shall also have the power, at
any time thereafter in their discretion, to renew
snch use in the same manner as if such use haa
never been discontinued. • • •
"Nineteenth. In case any apartment in m.v
said dwelling or the whole premises including
the bam shall not be needed or occupied by my
said nephew or any of my said nieces as herein-
before provided, then I he^e^y request and em-
power my executors and their successors to rent
the same temporarily from time to time until
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101 ATLANTIC REPORTEE
(Conn.
my said nephew and all of my said nieces shall
have deceased and to invest the income derived
therefrom in the manner provided herein for
the residue of my estate.
"Twentieth. All the rest, residae and remain-
der of my estate of whatever kind and whereso-
ever situated I hereby give to my said execu-
tors and their successors, so as to vest in them
the le^al estate, but to bold the same in trust,
nevertheless, for the following purposes and
uses, to wit: to invest the sum of fifteen hun-
dred ($1,500) dollars in such manner and upon
such security as they may deem best, and to
apply the income derived therefrom, or so much
thereof as may be necessary, and if necessary, at
their discretion any or all of the principal sum,
towards the payment of all legal taxes levied on
my said real estate on Franklin street aforesaid,
and for the continuing of any fire insurance on
said buildings, and for such repairs to said
buildings, as may from time to time be neces-
sary, and also to keep the entire legal estate
from encumbrances or record during the natural
life of my said nephew or any of my said nieces,
and upon the death of my said nephew and all
of my said nieces, it shall be the duty of my said
executors or their successors, to transfer said
sum or so much thereof as shall then remain,
to tbe Evangelical Lutheran Seminary of Getty»-
burg. Pa., for the uses and purposes hereinafter
directed. To invest the balance of said rest,
residue and remainder of my estate in such man-
ner as in the opinion of my said executors shall
seem best, until the same with the accumula-
tion of interest shall amount to fourteen thou-
sand ($14,000) dollars, and thereafter to apply
the income thereof, one half annually in equal
shares to the use of my said nephew Charles F.
Mack and my said nieces Christine C. Schaal-
man, Catherine A. Mack and Kmilie C. Schmidt,
or such of them as shall then be living, during
their natural life, and one half annually in
equal shares to the use of my said nieces iJoro-
tbea W. Mack, Anna B. Mack and Etiie J. Mack
or such of them as shall then be living, and in
the event of the marriage of my said nephew
or either of my said nieces his or her share of
said income shall be paid to him or her. for his
or her sole and separate use, and in the event
of the death of my said nephew or any of my
said nieces, the ^are of such deceased shall
be divided among the survivors in equal shares
per capita.
"Twenty-flrst. Upon the death of my said
nephew and all of my said nieces, I direct my
said executors or their successors to transfer all
my estate, both real and personal and whereso-
ever situated, to the Evangelical Lutheran Sem-
inary of Gettysburg, Penn., and to its succes-
sors forever, in trust, to apply a portion there-
of, not exceeding the sum of fourteen thousand
($14,000) dollars, towards the erection and com-
pletion of a church of brick or stone upon my
said real estate on Franklin street in said Stam-
ford, for the use of the Evangelical Lutheran
Church and to apply the income of the remainder
thereof towards the support of a. pastor therefor,
and the maintenance of said church, paying over
said income in such manner as said Evangelical
Lutheran Seminary of Gettysburg, Pa., may
deem expedient for such purposes and I make
this bequest and devise upon the express condi-
tion that religious services held in said church
in said Stamford shall be mainly conducted in
the German language, and also upon the condi-
tion that there shall be placed over the main
entrance to said church a marble slab or tablet,
on which shall be conspicttousl;y inscribed, in
memory of my mother, tbe following words : 'In
memoriam Lucie Christine Elizabeth Mack.'
"Twenty-second. I hereby give to my said
executors or to such of them as may accept said
trust and to the majority of them and to their
successors in like manner, the power to sell,
invest, reinvest and take charge of my entire es-
tate and to give proper deeds of c<Hiveyance
therefor and to execute any and all instru-
ments which may be necessary in Uie prem-
ises. • • •"
By the eighteenth the testator authorized
the executors to sell and convey a cemetery
lot. The last portion of the twenty-second
paragraph, with which the will is concluded,
deals with the appointment of executors and
the choice and authority of their successors.
The plaintiC! is the successor of the three
persons named by the testator as executors
and trustees, and by the terms of the will it
bag all the powers given therein to them.
The Evangelical Lutheran Seminary declin-
ed to accept the trust created Jsa the twenty-
first paragraiA, and the defendant Herges
was appointed trustee in its stead. No assets
of the estate have ever come into his hands.
The $1,500 fund created pursuant to the
twentieth paragraph has been exhausted in
meeting the demands upon it as provided in
that paragraph.
A large sum of money Is dne for unpaid
taxes laid upon the Franklin street real es-
tate, and the buildings thereon are In great
need of repair. The balance of the rest, resi-
due and remainder of the estate referred to
In the last portion of paragn^aph 20 has been
invested, and after accumulation to the
amount of $14,000 the income thereof has
been paid over from time to time to the neph-
ews and nieces entitled to receive It The
plaintiff now has that fund in its hands.
That, and the Franklin street real estate,
comprise the only property of the estate
held by tt. Six of the nephews and nieces
are living, four of them are unmarried. The
husband of the fifth has been absent and his
whereabouts unknown for more than seven
years.
The Franklin street lot has a frontage of
120 feet The house is located upon its
southerly portion. The northerly portion
contains no buildings and is unproductive.
The lot is susceptible of division as proposed
by the plaintiff. It represents that it would
be for the best interests of the estate and
best to promote the Interests of the benefici-
aries under the trust that the northerly half
of the lot, 60 feet In front, be sold and the
proceeds used as far as necessary In the pay-
ment of taxes, and the balance disposed of as
the court may direct
Warren F. Cressy, of Stamford, for plain-
tiff. H. Stanley Finch, of Stamford, for de-
fendant Wm. J. Berges, trustee. Hugh J.
Lavery and Lawr^ce S. Flnkelstone, both of
Bridgeport, for defendant Christine Schaal-
man.
PRENTICE, C. J. (after Stating the fftcts
as above). The plaintiff has in its hands as
trustee, under the provisions of a wlU, a
tract of land In Stamford having 120 feet
frontage and a dwelling house thereon and a
fund of $14,000. The trust Is not fully exe-
cuted, and it holds no other pr<^)erty of the
estate. A fund of $1,600 left by the testator
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STAMFORD TRUST CO. y. MACK
237
for tbe special purpose of paying the taxes
which might be levied upon this real estate
jnd thereby keeping it free from incum-
brance during the continuance of the trust
aiid of defraying the expense of Insurance
and necessary repairs during such period has
been exhausted. Already unpaid taxes cov-
ering a period as far back as 1911 have ac-
cnmulntpd, and tbe dwelling Is sadly in need
of repair. The trustee has no means at his
command to use either In paying tbe taxes
or In making repairs without a resort to ei-
ther the principal or Income of tbe $14,000
fund or a sale of the portion of the real es-
tate. In this situation it seeks the advice of
tbe superior court as to the true construction
of pertinent portions of the will and its duty
and powers In the premises under that con-
«tractlon.
As far as the real estate is concerned, it Is
apparent that the best interests of all par-
ties concerned demand that all accrued and
accruing taxes be paid, and the property
thus be kept free from lien and saved from
danger of sequestration. In that way only
can tbe manifest Intent of the testator be ef-
fectuated, and bis purpose saved from defeat.
[1] 'Iliose to whom the plaintiff is required
by the terms of the will to accord the right
of occupancy, even- though that right were
conditioned upon their defraying the expense
of carrying the property, would be under no
legal obligation to pay the taxes levied, as
they presumably and properly were, against
the trustee having the legal title and right of
possession, and could not be made to do so.
It is clear, therefore, that It Is the plaintiff's
dnty as trustee to cause these taxes to be
paid, if the means of accomplishing that end
are at its command.
[2] Tbe situation, in so far as the Insur-
ance and necessary repairs are concerned, is
somewhat different. The interest of the de-
fendant Berges as trustee for the Evangeli-
cal Lutheran Church and of that church as
cestui que trust in having the house insured
and preserved in habitable condition is not.
In view of the provisions of the will, so clear-
ly apparent. The nephews and nieces, how-
ever, have such interest. Not only that, but
under the peculiar terms and provisions of
tbe will they are In a position to successfully
claim that It was the testator's expressed
purpose that they should have the use of the
Imllding as one fit for habitation without
charge or expense to them, and that wbat-
«ver charge or expense might be involved In
so maintaining It should be borne by his es-
tate, iu so far at least as the means to do so
nere available. The manner of his gift In
their favor through the Intervention of a
trustee, the language used in making it, and
tbe bequest to the trustee for the purpose of
paying taxes, defraying the cost of insurance
and necessary repairs, and keeping the prop-
«rty free from Incumbrance, when read to-
gether indicate this. Thus the plaintiff trus-
tee's duty to make necessary repairs and
maintain reasonable insurance Is established,
assuming, of course, that the means where-
with to perform it are within its reach.
The plaintiff's duty being established, the
problem which the trustee has next to face
concerns the ways and means. The nephews
and nieces, as we have seen, are under no le-
gal obligation to provide them. The same
line of reasoning which establishes their
right to the use and occupancy of the prop-
erty in habitable condition without charge
for the cost of necessary repairs also estab-
lishes their freedom from moral obligation to
do so. Mr. Berges, the trustee who is to re-
ceive property of the estate on behalf of the
E]vangellcal Lutheraii Church, is likewise
free from that obligation. Tbe plaintiff is
thus compelled to look to the property of the
estate In its hands, which is confined to the
real estate and the $14,000 fund.
[3] Tbe latter fund is unmistakably devot-
ed by the testator to the production of in-
come to be paid over to surviving nephews
and nieces. It was his evident intent that
the fund, when accumulated to the amount
specified, should be kept Intact and its in-
come enjoyed by them. They were made Its
beneficiaries, and any appropriation of its
Income or of its principal (thereby reducing
the income) for the payment of taxes or cost
of insurance or repairs would be a withhold-
ing from them of what was their just due,
and, as far as the taxes were concerned, a
clear diversion from them for the benefit of
those who are entitled to enjoy the property
after they are gone.
Turning to the real estate itself, we find
that the trustee is by the twenty-second
paragraph of the will expressly authorized
to sell, and by proper deed of conveyance to
convey, any and all portions of the testator's
estate. This power to sell and convey Is not
one whose exercise is restricted to any emer-
gency. It is unlimited. That it comprehends
the real estate and was intended so to do is
made evident by the testator's language giv-
ing authority not merely to sell, but to sell and
convey by "proper deeds of conveyance.** As
the real estate in question was all that the
testator owned, this langutige must have been
used with reference to it, and with the pur-
pose of empowering Its alienation by the
trustees. Authority so given implies author-
ity to alienate at discretion. Bristol v.
Austin, 40 Conn. 438, 439. BMdently, there-
fore, the testator's purpose lodioated in am
earlier paragraph of preserving It for the
erection of a church thereon was not the fore-
most one in his mind, nor his direction In that
regard absolute and unyielding.
The power of sale is coupled with one to In-
vest, reinvest, and care for the proceeds.
Quite likely the testator did not anticipate a
contingency In which funds in excess of
those 8i>eclfically provided for the purpose
would be needed to meet expenditures requir-
ed to be made in furtherance of the best in-
terests of his trust estate, and thought aaly
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238
101 ATLANTIC KBPORTEB
(Del.
of InTcstment and relnvestnieiit. Bnt the
power of sale as authorized having been exer-
cised, and a portion of the property having
been sold, the proceeds would form a part of
the trust estate not devoted by the testator to
a spedflc purpose, and available for use in
the preservation of the trust pn^erty and
the conduct of the trust in such a way as to
efTectuBte the testator's Intent to the fullest
practicable extent
[4] Our conclusions render It unnecessary
to consider the aM>eal which Is made to sec-
tion 1035 of the General Statutes In support
of the authorl^ of the superior court to
order a sale We are of the opinion, there-
fore, and the superior court Is advised:
(1) That the plaintiff has ample power un-
der the provisions of the will to sell and con-
vey the northerly half of said premises as
pr(v>06ed, if In Its judgment such course Is,
under existing drcumstauces, necessary or
prudent in order that the testator's purpose,
as expressed In his will, may be carried Into
effect to the fullest practicable extent, and the
best interests of the trust and of the b«ie-
fldarles thereunder be subserved.
(2) That It may use so much of the proceeds
of such sale as may be required to pay the
taxes already laid or which may hereafter be
laid upon said real estate la Its bands, and
also so much thereof as may reasonably be
necessary In order that the d-welllng house
thereon may be kept reasonably Insured and
In a reasonably habltoible oondltl<Hi.
(3) Tbat any unexpended balance of sudi
proceeds should be held by It under the terms
of the trust In lieu of property sold.
The superior court is further advised that
it is the plaintiff's duty to continue to pay
over the income of the $14,000 fund to the sur-
viving nephews and nieces In the manner and
the proportion stated in the twentieth para-
graph of the testator's will.
No costs in this court will be taxed in favor
of any of the parties. The other Judges om-
curred.
(6 Boyce, 662)
MILFORD CO. T. SHOBT. (No. 77.)
(Superior Court of Delaware. New Castl«.
June 7, 1017.)
1. Novation «s>5— Contbact or Saix.
Where a contract for the sale and delivery
of lumber for a building was assigned by the
buyer for valuable consideration, the seller hav-
ing notice of the assignment, in the absence of
the seller's agreement thereto, some new prom-
ise on bis part to the assignee based on consid-
eration or eztingnishment of the seller's liabili-
ty to the buyer, there was no novation.
[Ed. Note.— For other cases, see Novation,
Cent Dig. i 5.]
2. CoNTBACTB (3s»346(4)— Action fob Bbeaoh
— Vabiance.
Proof of any contract other than that de-
clared on in an action for breacti constitutes a
fatal variance.
[Ed. Note.— For otlier cases, see Contracts,
Cent. Dig. §9 1720, 1722-1725.]
3. AssioNicENTS «=»121 — (Those in Action-
Suit.
A chose in action, such as a contract to sell
and deliver lumber for a building, was not as-
signable so as to entitle the assignee to main-
tain an action in its own name for breach; it
should have sued in the name of the assignor.
[Ed. Note. — For other cases, see Assignments,
Cent Dig. {f 200-205.]
Action brought by the Milford Company,
a corporation of the State of Delaware,
against Isaac D. Short On motion at close
of plaintiff's testimony for nonsuit Granted.
The action was for an alleged breach of con-
tract, entered into between Kmll P. Gebhart
and the defendant for furnishing lumber by
the latter to the former, for the erection of
a certain building in the town of Milford,
Sussex (bounty.
After some deliveries of the lumber bad
been made to Oebhart, he assigrned the con-
tract to th2 plaintiff, giving Short notice of
the assignment Short made subsequent de-
liveries; but failing, it being claimed, to
comply with his contract by delivering the
lumber as required In the construction of the
building, the Milford Company rescinded the
contract and bought lumber in the open
market to complete the building. The Mil-
ford Company, in Its own name, sued Short
for damages and declared on the assigned
contract At the close of plaintlfTs testi-
mony, counsel for defendant moved for non-
suit on the ground that an action at law
could not be brought for the alleged breach
of the c(Hitract in the name of the assignee,
but must be maintained in the name of the
assignor as the bolder of the legal right or
title.
It was contended for the plaintiff that the
evidence showed a novation of the contract
between all the parties, or a new contract
between Short and the plaintiff such as to
entitle the latter to sue in its own name.
Argued before BOYOB and HHISETj, JJ.
Andrew C. Gray and E. B. Berl, both of
Wilmington, for plaintiff. Robert H. Rldi-
ards and James I. Boyce, both of Wilming-
ton, for defendant
BOYCE, J. (deliveriiig the <H>InIon of the
court). [1, 2] Both on the pleadings and from
the evidence, this ia an action for the breach
of a contrail for the purchase of lumber on
the part of Emil P. Gebhart and the sale
and delivery thereof to Gebhart, on the part
of Isaac D. Short, the defendant, for the erec-
tion of a certain building. The contract was
subsequently assigned by Gebhart to the Mil-
ford Company, the plaintiff, with notice to
Short There is no proper suggestion In the
declaration of a novation of the contract.
The averment In the declaration is:
" • • ♦ On the eiehteenth day of July, A.
D. 15)12, the said Emu P. Gebhart by certain
writing signed by him, bearinK date the day,
month and year last aforesaid, for valuable con-
sideration, assigned, transferred, bargained and
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STATE y. KANB
239
sold to the plaintiff all his right, title and Inter-
cast under uie said contract, whereof the said
defendant on the same day, month and year
aforesaid had notice."
It is not shown that the defendant agreed
to the assignment, or that there was any
new promise on bis part to the plaintiff
based on any consideration therefor from the
plaintiff to the defendant, or that the liabil-
ity of the latter to Gebhart was extinguished.
McKlnney v. Alvls, 14 111. 33; Cole v. Bod-
flsh, 17 Me. 310. It is scarcely necessary to
say that proof of any other contract than
that declared on constitutes a fatal variance.
[3] The contract sued on being a chose in
action, was not assignable so as to entitle
the plaintiff, the assignee, to maintain an ac-
tion thereon In its own name for a breach
thereof; for in such a case the assignee must
sue in the name of the assignor. 1 Saund. Pi.
ft EJv. 144 ; Dicey on Parties to Actions, rules
6, 15, pages 80, 136; 1 Chitt-y, PI. 15; Elliott
on Contr. % 1431; 6 C. J. 9S6; Klnnlken ▼.
Dnlaney, Assignee, 5 Har. 384; 1 Woolley,
Del. Prac. !$ 145-147.
For the reasons stated, we are constrained
to grant the nonsuit.
Mr. Gray: We decline to take a nonsuit
BOYCE, J. (charging the Jury). The court
instruct you, gentlemen of the Jury, to re-
turn a verdict for the defendant
Verdict for defendant.
(S BoTce, 6M)
STATE V. KA^^3.
(Supreme Court of Delaware. June 12, 1917.)
(Svnab}u by the Court.)
Intoxioatino Liquobs «=»107— Licehsb— Va-
UDTTT.
Jamea Kane was indicted for selling intos-
icatin!; liquor on April 27. 1917, In less quantity
than one quart to be drnnk oS the premises,
ander a special license, issued to him on the
fourteenth day of March, 1917, authorizing such
a sale. One Mny ninth, 1917, plea of not guilty
was entered. The act under which the special
license had been issued was repealed, April
fourth, 1917. The question before the court was
as to the effect of the repeal on the license,
in the absence of any saving from the opera-
tion of the repeal. Held that the license is good
and valid for a period of one year from the date
of the inuance thereof.
[Ed. Note.— For other cases, see Intoxicating
Liquors, Cent Dig. { 114.]
James Kane was indicted for selling in-
toxicating liquor, etc. Case heard In the
court in banc In accordance with the deter-
mination of the Court of General Sessions
directing that the case be so heard. Opinion
certified to Court of General Sessions, where-
in nolle prosequi was entered.
Argued before PENNEWIUi, C. J., and
BOYCE, (30NRAD, HICE, and HEISEL, JJ.
David J. Reinhardt Atty. Gen., for the
State. Philip L. Garrett of Wilmington, for
accused.
It was considered by the Court of General
Sessions that the question of law arising in
the case ought to be heard by the court in
banc, and, on the Joint application of the par-
ties with an agreed statement of facts ap-
pended, the court directed that the same shall
be so heard.
The agreed statement of facts shows the in-
dictment, which charges as Is admitted, that
James Kane, late of, etc., on the twenty-
seventh day of April, in the year of our Lord,
one thousand nine hundred and seventeen,
with force and arms at, etc., in a certain
house there situate, to wit the house known
as the Hotel Wilmington located at 819 Mar-
ket street in the Fifth ward of tlie city of
Wilmington and In which said house the
business of selling intoxicating liquors was
then and there carried on, he the said James
Kane then and there being the tenant and
occupant of said house, he, the said James
Kane then and there having a proper license
to sell intoxicating liquor according to law
only in quantities less than one quart to be
drunk on said premises did then and there
unlawfully sell intoxicating liquor to wit
whiskey, to one Lucius C. Jones in a quan-
tity less than one quart to be drunk off said
premises, against, etc.
That said defendant did on the fourteenth
day of March, A. D. 1917, receive from this
honorable court a proper license authorizing
hlni to sell at said Hotel Wilmington Intox-
icating liquors in quantities less than one
quart to be drunk on the premUet.
That having obtained such last mentioned
license, said defendant did on the fourteenth
day of March, A. D. 1917, make application
to the clerk of the peace of New Castle coun-
ty and from him did receive a further or spe-
cial license for one year to sell intoxicating
liquors In quantities less than one quart to
be drunk off the premUet.
That on the day of , A. D.
1917, the General Assembly did pass a cer-
tain law, viz.:
" » • • Section 1. That chapter 6 of the
Revised Statutes of the state of Delaware be
and the same is hereby amended by strlkLng
out paragraph number 6 of section 124 of said
chapter. Code section ISL" Approved April
4th. 19l7.
It was agreed that If the court In banc
should be of the opinion that the said special
license issued to the said James Kane by the
clerk of the peace of New Castle county on
the fourteenth day of March, A. D. 1917, au-
thorizing him to sell intoxicating liquors
in less quantities than one quart to be drunk
off the premises, is good and valid for a
period of one year from the date of the Is-
suance thereof, then judgment in the above
stated cause shall be entered accordingly
upon a verdict of not guilty, but if the court
shall be of the opinion that said special li-
cense so issued by the clerk of the peace as
aforesaid to said defendant was revoked or
rendered null, void and Invalid by the abovt
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101 ATLANTIC REPORTER
(Del.
recited act of the General Assembly approved
April fourth, 1917, then Judgment shall be
entered against the said defendant upon a
verdict of guilty to be rendered by a Jury,
charged accordingly by the court upon the
said admitted facts.
The repealed paragraph, numbered 6, ( 124,
c. 6 (Code 1915, i 161), reads:
"Any person or persons having obtained a li-
cense under the provisions of this section may,
if he BO desires, on application to the clerk of
the peace of the county in which such license
has been obtained, he entitled to receive a fur-
ther or special license for one year to sell in-
toxicating liquors in quantities less than one
quart, to be drunk off the premises, and for
such special license shall pay to said clerk of
the peace the sura of twenty-five dollars in ad-
dition to the license fees now provided by law,"
The Attorney General contended, that the
amending act took effect and became opera-
tive upon the date of its approval by the
Governor; that it expressly repealed the
provision for the granting of special licenses
authorized by paragraph numbered 6 of sec-
tion 124 of chapter 6 (Rev. (3ode 1915, 8 161);
that there Is In the act no provision for sav-
ing from its operation special licenses such
as that granted to the defendant; that a
license to sell intoxicating liquor is not a
contract, or a property or vested right but
Is only a permit or privilege which may be
withdrawn at any time; and that a license to
sell intosicaUug liquor is revoked or an-
nulled by the repeal of the law authorizing
the grant of such license. Joyce on Intox.
Uq. 36S; 1 Woollen & Thornton, {{ 331, 428;
Black on Intox. Liq. S| 90, 127, 190; 15 R. C.
L. 311; Brown v. State, 82 Ga. 224, 7 S. R
915; Arie v. State, 23 Okl. 166, 100 Pac. 23;
Pleuler ▼. State, 11 Neb. 647, 10 N. W.
481-490; Robertson v. State, 12 Tex. App.
641; E}x parte Lynn, 19 Tex. App. 293; E^x
parte Vaccarezzo, 52 Tex. Cr. R. 105, 105 S.
W. 1119; State v. Ckx>ke, 24 Minn. 247, 31
Am. Rep. 344; (Jom. v. Jones, 10 Pa. Co. Ct
611; Com. t. Sellers, 130 Pa. 32, 18 Ati. 541,
542; Vlefhaus v. State, 71 Ark. 419, 75 S.
W. 685; Bordwell v. State, 77 Ark. 161, 91
S. W. 555; CJalder v. Kurby, 6 Gray (Mass.)
697; Fell v. State, 42 Md. 71, 20 Am. Rep.
83; (3olumbus v. Outcomp, 61 Iowa, 672, 17
N. W. 47; State v. MullenhofC, 74 Iowa, 271,
37 N. W. 329; State v. Isabel, 40 La. Ann.
340, 4 South. 1; Reitmlller v. Peoples, 44
Mich. 280. 6 N. W. 667; State v. Holmes, 38
N. H. 225, Metropolitan Board of Excise v.
Barrie, 34 N. Y. 659; Prohibitory Amend-
ment (?ases, 24 Kan. 700; Brown v. State, 82
Ga. 224, 7 S. E. 915.
Counsel for the defendant replied that
the repealing act affects nothing but the pow-
er to issue special licenses after the act took
effect; that it repealed the authority to grant
any more such licenses but nothing more;
that there Is nothing in the act indicating an
intention of tlie Legislature to revoke or an-
nul the uae.\pired licenses granted before the
repeal. Him v. State, 1 Ohio St 15; Adams
v. Hackett, 27 N. H. 289, 69 Am. Dec. 876;
I State V. Andrews, 26 Mo. 171; State t. An-
drews, 28 Mo. 14; May v. Commonwealth,
160 Ky. 785, 170 S. W. 493 ; Foster v. Dow,
29 Me. 442; Watts v. CJommonwealth, 78 Ky.
329 ; Bush v. D. C, 1 App. D. C. 1.
It was also urged tliat it is a sound rule
of construction that a statute shall have a
prospective operation only, unless its terms
show clearly a legislative intention that it
shall operate retrospectively, Cooley's Const.
Lim. 370; Railroad Co. t. Judge, etc., 10
Bush (Ky.) 574.
PEINNBWim 0. J. (delivering the oplnloi*
of the court). The question to be determined
in this case is not whether a law malting it
unlawful to sell intoxicating liquor would
revoke a license for such sale issued before
the enactment of the law.
In such case it is clearly the intention of
the Legislature that liquor shall not be sold
at aU. Therefore, all the cases cited by the-
state. In which the sale was made unlawful,
are not applicable to the present case where
the statute which authorized the issuance of
the license was merely repealed. In all the-
state's cases, except the Pennsylvania County
Court case, the sale was expressly made un-
lawful, and In the excepted case tiere was
this unusual feature, viz.: The license of the-
defendant only authorized him to sell In ac-
cordance with the law of the state "as it
may exist at the time of the sale."
Some of the language quoted by the state-
from certain text-writers is very general,
and if intended to apply to such a case as the-
present one, does not appear to be supported
by the authorities cited.
The text must be based upon statutes or-
constltutional provisions which expressly
made the sale unlawful; and this is evident
from more particular statements made by
the writers referred to.
In 1 Woollen & Thornton, { 631, it is said:
"The passage and adoption of a constitutiODaV
or statutory provision by which the sale of in-
toxicating liquors is prohibited, will have the-
effect of repealing by implication all laws au-^
tborizing the issuance of licenses and of an-
nulling those which may have been issued pre-
viously," etc.
Bla<& onploys similar la&gunge, but both
writers also make general statements re-
specting the effect of a repeal of a sttatnte
which apparently supports the contention.
of the state.
It Is not questioned that the Leglslatura-
may revoke a license previously slven for the-
sale <^ intoxicating liquor, because such
license is only a privilege ; but in order thac
a statute shall have that effect it must be-
clear that such was the legislative intent.
Wheu the later statute makes it unlawful
to sell intoxicating liquor at all, or uoiesB-
the licensee procures a further license or
complies with some additional requirement,,
there can be no question about the intent,
but when the statute merely repeals the law
which authorized the issuance of a license-
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N.J.)
IN RE WHITE'S ESTATE
241
for tbe sale of liquor In a particular way, as
In the present case, the legal effect Is only
to prevent the Issuance of any other li-
censes of the same kind.
The defendant had a license to sell Intoxl-
cating liquor to be drunk on the premises,
and the general law which authorized the
issuance of such license was not repealed.
Because he had that license he was entitled
to receive from tbe clerk of the peace an ad-
ditional license to sell liquor to be drunk off
the premises.
Tbe act in question did not, therefore,
take away the defendant's right to sell in-
toxicating liquor, but merely repealed the
section of the liquor law that authorized
the Issuance of the additional license. There
is nothing In the repealing act to show that
it was Intended to have any other effect
that to prevent the clerk of the peace from
Issuing any other licenses under the act
repealed.
While the act in question is not retroactive
In terms, It would unquestionably have that
effect if given the construction contended for
by the state; and tbe law is well settled that
an act of the Legislature will not be held
to operate retrospectively unless the legisla-
tive intention that it shall have such opera-
tion be clearly shown. Cooley's Con. Llm.
3T0.
The court are of the opinion that the spe-
cial license Issued to the defendant by tbe
clerk of the peace of New Castle county, on
the fourteenth day of March, 1917, authoriz-
ing bim to sell Intosicatlng liquors in less
quantities that one quart to be drunk off the
premises, is good and valid for a period of
one year from tbe date of the issuance
thereof.
Tbe opinion was certified to the Court of
General Sessions, whereupon the Attorney Gen-
eral altered a nolle prosequi.
OT N. J. Bq. 607)
In re WHITE'S ESTATE. (No. 88.)
(Court of Errors and Appeals of New Jersey.
Jane IS, 1917.)
(Sundtmt hv M« Court.)
DESCSNT AI»D DISTBIBUTION «=»34t-SUEVIV-
IKO BBOTHKBS— CoNSTBUCnOK OF STATUTE.
Under the amendment of tbe Orphans' Court
Act (Statute of Distributions} by Act March 20,
1914 (P. Ia p. 8M, surviving brothera and sisters
take to the ex<ausi<ni of children and grand-
children of deceased brothers and sisters.
[Ed. Note. — For other cases, see Descent and
Distribution, Cent. Dig. U 97-101.]
Kaliscb, Black, White, and Williams, JJ., dis-
senting.
Appeal from Prerogative Court
In the matter of an order for distribution
In the estate of Henry R. White. From a
decree of the Prerogative Court (99 Atl. 606),
reversing a decree of the Passaic County
Orphans' Court, the decedent's brothers ap-
l>eaL Decree reversed, and record remitted
in order that decree may be entered dividing
the estate equally between two surviving
brotliera.
ArtbTir B. Seymour, of Orange, for appel-
lant Clifford L. Newman, of Paterson, for
appellee.
SWATZE, J, Henry R. White died intes-
tate December 29, 1914. There survived him
two brothers (the present appellants); chil-
dren of a deceased sister ; children of a de
ceased brother; a grandchild of a deceased
brother. The Prerogative Court directed
that the estate be distributed, one-fifth to
each of the brothers, one-fifth to the children
of the deceased sister, one-fifth to the chil-
dren of the deceased brother, and one-fifth
to the grandchild of the other deceased
brother. The brothers appealed.
The result turns on the construction of the
amendment of 1914 (P. L. 69) to sections 168
and 169 of the Orphans' Court Act para-
graph 3 of which reads as follows:
"If there t>e no husband or widow, as the cose
may be, then all of tlie said estate to be dis-
tributed equally to and among the children ; and
in case there be no child, nor any legal represen-
tative of any cliild, then equally among tbe
parents and brothers and sisters, except where
the intestate is a minor, in which case all of tlio
said estate shall be allotted to tbe parents, if
living, but if not, then to the brothers and
Hsters equally."
It is necessarily conceded that if the words
of paragraph 3 of section 169, as amended,
govern the case, the brothers are entitled to
the whole estate. The effort of the respond-
ent is to vary the plain meaning of the words
of that paragraph by "reading Into it" as
tbe learned vice ordinary said, a provision
that the children of a deceased brother or
sister take by representation the parents'
(Oiare. He found a warrant for this Inter-
polation In the provision of section 168 that
the distribution should be Just and equal,
and to the next of kindred to the intestate
in equal degrees, or legally representing their
stocks. It is always dangerous to read words
into a statute that are not there, as we said
in Blanz y. Erie Railroad Company, 84 N. J.
Law, 35, 85 Atl. 1030. It can rarely, almost
never, be done and only when it plainly ef-
fectuates the legislative intent and is, as in
that case, w^ttin a possible construction of
words actually used. It can never be done
when the language of the act shows that th/>
Legislature has considered tbe subject and
omitted the words sought to be Interpolated.
Tbat is tbe present case. Paragraph 3 in the
act of 1914 answers to paragraphs 3 and 4
of the old ict (C. S. 8875), but there Is a most
significant cbange of language. The old act
provided for distribution under paragraph 3
to the next of kindred in equal degree "and
their legal Tepreaentatlves as aforesaid."
The words "as aforesaid" refer to the lan-
guage of section 168 "legally representing
their stocks." Paragraph 4 of the old act
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242
101 ATIiANTIC RJBPOKTEyB
(N.J.
provided for a distribution "to brothers and
sisters and the representatives of them."
With these words In both paragraphs of tbe
old act before them, the Legislature, In 1914,
carefully, almost ostentatiously, omitted
them In the new act. They not only drop-
ped them out, but dropped them out after us-
ing substantially the same words In the
very next preceding line of paragraph 3,
which provided for the representative of a
child. That this omission was no mere over-
sight appears more clearly when we consider
tbe object of paragraph 3. The old act in
paragraph 4 gave brothers and sisters and
'he representatives of them an equal share
with the mother. The new act, paragraph 3,
^Ives the brothers and sisters an equal share
with the parents, except where the Intestate
Is a minor. If tbe Legislature had added
the words which the vice ordinary has rend
into the act it would have provided for n
dlstrII)utIon equally among the parents and
brothers and sisters and the representatives of
them. It could hardly be meant to allow rep-
resentatives of parents to share since the
brothers and sisters and representatives of
brothers and sisters would necessarily be the
representatives of parents also ; yet the Leg-
islature by ccapling parents with brothers and
sisters has shown that they were to be treat-
ed alllse; they are to share equally. For
this there Is reason In the fact that parents
and brothers and sisters form a family group.
But it conld hardly have been meant to com-
I)el a father who, before this legislation took
tbe whole estate, to share, not merely with
his wife, his children, and in case of divorce
and remarriage, with his wife's children, but
with his children's children to the remotest
degree. This result was avoided by the Leg-
islature when it abandoned the idea of rep-
resentation. No argument can be drawn
from the provision of section 168 that the
distribution shall be Just and equal, for as
we said in Smith v. McDonald, 71 N. J. Eq.
261, 65 Atl. 840, any distribution authorized
by the statute would be Just ; changes In old
established rights of inheritance are be-
coming frequent, and no one would be so bold
as to suggest that the rule of the Legislature
can t>e challenged as unjust because novel.
Is It unjust to deprive the father of his form-
er right to talce the whole of the child's per-
sonal property; and shall we therefore say
that the word "parents" In the new act does
not mean parents? We must read the law as
the Legislature makes It, even If It conflicts
with Ideas of Justice that have prevailed for
centuries. Our whole scheme of Inheritance
taxes rests on the theory that the right to
inherit Is the gift of the Legislature, not a
natural right The words which it is pro-
posed to interpolate mean representation to
the remotest descendant of a brother and
sister, and would not be limited In the same
way that the right of representation had
been limited by tbe wisdom and sense of
Justice of the Boman Jurisprudence as well
as of our own until 1899, as we pointed out
In Smith v. McDonald. Justice, the old Idea
of Justice, at least, excluded representation
beyond brothers' and sisters' children. The
construction of the Prerogative Court opens
tbe door to a contest of a testator's will by
descendants of nephews or nieces who have
nothing to lose and In whom tbe testator
could have little Interest at best. Nor do we
derive any help from tbe use of the word
"equal," since a distribution per stirpes, 1. e.,
by representation, is distinguished from a
distribution per capita by the very fact of
inequality between individuals. Nor do the
words "representing their stocks" help us,
since In the case of nephews and nieces and
other next of kin there had been no repre-
sentation among collaterals beyond brothers'
and sisters' children for centuries prior to
1899. The words of section 168 as to repre-
sentation of stoclcs had never been appli-
cable except in that limited way to the next
of kin before the omission of the proviso in
that year. Smith v. McDonald, 71 N. J. Eq.
261, 262. 6o Atl. S40. All that the Legisla-
ture did in 1914 was to take away represen-
tation of brothers and sisters, perhaps be-
cause the amendment of 1899 threatened the
dissipation of estates in small fragments
among persons not tbe next of kin of the
decedent and In most cases unknown to him
by allowing them to share with parents ;
pertiaps because it was realized that nephews
and nieces were a degree more remote than
brothers and sisters, and still more remote
than parents; while grandnephews and
grandnleces were still further removed. It
would be a step backward for us to read In-
to the statute words that the Legislature has
taken pains to omit. The legislation of 1899
is a precedent to the contraiy. The Legis-
lature In that year omitted from paragraph 2
as it then stood the proviso "that no repre-
sentation shall be admitted among collaterals
after brothers' and sisters' children." Tbe
omission caused serious difficulty In Smitti
y. McDonald, but no one was hardy enough
to suggest that we should interpolate words
tbe Legislature bad omitted in order to
make tbe act correspond with our Ideas of
Justice and equality. Whatever argument In
favor of the Justice of a method of distribu-
tion can be drawn from its antiquity and
continuous and unbroken existence had to
give way then as now to the will of the
Legislature. Tbe decree must be reversed
and the record remitted in order that a de-
cree may be entered dividing the estate
equally between the two surviving brothers.
Costs will properly be paid out of tbe estate.
The CHIEF JUSTICE and GARRISON,
SWAYZH. TRENCHARD, BERGEN, MIN-
TURN, HEPPENHETMER, TAYLOR, and
GARDNER, JJ., concur. KALISCH, BLACK
WHITE, and WILLIAMS, JJ., dissent.
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N.J J
GAFFNET ▼. ILLINGSWORTH
243
(90 N. J. Law. 4M)
GAFFNET ▼. ILUNGSWORTH. (No. 66.)
(Court of Brrors and Appeals of New Jersey.
June 18, 1917.)
(Syttalmt by the Court.)
1. New Tbial «=s>75a), 16ia)— Grounds —
Inadequate Damages— Terms.
Under the practice act of 1912 (P. L. p. 877,
i 32) and rules 72 and 73 annexed, and Su<
preme Court Kules 1913, Nos. 131, 132, and
219, a judge of the circuit court has power to
grant a new trial because of inadequate damages
awarded by the verdict of a jury, and, under
rule No. 122, to impose terms that, If the de-
feated party pays a certain sum within a
specified time, the rule to show cause why a
new trial should not be granted shall be dis-
charged, otherwise made absolute. Semble, that
the trial court could impose such terms without
the aid of statute or role of court.
[Ed. Note.— For other cases, see New Trial,
Cent. Dig. |8 161. 321.]
2. Appeal and Erbos «=s>70(9)— New Tbiai,
e=>6— Okdebs Afpealabu! — Gbamtiro or
New Trial.
The granting of a new trial rests In the
Bound discretion of the trial court, and, as it
does not settle definitively the rights of the par-
ties, it is not appealable.
[Ed. Note.— For other cases, see Appeal and
firror, Cent Dig. ) 378; New Trial, Cent "Dig.
H 9, io.]
Appeal from Circuit Court, Essex County.
Action by John Gaffney against William
H. lUingsworth. Judgment for plaintiff, and
defendant appeals. Affirmed.
M. Casewell Heine, of Newark, for appel-
lant Grosken & Morlarty, of Newark, for
appellee.
WAIiEEB, Chancellor. This action was
brought In the Essex county circuit court for
damages for personal injury suffered by the
alleged negligence of defendant It was tried
before Judge Dungan, and resulted in a
verdict for the plaintiff In the sum of $190.-
25, and costs. Rules to show cause were
taken by plaintiff and defendant respective-
ly, and, upon argument, the court discharged
defendant's rule and made an order granting
to plaintiff a new trial as to damages only,
provided that, if the defendant paid $480.50
within ten days, the plaintiff's rule should
be discharged. The defendant did not make
the payment, and the plaintifTs rule became
absolute The propriety of the circuit court
judge's action in this regard Is drawn in
question by the appeal.
[1] The defendant argues that upon com-
mon-law principles a trial court has no power
to set aside a verdict as Inadequate and to
grant a new trial as to damages only. With-
out pausing to consider the force of these
particular objections, a perfect answer is
found ta the practice act of 1912 (P. L. p.
377), which provides, in section 32, that the
Supreme Court shall prescribe rules for that
court and for the circuit and common pleas
(«arts, and that such rules shall supersede
(so far as they conflict with) statute and
common-law regulations theretofore existing,
and that mitll such rules be made the rules
thereto annexed shall be deemed the rules
of the court Rules 72 and 73, at page 397,
are as follows:
"72. In -case a new trial is granted it shall
only be a new trial of the question or question*
with respect to which the verdict or decision
is found to be wrong, if separable.
"73. When a neiw trial is ordered because the
damages are excessive or inadequate, and for no
other reason, the verdict shall be set aside only
in respect of damages, and shall stand good n
all other respects."
The Supreme Court in 1913 made rules to
take effect December 1, 1913, and, among
them, adopted rules 72 and 73 annexed to the
practice act of 1912, making them rules 131
and 132 of those then promulgated, and pro-
vided in rule 219 that the rules of the Su-
preme Court should, so far as appropriate,
be applicable to the practice of the several
circuit courts. The appropriateness and ap-
plicability of these rules cannot be doubted.
Therefore the trial Judge had the right to
grant a new trial on the sole question of the
inadequacy of the damages by virtue of the
statute and rules mentioned, the question of
damages being clearly separable from that of
liability, and the only question remaining is :
Had he the power to couple the rule for a
new trial with terms, namely, that if the de-
fendant paid a certain sum within a specified
time, the rule should be discharged?
Counsel for appellant contends that the
imposition of the terms mentioned upon the
defendant was unwarranted. He ' cites no
authority to sustain this proposition.
Quite aside from any question of the Court's
inherent power to Impose terms, the appel-
lant is here again met with a positive rule
of the Supreme Court which provides that
the Judge to whom an application for a rule
to show cause whether a new trial should
be granted shall exercise the same discretion
in granting such rule as was then ecerdsed
by the court, and shall prescribe the terms,
that is, the terms upon which the rule may be
granted. Supreme Court Rules 1913, No. 122.
The power of the court in granting a new
trial upon the ground that the damages are
excessive, upon terms that a new trial shall
be had unless the plaintiff will accept a cer-
tain sum named, less than that awarded by
a verdict, is too well established to be ques-
tioned. It would seem to follow, by parity
of reasoning, that whoi a new trial is granted
because the damages are Inadequate, the
court may impose like terms, that is, terms
to the effect that If the defeated party will
pay a certain sum greater than that award-
ed by the verdict, the rule will be discharged,
subject, doubUess, to the power of an appel-
late court to vacate any such terms when
they appear to be an abuse of discretion. No
such showing is made on the record before
us; and this makes it inappropriate for us
to give consideration to the appellant's other
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101 ATLANTIO REPORTER
(N.J.
contention, namely, that the verdict, as It
stands. Is adequate and proper and eylnces
no prejudice or partiality on the part of the
Jury. As to whether or not the verdict Is ade-
quate and proper is, on application for a
new trial, a matter of sound discretion in
the trial court, and, in the absence of an
abuse of discretion, the appellate court can-
not review the trial court's action. And with
the question of damages, apart from such dis-
cretion, we have nothing to do.
[2] These views lead to an affirmance. But
affirmance also is to be rested upon another
ground, namely, that the order under review
is not appealable.
An appeal which was substituted by the
practice act of 1912 for a .writ of error lies
only when the decision sought to be reviewed
has not proceeded from a matter resting
in discretion, but has settled definitively in
the suit or proceeding the rights of the par-
ties. Eames v. Stiles, 31 N. J. Law, 490, 494 ;
Defiance Fruit Co. v. Tox, 76 N. J. Law, 486,
70 Atl. 460; Knight v. Cape May Sand Co.,
83 N. J. Law, 59T, 83 Atl. 964 ; Hanford v.
Duchastel, 87 N. J. Law, 205, 93 Atl. 586. The
proceedings of the circuit court in a common-
law action are reviewable only after final
judgment Taylor Provision Co. v. Adams
Bip. Co., 72 N. J. Law, 220, 65 Ati. 608.
It Is obvious that the decision In question
does not definitively settle the rights of the
parties in the cause. A finality would eventu-
ate from a Judgment resulting from a new
trial granted. Besides, as stated, the ques-
tion of granting a new trial is a matter of
sound discretion. 3 Bl. Com. 392. That the
granting of a new trial rests in the discretion
of the court Is fully established by all au-
tborities. Hllllard on New Trials, { 6, citing
Gray v. Bridge, 11 Pick. (Mass.) 189, .wherein,
at page 191, it is held that the decision of
that question Is not appealabla And our
Supreme Court, in Mitchell v. Erie B. R. Co.,
70 N. J. Law, 181, at page 183, 56 AtL 236,
held that in the circuit courts the matter of
granting a new trial is discretionary and not
reviewable upon error.
The judgment under review will be affirm-
ed, with costs.
(90 N. J. Law, 206)
JEROLAMON T. TOWN OF BELLEVILLE.
(No. 159.)
(Court of Errors and Appeals of New Jersey.
June 18, 1917.)
(SyUahut lu the Court.)
1, Municipal Corporations ®=>835 — Divbb-
SION OF SUBPACE Water— LlABILITT.
A municipality has no rigbt, by artificial
drains, to divert surface water from the course
it would Otherwise take, and cast it, in a body
large enough to do sub.stantial injury, on land
where, but for such artificial drains, it would
not go.
[Ed. Note.— For other cases, see Municipal
Corporations, Cent. Dig. § 1785.]
2. Trial €=>54(1)— Receptiow of Evidencb
—Good in Part.
Evidence legal for some purpose cannot be
excluded because a jury may erroneously use it
for another purpose. The opposite party's pro-
tection against tltis is to ask for cautionary in-,
struction.
[E5d. Note. — For other cases, see Trial, Cent.
Dig. i 126.]
Appeal from Circuit Court, Essex County.
Action by Theodore Jerolamon against the
Town of Belleville. Judgment for plaintift,
and defendant appeals. Affirmed.
Harold A. Miller, of Newark, for appellant.
Pitney, Hardin & Sliiimer, of Newark, for ap-
pellee.
PARKER, J. The wilt was for overflowing
plaintlfiCs lands by water, and the complaint,
in two coimts, alleged two different dates
when such overflow occurred. The Jury
found for plaintiff in the sums of $179.18 on
the first count, and $2,935.66 on the second
count
Plaintiff was the owner and occupier of a
coal and lumber yard on the northwest cor-
ner of Gortlandt and Jerolaman streets In
Belleville. Jerolaman street runs substan-
tially east and west One block west of Cort-
landt street, and running jtarallel with it Is
the Paterson & Newark branch of the Erie
Railroad. A block further west op a sharp
grade, la Washington avenue, an Important
highway between Newark and Paterson.
Next west of Washington avenue, and still
further up the hill. Is Linden avenue. North
of Jerolaman street and east of Linden ave-
nue was a spring, whose overflow ran gener-
ally slightly south of east always to the
north of Jerolaman street passing under
Washington avenue down the hill, under the
railroad through a culvert and across plaln-
tUTs lands to the corner of Jerolaman and
Oortlandt streets and 60 to the Passaic river.
Previous to the occurrences giving rise to the
suit the town had adopted a general plan of
regrading, which involved, among other
things, the elimination of a "hump" In Jerol-
aman street above Washington avenue, which
had retarded the flow of water down the hill;
and these changes, as claimed by plaintiff,
led to the flooding of Jerolaman street in
heavy rains, which resulted in cutting gullies
and carrying away of soil, so that the town
undertook to prevent this by banking the east
side of Wjashington avenue, which prevented
the water from running down Jerolaman
street and, as plaintiff claimed, turned It In
large measure Into the natural water course
already described.
The case presented onder the first count
was that In the storm conditions of Novem-
ber 11, 1911, this artificial diversion caused
an ovcrfiow of plaintiff's land, whereby he
was damaged. Hie second count, as amend-
ed, rested on the same acts of defendant In
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JKROIiAMON T. TOWN OF BELLEVIIyljE
245
dlTertlng the water, and In addition charged
that early in 1912 the town connected the
natural water course with a covered drain
jnst east of plalntiff'B premises, and put
catdi-hars across the opening, so that la
March, 1912, during storm conditions, the ex-
cessive volume of diverted water flooded
plaintiff's premises as before, and In addition
the opening of the covered drain became
blocked by dfibris caught by the bars, and the
water backed up on plaintiff's premises.
[1J 1. There was a motion to nonsuit on
each count, and It is now urged that there
should at least have been a nonsuit as to the
first count For this the case of Miller v.
Morristown, 47 N. J. Bq. 62, 20 AU. 61, affirm-
ed in this court In 48 N. J. Eq. 645, 25 AtL
20, is relied on as the leading authority. The
argument proceeds on the assumption that
plaintiffs evidence showed nothing more than
a regradlng of streets and diversion of water
consequent thereon. If this were true, de-
fendant's point would be well taken under
the first branch of the Miller Case; but the
evidence tends to show In addition, and the
jury evidently found, that water flowing
down Jerolaman street had been Intention-
ally diverted therefrom by special provision
for that purpose and thrown on plalntUTs
land. This was a very different thhig from
mere r^radlng, and brought the case under
the second branch of the Miller Case, where
It was held that such conduct is an actionable
Injnry. The law was stated by the court in
the precise language of the syllabus to the
case cited, on both branches, and the Jury
was justified In finding that the conditions of
the second proposition were met. The same
rule was laid down by this court In the later
case of Kehoe v. Eutherford, 74 N. J. Law,
659, 65 AO. 1046, 122 Am. St Rep. 411, where
the conditions closely approximated those In
the case at bar. If the plaintiff's evidence
were believed, the defendant for its own con-
venience diverted the water naturally flowing
down Jerolaman street and turned it over the
plaintiCTs land. This it had no right to do
without making proper compensation.
2. The same considerations dispose of
the point that there should have been a direc-
tion of verdict for the defendant There was
a fair conflict of evidence, and a direction
w^ould have been improper.
[2] 3. Error is further charged, in that the
court permitted evidence of changes made by
defendant in the drainage system after the
Injuries complained of. Ordinarily it may be
conceded such evidence is irrelevant and In-
Jarlons, in tending to operate as an admission
of guilt In the present case, however, it
came in on the cross-examination of defend-
ant's engineer, who had denied In his testi-
mony that the flood water had mn down the
street in any such quantity as to do material
damage on the roadway and lead defendant
to provide for it in other ways. This was a
material point in plaintiffs case, and to meet
it he was enUUed to bring out that defend-
ant had taken care of this storm water by a
special sewer; the inference of course b^ng
that unless there were a material amount of
storm water, the culvert would not have been
built, and its building was evidential of the
incorrectness of the witness' statement. In
this aspect It was competent; Its incidental
harmfulness, as tending to show an admis-
sion ofi liability, could and should have been
met by a proper request to limit its applica-
tion In the charge. Trenton Pass. Railway
Oo. V, Cooper, 60 N. J. Law, 219, 223, 37 AO.
730, 88 L R. A. 637, 64 Am. St Bep. 692;
Perry v. Levy, 87 N. J. Law, 670, 94 AtL 569.
4. Finally, it is claimed that the court
erred in charging the Jury as follows in re-
sponse to plaintiffs request:
"If the jury find that at the time complained
of, water which, in its natural course, accord-
ing to the grade of streets and levels of adja-
cent proper^, wonld not have reached plaintiS's
land, was artificially collected and diverted by
the town to the plamtiffs land, to his damage,
it will not excuse the town that the water years
before, by another route, had reached the water
course that ran through plaintiff's land. In
other words, if on the 11th of (November, 1911,
and the 12th and 13th of March, 1912, water
which would not have come to the plaintiff's
land in any way was thrown upon it the fact
that at some prior time it had come n^on the
plaintiff's land by some other course is past
history, which does not concern the court and
jury."
The objection to this instmction, stated in
the language of appellant's brief. Is this:
That the jury were told "that they were not
concerned with the question whether the same
volume of water, from the same sources, prior
to the acts of defendant would or would not
have reached plaintiff's land by the natural wa-
ter courses of the surrounding country."
If by "acts of defendant" counsel means
the general system of regradlng, rather than
the particular act of diversion at the crossing
of Washington avenue, the charge was cor-
rect If, as was held in Miller v. Morristown,
the town might lawfully adopt a new set of
grades cansing incidental changes in drain-
age, it Is that system, and not the natural
drainage of an uninhabited country to which
owners are to conform and which they are
entitled to assume will be maintained. If by
"acts of defendant" the particular diversion
is meant, we answer that a reading of the
instruction will demonstrate that no such in-
terpretation as that indicated by appellant
can reasonably be placed upon it; (or the
comparison Is between the "natural course
according to the grade of streets and levels
of adjacent property" and the "artificial co^
lection and diversion to plaintiffs land."
Hie Judgment will be affirmed.
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101 ATLAMTIO RBPORTBB
(N.J.
(87 N. J. ai. «M)
TAUB y. TAUB. (No. lia)
(OwMt of Brrorg and Appeals of New Jeney.
June 18, 1917.)
(ByUahut by Ihe Court.)
Mahbiaoe «=>58(1) — Repeai. of Statuti —
Anruuient.
Paraxrapb 6 of section 1 of the Divorce Act
•t 1907 (Act May 17, 1907 [P. L. p. 474] ; Comp.
St. 1910, p. 2022) was not repealed or abrogated
Mj the Marriaxe Act of 1012 (Act March 27,
^12 [P. L. p. 306]), and that paragraph of the
iHvorce Act authorizes the annulment of a
marriage at the suit of the husband when he was
under the age of 18 at the time of the marriage,
atjd when the marriage had not been confirmed
by him after arriving at such age, even though
his parents consented to the marriage in the
form prescribed by the Marriage Act, and even
though it be inferred from the evidence that at
tfae time of the marriage he intended to dis-
affirm it upon reaching the age of 18.
[Bd. Note. — For other cases, see Marriage,
Cent Dig. {{ 115, 118.]
Appeal from Court of Chancery.
Petition by Stanley J. Taub against Mar^
garet Pangbam Taub for the annulment of
a marriage. From a decree of the Court of
CXiancery dismissing the petition, petitioner
appeali). Reversed, and record remitted to
ODurt of (Thancery for the entry of a de-
cree annulling the marriage.
Michael T. & Hugh a Barrett and Roy V.
Anthony, all of Newark, for appellant C!oQ-
dict, 0>ndict & Boardman, of Jersey (3lty,
for respondent.
TRBNCHARD, J. This is the husband's
appeal from a decree dismissing bis petition
for the annulment of his marriage.
The appellant and respondent were mar-
ried in this state on April 22, 1915, by a min-
ister of the gospel. At the time of the mar-
riage the appellant was under the age of 18
years. He reached that age June 22, 191S.
The respondent was 20 years of age. The
parties did not reside together after the mar-
riage. The marriage was in no way confirm-
ed after the appellant reached the age of 18.
On July 10, 1915, he filed his petition praying
for the annulment of the marriage on the
ground of his nonage at the time of the
ceremony. The learned advisory master ad-
vised a decree dismissing the petition on the
ground that the provisions of the Divorce Act
authorizing annulments of marriage because
of nonage of the parties did not apply where
the parents of the minor bad consented to
the marriage. It Is from that decree dismiss-
ing the petition that this appeal is talien.
We are constrained to think that the de-
cree was wrong.
The proceeding was pursuant to paragraph
6 of section 1 of the Divorce Act (P. L. 1907,
p. 474; C. 8. p. 2022), which provides:
"Decrees of nullity of marriage may be ren-
dered in all cases • * ♦ 6. At the suit of the
htiKtmnd when hp was under the age of eighteen
at the time of the marriage, unless such mar-
riage be confirmed by him after arriving at such
age."
It is argued that this provision of the
Divorce Act has been repealed. We think
not. It 1b not contended that it has been
cHiressIy repealed. But it is argued that It
has been repealed because inconsistent with
the provision in section 8 of the Marriage
Act (P. I.. 1912, p. 310). which reads as fol-
lows:
"If any such male applicant for a license to
marry shall be a minor under the age of twenty-
one years, or any such female applicant under
the age of eighteen years, such license shall not
be issued unless the parents or guardian of the
said minor, if there be any, shall first certify
under their hands and seals in the presence of
two reputable witnesses, their consent thereto;
which consent shall be delivered to the assessor,
registrar or clerk issuing the license. If the
parents, or either of them, or guardian of any
such minor shall be of unsound mind, then .^e
consent of such parent or guardian to the pro-
posed marriage shall not be required," etc.
Since in the present case the parents of
the appellant consented to the marriage in the
form prescribed by the above section. It be-
comes necessary to determine whether or not
paragraph 6 of section 1 of the Divorce Act
is by implication repealed pro tanto, to the
extent of the alleged repugnancy, by the
abore-redted provision of the Marriage Act.
We think it was not.
At the outset It is to be remarked that a
marriage license is not requisite to make a
valid marriage. A marriage performed with-
out a license for that purpose is as valid as
one performed after securing the proper li-
cense. The provisions of the Marriage Act
with regard to licenses both for minors and
for others are penal in their nature, section
10 providing that, if any person having au-
thority to solemnize marriages shall perform
any marriage ceremony without the presenta-
tion of a license therefor, obtained in accord-
ance with the provisions of the act, he shall
be deemed guilty of a misdemeanor. P. L.
1912, p. 311. The burden is thus placed on
the officer performing the marriage ceremony
to see that the proper legal forms have been
observed but if such oflScer, through de-
sign or oversight, fails to require the produc-
tion of marriage license, the marriaE:e
nevertheless is a binding one. The license
therefore appears to be merely an additional
safeguard against hasty and ill-considered
marriages and affects in no way the validity
of the marriage.
Next It is to be observed that the provi-
sions of the Marriage Act of 1912 requiring
the consent of the parents of a minor l>e-
fore the issuing of a license were not new
legislation, but merely re-enactment of pro-
visions already In the statutes. Legislation
on this subject is first found in section 5 of
"An act concerning marriages," passed March
4. 1795 (Paterson's Laws p. 159), and the
subsequent legislation, including that of 1912,
is, in effect a mere re-enactment of the Pater-
«=3For other case* sae Mme topic and KBY-NDMBBR In all Ker-Numbered Digest* and ladezss
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son Act It Is also fonnd In P. Ii. 1866, p.
960, section 1 of wbldi provides that no per-
son bavlng authority to Join persons together
in the h<^ bonds of matrimony shall marry
any male under the age ot 21 years or fe-
male under the age of 18 years unless the
parents or guardian shall be present and
give their consent thereto, or until the minor
applying to be married shall have produced
a certificate in writing under the hand of the
parents or guardian. And section 2 provides
that, if any such officer shall marry any
minor without the consent of the parents or
guardian, such officer shall, for every such of-
fense, forfeit $300. These provisions were
Incorporated in the revision of the Marriage
Act of 1874 (Rev. St 1874, p. 459), found with
various slight amendments In General Stat-
utes, p. 2003, H 3, 4, and 5.
In 1902 the Marriage Act was again re-
vised (P. I* 1902, p. 400), and the same provi-
sions were incorporated, forming sections 3,
4. and 5. Up to the time of this latter act
there was no requirement of a marriage li-
cense. In this revision, however, for the first
time appeared provisions requiring the ob-
taining of a marriage license. Section 6, etc.
The license was required only from nonresi-
dents. If such nonresident was a male un-
der 21 years or a female under 18, the li-
cense could not be Issued except upon the
consent of the parents or guardian. Se(>-
Hon 13.
Thus the law stood until the act was re-
vised in 1910 (P. I* 1910, p. 477; C. S. p.
3217). In this revision it was made manda-
tory that a license be secured by residents
as well as nonresidents. Section 7 covered
the marriage of minors and contained the
same provisions with regard to the consent
of the parents before the issuing of a license
as is found In section 13 of the act of 1902.
So we find that the present Marriage Act
of 1912 (P. h. 1912, p. 306), although passed
subsequent to the T)lvoree Act of 1907, is
merely a revision of substantially similar
provisions in force long before the passage of
that act. It was not a new expression of leg-
islative intent Inconsistent with the earlier
divorce act, and under well-settled rules ot
statutory construction cannot be held to have
worked an Implied pro tanto repealer of that
act
I'he advisory master held that it was not
the legislative Intention to authorize the an-
nulment of the marriage of a minor where
the parents had given their consent in the
statutory form. But clearly this Is not so.
It passed the Divorce Act of 1907 with the
provisions of the Marriage Act before it rel-
ative to the consent of the parents to the
marriage of minors. There is nothing in the
Divorce Act Itself to indicate a legislative in-
tent to distinguish between marriages of mi-
nors where consent was given and those
where no such consent was obtained. After
providing for the annulment of marriages at
the mit of the wife when under 16 at the
time of the marriage, when not oonflrmed,
paragrai^ 6 of section 1 of the act says that
marriages may be annulled "at the suit of
the husband when he was under the age of
eighteen at the time of the marriage, unless
such marriage be confirmed by him after ar-
riving at . such age." The suit is to be
brought at the option of the husband, and his
right to an annulment Is to be barred If be
has confirmed the marriage after reaching
the age of 18. Speaking now without regard
to the rights of the wife to an annulment in
a proper case, the act places the responsibil-
ity on the husband ; he alone can confirm the
marriage after he becomes 18, and he alone
can disaffirm It and begin the annulment suit.
His parents cannot confirm or disaffirm, nor
can they apply for the annulment. With
these facts in mind, it is clear that no act of
the parents prior to the marriage can make
it binding against the will of the husband.
They cannot deprive him of the right given
him by statute by signifying their consent to
the marriage.
It seems plain, therefore, that when the
lieglslature said that "decrees of nullity of
marriage may be rendered at the suit of the
busband when he was under the age of eight-
een at the time of the marriage, unless such
marriage be confirmed by him after arriving
at such age," it meant precisely what it said,
and did not intend to limit decrees to mar-
riages without the consent of the parents.
Such evidently was the view of Vice Chancel-
lor Stevens. In Williams v. Brokaw, 74 N. J.
Eq. 561, 70 Atl. 665, speaking with reference
to the Divorce Act of 1907, he said:
"If hereafter any person shall be ao ill-advised
as to enter into a marriage with an infant un-
der the prescribed age, he or she will do it with
the kaowledge that the relationship can be
terminated at the mere will of the infant"
Such also seems to have been the opinion
of Vice Chancellor Stevenson. In Iltsworth
V. Titsworth, 78 N. J. Bq. 47, 78 Atl. 687, he
thus speaks of the act of 1907:
"Under our statute, if there be issue, the same
will be les^timate, and I think the view is a
correct one, that in a case like this a decree
of nullity operates practically to render v<^d at
the time of its rendition what up to that time
was a valid, but voidable, marriage, and thus
amounts to a decree of divorce a vinculo. Young
men under 18 years of age are thus permitted to
contract a 'trial marriage,' and if the wife be
above 16 years of age, it will be optional with
the husband alone to affirm or diBaffirm the '
marriage when Be shall reach the age ot 18
years. • • • Bhjt while I concur in the
views of this sort of legislation indicated by Mr.
Bishop (1 Bish. Mar. & D. fg 564, 666), even
when Innocent children may not be bastardized,
the dutv of the court, of course, is perfectly
?ilain, VIZ, to enforce this statute in every caae
airly brought within it without venturing to
Impugn the wisdom or the policy ot the law.' "
It is argued that the appellant Intended, at
the time of the marriage, to disaffirm it upon
reaching the age of 18, and it Is contended
that to permit him to do so would work a
fraud both upon the wife and the state. But
it Is enough to say in disposing of this oon-
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101 ATLANTIC REPORTER
(N.J.
tention that the wife la presumed to have
known the Uiw, and the state by the statute
baa declared In effect that it does not care to
enforce any public policy keeping marriages
indissolvable contracted under the drcum-
Btances of the present case.
The decree below will be reversed, with
costs, and the record remitted to the Court
of Chancery for the entry of a decree of an-
nulment of the marriage.
(90 N. J. t*w, 707)
MAXWELIi et al. t. EDWARDS, State
Comptroller, et al. (No. lOS-^lA.)
(C!ourt of Errors and Appeals of New Jtneg.
June 18, 1917.)
Appeal from Supreme Court
Certiorari by liawrence Maxwell and others
against Edward I. EVlwards, Comptroller of the
Treasury of the State of New Jersey, and oth-
ers, to review an assessment of a transfer tax.
From a judgment by the Supreme Court (99 Atl.
138), affirming the tax, prosecutor appeals.
Affirmed.
Coult ft Smith, of Newark, and Edward De
Witt, of New York City, for appellants. John
W. Wescott, Atty. Gen., and John R. Hardin,
of Newark, for appellees.
PER CURIAM. The constitutionality of the
act of April 9. 1914 (P. I* 1914, p. 267), amend-
ing the inheritance tax law of April 20, 1909
(P. U 1909, p. 325), has been sustained by the
supreme Court in an opinion by Mr. Justice
Mintum. Maxwell v. Edwards, 80 N. J. I^aw,
446, 09 Atl. 138. Nothing need be added there-
to on the constitutionality of the act, but it is
important that the facts illustrating the method
by which the transfer inheritance tax was levied
in this case may be amplified somewhat; thus,
the return to the writ of certiorsri shows the
appraised value of the entire estate, wherever
situate, was ascertained and fixed at $3,969,-
3:^3.25. From this amount was deducted $328,-
914.04, being the appraised value of the New
Jersey stocks specifically bequeathed to the wid-
ow and stranger, leavmg $3,640,419.21, from
which figure was deducted $270,813.17, being
the amount allowed for debts, administration ex-
penses, etc., leaving a net estate of $3,369,-
606.04 ; from this net estate was deducted lega-
cies bequeathed under the will, together with
legacies to beneficiaries in the 5 per cent, class
and the interest of the widow in the estate, oth-
er than New Jersey stocks specifically bequeath-
ed, amounting to $651,474.26, leaving a residu-
ary estate of $2,718,131.79.
The appraised value of the New Jersey stocks
specifically bequeathed to the widow was ascer-
tained to be $246,685.53, and the rate of taxa-
tion assessed thereon is 1 per cent., 1'% per
cent, and 2 per cent., making the tax due this
state on this specific bequest to the widow
$3,933.71. The appraised value of the New
Jersey stock specifically bequeathed to the stran-
ger was ascertained at $82,228.51, and the' rate
of taxation on the value of this bequest is 6 per
cent, making the amount of tax due $4,111.42.
The appraised value of the New Jersey stocks
owned by the decedent at the time of death was
$1,114,966; from this appraised value was de-
ducted the appraised value of the New Jersey
stocks specifically bequeathed to the widow and
stranger, amounting to $328,914.04, leaving the
net appraised value of the New Jersey proper-
ty, which formed s portion of the general assets
of the estate, at $786,050.96. The method em-
ployed in ascertaining the tax due this state,
on the transfer of the shares of stock of the
New Jersey corporations not specifically be-
queathed, is as follows: The amount of legacies,
etc., passing to beneficiaries taxed flt the rate
of 5 per cent was determined at $356,761.26,
making the tax due thereon at the rate of 5
per cent $17,83&08. The interest of the widow
in the estate, other than shares of New Jersey
stocks specifically bequeathed, was determined to
be $2i>l,712.99, and the statutory exemption of
$5,0OO was deducted and the tax at ue rate
of 2 per cent and 3 per cent was $8,658.24.
The residuary estate was taxed, as passing to
the son and two grandchildren and determined
to be $2,718,131.79, and the statutory exemp-
tion of $6,000 to each, totaling $16,000, was
deducted, and the balaince taxed at the rate
of 1 per cent, 1^ per cent, 2 per cent, and
3 per cent, making the tax on the residuary
estate $70,893.95.
The total amount of tax on the interest of the
collateral heirs and the amount passing to the
widow, together with the residuary estate pass-
ing to the son and grandchildren, as set torth
above, total $97,390.25. The percentage or pro-
portion of the New Jersey stocks (not specifical-
ly bequeathed), which total jf786.0!50.96, bears to
the entire estate (less specific bequests of New
Jersey stocks), which totals $3,640,419.21, was
determined to be .2159 thns:
$3,640,419.21) $786,050.96 (.2159.
This percentage or proportion of $97,390.25,
which is the tax that would have been due if
the decedent had died a resident of this state
and all bis property had been located here
equals $21,026.55. The total amount of tax,
as set forth above, which included the tax on
the New Jersey stocks specifically bequeathed to
the widow and stranger and the New Jersey
stock which forms a portion of the general as-
sets of the estate, totals $29,071.68, the amount
of the tax.
The Judgment of the Supreme Court is afSrm-
ed. wiu costs.
(W N. J. Item, 630)
TITLE GUARANTY & SURETY CO. T.
FUSCO CONST. CO. et ah
(Court of Errors and Appeals of New Jersey.
June 18, 1917.)
rSyttabut (v the CourtJ
Pbinoipai. and Sttrett «=9l90(9) — StrRKXT
BoWD— Action ro» PaKMnjus.
The plaintiff in consideration of the execu-
tion of an agreement of indemnity to it by de-
fendants executed a surety bond to the town of
Harrison, N. Y., for the due performance of the
contracts of the defendant company with the
town.
The indemnity agreement provided for the
payment of annual premiums during the contin-
uance of the work, and the payment of inciden-
tal expenses in case of suit
The only affirmative defense pleaded was that
the contracts were completed before the ma-
turing of the annual premium sued for. _ The
proof showed otherwise, and no contradiction
of the substantial allegations of the plaintiff's
loss being apparent, the trial court directed a
verdict for the plaintiff. Held, upon review of
the testimony, that the action of the trial
court was not erroneous,
Ai>peal from Supreme Court
Action by the Title Guaranty ft Surety
Oonip&ny against the Fusco Construction
Company and another. Judgment for plain-
tiff, and defendants appeal. Affirmed.
Charles M. Mason, of Newark, for appel-
lants. Cohn & Cohn, of Paterson, for appellee.
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GOLDSTEIN v. QOIiDSTEIN'
249
MINTURN, J. The plalnHff, a foreign cor-
poration, brought suit against defendants, the
defendant company being a corporation of
this state, to recover premiums due on three
bonds given by the plaintiff, as surety for the
Fusco Construction Company, to the town of
Harrison, in the state of New York, to en-
sure the completion of certain contracts en-
tered into by the construction company with
the town, for the construction of a sanitary
«ewer system therein.
The allegation of the complaint Is that In
consideration of the plaintiff's suretyship, the
defendants agreed in writing with the plain-
tiff to pay in cash the wnnuM] premium upon
each of said bonds, and to continue the pay-
ment of the same until the plaintiff should be
discharged, according to law, from all liabil-
ity upon the obligations. The agreement also
contained a provision of indemnity, in virtue
of which the plaintiff was to be saved liarm-
less from any loss or liability by reason of
its execution of the obligations, including disp
bnraements and costs and oonnsel fees incur-
red in collecting the premluns due upon the
bonds. The breach alleged was that the
premiums remained unpaid for the years 1014
and 1916, maturing respectively on the 6th of
December in each year. The answer of both
defendants contained a general denial of the
allegations of the complaint, end an averment
that the contract in question was completed
by the conipany prior to December 6, 1913.
The trial at the circuit resulted in a direc-
tion of a verdict for the plaintiff, and the ap-
peal lies from that determination. The due
czecntion of the bonds was not denied In the
proof. It is contended that there was a vari-
ance between the allegation and the proof, in
that two of the bonds were dated December
6th, and since the Indemnity agreement was
dated December 19th, the inference to be
drawn was that the latter could not have
been executed as Quid pro quo for the former.
No proof was tendered to sai)|)ort the con-
tention, while the proof was ample and un-
contradicted that the agreement of Indem-
nl^ presented the moving motive for the exe-
cution of the bwids. It is also to be observed
that the test is not fixed by the date of the
bond, but by the date of delivery thereof,
The argument that the agreement was with-
out consideration is based xipoa the same mis-
conception and falls with It; and It Is to be
noted that no averment of the kind is made
in the answers, and that the agreement itself
refers to the execution of the bonds as quid
pro quo for the execution of the agreement
The third bond was in fact dated December
2Sth, and the premiums for the first year
were paid, and it was proved and stands
apparently without dispute in the record that
the performance of the contract consumed
more than a year, so that the premiums again
Diatared on December 6, 1914, and the liabil-
ity of the defendants for their payment conse-
quently Is manifest
Certain ledger cards, containing statements
of payment of premiums by defendants, were
admitted in evidence over the defendants' ob-
jection, that they were not original entries,
and were not properly proved. If this oon-
tentioa be conceded, their admission wag in
no wise injurious to the defendants, since
without their presence in the case the proof
was ample from other sources, upon which to
base defendants' liability. The substantial
allegations of the complaint remained chal-
lenged and uncontradicted in the proof ; and
vre think the right, if not the duty of the
court, under the dLrcumstances, manifestly
was to adopt the coarse it pursued, and to di-
rect the judgment appealed from, which will
be affirmed.
(87 N. J. Bq. 601)
GOUDSTEIN V. GOLDSTEIN et aL (No. 42.)
(Court of Errors and Appeals of New Jersey-
June 18, 1917.)
1. Husband ahd Wira C=>31(8) — Jkwibh
ilABBIAOO ABTICLES— OoNSTBUCnON.
A Jewish betrothal agreement and marriage
certificate, whereby the prospective husband ob-
ligates himself to care for the property brought
xn by the wife and pledges his own pr<q;>erty as
security for doing so, constitute marriage arti-
cles which give rise to an executory trust where-
in the creator of the trust denotes his ultimate
object, imposing on the trustee or the court the
duty of effectuating it in the most convenient
way.
[ISd. Note. — For other cases, see Husband and
Wife, Cent Dig. §§ 1S7, 883.]
2. Husband and Wira (8=31(13) — jKwisn
Mabbiagb Abticles— CoNBTBUcnoN.
The nature of an executory trust created
by Jewish betrothal agreement and nmrriage
certificate indicates that the settlement will
provide not only for husband and wife, but for
children, and it is for the court to work out the
details of the scheme according to the circum-
stances of each case so as to do justice and ef-
fectuate the intention of the parties.
WEd. Note. — ^For other cases, see Husband and
ife, Cent Dig. SS 193, 883.]
Appeal from Court of Chancery.
Bill in equity by Eva Goldstein against
Hyman I. Goldstein and others. Decree (OS
Atl. 835) for defendants, and complainant
appeals. Reversed.
Henry S. Alvord, of Vlneland, for appel-
lant Albert S. Woodruff, of Camden, for
appellees.
SWA7ZB, J. The bill is filed to establish
a tmst in the sum of $5,000, to charge it on
lands of the defendants, and to secure the
return of wearing apparel, jewelry, and wed-
ding presents brought by the complainant on
her marriage to the defendant, Hyman I.
(roldstein. The Important question is as to
the title to the $5,000. The facts are as fol-
lows: Eva Lipltz, then under 16 years ot
age, the complainant, entered into a written
betrothal agreement with the defendant Hy-
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260
101 ATLANTIC RBPORTBB
(N.J.
man I. Goldstein, on June 10, 1914. The
agreement was signed) by both. It provided
for a marriage with ceremony ot canopy and
sanetlficatlon according to the rite of Moees
and Israel; that they should share In their
possession, Just portion and portion as is the
universal custom. The bridegroom bound
himself to give presents to the bride accord-
ing to the custom. The bride obligated her-
self to bring In as dowry |5,000 and clothing,
beddings, and trousseau, according to the
manner of the proe^rous. At the time of
the betrothal the father of the complainant
deposited $5,000 in bank and received there-
for a certificate payable to Era Llpltz and
Dr. Hyman Goldstein ten days after legal
marriage notice. This certificate was then
delivered to Dr. Goldstein, who satisfied hlnir
self by inquiry that it was good for the mon-
ey. Subsequently, in September, the mar-
riage took place with ceremony of canopy and
sanetlficatlon. We are furnished vrlth a
translation of a Hebrew marriage certificate,
translated from the original Aramaic, which
sets forth the obligations of the parties.
This is only a blank form. Mrs. Goldstein
testifies that her husband took the original
certificate from her. He testifies that he un-
derstood it was a certificate certifying to the
fact that they were man and wife and that he
was to feed and support her. He does not
deny that be took the certificate from her.
It is not questioned that this form is follow-
ed in a case of ceremony under the canopy
and with sanetlficatlon and is Included as a
part of the ceremony. Dr. Goldstein's fa-
ther testifies that they positively do It in ev-
ery Jewish marriage. The certificate states
that the bride consented to become the bride-
groom's wife and brought unto him the dowry
given her by her family, consisting of gold
and of silver, of ornaments and of garments,
of furniture and of bedding, which the bride-
groom accepted and agreed to add thereto and
give her an equal sum, declaring:
"I accept the responsibility to the integrity
of this dowry and of my addition thereto, for
myself and my heirs that will follow me, to
compensate with the most valuable of my estate
and possessions, which I do possess anywhere
beneath the sky, that which I have bought al-
ready and that which I may buy hereafter
whether of land or of goods and chattels, all of
which I hereby pledge as security and hold them
subject to the collection of the sum set forth in
this certificate, to wit, the amount of this dow-
ry and my addition thereto even pledge the very
cloak I wear on my shoulders in payment dur-
ing my lifetime and after my lifetime from this
day forever."
The certificate of marriage goes on to state
that the bridegroom took upon himself in ac-
cordance with the certificate the responsibil-
ity for the dowry and the addition thereto.
a%e certificate is declared to be subject to
strict enforcement as all certificates of dow-
ry customary among the daughters of Israel.
It closes with the declaration that:
"We have purchased the right of this man,
namely, the bridegroom, and have vested it in
this worthy woman aforementioned • • *
to all that is written and set forth in the fore-
going by means of an article with which the
right and titie may be properly purchased."
Dr. Goldstdn obtained bis wife's indorse-
ment of the certificate of deposit and drew
the money, most of which, $4,000 or more, he
has invested in a house in Otunden in his own
name. Some of it seems to have been used
to buy presents for the complainant, and
some invested in a bouse, the titie to which
is in the doctor's mother.
[1,2] The rights of the parties obviously
depend cm the betrothal agreement, the cer-
tificate of deposit, and the marriage certifi-
cate. Dr. Goldstein's testimony as to the
conversations with his prospective father-in-
law are unimportant, since the negotiations,
to call them by their proper name, finally
took form in written dociunents. We think
It clear that there was no gift of the money
to the defendant Tho fact that the certifi-
cate of deposit was in the Joint names of the
prospective spouses is coadiBlve on that
point. The l)etrothaI agreement contemplat-
ed a subsequent marriage according to com-
monly used Hebrew rites which involve obli-
gations on the part of the prospective hus-
Imnd to care for the property brought him by
the wife, and to add thereto. The pledge by
the marriage ceremony of his own property
as security Indicated that he was to have
either complete or partial control of the
property, and that the wife was to have some
beneficial interest therein secured by his
pledge. If we lay aside the terms, unustial
to our ears, in which the documents are
couched, we have what is familiar to English
law under the name of marriage articles, and
we have a case of the legal situation, which
so often arises out of marriage articles, of
an executory trust, where, to use the lan-
guage of a classic text-book:
"The creator of the trust has merely denoted
his ultimate object, imposing on the trustee or
on the court the duty of effectuating it in the
most convenient way. Adams on iSquity, star
page 40, a statement commended by Pomeroy
as "very accurate." Pomeroy's Equity Juris-
prudence, i 1001.
"In the case of executory marriage articles,"
continues the author, "there is an indication
furnished by the nature of the instrument, in-
dependentiy of an expressed intention leading
to this construction of the trust; for it is as-
sumed, in accordance with ordinary practice,
and in the absence of reason to conclude the
contrary, that the settiement contemplated by
such articles is one which will not only provide
for the husband and wife, but will also secure a
provision for the children of the marriage. If
therefore the articles, strictiy interpreted, would
have a different result, they will be mended in
conformity with the presumed object."
Pomeroy says (section 1001) that, where
marriage articles or agreements to settie
are general In their terms, a court of equity
presumes that it was the intention of the
parties to provide for the issue of the mar-
riage, and will therefore direct a settlement
to be made which does provide for the chil-
dren. The subject is discussed In Lord
Glenorchy r. Boeville, 1 Leading Oases in
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SHAKNON ▼. WATT
251
Bquitx, It and tbe notes thereto, but we
need go no further than the opinion of
Justice Depue, speaking for this court, In
Gushing V. Blake, 30 N. J. Eq. 688, at page
701, followed by us in PlUot ▼. Landcm, 46
N. J. Eq. 310, 19 AtL 25. In those cases.
Indeed, the trusts were definitely and per-
fectly expressed in the declaration; here
they are left indefinite and uncertain. In-
definite and uncertain as the terms are, the
intent is dear. It is to create a trust fund
In consideration of the marriage and for the
pnrposes thereof. It is for the court to
work out the scheme of the marriage settle-
ment The fact that cases of this kind
are uncommon and unfamiliar to our courts
arises oat of our different social customs and
usages, which are apt to treat gifts of this
Und as made to the bride and take little
thought in the case of small fortunes of the
objects of the marriage and the possible
daims of future children. Uncommon and
unfamiliar as such marriage articles are,
there is no reason why they should not be en-
forced and carried out as marriage articles,
and executory trusts are enforced and car-
ried out by the English law. Since we think
the case is one of an executory trust, it is
not Important to determine the effect of the
complainant's Indorsement of the certificate
of deposit. Her husband was also a trustee,
and the fund in his hands alone would be
charged with the same trust as In their
joint hands. It may be well to add that,
even if tbe complainant had a title free
from the trust to any part of the fund. It
would be presumed to remain her property,
niack V. Black, 30 N. J. Eq. 215. The re-
Tersal of that decree (31 N. J. Eq. 798), al-
though without opinion, can only be inter-
preted imder the facts of the case as em-
phasizing tht. principle, which has since
been followed in this court. Cole v. Lee, 45
N. J. Eq. 779, at 785, 18 Atl. 854.
If a pr(q>er settlement had been drawn to
etCectuate the intent of the marriage articles,
It would have provided that the trustees
should hold the estate during the continuance
of the marriage. Such a clause was approved
In Harvard C!ollege v. Head, 111 Mass. 209,
and may prevent tbe injustice of allowing the
spouse who is guilty of misconduct to profit
by the settlement as the law in England per-
mitted prior to legislation. Evans v. Carring-
ton. 2 De. P. & J. 481 ; Fitzgerald T. Chap>
man, L. R. 1 Oh. D. 663, 45 I* J. Cm. 23;
Chase v. Phillips, 153 Mass. 17, 26 N. B.
136. The case is like N. J. Title Guarantee
& Trust Co. T. Parker, 85 N. J. Eq. 657, 96
Atl. 574.
In case the marriage shall be dissolved,
as seems not Improbable In view of what
has happened, the scheme of the settlement
should provide for that contingency. Where
husband and wife had separated. Lord Rom-
lily, M. R., In Munt t. Glynes, 41 L. J. Ch.
639, directed that the legacy be paid to the
wife. Each case depends on Its own cir-
cumstances, but there would be all the great-
er reason for this direction where the fund
came from the wife or on her behalf, and a
trust would result upon failure of the pur-
pose of the marriage articles. Speaking
generally, the Court of Chancery will now
be In a position to work out a scheme In
the light of what has happened, which shall
be calculated to do justice and effectuate the
intention of the parties. Illustrations of
the length to which the court may go in
settling the scheme to effectuate the inten-
tion may be found in the cases cited in the
notes to Lord Glenorchy v. Bosville in the
Leading Cases in Equity and in Taggart v.
Taggart, 1 Sch. A Lef. 84; Toung v. Mdn-
tOBh, 13 Sim. 445; Cogen v. Duffleld, 2 Ch.
Div. 1044, 45 L. J. Ch. 307, The report in
13 Sim. gives a form of decree.
Other precedents may be found in Seton
on Decrees, 1235ff. The opinion of the Vice
Chancellor was adverse to the complain-
ant and the sdieme of the settlement was a
matter which, under his view, it was unnec-
essary to consider.
The claim of the complainant to personal
chattels was only touched upon In the court
below, and not discussed In this court The
evidence Is not detailed enough to enable us
to express any opinion that would be helpful.
If Important, it can be dealt with by the
Court of Chancery upon more complete evi-
dence.
The complainant is entitled to a decree
charging upon the land owned by Dr. Gold-
stein the amount which he invested therein
out of the $5,000, appointing a trustee, and
settling the terms of the trust or the destina-
tion of the fund if the trust must be con-
sidered at an end. As to the amount in-
vested In property owned by defendant's
mother, we find nothing in the testimony to
charge her with notice of the trust Air to
that and any other sum that be may have
spent out of the trust fund, the decree can
only be a personal decree against him. Tbe
existing decree must be reversed, and the
record remitted to the Court of Chancery for
further proceedings in accordance with our
opinion. The complainant is entitled to
costs in both courts.
(87 N. J. Eq. «U)
SHANNON et al. v. WATT. (No. 45.)
(Court of Ekrors and Appeals of New Jersey.
June 18, 1917.)
(SvUalui &v the Court.)
CUBTEST «=»2— Dbvisb Frek fbok Cubtesy
— Statute.
The amendment of 1876 to the Married
Women's Property Act (8 Comp. St 1910, p.
8230, pL 8a) supersedes tbe proviso in secUnn 9
of the act of 1874 (3 Comp. St 1910, p. 3235,
pi. 9), OS weU as the provisions of section 14
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101 ATIiANTIC BEPOHTKR
(N.J.
(3 Comp. St 1910. p. 3237). In tbe cases to
which it is applicable; in such corps, a married
woman may devise lands free of any curtesy of
her husband.
[Ed. Note. — For other cases, aee Curtesy,
Oent Dig. « 3. 4.]
Appeal from Court of Chancery.
Bill by John F. Shannon and another
against Daniel O. Watt to enjoin actions of
ejectment. From a decree of the court of
chancery (09 AtL 114) dismissing the bill for
want of equity, complainants appcaL Af-
firmed.
The bill seeks to enjoin actions of eject-
ment. Mary J. Watt, wife of the defendant,
died seised. She and the defendant were
married in ISSd, and had a child. In 1908, on
the wife's complaint, she obtained a Judgment
in the Supreme Court of New York, whose
jurisdiction Is not questioned, separating her
from the bed and board of the d^endanC
forever. Thereafter, and until her death,
she and her husband lived in a state of sep-
aration under that Judgment. Mrs. Watt, by |
a will made October 30, 1914, devised the real
estate in question to tbe appellants. Probate '
of the wlU was resisted, although apparently i
not by the husband ; the will was sustained |
both in the orphans' court and the preroga- i
tive court ; there is nothing to show that ;
there was an appeal to this court. The bus- '.
band brought the ejectment suits, relying on '
an alleged estate by tbe curtesy. Tbe appel- '
lants answered, setting up that tbe devise:
to them was free of tbe curtesy by virtue of |
the amendment of 1876 to tbe Married
Women's Property Act (P. U 1876, p. 18; Re-
vision of 1877, p. 639, pi. 18; C. S. p. 3230,
pi. 8a). It is not claimed ttiat the property
in suit came to Mrs. Watt by gift through
or from her husband. While the actions at
law were pending, tbe defendants therein,
now tbe appellants, apparently thinking that,
even If their view of tbe statute was upheld,
it would be open to tbe plaintUf in tbe eject-
ment suit to question whether the will was
\'alid or not, filed this bill. Tbe equity on
which they rely is an oral promise made in
open court in tbe New York action, incited
in tbe findings of fact and made part of tbe
Judgment, by which tbe defendant agreed
to release bis Interest as tenant by tbe cur-
tesy In all his wife's real property, as well
that she then had as that she might subse-
quently acquire, and to execute all Instru-
ments and conveyances necessary to carry in-
to effect such releases whenever be might be
requested by bis wife so to do.
Substantially tbe bill Is a bill for specific
performance of tbe contract and for the en-
forcement of tbe judgment. Upon motion
tbe chancellor dismissed the bill for want of
equity. The appeal Is from this decree.
Marshall Van Winkle, of Jersey City, for
appellants. Walter V. McDermott and
Kunyon & Autenrletb, all of Jersey City, for
appellee.
SWAYZE, J. (after stating the facts as
al>ove). Tbe first question to be decided is
what is tbe effect of tbe devise in Mary F.
Watt's will. This depends on tbe effect of
tbe act of 1876, now printed in the Com-
piled Statutes, p. 3230, pL 8a. Tbe case is
clearly witbln the language of tbe act. Mrs.
Watt was a married woman, living in a
state of separation from her husband, un-
der and by virtue of tbe Judgment of the
Supreme (jourt of New York founded upon
her application for tbe separation. The de-
vise of tbe lands to tbe appellants was made
during tbe continuance of the separation, and
the lands did not come to ber by gift through
or from ber husband. In such a state of
facts, tbe statute says, in so many words,
that she may devise "in the same manner and
with tbe like effect as If she were sole and
unmarried." Obviously, If this statute Is ef-
fective, tbe devise must be free of any cur-
tesy of the huslMnd ; otherwise It would not
have the like effect as If the testatrix were
sole and unmarried. The husband's contri-
tion, however, is that section 0 of tbe
Married Women's Property Act, as revised
in 1874 (Revision of 1877, p. 638), enacts that
"nothing herein contained shall be so constru-
ed as to authorize any married woman to
dispose, by wlll'or testament, of any Interest
or estate in real property to which her bus-
band would be, at ber death, entitled by law ;
but such interest or estate shall remain and
vest in the husband in the same manner as
if such will had not been made." Tills stat-
ute was approved March 27, 1874. By sec-
tion 6 it authorizes a married woman livins
in a state of separation from her husband,
imder or by virtue of the final judgment or
decree of a court, during tbe continuance oC
tbe separation to sell, release, transfer, and
convey any Interest, estate, or ri^t in real
property in the same manner and with the
like effect as If she were sole and unmar-
ried, but expressly provides that such sale,
conveyance, or release shall not affect any
estate or right her husband might then have
in such property. There was no inconsist-
ency between section 6 and section 0 of the
act of 1874. The proviso of section 9 was
applicable only in case of a devise by a mar-
ried woman, and no devise was authorized
by section 6, which, moreover, was as care-
fully drawn as secticw 9 to save the rlghta
of tbe husband.
In 1876 tbe I^egislature saw fit to intro-
duce a change (P. L. 1875, p. 62). Tbe act Is
in two sections, the first authorizing a mar-
ried woman, under the specified circum-
stances, to convey, mortgage, lease, or devise
as if sole and unmarried ; the second au-
thorizing a married man, under the same
circumstances, to convey, mortgage, lease, or
devise. There was a clerical error in the
first section caused by tbe omission of tbe
word "except." This error was correcteU
by the act of 1876, above recited. The im-
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N. J.) KOETTEQEN v. MAYOR AND ALDEUMEN OP CITY OP PATERSON 253
portant change was the insertion of the word
"devise." This word can only have effect If
the act of 1876 supersedes the proviso In sec-
tion 9 of the act of 1874 In the cases to which
It Is applicable. The proviso still Is law as
to all other cases and constituted the usual
rule. It is not, since 1876, applicable to the
cases, fortunately few in number, which ful-
fill the special conditions of that act The
same reason makes section 14 of the act of
1874 Inapplicable to cases arising under the
act of 1876. This case, as we have said, is
within the special conditions of the act of
1876. and Mrs. Watt might therefore devise
with the like effect as U she were sole and
unmarried, L e^ free of any curtesy of her
husband.
It follows from this that the defendants in
ejectment, now appellants, have a complete
defense at law if Mrs. Watt's will is valid,
as it has t>een held to be by the orphans'
court and the prerogative court If that will
should be questioned in the ejectment suits,
and the Jury should find adversely to its
Talidity, a different question would be pre-
sented. But Mr. Watt's counsel in their
brief in this court state their contention as
being that the will was not inconsistent with
his right of curtesy; that they rely on the
proviso in section 9, and that the actions of
ejectment depend for determination upon
the construction of the statute. If they ad-
here to this position, the defense at law will
be adeqxiate. But If they had taken a dif-
ferent position, the present bill would be
without equity. It avers that the will Is
▼alid and sustained by the decrees of both
courts. If that is so, it Is idle to enforce
a contract for the release of curtesy, since
there is no curtesy to release The bill in
that view is prematurely filed. It would be
well for the chancdlor to modify the decree
below so as to leave no doubt that the com-
plainant's rights may be presented by a
new bill If and when the proper time comes.
W« express no opinion as to the points dealt
with by the vice chancellor. In the view we
taHe, no harm can be done the complainants
by affirming the present decree. The defend-
ant Is entitled to costs in both courts, as he
bas been brought in the present proceeding
ODiiecessarlly.
(90 N. J. Law. 6t8)
KOETTBGEN v. MAYOR AND ALDERMEN
OF CITY OP PATERSON et aL
(No. 149.)
(Court of E2rrora and Appeals of New Jersey.
June 18, 1917.)
1. HUNICTPAI, COKPORATIONS «=9l21 — Obdi<
HANCE— DETEBMINATION OF VALIDITT.
An ordinance could not be set aside as a
whole in a proceeding In which no conviction
had been bad, though the authority conferred on
the board of aldermen by the city charter to pass
the ordinance had been curtailed or superseded
by a statute in one or more respects.
[Ed. Note.— For other cases, see Municipal
Corporations, Cent Dig. S 257.]
2. Licenses €=»7(9)—REom.ATi0N— Review.
Where the license fee fixed by an ordinanr«
was not excessive or unreasonable in view of the
incidental expenses connected with the enforce-
ment of the ordinance, including cost of inspec-
tion, the fee was an incident to regulation and
not for revenue.
[Ed. Note.— For other cases, see licenses.
Cent. Diis. f 1619.]
3. MUNICIPAI- COKPOBATIONS ®=3l21 — OBDI-
nancks—Validitt— Right to Attack.
The prosecator in certiorari proceedings
could not complain that the penalty imposed for
violation of an ordinance was not authorized
by the city charter, where she bad not been con-
victed and no penalty had been imposed npon
her.
[Bd. Note. — For other cases, see Municipal
Corporations, Cent Dig. g 257.]
4. MuNiciPAi, Corporations 4=»111(4) — Ob-
dinances— Pabtiai. Invauditt.
The whole of a dty ordinance wUI not be
set aside because part of it is invalid, where
the valid and invalid provisions are separable.
[Ed. Note. — For other cases, see Munidpal
Corporations, Cent Dig. {} 248-251.]
5. MuRiciPAi, Corporations ®=>591 — Ordi-
nances—Deleoation OF Chabtbb Powers.
Where a city charter merely authorized the
board of aldermen to pass ordinances regulating
places of amusement, and did not require them
to license such places, an ordinance, authorizing
issuance of licenses by the mayor, was not an
illegal delegation of the charter powers to the
mayor.
[Ed. Note.— For other cases, see Municipal
Corporations, Cent Dig. $ 1310.]
6. Licenses ®=»7(l)—OBDiNA«ca»— Validity
— Confiscation.
That an ordinance imposing licenses on plac-
es of amusement may incidentally decrease the
profits from the sale of liqaois and the receipts
of rent for a dance ball does not make the oi^i-
nance confiscatory.
[Ed. Note. — For other cases, see Licenses.
Cent Dig. {( 7, 19.]
Appeal from Supreme Court
Proceeding by Wilhelmlna Koettegen
agralnst the Mayor and Aldermen of the City
of PatersMi and others. From judgment for
defendants, prosecutor appeals. Affirmed.
The following is the opinion of the court
l>elow:
"This writ brings up for review an ordinance
passed by the Pateraon board of aldermen to
license and regulate the pablic dance halls of
that dty.
"Our examination leadtf to the following con-
clusions:
[I] "1. The authority to pass the ordinance
in question is conferred upon the board of aider-
men by the provisions of the dty charter. If
the authority thus conferred is in one or more
respects curtailed or superseded by the act of
1913, still the ordinance as a whole cannot be
set aside in this proceeding in which no convic-
tion has been had.
[2] "2. The fee fixed by the ordinance is not
excessive or unreasonable in view of the inci-
dental expenses connected with its enforcement,
including cost of constant inspection. The fee
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254
101 ATLANTIC REPORTBB
(N.J.
thus fixed is therefore incident to relation, and
not for revenue.
[3, 4] "3. The penalty imposed by the ordi-
nance is authorized by the charter; in the ab-
sence of a conviction and the imposition of any
penalty it is not perceived that the prosecutor
is in a position to quarrel with a provision
■which, if her contention be correct, would not
be enforceable in case she violated the ordinance.
If separable, the whole ordinance will not be
set aside. Sbill Rolling Chair Co. v. Atlantic
City, 87 N. J. Law, page 399, 94 Atl. 314.
[5] "4. The ordinance is not an illegal dele-
gation of the charter powers to the mayor. The
charter does not require the board of aldermen
to license places of amusement; it authorizes
them to pass ordinances regulating such places.
That they have done, and a part of the regula-
tion thus ordained is a license to be obtained in
the manner prescribed by the ordinance. The
board has not delegated its authority; it has
exercised it. The prosecutor has not been re-
fused a license or been convicted for not having
one; hence she has not shown that any injury
has come to her from this incident of regulation.
[6] "5. The ordinance is not unreasonable be-
cause of its incidental effect upon the business
in which the prosecutor is lawfully engaged;
hence the fact that the sale of liquors and the
receipts of rent for the dance hall fell off after
the ordinance went into effect does not render it
confiscatory in any legal sense.
"The defendant in certiorari contends in limine
that, inasmuch as there has been no conviction,
the ordinance cannot be set aside in toto if any
of its provisions are at once lawful and separ-
able from those that are challenged, citing Ros-
encrans ▼. Eatontown, 80 N. J. Law, 227,
77 Atl. 88; Neumann v. Hoboken, 82 N. J.
Taw, 275, 82 Atl. 511; Siciliano v. Neptune
Township, 83 N. J. Law, 158, 83 Atl. 865.
"There are in the ordinance such provisions, e.
g., the sale of Intoxicating liquors, the inspection
of dance halls, and the revocation of licenses.
"Our conclusion, therefore, is that in the re-
spects in which it is challenged, the ordinance is
valid, and that If it were otherwise, it would not
be set aside in toto in this proceeding.
"This applies also to the cases in which the
prosecutors are Duffy, the Charles Kruchen
Company, and the Riverside Turn Verein Har-
monic.
"The writs are dismissed, with costs."
Ward & McOlnnis, of Paterson, for appel-
lant. BMwaid P. Merrey, of Paterson, for
appellees.
PBB CURIAM. The Judgment under re-
view will be affirmed for the reasons set
forth In the opinion of the Supreme Court.
(90 N. J. Law, 717)
RIVERSIDR TURN VERBJIN HARMONIB
V. MAYOR AND ALDERMEN OF CITY
OF PATERSON et al. (No. 148.)
(Court of Errors and Appeals of New Jetaej.
June 18, 1917.)
Appeal from Supreme Court
Proceedings by the Riverside Turn Verein
Harmonie, a corporation, against the Mayor and
Aldermen of the City of Paterson and others.
From judgment for defendants, prosecutor ap-
peals. Affirmed.
Ward & McGinnis, of Paterson, for appellant
Edward F. Merrey, of Paterson, for appellees.
PER CHJRIAM. The judgment under review
will be affirmed for the reasons given in the per
curiam in Wilhelmina Koettegen v. Mayor and
Aldermen of the City of Paterson et al.. No. 149,
101 Atl. 253, of the present term of this court.
(W N. J. law, 700)
CJHARLBS KHUCHEN CO. v. MAYOR AND
AL.DBRMEN OF CITY OF PATERSON
et aL (No. 150.)
(Court of Errors and Appeals of New Jersey.
June 18, 1917.)
Appeal from Supreme Court
Proceedings by the Charles Kruchen (Compa-
ny, a corporation, against the Mayor and Alder-
men of the City of Paterson and others. From
judgment for defendants, prosecutor appeals.
Affirmed.
Ward & McGinnis, of Paterson, for appellant
Edward F. Merrey, of Paterson, for app^ees.
PER CURIAM. The judgment under review
will be affirmed for the reasons given in the per
curiam in Wilhelmina Koettegen v. Mayor and
Aldermen of the City of Paterson et aL, No.
149, 101 AtL 253. of the present term of this
court
(90 N. J. Law. SSZ)
SMITH ▼. SMITH. (No. 143.)
(Court of Errors and Appeals of New Jersey.
June IS, 1917.)
(SyllatiM fiy the Court.)
1. Covenants «=>12^— Bbeach of Covenant
AOAiNsT Inccmbkancks— Evidence — Fob-
EiGN Decree.
A judgment or decree being entered In the
courts of the state of Iowa, under proceedings to
foreclose a mortgage and for the redemption of
the land, by paying the amount due on a judg-
ment, such decree and proceedings are prima
facie evidence of the validity of the mortgage, of
the amount due thereon, of the lands upon
which the same were a lien, of the extent of the
lien, and of the right of redemption. This is so
when such judgment or decree is put in evidence,
in a suit brought in the New Jersey courts, to
recover damages for a breach of the covenants
against incumbrances, contained in deeds con-
veying the lands covMwi by the mortgage fore-
closed.
^[Bd. Note.— For other cases, see CJovenants,
Cent Dig. | 224.]
2. Action «=>17— Covenant against Inccm-
BBANCEs— Remedies— Lex Fobi.
Remedies are to be regulated and pursued
according to the lex fori, the law of the place
where the action is instituted.
fEd. Note.— For other cases, see Action, CSent
Dig. { 94.]
3. C!ovenant8 Q=>110 — Limitation or Ao-
TioNS— Covenant against Incumbbances.
There is no statute of limitations in New
Jersey, in an action for breach of a covenant
against incumbrances.
[Bd. Note. — ^For other cases, see Covenants,
Cent. Dig. {( 177, 178.]
4. Covenants «=3l02(l)— C3ovenant against
Incumbbances— Action fob Breach- Bvio-
TION.
Actual eviction is hot necessary, before an
action will lie for the breach of a covenant
against incumbrances. It is sufficient that evic-
tion may take place.
[Ed. Note. — For other cases, see Covenants,
Cent Dig. IS 157-159.]
Gummere, C. J., and Swayze, Bergen, Wil-
liams, Taylor, and Gardner, J J., dissenting.
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M.J^
SMITH T. SMITH
255
Appeal from Circuit Court, Warren Connty.
Action by Walter H. Smltli against C3ar-
ence C. Smith, executor of James Prall, de-
ceased. Judgment for plaintiff, and defend-
ant appeals. Affirmed.
William H. Morrow, of BeMdere, for ap-
pellant. L. X)e Witt Taylor, of BeMdere, and
Osiris D. McConnel. of Philllpsburg, for ap-
pellee.
BLACK, J. The respondent sued the ap-
pellant's testator, In the Warren circuit
court, for a breadi of the corenants against
Incumbrances, contained In two deeds, made
by James- Prall, the appellant's testator,
bearing date March 8, 1891. The land con-
Teyed by the deeds Is situate In Harrison
county, state of Iowa. The case coming on
for trial, the record shows, the respective
counsel having agreed upon the facts, the
court took the case from the Jury and direct-
ed a verdict for the respondent, for $2,091.08.
Aa exception was then noted to the direction
of the verdict The appellant brings the ap-
peal, and alleges 13 grounds and reasons for
a reversal of the judgment, all of which. In
different forms, challenge the right of the re-
spondent to maintain the action. Thus the
first four and the eleventh allege error In the
trial court in directing a verdict, in favor of
the respondent. The fifth, sixth, and seventh
allege the only action that could be maintain-
ed Is an equitable proceeding; eighth, cer-
tain releases given by the respondent operat-
ed as an equitable estoppel, against the re-
spondent maintaining the suit; ninth, there
was no eviction ; tenth, the brokoi covenants
did not run with the land, so that an action
could be maintained on audi broken cove-
nants; twelfth, the respondent and those
claiming under him have been In open and
ex<dnslve possession of the premises since the
30th day of October, 1890, upwards of 20
years next before the commencing of this
suit; that such possession Is a bar to the
rigrlit of action asserted by the respondent ;
thirteenth, the decree or Judgment entered in
the district court of Harrison county, Iowa,
BO far as the same is claimed to be the basis
of this action, is of no force or effect, against
the appellant, as executor of James Prall, de-
ceased. These points are argued by the ap-
pellant's counsel at length in an elaborate
brief, whldi fails to convince us that the
trial court was in error, or that the respond-
ent had no right to maintain his action.
The correctness of the computation of the
amount of the Judgm^it, as directed by the
trial Judge, is not challenged by any ground
of appeal ; nor is it argued by the appellant
in his brief. We have not therefore consider-
ed that question, nor Is it necessary to follow
in detail the argument of the appellant.
[1, 2J A short summary, however, of the es-
sential facts is necessary to a clear under-
staodlng of the case. The language of the
covenants in each deed is:
'TFhat the above-described premises at« free
from any incnmbrances otiier than roads and
highways."
At the time of the delivery of the deeds,
one Alonzo P. Tukey held a mortgage upon
the lands described in the deeds, for the sum
of $600 and Interest This mortgage was
made to Tukey by one John W. Foster, onnnor
of the Iand& The mortgage was dated Jan-
uary 20, 1888. James Prall, the appellant's
testator, received his titie to the land by
virtue of a sheriflTs deed under a decree,
entered in the district court of Harrison
county, Iowa, on September 6, 1889. This
decree was made in a suit brought by James
Prall to foreclose a first mortgage upon the
same lands, for $1,600 and interest, made by
the same John W. Foster to D. C. Rlchman ft
Son, and by them assigned to James Prall.
This mortgage was dated December 16, 1887.
In this foreclosure suit by James Prall, Tu-
key was made a defendant, by reason of his
holding the above mortgage, being a second
mortgage upon the lands; no process was
served upon him, he did not appear in the
action, and the suit was by order of the court
continued as to him. In text he bad no
knowledge of the Prall foreclosure suit until
a long time after the sherifTs sale, 1897 or
1898. On March 11, 1908, Tukey brought suit
in the district court of Harrison county, for
the foreclosure of his mortgage, for the re-
demption of the land, by paying the amount
due on the Judgment, in the Prall foreclosure
suit The respondent, in this case, was made
a defendant, as were also Peter Relnholdt
and Alfred Peterson, who were, at that time,
the owners of the equity in the lands, having
derived their title from James Prall and the
respondent, through intermediate grantees.
Peterson filed a cross-petition against the re-
spondent, tha plaintiff In this suit, to compel
him to pay Peterson such sum of money as
might be found necessary, to redeem the land
from the Tukey mortgage, and to make Peter-
son whole in the premises. On June IS, 1909,
a final decree was entered in the Tukey Case,
wherein it was adjudged that the Tukey
mortgage be established, as a lien upon the
lands in the amount of $1,356.88, with inter-
est from June 18, 1909. The court directed a
special execution to issue for the sale of the
lands to satisfy the Tukey Uen. The pur-
chaser should pay off the senior lien, by
paying $3,000, vrlUi the accumulated Interest
thereon, to the derk of the court, for the ben-
efit of the owners of the land sold. On the
cross-petition, the court ordered that Peter-
son was entiUed to recover from the respond-
ent, the plaintiff in this suit, such sum as
should be necessary, under the decree, to
redeem the lands frcnn the Tokey mortgage,
or to satisfy that mortgage.
An appeal was taken by the respondent, the
plaintiff in this suit, from this decree, to
the Supreme Court of Iowa, and that court
affirmed the decree. A procedendo was !*•
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236
101 ATLANTIC REPORTER
(N. J,
sued by that court on April 29, 1918. After
this affirmance by the Iowa Supreme Court,
In order to extinguish the Tukey decree or
Judgment, as it Is called, and free the lands
from the Hen thereon, the respondent paid
Tukey's attorney, on May 23, 1913, $1,906.76,
being the amount oiS the judgment, with
interest and costs. He then took an assign-
ment of the judgment. Respondent then re-
leased all of the lands from the lien of the
Judgment, and thereupon brought the present
suit, October 10, 1913, against the appellant's
testator, to recover the amount which he
paid to extingrulsh the Incumbrance of Tukey,
with the result that the trial court directed
a. verdict in his favor.
The question, as we see It, arising out of
this state of facts and Involved in the deci-
sion of this case. Is whether the respondent,
the plaintiff in this suit, had a right to main-
tain his action in the common-law courts
of New Jersey, to recover damages for the
breach of the covenants against incumbranc-
es, and, if so, what law is to be applied to
the solution of this problem. The answer
to this question depends upon the applica-
tion of the following accepted principles of
law: The proceedings and decree in the Tu-
key Case are prima facie evidence in this case
of the validity of the Tukey mortgage, of the
amount due thereon, of the lands upon which
the same were a lien, of the extent of the
lien and of the right of redemption. 11 Cyc.
1156, 1157. The law of Iowa governs as to
the lien on the lands situate in that state.
GrifDn v. Griffin, 18 N. J. Eq. 104, 107. It
Is the law of the state in which the mortgag-
ed property lies which governs. Urine v.
Hartford Fire Ins. Co., 96 U. S. ffi27, 635,
24 L. Ed. 858 ; 6 K. C. L. p. 926, S 21. The
Iowa Supreme Court passed upon the Tukey
mortgage in an opinion In which the facts,
as disclosed by this record, are quite fully
sot out Tukey v. Relnholdt, 130 N. W. 727.
See Same v. Foster, 158 Iowa, 312, 138 N. W.
862. From these propositions it would seem
to follow that Prall's liability, the appellant's
testator, is to be determined from the Judg-
ment or decree entered in the Iowa courts,
except, in so far as that liability may be af-
fected I)y matters relating to the remedy,
i. e., the lex fori. Thus, the statute of limita-
tions of New Jersey, If any, would be ap-
plied, the period of limitation prescribed by
the law of the forum controls. Jaqui v. Ben-
jamin, 80 N. J. Law, 10, 77 Atl. 468. A
foreign Judgment is subject to the statute of
limitations of the lex fori. Summerside Bank
V. Ramsey, 55 N. J. Law, 383, 26 Atl. 837.
Remedies are to be regulated and pursued
according to the lex fori, the law of the place
where the action is instituted. Gullck v.
Loder, 13 N. J. Law, 68. 23 Am. Dec. 711 ; 8
R. C. L. p. 917. i 11, p. 941, i 28.
[3, 4] In cases from our courts, in actions
for a breach of covenant against incumbranc-
es, it is said the general rule is ttie right
of action on the covenant against incum-
brances arises upon the existence of the in-
cumbrance, irrespective of any knowledge up-
on the part of the grantee or of any evie-
tion of him or of any actual injury it has
occasioned him, so that, if he has paid off
or bought in the incumbrance, he is entitled,
at least, to nominal damages. Demars v.
Koehler, 62 N. J. Law, 203, 208, 41 Atl. 720,
72 Am. St. Rep. 642; 7 R. C. L. p. 1163, §3
78, 79. He may recover the amonnt fairly
and justly paid by him for the removal of
the incumbrance, not exceeding the value of
the estate (Hartshorn v. Cleveland, 62 N. J.
Law, 473, 482, 19 Atl. 974, affirmed 54 N. J.
Law, 891, 25 Atl. 963; 7 R. O. L. p. 1181,
t 104), although, he may not yet liave paid
the same (Sparkman v. Gove, 44 N. J. Law,
252; Fagan v. Cadmus, 40 N. J. Law, 441,
affirmed 47 N. J. Law, 549, 4 AU. 323). An
actual eviction or disturbance of possession,
unlike a suit for a breach of a covenant of
warranty, is not necessary, as a condition
precedent, to maintaining an action for the
breach of a covenant against incumbrances.
Carter v. Executors of Denman, 23 N. J. Law,
260, 270 ; Smith v. Wahl, 88 N. J. Law, 623,
97 Atl. 201. It is sufficient that eviction may
take place. Share v. Anderson, 7 Serg. & R.
(Pa.) 43, 61, 10 Am. Dec. 421.
There is no statute of limitations In New
Jersey, in an action for breach of a covenant
against incumbrances, barring such an action,
if not brought within 20 years after breach
of the covenant. Hasselbuscdi v. Mohmking,
76 N. J. Law, 691, 73 Atl. 961. See Parisen
V. New York, etc., R. R. Co., 65 N. J. Law,
413, 47 Atl. 477. The counsel for the appel-
lant concedes this, but argues, in the answer
to the complaint, he set up accord and
satisfaction as a bar to this action, thereby
invoking an analogy to the statute of limita-
tions, citing Gulick v. Loder, 13 N. J. Law,
68, 28 Am. Dec. 711, Parisen v. New York,
etc., R. R. Co., 65 N. J. Law, 413, 47 AtL
477, and Blue v. Everett, 56 N. J. Eq. 339, 86
AtL -960, as illustrative cases on which to
rest the defense of presumptive satisfaction,
received for a breach of the covenant The
obvious answer to this is, of course, those
cases, and the principle therein illustrated
have no application to the facts of this case,
as disclosed by the record. At best, that Is a
rebuttable presumption of satisfaction. The
proceedings in the Tukey Case show satis-
factorily the reasons for the delay. No evi-
dence was offered or produced in denial o£
the facts shown by that record; the facts not
being controverted. It is hardly necessary to
pursue this discussion further in detail. The
record consists entirely of exhibits and docu-
ments, over which there is no dispute. No
evidence was produced to controvert the
findings of the decree in the Iowa courts lu
the Tukey Case.
Upon the undisputed facts and the law ap-
plicable thereto we are satisfied that the re-
spondent was entitled to maintain his ooia-
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N.Jj
BETTS v. MASSACHUSETTS BONDINO A INa 00.
257
mon-law action In the courts of New Jersey.
In our view, this determines the case. As
stated above, the amount of damages as cal-
culated by the trial court is not challenged
or argued, so we express no opinion upon
that point
Finding no error in the record, the Judg-
ment of the Warren circuit court is affirmed.
GUMMERE, C. J., and SWAYZB, BER-
GEN, WILLIAMS, TAYLOR, and GARD-
NER, JJ., dissenting.
(90 N. J. I«w. SB)
BBTTS V. MASSACHUSETTS BONDINa
& IMS. GO. (No. 142.)
(Court of Errors and Appeals of New Jersey.
June 18, ldl7.)
1. Inbubawcb «s»146(2) — Constbuotion or
PoucY— Indemnity Contbact.
Policy insuring against loss from liability
by law for damages on account of bodily inju-
ries or death suffered in consequence of error,
mistake^ or malpractice in assured's profession
o{ dentistry, or by an^ assistant of the insured
vhile acting under his instructions, is neither
technical nor ambiguous, and its language must
Im given the legal, natural, and ordinary mean-
ing.
[Ed. Note.— For other cases, see Insurance,
Cent. Dig. I 294.]
2. Insubanck «=»152(3) — Indemnity Insub-
ancb— pouoy— conbtbuction.
Persons entering into dentist's indemnity in-
surance policy will be presumed to have con-
tracted with full knowledge of the legal effect of
their acts under the laws relating to the prac-
tice of dentistry.
[Ed. Note.— For other cases, see Insurance,
Cent Dig. i 312.)
S. IN90SANCK «=»485— IrDUCNITT iRSUBAltOB
—Policy— CoNBTBUOTioN.
An insurer, issuing an indemnity policy to
a dentist to protect him in actions for his al-
leged malpractice, may rely on the full perform-
ance of the dentist's duties under the law.
[Ed. Note. — For other cases, see Insurance,
Cent Dig. { U44.]
4. Insckanok «=>437—lNDKKNrriE»— Liabil-
ity.
Under policy indemnifying dentist from lia-
bility for alleged malpractice of himself or as-
sistant while acting under liis instructions, the
insurer is not liable for a judgment obtained by
a patient who was operated on and injured by
an unregistered and unlicensed assistant acting
in violation of the dentist's instructions, in view
of 2 Oomp. St 1910, pp. 1911, 1913, 1915, gi
1, S, and 12, stating the requisites of practicing
dentistry,
5. Insusanci! «=»437— Indemnitt Policy-
Dentist— Unwcbnsbd Assistant.
That such assistant was duly qualified in
another state does not make his act In practic-
ing in New Jersey without a license and without
registration any the less a violation of law, so
as to affect the case.
6. InSTTSARCE ^:»4S7— IRDBMNITIXS— LIA3IL-
ity.
Dentist's indemnity policy, avoiding liability
for any claim against the assured or his as-
sistant arising from violation of any law or ordi-
nance on the part of the assured, creates no lia-
bility for a claim arising from injuries to a
patient from an unlicensed and unregistered as-
sistant, regardless of whether the violation of
law was the permanent cause of the injury.
7. Inbubance ®=>437— Indemnities— LiABiL-
ITT.
A dentist cannot recover on an indemnity
policy for a claim arising from malpractice of
nis assistant, who was unlicensed when In the
application he held his assistant out as a li-
censed dentist
Swayze, Parker, Black, White, Heppenheimer,
and Williams, JJ., dissenting.
Appeal from Supreme (3ourt
Action by fi>dwln Betts against the Massa-
chusetts Bonding ft Insurance Company.
Judgment for plaintiff, and defendant ap-
peals. Reversed.
Kaliach & Kalisch, of Newa^ (Isldor
Kaliscb, of Newark, on the brief), for appel-
,Iant. Joseph Stelner, of Newark, for ap-
pellee.
KALISCH, J. Tills case is a sequel to
Klltcta V. Betts, decided by us at the June
term, 1918, and reported In 98 Atl. 427.
There it appears that the respojident, herein,
a licensed dentist, was sued for malpractice
by one Klitch, for Injuries inflicted npon his
Jaw by one Snively, an assistant to the re-
spondent, while in the performance of a den-
tal operation. It further appears that Dr.
Betts, the defendant in that case and the re-
spondent herein, endeavored to defend upon
the ground that his assistant, Snively, had
done an unauthorized and illegal act in
operattng on KUtch's Jaw In the absence of
and not under the supervision of the respond-
ent; Snively not being licensed to practice
dentistry in this state. We held that Dr.
Betts had so arranged the conduct of his
business office as to hold out Snively as Ills
lawful assistant and therefore was answer-
able for the assistant's negligence to Klitch,
and upon that ground we sustained the judg-
ment obtained against Betts. Dr. Betts, hav-
ing paid the Judgment, brought an action
against the appellant insurance company to
recover the amount ao paid, basing his action
on a poUcy of insurance issued to him by the
appellant company, whereby the company had
agreed to protect him, as a llcaised dentist
practicing in this state, against loss from
liability to any person or persons, upon cer-
tain terms and conditions, to be later herein
set forth and considered. The case was tried
at the Essex circuit and by stlpulaUon the
record and testimony in the case of Klitch v.
Betts, supra, together with the record of this
court in that case, were put in evidence, with
some slight additional testimony. Upon these
records and testimony Betts recovered a
Judgment against the insurance company,
from which it has appealed.
The argument addressed to us, by counsel
for appellant, for a reversal of the Judgment,
is that the respondent was not entitled to re-
cover a Judgment against the appellant be-
cause, by the uneontroverted testimony in the
case, it appears that the negligent act of
«s>Far otb»t oaaea aw (aoM tople and KBT-NUMBBK In all Ksr-Numbarad DtsesU and IndaZM
101 A.— 17
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101 ATI^AIWIC KBPORTBB
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Snlvely, for which the respondent was held
answerable In damages, was not covered by
the contract of Indemnity, In that Snlvely
was not a licensed and registered dentist,
and therefore, under the law of this state,
was not only not authorized to perform a
dental operation, but was expressly forbid-
den to do so, the statute making It a misde-
meanor, and that by the terms of the jwUcy
It was expressly ag^reed that the company
should not be liable under the policy for any
claim against the assured or any assistant
arising from the violation of any law or or-
dinance on the part of the assured or any
assistant; that the malpractice or error In
the dental operation performed by Snlvely
was not done while acting under the as-
sured's Instruction, which Is one of the re-
quirements of the policy as a basis of the
right of the assured to Indemnity ; that the
respondent knew that Snlvely was not licens-
ed and registered to practice dentistry In
this state, and nevertheless was employed
and held out by respondent as his assistant
in performing dental <^>eratlons, which was
In express violation of the dentistry act,
which statute makes such conduct a misde-
meanor, and therefore the respondent does
not come into court with clean hands, and
should not be permitted to make his unlawful
act the basis of a right to recover; that in
the application for the policy of Insurance
the respondent stated that he employed no
physician, surgeon, or dentist regularly on a
salary or commission except X>r. Charles L.
Sniv^y, and thereby he falsely represented
that Snlvely was a licensed and registered
dentist of this state, and that, being so, he
subjected the Insurer to a risk which was not
contemplated by it, and which was concealed
from the Insurer, and therefore the contract
of Insurance became void; and, lastly, that
no notice was given by respondent to the
company of any claim made by Klitch upom
him within the time required by the terms
of the policy.
Turning to the policy of Insurance, we find
that by its terms the Insurance company
agr«ed to protect the respondent:
(1) "Against loss from the liability by law
upon the assured for damages on account of bod-
ily injuries or death suffered by any person or
persons in consequence of any alleged error, or
mistake or malpractice occurring in the practice
of the assured's profession as described in the
application for this policy"; (2) "against loss
from the liability imposed by law u^on the as-
sured for damages on account of bodily injuries
or death suffered by any person or persons in
consequence of any alleged error or mistake or
malpractice, by any assistant of the assured
while acting under the assured's instructions."
This undertaking of the insurer Is made
by the policy subject to certain conditions
contained therein, but for the purpose of this
case it will suffice to set forth conditions B
and C. Condition B provides that the com-
pany shall not be liable under the policy for
any claim against the assured or any assist-
ant arising from the violation of any law or
ordinance on the part of the assured. Condi-
tion C provides that the assured shall give
Immediate written notice of any charge of
error or mistake or malpractice, and of any
claim for damages covered by this policy to
the home office of the company or Its au-
thorized agent
[1] The respective rights of the litigants in
this controversy must be determined by the
contract of insurance; The language of the
contract is neither technical nor ambiguous,
and therefore no difficulty can Interpose it-
self to prevent applying the well-recognized
canon of construction by giving the language
employed its legal, natural, and ordinary
meaning. This court in Bennett v. Van Bl-
per, 47 N. J. Bq. on page 566, 22 AtL 1056, 14
li. R. A. 342, 24 Am. St Rep. 416, speaking
through Scudder, J., said:
"Where there la no fixed legal or technical
meaning which the court must follow in the con-
struction of a contract then 'the best construc-
tion,' says Chief Justice Gibson, 'is that which
is made by viewing the subject-matter of the
contract as the mass of mankind would view it ;
for it may t>e safely assumed that sucli was
the aspect in which the parties themselves view-
ed it. A result thus obtained is exactly what is
obtained from the cardinal rule of intention.' "
Therefore upon the threshold of the pres-
ent Inquiry into what the legal obligations
and rights, flowing from the agreement be-
tween Insurer and insured, were and are,
we must first pay due regard to the fact that
state legislation, for the protection of the
public against charlatanism and Imposition,
has put the practice of dentistry under stat-
utory controL Section 1 of the act relating
to dentistry (2 O. S. p. 1911) provides that
only persons who are! now duly licensed and
registered pursuant to law, and those who
may hereafter be duly licensed and register-
ed as dentists pursuant to the provisions
of this act, shall be deemed licensed to prac-
tice dentistry in this state.
The eighth section of the act provides, in-
ter alia, that the act shall not be construed
to prohibit an unlicensed person from per-
forming medianical work upon inert matter
in a dental office or laboratory, or to prohibit
a registered student of a licensed dentist
from assisting his preceptor in dental opera-
tions while In his presence and under his
direct and Immediate personal supervision.
This section further provides that a person
shall be regarded as practicing dentistry
within the meaning of the act who shall use
the words "doctor of dental surgery," "doc-
tor of dental medicine," or the letters, "D. D.
S." or "D. M. D.," in connection with his
name, or any other title intended to Imply or
designate him, etc., as a practitioner In all
its branches.
Section 12 of the act provides that any
person, company, or association, practicing or
holding himself or itself out to the public as
practicing dentistry, not being at the tlm^
of said practice or holding out legally llceaa-
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BETTS v. MASSACHUSETTS BONDING «k INS. OO.
269
ed to practice such iu this state, shall be
guilty of a misdemeanor.
[2] This being the established law regard-
ing the practice of dentistry In this state at
the time the parties to the contract entered
into it, they will be held to have done so
with full knowledge of the legal effect of
their contractual act
[3] The appellant was entitled to rely on
the safeguards which the law erected against
Improper and Illegal practice of dentistry
which tends to lead to error, mistake, or
malpractice.
[4] The re4»rd In Klitch r. Betts, supra,
establishes the uncontroverted fact that
Snively, both anilcensed and unregistered to
practice dentistry, did, as an assistant to Dr.
Betts, a licnnsed dentist, in the dental oSice,
and in the absence of Dr. Betts, perform
several dental operations upon Klitch and
treated the tatter's injured jaw resulting
from such operations. These acts were clear-
ly In express violation of the statute which
forbids dental operations by an unlicensed
person. The record also clearly shows that
Betts employed and permitted Snively to per-
form dental operations while he was an un-
licensed person, which was a clear violation
of the policy.
Snively's acts, being both unlawful and un-
authorized and not having occurred while
acting under the assured's instruction, by
force of the provision of the Insurance con-
tract which limits the liability of the insur-
ance company to injuries or death in conse-
quence of any alleged error or mistake or
malpractice by an assistant of the assured
while acting under the assured's Instruction,
cannot therefore operate to create any liabil-
ity on part of the insurance company to In-
demnify the resirandent.
Besides this conclusive bar to the respond-
ent's right to a recovery, condition B of the
policy of insurance expressly provides that
the insurance company shall not be liable un-
der the policy for any claim against the assur-
ed or any assistant arising from the violation
of any law or ordinance on part of the assur-
ed. The Insurer is entitled to the protection
wbidi this clause afTords it. It is of the very
essence of the contract. It Is difficult to per-
ceive in what reasonable way the insurance
company could have protected itself against
claims arising out of Illegal acts or acts by
unauthorized persons than the one agreed
upon between the parties to the contract, by
limiting the liability of the company to
claims arising out of mistakes, error, or mal-
practice, against a dentist or his assistant in
the lawful practice of dentistry.
[5] The fact that the assistant was a den-
tist of another state does not make it the
less a substantial violation of the law of this
state and his act an unauthorized one. In
the legal aspect his act stands upon the same
level as if it l^id been performed by a butch- 1
er or a blacksmith, or any other unquali-
fied person.
[6] It is suggested that condition B has
only reference to where the violation of the
law Is the proximate cause of the Injury.
We must bear in mind that we are dealing
with liability arising out of contractual re-
lations and not with liability arising out of
a tort.
There Is no legal obstacle in the way to
parties agreeing, as in this case, what shall
or shall not be the basis of liability. If they
fix remote causes as a basis, it is not for us
to say that they intended to fix proximate.
In the present case, however, it might be
properly said that the violation of law, in
tliat the unauthorized act of an unlicensed
dentist In this state caused the malpractice,
was in a certain sense the proximate cause.
The record in Klitch v. Betts, supra, estab-
lishes that Injuries from which Klitch suf-
fered were inflicted upon him by Snively, the
respondent's assistant, in a dental operation.
Before a person can lawfully practice dentis-
try in this state he must submit himself to
both a written and oral examination by the
state board of registration and examination
in dentistry, and If the board finds the appli-
cant qualified to practice dentistry and of
good moral character, he will be entitled to
a Ucense and be r^stered. Snively had
never submitted himself to any such a test
as to his qualifications in order to obtain a
license, and therefore, in the eye of the law,
his status was that of a person not qualified
to practice dentistry. It was the direct re-
sult of Snively's unlawful act, coupled with
his want of ordinary skill, that caused the
Injury. It would not be reasonable to hold
the Insurer liable for the malpractice of an
assistant whose act was, to the knowledge of
Betts, contrary to law.
[7] We think also that the respondent is
debarred from recovering on the policy be-
cause It appears that the basis of his claim
of recovery is the unlawful act of Snively,
in which the respondent participated by hold-
ing Snively out as a licensed dentist to the
public and to the appellant It is to be ob-
served tliat in the contract of Insurance the
respondent makes and warrants the truth of
the statements made by him in applying for
the Insurance. He made this statement:
"I employ no physician, sutkpoji, or dentist
regularly or on a salary or commission except
as follows; Dr. Charles L. Snively."
It has already been pointed ont tliat a
person shall be regarded as practicing den-
tistry vrlthln the meaning of the 'dentistry
act who shall use a title, eta Therefore,
when the respondent made the statement and
gave the title "Dr." to Snively, knowing that
Snively was not entitled thereto under the
law of this state, he made an untruthful
statement. It is manifest that the truthful-
ness of this statement was highly important
to the insurer. For it determined one of the
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101 ATLANTIC KEPORTBR
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risks that the Insurer was to insure against.
It was one of the risks to be covered by the
policy of Insurance, and therefore, It was
essential that the statement In relation there-
to should be true.
We need not spend time to demonstrate
that the risk of mistake, error, etc., Is great-
er In the case of one who is not legally qual-
ified to practice \lentl8try than in the case
of one who is.
The Legislature has declared what the
qualification to practice dentistry shall be,
and in the absence of a license to practice
dentistry, tbere will be an absence of pre-
sumption of qualification. It Is therefore ap-
parent that the object of requiring a state-
ment as to the status of the person or per^
sons is to apprise the insurance company of
the risk which It was insuring against.
Upon the question whether the insured will
be permitted to recover on his contract where
he tiaa sustained a loss, which loss arose
through the act of an assistant in violating
the law related to the subject-matter of the
contract, the lawful practice of dentistry,
and in which violation the insured either ac-
tively or passively participated, we are un-
able to distinguish, on grounds of public pol-
icy, the present case from the case of Hetzel
V. Wasson Piston Ring Co., recently decided
by tills court, and reported in 98 Atl. 308.
In that case it was held that the father
dlsKititled himself of his right of action to
recover for loss of the services of his son,
who was injured while in the employ of the
company, because it appeared that the son
was under 14 years of age, and hence was
employed in violation of a statute which
imposed a penalty of $50 on any corporation,
firm, individual, parent, or custodian who
permitted such employment. Gummere, O.
J., speaking for this court, on page 306 of
98 Atl., says:
"The injury to the plaintifTs son Is the direct
result of the joint violation of the act of 1904
by the defendant and the plaintiff, and the strip-
piDg of the child of that protection which the
Legislature by that statute declared he should
have. The tjlaintiS can take nothing by way
of compensation for a loss which has come to
him as the direct reaalt of his own violation of
law."
In the present case the insurance company
is a wholly Innocent party, which was not
the fact as to the company in the case Just
referred to, and therefore there is a stronger
reason for denying the respondent's right
to a recovery.
Furthermore it is to be observed that the
statement made by the respondent in his ap-
plication for insurance that Dr. Snively was
his assistant was a material statement, since
it related to the risk which the company was
taking, and, besides, the respondent warrant-
ed the statement to be true when he knew
that Snively was not authorized to practice
dentistry In this state. This of itself is suf-
ficient to avoid the appellant's liability on
the policy.
Having reached the result that the trial
Judge erred in not directing a verdict for the
appellant, we find it unnecessary to consider
the other matters assigned, as grounds of
appeal.
The Judgment will be reversed.
SWAYZB, PARKER, BLACK, WHITE.
HEJPPE^NHBIMEB, and WILLIASIS, 33., dis-
sent
(S7 N. J. Eq. 462)
COX V. BROWN et al. (No. 42/383.)
(Court of Chancery of New Jersey. June 16,
1917.)
1. Specifio Pebtobmance ®=»105(3)— Delay
IN Bbinoino Sirrr— Effect— Limitations.
In administering the remedy of specific per-
formance and cancellation of instruments, the
period of delay which will be fatal to the relief
sought does not depend upon the statute of limi-
tations, but depends mainly upon the circum-
stances and effect of the delay in the particular
case, and the suit may be dismissed for delay
leas than the period fixed by the statute limiting
the pursuit of legal remedies.
[Ed. Note. — For other cases, see Specific Per-
formance, Cent Dig. §§ 327-341.]
2. TRVam 4s»365(2)— •Enfobobvenis- Eftxct
OF DEI.AT.
The rule that the enforcement of an express
or subsisting trust by a cestui que trust is not
barred by lapse of time or the statute of limita-
tions is subject to exceptions arising from the
conduct of the parties m relation to the trust
property.
[Ed. Note.— For other cases, see Trusts, Gent.
Dig. { 571.]
3. Tbubtb 9=s>365(4) — Establishment and
Enfobcement — Limitation or Actionr
The statute of limitations mav afford a bar
to relief in a suit to establish and enforce a re-
sulting trust.
[Ed. Note.— For other cases, see Trusts, Cent.
XHg. U 570, 672.]
4. Limitation of Actions ®=3l82(2)— Puead-
INO OF Statute— Nbcesbitt.
It ia essential in order that the statute of
limitations may bar an action that the statute
be pleaded,
[Ed. Note.— For other cases, see limitation of
Actions, Cent Dig. Sg 676, 67a]
5. Tbtjsts «=9371'(I5)— Enfobcbment^Laches
— Pleading.
Relief may be denied in a suit in equity to
enforce a resulting trust where the claim as-
serted is a stale claim, though that defense is
not pleaded.
[Ed. Note.— For other cases, see Trusts, Cent
Dig. I 686.]
8. Pabtnebship «=>258(6) — PABTNEBsan*
PBOPKBTT— ESTABLIBHMKNK OF INTEBEST
Laches.
Where, in a partition suit by a surviving
putner seeking to establish his partnership in-
terest in property the legal title to which had
stood for more than 40 years in the name of the
deceased partner, it appeared that during tlio
entire time the partnership, and the most in-
timate and confidential socnal and business re-
lations had existed between the two partners,
who were brothers, and that the property had
been treated by both as partnership property,
and that failure to have the legal title trans-
«=9For otber cases s«e sajne topic and KBT-NUMBER la all Ke7-Mumber«d Dlgasta and ladaaa
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261
ferred to tlie pftrtnersUp was merely a matter
of neglect arising from the mutual confidence
of the partners and from engrossment In their
business, and that no rights of creditors were
involved, the complainant was not precluded
by the delay in asserting his claim from obtain-
ing the relief sought.
[Ed. Note.— For other cases, see Partnership,
Cent Dig. iS 568, 593.]
Partition by Bowman S. Cox against Al-
bert Brown and others. Decree advised for
complainant.
A. H. Swackhamer, of "Woodbury, for com-
plainant. D. O. Watklns, of Woodbury, for
defendants Anna R. Cox and others.
LEAllINO, V. C. The only controversy
in this suit is whether a certain tract of
land which is described In the bill as tract
No. 1 is the property of the heirs at law of
Isaac O. Cox, deceased, or is the property of
a certain ct^artnershlp which was composed
of the said Isaac Q. Cox and his brother.
Bowman S. Cto, at the date of the decease
of Isaac.
Ibe record title to the property stands in
the name of Isaac O. Cox, but the proofs in
the case have established with a certainty
amounting practically to a complete demon-
stration that the property was purchased at
the instance of the two partners for the
partnership with assets of the partnership,
and that for convenience the title was taken
in the name of Isaac for the benefit of the
partnership, and that since the purchase un-
til the death of Isaac the property has at
all times been treated by the two partners
as partnership property. The evidence so
clearly establishes these facts that any dis-
cussion of the details of the evidence seems
unnecessary.
The only hesitancy in advising a decree to
the effect above stated arises from a claim
upon the part of defendants that complain-
ant, the surviving partner, has allowed the
legal title to stand in the name of his brother
for so long a time that a court of equity
should not, as against the heirs of Isaac, at
this late date decree that the property la a
partnership asset.
An examination of the authorities will dis-
pose that the effect of delay in the assertion
of rights in a court of equity is not only pe-
caliarly interwoven with and dependent upon
the special circumstances surrounding the
individual case, but is also measurably de-
pendent upon the nature of the primary right
asserted, and also upon the nature of the re-
lief sought.
[1] In administering the remedy of spe-
cific performance and cancellation of instru-
ments the period of delay which will be fatal
to the relief sought does not depend upon the
statute of limitations, but will be considered
and determined with reference mainly to the
drcnmstances and effect of the delay in the
particular case, and the suit may be dis-
missed for delay less than the period fixed
by tJie statute limiting the pursuit of legal
remedies. Lutjen t. Lntjen, 64 N. J. Eq. 773,
53 Atl. 625, was a suit of the latter nature,
and the rule there defined recognizes that a
period of delay less than the statutory period
may be fatal when it is operative to render
the court unable to feel confident of its abili-
ty to ascertain the troth as well as it could
have done when the subject for investigation
was recent, and before the memories of those
who had knowledge of the material facts
had become faded and weakened by time.
[2] On the other hand, where the substan-
tive right asserted Is the enforcement by a
cestui que trust of an express and subsisting
trust, neither lapse of time nor the statute
of limitations will ordinarily be allowed to
defeat the relief sought. Stimis v. Stimls,
54 N. J. £q. 17, S3 AtL 468. But even that
rule is subject to exceptions arising from
conduct of the parties in relation to the
trust property. See Starkey v. Fox, 62 N.
J. Ski. 758, at page 768, 20 AO. 211.
[3, 4] Again, where the suit is to establish
and enforce a resulting trust, the statute of
limitations may afford a bar to relief. Mc-
Clane's Adm'x v. Sheperd's Ex'r, 21 N. J. Eq.
76, at page 79. The present suit is of that
nature ; for the equitable title of the partner-
ship to the property in question results from
the purchase of the property by a partner
with partnership assets. But in this suit
the statute of limitations has not been plead-
ed, and to render that statute available as
a bar it should be pleaded. 3 Daniel's Ch.
PL & Pr. { 2116, note; 1 Daniel's Ch. PL
& Pr. 78L
[5] But relief may be denied in equity in
all cases of the nature above referred to
when the claim asserted is a stale claim, and
that defense need not be pleaded. In Sulli-
van V. Portland & Kennebec It. K. Co., 94 U.
S. 806, 24 L. Ed. 324, the rule tonchliig the
enforcement of stale claims in a court of
equity is stated as follows:
'To let in the defense that the claim is stale,
and that the bill cannot, therefore, be supported,
it is not necessary that a foundation shall be laid
by any averment in tiie answer of the defend-
ants. If the case, as it appears at the hearing,
is liable to the objection by reason of tiie laches
of the complainants, the court will upon that
ground be passive, and refuse rehef. Every case
is governed chiefly by its own circumstances;
sometimes the analogy of the statute of limita-
tions is applied ; sometimes a longer period than
that prescribed by the statute is required ; in
some cases a shorter time is sufficient; and
sometimes the rule is applied where there is
no statutable bar. It is competent for the court
to apply the inherent principles of its own sys-
tem of jurisprudence, and to decide accordingly."
The most recent general statement of the
role touching laches is to be found in Soper
v. Casco, 85 N. J. Eq. 165, 174, 95 Aa 1016,
1020, as follows:
"The general rule is well settled that be who,
without adequate excuse, delays asserting his
rights until the proofs respecting the transac-
tion out of which he claims his rights arose are
so indeterminate and obscure that it is impossi-
ble for the court to see whether what is as-
serted to be justice to him is not injustice to
his adversary, has no right to reUet HcCar-
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101 ATLANTIC REPORTER
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tin T. Trapbagen, 43 N. J. Eq. 324 [11 Atl. i
166], affirmed 45 N. J. Bq. 265 [17 Atl. 800]."
The authorities above cited sufficiently dis-
close the great extent to which the dr-
cumstances surrounding the individual case
necessarily enter into and control the force
of the defense of laches in a court of equity.
In the present case the partnership was
formed by the two brothers when complain-
ant, the younger brother, was yet a minor;
the legal title to the property in question was
obviously taken In the name of the older
brother for that reason. The legal title was
allowed to so remain for over 40 years, when
tha older brother died. But during all that
time the partnership and the most intimate
and confidential social and business relations
of the two brothers continued unchanged.
The residence on the property in question
was occiqtied by the older brother, but the
remainder of the property, including the
foundry where the firm business was con-
ducted, was occupied by the firm. Another
.residence property, admittedly belonging to
the partnership, was occupied by the younger
brother, and no rent was paid by either
brother for the dwellings occupied by them,
and no rent was taken into account for the
occupancy of the foundry, and the evidence
clearly discloses that at all times during the
life of the partnership the entire property
now in question was treated by trath part-
ners as firm property. While much of this
evidence relates to a period of such an early
date as to invite the most careful scrutiny as
to its accuracy, most of it is of a nature to
practically demonstrate its truth. At the
conclusion of the testimony no substantial
doubt could be said to exist that the property
was originally purchased for the partnersUp
with partnership funds and had always been
regarded by both partners as partnership
property. The failure to have the legal title
transferred to the partnership was obviously
merely a matter of neglect arising primarily
from the mutual confidence of the partners
and their absorbing engrossment in their life
work of making money In their Joint enter-
prise.
No rights of creditors are involved; the
f:lngle question is whether the property be-
longed to the elder brother at the time of his
death or to the firm. There has been no
unreasonable delay on the part of complain-
ant since the death of his brother in asserting
the title of the firm. It will be thus observed
tliat the title now asserted by complainant is
not a title In himself In his own right ; but
a title in behalf of the partnership. That
circumstance is not without force in con-
sidering the effect to be given to the claim
of laches ; for, if the property was firm prop-
erty, it was at all times during the life of the
partnership equally the duty of both part-
ners to have the legal title transferred to the
partnership. A similar duty of a trustee may
be said to exist in all cases of resulting
trusts ; but where a partnership is the equi-
table owner, rights of creditors are involved,
and both partners owe to firm creditors the
duty to manifest the legal title in the part-
nership. The laches which Is now urged
against the surviving partner is accord-
ingly laches of the partnership in which
both partners liave been equally negligent.
In that view I think the consequences of
neglect in the performance of tliat duty
cannot be equitably visited upon complain-
ant to the same extent as might be done
for the failure to seaaonahly assert an eQui-
table title In himself.
[6] As the evidence Is convincing that the
property was originally purchased with the
firm money, and the legal title taken in the
name of the older brother for the firm, BldA
that there has at no time been any daim
upon the part of the older brother to the
contrary or any adverse holding on his part,
and that both brothers have at all times
during the life of the partnership treated the
property as firm property, I am convinced
that a decree to that effect cannot be proper-
ly denied by reason of the long period of time
during which the legal title has been allowed
to stand in the name of the older brother.
I will accordingly advise a decree to the ef-
fect stated.
(87 N. J. Eq. 364)
BBNSEL y. ANDERSON et aL (No. 122.)
(Court of Errors and Appeals of New Jersey.
March 5, 1917.)
Contracts ®=»265— Rescission— Restoratiow
OF Status.
One who repudiates an a^eement ought not
to profit thereby, and equity requires that the
situation existing when the agreement was made
should, as far as possible, be restored.
[Ed. Note. — ^For other cases, see Contract*,
Cent Dig. { 1187.]
Appeal from Court of Chancery.
Suit by William Bensel against William O.
Anderson and others. Decree for plaintiff
(85 N. J. Bq. 391, 96 Atl. 910), and defend-
ants appeal. Remanded, with directions.
Frank S. Eatzenbacb, Jr., and Frederic R.
Brace, both of Trenton, for appellants.
Aaron V. Dawes, of Hightstown, and Jamea
J. McGoogan, of Trenton, for appellee.
PER CURIAM. We agree with the rea-
soning of the learned vice chancellor and in
the main with his result The decree re-
lieves Bensel of his liability on the note of
$4,650 which existed prior to the arrange-
ment now declared void. He ought not to
profit by an agreement he repudiates, and
equity requires that the situation existing
when that agreement was made should, as
far as possible, be restored. This can be
done by so modifying the decree that tbe
bank may proceed on its Judgment for $5,413.-
79 primarily against Bensel to the extent of
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N.JJ
UMPERT BROS. r. R. M. PRENCH A SON
263
$4,680, with Interest from the date from
which Interest was calculated In entering
the Judgment, and the costs of suit and re-
quiring It to proceed primarily against An-
derson for the bfllanee, and by requiring An-
derson to satisfy that balance and cancel the
Judgment upon the payment by Bensel, or
out of his property of the $4,650, interest
ther«on and costs included in the bank's
Judgment
liet the record be remitted to the Court of
Chajicery, In oi'der that the decree may be
thus modified.
(9» N. J. Utw, t44)
GROMER T. GEJDRGB et al. (No. 96.)
(Gonrt (rf Errors and Appeals of New Jersey.
June 18, 1917.)
1. Appeai. and EaaoB €='1052(6)— Habmless
Erbor— Evidence.
In an action to recover damages for negli-
gently causing the death of plaintiFs intestate,
against the father as the owner and the son as
the driver of the automobile which ran into him
while the son was on his father's business, where
the jury found the son not guilty of negligence,
error in the admission of evidence as to the own-
ership of the automobile in the sou was harm-
less.
[Bd. Note.— For other cases, see Appeal and
Error, Cent. Dig. ^ 4176.]
2. Appeai, and Ebrob i&=>1068(1)— Habuless
BREOB— INSTBDCTIONB.
In an action to recover damages for negli-
gently causing the death of plaintiff's intestate,
against the father as the owner and the son as
the driver of the automobile which negligently
ran into him while the son was an his father's
bonness, where the jury found the son not guilty
of negligence, error in the instructions as to
what must be proved to malce father answer^
able for negligence of son is harmless.
[Ed. Note. — For other cases, see Appeal and
Error, Cent. Dig. { 4225.]
Appeal from Supreme Court
Action by Julius Gromer, administrator,
against Joseph George and Antonio George.
Judgment for defendants, and plaintiff ap-
peals. Affirmed.
William Greenfield, of Newark, for appel-
lant 3cbn A. Matthews and William J.
Dowd, both of Newark, for appelleea
EIALISCH, J. The appellant, who was
tbe plaintiff below, appeals from a Judgment
altered on a verdict rendered by a Jury In
favor of the respondents, defendants below.
The appellant brought his action, as admin-
istrator of the estate of his son, a lad 14 years
of age, in the court below, against tbe re-
spondents, father and son, to recover dam-
ages for negligently causing the death of ap-
pellant's son. The complaint charged the
respondents with being "the owners, proprle-
toTS, or lessees of a certain automobile,"
etc., and that on tbe 80th day of May, the
respondents, their agents, servants, etc., did
operate and run the automobile along the
pabllc highway, at a high rate of speed and
in a careless, re<^Iess, and negligent manner,
run Into and against the appellant's decedent,
who was then and there lawfully on tbe
public highway, etc.
It Is to be observed that the gravamen of
the charge is negligence. This charge was
negatived by the Jury finding a verdict in fa-
vor of both respondents. On the trial the
appellant sought a recovery against both re-
spondents upon the theory that the father
was the owner of tbe antomobile and that tbe
son while on the business of Iiis father negli-
gently operated the car, with the result as
above stated.
[1] The principal ground relied on by the
appellant for a reversal of tbe judgment is
that the trial Judge UlegaUy admitted hearsay
testimony concerning the ownership of the
antomobile, in Antonio George, the son.
Even upon the assumption that such testl-
mohy was improperly admitted, it is obvious
from the verdict of the Jury, finding the son
not guilty of negligence, that the admission
of such testimony was harmless. For it is
plain that if the father was the owner of the
car and the son was on his father's business,
as bis agent or Mrrant, at the time of the
infliction of the injury upon appellant's de-
cedent, the father would not have Incurred
any legal liability therefor, unless it also ap-
peared that the Injury to the appellant's de-
cedent was due to the son's negligence and
to which the decedent did not In any wise
proximately contribute.
[2] The remaining exceptions discussed in
the brief of counsel for appellant relate to
what the trial Judge said In his charge to
the Jury was necessaiy to be established by
the evidence in order to make the father an-
swerable in law for the negligent acts of his
son in operating the machine. But, in view of
the fact that the Jury, by their verdict, ex-
onerated the son from the charge of negli-
gence, and without which negligence no legal
liability could have been incurred by tbe
father, it is manifest that if any error in
stating the legal rule governing the father's
liability was committed, it was harmless.
The Judgment will be afflrmed.
(90 N. J. L*«, eoo)
LlMPiaiT BEOS., Inc., t. R. M. FRENCH
& SON et aL (No. 84.)
(Court of Errors and Appeals of New Jersey.
June 18, 1917.)
(Byllahut by the Court.)
1. Justices or the Peace 4s»86(8)— Rioht of
Attaohino Cbkditob— Motion to Quash.
The respondents caused an attachment to be
issued out of a court for the trial of small caus-
es, and under it the debtor's goods were seized,
subsequently but before judgment in the proceed-
ings, the prosecutors, as they daim. Issued an
attachment out of the circuit court against the
same debtor and under it the same goods were
seized. Held that, if it appeared that prosecutor
bad in fact issued the attachment and seized the
goods, it had the same right that the debtor
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264
101 ATLANTIC BEPORTBR
(N.J.
wonid have to move the justice court to quash
the writ iBBued by that court, and to rescue
the goods on which It had a lien from the prior
seizure.
[Bd. Note.— For other cases, see Justices of
the Peace, Cent. Dig. ( 290.]
2. Justices of the Pkacb 9=>se(8)— Motion
TO Quash— Afpidavitb.
In support of such motion ex parte afiBdavits
are not sufficient; the material facta must be
proved before the justice by Uie production of
competent proof.
[Ed. Note. — ^ot other cases, see Justices of
the Peace, Cent. Dig. { 290.]
3. JxrariCES OF THB Peace ^»164(6)— Rzmw
— Rkcobd — Stipulations.
A stipulation of facts not submitted to the
justice of the peace cannot be used on review by
an appellate court
[Ed. Note.— For other cases, see Justices of
the Peace, Cent. Dig. §{ 633-636.]
Appeal from Supreme Court.
Certiorari by Llmpert Bros., Incoiporated,
to review an order of the court for the trial
of small causes refusing to quash a writ of
attachment issued In favor of R. M. French
& Son and others. Writ dismissed, and pros-
ecutor appeals. Affirmed.
James O. Clark, of Westfield, for aiH)eUant.
Augustus O, Nash, of Westfield, and W. S.
Angleman, of Plalnfleld, for appellees.
BERGEN, J. R. M. French & Son procur-
ed a writ of attachment to be issued out of
a court for a trial of small causes, and the
officer seized the property of Clay & Tokis,
trading as "Diana," the defendants In that
proceeding. Subsequently, and before Judg-
ment therein, it is claimed by the present
prosecutor that It caused to issue a writ
of attachment out of the Union county dr-
cait court, under which the same property
was attached by the sheriff. Thereafter the
prosecutor filed an affidavit with the Justice
of the peace and moved to quash the writ
Issued by him because the Christian names
of the defendants are not set forth in the
affidavit or the attachment.
The affidavit and the writ described the
defendants as "Clay & Tokis, partners trad-
ing and doing business as Diana," and the
motion to quash was made In pursuance of
a stipulation that it should be made in one
case; there being other attachments of like
nature "For the purpose of establishing the
validity of said attachment" The court,
after argument, refused to quash the attach-
ment and proceeded to hear the merits, ren-
derlng Judgment for R. M. French & Son.
The prosecutor then obtained a writ of cer>
tlorarl to review the order of the court for
the trial of small causes In refusing to quash,
and the Supreme Court dismissed the writ
upon the ground that the statute does not
authorize a stranger to the record In that
court to intervene by filing an affidavit of
interest In the subject-matter of the litiga-
tion, and therefore the prosecutor had no
legal status in the proceeding.
[1] Assuming that it was properly proven
before the JusUce that a writ of attachment
bad been issued out of the circuit court and
the same goods seized under it, we are of
the opinion that the conclusion of the Su-
preme Court was not sound In law, for it
was held in National Papeterie Co. v. Kin-
sey, 54 N. J. Law, 20, 23 Atl. 275, where a
subsequent Judgment creditor moved to quash
a prior attachment, that:
"The judgment creditors acquired the right of
the judgment debtor in the property levied on,
and had a right to rescue it for the satisfaction
of their claims from any one who could not as-
sert a superior title in the law to it It is not
perceived how the efficacy of the proceedings
under the judgments can be impaired, or how
validity can be imparted to attachment proceed-
ings unauthorized by law, by the mere volition
of the debtor as against the judgment creditors.
The debtor may waive his own rights, but he
cannot surender the rights of his Judgment cred-
itor."
We are of opinion that an attachment vests
in the attaching creditor the same right of
rescue as if he were a Judgment creditor,
and that tf the debtor has a right to move
to quash an attachment in any court, his
attaching creditor has the same rl^t He
has a lien upon the property and stands in
the place of the debtor, and if the debtor Is
entitled to have the writ quashed he cannot
defeat the rights of his other creditors hav-
ing a Hen by consenting to the execution of a
void attachment
[2] The prosecutor's difficulty in this case
arises over the method which It adopted in
proceeding to quash the attachment, for
while, as was said in McLaughlin v. Cross,
68 N. J. Law, 509, 53 Atl. 703, "The practice
Is quite general to afford relief against void
Judgments to any i>er8on Interested," the
method of relief in a case of this character
seems to be prescribed by statute. Section 43
of the Attachment Act (1 Comp. St 1010, p.
150) provides that In all cases of an attach-
ment Issued by a Justice of the peace, whoi
an affidavit shall be filed by or on behalf of
the defendant setting forth facts which would
render said attachment Illegal or void, it shall
be the duty of the Justice upon a motion to
quash to try the facts. In this case the
prosecutor produced no witnesses, but seems
to have relied on the affidavit filed by him,
and also the affidavit upon which the Jus-
tice Issued the writ, but It was held In Mor-
rU T. Quick, 45 N. J. Law, 308, that the
ex parte affidavits of the moving party can-
not be used on the motion, but that he must
sustain the burden, by legal evidence, that
the writ was Illegally Issued.
The original affidavit described the debtor
as "Clay & Tokis, partners trading and do-
ing business as Diana," and section 3 of the
Attachment Act provides that the writ may
Issue against the separate and Joint estate
of Joint debtors "either by their names or the
names of the partnership or by whatsoever
name they may be generally distinguished."
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».J.)
STUART ▼. BUBIilNOTON COUNTY FAKMEKS' EXCHANGB
265
In the original affidavit tbe defendant is de-
scribed as doing business under tbe name
of Diana, and tbe prosecutor offered no proof
that this was not correct.
Nor did tbe prosecutor make any legal
proof l>efore the Justice of tbe peace that
any attachment bad been Issued out of the
circuit court and the dd>tor's goods attached
under It
[3] Without this there was nothing before
tbe Justice to show that the prosecutor had
any Interest In tbe goods to be rescued for
its benefit. The stipulation between tbe par-
ties, from which an Inference, It is claimed,
may be drawn that there was such a writ of
attachment was not submitted to the Justice
and bis record as returned, to correct whidi
no attempt has been made, certifies that:
"This court has no knowledge except the state-
ments of the attorney that a writ of attachment
has been issued out of the Union county circuit
court. If a writ affecting these proceedings baa
been issued, superseding or affecting this juris-
diction, this court has not been officially so in-
formed."
Under tbe facts before tbe justice be cor-
rectly disposed of the motion.
For tbe reasons given, the Judgment will
be affirmed, with costs.
(90 N. J. Law, E84)
KTUAKT v. BUEUNGTON COUNTT
FARMEKS* EXCHANGE. (No. 125.)
ICoort of Errors and Appeals of New Jersey.
Jmie 18, 1917.)
(Syllabu) by the Court.)
BviDSNCE «=»158(28), 243(2)— Sales «=>441(2)
— ^Implied Waksantt— Expenses of Gbow-
IHQ Cbop — Declarations op Agknt.
Plaintiff, relying on representations of de-
fendant's agent that its product, called "crude
fiah," was a good fertilizer for liis intended
crops rff sweet corn, gave an order for "crude
fish," and used wliat he received in response
to such order in the belief that it was "crude
fish." Tbe crop failed, and he sued for dam-
ages. Held: (o) That there was evidence of
implied wacrantv that the fertilizer supplied
was "crude fish''; (b) that on. tbis point evi-
dence of the statements to plaintiff by the gen-
eral manager of defendant was competent; (c)
that plaintiff's oral testimony as to the receipts
and expenses of growing, reaping, and market-
ing his crop was competent, whether or not he
kept I>ooks of account, and without their pro-
duction on his own case. See 89 N. J. Law. 12.
97 AtL 775.
[E5d. ..Note. — For other cases, see Evidence.
Cent. IMg. H 62a-625, 910; Sales, Cent Dig.' {
127&J
BUtck and Heppenhelmer, JJ., dissenting.
Appeal from Glrcait Court, Burlington
Connty.
Action by John C. Stuart against the Bur-
lington County Farmers' Ezctiange. From a
Jndgment at tlie Supreme Court (89 N. J.
r<aw, 12, 97 All. 775) reversing a Judgment
for plaintiff, defendant appeals. Affirmed.
Gasklll & GasklU, of Camden, and George M.
Hlllman, of Mt. Holly, for appellant. John
G. Homer, of Camden, for appellee.
PABKIDR, J. Plaintiff, a farmer, contract-
ed to purchase a fertilizer called "crude fish"
from defendant, upon the representation of
defendant's sales agent that it was a special-
ly good fertilizer for raising sweet com. He
received and used the contents of a number
of bags shipped by defendant and labeled
"crude fish," but his crop failed, and he then
discovered, as claimed, that the contents of
the bags were not "crude fish," but something
else. He brought suit for damages on the
theory of Wolcott v. Mount, 86 N. J. Law,
262, 13 Am. Bep. 438, for tbe loss of the
crops which he claimed would have resulted,
had the fertilizer been as represented, and at
the trial bad a verdict of $1,000.
The ret>resentatlons regarding the fertili-
zer were made by one Page, a sales agent of
defendant; and tbe first point made on this
appeal Is that It was error to admit testimo-
ny of oral statements by Page at the time
when tbe purchase was agreed om, because
the contract of sale was In writing. An ex-
amination of the paper referred to, however,
shows that plaintiff was not a party to it,
but that it was a mere order for shipment to
plaintiff's addressr sent by tbe salesman to
the factory or office of bis principal, signed
by the salesman, but not by the plaintiff.
This also disposes for tbe most part of the
fourth point resting to the same conversa-
tion on the redirect examination of the plain-
tiff. It is also objected that he had already
been fully examined on this head ; but a rep-
etition of his testimony was within the Judi-
cial discretion.
Under the second, third, and sixth points
tbe argument Is made that It was error to
permit plaintiff to testify to a conversation,
after his crop failed, with Mr. Embree, ad-
mitted by defendant to be the manager of the
defendant, wherein plaintiff complained that
the fertilizer was not as represented, and per-
haps be should have tried It out In a small
way first, and Embree said, "We stand bdilnd
what we sell," etc. There is no doubt of the
competency of statements by Embree as man-
ager that were relevant to the Issue. Agri-
cultural Ins. Co. V. Potts, 55 N. J. Law, 168,
28 Atl. 27. 537, 39 Am. St Rep. 637 ; Smith
V. Telephone Co., 64 N. J. Eq. 770, 53 AtL 818 ;
Carey v. Wolff, 72 N. J. Law, 610, 63 AO. 270;
Bridgeton v. Fidelity Co., 88 N. J. l«w, 645,
96 Atl. 918. If the defendant had been an
Individual, his statement that he held him-
self responsible for tbe quality and fituess of
what he sold through bis agent would be
Clearly relevant as an admission that be was
liable for defects therein ; and the fact that
this statement Is made by a general agent of
a corporation does not deprive Iti of rele-
vancy.
The seventh point alleges error In ttie
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101 ATLAMTIO RBPORTISB
(K.X
court's refusal to strike oat the testimony of
plalntifF refq;)ectlng the amount of his sales
and losses on the crop. This was asked on
itae ground that plaintiff admitted he kept
books showing the amount of his sales and
expenses, etc, and bad not produced them.
We think there is do merit in this point The
iMwks, If they existed, and if they were legal
evidence at all for plaintiff, against the de-
fendant, were not the l)est evidence so as to
exclude his parol proof. The whole line of
"shop book" cases in this state bears, not up-
on the exclusiveness, but upon the admissibil-
ity, of such books, as unsworn day-to-day
records of the business of the party producing
them, to show facts in his own favor. De-
fendant could have obtained these books un-
der subpoena, but was not entitled to shut
out plaintiff's testimony as to the receipts
from his business because of their nonproduc-
tlon. The case of E:ast Jersey Water Ool v.
Bigelow, 60 N. J. Lew, 201, 38 AtL 631, is in
no wise to the contrary ; nor Is that of Bar-
tow V. Erie Railroad Co., 73 N. J. Law, 12,
62 AtL 489, where the absence of plaintiff's
books was commented on in connection with
tlie total abs^ice of evidence of the cost of
ccmductlng his business. In Standard Amuse-
ment Co. v. Champion, 76 N. J. Law, 771, 774,
72 Atl. 02, the books were held admissible
because as between the parties they partook
of the nature of partnership accounts. In
the very recent case of Rabinowits v. Haw-
thorne, 88 N. 3. Law, 308, 96 AU. 81S, the
discussion was not as to the exclusiveness or
admissibility ot the books, tor there were
none, but as to the general competency of
evidence to show the average profits of plain-
tiff In his business. We may add that plain-
tiff was again put on the stand and then tes-
tified tbat the "books" were only the collect-
ed sales slips that had been sent lilm from
time to time by the commission merchants,
and that these were the only record he had.
Lastly, It is urged that the court should
have granted the motion to nonsuit, on the
double ground (a) that plaintiff had failed to
show any warranty or (b) any breach thereof.
There was evidence of a sale by description,
which raised an implied warranty that the
goods were "crude fish" (Q. S. 4650, | 15),
and evidence that In fact they were not The
nonsuit was properly denied. If it be con-
ceded tbat the evidence for plaintiff failed to
indicate tliat what he received was not in
fact "crude fish," this was supplied by tbe
testimony offered for defendant, and the er-
ror, if any, cured. Bostwick v. Wlllett, 72 N.
J. Law, 21, 60 Atl. 398; Van Ness v. North
Jersey Street Railway Co., 77 N. J. Law,
551. 73 Atl. 509 ; Dennery v. Great AUantic
& Pacific Tea Co., 82 N. J. Law, 517, 81 Atl.
861, 30 L. R. A. (N. S.) 574.
The Judgment will be affirmed.
BLACK and HEPPENHEIMEB, JJ., di*
sent
(W N. J. Law, 6tf)
HATOB AND ALDERMEN OF JERSEY
CITZ T. HUDSON & M. B. CO.
(No. 128.)
(Court of Errors and Appeals of New Jersey.
June 18, 1917.)
iBullahut by the Court.)
1. Rahaoads €=>75(6)— Usk or Stehbt— Com-
pensation—Ordinance— "Each. "
Tbe word "each" in an ordinance of Jersey
City providing for compensation to be paid the
city for tbe use of land privileges by a railroad
company, in connection with its three routes,
depending upon the amount of fare for each
single passenger service, means any route, and
not all three routes.
[Ed. Note.— For other cases, see Railroads,
Cent Dig. ( 188.
For other definitions, see Words and Phrases,
First and Second Series, Elach.]
2. Railboads ®=»75(6)— Land Pbivu^ois—
Use— Paymbnt.
Where on ordinance by its terms does not
constitute a contract with a railroad compony
for the use of land privileges, but does provide
an option, the railroad company cannot retain
the use of the privileges and refuse to pay tbe
stipulated compensation.
[Ed. Note.— For other cases, see Railroads,
Cent Dig. f 188.]
8. Railboads «=975(6) — Pbiviixoes tjndbb
MuNiciPAi, Obdinance— Eixction to Pat
COMPEINSATION.
A continued exercise of the privileges by a
railroad company, under an ordinance accepted
by it evinces an election to pay the stipulated
compensation, and thereby creates a legal obli-
gation to pay. The language of the ordinance
construed will be found in the opinion.
[Ed. Note.— For other caae^ see Railroads,
Cent Dig. f 188.]
Appeal from Circuit Court, Hudson County.
Suit by the Mayor and Aldermen of Jersey
City against the Hudson & Manhattan Rail-
road Company. Judgment for plaintiff, and
defendant appeals. Affirmed.
Ck>Uins & C^rbin, of Jersey City, for appel-
lant James J. Muiphy and John Bentley,
both of Jersey Oty, for appellee.
BLACK, J. Tbe suit in this case was
brought by the mayor and aldermen ot Jer-
sey City against the Hudson & Manhattan
Railroad (Company to recover compensation
for the conditional rights or occupancy by
the defendant company of certain land and
privileges in the public street, at Henderson
and Grove streets, Jersey City, used by the
defendant company for station purposes. The
case was tried under a stipulated state of
facts, on tbe second count of the complaint
only, before Judge Speer at the Hudson cir-
cuit, without a Jury, resulting in a Judgment
in favor of the plaintiff for the sum of ^-
525.
The suit grows out of the coostmetlon of
sections 3, 4, and 0 of an ordinance of Jersey
City which was accepted by the def«idant
company on September 29, 1910. Those sec-
tions read thus:
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N. J.) MAYOR AND ALDKRMEN OF JERSEY CITY v. HUDSON <fc M. B. 00. 267
"See. 3. Said railroad company, its successors
or assigns, shall pay to the city, annually, ex-
cept in the contingency hereinafter noted in sec-
tion 4 hereof, for the right to use and occupy
said tract of land aforedescribed in section 1
hereof, and so long as it shall so use and occupy
the same, in addition to snch taxes or assess-
ments which may be legally levied upon its per-
sonal and real estate by the city of Jersey City
or by any other authority, the sum of one hun-
dred ($100) dollars for the first year of occu-
pancy dating from the acceptance of this ordi-
nance and thereafter like payments for the en-
tire period of the life of this ordinance. The
Iiermission to use and occupy said tract of land
aforedescribed to continue and remain in force
so long as the rate of fare charged by said Hud-
son & Manhattan Railroad Company, its succea-
aors or assigns, between the Grove and Hender-
son street stations and Thirty-Third street
and Broadway, New York, and intermediate sta-
tions, and between the said Grove and Hender-
son street stations and the Hudson terminal in
New York and intermediate stations, and be-
tween said Henderson and Grove street stations
and Hoboken, New Jersey, and intermediate sta-
tions, shall not exceed for each single passenger
service, one way, and in either direction, the
sum of five cents.
"Sec. 4. If at any time after the passage and
acceptance of this ordinance the said Hudson
& Manhattan Railroad Company, its successors
or assigns, shall proceed to charge and exact a
fare exceeding five cents fon each single pas-
senger service as described in section 3 hereof,
then and thereupon said railroad company shall
immediately surrender to the city all privileges
herein and hereby granted, or then the annual
payment to be made by snid railroad company,
its successors or assigns, for the use and occu-
pa<^ of the tract of land afor^escribed, shall
in lieu of the amount of annual payment indi-
cated in section 3 of this ordinance and in sub-
stitution therefor be five thousand ($5,000) dol-
lars, to be computed from the date of exaction
by said company of such excess fare — such pay-
mentof five thousand ($5,000) dollars to be in
addition to such taxes or assessments which may
be legally levied upon its personal and real es-
tate by the city of Jersey City or by any other
authority and to so continue for each and every
year during the continuance of such increased
rate. The said railroad company shall have the
right of election hereunder. If by reason of
the enforcement of the provisions of this section
there shall have accumulated a deficiency in
the annual payment herein in this section con-
tingently required to be made, such accumula-
tion shall in its entirety be paid by said com-
pany on the first payment day thereafter ensu-
ing and as hereinafter provided."
"Sec. 6. Proper proportions of the payments
of the city herein provided for shall be made in
advance to the city comptroller at his office in
the dty hall, on the first days of October and
.April next succeeding the acceptance of this
ordinance, falling which payment for thirty days
or a failure by said company to comply with all
or any of the terms, requirements or obligations
of this ordinance as heretofore expressed shall
constitute an annulment of any and all permis-
sion herein or hereby accorded, and the city may
tliereupon remove any and all obstructions here-
in authorized and restore any affected street or
portion thereof at the entire cost and expense
of said company without prior notice and with-
out recourse to it"
Some of the additional facts pertinent to
this discussion are: The defendant railroad
company from the time It began operations
ctiarged only five cents for each passenger
service from the Grove and Henderson street
station eastward thereof, on any of its lines,
until December 24, 1911, when it raised Its
rate of fare to seven cents, between the Grove
and Henderson street station and the stations
in New York City on the Thirty-Third Street
line. It did not Increase the rate to the Erie
station, to Hoboken, to Exchange Place In
Jersey CSty, or to the Hudson Terminal in
New York, the rate to those stations from
Grove and Henderson street station and from
Summit avenue station, remaining five cents,
that Is, passengers who go to New York from
the Grove and Henderson street station by
way of the uptown line are charged two
cents extra fare to New York stations and to
those only.
There are five grounds of appeal: First, no
breach of the alleged contract; second, no
election under the fourth section of the or-
dinance; third, acceptance of $100 per year
by Jersey City after the Increase of fare was
a construction by the parties to the contract
that it had not been broken by such Increase.
The other two grounds of appeal, the fourth
and fifth, are purely formal.
[1] The argiiinent Is the use of the con-
jtmctlon "and" in section 3 of the ordinance,
where reference is made to the three lines of
the railroad and Intermediate stations, in
connection with section 4, makes section 3
mean that the permission stands until the
rate of fare Is Increased above five cents on
all three lines, and that for each single pas-
senger service one way or In either direction
means for all the lines, but we think the
natural and Intended meaning of the word
"each" in this connection means "any," L e.,
any one of the three lines.
[2] It is next argued the ordinance does not
constitute a contract to pay; at best, It'pro-
vldes merely for an annulment It may be
conceded that section 4, in itself, does not
constitute a conti'act to pay, but it gives the
railroad company the option either to surren-
der Its privileges to the city, or to pay the
$5,000. When the railroad company contin-
ues exercising the privileges. It evinces an
election to pay the Increased amount, and it
thereby becomes in law liable to pay. Sec-
tion 6 does not militate against this conclu-
sion. That section provides simply that the
failure to make the payment of $5,000 shall
constitute an annulment of the permission
granted. The dty may thereupcm enter and
remove obstructions.
[3] Tills is nothing more than the ordinary
clause of forfeiture In a lease. It hardly
seems reasonable, and it cannot be reasonable,
that one can have the option to make a con-
tract valid or Invalid, as he chooses ; that he
can retain the privileges and get rid of the
obligation by refusing or falling to perform
his part, by paying the stipulated amount for
the privileges so retained.
The other points need no discussion; they
are without legal merit.
The Judgment of the circuit court is there-
fore affirmed, with costs.
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101 ATLANTIC REPORTEB
(N.J.
(87 N. J. Eq. S20)
SANI>S T. nUDDICK et aL (No. B&.)
(CSovrt of EnoTB and Appeals of New Jersey.
June 18. 1917.)
(Sullahui hv the Court,}
1. Iif8A»fB Pebsons 9=366— Contetanck—Ao-
TiON TO Set Aside.
Where it appears that the mind of the owner
of real estate was so impaired as to make her
incapable of understanding the nature and ef-
fect of her acts or the affairs in which she was
participating, the purchaser of her real estate at
a sheriff's sale (made wiiile she was trying and
substantially ready to pay the execution), who
knew of her mental condition, and who purchas-
ed at a price so inadequate as to shock the con-
science, will be directed, on payment to him of
the money expended for the property with law-
ful interest, to reconvey the real estate.
(Ed. Note.— Elor other cases, see Insane Per-
sons, Cent. Dig. SS 1(X)-102, 101, 106l]
2. INSAITK Pkbsorb €=»€6— Convstahob— Ao-
TioN TO Set Aside— Costs.
Where the guardian of a Innatic, before
filing her bill, tenders to the purchaser of the
lunatic's real estate, bought at a sheriff's sale,
the amount of his purchase money and inters
est, which tender was declined, it is allowable
for the Court of Chancery to require the pur-
chaser to pay the complainant's costs in that
court, upon the court's finding that equity re-
quires a decree that the purchaser shall recon-
vey the property to the complainant upon pay-
ment of the purchase price and lawful interest.
[Eld. Note. — For other cases, see Insane Pel^
sons. Cent Dig. {{ 100-102, 104, 106.]
3. Jtjdoment €=>464 — Bquitabiji Reuet —
Decbee.
The Court of Chancery has no power in a
strict sense of the term to set sside a judgment
at law. In granting relief it does not inter-
fere with the records of the law court or strike
therefrom the judgment. It treats the proceed-
ings at law as valid and grants relief against
the (Jonsequences thereof because tho rights ac-
quired thereunder cannot be retained in good
conscienc« by reason of some new matter on
whidi the court of law did not or could not
pronounce a judgment or which for some just
cause the party could not bring to the consid-
eration of the court of law. The suit in equity
to obtain relief is strictly a proceeding in per-
sonam, and the decree adjudges the rights of
the parties inter sese in relation to the judg-
ment, and the relief is limited to enjoining par-
ties from proceeding to enforce the judgment.
[Ekl. Note.— For other cases, see Judgment,
Cent. Dig. H 808, 901.]
Appeal from Court of Chancery.
Bill In equity by Clara L. Sands, a Innatic,
by Elizabeth R. Sands, guardian, against
JB^rank Rnddick and others, to compel a re-
conveyance of real estate. B^om a decree
of the Court of Chancery (99 Ati. 101) or-
dered for complainant, defendants appeal.
Reversed, and record remitted for the en-
try of a decree.
William J. Morrison, Jr., of Rldgefleld
Park, for appellants. Hunziker & Randall,
of Paterson, for appellee.
TRENCIIARD, J, The primary object of
the complainant's bill was to compel a re-
conveyance of real estate. The facts were
these: One Phillips recovered a Judgment for
$428 and costs against Clara L. Sands In the
Bergen county common pleas court Mrs.
Sands owed the money, and the Judgment
was properly recovered. Execution was Is-
sued thereon and her real estate was sold to
the defendant below Frank Ruddlck for $500
apparently because on the day of sale she
reached the sheriff's ofl9ce with the money
to satisfy the execution a few minutes too
late. The real estate thus sold was worth
|!10,000, and was subject to a mortgage of
$.3,500. Mrs. Sands then instituted proceed-
ings in the Bergen pleas and in the Supreme
Court to obtain relief from such sale. Of
course, in these proceedings no question was
raised as to her sanity, and she was denied
relief. The purchaser, Ruddlck, then brought
an ejectment suit against Mrs. Sands, took
Judgment by default, and a writ of possession
issued. Shortly thereafter, on the petition
of her daughter, proceedings were taken in
the Court of Chancery to inquire into the
lunacy of Mrs. Sands. The result of such In-
qulsltton was an adjudication that she was
then, and for 11 years then last past had
been, a lunatic, without Indd intervals, and
not capable of the government of herself and
her estate. The 'daughter was then appoint-
ed her guardian. She first tendered to Rud-
dlck a sum sufllclent to reimburse him for
his outlay of purchase money and expenses,
and requested a reconveyance of the real es-
tate. Such request being refused, she filed
this bill to compel a reconveyance at the
property.
At the hearing the foregoing facts appear-
ed. Apart from the presumptive effect of the
inquisition finding of lunacy overreaching the
Judgment and sale, it otherwise appeared to
the satisfaction of the Vice Chancellor, and
to our satisfaction, that at the time of the
Judgment and sale, Mrs. Sands* mind was so
impaired as to nuike her incapable of un-
derstanding the nature and effect of her acta
or the affairs in which she was participating.
It also appeared that Ruddlck, who was her
next-door neighbor, knew of her mental con-
dition.
The court below decreed that the Phlllipe
Judgment, the execution Issued thereon, the
deed from the sheriff to Ruddlck, and Rud-
dlck's Judgment In ejectment and writ of
possession were null and void, and that Rud-
dlck should reconvey the lands to Mrs. Sands
upon payment to him of the purchase price
with interest, and also decreed that he should
pay to the complainant her costs in the Court
of Chancery. We are of the opinion that In
the main the Vice Chancellor was right
[1] On familiar principles, where, as here.
it appears that the mind of the owner of real
estate was so Impaired as to make her In-
capable of understanding the nature and el-
fect of her acts or the affairs in which she
was participating, the purchaser of her real
estate at a sheriffs sale (made while sbe
was trying and substantially ready to pay
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N.J J
ECKERT ▼. TOWN Or WEST OBAKGE
269
the execntlon), who knew of her mental con-
dition, and who purchased at a price so In-
adequate as to shock the conscience, will be
directed, on payment to him of the money
expended for the property with lawful inter-
est, to reconvey the land. We therefore con-
clude that the decree Is quite right in so far
as it declares the deed null and Yold, and
directs, upon terms, a reconveyance to the
complainant.
[2] We also think the decree right as to
costa Where, as here, the guardian of a
lunatic, before flllng her bill, tenders to the
purchaser of the lunatic's real estate, bought
at a sheriff's sale, the amount of bis pur-
chase mon^ and Interest, which tender was
declined. It Is allowable for the Court of
(Siancery to require the purchaser to pay
the complainant's costs in that court, upon
the court's finding that equity requires a
decree that the purchaser shall reconvey the
property to the complainant upon payment
of the purchase price and lawful Interest
[3] But we think the decree below went too
Car tn adjudging the Phillips Judgment and
execution and the Ruddick Judgment in eject-
m»)t and writ of possession to be null and
void. The Court of Chancery has no power
In the strict sense of the term to set aside
a Judgment at law. In granting relief it
does not interfere with the records of the
law court or strike therefrom the Judgment
It treats the proceedings at law as valid and
grants relief against the consequences there-
of because the rights acquired thereunder
cannot be retained in good conscience by rea-
son of some new matter on which the court
of law did not or could not pronounce a Judg-
ment or which for some Just cause the party
could not bring to the consideration of the
court of law. The suit in equity to obtain
relief is strictly a proceeding in personam,
and the decree adjudges the rights of the
parties inter sese In relation to the Judg-
ment and the relief is limited to enjoining
parties from proceeding to enforce the Judg-
ment Clark T. Board of Education of Bay-
onne, 76 N. J. Eq. 326, 74 Ati. 319, 25 U R.
A. (N. 8.) 827, 139 Am. St Rep. 763.
The application of these principles to the
ease at bar necessitates the elimination from
the decree of such parts thereof as adjudg-
ed null and void the Phillips Judgment and
'execution and the Ruddick Judgment In eject-
ment and writ of possession. The decree
should, however, enjoin the defendiuit Rud-
dick from proceeding to enforce his Judgment
In ejectment and writ of possession.
With respect to the Plillllps Judgment and
<».xecutlon it is sufficient to say that It ap-
pears that Phillips has properly received
the moneys due thereon, and, if such Judg-
ment is not already satisfied of record, it
may be canceled upon proper proceedings for
that purpose. There Is therefore no reason
for enjoining further proceedings thereon.
The decree will be reversed to the extent
indicated, and the record remitted t» the
Court of Chancery for the entry of a decree
in accordance with this opinion.
Ko costs will be allowed in this court
(90 N. 3. Law, 546)
BOKBRT V. TOWN OP WEST ORANGE.
(No. 123.)
(Court of Errors and Appeals of New Jersey.
June 18, 1917.)
(Syllabua iy the Court.)
1. Towns «=>36, 38— Disposition of Gasb-
AOB— Adthobitt— Obdinanc«.
A town has the authority to provide for the
collection and disposal of ashes and garbage in
either of two ways, but not otherwise: first,
it may provide for the doin^ of the work by the
town itself. If It adopts this course, it must do
so by ordinance, with all of the formalities neo-
essary to enact a valid ordinance. Second, it
may make a contract with some one to do the
work. But where more than $S00 is to be ex-
pended, it has no authority to make a valid con-
tract until it has first publicly advertised for
bids, and the contract can then be awarded
only to the lowest responsible bidder.
[Ed. Note.— For other cases, see Towns, Cent
Dig. U 69, 72.]
2. Towns «=S9(1)— Rbmovai, or Oabbaob-^
Ul,tiia Vires Contbaot — Rxoovsbt oh
Quantum Msbuit.
Where a town has contracted for the remov-
al of ashes and garbage, involving an expendi-
ture of more than $500, without complying with
the provisions of chapter 342 of Laws 1912
(P. L. p. 593), requiring advertisement for bids
and award to the lowest responsible bidder,
there can be no recovery on a quantum meruit
for services rendered under such ultra vires
contract after the service upon the contractor of
the writ of certiorari sued out to review the va-
lidity of the contract
[Ed. Note.— For other cases, see Towns, Cent
Dig. I 73.]
3. Towns ®=989(1)— Ultra Vibes Contract—
Recovery on Quantum Meruit.
The law will not permit a recovery on a
quantum meruit in a suit against a munidpal-
ity whore an express contract would be ultra
vires because in violation of chapter 342 of
Ivaws 1912 (P. L. p. 693).
[Ed. Note.— For other cases, see Towns, Cent
Dig. I 73.]
Appeal from Circuit Court, Essex CJonnty.
Action by Frank G. Eckert against the Town
of West Orange. From a Judgment of the
Essex circuit court In favor of the defendant
the plaintiff appeals. Affirmed.
Arthur B. Seymour, of Orange, for ap-
pellant Borden D. Whiting and Ira C.
Moore, Jr., both of Newark, for appellee.
TRENCHARD, J. This Is an appeal from
a Judgment of the Eeaex county circuit court
in favor of the i.defendnnt in an action
brought to recover compensation for col-
lecting and disposing of ashes and garbage
in the town of West Orange. The material
facts are as follows:
The town coimcil of the town of West
Orange possed an ordinance purporting to
create the office of town scavenger. This
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101 ATLANTIC KEPORTER
(N.J.
ordinance provided that this so-called ofBcer
shonid collect all ashes and £:arbage and dis-
pose of the same at a place to be provided
by himself. His salary, by an amendment
passed May 5, 1914, was fixed at the rate of
$469.50 a month. This was intended not
only to compensate him for his services In
euperrlsing the work, but also to reimburse
blm for bis necessary expenses, such as
hiring men and providing wagons. Eckert,
the platntlfl, was appointed town scavenger
nnder this ordinance.
On July 20, 1914, a writ of certiorari was
allowed attacking the ordinance and the
appointment of Eckert thereunder, and the
writ was served upon Eckert July 23, 1914.
One of the grounds of attack was that It
violated chapter 342 of the Laws of 1912
(P. I* p. 593), which requires that, where
an expenditure of more than $500 is to be
Incurred for labor, materials, etc., the town
council must first publicly advertise for bids
and award the contract to the lowest re-
sponsible bidder. On August 14, 1914, the Su-
preme Court rendered Judgment setting aside
the ordinance and appointment and all pro-
ceedings thereunder. Briefly the basis of the
decision was that the person appointed un-
der an ordinance of this character was not
an officer of the town, and the services were
such aa should be regulated by contract
The plalntlft continued to act as scavenger
until September 15, 1914, thereby serving aft-
er service of the writ of certiorari upon hlra,
and even after entry of the Judgment setting
aside the ordinance and his appointment He
was paid In full up to July 31, 1914, which
was one week after the writ of certiorari
was served upon him. He has not been paid
for the work done from August 1, 1914, to
September 15, 1914. It is to recover compen-
sation for work performed by him during
this period that this suit was brought We
are of the opinion that the Judgment for the
defendant was right
The contention that, even though the con-
tract was set aside as Illegal, the plaintiff Is
nevertheless entitled to recover on a quan-
tum meruit. Is not well founded in law.
A municipality Is under no legal obligation to
take charge of the rubbish or garbage which
accumulates upon the properties of the in-
habitants thereof. It has authority to do so,
however, by virtue of the following acts of
the Legislature:
A supplement to the Town Act of 1895 (4
C. S. 6633, par. 378), provides that:
"The council shall have power by ordinance
to provide for the collection, removal, treat-
ment and disposal of ashes and garbage, and to
appropriate and provide for raising money by
taxation for the said purposes, or any or either
of them."
The Town Act of 1805 (P. L. 1895, p. 358),
as amended hy P. L. 1906, p. 324, provides:
"No ordinnnce or by-lnw shall be passed by
the town coimcil, unless the same shall have
been introduced at a previous stated meeting,
and shall be agreed to by a majority of the mem-
bers of tba conncil; and no ordinance shall
take effect until five days after it shall have
t)«cn published in the official newspapers of the
town, and if there be none, in at least one
newspaper published in the county and circulat-
ing in the town. • • • ••
Chapter 66 of the Laws of 1914 (P. L.
p. 91) provides as follows:
"It shall be lawful for the governing body of
(iny incorporated town of this state to enter
into and mako a contract or contracts, not ex-
ceeding the term of five years at a time, with
any corporation or individual for the collec-
tion and removal of ashes and rubbish, and for
the collection, removal and disposal of garbage."
Chapter 842 of the Laws of 1912 (P. L.
p. 593) provides as follows:
"Where and whenever hereafter it shall be
lawful and desirable for a public body in any
coanty, city, town, township, borough or vil-
lage to let contracts or agreements for the doing
of any work or for the furnishing of any mate-
rials or labor, where the sum to be expended
exceeds the sum of five hundred dollars, the ac-
tion of any auch public body entering into such
a^eement or contract, or giving any order for
the doing of any work or for furnishing of any
materials or labor, or for any such expendi-
tures, shall be invalid unless such public body
shall first publicly advertise for bids therefor,
and shall award said contract for the doing of
said work or the furnishing of such materials
or labor to the lowest responsible bidder: Pro-
vided, however, that said public body may, nev-
ertheless, reject any and all bids."
[1] It thus appears that the town council
has authority to provide for the collection
and disposal of rubbish and garbage In either
of two ways, but not otherwise: First it
may provide for the doing of the work by
the town itself. If it adopts this course, it
must do so by ordinance, with all of the
formalities necessary to enact a valid ordi-
nance. Second, It may make a contract with
some one to do the work. But, where more
than $500 is to be expended, it has no author-
ity to make a valid contract until it has first
publicly advertised for bids, and the con-
tract can then be awarded only to the low-
est responsible bidder.
The sections of the Town Act and the acts
of 1914 and 1912 above quoted should be read
together In the same manner as this court In
Townsend v. Atlantic City, 72 N. J. Law,
474, 65 Atl. 509, decided that the act under
which Atlantic City was organized (P. L.
1902, p. 284) and the Garbage Act (P. L.
1902, p. 200) should be read together. The
town therefore had no power to make the con-
tract in question with the plaintiff without
complying substantially with the provisions
of the act of 1912, and that admittedly it
did not do.
[2,3] Where, as in this case, & town has
contracted for the removal of ashes and
garbage involving an expenditure of more
than $500, without complying with the pro-
visions of chapter 342 of the Laws of 1912
(P. L. p. 503), requiring advertisement for
bids and award to the lowest responsible
bidder, there can be no recovery on a quan-
tum meruit for services rendered under sucb
ultra vires contract after the aervloe upon
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N.JJ
ECKERT v. TOWN OF WEST OBANOE
271
tbe contractor of tbe writ of certiorari to
rerlew tlie validity of the contract.
Tbis case is different from a suit against
a private corporation on a claim arising
out of an ultra vires contract. Tlie defend-
ant In tills case is a municipal corporation.
Tbe contract out of which tbe plaintiff's
claim arises is ultra vires, not because of tbe
Iirovisions of some private charter, but be-
cause It violates the public policy of tbe
state.
Tbe Legislature by the act of 1012 provid-
ed that all public contracts Involving the ex-
penditure of more than $500 must be publicly
advertised and awarded to the lowest bidder.
Ttxe purpose and importance of this act is
too obvious to require comment Tbe plain-
tiff Is now asking that a contract be implied
whlcb this law expressly declares shall b
invalid. His claim Is for more than $500. It
Is for services performed after tbe granting
and service of a writ of certiorari to review
bis express contract with the town, and in
large part performed after the Supreme
Court had set aside his express contract as
illegal. If he can recover on a quantum
meruit for these services, it would seem that
there would be nothing to prevent a town
council BO disposed from permitting talm to
continue Indefinitely to act as town scavenger
without any express contract, and thus evade
tbe provisions of the act of 1912 entirely.
Moreover, the law wlU not permit recovery
on a quantum meruit In a suit against a
municipality where an express contract
would be ultra vires. Recovery has frequent-
ly beeu allowed on a quantum meruit where
there has been some unimportant Irregularity
in the proceedings, or an innocent mistake aa
to some matter of fact. But the law will not
raise an Implied promise which would, as in
tbis case, be In direct defiance of an act of
tbe Legislature. If the plalntUTs contention
were correct, tbis law (P. L. 1912, p. 593),
which applies to all municipalities alike, and
represents a definite public policy, could be
nullified by proof of the fact that the man
had d<me tbe work, and therefore was en-
titled to^ what such work was reasonably
worth.
Id Swackbamer v. Hackettstown, 37 N. X
Law, 191, it was held that a note given for an
unauthorized loan could not be enforced
even though the money borrowed had been
expended for municipal purposes. CtdeC
.Tustice Bensley, In delivering the opinion of
the Supreme Court, said (at pa'ge 196):
"Nor do I think that It adds anything to tbe
right to enforce tbe note in tbis case that the
moncv which it represents, and which wna bor-
rowed, baa been expended in behalf of the cor-
poration for legitimate purposes. The argument
on this bead was that, as the money bad gone
for the benefit of the corporation, the law, up-
on general prindpleg, would compel its repay-
ment. If this is so, then tbe rejection of au im-
plied power to borrow is of little avail. The
doctrine, although repudiated in the abstract,
would be ratified in the concrete. • • • It
Is to be noted that it is altogether a fallacy to
argue that the law will raise an implied prom-
ise to repay the money after it has been used.
The impediment to sucb a theory is that the
corporation has not the competency to make the
promise thus sought to be implied. An express
promise, to the effect contended for, would be
illognl. and therefore clearly the law will not
create oue by implication. • • * No one can
justly reproach the law for not providing him a
remedy for his own folly or indiscretion. Such
folly or indiscretion may have enabled tbe
city officials to create a burden, or may have
stimulated them to acts of extravagance which
would not have been otherwise created or done.
It is but just that tbe individual who has oc-
casioned the evil should bear the loss."
In Hill Dredging C!o. v. Ventnor City, 77 N.
J. Eq. 467. 78 Atl. 077, it was held that a
municipal corporation cannot be bound by an
engagement which it had no power to make;
and tbe corporate powers of such a corpora-
tion cannot be extended by tbe doctrine of
estoppeL
In Dallas v. Sea Isle City, 84 N. J. Law,
679, 87 AtL 467, this court said:
"Courts are instituted to carry into effect the
laws. They cannot become auxiliary to the
consummation of violations of law. And so it
has been held with practical unanimity in such
circumstances, since an express promise to pay
is ultra vires and unlawful, the law will not
raise an implied promise."
See, also, Bourgeois v. Freeholders of At-
lantic, 82 N. J. Law, 82, 81 Atl. 358, and cases
there collected.
Tbe cases cited by the plaintiff in his brief
furnish no support for a recovery in this case.
For example, In the Bourgeois Oase, supra,
the lumber was ordered by an unauthorized
agent, but the board of freeholders had au-
thority to buy tbe lumber and by Its acts
ratified the purchase.
In N. Y., 8. ft W. R. R. Co. v. Paterson,
86 N. J. Law, 101, 91 Atl. 324, tbe city had
the power to make the contract, although it
was not regularly executed.
In Wentlnk v. Freeholders, 66 N. J. Law,
65, 48 Atl. 609, there was no lack of power
to make the contract. There was an Inno-
cent mistake for which the plaintiff was not
responsible, and as to a matter about which
he was not bound to Inquire.
In Klemm v. Newark, 61 N. J. Law, 112,
38 Atl. 692, tbe city was held to have tbe
power to make the contract; as the making
of it acted as a suspension of the ordinance
which forbade it See MacLear v. Newark,
77 N. J. Law, 712, 714, 73 AO. 503.
In Tappan v. Long Branch Commission, 00
N. J. Law, 371, 35 Atl. 1070, the proceedings
were regular on th^r face, and the dty was
acting wltUn the scope of its chartered
power.
The case of Bigelow v. Perth Amboy, 25 N.
J. Law, 297, does not appear to be applica-
ble, but in that case the city bad tbe power
to purchase the materiaL
It is true that tbe work performed by the
plaintiff In the case at bar was of a charac
ter which the defendant was authorized by
law to have done; and It is true that the
plaintiff performed the work for the defend-
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101 ATLANTIC REPOUTER
(N.J.
ant at its request. The plalntllTs dlflScnlty
Is that the request was ultra vires and In-
valid. While the defendant was authorized
to make a contract for this work, its author-
ity was conditional upon its awarding the
contract in accordance with the provisions
of the statute of 1012. It had not the power
either to make or to ratify an express con-
tract in any other manner ; and the law will
not imply a contract which the parties had
not power to make. The plaintiff in this
case was a party to a scheme to evade and
nullify a well-deflned public policy of this
state, and his present predicament is a direct
result of that scheme. What his motive may
have been is immaterial. Under such cir-
cumstances the courts will not aid him by
implying a contract which the law expressly
forbids, but wUl leave him where it finds
him.
The Judgment below will be aflBrmed, with
costs.
(M N. J. Lav, 512)
DALX V. GABVEN. (No. 133.)
'Court of Errors and Appeals of New Jersey.
Jane 18, 1917.)
(EvUahut bv th« Covrt.)
1. Statutes «=5>64(2)— Prefibential Voting
Act— PARTtAL Unconstitutionalitt— Ef-
fect—Titlb to Office.
The provisions of the act of April 7, 1914,
commonly known as the Preferential Voting
Act (Pamphlet Laws 1914, p. 170), that "all
ballots shall be void which do not contain first
choice votes for as many candidates as there are
offices to be filled," Is not separable from the
other provisions of the statute, so that it may
be rejected and the residue of the statute be
permitted to stand ; hence, if such provision
be unconstitutional the act as a whole tails, and
an election held under its terms is incapable of
conferring a de jure title to a private relator un-
der section 4 of the Quo Warranto Act (3 Comp.
St. 1810, p. 4212).
[Ed. Note.— For other cases, see Statutes,
Cent. Dig. i§ 59, 195.]
2. CONSTITUTIONAI. LAW «=»46(3)— VALIDITY
OF Statute— Necessity of Determination.
In quo warranto, when a defeated candidate
for an elective office, in order to obtain a judicial
determination that be received a plurality of
the ballots cast at such election, seeks a deci-
sion as to the unconstitutionality of the statute
under which the election was held, which is fatal
to his de jure title to the office, the court, in
view of the futility of deciding the question, will
decline to pass Mpon it.
[Ed. Note.— For other cases, see Constitution-
al Law, Cent Dig. { 45.]
Appeal from Supreme Court.
Information in tlie nature of quo warranto
by Bert Daly against Pierre P. Garven.
S^m the Judgment of the Supreme Court in
favor of defendant, entered upon a postea
certifying the result of the trial before the
circuit court of Hudson county, plaintiff ap-
peals. Affirmed.
Elmer W. Demarest, of Jersey City, for ap-
pellant. Gilbert Collins, of Jersey City, for
appellee.
GARRISON, J. This appeal brings up for
review a Judgment of the Supreme Court la
favor of the defendant in quo warranto enter-
ed upon a postea certifying the result of a
trial before the circuit court of Hudson coun-
ty. The parties were candidates for the of-
fice of commissioner of the city of Bayonne
under the act of 1911, commonly known as
the Walsh Act (Pamphlet Laws 1911, p. 4(52).
Five commissioners were to be elected. The
election was held under the supplement of
1914, commonly known as the Preferential
Voting Act (P, L. 1914, p. 170), the pertinent
provision of which is that "all ballots shall
be void which do not contain first choice
votes for as many candidates as there are
offices to be filled," which was brought to
the attention of the voters by a direction on
the ballot, viz., "If more than one office is
to be filled, vote as many first choices as
there are offices to be elected or the t»aIIot
will be void."
More tlian 9,000 ballots were cast in com-
pliance with this statutory provision, and
counted for the respective candidates. The
canvass of the votes so counted showed the
election of Garven, the defendant, over Daly,
the relator, by less than a score of votes. In
making this canvass 192 ballots were reject-
ed, for the reason that they did not contain
first choice votes for five candidates for the
office of commissioner. If these ballots had
been counted, they would change the result
by giving the relator a plurality over the de-
fendant. The relator, deeming the provision
of the statute which required the rejection
of these 192 ballots to be unconstitutional,
and believing that he was lawfully entitled to
the office in question, filed his information in
the nature of a quo warranto under the
fourth secti(m of the Quo Warranto Act, in
which he set forth the foregoing facts in
detail, concluding with the charge that the
said relator by virtue of said election was
lawfully elected one of the commissioners of
the said city of Bayonne, and is entitled to
said office, "which the said Pierre P. Garven
hath usurped to the exclusion of said Bert
Daly." Issue was Joined, and upon the trial
at nisi prius, Judge Speer, sitting by consent
without a Jury, held that the act of 1914 was
not unconstitutional, which decision Justified
the rejection of the 192 ballots on which the
relator's claim to the office rested, and this Is
the trial error that is laid as the ground foc-
the reversal of the Judgment of the court:
below.
[1] It is the contention of the appellant
that the act of 1914 is unconstitutional, for
the reason that it places a compulsion upon
all electors to vote a first choice for as many
candidates for commissioner as there were
offices to be filled. His argument is that this
provision may operate to shut off voters from
the ballot box and hence must Call before tba
constitutional guaranty of the right to vote.
4s>For oiber cases see lame topic and KESY-NUMBBR In all K<7-Number*d Dtsasta and lodexw
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N.J.)
DALY V. GARVEN
27a
dtlng Ransom v. Black, 54 N. J. Law, 461,
24 AO. 489, 1021, 16 I* R. A. 760. The fol-
lowing quotation from the brief of oounsel
for the appellant Illustrates his argument:
"It might very well happen In a given case
that there were only five candidates for five of-
fices. Two of them, perhaps, might be totally
unfitted to fill the office. Yet, in order to cast a
vote for the fit persons, the voter is compelled
to vote for persons who shonld not be trusted
with the administration of public offices.'^
A still stronger argument Is that, by be-
ing compelled to vote for other candidates in
addition to voting for those who are bis real
choice, the elector may actually bring about
the defeat of the candidates whose election
he desires.
The oonstltutlonality of an election law
bavlng these possibilities is evidently a de-
batable Question of great interest and Im-
portance.
A subsidiary question of vital importance
to the appellant's contention is whether this
provision, if found to be unconstitutional,
may be exscinded from the statute, leaving
its remaining provisions to stand.
We are clearly of opinion that this cannot
be done. The occasion for the exercise of this
delicate Judicial function is carefully stated
by Mr. Justice Depue in Johnson v. State, 59
N. J. Law, 535, 539, 37 Ati. 949, 950, 39 AtL
646, 38 L. R. A. 373, in these words:
"The same statute may be in part constitu-
tional and in part unconstitutional, and if the
parts are wholly independent of each other, that
which Is constituti<Hial may stand and that
which is nncODstitntional will be rejected ; but
if the different parts of the act are so intimately
connected with and dependent upon each other
as to warrant a belief that the Xiegislature in-
tended them as a whole, and that if all could
not be carried into effect the Legislature would
not have passed the residue independently, and
some parts are unconstitutional, all the provi-
sions which are thus dependent upon each other
must fail."
Stated more tersely, the same doctrine is
laid down by Mr. Justice Dixon in Albright
y. Sussex County Lake Commission, 71 N. J.
Law, 309, 59 AtL 146, 69 U B. A. 768, as fol-
lows:
"The general rule with regard to the validity
of a statutory scheme, some feature of which
proves to be unconstitutional, is that, if the ob-
jectionable feature be not so important to the
legislative design as to warrant the opinion that
the scheme would not have been authorized with-
out it^ then the residue of the scheme will be
upheld ; otherwise, the entire scheme will faU."
Tested by either of these criteria, the pro
Tision in question is on the one hand not
wboUy independent of the other provisions
of the act, but on the contrary is intimately
connected with them and with the scheme as
a whole, while as to its importance. It was
evidently inserted under the belief that with-
out It a complete board of commissioners
mig|ht not be elected, ajid so the entire
scbeme of the statute be defeated.
The entire scheme of the statute relates to
tbe holding of an election in which the provi-
sion in questicm is the most striking feature ;
to eliminate such a feature from a comi^ete
101 A.— 18
legislative program requires an act of legis-
lation. Such a provision may be dropped by
a subsequent Legislature as the result of ex-
perience or because it ditCers in opinion from
Its predecessor. P. L. 1916, p. 216. That,
however. Is a totally dlfCerent thing from a
Judicial determination that tbe provision was
deemed of little or no importance by the Leg-
islature that enacted it
The provision that is attacked by th€) ap-
pellant is, therefore, not separable from the
residue of the statute ; hence, if such provi-
sion be unconstitutional the statute is in-
valid and the election held under it is Inca-
pable of affording a de Jure title to any of
tbe candidates thereat, including the appel-
lant
True it is -that the respondent and the oth-
er de facto commissioners might not be di-
rectly affected by such a Judicial opinion.
The appellant, however, has no such de facto
status, he is a private citizen claiming a de
Jure title to an oflBce by force of an election
which, if his argument be sound, can confer
a de Jure title upon no one. For it must be
remembered that the title of tbe relator as
well as that of the respondent is at issue.
Lane v. Otis, 68 N. J. Law, 656, 54 Atl. 442.
In the proceeding which the appellant has
Instituted In his own right against the re-
spondent, tbe very rights of both parties are
drawn into question. Manahau v. Watts, 64
K J. Law, 465, 45 Atl. 813.
This being so, to what end should a court
consider and decide a constitutional question,
which, if decided as the appellant argues it
should be, would be of no avail to him as a
suitor? The charge of the Information is
that the de facto tenure of the respondent ex-
cludes the appellant from an office to which
he has the de Jure title. It we cannot ad-
judge the latter, an adjudication of the for-
mer would be of no avail to this private rela-
tor. If the 192 ballots on which the title of
the appellant rests were improperly rejected,
because of the compulsory provision of the
statute as to first choice under whidi tbe
election was held, and If such compulsion
renders tbe statute unconstitutional, then the
remaining 4,293 votes on which the appellant
bases his title were cast under a like com-
pulsion, and were tor a like reason incapable
of affording valid evidence of a de Jure title.
In fine, if the statute be Invalid because
of the compulsory feature It brought to bear
upon all the electors, it is equally invalid as
to those who yielded to such compulsion as it
is to those who stood out against It. So that,
adopting the appellant's illustration, every
one of such 4,293 ballots cast for him may
have been so cast because of such compul-
sion. If this be too extreme, still it Is at
least true that we have no way of knowing
how many ballots were cast for the relator
because of tbe invalid provision of the stat-
ute.
To take another Illustration from tbe ap-
pellant's brief:
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274
101 ATLAJSTTIC REPORTER
{N.J.
"In the Bayonne election there were but 13
candidates. Who can say whether or not voters
were not disfranchised by being compelled to
vote for at least 5 or not at all."
Ix)ok at It as we may, an Invalid election
cannot Invest the appellant with a de Jure
title.
[2] To sum the matter up In a single sen-
tence: In quo warranto, when a defeated
candidate for an elective oflBce, In order to
obtain a judicial determination that he re-
ceived a plurality of the ballots cast at an
election, seeks a decision as to the unconstitu-
tionality of the statute under which the elec-
tion was held, which is fatal to his de jure
title to the office, the court, In view of the
futility of deciding the question, will decline
to pass upon It.
The redress songht by the appellant as a
private relator has two aspects which are In-
terrelated, viz., that the respondent should be
ousted from his office In order that the appel-
lant be Installed therein, which would not be
effected by a decision that the act of 1914
was nncon.stltutlonal.
A decision that cannot affect the litigants
liefore the court ought not to be made, and If
it ought not to be made, It need not be con-
sidered especially In view of what was said
by this court in Devlin v. Wilson, 88 N. J.
Law, 180, 96 Atl. 42.
Having thus reached the conclusion that,
upon no ground that Is available to the ap-
pellant, is any legal error shown In the action
of the court below, the judgment of the Su-
preme Court Is affirmed.
<S7 N. J. Bq. (SO)
BRINK v. FLANNAGAN. (No. 186.)
(Court of Errors and Appeals of New Jersey.
June 18, 1917.)
(St/llabus bu the Court.)
JCDOUENT fi=»779(2)— T-IEN— Statutb.
A judgment in attncbmcnt nnder the net of
1901 (1 Comp. St. 1910, p. 132), is ineffective
as a lien against land conveyed by bona fide
unrecorded deed made and delivered prior to the
issue of the writ of attachment.
[Ed. Note.— For other cases, see Judgment,
C«nt Dig. { 1342.]
Appeal from Court of Chancery.
In the matter of condemnation of lands
for school purposes In the Township of Hill-
side; Iveander Brink and Dallas Flannagan,
claimants of proceeds. From a decree of the
Court of Chancery for Flannagan, Brink ap-
peals. Reversed, with instructions.
William R. Wilson, of KllzalMJth, for ap-
pellant Vail & McLean, of Elizabeth, for
appellee.
PARKER, J. The controversy is over the
proceeds of lands taken In condemnation pro-
ceedings, which proceeds were paid into the
Court of Chancery pursuant to the statute.
Flainiagnn claims them under a Judgment In
an attachment suit against one McKooa, a
former owner; Brink claims as holder of the
title under McKoon by mesne conveyances.
The attachment was never executed
against the lands in question. It was sued
out of the Supreme Court in 1903, and writ
issued to other comities, but not to Union
county, where these lands are situate. Some
two years before, in 1901, McKoon had con-
veyed the lands to one Decker, under whom
Brink claims. The deed to Decker was not
recorded until 1910. Meanwhile Flannagan
went on with his attachment suit and enter-
ed judgment therein on November 23, 1904.
He does not seem to have discovered the
Union county lands until about 1914, when he
applied to the Supreme Court to amend the
return by including them in the attachment;
but this application was denied, on the
ground that after judgment it came too late.
The court intimated that the judgment It-
self was a lien on these lands, and this no
doubt was the basis of the decision in the
Court of Chancery that Flannagan, the at-
taching creditor, was entitled to the money.
We think that this ruling disregarded the
language of the statute, which says (section
8, C. S. p. 13S) that "the judgment Is a lien on
the defendant's lands acquired either before
or after the entry thereof." To the inquiry
whether these lands were "defendant's lands"
at any time during the prog;ress of the attach-
ment suit we answer that the case plainly
shows that they were not, for they were con-
veyed away two years before it was begun,
and there is no Intimation that the convey-
ance was not a bona fide one. The master,
in his report to the Chancellor, puts the alleg-
ed lien of the Judgment upon the ground that
the deed had not been recorded. This would
be correct in the case of a general Judgment
in a suit begun by personal process, but in
attachment the language of the act Is differ-
ent, as we have seen.
In Garwood v. Garwood, 9 N. J. Law, 193,
the question was whether a writ of attach-
ment bound land that had been conveyed by
unrecorded deed, under a statute that pro-
vided It should bind the property and estate
of the defendant from the time of executing
the same. It was held that it did not. A
similar question arose in the Court of Chan-
cery touching the priority of the writ as to
a mortgage. Campion v. Kille, 14 N. J. Eq.
229, affirmed in this court 15 N. J. Eq. 476.
The statutes are in pari materia, and we see
no reason to depart from decisions which
have stood so long unquestioned. It Is true
that there is in both cases cited an intima-
tion of a different result If a Judgment were
In question; but these intimations were obi-
ter, and predicated on the language of the
conveyance act, which, if Inconsistent with
the attachment act of 1901, must be deemed
superseded thereby.
Our conclusion Is that a Judgment in at-
^3For otber casea see aame topic and KBY-NUMBBR In all Ke7-Numbered Dlgesti and Index**
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DARVILI/E ▼. BOARD OF CHOSEN FREEHOLDERS
275
tachment under the act of 1901 Ig ineffectlTe
as a Hen against land conveyed by bona fide
unrecorded deed made and delivered prior to
the Issue of the writ of attachment The de-
cree of the Court of C!hancery will be re-
versed, with instruction to award the fund In
question to the holder of the title conveyed
by McKoon to Decker.
(90 N. J. Law. 617)
DARVIIXB V. BOARD OF CHOSEN FREE-
HOLDERS OF ESSEX COUNTY.
(Court of Errors and Appeals of New Jersey.
June 18, 1917.)
(Syttaltta hy the Cottrt.)
Bridoxs «=>46(8)— Detkctivk Bq^dob— Lia-
bility— Question fob Jubt.
The plaintiff having fallen from a county
bridge, by reason of the ^ving way of an iron
rail, and there being testimony from which the
jnry might infer negligence of the defendant, in
the performance of its statutory duty of main-
tenance and repair, as well as the question of
tho defendant's ownership of the rail, and of
the locus in quOj and also testimony from which
an inference might reasonably he drawn, that
tl)e defendant assumed responsibility and exer-
cised control over the rail in question, held, that
a motion to nonsuit as well as a motion to di-
rect a verdict were properly refused.
[Ed. Note. — For other cases, see Bridges,
Cent. Dig. i 120.]
Appeal from Circuit Court, Eissez County.
Action by James Darvllle against the Board
of Chosen Freeholders of the County of Es-
sex. From the denial of its motions to non-
suit and to direct a verdict, defendant ap-
peals. Afllrmed.
Harold A. Miller, of Newark, for appellant
Hugh B. Reed, of Newark, for appellee.
MINTURN, J. The plaintiff was Injured
by falling from the entrance to a public
bridge, crossing Third river at Nutley, In the
count}' of Essex. The cause of his fall he
attributes to the negligence of the defendant
in failing to use reasonable care to keep the
rail or guard of the approach to the bridge
in a reasonably safe condition. The plaintiff
fell while attempting to lean upon an Iron
guard rail which ran from the bridge at right
angles, to an adjacent blacksmith shop, out
of which the plaintiff came and proceeded to
cross the bridge. While he was stopping to
answer the salutation of a friend, he placed
bis band and weight upon the rail, when it
gave way and precipitated him ten feet to
the bed of the stream, producing the injuries
which present the basis of this suit
The defendant denies responsibility, Insist-
ing that the rail In question was not placed
there by the county, and that at the time of
the Injury the plaintiff was not upon the
public thoroughfare, but was upon private
property adjoining the bridge, upon which
was the rail, and that therefore the county
was under no legal liability to maintain or
repair It The alleged contributory negli-
gence of the plaintiff, under the circumstanc-
es, presented the final ground of defense.
These Issues the trial court treated as Jury
questions, and refused a motion to nonsuit,
and to direct a verdict based thereon.
There was testimony sufficient In the case
from which a Jury might infer that the coun-
ty at the time the bridge was erected con-
structed the rail in question. There was
testimony also from which a Jury might con-
clude that the county, recognizing Its respon-
sibility for the maintenance of the rail, bad
at least dx months prior to the acddent
caused the roll, with the rest of the struc-
ture, to be painted, and that after the acci-
dent the county engineer ordered the rail re-
paired. The latter fact, while not directly
evidential of liability, might be accepted as
a recognition or admission by the defendant
of the extent of the defendant's ownership
or control of the ralL These facts were met
by counter evidence from which the Jury
might infer the absence of either ownership
or maintenance upon the part of the defend-
ant and some testimony from which It was
argued that the locus in quo, upon which the
plaintiff stood at the time of his fall, was
private property, over which the defendant
could not legally exercise any act of control
or ownership.
These questions manifestly presented a
Jury question, involving as they did inquiries
as to questions of fact, and not of law, and
In leaving them to the Jury the rule Is com-
monplace that the trial court committed no
legal error. The production by the defend-
ant of the plans for the construction of the
bridge might have thrown light upon the
question of the original construction, and
have shown the presence or absence of the
rail In question, but the failure to produce It
left the question open, assuming the locus in
quo to be private property, whether during
an Interim of years since the original con-
Btructlon, the defendant may not have as-
sumed, the added responsibility, and imposed
the corresponding liability upon itself by ac-
cepting permission, tantamount to a license
from the adjoining landowner, to keep and
maintain the rail as part of the structure, a
legal status which the Jury might reasonably
infer in fact existed in view of the acts of
supervision and maintenance, which the
proof showed the defendant exercised over
the entire structure.
The liability of defendant being entirely
statutory (P. L. 1860, p. 285; C. S. p. .<{04, i
0; Maguth v. Freeholders of Passaic, 72 N.
J. Law, 226, 62 Atl. 679; Freeholders of
Sussex V. Strader, 18 N. J. Law, 108, 35 Am.
Dec. 530), the trial court properly left these
questions to the jury, premising its comments
upon the situation, with the fundamental con-
siderations that the defendant's liability was
conditioned upon their answer to the Inquiries
whether the rail in question was part of the
4t=aiFor other ease* see same topic and KBY-NUUBER In all Key-Numbered Digest* and IndexM
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276
101 ATLANTIC REPORTER
(N.J.
bridge, and whether the plaintUT at the time
of the accident was upon defendant's proper-
ty or upon private property, over which the
defendant assumed no responalblUty and ex-
ercised no control.
The charge of the trial court, and its rul-
ings upon testimony, were In consonance
with these principles of liability, and the
Judgment will therefore be affirmed.
(87 N. J. Bq. 596)
FIRST NAT. BANK OF HOTTTZDALB, PA.,
V. PARKER et al. (No. 25.)
(CJoort of Errors and Appeals of New Jersey.
June 18, 1917.)
(BvUahut by tlt« Court.)
Bquttt «=>43 — JvBisDionoN — Rkhedt at
LikW.
A court of equity, when its remedial juris-
diction is invoked in aid of or in lieu of an ac-
tion at law, will examine, not only the transac-
tion in question, bat the relations of the parties,
and all of the surrounding circumstances, to
the end that, if there is a well-grounded sus-
picion of fraud or deception, it may withhold
Its aid and leave the complainant to his legal
remedy.
[EM. Note. — For other cases, see Equity, Gent
Dig. SS 121-140, 164-166.)
Swayze, J., dissenting.
Appeal from Court of Chancery.
BUI of complaint by the First National
Bank of Houtzdale, Pa., against Thomas B.
Parker and others. From a decree of the
Court of Cba&ceiy, complainant appeals. Af-
firmed.
John D. McMulIln, of Moorestown, for ap-
pellant. George J. Bergen, of Camden, for
appellees.
GARRISON, J. The Mil of complaint la
exhibited to collect a Judgment at law out of
a fund placed In trust for his own use by the
Judgment debtor. Such a bill will lie to pre-
vent a fraud upon bona fide creditors. Stat-
ute of Frauds, i 11 (Comp. St. 1010, p. 2617) ;
Chancery Act (Act April 3, 1902 [P. L. p.
534]) i 70.
Upon three previons occasions similar Mils
were filed by the same complainant, who In
each case obtained the relief prayed for.
Upon the flUng of this fourth bill the Vice
Chancellor, who heard the cause and who
had made the previous decrees, became con-
vinced that the statutes of this state were
being used, not to protect a bona fide cred-
itor of the settlor of the trust, but to en-
able such settlor to do what he could not law-
fully do, viz., to regain the corpus of the
trust fund. Some of the reasons that led
tile Vice Chancellor to this conclusion were
stated by him to counsel upon the argument
as follows:
"When on three snccessivp occasions, namely,
in 1910, 1912, and 1914, Mr. Parker has bor-
rowed on the dates named, respectively, $10,-
000. $12,000, and $13,000 in the same manner,
and on each occasion the bank has been obliged
to resort for the collection of the loans to
the same method now pursued, namely, a judg-
ment in New Jersey, personal service upon Mr.
Parker out of his own state, in the New Jersey
lawsuit, service which it is reasonably appar-
ent is made possible by Mr. Parker for the con-
venience of the bank, then a bill in equity in
New Jersey identical with the present bill,
with personal service on Mr. Parker procured
in the same way, is not the bank ctmrgeable
with knowledge of circumstances that make it
impossible to escape the conclusion that when
they make the fourth loan in the same manner
tbcy are simply making themselves the instru-
ment for Mr. Parker to accomplish indirectly
what he cannot accomplish directly?"
The fact that these remarks were made to
counsel while the trial was still In progress
has a marked significance upon the bona
fides of the complainant Such a statement
by the court while the case was still open
afforded an opportunity, If it did not amount
to an Invitation, to the complainant to oCTer
proof of any fttcts that would tend to rebut
the Impression the Vice Chancellor had form-
ed as to the collusive character of the suit
That no such proof was offered is practically
tantamount to an admission that no such
facts existed.
The Vice Chancellor had, moreover, the
advantages of the familiarity with the case
gathered in previous litigations, and of the
presence before him of the witnesses. With-
out these advantages, we are in danger of
dealing with the case upon mere legal ab-
stractions; whereas he dealt with it as the
practical application of an equitable remedy
to the given case.
In his final conclusions the Vice Chancel-
lor, referring to the previous litigation, said ;
"In that litigation complainant became fully
apprised of the fact that the trust was void only
as to bona fide creditors of Parker, and that
Parker could not in his own behalf recover from
the trust company the principal of the trust
funds. Tbo three sul>s^uent loans made by
complainant to Parker, and the proceedings
taken in each instance by complainant for re-
covery from the trust company of the money
so loaned, render it impossible to escape the
conclusion that In making the loan here in ques-
tion complainant deliberately and knowingly
constituted itself an agency to enable Parker to
regain control of his property. The circum-
stance that complainant actually advanced mon-
ey and sought to make a profit for itself is im-
material. The practical status which complain-
ant has deliberately assumed is that of a per-
manent conduit between Parker and the trust
company from which Parker may draw funds
at pleasure. Complainant has constituted it-
self a creditor for the sole and definite purpose
of appropriating to itself tho superior bene-
fits of that status. Creditors' rights which ap-
peal to equitable protection are of an inherent-
ly different quality. • • • I am fully con-
vinced that this court cannot be properly made
the involuntary machinery for carrying out au
arrangement of that nature for tho ultimate
benefit of Parker."
We fully concur In the conclusions thus
reached by the learned Vice Chancellor, and In
the consequent dlsiuissal of the complainants*
bill which may well be rested upon a well-
grounded suspicion that a collusive deception
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FIRST NAT. BANK v. PARKER
277
was being systematically practiced upon the
court of equity In order to obtain for one pur-
pose the extraordinary aid it accords only for
a totally different purpose.
A positive demonstration of actual fraud Is
not necessary. In the well-considered opinion
in the case of Worth t. Watts, 76 N. J. Bq.
290, 74 AtL 434, Mr. Justice Parker points
out that, when parties having a right of ac-
tion at law seek the aid of a court of equity,
8a«^ court will examine not only the trans-
action in question, but the relations of the
parties and all of the surrounding circum-
stances, to the end that, if "an atmosphere of
suspicion surrounds and permeates the whole
case," a court of equity will refuse its extraor-
dinary relief and leave the complainant to
his legal remedy. That is this case.
The circumstance that In the case just
dted the same Vice Chancellor sat below
gives concrete emphasis to the fact that
"stare decisis" Is only a more technical term
for Judicial consistency.
The decree of the Court of Chancery Is af-
firmed.
SWAYZi:, J. (dissenting). The trust in
tbls case was created by Parker himself. As
soon as he attained his majority he assigned
securities amounting to more than |160,000 to
his mother, and she Immediately assigned
them to the Camden Safe Deposit & Trust
Company. The declaration of trust provides
tbat the income shall be paid to Parker dur-
ing bis life for his sole and separata use, so
that the same &hall not be liable to or for his
debts and contracts, or for debts or contracts
or under the control of any other person.
Immediately after his death the property is
to be assigned to su<^ person and for such
uses as he shall by will appoint ; in default
of a wUl, to his mother, if living, freed and
discharged of the trust, but if she die before
Parker, then to such person as she may by
will appoint, and In default thereof to such
persons as would l>e entitled under the laws
of Pennsylvania to the estate of Parker. A
right is reserved to Parker, with the consent
of bis. mother, if living, to revoke the trust,
and to Parker alone to revoke it after his
mother's death. She died in 1901. The trust
was made Irrevocable Just before her death
by consent of her and Parker. The deed of
trust is clearly void as to creditors under sec-
tion 11 of the statute of frauds (C. S. 2617),
because made In trust for the use of the per-
son making the same, and also because on Us
face it shows an intent to defraud future
creditors. The case comes also within sec-
tion 70 of the Chancery Act, subjecting to the
rights of creditors moneys held in trust where
tbe trust has been created by the Judgment
debtor himself. It does not come within the
mle of Rnckman v. Conovcr, 37 N. J. Eq. 583,
and Wlnans v. Graves, 43 N. J. Bq. 263, 11
AtL 25, to which the Vice Chancellor appeals.
In those cases the rights of third parties were
Involved. So much tbe court now concedes.
No one is interested in tbe fund except Par-
ker himself. No one opposes the complain-
ant's recovery of Its money, except the trust
company, which has no beneficial Interest in
the fund, except possibly commissions to be
earned. Parker has apparently done all be
could to secure the complainant its money,
except to make a binding agreement to exe-
cute his power of appointment In favor of
his creditor, which he can do, if It be neces-
sary. The question, therefore, resolves itself
into whether be is to be prevented, in spite
of himself, from securing payment of bis
debts by a Judgment, execution, and proceed-
ings in chancery supplementary thereto. The
case goes further than to protect the corpus
of the fund. The bill is dismissed, and the
complainant is thereby derived of its ren>
edy, even against the income of tbe fund
wliich is clearly Parker's absolute property,
and is probably la excess of the $4,000, men-
tioned in the statute. C. S. 2254, 30A; P. L.
1880, p. 274.
We have not heretofore adopted In this
state the doctrine of "spendthrift trusts," and
our Legislature has evinced hostility to them
by subjecting Income in excess of $4,000 to
supplementary proceedings at law, even
where the trust is created by another. We
are now by this decision going far beyond any
doctrine of spendthrift trusts that has ever
come under my notice. And we are doing It
without any evidence that Mr. Parker needs
the protection of tbe court as be certainly
does not ask for It. We do it because, with-
out proof, we guess that a man who borrows
about $10,000 a year and chooses to pay it
out of a fund of which the equitable and ben-
eficial right is wholly bis own, by means of
Judgment and execution, must be doing
wrong, and without evidence we attribute
moral delinquency to a creditor who loans
him the money at the legal rate and In the
ordinary course of business. There Is no evi-
dence as to Parker's other means or his for-
tune aside from the trust fund; there is no
evidence as to his need of the money, or the
use he made of it. It may have been used for
a highly profitable investment; it may have
been used to discharge debts Incurred by blm
of the highest moral obligation. In effect we
say tbe bank was right in loaning him $35,-
000 in four years; the Court of Chancery en-
forced its right to recover out of this fund
three different times. We now say that for
it to loan him $13,000 in tbe fifth year, and
to attempt to recover it by the thrice ap-
proved method, shows that It la guilty of
some moral delinquency; that its hands are
unclean, because it is assisting him to get
control of his own property, in which no one
else has any beneficial interest, and to dis-
charge that prc^erty of a trust created by
himself and pronounced void by statute. If
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the conrt Is correct, tradesmen who supply
him with the means of Hying must be llkewlso
guilty of moral delinquency If they supply
him for a fifth year, after having enforced
their claim for four years out of this fund.
This must be so, since, as far as the case
shows, the money loaned by the bank may
have been loaned for the express purpose of
meeting Parker's legitimate llTlng expenses,
which may not have been extravagant for
one of his means. I cannot understand on
what legal principle the bank can have Im-
posed upon It the duty to explain what be-
comes of the money It loans. The Legislature
has recently shown a desire to go to great
lengths to assist creditors in recovering their
debts. A worklngman's wages "due and
owing • • • or • • • thereafter be-
come due and owing" may be sequestered. P.
L. 1915, pp. 182, 470. We are protecting an
income on a trust fund in excess of $100,000.
created by the debtor himself and expressly
declared by him alone not to be "liable to
or for his debts and contracts." The way is
made easy for a man of fortune to escape the
ordinary obligation to pay his debts. In spite
of legislation to compel him to pay. I confess
I cannot follow the court's reasoning. I pass
over the question that might well be raised
as to the estate in the trust fund of a life
tenant with an al>solute power of disposition
by wUl.
(90 N. J. Law, 261)
STATE T. HART. (No. 7B.)
(Court of Errors and Appeals of New Jersey.
June IS, 1917.)
1. (Triuinal Law $=>1090(1) — Bin. or Ex-
ceptions—Right TO.
Under Cr. Prac. Act (Revision 1877, p. 284)
{ 91, bills of exceptions are allowable to the
defendant for trial errors on the trial of any
indictment in any court for any crime or misde-
meanor.
2. Cbxmtnal Law «=>1024(5)— Right of Rb-
view— aoquittai..
Under Const 1844, art. 1, par. 10, providing
that no person shall, alter an acquittal, be tried
for the same offense, no writ of error will lie
in a criminal case in favor of the state to
review a judgment of acquittal.
iiSd. Note. — For other cases, see Oiminal
I>aw, Cent. Dig. {{ 2604-2806.]
3. Cbiminal Law «=3l86— Fobueb Jbofabdt.
Under Const. 1844, art 1, par. 10, a person
cannot bo tried a second time for the same of-
fense after he has been acquitted in a court
having jurisdiction of the person and the crime,
even though acquittal was the product of trial
errors.
[Ed. Notei — ^For other cases, see Criminal
Law, (3ont. Dig. M S12, 320, 345-361.]
Error to Supreme Court.
Frederick Hart was indicted for seduc-
tion. The trial court directed the Jury to ac-
quit Iiim, and the State sued out a writ of
error in the Supreme Conrt (88 N. J. Law, 48,
95 Atl. 756), which was dismissed. The
State brings the record up for review on writ
of error to the Supreme Court Affirmed.
Martin P. Devlin, of Trenton, for tlie State.
William J. Crossley, of Trenton, for defend-
ant in error.
KALISCH, J. Tlie defendant in error was
indicted for seduction. On his trial in the
quarter sessions court of Meroer county the
trial judge directed the jury to acquit Iilm.
The state sued out a writ of error in the
Supreme Court to the court of quarter ses-
sions, which writ was dismissed by the Su-
preme Court upon the ground that in order
for the state to secure a review of a trial er-
ror, it must be able to bare a Mil of excei>-
tlons and a writ of error based thereon to
remove the case to that court, and since the
statute makes no such provision, and there
being no such practice at common law as a
writ of error in f&vor of the crown after an
acquittal on the merits, the writ was im-
properly sued out The state now brings
the record up for review before us on a writ
of error sued out of this court to the Supreme
Ck>urt At common law a bill of exceptions
was not allowable in a criminal case. Error
was assignable only upon the record. The
bill of exceptions Iiad its origin in the Stat-
ute Westm. II, 13 Edw. I, c. 81.
Tidd, in volume 2 on Practice, p. 911, In
commenting on this statute, says:
"This statute extends to inferior courts, and
to trials at bar, as well as those at nisi prins:
but it has been doubted whether the statute ex-
tends to criminal cases."
In King V. Archbishop of York, Wllles'
Rep. 5a3, Lord Chief Justice Wllles, In dis-
cussing the scope of chapter 31, on page 535
says:
"My brother Abney cited 2 Inst. 424, and
Saville, 2, where it was holden that the Stat-
ute of Westm, II, c. 30, concerning nisi prius,
does not extend to the King, and that although
the act is general, yet a nisi prius cannot be
granted where the King is a party, or where
the matter toucheth the ri^t of the King,
without a special warrant from the King or the
consent of the Attorney General. He said like-
wise that chapter 31 of the same act. concern-
ing bills of exceptions, was never thou^t to
extend to the crown. And he mentioned some
cases where such pleas had been denied, and
said that ho thought that the Stat 0 Anne, c
20, extending this statute to writs of mandamus,
etc., rather strengthened the objection."
In 2 Inst 427, Lord Coke says:
"This act doth extend as well to the demand-
ant or plaintiff as to the tenant or defendant in
all actions real, personal or mixed."
And in King v. The Inhabitants of Preston,
Rep. temp. Hardw. 249, Lord HardwicUe on
page 251, on an information in the Court of
Exchequer, said that when he was Attorney
General he had known a tAll of exceptions
allowed, "but then," said his lordship, "they
are properly civil suits for the King's debt,
etc. But a bill of exceptions cannot be al-
lowed by the justices of peace at the quarter
sessions on the bearing of an appeal against
an order of removal."
In the case of Sir Henry Vane, 1 Lev. 68,
Kel. 15, Sid. 85, who was tried for high trea-
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STATE T. HABT
279
son, the conrt refnsed to seal a bill of ex-
ceptions, because, they said, criminal cases
were not within the statute, but only actions
l>etween party and party. This matter Is
fnlly discussed In a learned and exhaustive
note by Mr. Evans in volume 3 of Evans'
Statutes, p. 341 et seq., Ed. of 1829. On
page 342 the learned commentator says:
"From the language of the statute itself, I
■certainly should not infer its application to
<*riminal cases. • • ♦ The general feeling of
the profession upon the subject is most strongly
-evinced by the fact of no such bill of exceptions
having been tendered for a very long period of
time, although many Important questions of
criminal law have been discussed with ^at
warmth, and with strong feelings of opposition
to the opinions of the court of which the much
agitated question of the functions of the Jury
in cases of libel previous to the Statute of
Oeorge III is perhaps the most prominent in-
stance."
Cbitty, in volume 1 of his excellent treatise
on Criminal Law, on page 508, says:
"When an exception is made by any party to
a witness which is overruled by the court, the
opposite side have, at leant in civil proceedings,
the power of appealing from his decision by ten-
dering a bill of exceptions. This document the
judge must in dvil cases seal by virtue of 13
Edw. 1, c. 31, and it will operate hke a writ
of error. But It seems to bo the better opin-
ion that this provision does not extend to any
criminal case, and is certainly inadmissible on
indictments for treason and felony. It has in-
deed been allowed on an indictment for a misde-
meanor, but the propriety of this allowance has
been dispnijed."
In Alley ne's Case, Dearsley, Cr. Cases Re-
served, 1852-1866, Lord Campbell, C. J., on
page 509, says:
"A bill of exceptions could not lie for the
Statute of Westminster II is confined to civil
cases."
Under the ancient English practice trial
errors In criminal cases were reviewable by
the taking of a special verdict or by a case
reserved which Is illustrated by the follow-
ing instances:
In King v. Hodgson et al., 1 Leach's Cr.
Oases, p. 6, a case decided in 1730, there was
a special verdict upon an Indictment against
several defendants Jointly Indicted, tried,
and convicted. The question was whether
under the evidence they were all equally
guilty. The report of the case states:
"In order to avoid the expense which attends
the drawing and arguing a special verdict, the
counsel agreed to submit the point to the con-
nideration of the judges in the shape of a reserv-
«d case."
In Reg. T. Bernard, 1 F. & F. Cr. Cases,
p. 252, the defendant's attorney submitted
atrven legal questions to the trial court to be
reserved, the seventh of which was concern-
ing a certain letter which was claimed to
hare been Improperly received in evidence,
upon which Lord Campbell, C. 3., sitting
with Pollock, C. B., Erie, J., and Crowder,
J., nnd a Jury, remarked:
"There appears to be no objection of reserving
any of these points except the seventh : but that
point, as you must be awnrp, was argued before
US, and we were unanimously of the opinion
that the letter was admii^ible. All other points
which you have raised ar« very fit indeed for
the consideration of the 15 Judges."
And so it was held by the courts of the
state of New York prior to the passage of a
statute providing for bills of exceptions in
criminal cases that no bill of exceptions conld
be taken in a criminal case. People v. Hoi-
brook, 13 Johns. (N. T.) 90 ; People v. Vermil-
yea, 7 Cow. (N. T.) 108; ESx parte Barker,
7 Cow. (N. T.) 143.
A consideration of the history of the origin
and development of bills of exceptions In this
state Is highly important as bearing upon the
question as to what the common law was on
the subject prior to the Constitution of 1770.
The first act relating to bills of exceptions
was passed in 1797, and is to be found in Pat-
terson's Lews, p. 245, entitled "An act di-
recting bills of exceptions to be sealed." This
act, though somewhat narrower in its terms
than the English parent act of Westminster
II, in that the New Jersey statute contines
its operation to causes where a writ of error
lies to a higher court, whereas the English
statute is general in that regard. In all
other respects, however, the act of 1797 is,
in substance, a copy of the earlier English
statute.
An examination of the early reports of
criminal cases in this state shows an absence
of bills of excei>tiou8 in such cases until
1849, when In West v. State, 22 N. J. Law,
212, for the first time, ^manifestly, in a crimi-
nal case under review', with a return of the
record came a bill of exceptions, which the
reporter says was signed by virtue of the act
of 1848.
Looking into the practice which prevailed
In. criminal cases In this state prior to the
passage of the act of 1848, we find that it was
analogous to the practice which prevailed In
England before the Bevolution of 1776, so
far as it was consonant with our changed
form of government. The practice was for
the trial Judge or court to take a special ver-
dict, reserving the questions of law for the
opinion of the Judges, or to certify a stated
case asking for an advisory opinion. See
State V. GuUd, 10 N. J. Law, 175. 18 Am.
Dec. 404.
That the concensus of opinion of both
beach and bar of this state was that the act
of 1797 did not provide for bills of exceptions
In criminal cases is not only confirmed by the
practice above alluded to, but also by the
statute of 1848 (P. L. 1848, p. 226), entitled
"An act directing bills of exceptions to be
sealed in certain criminal cases."
Section 1 of this act declares:
"Tbat the act entitled 'An act directing bills
I of exceptions to be sealed' passed March 7tb,
1797, and each and every of the provisions
thereof, shall be taken, deemed, and adjudged
to extend to trials of indictments for crimes and
misdemeanors which by law are punishable by
imprisonment at hard labor."
Section 2 of the act provides for the taking
of an exception on the trial of an indictment
for any crime or misdemeanor Included wlth-
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101 ATLANTIC REPORTER
(N.J.
In the provisions of the first section of the
act, and for the return of the bills of ex-
ceptions, with a writ of error.
In 1855 the Legislature by an act entitled
"A supplement to an act, approved April the
sixteenth, 1846, and entitled 'An act regulat-
ing proceedings and trials in criminal cases,' "
declared tliat the act passed In 1797 shall be
taken, deemed, and adjudged to extend to
trials of Indictment for treason, murder, or
other crimes punishable with death, mis-
prision of treason, manslaughter, sodomy,
rape, arson, burglary, robbery, forgery, per-
jury, and subornation of perjury, and in ex-
press terms repealed the act of 1848. P. L.
1855, p. 648.
It is obvious that the effect of tills declara-
tion of the Legislature and the repeal of the
act of 1848 precluded the taking of bills of
exceptions in cases of misdemeanor, and not
mentioned in the above category of crimes.
In 1863 the Legislature, after declaring
that the act of 1797 shall apply to criminal
cases, extended the right to a bill of excep-
tions on the trial of any indictment for any
crime or misdemeanor. P. L. 1863, p. 811;
Nixon's Dig. p. 228, pars. 49, 90.
[1] By section 90 of the Criminal Practice
Act of the Revision of 1877, p. 284, It is pro-
vided that sections 242, 243, 244, 245, and
246 of the act entitled "An act to reg^ilate the
practice of courts of law" shall be deemed
taken and adjudged to extend to trials of
indictment for crimes and misdemeanors
which by law are punishable by imprison-
ment at bard labor. This obviously left all
cases of misdemeanor punishable by line
only or by imprisonment only, or by fine and
imprisonment, without the benefit of bills of
exceptions. But by a later statute found In
the Revision of 1877, p. 1298, section 90 of
the Criminal Practice Act was repealed, and
section 91 of the same act was amended,
with the result that bills of exceptions for
trial errors are allowable "on the trial of any
indictment * * * in any court of this
state, ft>r any crime or misdemeanor." It is
to be noted that the right of review for trial
errors on bills of exceptions in criminal cases
is given by the statute of this state solely to
the defendant.
These statutes were enacted after the
adoption of the Constitution of 1844. They
essentially broadened the operation of a writ
of error in favor of a person convicted of
crime.
In view of the constitutional provision
(article 1, par. 10) that no person shall, after
an acquittal, be tried for the same offense,
it Is clear that it is not within the constitu-
tional power of legislative authority to con-
fer by statute any such right on the state.
It is no answer to the prosecutor's claim to
the right to review a trial error to say that,
because the crown at common law was not
entitled to a bill of exceptions in a criminal
case, therefore no writ of error would lie In
its behalt For it has already been suffi-
ciently pointed out that bills of exceptions
In criminal cases were unknown to the
common law, and to the criminal proce-
dure of this state until the statute of
1848. But as to the right of the crown to
a writ of error at common law for a trial er-
ror in a criminal case there seems to be some
diversity of opinion. It is the concensus of
Judicial opinion that the sole function of a
writ of error at common law was to bring up
for review errors appearing on the face of the
record. In Rex v. Wilkes, 4 Burr. 2650,
Lord Mansfield, Inter alia, said:
"Till the third of Queen Anne, a writ of error
in any criminal case was held to be merely ex
gratia. • • • But in the third of Queen
Anne ton judges were of the opinion that in all
cases under treason and felony, a writ of error
was not merely of grace, but ought to be
grranted."
"It cannot issue now without a fiat from the
Attorney General, who always examines wheth-
er it bo sought merely for delay or upon a prob-
able error. * * * In a misdemeanor, if
there be a probable cause, it ought not to be de-
nied; tliis court would order the Attorney
General to grant his fiat. But, be the error ever
so manifest in treason or felony, the King's
pleasure to deny the writ is conclusive."
The beadnote to the case Re Plgott, de-
cided In 1868, 11 Cox, Cr. Cas. p. 311, reads:
"The granting of a writ of error is part of
the prerogative of the crown. If, therofore, the
Attorney General ot Kngland or the Lord Lieu-
tenant of Ireland refuse to grant it, the Lord
Chancellor has no jurisdiction to review that
decision."
Bishop, in the second edition of his valu-
able treatise on Criminal Procedure (volume
1, 1 1191), In commenting on the English prac-
tice relating to the writ of error, says:
"It never was granted except when the King,
from justice when there really was error, or
from favor where there waa no error, was will-
ing the judgment should be reversed. After
writ of error grantod, the Attorney General
never made any opposition because either he had
certified there was error and then he could not
argue against his own certificate, or the crown
meant to show favor, and then he had orders
not to oppose. The King, woo alone was con-
cerned as prosecutor, and who had the absidute
power of pardon, having thus expressed his
willingness that the judgment should be revers-
ed, the Court of King's Bench reversed it upon
very slight and trivial objections, which could
not have prevailed if any opposition had been
made, or if the precedent had been of any con-
sequence."
But enough has been said to demonstrate
that a writ of error even in a case of misde-
meanor did not, under the English practice,
issue, as a matter of course, upon the applica-
tion of a convicted defendant, and that the
writ was resorted to by the crown to show
favor to the convicted person and to brins
about a reversal of the Judgment agrainst him.
Singularly enough it does not appear that
the writ was ever used by the Attorney Gen-
eral to reverse a Judgment of acquittal until
the cases of Reglna v. MUls, 10 CL & F. 634.
decided in 1843, Reglna v. Chadwlck, 11 Q. B.
205, decided In 1846, and Reglna v. Houston,
2 Craw. & IMx, 191, the latter case being a
Judgment on demurrer In favor of the def«id-
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N. JJ STANDARD GAS POWER COBP. t. NEW ENGLAND CASUALTY CO. 281
ant. In none of these cases was the ques-
tion raised as to the right of the Attorney
Oeneral to take the writ And because of
this situation counsel for the state argues
that It must be accepted as a fact that the
right of the crown to take the writ In case cl
An acquittal is Indisputable.
To a similar contention of counsel made In
People 7. Coming, 2 N. T. 9, 49 Am. Deo,
364, dealing with the precise question under
discussion, the Court of Appeals, through
Bronson, J. (2 N. T. on page 17, 49 Am. Dec.
364), said:
"The woig-ht of authority seems to be against
the right of the goTemment to bring error in a
criminal case. The absence of any precedent
for it, either here or in England, unul within
A. very recent period, fully coanterbalanceB, if
it does not outweigh, the fact that the right
has lately been exercised in a few instances
without objection. And in three of the four
states whore the question has been made the
-conrts have decided that the right does not ex-
ist"
But even if It assumed that It was the
practice in England for the Attorney General
to take a writ of error in a criminal case,
■where the defendant was acquitted, we must
not overlook the fact that this power so ex-
■erclsed sprung from a governmental policy
to carry out the royal prerogative of the King
and was used either to favor or oppress a
subject Such a policy could not, consistently
with our free form of government have be-
-come imbedded in the administration of law
in this state. And wlille we recognize in full
measure the functions of a writ of error as
they existed at common law up to the time of
tbe adoption of the Gcmstitutlon of 1776, the
procedure relating thereto is of statutory
regulation.
[2J Whatever doubt may exist whether the
King under the common law could have a
writ of error In a criminal case after judg-
ment of acquittal of the defendant, it has
been, as declared in the opinion of the Su-
preme Court, the unquestioned practice In
tills state recognized, and acquiesced In by
bench and bar, that no such writ would
lie In favor of the state to review a judg-
ment of acqulttaL Since the Constitution de-
dares that no person shall, after an acquittal,
be tried for the same offense, no legislation
can be constitutionally enacted giving the
rifibt of review in cases where there has been
an acqulttaL
[3] Counsel for the state argues that the
word "acquittal" In the Constitution signifies
legal acquittal, and that, where it appears
that a trial error has occurred which led
to an acquittal, It cannot be prc^erly said
that there was an acquittal within the mean-
ing of the constitutional sense of the word.
To adopt this view would lead to a nulliflca-
tion of the benefit of the constitutional provi-
sion. The obvious design of the framers of
tXie Constitution was to prevent oppression.
Where an acquittal is had in a court of com-
petent jurlsdlctioQ having jurisdiction of the
person and the crime with which he is
cliarged. It is an acquittal witliln the mean-
ing of the constitutional provision, even
though such acquittal was the product of
trial errors.
In the case of State v. Meyer, 66 N. J. Law,
233, 47 Aa. 486, 52 L. R. A. 346, the defend-
ant was convicted In the court of quarter
sessions, and took a writ of error to the
Supreme Court, where the judgment of the
quarter sessions was reversed. Thereuiwn
the prosecutor of the pleas sued out a writ of
error from this court to reverse the judg-
ment of the Supreme Court and the defend-
ant moved to dismiss the writ on the ground
that the state was not entitled to a writ of
error In a criminal case. Tills court justified
the propriety of the taldng of the writ by the
state by virtue of an act of 1799 (Pat L.
345):
"That errors happening in the Supreme Conrt
of this state shall be heard, rectified and deter-
mined by tho Court of Apneals in the last re-
sort in all cases of law."
It is to be observed that the defendant in
that case was convicted in the court of first
Instance, and that it was an Intermediate
court, whose action was subject to review
by this court, which reversed the Judgment
This case Is therefore no authority for the
proposition advanced by counsel for the state
that a writ of error may be prosecuted by the
state where an acquittal Is the result of mis-
direction by the court
For the reasons given, the judgment of the
Supreme Court dismissing the writ of error
Is affirmed.
(90 N. J. Law, 570)
STANDARD GAS POWER CORP. v. NEW
ENGLAND OASUALTT CO. (No. 8.)
(Court of Eirrors and Appeals of New Jersey.
June 18, 1017.)
(ByUahu* ty the Court.)
1. Pbincifai. and Sukett «=959 — Subktt
Bond — Construction.
Where a bond refers to another contract and
is conditioned for the performance of the specific
agreements set forth therein, such contract, with
all its stipulations, limitations, or restrictions,
becomes a part of the bond, and the two should
be read together and construed as a whole.
[EM. Note.— For other cases, see Principal and
Surety, Cent Dig. §§ 103, 103%.]
2. Pbincipai, and Sukety ®=»81 — Subbtt
Bon d— Conbtbdction — Liability.
A bond given by a contractor and bis surety
to the Passaic Valley Sewerage Commissioners,
conditioned that it shall be void if the contractor
shall pay for all labor and materials furnished,
and shall perform all the obligations of his con-
tract Cor building a sewer (by which contract he
agreed to save harmless the commissioners from
claims for labor and materials), is limited to an
indemnity of the obligee, and is not made for
the benefit of persons who furnish materials to
the contractor, even though the contract fur-
ther provided that the commissioners might pay
claims for labor and materials used in the work
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101 ATLANTIC BBPORTEE
(N.J.
aud call upon tLe contractor to repay the same,
or might retain fnnda In their hands, due or to
become du« to the contractor, for that purpose.
[Ed. Note. — For other cases, see Principal and
Surety, Cent Dig. § 126.]
3. CoNTBACTs «=»187(1)— Contractob'b Bokd
—IdABiLiTT— Statute.
The statute (Comp. St. 1910, p. 4059, { 28),
permitting a third party not privy to a contract
and who has fciven no consideration to sue there-
on, is limited to those for whose benefit the
contract is made, and does not extend to third
parties who indirectly and incidentally would be
advantaged by its performance.
[Ed. Note. — For other cases, see Contracts,
Cent. Di«. { 798.]
Appeal from Supreme Court
Action by the Standard Gas Power Cor-
poration against the New England Casualty
Company. Judgment for defendant, and
plaintiff appeals. Affirmed.
McDermott & Enrlght, of Jersey City, for
appellant. Robert Strange, of South Orange
(Stuart McNamara, of New York City, on
the brief), for appellee.
TRENCHARD, J. This Is an appeal from
a judgment for the defendant rendered by
the trial Judge, sitting without a Jury, at
the Hudson circuit We are of the opinion
that the Judgment must be affirmed.
The pertinent facts are these :
The Passaic Valley Sewerage Commission-
ers (a public corporation of the state of New
Jersey) advertised for bids for the building
of a section of the Passaic Valley sewer,
with notice that the successful bidder would
be required to execute a contract and bond
with satisfactory surety in a certain form
prescribed. The Healey Contracting Com-
pany, a corporation of New Jersey, pursuant
to such call, bid In writing for such work
upon the form prescribed by the commission-
ers. Such bid was accepted by the commis-
sioners, and the Heoley Contracting Com-
pany entered into a contract with the com-
missioners for the execution of such work,
'delivering to the commissioners concurrently
therewith its bond In the sum of $20,000, ex-
ecuted by it as principal and by the New
England Casualty Company as surety, both
contract and bond being In the form pre-
scribed. The bond provides that the princi-
pal and surety are "held and firmly bound
unto the Passaic Valley Sewerage Commis-
sioners in the sum of $20,000." The bond
further provides that such sum is "to be paid
to the Passaic Valley Sewerage Commission-
ers, for which payment, well and truly to be
made, they bin'd themselves," etc. The con-
dition of the bond is as follows :
"Now the condition of this obligation is such,
that if the said principal shall well and truly
keep and perform all the obligations, asreements,
terms and conditions of this said contract on its
part to be Isept and performed and shall also
pay for all labor performed and furnislied and
for all materials used in carrying out of said
contract, then this obligation shall be void;
otherwise it shall remain in full force and vir-
tue."
Article 13 of the contract provides that :
"The contractor shall take all responsibility
of the work, and take all precautions for pre-
venting injuries to persons and property in or
about the work; shall bear ail losses resulting
to him on account of the amount or character
of the work, or because the nature of the land
in or on whicli the work is done is different from
what was estimated or expected, or on acconnt
of the weather, elements or other cause; and
he shall assume the defense of, and indemnify
and save harmless, the commissioners and their
officers and agents, from all claims relating to
labor and materials furnished for tlie work,"
etc.
Article 17 provides In effect that the com-
missioners might pay claims for labor and
materials used in the work and call upon the
contractor to repay the same, or the commis-
sioners might retain funds in their hands
due or to become due to the contractor for
that purpose. The Healey Contracting Com-
pany entered into the performance of the con-
tract, and It, and its receiver, after it had
been decreed to be Insolvent, purchased, part-
ly from the plaintiff and partly from the
plaintiff's assignor, certain of the materials
used in the construction of the sewer called
for by the contract These claims for ma-
terials purchased from the plaintiff and the
plaintiff's assignor, and used in the perform-
ance of the work, remaining unpaid, the
plaintiff requested the commissioners to en-
force the bond for the benefit of the plain-
tiff. This the commissioners did not do, and
subsequently the plaintiff brought this suit
against the New England Casualty Com-
pany, the surety, upon the theory that the
action is maintainable by the plaintiff as
one for whose benefit the bond was given.
We are of the opinion that the trial Judge
rightly held that the bon'd in question was
limited to an indemnity of the obligee, and
was not made for the benefit of persons who
furnished materials.
The plaintiff bases its contention that the
action Is maintainable by it as one for whose
benefit the bond was given upon the statute
which reads as follows:
"Any person for whose benefit a contract is
made, whether such contract be under seal or
not, may maintain an action thereon in any
court and may use the same as matter of de-
fense in any action brought against him notwith-
standing the consideration of such contract did
not move from him." C. S. p. 4059, g 28.
But that contention is untenable. No
doubt where, as here, a bond refers to anoth-
er contract and is conditioned for the per-
formance of the specific agreements set fortli
therein, such contract, vrith all its stipula-
tions, limitations, or restrictions, becomes a
part of the bond and the two should be read
together an'd construed as a whole.
But so construed, it is clear that the bond
is a contract of indemnity for the benefit
of the Passaic Valley Sewerage Commission-
ers, and not for the benefit of those furnish-
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MICHAEL y. MXNCHIK
283
ing materials. The intent and purpose which
the commissioners had In requiring it were
twofold: The protection of the public in-
terest in the proper performance of the work,
and the protection of the commissioners from
liability for claims on account of the work.
The language of the bond, apart from the
condition therein, clearly indicates that the
bond Is solely for the benefit of the obligee,
and the condition of the bond Is a mere lim-
itation and restriction upon the language
found In the obligation thereof to the effect
that the principal and surety "are held and
firmly bound unto the Passaic Valley Sewer-
age Commissioners in the sum of $20,000,"
and the person to whom the obligation is to
be discharged is manifested by the further
proTlslon of the bond to the effect that
sndi sum is "to be paid to the Passaic Val-
ley Sewerage Ck>mmi8sioners." Beading Jthe
bond in connection with the proTlsions of
the contract it appears that the commission-
ers are given two means of protecting them-
selves from loss resulting from unpaid claims
for labor and materials, first, by paying the
claims themselves and calling upon the con-
tractor to repay them, and If the contractor
fails to make such repayment, to rely upon
the bond furnished by the contractor, or,
secondly, to retain any moneys due or to be-
come 'due for the payment of such claims.
But it does not appear that the bond was
made or intended to be made for the pro-
tection of persons furnishing materials to
the contractor who at most were merely In-
directly and incidentally advantaged thereby.
Now the statute upon which plaintiff re-
lies (C. S. p. 4069, g 28), permitting a third
party not privy to a contract and who has
given no consideration to sue thereon, is lim-
ited to those for whose benefit the contract
Is made and does not extend to third parties
who Indirectly and Incidentally would be
advantaged by Its performance. Styles v.
Ix)ng, 67 N. J. Law, 413, 418, 51 Atl. 710;
Styles V. Long, 70 N. J. Law, 301, 305, 57 Att
448; Lawrence v. Union Insurance Co., 80
N. J. Law, 133, 138, 76 Atl. 1053 ; American
Malleables Co. v. Bloomfield, 83 N. J. Law,
728. 736, 85 AtL 167.
The Judgment below will be affirmed, with
costs.
<90 K. J. Law, COS)
MICHAEL V. MINCHIN.
(Court of Errors and Appeals of New Jersey.
June 18, 1017.)
(Syllabus iy the Court.)
Wil^LB «=»545(4), 855 — Constbuctiow — Bx-
ECUTOBY DEVISB!— FbK.
The testator devised to bis wife for life bis
real estate, aud after her death to his three chU-
clren, oach a distinct parcel specifically describ-
ed, subject, amuug others, to this proviso, "In
Case my Son Horry W. Mincfain Should de-
Iiart this life without Issue His Share will go
to my Dautcr li^ma Jane Minchin." Harry
survived the life tenant and Emma died during
the life tenancy, leaving a child. The life ten-
ant conveyed to Harry all her interest in the
lands devised to him. Beld, that Harry having
survived the life tenant and the executory
devisee, Emma, his estate in the land devised
to bim became absolute for two reasons: (a)
Because the words "depart this life without
issue" were properly referable to the death of
the life tenant and not to the devisee, applying
Patterson v. Madden, 54 N. J. Eq. 714, 36 Atl.
273 ; (b) that by the death of the executory
devisee, Emma, in the lifetime of Harry, the
gift over became impossible of performance, and
that the estate of Harry, the first taker, be-
came absolute, applying Uen v. Schenck, 8 N.
J. Law, 20, and Drummond's Bxecutor v. Drum-
mond, 26 N. J. Eq. 234.
[Ed. Note— For other cases, see Wills, Cent.
Dig. 11 1174, 2171.]
Appeal from Circuit Court, Essex County.
Action by Mary F. K. Michael against Har-
ry W. Minchin. Judgment for plaintiff, and
defendant appeala Beversed, and venire de
novo awarded.
George Minchin died leaving a last will
and testament In which, by the first para-
graph, he devised to his wife for life his real
estate, and at her death to his three children,
Harry, Emma, and Adaline, each a distinct
parcel specifically described, and to his son
Abraham $3,000, subject to the following
conditions :
"Should death take my Dauter Addeline or
She do not have anny Issue Children living at
her death her Part will be divided between my
son Harry W, Minchin and my dauter Emma
Jane Minchin in Case my Son Harry W, Min-
chin Should depart this life without Issue His
Share will go to my Dauter Emma Jane Min-
chin if Emma Should depart this life without
(Issue Children) her Share Should go to my
Son Harrr W. Minchin in Case of my (three 3)
last mentioned children depart this life without
Issue then the whole Shall go to my Son Abra-
ham C. Minchin.
"Second — I leave to my wife Mary Jane my
life Insurance Poliaeys and when Paid She
Should Pay my Son Abraham C. Minchin his
Share $3000.00/100 out of it besides in Say
Sixty days after or as can be done I leave my
Wife Mary Jane all My Personal Property for
her lifetime and at her death it Shall go to my
Son Harry W. Minchin if alive and if not
alive to my Dauter Emma Jane and is not
olive to my Dauter Addie Ll La Bough and if
She is dead to my Son Abraham C. Minchin
but at anny time during my wife life if She
Wish she can give to my son Harry or my Dau-
ter Emma anny or aU Parts of what was left
to them besides She is to Scport them uutill
the are of age in as good a way as it will Alow
I diret my Exectiors to Pay all my lawful
deaths."
The testatw left him surviving his widow
and the four children mentioned In the will,
which was probated August 8, 1882. The
widow is dead, and of her children three
died In her lifetime, Abraham without Issue,
and Adeline and Emma leaving issue. Har-
ry Is still alive, and has two children living.
The widow conveyed her life estate in the
land devised to Harry, to him, and he and
bis wife conveyed the land, the subject of
this suit, to the plaintiff by a deed containing
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101 ATLANTIC REPORTER
(N.J.
a special covenant of seisin In fee simple, and
the plaintiff brought tbis action to recover
damages for an alleged breach of that cove-
nant because, as she claims, Harry has not
an Indefeasible estate, but one that is subject
to the gift over to Emma If he should die at
any time without leaving issue.
Arthur H. Mitchell, of Newark, for appel-
lant. Lum, Tamblyn & Ck>lyer, of Newark,
for re^>ondent
BERGEN, J. (after stating the facta as
above). Upon the foregoing facts the trial
court held, a Jury being waived, that the
estate of Harry was a fee simple subject to
a defeat upon his death at any time without
issue, in which event the executory devise
over to his sister Emma J. Mlnchin, who died
in his lifetime, vested In her heirs or devi-
sees, and that Harry's estate remained de-
feasible until after his death leaving issue,
and ordered Judgment entered for the plain-
tiff, from which the defendant has appealed.
The result reached by the court below Is
erroneous for reasons to be stated. The
trial court disposed of the case without at
all considering the effect of the intervention
of the Ufe estate of the widow, and the post-
ponement of the right of possession of Harry
until after the death of the life tenant.
Passing for the present the consideration
of the question concerning the character of
the estate which Emma took under this will
if she died before Harry, to be hereinafter
dealt with, and assuming that there are two
gifts after the life estate, one to Barry, de-
feasible upon his death at any time witiiout
Issue, and another, the remainder, to his
sister Emma in that event, the liraltation,
over, in such case, will be referred either to
the death of the first devisee, or of the life
tenant, as the court may determine from all
the provisions of the will, because it should
be so construed as to give effect to the in-
tent of the testator ascertainable from his
will. In the present case the will should
be so construed as to refer the death of Har-
ry without issue to death in the lifetime of
the life tenant "Where the two concurrent
or alternative gifts are preceded by a life,
or other partial Interest, or the enjoyment
under them la otherwise postponed, the way
is open to a third construction, that of ap-
plying the words in question (depart this life
without issue) to the event of death occurs
ring before the period of possession or dis-
tribution." Jarman on Wills, vol. 3, 648. In
Patterson v. Madden, 64 N. J. Eq. 714, 723,
36 Atl. 273, 275, Justice Oummere, In a well-
considered opinion read for this court, de-
clared that two rules are established in this
state, in the construction of wills containing
a liraltation over by way of an executory de-
vise after the death of the original devisee
without issue, and they are stated by him
as follows:
"First. If land be devised to A. in fee and a
subsequent clause in the will limits such land
over to designated persons in ease A. dies with-
out issue, and A. so dies, and the substituted
devisees are in esse at his death, and there is no
other event expressed in the will to which the
limitation over can fairly be referred, then A.
takes a vested fee which becomes divested at his
death and vesta in those to whom the estate is
limited over.
"Second. Where there is an event indicated in
the will other than the death of the devisee to
which the limitation over is referable (for in-
stance, the distribution of the testator's estate
or the pustponement of the enjoyment of the
property devised until the devisee reaches the
age of 21 or until the exhaustion of a prior Ufe
estate), such limitation over will be construed
to refer to the happenioR of such event or to
the death of the devisee, according as the court
may determine from the context of the will and
the other provisions thereof, that the limitation
clause is set in oppositicm to the event specified
or is connected with the devise itself."
It will be observed that under the first
rule the substituted devisees must be In ess©
at the death of the first taker which is not
the condition in the case under considera-
tion, for here the executory devisee 'died li»
the lifetime of the first taker, and duringr
the existence of the life estate. In the Pat-
terson Case the will gave certain farms to
his four sons upon condition that neither of
the farms should be sold by his sons during
the lifetime of Ms wife, with the proviso
that if either should die without lawful is-
sue, the widow of the one dying should have
the use of the farm given to the son so long
as she remained unmarried, and on her mar^
rlage or decease, over to his lawful heirs, and
it was there held that the limitation over
stoo'd not in opposition to the devise, but to
the event of the devisees coming Into pos-
session, and that the limitation over became
operative only In case the prior devisee died
without Issue before the death of his mother,
and the case of Williamson v. Chamberlain.
10 N. J. Eq. 873, was cited as an example of
the application of the second rule. In that
case there was a gift of a life estate to a
wife In real and personal property with re-
mainder to his children, upon condition that
if any of his children should die without
lawful issue his or her share should be di-
vided between the survivors, and It was held
that the limitation over stood, not in opposi-
tion to the devise, but to the dlstributloa to
the children after the death of the wife, and
that the limitation over was defeated by the
death of the mother during the lifetime of
the children. Under the cases referred to,
supported by numerous citations not neces-
sary to be here repeated, the present wlU
should be construed to mean that testator in-
tended if Harry survived bis mother his es-
tate should become absolute, for the words
"should depart this life vdthout Issue" are
properly referable to death without Issue
during the life tenancy. This Interpretatioa
of the intent of the testator is aided by the
second paragraph of the will where the jier-
sonal estate Is given to the widow for Ufa
and at her death to Harry if alive, and iC
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N.J J
MICHAEL V. MINCHIK
285
not alive to Emma, "bat at anny time during
my wife life If She -wish She can give to my
Son Harry or my Daater Emma anny or all
Parts of what was left to them." This will
was evidently drawn by an Illiterate person,
and Is crudely expressed, but It Is reasonably
subject to Interpretation that the wife was
authorized to turn over to Harry any part
of what was left him by the will when he
came of age, for until that period the wife
was required to support him In "as good a
way" as his share would allow.
That the power of appointment given to
the wife, to be exercised at any time she
might wish, was not Intended to be limited
to tCfb personal estate, may be Inferred from
the fact that Emma Is given no part of the
personal estate unless she was alive at her
brother's death, and therefore the gift to
Emma of all part of what was left her, If
the life tenant so wished, would be without
meaning unless It referred to something that
bad been left to, and which could be advanc-
ed to her, and so when the wife exercised
her power of appointment by conveying to
Harry the land that was left to bim, she ac-
celerated, as she had a right to do, the period
of distribution as to Harry, but whether
this be so or not we have no Uoubt that the
testator intended Harry to have his share.
If he survived his mother, and that the ex-
ecutory devise to Emma was dependent upon
his death without Issue In the lifetime of
his mother, and as he survived her his estate
became absolute.
Tbe trial court was also In error in holding
that notwithstanding the death of Emma,
the executory devisee, in tbe lifetime of her
brother Harry, she had an estate which pass-
ed to her child, and that the chlTd will take
the land by inheritance from her mother If
Barry should at any time die without issue.
Tbe gift to Emma was a personal one, there
being no gift over in case of her death.
Under the common law she would have tak-
en a life estate, but by virtue of our statute
concerning wills (section 36, G. S. p. S873),
taer estate becomes absolute If the prior es-
tate falls by death of Harry without issue,
if she be In esse, and the situation Is the
same as if the devise over to her was abso-
lute, 80 her dilldren can only take by inher-
itance from her and not by purdiase under
the will, for there is no gift to her children
or legal representatives. By the death of
Kmma before the gift over to her took effect,
the object of such gift was not in existence,
and therefore It became impossible of per-
formance. In such case the prior estate
becomes absolute In the first 'devisee. In
Den V. Schenc^, 8 N. J. Law, 29, the testator
gave to bis son Ouysbert and his two dau^h-
ters each a parcel of land, with the proviso :
"^nat if any of my children should happen to
die without any issue nlive, that such share or
dividend shall be divided by the survivors of
tb^n."
Of tbe daughters, one died without issue,
and another, Hannah, died during the life-
time of Guysbert who subsequently died with-
out issue. Hannah left children, and after
tbe death of Guysbert, who had conveyed to
the defendant Schenck, Hannah's children
brought an ejectment suit based upon the
claim that their mother had an inheritable
estate which passed to ber heirs at the death
of Guysbert without Issue. The court held
that Guysbert took an estate In fee, subject
to defeasance upon the happening of two
events, death without issue, and the survival
of the sisters, and said:
"When his two sisters died it became impossi-
ble that the estate should be defeated by going
over to survivors when there were none; from
that time it became an absolute fee simple in
GUbert"
In that case it will be observed there were
children of Hannwh claiming by Inheritance
from ber, property she would have taken if
she bad survived Guysbert, he dying without
Issue.
The rule laid down In that case Is that
where there Is a gift over and it becomes Im-
possible of performance through the death of
its object, nothing more being present, the
estate ot the first taker becomes absolute.
The statute making an estate absolute where
the words "heirs and assigns" are omitted,
and where there is no expression in the will
whereby it shall appear that It was Intend-
ed to convey only a life estate, as It now
appears In our statute relating to wills (sec-
tion 36), was then in force, it having been
passed August 26, 1784, and was not in Den
V. Schenck, supra, considered as vesting an
inheritable estate in executory devisees if
they did not survive the first taker. That
case was decided in 1824, and has been uni-
formly recognized by our courts as establish-
ed In this state the legal rule that where
there is a gift to one, and then over to anoth-
er if the first taker dies without issue, the
executory devisee must be alive to take at
the termination of tbe prior estate, and In
default of the existence of the object of the
gift over, the prior estate becomes absolute.
Groves V. Ck>x, 40 N. J. Law, 40, 45. This
rule was adopted and applied by Chancellor
Runyon In Drummond's Executor v. Drum-
mond, 26 N. J. Eq. 234, where the gift was
to testator's adopted daughter "when she ar-
rives at full age," and if she should die with-
out leaving lawful issue, then to his nephew.
The daughter lived to come of age, and the
nephew predeceased the testator. The chil-
dren of the nephew claimed that the daugh-
ter only took an estate defeasible in thu
event of ber death without issue at any time,
and If that happened they would be entitled
as next of kin of their deceased father, but
the chancellor held that by the death of the
nephew the estate of the daughter became
absolute, saying:
"The provision made in the contingency of
her dying without leaving lawful issue was
made e.xpres.sl7 for another object of his bounty
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101 ATI-ANTIC REPORTER
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whom he desired and intended to benefit in that
event. That object bad ceased to exist, and the
l>rovision, therefore, was at an end, and the
primary gift was left wholly unaffected by it.
The testator did not provide that Jane should
have a life estate merely, and that, after her
death the property should go to her children, if
she Bhould leave any. but he ifiTes the property
to hor without qualification m the girt. The
principle of the rule that, where there is an es-
tate in fee liable to be defeated on a condition
subsequent, and that condition originally was,
or by matters subsequent has become, impossi-
ble to be performed, the defeasible estate ia
made absolute (Co. Litt 20Ca), applies to this
case, for the estate was made liable to be de-
feated by a gift over, which could never, by pos-
sibility, take effect, and the primary gift, there-
fore, is the same as if there were no provision
f^r its defeasance."
The trial court refused to apply this case
because the nephew died In the lifetime of
the testator, apparently overlooking the dec-
laration of the chancellor that the rule ap-
plied when the condition "originally was, or
by matters subsequent," became Impossible of
performance. The court below also refused
to apply Den ▼. Schenck, supra, upon the
ground that the gift over was to survivors of
testator's children, and that In the will now
under consideration there is nothing to In-
dicate an Intention that the share of his son
Harry should go to his sister Emma only In
the event that she should survive blm, but
this begs the question for it assumes that
under a proper construction of this will, Em-
ma took an Indefeasible estate after the
death at any time of Harry even If she did
not survive him, which is the very matter in
dispute. Nor is there any force in the no-
tion expressed by the trial court that there Is
a distinction l)eween an executory bequest to
the survivors of a class of devisees, and one
to a single devisee, because the word "surviv-
ors" when so used merely describes the ob-
ject or objects who are to take the gift over
because in existence when the prior devise
falls, which may be one or more persons.
As the court below relies to some extent upon
the case of Seddel v. Wills, 20 N. J. Law, 223,
and quotes at some length from It to sustain
Its conclusion that although Emma died be-
fore her brother Harry the estate given her
vested In her heirs or devisees, if Harry
thereafter died without leaving issue, a short
analysis of that case seems to be required.
The facts in that case, pertinent to the
present occasion, are these: The testator had
three sons and six daughters and one grand-
child, and devised to each of his sons and
daughters a specific tract of land, and to his
sraiiddaughter a money legacy. He then pro-
vided that if either of his children should
die without lawful issue, the land devised to
them should be equally divided between bis
surviving children. Two of the daughters
died without leaving issue, the three sous
died leaving issue, two of them before both of
their sisters and the other after the death
of one, and before the death of the other
sister, another daughter died after her two
sisters, leaving issue, and the three other
daughters and the granddaughter named in
the will were still alive.
Chief Justice Homblower, in determining
the respective interests of the. granddaughter
named in the will and of testator's other
grandchildren, the issue of his three sons,
states two possible constructions of the will
depending upon whether the devise over was
to all his other children or only to such of
theiu as should actually survive the one dy-
ing %vithout issue, and then said:
"Upon the supposition that the devise over
was to all his other children then, immediately
upon testator's death, they each become seized
of or entitled to an executory devise in fee in
each other's lands subject to be defeated *upon
the others leaving issue at the time - of their
death ; and consequently if one died leaving is-
sue after the testator, but before the death of a
brother or sister without issue, the issue of the
one so first dying would take a share of the
land of the one dying without issue j not as
devisees of the testator, nor yet as heirs of the
one dying without issue, but as heirs at law of
his or her deceased father or mother, although
such deceased father or mother did not die
seized of the land in possession, but seized only
of the executory interest or estate."
It is upon this citation that the trial court
rested its decision, but Chief Justice Hom-
blower did not construe "My surviving sons
and daughters" to mean all his other chil-
dren, for following the statement above quot-
ed which applied to "the supposition that the
devise over was to all his other children" he
said:
"I was at first inclined to adopt this view of
the case; but upon further reflection, and upon
looking at the whole scope and tenor of this
will I think it is not necessary to deitart from
the plain common sense and grammatical mean-
ing of the language of the testator. There is
nothing in the will to indicate any intention in
tlie testator that the children of a deceased
child, whether dying before or after him. should
stand in loco parentis; nor any necestdty to
adopt such a construction for the purpose of
effectuating any manifest intention of the tes-
tator, or satisfying the rules of the law. On the
contrary, the peculiarity of the devise to tho
three sons, and the limitation over only of what
he devised to Samuel and Thomas, and the sub-
stitution of a mere legacy to his granddaughter
Rebecca, in the place of the real estate which
the testator originally intended to give to her
mother, show that the grandchildren were not
viewed, or thought of by him as immediate ob-
jects of his bounty in respect of his real estate."
And he determined that upon the death of
the two daughters without issue, the land
devised to tliem belonged by force of the will
"to the brothers and sisters then actually
living, to the exclusion of the children of the
deceased brothers and sisters, and of the tes-
tator's granddaughter Rebecca," and that the
surviving brothers and sistera took their re-
spective shares in fee simple and not con-
tingent upon any future event. As one of tbe
daughters survived her sister who died with-
out Issue, it was held that she, surviving her
sister, became entitled to her share of tho
deceased sister's land in fee simple. It thus
appears that the construction relied upon by
the trial court was not adopted by the Chief
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PARKVIEW BtaitDINa & LOAK ASS'K ▼. ROSE
287
Justice in dealing with a condition similar to
the one In this case, and the result which he
reached affirmed the principle laid down by
the court in Den t. Schenck, supra.
Tho result of the views above expressed is
that the defendant's death without Issue is
referable to his death in the lifetime of the
life tenant, and if he survived her his title
became absolute, and also that the gift over
fiilled by the death of Emma, in the lifetime
of her brother Hariy, because the object of
the gift over, being removed, the executory
devUe becnme impossible of performance, and
the prior state became absolute, and In either
event the defendant became seized of an In-
defeasible estate, and therefore there was no
breach of the covenant, contained In his deed
to the plaintiff, that he was seized of a fee-
simple estate.
This requires a reversal of the Judgment
ander review and the awarding of a venire
de novo, and it Is so ordered.
(90 N. J. Law. 618)
COLLINS V. CENTRAL K. C50. OF NEW
JERSEY.
(Court of Errors and Appeals of New Jersey.
June 18, 1917.)
(SyUalut if the Court.)
1. Kaiiaoads <S=>282(13) — Stations — Ikvi-
TEE8 — ACTZONS — InSTBUCTIONS.
In a case where the defendant was charged
with negligence because of defective premises,
an instmction to a jury "that, if the defendant
company had at any time before the accident
either knowledge or notice of a dangerous con-
dition of its premises, it would have been neg-
ligence on the part of the company not to have
remedied this condition," is erroneous, because
the defendant is entitled to a reascmable time
to inspect, discover, and repair such defect.
"At any time before the accident" includes im-
. mediately prior.
lE<d. Note.— For other cases, see Railroads,
Cent Dig. i 921.]
2. TBIAL 0S3296(13)— iNSTBUCnONS— Erbons-
01TS IRSTBVCTIONS.
An erroneous instruction is not cured by a
subsequent correct one, unless the illegal one is
■withdrawn.
[lOd. Note.— For other cases, see Trial, Cent
Dig. i 718.]
Appeal from Supreme Court
Action by Andrew J. Collins against the
Central Railroad Company of New Jersey.
From a Judgment for plaintiff, defendant ap-
peals. Reversed.
Cliarles B. Miller, of Jersey City, for ap-
pellant C. Herbert Walker, of Newark, for
appellee.
BERGEN, J. £1] The plaintiff was law-
fully in the freight station of defendant at
Xewark, N. J., for the purpose of moving
some bags of manure. After he had taken
one and was returning for another, an iron
radiator fell on him and Inflicted injuries
for which he brings this action.
It is not necessary to determine whether
any negligence of defendant was shown, be-
cause this Judgment must be reversed for er-
ror in the charge of the conrt which was as
follows :
"If the defendant company had at any time
before the accident either knowledge or notice
of a dangerous condition of its premises, it
would have been negligence on the part of tlie
company not to have remedied this condition."
"At any time before the accident" Includes
immediately before, and under our cases de-
fendant was entitled to a reasonable time
within which to inspect discover, and repair
the defective condition if it existed. Schnat-
terer v. Bamberger & Co., 81 N. J. Law, 658,
79 Atl. 324, 34 L. R. A. <N. S.) 1077, Ann.
Cas. 1912D, 139. All that is required is rea-
sonable care and ordinary prudence. Ruane
V. Erie Railroad Co., 83 N. J. Law, 423, 85
Atl. 178.
[2] The fact that the court subsequently
charged the correct rule. If he did as is claim-
ed, does not cure the trouble, for, as Mr. Jus-
tice Parker said in State v. Tapack, 78 N. J.
Law, 208, 72 AU. 962 :
"The rule is well settled that nn erroneous
instruction followed or accompanied by a cor-
rect one is not cured by the latter unless it is
also expressly withdrawn, as the jury is left
at liberty to adopt either."
The Judgment is reversed.
(90 N. J. Law, 614)
PARKVIEW BUILDING & LOAN ASS'N
OF CITY OP NEWARK v. ROSR
(Court of Errors and Appeals of (New Jersey.
June 18, 1917.)
(Syllahut by th« Court.)
1. BuiLuiNO ANu Loan Associations $=>
23(5)— Officebs — ^Wbonoful Acts— Loss as
Between Two Innocent Parties— Neoli-
OBNCB.
Where a building and loan association
draws a check to pay nutured shares on ac-
count of which a loan has been made and a
note taken, expecting the shareholder to pay the
note at the time of delivery of the check for
the shares, and both note and check are placed
in a safe to which the secretary of the associa-
tion has lawful access, he being the principal
o£Bcer transacting the financial business between
the association and its shareholders, and au-
thorized to receive all moneys paid to the as-
sociation, and he, without express authority,
takes the note and check from the safe, deliv-
ers the check to the shareholder, collects the
money due on the note, surrenders it, and em-
bezdea the money, the loss must, as between
two innocent parties, fall on the one whose neg-
ligence made the fraud possible.
2. BUILDINO AND LoAN ASSOCIATIONS «=»
41(8) — Loss AS Between Two Innocent
Parties — Neqlioence.
Whether the circumstances in soch a case
amount to negligence is a jury question, and a
directed verdict is error.
The Chancellor and Black, Williams. Taylor,
and Gardner, 33., dissenting.
Appeal from Circuit Court, Essex Ounty.
Action by the Parkview Building & Loan
Association of the City of Newark against
»For aU>«r uias see eaice toplo and KBY-NUMBER is all Key-Numbered Ulgesu and ludexei
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101 ATLANTIC UEPOUTEB
(N.J.
Edwin E. Rose. Judgment for plaintiff on a
directed verdict, and defendant appeals. Re-
versed, and new trial awarded.
PbUlp J. Schotland, of Newark, tor ap-
pellant Rlker & Riker, of Newark, for ap-
pellee.
BERGEN, J. This Is an appeal from a
Judgment entered upon a verdict directed for
the plaintiff, and the question to be decided
Is: Was such a direction warranted?
The facts are not In serious dispute. The
plaintiff was an incorporated building and
loan association of which defendant was a
shareholder and from which he borrowed
$1,800 and gave his promissory note. When
his shares matured they were worth $2,000,
and George Brown, Jr., plaintiff's secretary,
notified defendant that the plaintiff would
pay him the $2,000, and that he should draw
a (Aeck to Brown's order for the amount due
on the note. This defendant did, and the
note and certificate of shares was delivered
to the defendant Brown cashed the check
and embezzled the money, and plaintiff
brought this suit to recover the sum due on
the note, in which action the court directed
a verdict for the plaintiff. The constitution
of the plaintiff association provides that the
secretary "shall receive all moneys paid to
the association and pay the same to the treas-
urer," and the evidence shows that the sec-
retary did receive nearly, if not all, the mon-
eys paid to the association for it. There was
also testimony from which it may be Inferred
that Brown, as secretary, was Intrusted with
most of the financial transactions between
the association and its members, the duties
•of the treasurer being confined to the receipt
of moneys from the secretary and their dis-
bursement; that in the present case, when
on two occasions defendant borrowed money
and gave his notes, the delivery of the checks
and taking of the notes was done by Brown
with the treasurer's knowledge and consent;
and that in fact all of defendant's transac-
tions with the association were bad with
Brown.
[1] But the plaintiff claims that Brown
had no authority to deliver the note and ac-
cept the moneys due thereon ; that although
the uniform course of business of the plain-
tiff was to pay in full matured shares, and to
be paid in full by a borrower the debt due,
when shares were pledged for a loan, the
secretary had no power to make settlements
of this kind, as that was always done by the
treasurer, and in accordance with that prac-
tice the check in this case was drawn for
$2,000, and placed in the safe of the plain-
tiff with defendant's note to be delivered
when defendant notified the treasurer of his
desire to settle, when the latter would at-
tend at his ofiSce for that purpose, but there
is no proof tliat defendant had knowledge of
this. It is admitted that Brown had lawful
access to the safe, in common with the other
officers, and there is proof that be was thus
afforded an opportunity to do Just what he
did, take the note, deliver it to defendant,
and collect the amount due. Diat be ac-
cepted a cbedc instead of cash is of no con-
sequence; for he could as readily embezzle
the proceeds of the check as the cash.
We are of opinion that it was a Jury ques-
tion whether the plaintiff was not negl^eut
in putting the check and note witibin the
reach of Brown, the one officer with whom
most if not all, the financial transactions
between the plaintiff and this defendant were
carried on, and also whether the course of
conduct pursued or acquiesced in by the
plaintiff in permitting Brown to so act was
not a holding out of him as the financial
agent of plaintiff with whom the defendant
might safely deal. Brown collected all dues;
he negotiated the loans with the defendant,
first one for $600, and delivered the check
and took the note, and when the second loan
was made increasing the total to $1,800, he
delivered the check and took the note for
$1,800. Prom the evidence a Jury might in-
fer that when the note for $1,800 was deliv-
ered to Brown to be given to the association
it was received by him as agent of the plain-
tiff; that Brown, through the negligence of
the plaintiff, came into possession of the
check and note; that be bad always collect-
ed the interest on the loan and acted as
the agent of the plaintiff in Its ordinary
financial dealings with shareholders; that
he came to defendant with the check, note,
and shares in his possession, apparently au-
thorized to make the settlement and deliv-
ered them, collecting the amount due on the
note; and that the possession by Brown
of the necessary papers and the former
course of the association in permitting Brown
to make the loans misled the defendant into
paying his note to him.
In this case one of two innocent parties
must suffer, and if the Jury should find from
the above facts that one was negligent the
loss must be snstalned by the one whose
conduct has made the fraud possible. Law-
son V. Carson, 60 N. J. Eq. 370. 25 Atl. 191.
[2] Where one through negligence gives an-
other power to practice a fraud upon inno-
cent parties, the court will not interfere in
his protection at the expense of the one who
has been deceived.
"What circumstances shall be" deemed to be
"sufficient to establish negligence • • •
must be determined as a question of fact"
TIeyder v. Excelsior B. & L. Ass'n, 42 N. J.
Eq. 40S, 8 Ad. 310, 59 Am. Rep. 49.
A Jury might also find that by its course in
conducting its business the association had
impliedly authorized Brown, as its secretary,
by whom all moneys paid to the association
must be received according to the terms of its
constitution, to surrender the note and col-
lect the amount due.
Questions for a Jury to determine being
present, the direction for plaintiff was error.
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CARSON V. SOULLT
289
Tbe Judgment under review will be re-
versed, and a new trial awarded.
THE CHANCELLOK, and BLACK, WIL-
LIAMS, TAYLOR, and GARDNER, JJ., dis-
sent
(90 N. J. Law. 286}
CAKSOM T. SGULLX et aL
(Middlesex County Recount Case.)
(Court of Errors and Appeals of New Jersey.)
The judges being equally divided on the ques-
tion whether the judgment should be reversed,
the judgment is affirmed solely because of such
division, which renders any opinion by the court
impossible.
On Appeal from the Supreme Court, whose
(Vini(m Is reported at 99 Atl. 199.
(FUed July 3, 1917.)
WALKER, Ch. My vote to reverse the
Jadgment of the Supreme Court in this case
Is based solely upon the view that the Legis-
lature has not provided any machinery for
carrying on a recount of votes cast for candi-
dates for Congress, although. I find In the
statute a declaration of intention that re-
counts shall extend to congressional elec-
tions. The learned justice who wrote tue
opinion In tbe court below states tbe case
when he says:
"The insistence of counsel for the prosecutor
is that the l^slative intent was to confine the
provisions of this section [159 of the act con-
cerning elections] to candidates for election,
such as state senators, members of assembly,
surrogates, and other county and municipal of-
ficers, who, if elected, are, under the statute,
entitled to receive their certificates of election
from the county board of canvassers. And in
furtherance of iaia view it is strenuously argued
that the, clear legislative design to exclude can-
didates at an election for Governor, United
States Senator, members of Congress, and presi-
dential electors, whose election under the statute
is to be determined by die state board of can-
vassers, is made manifest by the provisions
of sections 160 and 161 relative to the recount
of votes, and section 164 relative to contested
dectioDs for county oCBces," etc.
I agree with the view held by the learned
Justice that the statute (P. L. 1898, p. 237,
i 159; Comp. Stat p. 2073; P. L. 1909, p.
41) evinces an Intent to give to any candi-
date at any election, who shall have reason
to believe that &A error has been made in
counting or declaring the vote of such elec-
tion, whereby the result has been changed,
the right to a recount and to this extent
disagree with the contention of counsel that
the section evinces a legislative intent to con-
fine the provisions to candidates for the of-
fices named; but, as I find in the act no ma-
chinery provided for carrying on, ascertain-
ing, or certifying the result of a recount of
votes cast In congressional elections, I am
constrained to the view that no such recount
can be had, not that It was not the Intention
of the Legislature to give it
There was a time in the liistory of our
101 A.— 10
state when no recount of votes cast at any
election .could be had (except as an Incident
to proceedings in a contested election before
a body authorized to inquire Into and decide
such a question, as the House of Representa-
tives, which is the sole judge of the electi&a
and quallflcatlon of its members, and the Su-
preme Court on quo warranto, where the
right to office was being inquired Into). In
fact, we had no statute authorizing a recount
of votes until as late as 1880. See the sup-
plement to "An act to regulate elections."
P. L. 1880, p. 229; Rev. Supp. p. 277; Gen.
Stat p. 1327, i 195. And this extended only
to candidates for member of tbe state senate
or assembly.
By a supplement to the elections act (P. L.
1895, p. 659, i 13; Gen. Stat p. 1367, § 369)
it was provided that if any candidate for
any office shall pray a recount of the whole
or any part of the vote, by petition to one of
the Justices of the Supreme Court and shall
deposit such sum as the Justice shall order as
security for the payment of expenses, it
shall be tbe duty of the justice to order such
recount by the county board of elections un-
der such supervision as he may order, etc.,
and on the conclusion thereof shall certify
the result which certificate shall take the
place of that originally Issued by the con-
vasslng board. The present statute wltb ref-
erence to recount of votes Is to be found in
"An act regulating elections" (Revision of
1898; Comp. Stat 2073, { 159; P. L. 1900, p.
41 et seq.), and provides that whenever any
candidate at any election shall have reason
to believe that an error has been made by any
board of elections or of canvassers In count-
ing or declaring the vote of such election,
whereby the result has been changed, such
candidate may apply to any Justice of the
Supreme Court who shall be authorized to
cause, upon such terms as he may deem prop-
er, a recount of the whole or such part of
the votes as he may determine to be public-
ly made under his direction by the county
board of elections, and if it shall an>ear,
upon such recount that an error has been
made sufficient to change the result of such
election, then such justice, in case of candi-
dates, shall revoke the certlflcatc of election
Issued to any person, and shall issue in Its
place another certificate in favor of the
party who shall be found to have received a
majority of the votes cast at such electlof
(section 159) ; that whenever any such certifi-
cate shaU be issued by such justice, the same
shall be filed with the clerk of the county or
municipality in and for which such election
was held, and the clerk shall make and cer-
tify a copy thereof and deliver it to the per-
son who shall be so declared elected, and in
case of an election for senator, assemblyman,
or any county officer, shall transmit to the
secretary of state another copy of such cer-
tificate (section 160); that any applicant for
such recount shall deposit with the count;
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101 ATLANTIC REPORTESR
(N.J.
clerk such sum as the Justice shall order as
security for the payment of the expenses of
the recount, or, If such Justice shall order,
shall file with the county clerk a bond to the
Incumbent, to be approTed by the Justice, In
such sum as he may require, conditioned to
pay all costs and expenses In case the origi-
nal count be confirmed or the result of such
recount Is not suCBdent to change the result,
and U an error sufficient to change the result
has been made, the expenses shall be paid by
the county or municipality In and for which
such election was held (section 161).
It wlU be observed that section 13 of the
act of 1895 and secUon 159 of the act of 1898,
as amended by P. L. 1909, p. 41, omit mention
of the offices, candidates for which may ap-
ply for a recount, while the act of 1880 ex-
pressly confined recounts to elections for
state senators and assemblymen. Assuming
that the recount provisions of the act of 1895
are as broad as those of the acts of 1898 and
1909, it would be quite useless to analyze
them, as It Is the latest statute with which we
have to deal in the case at bar. That stat-
ute (P. Li. 1909, p. 41), which is a supplement
to the election act (Revision of 1898), purports
to amend section 159 of the act of 1898 "to
read as follows," and then goes on to re-
enact section 159 verbatim et literatim, and
adds another section (section 2), which enacts
that the provisions in section 159 relating to
recount of votes upon any referendum or
question submitted to the electors shall ap-
ply to those submitted at the last general
election (1906), if applied for within 30 days
after the passage of that act (1909), the time
of ai^lication for which, under the provision
of section 159, had expired. Therefore the
statute stands Just the same, with reference
to the recount of votes cast for candidates at
elections, as though the amendment of 1909
had not been passed.
The provision in section 159 that, "if it
shall appear upon such recount that an er-
ror has been made sufficient to change the
result of such election," the Justice shall re-
voke the certificates of election already is-
sued, etc., does not come in aid of the conten-
tion of the appellant to the slightest extent,
because the word "certificates" has reference
to the word "candidates"; the whole clause
reading:
"And, if it shall appear upon such recount
that an error has been made sufficient to ohauge
the result of such election, then such justice
in case of candidates shall revoke the certificates
of election * * * issued to anj/ person, and
shall issue in its place another certificate in
favor of the party who shall be found to have
received the majority of the votes cast at such
election."
The provision that in the case of candi-
dates the certificates shall be revoked clearly
comprehends the case of recounts for more
than one candidate at the same time, as, for
Instance, a recount before a county board of
tnnvassers of the votes cast at an election for
surrogate of the county, and of mayor — or,
say, alderman— of a dty wltliln the county,
and yet the act goes on and provtues that,
after the certificates shall be revoked, the
Justice shall Issue In its place another certifi-
cate in favor of the party who shall be found
to have received the majority of the votes
cast at the election, although certificates may
have to De issued to persons, as suggested.
This alternate use of nouns in the singular
and plural numbers, when either one or the
other only should be employed, while nn-
grammatlcal, does not in any wise vitiate the
section; bat, on the contrary, because the
plural noun is thus employed, It cannot be
laid hold of as an argument for the conten-
tion that the votes of three counties, com-
prising a Congress district, may be oruered
recounted, because a Justice of the Supreme
Court may make superseding certificates a.s
well as certificate, because, as stated, the noun
"certificates" Is used only In reference to
candidates, comprehending, plainly, one cer-
tificate for each candidate obtaining a majori-
ty on a recount ; and this, quite aside from the
fact that congressmen get no certificates from
county Awards, but only one certificate from
the state board of canvassers.
The popular and generally accepted mean-
ing of language is to be applied to the con-
struction of a statute, in the absence of a
legislative intent to the contrary. Gonover
V. Pub. Serv. Ry. Co., 80 N. J. Law, 681, 7S
Atl. 187. The word "any" means "one out
of many • • • and is given the full
force of 'every' or 'all.'" Bouv. Law Die.
(Rawle's Rev.). In Purdy v. People (N. X.
Court of Errors) 4 Hill, 384, Scott, Senator.
In his opinion, at page 413, observes :
"Johnson says the word 'every' means each
one of all, and gives this example : 'AH the con-
gregation are holy, every one of them. Num-
bers.' The same lexicographer defines 'any* to.
mean every, and says: 'It is, in all its senses,'
applied indifferently to persons or things.' "
Now, it must be perfectly obvious that
when the Legislature, in section 159 of the
present act concerning elections, said tliat
any candidate for any office might have a re-
count, etc.. It meant what It said. The words
define themselves, and there is no room for
construing them contrary to their plain and
ordinary meaning. I start, therefore, with
the proposition that the Legislature meant
to give a recount to a candidate in a con-
gressional election. But It must be equally
obvious that a recount cannot be carried on
without machinery provided for that pur-
pose. And the act of 1898, as we have seen,
provides that machinery, but restricts its
operation to a recount for county or munici-
pal offices, for the recount is to be had btf
the county toari of canvassers and the
certificate of the result is to be Hied with
the clerk of the county or municipalitjf in
and for which the election was held, and
the expenses, if aa error be made sufficient
to change the result, are to be paid by the
county or municipality in and for which the
election teas held.
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CARSON V. SCULLY
291
Now, an election for congressman is not
held In and for a county or municipality,
but In and for a "district" created by the
Legislature, and these districts have no
clerks, and no certificates of election are
^ven congressmen-elect by any oflElcers of
their respective congressional districts; in
fact, there are no such district officers.
The present act (P. L. 1912, p. 912) divides
the state into 12 Congress districts, the one
in question being composed of the counties
of Middlesex, Monmouth, and Ocean, called
in the act the "Third district." Admittedly,
a single county could be constituted a dis-
trict, but none is in the act mentioned, and,
what Is more to the purpose, several counties
are subdivided In creating districts, notably
the Sixth, which Is composed of the coimties
of Bergen, Sussex, and Warren and the
townships of Pompton and West Mllford in
the county of Passaic.
If the decision of the court below is right,
then a recount of votes cast in a gubernatori-
al election can be bad on the application
of an unsuQcessful candidate. This re-
coimt would have to be made upon an or*
der of a Justice of the Supreme Court, under
his direction, "by the county board of elec-
tions," after due notice, etc. If made, the
"county board" would have to swell into 21
dlfTerent county boards of election, and "the
clerk of the county or municipality in and
for which such election was held" would
have to be multiplied by the total number of
county clerks in the state, and all this with-
out any legislative provision made therefor.
The analogy in the case of votes cast in a
Congress district is entirely apposite to that
of an election for Governor. Furthermore,
if the result were changed, how would the
expenses be paid? That act (section 161)
provides, as already noticed, that the ap-
plicant for a recount —
"shall deposit with the county clerk such sum
as such Justice shall order as security for the
payment • • • of such recount, or if such
justice shall so order, shall file with the county
clerk a bond to the incumbent • • * and if
it shall appear that an error sufficient to change
the result has been made, then the expenses of
such recount shall be paid by the county or mu-
nicipality in and for which such election was
hekr
As an election for Governor is not held
in and for a county or municipality, but for
tlie whole state, it would be entirely imprac-
ticable to order the expenses paid in a gu-
bematorial contest, where the result had
been changed by a recount, under the provi-
sions for payment found in the statute,
namely, by the county or municipality in and
for which the election was held, because an
election for Governor is held neither for a
county nor municipality, but in every voting
precinct in the state, and, it may be said, for
the whole state, but not for any county or
municipality of the state. Payment of the
expenses of a congressional recount by the
Iiolltical subdivisions oomprlslng the dis-
trict—counties and munlcti>alltles, «18 the
case might be — ^where tlie result had been
changed, in my Judgment, could only be
made by court action transcending construc-
tion, and amounting to Judicial legislation, a
tiling forbidden. Whether, in case the re-
sult should not be changed, the money de-
posited could be laid hold of for payment, or
the bond enforced for that purpose, as a vol-
untary obligation (see Emanuel v. McNeil, 87
N. J. Law, 499, 94 Atl. 616), need not be
considered.
The scheme of a Congress district recount
is not workable under the provisions of the
act I do not say that such a scheme could
not be made workable by legislation. On
the contrary, it is plain that it could. Ample
provisions are made in the act concerning
elections for contests for (Jovemor and for
members of the Legislature and Congress.
The Ninth Congress district is composed of
the cities of East Orange and Orange, and
certain wards of the dty of Newark, all in
the county of Essex. If an election recount
were held in this district, the certificate of
the Justice of the Supreme Court might phys-
ically be filed with the city clerks of the
Oranges, but could not be filed with the
clerks of the several wards of Newark, as
there are no ward clerks.
The modus operandi of canvassing the
votes cast at elections is shortly as follows:
The county board of elections in each coun-
ty is constituted the board of county can-
vassers. Section 102. The members of the
county board proceed to examine the state-
ments and copies of statements of elections
which shall be produced before them, and
canvass and determine the votes cast at the
election, and make two statements of the
result containing the number of votes given
in each election district for any office to
be filled. Section 10& Such boards deliver
one of the statements, in case of an elec-
tion held for members of the House of Rep-
resentatives, or for electors of President and
Vice President, or for Governor or Senator,
members of assembly or any county officers,
to the secretary of state. Section 110. In
case of an election for one or more members
of the House of Representatives, or electors
of President or Vice President, or for Govern-
or, the secretary of state lays before the board
of state canvassers two such statements.
Section 118. The Governor and four or
more of the members of the senate attend
at Trenton, on a certain date, for the pur-
pose of canvassing and estimating the votes
cast for each person for whom votes have
been given for members of the House of
Representatives, or electors of President or
Vice President, ot Governor, and determine
and declare the person or persons who shall,
by the greatest number of votes, have been
duly elected to such office or offices. Section
119. The board proceeds to make a state-
ment of the result of such election, which is
delivered to the secretary of state and filed
by him. Section 128. And the secretary of
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101 ATLANTIC UEPORTTCR
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state makes as many copies of the statement
of the determination of such board as there
are persons thereby declared to be elected
and delivers one of the same to each person
who shall be so elected. Section 127.
By this summary of the election machin-
ery, It win be seen that no certificates of
election Issue to congressmen-elect by county
boards of canvassers, who merely make a
certificate of the result of election for con-
gressmen as It appears returned In the sev-
eral election districts, and send that certif-
icate to the secretary of state, who lays It
before the state board of canvassers, who
make a determination as to who Is elected
to Congress In any given district There is
no provision in the statute for any revoca-
tion by a Justice of the Supreme Court of
any certificate made by the state board of
canvassers. As the certificates of election
of congressmen emanate^ not from county
boards of canvassers, but from the state
board, how can Interference with the work
of a county board affect the holder of a cer-
tificate from the state board?
Because there is no practical method of
recounting the vote in a Congress district,
an apparently unsuccessful candidate is not
thereby deprived of the right to show that
he, and not his rival, as certified, was elect-
ed; for, as already remarked, the House of
Bepresentatlves Is the judge of the election
of its members, and our statute provides an
ample method of contesting the election of
members of Congress. Section 163 et seq.
My view is that, while the Legislature In the
revision of the election law of 1898 Intend-
ed to provide for a recount to any unsuc-
cessful candidate for any office at any elec-
tion, upon proper showing made, which would
Include Congress districts. It failed to pro-
vide the method whereby lawfully, step by
step, the proceeding could be effectively car-
ried on and a definite result obtained and
certified.
Sir William Blackstone, treating of the
constructions of statutes, says:
"Acts of Parliament that are impossible to be
performed are of no validity." 1 BL Cbm. p.
The doctrine thus expounded by the learn-
ed commentator is, by parity of reasoning,
equally applicable to a part of an act which
it impossible of performance, as well as to
an entire act that cannot be put into opera-
tion. It has been held in this state that
parts of acts which are unconstitutional are
to be excised to the extent to which they
are Invalid and the rest of the act upheld,
If the parts are wholly independent of each
other. State v. Davis, 72 N. J. Law, 345, 61
Atl. 2, and cases cited, affirmed 73 N. J. Law,
680, 64 Atl. 1134. See, also, Meeban T. Ex-
cise Com'rs, 73 N. J. Law, 382, 388, 64 AU.
689. It must be perfectly obvious that a
provision in a statute for a recount of votes
cast for a state senator is entirely independ-
ent of one for a recount in a congressional
election, and that. If the latter be Invalid or
unenforceable, the former shall, nevertheless,
stand. In Commonwealth v. Gouger, 21 Pa.
Super. Ct 217, it was held, at page 229:
"In the construction of statutes it may some-
times become necessary to transpose wordi,
or even to supply or strike out a word which
the context shows was omitted or inserted by
mistake. Instances are not lacking in the
Reports where this has been done in order
to effectuate the intention of the Legislature.
But where an enactment is plain and sensible,
and, according to any meaning, broad or nar-
row, * • • does not apply to the case in
hand, it ia not i>ermissible for the courts to add
or omit words, in order to make it so apply,
even though it may be clear to them that the
case is as fully within tho mischief to be rem-
edied as the cases provided for. TOiis would
be, not to construe, but to ammid, the law,
which is within the exclusive province of the
Legislature. • • • When a court has gone to
the verge of its powers of construction, there
will sometimes remain what is termed a casus
omissus — a case within the mischief to be rem-
edied, and possibly within the general Intent of
the Legislature as disclosed by the act, and
yet not provided for therein. In such case the
Legislature alone can cure the defect."
The doctrine laid down in Commonwealtli
V. Gouger Is entirely apposite. I think it
clear, as I have said, that the recount provi-
sion of the election law is intended to apply
to the case of a congressional election. A.
miscount in an election for congressmen is
fully as mischievous and equally entitled to
be remedied as a miscount in the case of
county or municipal officers; but the enact-
ment is so plain in providing the method for
recounting votes cast for county and munici-
pal candidates, and ascertaining and certify-
ing the result, and so plainly fails to provide
any such machinery in the case of candidates
for Congress, that it is not permissible for
the courts to add or omit words in order to
made the act apply to the class of candidates
excluded. And, by the way, how do candi-
dates for county and municipal offices de-
rive their right to a recount? It is not be-
cause they are named in section 158. Yet
nobody will deny that they have the right.
It la derived from the language "any candi-
date at any election." If this language ap-
plies to the case of a surrogate of a county
and to the mayor of a city, and certainly it
does, it equally applies to a congressman.
Therefore, I repeat again, that the office of
congressman is within the purview of section
159, which clearly intends to give a candi-
date for Congress, in given circumstances, a
recount: but, the act failing to provide a.
method for carrying on a recount and certi-
fying to its result in the case of a con-
gressional election, it is, to that extent, im-
possible of being performed.
The casus omissus in the statute nnder
consideration is the lack of provision of ma-
chinery for carrying on a recount in the case
of a contested election in a Congress district,
notwithstanding the act evinces a dear in-
tention to give a recount in such case as well
as In all others. The omission was doubtless
Inadvertently made, and probably came aboa^
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CARSON T. SCULLY
293
in tbls way: The act of t880, which gave a
recoont only to candidates for the state sen-
ate or assembly, provided for the recount
being made in the particular county, with the
superseding certificate. If one were Issned,
to be certified by the county clerk and deliv-
ered to the person fonnd to be elected; while
In the supplement of 1895 and the revision
of 1808 the language granting recounts and
restricting them to candidates for the senate
and assembly, found In the act of 1880, was
enlarged so as to apply to candidates for any
and all o£Bce8, but the machinery for re-
counts, certification of the result, etc., was
allowed practically to remain the same, and
was not correspondingly enlarged bo as to
apply to congressional elections, which, of
necessity, require other provisions for enabl-
ing a recount to be carried on, as an elec-
tion for congressman is not held in and for
a county or munldpality, and his certificate
emanates, not from a county board of can-
vassers, but from the state board of canvass-
ers, for the superseding of whose certificate
of election by a Justice of the Supreme Court
no provision is made in the statute.
It Is not an answer to say that one of the
Justices of the Supreme Court, upon petitions
preferred for that purpose, made three sev-
eral orders for a recount of the votes cast at
the last general election in the counties of
Middlesex, Monmouth, and Ocean respective-
ly, for member of the House of Representa-
tives of the United States, under his direc-
tion, by the county boards of election In those
counties respectively. Those orders were, in
my Judgment, unauthorized by the statute,
and should be held to be null and void.
The CHIEF JUSTICE, Justices 8WAYZB,
TBENCHARD, and MINTURN, and Judge
WILIJAMS have authorized me to say that
tbey concur in the views expressed In this
opinion.
(Filed March 5, 1917.)
WHITE, J. The question is: Do the re-
count provisions of the act concerning elec-
tions (2 Comp. Stat. p. 2125) apply to an elec-
tion of a congressman for the Third congres-
sional district, comprising the three counties
of Middlesex, Monmouth, and Ocean. The
language of the act provides for a recoxint —
"tohenevgr any candidate at any election shall
have reason to believe that an error has been
made by any board of elections or of canvatiert
in counting the vote or declaring the vote of
such election," etc.
It is urged that the court should modify
this language of the Legislature by, in effect,
reading Into it, after the word "candidate,"
tbe words "for state senator, member of as-
sembly, or county or municipal officer." It is
said this should be done because subsequent
provisions of the act provide for the issuing
of a certificate by the Supreme Court Justice
boldlng the recoxut In place of the certificates
Issued by the boards of canvassers, and as
tbere Is no certificate of election from the
county boards of canvassers in elections for
United States Senator, member of Congress,
presidential electors, or Governor of the
state, the act, It is urged, must be held not
to apply to tiiese officers. A further argu-
ment to the same effect is said to arise from
the fact that a subsequent section of the act
provides, with reference to the expense of
such recounts, that in case a recount shall
result in favor of the applicant the expense
shall be borne by tlie county or municipality
"in and for which such election was held,"
and that as elections for the officers atiove
mentioned are state-wide, or at least con-
gressional district-wide, this provision for the
county • or municipality bearing the expense
is Inappropriate, and therefore indicates that
the act does not apply to those elections.
These reasiHis, It may be remarked in-
cidentally, apply with equal force to the elec-
tion, say, of an alderman from a single ward
of the city of Newark or of a ward council-
man of any other municipality having ward
representation In Its governmental body. No
certificate Is issued to such alderman or
councilman by any board of canvassers, and
the election is not municipality-wide, nor
Is the expense, in case of a successful re-
count, confined to the ward where the elec-
tion and recount took place, but must be
borne by the municipality at large. No one,
however, suggests that the recount provi-
sions are not applicable to an election of such
an alderman or councilman. On the con-
trary, it is here conceded and urged that they
are so applicable.
I take It that these certificate and expense
provisions are not inconsistent with the wide
scope given the act by its express language,
"any candidate at any election," but that,
on the contrary, they rfmply provide the ma-
chinery to carry out that broad scope In
conformity with the political scheme adopted
by the state for holding elections. That
scheme, as I understand it, is that for the
purpose of holding elections there are two
divisions of the state, namely, municipal and
county. For all municipal officers the munic-
ipality is the political unit which holds the
elections. For all other elections In the state
the county is the political unit which holds
such elections. In the municipality, if the
election Is for mayor, or in commission-
governed cities for commissioners, the elec-
tion Is municipality-wide, and if the elec-
tion is for an alderman or a councilman from
a particular ward or subdivision the election
is not munldpallty-wide ; but in either case
the election is "held In and for the munic-
ipality" and ia at the tiwnMpality'* etepente.
although in one case It Is munlcipallty-wlde
and In the other it is not. The municipality
is the political unit in the electoral scheme of
the state for holding this class of elections. In
all other elections the county is the political
unit to hold the elections. Where a Governor
Is to be elected, although his office Is state-
wide and the election is by the voters of the
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101 ATLANTIC REPORTER
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entire state, tbe political nnlts that hold tbe
necessary elections are the counties, and each
county bears the cxpente of it* own election.
The election held In each county for the of-
lice of Governor of the state is In effect an
election *in and for that particular county,"
although the office Is state-wide and tbe re-
sult In the particular county does not In it-
self decide who Is elected to the state-wide
office. So with reference to a United States
Senator and presidential electors, and, sub-
stituting the congressional district for the
state, with reference to a congressnum.
This Tlew (which, like all others herein
expressed, is only advanced as tliat of an
Individual member of the court, and not as
that of the court itself, which ooort, of
coarse. In a case, as here, of a tie vote, does
not decide or express any view) supplies in
my Judgment a consistent working basis for
all of the provisions of the recount election
law. It removes the alleged inconsistency of
each county bearing Its own successful re-
count expense, although more than one coun-
ty is involved, and a liberal construction of
tbe certificate provisions (and all election
laws should be liberally construed in the
spirit of their enactment) would make the
Supreme Court justice's certificate a substi-
tute for the declarations of results by, or cer-
tificates of, election boards, as the case might
be, so as to make a reality of the express pro-
vision of tbe act that tbe Supreme Court Jus-
tice's certificate "should supersede all others
and entitle the holder thereof to the same
rights and privileges as If such certificates
had been originally issued by tbe canvassing
board." The change from the word "cer-
tiflcate" to its plural "certificates," also made
by tbe amending act of 1909 (the present
recount act) authorizing the Supreme Court
Justice holding a recount to revoke the
"oertiflcates" of election already issued to
any person, instead of to revoke the "certif'
icate" of election already Issued to any per-
son, as tbe law theretofore read, would seem
to accord with this view, and to contemplate
a revoking of all records of the result of the
election of whatsoever description, includ-
ing all certifications thereof, and the sub-
stituting therefor of the Supreme Court Jus-
tice's certificate, the same to have tbe eftect
Indicated by the above-quoted language.
I think, therefore, that there Is no sub-
stantial reason for, in effect, reading into tbe
act the words first above Indicated, thereby
changing the broad language "any candidate
at any election" into "any candidate for state
senator, member of assembly, or county or
municipal office." I think such a Judicial
reading into the statute of these words would
be particularly unjustifiable, In view of the
fact that the recount provision of our elec-
tion law as It was first emu-tod In 1880 did
contain a similar limitation in tbe words
"wherever any candidate at any election
in this state for member of the senate or of
tbe assembly," etc.. and that subsequently
that limitation was omitted in the present
act and the language was made to read:
"Whenever any candidate at any election,"
eta, Surely the Legislature In changing the
law with reference to reconnts from one ap-
plying only to "a candidate for state senatw
or member of the assembly" to "any candi-
date at any election," did something whldi
has a very significant bearing on what It
Is now suggested this court ought to read
into the act
Another Indication of the wide diange coo-
templated by the act of 1909 la found in the
new provision in tliat act with reference to
a recount in referendnms, in tbe following
language:
"Whenever any citizen shall hav« reason to
believe that an error has been made by ant
board _ of canvaasera in counting the vote or
declaring the result of any election upon any
referendum submitted to the electors^" etc.
But, even In the absence of such an his-
torical Indication of tbe legislative Intent,
the language of tbe present act is in my
Judgment plain and certain, and therefore
is not properly subject to Judicial constmc-
tlon Into anything other than what It says.
As above stated, I find no real conflicting
provisions In the act; but, if I did, I should
still think this language, "any candidate at
any election," too plain for constructive mod-
ification. "Where the purpose of the law-
makers la expressed in language so plain
as to make it unmistakable, it must be en-
forced by the courts as it is written without
regard to its wisdom, or its apparently un-
wise limitations." This is the language of
this court In Island Heights & Seaside Park
Bridge Co. v. Brooks A Brooks, 88 N. J. Jaw,
613, 97 Atl. 267, citing Douglass v. Freeholders
of Essex, 38 N. J. Law, 214. In tbe case
of Bullock T. Biggs, 78 N. J. Law, 63, 73 Atl.
60, this court notes with approval the ex-
act words of Chief Justice Beasley in Doug-
lass V. Freeholders of Essex, namely:
"Where that which is directed to be done is
within the sphere of legislation, and the terms
used clearly express the intent, all reasoning
derived from tbe suppoeed inconveuience, or even
absurdity, of tbe result is out of place.''
It is for the reasons above expressed that
I have recorded my vote for affirmance of the
decision of the Supreme Court upholding tbe
applicability of the recount provisions of tbe
election law to the congressional election here
involved.
I am requested by Justices GARRISON and
BLACK and Judges UEPPENHEIMER and
GARDNER to say that they unite In the
views herein expressed.
Theodore Strong and Alan H. Strong, botli
of New Brunswick, for appellant Thom-
as P. Fay, of Long Branch, and lindley M.
Garrison, of Jersey City, for respondents.
PER CURIAM. The Judgment under re-
view herein is affirmed by an equally di-
vided court
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m KB GliTXCEMAN'S WIIiL
295
For affirmance— OARRISON, BERGEX,
BLACK, WHITE, HEPPENHEIMEB, TAY-
LOR, and GARDNER, JJ.— 7.
For reversal— The CHANCELLOR, the
CHIEF JUSTICE, and SWAYZE, TRENCH-
ARD, PARKER, MINTURN, and WIL-
LIAMS, JJ.— 7.
CARSON y. SCULLY et aL
(MMUDonth Coanty Recount Caae.)
(Court of Errors and Appeals of New Jersey.)
Tbe JudgeB being equally divided on the que»-
tion whether the judgment should be reversed,
the judgment is affirmed solely because of sadi
division, wUdi renders any opmicHi by the court
impossible.
On Appeal from the Supreme Court, whose
opinion is reported at 99 Atl. 199.
Theodore Strong and Alan H. Strong, both of
New Brunswick, lor appeUast. Thomas P. Fay,
of Long Branch, and Lindley M. Garrison, of
Jersey City, for respondents.
PER CURIAM. The judgment under review
herein is afSrmed by an equally divided court.
For affirmance— GARRISON, BERGEN,
BLACK, WHITE, HEPPENHEIMER, TAY-
LOR, and GARDNER, JJ.— 7.
For reversal— The CHANCELLOR, the
CHIEF JUSTICE, and SWAVZE, TRENCH-
ARD, PARKER, MINTURN, and WIL-
LIAMS, JJ.— 7.
CARSON V. SCULLY et aL
(Ocean County Recount Case.)
(Court of Errors and Appeals of New Jersey.)
The judges being equally divided on the ques-
tion whether the judgment should be reversed,
the Judgment is affirmed solely because of such
divinon, which renders any opmion by the court
impossible.
On Appeal from the Supreme <3oort, whose
«q;>inion is reported at 99 Atl. 199.
Theodore Strong and Alan H. Strong, both
of New Brunswick, for appellant Thomas P.
Fay, of Long Branch, and Lindley M. Garrison,
of Jergey City, for respondents.
PER CURIAM. The judgment nnder review
herein is affirmed by an equally divided court.
For affirmance— GARRISON, BERGEN.
BLACIC, WHITE. HEPPENHEIMER, TAY-
LOR, and GARDNER, JJ.-7.
For reversal— The CHANCELLOR, the
CHIEF JUSTICE, and SWAYZE, TRENCH-
ABD, PARKER. MINTURN, and WIL-
LIAMS, JJ.-7.
(S7 N. J. m. «SS)
In re GLUCKMAITS WILU (No. 72.)
(Court of Errors and Appeals of New Jersey.
June 18, 1917.)
(SvUabu* hy the Court.)
1. Wn,t8 «=»206—Pbobatb— Right,
A win properly proved to have been execut-
ed with due legal formality by a testator whose
testamentary capacity is not questioned is enti-
tled to probate, in the absence of fraud, undue
influence, or mistalte in the identity of the docu-
ment executed.
[Ed. Note. — ^For other cases, see Wills, Cent.
tHg. iS 513, 514.)
2. WuJiS «=»289 — Pbobatx — Bdbdbr of
Proof— Knowlkdge of Contents.
Physical or educational disability, however,
as blindness or inability to read the language, if
accompanied by circumstances leading the court
to suspect possible imposition, subjects propo-
nents of a will to the additional burden of show-
ing to the satisfaction of the court that tes-
tator knew its contents so that he understood
them.
[Ed. Note.— For other cases, see Wills, Cent.
Dig. is esa-^i.]
S. Wnxa «=»302(3)— Pkobatb— Undbbstand-
iNG OF Contents — Sufticiknct of Evi-
DENCX.
This burden Is sustained by satisfactory
proof that the testator was made acquainted
with and understood the contents of the will to
the same extent that he would have done if the
disability had not existed and he had read the
will himself. The extent of the burden is meas-
ured by the effect of the disability.
[^d. Note. — ^For other cases, see Wills, Cent.
Dig. S 702.]
4. Wiixs <S=5>206 — Pbobate — Vabiancb Be-
tween WjIX AND iNSTKUCTIONa
In the absence of fraud or of undue influ-
ence, a variance between the will and the in-
stnictiong from which it was drawn will not
defe.it probate.
[Ed. Note.— For other cases, see Wills, Cent.
Dig. §§ 51.3, 514.)
5. Wills €=>152— Pbobate— Mistake.
In the absence of fraud or of undue influ-
ence, mistake, except in identity of the instru-
ment executed, will not defeat probate.
[Ed. Note.— For other cases, see Wills, Cent.
Dig. S{ 3(i9, 370.)
6. Wills €=»152— Probate— Misdndebstand-
INO of Legal Effect.
Misunderstanding of the legal effect of the
provisions of a will, whether resulting from er-
roneous legal advice or otherwise, will not, in
the absence of fraud or of undue influence, de-
feat probate.
[Ed. Note.— For other cases, see Wills, Cent.
Dig. §{ 369, 370.]
Appeal from Prerogative Court.
In the matter of the last will and testament
of Isaac Oluckman, deceased. I)^m a de-
cree of the Supreme Court (98 Atl. 831),
affirming a decree refusing probate, propo-
nents appeal. Reversed and matter remit-
ted to Prerogative Court for an order admit-
ting the win to probate.
This is an appeal from an order of the
Prerogative Court affirming an order of the
Hudson county orphans' court denvJng pro-
bate to a document offered as the last will
and testan\ent of I.'iaac Oluckman, late of the
city of Bayonne, decea.sed. Gluckman left
a widow, but no descendants. The will
in question was drawn and executed two
days before his death when he was about
to undergo an (^>eratlon for appendicitis, and
it gave bis entire estate to his executora
to pay his widow, out of the Income, "a
weekly allowance of forty dollars and such
other sum or sums as may be necessary dur-
ing the term of her natural life," she to re-
main in the residence, and after her death
the entire residue of the estate to go to such
Home for Old People as the widow should by
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101 ATIiANTIC REPOHTEB
(N.J.
will direct, or In default of such direction,
aa sbould be selected by the executors. It
appointed as executors Mahnken, the presi-
dent of a bank with which testator did
btislness, Annett, testator's real estate agent,
and Judge Roberson, his lawyer who had
represented him during a period of 25 years,
and who drew the will. T^tator was unable
to read or write (except his own signature)
In the English language, but could talk and
understand that language, although some-
what brokenly and Imperfectly. He was In
bed when he gave instructions for drawing
the will, and bis lawyer testified that the
Instructions as given were :
"AU of the property for Mrs. Gluckman for
life. I want Mr. Roberson and Annett and
Mahnken to be executors. The debts of the es-
tate are so many that I do not know when she
will get any Income; allow her forty dollars a
week out of the income. Not move from the
house undl she die."
Then he said after I had stopped writing:
"Give her as much more as is necessary for
her support, and after her death to Home for
Old People."
The lawyer produced a short abbreviated
memorandum made by him as these instruo-
tlons were given. He says he understood
or interpreted the part of the Instructions
after the one for the appointment of execu-
tors to be a modification of the first sentence
of the Instructions; that he went into an ad-
Joining room and at once drew the will in
accordance with this interpretation, brought
It back and read it paragraph by paragraph
to the testator, who fully understood it and
nodded assent to each paragraph; that he
told testator that the provision of the will
which directed the executors to pay the wid-
ow In addition to the $40 weekly allowance,
"such other sum or sums as may be necessary
during the term of her natural life," would
permit the executors to give and allow her
the whole income after the debts were paid,
and that the testator said: "All right That's
good." The will was then executed with com-
plete formality in all respects. There was evi-
dence that after the execution of the will
and immediately before the operation tes-
tator told bis wife and others that be bad
left everything to his wife. The estate con-
sisted of about 100 small houses, estimated
to be worth from $200,000 to $250,000, but
subject to $101,000 of mortgages 'and $9,000
or $10,000 of unpaid back taxes. There were
also outstanding promissory notes of the tes-
tator amounting to from $16,000 to $25,000.
There was a former will, executed some
four years earlier, and which is still In ex-
istence, which. If unrevoked, gave $5,000 each
to a brother and to a sister of testator, $1,000
to the widow of a deceased brother, and the
remainder of testator's estate to his widow
absolutely. The brother and sister are the
caveators, and testator's widow, while not
formally a caveator, was represented by coun-
sel who took the chief part In opposing the
probatei.
Elmer W. Demarest, Llndlcy M. Garrison,
and Gilbert Collins, all of Jersey City, for
appellant. Max Levy, of Bayonne, and Clar-
ence Lilnn, of Jersey City, for caveators.
Joseph M. Noonan, of Jersey City, tor re-
spondent Rosa Gluckman.
WHITE, J. (after stating the facts as
above). The question Involved Is one of
probate under the statute, pure and simple,
and not one either of construction or of refor-
mation.
[1] The document offered for probate Is of
testamentary character; It is in writing; It
was signed by the testator; It was both sign-
ed by the testator and. declared by him to be
his last will In the presence of two witnesses
who were present at the same time, and who
subscribed their names thereto, as witnesses.
In the presence of the testator, and at his
request. It has not been revoked and the
testator is now dead. No question is raised
Involving lack of testamentary capacity ou
his part A will so executed, under these cir-
cumstances, is entitled to probate unless it
be the result of fraud or of undue Influence
or (within certain limitations) of mistake.
Fraud (and this Involves bad faith on the
part of its perpetrator) willfully deceives free
agency; undue influence overmasters it;
whUe mistake, whether self -Induced or the re-
sult of the Innocent error of another, mis-
leads free agency, without bad faith or dom-
ination on the part of any one.
[S] Where a testator. In addition to com-
plete testamentary mental capacity, is in full
enjoyment of average physical and education-
al faculties, It would seem that In the ab-
sence of fraud or of undue Influence a mis-
take, in order to defeat probate of his en-
tire will, must in substance or effect really
amount to one of Identity of the Instrument
executed ; as, for Instance, where two sisters,
in one case, or a husband and wife, In an-
other, prepared their respective wills for
simultaneous execution and through pure er-
ror one executed the other's, and vice versa.
Anon., 14 Jur. 402; Re Hunt L. R. 8 P. &
D. 250; Nelson v. McDonald, 61 Hun, 406,
16 N. y. Supp. 273. Short of this, however,
or of something amounting In effect to the
same thing. It is against sound public policy
to permit a pure mistake to defeat the duly
solemnized and completely competent testa-
mentary act It Is more important that the
probate of the wills of dead people be effec-
tively shielded from the attacks of a multi-
tude of flctltions mistakes than that It be
purged of wills containing a few real ones.
Tlie latter a testator may, by due care, avoid
in his lifetime. Against the former be would
be helpless.
[2, 8] Where, however, a testator, by rea-
son of physical or educational disability, as
by blindness or by inability to read the lan-
guage in which the will is written (as in the
case sub Judice), is unable by the exercise of
bis own faculties to see for himself that the
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IN BE aiitrCKMAN'S WlUi
297
win expresses his testamentary desires, an
additional burden Is Imposed npon the pro-
ponents of the will, where there are any dr-
cnmstances which lead the court to suspect
that he may have been Imposed upon (Pattou
v. Hope, 37 N. J. Eq. 522), namely, that of
showing to the satisfaction of the court that
roch a testator was made acquainted with
the provisions of the will so tliat he under-
stood them. Day v. Day, 31 N. J. Eq. 649;
Harris ▼. Vanderreer's Executor, 21 N. J.
Eq. 561; Lyons v. Van Blper, 26 N. J. Bq.
337; HUdreth v. Marshall, 61 N. J. Eq. 241,
27 AtL 466. Most frequently where a physi-
cal or educational disability of this char-
acter exists, contested will cases are founded
npon fraud or upon undue Influence.
In the present case, however, the learned
trial Judge of the orphans' court of Hudson
county before whom the issue was tried, and
the learned vice ordinary who beard it on
appeal to the Prerogative Court, were both
of the opinion that neither fraud nor undue
influence entered Into the making of this will.
A careful examination of the evidence leaves
us in entire and emphatic accord with this
view. Both of these Judges, however, were
convinced that, by reason of what they
thought was an error on the part of the law-
yer who drew the will in misinterpreting the
testator's intentions, and also in advising tes-
tator of the legal effect of one of its provl-
8l«»i8, the will as executed did not in at least
one very Important respect carry out the In-
tention of the testator, and that it was not, in
this respect, tmderstood by him when he exe-
cnted it. For this reason probate was refus-
ed. We think this was error. While we
agree that a situation arose under the evi-
dence (by reason of testator being unable to
read the English language, taken in connec-
tion with the testimony tending to show a
state of mind or intention on his part in-
consistent with that Indicated by the will as
execnted) which put the burden upon pro-
ponents of showing to the satisfaction of the
court that testator was made acquainted with
the provisions of the will so that he under-
stood them, we nevertheless think that pro-
ponents successfully sustained this burden.
Tbe contrary view of the learned trial
Judge below seems in re&lity to have been
based npon two nncontrolllng elements,
namely: (1) What they thought was a vari-
ance between the will as executed and the
instmctions from which it was prepared;
and (2) what. If it existed, amounted to a
pure mistake upon the part of the testator
(whetber seU-lndnced or resulting from er-
roneous legal advice of his la-wyer) as to
tbe practical effect of a provision of the will
wblcb he knew it contained and thoroughly
imderstood.
[4] As to the first of these, it is quite im-
material whether tbe will did or did not cor-
rectly embody the instructions, if in point of
tact tJbte testator, when he executed it, was
made acquainted with and understood its
contents. As was said by Vice Ordinary
Beed in In re Livingstcm's WIU (Prerog.) 37
AU. 770:
"It is said * * » that her instructions
were not followed in drafting the will; * * *
and that the will, as drafted, • • • does not
carry into effect that wish. • • • But wheth-
er it does or not, if she was capable of making a
will, and there was no fraud practiced upon her
by which she was misled into signing what she
did not wish to sign (and there is no proof of
fraud in this case), it would not matter what
variation ther« might be between the instruc-
tions and the executed instrument."
[(] As to the second: Assuming that the
lawyer's assurance that the "such-sum-or-
sums-as-may-be-necessary" clause would per-
mit the executors to pay over the oitire in-
come after the debts were satisfied, was
Intended and imderstood as legal advice upon
the construction of this clause, and that it
was legally nnsound (which, under the dr-
cumstances, we think it was not), that also,
in the absence of fraud or of undue influence,
is insufficient to defeat probate of the will.
It Is no new thing for provisions in wills to
turn out, under the established rulings of
the courts, to have a very different meaning
from tliat which tbe testators themselves,
under tbe honest bat mistaken advice of
counsel, thought they bad when the wills
were executed, but this has never been a
ground for refusing probate. The learned
vice ordinary recognized this rule, dtlng Col-
Uns V. Elstone, L. B. [1893] Probate Div. 1,
but thought the situation was different
where the testator could not read nor write.
We think the difference is limited by the ef-
fect of the disability which gives rise to It
If a blind testator makes a will and through
pure mistake a clause which he intended, and
gave instructions, to insert, is left out, the
will is entitled to probate if the testator was
made acquainted with and understood what
it did contain. In spite of the fact that he
Intended to Insert another dause which by
inadvertence was omitted. A tinge of fraud
or of undue influence might shed an entirely
different light, but in tbe absence of either of
these, the error becomes a mlsteke, pure and
simple, not resulting from, and therefore not
protected by, any failure to conform to any
rules devised to overcome tbe disadvantage
of the disability.
So in this case, the testator was made ac-
quainted with and understood the fact that
the will which he was about to execute pro-
vided that his wife should get, during her
lifetime, from the executors, out of the in-
come, $40 per week and such additional sums
as should be necessary. Knowing and under-
standing that, he knew and understood ex-
actly what he would have known and under-
stood, if he could have read the English lan-
ga&ge with average intelligence and under-
standing and had read this will himself in-
stead of its being read to him. We think,
therefore, that the honest legal advice (if it
was legal advice) given him as to what the
executors could legally do under tbe clause
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298
101 ATLANTIC RJEPORTBB
CN.J.
In question can, even If legally unsound, have
no more effect In preventing probate of tbe
will in tbe one case tban in the other, which
is none at all.
This brings ns to the one material question
in the case, which is, Did the testator when
he executed this will know and understand
its provisions to the same extent that he
would have done had he been able to read
and understand written English with average
facility and comprehension, and had he read
the win himself instead of having it read to
him? We think this question must be an-
swered in the affirmative. He was a keen
business man, In full possession of his facul-
ties, and thoroughly intelligent (as is evi-
denced by his being "well versed in Hebrew
lore"), able and accustomed perfectly to un-
derstand and be understood by Judge Rober-
son, who had been his close and constant legal
and business counsel while testator pursued
the road from penury to comparative afflu-
ence^ during a period of 25 years, and the
will was read to bim and expressly assented
to by him paragraph by paragraph. The
clause in question is of such a nature that to
hear It read would necessarily convey tbe
knowledge of what it said. It said the ex-
ecutors were to pay the widow out of Income
such sums in addition to the $40 per week
aa should be necessary during her life, with
a remainder over after her death to a Home
for Old Pe<9le to be selected in the manner
directed. Obviously upon hearing this dause
read by his lawyer testator knew and under-
stood exactly what he would have known and
understood If he could have read English
with perfect fitdllty and had read it himself.
That this Is so Is also evidenced by the fact
that when the lawyer told him this clause
would permit the executors to pay all the in-
come to the widow when the debts were paid,
he said: "All right. That's good." We
think, therefore, that proponents have sus:
tained the burden of showing that testator
knew and understood the contents of the will
when he executed it, and that It should be
admitted to probate.
We may say in tills connection also that we
are not at all certain that there was any mis-
take whatsoever made by anybody in the
preparation of this will or in what was said
as to the practical effect of the provision in
question. When the testator's personality
was withdrawn by death it left this heavily
involved estate in a most precarious condi-
tion, and no one understood better than the
testator when be made his will that this
would be so. He knew that his estate, con-
sisting, as It did, exclusively of 100 small
houses worth maybe $200,000, but subject to
over $100,000 of mortgages and also to shrink-
age in rental and market value from de-
terioration and obsession, not to mention the
cost of constant repairs and renewals, with
$10,000 of unpaid taxes in arrear, and up-
wands of $25,000 of floating debt, was a leaky
ship in a stormy sea, and tnat if his wife
was to get any real benefit from It at all,
there must be skillful handling. He provided
for such handling by securing the services,
as executors, of the three men who had as-
sisted him most tn the very lines where
strength would be needed, namely, his banker,
his real estate man, and his lifelong lawyer.
If they were to succeed they would need lee-
way, discretion, full control. Also It is
quite likely that the practical effect of the
clause in question may turn ont to be to per-
mit the payment of all the Incrane to the
widow after the debts are paid, just as the
lawyer said It would. It does not seem
probable that tbe net Income will amount to
more tban wOl be necessary for the widow
to live upon in the manner her husband would
have desired, and her age and the assistance
she rendered him entitle her to enjoy, as soon
as the dangers which threaten the entire es-
tate are safely passed. This testator may
well have thought he was adopting the very
best way possible under the drcumstances of
securing to his wife the entire Income for
her life. That may have been what he
thought when he told her and others that be
had left everything to her. Certainly he did
not mean that assurance literally, as the
provision over after her death to a Home for
Old People, which he included in his instruc-
tions and discussed and approved the details
of as fixed by the will, thoroughly demon-
strates.
But be this as it may, we are quite satis-
fied that for the other reasons herein stated
the will should receive probate and the or-
der of tbe Prerogative Court afllrmlng the
order of the orphans' court denying probate
is therefore hereby reversed, and the matter
remanded to the Prerogative Court in order
that an order may be duly made admitting
the will to probate. Tbe costs will be paid
out of tbe corpus of the estate.
(SO N. J. I4iw, 682(
GUARRAIA V. METROPOLITAN LIFE INS.
CO. (No. 120.)
(Court of Errors and Appeals of New Jersey.
June 18, 1917.)
1. Appkai. and Ebrob ®=3644(1)— Failubb to
Fn.B Transcbipt Within Timb Allowbd—
Waiver or Objection.
'The failure to file transcript witUn 15 daya
after judgment was waived by service and ac-
ceptance of the printed state of the cose, and the
limitations of objection thereto that certain doc-
umentary evidence had not been printed, which
was afterwards supplied.
[Ed. Note. — For other cases, see Appeal and
Error, Cent. Dig. S§ 2795-2798.]
2. Insubance ®=291(4) — Appuoation mtt
Life Policy — Cokbtruction — Incoi(pz,kts
Answers.
Tbe failure to complete a printed statement
in application tor life policy stating that insur-
ed had not had specified diseases, "except ■
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OUARRAIA ▼. METROPOLITAN UFE INS. 00.
299
amoimted to a definite statement that he had not
had such diseases, and was not a mere incom-
plete answer accepted by the insurer without in-
sistence upon completion.
[Bd. Note. — For other c&sea, see Insurance,
Cent Dig. { 687.]
3. Irsttbancb ®=s>265— Afflicatior roB Life
PoucT — Effect of MissTATGMEnT — Wab-
KANTT OB MiSBEPKESENTATION.
If a misstatement in application for life
policy was a warranty, the policy falls ; if only
a misrepresentation, intentional falsehood is nec-
essary to avoid policy.
[Ed. Note.— For other cases, see Insurance,
Cent Dig. f 680.]
4. iNSTTRANCx ^=3668(6) — Action on Lute
PoucY—MiBBEPRKSENTATioN— Question fob
JiTBT.
Where insnred was an Italian, unacquainted
with the English language, and confronted with
an EngUsh-speaking doctor, question of his in-
tentional falsehood in making application httd
for the jnry; the policy providing that all state-
ments by insured "shall, in the absence of fraud,
be deemed representations, and not warranties.
[Ed. Note. — ^For other cases, see Insurance,
Cent Dig. ${ 1737-1740, 1758-1760.]
5. Inbtibancb 9=>559(2) — Failxtbe to File
Proof of Death— Waives— Denial of Lia-
BIUTT.
The requirement that a beneficiary file proof
of death was waived, where insurer wrote bene-
ficiary's lawyer that they did not propose to pay
because the policy was procured in fraud.
[Ed. Note.— For other cases, see Insurance,
Cent Dig. {| 1391, 1392.]
6. Appeal and Error ®=3l057(8>— Habmless
Ebbob— E^CLtJStON of Evidence.
In action on a life policy, error in excluding
prescriptions tending to show that deceased had
a disease, was harmless, where it might be as-
sumed that he did have such disease.
[Ed. Note.— For other cases, see Appeal and
Error, Cent Dig. f 4199.]
Airpeal from Supreme Court
Action by Glovannlna Guarrala against the
Metropolitan Life Insurance Company. Judg-
ment for plaintiff, and defendant aftpeala.
Affirmed.
On appeal from the Supreme Court, In
wblch the following per curiam was filed:
"In this case we dismissed the appeal on the
ground that the printed case did not set forth
the roles to show cause why a new trial should
not be granted in the district court and espe-
cially whether such rules reserved the points of
law taken at the trial; the statute requiring
that there be such a reservation to support an
appeal. G S. p. 2017, | 213f. The petition for
rehearing sets up that such reservation was
made, and on June 26th we heard counsel, and
the cases were reinstated so far as omission of
the rales to show cause and reservations are con-
cerned; bnt there remained the motion to dia-
miss the appeal made on the further pound that
the state of the case was not filed within the 15
days specified in the statute. If this point is re-
solved against the respondent, then we consider
the merits of the appeal.
[I] "We think the failure to file the transcript
within 16 days after judgment was waived by
the service and acceptance of the printed state
of the case and the limitations of objection there-
to that certain docnmentary evidence had not
been printed which was afterwards supplied.
Taldng this view, the application to dismiss fails,
and we are brought to a consideration of the
merits.
[2] "The defense was breach of warranty, nds-
representation, and concealment of facts, and the
errors relate to the refusal of Uie court to direct
a verdict and also instructions to the jury.
Among the statements subscribed by insured in
the application were declarations that he had
not had bronchitis and whether he had been at-
tended by a doctor within a certain period.
These statements were for the most part printed,
and stated that he hud not had various diseases
catalogued therein 'except ' (and here fol-
lows a blank for a statement of the exceptions).
No exceptions were stated, and the claim is that
this amounted to a definite statement on his part
that he had not had any of the diseases mention-
ed. On the other hand, it is urged that they
were simply incomplete answers which were ac-
cepted by the company without any insistence
upon completion. The trial court so held in de-
nying a motion to direct We do not take this
view, but, on the contrary, think that the si-
lence with respect to the exception should prop-
erly be taken as a statement that there is no
exception ; and consequently, if the insured had
in fact had one or another of the diseases, there
was a falne statement with respect to that fact
[3, 4] "The question then is with reference to
the effect of the statement. If it was a warran-
ty, the policy falls; if it was only a misrepre-
sentation, the question of intentional falsehood
becomes material. The policy says: 'All state-
ments by the insured shall, in the absence of
fraud, be deemed representations and not war-
ranties.' The result of this seems to be that
they are made tlie legal equivalent of representa-
tions in any case, and we must look for fraud in
order to vitiate the policy. Here we are met by
the fact that the insured was an Italian, appar-
ently not well acquainted with the English lan-
guage, confronted with an English-speaking doc-
tor, who probably conducted the examination in
the usual more or less perfunctory manner and
had tbe insured sign the paper more or less as a
matter of form. The judge left it to the jury to
say whether there had been intentional misrep-
resentation. We are inclined to think that this
course was right. There is little doubt that
the deceased had consumption, or that be prob-
ably had chronic bronchitis and probably otiier
diseases, but the terms of tbe policy require the
company to show that he bad intentionally mis-
represented these matters, and we do not think
that this was shown as a court question. This
disposes of the motion to direct.
[5] "The next iwint is that the plaintiff failed
to show any proof of death. There was no for-
mal proof of it but the plaintiff relied on a let-
ter of the insurance company declining to pay
the policy because it had been procured in fraud
or misrepresentation, and claimed that this was
a waiver of the proof of death. This is attacked
on the anthority of an unreported opinion of a
justice in this court which is quoted in the brief.
We do not know the facts in that case, and can-
not tell whether it covers the present situation,
but are inclined to say that under Uie terms of
this iwlicy such a letter may be considered a
waiver. The policy fixes no time in which the
proofs of death are to be submitted, so that they
could be presented within any reasonable time;
and consequently, when some three months after
the death the lawyer wrote to the company ask-
ing whether the claim was going to be paid, and
the company said, 'No; we don't propose to pay,
because the policy was procured in fraud,' it
should not be held necessary for the claimant
thereafter to pat in proofs which would be en-
tirely nugatory.
"The next point is that the judge erred in
charging the jury in effect that in order to viti-
ate the policy it must appear that the deceased
was knowingly stating a falsehood to the com-
pany. This is in line with what has been said.
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101 ATLANTIC REPOUTER
(N.J.
[6] "Finally It b stated that there was error
in excluding' certain prescriptions. These, if ev-
idential, would have tended to show that the de-
ceased had in tact consumption or bronchitis or
what not. In the view we take of the case it
may be assumed that he did, and on that as-
sumption the error would become harmless.
"These views lead to an affirmance of the
judgment."
McCarter & English, of Newark, for appel-
lant. John J. Stamler, of Elizabeth, for ap-
pellee.
PER CURIAM. The judgment under re-
view will be affirmed for the reasons set
forth In the opinion of the Supreme Contt.
(90 N. J. Law, 686)
GUARRAIA v. METROPOLITAN LXPH INS.
CO. (No. 121.)
(Court of Errors and Appeals of Mew Jersey.
June 18, 1817.)
Appeal from Supreme Court.
Action by Giovannina Guarraia against the
Metropolitan Life Insurance Company. Judg-
ment for plaintiff, and defendant appeals. Af-
firmed.
McCarter & English, of Newark, for appel-
lant John J. Stamler, of Elizabeth, for appel-
lee.
PER CURIAM. The judgment under review
will be afiSrmed for the reasons given In the
per curiam in Guarraia v. Metropolitan Life Ins.
Co., No. 120 of the present term of this court,
101 Atl. 298.
m N. J. Kq. 504)
CLARK et aL v. CLARK et aL (So. 87/403.)
(Court of ChancoTy of New Jersey. May 14,
1917.)
1. Trusts «=>306— Aocountiito— Bvidkncs—
Pbocbsds of Salks.
In a suit by the executors of a father
against those of a son for an accounting, the
son's estate was properly charged with the con-
sideration for the sale of land notwithstanding
that the money was not traced into the son's
handsj the transfer, amount, and exclusive ne-
gotiation by the son being admitted.
[BA. Note.— For other cases, see Trusts, Cent.
Dig. I 428.1
2. Evidence «=>357 — Leitebs — Admissi-
BIUTT.
In a suit by the executors of a father against
those of his son for an accounting wherein It
was sought to charge the son's estate with the
proceeds of a mortgage cashed by the son let-
ters from the father concerning the mortgage,
although unanswered, held admissible.
[Ed. Note.— For other cases, see Evidence,
Cent. Dig. $f 1492-1499.)
3. Gifts <8=»49(6)— Bpbden of Pboof.
In a suit to charge a son's estate with the
proceeds of a mortgage assigned to him b^ the
father, the assignment alone was not sufficient
to show a gift of the mortgage, the burden,
where fiduciary relations exist, being upon the
person in whom confidence is reposed to show
that the transaction was fair and well under-
stood.
[Ed. Note. — For other cases, see Gifts, (Tent
Dig. i 95.]
4. Trusts «=9308 — AccouifTiRo — RBi.iEr —
Proceeds of Saus.
In a suit for an accounting by the execu-
tors of a father, his son's estate was properly
charged with the proceeds of land sold, where
the land was shown to have belonged to tho
father, and that the son always recognized him
as the beneficial owner.
[Ed. Note.— For other cases, see Trusts, CTent
Dig. I 428.)
5. Trusts ^=988 — AccouNTnra — Evidenck
—Gifts.
In a suit to charge a son's ofltate with the
proceeds of a sale of the father's land by abso-
lute deed for the uses of the grantee, proof of
a resulting trust is admissible, since, where a
fiduciary relation of trust and confidence ex-
ists, the rules excluding oral testimony to vary
a written instrument are superseded by the
equitable rule that a conveyance will not be up-
held as a gift unless it affirmatively appears
that it was so intended and understood.
[Ed. Note. — For other cases, see Trusts, Cent
Dig. M 180, 131, 133.]
6. Trusts €=»321 — Acoountino — Credits
—Compensation.
In a suit for an accounting by the execu-
tors of a father against his son's estate, com-
pensation was not allowed for the son's services
as manager of the father's property where the
son had despoiled the estate of nearly one-third
of its assets.
rSd. Note.— For other cases, see Trusts, <3ent.
Dfe. §{ 46ft-473.]
7. Trusts e=»309— Accounting— Conversion
— Interest.
Where a son had converted a large share
of his father's estate, on a decree in accounting
by the father's executors, interest at the legal
rate should be charged from the date of each
conversion and compounded as a punishment.
[Ed. Note.— For other cases, see Trusts, Cent
Dig. f 428.]
Bill by Samuel A. CSark and others against
Maria S. Clark and others for an accounting.
On exceptions by both parties to a master's
Veport, Defendant's exceptions overruled,
complainant's exceptions sustained.
S. W. Eldrldge, of Elizabeth, for complain-
ants. Foster M. Voorhees, of Elizabeth, for
defendants.
BACKES, V. O. This bill Is for an account
and was referred to a master, whose report
has been excepted to In the particulars here>
after mentioned.
Amos Clark died October 30, 1812, at the
age of 82, in Boston, where in the latter
years of his life he made his home. He had
large real estate holdings In Elizabeth and
Union county, and some In Tarrytown, N. T.
His son, William A. Clark, had the sole and
exclusive management and control of his
property, attending to the collectlout of rents,
and negotiating sales of the realty, and han-
dled bis financial affairs generally. William
A. Clark died a year after his father, and
this bill was filed against his executors by
his father's executors for an accounting.
The master was directed to take an account-
ing for the period of six years next preceding
the death of Amos Clark, and he has re-
ported that during this time William A.
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CLARE T. CLARK
301
dark received $229,503.63 and dlsbarsed
$173,261.54, leaving unaccounted for and due
to the complainants $56,242.09, besides inter-
est. A stipulation was entered Into by coun-
sel attesting the correctness of these charges
and discharges, reserving the items to which
the present exceptions are directed, and
some others which the master has allowed
and to which no exceptions have been taken.
[1] The first and second exceptions are
to two items of charges of $1,000, re^jective-
ly. These sums were part consideration
price of the sales of two tracts of land,
one to William C Haugaard, the other to the
Murray Hill Heights Company. The single
ground of objection Is that the moneys were
not traced into the hands of the agent, and
therefore the jMtiofs fall short of the legal
requirement. No such du<7 Is imposed
upon the compla'lnants. The transfers and
amounts are admitted, and as the son nego-
tiated the sales ecEclusively, which Is also
conceded, the Inference Is inevitable that he
collected the proceeds. Moreover, the evi-
dence satisfactorily establishes the charges
and sustains the master's findings.
[2] The third exception relates to a charge
of $4,556.21, the proceeds of a bond and mort-
gage made to Amos dark by Dorothy Mil-
ler. That William A. Clark cashed this
mortgage Is not disputed. The contention
Is that it was his property by gift from his fa-
ther. The mortgage was assigned by Amos
Clark to William A. Clark on March 28,
1910, and by the latter hypothecated with
Plalnfleld Trust Company for a personal loan
of $3,500 three days later, and afterwards
assigned to the Fidelity Trust Company.
One thousand dollars was paid on account of
the loan out of trust funds, and the balance
liquidated by the assignee ; the surplus being
deposited by William A. Clark in bis trust
account. Letters by Amos Clark to his son,
and found In the Tatter's possession, written
at the time the mortgage was assigned,
Mncerning the purpose of the assignment,
and others of much later dates, inquiring as
to the interest and the disposition, if any,
made of the mortgage, and the application
by William A. dark of part of the proceeds
to tbe credit of the trust estate, evinces be-
yond peradventure that the assignment from
the father to the son wns made for conven-
ience of sale or cancellation, or was procured
by the latter to serve the ulterior parpose to
which it was put. For the purpose of Il-
luminating the transaction, the letters, al-
though unanswered, were competent. State
V. MacFarland, 83 N. J. Law, 474, 83 Atl.
«a% Ann. Cas. lftl4B, 782.
[3] There is another reason for sustaining
the charge. There Is no proof to establish
the alleged gift. The written assignment
alone— and this Is all the defendants rely
upon— is not sufficient The rule Is that:
"In all transactions between persons occupy-
ing relations, whether legal, natural, or conven-
tional in their origin, in which confidence is
naturally inspired, is presumed, or in fact rea-
sonably exists, tbe burden of proof is thrown
upon the person in whom the confidence is re-
posed and who has acquired an advantage, to
show affirmatively, not only that no deception
was practiced therein, no undue influence used,
and that all was fair, open, and voluntary, bat
that it was well understood." Hall v. Otterson,
52 N. J. Eg. 522, 28 Atl. 907; Parker v. Par-
ker, 45 N. J. Eq. 224, 16 Atl. 537; Corrigan v.
Pironi, 48 N. J. Eg. 607, 23 Atl. 355; Coffey
V. Sullivan, 63 N. J. Eq. 296, 49 Atl. 620.
[4] The fourth exception is to a charge of
$17,500, tbe proceeds of tbe sale to Thomas A.
Sperry of a tract of land of 36.54 acres, and
of "the gristmill lot and the lot of .45 acres"
adjacent The tract of 36.54 acres was con-
veyed by Amos Clark to his son on May 29,
1907, for the consideration of $1. The title
to the gristmill lot and the one adjoining was
also at one time in Amos Clark. The history
of these lands is fully set forth in the evi-
dence and the master's report, and it is only
necessary to remark that it satisfactorily
aj)pear8 that they at all times belonged to
Amos Clark, and that in bis dealings with
tbeu William A. Clark recognized and ac-
knowledged the beneficial ownership of his
father.
[5] The grLstmlll lot and the .45 acre lot
formed an inconsequential part of tbe sale
to Sperry, and was not adverted to in
the argument, except to reflect William A.
Clark's ownership of the larger tract con-
veyed to him by his father. It is not pretend-
ed that any consideration was paid for this
latter conveyance, but the contention is that,
as the deed Is absolute on Its face and de-
claims the uses to be for the grantee, proof
of a resulting trust is inadmissible, and there-
fore, and because there was none of an ex-
press trust within the statute of frauds, the
defendants cannot be called upon to account
This would ordinarily be so. Fretz v. Roth,
68 N. 3. £}q. 516, 59 AtL 676. But where a
fiduciary relation of trust and confidence ex-
ists, the rules of evidence which exclude oral
testimony to vary a written document are
superseded by the equitable rule above quot-
ed from the Otterson Case, to the effect that
a conveyance of land will not be upheld as a
gift unless it Is shown affirmatively that
it was so intended and understood. There
Is no such evidence.
[S] Fifth exception: Tbe master allowed
$15,000 commissions for services, at the rate
of $2,500 a year, to which both complainants
and defendants exccjit, the former contend-
ing that none should have been allowed, or,
at the most, $2,000 per annum, while the de-
fendants claim that the services were reason-
ably worth $5,000 a year.
There is no evidence of an . e^^ress con-
tract to remunerate. The declaration of Wil-
liam A. Clark that bis father was paying him
$2,000 a year is not competent to prove an
agreemoit, although It might be considered In
limiting the amount of compensation.
The character of the services and the dr-
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302
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(Me.
cumstanoes under which they were rendered
were such as to Imply a promise to pay for
them. Although they were performed by the
son for the father, they were not rendered as
members of the same bonsehold In the usual
family relationship, and no countervailing
presumption arises that they were discharged
gratuitously. Dlsbrow t. Durand, 54 N. J.
Law, 343, 24 AtL 645, 33 Am. St Rep. 678.
Compensation, however. Is allowed only
when the servant has faithfully performed
his duty. Here the son was guilty of most
flagrant abuses of his trust He kept no
accounts, mingled the funds with his own,
from time to time appropriated them to his
own use and finished with a defalcation of
over $71,000. This deficiency covers a period
of six years only, and how much more of the
estate was absorbed before and from the time
the trust began can only be conjectured.
1 am unable to comprehend upon what theory,
with principle and authority against It, the
master arrived at his conclusion. It was sug-
gested that Amos Clark was habitually care-
less in the matter of accounts, and especially
BO with reference to his son's, and that this
ruling passion Infiuenced the latter and was
In a laige measure responsible for his failure
to keep a faithful record of his stewardship.
Indeed, I observe that the master Indulges In
some palliative sentiments along this line,
but I fall to recogDize any heritable quality
in the parental trait The chaotic and de-
plorable condition In which the accounts were
found, and which required the services of
two experts to extricate and bring to an intel-
ligent understanding, was undoubtedly due
to an Indifference to duty ; but the toleration
of the father was not a license to plunder.
The relation was most Intimately confiden-
tial, intensified by a father's high esteem and
great natural love and affection, and thus,
aged and helpless, he Intrusted, all of his
material Interests to his son, relying Implicit-
ly upon bis fidelity, In unbounded assurance
that all was well husbanded and conserved.
And this confidence was repaid by despoil-
ing the estate of nearly one-third of its as-
sets, at the rate approximately of $1,000 a
month; and during a period when the fa-
ther's allowance for the support of his family,
consisting of himself, wife and niece, was re-
duced to $200 a month, presumably by ar-
rangement. In the bell^ that that was all
that the estate could afford, and when the
son knew that his father was frequently dis-
tressed for want of money. Oomtjensation,
under such circumstances, would reward
faithlessness and duplicity and Is unthink-
able. For offenses venial In comparison com-
missions have been uniformly denied, as for
failure to keep accurate records or to render
an account, permitting trust funds to lie idle
or remain unsecured, or without distinct and
separate Investment, for mingling them with
one's own funds, etc. The cases are collected
in R« Walsh's Estate, 80 N. J. Eg. 5KS, 74
AtL 663. The rule has also been applied
where the compensation was fixed by agree-
ment Ridgeway v. Ludlam, 7 N. J. Bq. 123.
See, also, Wright ▼. Smith, 23 N. J. Eq. 106.
[7] Sixth exception: The master reported
that the interest upon the amount of the de-
falcation be computed at the rate of 4 per
cent from the death of Amos Clark. There
is no room for compassion In this case. The
master should have calculated Interest at the
legal rate. Exact justice demands tliat in-
terest be reckoned from the date of each aoa-
version, and compounded as a punlshm^it
Frey v. Frey, 17 N. J. Eq. 71. As the excep-
tion challenges only the rate, the report will
be modified to that extent
The defendants' exceptions will be overrul-
ed, and the complainants' exceptions sustain-
ed, with costs. The master's report will be
confirmed, except as to the compensation and
Interest, and as to these It will be corrected,
and a decree advised accordingly.
(US He. Ml)
LEMAIRE V. CROCKETT et aL
(Supreme Judicial Court of Ifaine. July 8,
1917.)
1. Statutes $=»251— Emebgenct Clause— Po-
UCB Commission — CoNSTBUCTioN—"HoMB
Rule."
Under Const art 81, | 16, providing an
emergency bill shall include only such measures
as are immediately necessary for the preserva-
tion of the public peace, health, or safety, and
shall not Include an infringement of the right
of home rule for municipalities, as Prlv. & Sp.
Laws 1880, c. 293, delegated to the city of Lew-
iston the appointment of its own police force,
and has not been modified or repealed, the emer-
gency clause attached to act of 1917 approved
March 8, 1917, providing a police commission
for the city of Lewiston. Is invalid, as infringing
the right of "home rule," which is "the right of
self-government as to local affairs," since the
fact that, at the time the infringing act is pass-
ed, the right is lodged with the municipal gov-
ernment, is sufficient to forbid the attaching of
the emergency clause.
[Ed. Note.— For other cases, see Statutes,
Cent Dig. i 832.
For other definitions, see Words and Phrases,
First and Second Series, Home Rulej
2. Statutes «=>64(4)— Vauditt— Bwwjt or
Pabtial Invalimtt.
As an act creating a police commission in
a city and an emergen<^ clause are clearly sep-
arable, the act otherwise constitutional, is not
afEected by the invalidity of the emergency
dause, and will take effect as a nonemergrency
act permitting the invoking of the referendiuo.
[Ed. Note.— For other cases, see Statutes,
Cent Dig. Sf 61, 195.]
3. Quo Wabsanto «s»10— Jurisdiction.
Quo warranto would not be the proper rem-
edy by the ma^or of a city against members of
a police commission appointed under an alleged
invalid act where the defendants nre not exer-
cising the duties of an office to which plaintiff
claims tiUe.
[Ed. Note.— For other cases, see Quo Warran-
to, Cent Dig. fS 10-12.]
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LiBMAIRB r. CROCKETT
303
1 ImrnroTioif «=b8SCZ)— Jcbibdiotior— Adx-
QUATK REUEDT at LaW.
A bill in equity, brought by the mayor of
I city, would lie to test the validity of an emer-
gency act appointing police commissioners, aa
plaintiff has no adequate remedy at law.
[Ed. Notc.^For other cases, see Injunction,
Cent Dig. { 156.]
Appeal from Supreme Judicial Court, An-
droscoggin County, In Equity.
Action by Charles P. Lemalre against
Ralpli W. Crockett and others. From a
Judgment overruling a demurrer to and dis-
missing the bin, plaintiff appeals. Bill and
appeal sustained, and decree ordered In ac-
cordance with opinion.
Argued before CORNISH, O. J., and
SPEAR, KING, BIRD, HANSON, and MAD-
IGAN, JJ.
McGUllcuddy & Morey, of Lewlston, for
appellant Ralph W. Crockett, of Lewlston,
for appellees.
CORNISH, a J. This Is a bill In equity,
brought by the plaintiff, as mayor of the city
of Lewlston, against the three members of
the police commission appointed under an act
of the Legislature approved March 8, 1917,
entitled "An act to provide a police conunls-
sion toT the city of Lewlston and to promote
the efficiency of the police department there-
of." The bill asks this court to declare that
the Legislature had no constitutional power
to pass the act with the emergency clause
attached, that the act Is rendered thereby
invalid, that all appointments already made
by the defendants are of no effect, and that
the defendants be enjoined from Interfering
with, controlling, or directing the police
fi>rce of the dty of Lewlston.
The defendants filed an answer to the bill,
with a demurrer inserted therein. The sit-
ting Justice ruled as follows:
"To sustain this bill would be to rule In effect
that the police commission act is unconstitution-
al, in that it infringes the right of home rule.
But, according to the established and uniform
course of procedure in this state, a statute will
be presumed by a single justice to be constitu-
tional until the contrary has been established
by the law court"
He accordingly ruled pro forma that the
act was constitutional, and dismissed the
bill, at the same time overruling the demur-
rer.
Two questions are Involved : First, wheth-
er the act violates section 16 of the thlr^-
first amendment to the Constitution, that an
emergency bill shall not Include an Infringe-
ment of the light of home rule for munici-
palities; second. If It Is such a violation,
whether the act Is wholly unconstitutional,
or only the emergency clause is invalid, leav-
ing the act itself valid, and subject to the
referendum, If Invoked.
Section 16 of article 31 of the Constitution
of this state, adopted by the people In 1908,
and commonly known as the emergency
daose of the initiative and referoidam pro-
vides as foUows:
"Sec. 16. No act or Joint resolution of the
Legislature, except such orders or resolutions
as pertain solely to facilitating the performance
of the business of the Legislature, of either
branch, or of any committee or officer thereof,
or appropriate money therefor or for the pay-
ment of salaries fixed by law, shall take effect
until ninety days after the recess of the Leg-
islature passing it unless in case of emergency
(which with the facts constituting the emer-
gency shall be expressed in the preamble of the
act), the Legislature shall, by a vote of two-
thirds of all the members elected to each house,
otherwise direct An emergency bill shall in-
clude only such measures as are immediately
necessary for the preservation of the public
peace, health or safety and shall not include
(1) an infringement of ue right of home rule for
municipalities," etc.
The last clause Is the one vitally involved
here. Did the act creating this police com-
mission, and taking the entire management
and control of the police department of the
city of Lewlston away from the municipal
officers, where this power had resided since
1880, and giving It to a commission of three
appointed by the Governor, constitute an in-
fringement of the right of home rule, as pro-
hibited in the Constitution? If It did, the
Legislature was expressly prohibited by the
Constitution from attaching to it the emer-
gency clause, thereby taking from the people
the right to Invoke the referendum, and
causing the act to go into effect immediately
upon its approval by the Governor.
[1] In our opinion, this act did infringe
upon the right of home rule under the facts
of this case, and therefore the emergency
clause was Invalid.
The Constitution of this state confers up-
on the Legislature —
"full power to make and establish all reasonable
laws and regulations for the defense and benefit
of the people of this state, not repugnant to this
Constitution, nor to that of the United States."
Article 4, pt 3, { L
As was said in the Opinion of the Justices,
99 Me. 631, 60 AtL 85:
"One of the main purposes of this general
grant of power was to vest in the Legislature a
superintending and controlling authority, under
and by virtue of which they might enact all
laws, not repu^ant to the Constitution, of a
police and municipal nature, and necessary to
the due regulation of the internal affairs of the
commonwealth."
The exercise of such a power is absolutely
indispensable in a well-governed community.
A necessary corollary to this fundamental
proposition is this: That the Legislature has
the constitutional power to designate the in-
strumentality which shall execute and carry
into effect the laws made for the benefit of
the people under this section. It may In-
trust their execution to a board created by
itself and to be appointed in a designated
way, or to the municipality Itself where the
power is to be executed. The latter is the
more common method. But having adopted
one method, the Legislature is not forever
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bound thereby, but may subetltute another,
whenever It sees fit Ck)mrnonwealth v.
Plalsted, 148 Mass. 375-S86, 19 N. E. 224, 2
L. R. A. 142, 12 Am. St Rep. 566.
In this Instance It Is obvious that, prior to
passage of the police commission bill in 1917,
the right to regulate and control the police
department of Lewiston had been delegated
by the Legislature to the city Itself. It had
been made a matter of local self-government,
which is but another name for home rule.
"Home rule" has been defined to be, what the
term itself clearly Indicates, "the right of
self-government as to local affairs." Words
and Phrases, Second Series, p. 902.
"Home rale means that, as to the affairs of
a municipality, which affects the relation of citi-
zens with their local government, they shall be
freed from state interference, regulation, and
control ; that the system of public Improve-
ments, the building of streets and alleys, the
appointment of officers, the designation of their
duties and how they shall be performed, and
aU other matters purely of local interest, ad-
vantage, and convenience, shall be left to the peo-
Sle for their own determination." People v.
ohnson, 34 Colo. 143, 86 Pac. 233.
It is true, as was said in Andrews v. King,
77 Me. 224, that the officers in the police dfr*
partment are essentially state ofBcers, in,
that It is their duty to preserve the public
peace, the peace of the state, and the people
of the whole state are interested to have
such legislation as will secure the most ef-
ficient administration of the department.
What that legislation shall be, however, is
for the Legislature to determine, and, aa the
court also said In the same opinion, while the
appointment is usually delegated to the mu-
nicipal government. It Is competent for the
Legislature to Intrust It to the Governor.
In the case at bar this power had long
prior to 1917 been delegated to the municipal
government
By chapter 293 of the Private and Special
Laws of 1880, entitled "An act to promote the
efficiency of the police force of the city of
Lewiston," it was provided that the police
officers of that city, including the marshal
and deputy marshal, should be appointed by
the mayor with the advice and consent of
the aldermen, and the mayor was given the
power to suspend any policeman, which sus-
pension should be in force untU the next
meeting of the aldermen. By this act the
Legislature delegated to the municipality the
appointment of its own police force and con-
ferred upon It the sole right to administer
the affairs of the police department So long
as that right, so delegated, continued, and
that act remained unmodifled and unrepeal-
ed, the city of Lewiston had the right of
home rule so far as its police department
was concerned. The Legislature still bad
the power to withdraw that right, and confer
It upon some other board or commission, as
it did by the act of 1917 under considera-
tion ; but, so long as the act of 1880 remain-
ed in force, the right of local self-government
in the police department existed. This right
of home rule is not, as we have seen, and
need not be, absolute and Indefeasible, in
order to bring its infringement as an emer-
gency act within the inhibition of section 16.
If at the time the infringing act is passed
the right is lodged with the municipal gov-
ernment, that is sufficient to forbid the at-
taching of an emergency clause, and that was
the situation here.
That the commission act infringed ujmn
the previously delegated right of local self-
government Is obvious. It took the control
of the police department from the munici-
pality, and conferred it upon a commission
appointed by the Governor, in express and
decisive terms. Section 4 of the act reads
as follows:
"The board of police commissionetB hereby
created shall have full power and authority,
subject to the provisions of this act, to organ-
ize and establisn the police force of the dty of
Lewiston and to make all rules and regulations
for the government, control and efficiency of the
same. Said board shall have and exercise all
the ^wers and be charged with all the duties
relative to the organization, appointment and
control of said police force now conferred or
imposed upon the mayor, the municipal officers
or the city council of Lewiston, and such other
powers as are given them by the terms of this
act"
The Legislature had the constitutional
right to moke this transfer, but section 16
of the thlrty-flrst article expressly forbids an
emergency clause to be attached to such a
bill. There is a clear distinction, which must
not be overlooked, between the legislative
power to pass the act and the power to pass
it as an emergency measure. The first is
permitted; the second is prohibited. The
attempt to do so In this case was futile.
The emergency clause is clearly invalid.
[2] This invalidity, however, affects only
emergency clause and the date when the law
may take effect Instead of becoming a law
immediately upon approval by the Governor,
it will not take effect until 90 days after the
recess of the Legislature, thus becoming a
nonemergency act, and permitting, In the
meantime, the Invoking of the referendum.
The act itself is valid. It was within tbe
constitutional povrer of the Legislature to
pass it The emergency clause is invalid.
The Legislature was expressly prohibited
from attaching It The two are clearly sep-
arable. The one stands; the other falls.
Riley V. Carlco, 27 Okl. 8»-37, 110 Pac. 738.
[3, 4] So far as the demurrer is concerned,
we would only add that both parties desire
the decision of the case on its merits apart
from technicalities. And were technicalities
to be considered we think the bill would lie.
Quo warranto would not be the proi)er rem-
edy, because the defendants are not exercis-
ing the duties of an office to which the plain-
tiff daims title; nor has the plaintiff any
adequate and complete remedy at law. We
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DOHBRTT y. RUSSELIi
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think tbe sitting Justtoe did not err In met-
iDllng the demarrer.
The entry must be:
Appeal sustained.
Bill sustained, with costs.
Decree in accordance with the opinion.
(U> He. MS)
DOHERTX et aL V. BUSSBLU
(Snpreme Judicial Ooort of Maine. July 6,
1917.)
L WlIXS «=»496— CoNSTBtJCnON— Beneftcia-
BT.
Where a life estate is devised to a peraon
named and "liis wife," the identity of the co-
tenant is fixed as firmly as if her individual
oame had been used.
[Ed. Note.— For otlier cases, see WQls, Cent
Dig. Si 1065, 1066.]
2. DivoBCK ®=s>322— Pbofertt Riohtb.
Upon the grantins of a divorce by a decree
which makes no disposition as to the property
rights of the parties, each holds the legal title
to half of real estate which was devised to them
as cotenants.
[Ed. Note. — For other cases, see Divorce,
Cent Dig. H 822-825.}
8. DiTOBCK «=>322— Pbopkbtt Rights.
The property rights of the parties to a
divorce siiit are not affected by the decree unless
they are brought before the court in some ap-
propriate manner.
[Ed. Note.— For other cases, see Divorce,
Cent. Dig. H 822-826.]
4. Life IIotates 93>4— TEBKinATiON.
Where a life estate is devised to husband
and wife as cotenants, the property rights of
the wife are not affected by her divorce and
remarriage, nor by the fact that, having de-
serted her first husband, she re-enters into pos-
session of the property on his death, accompa-
nied by her second husband.
[Ed. Note.— For other cases, see Life Estates,
Cent Dig. H 6-10.1
6. Lnrs Estatks ig-.il TramwATioit.
One to whom a life estate has been devised
as cotenant with her husband does not, by aban-
doning him, leaving the property in his sole pos-
session for 23 years, and maldng no claim to it
during that period, show an intention to abandon
her interest in the real estate;
[Ed. Note.— For other cases, see Life Estates,
Cent Dig. « 6-10.]
8. Abandonhent 4=32— Natdbb and Blb-
IIZRTS.
There can be no abandonment without both
the intention to abandon and the external act
hy which the intention is carried into effect (cit-
ing Words and Phrases, Second Series, Aban-
donment).
[B<d. Note.— For other cases, see Abandonment,
Cent Dig. 1 1.)
7. ABARDONUEnT «=>6— PbESUUFTIOKS AND
Btjbden of Pboof.
An intention to abandon will not be pre-
sumed, and the bnrden of lowing an abandon-
ment rests on the one asserting it
[Ed. Note. — For other cases, see Abandon-
ment Cent Dig. {§ 7-9.]
8. HCBBANO AND WiFB «=3l&— AOVEBSE POS-
SKS8I0N— EvrnERCB.
Where a life estate is devised to a husband
and wife as cotenants, and the husbaud, after
the wife has deserted him, poeupies the whole
property as before, making no daim to addition-
al rights and performing no act hostile to de-
fendant's title except to secure a divorce and
remarry, his possession was not adverse.
[Ed. Note.— For other cases, see Husband and
Wife. Cent Dig. H 100-106.]
9. LUTE Estates i8=>8— Advbbse Possession-
Dkclaeationb.
A life tenant cannot, by bis declaration, acts,
or claims of a greater or different estate, make
it adverse so as to enable himself, or those claim-
ing under him, to invoke the statute.
[Ed. Note.— For other cases, see life Estates,
Cent Dig. H 24r-28.]
10. Limitation of Actionb «=»1— Natube of
Statute.
All statutes of limitations are based on the
theory of laches, and no laches can be imputed
to one who has no remedy or right of action.
[Ed. Note.— For other cases, see Limitation of
Actions, Cent Dig. §S 1-3.}
11. Tenancy in Common «=»16(2>— Advebsb
Possession- Actuai, Ousteb.
As between cotenants, evidence of long con-
tinued, visible, uninterrupted, and even exclu-
sive occupation by one cotenant is not enough
to bar the rights of the other cotenant; there
must be evidence from which a putting out and
keeping out of the other cotenant can he infer-
red.
[Ed. Note.— For other cases, see Tenancy in
Common, Cent Dig. { 43.]
12. Remaindebs ^s>17(2)— Right or Action.
Remaindermen cannot maintain a real ac-
tion for entry upon land against the life tenant
of such property.
[Ed. Note.— For other cases, see Remainders,
Cent Dig. | 13; Limitation of Actions, Cent
Dig. I 231.]
Report from Supreme Judld^ Coart, Knox
County, at Law.
Action by John E. Doherty and others
against Mary S. RusseU. On report Judg-
ment for defendant
Argued before SAVAGE, C. J., and COR^
NIBH, BIRD, HALBT, HANSON, and MAD-
IGAM, JJ.
Frank B. MlUer, of Rockland, for plalntlfTs.
Ii. M. Staples, of Washington, Me., for de-
fendant
HANSON, 3. Real action, reported to this
court upon the following agreed statement of
facts:
"Cornelius Hanrahan of Rockland, Me., died
April 15, 1893, testate, his last will and testa-
ment being duly proved and allowed by the pro-
twte court of the county of Knox on the third
Tuesday of May, 1893. The sixth and for^-
third items of said will, and which are the only
items applicable to the purpose of this case,
are as follows:
"*6th. I give, bequeath and devise to J. W.
Simmons and his wife, the use and occupancy
of the farm and buildings thereon where they
now reside, in said South Thomaston, for and
during their natural lives and tbe survivor of
them for the period of his or her natural life,
and all the stock and fanning tools on said farm
and all fire wood and fuel on said premises nec-
essary for their family use. The provision, how-
ever is made to said Simmons and his wife on
condition that they or the survivor of them, shall
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101 ATLANTIC REPORTER
(Me.
make no strip or waste of the wood land, nor
shall they or the survivor of them, cut the same
for the purpose of selling it in the maritet, and
said parties, Simmons and his wife, shall keep
the taxes on said farm and property fully
paid from year to year, so long as the same may
be occupied by them or either of them.'
" '43d. I give, bequeath and devise the rest,
residue and remainder of my estate, real, per-
sonal and mixed, wherever found and however
situated to my sister, Mary Doherty to have
and to hold the same to her, her lieim and as-
signs forever.'
No disposition of the Simmons farm at the
termination of the life estate was made by said
Hanrahan in his will other than what appears
by said 43rd item.
"Mary Doherty died January 14, 1912, testate,
and her will has been duly proved and allowed
liy the probate court of 'said Knox county.
With the exception of $1 given to each of her
several heirs, all her estate, both real and per-
sonal, was devised and bequeathed to her two
sons, .Tohn E. Doherty and Wm. Doherty, the
pluintifTs in this action.
"John W. Simmons was in possession of the
premises at the time eaid Hanrahan will was
probated, and remained continuously in posscs-
sioo until his death on the 23d of April, 1916.
"On the 26th of September, 1S96, a divorce
was granted John W. Simmons from Mary S.
Simmons, who was his wife at the time of the
oxecution and probating of the will of said
Hanrahan for the cause of desertion. Mary S.
Simmons subsequently contracted a marriage
with one Edward O. Russell, with whom she
is now living.
"During the month of July, 1916, the said
Mary S. Russell, formerly Mary S. Simmons, en-
tered upon the premises described in full in the
declaration annexed to the writ in this action,
<>ut and removed grass therefrom, and under-
took to enter and occupy the buildings thereon.
"John W. Simmons remarried after the di-
vorce decreed him, and was living with his wife
im the premises at the time of his death. The
widow has administered the estate, her first
and final acconnt having been filed and aliowed
by the judge of probate of said Knox county.
Mrs. Simmons is not now in possession of the
premises, she having rtmoved therefrom shortly
after the death of her husband."
The plaintiffs' attorney claims that the de-
fendant's interest tn the life estate was ex-
tinguished: (1) by desertion and subsequent
remarriage; or (2) by abandonment of the
premises; but we are unable to adopt either
view.
[1] The testator made life tenants of bus-
band and wife; the language used created a
life tenancy In one as well as in the other,
the husband by name, the defendant, by des-
ignation as "bis wife," fixing her Identity
as firmly as If ber Indlvidtial name had been
used Instead of the words employed by the
scrivener, and no other construction Is pos-
sible from reading the whole will. The case
Is unique; nevertheless, the principles in-
volved In its solution are well settled.
From the agreed facts It appears that tbe
defendant deserted ber husband and cotenant
some 23 years prior to tbe assertion of her
present claim to the premises, and that her
husband thereupon, for the cause of deser-
tion, divorced her.
[2] In the absence of a decree affecting
her property rights in the divorce proceed-
ings her interest as a life tenant in the prop-
erty involved in the suit remained unaffected
by tbe decree of divorce. Such decree ter-
minated the marriage relation. The proper-
ty rights of the bnsband prior to the divorce
became his individual property after tbe di-
vorce, and the separate property of the wife
became her individual property. As to con-
veyances to them both, each holds tbe legal
title to one-half under such circumstances.
5 R. 0. L. 862, U I* R, A. (N. S.) 103.
[SI Tbe property rights of tbe parties are
not affected by the decree imless they are
brought l>efore the court In some appropriate
manner. Id. See Carey v. Mackey, 82 Me.
516, 20 AtL 84, 9 L. R. A. 113, 17 Am. St
Rep. 500.
[4] As to remarriage, we are persuaded
that, since the conveyance was to her as an
individual, she bad the right, divorce baving
been had, to remarry, and that such mar-
riage did not affect ber rights as a tenant for
life, and cotenant with her former husband.
Nor does ber remarriage and resumption of
possession accompanied by her second bus-
band jeopardize her rights any more than
the remarriage and occupancy of the proper-
ty by ber first husband and his second wife
affected his rights. The terms of the will In-
dicate no barrier to such act on the part of
either, nor does tbe will prohibit the defend-
ant taking possession the day her hust>and
died, and, if unmarried, remarrying imme-
diately. It Is dear tliat anything lawful not
prohibited by the wiU, the life tenant may
legally do.
Abandonment:
[S] The same elements enter Into the ctm-
sideration of counsel's claim that the "de-
fendant's life estate was extinguished by
abandonment," and our conclusion is reached
from a study of the same facts, and neces-
sarily so. The defendant did abandon her
husband and her marital relations, and in-
tended to, but did she at the same time In-
tend to abandon ber property rights? That
question must be answered clearly by the
facts in the case, before tbe plaintiffs may
prevail, and, as found in the claim to de-
sertion and remarriage, we look in vain in
the record to discover satisfactory evidence
of an intention <» her part to abandon ber
interest tn the real estate. The plaintiffs In-
sist that leaving the property in the sole
possession of her husband for 23 years, and
making no claim during the period, is conclu-
sive ui>on the question of abandonment, and
dte the following cases as decisive in favor
of their position.
"Abandonment is the relinquishment of a
right, the giving up of something to which one
is entitled — it must be by the owner — without
being pressed by any duty, necessity, or utility
to himself, but simply because he desirea no
longer to possess the thing." Middle Creek Ditch
Co. v. Henry, 15 Mont 558, 39 Pac. 1054, 1058.
"To constitute an abandonment of a rigbt
there must be a dear, unequivocal, and decisive
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DOHERTT T. RUSSELL
307
act of the party, diowlng a determinaUon not to
have the benefit intended." Banks v. Banks, 77
N. C. 188.
"There mast be not only an intention to aban-
ilon, but an actual abandonment" Stevens v.
.Vorfolk. 42 Conn. 377 ; Hickman t. link, 116
Ma 123, 22 S. W. 472.
"A seisin once acquired is presumed to con-
tinne until it is shown that there has been an
ouster or disseisin^or an abandonment." iSmitn,
Adm'r, v. Booth Bros. Hurricane Isle Granite
Co.. 112 Me. 297, 92 AU. 103.
And we adopt the citations as authority
here, and concur in the conclusions as being
the settled law.
[8, 11 It is not questioned tliat abandon-
ment includes both the intention to abandon
nnd the external act by which the intention
is carried Into effect Cyc. vol. 1, p. 4 ; Liv-
ermore v. White, 74 Me. 452, 43 Am. Rep.
600. In determining whether one has aban-
doned his property or rights, the intention is
the first and paramount Inquiry; there can
be no abandonment without the Intention to
abandon. 1 R. C. L. 5. An Intention to aban-
don will not be presumed, and the burden of
showing an abandonment rests upon the one
who asserts it 1 Qyc. 7. See Adams v. Hodg-
klns, 109 Me. 361, 84 Atl. 630, 42 L. R. A.
(N. S.) 741; Batchelder v. Robbins et al., 96
.Me. m, 49 AU. 210; McLellan v. McLellan,
114 Me. 242, 95 Atl. 1025. It wUl not be said
us matter of law that an absence from the
laud for any qpedfied time amounts to an
abandonment, even though such a fact might
be strong evidence of abandonment 1 R. 0.
U 7, 133 Am. St Rep. 903, note.
Nounser is not of Itself sufficient to show
an abandonment of a right ; nor will neglect
for mere than 20 years to assert a title to an
undivided Interest In land, by one who has
a valid title, operate as an abandonment,
where there Is no adverse possession. 1 Qyc.
1). 6; Great Falls Co. v. Worster, 15 N. H.
412; Llvermore v. White, 74 Me. 452, 43 Am.
Rep. 600; Adams v. Hodgklns, supra. -Words
and Phrases (2d Series) p. 8; 1 C^c: 1975.
[I] Was there adverse possession? After
divorce the former spouses may ordinarily,
bold adversely to each other. 1 R. O. L. 756,
and cbses cited. Mr. Sluun(»is, the husband,
occupied the property just the same after the
separation as before. He occupied the whole
property in d^endant's absence, as he Itad
a right to do. Having the right to occupy
the whole, what was there left to hold ad-
versely, what part did he select and deter-
mine to hold in hostility to the defendant's
rights? What could he add to his prior hold-
ing and right of occupancy 7
It is difficult to see what new right or
privilege he could assert or enjoy imless it
were the right to live without the society of
the defendant aud that she had accorded
him. He made no claim even to additional
rights, and performed no act which may be
said to be In hostility to the defendant's title,
except to secure a divorce and remarry, and
these alone are not sufficient to establish ad-
verse possession.
[(] It is well settled that a life tenant can-
not, by his declaration, acts, or claims of a
greater or different estate, make it adverse
so as to enable himself or those claiming
under him to Invoke the statute 1 Cyc.
1057, and cases dted.
[10] All statutes of limitations are based
on the theory of laches, and no laches can
be imputed to one who has no remedy or
right of action ; and to hold the bar of the
statute could mn against the title of a per-
son so circumscribed would be subversive of
justice, and would be to deprive such person
of his estate without his day in court Met-
tler V. Miller, 129 lU. 630, 22 N. B. 529.
It is not questioned that one cotenant may
oust the others, and set up an exclusive right
of ownership In himself, and that an open,
notorious, and hostile possession of this char-
acter for the statutory period will ripen into
title as against the cotenants who were oust-
ed. 1 R. C. L. 7. See Soper v. Lawrence,
98 Me. 277, 56 AU. 90S, 99 Am. St Rep. 397,
quoting Richardson v. Richardson, 72 Me.
409.
[Ill In Mansfield v. McOinniss, 86 Me. 118,
29 Atl. 956, 41 Am. St Rep. 532, an action
under the statute by one tenant in common
of an undivided tract of land against a co-
tenant for cutting trees upon the land, with-
out giving the statute notice, the defendant
claimed to have disseized the plaintiff, and
thus to have acquired a title to the whole
tract by an adverse possession for more than
20 years, the court say:
"As I>etween cotenants, evidence of long con-
tinued, visible, uninterrupted and even exclu-
sive occupation by one cotenant, is not enough
to bar the rights of the other cotenants. There
must be evidence from which an ouster, a put-
ting out and a keeping out, of the other co-
tenants, can be Inferred."
No such evidence appears in the case stat-
ed.
[1 2] It is therefore the opinion of the court
that tile defendant has not abandoned her
rights as life tenant of the demanded prem-
ises, nor has she been deprived of the same
by disseizin or adverse xwssession. It fol-
lows that the plaintiffs as remaindermen are
not Justified in asserting their claim upon
the reasons set up, for the right of action of
the remaindermen or reversioner does not
accrue until the death of the tenant for life.
1 R. a L. 743 ; Hooper v. Leavltt, 109 Me.
70, 82 Atl. 647.
Judgment for the defendant
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101 ATLANTIC REPORTER
(Pa.
(257 Pa. 196)
HBNSOUKB et aL r. MOORB et aL
(Sapreme Court of PennsylTania. March 19,
1917.)
1. CONTBACTS <&=»117(4, 6) — Rbbtbaint op
Trade — General ob Pabtial Rkstbaint —
Validity.
In this state theie is a distinction between
contracts in general restraint of trade cover-
ing the entire country and those in partial re-
straint of trade covering only a small area;
and contracts in general restraint of trade are
void, while those in partial restraint of trade are
valid if reasonable.
[Ed. Note.— For other cases, see Contracts,
Cent Dig. §S 559, 560.]
2. CoNTBACTs <3=»116(7)— Rbstbaikt or Tbaob
—Invalidity.
A contract granting the ezclasive right to
manufacture and use a patented apparatus, and
providing that upon surrender of license the li-
censee would not thereafter engage in manufac-
turing or selling the same or any competing ma-
terial in the United States, was an unreasonable
restraint of trade.
[Ed. Note.— For other cases, see Contracts,
Cent. Dig. § 552.]
3. CONTBACTB «=»116(1)— RBSTaAIKT OF TEADK
— Engaging in Business.
A contract which attempts to restrain a
party from engaging in a business which has
previously been open to him in common with
the general public is unreasonable, and such re-
striction will not be enforced by the courts.
[Ed. Note.— For other cases, see Contracts,
Cent Dig. K 542, 543, 545, 546.]
4. CoNTSAOTB 4=>117(8)— Rbstbaint OF Tbadb
— Timk.
Such contract was also unreasonable in that
the restriction on the licensee, being unlimited
as to time, extended the restraint fartlier than
was necessary for the reasonable protection of
the licensor.
[Ed. Note. — For other cases, see Contracts,
Cent Dig. { 566.]
Appeal from Court of Common Pleas, Phil-
adelphia Coonty.
BUI In equity for an injunction by Brnno
Henschke and Karl Ersel, copartners doing
business under the name of Haensel & Co.,
against Eklgar B. Moore and others. Injunc-
tion awarded, and defendants appeaL Re-
versed.
Argued before BROWN, C. J., and POT-
TER, MOSCHZISKER, FRAZEIR, amd WAIr
LING, JJ.
John O. Johnson and Charles H. Edmunds,
both of Philadelphia, and M. H. Regensburg-
er, for appellants. Henry J. Scott, of Ptiila-
delphla, for appellees.
POTTER, J. The form of the bUl fUed by
complainants in this case indicates that they
sought to restrain the infringement of certain
letters patent oil the United States granted
to Oswald Hansel for an improvement in ap-
paratus for feeding horsehair from a bundle
to a wrapping device. If that were In fact
the issue involved, we would be without Ju-
risdiction to determine it, as the infringe-
ment of a patent is a question exclusively for
consideration by the federal courts. The real
controversy here turned, however, upon the
force of a contract entered into concerning
the use to be made of certain machines em-
bodying the said invention, and no rights arti
involved except such as arise out of the con-
tract.
It appears that on February 21, 1913,
Haensel & Co., the plaintiffs, entered into a
written contract with the defendant Edgar
B. Moore, "acting for himself and bis undis-
closed associates," whereby they granted to
the said defendant, in consideration of his
agreement to pay certain royalties, the sole
Bind exclusive right to manufacture and use
"an apparatus for feeding horsehair from a
bundle to a wrapping device," which was
protected by letters patent of the United
States owned by plaintiffs. Provision was
made for the cancellation or surrender of the
license under certain circumstances, with, a
stipulation that in the event of cancellation
or surrender **the licensee will not thereafter,
either directly or indirectly, engage In the
business of manufacturing or selling the same
or any competing material In the United
States." This statement is not clear. The
license was for the use of a machine, and the
language would naturally imply an engage-
ment not to manufacture or sell any such ma-
chines, bat it is conceded that what was in-
tended was an engagement not to manufac-
ture or sell horsehair yam or thread similar
to the product of the machine, or which would
compete therewith. As thus understood, we
have, then, a contract for a license to manu-
facture and use a machine, with a provision
that. In case of surrender of the license, the
licensee shaU be prohibited from making or
selling, not the machines which were protect-
ed by the patent, but any horsehair yam
which would compete with the product of the
machine. The court below held that com-
plainants were entitled to the relief they
sought Exceptions were dismissed, and a
final decree entered by which the defendants
were enjoined "until the 7th day of March,
A. D. 1928 (the expiration of the patent),
from making or selling, directly or indirect-
ly, endless horsehair yam or doth made
therefrom similar to that under the patent
of the complainants, as set forth in the bill
of complainants filed in this cause, and the
manufacture and sale of any competing end-
less hair yam and cloth made therefrom."
An accounting for profits arising out of the
manufacture and sale of hair yam or cloth
made therefrom since September 30, 1914,
was also ordered. Defendants have ai^ieal-
ed, and their counsel contend that the cove-
nant by which the licensee was bound. In the
event of the surrender of the license, not to
manufacture or sell anywhere In the United
States at any time material similar to that
which was the product of the machine de-
scribed in the patent was a contract in re-
ttssFor otber cues see Mms toplo ana KSY-NUUBSR lo all Key-Numbered Plgeeu and Indexes
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henschkb: v. moobe
809
stralnt of trade, which a court of equity will
not enforce. In a late text-book discussion
of the subject, 6 Ruling Case Law a915) 785,
It is said:
"The doctrine relatlDS to contract* In restraint
of trade appears to have undergone diatinctlTe
rtases of transformation or deTeI<vment Ao-
cording to the early common law of ITngland, an
agreement in restraint of a man's right to exer-
cise his trade or calling was void as against pub-
lic policy. • * • Although the courts con-
tinned to treat contracts in general or total
restraint of trade as void, they began to enforce
contracts in partial restraint of trade provided
such contracts were not unreasonable. The
elassiScation of contracts into those which are in
{eneral restraint of trade and those which are
in partial restraint of trade seems to have been
made for the purpose of distinguishing between
restrictive agreements covering the entire conn-
try and restrictive a^eements covering a small
area. This distinction is still adhered to in
some jurisdictions. But, as will he seen, many
of the courts have, in view of changed condi-
tions, abandoned the rule that contracts in gen-
eral restraint of trade are necessarily void.
In its place they have substituted the more flex-
ible rule that contracts in unreasonable restraint
of trade are void, while contracts which impose
a reasonable restraint upon trade are valid.
The tendency of modem decisions is to adopt
this rule as the one governing the subject."
[1] Our Pennsylvania cases follow the dis-
tinction between contracts in general re-
straint of trade and those in partial restraint
In the former case we have held the restric-
tion to be void, and in the latter that it
might be sustained if reasonable. The de-
cision in Monongahela River Ccmsolidated
Coal ft Coke Co. v. Jutte, 210 Pa. 288, 69 Atl.
1068, 106 Am. St. Rep. 812, 2 Ann. Cas. 951,
was dted by the court below, and is relied
npon by both parties to this appeal, as de-
fining the present state of the law upon the
subject It was there said (210 Pa. page
802, 59 AU. page 1093 [106 Am. St Rep. 812,
2 Ann. Gas. 951]):
"When a contract is presented which In some
degree restrains trade, we do not at once decide
that it is void as against public policy, but we
go further and inquire, is it limited as to space
or time, and is it reasonable in its nature?"
Mr. Justice Dean then called attention to
the facts that the contract there under con-
sideration was limited as to time, ten years,
limited as to e^mce, the immediate territory
adjacent to three navigable rireni, and their
tributaries, and related to the sale of the
good will of a business. Be expressly gave
as one reason for enforcing the contract that
"the time was not an indeflnite period as In
some of the cases."
[2] In the case at bar the complainants do
not expressly aver a breach of the covenant
contained in the seventh paragraph of the
contract in which the licensee agrees that In
the event of the surrender of the license he
will not "engage in the business of selling the
same or any competing material in the United
States." The only sentence in the bill that
can be construed to refer to that covenant is
the averment that "respondents are continu-
ing to take orders for and are mannfacturing
and have delivered large quantities of cloth
containing said hair yam of the exact ap-
pearance as that made and sold heretofore
by respondents under your orator's patent"
Yet the court below, without reference to the
prayers of the bill that infringement of plain-
tlifs' patent be restrained, and for an account
and award of damages for such infringement,
has considered the bill as if it had been filed
to enforce the contract not to manufacture
and sell material similar to that which was
to be produced on the machine described in
the patent The llcoisee was entirely within
his rights in surrendering the license. The
testimony shows that the machines described
in the complainants' patent would not pro-
duce hair yam which was satisfactory to de-
fendants. That being the case, was the re-
striction reasonable which prevented the H-
oensee from making hair yam upon some
other machine, after surrendering his license
under complainants' patent? We are clearly
of the opinion that it was not Hair yam,
and hair cloth made therefrom, were at the
time old and well-known products long in
public use. The license granted by complain-
ants was merely for the use of a machine,
and it did not apply at all to the hair yam
which was the product of the machine. The
license covered only one method of making
hair yam. Other methods which did not in-
fringe the claims of the patent were open to
the public. For the use which was made of
the machine complainants were compensated
by the royalty. When the license was sur-
rendered, complainants received everything to
whidi they were entitled. They bad their
patent then in their own hands and could use
It themselves, or license others to use it
There was nothing to justify them in seeking
to restrain defendants from engaging in the
business of manufacturing hair yam by the
use of any machine which did not infringe
their patent This transaction is not proper-
ly to be compared with the sale of a business
in which there is an agreement upon the part
ot the seller not to compete with the pur-
diaser for a limited term. To do so In such
a case would be a breach of faith, as it would
d^redate the value of the property or busi-
ness sold. A case analogous to the present
one would be that of the sale of a business
in consideration of the payment of a yearly
sum as compensation, coupled with a provi-
sion that iQ case the purchaser exercised his
right to discontinue the business, he should
never be allowed to engage in the same or a
similar business at any time or any place.
Sudi a contract in restraint of trade would
be clearly unreasonabla So in the present
case IS the attempt to restrain defendants
from doing something which they were at
perfect liberty to do before the granting of
the license, that is, manufacture hair yam by
the use of a machine whldi does not infringe
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101 ATLANTIC REPORTER
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plaintiffs' patent Any restrlctlcm wblcb pre-
vents them from doing the same thing after
the surrender of the license which they In
common with the public were at liberty to do
before taking a license for the use of plain-
tiffs' machine Is palpably unreasonable. Such
a requirement Is not at all necessary for the
proper protection of the rights of the plain-
tiffs, and It Is oppressive to defendants.
[3] The restriction here Is also unreason-
able In that it Is unlimited as to time. The
court below endeavored to overcome this
fault by enjoining defendants only during
the balance of the term of plaintiffs' patent.
But here again we must repeat that the
patmt, which was for a machine, did not ap-
ply to the subject-matter of the restriction,
wblidi was the manufacture and sale of hair
yam. The only thing to which plaintiffs had
a right to protection was the subject-mat-
ter of their patent, and when the restriction
went beyond that, and attempted to restrain
defendants from enga^g In the manufacture
and sale of haircloth, a business which had
been previously open to them In common
with the general public, the restraint was un-
reasonable. In Oregon Steam Nav. Co. v.
Wlnsor, 20 WaU. (87 U. S.) 64, 22 L. Ed. 315,
Mr. Justice Bradley said:
"It is a well-settled rule of law that an agree-
ment in general restraint of trade is illegal and
void; but an agreement which operates merely
in partial restraint of trade is good, provided
it be not unreasonable and there be a coDBidera-
tion to support it. In order that it may not be
unreasonable, the restraint imposed must not be
larger than is required for the necessary protec-
tion of the party with whom the contract ia
made. A contract, even on good consideration,
not to use a trade anywhere in England, is held
void in that country, as being too general a re-
straint of trade; but a contract not to use a
trade at a particular place, if it be founded on
a good consideration, and be made for a proper
and useful purpose, is valid. Of course, a con-
tract not to exercise a trade generally would be
obnoxious to the rule, and would be void."
In Union Strawboard (Company v. Bonfield,
1»3 111. 420, 61 N. R 1038, 86 Am. St Rep.
346, the contract was in connection with the
sale of a business, and a reasonable restric-
tion was Justified, but it was there said:
"The courts will not enforce any contract
n-bich excludes a party generally from following
any lawful trade or hnsiness beneficial to the
community and to him."
In Lanzlt ▼. J. W. Sefton Mfg. Co., 184
IlL 326, 66 N. a 893, 75 Am. St. Rep. 171,
which also Involved the sale of a business, it
was held that a contract in restraint of trade
throughout the United States was unreason-
able and void, and also that it could not be
divided so as to apply to a single state only,
as such a contract would also be void.
[4] In the case at bar the contract in re-
straint of trade, being unlimited as to time,
and as to space extending over the entire
country, must be regarded as extending the
restraint further than is necessary for the
reasonable protection of the covenantee. Ref-
erence to the natare and subject-matter of
the restriction makes its unreasonableness
more clearly apparent As we have already
indicated, payment of the royalty was full
compensation for the use of the patent and
as the plaintiffs contributed nothing bat the
patent there was no consideration whatever
to support that portion of the agreement
which bound the licensee after the surrender
of the license to refrain from the manu-
facture, by methods which did not infringe
plaintiffs' patent of an article of commerce
in common use. Such a restriction upon the
rights of the licensee was in its very nature
unreasonable and v(dd.
Nor is there any merit In tbe suggestion
that plaintiffs were entitled to relief in or-
der to protect trade secrets. The c(mtract
had no relation in any way to trade secrets.
It related solely to the use of a patented
machine, the specifications of which are a
matter of public knowledge and record. To
secure a valid patent the law requires the
specification to be plain and clear, and to
describe the invention in such a manner as to
enable the public to practice it from the
specification alone. There was therefore no
room in this case for the addidon of any
trade secrets to make the alleged Inv^itiou
workable.
Holding, as we do, that the contract in
question is an illegal restraint of trade, and
cannot be enforced in a court of equity, the
question whether the relief sought should be
confined to the single defendant Edgar B.
Moore need not be considered.
Of the 44 assignments of error, all except
the last one are to the dismlsBal of various
exceptions filed by defendants to the flndlngs
of fact and conclusions of law of the trial
Judge. Witliont disposing specifically of
tbese assignmoits, It is sufficient to say that
the forty-fonrth, which is to the final decree.
Is sustained, and the decree of the court be-
low is reversed, at the cost of the app^eea.
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Pa^
m RE TABEB'S ESTATK
811
(ZG7 PL SOS)
HENSOHKB et aL r. MOORE et aL
(Supreme Court of PennsylTania. March 19,
1917.)
Appeal from Conrt o< Commmi Pleaa, Phila-
delphia County.
Bill in equity by Bruno Henschfce and Karl
Ersel, copartners doin^ business under the name
of Haensel & Co., against Edgar B. Moore and
others, doing business under the name of E. B.
Moore & Co. From a decree awarding an in-
junction, defendant H. R. Sack appeals. Re-
Argued before BROWN, C. J., and POTTER,
MOSCHZISKER, FRAZER, and WAL-
LING, JJ.
Julius C. Levi, of Philadelphia, for appellant.
Henry J. Scott, of Philadelphia, for appellees.
POTTER, J. This is a separate appeal by H.
R. Sack, from the same decree which was
brought before us in the appeal at No. 297, Jan-
aai7 term, 1916, 101 Atl. SOS. The opinion
which was there filed is condusiTe of the only
questi(»>s which cull for consideration here. Fur
the reasons therein set forth, the decree of the
conrt below is reversed, at the cost of the ap-
pellees.
<1S7 Pa. 81)
In re TABER'S ESTATE.
Appeal of OIRARD TRUST CO.
{Supreme Court of Pennsylvania. March 12,
1917.)
Taxation «=3ST8(1) — Inhebitancb Tax—
Propebty Subject.
Where the colUiteral heirs of a decedent
contested her will and obtained a settlement
whereby they received more than two-thirds «rf
the estate and whereby it was agreed that a cer-
tain fee be paid to counsel for the proponent,
the amount received in settlement, including
the amount of its fee, was subject to a collateru
inheritance tax.
[For other cases, see Taxation, Cent.Uig.{ 1700]
Appeal from Orphans' Court ; Philadelphia
County.
The Glrard Trust Company, executor of
the estate of Augusta Taber, deceased, ap-
peals from a decree dismlsslns exceptions to
adjudication in the estate. Afflrmed.
Argued before BROWN. C. J., and MES-
TBBZAT, POTTER, STEWART, and FRA-
ZER, JJ.
Franklin S. Edmonds and Howard Schell
Salter, both of Philadelphia, for appellant
Edwin S. Ward, of Philadelphia, and Francis
'Sbunk BiQwn, Atty. Gen., for the Common-
Avealth.
BROWN, C. J. Augusta Taber died Jan-
•nary 15, 1909, unmarried and without is-
sue. Soon after her death application was
made to the register of wills of Philadelphia
county for admission to probate of what pur-
'ported to be her last will and certain codicils
thereto, In which the Glrard Trust Company
was named as executor. First cousins of the
-decedent objected to the probate of these
pnijers, on the ground that she was of on-
sound mind when she executed them, and an
issue devlsaTit vel non was directed to the
court of common pleas No. 5 of the county of
Philadelphia. Shortly before the date fixed
for Its trial the parties Interested In the con-
test agreed. In writing, to a compromise, by
the terms of which the contestants were to
receive $60,589.68, or more than two-thirds
of the estate, which had been bequeathed
largely to charities. In addition to this It
was agreed that the sum of $7,500 should be
paid to coimsel as compensation for profes-
sional services rendered to the proponent of
the wllL In pursuance of this agreement a
verdict was taken sustaining it, and letters
testamentary were duly issued to the appel-
lant At the audit of its accoimt which
showed that the estate amounted to $89,915.-
37, tlie commonwealth claimed collateral in-
heritance tax on the sum of $60,589.68 to he
paid to the contestants of the will and ood-
Idls, as well as on the sum of $7,500 to be
paid as counsel fees under the terms of the
agreement of settlement The auditing judge
allowed both of these claims, and, from the
decree of the court in banc sustaining him,
the executor of the testatrix has appealed.
As Augusta Taber was unmarried, and
left neither father nor mother nor lineal de-
scendants, there became due to the common-
wealth a tax "of $5 on every hundred dollars
of the clear value" of her estate. No matter
how It passed — ^whether by will or under the
Intestate laws — It was liable to this tax. If
there had been no contest over the will, the
tax would have been payable; if those who
contested It had succeeded in setting It aside,
they would have taken under the Intestate
laws, but the tax would have been payable
before any one of them could have received
a dollar from the estate. In the face of this,
the contestants of the will contend that, be-
cause the estate has been partitioned by
them and the legatees under an agreement
as to how it shall be divided, the portion al-
lotted to them — more than two-thirds of It —
shall be exempt from the payment of col-
lateral Inheritance tax. If they had received
from the testatrix legacies amounting to
$60,589.68, would they have pretended that
the commonwealth had no claim for collat-
eral Inheritance tax on so much of her es-
tate? Or, if that sum had been coming to
them under the intestate laws, would they
have questioned Its liability to this tax?
Surely not; and yet they seek to escape the
tax because an amicable division of the es-
tate has been made by them and the benefi-
ciaries named In the wllL The estate which
has been so partitioned Is the one of whidi
Augusta Taber died seised, but of this her
cousins seem to be blind, for, if they would
see, they would know that the act of May
6, 18S7 (P. L. 79), In plainest terms, makes
tike clear value of the whole estate liable to
collateral inheritance tax. The process by
which the attempt is made to prevent the
state from getting what is so manifestly due
>Fer other oaaas SM lam* tAplo and KET-NUUBSR In all Ker-Nombarsd DlSMta and Indazw
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312
101 ATLANTIC REPORTER
(Pa.
to It Is as offensiTe to reason as it Is to the
statute.
It Is bardly needful to say that tbe three
cases upon which reliance seems to be placed
as authorities for disallowing the claim of
the commonwealth for the tax on $60,589.68
are without application. In Pepper's Estate,
1.59 Pa. 608, 28 Atl. 353, the sum which was
held to be exempt from collateral Inheritance
tax had never been received by the legatees,
but was paid by the executor directly to a
son of the testator in settling with him when
he withdrew a contest over the will, the suc-
cess of which would have given him the en-
tire estote of Ills father, free from collateral
inheritance tax, for he was in the exempt
class under the act of 1887. If the whole of
his father's estate would have been exempt
from taxation had it passed to the son, either
by will or under tbe intestate laws, the same
was true of any portion of it which he took
in settlement of a claim wliicfa, in effect, was
that of a sole lineal descendant of a father
who had died Intestate. This is what that
case decided. In Kerr's Eistete, 159 Pa. 512,
28 Atl. 351, EUzabeth S. Palmer left all of
her property by will to Maiy Jane Kerr, a
friend. Mrs. Palmer's heirs at law and next
of kin began proceedings to contest the will.
Mrs. Kerr died during their pendency, and
the contest was subsequently compromised
by her heirs at law and next of kin entering
into an agreement by which they withdrew
all daim to Mrs. Palmer's personalty and to
the one-half of her realty. In assessing the
collateral inheritance tax upon Mrs. Kerr's
estate the register of wills declined to make
any deduction by reason of what had been
surrendered in the Palmer estate. The col-
lateral inheritance tax had been paid upon
the entire estate of Mrs. Palmer, and only so
much of it as remained after the recognition
of the righto of those who claimed under the
intestate laws became the estate of Mary
Jane Kerr, her beneficiary. It was therefore
held that no more than this was toxable as
her estate. The amount held to be exempt
from tax in Hawley's Estote, 214 Pa. 625, 63
Atl. 1021, 6 Ann. Gas. 672, was the sum paid
to the employes of the decedent, who insisted
that his will, the validity of which his heirs
denied, contained a provision In the nature
of a contract They resisted the attempt to
set the instrument aside, and a settlement
was made with them as creditors, after the
orphans' court had determined what amount
was due to each of them. In holding that
what they so received was exempt from tax,
Mr. Justice Fell said:
"They claimed that the writing was a valid
will and that the provision for their t>enefit was
in discharge of an obligation of tbe decedent.
Tbe beira denied the validity of the writing
as a will because of the want of teBtamentary
capacity. A settlement was made in which the
employes were treated as creditors and allowed
a part of their demands. This was deoriy a
compromise of a doubtful right to avoid litiga-
tion, by which tbe heirs parted with a portion
of the estate in the purchase of peace. The
employes took nothing under the will, and the
money paid thetp was not subject to tax, unless
the whole arrangement was collusive."
[2] As to the liability to tox of the $7,500
to be paid to counsel, it need only be said
that the parties to the agreement as to how
the estate should be divided had no more
right to set that sum aside for the purpose
stated, at the expense of the commonwealth,
than they had to take $60,589.68 from tbe es-
tate, exempt from collateral inheritance tax.
An executor is not bound to defend his testa-
tor's will. If he undertakes to do so, It must
be as the agent and In the Interest of those
benefited by his action. He must look to
them for expenses Incurred in the contest
over the will, and may not charge the same
to the estate unless it is benefited by the pro-
ceeding. Terkes's Appeal, 99 Pa. 401. No
benefit resulted to the estate of the testatrix
In the case before us through the proceeding
to contest her will ; but it did largely benefit
her next of kin.
Appeal dismissed, and decree affirmed at
the costs of the appellant.
(2B7 Pa. 88)
WEIL et aL r. NORTHWESTERN PA.
RT. 00.
(Supreme Court of Pennsylvania. March 12,
1917.)
Railboads *=s)195(2) — Bondholdem' Cojc-
MITTEB— SEBVICK OF ATTOBNET — LlABIUTT
OP Corporation.
In a suit for counsel fees for services ren-
dered a bondholders' committee which had ef-
fected a reorganization of a railway, where
it appeared that the contract for services was
the contract of tba committee, and not of the
railway, and where thd jury found that the
contract had not hesa subsequently adopted by
the railway, plaintiffs could not recover.
[Ed. Note.— For other cases, see Railroads,
Cent Dig. { 656%.]
Appeal from Conrt of Common Fleaa,
Crawford County.
Assumpsit for counsd fees by A. Leo W^
Charles M. Thorp, and S. Leo Ruslander,
partners doing business under the firm name
of Weil & Thorp, against the Northwestern
Pennsylvania Railway Company. Judgment
for defendant motions for new trial and for
Judgment n. a v. denied, and plalntlifs ap-
pe&L Affirmed.
The following is the opinion of Prather.
P. J., in the court below:
"Assumpsit for counsel fees. From the rec-
ord it appeared that tbe defendant company waa
in effect tbe result of the merger of two street
railway companies. For tbe purpose of eJIect-
ing such merger and protecting their respective
bondholders and lien creditors, on December 13,
1910, a written agreement was entered into by
a so-called bondhoTden* protective committee, of
the first part and George A. Qaston, of the
second part, in which it was recited that the
committee had come into possession of a large
amount of bonds of the two companies to be
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PaJ
FISCHER T. TATLOB
313
meiSed and tiiat a reoisaniEatloB was in con-
templation. Under the acreement the com-
mittee was to cause forecloaure proceedings to
be proeecuted and become pun^asers of the
property, franchises and assets of the insolrent
traction companies. The committee agreed to
convey and transfer all the property and assets
of the old companies to the new company free
and dear of all liens, incumbrances, and debts,
and the party of the second part agreed to pur-
chase from the committee bonds of the new
company in a large amount. Foredoaure pro-
ceedings were duly had, and on January 14,
1911, the committee became the purchasers of
the property and assets and received a deed
therefor on February 7, 1911. On February 24,
1911, the new orgainization was effected under
the corporate name of the Northwestern Penn-
sylvania Railway Company, and on March 7,
1911, final transfer of all assets was made to
the new company.
On December 13, 1810, the bondholders' pro-
tective committee engaged Weil & Thorp as
attorneys to effect the incorporation of the new
company. The professional services were ren-
dered and the advances made by plaintiff at
the request of and by the direction of the per-
■ODs who composed the committee, aU of whom,
with the exception of plaintiffs and one other,
became directors and officers of the defoidant
corporation upon its organlEation.
^e facts were undisputed that the plaintiffs
were employed by the bondholders' protective
eommittee to perform the services declared up-
on, and that a large part, if not the larger parL
«f such services were performed by virtue of
that employment for the bondholders' committee
prior to the date of defendant company's formal
incorporatioit ; that defendant company never
took any action recognizing or adopting such
•ervices as incurring any liability to the com-
pany ; that the terms of the bondholders' com-
mittee contract wherein it undertook to create_ or
organize a corporation were known to plaintifEs
at the inception of their employment and were
known to Uie company from its organizati(Hi ;
and that the bondholders' committee was still in
full life and activity under said written agree-
ment at the time oi the commencement ot the
present action.
Verdict for defendant and Judgment there-
on. PlalntllTs appealed.
Argued before BROWN, C. J., and MES-
TBEZAT, POTTER, STEWART, and FEA-
ZER, JJ.
L, Pearson Scott, of Pittsburgh, and George
F. Davenport, of MeadvlUe, for appellanta.
Frank J. Thomas, of Meadville, and G. E.
Fauver, for appelle&
FEB CURIAM. In its opinion discharg-
ing the rules for a new trial and for Judgment
for the plaintiffs non obstante veredicto, the
correct conclusion of the learned court below
was that the defendant was entitled to bind-
ing instmctions, for the reasons: (1) The
contract sued upon was not the defendant's
conti&ct and there was not sufficient evidence
of Its adoption of the same; (2) the bond-
holders' committee in its written agreement
undertook to create the defendant company,
and all the circumstances repel any inference
that services were performed upon the credit
of the company; and (3) the plaintiffs were
employed by the bondholders' committee be-
fore the company was created, and the plead-
ings should haTe averred ea<3i employment
and a subseqnent adoption of It by the de-
fendant Though the plaintiffs failed to aver
any such adoption, the question of Its adop-
tion was submitted to the Jnry, whose find-
ing was that It had not been adopted by the
defendant
The asslgmnents of error are therefore
overruled, and the Judgment is aflSnned.
(2n Pa. 132)
FISCHER v. TATLOE.
(Supreme Court of Pennsylvania. March 12,
1817.)
Fbatjd As964(1) — Action — Evinracat— Non-
suit.
In an action In deceit for damages by rea-
son of defendant's fraudulent representations
as to the character and output of a mine induc-
ing plaintiff to buy certain mining stock, a non-
suit was properly entered, where it did not ap-
pear that plaintiff sustained any damage by rea-
son of the parciiase of the stock or that defend-
ant intentionally deceived her by statements
which he knew were not true or which were so
reckless that an inference could be drawn tliat
he knew they could not be true.
[Ed. Note.— For other cases, see BVand, Cent
Dig. {{ 65%. 67, 71.]
Appeal from Court of Common Pleas, Phil-
adelphia County.
Trespass for deceit by Mary F. FlsCher
against William R. Taylor. From a Judg-
ment refusing to take off a nonsuit, plaintiff
apiieals. Affirmed.
From the record it appeared that plaintiff
sued to recover $10,000 as damages by rea-
son of the sale to her by the defendant of
14200 shares of stock of the Ouanacevl Tun-
nel Company at $5 a share. Plaintiff teeti-
fled defendant told her the company owned
and operated a fully developed gold mine,
with ore running from $2 to $21 a ton ; that
it cost $2 to work and mill, and there would
be a net profit of $2 a ton ; that there were
22,500,000 tons of ore thoroughly explored
and blocked out that would yield the company
$50,000,000; that the ore would run $4 a ton
on the average, and it would cost $2 to work
it, and there would be $2 profit ; that it was
working two shifts of people, and there was
new machinery and a new stamping mill,
and a larger mill had been bought and was
on Its way to Mexico to be put In, and there
were thousands of tons of ore on the dump
outside the shaft and outside of the tunnel ;
that these veins alone ttiat were really block-
ed out and thoroughly explored wonld allow
the company to run a lifetime, at least; the
mines would run a lifetime at a large profit
Plaintiff also stated defendant gave her cer-
tain pamphlets and told her the matters in
the pamphlets were true facts ; that he knew
them to be true facts of his own knowledge.
There was no testimony that any of these
alleged representations were untrue except
the testimony of one witness that the mine
was not fully developed. It was not shown
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314
101 ATIiANTIC REPORTER
(P«.
that the defendant knew that the represen-
tations which It was allegred were made were
untrue. There was no testimony to show
what the real value of the stock which the
plalntlir purchased was at the time she pur-
chased it. Other facts appear in the opinion
of the Supreme Court.
The trial judge entered a compulsory non-
snit, wliich the court in banc subsequently
refused to take off. Plaintiff appealed.
Argued before BROWN, C. J., and STEW-
ART, M0SCHZI8KEB, FBAZBR, and WAJO-
lilNO, JJ.
Trevor T. Matthews, of Philadelphia, for
appellant. William T. Connor and John R.
K. Scott, both of Philadelphia, for appellee.
PER CURIAM. This is an acti<» In deceit
for the recovery of damages which the appel-
lant avers she sustained by reason of fraud
practiced upon her by the appellee in induc-
ing her to buy certain mining stock. From
the refusal of the court to take off the non-
suit entered when the plaintiff closed her
case we have this appeal. Our examination
of the testimony has satisfied us that the
nonsuit was properly, entered, and the action
of the court below in refusing to take it off
is sustained for the following reasons given
by the learned trial Judge in directing it to
be entered:
"We do not know but what Mrs. Fischer may
have sold the stock before the company came to
disaster, if it did come to disaster. We do not
know anything about it. There is no evidence
that she sustained any damage at all, but the
thing which influences me in granting a non-
suit Is that there is no evidence that Mr. Taylor
deceived Mrs. Fischer intentionally, that is to
say, that he said something which he knew was
not true, or that be said something so wild and
extravagant and reckless that an inference could
be drawn that be knew it could not be true."
Judgment affirmed.
(2S7 Pa. US)
In re CHAMBERLAIN'S ESTATE.
Appeal of DOOLING.
(Supreme Court of Pennsylvania. March 12,
1917.)
1. OONVEBSIOH 4=915(1) — RSA.LTT—RZQUI-
BITES.
To work an equitable conversion of realty
there must be either a positive direction to sell
or an absolute necessity therefor in order to
execute the will, or such a blending of real and
personal estate in the will as to clearly show
that testator intended to create a fund out of
both real and personal estate and to bequeath
the fund as money.
[Ed. Note. — For other cases, see Conversicm,
Cent. Dig. |i 28, 29, 33-35, 52.]
2. Conversion ®=>16(1) — Discbetiorabt
POWEB.
A bare power of conversion, such as a dis-
cretionary power, will not work a conversion
until exercised.
[Ed. Note.— For other cases, see Conversion,
Cent Dig. S 3&]
8. OonvERBioiT 4=si5Ct) — ^BixiroiKo or Rxal
AND Pebsonax Estate.
The mere blending of real and personal es-
tate without a clear bitent to create a common
fund and to bequeath it as money wHI not oon-
stitute a conversion.
[Ed. Note. — For other cases, see Ccmversion,
Cent Dig. {J 28, 29, 3a-35, S2.1
4. Taxation «=>867(1)— Inhkbitanck Tax—
convkbsion.
A nonresident testator owning personal
property, and owning real estate in tnie state,
bequeathed legacies and made a bequest to a
charitable institution and also made it his rerid-
uary legatee, and provided that if the estate
should be insufficient to meet the bequests, the
deficiency should be deducted from the chari-
table bequest, and gave his executor power to
sell realty in his discretion and to execute deeds
therefor. Held, that the will did not work a
conversion of the realty, so that it was liable
to a collateral inheritance tax in the state.
[Ed. Note.— For other cases, see Taxation,
Cent Dig. | 1681.]
Appeal from Orphans' Court, Philadelphia
County.
John T. Doollng, executor of the will of
Leander T. CSiamberiain, deceased, appeals
from a decree dismissing an appeal from a
decision of the register of wills assessing
a collateral inheritance tax upon the real es-
tate of the decedent Appeal dismissed.
Argued before BROWN, C. J., and POT.
TB2R, MOSCHZISKEfi, FRAZER, and WAL-
LING, JJ.
Henry B. Patton and Howard Lewis Fus-
sell, both of Philadelphia, for appellant
William M. Boenning, of PhiladelpUa, for
the Commonwealth.
WALLINO, J. The question in this case
is. Does testator's will work an equitable
conversion of his real estate? Dr. Leander
T. Chamberlain, a clergyman of the dty of
New York, made his last will in 1909. and
died in 1913, and thereafter the will was
duly probated. It was drawn by testator,
contains 14 paragraphs, and provides for the
payment of his debts and funeral expenses
and for the care of his burial lot, bequeaths
a niece all his personal chattels, makes be-
quests aggregating $65,000, to certain named
religious, benevolent, and scientific organi-
zations; also gives to a certain institute, lo-
cated in Turkey, which he had projected and
which was under his fostering care^ a bequest
of $100,000, and makes the Institute bis re-
siduary legatee. The will further provides
that, should testator's estate prove Insuffi-
cient to meet all of the devises and bequests,
the deficiency to be deducted from the $100,-
000 bequest
When the will was made the testator's per-
sonal estate amounted to about $30,000, and
at his death to about $10,000; and he was
the owner of real estate situate in Colorado.
Massachusetts, and Pennsylvania. Dr. Cham-
berlain's income was sufficient to meet hla
personal expenses, and he also derived a
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COSMOS BUIIiDIKa A LOAN ASS'N ▼. OOURTENAT
815
small revenne from the sale of books of
n-hicb be was the author. Prior to the mak-
ing of his will, and as a result of the San
Frandsoo fire, he had suffered financial loss-
es from shrinkage of the value of stocks
tield by him in certain fire Insurance com-
panies. His estate was derived from bis
wife, the late Frances Iiea Ohamberlain, who
died in 1894; and his several charitable t>e-
quests were given largely to perpetuate her
memoir, and to the Institutions in wtilch she
bad shown special Interest Jolm T. Doollng,
Dsq., of New York, was made saia executor
of the will; and authority to sell real estate
was conferred upon him in the following lan-
guage:
"And I hereby grant to and confer on the said
John T. Doollng, full power to sell any or all
of my real estate, either at public or private
•ale, at suc^ time or times, npon soch terma
and for such price or prices, as to him shall
wem best, and upon snch sale or sales to exe-
cute and aeiiver to the purchaser or pnrcbasers
deeds or conveyances in fee simple or any less
estate as the case may be."
[1, 2] The real estate in Pennsylvania was
appraised, for the purpose of collateral inher-
itance tax, at the sum of $62,210; but, as
testator was a nonresident, it is not liable to
such tax unless it retains its character as
real estate. The learned auditing Judge,
and orphans' court, held there was no con-
version, and that the real estate as such was
liable for the tax, from which the executor
took this appeaL
In Hunt's Appeal, 106 Pa. 128, 141, Mr.
Justice Paxson, spealdng for this court, says:
"In order to work a couTersion, there must
be eitlier: First, a positive direction to sell;
or second, an absolute necessity to sell in order
to execute the will ; or ttiird, such a blending of
real and personal estate by the testator in his
wiU as to clearly show tliat he intended to cre-
ate 9 fund out of lx>th real and personal estate,
and to bequeath the said fund as money."
Here there is a discretionary poww of sale,
but no positive direction to selL A l>are
power of sale, such as a discretionaiy iMwer,
will not work a conversion until exercised.
Peterson's Appeal, 88 Pa. 397; Sheridan v.
Sheridan, 136 Pa. 14, 19 Atl. 1068; Darlington
V. Darlington, 160 Pa. 65, 28 Atl. 503. And,
fk» the residuary legatee could elect to take
tlie real estate as such and pay the pecuniary
legades, there might be no atoolute necessity
to sell In order to execute the will here in
question.
[3] Mere blending of real and personal es-
tate without a dear and indubitable intent
to create a common fund and bequeath it as
money will not constitute a conversion.
Llndley's Appeal, 102 Pa. 235. Such blending
will create a diarge upon the land, but to
produce a conversion there must also be an
intent to bequeath the fund so created as
money. As was said by Judge Penrose:
"The question of conversion is to l>e determin-
ed from the will itself, and is not affected by
tlie accidental fact that the personal estate may
prove insnffident for the payment of legades."
Cuiiy's Estate^ 19 PhUa. 92.
Conversion is a matter of intention, and it
most have been in the mind of the testator
when the will was made. The law seems to
be that, "A necessity to sell real estate which
was not foreseen by the testator will not
work a conmston."
[4] The provlalMi in the wUl as to the
abatement of the $100,000 bequest in efFect
makes it a pcut of the residuary estate;
and testator may have antiditated that his
personal estate would ultimately prove suf-
fldent to meet the other legadea. In fact
mdi personal estate had t)een mndi larger
tlian it was when the will was made. Dr.
Cbamt>erlaln may have Intended to dispose of
parts of hia real estate In his lifetime, as
in fact he endeavored to do. There may also
have been other reasons wliy he antldpated
that his personal estate would be Increased
before his death. This case is not mled by
Vanuxem'a Estate, 212 Pa. 815, 61 Atl. 876,
1 U B. A. (N. S.) 400, for there the sale was
expressly authorized for the purpose "of ad-
ministration, distribution or otherwise," lan-
guage not found in the will of Dr. Cliamber-
lain; as therein no reason or object is ex-
pressed for the discretionary power of sale.
Tlie law does not favor a conversion, the
presumption is against it, and in our opinion
the language of the will in question does not
work a conversion of the real estate.
The assignments of error are overruled,
and the appeal is dismissed at the costs of
testator's estate.
(167 Pa. ISS)
COSMOS BUILDING ft LOAN ASS'N ▼.
COUBTBNAT.
(Supreme Court of Pennsylvania.
1917.)
March 12,
Jxn>0UKNT «s»162(4) — DiSOHABOB— IRSTTFFI-
cxENT Affidavit or Detensx.
A rule to show cause why a judgment en-
tered for want of a suffident afiSdayit of defense
should not l>e opened was properly discharged,
where the testimony in support of the petition
for relief was insuffldent to sustain its aver^
ments.
[Ed. Note.— For other cases, see Judgment,
Cent. Dig. t 322.]
Appeal from Court of Common Pleas, Phil-
adelphia County.
Action by the Cosmos Building ft Loan
Assodation against Patrick J. Courtenay.
Judgment discharging a rule to open judg-
ment for want of a suffident affidavit of de-
fense discharged, and defendant appeals.
Dismissed.
Argued before BROWN, O. J., and STEW-
ART, MOSCHZISKER, FBAZER, and WAL-
LING, JJ.
B. H. Locke, of Philadelphia, for appel-
lant. David Bortin, Jacob Singer, and E^man-
i uel Furth, all of Philadelphia, for appellee.
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101 ATIiANTlO REPOBTBK
(Pa.
PEU CURIAM. Tbe Judgment In this
case was entered for want of a suffldent affi-
davit of defense. Shortly after It was en-
tered a rule was granted, upon the applica-
tion of defendant, to show canse why It
should not be opened for reasons set forth In
his petltton for relief from It. The burden
was upon him to support tbe averments of
fact which he made in asking that the judg-
ment be opened, and to negative the aver-
ments of fact contained In the answer to bis
petition. After a very careful review of
what he showed in support of bis aver-
ments, the learned court below concluded
that they had not been supported by suffi-
cient evidence, and the rule to show cause
was discharged. We concur In this conclu-
sion, and the appeal is dismissed at appel-
lant's costs.
(257 Fa. 166)
In re VAN BBIL'S ESTATa In re orTTO'S
BSTATB. Appeal of COMMONWEAI/TH.
(Supreme 0>urt of Pennsylvania. March 12,
1»17.)
Taxation €=»896(6) — Iwheritawcb Tax —
Stocks and Bonds— Deduction.
The amounts paid as a New Jersey transfer
tax on stocks and bonds should be deducted in
appraising the clear value of an estate subject
to collateral inheritance tax in this state, where
such transfer tax is a charge upon the stocks
and bonds, and the value thereof is reduced by
the amount of the tax.
[Ed. Note.— For . other cases, see Taxation,
C^ent Dig. § 1719.1
Appeal from Orphans' Ck>urt, Pblla'del-
phla Cyounty.
Appeals by the Oommonwealtta from de-
cree affirming appraisements of the register
of wills for purpose of settling collateral
inheritance taxes in the estate of Mary Van
Bell, deceased, and In re Estate of Eliza
Otto, deceased. Dismissed.
Argued before BBOWN, C. J., and MES-
TREZAT, POTTER, FRAZER, and WALLr
ING, JJ.
In Van Bell's Estate:
John Hyatt Naylor, Special Deputy Atty.
Gen., and Francis Shunk Brown, Atty. Gen.,
for the Commonwealth. B. W. Archbald, Jr.,
of Philadelphia, for appellee.
In Otto's Estate:
H. Horace Dawson, Deputy Atty. Gen.,
and Francis Shunk Brown, Atty. Gen., for
the Commonwealth. Howard H. Tocum, of
Philadelphia, for appellees.
PER GURIABfl. These two appeals were
argued together. The contention of the com-
monwealth in each of them is that, in ap-
praising the dear value of an estate subject
to collateral Inheritance tax in this state,
tbe sums paid as New Jersey transfer tax
upon stocks and bonds should not be deduct-
ed. Each of the learned courts below held
such deduction proper, and each api>eal is
dismissed with costs upon the following from
the opinion of the president Judge of the or-
phans' court of Montgomery county, which is
in accord with the view of the orphans' court
of the county of Philadelphia :
"The ooUatcrol inheritance tax imposed by
our state is upon the clear value of the proper-
ty or estate passing to the legatee or aev&ee.
The transfer tax of Now Jersey is made a
chai^ on the stocks of its corporations be-
longing to a resident or nonresident passing by
will or intestate law, which must be paid be-
fore they can be transferred by the executor or
administrator. The value of the stock is re-
duced by the amonnt of tbe tax which the execu-
tor or administrator must pay. Its net worth
passes to those who arc entitled to the estate
under the will of this testator. We conclude
that the transfer tax of New Jersey, being a
charge imposed upon the stocks of corpora-
tions of that state owned by tho decedent, s
tax upcm the property, necessary to be paid
by the executors in order to reduce the same to
DOBsession for the purposes of administratioo
and distribution, tho amount thereof was prop-
erly allowed by the appraiser in finding the net
value of the estate liable for collateral inherit-
ance tax."
(2CT Pa. 86)
WILSON v. MITTON.
(Supreme Court of Pennsylvania. March 12,
1917.)
Municipal Corporations «=706(5) — Coixi-
8I0N IN Street— Question for Jury.
In trespass for damages for personal injury
when struck by defendant's horse while endeavor-
ing to cross the street, evidence h«li to sustain a
judgment for plaintiff.
[Ed. Note.— For other cases, see Munidpal
Corporations, Cent. Dig. g 1518.]
Appeal from Ckwrt of Common Pleas, Phil-
adelphia County.
Trespass by May Wilson against John F.
Mitton, to recover damages for personal in-
jury. Judgment for plalatifC, and defendant
appeals. Affirmed.
From the record It appeared that on April
3, 1915, about 11 a. m., the plaintiff, a woman
86 years of age, was walking north on the
east side of Twelfth street, In the dty of
Philadelphia. She Intended to cross Market
street, and when she came to the south curb
of Market street at the east side of Twelfth
street, she stopped on tbe curb a few minutes
until she saw the way was clear. She saw a
west-bound car standing on the northerly
side of Market street and a south-bound
Twelfth street car at the regular stopping
place on Twelfth street north of Market
street She waited until the Twelfth street
car left tbe stopping place and began to cross
Market street. The highway of Market street
at this point is 62 feet wide. At the time the
car left this point she noticed a wagon going
south in the easterly part of the highway of
Twelfth street alongside of the car. Under
the traffic regulations In Philadelphia the
traffic moves southward only, on Twelfth
street, and, when it is moving, i>ede8trians on
the crosswalks are allowed to cross north and
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WASHINGTON t. GULF REFINING CO.
317
south across Market street at the east and
west sides of Twelfth street While the
sonth-bound traffic is moving on Twelfth
street, the east and west-bound traffic on Mar-
ket street la stopped entirely. The plaintiff,
observing that other people were beginning
to cross Twelfth street, and seeing nothing
coming east or west, proceeded. She was
holding an umbrella over her right shoulder,
^yhlch did not Interfere with her view. She
was walking directly on the crosswalk.
When she came to the south-bound track she
looked about again and then saw that the
horse had suddenly been turned from Its
southerly conrse Into an easterly course and
was directly upon her. She was- knocked
down by the horse and severely Injured. It
was snowing at the time. Verdict for plain-
tiff for 13,450, and Judgment thereon. De-
fendant appealed.
Argued before BROWN, C. J., and MES-
TRBZAT, POTTEE, STEWAET, and FRAZ-
BB, JJ.
Wlnfield W. Crawford and Robert P. Shlck,
both of Philadelphia, for appellant Victor
Frey and Augustus Trask Astaton, both of
Philadelphia, for appellee.
PSIR CURIAM. This is a close case, and
the Jury might very fairly have found in fa-
vor of the defendant, not only on the question
of the alleged negligence of Ills driver, but
also cm the contributory negligence of the
plaintiff. Wte are of the Opinion, however,
after an examination of all the testimony,
that both of these questions were for the Jury,
and, finding nothing in any of the assign-
ments of error calling for a reversal of the
>adgment, it is affirmed.
(167 PiL lET)
WASHINGTON v. GULF REFININO 00.
(Supreme Court of Pennsylvania. March 12,
1917.)
HinriciFAi, CosPOBATiONB 4s»706(6, 7) — Coi.-
IJBIOIf OF AUTOVOiBILBS — QUSSTIOH FOB
JtmT— Neouoencb and Contbibutobt Neo-
UOXNCB.
In action by employ^ of ns and electric
eompany for personal injury from a collision
between its auto truck in which he was going to
a fire and defendant's auto truck coming from
the opposite direction, held, on the evidence, that
defendant's negligence and plaintiff's contribu-
tory negligence were questiona for the jury.
[Ed. Note. — For other cases, see Municipal
Corporations, Cent Dig. ( 1518.]
Appeal from Court of Common Fleas,
Montgomery County.
Trespass by Schuyler L. Washington
asalnst the Gulf Refining Company to recov-
er damages for personal injuries. Judgment
for plaintiff, and defendant appeals. Af-
flnned.
It appeared that the plaintiff was an em-
ployfi of the Suburban Gas & Electric Com-
pany, and on October 27, 1914, sustained an
injury to his leg while riding in one of the
company's small automobile trucks to render
assistance at a fire. There was cme seat on
the truck, and this was too small for three
men to sit on comfortably and leave room
for the driver to operate the car. Plaintiff,
who was the last of the three men to get on
the truck, first sat partly on the center of
the seat between the driver and the other
occupant of the car and partly on the tatter's
lap. There was a canvas curtain on the
front of the car with mica squares In front
on a line with the driver's eyea. Plaintiff
testified that from his elevated position on
the seat his head was too high for him to
see through the mica square in the curtain,
and as it was necessary for him to be on the
lookout as the exact location of the fire was
not known, he assumed a seat on the floor
of the truck with his legs hanging over the
ledge of the body of the car, but not extend-
ing out as far as the wheels. His legs were
sufficiently far from the front wheel and ax-
le that had the wheel turned against the
body of the car it could not have touched
his legs or feet.
The defendant's large oil tank truck ap-
proached the gas company's truck from the
opposite direction, and, although it was 8
o'clock and dark, plaintiff and his compan-
ions noticed the defendant's truck when the
two cars were 500 feet apart Although the
evidence was undisputed to the effect that
the small truck approadied on its right side
of the highway and gave ample room for the
large truck to pass, a collision occurred be-
tween the two machines, the left-Mnd wheel
of the defendant's truck striking the hub
cap of the left front wheel of the small truck,
forcing the front axle of the latter from Its
fastenings and pushing it back so that the
wheel or axle pressed the plaintifTs leg
against the t>ody of the small truck seri-
ously injuring it
PlaintifTs witnesses testified that at the
time of the collision their truck was stand-
ing still, while defendant's witnesses declar-
ed that it was in motion and going at the
rate of 16 or 20 miles an hour, and that the
accident occurred as a result of the small
truck turning suddenly to its right before
the two cars had completely cleared each
other.
Argued before BROWN, C. J., and MES-
TREZAT, POTTER, FR^ZE:R, and WALL-
ING, JJ.
O. Townley Larzelere, of Norrlstown, and
Franklin L, Wright and Nicholas H. Larze-
lere, both of Philadelphia, for appellant
Aaron S. Swartz, Jr., John M. Dettra, Sam-
uel H. High, and Montgomery Evans, all of
Norristown, for appellee.
PER CURIAM. We have not been con-
vinced that the learned trial Judge erred in
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318
101 ATDANTIO RiaPORTBR
(Pa.
refusing to take this case from tbe lury.
Under the testimony It was tor tbem to pass
upon the negrllgence of the defendant and
tbe contrlbntory negligence of tbe plaintiff,
and, as 'nothing in tbe third, fourth, fifth,
sixth, and seventh assignments of error calls
for a retrial, the Judgment Is affirmed.
(2o7 Pa. 22S)
SUDNIK V. SUSQUEHANNA COAI. C50.
(Supreme Onurt of Pennsylvania. March 19,
1917.)
Masteb and Skbvaht «s>278(1<9 — Faii.ube
TO FuBNiBH Mink Sxra>FOBTS— Neouoknos—
SUFnCIBNCT OF EVIDXNCE.
In action by miner for personal injury from
fall of the roof of tbe mine alleged to have been
caused by failure to furnish sup^rts after re-
quest therefor, evidence held sufficient to sustain
a verdict for plaintiff.
[Ed. Note. — For other cases, see Master and
Servant, Ont. Dig. { 064.]
Appeal from (;k)urt of (Common Pleas, Phil*
adelpbia County.
Trespass by Charles Sndnlk against tbe Sus-
quehanna Coal Company, to recover damages
for personal injury. Verdict for plaintiff for
$e,0(X), and judgment thereon, and defendant
appeala Affirmed.
Argued before BROWN, 0. J., and STEW-
ART, MOSCHZISKER, FRAZER, and WAI<-
LING, JJ.
W. H. M. Oram, of Shamokln, Henry A.
Gordon, of Wilkes-Barre, and John Hampton
Barnes, of Philadelphia, for appellant Ber-
tram D. Rearlck, of Philadelphia, for aroel-
lee.
MOSCHZISKER, J. The plaintiff recov-
ered a verdict to compensate him for personal
injuries alleged to have been caused by bis
employer's negligence; judgment was enter-
ed thereon, and tbe defendant has taken this
appeal.
The various Issues involved were submit-
ted to the jury in a comprehensive charge,
which is not complained of; but the appel-
lant contends that, on the evidence, it was
entitled to binding instructions, and now
should have Judgment non obstante veredicto.
A careful reading of the testimony has
not convinced us that the case properly could
have been withdrawn from the Jury. When
tbe evidence is viewed in the light most
favorable to tbe plaintiff, as the verdict shows
tbe Jury looked upon it, a mind desiring only
to do Justice betn'e^i the parties might find
therefrom the following material facts: The
plaintiff was a laborer In the employ of the
defendant company. June 24, 191S, while
working In the latter's colliery, he was injur-
ed by tbe fall of a large piece of hard ma-
terial from the roof Immediately over the
place where he was mining. The dangerous
condition at that point was In no sense ob-
vious, and, bad tbe roof been supported by
timbers placed thereunder in tbe manner
usually pursued by miners, in order to insure
safety, the plaintiff would not have been in-
Jured; there had been no timbers suitable for
this purpose In or about the location In ques-
tion for at least two weeks prior to the ac-
cident; three days before his Injury, tbe
plaintiff called at the office of defendant's gen-
eral superintendent, where the latter official
and the mine foreman were together at tbe
time, and asked for timber ; tbe office where
he made this application was the usual place
for the purpose; the superintendent and fore-
man told the plaintiff "to go ahead," and
they would send the timber to him. At tbe
time he made this request he was working In
shoot 31, mining a "monkey beading," or air
passage, into tbe adjoining shoot, 32. No tim-
ber arrived, and on the day of the accident,
while tbe plaintiff was working in No. 32,
he again applied therefor to the same two
officials, being told a second time to "go
ahead ; • • • we vrill send it." He pro-
ceeded with his work, and a short time there-
after the accident occurred.
It Is to be noted that, when the plaintiff
first applied to the foreman and tbe mine
superintendent, he did not specify timber to
be used in shoot 31, and there is nothing in
tbe testimony to indicate that either of the
latter so understood his request Apparently,
he desired this material for use in tbe general
locality where he was working, and, as al-
ready pointed out the Job at which he was
engaged, from the time of the first request
until the happening of tbe accident, was In
or about sboota 31 and 32 and tbe passage-
way between tbem. With these facts In mind,
we feel the evidence was quite sufficient to
put tbe defendant's superintendent on notice
that the plaintiff needed timber, and, there-
under. It was for the jury to say whether or
not the renewed request on the day of the
accident was enough to fix tbe superintendent
with knowledge that the mine foreman had
failed to comply with plaintiff's previous de-
mand, made three days before. Under the
facts in tikis case, Collins v. Northern Anthra-
cite CkMil Co., 241 Pa. 66, 88 Atl. 75, Is a con-
trolling authority, which tbe learned court be-
low very properly followed.
The assignments of error are all overruled,
and the Judgment is affirmed.
ASHBT V. BUTZ.
(857 Pa. 230)
(Supreme Court of Pennsylvania. March 19,
1917.)
Bnxs AND Notes «=537(1) — Aotioii — Db-
VENBB— DiEECTKD VeBDIOT.
In action on a note by the executrix of a
decedent's estate against the maker, defended on
the ground of its cancellation under an agree-
ment with decedent, Aeld, on tbe evidence, that
a directed verdict for plamtiff was proper.
[Ed. Note.— For other cases, see Bills and
Notes, Cent Dig. $J 1862, 1871-1875, 1891-
1883.]
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IK RE PENROSE'S ESTATX
319
Appeal from Court of Comnuu Pleu, Le-
lil^ CoontT.
Assumpsit on a note by Harriet AAby,
executrix of the estate of Henry S. Keck, de-
ceased, against Harvey B. Butz. Verdict di-
rected for plalntur for $2^64.81 and Judg-
moit thereon, and defendant appeals. Af-
flrmed.
Argued before BROWN, C. J., and MES-
TREZAT, POTTER, FRAZBR, and WALL-
ING. JJ.
George If. Lntz and Calvin B2. Amer, both
of Allentown, for appellant Allen W. Hagen-
back and Fred £L Lewis, both of AUentown,
for appellee;
PE:r curiam. Tlie defense of the appel-
lant in this action, bronght to recover the
amount due on a promissory note which he
executed and delivered to appellee's decedent,
is that the same was canceled in pursuance of
the terms of an agreement entered Into by
him and the decedent. Though, under the
testimony, the agreement was to have been
prepared and executed and the note canceled
In pursuance of It, it never was executed.
There was merely an understanding between
the parties that the agreement should be
prepared and executed, but this was never
carried out, and the absolute liability of ap-
pellee on his obligation bad not been impaired
at the time of the death of Henry 8. Keck.
This was the correct view of the learned
ooTirt below In directing the verdict for plain-
tiff, and the ludgment is therefore affirmed.
(2E7 Pa. ai>
In re PEOmOSE'S ESTATE.
Appeal of MOORE et aL
(Sapieme Court of Pennsylvania. March 10,
1»17.)
Pebpeiuitus «=»8(3)— Dkvisb — CaAarTABi.E
Use.
A bequest of real and personal property in
trost for a son for life, and on his death to his
issue, to be paid to them respectiTely upon
reaching 21 years, and in case either of such is-
sue i^ould die without issue before reaching
that age a devise of his share to the survivors,
and if all the son's issue died without issue be-
fore reaching 21 then over to a charitable use,
violated the rule ngainst perpetuities, and the
gift, to the charitable use was void.
[Ed. Note.— For other cases, see Perpetuities,
Cent. Dig. {{ 59, 66.]
Appeal from Orphans' Court, Bucks County.
Alfred Moore and David N. Fell, Jr., exec-
vton of the will of B^van R. Penrose, appeal
from a decree sustaining exceptions to re-
I>ort of auditor in the estate of Pauline R.
Penrose, deceased. Reversed, and report of
auditor absolutely confirmed.
Ryan, P. J., filed the following opinion In
the orphans' court:
It appears by the order of the Supreme Court
remandmg this case to this court that the ques-
tion whether the remainder created by the dece-
dent's will in favor of the Richland Monthly
Meeting of Friends offends the rule against
perpetuities was raised and argued before that
court. It had not been considered by this court
or its auditor, for the reason that it bad not
been raised either here or before him. The
learned auditor found that the rule in Shelley's
Case applied to the devise, and that therefore
an absolute estate vested in Evan R. Penrose,
the first taker. This court did not agree with
him in his conclusion, but held that the said
Evan R. Penrose took but an equitable estate;
the testatrix having created an active trust to
g reserve the remainders given in the alternative
1 her will. This conduaion was not ccMitested
upon the appeal.
The question now presented to us for deter-
mination is this: Is the gift over to the Rfclk-
land Monthly Meeting of FViends void for re-
moteness? 'l;he testatrix left a fund including
iMth real estate and personal property, to a
trustee, in trust for her son, the said Evan K.
Penrose, for life, providing further in her will
as follows :'<••• And from and immedi-
ately after the decease of my said son I give
and devise and bequeath the said ground rent
and moneys unto the lawful issue of my said
son Evan R. Penrose share and share alike to
be paid to them respectively upon their arrive
ing at the age of twenty-one years the same to
be put out at interest by the above named trus-
tee and the interest accruing therefrom to be ap-
plied to their maintenance and education re-
spectively until their arrival at the age of twen-
tv-one years and in case either of said issue
should die before arriving at the age of twenty-
one years without issue I give and bequeath the
share of the one or ones so dying unto the sur-
vivor or survivors thereof. And if all the lawful
issue of my son should die without issue before
arriving at the age of twenty-one years then I
give, devise and bequeath the said ground rent
and moneys unto Richland Monthly Meeting of
friends (at the said Borough of Quakertown)
the interest accruing theremm to be applied
from time to time in accordance with the direc-
tion of said Monthly Meeting."
The interest given to the Richland Monthly
Meeting of Friends is clearly a contingent re-
mainder. It is limited to take effect upon the
"dubious and uncertain event" of the line of
Eivan B. Penrose becoming extinct. It does not
vest in the event of his issue failing to reach
the age of 21. The testatrix has prescribed the
additional condition that his issue must die be-
fore that age without issue. It cannot, there-
fore, be said that under the provisions of this
will the interest of the Monthly Meeting must
vest not later than 21 years after a life in be-
ing at the creation of the interest The rule
is thus stated in Gray on Perpetuities, { 201 :
"No interest is good unless it must vest if at
all, not later than 21 years after some life in
being at the creation of the interest" In Cog-
gins' Appeal, 124 Pa. 10, page 30, 16 Atl. 67B.
page 681 [10 Am. St Rep. 565], Pazson, O. J.,
declared : "It is a conceded principle that the
future interest must vest witldn a life or lives
in being and 21 years. It is not sufficient that
it may vest It must vest within that time or
the gift is void — void in its creation. Its validity
is to be tested by possible and not by actual
events. And if the gift is to a class, and it is
void as to any of the class, it is void as to all.
Authority is scarcely needed for so familiar
a proposition. It is sufficient to refer to Leake
et al. V. Robinson et al., 2 Mer. 363 ; Porter v.
Fox, 6 Sim. 485 ; Blagrove v. Hancock, 16 Sim.
371; Dodd V. Wake, 8 Sim. 615; Newman v.
Newman, 10 Sim. 51 ; Vawdry v. Ueddes, 1
Kuss. & M. 203; WUliams on Real Property,
305 ; 1 Perry on Trusts, | 381 ; Lewis on Per-
«E=9For otbar eaaei see same topic and KBT-NUMBER in all K«7-Numbered DIgesU and IndezM
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101 ATJAirriO BEPORTEB
(Pa.
petuities, 4S6; Hfllyard r. Miller, 10 Pa. 326;
Smith's Appeal, 88 Pa. 492."
Under the language employed by the testatrix,
can it be said that the interest given to the
Monthly Meeting must vest within the limit of
time fixed by the rule? Had Evan R. Penrose
died leaving a son who lived to be 20 and then
died leaving a son who died at 20,- the vesting
of the interest given to the Monthly Meeting
would have been postponed beyond the period of
21 years following the death of Bvan B. Pen-
rose. That this did not happen is immateriaL
That it could have happened, and post^ned the
vesting of the interest given by the wiU to the
Monthly Meeting beyond the liimit of time fixed
by the rule against perpetuities, is fatal to the
gift in remainder. Bven if we accept the con-
tention of the appellee that "issue," as used by
the testatrix, means "children," we encounter
the same difficulty in trying to escape the opera-
tion of the rule. We then find the testatrix
providing a possible postponement of the vest-
ing of the remainder in the Monthly Meeting
until after the death of possible great-grand-
-diildren under the age of 21. We find in this
will no such case of doubt as must be resolved
in favor of the vesting of the remainder. We
conclude that this will provides a gift over on
an indefinite failure of issue. "In Pennsylvania
« gift over on failure of issue when the failure
must take place within the periods prescribed
by the rule is good, while a gift over on in-
definite failure of issue is bad. The rule is the
same, whether the subject-matter of the erift is
real estate or personal property." Foulke on
Rules Against Perpetuities, etc., page 196.
We have reached the conclusion that the gift
over to the Hichland Monthly Meeting of
Friends was void in its creation and that as to
that interest the testatrix died intestate. The
fund should therefore be distributed to the
-executors of Evan R. Penrose, deceased. The
decree of this court of August 2, 1915, directing
the auditor to malte distribution to the Ridiland
Monthly Meeting of Friends, should be reversed,
-and the original schedule of distribution report-
ed by the auditor reinstated. As the appeal is
still pending in the Supreme Court, this court
is without power to enter a decree in accordance
with the foregoing conclusions. This opinion is
respectfully submitted in conformity with the
order of the Supreme Court.
The court dismissed exceptions to the sec-
ond report of the auditor.
Argned before BROWN, C. J., and MBS-
TRBZAT, STEWART, MOSOHZISKHR, and
WALLING, JJ.
Henry Spalding, of Pblladelphia, and Ar-
thur M. Eastbum, of Doylestown, for appel-
lants. Thomas Roes and George Ross, both
of Philadelphia, for appellee.
PER CURIAM. After argument of this
aiH>eal, at the January Term, 1916, the fol*
lowing order was made:
"And now, February 11, 1916, it appearing
that neither the auditor nor the orphans' court
has considered or determined a controlling ques-
tion whether the remainder offends the rule
against perpetuities which has been argued here,
the case is remanded to the orphans' court, that
the parties may be heard and the question may
be determined. After the opinion has been filed
by the court below, either party may move this
court to advance the cause on the argument Ust."
The record was accordingly returned to the
court below, whidi referred the question In-
volved to the auditor, who filed an opinion,
holding that the remainder offended the rule
against perpetuities and was void. Excep-
tions to this report were dismissed by the
court, the conclusion of its opinion being as
follows:
"We have reached the conclusion that the
^ft over to the Richland Monthly Meeting of
Friends was void in its creation and that as to
that interest the testatrix died intestate. The
fund should therefore be distributed to the ex-
ecutors of Evan R. Penrose, deceased. The de-
cree of this court of August 2, 1916, directing
the auditor to make distribution to the Richland
Monthly Meeting of Friends, should be reversed,
and the original schedule of distribution report-
ed by the auditor reinstated. As the appeal is
still pending in the Supreme Court this court is
without power to enter a decree in accordance
with the forgoing conclusions. This opinion
is respectfully submitted in conformity with the
order of the Supreme Court."
The conclusion of the auditor, concurred In
by the learned court below, that the gift
over to the Richland Monthly Meeting of
Friends Is void as ofTendlng the role against
perpetuities, is clearly correct, and the de-
cree appealed from is now reversed, and the
report of the auditor, filed September 11*
1913, is absolutely confirmed.
Appeal sustained, at aweUee's costs.
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MABANDA ▼. OAUUN
321
(« R. I. m)
MARANDA t. GAULIN. (No. 5018.)
(Snpreme Oonrt of Rhode iBland. July 6,
1W7.)
Masteb and Sebvant «=»288(11), 289(10) —
QuKsnoN FOB JVBT— AssxnipnoN o? Kisk
— CONTBIBUTOKT ^EGUOBNOK.
In an action by servant tor injury from
dynamite blast, plaintiff claiming be was inex-
perienced and was directed to use a short fuse,
plaintifrs assumotion of risk and contributory
negligence were for the jury.
[Ed. Note. — ^For other cases, see Master and
Servant, Cent Dig. gS 1079-1082, IIOO.J
Vincent, J.. diasentinK.
Exceptions from Superior Oourt, Provi-
dence and Bristol Countlee; Charles F.
Steams, Judge.
AcMon by Alexander Maranda against Al-
phonse Oaulln. Verdict for plaintiff, and de-
fendant excepts. Exceptions overruled, and
case lemltted, with directions.
Fllj^erald & Elgglns, of Providence, for
plaintiff. Eilphege J. Dalgnault, of Woon-
tocket, and Boss & Bamefleld, of Providence,
for defendant
PAREITDBST. O. X This is an action of
tbe case for negligence, wherein the plain-
tiff, who was a servant of tbe defendant,
seeks to recover damages for injuries claim-
ed to have l>een sostained by plaintiff when
working under the direct supervision and
order of the defendant as master on the 23d
day of September, 1912.
Tbe case was tried before a Justice of the
superior court sitting with a jury in May,
1916. It is claimed by plaintiff that on Sep-
tember 23, 1012, the plaintiff was working
with and for the defendant, owner of a farm,
in the blasting of rocks on the farm by tbe
use of dynamite placed in drill holes; that
several blasts had been exploded in the
mumlng; that a cessation of work took place
from about 11:30 a. m. to 2:30 p. m. ; that
after 2:30 p. m. tbe work of blasting was
resumed by the parties, and that after sev-
eral blasts had been exploded a blast lighted
by plaintiff exploded so suddenly that plain-
Ufl had not time to get away from the rock
to a place of safety or even to turn around,
and that be was severely Injured in the left
eye, left ear, and left band ; that by reason
uf the injury be lost bis left eye, was made
permanently deaf in bis left ear, and per-
manently lost the efficient use of bis left
band and suffered greatly during the Illness
which followed and as a result of necessary
surgical operations.
The method of blasting was by placing a
sulfieient amount of dynamite in the bottom
of a drill hole in a rock, then placing in con-
tact therewith an explosive cap at tbe end
of a powder fuse which was cut long enough
to extend upwards and outwards beyond tbe
drill hole, and then filling the driu bole with
earth pressed down to cover the charge, and
then lighting the fuse. Tbe plaintiff claimed
as to tbe rock which exploded prematurely
that tbe drill hole was about four and one-
half inches in depth ; that under orders from
the defendant tbe plaintiff loaded tbe hole
with tbe dynamite, and received from the de-
fendant a fuse cut by tbe defendant about
six Inches in length with a cap attached
thereto, placed it in the drill bole, and placed
tbe earth in the bole, and found that the
fuse extended only about two Inches above
the surface of the rock; that the defendant
gave him a match to light the fuse, and that
he, the plaintiff, then said to defendant, in
substance, that the fuse was short; that be
was afraid, and asked the defendant what
be should do about it; that tbe defendant
told Mm it was all right and ordered him to
light it; and that, acting under that order,
he did light it, with tbe result above set
forth.
Tbe plaintiff and defendant were the only
persons present, at tbe time of tbe explosion.
Tbe defendant's account of the occurrence
was in most respects a complete denial of all
tbe material statements of the plaintiff. He
told a different story as to tbe explosion,
claiming that there were two explosions, that
tbe first explosion was of fuses and dyna-
mite in a pan or kettle in which fuses were
kept and carried about during the progress
of the blasting, and seeming to claim, though
not very clearly, that this explosion of the
materials In the pan or kettle was the one
which Injured the plaintiff and was caused
by plaintiff's negligence in throwing a lighted
match therein, and that the explosion of the
rock occurred thereafter, but was not the
cause of the Injury to the plaintiff. Tbe de-
fendant also denied all of the plaintifTs
statements in regard to plaintiff's lack of
knowledge and experience in blasting, and
denied having exerdsed any supervision or
having given any orders to plaintiff or hav-
ing cut any fuses for plaintiff to use.
At tbe close of all the testimony the de-
fendant moved that tbe jury be directed to
return a verdict for tbe defendant on the
ground that tbe plaintitTs own testimony
showed that be had such knowledge and ex-
perience of blasting and such appreciation of
the risks whldi be took, and of the danger
attendant upon Us acts, that he should be
held as a matter of law to have assumed the
risk of what he did and to have been guilty
of contributory negligence in bis reckless dis-
regard of danger which was obvious to him.
Tbe trial judge refused to direct a verdict
for tbe defendant as requested. The case
was submitted to the jury, whlrfi returned a
verdict for the plaintiff in the sum of $4,000.
The defendant did not ask for a new trial
in the superior court, but in due time filed
and prosecuted his bill of exceptions to this
court; and tbe case Is now before us upon
AssFor other cases ne aame topic and KBT-NUMBBR In all Key-Numbered Digests and Indexes
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101 ATIiAJWlO REPORTER
(«.I.
the bin of exceptions. The only exception
pressed before thU court Is that taken to the
roUng of the trial Judge In denying the de-
fendant's motion for direction of a verdict
In his favor.
The sole question hefore this court Is
whether upon the plaintiff's own teetlmony,
which must for the purpose of this decision
be taken as true. It conclusively appears that
the plaintiff assumed the risk of Injury or
was guilty of contributory negligence as a
matter of law, so that the trial Judge erred
In submitting the case to the Jury.
In substance, the plaintiff testified that
in 1906 he came from Canada, where he had
worked on a farm, and had had no expe;
rlence or knowledge whatever of blasting;
that he went to work for the defenldant as a
farm hand in 1908, and worked for defend-
ant from that time (except in winter) until
the time of the Injury; that the farm of de-
fendant had many stones and rocks, and
that during 1908 and two years following
special men were employed by defendant
(two or three at a time) to do blasting ; that
during 1908 plaintiff did no such work, nor
does it appear to what extent he had oppor-
tunity to watch the operation; that a Mr.
Lefebvre (who was a nephew of defendant
and had worked for him for some years
before 1908) was at times working on the
farm; that gradually as time went on the
plaintiff, working with Mr. Lefebvre, learned
to drUl holes in rocks for blasting, some-
times drilling them alone In small rocks, and
sometimes holding the 'drill for Lefebvre to
strike In drilling big rocks. Plaintiff says
that In doing this work he was under the di-
rection of Lefebvre, who bossed the Job.
Plaintiff says that he never up to the day of
the Injury lighted any fuses to set off blasts,
but that Mr. Lefebvre always did that after
they had drilled holes. He admits that he
may have loaded the holes a few times with
Qynamlte before that day, and may have cut
a few fuses under Lefebvre's supervision,
but says that he never until the day of the
injury lighted any fuses or himself conduct-
ed the operation of blasting, which was there-
tofore done by Lefebvre; that on the day
of the Injury Lefebvre was not present; that
on that day Gaulin the defendant took the
plaintiff to the farm and set him to work at
blasting rocks, told him what to do and
what rocks to blast, an'd directed him to dig
around stones to loosen them; that defend-
ant carried about with him an uncovered
pall or pan (of metal) in which were fuses,
caps, and dynamite, and directed plaintiff to
load the boles (which appear to have been
drilled an'd made ready before) ; that defend-
ant cut all the fuses and directed plaintiff
to place the fuses In the holes. No sugges-
tion Is made anywhere in the testimony that
anything dangerous happened in any of the
blasts during the day until the fifth blast In
the afternoon. Plaintiff In substance says.
as to this blast, that defendant orders Urn
to dig more around the stone (which he did),
and then ordered him to load tiie bole, and
banded him or laid upon the rock a fuse
cut by defen'dant with a cap attached and or
dered him to finish loading; that, when tba
fuse had been Inserted and the loading finish-
ed, the fuse only projected above the hole
about two Inches; that plaintiff was not
sure whether or not the fuse was too short
for safety, was afraid It might be and called
defendant's attention to It, and asked If he
should light it, said he was afraid, and ask-
ed what he should do with It; and that de-
fendant handed him a match to light it with,
told him to go on an'd light It, and said that
It was all right ; that defendant stood where
he could see the fuse, had cut it himself
and knew its length ; that plaintiff regarded
defendant as his boss, knew he was paying
plaintiff to work for him and expected plain-
tiff to obey orders, and knew that defendant
bad more knowledge of dynamite and ex-
plosives than plaintiff had; that he obeyed
the order, and was immediately injured by
the blast before he had time even to turn
around.
From plaintiff's testimony the Jury had a
right to find that never at any time had the
plaintiff been called upon to use his own
Judgment as to the proper length In the cut-
ting of fuses ; that never at any time had be
had experience as to how long it would take
a given length of fuse to bum; it does not
appear that he had ever seen or known of a
premature explosion or that he had any
knowledge as to bow short a fuse could be
used safely.
The questions whether the plaintiff as-
sumed the risk and whether he was guUty
of contributory negligence are questions of
fact. Many cases have arisen where the tes-
timony is so clear and conclusive upon the
plaintllTs own admission of his knowledge
an'd skill and appreciation of danger that
courts have found such facts to be fully and
conclusively proved so that it would be er-
ror to submit them to the Jury.
But in this case we have the fact that the
plaintiff, not being sure of the danger, though
apprehensive, and being under the direct
supervision of his master, calling his mas-
ter's attention to the possible danger, and
receiving his master's assurance that it is
all right, obeys his master's direct order and
Is injured as a result of such obedience.
The cases cited on behalf of the defendant
in support of his exception are all cases
where the evidence clearly showed that the
plaintiff was a man of such long experience
and full knowle!dge of the danger of his
acts which resulted In his injury that he
either assumed the risk or was guilty of
contributory negligence. We do not find
in any of these cases circumstances similar
to the case at bar, where the servant, being
apprehensive of possible danger, appealed to
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B.D
NEWPORT TRUST CXJ. ▼. CHAPFEUi
323
his master, and received his assurance of
safety, coupled wltb an order to go ahead
and do the thing which resulted in the in-
Jniy.
In the cases dted on behalf of the plain-
tiff we find ample authority, under circum-
stances similar in principle to thoee appear-
ing in the case at bar, for the submission of
the tiuestions of assumed risk and of contrib-
utory negligence to the Jury as questions of
fact for Its determination.
In Pinncy v. King (1906) 98 Minn. 160,
107 N. W. 1127, It appeared that dynamite
was used for the purpose of blowing up a
wreck under water ; that it was necessary to
heat the dynamite to a certain temperature ;
that the plaintiff was a laborer working un-
der a foreman (who was held to be a Tice
principal of the master), and uinder Ills or-
ders was engaged with others in the work of
heating up an old bcrfler, and, after heating,
of placing sticks of dynamite on boards upon
the heated grate bars; that, owing to the
Inattention of the vice principal and others,
the boiler became overheated and caused the
dynamite to explode, killing several men and
Injuring the plaintiff; the same questions
substantially were raised by the defense in
that case as in the case at bar. After speak-
ing of the plaintiff's lack of experience in this
manner of treating dynamite, and of ills re-
liance upon the foreman for guidance and
direction, the court said (98 Minn. 163, 107
N. W. 1128):
"It appears that he was nervous and some-
what agitated during the time the dynamite
wu being warmed, because, in bis opinion, the
boiler was overheated, and that he called the
attention of the foreman to the fact. The fore-
man assured him that it was all right, and or-
dered him to let it alone. Because he was
fearful of dancer, it does not follow, as a mat-
ter of law, that he fully appreciated the risks
and hazards of his situation. The question was
properly left to the jury."
See, also, Randall v. Abbott Oa, 111 Me.
1, 12, 87 AU. 376 (1913) ; Jensen v. Kyer, 101
Ue. 106, U3, 63 Atl. 3S9 (1905); Chicago
Anderson Pressed Brick Go. v. Sobkowiak,
148 IlL 673, 36 N. K 672; Lake Superior
Iron Co. V. Erickson, 39 Mich. 492, 600, 33
Am. Rep. 423; Southern Cotton OU Co. v.
Spotts, 77 Ark. 458. 92 S. W. 249; Haley
». Case, 142 Mass. 316, 320, 7 N. E. 877; Ma-
iioney v. Dore, 156 Mass. 613, 520, 30 N. E.
366; Burgess v. Davis Sulphur Ore Ca, 165
Mass. 71, 74, 42 N. £. 501 ; Shannon v. Shaw,
201 Mass. 393, 397, 87 N. E. 748; 4 Labatt's
Master and Servant (2d Ed.) p. 3927 et seq.
In our opinion, the questions raised by
defendant In the case at bar were pn^erly
snbmitted to tha Jury, and we find no error
on the part of the trial Judge in refusing to
direct a verdict for the defendant
The defendant's exception is overruled, and
the case is remitted to the superior court
sitting in the comity of Providence, with dl- ,
rection to enter Judgmoit for the plaintlfl up-
on the verdict
YINOEINT. J., dissents.
'°°"°°°~ (40 R. I. 383)
NEWPORT TRUST CO. v. CHAPPELL et aL
(No. 381.)
(Supreme Court «f Rhode Island. June 26^
1917.)
1. WnXB «=>539 — CONSTBUOTIOW — Bbqttxst
TO Dauqhteb.
Testatrix's will provided that she gave one
moiety of all her property to her daughter, and
that she gave the other moiety of her property to
her husband in trust for the benefit of her son,
and directed that so long as the husband should
live there should be no division of the estate,
and the income should be divided equally be-
tween the husband, the daughter, and the hus-
band as trustee. A following clause of the will
directed that, if the daughter should die without
issue, her portion of the estate should go to the
husband as trustee for the son. Held, that it
was testatrix's intention to give her daugbter, if
living at her death, a vested interest in half
of the estate, but to postpone the time when the
daughter should come into possession until the
death of her father, and where the daughter sur-
vived the father, she became entitled at his death
M have the half turned over to her, less charges
and expenses of administration chargeable
against the half.
[Ed. Note.— For other cases, see Wills, Cent
Dig. a 1163, 1302-1309.]
2. Wills «=>674, 684(9)— Tsttsts— Bequest to
Teijstee — Spendthbift Tbubt.
Testatrix's will provided that she gave a
moiety of all her property to her husband for
the benefit of her son^ directing that so long as
the husband should kve, there should be no di-
vision of the estate, but that the income should
be divided equally between the husband, the
daughter, and the husband as trustee for the
son, also directing that if the husband, as trus-
tee, should become fully satisfied at any time
that the son had fully reformed his life, so that
he could safely be trusted with the manage-
ment of property, the husband, as trustee, should
transfer the property to the son as fully as if
the trust had never been created, and that the
trust should thereby terminate. Held, that the
son's trustee, the husband, was only to receive
one-third of the income for the son's benefit so
long as he, the husband, lived, and that the trust
for the son was in the nature of a spendthrift
trust
raid. Note.— For other cases, see Wills, Cent
Dig. U 1585, 1627.]
3. Wills «=>686(1>— Tebmination of Tbitst.
Where testatrixs will created a spendthrift
trust for her son, appointing her husband tms>
tee, with provision that the husband might ter-
minate the trust if the son reformed his mode of
living, but the son did not fully reform his life,
and the trust was never terminated during the
husband's lifetime, and the son never claimed or
attempted to have the trust terminated during
his father's lifetime or afterwards, the trust con-
tinued until the son's death; the mere fact that
no new trustee was appointed after his father's
death not operating to terminate the trust
(Ed. Note.— For other cases, see Wills, Cent
Dig. 1} 1631, 1633, 1637.]
4. Wills e=»684(9)—CoNSTBucTiON— Bequest
OF Income.
Testatrix's will gave a moiety of all her
property to her daughter, and gave the other
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101 ATLANTIC REPORTBE
(R.I.
moiei7 to lier hosband, in trast for the benefit of
her son, directing that so long as the husband
should live there should be no division of the es-
tate, and the income should be divided equally
between the husband, for himself, as trustee for
the son, and the daughter. Held, that after the
father's death the son was entitled to receive the
income from half the estate.
[Ed. Note.— For other cases, see Wills, Cent.
Dig. § 1627.]
5. Wills «=»e86(4)— TEBiairATioK of Spbitd-
THBiFT Trust.
Where by bis mother's will a son was en-
titled to receive one-third the Income of the es-
tate prior to his father's death, and after his
father's death was entitled to receive the income
from half the estate, the will having created a
spendthrift trust in half the estate for the bene-
fit of the son, and named the father as trustee,
the making by the son in favor of his wife of a
trnst deed to a trust company after the death of
his father, and after the trust company was
appointed administrator with the will annexed
of the mother, and had received the estate into
Its custody as such, did not operate to termi-
nate the trust, which could only have been ter-
minated under the will by the act of a trustee,
if the latter became faUy satisfied that the son
had reformed his life, but merely transferred the
Bon's right to the income of half the estate to
the trustee for the benefit of his wife.
[Ed. Note.— For other cases, see Wills, Cent
Dig. I 1636.]
6. Tbtistb «=924S — STTSsmrrrKD Tsustex —
POWEBS— Statdtb.
Under Gen. Laws 1896, c. 208, { 6, provid-
ing that every trustee appointed pursuant to the
chapter shall have the same powers, authorities,
and discretions, and may in all respects act as if
be had been originally appointed trustee by the
instrument, if any, creating the trust, and sec-
tion 8, providing that the preceding sections
shall apply to trusts heretofore as well as those
hereafter created, and shall be considered in ad-
dition to the ordinary equity powers of a court
of chancery, a new trustee, appointed under a
will in place of the trustee named therein, who
died, would have had the same powers and dis-
cretions aa the original trustee.
tEU. Note/— For other cases, see Trusts, Cent.
Dig, i 350.]
7. Trusts <S=>243 — Substituted Tbustes —
PoWEBS.
Where testatrix's will created a spendthrift
trust in favor of her son, and gave her husband,
the trustee, power to terminate the trust if he
became satisfied that the son had reformed his
life, so that he could be trusted with the man-
agement of property, the power and discretion
vested in the husband to transfer to the son
free of trust was a power and discretion annex-
ed to the office of trustee, and therefore passed
to a succeeding trustee, even in the absence of
statute, since, without such power, the purposes
of the trust might have been defeated.
[Ed. Note.— For other cases, see Trusts, Cent.
Dig. i 350.]
Case certified from Superior Court, New-
port County.
Suit by the Newimrt Trust Company, ad-
ministrator cum testamento annexo of the
estate of Abby D. Chappell, against Levlnla
A. Chappell and others. On certiflcation to
the Supreme Court for Its determination
under Geo. Laws 1909, c. 289, i 35, as being
ready for hearing for final decree. Decree
directed to be presented for approval.
Burdlck & MacLeod, of Newport, for com-
plainant. Sheffield & Harvey, of Newport,
for Levlnla A. Chaijpell. Charles H. Koehne,
Jr., and William Williams, both of Newport,
for Ida Douglas Jack.
PARKHURST, a J. This Is a bill In
equity brought by the Newport Trust Com-
pany, as administrator with the will annexed
of the estate of Abby D. Cbaiq)ell, late of
Newport, deceased, having In Its possession
as such administrator certain personal prop-
erty which was bequeathed under said will,
and asking for the appointment of a new
trustee under said will and for Instructions
as to the proi)er disposition of said prop-
erty. Such disposition Involves the construc-
tion of said will.
The bill was filed In the superior court In
the county of Newport November 10, 1916,
and, after answers were filed and testimony
taken, was duly certified to this court for
Its determination under the provisions of
Gen. Laws R. I. 1909, c. 2S9, i 35, as being
ready for hearing for final decree.
It appears by admission in the pleadings
that Abby D. Chappell, late of Newport,
died Ma^ 10, 1904, leaving the last will re-
ferred to, and that the same was duly ad-
mitted to probate June 13, 1904, and that
James H. Chappell, husband of the testa-
trix, named as executor In the will, was duly
appointed and qualified, and thereafter acted
as such executor until his death, and died in-
testate September 20, 1914, without having
fully administered the estate, leaving as hla
only heirs at law and next of kin said Ida
Douglas Jack and said Henri Q. Chappell,
and that the complainant on October 5, 1914,
was duly appointed and qualified as admin-
istrator with the will annexed ; that aa such
administrator It received the sum of $6,495.91
as the property of the estate of said Abby J>.
Chappell, and has since held, and now holds,
said estate.
It further appears that Henri Q. Chappell
(son of the testatrix), one of the beaefldarles
named in said will, on November 9, 1914,
made a deed of trust of all his property,
"whether legal or equitable In fee or In re-
mainder," to said Newport Trust Company,
In trust to pay the net Income thereof to hla
wife, the respondent Levlnla A. CJhappell,
during his lifetime, and upon his death to
pay over the principal of said trust fund,
or what should remain thereof, to said Le-
vlnla, or to such person or persons as he
should by his last will appoint In the event
of her death before him.
It further appears that said Henri Q. Chap-
pell died at Newport, February 28, 1916, leav-
ing bis wife, Levlnla, siurvlvlng him, but
leaving no children or Issue of children sur-
viving him, and that he left a will In whicb
he gave all his property to his wife, but said
win has never been offered for probate.
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NEWPORT TRUST 00. v. CHAPPELIi
325
The said Abby D. Gbappell and James H.
Ghappell had two cbUdren, a daughter, Ida
Douglas Chappell, and a son, Henri Q. Chap-
pell. The daughter married, and In her
mother's will she is named as Ida Jack, of
TTashington, In the District of Columbia. It
appears also that she surriyed her mother
and her father and her brother and was
still surviving at the time when this bill was
fled, and, so far as appears, she stlU sur-
Tlves. The said Ida Douglas Jack and the
said Levlnia A. Chappell are the sole parties
named as respondents' in the bill.
The win provides as follows :
"This is the last will and testament of me,
Abby D. Chappell, wife of James H. Chappell,
of Newport, Rhode Island.
"Rrst Subject to the payment of my just
debts, if any, and all proper charges against my
estate, I give devise and bequeath the one moiety
of any property, of every kind, real and person-
al, wheresoever situated or being, belonging to
me at the time of my decease, whether acquired
prior or subsequent to the execution of this will,
to my daughter, Ida Jack of Washington in the
District of Columbia, and in case of the death
of said Ida I give devise and bequeath the same
to her children.
"Second. I give devise and bequeath the other
moiety of my property, of every kind, real and
personal, wheresoever situated or being, belong-
ing to me at the time of my decease, whether ac-
quired prior or subsequent to the execution of
this will to my husband James H. Chappell in
trust, for the benefit of my son Henri Q. Chap-
pell of said Newport.
"Third. It is my will that so long as my hus-
band shall live that there shall be no division of
my estate and the rents, income and profits
thereof, shall be divided equally between my
husband, my daughter, and said trustee. I also
direct, that if the said trustee shall become fully
satisfied at any time, that my son Henri has
fully reformed his life, so that he can safely be
trusted with the management of property and
this trust, that he transfer said property to my
8on as fully as if it had never been created, and
that the same thereby terminate,
"Fourth. It is my will, that if said trust shall
continue until the death of said son, if he leave
issue, the residue of said trust shall be trans-
ferred to said issue; if he leave no issue, the
residue shall become the property of my daugh-
ter Ida.
"Fifth. It Is my will and I so direct that, if
my daughter Ida shall decease leaving no issue,
her portion of my estate shall go to said trustee,
in trust, as aforesaid. But if said trust has been
surrendered by the trustee as provided in this
will, then the portion of said Ida shall go to said
Henri direct. If both of my children die with-
out issue, I give devise and bequeath all of said
property not expended to the next of kin of said
Ida according to the present statutes of this
state, exduding her husband from any part
share and right therein.
"Sixth. BTnally I nominate and appoint my
husband James B. Chappell to be the sole execu-
tor hereof without giving any bond^ and to car-
ry out the provisions hereof as strictly as may
he; and I revoke all other former wills by me
made, and publish, and establish this, and this
only, as my last.
"Witness band and seal this 25th day of June,
A D. 1887. Abby D. Chappell. [L. S.]"
The will bears the usual witness clause and
names of witnesses. It Is undisputed that all
the property which passed under the will was
personal property ; and all the property now
held by complainant is personal property.
The complainant In Its bill contends that
the estate of Abby D. Chappell In its hands
after deducting the expenses of administra-
tion should be turned over to a trustee to be
appointed by the court to bold In trust to pay
the income to Ida Douglas Jack during her
lifetime, and upon her death to pay the prin-
cipal to her Issue living at her death, and in
default thereof to her next of kUi, as provided
In the fifth clause of the wUL
The respondent Ida Douglas Jack by her
answer claims the whole of the fund in the
hands of the complainant, after deducting
the necessary expenses of administering said
estate.
The respondent Levlnia A. Chappell is un-
der guardianship, and William M. Arnold,
the guardian of her person and estate, has
been brought In as a party respondent. He
makes answer as guardian claiming on her
behalf that she Is entitled to have paid over
to her after deducting the expense of ad-
ministration one moiety of the estate under
the provisions of the wllL
At the first reading of the wlU above set
forth It seems to be somewhat confusing and
inconsistent In its several provisions. But
upon a careful consideration thereof we are
of the opinion that the Intention of the testa-
trix quite clearly appears.
The scheme of the will Is to divide the es-
tate into two parts, one of which is by the
first clause, as we construe it, bequeathed to
Ida Jack, if living at the death of testatrix ;
If Ida is not then living, to Ida's children.
The other part is by the second clause be-
queathed to James H. Chappell, husband of
testatrix. In trust for the benefit of her son,
Henri Q. Chappell. This s<4ieme is, however,
modified and suspended In Its fulfillment by
the third clause, which evinces a primary
and paramount intention temporarily to sus-
pend the division of the estate during the
lifetime of her husband, and to leave the
estate undivided In his hands during his life-
time, and to divide the rents, income, and
profits equally between her husband, her
daughter, and her husband as trustee for
Henri ; and this provision Is also subject to
the direction to said trustee to transfer the
one-half of the estate bequeathed in trust for
the benefit of Henri to him If "the said trus-
tee shall become fully satisfied at any time,
that my son Henri has fully reformed his
life," etc.
[1] As we construe these provisions, we
find that it was the intention of the testatrix
to give to her daughter, Ida Douglas Jack,
if living at the death of testatrix, a vested
Interest In one-half of the estate, subject to
the provisions of the second clause, which
postponed the time when Ida should oome In-
to possession imtil the death of her father;
and. Inasmuch as Ida survived her father,
she became entitled at his death to have this
one-half turned over to her, less su<di charges
and expenses of administration, tf any, aa
would be properly chargeable against the
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326
101 ATLANTIC REPORTER
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same. We think It dear that there was no
Intention on the part of testatrix to postpone
Ida's enjoyment of this one-half of the estate
beyond the death of her father, and tliat
Ida's cUldren took no interest in this portion
<rf the estate in case Ida survived her mother.
The provisions in clause 1 and clause 5
are somewhat analogous to the provisions
construed in the case of Harris v. Dyer, 18
R. I. 540, 642, 28 AtL 971, 972, where it was
said:
"There have been a number of cases of devises
where a gift to one in fee has been followed by
a gift over in case the devisee die with or with-
out issue, in which the event of death has been
referred to the lifetime of the testator [citing
numerous cases]. This construction has been
adopted to avoid repugnancy, inasmuch as the
alternative limitations over, if not so (qualified or
restricted, would reduce the prior devise from a
fee to a life estate. It is based on the obvious
reason that, if the testator had intended to give
only a lifi estate in the first instance, he would
have said so in the terms of the gift itself."
W't are of the opinion that the bequest in
tlie first clause, gave an absolute estate to
Ida In the one moiety of the estate therein
bequeathed in the event that she survived
her mother, with the right to the possession
thereof postponed under clause .3d to the
time of her father's death; and that in the
provisions of the fifth clause directing that
"if my daughter Ida shall decease leaving no
issue, her portion of my estate shall go to
said trustee," etc., the event of Ida's death
therein contemplated, is to be referred to the
lifetime of the testatrix.
[2] As to the one moiety of the estate t>e-
queathed by clause 2 to James H. Chappeli
in trust for the benefit of Henri Q. Chappeli,
it is clear that this trust is so far modified
by the language of the third clause that the
trustee for Henri was only to receive one-
third of the income for the benefit of Henri,
so long as the husband of testatrix lived.
It is further clear that the trust constituted
in the second clause and modified in the
third clause was in the nature of a spend-
thrift trust, as indicated by the words direct-
ing the transfer to Henri "if the said trustee
shall become fully satisfied at any time, that
my son Henri has fully reformed his life,"
etc.
[3] There is nothing in the record to show
that Henri ever did fully reform his life so
as to give effect to the provision for the
transfer of one-half of the estate to him;
and in view of the fact that the trust was
never terminated during the lifetime of the
father, trustee, and that it does not appear
that Henri ever claimed or attempted to
have the trust terminated either during his
father's lifetime or afterward, we are of the
opinion that the trust continued until the
death of Henri, and that never at any time
was he entitled to have the trust terminated
by the transfer of one-half of the estate to
him. The mere fact that no new trustee was
appointed after his father's death did not
operate to terminate .the trust Being a
trust for the protection o£ Henri against his
own improvidence and incapacity, we may as-
sume that there was a reason for its continu-
ance, until his death.
[4, 6] After his father's death he was entitl-
ed to receive the income from one-Iialf of the
estate; and it does not appear tliat he did
not so receive it. The making of his trust
deed to the complainant November 9, 1914,
after the death of liis father, and after the
complainant was appealed administrator
with will annexed of the estate of Abby D.
Chappeli, and tiad received the estate into
its custody as such administrator, simply op-
erated, so far as this property was concerned,
to transfer Henri's right to the income of ooe-
half of the estate to the trustee for the bene-
fit of the wife, IJevinia. It may be that oth-
er property was conveyed by this trust deed.
As to that the record is silent But the making
of this trust deed did not operate to terminate
the trust, wlilch could only have been term-
inated under the terms of the will by the
act of a trustee in the event that such trustee
should have become "fully satisfied at any
time, that my son Henri has fully reformed
his life, so that he can safely t>e trusted wltli
the management of property," etc. It was
the plain Intent of the testatrix that only in
such event should oue-half of her property
be transferred to Henri free of trust A
trustee to administer this trust under the will
could have been appointed if the parties In
interest had so desired. In view of the fact
that the estate consisted only of personalty
in the bands of the complainant as adminis-
trator, It was probably deemed unnecessary.
No claim is made that the income of the one-
half of the estate was not after November 9,
1914, paid over by the complainant to Lie-
vinia so long as Henri lived.
As to the continuance of the trust and the
appointment of a new trustee after the death
of James H. Chappeli, the case is analogous
in principle to the case of Burdick t. Ood-
dard, 11 R. I. 516, where a trust of personal
estate was created under the Halsey will for
the benefit of a married woman, to pay over
to her —
"for her sole and separate use and benefit, and
upon her sole and separate receipt and dis-
charge, such part of said fund, whether of in-
terest or principal, or both, at such times and
in such sums as they in their discretion shall
consider expedient necessary, and proper."
It appeared that in the lapse of time all
of tlie original trustees liad died, the fund
was on deposit, and was in the control of the
executors of the last surviving trustee ; that
the cestui que trust had become a widovr
and had married again and was covert
at the time of filing the bill, which asked for
a termination of the trust by payment of the
whole fund to the complainant, Mrs. Burdlck,
with an alternative prayer for the appoinb-
meut of a new trustee, and defining his pow-
ers. It was held that the powers and dis-
cretions given to the trustees to pay over
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R.I)
MORAN ▼. TUCKER
827
the fond as above set forth were essential
to the purposes of the trust, and passed to
the snccessors In trust of the original trus-
tees, that the trust extended over the new
coTerture, and that, the original trustees
being dead, the court would appoint a new
tngtee with the powers given by the will,
bat would not order the trust fund paid over
to the beneficiary to end the trust See, also,
Blakely, Petitioner, 19 R. I. 324, 33 AQ. 618;
Smith V. Hall, 20 H, I. 170, 173, 37 Atl. 098.
It may be noted that after the decision of
Bardick v. Goddard, supra (1877), a statute
(Gen. Laws 1896, c. 208, Si 5, 8, In opera-
tion on and after February 1, 1896) was en-
acted whereby It was provided (section 5)
that every trustee appointed pursuant to
tbe provision of that chapter shall have the
same powers, authorities, and discretions,
and may in all respects act as if be bad been
originally appointed a trustee by tbe Instru-
ment, if any, creating the trust; and sec-
tion 8 provides that the preceding seven seo-
tions shall apply to trusts heretofore as well
as those hereafter created, and shall be con-
sidered in addition to tbe ordinary equity
powers of a court of <*ancery. Smith v.
Hall, supra, 20 R. I. 173, 37 Atl. 698. See,
also, Godfrey v. Hutchins, 28 R. I. S21. 68
Atl. 817; Hayes v. Robeson, 29 R. I. 220,
69 Atl. 686. The same statute was re-en-
acted In Gen. Laws 1909, c. 259, {{ 6, 8, in
operation December 31, 1909.
[I] This statute was In force at the death
of James H. Chappell in 1914, and now re-
mains in force, and under It it Is dear that
a new trustee, had one been appointed un-
der the will in place of James, deceased,
would have had the same powers and dis-
cretions as be had.
[7] We are of the opinion that it was clear-
ly the intention of the testatrix to protect
her son, Henri, from his own lack of ca-
padty in the management of property, and to
provide for the continuance of the trust dur-
ing his life except In tbe event that he
should have "fully reformed"; that the pow-
er and discretion vested in tbe trustee under
her wtll to transfer to Henri free of trust
was a power and discretion annexed to the
office of trustee, and would have passed to
a succeeding trustee. In the absence of the
statute above referred to. Inasmuch as with-
out such power the puri)oses of the trust
might have been defeated. The question
whether Henri Q. Chappell bad "fully re-
formed in his life" could have been as well
determined by a successor In the trust as by
the original trustee.
We therefore find that the trust ciHitlnued
until the death of Henri Q. Chappell (fourth
clause); that at his death be left no issue;
and that accordingly at his death the one-
half of the estate held In trust for Henri be-
came the property of Ida Douglas Jack.
In view of the foregoing, under the facta,
tbe fifth clause has no effect ; none of the
conditions therein enumerated having hap-
pened.
Our opinion is that I«vlnla A. Cham)ell
has no estate or Interest in tbe fund In the
hands of the complainant; that Ida Douglas
Jack is entitled to receive the whole fund,
after deduction of the necessary expenses of
administering the estate; that Ida Douglas
Jack is entitled to an accounting from tbe
complainant unless tbe complainant and she
can agree upon a settlement ; that, inasmuch
as the trust terminated at the death of Henri
Q. Chappell, there Is no need of the formal
appointment of a trustee under tbe will,
since all of the fund Is in the hands of the
complainant, and the complainant can settle
an account with Ida Douglas Jack without
the intervention of any new trustee.
The parties may present for our approval
a decree In conformity with the above on
Monday, July 2, 1917, at 10 o^clock in the
forenoon.
(40 a. I. 485)
MORAN ▼. TUCKER. (No. 4996.)
(Supreme Court of Rhode Island. July 5,
1917.)
1. Fraud «=s31 — REQnisrrKs — Ajtirkancb .
or Contract.
Ordinarily a deceit action for damages caus-
ed by fraudulent misrepresentations in procur-
ing a contract is nredicated on the contract's
athrmance.
[F.d. Note.— For other cases, see Fraud, Cent
Dig. i 27.J
2. Fraud #=s»34— Aftibkaitcx of Cohtract—
Kecessitt.
A purchaser after making a part payment
may sue his vendor in deceit for fraudulently
securing tbe contract without completing the
payments thereunder.
[Ed. Note.— For other cases, see Fraud, Cent
Dig. { 29.1
Exceptions from Superior Oourt, Provi-
dence and Bristol Counties; J(dm W.
Sweeney, Judge.
Action by Bdward R. Moran against Fran-
cis E. Tucker. Verdict for plalntlfT, and
defendant excepts. Exceptions overruled,
and case remitted, with directions to enttt
Judgment upon tbe verdict
O'Shatmessy, Gainer & Carr, of Providence,
for plaintiff. Green, Hinckley & Allen, of
Providence (Chauncey B. Wheeler and Harold
P. Salisbury, both of Providence, of counsel),
for defendant
SWEETLAND, J. This is an action of
trespass on the case in deceit brought to re-
cover damages for alleged fraudulent misrep-
resentations made by the defendant to the
plaintiff in a transaction between them re-
lating toi the sale of certain land.
The case was tried before a Justice of the
superior court sitting with a Jury, and re-
sulted In a verdict for the plaintiff. Said
Justice denied the defendant's motion for a
new trial. The case Is before us upon the
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101 ATLANTIC REPORTER
(B.I.
defendant's exception to tbe decision ot tbe
Justice on said motion and upon the defend-
ant's exceptions to certain rulings of tbe Jus-
tice inade in the course ot tb» trial.
From the evidence the Jury were warrant-
ed In finding the following: Through the
efforts of the defendant eight persons pur-
chased from the Canadian Padflc Railway
Company certain land in the proTince of Al-
berta, in the Canadian Northwest The de-
fendant was the purchaser of one section ot
said land known as section No. 27. Section
No. 27 stood on the records in the name of
the defendant's wife. These lands were held
In severalty ; but the owners had entered in-
to an agreement to cultivate said land Joint-
ly. This Joint enterprise they termed the
syndicate. The defendant was made the
manager and treasurer of said syndicate. In
the spring of 1913 he went upon the land and
made some arrangements for the purchase ot
machinery and supplies to cultivate said
syndicate land. The defendant also claimed
that he had procured from the Canadian
Pacific Railway Company an option for the
purchase of an additional 1% sections of land
adjoining the land of the syudicata In
April, 1913, the defendant came to Providence
and met the plaintiff. The defendant then
represented to tbe plaintiff that the affairs
of the syndicate were in a sound, prosperous,
and profitable condition ; that he intended to
plant a number of sections of the syndicate
land largely with flax ; that everything was
in readiness for the Immediate planting of
several sections of said land; that he him-
self intended to increase his holdings in the
syndicate until he owned 5 sections ; that for
$1,000 in cash and a four mouths' note for
$400 he would purchase for the plaintiff one-
half section of the section and one-half of
land upon which he held said option and
make arrangements that the plaintiff might
put the land thus purchased into the syndicate
and share In the profits of that enterprise.
These representations were false. The af-
fairs of the syndicate were not prosperous;
the defendant knew that he was not able
and he did not Intend to plant a number ot
sections of the syndicate land ; he bad learn-
ed that It was too late in the season to plant
flax and that said land was not suited to tbe
cultivation of flax; he did not Intend to in-
crease his holdings in said syndicate, but was
at that time endeavoring to dispose of the
section which be did own ; he did not intend
to use said $1,400 to purchase one-half sec-
tion of land for the plaintiff from the
Canadian Pacific Railway Company, but did
Intend to turn over to the defendant one-halt
of section No. 27, a portion of tbe land which
he held In the syndicate. From the evidence
the Jury were warranted In finding that the
defendant obtained the $1,000 cash and the
four months' note for $400 from tbe plaintiff
through false representations.
Upon learning that the defendant had de-
ceived him the plaintiff gave the defendant
notice that be rescinded the contract ; and he
demanded that tbe defendant return to blm
said $1,000 In cash and the four months'
note for $400. The defendant claims that
because the plaintiff did not go on and com-
plete the payment of $1,400, but did disaffinu
the contract and d^uanded a return of the
money fraudulently obtained from him, tbe
plaintiff has loet his right to sue In deceit
The Jury found specially that when be
made tbe contract with tbe plaintiff It was
tbe intention of the defendant to sell to the
plaintiff one-half of section No. 27 which be
held in said syndicate, and that he did not
Intend to purchase for the plaintiff a one-
half section of tbe 1% sections of land on
which the defendant claimed that he had an
option. This finding was fully supported by
the defendant's letter of June 1, 1913, to the
plaintiff, and by otber evidence In the case.
It thus appears that the defendant not only
by fraudulent misrepresentations induced
the plaintiff to enter Into a contract with
him for the sale of land, but also that In
further fraud ot the plaintiff the defendant
did not Intend to procure for the plaintiff the
land which the defendant had promised to
purchase.
[1,2] Generally an action in dec^t for
damages caused by fraudulent misrepresenta-
tion in procuring a contract In based upon
tbe theory of an affirmance of the contract.
It has been held that In the case of an ex-
ecuted contract the party defrauded has the
right to pursue one of two remedies, either
he may rescind the contract, return what ha
has received under it, and sue to recover
back what he has paid, or be may aflSrm the
contract and sue for his damages In an action
for deceit ; but he cannot pursue both r«ne-
dies. This is a reasonable rule, for the con-
tract has been executed, and the victim of the
fraud, without incurring tbe risk of further
loss, is free to elect the remedy which ap-
pears more beneficial to him. In many cases
where the contract is only partially executed
it would be unjust to bold, because of the
theory on which the action of deceit is said
to be based, that the party defrauded shall
lose the advantage which in our practice at-
taches to a tort action, unless he makes
further venture in tbe transaction into which
he bas been Induced by fraud to enter. Tbe
force of this is apparent In a case like that at
bar. By fraud the defendant bas obtained
$1,000 of the money of the plaintiff. The
plaintiff knows of that fraud, and he edso
knows from the actions and the statements
of the defendant that the defendant does not
Intend to make performance of the contract
on his part In those circumstances the
plaintiff should not be required to pay $40O
more to the defendant before the plaintifF
shall be permitted to sue in deceit to recover
tbe damages which he has already suffered
by the fraud. In Wtkxieo. y. Cole, IS Mich.
265, tbe court said:
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WHiriTET OO. y. CHURCH
829
"This te not, aa dalmed by Warren, a aait to
enforce a contract On the contrary it la an ac-
tion of tort, to recover damages for a deceit and
imposition claimed to have been practiced on
Cole and Arnold, whereby they were fraada-
lently induced to make an agreement they would
not have made had they known the truth. This
beioK the character of the suit, it cannot be
Berionsly contended that a person repudiating
a contract (or fraud cannot sue for redress, if
he has suffered damage from it."
If, after being Informed of the fraud which
had been practiced upon liim, the plaintiff
had gone on and completed his payments
and had received the land which the de-
fendant fraudulently intended to substitute
for that which he had undertaken to pur-
chase, under the autborltj of some of the
cases the plaintiff should be held to have
condoned the fraud and to have lost his right
to sue in deceit A carefully considered case
In support of that position is Kingman v.
Stoddard. 85 Fed. 740, 29 C. C. A. 413. In
Slniou V. Goodyear Metallic Rubber Co., 105
Fed. 573, 44 C. C. A. 612, 52 L. B. A. 745,
Hr. Justice Lurton said:
"If one, after fall knowledge of the fraud and
deceit by which he has been induced to make a
■ale of property, goea forward and executes it
notwithstanding such fraud, the damage which
he thereby sustains is voluntaril^r incurred.
The maxim 'Volenti non fit injuria,' has ap-
plication to all loss resulting from the voluntary
execution of a nonobligatory contract with full
knowledge of the faxrts which render it void-
able."
Selway y. Fogg, 6 Mees. & W. 83, was an
action In assumpsit to recover payment for
certain work the value of which amounted
to £20. The defendant claimed a contract
on the part ot the plaintiff to do the woiiL
for £15. The plaintiff Insisted that that con-
tract had be«i obtained by fraudulent mis-
representation on the part of the defendant
Baron Parice said:
"I also think that^ upon discovering the
fragd, (unless he meant to proceed according to
the terms of the contract), the plaintiff should
immediately have declared off, and sought com-
pensation for the bygone time in an action for
deceit; not doing this, but continuing the work
as he has done, he is bound by Uie express
terms of the contract and if he ttJl to recover
on that, be cannot recover at all."
In Vemol v. Vemol, 63 N. X. 46, the court
held, aa appears in the headnote of the case,
that:
"Where a party is induced to enter into an
executory contract for the purchase of lands
by means of false representation on the part of
the vendor, if, after discovery of the fraud, he
accept a conveyance, he cannot set up the
fraud as a defense in an action for the purchase
money."
See People y. Stephens, 71 N. T. 627.
It should be noted, however, that many
cases hold in the case of a contract procured
by fraud that the party defrauded may go
on after knowledge of the fraud and per-
form the contract and not lose his rl^t to
an acti<m of deceit when It appears that
there has been no waiver of the claim for
daoiages. We are not called to pass upon
this point, as tbe plaintiff did not go on with
the contract in question ; and we are fully of
the opinion that In refusing to go on the
plaintiff did not lose his right of action In
deceit.
The defendant's exception to the ruling of
said Justice denying tbe defendant's mo-
tion for the direction of a verdict and tbe
defendant's exception to the decision upon
bis motion for a new trial should not be sus-
tained, either on the ground that there has
been a waiver by the plaintiff of an action
for deceit or on the ground that the issue of
fraud raised by tbe declaration was not sup-
ported by the evidence.
The other exceptions of the defendant are
without merit, and require no discussion in
this opinion.
The defendant's exceptions are all over-
ruled, and tbe case Is remitted to the su-
perior court, with direction to enter Judg-
ment upon the verdict
(»i Conn, est)
WHITNEY CO., Inc., v. CHURCH et ui.
(Supreme Court of filrrors of C<mnecticut
June 14, 1917.)
1. Abbitbatioit and Awabd «=934 — Pboob-
DUBK— INIBODUCTION OF EVIDENCE.
In arbitration proceedings, where the arbi-
trators stated they would require plaintiff to
prove the value of extra work done by him,
but plaintiff elected to rely upon the conclusive-
ness of the architect's statement as to the val-
ue, and defendant introduced evidence as to the
value, plaintiff could not complain that it was
error not to reopen the case to show the value.
[Ed. Note. — For other cases, sea Arbitration
and Award, Cent IMg. U 177-183.]
2. GORTBACTB «=3287(2)— COKSTBUOTIOIf— AS-
BITBATION.
A building contract providing that if ex-
tra work was required, it should be valued by
the architect and the contract price be increased
according to his valuaticm, but that if the valu-
ation was not agreed to, Uiere should be an ar-
bitration, the architect's certificate of value
was not conclusive.
[Ed. Note.— For othw cases, see Contracts,
Cent Dig. f 1332.]
8. Abbitbation and Awabd 9s384— Corduot
OF PB0CEKDZNG8— PbEJCDICB.
Plaintiff in arbitration was not harmed by
act of arbitrators in receiving letter from de-
fendant reiterating defendant's testimony as to
a proposition on which the arbitrators ultimate-
ly ruled in entire accord with plaintiff's conten-
tion.
[Ed. Not& — For other cases, see Arbitration
'and Award, Gent Dig. H 177-183.]
4. Abbitbation and Awabd «=>31— Gondvot
or Fbocebdinos— Pbejttdice.
Plaintiff in arbitration was not harmed by
act of one arbitrator outside a session in talk-
ing with a witness, who admitted a mistake in
his testimony, resulting in an allowance more
favorable to plaintiff than would otherwise have
been made.
[Ed. Note.— For other cases, see Arbitration
and Award, Cent Dig. {{ 156-164.]
5. Abbitbation and Awabd ®=»31— Gorduot
OP Pboceedinos — Pbejtjdice.
Plaintiff in arbitration was not harmed by
conduct of one arbitrator after decision against
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330
101 ATLANTIC RBPORTBR
(CSonn.
plaintiff u to existeneo of trade cuBtom In aak-
ing a contractor outside of seasiona what the
trade custom waa.
[Eld. Note. — For other cases, see Arbitration
and Award, Cent Dig. SS 166-181.]
6. Abbitbatioit and Awabd «s>2&— Powkbs
or ABBITRATOB8 — IinOTINO SCOPB.
Under agreement to arbitrate, providing that
the arbitrators are fully authorized and empow-
ered to determine and make a decision on all
questicma in controversy of every kind and char-
acter submitted hereunder, the arbitrators could
not, by B rule of their own, limit their powers.
[Ed. Note.— For other cases, see Arbitratiim
and Award, Cent Dig. St 147-154.]
Appeal from Superior Court, Fairfield
County ; James H. Webb, Judge.
Arbitration of oontrovei'sy between the
Whitney Company, Incorporated, and Alfred
W. Church and wlfa From a Judgment for
remonstrants against the Whitney Company,
such Company appeals. No error.
John B. Keeler, of Stamford, and William
A. Moore, of New York City, for appellant
Spotswood D. Bowers, of Bridgeport, for
appellees.
SHUMWAX, J. The controversy between
die parties arose out of a building contract
in which the Whitney Company was con-
tractor and A. W. Church was the owner of
the building. The cause was submitted to
arbitration under a rule of court The ar-
bitrators, having made an award, returned
the same to the superior court The de-
fendants moved the court to accept the award
and render Judgment thereon as provided
in section 957 of Geoeral Statutes. To the
acceptance of the award the plaintiff re-
monstrated, alleging that the arbitrators,
"misconducted themselves in sucb manner as
evinces partiality toward the defendant and
prejudice against the plaintiff," specifying as
such misconduct that the arbitrators called
before them In secret session a witness who
had testified In behalf of the defendants,
and examined the witness In the absence and
without the consent of the plaintiff or Its
ooonsel; that the arbitrators addressed a
letter to one of the defendants, and received
from blm an answer, "containing matter of
an evidential nature"; that one of the ar-
bitrators made an inquiry of a certain con-
tractor as to the construction as understood
by contractors of a clause In the buUdlng
contract, the subject of this action. The re-
monstrant further alleged that the arbitra-
tors departed from the principles announced
by them as governing their hearing, "and
specifying as such departure certain rulings
upon the admission and rejection of evidence,
as well as making erroneous rulings as to the
legal interpretation of the building con-
tract between the parties, and that the ar-
bitrators made an award upon matters not
in any way submitted to them." The su-
perior court overruled the remonstrance and
accepted the awanl and rendered Judgment
for the defendants to neorec <yt the plain-
tiff, the Whitney Company, $5,200.21 dam-
ages. Tlie plaintiff appealed from tlie Judg-
ment, and at the plaintiff's request the court
made an extended finding, setting out In de-
tail, the proceedings before the arbitrattMS.
The matters contained In the third para-
graph of the remonstrance In the superior
court raise the most important qnestl<m In
the case, and Justly It was so regarded by
that court The allegations in the paragraph
named are. In substance, that the arbitrators
refused, "to admit and consider proper com-
petent and relevant testimony" offered by
the contractor as to the value of certain
items claimed by the plaintiff to be extra
work. The clause in the contract covering
the "extra work" that might be required in
carrying out the contract is as follows:
"Should any alterations be required in the
work shown or described by the drawings _ or
BpecificationB a fair and reasonable valuation
of the work added or omitted shall be made by
the architect and the sum herein agreed to be
paid for the work according to uie original
specifications shall be increased or diminished
as the case may be. In case such valuation is
not agreed to the contractor shall proceed with
the alterations upon the written order of the
architect and the valuation of the work added
or omitted shall be referred to three (3) arbitra-
tors (no one of whom shall have been connected
with the work to which these presents refer)
to be appointed as follows: One by eadi of
the parties to this contract and the third by
the two thus chosen, the decision of any two of
them shall be final and binding upon both par-
ties."
[1, 2] The Whitney Cbmpany contended be>
fore the arbitrators that under this dause
In the contract, the valuation placed upon
this "extra work" by the architect was con-
clusive. This dalm of the Whitney Company
was properly overruled by the arbitrators,
and thegr informed counsel or the parties that
they, the arbitrators, would expect them to
offer some evidence tending to prove that the
items of "extra work were of the value In
respect to time and material as Indicated in
their statement of claim," and this while
the Whitney Company was presenting; its
evidence. The position taken by the arbitra-
tors and the ruling uiton the question was
repeatedly called to the attention of plalatifif's
counsel, but he closed the testimony for the
plaintiff without offering the evidence in-
dicated. The defendante as part of their
case having offered evidence of the value of
the "extra work," the plaintiff asked to be
allowed to again open the evidence as to the
value of "extra work." The defendants ob-
jected, and the arbitrators sustained them;
the arbitrators ruling that it was not re-
buttal testimony. By this ruling of tBe ar-
bitrators, the plaintiff was deprived of no
right It had full opportunity to prove its
case, but preferred to rest upon its claim
that the valuation of the architect waa con-
clusive upon the defendant Although the
ruling of the arbitrators might have been
iSsoFoT otber ease* see fame toplo and KBT-MtTMBER In all Key-Numbered Dlimti and iBdaxas
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Conn.)
WHITNET CO. T. CHURCH
831
thought to be erroneous, It was the plain-
tiff's duty to abide by and comply with the
mllng and condnct his case In accordance
therewith or take his chances of losing all
right to produce the evidence 11 the rulings
of the arbitrators should be finally sustained.
The mllng of the arbitrators was correct,
and If the plaintiff had lost some substantial
right, it coald not complain, for It had full
opportunity to prove its case if it had seen
lit to do so. But this ruling affected but few
Items In the plaintHTs claim, and these not
in any substantial manner unless the claims
of the plaintiff bad been fully sustained.
[3-S] Referring now to the claimed miscon-
duct of the arbitrators In writing a letter
to one of the defendants without the knowl-
edge m- consent of the plaintiff, it appears
that this letter was written after the defend-
ant had testified, and in his reply to the
letter he reiterated in substance his testi-
mony before the arbitrators. Notwithstand-
ing the letter and the testimony, the arbitra-
tors awarded to the plaintiff the full amount
of the item as claimed by the plaintiff to
which the communication referred. One
Conklln had testified before the arbitrators
•8 to the value of certain plumbing work,
and In his testimony had snbmitted figures
showing the value of the work. These figures
Were received with the plaintiff's consent.
This testimony was under discussion in
private session, and one of the arbitrators
claimed there was an error in Oonklln's fig-
ures. One of the arbitrators happened to meet
ConkUn In the building where they were con-
ferring, and called his attention to the
claimed mistake. Gonklln admitted there
Wag a mistake. The amount awarded by the
arUtrators was $156.50 less than the figures
snhmitted by Conklln and to that amount
more favorable to the plaintiff. The finding
shows that there was a controversy over the
doors which the plaintiff furnished for the
building. The spedflcatlons required they
should be VA Inches thick. The defendants
dalmed they should be allowed the expense
of putting in doors 1% inches thick. The
plaintlfl claimed that there was a trade cus-
tom to the effect that specifications calling
for doors 1^ inches la thickness meant a
door 1% inches thick. The arbitrators de-
cided against the claim of the plaintiff. Aft-
er the arbltrat(Mrs had decided this question
in this manner, one of the arbitrators met
a contractor, one Mr. Bottomley, and asked
him if there waa snch a trade custom. The
fact of this conversation was reported to the
counsel of the plaintiff before the final award
and no protest was made or other action tak-
en until the remonstrance was filed in the
superior court.
Certainly there was notlilng in these sev-
eral acts of claimed misconduct on the part
of the arbitrators that was harmful to the
plaintiff or showing any partiality or prej-
udice, and the award should not be set aside
on account of them.
The plaintiff lias also assigned as error the
action of the court in holding that the arbitra-
tors in allowing damages to the defendant on
account of delay in the work from' June 28,
1913, to December 1, 1913, was not contrary to
the provisions of the submission to arbitration,
and contrary to the principles of procedure
announced by the arbitrators. The original
contract in question was made in the spring
of 1912. Differences having arisen between
the parties, the work was discontinued, and
the parties made a supplemental agreement
on June 24, 1913, in which latter agreement
it stipulated that the work should be com-
pleted by December 1, 1913. The agree-
ment to arbitrate provided, among other
things:
"The arbitrators are fully authorized and em-
powered to determine and make a dedsicHi on
all questions in controversy of every kind and
character submitted hereunder."
The very first clause of the agreement to
arbitrate was this :
"That all questions in controversy as to dam-
ages for delay be submitted tr> arbitraticm."
There is some question whether the de-
fendants should recover damages for the de-
lay between June 28, 1913, the date of the
agreement to arbitrate, and December 1,
1913, the time when by that agreement the
plaintiff was to complete the work, but it
does not appear from the finding that they
did allow damages for that period. The
defendants' claim as stated in their counter-
claim was as follows:
Rental value of premises 13 months at
$700 per mo. $9^00
Rental value of portion of premises 2
mos. at $400 perma 800
$9,900
The finding states that the arbitrators con-
sidered these two sums, $9,100, and $800,
together, and the "lump sum" of $6,500 was
allowed as a compromise between the ar-
bitrators. The evidence showed that by the
original agreement the plaintiff agreed to
complete the contract by May 1, 1913, and
the residence was completed about Septem-
ber 1, 1914, and the contract called for an
expenditure of upwards of $90,000. The
damages suffered by the defendants by reason
of the failure of the plaintiff to keep its
contract was a question of fact, and it does
not appear that any illegal elements were
Included in the amount awarded.
This court has uniformly held that an
award of arbitrators will be set aside only
for partiality and corruption in the arbitra-
tors or mistake in their principles. In re
Curtls-CasUe, 64 Conn. 516, 30 AU. 769, 42
Am. St Rep. 200 ; Brown v. Green & Noyes,
7 Conn. 542.
[I] In this case the submission was broad
and comprehensive, and a rule adopted by the
arbitrators as to their method of procedure
could not operate to limit their powers un-
der the submission, especially as in this case.
If there was an announcement that hearings
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332
101 ATLANTIC REPORTER
(Conn.
would be conducted u a case In court, such
Intention waa abandoned and —
"it was decided to go ahead and have counsel
Present, but that the arbitrators were not to
e bound by the strict rules of evidence, and
that they should have the right to go outside
the record and make such inquiry as they saw
fit to get light upon it and to get information
to help in making a fair award, which waa ap-
parenuy consent^ to by the parties."
Tliere la no error. The otber Judges con-
curred.
(91 Conn. BSB)
ACAMPORA V. WARNER.
(Supreme Court of Errors of Connecticut.
June 1, 1917.)
1. MOBTOAOES «=>497(1)— FOBECLOSUBB— Br-
Under Gen. St. 1002, { 4123, providing that
foreclosure of a mortgage bars further action
on the debt unless the persons liable for pay-
ment .thereof are made parties, the foreclosure
operates as a payment of the debt, unless the
creditor makes all persons, liable for the pay-
ment, parties to the foreclosure proceedings.
[Ed. Note.— For other cases, see Mortgages,
Cent Dig. » 1469, 1471, 1473^
2. MOBTOAOEB ^=»569(4)— FOBBOIiOBUBB— Ev-
FBCT.
Such method is not the only one by which a
d^ciency may be determined.
8. MOBTOAOES l3=>505(l)— F0BKCI.0817HE— Db-
FiciENOT Judgment— Appraisal.
When a mortgage is foreclosed the mort-
gagor, being a party, may demand an appraisal
to determine the value of the property as a
means of fixing any deficiency, but when there
is no appraisal a further suit on the Judgment
is not barred.
[Ed. Note.— For other cases, see Mortgages,
Cent Dig. { 1501.]
Appeal from City Court of New Haven;
John R. Booth, Judge.
Action by Raphael Acampora against Hu-
bert B. W/amer, Jr. Judgment for plalntlfl,
and defendant appeals. No error.
Henry W. Stowell, of New Haven, for ap-
pellant. Arthur C Graves and Robert J.
Woodruff, both of New Haven, for appellee.
RORABACK, J. On January 5, 1913, the
plaintiff obtained a Judgment against the
defendant in the court of common pleas for
New Haven county for $327. An execution
was issued upon this Judgment on January
31, 1913, and a deputy sheriff levied upon
a certain automobile belonging to the de-
fendant and tools It Into his possession. The
defendant desired to use the automobile In his
business, and requested the plaintiff's attor-
ney to accept as temporary security for the
payment of the Judgment a note and mort-
gage for $327 upon two pieces of real estate
of which the defendant was the record own-
er. The lien upon the automobile was then
released. The plaintiff was not present when
the defendant offered his note as security for
the Judgment, but the plaintiff's attorney
accepted this note and mortgage with the
distinct understanding that they were re-
ceived as temporary security only for the
payment of the Judgment. The defendant
represented to the plaintiff's attorney that
he Intended to settle this Judgment within a
short time, and merely gave the note and
mortgage temporarily. At the time of giving
this mortgage, the defendant grossly magni-
fied the value of the mortgaged property, and
represented to the plalntiCTs attorney that
one piece represented In the mortgage waa
worth at least $4,500, and was mortgaged for
only $2,500, and that the other piece was
worth iajSOO, and was mortgaged for only
$1,700. As a matter of fact, both of these
pieces of real estate were worth less tban
the first mortgages upon them, and the de-
fendant's interest in both was worthless.
After falling to keep many promises to pay
the Judgment made by the defendant, the
plaintiff on February 24, 1913, brought fore-
closure proceedings on the mortgage, and on
March 21, 1913, obtained a Judgment of
strict foreclosure thereon. On or about the
date of final Judgment In the foreclosure pro-
ceedings, the plaintiff was himself foreclosed
by the holders of prior mortgages, and the
plaintiff failed to realize anything upon his
Judgment debt against the defendant. No
deficiency Judgment was asked for or taken
in the foreclosure suit. The defendant con-
tended that the Judgment of foreclosure
against the defendant, upon the mortgage,
operated ipso facto as an extinguishment oC
the Judgment debt
[1] Prior to 1833, the foreclosure of a
mortgage operated as a bar to any subse-
quent action on a mortgage note. (Chapter 18
of the Public Acts of 1833 removed this bar,
and ever since then the right of a mortgagee
to a deficiency Judgment after strict fore-
closure has always been coupled, In this
state, with some provision for fixing the
actual value of the property as of the date of
the foreclosure, and for making that valua-
tion a basis for determining the existence
and amount of any claimed deficiency. Rev.
1849, UUe 12, c 3, p. 341, i 27; Rev. 1866.
title IS, c. 3, p. 396, i 28 ; Rev. 1875, title 18,
c. 7, p. 358, i 2 ; General Statutes of 1888,
§ 3011; (Jeneral Statutes of 1902, { 4124.
See Staples v. Hendrick, 89 Conn. 100, 103,
93 AtL 5. Section 4123 of the General Stat-
utes of 1902 provides that:
"The foreclosure of a mortgage shall be a bar
to any further action upon the mortgage debt,
note, or obligatiou, unless the person or persons
who are liable for the payment thereof are made
parties to audi foreclosure."
This statute plainly indicates:
"That the foreclosure of a mortgage should
operate as a payment of the debt to secure
which the mortgage was given, unless the cred-
itor chose to make all the persons liable for the
payment of such debt parties to the foreclosure
proceedings." Ansonia Bank's Appeal from
Commissioners, 68 Conn. 257, 259, 18 AtL 103O,
1031.
"If the mortgagee is not willing to take the
property mortgaged as full payment for his
debt he has only to make all the persons to
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ConnJ
ROWELL y. ROSS
333
whom he may wish to resort for further pay-
ment parties to his foreclosure suit" Ansonia
Bank's Appeal from Commissioners, supra.
[2] There Is no merit In the defendant's
contention tbat the method laid down by the
statutes is an excluslre method by which a
mortgagee may collect the deficiency, if any,
and is the only method by which a supposed
deficiency may be determined. As we have
stated such a procedure is binding only as to
those upon whose motion the sale was or-
dered.
[3] The defendant was a party to the fore-
closure suit, but there was no appralsaL
The Legislature did not intend to bar suits
trheie there was no appraisal. It did iutend
that the mortgage debtor as well as the
-creditor should haye an opportunity to have
an appralsaL This is optional, not com-
pulsory. The statute proceeds upon the
theory that the debtor has an interest In
baying an appraisal; therefore he may move
for the appointment of appraisers. Wind-
liam County Savings Bank v. Hlmes, 65
<:k>nn. 433, 436, 12 Atl. 517.
There is no error. The other Judges con-
-cnrred.
(91 Conn. TOt)
ROWEIili ▼. ROSS et aL
(Supreme Court of Errors of Connecdeut.
June 14, 1917.)
1. Jttdomkrt 4=378— Bbbonboub JmtaumtT—
Consent of Defendant.
Where a def«idant appeared and admitted
hifl liability and consented in open court to en-
try of judgment against him for the full amount
of the ad damnum dause, it was error for the
-court to give judgment in his favor.
[Ed. Note. — For other cases, see Judgment,
Cent. Dig. § 133.]
2. Attobnkt and Cusnt «=»103 — Buplot-
MENT OK Assistant Cotjnsei. — Ratifica-
TIOW.
Defendant employed H., knowing that he
bad not been active in the practice of law of
late years, and that it might be necessary for
bim to employ counsd in some other state.
Shortly thereafter H. employed plaintiff as
counsel in the matter and informed defendant
thereof. Defendant made no objection then or
later when the matter was talked over in plain-
tiff's office. HM defendant was liable to plain-
tiff for the reasonable value of his services.
[lOd. Note.— For other cases, see Attorney
and Client, Cent Dig. { 154.]
8. Trial «s»11(3) — Transfeb of Causes —
Time.
Where the requests to transfer the case to
the jury docket were not made either within
.30 days of the return day or within 10 days
after an issue of fact was joined as required
by statute, the court did not err in granting
a motion ordering the issues tried to the court
(Ekl. Note.— For other cases, see Trial, Cent.
EHg. S 30.]
4. Appbai, and Grbob <S=»1211 — Right to
Traksfeb to Jubt Docket on Remand.
Where a case was sent back to the superior
4M>urt for a new trial, it remained on the court
docket, and unless an issue of fact was after-
wards joined, there was no right of transfer to
the jury docket.
[Ed. Note.— For other cases, see Appeal and
Error, Cent Dig. ${ 4711, 4712.]
Appeal from Superior Court, Fairfield
County; William H. Williams, Judge.
Action by George P. Rowell, an attorney
at law, against P. Sanford Ross and one
Hance to recover for professional services
rendered. Judgment for plaintifF and d»
fendant Honce. Defendant Ross and plain-
tiff appeal. Error on plalntilTs appeal; no
error on defendant's appeal.
Israel J. Cobn, of Bridgeport, for appellant
Ross. John 0. Chamberlain, of Bridgeport,
and George P. Rowell, of Stamford, for
appellant plalntifr.
BEACH, J. [1] This is the third appear-
ance of this case in this court The material
facts are stated in 87 Conn. 157, 87 Atl. 355.
On the last appeal a new trial was ordered
largely because the trial court excluded the
testimony of the defendant Hance as to the
terms of his employment by the defendant
Ross, and thus deprived the defendants of
a fair trial as to that branch of their de-
fense. When the case was tried again the
defendant Hance did not appear as a wit-
ness in his own behalf, or on behalf of Ross,
but admitted his liability and consented in
open court to a Judgment against himself
for the full amount of the ad damnum clause.
Nevertheless, the court gave judgment In
Hance's favor, and this we think was error.
The plalntifr was induced by the consent
to withhold his proofs as against Hance, and
It is hardly fair to require him on this ap-
peal to make out a case, which he was not
required to make In the trial court More-
over, It Is conceded on the brief by counsel
who represented Hance on the trial that the
court erred in rendering Judgment in Hance's
favor.
[2] The appeal of the defendant Ross turns
almost wholly upon the question whether
Hance as attorney for Ross bad general or
special anthority to employ the plalntlfF as
personal attorney for Ross so as to charge
Ross with liability for the reasonable value
of the plaintiff's services ; and, if not, wheth-
er Ross has made himself liable therefor
by dealing with the plaintiff as his persona]
counsel after knowledge that be was acting
as such.
The findings of the trial court are sufS-
cient to support the Judgment against Ross
upon either of these theories. They are
vigorously attacked, and it is assigned as
error that the trial court erred in finding
as appears by 14 separate paragraphs of the
finding, and in refusing to find as request-
ed in 24 separate paragraphs of the draft
finding. It is, however, unnecessary to pur-
sue these assignments of error In detail, be-
cause the essential facts on which the lia-
sFor otbsr easee aea same topic and KBT-NUMBBB Is all Kcr-Nombered Digests and tndaxM
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101 ATLAHTIO REPORTEB
(Cooa.
blllty of Ross rests are not seriously disput-
ed. It is sufficiently established by the evi-
dence that at the time Boss employed Hance
to collect the Judgment, he knew that Hance
bad not been active of late years In the prac-
tice of the law, and hiid reason to believe
that It might be necessary for him to employ
counsel In some other state; that within
a few weeks after Hance employed the plaln-
tlff Ross was Informed of the fact, and
made no objection to it; that he was there-
after informed from time to time in a gen-
eral way of the services that the plaintiff
was rendering, and that about a year and
a half after Hance had employed the plain-
tiff Ross came with Hance to the plaintiff's
office and was fully Informed as to services
wliicb had been rendered and would prob-
ably be rendered thereafter by the plaintiff.
These services finally resulted in a Judgment
for $17,600, wUcb the plaintiff settled for
112,500. The court has found that there
was no express agreement between Ross and
Hance that the latter should collect the judg-
ment upon the so-called 10 per cent basis.
This finding Is excepted to, but the deposi-
tions and testimony of the defendants on
this point were so contradictory and unsat-
isfactory as to Justify the court in finding
as It did. Moreover, as pointed out In 87
Conn. 162, 87 Atl. 855, the character and
extent of the plaintiff's services and the sub-
sequent conduct of Hance when the plaintiff
consulted talm as to his fees are not con-
sistent with the existence of a special con-
tract between the plaintiff and Hance; and
they are equally Inconsistent with the ex-
istence of such a contract between Hance and
Rosa
Tile defendant relies on the rule that an
attorney has no general authority to employ
counsel or associate attorneys at his client's
expense, and claims that there was no suffi-
cient evidence of special authority or ratifica-
tion. The rule relied on is correct, but we
cannot assent to the proposition that the de-
fendant Ross can take the benefit of the
plaintiff's services, knowing that he was em-
ployed as counsel In the case, and assenting
by his conduct to such employment, without
becoming liable for the reasonable worth of
the services rendered. The authorities on
tikis subject are quite numerous and some of
them very much In point. "It is elementary
law that an attorney in a particular case has
no general authority, by virtue of his re-
tainer, to employ other counsel, either by
way of substitution or as assistant or as-
sociate counsel, at tbe expense of bis client.
But where the employment of the original
attorney is general In its character, and
amounts to an agency In the legal business of
the client, or where the authority or the sub-
sequent assent ou the part of the client to
the employment of additional counsel can
fairly be inferred from the facts of the case,
the client will be bound by sucta employment."
Northern Pac. Ry. C!o. t. Clarke, 106 Fed.
794, 797, 45 O. a A. 635, 637. "If the at-
torney, who has the management of the suit,
employ an assistant at the trial, and the
client is present, and sees the person, thus
employed, assist in managing and conduct-
ing the suit the inference would be strong,
it not irresistible, that he consented to such
employment, and that he would be liable for
the fees of the assisting counsel." Brlgga
V. Town of Georgia, 10 Vt. 68, 70.
Where an attorney employs counsel it is a
question of fact whether be did not become
personally liable for his fees, although for the
benefit of his client. But if the client be pres-
ent at the trial, he is liable for the services of
counsel, although there was a secret agree-
ment by the attorney that he should pay for
them. Weeks on Attorneys (2d Ed.) p. 504.
"The plaintiff was employed in the case
through tbe agency of Porter, who was the at-
torney of record of tbe defendant in the suit,
and who also had the management and prepa-
ration of the case for trial. The plaintiff, be-
ing thus introduced Into the case, assumed the
relation of counsel In the presence of the de-
fendant, • • • and the defendant con-
sulted with him on the triaL This would
ordinarily be quite sufficient to render the
party liable for the services performed. But
it Is said that there was a special agreement
made between tbe defendant and the at-
torney of record, that if senior counsel
should become necessary, the attorney would
pay such counsel, and that the defendant
should be at no expense in relation theretOL
This was a secret arrangement, unknown to
the plaintiff, and one which, in the ordinary
course of professional services, he bad no
reason to suppose might exist It may oper-
ate as a valid contract between the parties to
it ; but as respects the plaintiff, it cannot un-
der the circumstances avail the defendant
• • • We think it was the defendant's
duty, before thus knowingly receiving tbe
plaintiff's services and accepting him as coun-
sel to manage his case, to inform bim of the
special agreement with Mr. Porter, and that
the defendant was to be at no expense for
the fees of the senior counsel. Not having
done so, but remaining silent on the subject
when he should have spoken, and when the
plaintiff might have withdrawn tron> the
case, tbe defendant after choosing to avail
himself of tbe professional services of the
plaintiff, cannot now avoid a personal lia-
bility for the payment of a reasonable cchu-
pensation therefor." Brtgham y. Foster, 89
Mass. (7 Allen) 419, 421. See, alao, 6 C. J.
668, 669, and numerous cases referred to in
the notes.
Tbe above excerpts state tbe rule applica-
ble to this case with such fullness and clear-
ness that we deem it unnecessary to add any
further comment
[3,4] Tbe defoidant also claims to have
been illegally deprived of a Jury triaL On
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Pa^
LAND TITLE «c TRUST CO. y. SHOEMAEEB
835
the first trial a jury was waived by stipula-
tion. When the time for the second trial ap-
proached the defendants, haTing filed s^a-
rate answers involving new issues of fact
claimed the case again for the Jury docket,
but failed to file within 3 weeks after the new
issues were Joined any written notice stat-
ing which, if any, of the issnes they desired
to be tried to the Jury. For this reason the
court granted a motion to erase from the Jury
docket and ordered the issues tried to the
court. Since then no new issues of fact have
been joined. When the case came back for
the second time to the superior court for a
new trial on the old issues of fact, the de-
fendants again attempted to have the case
put on the Jury docket, and their various re-
quests and motions to that effect were denied.
In this the court did not err. These last re-
quests that the case be entered on the Jury
docket were not made either within 30 days
of the return day or within 10 days after an
issue of fact was Joined as required by stat-
ute. When a case is sent back to the superior
court for a new trial, it goes back to the same
docket as before. If to the court docket, it
remains there unless an issue of fact Is after-
ward Joined, when it may be transferred
to the jury docket on request within 10 days
thereafter. But the statutes make no pro-
vision for the transfer to the jury docket of
a case which has been tried to the court and
sent back for a new trial, unless an issue
of fact is joined after the case is remanded,
or the court in Its discretion orders it to be
tried to the jury.
There is error on the ptaintlfTs am)eal.
There is no error on the defendant's appeal,
nie other Jndees concurred.
(ST Pa. 213)
LAND TITLE & TRUST CO. t. SHOB-
MAKER.
(Supreme Court of Pennsylvania. March 19,
1017.)
1. MOSTOAOXS i8=>567(2) — Fund — Disposi-
TIOH.
An owner of real estate executed a mortgage
thereon to a trust company for $40,000, when
only $82,000 had been loaned, and gave the
mortgagee a demand note, providing that the se-
curities pledged and any thereafter pledged
should apply io the same way to the payment of
bis future obligations, and that the securities
should stand as a general continning collateral
security for the whole obligation. Thereafter
the mortgagor gave the trust co^lpan; a bond
to indemnify it against loss from issuing a ti-
tle policy in favor of mortgagee of other prop-
erty owned by the mortgagor, and later gave a
second mortgage upon the property covered by
the first $40,000 mortgage: the second mort-
gagee having notice that only $32,000 had been
loaned on the first mortgage. The trust com-
pany's mortgage was thereafter foreclosed and
the property sold. Held, that under the agree-
ment between the mortgagor and the trust com-
puiiy a potential obligation such as that createtl
by the bond of indemnity related back to the
time of the execution of the mortgage, when it
became a fixed liability, and that the trust
company was entitled to payment of the fall
amount of the $40,000 mortgage in preference to
the second mortgagee.
[Ed. Note.— For other cases, see Mortgages.
Cent Dig. §{ 1686, 1637.]
2. MOBTGAGES lS=50, 90— CoNTBACT FOB PU-
TDBE AFFIBMANCE— ReCOBD.
Where a contract for advances or for the
assumption of future obligations accompanies a
mortgage, it is not essential to its validity that
the engagement as to advances be placed on
record or expressly referred to in the mortgage.
(Bid. Note. — For other eases, see Mortgages,
Cent Dig. H 13»-140, 109, 200.]
3. MOBTGAGES <S=16, 115— FuTtJBE ADVANCB-
MENTS— CONSTBCCTION.
Where a contract for advances or for the
assumption of future obligations accompanies a
mortgage, there is a sufficient consideration for
the mortgage, and the lien of payments made un-
der the contract relates back to the date of the
naortgage, even though the advances are liquida-
tions of assumed responsibilities incurred after
the date of subsequent or Junior incumbrances
placed upon the mor^aged property.
[Ed. Note. — For other cases, see Mortgages.
Cent Dig. {{ 18, 19, 229.]
4. Appeal and Ebbob «=>731(4) — Assign-
ments OF Erbor— Sufficiency.
Assignments of error complaining of dismiss-
al of exceptions to findings and conclusions of
an auditor are defective, where not containing in
totldem verbis the court's action on the partic-
ular exception, and where not showing where
the matter referred to is to be found in the paper
tiooks or the appendix.
[Ed. Note. — For other cases, see Appeal and
Error, Cent Dig. { 3020.]
Appeal from Court of Common Pleas, P&lla-
delphia County.
Scire facias snr mortgage by the Land
Title & Trust Company against Samuel Shoe-
maker. From an order dismissing excep-
tions to report of auditor distributing fund
reollzed from the proceeds of a sheriff's
sale, Emma C. Bergdoll appeals. Affirmed.
Argued before BROWN, C. J., and POT-
TER, MOSCHZISKBR, FRAZER, and WAL-
LING, JJ.
Nicholas H. Larzelere and R. Stuart Smith,
both of Philadelphia, for appellant. Ed-
ward Brooks, Jr., and E^ederlck J. Oeiger,
both of Philadelphia, for appelleew
MOSGHZISKER, J. This case Involves
the distribution of a fund raised at sheriff's
sale upon the foreclosure of a mortgage. The
matter was referred to an auditor, whose
report was confirmed by the court t>elow.
Emma O. Bergdoll has appealed from the de-
cree of confirmation.
Samu^ Shoemaker owned a property at
Fifty-Second street and Wynnefield avenue,
Philadelphia, which, on September 9, 1909,
he mortgaged to the Land Title & Trust Com-
pany for $40,000; the mortgage was forth-
with recorded. Sul>8equently, In 1914, fore-
closure proceedings were instituted thereon
and a Judgment entered against ttie mortga-
gor for $43,946.67 ; thereafter, on February 2,
1915, the property was sold at sherifTs sale re-
4=>For otlier cases see same topic ana KBY-NUIIBESR In all Kar-Mumbcrad Dlgnta and IndezM
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336
101 ATLANTIC REPORTER
(Pa.
allzlng $46,600; at settlement, after paying
taxes and charges, $35,560 of tbls amount was
handed to the mortgagee, and the balance,
$9,305.57, was paid Into court for distribu-
tion, being the fund in controversy. The
$40,000 mortgage was intended as collateral,
and when executed the trust company loaned
only $32,000 to Mr. Shoemaker. At that time
the latter gave the mortgagee his demand
note, containing the following provision:
"It is further agreed that the securities hereby
pledged, together with any that may be pledged
hereafter, shall be applicable in like manner
to secure the payment of any • * * future
obligations of the undersigned held by the hold-
ers of this obligation, and all such securities in
their hands shall stand as one general continu-
ing collateral security for the whole of said ob-
ligntions."
August 6, 1912, Mr. Shoemaker gave to the
trust company a bond for $150,000, reciting
that whereas, the obligee had agreed to In-
sure the erection and completion, free of
Ileus, of a certain building on Wayne avenue,
Philadelphia, In favor of the holders of a
mortgage thereon, the obligor agreed to In-
demnify the obligee "of and from all loss,
damage, costs, charges, liability, or expense"
caused by this undertaking. Thereupon the
trust company issued its policy of Insurance
In the sum of $150,000 to Ell K. Price et al.,
executors, In connection with a mortgage of
Uke amount executed by Samuel Shoemaker
et al. The building was not completed by
Shoemaker, and mechanics' liens were filed
against it Suit was brought upon the $150,-
000 mortgage, and Judgment recovered. The
property was sold under execution on this
judgment, but the sum realized was $6,892.62
short of the amount required to pay the
holders of the mortgage their debt, interest
and costs. This deficiency was paid by the
trust company under its title policy, on ac-
count of the loss sustained by the mortgagees
through the noncorapletion of the building;
in addition, the company was obliged to de-
posit with a referee $16,000 to meet certain
mechanics' liens filed against the premises,
should such liens be sustained at law in a
proceeding pending to test their validity.
May 28, 1913, Samuel Shoemaker gave Elm-
ma O. Bergdoll, the appellant, hla note for
$18,000. This Instrument recited that Mr.
Shoemaker had on the same day executed
and delivered to the holder thereof a bond
and mortgage for a like amount, secured
upon the property at Fifty-Second street and
Wynnefleld avenue, being the same premises
covered by the before-mentioned $40,000
mortgage. The note contained also a clause
to the effect Uiat it was to secure past and
future obligations. The $18,000 bond and
mortgage was duly recorded as a second lien
upon the property In question, subject to the
$40,000 mortgage. At tlie date of the execu-
tion of the mortgage to Mrs. Bergdoll, and at
the time she made her claim against the fund
in controversy, Mr. Shoemaker owed her at
least $18,000. There were several claimants
on the fund; but the contest we have to de-
cide is between the trast company and Mrs.
Bergdoll.
The former contends that, on the facts as
we have recited them, the $40,000 mortgage.
In accordance with the agreement executed
at the time of the original $32,000 loan, was
executed and delivered, not only as collateral
for this first loan, but also to secure payment
of any "future obligations" of Mr. Shoemaker
which might thereafter be held by the mort-
gagee; that the $150,000 bond acc^ted from
Mr. Shoemaker, In 1912, is such a "future
obligation"; that therefore the trust com-
pany Is entitled to recover out of the fund In
court the amount which this latter obligation
has and will cost It On the other hand, Mrs.
Bergdoll contends that, when she took her
mortgage In 1913, although the trust com-
pany then held the $150,000 bond executed
by Mr. Shoemaker, and had issued its policy
of title Insurance In cminectlon therewith,
yet at that date Its liability on such policy
was merely potential; that the trust com-
pany never paid any actual losses thereunder
until ISIay, 1914, some months subsequent to
the date of her mortgage; hence that she
has a prior Hen and Is entitled to the fund
in court. The learned auditor accepted the
view of the trust company, and made his
award accordingly. In so doing, he finds
that the latter is entitled to the sum of $6,-
892.62, with Interest from May 14, 1914, and
to the Iwlance of the fund, should the liens
upon the property whose completion it in-
sured be declared valid; but he adds that, if
these liens are not sustained, then the dis-
tribution will have to be restated.
[1-3] The questions we have to decide are
narrow, but very nic& They may be reduced
to these: (1) When the trust company, in
1912, accepted and became the holder of Mr.
Shoemaker's $150,000 bond, did it, by issuing
the policy of title Insurance recited therein,
to the holders of the mortgage In that trans-
action, bind itself in effect to Mr. Shoemaker
and his then present mortgagees to advance
to the latter, on the former's account, such
sums of money as might be necessary to in-
demnify the mortgagees against loss by rea-
son of noncompletlon of the building covered
by their mortgage? (2) If this was the effect
of the transaction Just referred to, then
should the contract made in 1912, when the
trust company accepted the $150,000 bond
and issued its title policy, be treated as a
supplement to the original agreement of
1909? (3) If, as a matter of law. It should
be 80 considered, then, as against Mrs. Berg-
doU's mortgage of 1913, should this contract
of 1912 be given the same effect as though
its terms originally had been expressly in-
corporated into the agreement of 1909?
We think all the propositions Just enumer-
ated must be answered in the aflirmative.
The bond accepted In 1912 was an obligation
of Mr. Shoemaker, the original mortgagor,
which recited the title policy issued by the
trust company as part of the agreement then
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LAND TITLE A TRUST OO. t. SHOEMAKEB
337
entered Into; hence both of these instru-
ments must be considered In deciding as to
tbe nature of that agreement, and, when so
coasldered, It seems plain that the agree-
ment In question formed a binding contract
on tbe part of the trust company, if called
upon so to do, to pay on Mr. Shoemaker's be-
half any losses which his default in finishing
the building described In the bond and title
policy might cause to the parties insured by
the latter instrument, which, in effect, was a
contract to make future advances. For these
advances Shoemaker was liable to the trust
company on the $150,000 obligation, to se-
cure vrlilch the latter held tbe $40,000 mort-
{tge as coUateraL We make this last state-
ment, as the agreement of 1909 was that the
mortgage in question should stand as coUat-
erU, not only for Shoemaker's $32,000 obli-
gation, but also for any future obligations of
the debtor which might come into the mortga-
gee's hands. This contract was in full life
when the trust company accepted the $150,-
000 bond, which Instrument fell squarely
within the definition of a "future obliga-
tion"; and, at the time of the acceptance
thereof, the company agreed In connection
therewith to make the advances already re-
ferred, to. Under these circumstances, there
" no reason apparent why, after 1912, this
"sreenient should not be considered Just as
oft '^^^ between the parties thereto, and all
y^®** dealing with the property covered by
j_ *4o,000 mortgage, as the original con-
"**^ executed In 1909 when the mortgage
T&% &rst taken as collateral. Had the terms
q1 tbe 1912 agreement been originally incor-
porated into the contract of 1900, there can
De no question as to their effect, for It Is
DOW established In Pennsylvania that, when
a contract for advances or the assumption of
future obligations accompanies a mortgage,
it is not essential to its validity that the en-
gagement governing the advance be placed
upon record or even expressly referred to In
the mortgage. Moroney's Appeal, Infra. It
Is also established that, when such a c(atract
obligates the mortgagee either to make ad-
vances or assume future responsibilities on
behalf of tbe mortgagor, this lends a suffl-
dent consideration to the mortgage, and the
lien of payments made under such an agree-
ment relates back to the date of the mort-
gage; furthermore, this is true, even though
the advances or liquidation of assumed re-
■poDsiblUties occur after the date of a snbse-
<iuent, or junior, incumbrance placed ui>on
tbe mortgaged premises. See authorities, in-
fra.
If, under an arrangement such as we have
before us, we should be obliged to hold, as
contended by the appeUant, that the $40,000
mortgage would have no lien to protect the
trust company's present claim imtll the date
of ttie actual payments made by the latter on
Its title policy, it would be practically impos-
sible for such corporations, when issuing pol-
101A^22
ides like the one at bar, adequately to pro-
tect themselves against loss by the accept-
ance of mortgages upon real estate as ctrilat-
eral, which would be an unfortunate state of
affairs for both real estate investors and
trust oominnies. We are convinced, how-
ever, that neither the facts of this case nor
the applicable principles of law call for. or
necessitate such a ruling. When Mrs. Berg-
doll negotiated with Mr. Shoemaker in 1913,
she knew there was at that time a first mort-
gage of $40,000 upon the proiierty offered as
security. She also had actual notice that
the loan made at the date of this mortgage
was only $32,000— all of which was sufficient
to put her on Inquiry as to the exact status
of the $40,000 Incumbrance, to which she in
express terms made her $18,000 mortgage
subject Had she exercised ordinary care
in this respect, she would have ascertained
that, in addition to the $32,000 actually paid
out when the $40,000 mortgage was created,
the trust company, under a binding supple-
mental agreement, entered Into when accept-
ing from the mortgagor a "future obligation,"
had agreed to make advances on his behalf.
If called upon so to do, to an amount more
than sufficient to cover the remaining $8,000.
Under the circumstances, the auditor did not
err In holding that, as between Mrs. Berg-
doll and the trust company, the former's in-
cumbrance was subject in all respects to the
$40,000 mortgage held by the latter, and
hence that the trust company had a first lien
on the fund for distribution.
For discussion of the general principles in-
volved In the present case, reference is made
to the following authorities, most of which
were dted to us by both sides: Lyle v. Da-
comb, 5 Bin. 585; Stewart ▼. Stocker, 1
Watts, 135, 140; Qarber v. Henry, 6 Watts,
57; Irwin t. Tabb, 17 Serg. & R. 418; Ter-
Hoven v. Kerns, 2 Pa. 96 (in connection with
last three cases, see Moroney's Appeal, in-
fra) ; Parmentler v. Oillespie, 9 Pa. 86 ; Mo-
roney's Appeal, 24 Pa. 372; Bank of Mont-
gomery County's Appeal, 36 Pa. 170; Bank
of Commerce Appeal, 44 Pa. 423 ; McClure v.
Roman, 52 Pa. 458; Parker v. Jacoby, 8
Grant Gas. 300; Taylor v. Cornelius et al.,
60 Pa. 187, 196; Kerr's Appeal, 92 Pa. 236;
Mitchell V. Coombs et al., 96 Pa. 430 ; Fara-
bee V. McKerrihan, 172 Pa. 234, 242, 83 Aa
583, 61 Am. St Rep. 734; Neff's EsUte, 185
Pa. 96, 39 AtL 830 ; Dahlem's Estate, 175 Pa.
444, 453, 84 Atl. 806; MulUson's Estate, 68
Pa. 212, 215. A study of our wriUngs in the
atM>ve cases will show a general accord with
the conclusions here reached: and, while
there may appear some conflict In certain
statements to be found In the various opin-
ions touching the general subject now t>efore
us, yet, when the development of the law is
taken into account. It will be seen that these
differences are not materiaL
[4] We have not felt called upon to pass
seimrately on the several spedflcatloos of
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338
101 ATLANTIC RBPORTBB
ya.
«rror, for all of them are defectlTe In form ;
In each Instance they assert the court below
«rred In dismissing a certain exception to a
-designated finding or conclusion of the audi-
tor, but in no instance do they contain — in
totidem verbis — the court's action on the par-
-dcular exception, nor do they show where
the matter referred to is to be found In the
paper books or the appendix. See Prenatt t.
Messenger Printing Co., 241 Pa. 267, 269, 270,
88 AU. 439; Markleton Hotel Ca v. Connells-
vlUe & State Line Hallway Co., 242 Pa. 569,
572, 673, 89 Atl. 703; Pfafit v. Bacon, 249 Pa.
297, 300, 95 AtL 71. A proper form for audi
assignments will be found in the first of
these cases.
The decree is affirmed.
(2ST Pa.192)
KIESTEIN T. PHILADELPHIA 4 B.
BY. CO.
{Supreme Court of Pennsylvania. March 19,
1917.)
Railboads <S=>222(5) — Obstruction of
Cbossino — Delat or Fibs ISnoink — Non-
Suit.
In an action against a railroad for damages
for injury in consequence of its obstruction of
a grade crossing by its trains so as to delay a
fire engine in reacniug plaintiffs burning build-
ing where it did not appear that those in charge
x)t the train knew or ought to have known of
the fire when they were using or about to use
the crossing, or that until the gates were raised
it was reasonably practicable lor defendant to
have cleared the crossing and enabled the engine
<o sooner reach the fire, a compulsory nonsuit
was properly ordered.
[Ed. Note.— For other cases, ae« Railroads,
Cent. Dig. { 7^1.]
Appeal from Court of Common Pleas,
Philadelphia County.
Trespass by Herman Kirstein against the
Philadelphia & Beading Railway Company
to recover damages for injury to plaintlll's
-buUdlngs caused by fire. From a final order
refusing to take off a compulsory nonsuit,
plaintiff appeals. Affirmed.
Argued before BROWN, C. J., and MES-
TEEZAT, POTTER, STEWABT, and FRA-
ZEB, JJ.
Frederick S. Drake, Samuel L. Howell, and
John Weaver, all of Philadelphia, for appel-
lant. Wm. Clarke Mason, of Philadelphia,
for appellee.
STEWABT, J. The plaintltt was the own-
«r of a wheelwright shop located about half
.a square north of a point where the tracks of
the defendant company cross at grade Frank-
ford avenue in the city of Philadelphia.
About 12:45 p. m., on Saturday, September
18, 1909, a fire broke out underneath a shed
In the yard adjoining the shop. The fire de-
partment promptly responded to an alarm
sent it, and dispatched several fire engines
•to the scene of the fire. When the engine's
reached the railroad cros.sing, a half square
-from the fire, their further progress was ob-
structed by the gates to the crossing which
were then closed. A train of empty cars
was then approaching the crossing from the
east, and within about 400 feet of It At the
same time another train of empty cars was
approaching from the west, but at somewhat
greater distance. The gates were closed to
give the trains the exclusive right of way
over the crossing, and they temained closed
until both trains had cleared, a period of
from 10 to 13 minutes, during which time the
fire engines were prevented from proceeding
to the fire. The plaintiff's contention was
that this delay was the result of the defend-
ant's negligence, and that it increased mate-
rially his loss from the fire. The action,
charging negligence, was brought to recover
compen.SBtion. A nonsuit was directed, and
from the refusal of the court to take it off
we have this appeal.
If the evidence submitted would have sap-
ported a finding of failure on part of the de-
fendant's employes to perform a manifest
duty important to the plaintiff by way of pre-
venting the injury which he claims to have
sustained, the case should have been sub-
mitted to the Jury ; otherwise the court was
right in directing a nonsuit By the term
"manifest duty" we mean a duty which It
would be willfulness or wantonness to disre-
gard, as distinguished from a duty the non-
observance of which is to be referred to In-
attention or thoughtlessness. The former Is
always predicated on purpose or design, the
latter never. If the employes of the defend-
ant company knew, when their several trains
were approaching the crossing, that a fire
was endangering or destroying the plaintiff's
property but a half square distant, and that
the use of the crossing by the railroad com-
pany for Its own purpose would prevent the
fire engines from reaching the scene of the
fire and rendering timely service in extin-
guishing the fire, it would have been a mani-
fest duty resting on them to do whatever was
reasonably practicable to remove any ob-
struction to the Immediate crossing of the
fire engines. When it is sought to charge a
railroad company with negligence for allow-
ing such obstruction as here occurred, it ia
first of all essential that It be made to
appear that those in Charge of the trains,
who were directly responsible for their con-
trol, knew or ought to have known when
they were employing or about to employ the
crossing with their trains of the unforeseen
conditions existing which made such employ-
ment, or use of the crossing likely to cause
the injury for which recovery Is sought We
see nothing in the evidence Indicating even In
remote way that any of the defendant's em-
ployes knew of the existence of this partlcn-
lar fire. It does not appear that it was at
any time within their view. They saw that
the gates were closed as they passed alonK
on the tracks, and they saw the fire engines
standing there awaiting their removal, and
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BABATAK v. KEED
33»
they may or may not have heard the call of
the several bystanders who testified that
they called, "Cut the train !" bnt this comes
very far short of showing such knowledge of
the situation as would charge them with a
manifest duty to do something out of the
nsual to meet an emergency that conld not
have been foreseen, and about which they
could at best only conjecture. In what we
have said we include as well the gateman or
flagman. It does not appear that be saw, or
could have seen, the fire from where he was
placed. One witness testified that having
himself discovered the fire he told the gate-
man of the fact ; Just what be said does not
appear, but it was at a time when the gates
were already closed. No one testified that
the closing of the gates occnrred after the
fact of the fire had become known, or that
they remained closed unduly after the trains
had cleared the crossing.
Again, it is quite as essential to a recovery
that the plaintiff show that be sustained loss
by and In consequence of what the party
charged did, or failed to do. The detention
of the fire engines was from 10 to 13 minutes.
There is not a suggestion in the testimony
coming from any one that from the time the
gates were closed until they were raised or
lifted It was reasonably practicable for the
defendant to adopt other methods than It did
of clearing the crossing that would have en-
abled the fire engines to sooner reach the fire.
Certainly a Jury is not to be allowed to as-
sume the affirmative of such proiwsltlon In
the absence of evidence. Apart from othei
considerations, except as another method ex-
isted, reasonably practicable, of clearing the
tracks so as to admit of the crossing of the
fire engines with shorter delay, no liability
could rest on defendant
We see no merit in the appeal. The Judg-
ment is affirmed,
(S7 Pa. KM)
BABAYAN v. BEED et al.
(Supreme Court of Pennsylvania. March 19,
1917.)
1. Mastkb and Servant «=>40(2)— Bbkaoh of
cohtbact— mrnoation— evidiiwcb.
In an action for breacn of a contract when^
by plaintiff had sold lus cigarette business to
defendants and was to be employed by defend-
ants at a weekly salary for a term of years,
it was competent for defendants to sliow in
mitigation of damages tliat plaintiff might by
reasonable effort have secured other employ-
ment in the same locality.
[Eld. Note. — For other cases, see Master and
Servant, Cent Dig. | 48.]
2. Evidence ®=3547 — Exfxbt TcsTiiconT —
FoBu OP Question.
Questions to an expert in the cigarette busi-
ness as to whether an expert cigarette maker,
blender, and buyer commanded a big salary and
was ill demand in tbe trade were bad in form
and indeSttito as to time, place, and amount, so
that the court could not say that their exclu-
sion was error.
[Dd. Note.— For other cases, see Evidence,
Cent. Dig. J 2364.]
8. WiTNESSEa *=»237(1) — Bxawnation —
Question Absumiho Fact.
A question assuming tliat plaintiff termi-
nated the contract by leaving defendants' em-
ployment was properly excluded, where sudi
tact was neither conceded by plaintiff nor found
by the jury.
[E^. Note.— For other cases, see Witnesses,
Cent Dig. | 829.]
4. Contbacts «=>852(6)— Rescission — Ques-
tion FOB JUBY.
Whether such contract had been rescinded
by mutual consent held, on the evidence, a ques-
tion for the juiy.
[Ed. Note.— For other cases, see Contracts,
Cent Dig. { 1200.]
5. Conxbactb «s>348(7)— AonoN fob Bbkaoh
— Evidence.
In an action for breach of contract whereby
plaintiff sold bis cigarette bnsinesg to defend-
ants and was to be employed by defendants,
ttte admission of plaintiff's testimony as to what
he told defendants as to his former earnings
in the business was not error.
[Ed. Note. — For other cases, see Contracts,
Cent Dig. |§ 1096, 1795, 1817.]
6. Damages 9=»120(2}— Bbeacr of Contract.
In such action tne amount of plaintiff's
weekly salary under tbe contract was a question
for the jury to consider in arriving at his dam-
ages.
[Ed. Note. — For other cases, see Damages,
Cent Dig. H 292, 286, 297.]
7. Dauaoes 9=>122 — Delat — Additionai.
Damaoeb.
Plaintiff in snch case being entitled to bis
damages, if at all, as of the date of the breacli,
it was not error to permit a jury in their dis-
cretion to give additionai damages for delay
not exceeding 6 per cent, per annum.
[Ed. Note.— For other cases, see Damages,
Cent Dig. SS 309-319.]
8. Tbial «=3253(10) — iNBTBUcnoHB — Re-
quests—Den ial.
In such case defendants' request that plain-
tiff could not recover if the Jury found that on
his demand defendants tendered him a return
of tbe cigarette brand claimed, or if he had
agreed with defendants to cancel the contract
were properly declined, aa ignoring plaintiff's
daim of a balance due him for merchandise as
to which tbe evidence was conflicting.
[Ed. Note.— For other cases, see Trial, Cent
Dig. (t 621, 6S.1
9. Tbiai, «=>1 39(4)— Requests fob Dibecteiv
Vekdict— Denial.
Where a plaintiff's daim consists of sepa-
rate branches as to each of which the evidence
is conflicting, defendant's request for a general
verdict if the Jury find the facts for him as to
one branch of the case cannot Im granted.
Appeal from Court dt Common Pleas, Phil-
adelphia County.
Assumpsit for breach of contract by Ma-
dlrios Babayan against John C. Reed and
others. Verdict for plaintiff for |3,625, and
Judgment tbere<m, and defendants apj^eal.
Affirmed.
Argued before BROWN, C. J., and POT-
TER, MOSOHZISKER, FRAZER, and WAI/-
LING, JJ.
Maurice Bower Saul, Frank P. Prichard,
and John O. Johnson, all of Philadelphia,
for appellants. Paul Reilly, of Philadelphia.
for appdlee.
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340
101 ATLANTIC REPORTER
(Pa.
WALLING, J. TWs Is an action for dam-
ages for an alleged breach of contract rela^'
Ing to the manufacture, etc, of cigarettes.
In the early part of the year 1913 the plain-
tiff was engaged In a small way in the manu-
facture and sale of cigarettes, his place of
business being on Fifty-Second street, Phila-
delphia. In the course of his business plain-
tiff became acquainted with defendants, who
were engaged, Inter alia. In the banking
business In said city. Plaintiff seems to have
had quite an extended ezperlsioe In the to-
bacco and cigarette business, but was with-
out capital to enlarge the same. His ac-
qnalntanoe with defendants soon became one
of mutual confidence, as a result of which
they agreed, in substance, to take over and
finance said cigarette business and to pur-
diase at least a part of plaintlfrs property
and effects connected therewith. Including
the trade-name or brand "Deran," and pay
him for such prtqierty ; also to pay plaintiff
for five years a weeltly salary of f50, and.
In case he devoted Ms entire time to tlie busi-
ness, then the ftirther sum of 15 per cent.
of the net profits. The business was to be
conducted In plaintlflTs name, but to belong
solely to defendants, and he was not to use
their credit or make any purchase without
their written authority. The contract, so
far as reduced to writing, was executed by
the parties May 6, 1913. However, some
parts thereof remained In parol. Pursuant
to this arrangement a factory and place
of business were established and opened
at 1028 Caiestnut street, Philadelphia, ro
which place plaintiff removed his business
and bad bis Internal revenue license trans-
ferred. In the establishment of the new busi-
ness, incladlng the purchase of new ma-
chinery, etc., and a large amount of tobacco,
defendants expended about $24,000. They
knew nothing about the dgar^te business or
the purchase of tobacco therefor, except
plaintiff's word and the sampling of his cig-
arettes. In the agreement, drawn by one of
the defendants and signed by all the parties
plaintiff is represented as honest and an ex-
pert cigarette blender and maker and tobacco
buyer.
The business seemed to develop unfavor-
ably, and friction soon arose l)etween the
parties, and defendants became dissatisfied
to such an extent that on July 8, 1013, they
wrote plaintiff a letter declaring the contract
canceled and at an end, because of cer-
tain alleged violations thereof by plaintiff;
and same day, on his declining to surrender
to them his key, changed the locks on the
door of their said place of business and ex-
cluded plaintiff therefrom. He was paid by
them $50 a week from May 3, to July 12,
1913, and also $610 on account of the prop-
erty. Later plaintiff brought this suit, where-
in he claimed $757.01, as balance for mer-
chandise, also claimed $2,000 for his trade-
name "Deran," and large amounts for loss
of earnings and profits resulting from de-
fendants' alleged breach of contract The de-
fendants denied plaintiff's allegations, and
set up a counterclaim for a large amount for
alleged breeches of contract by plaintiff, all
of which were denied by him. The case was
stubbornly contested, and turned largely on
questions of fact which were submitted to
the Jury, who gave plaintiff a verdict for
$3,625. Defendants abandoned their motion
for a new trial, and on this appeal assigned
as errors certain portions of the charge of
the learned trial judge, and also rulings on
offers of evidence.
[1,2] Defendants asked of one of their
vrltnesses, who had qualified as an exi)ert in
the business, the following questions :
"Q. Does an expert cigarette maker and blend-
er and buyer command a big salary?
"Q. Is an apert cigarette maker, blender
and buyer in demand in tlie trade?
"Q. Has such an expert any dliBcaltjr in ob-
taining employment?"
To ea<^ a general objection was made,
which was sustained by the court. No offer
was made and no reason given for the objec-
tions. It was competent for defendants to
show in mitigation of damages that plaintiff
might by reasonable effort have secured em-
ployment elsewhere In the same locality.
Emery v. Steckel, 12fl Pa. 171, 17 Ati. 601, 12
Am. St Bep. 857. But the above questions
are bad in form and Indefinite In substance,
especially so as to time, place and amount;
and we cannot say that their exclusion was
error.
[3] The jury found that plaintiff had not
broken his contract and therefore whether
defendants got a trade-name for their ciga-
rettes was Immaterial. The question embrac-
ed In the sixth assignment of error assumes
that plaintiff terminated his contract by
leaving defendant's employ, a statement nei-
ther conceded by him nor found by the jury,
hence its exclusion was Justified, and. In vlevy
of the verdict the amount defendants ex-
pended after plaintiff ceased to be in their
employ was ImmaterlaL
[4] The allegation that the contract was
canceled by reason of a certain conversation
had about June 25, 1913, between plaintiff
and defendant Starr cannot be sustained un-
der the facts of the case. Mr. Starr's testi-
mony as to that is:
"Q. Bepeat again what took place? A. He
was vet7 angry because I would not pay him nny
money, and he told us unless we paid him this
money he would get an injunction and prevent
us from using the brand and he would cancel
the contract. I told him that was satisfactory
to tne. He said then he was going out to see
his lawyer, and he started out the door and
went down the steps, and that is the last I saw
of him that day."
But that did not terminate the contract
especially in view of the fact that plaintiff
kept at work until Jtily 8th, and that no
such claim is set up In the letter of that
date, or in the pleadings.
[5] We cannot say that the admission of
plaintifTs testimony as to wiiat he told de-
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MCKSON T. MTEBS
341
fendants aa to his earnings and profits in bis
Fifty-Second street business, was error. It
was part of the negotiations leading up to
the contract, and defendants offered testi-
mony along the same line ; and besides nei-
ther party claims that the entire contract
was ever reduced to writing, and the court
did not submit to the Jury plalntllTs claim
for loss of profits either in the old or new
business.
[I] Plalntltrs suit was for a breach of the
contract, and his damage was the loss be
sustained thereby; nevertheless the amount
of his weekly salary under the contract was
a matter for the Jury to consider in arriv-
ing at the damages.
[7] Plaintiff was entitled to his damages.
If at all, as of the date of the breach ; and
It was not error to Instruct the Jury that they
might In their discretion glre additional dam-
ages for delay, not exceeding 6 per cent per
annum.
[I] Defendants' second request was in ef-
tKt that plaintiff could not recover if the
Jury found that on his demand defendants
tendered him a return of the brand "Deran."
And their third request was:
"If the jury find that the plaintiff agreed
with the defendants to cancel the contract, the
plaintiff is not entitled to recover."
[I] Both of these requests were properly
declined, as they ignore plalntifTs claim of
a balance due him for the mercbandise, and
as to that the evidence waa conflicting.
Where a plaintiff's claim consists of separate
brandhes, as to each of which the evidence
is conflicting, a request by defendant for
a general verdict in his favor. In case the
Jury find the facts for him as to one brandi
of the case, cannot be granted. And, as
above stated, the evldmce would not sustain
a finding that tbe contract in question bad
been canceled by agreement of the parties.
We find no reversible error In the record.
n>e Judgment Is afBrmed.
(257 Pa. 104)
JACKSON «t al. v. M:;eRS.
(Supreme Court of Pennsylvania. March 12,
1917.)
t Taxation «=»85&— iNHKBrrAwcit Tax— Na-
TOBK.
The collateral Inheritance tax is not levied
upon an inheritance or legacy but upon the es-
tate o( tbe decedent, and only the estate remain-
ing after the payment of such tax passes to the
heir or devisee.
rEd. Note.— For other cases, see Taxation,
Cent Dig. { 1673.]
2. COUPBOMISK AKD SETTLEMENT 9=al2 — HST-
JECT — Sale ot Interest in Land — Con-
STBUCnON ov Contbact— Masestablb Ti-
tl»-Tax.
A contract whereby the guardian of minors
paving an interest in a decedent's estate agreed
in settlement of litigation to sell to other heirs
the interest of such minors for cash, without
any deduction whatever, and to give a fee-slm-
Ple title, good and marketable, contemplated a
•ale of the minors' interest after the payment
of a collateral inheritance tax; that not being
a lien or incumbrance within the terms of the
contract.
[Ed. Note.— For other cases, see Compromise
and Settlement Cent. Dig. Si 54-74.]
3. Taxation «=3890 — Sale of Intebest in
Land — Payment to Pebfect Title— Ebcov-
KBY AOAINST PuBCHASEB.
In such case, where the purchaser in order
to perfect his title was compelled to pay the
collateral Inheritance tax on the vendor's in-
terest in the estate of a decedent he could not
recover the amount from the guardian of the
minor grantors.
[Ed. Note.— For other cases, see Taxation,
Cent Dig. { 1711.]
Appeal from Court of CommoB Pleas, Phll-
adelphia County.
Assumpsit by Joseph A. Jackson and oth-
ers against Arthur J. Myers for the amount
of a collateral inheritance tax paid by plain-
tiff upon a decedent's real estate. Judgment
for plaintiffs for want of a suifldent affidavit
of defense, and defendant appeals. Reversed,
with procedendo.
Argued before BROWN, C. J., and MBS-
TRBZAT, POTTER, STEWART, and FRA-
ZER, JJ.
James W. Laws, of Philadelphia, for ap-
pellant Albert T. Bauerle^ John G. Kaufman,
and V. Ollpln Robinson, all of Philadelphia,
for appellees.
MESTREZAT, J. This Is a rule for Judg-
ment for want of a sufildent affidavit of de-
fense. The rule was made absolute, and the
defendant has appealed.
George W. Jackson died intestate, iininai>-
ricd, and without Issue, leaving to survive
him Joseph A, Jackson, a half-brother, Bes-
sie A. Jackson Curtis, a half-sister, and Jo-
seph Jackson Restein and James Restein,
sons of a deceased half-sister, who are the
plaintiffs in this action. He also left surviv-
ing him two nieces, Lillian M. Jackson and
Ariel K. Jackson, minor children of a de-
ceased brother of the whole blood, Daniel
W. Jackson, and their guardian, Arthur J.
Myers, is the defendant Prior to the Institu-
tion of this suit the parties had been for
some time Involved In litigation, and In or-
der to effect a compromise and settle tbe
differences between them they entered into a
contract by which the guardian of the two
minor children, tbe defendant in this action,
agreed, subject to tbe approval of the or-
phans' court to sell to the plaintiffs, who
agreed to buy, "all tbe right title, and In-
terest of the said minors of, In, and to tbe
estate of George W. Jackson, deceased, real
and personal, for the sum of $40,000 in cash
without any deduction whatever, • • •
title to be In fee simple, good and market-
able, and such as will be Insured by any
reputable trust company, subject only to such
Incumbrances as appear by" two bills In equi-
ty filed In the court of common pleas of Phil-
adelphia county, and two ground rents. The
sale was of an Interest In both real and per-
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101 ATLANTIO RBPORTBB
(Pa.
aonal property. The gaardlan applied to the
orphans' court for leave to make sale of
his wards' Interest la the real and personal
estate of George W. Jackson, deceased, upon
the terms contained in the agreement, and,
the court being of the opinion that the sale
of the minors' interest for the snm of $40,000
was to their advantage a decree was entered
approTlng the report of the examiner and
master recommending that the guardian be
authorized and empowered to sell the in-
terest of his wards in the property. The col-
lateral inheritance tax upon the estate of
George W. Jackson, deceased, "was not paid
at the time the settlement was made, and the
guardian refused to i>ay It, claiming that, un-
der the agreement and the order of the or-
phans' court authorizing the sale, he was
not required to pay the tax. The plaintiffs
contended that the guardian should pay the
tax, that it was a lien upon the Interest of
the minors In the estate which the plaintiffs
had purchased, and that, under the terms
of the agreement, the defendant was requir-
ed to pay IL The plaintiffs having previous-
ly agreed to sell the property to another pur-
chaser, and in order to avoid liability for
breach of their contract, accepted the deed
from the guardian and paid under protest
the sum of $40,000 without deducting the
tax. In a subsequent partition proceeding
in the estate of George W. Jackson, deceas-
ed, some real estate was sold, and from the
proceeds the commonwealth collected the
collateral inheritance tax; the amount due
upon the share of the estate conveyed to
the plaintiffs being |2,085.2L This suit was
instituted by the plaintiffs to recover this
sum.
The facts are set out in detail in the
statement and affidavit of defense. The sin-
gle question involved Is whether under the
contract of sale the plaintiffs or the de-
fendant should pay the collateral inheritance
tax on that part of the estate of George W.
Jackson, deceased, in which the defendant's
wards had an interest, which was sold by
the defendant to the plaintiffs. The plain-
tiffs claim that the tax was a debt due from
the defendant's wards, heirs of the decedent,
and that it was a lien on the estate of the
decedent which, under the terms of the agree-
ment, the defendant was required to sat-
isfy and remove, and the plaintiffs, having
been compelled to pay the tax in order to
convey the property unincumbered to a pur-
chaser, are entitled to be reimbursed for the
amount of the tax paid by them. The de-
fendant denies the right of the plaintiffs to
recover, on the ground that he sold to the
plaintiffs and conveyed only the right, title,
and interest of the minors in the estate of
George W. Jackson, deceased, for the net
sum stipulated, and that this Interest was
limited to such property as remained after
the collateral inheritance tax was paid upon
the estate. The learned court below held
that the defendant was liable for the tax.
Inasmuch as the agreement to sell stipulated
in terms that the title should be good and
marketable and such as would be insured
by any reputable trust company, subject only
to such tDcnmbrances as were specifically
excepted in the agreement.
[1] Tbe act of assembly imposing the pay-
ment of a collateral inheritance tax provides
that "all estates • • • passing from any
person, who may die seised or possessed of
such estates [to collateral heirs] • • •
shall be and they are hereby made subject to
a tax of $5 on every $100 of the dear value
of such estate or estates." Hie executors
and administrators and their sureties are
only discharged from liability for the tax
with which they are charged when they have
paid It, and the tax is made a Uen on the es-
tate until it is settled and satisfied. The
register of wills is made the agent of the
commonwealth for the collection of the tax,
and he is authorized to enforce payment of
a collateral Inheritance tax against real or
personal property by proceedings in the or-
phans' court
It will be observed that the statute im-
poses the tax on the estate of the decedent.
It becomes a lien and is fastened upon the
estate from the moment of the decedent's
death, and must be dls<diarged by payment
before the estate passes to the ooUateral
heir. It Is levied on the estate in the bands
of the personal representative who, with hla
sureties, is made liable for its payment. "Bm
state becomes a preferred benefldaiy under
the act imposing the tax, and it is «ititled
to its share of the estate before the claims
of heirs or devisees can be recognized or sat-
isfied. The latter take only such part of the
decedent's estate as remains after the pay-
ment of the tax which is not levied upon the
Inheritance or the legacy, but, as already
observed, upon the estate of the decedent,
What passes to the heir or devisee, and to
which he acquires title, is the portion of the
estate remaining after the paymrait and sat-
isfaction of the collateral tax.
This interpretation of the statute Imposing
the collateral inheritance tax is sustained by
the decisions of this court.- In Strode ▼.
Commonwealth, 62 Fa. 181, a leading case
on the subject, the question was whether
that part of a decedent's estate passing to
collaterals, which consisted of bonds of the
United States that were exempt by law from
state taxation, was liable to collateral in-
heritance tax. We held that the collateral
inheritance tax is not levied on a spedflc
article, but on the estate of the decedent,
and that therefore it is not a tax upon the
bonds but upon the estate of which they are
a part In delivering the opinion Mr. Chitf
Justice Woodward said (62 Pa. 188):
"The mistake of the learned counsel for the
plaintiff in error consists, we conceive, in treat-
me this as a tax on the government bonds, when
it 18 really a tax upon a decedent's estate, dyin;
without lineal heirs. • • • That estate pass-
ed into the hands of the necntor for a^minis-
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JACESOK T. MTEBS
343
tration, and ia taxed in his hand* as an estate.
The law takes every decedent's estate into cus-
tody, and administers it for the benefit of cred-
itors, legatees, devisees, and heirs, and delivers
the residue that remains, after discharging all
obligations, to the distributees entltlea to re-
ceive it"
Ftnnen's Estate, 196 Pa. 72, 74, 46 Ail. 268,
270, was an appeal from an assessment of col-
lateral Inheritance tax. In deilvering the
opinion Mr. Chief Justice Green said:
"That which the legatee gets and keeps is the
aggregate sum bequeathed, less the amount of
the tax. The tax must be retained by the per-
son who has the decedent's property in charge.
It is therefore not a tax upon the property or
money bequeathed, but a diminntion of the
amount that otherwise would pass under the will
or other conveyance, and hence that which the
legatee really receives is not taxed at all. It
is that which is left after the tax has been taken
oB. It is only imposed once, and that is before
the legacy has reached the legatee and before it
has become his property."
The learned Chief Justice then cites with
approval Strode v. Conunonwealtb, supra,
and quotes part of the) opinion of the court
below in that case, which we aflBrmed, where-
in It Is said that:
The tax is "a restriction upon the right of ac-
aaisition hj those who under the law regulating
le transmission of property are entitled to take
as beneficiaries without consideration. The
state is made one of the beneficiaries. It lays
its hands upon estates under such circumstanc-
es, and claims a share, and whether the share is
exacted as a tax or duty or whatever else, or
the machinery employed in levying an ordinary
tax is adopted or not, it is of no consequence."
Orcntt'e Appeal, 97 Pa. 179, Is then cited
as holding the same doctrine.
[2, 3] The collateral Inheritance tax law
of tbe state, as thus Interpreted, did not Ui>-
pose a lien upon the interest of the defend-
ant's wards in Jackson's estate. The failure
«f the learned court to observe the distinc-
tion, clearly pointed out in the anthoritles
above dted, bet^veen a lien on the estate of
the decedent and on the interest of the de-
fendant's wards in that estate, led it to the
erroneous conclusion that the tax was a lien
within the meaning of the contract of sale
whlcii the defendant was required to dls-
duirge. The estate of George W. Jackson,
deceased, did not pass to the collateral heirs
nntll the tax bad been paid. If Jackson's
represoitatlTe delivered the personal estate
to the beneficiaries before the payment of the
tax, the statute unmistakably fixed him for
It. I£ the heirs took possession of the real
estate, the tax bdng unpaid. It was subject
to the statutory lien, but the residue after
payment of the lien was discharged from the
payment of the tax, and their title was only
to that part of the estate "which Is left after
the tax has been taken off." In selling their
rlgbt, title, and Interest In and to the estate
of the decedent, the defendant's wards could
sell only the part of the estate left after the
payment of the tax. It was tliat title which
they were required to make good, marketable,
and such as would be Insured by a reputable
trust company. If there were no incum-
brances against It, the plalntUEs could not
complain. The lien reported by the trust
company was against Jacksm's estate, and
not against the part of his estate to whlcb
the heirs succeeded.
In construing a contract which is ambiga*
ons or contains apparently repugnant clauses,
the court should consider the negotiations
leading to its formation. Its subject-matter,
the consideration, the circumstances under
which the parties contract, and the objects to
be accomplished. Interpreting the contract
in the present case in the light of the circum-
stances and under a proper construction of
the collateral Inheritance tax law, we are
clear the parties Intended &at the plaintiffs
should pay the defendant, as stated in the
agreement, "$40,000 in cash, without any de-
duction whatever." The parties had been en-
gaged In much litigation over their rights to
the decedent's property, and Ijoth sides desir-
ed that it should be ended. The title of the
minors to the property was attacked and
they were without means to carry on litiga-
tion. If this attack had been successful,
they would have been penniless. There were
many reasons why the other parties also
should desire an end of the litigation. The
story of their disputes and disagreements is
a long one, and is told In detail in the plead-
ings. It was under these drcumstances that
the contract of sale of the minors' interest in
the estate of the decedent was entered into,
and which. It was supposed, would end the
existing feuds. The contract fixed by clear
and explicit language what the plaintiffs
were to pay and what the defendant was to
receive for the Interest of the minors In the
property. It was "$40,000 In cash, without
any deduction whatever." The negotiations
between the parties and the construction put
upon the agreement by the orphans' court
when it granted the guardian the authority
to sell clearly show that this provision of the
contract unmistakably carried out the inten-
tion of the parties. The master appointed by
the orphans' court reported, inter fMA, as
follows:
'The substance of tiiis agreement (so far as
the minors' interests are concerned) is tliat the
guardian shall sell, and the other parties to
said agreement shall buy, the entire interest of
the minors in the estate of Georee W. Jackson,
deceased, for the net sum of $40,000 in cash.'
Other parts of his report also show that he
Interpreted the contract as providing for a
net consideration of the stipulated sum, and
hence he reported that the sale contemplated
by the^ agreement "for the sum of $40,000
would l>e for the beet interests of the minors."
The petition presented to the orphans' court
for leave to make the sale was joined In by
the plaintiffs and It was therein set forth,
Inter alia, that the plaintiffs had offered In
writing to purchase the minors' Interest In
the property "for the sum of $40,000 in cash"
with the provision that "all adverse claims
set up against said minors' estate in all the
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101 ATLANTIC REPORTER
(Pa.
above proceedings" should be taken care of
bj the purchasers, and that all costs and ez-
X)enses "shall be assumed by said purchasers,
and said minors' estate entirely relieved
therefrom." It Is therefore difficult to see
how "any deduction whatever" can be made
from the stipulated purchase price without
Infringing the contract of sale. It Is true
that the contract required the title to be good
and marketable, and provided against in-
cumbrances, but, CO far as the record disclos-
es, the title is good and marketable, and the
only alleged incumbrance against the title
of the minors is the collateral inheritance tax
levied against the estate of the decedent We
must assume that the parties dealt with full
knowledge of the law, and therefore knew
that the estate of George W. Jadison, deceas-
ed, passing to the minors, was subject to a
collateral inheritance tax whlcb was a lien
and must be paid before the minors received
and could convey It With this knowledge,
the plaintiff contracted to pay the defendant
"$40,000 in cash, without any deduction what-
ever," for their Interest in the estate. The
natural and necessary inference Is that the
parties meant what their contract clearly im-
ports; that the stipulated price was to be
paid without deducting the collateral Inherit-
ance tax. We think, therefore, that the case
must be ruled against the plaintifts on a
proper Interpretation of the contract
The Judgment of the court below Is re-
versed, with a procedendo.
(2npa.ia0)
RICE T. KINNET.
Mardt 12,
(Supreme Court of Pennsylvania.
1917.)
ESxECTDTiON «=»242— Shxrht's Debd— Con-
riKlIATlON.
An appeal from the action of the common
pleas court in dismissing the exceptions to the
confirmation of a sheriff's deed for property
■old under a venditioni exponas was properly
dismissed, where nothing in the record showed
error ; any remedy for refusal to vacate the
Judgment under which the property was sold
being by appeal.
TEd. Note. — For other cases, see Execution,
Cent Dix. M 669-772.1
Appeal from Court of Common Pleas, Phil-
adelphia (Touuty.
Exceptions to the confirmation of a sher-
iff's deed in the case of Blmer C. Rice against
Robert D. Kinney. From an order dismiss-
ing the exceptions, defendant appeals. Ap-
peal dismissed.
From the record it appeared that on Marcdi
31, 1913, the appellee, Elmer 0. Rice, issued
a summons in assumpsit against the appel-
lant, Robert D. Kinney, which was served,
and on April 2, 1013, filed his statement of
claim, wherein he claimed upon and set forth
In said statement true copies of six promis-
sory notes, each of the sum of $200. An af-
fidavit of defense was filed by appellant.
Robert D. Kinney, and the cause came on for
trial May B, 1914, and resulted in a verdict
on May 7, 1914, in favor of appellee, Elmer
C. Rice, for $1,597.20. A rule was taken for
a new trial, which was dlsdiarged. Other
rules were taken by appellant, Robert D. Kin-
ney, all of which were discharged. Judg-
ment was entered upon said verdict July 11,
1914, from whlcb no appeal has been taken.
On August 21, 1916, after issuance of an
alias venditioni exponas, the real estate of
appellant, Robert D. Kinney, was sold by the
sheriff of Philadelphia, on the third Monday
of September, 1016, for the price of $250,
to Albert W. Mylin. Exceptions were filed
to the confirmation of the sale, complaining.
Inter alia, of the action of the court in re-
fusing to vacate the Judgment and grant a
new triaL Xbe court dismissed the excep-
tions.
Argued before BROWN, C. J., and STEW-
ART, MOSCHZISKER, FRAZER, and WAI/-
LING, JJ.
Robert D. Kinney, of Philadelphia, in pro.
per. John B. Rutherford, of Philadelphia, fw
appellee.
PER CURIAM. This appeal Is from the
action of the court below In dismissing ex-
ceptions to the confirmation of a sherUTs
deed for property of the appellant, sold on an
execution Issued May 9, 1916, upon a Judg-
ment entered against him on a verdict on
July 11, 1914. Nothing whatever appears
showing that the court below erred in dis-
missing the exceptions. If the appellant was
aggrieved by its action on his rule to show
cause why tbe Judgment should not be va-
cated, the verdict set aside, and a new trial
granted, his remedy was by appeal from such
action within the statutory period.
' Appeal dismissed, at appellant's costs.
(ZCTPa. US)
DOUGHERT; v. PHILADELPHIA RAPID
TRANSIT CX).
(Supreme Court of Pennsylvania. Ifarch 12.
1917.)
1. EviOENCK 4=9547 — ExPEBT TzsmiONT —
TaouxT Whekl Leavino Wibx.
In an action aKainst street railway for per-
sonal injury from fall of a trolley pole, where
there was uncontradicted evidence that pole and
equipment were in Kood condition after the acci-
dent the refusal to permit a witness to state
whether a troUey wheel would leave the wire
if the pole was properly adjusted was not er-
ror, where there was no offer to prove that
the equipment was the same at the time of the
accident as when the witness acquired his spe-
cial knowledge, and where the actual condition
of the equipment was susceptible of direct proof.
[Ed. Note. — For other cases, see Evidence,
Cent. Dig. { 2364.]
2. EVIPENCI e=9514(4)— EXPEBT TESTIMONT—
Tboixbt Wheel Leaving Wibb.
Where there was a network of wires at the
place of the accident it was reversible error
to refuse to permit plaintiff to prove by an ex-
4t=>Vor oUier eaMS «•• tame topic ud KBT-NOUBER In »U Key-Numbered Stsesti and Indexn
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DOUGHERTT ▼. PHUiADELPHIA BAPID TRANSIT 00.
845
pert who had worked for the railway that trol-
leys wonld often leave the wires, and that at
nich a place there was danger of the trolley
wheel catchinK in the wires and Dulling the pole
out of its socket, and that it was dangerous to
cross BQch wire without hoUiag the trolley
tope.
[Ed. Note.— For other cases, see Evidence,
Cent. DiK. S 2322.1
Z. Street Railboaos «=»1170)— Acmon fob
Injuby— Question fob Jubt.
In action aKainst street railway for person-
al injury from the fall of a trolley pole, held, on
the evidence, that the conductor's negligence in
tailing to h(Md the trolley rope, at place of acci-
dent and whether it wag the proximate cause
of die injury, were for the jury.
[Ed. Note.— For other cases, see Street Rail-
roads, Oent Dig. H 2tt, 242. 261, 252.]
4. Nequoence i&=»121(2), 134(1)— HAFPBir-
inO or ACCISERT— E]VIDBN<S.
^e happening of an accident which in the
usual course of things and in the exercise of
proper care does not happen is not Itself evi-
dence of negligence, but the quantum of proof
necessary to establish negligence under the dr-
cumstancea need be very slight.
[Ed. Note.— For other cases, see Negligence,
Cent. Dig. |i 218. 225, 267, 271.]
fi. Street Bailboads «=»112(2)— HAPPENina
OF Accident— Evidence.
In action aeainst street railway for person-
al injury from fall of trolley pole, where plain-
tiff, in ^owintf how the accident happened, was
not limited to direct evidence, but may make
out her case by circumstantial evidence, the
accident was not itself, evidence of negligence.
[Ed. Note.— For other cases, see Street Rail-
roads. Cent. IMg. |{ 227. 22&]
6. lincTATioN OF Actions «=>127(14) —
AlCBNDlIENT OF PlAADINO.
In sudi action, where the statement of daim
averred that it was defendant's duty to inspect
and repair its cars and to operate them in a
careful manner, so as not to injure pedestrians
by the falling of the trolley pole, etc., the refusal
of an amendment, aftw the statute of limita-
tions had run, to aver that defendant was re-
quired to have a special automatic device upon
its cars to keep its trolley poles from catching
in car wires, or to require the conductor to hold
the trolley rope, was not error.
[Ed. 'Note.— For other cases, see Limitation
«f Actions. Gent. Dig. i 645.]
Appeal from Court of Common Pleas, Phil-
adelphia County.
Trespass by Elizabeth Dougherty against
the Philadelphia Rapid Transit Company to
recover damages for personal Injury. From
an order refusing to take off a compulsory
nonsuit, plaintiff appeals. Reversed, with a
venire facias de novo.
Argued before BROWN, O. J., and POT-
TER, MOSCHZISKER, PRAZEB, and WAL-
LING, JJ.
Frederick J. Sboyer, Martin Feldman, and
Henry Arronson, all of PbUadelpbla, for ap-
pellant Harold B. Beitler, of Philadelphia,
for appellee.
MOSCHZISKER, J. Tbls is an appeal
from the refusal to remove a nonsuit The
assignments of error raise numerous ques-
tions; but we shall discuss only such of
them as are In some sense controlling.
On S^tember 24, 1910, at about 2 o'clock
in the afternoon, tbe plalntUT, a pedestrian
upon the streets of the city of Philadelphia,
was suddenly struck and knocked down by
a detached trolley pole which fell from the
top of one of defendant's cars, at the junc-
tion of Ridge avenue, Tenth and GallowbiU
streets. When the case came to trial, tbe de-
fendant produced its motorman and conduc-
tor, as well as the Inspector who examined
tbe car In question, all three of whom were
placed upon the stand by the plaintiff. So
far as the notes of testimony Indicate, these
witnesses were willing and fair; but their
examinations failed to disclose anything
unusual or defective in the construction or
maintenance of the offending car or its ajh
pllances. On the contrary, it appears that,
immediately after the accident, the trolley
pole showed no blemishes or defects; that
it was replaced in its socket, in apparently
good condition, and the car oi)erated as
usual; further, that, when the car was tum-
e!d in for inspection, the pole was "straight"
and all Its parts were in good repair ; final-
ly, the Inspector said that his examination
did not disclose or throw any light upon
what caused the troUey to leave its wire.
In addition to the witnesses already refer-
red to, a Mr. Mulford was called by the
plaintiff. It appears from this man's testi-
mony that there were single lines of trolley
wires suspended over both Tenth and Callovr-
hill streets, and a double line over Ridge av-
enue, all of these crossing one another and
forming a network at the point of the ac-
cident; that, when he arrived upon the
scene, the injured woman was lying on the
ground; and that the wire upon which the
trolley pole in question operated was "flop-
ping up and down," the rise and fall covering
a distance of from five to six Inches. The
motorman said that, Just before the accident,
he got a signal from the conductor to start,
and "went ahead" ; that almost Immediately
"the power left the car," and it stopped;
that he stepped off to see what had happened,
and found the pole lying in the street. The
conductor testified that, when the car start-
ed, "it gave a certain crack," and the trol-
ley pole fell to the street
We have summarized all the material ev-
idence in the case, excepting that the motor-
man stated there was nothing he saw or knew
of which could have caused the detachment
and fall of the pole; and this excludes the
theory of the possible intervention of an ex-
ternal agency. With the testimony thus,
plaintiff offered two experienced trolley car
operators, as experts, and tbe rejection of
certain questions put to them are the prin-
cipal matters complained of In the various
assignments of error.
[1 ] The first expert had worked a consider-
•s»F0r othar eaaw sm urn* topic aad KlBT-NinfBBR In aU K«r-Namb«nd DlgMts and ladesss
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101 ATIiANTIC REPOKTER
(Pa.
able period for the defendant company, leav-
ing their service about five years before the ac-
cident, and, BO far as the record shows, his
experience with trolley cars was all gained at
that time, he having subseqaently gone into
another line of employment. There was no
offer to prove the trolley equipment, etc.,
was the same at the date of the accident as
when the witness in question acquired his
alleged special knowledge. Hence, with this
lack in the evidence, his opinion on the ques-
tions pot to talm would not have been a safe
guide for the Jury ; but, aside from this asr
pect of the matter, after mature thought,
we do not see that there was sufficient foun-
dation to Justify the following Interrogatory,
put to the witness by counsel for plaintiff:
"As a result of your experience, could a
trolley wheel leave the wire if the pole was
properly adjusted?" The question Just stat^
ed, which was disallowed by the trial Judge,
covers in substance the point sought to be
raised by several of the assignments of er-
ror; and Its evident purpose was to prove,
if possible, by opinion testimony that which
was susceptible of proof by direct evidence,
L e., the fact as to whether or not the pole
had been properly adjusted.
As previously stated, the notes of testi-
mony show that the plaintiff had no diffi-
culty in securing the attendance of the
defendant's employes, and, furthermore, the
latter's evidence indicates that, after the
accident, the pole and other trolley appli-
ances were in good condition. If the plain-
tiff wanted to inquire as to the InspectlMi
and adjustment of this pole, prior to the
accident, there was nothing to prevent him
from BO doing. Had such a preliminary in-
quiry develojied testimony from which the
Jury might have reached the conclusion that
the pole had not been properly adjusted, and
had this testimony been met by counter
proofs, then, perhaps, the question under
consideration would have been a proper one ;
but, on the record as it stands, we see no
error in the ruling of the court below with
reference thereto.
[2] The other expert had gained his ex-
perience by working as a conductor for the
defendant company during a period of ten
years, from 1005 to 1915. Ttte plaintiff of-
fered to prove by this witness that trolleys
"would frequently leave the wire; that, as
a result of leaving the wire, at an intersec-
tion such as Tenth and Callowhlll streets
and Ridge avenue, there was constant dan-
der of the trolley wheel catching in the wires,
the result of which would be. If the car mov-
ed on, to pull the pole out of the socket;
• • •" again, that "it would be danger-
ous to cross a network of wires such as there
was at this place [the point of the accident]
without taking hold of the trolley rope to
prevent it [the trolley wheel] being caught in
the wires above; . and that the instructions
were to conductors, at that time, to take
bold of the rope at such a place." These
offers were rejected, and Uie plaintiff secur-
ed proper exceptions.
It Is true that the printed rules of the
company, produced by the defendant, did not
provide any Instructions to conductors such
as suggested in the offer; but the fact that
the printed rules failed in this respect did
not render it impossible that oral instruc-
tions might have been given, as contended by
the plaintiff. Whether or not such instruc-
tions weie given, however, if it could be
shown as a fact that trolleys frequently
leave their wires, that, on such occasions,
there is constant danger of the trolley wheel
catching, and that this danger Is well known
and could be avoided by the conductor hold-
ing the rope, it would be a question for the
Jury whether or not, under the conditions
existing at the point of this accident, the
present car was operated with ordinary, due
care when the conductor failed to hold the
rope.
[3] There was aome direct proof that this
trolley left the wire, and, in addition, we
have the circumstance of the latter flopping
up and down. On the whole, we think that
there was sufficient circumstantial evidence
to require its submission to the Jury, so that
they might determine whether or not the
trolley pole had been pulled from the top
of the car by becoming enmeshed in the wires,
and, further, If they so found, whether or
not the conductor was guilty of negligence
in falling to hold the rope at the place in
question; finally. If he was so guilty, wheth-
er or not his neglect was the proximate cause
of the accident.
[4] Outside of Pennsylvania, there is a
strong line of cases which hold that the mere
happening of such an accident as the one
here under investigation puts the burden
of explanation upon the defendant These
cases go upon the principle that, "Where a
thing is shown to l>e under the management
of the defendant and Ms servants, and the
accident is such as in the ordinary course of
things does not happen if those who have
the management use proper care, it offers
reasonable evidence, in the at>sence of ex-
planatlon by the defendant, that the acci-
dent arose from want of care" (see leading
case of Scott v. London & St Katherlne
Doc^s Co., 3 Hnrlstone ft Cioltman, 594); but
we have not gone this far. See Lanning v.
Pittsburgh Railways Co., 229 Pa. 675-577, 79
Atl. 136, 32 L. R. A. (N. S.) 1043; Clark v.
Philadelphia Rapid Transit Co., 241 Pa. 437,
88 AtL 683; Benson v. Philadelphia Rapid
Transit Co., 248 Pa. 802, 93 AtL 1009; Zerch-
er V. Philadelphia Rapid Transit Co., 50 Pa.
Super. Ct. 324 — all trolley cases, the last
three concerning the fall of poles. In Gtei-
ser V. Pltteburgh Railways CJo., 223 Pa. 170,
172, 72 Atl. 351, 352, however, where a pedes-
trian upon the street was Injured by a car
which Jumped Its track, near a switch, and
the only evidence of negligence was the
fact that "the switch point was worn flat,"
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SMITH y. MoCLURE
347
we held the Jnry might draw the Inference
that the accident was occasioned by the
worn condition of the switch point There
we affirmed per curiam, adopting the opinion
of the court below, wherein the applicable
principle Is stated thus:
"It is Btill the rule of law that the hapi>ening
of the accident, in cases such as this one, is not
evidence of itself of nexligence, but the quan-
tom ot proof necessary to establish negligence,
under certain circnmstances, need be very
■ligbt."
[I] Wo feel that the mle as Just stated
should be applied in the present instance.
While, before the plaintiff can recover, she
must show how the accident happened and fix
the defendant with negligence, yet. In so
doing, she Is not restricted to direct evidence;
dte niay make her case ont by drcnmstantial
proofs sufBdently strong to cari7 conviction
to a reasonable mind. As already Indicated,
we feel that certain parts of the testimony
otTered should have been allowed as evidence,
nnd that the Issues heretofore suggested
should have been submitted to the Jurors for
their determination. In addition to the au-
thorities already dted, see Oaffrey ▼. Phil-
adelphia Rapid Transit Co., 249 Pa. 364, 94
An. 924: Janock v. Balto. ft Ohio R. E. Co.,
252 Pa. 199, 97 Atl. 205.
[8] One other matter calls for considera-
tion. Tbe accident happened in 1910; the
suit was Instituted and the statement of
dahu filed in 1911. Plaintiff averred that it
was the duty of the defendant properly and
carefully to "Inspect and repair" Its cars and
appliances, and to operate and control them
upon the streets of the city In a proper and
careful manner, so that "pedestrians crossing
the said streets • • • should not be in-
jured by said cars or by the falling from said
cars of any part or appliance thereof; that,
disregarding these duties, the defendant neg-
ligently suffered one of Its cars to remain out
of repair, and so negligently managed, op-
erated, and controlled this car that "the pole
which was attached to the top • • • sud-
denly and without warning fell from said
• • • car and struck the plaintiff." In
1916 the plaintiff asked leave to amend her
statement, by adding an averment to the effect
that it was the duty of the defendant to op-
erate its cars in such a way as to hinder the
trolley wheel from catching in cross wires;
that it was known to the defendant that trol-
leys frequently left their wires at intersect-
ing streets; and that It was the duty of the
defendant to have a special automatic device
upon its cars to keep its trolley poles from
becoming caught In such wires In case they
should leave their lines; finally, that, when
a device of this kind was not used, it was the
duty of the conductor. In approaching street
intersections such as the one in this case, to
take hold of the rope attached to the trolley
pole, in order to control the latter and pre-
vent accidents. The coart below refused to
permit these amendments.
There Is nothing in the proposed amend-
ments which could not properly be proved
under the original statement, except the aver-
ment as to the automatic device, and we
agree with the learned court below that this
could not be added to plaintiff's case after the
statute of limitations had ran; for the
charge of nonperformance of duty on the part
of the defendant in not equipping Its cars
with such a device would raise a new element
calling for a defense entirely different from
that required by the averments of the original
declaration. If there Is such a safety device
ta general use as alleged In the proposed
amendments, of course the defendant ought
to Install It; but the latter's legal obligations
■o to do, under penalty of being found guilty
of negligence, is a point which, on the plead-
ings in this case, we are not caUed upon to
diamim or decide: There is no merit In the
present assignment
AU specifications of error which direct at-
tention to rulings in conflict with the views
here expreesed are sustained, and the Judg-
ment is reversed, with a venire fadas de novo.
(ST Fa. 1<8)
SMITH V. McCLTJRB et al.
(Supreme Court of Pennsylvania. March 12,
1917.)
1. Fbax;di;i.ent Oonvxtanoks «=>237(1)— Ao-
TioN TO Set Abids — JuBisoionoif or
Eqttitt.
Equity has concurrent Jurisdiction with law
of actions to set aside alleged fraudulent convey-
ances of realty to defeat neditora, though where
there is an adequate remedy at law and the ju-
risdiction of equity is raised by demurrer or an-
swer, the case will be remitted to the law side ot
the court.
[Ed. Note.— For other cases, see Fraudulent
Conveyances, Cent Dig. U 674-677, 685.]
2. EqurrY 4=342(1) — Findikg ot Jubisdio-
TION — Conclusiveness.
Under Act June 7, 1907 (P. L. 440), the de-
cision of a court of equity in favor of its juris-
diction is ctmclusive upon the plaintiff.
[Ed. Note.— For other cases, see Equity, Cent
Dig. I U9.]
3. EquiTT «=942(D — JnaiSDiOTioiT — Objko-
TION.
Where a party seeks relief in a court of
equity against fraudulent conveyances and In-
sists on its jurisdiction, he cannot thereafter
complain because the court sustains his conten-
tion and disposes of the case on its merits.
[Ed. Note.— For other cases, see Equity, Cent
Dig. i 119.]
4. JUDOUENT «=»645— Bks Adjudicati.— Va-
uDiTT OK Deed.
Where one filed a bill in equity against a
grantee averring that a deed was in fraud of
creditors and seeking to have it declared void,
and the grantee filed a denial and claimed that
complainant was not entitled to equitable relief
and complainant filed a replication and insisted
on equity jurisdiction, a decree on final hearing,
dismissing the bill, was res adjudicata as to
a subsequent suit of ejectment against the gran-
fBofor otb«r ums im wms topic and KBT-NtJMBIIR ta all Ksy-NnmlMrsd Dlfssts and ladeMs
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348
101 ATLANTIC REPORTER
(Pa.
tor and grantee, setting np tlie alleged frandn-
lent character of the deed.
[Ed. Note.— For other cases, see Judgment,
Cent IMg. S 1158.1
Appeal from Coart of Common Pleas, Chea-
ter County.
Ejectment by C. SbiUard Smith against
Battle 0. McClnre and husband. Judgment
for defendants on demurrer to their answer,
and plaintiff appeals. Affirmed.
Argued before BROWN, O. J., and MES-
TRE3ZAT, STEWART, MOSCHZISKER, and
WALLING, JJ.
W. B. Greenwood, of CoatesvlUe, for appel-
lant S. Duffleld Mitchell, of West Chester,
for appellees.
WALLING, J. On January 9, 1915, Henry
0. McClure executed and delivered to hla
wife. Battle 0. McClnre, a deed for certain
land In the borough of CoatesvlUe, which
deed was duly recorded on February 12th of
the same year. Between the delivery and
recording of the deed Mr. McClure gave C.
Shillard Smith, the plaintiff herein, a Judg-
ment note for an existing Indebtedness, on
which Judgment was entered prior to the re-
cording of the deed. Thereafter plaintiff flled
a bill in equity in the court of common pleas
of Chester coimty against Battle C. McClure,
averring that the deed was in fraud of the
rights of the creditors of Benry C. McClure,
and particularly in fraud of the rights of
plaintiff, and praying that It be decreed
fraudulent and void, and as such expunged
from the record. To this Mrs. McClure filed
answer, denying the allegations thereof, and
further averring that complainant was not
entitled to equitable relief, and that a court
of equity was without Jurisdiction therein.
Plaintiff liLsistently contended at every stage
of the proceeding that the court had Juris-
diction. Be flled a replication, and the case
proceeded to trial on the merits. On the
conclusion of the testimony submitted by
plaintiff, the court, being of the opinion that
the right to equitable relief had not been sub-
stantially proven, entered a decree dismissing
the bill at costs of complainant, and later
dismissed the rule to strilce off the decree,
.whereby It became final. Thereafter plain-
tiff issued execution on bis said Judgment, by
virtue of which the land was sold to him by
the sheriff; and then plaintiff brought this
action of ejectment against Mr. and Mrs.
McClure, and bases his right to recover on
the alleged fraudulent character of the deed.
Defendants' answer sets up the decree in
the equity suit, and avers that thereby the
question as to the validity of said deed is res
adjudicata; and, on plaintiff's demurrer
thereto, the court below entered Judgment for
the defendants.
[1-3] The mle urged for appellant, that
jurisdiction of the subject-matter cannot be
acquired by consent, is sound as a general
proposition, but has no application to this
case, because equity has concurrent Jurisdic-
tion with the law side of the court of actions
to set aside alleged fraudulent conveyances
of real estate. Bowever, where there is an
adequate remedy at law and by reason of
which defendant raises the question of Juris-
diction by demurrer or answer, the case will
be remitted to the law side of the court Act
of June 7, 1907, P. L. 440 (Purdon's Digest
[13th Ed.], vol. V, page 5465. Under that act
the decision of a court of equity In favor of
its Jurisdiction is conduslve upon the plain-
tiff. Bere appellant sought relief in a court
of equity, and insisted on its Jurisdiction,
and he cannot no.w complain because the
court sustained his contention and disposed
of the case upon its merits. In a case like
this, where the parties voluntarily proceed
to trial upon the merits, the decree in equity
la valid, and the plaintiff is not relieved there-
from because the defendants vainly sought to
oust the Jurisdiction of the court
Even a defendant waives his right to an
issue, or to a trial upon the law side of the
court, unless he demands it promptly. "While
objection to the Jurisdiction can generally
be made at any stage of the proceedings, ob-
jections to the Jurisdiction of equity on the
ground that the proceedings should have beesa
instituted <m the law side of the court will
not t>e entertained, unless made within a
reasonable time after bill filed. 'Whether a
case may be brought in the chancery form is
only a question of form and not of Jurisdic-
tion, and the objection Is waived If not made
in due season.' " Penna. R. R. Co. v. Bogert,
209 Pa. 589, 602, 59 Atl. 100, 105.
Equity has concurrent Jurisdiction with
law where property has been fraudulently
conveyed or Incumbered in order to defeat
the claims of creditors. Orr v. Peters, 197
Pa. 006, 47 AtL 849. And see Kemmler v.
McGovem, 238 Pa. 460, 86 AU. 304, and Wag-
ner V. Fehr, 211 Pa. 435, 60 Aa 1043, 3 Ann.
Cas. 60&
The case of Byde v. Baker, 212 Pa. 224, 61
Atl. 823, 108 Am. St Rep. 865, Is not parallel
to this; for In that case the defendants ap-
pealed; and, aside from that, the creditor
there first pursued his remedy at law by a
sheriff's sale of the land in question, of which
he became the purdiaser; and it was there
held that his only remaining step was an ac-
tion of ejectment and not a bill in equity.
And that case was determined prior to the
passage of the said act of 1907.
Where a plaintiff at all stages of the pro-
ceeding insisted that equity had Jurisdiction,
he cannot, after the bill has been dismissed
upon the merits, have the case certified to the
law side of the court Nissley v. Drace, 242
Pa. 105, 88 AU. 914.
[4] Neither can he maintain an actl<m at
law for the identical cause of action already
determined against him in equity. "Juris-
diction win not be taken In equity to retry on
the same facts a cause of action Uiat has been
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PaJ
STRATPOKD t. FKANKLIN PAPER MILLS 00.
349
decided in proceedings at law." Megahey t.
Fanners' & Mecbanlcs' Savings Fund & liOan
Ass'n, 215 Pa. 351, 64 Atl. 546. And the same
role applies generally to courts of concurrent
Jurisdiction. Plaintiff bad bis day in court
in a forum of bis own selection, and is con-
dnded by the decree there entered, from
which he took no appeal.
The Judgment is affirmed.
(IM Pa. IBS)
STRATFORD t. FRANKLIN PAPER
MILLS CO.
Appeal of C01£UONW£AI/rH.
(Supreme Court of Pennsylvania. Mardi 12,
1917.)
1. Taxation ®s>114 — Insoltbhot of Cobpo-
BATION— BtFEOT.
The fact that a corporation was insolvent
and in the bands of a receiver did not affect
the light of the state taxing officer, as it was
the receiver's duty to make the retams called
for by the law, and npon his failure to do so,
it was the right and duty of the auditor gen-
eral to assess taxes on its capital stock, etc.
[Ed. Note. — For other cases, see Taxation,
Cent. Dig. H 208-2101 271, 273.]
2. Taxation ^=»407 — Rkturns— Notice.
Whore the formal notices of tax settlements
aent to a company in the hands of a receiver
stated that "after repeated requests" it had
neglected to furnish a report it would be as-
sumed, without averment or proof to the con-
trary, that the receiver had knowledge in law
or in fact that such reports were required, and
that if not furnished the state officials would
proceed to appraise and settle accounts against
the company for its taxes; prior notice of an
intention to assess such taxes not being essen-
tial.
[Eld. Note.— For other cases, see Taxation,
Cent. Dig. { 674.]
8. Taxation d=»451 — Heabino — Appkai,.
Bvery taxpayer is entitled to an opportunity
to be heard by the taxing authorities before a
tax is conclusively settled against him, but
there is no rule requiring that he be afforded
a further appeal to a court of law.
lEA. Note.— For other cases, see Taxation,
Cent. Dig. H S06, 808.]
4. Taxation €=>446 — CoapOBATiONB— Find-
ings OF Taxing Officials— Revibw.
A settlement of a state tax on the capital
stock of a corporation under Act June 1, 1889
(P. L. 42W, Act June 7, 1911 (P. L. 673), and
Act Jaly 22, 1913 (P. L. 903), involves findings
of fact by duly authorized officials and no other
tribunal, unless one duly authorized, may in-
qnire into or set aside such findings.
[EJd. Note. — For other cases, see Taxation,
Cent Dig. ff 784-786.]
6. Taxation «=»446— Cobpobations— Abskss-
HENTS.
When, the taxing authorities have general
power to assess the subject-matter involved, an
assessment made as authorized by law cannot
be questioned or set aside except in the way
provided by the statute.
[Ed. Note. — For other cases, see Taxation,
Cent. Dig. §S 784-78&]
Appeal from Court of Common Pleas, Del-
aware County.
Exceptions to report of auditor dismissed,
and claim of Commonwealth for taxes in
case of Frank B. Stratford against the
Franklin Paper Mills Company disallowed,
and the Commonwealth appeals. Reversed
and remitted to the court below, with direc-
tion.
Argued b^ore BROWN, C. J., and MES-
TREZAT, STE3WART, MOSCHZISKER, and
WALLING, JJ.
Wm, M. Hargeat, Deputy Atty. Gen.,
Francis Shunk Brown, Atty. Gen., and J. C.
Taylor, of Chester, for the Commonwealth.
William C. Alexander, of Media, for appellee.
MOSCHZISKER, J. On April 21, 1914, the
Franklin Paper Mills Company, a Pennsyl-
vania corporation, became Insolvent and
went into the hands of a receiver, who turn-
ed its assets into cash ; an account was filed
and referred to an auditor; May 27, 1915,
the commonwealth presented claims before
the latter for 1914 taxes on capital stodc and
corporate loans; these accounts had been
duly settled by the proper authorities. May
5, 1916, for want of the annual reports whicb
the law requires from such corporations; but
the l&amed auditor, instead of accepting the
settlements in question as conclusive, took
testimony and found that all the assets of
the paper company were used in manufactur-
ing, further, that the bonds taxed were held
exclusively by nonresidents; on these find-
ings, he concluded as a matter of law that
the state was not entitled to the taxes claim-
ed ; the court below decreed accordingly, and
the Attorney General has appealed.
The ultimate controlling question is: Was
the court below obliged to accept the tax
settlements presented by the commonwealth
as conclusive?
[1] The fact that the corporation was in-
solvent and In the hands of a receiver did
not limit, restrict, or affect the right of the
state taxing officers, for it was the duty of
the receiver to make the returns called for
by the laws of the commonwealth, and, upon
his failure so to do. It was the right and
duty of the auditor general to assess against
the corporation the taxes here Involved.
Commonwealth v. Runk, 26 Pa. 235; Penna.
Bank's Assignees' Account, 39 Pa. 103 ; Phil-
adelphia & Reading R. R. Co. t. Common-
wealth, 101 Pa. 80.
[2] Since the formal notices of the tax
settlements sent to the iwper company state
that, "after repeated requests," it had "neg-
lected or refused to fumlah a report," In
the absence of any averment or proof to the
contrary, we must assume the receiver had
knowledge, not only In law but In fact, that
the prescrllied reports were required and, if
not furnished, the proper state officials would
proceed to appraise and settle accounts
against the corporation for the taxes in
question. It has been held, under circum-
stances closely approximating those at bar,
that prior notice of an Intention to
«s»ror other eases see Mune topic and KXT-NUMBER lo aU Key-Numbered Dtgetti and Indexes
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350
101 ATLANTIC REPORTER
(Pa.
such taxes Is not essentlaL See Commou-
wealth T. Runk, 26 Pa. 235, 236, 237.
[3] Every taxpayer is entitled to an oiv-
portunlty to be heard by the taxing author-
ities before a tax is conclusively settled
against him (Wharton v. Birmingham Bor-
ough, 37 Pa. 371; 11 Modem American Law,
p. 428, i 48) ; but there Is no rule or prin-
ciple which directs that he must be afforded
a further appeal to a court of law (Van
Nort's Case, 121 Pa. 118, 128, 129, 15 AU.
473 ; 11 Modem American Law, p. 428, t ^^)-
[4, 1] Under the relevant acts of assembly
In onr state, when a corporation fails to
make the rei)orts called for in the statutes,
an appraisement Is made and taxes of the
nature here involved are settled by the au-
ditor general, such settlements being approv-
ed by the state treasurer before they be-
come conduslve; but the act of March 30,
1811 (6 Sm. L. 228, t 16), authorizes and re-
quires these offldals, "at the request of each
other or of the party" (meaning the party
taxed), to "revise any settlement made by
them, except such as have been appealed
from, • • • If such request be made with-
in twelve months of the date of settlement,
• • • " and the act of April 8, 1869 (P.
L. 19), authorizes a board consisting of the
auditor general, state treasurer, and Attor-
ney General to revise any tax settlement,
even after the year's limit Commonwealth
V. Penna. C!o., 145 Pa. 266. 278, 283, 23 Atl.
649. Under these two statutes, a practice of
tax revision has grown up and become es-
tablished (recognized In the recent act of
April 0, 1913, P. L. 48), which affords ample
protection to corporate taxpayers who, be-
cause of neglect to make the prescribed re-
ports, have had accounts for taxes settled
against thou, without right of appeal. See
act of June 1, 1889 (P. L. 420), as amended
by the act of June 8, 1891 (P. L. 229, p. 236).
In instances where appeals are allowed from
tax settlements, the court of common pleas
Of Dauphin county Is the only tribunal with
original Jurisdiction to bear such cases. See
section 11, act of March 30, 1811, supra, and
the act of April 7, 1870 (P. U 57).
Where, in any given case, the taxing au-
thorities have general power to assess the
subject-matter involved, an assessment made
in manner and form authorized by law, can-
not be questioned or set aside except in the
way provided in the statutes. Hughes v.
Kline, 30 Pa. 227, 231. In other words, such
an assessment, or settlement, cannot be at-
tacked collaterally. Clinton School District's
Appeal, 66 Pa. 315, 317; Van Nort's Case, 121
Pa. 118, 128, 129, 15 AtL 473; Moore v. Tay-
lor, 147 Pa. 481, 484, 23 Atl. 76a While
there is a line of decisions holding that,
where a municipal subdivision, or other gov-
emmoital agency possessing a limited power
to tax, endeavors to make a levy upon a sub-
ject-matter over which it has no right of
taxation, the courts generally have Jurisdic-
tion in equity to restrain this usurpation, yet
we have been referred to no case where a
Pennsylvania court sitting In equity has un-
dertaken to stay the hand of the comoKm-
wealth from the collection of a duly settled
state tax upon a subject-matter within the
general JurlsdictiiHii of its taxing officers,
much less where, on the audit of an account,
a common pleas court, in the exercise of its
general authority, has, in effect, attempted
so to do; which is the case at bar.
Since. the act of June 1, 1889 (P. Ll 420),
amended by the act of June 7, 1911 (P. L.
673, 675), and the act of July 22, 1913 (P. U
903, 905), provides that "every corporation
* * * from whom a report Is required
[which includes companies such as the pres-
ent one] shall be subject to • • • a tax
• • • upon each dollar of the actual val-
ue of its whole capital stock," an exemption
being allowed only of "so much • • • as
Is Invested purely in • • • manufactur-
ing," In making tax settlements. It becomes
the duty of state officials vested with power
in the premises not only to appraise capital
stock, but, in each instance, to determine
how much thereof is subject to taxation;
hence the tax settlements now before us, ex
necessitate, imply certain findings to the ef-
fect that the capital taxed was not involved
In manufacturing, also that the bonds in
question were held by residents of the com-
monwealth. On this last point, see Common-
wealth V. Lehigh Valley R. R. Co., 129 Pa.
429, 18 Ati. 406, 410; Id., 186 Pa. 235, 246. 40
Atl. 491 ; Commonwealth v. Penna. Salt Mfg.
Co., 145 Pa. 53, 22 Atl. 215. The officials who
made these settlements being vested with ap-
propriate power, no other tribunal, unless one
duly authorized, would have the right to in-
quire into or set aside their findings of fact,
which, in effect, is what the court below was
obliged to do in order to gain Jurisdiction
of this case. In brief, the common pleas of
Delaware county had neither authority to
entertain an appeal from the tax settlements
here Involved nor Jurisdiction to restrain
the state from proceeding to collect the taxes
assessed therein; hence it was beyond the
power of that tribunal to accomplish by in-
direction that which it could not do directly ;
therefore the decree appealed from, so far as
it affects the taxes claimed by the common-
wealth, must be reversed and set aside.
Many acts of assembly and decided cases
are referred to in the printed arguments;
we have examined all, but cite comparatively
few of them. Although all the authorities
mentioned in the course of this opinion may
not contain rulings directly upon the prin-
ciple in connection wherewith they are cited,
yet, we think, whenever this is a fact, either
rulings on analogous points or relevant en-
lightening discussion will be found present
In a supplemental paper book filed after
argument, the appellee suggests that the as-
signments of error are not In proper form,
counsel at the same time stating that they
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PROVIDENT LIFE A TRUST CO. r. KLEMMER
351
vonld not raise snch a "technical point" If
their case were not a "hard one," which lat-
ter ftict the aiH>eUant admits; but, on the
other band, the Attorney General contends
that he cannot, in the due performance of
his official duty, permit the precedent es-
tablished by the court below to stand, very
tmly saying:
"The legal machinery of the state wonld not
\yt lufficient to travel around the commonwealth
for tho purpose of sustaining tax settlements
which might be collaterally attacked, if the
judgment of the court below • • • should
be affirmed."
While the assignments are open to Just
criticism, yet under the circumstances, we do
not feel that the violation of our rules Is
such as to Justify a dismissal of the appeal.
We take occasion to say, however, that. If
the facts are as found by the auditor, and
sot denied by the appellant, the state should
grant some form of relief in this case ; for,
as said In Ck>nunonwealth v. Penna. Salt Mfg.
Co., supra, "the commonwealth does not ask
that which Is against good conscience."
So far as affected by the rulings here con-
tained, the decree Is reversed, and the record
is remitted to the court below, with direo
tlon to revise Its distribution accordingly.
m Pa. K)
PROVIDENT LIFE & TRUST 00. t. ELEM-
MER et aL
(Supreme Court of Pennsylvania. March 12,
1917.)
1. Statutes «=>184— OoRSTBtrcnoir— Rkason
FOB Bnactmknt.
In the construction of a statute. It is prop^
er to consider the previous state of the law, the
drcnmstances which led to the enactment, and
especially the evil which It was designed to cor-
rect
[Ed. Note.— For other cases, see Statutes,
Cent. Dig. i 262.]
2 Taxation «=»113 — Cobpobationb — Pkb-
BONAL PbOPEBTY TAX— STATUTES.
Act June 7, 1911 (P. L. 67.^), imposing a
state tax on the capital stock of corporations,
and providing that corporations liable to such
taxes should not be required to pay any further
tax on mortgages and securities owned by them,
and in which the whole body of stockholders or
members as such had the entire equitable inter-
est in remainder, was not repealed by Act June
17, 191S (P. L. o07), Imposing a tax on personal
property, bonds, certificates of indebtedness, etc.,
for state and county purposes, as the two acts
are in pari materia, so that a bill in equity to
restrain tiie question of a tax under the act of
1911 would be dismissed.
[Ed. Note.— For other cases, see Taxation,
Cent. Dig. { 207.]
8. Taxation «=>908 — Cobpobationb — Pkb-
BORAL Pbopebtt Tax— Constbuction.
Act June 17, 1913 (P. L. 507), is a codifica-
tion of the former laws relating to personal
property tax, and Its principal purpose was to
give the tax to the counties, instead of, as there-
tofore, havin|; it collected as a state tax, and
part of it paid to the counties.
[Ed. Note. — For other cases, see Taxation,
Cent Dig. { 1740.]
4. Statutes «=»159— REPSAir-IirneNTioN.
The legislative intent is the vital force of
sn act of assembly, and though a subsequent
statute is strictly contrary to a previous one,
yet. If the intention appears that the previous
statnte shall not be repealed, it remains unaf-
fected.
[EM. Note.— For other cases, see Statutes,
Cent. Dig. 8 229.]
6. Statutes «=»2S2— Refeai. — Expbkssio
Untus est Exclubio Altebiub.
Where an act repeals a prior act, or certain
sections of a prior act, all other prior acts, or
sections of the act, must be regarded as still in
force, under the maxim "expressio unius est ex-
dusio alterius."
[Ed. Note.— For other cases, see Statutes,
Cent Dig. t 313.]
Appeal from Court of Common Fleas, Phil-
adelphia County.
Bill in equity for an injunction by the
Provident Life & Trust Company of Phila-
delphia against Joseph H. Klemmer and an-
other, Assessors, and Simon Gratz and oth-
ers, members of the Board of Revision of
Taxes, for the City and County of Philad^-
phia, the City of Philadelphia, and W. Free-
land Kendrlck, Receiver of Taxes. Injunction
awarded, and defet^dants appeal. Reversed,
and bUl dismissed.
Argued before BROWN, C. J., and MES-
TREZAT, POTTER, STEWART, and FRA-
ZER, JJ.
Wm. M. Hargest, of Harrlsburg, and
Mayne R Longstreth, Asst. City SoU and
John P. Connelly, City Sol., both of Phila-
delphia, for appellants. Abraham M. Settler,
Henry S. Drinker, Jr., R. Stuart Smith, and
Charles E. Morgan, all of Philadelphia, for
appellee.
MESTRK/AT, J. This bill was filed by the
Provident Life and Trust Company of Phil-
adelphia to restrain the assessors, the board
of revision of taxes, and the receiver of tax-
es of the dty and county of Philadelphia,
from levying and collecting the personal
property tax of four mills on the mortgages,
bonds, and other securities, known as the
plaintiff company's Insurance assets, aggre-
gating $88,172,072.01. The plaintiff has paid
the tax on Its capital stock, on the securities
held by It as trustee, etc, the eight mills tax
upoD the gross premiums received in Its life
insurance business, taxes upon Its real es-
tate In Pennsylvania, and taxes Imposed In
the other states where It has agencies. It
denies liability for the four mills tax on Its
Insurance assets under the tax laws of this
state. The single question In the case, there-
fore, Is whether the d^endants are author-
ized to levy and collect the iteisonal property
tax of four mills on the securities, whldi
constitute the so-called Insurance assets of
the plaintiff, a corporation liable to a capital
stock tax.
[1] In determining the question at Issue,
which requires the Interpretation of existing
legislation imposing the personal i>roperty
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352
101 ATLANTIC BEPOBTEB
(Fa.
tax. It vlU aid materially to advert to the
cbarter acta of the plaintiff company and a
part of the subsequent legislation conferring
authority to tax corporate assets in this
state. In the construction of a statute, it is
proper to consider the previous state of the
law, the drcumstanoes which led to the
enactment, and especially the evil whldi It
was designed to oorreot. Black, Interp.
Laws, I 91.
The plaintiff was Incorporated and organ-
ized under the act of March 22, 1866 (P. U
656), which authorized it to do an insurance
and a trust business. The act provides that
Its "affairs shall be -managed by nine direc-
tors, stockholders of said company," and fixes
the amount and par value of the capital
stock. The supplementary act of February
18, 1869 (P. L. Id4), provides that the net
profits to be derived from the business of life
Insurance Shall be divided pro rata among
the policy holders. Since Its incorporation,
the plaintiff has been conducting the business
of an insurance company and a trust com-
pany.
The act of June 7, 1879 (P. Ij. 112), entitled
"An act to provide revenue by taxation,"
was the first general revenue act adopted by
the Legislature, and Imposed a tax on dif-
ferent classes of personal property made tax-
able by prior legislation, and provided the
machinery for its collectlcm. The fourth sec-
tion of the act imposed a tax for state pur-
poses upon the capital stock of corporations,
except banks, savings Institutions, and for-
eign instirance companies, and the seven-
teenth section laid a tax of four mills on
mortgages, money owing by solvent debtors,
etc., "in the hands of Individual citizens of
the state," but exempted from all taxation,
except for state purposes, mortgages, Judg-
ments, recognizances, and money due on arti-
cles of agreement for sale of real estate. The
act of June 30, 1885 (P. L. 193), made no
change in the subjects of taxation nor any
provision for a capital stock tax. It imposed
a state tax of three mills on mortgages, etc.
The act of June 1, 1889 (P. L. 420), Is a
supplement to the act of 18T9. It Is compre-
hensive In Its terms and re-enacts all prior
tax legislation, both as to personal property
and capital stock. The first section Imposes
a three mills tax for state purposes on the
personal property therein enumerated, owned
by any Individual or corporation, except as
therein excepted, whether held in his or its
own right or in a fiduciary capacity, and the
following 17 sections provide the necessary
machinery for the assessment and collection
of the tax. The nineteenth section requires
corporations to be registered, the twentieth
section to report to the auditor general for
taxation of capital stock, and the twenty-
first section Imposes a tax on capital stock
of corporations, to be computed in the man-
ner therein specified. It is provided in the
last named section that corporations liable
to tax on capital stock, under this section.
shall not be required to pay any further tax
on the securities "belonging to them and con-
stituting any portion of their assets included
within the appraised value of their capital
stock." The capital stock of manufacturing
corporations Is exempted from taxation. The
act repeals certain sections. Including section
4, of the act of 1879, and part of the act of
1885, and all other sections of those acts
and other acts inconsistent therewith or sub*
stantlally re-enacted by this act.
The act of June 8. 1891 (P. L, 229), sup-
plementary to the former acts, changed the
personal property tax from three to four
mills and amended various sections of the
act of 18S9, Including sections 1, 20, and 21,
so that corporations liable to a capital stock
tax under the last-named section should not
be required to make report or pay any fur-
ther tax on the securities owned by them In
their own right The act of June 8, 1893
(P. L. 353), amended only section 21 of the
act of 1891, and made no substantial change
In the exemption proviso to that section of the
act An ineffectual attempt was made by the
passage of the act of June 7, 1907 (P. L. 430),
declared unconstltatlonal by reason of the de-
fective title (Provident Life and Trust Co. v.
Hammond et al., 230 Pa. 407, 79 Att. 628),
to amend the act of June 7, 1879, so as to in-
sert in the proviso to the act of 1893 the
words, "and In which the whole body of
stockholders or members, as sudi, have the
entire equitable Interest in remainder," found
In the subsequent act of June 7, 1911 (P. L.
673). The act of May 11, 1911 (P. L. 265),
amended only the first section of the act of
1880, as amended, and relieved fire compa-
nies, etc., from taxation.
The act of June 7, 1911, amends the act of
1879, as suiH>Iemented by the acts of 18S9,
1891, and 1893, "relating to taxing bonds,
mortgages, and other securities." It amends
only section 21 of the act of 1893 which was
a supplement to the act of 1889. It Imposes
a state tax of five mills on the capital stock
of corporations, with the following proviso:
"That corporations • • • liable to tax on
capital stock under this section shall not be re-
quired to pay any farther tax on the mortgages,
bonds, and other securities owned by them, and
in which the whole body of stockholders or mem-
bers, as encb, have the entire equitable int«^
est in remamder; but corporationg • • •
owning or holding such securities as trustees
• • * or In any other manner than for the
whole body of stockholders or members there-
of as sole equitable owners in remainder, shall
return and pay the tax imposed by this act upon
all securities so owned or held by them, as in the
case of individuals."
It will be observed that this amendment
omits the phrase, "in their own right" con-
tained In the act of 1893, and Inserts "In
which the whole body of stockholders or
members, as such have the entire equitable
interest in remainder." We decided in Provi-
dent Life & Trust Co. v. McOaughn, 246 Pa.
370, 91 Atl. 672, that the plaintUTs Insurance
assets were b^d for the policy holders as
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PKOVIDENT LIFE & TRUST CO. ▼. KliEMMEB
353
equitable owners. In remainder, and not for
the whole body of stockholders, and that
therefore these assets were not exempt from
taxation under the act of 1911.
The next and final legislation on the sub-
ject are the two acta of 1913. Act June 17,
1913 (P. li. 607), and Act July 22, 1913 (P. I*
903). It Is conceded that the first act corers
only the subject-matter of the first 18 seo-
Hona of the act of 1889, as amended. It pro-
vides In the first section for levying and col-
lecting a tax for county purposes on the
personal property therein enumerated, and ex-
empts therefrom securities held by corpora-
tions in their own right, and. In the seven-
teenth section, for a state tax of four mills
on scrip, bonds, or certificates of indebtedness.
The subjects of taxation are substantially
the same as in former laws, but the act ex-
empts from its provisions Ufe and fire in-
surance corporations "having no capital
stock." It la provided in sections 1 and 17
that corporations llaUe to a capital stock
tax shall not pay any further tax, local or
state, on the securities named in those sec-
tions and owned by the corporations in their
own right, but they shall pay the tax on
such securities when held in trust. This is
essentially the same exempting proviso as
was contained in the valid legislation impos-
ing the capital stock tax passed prior to the
act of June 7, 1911. The act specifically re-
peals, inter alia, the first 18 sections of the
act of 1889 and parts of the act of 1891, "and
all other sections and parts of the said acts
which are inconsistent herewith, or which
are hereby substantially re-enacted, and all
other acts or parts of acts inconsistent here-
with OP which are hereby substantially re-
enacted." It does not cite for repeal, nor
repeal in terms, sections 19, 20, and 21 of
the act of June 1, 1889, as amended, im-
posing the capital stock tax, nor the act
of June 7, 1911, nor any part thereof. The
acts repealed relate to the personal property
tax.
The plaintiff company relies on the act of
June 17, 1913, to relieve it from taxation on
Its insurance assets. It contends that the act
repeals the act of June 7, 1911, or the clause
In the exempting proviso of that act, "and
In which the whole body of stockholders or
members, as such, have the entire equitable
interest in remainder," and that the act- of
June 17, 1913, Is the only act which imposes
a tax for ^ther state or county purposes on
mortgages, bonds, or other securities.
As the briefs filed by counsel of both par-
ties disclose, the plaintiff comi>any has on
numerous occasions been required to defend
In the courts its right, under the tax laws of
the state, to exemption from taxation of Its
Insurance assets. In 1900 the plalntllt filed
a bill to restrain the tax officers of Philadel-
phia from taxing the property, and we sus-
tained its contention, and held that these
assets were not taxable under the tax legisla-
tion then In force, as by the proviso to sec-
101A.-23
tion 21 of the act of 1891 corporations paying
a tax on their capital stock were not required
to pay a further tax on the securities held
by them in their own right. Provident Life
& Trust Co. V. Durham, 212 Pa. 68, 61 Atl.
636. In 1907 another unsuccessful effort was
made by the tax authorities of the dty to
tax these assets under the act passed that
year, but we held the act to be unconstitu-
tional. Provident Life & Trust C!o. v. Ham-
mond, 230 Pa. 407, 79 Atl. 628. This decision
was immediately followed by the passage of
the act of June 7, 1911, amending the twen-
ty-first section of the act of 1889, as amend-
ed, which imposed a capital stock tax on cor-
porations with the exemption above noted.
The plaintiff again declined to pay a tax on
its Insurance assets, and, on a bill filed to
restrain Its collection, the trial court entered
a decree In its favor. An appeal was taken
to this court. Provident Life & Trust Co. v.
McCaughn, 248 Pa. 370, 91 Atl. 672. In that
ease the company attacked the constitutional-
ity of the act of 1911, contending that it was
unjustifiable classification, and that Its appli-
cation to the company would result in un-
lawful discrimination and double taxation.
We reversed the decree of the court below,
sustained the act, and held that it created a
new and valid classification for the pur-
poses of taxation, and that the plaintiff co^
pany was within the class.
We are clear that the Legislature did not
Intend to and did not repeal the nineteenth,
twentieth, and twenty-first sections of the act
of 18S9, as amended by the subsequent legis-
lation down to and including the act of 1911,
when It passed the act of Jime 17, 1913. If
this conclusion be correct. Provident Life &
Trust Co. V. McCaughn, supra, rules this
case In favor of the defendants, and the in-
surance assets of the plaintiff are taxable
under the provisions of the present tax laws
of the commonwealth. We think the legisla-
tive intent in the enactment of the statute of
1911 is shown by the general course of prior
legislation on the subject and the decisions of
this court to which we have referred, as well
as by the manifest purpose of the last two
statutes. To repeal an express enactment
by Implication requires a strong and clear
Inconsistency between the laws. Street v.
Commonwealth, 6 Watts & S. 200; Common-
wealth ex rel. Graham t. De Camp, 177 Pa.
112, 35 Aa 601; Jackson v. Penna. B. R. Co.,
228 Pa. 666, 77 Atl. 906. Under the legisla-
tion prior to the act of 1911, the plaintiff's
insurance assets, as decided by this court,
were not subject to the personal property
tax. The purpose of the Legislature to tax
the property was disclosed as far back at
least as 1907, when that body made the abor-
tive attempt to amend section 21 of the act of
1889, BO as to limit or narrow the exemption
from payment of the personal property tax
to securities held by corporations "in which
the whole body of stockholders or members.
as such, have the entire equitable Interest In
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(Pa.
remainder." Aa the litigation discloses, the
tax ofiSdals believed prior to this time that
the assets were taxable under the legislation
then In force In the state. When, and as soon
as. It was Judicially determined that this
was an erroneous view of the law, the As-
sembly passed the act of 1907. Within a few
months after that act had been declared un-
constitutional, the Iieglslature made another
effort to tax these assets, which resulted In
the iMssage of the amendatory statute of
1911. This act, as we have seen, limited the
exemption to which corporations were enti-
tled under section 21 of the act of 1889 to
securities held by them In which the whole
body of stockholders, as such, had the entire
equitable interest in remainder, and, with the
other amendments to that statute. It then
constituted the law In this state authorizing
the taxation of personal property and the
capital stock of corporations.
[J-8] We see no evidence of a legislative
Intent to repeal the act of 1911 in passing the
act of June 17, 1913. On the contrary, the
two acts of 1913 show unmistakably the in-
tention to continue in force the act of 1911 in-
cluding the limitation on the exemption
clause. Immediately prior to the passage
of the act of June 17, 1913, as will be observ-
ed, the personal property tax was levied and
collected under the first 18 sections of the
act of 1889, as amended, and a capital stodc
tax under section 21 of that act, as amended
by the act of 1911. These acts were In pari
materia, and, as pointed out above, constitut-
ed the whole body of law on the subject when
the act of June 17th was passed. This last
act contains 19 sections. Including the repeal-
ing section. The history of the legislation
taxing personal property in this state shows
that the act of June 17, 1913, is a codiSca-
tlon or compilation of the prior laws relating
to a personal property tax. The principal
purpose of the enactment, we think, was to
give the tax to the counties, instead of, as
theretofore, having it collected as a state tax,
and part of it paid to the counties. It pro-
vides in section 1 for levying and collecting
a personal property tax for county purposes,
and in section 17 for a state tax of four mills
on scrip, bonds, or certificates of indebted-
ness issued by private and public corpora-
tions. There is no provision in the act im-
posing a capital stock tax on corporations.
A proviso in the two sections, however, re-
lieves corporations liable to a capital stock
tax for state purposes from the payment of
taxes on the securities, named In the respec-
tive sections, owned by the corporations in
their own right This exempting provision
clearly recognizes a law then In force impos-
ing a capital stock tax, which, as will be ob-
served, was the act of 1911.
If we turn to the repealing section (19) of
the act of June 17, 1913, it is still more ap-
parent that the Legislature did not Intend to
abrogate the act of 1911, nor any part of its
provisions. The repeal of statutes by impli-
cation Is not ftivored, and, nnless a statute is
repealed in express terms, the presumption
is always against an Intention to repeal, if
there Is not an Irreconcilable repugnancy be-
tween the provisions of the two acts. It is a
well-recognized principle of statutory con-
struction that a merely nfllrmatlve statute
shall not be held to repeal a previous one,
if by fair and reasonable construction both
can stand consistently together. Homer &
Son r. Commonwealth, 106 Pa. 221, 226, 51
Am. Rep. 621; Rodebaugh v. Philadelidila
TracUon Co., 190 Pa. 358, 361, 42 AtL 953.
The legislative intent is the vital force of an
act of assembly, and even If a subsequent
statute, taken strictly and grammatically, is
contrariant to a previous statute, yet if, at
the same time, the intention of the Legisla-
ture is ai^arent that the previous statute
shall not be repealed, it remains unaffected
by the subsequent one. Crales, Sta. Law,
311. In Slfred v. Commonwealth, 104 Pa.
179. 181, we said:
"The leaning • • • of the courts Is strong-
ly against repealing the positive provisions of
a former statute by construction. • • • The
more natural, it not necessary, inference in all
such cases is that the Legislature intends the
new law to be auxiliary to, and in aid of the
purposes of, the old law. There should there-
fore be such a manifest and total repugnancy in
the provisions of the new law as to lead to the
concluBion that the latter law abrogated, and
was designed to abrogate, the former.
It is a cardinal rule of construction, in as-
certaining the legislative intent in the tai-
actment of a statute, that where an ace re-
peals a prior act, or certain sections of a
prior act, all other prior acts, or sections of
the act, must be regarded as still in force
under the maxim "ezpresslo unlus est ex-
clusio alterlus." Broom, Legal Maxims (8tli
Eng. Ed.) 514, says that no maxim of the law
is of more general and uniform application,
and that it is never more applicable than in
the construction and interpretation of stat-
utes.
Tested by these well-settled principles of
statutory interpretation, it Is clear, we think,
that It was not the Intention of the Legisla-
ture of 1913 that the act of June 17, 1913.
should repeal the act of 1911, nor any of ita
provisions. The first 18 sections of the act oC
1889, as amended. Imposed the personal prop-
erQ' tax and provided for its collection.
These sectlbns of the act of 1889, parts of tlie
act of 1891, the act of May 11, 1911, and cer-
tain other acts were repealed in terms by the
act of June 17, 1913. The fourth section of
the act of 1879 authorizing a capital stock
tax was repealed by the act of 1889 whlcti in
its twenty-first section relmposed a capital
stock tax on corporations and in sections id
and 20 provided for its collection. Section 21
of the act of 1889 was amended by the acts
of 1891, 1893, and 1911, and under the latter
act we held In the McCaughn Case that the
insurance assets of the plaintiff company
were taxahle. The sections of the several
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SHERBURNB y. BOUGIE
355
acts Imposing tbe capital stock tax hare not
in tenns been rei)ealed and If they are not
now In force It Is only because they are In-
consistent with or substantially re-enacted
by, the act of June 17, 1918.
The learned counsel for the plaintiff con-
tend that they are Inconsistent with the pro-
vlsiona of the act of June 17, 1913, but we
think the contention untenable. If the Leg-
islature of 1913 had Intended to repeal the
three sections of the act of 1889, as amended,
Imposing the capital stock tax, it would have
repealed In terms the first 21 sections, Instead
of the first 18 sections, of the act as It did.
There can be no reason, real or apparent, for
excluding the 3 sections from the repealing
clause of the act of 1913 If they were to be
stricken from the tax laws of the state. It
Is manifest that their exclusion was Intended
to leave In full force the 3 sections dealing
with the capital stock tax. By parity of
reasoning, the act of 1011, amending section
21 of the act of 1889, as amended, was not In-
tended to be repealed. The repealing section of
the act of 1913, as will be observed, spedflcal-
ly repeals, not only parts of certain acts, but
other entire acts dealing with the subject.
Why was the act of June 7, 1911, omitted
from the repealing section If intended to be
repealed In whole or In part, while the act of
May 11 of the same year was specifically In-
cluded In the section? Laws are presumed
to be passed with deliberation, and with full
knowledge of all existing ones on the sub-
ject Sedgwick on Cionstruction of Stat &
Oonst Law (2d Ed.) 106; Howard Assocla-
Uon's Appeal, 70 Pa. 344.
Tbe Legislature of 1913 Is presumed to
have had knowledge of the act of 1911, and
of aU its provisions, Imposing a capital stock
tax, with the limitations on the exemptions
contained in it The Legislature is not only
presumed to have known of the act of 1911,
bnt had actual knowledge of It, as there was
pending before It at the same time another
bill, dtlng the act for amendment, which sul)-
sequently became the act of July 22, 1913.
That act Is Identical with the act of 1911,
except that it does not apply to corporations
organized for laundering purposes. In view
of these facts, it is Inconceivable that the
Legislature of 1913 regarded the act of 1911,
or any of Its provisions, or Intended that
It should be considered, as inconsistent with
the act of June 17, 1913. This act did not
repeal the only statute Imposing the capital
stock tax, but, as pointed out above, recognlz*
ed It as In force, and supplied the repealed
sections of the act of 1889, imposing a person-
al property tax. This act and that of 1911
are In pari materia, and cover the provisions
of prior legislation providing for levying and
collecting a personal property tax and a cap-
ital stook tax on corporations, and our con-
struction of the recent acts makes the legis-
lation on the subject a consistent and bar-
mcmlous system.
We have considered with care the elaborate
briefs of counsel as well as the prior legis-
lation Imposing taxes for revenue In tbl»
state, to which our attention has been direct-
ed, and are all of opinion that, in passing the
act of June 17, 1913, It was not the Intention
of the Legislature to amend or repeal the act
of June 7, 1911, nor any of its provisions, and
that the earlier statute Is still In force. It
follows, therefore, that the learned court be-
low erred In sustaining the plaintltT's bill,
and restraining the assessment and collection
of the personal property tax on the plain-
tiff's Insurance assets.
The decree is reversed, and the bill Is dis-
missed, at tbe costs of the plaintiff.
(U5 Mat 647)
SHEBBURNB ▼. BOUGIM.
(Supreme Judicial Court of Maine. Jnne 6,
19ia)
1. iNDsafNiTT ®=»1 5(7)— Action bt Masikb
AoAiNST Sebvant— Evidence.
In an action by an employer against his em-
pIoy£ to recover damages paid to a third person
in a suit for injuries received when struck bj
a box which fell from a wagon the employi wai
driving caused by the alleged negligence of the
employ6, evidence held to support a jury find-
ing that defendant pursuant to the instructions
of plaintiff's foreman was doing the work with-
out the rope used to tie the boxes to the wagon,
so that his negligence was excused.
[Ed. Note.— For other cases, see Indemnity,
Cent. Dig. | 44.]
2. Appeal and Erbob $=>1001(1)— Rxview—
Vebdict.
Where there is evidence to support a verdict,
the Supreme Court is not authorized to disturb
it <Hi motion for new trial.
[Ed. Note. — For other cases, see Appeal and
Error, Cent Dig. U 3928-3933.]
On Motion from Supreme Judicial Court,-
York County, at Law.
Action by Fred S. Sherburne against Joseph
Bougie. Verdict for defendant On motion
in the Supreme Ourt for a new trial. Mo-
tion overruled.
George M. Hanson, of Calais, for plain-
tiff. Allen & Willard, of Sanford, for de-
fen'dant
PER (CURIAM. An action on the case to
recover damages for the alleged negligence
of the defendant while a servant of the plain-
tiff, for which the plaintiff was obliged to
pay, for injuries received by Mr. Couturie
by reason of the negligence. The verdict
was for the defendant, and the case is befora
this court upon a motion for a new triaL
Tbe defendant, in April, 1913, was em-
ployed by the plaintiff as a teamster, and
while driving the plaintiff's team loade^d with
boxes along the highway in Sanford, the boz>
ea not being properly loaded, and not tied to
the cart by ' a rope which was used when
CssPor other cam •«« same tople and KBSr-NDMBBR In all Kay-Numbarwl Digest* and Induw
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356
101 ATLANTIC REPORTER
(M&
boxes were hauled with the team, one of the
boxes fell from the cart and struck Mr.
Couturie, knocked him from his bicycle, and
bruised and Injured him.
December 23, 1913, Couturie sued the plain-
tUf for the 'damages sustained by reason, as
he alleged, of the negligence of the teamster,
the defendant In this case, and recovered
damages which the defendant In that case,
the plaintiff In this case, paid, and thereupon
brought this suit to recover of the defend-
ant the damages which he alleges he was
obliged to pay by reason of the negligence of
this defendant wbUe driving his team as
aforesaid.
The only Issue of fact was whether the
defendant was performing his duties In ac-
cordance with such directions from his prin-
cipal (the plaintiff) as would excuse his neg-
ligence.
[1,2] TSiere was evidence that tended to
prove that the Hefendant was Instructed to
use, when he hauled the boxes on the cart,
a rope, and to tie the boxes to the cart, and
It la admitted that be did not use the rope
the day the accident happened. There was
also evidence that the rope had been misplac-
ed before the accident, and that the defend-
ant so reported to the foreman who had
charge of the defendant, and whose orders
and instractions as to his work it was the
duty of the defendant to obey, and that the
foreman Instructed hlra to Vlo the work with-
out the rope. There was nothing improbable
in the defendant's version, and the jury hav-
ing seen and heard the witnesses upon both
sides of the disputed question of fact, and
there being evidence that, if believed by
them. Justified them in believing the defend-
ant's version, we are not authorized to sub-
stitute our Judgment for theirs.
Motion overruled.
(US He. 648)
HlUi V. KEEZER.
Jnly 18,
(Supreme Judicial Court of Maine.
1918.)
1. New Tbiai, «=»70— StmiciraioT of Evi-
nENCE— Motion in Appellate Court.
It is not enough to sustain a verdict that
there is evidence which if believed would justify
It; but such evidence must be so reasonable and
probable that an unprejudiced man, when con-
siderine all the evidence and circumstances,
would be justified in believing it, and, such not
being the case, new trial will be granted.
[Ed. Note.— For other cases, see New Trial,
Cent Dig. H 142, 143.]
2. New Tbiai. €=»70 — Sufficienot of Evi-
dence—Motion IN Appellate Goitbt.
Evidence in action involving question of pay-
ment or theft of a note by defendant held, under
the rule of reasonableness, when considered with
all the evidence and circumstances, insnfiScient
to snstain verdict for defendant against motion
for new trial.
[Kd. Note.— For other cases, see New Trial,
Cent Dig. H 142, 143.] ^
On motion from Supreme Judicial Court,
Penobscot County, at Law.
Action by George F. Hill against Arthur A.
Keezer. Verdict for defendant, and plaintiff
moves for new trial before the full court
New trial granted.
Morse & Cook, of Bangor, for plaintiff.
G. E. Thompson, of Bangor, for defendant
PER CURIAM. An action for replevin for
one horse, one meat cart, and one Jigger car-
riage, alleged to be of the value of $225. The
verdict was for the defendant, and the case
is before this court on motion.
The plaintiff claimed title to the property
by virtue of a mortgage given by the defend-
ant to him on the 15th day of June, 1914, for
?200. It is the dalm of the plaintiff that on
January 2, 1915, there was a setUement ot
the accounts between himself and the defend-
ant, but not of mortgages and notes; and
the plaintiff claims that March 6, 1915, the
defendant came to his house in Corinth, and
pretended that he wanted to pay him $200, &
portion of whidi was to be applied to a $63
note, and the balance applied to some other
notes which the plaintiff held ; that he went
to his safe and took out all the various notes
and mortgages given by the defendant, with
the exception of one note and mortgage, and
that, while the plaintiff was figuring the in-
terest on the $63 note, the defendant looked
over the other papers, and when the plaintiff
had finished reckoning the Interest the de-
fendant deliberately took all the notes and
mortgages belonging to the plaintiff, includ-
ing the one of the property described in the
replevin writ, put them in his pocket, and
started to leave the house ; that the plaintiff
made an effort to stop the defendant and
called his wife, who was in an adjoining
room, and who immediately called the plain-
tiff's son on the telephone. The plaintiff and
his wife were aged people, and not able to
stop the defendant from leaving the house.
After leaving the house the defendant drove
away. Thereupon the plaintiff commenced
foreclosure proceedings and replevied the per^
sonal property described in the writ Tlie
record shows that the plaintiff and his wife
both testified in substance as above.
The defendant claimed, through his coan-
sel, that at some time between the 17th and
21st of December, 1914, he and his wife paid
the plaintiff between $212 and $213 and took
up the mortgage; that after they r^umed
home the wife cut the signature from the
note and the mortgage. The instruments
were produced at the trial in that mutilated
condition. The claim of the defendant is
supported solely by the testimony of his wife.
He did not take the stand to testify.
The evidence of the plaintiff and his wife
is that in February, after the defendant's
wife testified the note was paid and the note
and mortgage delivered to her and her hus-
band, they called at the house of the plala-
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WHITB MT. FREEZER CO. y. MXJRPHT
S67
tiff and wanted an extension of three weeks
to pay the same mortgage note tbat she tes-
tified at the trial they had paid between the
17th and 21st of the preceding December.
Her testimony Is further weakened by her
hosband's financial condition during the
month of December, when she testified this
amount of money was paid. The evidence
shows that he carried an account in the bank,
and during thae month made only a few
small deposits; that he was being pressed
by his creditors, and letters written by his
wife, who did the corresponding, show that
they were putting ott the payment of small
claims for goods used in their store, claim-
ing they could not pay them when requested,
but would do so shortly. It does not seem
probable that during the time the defendant
was so embarrassed in his business that he
could not take care of small bills for goods
furnished his store, and carried such a small
bank account, they would be carrying around
in money between ^12 and $213 and pay the
mortgage note of the plaintiff and not have
the mortgage discharged.
The defendant was charged by the positive
testimony of two witnesses with the crime of
larceny from a feeble old man, whose con-
duct at the time In telephoning for help, and
In taking out a warrant against the defend-
ant for the larceny charged, strongly corrobo-
rated the plalntifTs version. The defendant,
although 80 openly charged with the crime in
open court, where the Jury was endeavoring
to ascertain the troth, did not deny the testi-
mony charging him with the crime, or even
testify to a payment which his wife's unsup-
ported testimony sought to prove, although
contradicted by two witnesses and the cir-
cumstances of the case.
It Is incredible that an honest man, de-
f^idlng an unjust claim charging him with
such a crime, would allow such testimony as
was given against the defendant in this case
to go uncontradicted or unexplained. No in-
ference can be drawn from such conduct ex-
cept that which sustains the plaintiff's ver-
aioii. The only Inference under the circum-
stances is that the defendant knew that the
testimony was true, and did not care to deny
it, and thereby committing the crime of per-
jury.
[1,2] It is not enough to sustain a verdict
that there Is evidence which, if believed by
the Jury, would Justify them In returning it.
That evidence must be so reasonable and so
probable that an unprejudiced man, when
considering all the evidence and all the cir-
cumstances in the case, would be Justified In
believing It. The record In this case does not
show such a state of facts, and it is evident
that the Jury, through bias, prejudice, or
misapprehension of the weight oi evidence
and the rules of law, returned a verdict not
authorized, and the entry must be:
Motion sustained.
New trial granted.
08 N. H. 898)
WHITB MT. FREEZER CO. T. MURPHY
et aL
NASHUA CO-OP. CO. v. SAME.
FLATHHR FOUNDRY CO. v. SAME.
(Supreme Coart of New Hampshire. Hills-
borough. May 1, 1917.)
1. WrrRESSES <S=>83— Compbtenct — Pabties
TO Suit.
In an action for injunction against the of-
ficers and members of a labor union to enjoin
a strike called pursuant to a conspiracy to
injure and ruin plaintiffs' business, the business
ogent of the union, although a party, was a
competent witness, and could be required to tes-
tify aa to statements made by him as to tbe
object of the strike both during a conference
between the parties before the labor commission-
er and at other times.
[BM. Note.— For other cases, see Witnesses,
Cent Dig. {{ 217-220, 227-238.]
2. CONSTITDTIONAL LiiW «=>70(1)— PKIVn.Ea-
ED Communications — Communications to
LaBOS COMKISSIONXB — LiEGISLATIVX QUES-
TION.
Whether or not public policy requires that
all communicfttiona to the labor commissioDer
should be privileged Is a matter for the Legisla-
ture, and not a judicial question.
[EJd. Note. — For other cases, see Constitutionnl
Law, Cent Dig. §§ 129, 132, 137.]
3. Appeal and Kbrob iS=>1082(2)— Review-
Questions Not Prksknted in Tbiax Court.
Questions not presented when the case was
argued in the superior court will not be consid-
ered by the SupremcCourt on transfer of the case.
(Ed. Note. — For other cases, see Appeal and
Error, Cent. Dig. §§ 1133-1136, 4281-^2&4.]
4. Witnesses ©=»71—Pmvii.eqb— Judge.
If a witness was a judge called to testify as
to proceedings before him, that fact would not
render his testimony incompetent.
[Ed. Note. — For other cases, see Witnesses,
Cent Dig. { 185.]
6. Witnesses «=>216 — Pbivileok — Liabob
Co MMissioNEB— Statute.
Under Laws 1803, c. 48, Laws 1911, c. 198,
and Laws 1913, c. 186, creiting and defining the
duties of tbe office of labor commissioner, to
collect, assort, arrange details relating to all
departments of labor in the state, and to at-
tempt to bring about an amicable adjustment
between employers and employes or to induce
them to submit to the state board of conciliation
and arbitration, and on failure to secure such
reference to investigate the causes of the con-
troversy and puSlish a report assigning respon-
sibility therefor, and requiring him to hear all
parties and advise them in certain circumstanc-
es, the labor commissioner is not given a judicial
power which will excuse him from testifying as
to proceedings had before him.
[Ed. Note. — For other cases, see Witnesses,
Cent Dig. | 779.]
6. Witnesses ^=>71— PBivnjEOX&
The duty rests upon every citizen to die- '
close, when called upon, facts within his knowl-
edge essential to the administration of justice,
and judges are not exempt from the perform-
ance of this duty, and as a class are necessarily
impressed with its importance.
[Ed. Note.— For other cases, see Witnesses,
Cent Dig. S 185.]
7. Witnesses «=»71— PaiviLEOES-^UDGEa of
COUBTS OF RECOBD.
Any privilege exempting judges from testify-
ing as to proceedings had before them has been
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confined to iadges of courts of record where
Bomo other person can testify to such proceed-
iugs.
[Ed. Note.— For other cases, see Witnesses,
Cent Dig. f 185.1
8. Appeal aitd Ebbob ^3843(1) — Rbvibw —
Moot Qubstionb.
It is not the practice of the Supreme Court
to consider mooted questions involving difficult
?[nestion8 of law which may not arise when the
acta are found, and where the allegations of a
bill seem to be regarded as sufficient, while the
requests to rule amount to an inquiry whether
f)laintiff may not recover apon proof of much
ess than they have alleged, the views of the
Supreme Court are properly expressed only up-
on the express questions raised by exception.
[Ed. Note. — For other cases, see Appeal and
Error, Cent Dig. |S 3331-3335, 3337-3341.J
9. Conspiracy €=3l8 — Labob Union Of-
FICKB8 — Unlawful Combination — Fbiua
Facie Case.
A bill against the officials of a labor union
alleging a combination for the purpose of com-
pelling the plaintiffs to employ only union men
■nd the calling of a strike pursuant to such
combination made oat a prima facie caae, and
in the absence of evidence of justification refusal
to rule that such action would constitute a con-
spiracy as a matter of law in the absence of
Justification was error.
[BM. Note.— For other cases, see Conspiracy,
Otnt Dig. |{ 18-24.]
10. Torts «=»10— Stbikes — Tntkbfebence
with Business— Justification.
Where interference with plaintiffs' business
by a strike to enforce a closed shop is proved,
justification therefor may be found either in the
circumstances, irrespective of motive, or In the
motive alone, or in the circumstances and mo-
tive combined.
[Ed. Note.— For other caaea, see Torts, Gent
Dig. { 10.]
11. Torts <S=»2S— Labob Strikes— Intebfeb-
ence with Business — Justification —
Question of Fact.
The question of justification for a strike to
enforce a closed shop is one of fact and to be
determined as a matter of law only if on the
evidence reasonable men could come to but one
conclusion.
[Kd. Note.— For other cases, see Torta, Cent
Dig. §S 35-37.]
12. Tobts €=»27— Labor Strikes— Intebfteb-
ence with Pebsonal Kioiits— Burden of
Proof.
In a suit to restrain a strike for the purpose
of enforcing a closed shop, tlie fact that the
burden remains on the plaintiffs to establish a
legal interference with their right, unreasonable
upon all the evidence, does not destroy their
Srima facte case made by the allegation of such
iterference.
[Ed. Note.— For other cases, see Torts, Cent
Dig. i 34.]
13. Torts €=10 — Labor Strikes — Illeoai.
Interference with Personal Riohts—
Picketing.
If a strike is an unreasonable interference
with business, picketing during such strike is not
unlawful unless unren.sonnble in fact or forbid-
den by legislative mandate.
[For other cases, see Tuits, Cent Dig. | 10.]
Transferred from Superior Court, Hills-
borough County; Pike, Judge.
Suits for injunction by the White Mountain
Freezer Company, by the Nashua Co-opera-
tive Company, by the Flather Foundry Com-
pany, and by the William Hlghton & Sons
Company against Eugene L. Murphy and
others. Transferred from the superior court
in advance of triaL Cases dlscluirged.
Bills In equity for Injunctions. Tbe bills
allege that the plaintiffs are mannfacturers
of machinery at Nashua, employing a large
number of persons, many of whom are mould-
ers; that the defendants are officers and
members of a voluntary antncorporated as-
sociation known as International Moulder^
Union of North America, Local, No. 257;
that on or alwut October 11, 1016, the de-
fendants demanded that the plaintiffs compel
all their moulders not members of said local.
No. 257, to Join the same, and that thereafter
only members of such imlon should be em-
ployed by the plaintiffs, who should there-
after conduct a "closed shop" where only
members of the union would be employed:
that the plaintiffs refused to accede to these
demands, and informed tbe defendants that
they would at all times thereafter conduct
an "open shop" making no discrimination in
the employment of persons because of tbdr
membership in the union or otherwise; that
thereupon the defendants, conspiring togeth-
er to injure and ruin the plaintiffs' business^
and in pursuance thereof. Induced and or-
dered the plaintiffs' employ^ to enter upon a
strilie against them for the purpose of com-
pelling them to accede to their demands;
that said strike Is now In progress and is
being maintained for such purpose; that
since said October 11. 1916, the defendants
by themselves and others have threatened.
Intimidated, and annoyed the persons re-
maining in their employ for the purpose of
inducing and compelling them to Join said
union, have picketed and caused others to
picket said plaintiffs' factory for the puri>ose
of annoying and intimidating their employ^
The cases were sent to a master for the
finding of facts. In the course of the hear-
ing certain evidentiary questions arose whicti
the presiding Justice was requested to pass
upon. The issue on trial was the object of
the strike. Eugene L. Murphy, called as a
witness by the plaintiffs, testified that he
was the business agent of the International
Moulders' Union of North America, and aa
such represented the members of tbe local
union la relation to the strike ; that he rep-
resented the men after the strike; that he
called the attention of the labor commis-
sioner to the fact that a labor controversy
existed at Nashua, and in consequence there-
of the labor commissioner called him and the
plaintiffs together for a general conference.
The court ruled subject to exception that the
witness should answer inquiries as to ad-
missions made by him to the labor commis-
sioner and to the plaintiffs as to the object
of the strike. Mr. Davie, the labor com-
misslcnor, also called as a witness by the
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WHITE MT. FREEZER 00. t. MURPHT
859
plaintiffs, testified that he had bad some cor-
respondence with Mnrpby in reference to the
controversy, and that shortly before October
27, 1916, he received a communication from
htm, but declined to produce or to answer
the question whether at an Interview before
him between Murphy and the plaintiffs thr
plaintiffs requested of Murphy a statement
In writing as to the demands of the union.
The defendants objected to these ques-
tions, and the witness declined to answer
upon the ground that the conference between
him as labor commissioner and the parties
was of a confldentlal nature. The court
ruled In reliance upon Hale v. Wyntt, 78 N.
H. 214, 98 Atl. 379, that, as a quasi judicial
ofHcer, the commissioner could not be re-
quired to answer and the plaintiffs excepted.
The plaintiffs claimed and asked the court
to rule that, If it should be established that
the defendants combined to bring about a
strike In the plaintiffs' shops for the purpose
of compelling the plaintiffs to employ only
union men In their shops, and the strike was
Inaugurated for that purpose, the facts stat-
ed would constitute a conspiracy as matter
of law. The court ruled otherwise, and the
plaintiffs excepted. The case adds:
"AjBsuming the facts upon which this ruHnj:
Is mode to have been established, the court could
not find therefrom that the defendants' conduct
was unreasonable."
The court was asked to rule before trial
that all organized picketing, that Is, picket-
ing, by order of the International Moulders'
Union, by twos who parade the streets, ob-
serve who are entering and leaving the plain-
tiffs' shops. In order that they may argue
and persuade them to join the strike, Is un-
lawful. The court declined so to rule, and
the plaintiffs excepted. The case was trans-
ferred upon the foregoing rulings by Pike,
C. J., In advance of a trial upon the ground
that the advance decision of these questions
might shorten or avoid a trial of the facts.
John K. Spring and Ivory C. Baton, both
of Nashua, and Herbert A. Baker and Joseph
J. Feely, both of Boston, Mass. (Joseph J.
Feely, of Boston, Mass., orally), for plaintiffs,
William H. Barry, of Nashua, and Frederick
W. Mansfield, of Boston, Mass. (Frederick
W. Mansfield, of Boston, Mass., orally), for
defendants.
PARSONS, C. J. [1] The defendant Mur-
phy, called as a witness by the plaintiffs,
testified that he represented the other de-
fendants after the strike, and was Inquired
of as to statements made by him as to the
object of the strike both during a conference
between the parties before the labor commis-
sioner and at other times. To the ruling
requiring the witness to answer the defend-
ants excepted. Murphy, though a party, was
a competoit witness and could be required
to testify. Whitcher v. Davis, 70 N. H. 237,
46 Atl. 458. He could not, of course, be re-
quired to give testimony tending to incrimi-
nate himself, to detail an offer of compro-
mise or disclose privileged oommunlcatlons.
But it does not appear that the questions
asked him had such tendency. There Is no
evidence of an offer of compromise by either
party. If there had been, an admission of
an Independent fact like that inquired about,
the object of the strike, would be oompetent.
Colbum v. Groton, 66 N. H. 151, 158, 28
Atl. 95, 22 L. R. A. 763. The defendants
contend that as matter of public policy all
communications to the labor commisslonw
should be privileged.
[2] This is matter for the Legislature.
The statutes on the subject in force at tlie
time contain no such provision, but, on the
other hand, indicate a legislative belief that
the public good demands publicity rather
than secrecy as to the controversies which
the office was designed to adjust. Laws
1911, c 198, H &-8; Laws 1913, c. 186, H
3, 4.
[3] Since the argument of this case the
Legislature has amended section 4 of chap-
ter 198, Laws 1911, renumbered by section
1, c. 186, Laws 1913, by adding at the close:
"Neither the proceedings nor any part thereof
before the labor commissioner b^ virtue of this
section shall be received in evidence for any
purpose in any judicial proceeding before any
other court or tribunal wnatever."
This amendment was adopted April 10,
1917. Section 4, referred to, prescribes the
duty of the commissioner "whenever any con-
troversy or difference arises relating to the
conditions of employment or rates of wagca
between an employer • • • and his
• • • employes." Section 7 of the same
act relates to bis action when he had knowl-
edge a strike is threatened or has occurred.
Whether the matters Inquired about arose
in proceedings under section 7 or section 4,
whether the amendment applies to proceed-
ings under 7 as well as under 4, and wheth-
er the amendment will be applicable In fur-
ther proceedings In this suit, pending when
the legislation was adopted (Rich v. Flan-
ders, 39 N. H. 304; Kent v. Gray, 53 N. H.
676), are questions which were not present-
ed when the case was argued, and which
therefore are not now considered.
[4] The labor commissioner did not put
bis objection to testifying upon ground that
be was judge of a court, but upon the ground
that the communications made to him were
privileged. If the witness was a judge
called to testify as to proceedings before
him, that fact did not render his testimony
Incompetent (Hale v. Wyatt, 78 N. H. 214,
98 Atl. 379), and, as the court had already
ruled the matter inquired about was not
privileged, the defendants' objection to the
questions should have been overruled. The
court suggested that, if the commissioner
objected, he could not be compelled to testi-
fy because he was a quasi judicial officer.
This suggestion was made In reliance upon
the decision in Hale v. Wyatt, supra. The
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101 ATLANTIC EEPORTBR
(N.H.
ofBce of labor commissioner was created In
1893. The duties of the office as then de-
fined were "to collect, assort, arrange, and
present in annual reports • • • statisti-
cal details relating to all departments of
labor in the state." Laws 1803, c. 48, { 5.
By the legislation of 1911 additional duties of
Investigation, prosecution, advice, and per-
suasion and report are imposed upon the
commissioner.
[6] He is not to hear and decide contro-
versies between employers and employ^,
but to endeavor to bring abont an amicable
adjustment, and, failing that, to induce the
parties to submit the dispute to arbitrators
or to the state board of conciliation and ar<
bltration, substituted two years later for the
board of arbitrators. In case of failure to
secure such reference in case of a strike,
he is to investigate the causes of the contro-
versy, ascertain which party is mainly re-
sponsible, and make and publish a report
assigning sudi responsibility. But there is
no suggestion such investigation is to be a
judicial one. No machinery is provided for
a judicial proceeding. The only trace of
judicial action is found in the provisions of
section 3 requiring him to hear all parties
and advise them in certain circumstances
what, if anything, ought to be conceded by
either or both. Laws 1911, a 198, i 8;
Laws 1913, c. 188, | 1. While it may well
be that the duty of conciliation imposed up-
on the commissioner can be better performed,
as the Legislature now seem to think, If
some or all communications to or before him
are held privileged, the commissioner can-
not claim the privilege of exemption as a
witness in view of the numerous other duties
imposed on him, unless at the time about
which inquiry is sought of him he was en-
gaged in a purely judicial duty. It does
not appear that the information sought of
him in the present case was obtained by him
while acting in such a capacity. And it is
clear that judicial power which would ex-
cuse him from appearing as a witness has
not l>een given to him.
In Hale v. Wyatt, 78 N. H. 214, 98 AtL 370,
the judge of probate was called and testified
ui<on appeal as to statements made in a hear-
ing before him. The question was as to the
competency of the evidence which was de-
cided in the affirmative. What circumstanc-
es would justify a judge in refusing to testi-
fy to matters which occurred at a trial be-
fore him there was no occasion to discuss.
TIic point was not presented.
"A judge of a superior court seems to have
been regni-ded as exempt from attendance at
eommon law." 4 Wig. Ev. { 2373 (3).
While it is stated generally in the text-
books and in some cases that a judge of a
court of record cannot be required to testify
as to matters occurring before him In court
(1 Gr. E. i 249; Welcome v. Batchelder, 23
Me. 85), the right does not appear to liave
-often deprived the triera of fbe benefit of
such knowledge.
[I] The duty rests upon every citizen to
disclose when called upon facts within his
knowledge essential to the administration
of JusUce. B. & M. R. B. V. State, 75 N.
H. 513, 518, 77 Atl. 996, 31 L. B. A. (N.
S.) 639, Ann. Cas. 1912A, 382. Judges are
not exempt from the performance of this
duty, and as a class are necessarily impress-
ed with its importance. If such privilege
exists, it has been honored by breach rather
than observance. In Reglna v. Gazard, 8
Car. & P. 513, in 1838, the grand jury were
advised by Mr. Justice Patterson not to ex-
amine against his objection the chairman of
the Court of Quarter Sessions as to testi-
mony in a case before him; the justice re-
marking that the proposed witness was "pres-
ident of a court of record, and it would bo
dangerous to allow such an examination as
the judges might be called upon to state
what occurred before them in court" Un-
less R. V. Harvey, 8 Cox. Cr. 90, 108, and
Anon., 24 Solicitors' Journal, 398, cited by
Wlgmore are exceptions, the case in 8 Car.
& P. is the only one found in which the
judge's testimony was not produced. In' 1872
in the House of Lords, the question being ns
to the admissibility of the testimony of an
arbitrator in explanation of an award, Mr.
Baron Cleasby said:
"BMrst with regard to the competency of the
umpire as a witness. I am uot aware of any
real objection to it. With respect to those who
fill the office of judge it has been felt that there
are grave objections to their conduct being made
the subject of cross-examination and comment
(to which hardly any limit could be put) in rela-
tion to proceedings before them ; and as every-
thing which they can properly prove can be
proved by others, the courts of law discounte-
nance, and I think I may say prevent, their be-
ing examined." Buccleuch v. Metropolitan Bd.,
L. R. 5 H. L. 418, 433.
[7] The privilege appears to be confined to
judges of courts of record. This must neces-
sarily be so ; for if there is no recording of-
ficer but the judge or quasi judicial officer
himself, proceedings before him can be prov-
ed only by calling him as a witness. In R.
V. Harvey, 8 Cox. Cr. 103, although Byles, J.,
said he should refuse to appear If subpoenaed
to produce his minutes of testimony, he add-
ed "that the rule did not apply to inferior
magistrates." 4 Wig. Ev. c. 2372. If the la-
bor commissioner had claimed to be excused
on the ground of privilege, such daim should
have been overruled.
[•] Certain other questions were then
mooted bearing upon the maintenance of the
proceeding upon which the court ruled sub-
ject to exception. These exceptions are also
transferred with the suggestion that their de-
termination in advance of a trial may short-
en or avoid the hearing upon the facts. This
procedure is one often employed when justice
and convenience require, but it is not the
practice to consider difficult questions of
law which may not arise when the facta
are found. Glover t. Baker, 76 N. H. 261,
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WHITB MT. FREEZEB CO. y. MTJRPHT
361
263, 81 AtL 1081. Questions considered In
this way are ordinarily important ones nec-
essarily involved In tbe action. Hampton
Beach Co. v. Hampton, 77 N. H. 373, 92 Atl.
S49, L. R. A. 191SC, 698. It is not the duty
of the court nnder the gnise of this proce-
dare to advise the parties in advance as to
their rights under all possible focts which
might be proved. As suggested, the allega-
tions of the bill seem to be regarded as snf-
flclent while the requests to rule amount to
an inquiry whether the plaintiffs may not
recover upon proof of much less than the^
have alleged. In this situation the views
of the court are properly expressed only
upon the precise questions raised by excep-
tion.
Two questions were raised:
1. The court was asked to rule that, if tlie
defendants combined to bring about a strike
in the plaintiffs' shops, and the strike was
accordingly Inaugurated for the object of
thereby compelling the plaintiffs to employ
only union men, such action would constitute
a conspiracy as matter of law. The court
declined to so rule, and tbe plaintiffs except-
ed. The court then stated that he could not
find from these facts that the defendants'
conduct was unreasonable. It does not ap-
pear whether this statement was intended as
a finding of fact or as a ruling of law. No
exception is reported, and no question Is
transferred upon this statement. The plaln-
tUTs' present contention is that a combina-
tion for the purpose of compelling them to
employ only union men in their shops is un-
lawful and constitutes a conspiracy as mat-
ter of law. This appears to be the first con-
troversy of this character in this jurisdic-
tion, but the defendants claim that Huskle
V. Griffin, 75 N. H. 345, 74 Atl. 595, 27 I* B.
A. (N. S.) 966, 139 Am. St Rep. 718, is de-
cisive of the question now under considera-
tion. There was no question of combination
in Huskle v. Griffin. The acts of a single in-
dividual were under consideration. But an
act imlawful for one to do is not made law-
ful because done by a combination.
If the defendants have undertaken by com-
bination or otherwise to compel the plain-
tiffs to employ only certain individuals or a
certain dass in their shops, they have Inter-
fered with a right of the plaintiffs said In
Huskle V. Griffin to be "inherent in the Idea
of Anglo-Saxon liberty" the right to freely
deal or refuse to deal with others; "prima
facie a man can demand an open market."
Huskle V. Griffin, supra, 75 N. H. 847, 350,
74 Atl. 697, 27 L. R. A. (N. 8.) 966, 139 Am.
St. Bep. 718. The defendants concede the
Interference; they say in their brief:
"A strike to enforce a 'dosed shop' may be
nnlawful, and it may be lawful * • • A
strike to enforce a closed shop is unlawful un-
less there is justification."
Tbis is tbe view of Huskle v. Griffin, su-
pra, quoting from Parkinson Co. r. Trades
CcuncU, 154 Cal. 581, 98 Pac. 1027, 21 U B.
A. (N. S.) 650:
"Any injury to a lawful business, whether tbe
result of a conspiracy or not, is prima facie ac-
tionable, but may be defended upon the ground
that it was merdy the result of a lawful effort
of the defendants to promote their own welfare."
In 75 N. H. at page 34S, 74 AO. at page 006
(27 L. R. A. IN. S.] 966, 139 Am. St. Bep.
718), and in 75 N. H. at pages 351, 352, 74
Atl. at page 598 (27 H B. A, [N. S.] 966, 139
Am. St Bep. 718) :
"The authorities are practically unanimous to
the effect that the defendant is liable unless he
shows a justification."
[B] The facts show an interference with
the plaintiffs' right, and there Is no evidence
of justification. The plaintiffs have made out
a prima fade case, and their bill is not to be
dismissed on motion in the nature of a mo-
tion for nonsuit at law, which appears to
have been understood to be the effect of tbe
ruling, unless illegal action in tbe conduct of
the strike appeared. The exception is sus-
tained.
L10] The result on this point is not affect-
ed if, as is claimed, the correct statement
of the plaintiffs' right is to be free from un-
reasonable interference in the management
of their business. Tbe interference being
proved, the "justification may be found some-
times in the circumstances under which it
is done irrespective of motive, sometimes in
the motive alone, and sometimes in the cir-
cumstances and motive combined." Plant v.
Woods, 176 Mass. 492, 499, 57 N. B. 1011,
1014 (51 L. B. A, 339, 79 Am. St Bep. 330).
The test laid down in Huskle v. Griffin is
reasonable conduct, dependent upon all the
circumstances of the case, tbe advantage
and profit to one, and the unavoidable injury
to the other. Horan r. Byrnes, 72 N. H. 93,
100, 54 Atl. 945, 62 U B. A. 602, 101 Am. St
Bep. 670.
[11] EMdence of motive and object lies in
the breasts of the defendants. If they re-
fuse to disclose, they must submit to the
adverse inference necessarily drawn from
their silence. The question is one of fact
to be determined as matter of law only if on
the evidence reasonable' men could come to
but one conclusion.
[12] The defendants are called uikhi to
justify their action. If on the whole case
the burden remains with the plaintiffs to
establish an illegal interference with their
right one unreasonable upon all the evi-
dence, that does not destroy thdr prima
facie casa Interference with the right
of another without Justification is unrea-
sonable. Whether tbe motive of the strik-
ers was an honest eftort to l)enefit them-
selves or a malicious Intent to Injure the
plaintiffs because they refused to aid in com-
pelling other workmen to Join the defend-
ants' union is a question of fact upon which
the case contains no evidence. The defend-
ants contend that justification is to be found
in the principle of competition, citing Pickett
V. Walsh. 192 Mass. 572, 78 N. H. 753, 6 I* B.
A. (N. S.) 1067, U6 Am. St Sefi. 272, 7 Ann.
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362
101 ATLANTIC REPORTBB
(N.H.
Gas. 638. Bat there Is no erldmoe of ccMoi-
petition to sustain the dalm. In the absence
of evidence of Justification, further discus-
sion of possible grounds which might be prov-
ed will not be undertaken.
2. The second question raised relates to
the conduct of the strike.
[1 3] The plaintiffs' counsel asked the court
to rule that all organized picketing Is uulaw-
fnl. The conrt declined to so rule, but did
rule that reasonable picketing was lawful;
unreasonable, unlawful, and the plaintiffs ex-
cepted.
The term "picketing" la new in the law of
the state. The only definition in the case
Is "picketing by twos, who parade the streets,
observe who are entering and leaving the
plaintiffs' shops in order that they may argue
and persuade them to Join the strike." The
allegations of the bill lead to the inference
that picketing may mean something more
than peaceful parading, whatever that may
mean. The dictionary defines "picketing" as
"posting watchers at the approaches to a
place of employment affected by a strike in
order to ascertain those who work there and
persuade them, or otherwise influence them,
to give up the work." Webst Diet, "pick-
et"; K. & J. Law Diet "picketing." The
cases cited in the notes, 4 L. R. A. (N. S.)
302, and 50 L. B. A. (N. S.) 412. indicate
that the term may Include a wide range of
action. The material question is whether the
acts done In prosecution of the strike are
lawful or unlawful, whether properly de-
scribed as picketing or by some other term,
Although the term la not found in the law
of the state, P. S. c. 266, S 12, as amended by
chapter 211, Laws 1913, and P. S. c. 264, §{
1, 2, may be aimed at some acts Included
within the term or naturally resulting from
the proceeding bo called. The substance of
the court's ruling was the application of the
test of reasonable conduct under all the cir-
cumstances. Whether when the facts are
found the acts of which the plaintiffs com-
plain can be found to be reasonable in fact
cannot be determined until the facts are
found. If one may Interfere with another's
iawful business when it is a reasonable thing
to do, it follows that he may do so in a man-
ner not unreasonable in fact or because for-
bidden by legislative mandate.
Case discharged. All concurred.
(78 N. H. 4S)
KBLSEA ▼. PH(BNIX INS. CO. «t al.
(Supreme Court of New Hampshire. Coos.
June 30, 1917.)
1. IKSUSARCI! «=»235— FiBE Insubancb— No-
Tier OF Cancellation— Waivkh.
In an action on a fire insurance policy, evi-
dence held sufficient to warrant a jury finding
tliat insured waived written notice of cancella-
tion and the right to a tender of the return
premium.
[Ed. Note.— For other cases, see Insurance,
Cent. Dig. { 507.]
2. INSDBANCK «ES>229(1)— CoNDinOHS IH POL-
ICT— Waives.
The provision in a fire policy requiring the
insurer to give written notice and tender re-
turn premium before cancellation was for bene-
fit of insured and could be waived by him.
3. INSURAHCE <S=22D(1)— COHWTIOHS IN POL-
lOT— Waives.
That the condition in a fire policy requiring
notice and tender of return premium by insurer
before cancellation was in conformity to the
statute afforded no objection to its waiver by
insured, as statutory provisions for the benefit
of individuals may be waived.
4. Appeal ano Ebbob (S=»1060(1)— AsexJUENT
07 COTTNBEL— PBBJUDICIAI. EBBOB.
In an action on a fire policy, defendants'
counsel's remarks in argument about plaintiff's
witness: "Who is this Hollis Stevens? What
kind of a chap is he to do business? He went
in and trimmed Hammond until he picked him
dry" — were prejudicial and transcended the lim-
its of legitimate advocacy; there being no evi-
dence to justify the statements.
[£kl. Note. — For other cases, see Appeal and
Error, Cent. Dig. ( 4135.]
Exceptions from Superior Court, Ooos
County; Sawyer, Judge.
Assumpsit by Ira A. Kelsea against the
Phcenix Insurance Company and another.
Trial by Jury, and verdict for defendants,
and plaintiff brings exceptions. Exceptions
sustained.
Assumpsit to recover on on insurance pol-
icy placed by defendants on plaintiff's saw-
mill and machinery. The policy was issued
April 24, 1914, by Geo. W, Stevens & Son
Company, agents at Lancaster, through John
H. Finley, their local agent at Oolebrook, and
was for one year. The property insured was
destroyed by fire January 29, 1015. Proof of
loss was duly made and filed with the defend-
ants February 19, 1915. No adjustment or
payment of the loss has ever been made by the
defendants. The defendants rested their de-
fense upon the ground that the policy wbldi
had been marked "Canceled July 18, 1914,"
was legally canceled upon that day. The pol-
icy contained a provision that It might be
canceled at any time at the request of the in-
sured. It also contained the usual stipula-
tion that the defendants could cancel the i»ol-
icy, after giving written notice to the insured,
and tendering to him the return premium;
cancellation to take effect 10 days after sncb
notice.
The defendants claim that notice of can-
cellation and payment of return premium be-
fore cancellation could become effective had
been waived by the plaintiff. The plaintifT
denies that the policy had ever been canceled,
and testified that he left his insurance pol-
icies with Finley, and that they never were In
his possession; that he never had any knowl-
edge of the cancellation of the policies, an<i
believed them to be In force at the time tbe
mill was burned. At the close of the evidence
the plaintiff moved for a Judgment for tbe
amount of the insurance on the mill buildins,
and also for a verdict as to the cancellation.
»Far other tuei Me lame toplo and KBT-MUUBER In all Kejr-Numberad DigesU and IndeXM
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N.H.)
KELSEA T. PHCBNIX INS. CO.
363
on the ground tbat a stun equal to the rebate
had never been paid or legally tendered to
the insnred. These motions were denied, sub-
ject to the plalntilTB exceptions. The plain-
tiff also excepted to the Instructions of the
court, and to remarks of defendants' counsel
in his argument to the Jury.
Jason H. Dudley, of Colebrook, and Gobs
& James, of Berlin, for plaintiff. Drew,
ShurtleflF, Morris & Oatces, of Lancaster, Blch
& Marble, of Berlin, and Leacn & Leach, of
FranUin, for defendants.
PLI7MMER, J. The exceptions of the
plaintiff to the denial of his motions for a
verdict and Judgment cannot be sustained.
The defendants' evidence tended to prove
that Flnley, who represented the defendants,
notified the plaintiff that the insurance oom-
panles would not continue to carry the in-
surance on his mill because it was not run-
ning and requested a return of his policies;
that Flnley afterwards saw the plaintiff in
Oolebrook, and asked him If he had brought
the policies, the plaintiff replied that he had
not, and Inquired of Flnley In reference to
writing to some one, and Flnley said that he
had, but that they (referring to the insurance
companies) would not carry the insurance un-
less- the mill was ruanlng; that on Jnly 17,
1914, the day before the defendants' policy
was marked canceled, the plaintiff came into
Finley's office at Colebrook, and gave him the
policy in question, together with other pol-
icies on his mill, and said, "Here Is these
policies;" that Flnley told the plaintiff there
would be a rebate on the policies, but that he
did not know at that time how much; that
tliere would be a credit come back in the next
month's account, and whenever a credit came
back to come In and they would fix up; that
plaintiff did not make any objection to the
arrangement until after the fire; that the
plaintiff never came to Flnley to fix up, and
Flidey did not adjust the matter with him be-
fore the fire; that the plaintiff stated in the
presence of three wlteesses at Colebrook in
the summer of 1914 that he had bad the In-
carance policies on his mill canceled.
[1] This and other evidence of the defend-
ants would warrant the Jury in finding that
the plaintiff brought his Insurance policies on
Ills mill and machinery to Flnley for the pur-
pose of cancellation, and that there was an
understanding between them that the policies
should be canceled, and that the plaintiff
agreed and understood that the rebate on his
premium was not to be paid to him before the
cancellation became effective, but that he was
to adjust the matter with Flnley after he re-
ceived a statement of the amount of the re-
bate. In other words, the testimony was
enfllclent to Justify the Jury In finding that
ibe plaintiff waived the written notice he was
entltied to in case the defendants desired to
cancel his poUcy, and that he also waived the
right to the tender of the return premliun.
The plaintiff requested the court to instruct
the Jury that "In order for the Phoenix In-
surance Company to cancel its policy of in-
surance with Ira Kelsea, the company or its
agents must first give a written notice to the
Insured notifying him that they desire to can-
cel said policy," and that "to cancel such
policy the company or its agents must pay or
tender to the Insured a sum equal to the re-
bate or unearned premium." The court read
these requests to the Jury and stated that
they correctly expressed the law, if each par-
ty had Insisted upon the compliance with the
strict letter of the law; but he told the Jury
that the parties to the policy had power to
waive these provisions in relation to cancel-
lation, and instructed them in substance that
If the policy was canceled after the plaintiff
onderstandlngly surrendered his policy for
the purpose of cancellation, and agreed with
Wnley that he should receive the return pre-
mium, and adjust that matter with the plain-
tiff later, then that would be a legal cancel-
lation.
[2) The plaintiff excepted to the Instruc-
tions of the court relating to waiver. There
was no error In the instructions. The plain-
tiff contends that, as a matter of law, he
could not waive the provisions In the policy
In reference to notice of cancellation and pay-
ment of the return premium. This conten-
tion cannot be malntolned.
[3] The stipulations in the policy relating
to notice of cancellation and payment of re-
turn premiums were for the benefit of the
plaintiff, and no reason is perceived why he
could not waive them, the same, as It has
been held, that insurance companies could
waive provisions In policies that were for
their benefit Perry v. Insurance Co., 67 N.
H. 201, 296, 33 AH. 731, 68 Am. St. Hep. 668;
Gleason v. Insurance Co., 73 N. H. 683, 64 Atl.
187; Levi V. Insurance Co., 76 N. H. 551, 78
Ati. 617; Flynn v. Insurance Co., 77 N. H.
431, 92 Atl. 737. The fact that the condition
in the policy relative to cancellation is In
conformity to the statute of the state affords
no objection to its waiver by the plaintiff.
"Statutory provisions for the benefit of in-
dividuals may be waived by those for whose
benefit they are intended." Battle ▼. Knapp,
60 N. H. 361. The principle of waiver has a
much broader application than the require-
ments of this case demand. "The benefit of
statotory and constitutional provisions, both
In dvll and criminal Jurisprudence, may be
waived by a party interested." State v. Al-
bee, 61 N. H. 423, 428, 60 Am. Rep. 326. In
that case It was decided that the right of a
respondent under the BUI of Rights to be
tried in the county where the crime was com-
mitted may be waived. Numberless cases in
this and other Jurisdictions might be cited
where the doctrine of waiver has been ap-
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364
101 ATLAjgriC REPORTER
(N. H.
piled, and there Is no question but tbat tbe
plaintiff could exercise It In this case.
[4] Counsel for defendants In argument to
the jury said: "Who Is this Hollls Stevens?
What, kind of a chap la he to do business?
He went In and trimmed Hammond until he
picked him dry." To these remarks the plain-
tiff excepted. Hollls Stevens was a witness
for the plaintiff, and had given material tes-
timony in the case. There was no evidence
to Justify this statement Hammond and
Stevens had been partners, but there was no
testimony that Stevens had cheated Ham-
mond, and It cannot be fairly Inferred from
the evidence. This unwarrantable argument
was for tbe purpose of convincing the Jury
that one of the plaintiff's material witnesses
was a dishonest man, and that his testimony
was not entitled to credit It was prejudi-
cial, and transcended the limits of legitimate
advocacy. Robertson r. Madison, 67 N. H.
206, 28 AtL 777. Whenever counsel in argu-
ment goes outside of the evidence, and makes
statements that are material and prejudicial
to the case, the verdict if In favor of his
client must be set aside, unless he immedi-
ately retracts them, requests that the Jury be
instructed to disregard them, and obtains a
finding by the presiding Justice that "the er-
ror was cured and did not affect the result."
Greenfield v. Kennett 69 N. H. 419, 45 Atl.
233; Story v. Railroad, 70 N. H. 364, 376,
48 Atl. 288; Hallock v. Young, 72 N. H. 416,
422, 57 Atl. 236. There being no retraction of
the objectionable remarks, nor finding by tbe
court in reference to them, the verdict can-
not be permitted to stand.
Exceptions to denial of motions for ver-
dict and Judgment and to instructions over-
ruled; exception to argument sustained;
verdict set aside; new trial granted. All
ccmcurred.
(78 N. H. tm
liAOOSS et «1. V. TOWN OP LEBANON et aL
(Supreme Court of New Hampshire, May 1.
1917.)
1. DiscovKBT «=>13— Pboductior of SKECOa
AND PHOTOOBAPH.
That defcndnats made a sketch and photo-
graph of the place and machinery after injury
to their employe did not relieve them from the
duty of producing them on bill of discovery by
him.
[Ed. Note. — For other cases, see Discovery,
Cent Dig. S 14.]
2. DiSCOVBBT <®=>13— PBODUCTION OF SKETCH
AND PhOTOGBAPH.
That defendants were under no duty to their
injured employe to make a sketch and photo-
graph of the place and machinery did not re-
Ueve them from the duty of producing such
sketch and photograph, which they in fact made
after the accident if these were relevant to
plaintiff's cause of action and their production
would tend to promote discovery of the truth.
[Ed. Note. — For other cases, see Discovery,
CJent Dig. i 14.]
3. DiscovEBT «=9l3— PBODtronoR OF Writ-
ings.
That defendant mnnicipality reduced the
evidence as to injury of its employe to writing
no more relieved it from discovering it upon
his bill of discovery than the fact that an in-
dividual committed the evidence to memory for
the purpose of enabling him to defend any suit
which might be brought would relieve him from
the duty of discovering it
[Ed. Note.— For other cases, see Discovery,
Cent Dig. i 14.]
4. DiscovEBY <@=>13— Defenses.
That documents material to a prospective
suit are in posses^sion of defendant's counsel
does not help it on a bill of disooveiy for such
documents.
[Ed. Note.— For other cases, sea Discovery,
Cent Dig. | 14.]
5. DiSCOVEBT $=38— PBODUonoiT OF Doou-
ICENTS.
While defendant cannot be compelled to
discover either facts or documents relevant only
to his defense, he can be compelled to discover
any facts or documents within his knowlecjge
or possession that are relevant to plaindf s
cause of action.
[Ed. Note.— For other cases, see Discovery,
Cent Dig. §§ 8, 9.]
6. DiscovEBY €=8— Pboductioh of Writ-
ings.
When a writing evidences facts on which
both parties rely, either may call for its dis-
covery.
[Ed. Note.— For other cases, see Discovery,
Cent. Dig. H 8, 0.]
7. DISCOVEBY «=»95— Under Statittoby Pbo-
VISIONS— Pabties.
Under Gen. St. 1867, c. 209, {{ 13, 14,
providing that no person shall be excused from
testifying by his interest, liiit that no party
shall be compelled in testifying to disclose the
names of the witnesses by whom nor the man-
ner in which be proposes to prove his case,
a party to an action stands in exactly the samo
position as any other witness, and can be com-
pelled to answer any question or produce any
writing such a person can be compelled to an-
swer or produce, except that he cauuot be com-
pelled to disclose the names of the witnesses by
whom nor the manner in which he proposes
to prove his case.
[Ed. Note.— For other cases, see Discovery,
Cent Dig. | 121.]
8. DiscovBBY «=»84 — Fbodxjctior of Wbit-
INOS.
Since, under sudi statutes, a party can be
compelled to produce material writings at the
trial, and the case may then be continued to
give plaintiff time to examine them to prepare
his case for trial, the court may on motion com-
pel defendant to produce them In advance of the
trial.
[Ed. Note.— For other coses, see Discovery,
Cent Dig. i 108.]
9. Tbiai, c@=>l8— Pbooedube.
Outside of a few familiar situations in
which the procedure is fixed by statute, the test
usually applied to determine questions of ^)ro-
cedure is to inquire as to what justice requires
in the situation.
[Ed. Note.— For other cases, see Trial, Cent
Dig. i§ 37. 42%.]
10. dlscovebt «=>97(1) — peod0otior 0»
Wbitingb.
If a bill of discovery be considered as a
motion in an action at law, the test to deter-
mine whether defendant should be compelled
to produce written documents at the time of
0s»For other cases lae same topic and KBT-NUMBER la all Kez-Numbeiad Dlguta aad Udues
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N.HJ
LACOSS V. TOWN OF LEBAKON
365
Bach motion la to inquire whether that ia nec-
essary to do justice between the parties.
[Ed. Note.— Fbr other cases, see Discovery,
Cent Dig. f $ 124-127.]
11. Appeal and Erkob «=s»1010(1)— Retisw—
PbODUCTION of DOCtTMENTB.
The trial court's decision, on motion to com-
pel defendant to produce documents, that it is
Just to compel defendant to do so, is final, if
there is any evidence to warrant it.
[Ed. Note.— For other cases, see Appeal and
Error, Cent. Dig. ff 3979-3881, 4024.]
Exceptions from Superior Court, Grafton
County.
Bill for discovery by Andrew Lacoss and
others against the Town of Lebanon and oth-
ers. Order for plaintiffs, and defendants ex-
cept Exceptions overruled.
On hearing the court found tbat tbe plain-
tiff, an employ^ of the defendant town, was
Injured by tbe breaking of a hoisting appara-
tus. Soon after the accident tbe defendant's
officers caused a sketch of the place where the
accident happened to be made, and a photo-
graph of the hoisting api>aratus to be taken,
and the prayer of the bill is that the de-
fendant be compelled to discover the sketch
and photograph. The conrt found that the
facts they evidence are material to the
plalntitTs cause of action and that justice re-
quires that they be produced at this time,
and ordered tbe defendant to discover them,
and It excepted.
Hollls & Murchle, of Concord, for plain-
tiffs. Martin 4 Howe, of Concord, for de-
fendants.
TOUNQ, X [1-3] The defendant contends
that it cannot be compelled to produce the
sketdi and photograph at this time, because
it caused them to be made after the accident
happened, to enable It to defend against any
SDit that might be brought against it be-
cause of the accident. The fact the defendant
made the sketch and photograph after the ac-
cident happened will not relieve it from the
duty of producing them; neither will the fact
that the defendant owed the plaintiff no duty
to make them, if they are relevant to the
plaintiff's cause of action, and their pro-
duction at this time wUl tend to promote
the discovery of the trutlL If it would, there
would be but few cases in which a party
conid be compelled to ijroduce material docu-
ments. So far as appears, the sketch and
photograph, instead of being communications
from the defendant to its counsel, were pre-
pared before the plaintiff thought of this suit,
to perpetuate the evidence of the situation
as it existed at the time of the accident
But, however tbat may be, the fact tbe de-
fendant reduced the evidence to writing no
more relieves it from discovering It than tbe
fact that an individual committed the evi-
dence to memory for the purpose of enabling
him to defend any suit that might be brought
against him would relieve him from the duty '
of discovering it. In short, the sketch and
photograph are not communications from tbe
defendant to its counsel, but documents that
it prepared to perpetuate the evidence of the
facts on which it relies as a defense to tills
suit.
[4, 6] The mere fact these documents are
now in the possession of the defendant's
counsel does not help it, for if the defend-
ant can be compelled to discover them its
counsel also can be compelled to produce
them. In other words, a party cannot escape
his duty of discovering material documents
by merely handing them to his attorney. Pe-
tition of Snow, 75 N. H. 7, 70 Atl. 120; 4
Wig. Ev. { 2307. The question, therefore, U
whether a party can be compelled to dis-
cover material documents when their pro-
duction Is essential to the discovery of the
truth. The test to determine tbat question
is to inquire whether tbe facts they evidence
are relevant to the plalntifTs cause of action,
or whether they are merely matters of de-
fense; for, while tbe defendant cannot be
compelled to discover ^ther facts or docu-
ments that are only relevant to its defense,
it can be compelled to discover any facts
within the knowledge, information, or belief
of its officers, or any documents in its pos-
session, that are relevant to the plalntifTs
cause of action.
[S] The fact the sketch and photograph
evidence facts on which the defendant also
relies is not enough to excuse it from dis-
covering them, for when a writing evidences
facts on which both parties rely either may
call for its discovery. Reynolds v. Company,
71 N. H. 332, 51 Atl. 1075, 57 L. R. A. 949,
93 Am. St Rep. 635. The plainUff must
show tbat tbe defendant's fault caused his
injury, and it Is dear that to do that he
must reproduce tbe situation as it existed at
the time of tbe accident, and It is obvious
that be can get the necessary facts fcom the
sketch and photograpli. There is, however,
another way of compelling a party to produce
material writings, when their production is
necessary to the discovery of the truth, that
Is more in line with modem ideas of ef-
flciency tlian a bill of discovery.
Previous to 1857 neither a party to, nor
one Interested in the event of, a suit could be
permitted or compelled to testify ; but in that
year a law was passed which provided that
"no person shall be excused or excluded as
a witness In any civil suit or proceeding at
law or in equity, by reason of interest in the
event of the same as a party or otherwise,"
with certain exceptions that are immaterial
in so far as any questions before this court
are concerned. Laws 1857, c. 1952, { 1.
While this act put an interested party on the
same footing as any one else In so far as
calling him as a witness was concerned, it
made no provisions for taking his deposi-
tions; but the next year an act was passed
4tssFor atliar casaa m* sama toplo and KST-NUMBER la all Ker-Nuiu^wred Dlgetts and Indazei
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366
101 ATLANTIC REPORTER
(N.H.
which remedied that defect. This act con-
tained the proTlso that the party giving a
deposition "shall not be obliged to answer
any questions, or produce any document, the
answering or producing of which would tend
to criminate himself, or disclose his title
to any property the title whereof Is not ma-
terial to the action In the course of which he
is interrogated, or to disclose the names of the
witnesses by whom, or the manner In which, he
proposes to prove his own case." Laws 1858, c.
2000, i 1. It is clear that, while these acts
(Laws 1867, c 1952, { 1 ; Laws 1858, c. 2090, §
1) were in force, a party who was called as
a witness could, and one who was glviiig a
deposition could not, be compelled to pro-
duce material writings ; and that Is true to-
day, for, while certain material changes were
made when these acts were Incorporated In
the Revision of 1867, there is nothing to
show an intention on the part of the Leg-
islature to relieve a party who Is called as
a witness from producing any writing that
any other witness would be compelled to pro-
duce. These acts appear in the revision as
G. S. c. 20»:
"Sec. 13. No person shall be excused or ex-
dudod from testifying or giving his deposition
in any civil cause by reason of his interest
therein, as a party or otherwise.
"Sec. 14. No party shall be compelled. In tes-
tifying or giving a deposition, to disclose the
names of the witnesses by whom nor the man-
ner in which ho proposes to prove his [own]
case, nor, in Kiving a deposition, to produce any
writing which is material to his case or de-
— and are still parts of the law of this state.
O. L. c. 228, if 13, 14; P. S. c. 224, {f 13, 14.
All the evidence, therefore, the history of
this legislation, as well as the language the
Legislature used, tends to the conclusion that
a party to an action stands in exactly the
same position as any other witness, except
that he cannot be compelled to dUclose the
names of the witnesses by whom nor the
manner in which he proposes to prove his
case. A little thought will show why the
Legislature provided that a party may be
compelled to produce a writing when he is
called as a witness that he would be excused
from producing If he were giving a deposi-
tion.
The office of evidence is to enable the tri-
er of facts to discover the truth in resi)ect to
the matters in dispute between the parties,
and experience has shown that compelling a
witness to produce a material writing at a
given stage in the proceedings sometimes
tends to prevent the discovery of the truth.
Since this is so, the question of whether pro-
ducing a writing at a given time will prevent
or promote the discovery of the truth should
be decided before a party is compelled to
produce it The court is the only tribunal
that has Jurisdiction of that question, and
as a deposition is not taken in its presence
the Legislature saw fit to relieve parties giv-
ing their depositions from producing writings
ot which they rely to prove their cases. As
that reason does not exist in the case of a
witness, the Legislature placed a party who
is called as a witness on the same footing as
every one else in so far aa the production of
documents is concerned.
[7] It follows that, while a party cannot
be compelled to produce material writings
when he is giving a deposition, he may be
compelled to produce them when he is called
as a witness, whenever the court finds that
that win promote the discovery of the truth.
In a word, when a party is called as a wit-
ness, he cannot be compelled to give the
names of the witnesses by whom nor the man-
ner in which he proposes to prove his case,
but in all other respects he stands the same
as one who Is not a party (Whitdier v. Da-
vis, 70 N. H. 237, 46 Atl. 468), and can be
compelled to answer any question or produce
any writing that such a person can be com-
pelled to answer or produce (Railroad r.
State, 75 N. H. 613, 77 AU. 996, 31 L. R. A.
[N. S.] 639, Ann. Cas. 1912A, 382). There U
nothing In the opinion In Wentworth v. Mc-
Duffle, 48 N. H. 402, in conflict with this
view of the court's power to compel the
production of material writings, for that
case relates to the production of documents
without reference to their competency as
evidence and is based on the roles of the
common law. and not on Q. S. c. 209, ff
13, 14.
[t, 9] Since a party can be compelled to
produce material writings whenever the
court finds that producing tfaem will pro-
mote the discovery of the truth, the court
can compel the defendant's ofiBcers to pro-
duce the sketch and photograph when the
case comes to trial, and then continue the
case to give the plaintiff time to examine
them, if It finds that that is reasonably nec-
essary to enable him to prepare his case for
trial. Since this is so, that Is, since the
court can continue the case after it compels
the defendant's officers to produce the sketch
and photograph, if it finds that justice re-
quires It, or that everything considered, that
Is the reasonable thing to do, It can, on mo-
tion, compel the defendant's officers to pro-
duce them in advance of the trial, unless
there Is some statute of this state or rule of
procedure which forbids it There is no
statute wbicb provides either in terms or
by implication that a party cannot be com-
pelled to produce material writings in ad-
vance of the trial, when that is necessary to
prevent injustice; and it is almost true to
say that the only common-law rule of pro-
cedure that is enforced in this Jurisdiction Is
the one which makes it the duty of the court,
in conducting trials, to do whatever is rea-
sonably necessary to do Justice between the
parties, for notwithstanding the question of
the result any given procedure will produce
is one of fact, pure and simple. It used to be
the custom to formulate rules for deciding
all such questions, but for nearly half a
century the practice of deciding them as
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N. JJ LONG DOCK CX), t. STATE BOARD OF TAXES AND ASSESSMENT
367
otlier questions of fact are decided bas been
growing, until now It Is fair to say tbat, out-
side of a few familiar situations In which
the procedure Is fixed by statute, the test
usually applied to determine questions of
procedure Is to Inquire as to what Justice re-
quires In that situation. Tlnkham t. Rail-
road, 77 N. H. Ill, 88 Atl. 709; CJommon-
wealth Trust Co. v. Salem, 77 N. H, 146, 89
Atl. 452; Whltcher t. Association, 77 N. H.
405, 92 Atl. 735; Wheeler v. C!ompany, 77
K. H. 551, 553, 94 Atl. 265 ; Sanborn v. Rail-
road, 76 N. H. 65, 79 Atl. 642; Day t. Wash-
bum, 76 N. H. 203, 81 Atl. 474; Glover v.
Baker, 76 N. H. 261, 81 Atl. 1081 ; Moore v.
Company, 74 N. H. 47, 64 Atl. 1099; Meloon
V. Read. 73 N. H. 153, 59 Atl. 946; Qerrish
v. Whitfield, 72 N. H. 222, 55 Atl. 651 ; Sau-
cier V. Mills, 72 N. H. 292, 56 AU. 545; Pat-
tee V. Whltcomb, 72 N. H. 249, 56 Atl. 459;
Keenan v. Perrault, 72 N. H. 426, 57 Atl,
335; State v. Sunapee Dam, 72 N. H, 114,
131. 55 Atl. 899; Stone v. Mills, 71 N. H.
288, 52 Atl. 119; Marden v. Company, 70
X. H. 269. 48 Atl. 282; Wilcox v. Buslel, 70
N. H. 626, 47 Atl. 703; Smith y. Bank, 69
N. H. 254. 45 Atl. 1082; Tripp t. Company,
e» N. H. 233, 45 Atl. 746; Gregg ▼. Thurber,
69 N. H. 480, 45 Atl. 241; Johnson v. Asso-
ciation, 08 N. H. 437, 36 Atl. 13, 73 Am. St.
Rep. 610; Martin v. Wiggln, 67 N. H. 196,
29 Atl. 450; Crlppen v. Rogers, 67 N. H. 207,
30 Aa. 346, 25 U R. A. 821; Tucker v. Chl<i,
67 N. H. 77, 37 Atl. 672; Tucker v. Lake, 67
N. H. 193, 29 Atl. 406; Meredith t. Company,
67 N. H. 450, 39 Atl. 330; Mead t. Welcb,
67 N. H. 341, 39 Atl. 370; Hlckey v. Dole, 66
N. H. 612, 31 Atl. 900; Sleeper v. Kelley, 65
N. H. 206, 18 AU. 718; Joyce v. O'Neal, 64
N. H. 91, 6 Atl. 33; Boody v. Watson, 64 N.
H, 162, 171, 9 Atl. 791; HaverhUl v. Hale,
64 X. H. 406, 14 Atl. 78; Brooks v. Howlson,
63 N. H. 382; Ousbiiig v. Miller, 62 N. H.
617; Clark v. Caark, 62 N. H. 267; Metcalf
▼. Gllmore, 59 N. H. 417, 47 Am. Rep. 217.
[10,11] If, therefore, this bill Is considered
as a motion In the action at law, the test to
determine wbethw the defendants should be
compelled to produce the sketch and photo-
graph at this time la to Inquire whether that
Is necessary to do justice between the par-
ties. Consequently the only question of law
raised by tlie defendant's exertion to the
court's finding tbat It is Just for the defend-
ant to produce tbe sketch and photograph,
at this time, Is whether there is any evidence
to warrant It; It Is enough, In so far as that
<luestion Is concerned, to say that It cannot
be said there Is no such evidence.
Defendant's exception overruled.
(to N. J. lAW, 701)
LONG DOCK CO. ▼. STATE BOARD OP
TAXES AND ASSESSMENT et «L
(No. 48.)
(Court of Errors and Appeals of New Jersey.
May 24, 1917.)
Appeal ano Ebbob *=j1094(1) — Rbview —
supbxhs codbt flndino.
Where there is evidence to support finding
of facts by the Supreme Court, siicn finding is
not reviewable in the Court of Errors and Ap-
peals.
[Ed. Note. — For other cases, see Appeal and
Error, Gent Dig. §§ 4322, 4323.]
Appeal from Supreme Court.
Certiorari by the liOng Dock Company
against the State Board of Taxes and Assess-
ment and others to review assessment of
second class railroad property. From Judg-
ment of the Supreme Court (89 N. J. Law, 108,
97 Atl. 900), prosecutor appeals. Affirmed.
Collins & Corbln, of Jersey City, for appel-
lant. John W. Wescott, Atty. Gen., John
Bentley, of Jersey City, and John B. Har-
din, of Newark, for appellees.
PER CURIAM. Legal questions were first
dealt with in the opinion of Mr. Justice
Parker In the court below, so as to lay a
foundation for the consideration of the facts,
and those questions were, in our opinion,
rightly decided. As there was evidence to
support the finding of facts made by the Su-
preme Court, that finding is not reviewable
In this court.
The Judgment under review will be af-
firmed.
Note. — In the companion cases (Nos. 48, 60,
and 51, 101 Atl. 307, 3(J8) memoranda to be
filed stating Judgments affirmed, for reasons
given In above per curiam.
""^'^ (90 N. J. Law. 702)
LONG DOCK (X). v. STATE BOARD OF
TAXES AND ASSESSMENT ct aL
(No. 49.)
(Court of Errors and Appeals of New Jersey.
May 24, 1917.)
Appeal from Supreme Court.
Certiorari by the Ix>ng Dock (Company against
the State Board of Taxes and Assessment and
others to review assessment of second class
railroad property. From judgment of the Su-
preme Court (89 N. J. Law, 106, 07 AU. 900),
prosecutor appeals. AfiSrmed.
Ollins & Corbin. of Jersey City, for appel-
lant John W. Wescott, Atty. Gen., John
BenUey, of Jersey City, and John B. Hardin,
of Newark, for appellees.
PER CURIAM. The judgment under review
will be affirmed for the reosons given In the
per curiam in Long Dock Ck>. v. State Board
of Taxes and Assessment, etc. (No. 48 of the
present term of this court) 101 AU. 367.
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101 ATLANTIC EEPORTEB
(N.3.
(90 N. J. Law, 701)
LONG DOCK CO. r. STATE BOARD OF
TAXES AND ASSESSMENT et aL
(No. 50.)
(Court of Errors and Appeals of Now Jersey.
May 24, 1917.)
Appeal from Supreme Court.
Certiorari by the lyong Dock Company Bsrainst
the State Board of Taxes and Assesgmout and
others to review assessment of second class
railroad property. From judgment of the Su-
preme Court (89 N. J. Law, 108, 97 Atl. 900),
prosecutor appeals. Affirmed.
Collins & Corbin. of Jersey Oty, for appel-
lant. John W. Wescott, Atty. Gen., John Bent-
ley, of Jersey City, and John It. Hardin, of
Newark, for appellees.
PER CT1RIAM. The judgment under review
will be affirmed for the reasons given in the
per curiam in Long Dock Co. v. State Board
of Taxes and Assessments, etc. (No. 48 of the
present term of this court) 101 AtL 367.
(90 N. J Law 703)
LONG DOCK CO. v. STATE BOARD OF
TAXES ANT) ASSESSMENT ct aL
(No. 51.)
(Court of Errors and Appeals of Now Jersey.
May 24, 1917.)
Appeal from Supreme Court.
Certiorari by the Long Dock Company against
the State Board of Taxes and Assessment and
others to review assessment of second class
railroad property. From judgment of the Su-
preme C!ourt (69 N. J. Law, 108, 97 A. 900),
prosecutor appeals. Affirmed.
Collins 8c Corbin, of Jersey City, for appel-
lant. John W. Wescott, Atty. Gen., John Bent-
ley, of Jersey City, and John R. Hardin, of
Newark, for appellees.
PER CURIAM. The judgment under review
will be affirmed for the reasons given in the
per curiam in Long Dock Co. v. State Board
of Taxes and Assessment, etc. (No. 48 of the
present term of this court) 101 AtL 3(^7.
(90 N. J. Law, 406)
HORNER T. BOARD OF COM'RS OF MAE-
GATE CITY et aL
(Supreme Coart of New Jersey. June 19, 1917.)
(BvUahiu ly tA« CourtJ
Taxation «=>513— Likn— CoNTiinTANCB.
Under the act entitled "An act for tile as-
sessment and collection of taxes" (P. L. 1903,
p. 394 [4 Comp. St. 1910, p. 5075]), there is no
limitation as to the lien of a tax assessed on
lands against the owner, at least so long as he
continues to be the owner, and a taxing district
has in such case the right to enforce the pay-
ment of taxes assessed against the owner, al-
though the sale is not made, or attempted to be
made, within two years of the 20th day of De-
cember of the year for which the taxes are as-
sessed.
[Ed. Note.— For other cases, see Taxation,
Cent. Dig. U 951-955.]
Action by John O. Homer, receiver of the
West Jersey Mortgage Company, fOr a writ
of certiorari to tbe Board of Commissioners
of Margate City and others to review a reso-
lution directing the tax collector to sdl lands
for taxes In arrears. Writ dismissed.
Argued June term, 1917, before SWAYZB,
BERGEN, and BLACK, JJ.
Harvey F. Carr, of Camden, for prosecu-
tor. Joseph Thompson, of Atlantic City, for
defendants.
BERGEN, J. In this cause a writ of cer-
tiorari was allowed to review a resolution
of the defendant corporation directing its
tax collector to sell lands for taxes in ar-
rears.
The record is so meager that it is doubt-
ful whether the precise question is presented
in it, but we think it sulliciently supplemented
by admissions on the argument and the briefs
of counsel to Justify the consideration of
the real question in dispute, which is: Does
tbe lien against the land for unpaid taxes
expire in favor of the owner at the end of
two years from the date when they are pay-
able, where the owner against whom the as-
sessment was levied still holds the title? Tbe
facts as we find them from the record and
admissions of counsel are substantially as
foUows: In 1912 the Ventnor Syndicate was
the owner of a tract of land in Margate City
of which It Is still the owner; in that year
a tax was assessed against the land in tha
name of the owner which became payable
December 20th of that year and is not yet
paid; that October 9, 1916, tbe city passed
a resolution directing tbe sale of the land to
make the taxes in arrears, which is the reso-
lution under review; that the collector ad-
vertised the land for sole oa April 10, 1917;
that February 21, 1912, the Ventnor Syndi-
cate mortgaged the land of the West Jersey
Mortgage Company for $6,000, and, the latter
company being decreed to be inscdvent, the
prosecutor was app<^ted its receiver October
1, 1915.
While We have concluded to consider the
merits of the question presented, we do not
thereby wish to be tmderstood as conceding^
tbe right of a mortgagee to challenge the
legality of a tax assessed In the name of th»
owner against the mortgaged premises, under
sudi conditions as are present in this case;
for it may w^l be that, erven if the lien has
expired as to the mortgagee. It might remain
a lien against the interest of the owner suffi-
cient in value in excess of tbe m<»:tgage to
raise the sum due for unpaid taxes, and that,
if the lien had lapsed as to the mortgagee, a
sale of the owner's interest would not affeet
the mortgagee's lien. This question we do
not pass on for it Is not raised, and defendant
makes no objection to the prosecutor's stand-
ing.
The <ml7 reason filed by the prosecutor is
that "the Mea created" by the act of 190a
(P. L. 394; O. S. 6075) has expired, and tbe
defendants. In ccmsequence, have no right or
power to sell the said lands, and can con-
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HORNER V. BOARD OF COM'RS
369
yey no valid title thereto. This raises but one
gnestlon, and the only one argued, yiz.: Is
tbere any limitation to the Hen for taxes on
the land against which they are assessed and
levied where there has been no sabseqnent
conveyance by the own«:. We are of opin-
ion that under the act of 1903 sniMra there is
no limitation for the lien for taxes, so far aa
the owner is c(mcemed against whom the
tax was levied, at least so long as he retains
the tltl& Prior to 1S54 we had no statute
making taxes a lien on land or limiting the
lien for taxes. In that year (P. L. 429) an act
was passed which provided (section 2) that
an assessment for taxes against any person
residing out of the state, or of corporations
residing out of the county where the lands
were located, should be a lien on the lands
for the "space of two years" from the time
when they were made payable, and in 1863
(P. L. 497) this was extended to all persons
and corporations whether resident or not.
This limitation was maintained in all sub-
sequent statutes relating to the subject un-
til the general revision of the tax act in 1003,
so that under the statutes prior to 1903 taxes
were made a lien on the land against which
they were assessed for the space of two years
after they were payable, except since 1888
(P. Li. 372), when all taxes were made a Urst
and paramount lien for the space of two
years from and after December 20th In each
yesir, to whldi all conveyances, mortgages,
and other liens were subservient, and our
courts in construing this legislation have
uniformly held that the lien imposed expired
at the end of two years from the due day.
Johnson v. Van Horn, 45 N. J. Law, 136; Poil-
lon V. Rutherford, 68 N. J. Law, 113, 32 Att.
688 ; Hohenstatt v. Bridgeton, 62 N. .J. Law,
169, 40 Ati 649. With thU statutory limita-
tion regarding taxes continued in our law
for a period of 40 years, together with its
Jndldal construction, before it, the Legis-
lature by the act of 1903 supra deliberately
eliminated the limitation of the Uen of taxes,
and expressly repealed by P. I«. 1908, p. 436,
all the legislation relating thereto, and by
section 49 of the Revised Statutes of 1903
declared that all unpaid taxes should be,
after the 20th day of December next after the
assessment, "a first Uen on the land on which
they are assessed, and imramonnt to all prior
or subsequent alienations and descents of
said land or incumbrances thereon, except
subsequent taxes." Section 50 of the act re-
goires the collector Of each taxing district
to file, on or before the first Tuesday of Feb-
mary in eadi year with the county clerk, ex-
cept in cities having charter provisions for
a public record of tax liens on land, a list
of all unpaid taxes assessed the preceding
year on real estate in his taxing district, set-
ting forth against whom assessed, the de-
scription of the property and the amount of
taxes assessed thereon, arranged alphabetical-
ly In the names of the owners, and then de-
clares that:
101 A.— 24
"The said list when filed and the record there-
of shall be constrnctive notice of the existence of
the tax lien for two years from said first Tues-
day of February but not thereafter against any
parcel anless within said term of two years the
sale of said parcel shall be noted in the rec-
ord."
The same section further provides that a
purchaser or mortgagee In good faith after
the said flrst Tuesday of February, whose
deed or mortgage Is recorded before the col-
lector has filed his list, shall hold his title
free from the tax Uen. The radical change
made by this statute is that the lien of taxes
is no longer subject to any limitation, they
are made a Uen paramount to all conveyances
or mortgages except such as are taken after
the first Tuesday In any February and re-
corded before the collector has filed his list.
This was manifestly adopted to protect in-
nocent purchasers and mortgagees in good
faith against the default of the collector In
not filing his list on the day required by law,
but they are not protected If recorded after
the Ust has been filed, so that. If such pur-
chaser or mortgagee finds no list on file show-
ing taxes in arrears against the land when
he records his conveyance or mortgage, he
may safely accept either. That part of sec-
tion 50 relating to the limitation of construc-
tive notice to two years does not destroy the
tax lien in favor of an owner, for he has
actual notice that he has not paid his taxes,
and the Legislature could not have Intended
to do away with the actual notice which he
had, and put in its place a constructive no-
tice, which Is one which the law implies and
charges him with in absoice of actual no-
tice. This limitation of constructive notice
only appUes to persons who deal with the
land without notice of any tax Uen.
As to 8n<di persons the list filed is a no-
tice which the law impUes they have, but this
ImpUcation fails, by force of the statute, after
the lapse of two years from the beginning of
the Uen, after which the list Is not construc-
tive notice to a purchaser or mortgagee of
the tax lien, and If he finds no list on file,
or a sale noted, within two years, he may
assume that there are no taxes in arrears
which are a lien upon the property. It may
weU be doubted whether this statute appUes
in any case where the conveyance or mort-
gage Is recorded prior to the assessment, for
as was said by Mr. Justice Dixon in Robin-
son V. Hulick, 67 N. J. Law, 496, 51 AtL 493:
"All persons interested, or about to become in-
terested, in lands in New Jersey, are chargeable
with notice of these laws and of their normal
operation. E>ery purchaser or mortgagee of
such land therefore must be deemed to have no-
tice of the taxes which become a lien uix>n that
land on every 20th day of December after he ac-
quires his interest."
We are Inclined to think that the statute
with reference to the constructive notice to
be derived from the filed list was intended
tor the protection of persons Intending to
become Interested In the land, and that as to
them the Ust Is not a constructive notice for
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376
101 ATIiAin?IO REPORTEIB
(N.X
more than two years after It Is filed, ao tbat
if In searching the record he finds no list
containing an assessment unpaid against the
land he is not chargeable with notice of any
Assessment, altboDgh filed, which is not with-
in the limited period, but If this be not sound
we are of opinion that the limitation of the
effect of the constructive notice provided by
the statute does not apply where the owner
had actual notice of a tax levied during his
ownership, and that, so far as he Is coucern-
«d, the tax remains a Hen upon his land with-
out limitation by any statute.
The result which we reach Is tbat the pros-
ecutor can take nothing by his writ, and tbat
It should be dismissed, with costs.
(90 N. J. Law, 473)
DOIiKER V. BOARD OF CHOSE3N FREO-
HOLDERS OF ATLANTIC COUNTY
et al. (No. 86.)
'(Court of Errors and Appeals of New Jersey.
June 18. 1017.)
(Syttabut by the Court.)
1. Appeal and E^rror €=3114&-^udoiient
4=»305 — Review— Amendment.
It is the judement. not the opinion, of a
'Court below, which is brought before an appel-
late court for review. If the judKment of the
lower court varieB from its decision, it may be
corrected only by aineDdmeot in that court; in
the court above it can only be affirmed, revers-
ed, or modiScd.
lEd. Note. — For other cases, see Appeal and
Error, Cent. Dig. ii 4483-1496; Judgment,
-Cent. Dig. » 590. 697.1
2. MuRiciPAi. Corporations «s»336(1) —
Contracts — "Work" — "Liabor" —'•Ma-
terials"—Statute.
The pobllsbinK of official advertisemeDts for
municipal corporations in newspap«r8 is neither
work, labor, nor materials furnished by the
owners of the papers to such advertising cus-
tomers, under P. L. 1912, p. 593.
[Ed. Note. — For other cases, see Municipal
Corporations, Cent Dig. { 802.
For other definitions, see Words and Phrases,
First and Second iieries. I>ibor; Materials:
Work.]
3. MtTNtcrPAL Corporations 4s»327— Pob-
Lio Advebtisemknts — Price — Repeal or
Statute.
The act of 1908 (P. L. p. 92; 3 Comp. St.
1910, p. 3762), which regulates the price to be
paid for public advertising, is not repealed by
impUcatlon by act of 1912 (P. L. p. 593), there
being no express repealer, specific or general,
which latter act relates to expenditures by pub-
lic bodies for the doinK of work or the furnish-
ing of materials or labor.
fEd. Note. — For other cases, see Munidpal
Corporations, Cent Dig. { 850.]
4. Municipal Corporations €=>336(1)— An-
vbrtmino— Award op Contract— Statute.
Although a municipal corporation advertis-
es for bids or proposals for publishing all official
advertising in newsnaoers. it is not required to
award a contract to the lowest bidder, but may
contract for such advertisintc at the price fixed
in P. L. 1909. n. 92.
[Ed. Note.— For other cases, see Municipal
Corporations. Cent. Dig. i 862.]
Appeal from Supreme Court
Certiorari from the Supreme Court by
Thomas Dolker against the Board of Chosen
Freeholders of the County of Atlantic and
others. Judgment for prosecutor, and de-
fendants appeal. Reversed.
Enoch A. Hlgbee, of Atlantic City, for ap-
pellants. Clarence L. Cole, of Atlantic City,
for appellee.
WALKER, Ch. The board of chosen free-
holders of the county of Atlantic called for
sealed bids or proposals for the publication or
printing of all public notices or advertise-
ments authorized by the board, including
monthly and annual financial statements. lu
response, bids were submitted by the South
Jersey Star, Frank Breder, Atlantic City Re-
view, Atlantic City Dally Press, and Atlantic
City Union, and were as follows: South Jer-
sey Star, seven-eighths cents per line ; FranR
Breder, six -eighths cents per line; Atlantlo
City Review, four cents per line for the first
Insertion and three cents per line for sub-
sequent Insertions; Atlantic <^ty Press, ten
cents per line for the first insertion and eight
cents ijer line for subsequent insertions;
Atlantic City Union, ten cents per line for the
first insertion and eight cents per line for
subsequent Insertions. The proposals were
referred to the printing committee and the
minutes of the board show that on motion a
contract was awarded to the Atlantic City
Review and Atlantic City Press at the legal
rate, as given In the bid of the Atlantic nty
Press. These two were not the lowest bid-
ders.
The prosecutor respondent sued out a
certiorari from the Supreme Court to test
the legality of the award. That court in a
per curiam held that tlie award of the con-
tract was at a figure much in excess of the
statutory limitation, and set the same aside,
with costs. This appears to refer to the total
cost of the advertising, which would exceed,
(according to a stipulation In the cause) the
$5(X) limit of expenditure, without advertis-
ing for proposals and awarding the contract
to the lowest bidder, as provided by the act
of 1912, Infra. The respondent, the board,
has appealed to this court.
[1] It Is urged as a ground of appeal that
the Judgment In the Supreme Court Is not
In accord with Its opinion. In that the judg-
ment sets aside the proceeding!, with costs,
whereas the opinion directed the setting aside
of the contract, with costs. It Is not the opin-
ion, but the Judgment, of the court below,
which is before this court for review. The
reasoning of the Judges in a court below la
always considered, and, so far as it tends
to support the conclusion reached by that
tribunal, is given due weight by an appellate
court ; but the Judgment entered in the court
below, even if it is different from the court's
decision, cannot be amended In the court
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DUPP V. PRUDENTIAL 1N& 00.
871
above. It can only be affirmed, reTersed, or
modifled there.
The Judgment entered npon the opinion of
the Supreme Court In the case at bar recites
that that court was of opinion that the pro-
ceedings under review should be set aside,
and so ordered, with costs ; the opinion con-
cluding, as above mentioned, that the coti'
tract should be set aside; The form of Judg-
ment, however, if a matter of importance,
could only be corrected by the court which
rendered it See Hansen v. De Vita, 76 N. J.
Law, 330, 70 AtL 66& However, the form of
the Judgment before us is of no importance
In the view which we have reached, for, were
it one setting aside the proceedings under re-
view, instead of the oontract, it would have
to be reversed. And this brings us to the
meritorious question in the ONitroversy,
whldi Is one of statutory construction.
[2] Two statutes are involved. The first
is P. L. 190&, p. 92 (Ck>mp. Stat p. 3762), and
the other Is P. Lw 1912, p. 593. I^e title and
pertinent section of the first reads as follows:
"An act to regulate the price to be paid for
official advertishuc.
"1. Hereafter the price to be paid for pub-
lishinR all official advertisinz in the newspapers,
published in cities of the first and second class,
or in counties of the first or second dais in
this state, shall be at the rate of ten cents per
agate (or 5% point) line for the first insertion,
and eight cents per agate line for each subse-
quent insertion; Provided, that in computing
such charge per line, the lines shall average at
least seven words."
And the second:
"An act relating to expenditures by public
county, city, town, township, borough and
village bodies;.
"1. Where and whenever hereafter it shall be
lawful and desirable for a public body of any
county, city, town, township, borough or vil-
lage to let contracts or agreements for the doing
of any work or for the furnishing of any ma-
terials or labor, where the siim to be expended
exceeds the sum of five hundred dollars, the ac-
tion of any such public body entering into such
agreement or contract or giving any order for
the doing of any work or for the furnishing of
any materials or labor, or for any such expendi-
tures, shall be invalid unless such public body
shall first Dubliclv advertise for bids therefor,
and shall award said contract for the doing of
said work or the furnishing of such materials
or labor to the lowest responsible bidder: Pro-
vided, however, that said public body may, nev^
ertheless. reject anv and all bids."
The prosecutor, who bid for the South Jer-
sey Star, was the lowest bidder, and claimed
that the act of 1912, which provides that
where a public body In any county, etc., shaU
make a contract or agreement for the doing
of any work or the furnishing of any ma-
terials or labor, where the sum to be expend-
ed exceeds $S00, the action of such body shall
be Invalid unless it shall publicly advertise
for bids and shall award the contract to the
lowest responsible bidder, required that the
contract should have been awarded to him.
We do not think that this act applies at all
to the case at bar. The advertising under
whidi the bids were received was for pro-
posals for the publication or printing of all
public notices or advertisements authorized
by the board of chosen freeholders, including
monthly and annual financial statements, and
that the successful bidder, or the ones tO'
whom the contract should be awarded, must
enter into a written contract to publish such
legal notices as should be authorized by the
board for the price tor which they bid, etc
The sort of advertising here called for was
clearly official advertising, as provided for in
section 1 of the act of 1909, and was not the
doing of work or the furnishing of materials
or labor comprehended in the act of 1912.
[3] It is urged on behalf of the respondent
that the act of 1912 repealed the act of 1909
by Implication; there being no express re-
pealer, specific or general. The Supreme
Court held that the two acts could stand to-
gether, and seems to have treated them a»
being In pari materia. We think they are
not; that they contemplate two entirely
different subjects — the one of 1909 the matter
of official advertising, and the one of 1912^
the doing of public work, or furnlslilng ma-
terials therefcn*.
[4] The act of 1909 does not require adver-
tising for bids, and, consequently, the ajK-
pellant was not required to award the con-
tract to the lowest bidder. This court, in
Trenton v. Shaw, 49 N. J. Law, 638, 10 AU.
273, held that under a provision in the char-
ter of Trenton requiring that all contracts for
work or materials for any Improvements
should be given to the lowest bidder, did not
apply to a oontract .to furnish rubber hose
for the fire department, because that was not
an Improvement In that case advertisement
had been made for bids, but the contract
was not awarded to the lowest bidder, and
the action of the common council was s^
aside in the Supreme Court, but was upheld
in this court The doctrine of Trenton v.
Shaw is applicable to the case at bar.
The Judgment under r^view must be re-
versed, with costs.
(M N. J. Law, M«>
DUFF ▼. PRUDENTIAL INS. CO. OF
AMERICA. (Na 74.)
(Court of Ekrrors and Appeals of New Jersey.
June 18, 1917.)
(SyUabus by the Court.)
1. IirsuBARCE «=>291(4)— Indubtriai. Lifb
Insurance— WiixFoi, Misstatement ab to-
Health— "Fbaud."
A finding of fact by the district court, sup-
ported by evidence, that in the application for a
policy of life insurance a statement that the in-
sured was not suffering from consumption was-
a willful untruth, vitiates the policy. This in
effect is a finding that the policy was procured
by fraud (citing 3 Words and Phrases, Fraud).
[Ed. Note. — For other cases, see Insurance,
Cent Dig. ( 687.1
4t=3For otbsr cases see same topic and KBT-NUMBER In all Key-Numbered Digests and Indexes*
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101 ATLANTIC REPORTER
(N.J.
2. Insukancb ®=3265 — Statuti:— Repkksen-
tations bt insured.
By statute (Act April 15, 1907; P. L. P-
133, § 1 [4]), statements purporting to be made
by the insured shall, in the absence of fraud, be
deemed representations, and not warranties.
rEd. Note.— For other cases, see Insurance,
Gent Dig. i 560.1
3. Appeal and Ebbob «=9l010(l)— Findinos
■^Re V zs w
The Supreme Cburt cannot review the find-
inss of fact of the district courts, when sup-
ported by evidence.
[Bd. Note.— For other cases, see Appeal and
Error, Cent Dig. fg 3979-3981, 4024.]
Appeal from Supreme Court.
Suit by Richard H. Duff, administrator,
etc., of John SulliTau, deceased, against the
Prudential Insurance Company of America.
From a Judgment of the Supreme Court, re-
versing a Judgment of the district court of
Jersey City in favor of the defendant, it
appeals. Judgment reversed, and Judgment
of district court affirmed.
Randolph Perkins, of Jersey City, for ap-
pellant Hershenstein & Flnnerty, of Jersey
City, for appellee.
BLACK, J.' This was a suit brought on an
Industrial life insurance policy, issued to the
decedent, J<^n Sullivan, by the defendant
company, for the sum of $244, on September
21, 1914. The Insured died of tuberculosis
at the City Hospital, in Jersey City, June 13,
1916. The case was tried, in the First dis-
trict court of Jersey City, by Judge Carrick,
without a Jury, resulting in a Judgment ren-
dered in favor of the defendant
[3] The trial court found, as a fact, the
statement made by the Insured, in his appli-
cation, that he had never suffered from con-
sumption, in view of the previous history of
the case, to have been a willful untruth,
which vitiates the policy and prevents re-
covery thereunder. The evidence in the rec-
ord amply supports this finding of fact by the
trial court The case was reviewed in the
Supreme Court, which reversed the Judgment
of the district court, <m the ground that the
false statement in the application, if It was
false, did not vitiate the policy, in the absence
of proof that the company was Induced to
write the policy through fraud. The Su-
preme Court also said the case is substantial-
ly, thflugb not precisely, similar to Melick v.
Metropolitan Life Insurance Co., 84 N. J.
Law, 437, 87 Atl. 76, affirmed 85 N. J. Law,
727, 91 AU. 1070, in which the determining
factor was the continued acceptance of week-
ly premiums by the company. We do not
agree with the conclusion reached by the
Supreme C6urt We think the Judgment of
the Supreme Court should be reversed, and
the Judgment of the district court affirmed.
[1,2] In the application for the policy of
insurance, which was dated September 0,
1914, the insured stated that he had never
suffered from consumption, that he was in
good condition of health, and had no seriouj
disease. The company defended on the
ground of the falsity of these statements.
The policy itself does not refer to the appli-
cation for insurance. The statements in the
application are not made warranties or con-
ditions. The statute provides:
"All statements purporting to be made by the
insured shall, in the absence of fraud, be deem-
ed representations and not warranties. Any
waiver of this provision stiall be void." P. L.
1907, p. 133, i 1(4).
The finding of facts by the district court
.was not the subject of review, by the Su-
preme Court Dordonl y. Hughes, 83 N. J.
Law, 866, 86 Atl. 353. It seems to us the
necessary result of finding that an applica-
tion for a policy of life Insurance contains n
wlllfnl untruth as to whether the applicant
had consumption was necessarily a finding
that the policy was procured by fraud. The
Supreme Court thought there was no proof
that this misrepresentation was material, or
that the company may have been aware of
its falsity and issued the policy regardless
of that fact The fact that the company asks
the question shows it is material, and it Is
common knowledge to assume that life insur-
ance companies do not accept for life insur-
ance tubercular persons.
It Is said the most essential element of
fraud is deceit What could be the purpose
of the insured making a statemoit, that was
a willful untruth, about his health, which
he must have known ,was important and ma-
terial, if it was not to deceive? Many defi-
nitions and Illustrations of fraud, taken from
adjudged cases, will be found collected in
volume 3, Words and Phrases, page 2943.
We agree with the district court that a state-
ment which is a willful untruth, as found
by the district court. In procuring the insur-
ance policy, renders it void on the ground of
fraud. This view results in a reversal of
the Judgment of the Supreme Court, and an
afiHrmance of the Judgment of the district
court. It also renders unnecessary any fur-
ther discussion of the points argued In the
briefs of counseL
The Judgment of the Supreme Court la
therefore reversed, with costs, and the Judg-
ment of the district court affirmed.
(90 N. J. lAW, 640)
(3HRISTT et al. v. NEW YORK CENT. & H.
R. R. CO. (No. 91.)
(Court of Errors and Appeals of New Jersey.
June 18, 1917.)
(Syllalv* Ip the Court.)
1. Evidence «=»244(ie) — Admissiors —
Aoent's Admission.
In a suit brought to recover damages for
property destroyed by fjre through the failure of
the defendant railroad to use reasonable care to
keep its right of way in New Tork state clear
of combustible materials, a written statement
made by the defendant's general manager (who
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CHRISTT T. NEW YORK CENT. A H. B. R. CO.
373
was charged with the duty of maintenance and
care of such rigrht of way) to the Public Service
Commission of New York (when it was conduct-
ini; a legally authorized investigration of the
fire) to the eSect that at the time of the fire the
defendant company had not cleared its right of
vay of combuatible materials was admissible in
tTidence against the defendant comi>&uy.
[Sd. Note.— For other cases, see Evidence,
Cent. Dig. { 933.]
2. BVIDSNOB ^=9246 — Adkissions — OmOER
OF COBPORATIOIT.
The general rule is that, when a corporation
authorizes an attorney to speak for it, the cor-
poration may be confronted by testimony as to
what was said by such attorney within the
scope of his authority.
[Ed. Note.— For other cases, see Evidence,
Cent Dig. }} 945-949.]
3. Evidence ®=3244(16)— Adiiissions— Statk-
MENTS OF AtTOKNET.
Where a railroad company had authorized
its attorney to act and speak for it at a legally
authorized hearing by the Public Service Com-
mission at which a fire along the company's
right of way, and the company's connection
therewith, was under investigation, evidence as
to such attorney's statements then and there
made with respect to combustible matter on such
right of way at the time of the fire are admissi-
ble in evidence against the company in a suit
involving that issue, subject to the latter's right
to disprove, rebat, or explain such statemenfai.
[E^ Note.— XW other cases, see Evidence,
Cent Dig. { 933.]
4. Payment «=>66<5>— Pbescmftion— Exfca-
NATIOW.
The presumption of payment or release aris-
ing from lapse of time is not necessarily a con-
clusive and absolute presumption. The lapse of
time gives rise to a conclusive and absolute pre-
sumption only when not satisfactorily accounted
for or explained. But when so accounted for or
explained the delay still remains as one of the
facts in the case upon which the ultimate ques-
tion of payment or release is to be determined
in connection with the other evidence.
[Ed. Note.— For other cases, see Payment,
Cent. Dig. § 188.]
6. Tbial €=3261 — Requested Instbuction —
Refusal.
When a party asks for an instruction which
is partly good and partly bad, it ia proper to
refuse it altogether.
[Ed. Note. — For other cases, see Trial, Cent
Dig. iJ 484, 660, 671, 673, 67^.]
Appeal from Supreme Court
Action by Charles R. C3iristy and others
against the New Tork Central & Hudscm
River Railroad Company. From a Judg-
ment of tbe Supreme Court for plaintifls
entered upon tbe verdict of a Jury at the
Hudson circuit, defendant appeals. Affirmed.
See, also, 92 AU. 395.
Vredenburgh, Wall ft Carey, of Jersey
City, for appellant. Edmund W. Wakelee,
of Englewood, and Wendell J. Wright and
Edward V. Thomall, both of New York
Gtj, for appellees.
TRENCHARD, J. This appeal brings up
for review a Judgment In favor of the plain-
tiffs below, entered upon the verdict of a
Jury, at the Hudson circuit. We are of the
opinion that the Judgment must be afDrmed.
The action was brought by the plaintiffs,
residents of New Jersey, against the defend-
ant railroad, to recover the value of certain
cut and piled timber at Ix>ng Lake West
Hamilton county, N. X., which was destroyed
by fire on September 27, 1908.
Tbe only questions raised on this appeal
are those points reserved In the rule to show
cause why a new trial should not be grant-
ed, which was discharged.
Tbe first challenges the admission In evi-
dence at the trial of a communication by
A. H. Smith, vice president and general man-
ager of the defendant company, dated Jan-
uary 6, 1909, addressed to the Public Service
Commission, Second district, state of New
York.
The situation was this: At the trial of the
present case the main issue was whether or
not the defendant company was negligent in
the maintenance and care of its right of way
in violation of its common dutgr to exercise
reasonable care to keep It clear of combusti-
ble matter, by reason of which negligence
the plaintiffs sustained the damages sued
for. The plaintiffs Introduced evidence tend-
ing to show that the right of way of the de-
fendant at and near where the plaintiffs*
lumber was piled was filled with combustible
materials. The plaintifls also put in evidence
section 72 of the Forest, Fish, and Game Law
of the state of New York (Oonsol. Laws, c.
19), which enacts, among other things, that :
"E?very railroad company shall, on such part
of Its road as passes through forest lands or
lands subject to fires from any cause, cut and
remove from its right of way along such lands,
at lea.st twice a year, all grass, brush or other
inflammable materials."
And it also provides that:
"The Public Service Commission must upon
the request of the forest, fish and game com-
missioner, and on notice to the railroad company
or companies affected, require any railroad com-
pany having a railroad running through forest
lands in counties containing parts of the forest
preserve, to adopt such devices and precautions
against setting fire upon its line in such forest
lands as the public interest requires."
It was also proven and admitted : (1) That
part of the forest preserve was in Hamilton
county; (2) that after the fire in question
the Public Service Commission of Uie Sec-
ond district of the state of New York, upon
tbe request of the forest, fish, and game
oommissloner, began an investigation Into
such fire to ascertain what the causes were,
and to what extent railroad operations were
responsible; (3) that the commission made
an order directing the defendant company
and others to show cause what precautions
were being used by them against setting fires
upon their respective lines in forest lands,
etc ; (4) that at such hearing the defendant
company wad represented both by its gen-
eral attorney and Its local attorney, and sub-
mitted to the commission a communication
in writing made by Mr. Smith, the vice presi-
dent and general manager of the defendant
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101 ATLANTIC REPORTER
(N.J,
company. It was evidence of this communi-
cation which the defendant contends was er-
ror requiring reversal. We think not
[1] The communication contained a state-
ment from which the Inference might proper-
ly be drawn that the defendant company, at
the time of the fire in question, had not
cleared its right of way of combustible ma-
terials, and the communication, having been
made by its general manager, who, It ap-
peared, was charged with the duty of main-
tenance and care of such right of way, was
admissible in evidence against the defendant
company. Halsey v. Lehigh Valley R. R.
Co., 46 N. J. Law, 26 ; Agricultural Ins. Co.
V. Potts, 55 N. J. Law, 158, 26 AU. 27, 637,
39 Am. St Rep. 637 ; Carey v. Wolff, 72 N.
J. Law, 510, 63 Atl. 270; Jones v. Mount
Holly Water Co.. 87 N. J. Law, 106, 93 Atl.
860.
It is next argued that there should be a
reversal because of evidence given of an oral
statement made by Martin E. McClary, the
local attorney of the defendant, before tbB
. Public Service Commission, at the hearing
above referred to. We think there is no
merit in this contention.
[2, 3] It satisfactorily appeared at the trial,
apart from Mr. McClary's statement, that
he was the defendant's local attorney, and
was instructed by the defendant company
to act and speak for it at the hearing re-
specting the defendant's relation to the fire
in question. The statement in question was
then and there made by him in pursuance of
his instructions. It was In ampUflcatlon of
the written statement of Mr. Smith, and was
that the condition of the right of way, with
respect to combustible matter, was "bad
and was one of the causes of the Are."
Now the general rule is that, when a cor-
poration authorizes an attorney to speak
for it the conwratlon may be confronted by
testimony as to what was said by sudi at-
torney within the scope of his authority.
Gallagher v. McBride, 66 N. J. Law, 360, 49
Atl. 582; Huebner v. Eric R. R. Co., 69 N.
J. Law, 327, 55 Atl. 273; King v. Atlantic
City Gas Co., 70 N. J. Law, 679, 58 Atl. 345;
Wall V. Hinds, 4 Gray (Mass.) 256, 64 Am.
Dec. 64; Luther v. Clay, 100 Ga. 236, 28
S. E. 46, 39 L. R. A. 95. And where, as here,
the defendant railroad company had author-
ized its attorney to act and speak for it, at
a legally authorized hearing by the Public
Service Commission at which the fire in
question, and the defendant's connection
therewith, was under investlRatlon, evidence
as to such attorney's statements then and
there made with respect to combustible mat-
ter on such right of way at the time of the
fire was admissible in evidence against the
company ih this suit involving that issue,
subject to the latter's right to disprove, re-
but, or explain such statements.
The last reason urged for reversal Is that
the trial Judge refused to charge as follows:
"Plaintiffs' right of action. If any, having ac-
crued September 27, 1908. the law of this Btate
presumes that plaintiffs' demands were paid or
released within one year thereafter. This pre-
sumption has not been rebutted, and the verdict
must be for the defendant."
The defendant's contention was and is that
the plaintiffs, when they invoked the Juris-
diction of a court of this state over such a
cause of action arising in New York, must
accept the limitations which would arise
against one prosecuting such a cause of ac-
tion which arose in this state, and that the
courts of New Jersey vrill presume that such,
cause of action has been released or settled
at the expiration of the period of one-year
limitation found In section 68 of our General
Railroad Act (P. L. 1903, p. 674). And since
that section only applies to railroads within
this state, the defendant filed pleas of pay-
ment and release In order to raise that ques-
tion.
Assuming that the defendant's contention
respecting the presumptl<m of payment or
release is sound to a certain extent, stiU the
refusal of the Instruction was right.
[4] The presumption of payment or re-
lease arising from lapse at time is not nec-
essarily a conclusive and absolute presump-
tion. The lapse of time gives rise to a con-
clusive and absolute presumption only whMi
not satisfactorily accounted for or explain-
ed, but, when so accounted for or explained,
the delay still remains as one of the facta in
the case upon which the ultimate question ot
payment -or release is to be determined in
connection with the other evidence. GuliCk
V. Loder, 13 N. J. Law, 71, 23 Am. Dec 711 ;
Blue V. £>verett, 66 N. J. Eq. 329, 86 Atl. 960,
and cases there dted.
At the trial. In order to meet the defend-
ant's pleas of payment and release, and to
account for and explain the delay of a few
days beyond one year from the time of the
fire, the plaintiffs proved that they bad not
l>een paid and had not released the defend-
ant They also Introduced evidence tending
to show that immediately after the fire they
put their dalm in the bands of their attorney
who had many Interviews and much corre-
spondence respecting it with the duly author-
ized attorney of the d^endant; that in the
course of these negotiations, and about two
weeks before the expiration of one year from
the time of the fire, the defendant's attorney
requested the plaintiffs' attorney to delay be-
ginning suit until a day named, whldi. It
appears, was one day beyond the one year
period ; that on that day the defendant's at-
torney Informed the piaiutifls' attorney that
further negotiations were useless, and within
a few days thereafter this suit was begun.
In tills state of the proofs the trial Judge
was bound to and did submit the question ot
payment and release to the Jury. So, too,
he was bound to refuse the request to charge.
[S] Even if It be assumed that the first
paragraph of the request was proper, clearly
the second paragraph, whidi called for a
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McDERMOTT t. WOODHOUSK
876
direction of a verdict for the defendant, was
improper. And wlien a party asks for an
instruction which la partly good and partly
bad, it Is proper to refuse it altogether.
Dederick t. Central Railroad Ca, 74 N. J.
Law, 424, 65 Att. 833.
The Judgment under review will be affirm-
ed, with costs.
(87 N. J. Bq. OS)
McDERMOTT v. WOODHOUSB. (No. 63.)
(Court of Errors and Appeals of New Jersey.
June 18, 1917.)
fSyllabu* hv the Court.)
1. CoBPORATioNS «=>562(1)— Insolvent Cob-
PORATiows — Stockholdeks' LiABiirrr.
The receiver of an insolvent corporation can
enforce a stockholder's liability for unpaid stock
issued as full paid only in the right of creditors.
[Ed. Note.— For other cases, see Corporations,
Cent Dig. {| 2265, 2266, 2268.]
2. CORPORATIONB ®=>23(^ST0CKH0I.DEE9.
The obligation of holders of unpaid stock in
a corporation issued as full paid is to pay so
much of what is unpaid on the stock as will
satisfy the claims of corporate creditors nnd
meet the expenses of winding up its affairs.
Cumberland Lumber Go- v. Clinton Hill Lumber
Mfg. Co,, 67 N. J. Eq. 627, 42 Atl. 585,iollowed.
[Ed. Note.— For other cases, see Corporations,
Cent Dig. { 877.1
3. Corporations €=»263(1) — Stockholdi&bs'
Liability— AscEBTAiNiNO.
The amount of a stockholder's liability on
unpaid stock must be ascertained in the forum
of the corporation's domicile, in a proceeding
to which the corporation itself is an indispensa-
ble party. Wetberbee v. Raker, 35 N. J. Eq.
SOI, followed.
[Ed. Note.— Fbr other cases, see Ck>rporations,
Cent Dig. ! 1065.]
4. Corporations 4s>262(2)— Stockholders—
Ljabilitt.
A stockholder is so far an integral part of
<the corporation that, in view of the law, he is
privy to the proceedings touching the body of
whidi be is a member. Where an assessment
for unpaid stock is made in a proceeding at the
dmnicile of the corporation to which the cor-
poration is a party, the stockholder cannot
•question the propriety or amount of the assess-
ment, although be may contend in a subsequent
Action against him personally to collect the as-
sessment that he is not liable at all.
[Ed. Note.— For other cases, see Corporations,
<3ent Dig. H 1077, 2273.]
H. CoRFORATiona «s>263(2) — Assessments'--
AMOtINT OF.
Tb» propriety and amount of an assessment
upon stodtholders to pay creditors are internal
affairs of the corporation with which the courts
.of another jnrisdiction will not intermeddle.
[Ed. Note.— For other cases, see Corporations,
-Cent Dig. K 831, 1066.]
-6. Corporations «=3259(2) — Stockholder's
LiABiLiTT— Enforcement.
A stockholder is not bound to pay an assess-
ment on his stock until the assessment is made
and he can know how much he has to pay.
When his liability has been ascertained it must
be enforced in a court of law uiilesa some ele-
-ment of equity Jurisdiction appears. Barkalow
T. Totten, 63 N. J ~ " " " "
McNaughton, 54
T. Totten, 63 N. J. Eq. 573, 32 Atl. 2; Hood v.
McNaughton, 54 N. J. ' '"" " ""
followed.
Law, 425, 24 AH. 497,
[Ed. Note.— For other cases, see C!orporations,
Cent Dig. H 1054, 2272.]
Appeal from Court of Chancery.
Bill by CSiarles M. McDermott, receiver,
against William Woodhouse, Jr. From an
order denying defendant's motion to strike
the bUl for want of Jurisdiction (99 Atl. 103),
defendant appeals. Reversed, and record
remitted to (Doort of Chancery for dismissal
of bilL
John A. Hartpence, of Trenton, for ajh
pellant James J. McGoogan, of Trenton,
for appellee.
SWATZEl, J. The appellant moved to dis-
miss the bill for want of equity. His motion
was denied, and he appeals.
The bill is a most extraordinary one. It
is a bin filed by a receiver in Insolvency of a
New Tork corporation, who was appointed
by oar Court of Chancery, and seeks to estab-
lish a stockholder's liability for stock issued
for property purchased, as Is said, at a gross
overvaluation. We pass over the informal
statements contained in the bill, and put
upon it the best face possible. The corpo-
ration Itself is not made a party. There is
nothing to show that a receiver has ever
been appointed in New York, the domicile
of the corporation. Nothing Is averred In the
bill which would Justify onr courts in ap-
pointing a receiver In Insolvency of a New
York corporation. The draftsman seems to
have conceived the notion that under oar
statute a receiver In Insolvency can be ap-
pointed for a foreign corporation by the
same procednre that Is anthorized in the
case of a New Jersey corporation. We men-
tion these difficulties because they are of so
fundamental a character that we ought not
to pass them unnoticed, and thereby appear
to Justify what seems by the averments of
the bill to have been an unwarranted inter-
ference by our conrts In the Internal affairs
of a foreign corporation. Probably the pro-
ceedings for a receiver were ex parte, and the
attention of the court was never called to the
fact that the corporation was not a New
Jersey corporation. The matter Is important
The bill seeks to do what can only be done
by a receiver in case he possesses all the pow-
ers of a statatory receiver in Insolvency, and
shows <Hi its face that the utmost powers he
conTd have would be those of a mere ancillary
receiver to gather in the assets in this state.
[1,2] To enforce a stockholder's liability
for unpaid stock Issued as full paid, the re-
ceiver can only act in the right of creditors.
By the c<mtract between the corporation and
the stockholders the latter have no further
obligation with respect thereto, bnt where
stock has been Issued for property at an
overvaluation, the stockholders may In a
proper case be held for the deficiency. But
their obligation is no greater than the ob-
ligation of stockholders whose subscriptions
were payable in cash, that is, to pay so much
of what is unpaid on the stock as will sat-
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101 ATIANTIC REPORTER
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Iflfy the claims of corporate creditors and
meet the expenses of winding up Its affairs.
Cumberland Lumber Co. v. Clinton Hill Lum-
ber Mfg. Co., 57 N. J. Bq. 62T to 629, 42 Atl.
685. In that case we reversed a decree
which ordered payment of the whole amount
remaining anpald, and held that only so
much should be paid as was necessary to
satisfy creditors.
[3] Since this is the limit of the stockhold-
er's obligation, it follows that the amount
must be ascertained by a tribunal which has
the power to ascertain the total amount of
the debts and the total amount of the assets
of the corporation. This cannot be done in
a forum where only an ancillary receiver-
ship is possible. It must be done In the for-
um of the domicile. The bill In the present
case, indeed, sets up an attempt to compel
creditors to bring in their claims and the
entry of an order barring creditors in the
insolvency suit As far as we know, the
only authority for such a proceeding is sec-
Hon 75 of the Corporations Act (0. S. p.
1648) ; but this can only apply to a New Jer-
sey corporation; our courts cannot force a
New York creditor of a New York corpora-
tion to submit his daim to our tribunals
under penalty of losing all tight to partici-
pate in the distribution of the assets. It Is
manifestly qtilte as necessary to ascertain the
total assets of the corporation as its total
liabilities in order to fix the amount needcrd
to pay creditors, and these assets can only
be finally ascertained in the courts of the
domicile to which assets may be remitted by
courts of other forums acting through an-
cillary receivers, as In Irwin v. Granite State
Provident Association, 66 N. J. Eq. 244, 38
Atl. 680.
From the necessity of ascertaining tbe
amount of assets and liabilities it follows
that the corporation Itself Is a necessary par-
ty to the suit. We said In Wetherbee v. Ba-
ker, 85 N. J. Eq. 501, at page 608, that tlie
oori)oratlon is indispensable as a party to a
suit In which the amount of its property and
the amount of its debts are Involved. Wheth-
er it would have been possible to serve pro-
cess on the corporation In this case we do not
know; generally a foreign corporation could
not be served, since few such corporations
in comparison with the total number do busi-
ness In this state or subject themselves to
its jurisdiction. In the present case the com-
plainant has not even made the corporation
a party to tlie bill. This defect of itself is
fatal.
[4] Again, in order to fix a stockholder's
liability, he must be bound by the proceedings
to determine the amount thereof. He cannot
be bound without some sort of notice, and
it can rarely happen in the case of a large
corporation that all the stockholders are sub-
ject to a single Jurisdiction, and It Is prob-
able that even in the case of a small corpora-
tion some of the stockholders reside in dif-
ferent Jurisdictions. That seems to be the
present case where the stockholders n re only
seven In number. For a time this difficulty
of subjecting stockholders to the jurisdiction
of a single tribunal seemed insuperable. It
was finally settled in Hawkins v. Glenn, 131
U. S. 319, 9 Sup. a. 739, 33 L. Ed. 184, ap-
plying the rule of Sanger v. Upton, 91 D. S.
56, 23 L. Ed. 220, that a stockholder Is so
far an integral part of the corporation that.
In the view of the law, he Is privy to the
proceedings toucliing the bo'dy of which he Is a
member. We have adopted this rule (Cumber-
land Lumber Ck>. V. Clinton Hill Lumber Mfg.
Co., 67 N. J. Eq. 627, 42 Atl. 585), after express-
ing some doubt as to its soundness In Meley v.
Whitaker, Receiver, 61 N. J. Law, 602, 604,
40 Atl. 593, 68 Am. St Rep. 719. See, also,
Gllson V. Appleby, 79 N. J. Eq. 590. 81 AtL
025. Where the assessment is made in a pr(»-
ceedlng at the domicile of the corporation to
which the corporation Is a party, the stock-
holder cannot question the propriety or
amount of the assessment, although he may
contend In a subsequent action against him
personally to collect the assessment that be
is not liable at alL Coe v. Armour Fertilizer
Works, 237 U. S. 413, 423, 35 Sup. Ct 625,
69 L. Ed. 1027.
The propriety and amount of the assess-
ment must be determined accorVilng to the
statutes and Jurisprudence of the domicile
(Glenn v. Liggett 135 U. S. 533, 648, 10 Sap.
Ct. 867, 34 L. Ed. 262), and when so deter-
mined are binding everywhere (Hancock
National Bank v. Famom, 176 U. S. 640,
20 Sup. Ct 606, 44 U Ed. 619). That the
practice has been to bring the action in the
courts of the domicile is sufficiently shown
by Easton National Bank t. American Brick
& Tile Co., 70 N. J. Eq. 722, 04 AtL 1095,
and the cases therein cited.
[SI These considerations make It clear
that the propriety and amount of an assess-
ment to pay creditors are Internal affairs of
the cort>oration with which the courts of an-
other Jurisdiction will not intermeddle. 11-
lustratlons are to be found in analogous
cases of assessments upon members of Mu-
tual Insnrauce companies. Condon v. Mutual
Reserve Fund Ufe Ass'n, 89 Md. 99, 42 Atl.
944, 44 li. R. A. 149, 73 Am. St Rep. 169;
Stockley v. Thomas, 89 Md. 663, 43 Atl. 766;
Swing V. Consolidated Fruit Jar Co., 74 N.
J. Law. 145, 63 Atl. 899.
[I] So far, then, as the bill is to be looked
on as a bill to compel an assessment upon
stockholders to pay debts, it falls tb make
out a case. It is equally futile as a bill to
compel a single stockholder to pay his in-
dividual liability. It is settled, on the clear-
est basis of reason, that the stockholder is
not boimd to pay until the assessment is
made and he can know how much he has to
pay. ScovlU v. Thayer, 105 U. S. 143, 26 L.
Ed. 968. The court in ScovlU v. Thayer was
dealing with the defense of the statute o£
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liOVEIiAND ▼. MoK£KV£R BKO&
S77
Umltadona. After saying that by the con-
tract between the stockholder and the com-
pany the stock was fully paid, and that no
suit could have been maintained by the com-
pany to collect on the unpaid stock, and that
It was only the right of creditors that made
the action maintainable, the court added:
"In thia case there was no obligation resting
<m the stockhcdder to pay at all until some au-
thorized demand in behalf of creditors was made
for payments. The defendant owed the creditors
nothing, and he owed the ccHopany nothing, save
such unpaid portion of his stock as might be
neoesBsry to satiafy the claims of the creditors.
Upon the bankruptcy of the company his ob-
ligation was to pay to the assignees, upon de-
mand, such an amount upon his unpaid stock
aa would be sufficient with the other assets of
the company, to pay its debt He was under
no obligation to pay any more, and he was
under no obligation to pay anything until the
amount necessary for him to pay was at least
approximately ascertained. Until then his ob-
ligation to pay did not become complete."
Following that ruling, the logic and Jus-
tice of which we do not question, no suit
can be maintained against the demurring
defendant until the amount of his liability
has been ascertained by proceedings In New
York. When that liability has been ascer-
tained It must be enforced in a court of law
{Barkalow v. Totten, 63 N. J. Eg. 673, 32
Atl. 2; Hood v. McNaughton, 54 N. J. Law,
425, 24 AtL 497), unless some element of
equity jurisdiction appears, not present In
this case as far as the bill shows.
Tlie decree must be reversed, and the rec-
ord remitted to the Court of Chancery in or^
der that the bill may be dismissed. The de-
fendant Is entitled to costs in both courts.
<W N. J. Law. 7W)
I/)VBLAND V. McKEEVER BROS., In&
<Conrt of Errors and Appeals of New Jersey.
June 18, 1917.)
1. Appeai awd Ebbob *=»1010(1)— Scope of
Review — Gbocn ds.
Grounds of appeal that the court refused to
srant motion for nonsuit upon the evidence for
plaintiff and refused to give judgment for de-
fendant are unavailing if there is any evidence
to support the finding of the trial judge.
[Ed. Note. — For other cases, see Appeal and
Error, Cent Dig. ff 3979-3981, 4024.]
2. Appeai. ano Ebrob ®=> 1004(1) — SooFB or
Review— 6BO0ND9— Excessive Damaoes.
Excessive damages can only be reduced, and
a verdict set aside because against the weight
of the evidence, on rule to show cause in the
court in which the trial was had ; even the
l/egislature is powerless to confer upon the
«ourt of errors and appeals the right to set
aside verdicts because against the weight of
evidence, or to reduce them because excessive.
[Ed. Note. — For other cases, see Appeal and
BSrror, Cent Dig. { 3944.]
Appeal from Supreme Court
Action by Benjamin F. Loveland against
McKeever Bros., Incorporated. Judgment
toT plaintiff, and defendant appeals. Af-
firmed.
James Mercer Davis, of Camden, for appel-
lant OrlflSn & Griffin, of Jersey City, foi
appellee.
PER CURIAM. The defendant Is the own-
er of Crab Island, situate In little Egg
Harbor Bay, Ocean county, N. J., on which
it has a plant for the rendering of menhaden
fish, caught In the Atlantic Ocean. In the
conduct of this business, the defendant em-
ployed the plaintiff, at a salary of $200 per
m(Kith, from the 22d day of July, 1911, un-
til the 24th day of July, 1915. From July
24, 1915, until March 31, 1916, the plaintiff
drew wages at the rate of $50 per month.
Plaintiff's salary not having been paid, suit
was entered against the defendant for the en-
tire amount accruing to the plaintiff from
the date of his employment until Ills dis-
charge on the date last mentioned, and, also,
the plaintiff sued for certain moneys which
be had expended on behalf of the defendant,
at its request, claiming in all a balance of
$7,015.84. The defendant filed an answer and
counterclaim. The answer set up that the
plaintiff agreed to devote bis exclusive serv-
ices to the care of defendant's plant; that
in violation of his agreement he neglected or
refused to perform those services for long
periods of time, and, Instead, devoted him-
self to private enterprises of his own, and
that defendant had paid plaintiff, pursuant
to the contract, various sums aggregating
$7,600. By way of counterclaim the defend-
ant alleged that the plaintiff wrongfully
engaged in private business of his own and
obtained the services of certain employes of
the defendant to assist him In It, and charged
their compensation to the defendant's pay.
roll; that plaintiff, at various times, used
a boat belonging to defendant in his private
business, and damaged the defendant there-
by; that plaintiff so negligently and care-
lessly performed his duties as superintendent
of defendant's plant that defendant sustain-
ed damage. The total amount demanded in
the counterclaim was $7,700. The case was
tried in the Burlington county circuit court
without a jury. The trial judge filed the
following memorandum:
"Carrow, J. I find that the plaintiff properly
performed his contract, and is entitled to recov-
er his unpaid compensation, less $90 for the use
of the 'Green Garvey' and $24 for the use of
defendant's men. The amount which I find is
due from defendants to plaintiff is $2,395.82."
From the judgment entered upon this find-
ing the defendant has appealed to this court
The grounds of appeal are as follows: (1)
Because the court refused to grant defend-
ant's motion for a nonsuit upon the evi-
dence for the plaintiff given at the trial; (2)
because the court refused to give Judgment
for defendant, although it should have d<me
so on the evidence given at the trial; (3)
because the amount of the judgment was
excessive; (4) because the finding of the
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101 ATLANTIC REPORTER
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court was against tbe dear weight of tbe
evidence.
[1] The first two grounds of appeal are
unaTalUng to the appellant If there be any
evidence to support the finding of the trial
Judge. It has been repeatedly held that this
court will not review the findings of fact in
a court below beyond ascertaining that there
was evidence to support such findings. See
Lamed v. MacCarthy, 85 N. J. Law, 689, 90
AtL 272; also EbeiAlng y. Mntlllod, Ckmrt of
Errors and Appeals, Mardi term, 1917, No.
137. An examination of the testimony re-
turned with the record shows that there
was evidence entitling the plaintlft to recov-
er at the close of bis case, and that the case
was in the same posture when both sides rest-
ed. Therefore the trial judge was justified In
denying the motion to nonsuit, and also In
finding for the plaintUf.
[2] The third and fourth grounds of ap-
peal are equally valueless to the appellant
B^cesslve damages can only be deduced, and a
verdict set aside because against the weight
of the evidence, on rule to show cause in
tbe court in which the trial was had. Even
the Legislature Is powerless to confer up-
on this court the right to set aside verdicts
because against the weight of evidence, or to
reduce them because excessive. Flanlgan v.
Guggenheim Smelting Co., 63 N. J. Law, 647,
44 Atl. 762.
The judgment under review moat be af-
firmed, with costa
(M N. J. Law, nu
HAXOR AND ALDERMEN OF JERSEY
CITY V. HUBER, CoUector.
(No. 116.)
(Court of Errors and Appeals of New Jersey.
June 18, 1917.)
1. Municipal Corporations e=>972(2>— Pcb-
uo Improvements — Special Absessusnts.
4 Comp. St. 1910, p. 5084, i 4a, relating to
the taxation of lands of counties and taxing dis-
tricts situated in other counties or taxing dis-
tricts, declares that such lands shall be subject
to taxation without regard to any buildings or
other improvements, while a subsequent section
declares that the lands of the respective coun-
ties, cities, and other agencies of tne state used
for tbe purpose of water supply shall be subject
to taxation by the respective districts in which
such lands shall be situated, at their true val-
ue without regard to any buildings. E«ld, that
an assessment upon a pipe line belonging to a
municipality other than the one maldng the as-
sessment must be made on the value of the land
alone, and not on the value of the improve-
ments.
2. MUNICIPAI, COBPORATIONB «=>974(2)— TAX-
ATION— Assessment— Delay in Taxing.
Delay of municipal authorities In question-
ing an assessment made by a second municipal-
ity upon a pipe line belonging to the first will
not prevent a subsequent attack on such assess-
ment, the doctrine of laches applicable to indi-
viduals not being appropriate.
[Ed. Note. — For other cases, see Municipal
Corporations, Cent. Dig. i 2085.]
3. Municipal Corporations *=»9T2(2)— Pub-
uo Improvements— What Constitute.
A Dunicipality constructed an aqueduct,
not as a busiuess venture, but to care for the
present and future needs of its population, and
for that reason made it larger than required
at the present. Held, that though the munici-
pality disposed of tbe excess water, yet, as the
aqueduct was not constructed as a business ven-
ture, it was entitled to the exemption contained
In 4 Comp. St. 1910, p. 6084, § 4a, and so could
be assessed only on the value of the land, and
not the improvements.
Appeal from Supreme Court.
Certiorari by the Mayor and Aldermen of
Jersey City against Lewis P. Hnber, Collec-
tor, etc., to vacate an assessment for taxes.
From a judgment vacating assessments, de-
fendant appeals. Affirmed.
Tbe following Is tbe opinion of the Sa>
preme Court:
Peb Curiam. [I] The assessment by the
borough of Secaucus upon the pipe line is ille-
gal. The statute (C. S. 5084, 4a) authorises the
taxation of real estate without regard to any
buildings or other improvements on such lands.
This was meant to exclude from the valuation the
value added by the improvements. The statute ao-
thorizes the levying of a tax upon the land only
of another municipality. 4 C. S. 6085.
[2] It is argued that the laches of the officials
of Jersey City in failing to attack these assess-
ments must result in a denial of the city's claim
upon that ground. But the rule is otherwise in
the public interest, and the doctrine is settled
that the laches of an official, charged with the
performance of a public duty, cannot operate
to bar the municipality he serves from asserting
its legal rights. Jersey City v. North Jersey
St. Ry. Co., 43 N. J. Law, 392, 61 Atl. 95.
Tbe result is that the assessments for taxes for
the years in question must be va<»ted.
Harlan Beeson, of Hoboken, for appellant.
John Milton, of Jersey City, for respondent.
PER CURIAM. The judgment should be
affirmed, for tbe reasons stated by tbe Su-
preme Court In Its per curiam opinl<»i.
[3] It Is argued here tbat the land and
pipe Une are not exclusively used for water
to be supplied and used in Jersey City, but
tbat part of tbe water obtained through It
Is sold to corporations and individuals out-
side of the taxing district, and therefore the
exemption falls. To this we do not agree.
The aqueduct was not constructed as a busi-
ness venture, but to take care of the present
and future needs of the dty and its inhabi-
tants. The pipe was made larger than was
Immediately necessary In order to provide for
growth of the dty. The sale of water not at
present needed is merely Inddental, and the
fact of such present sale does not negative
the use of tbe land for tbe purpose of public
water supply and of the accompanying ex-
emption, so long as said land Is reasonably-
needed for tbe present or reasonably antici-
pated future supply of Jersey City for purdy
public purposes. In Newark v. Clinton, 49 N.
J. Law, 370, 8 Atl. 296, there was a separa-
tion between tbe tract used for public pur-
poses and tbe rest of the land, which is not
the condition here.
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BOUQUET ▼. HAOKENSACE WATER CO.
879
W N. J. L«w, m)
BOUQUET ▼. HACKENSAOK WATER CO.
(No. 21.)
<Conrt of Errors and Appeals of N«w Jarsey.
June la 1917.)
(BtfUabua by the Court.)
L Ndibawck e=»72— Public Nuisarcm— Ac-
tion BY iNDIVlDtJAL.
In _ order that an indiridnal may maintain
an action for a Dublic nuisance, be must prove
that he thereby suffers a particular, direct, and
■ubstuitial Injury (dtinK 19 E. R. C. 263).
rE3d. Note. — For other cases, see Nuisance,
Cent Dig. {{ 184-169.]
2L Notbamcib «=»72 — Injtjbt to Rxfabian
OwNEB— Spicial Ihjtjby.
A riparian owner on a navigable stream suf-
fers no peculiar injury as such because the
stream has been made leas pleasant for boating,
fishing, and bathing. The injury to him is the
same as that to any other member of the pub-
lic, and for the reason that his right qua ripa-
rian owner is that of access, and not a spedal
riKht to use the stream in any different manner
than others may use it.
rEd. Note.— For other cases, see Nuisance,
Cent Dig. » 164-169.]
3. Afpkai. and Ekbob ®=>1033(8y— Nokinai.
Dailaoks— Reterral.
A judgment for appellant for nominal dam-
ages, although erroneous, will not be reversed
if he was not entitled to any damages.
[Ed. Note. — For other cases, see Appeal and
Error, Cent Dig. S 4060.]
White and Taylor, JJm dissenting.
Appeal from Supreme COurt
Action by Mazlme Bouquet against tbe
Hackensack Water Company. Judgment for
plaintiff for nominal damages, and he ap-
peals. Affirmed.
Arthur T. Dear, of Jersey City, for appel-
lant Edwin F. Smith, of Jersey City, tor
appellee.
PARKER, J. Appellant, plaintiff Mow,
claims to be legally aggrieved by tbe action
of the trial Judge in directing a verdict in
his favor for nominal damages of six cents.
His case, as finally submitted, was that he
owned land on tbe easterly side of the Hack-
ensack river, a navigable stream, on which
land was a dwelling house occupied by him
and used for the keeping of summer board-
ers; and that prior to the^ summer of 1914
he had many boarders and did a profitable
business, but in that year and thereafter the
water in tbe river in front of his place was
fouled by the act of the defendant, so that
it was not so pleasant as it had been to
look at or so available for fishing, boating,
and swimming, and that in consequence the
boarders, who had been attracted by the
view and tbe boating, fishing, and swimming,
were caused to remain away, whereby plain-
tiff suffered material loss. There was some
claim of an odor from tbe water, but this
was disregarded at the trial and is not now
urged. The view taken by the trial court was
that on the assumption that plaintiff's title
extended to high-water mark in the river, the
rights, if they existed, of swimming in the
river, boating on it, and looking at the view,
were not special rights of plaintiff qua ripa-
rian owner, or of his guests claiming under
his license, but were rights of a purely pub-
lic character, and that in their Infringement
plaintiff suffered simply as a member of the
public and could not claim special damage
in a private action.
[1, 2] Our examination of the case satisfies
as that plaintiff was in no way legally In-
jured by this ruling. It Is not claimed that
he was entitled to recover in this suit as a
member of the public, for the deprivation of
benefits because his guests found the river
no longer pleasant for boating, fishing, or
swimming. The claim must rest, if at all, on
the inj«u7 resulting to plaintiff as an abut-
ting owner. But the right of an owner of
the ripa of navigable water is that of access;
and U that be unlawfully interfered with he
may maintain a special action. Stevens v,
Paterson & Newark R. R. Co., 34 N. J. Law,
532, 653, 3 Am. Rep. 269. Apart from this,
be has no iiecullar ri{^t to the use of the
water or of the shore. 34 N, J. Law, 642,
543, 3 Am. Rep. 269; Whitmore v. Brown,
102 Me. 47, 65 Aa 516, 521, 9 L. R. A. (N. S.)
868. Plaintiff, as owner of land on or near
the river, may have more occasion to make
use of the public rights of boating and (if
there be such rights) of fishing and bathing,
but those rights remain public and not pri-
vate.
The rule, as we understand it, is this:
That in order that an individual may main-
tain on action for a public nuisance, he must
prove that he thereby suffers a particular,
direct, and substantial injury. 19 B. R. C.
263. The same rule in different phraseology
will be found in the Mehrhoff Case, supra,
61 N. J. Law, 66, at page 67, 16 Atl. 12. It
may be conceded that plaintiff's injury was
substantial; there is more doubt whether it
was direct, but that may also be conceded
for the sake of argument; it was not, how-
ever, particular, as we have already seen.
The result is that the trial Judge would have
been Justified in awarding a nonsuit or in
directing a verdict for the defendant All
this has been predicated on the assumption
that plaintiff exhibited a title running down
to high-water mark. The case does not, in
our Judgment, show that be gave proof of
any such title. His deed, offered in evi-
dence, called for certain lots on a designated
map (which map was not put in evidence),
and the only mention of the river was con-
tained in a clause in the deed reading as
follows:
"Together with all right, title and interest of
the party of the first part in and to the laud
lying between high-water mark of the Hacken-
sack river and tbe middle of Riverside avenue,
as shown on said map, lying directly opposite
or in front of such of the property above de-
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101 ATIiANTIO REPORTER
(N.J.
■cribed as baa a frontam on aaid Riverside
avenue."
There was no proof ot what that right,
title, and Interest was, or that there was any
at alL It afflrmattvely appeared that there
was a strip several feet wide between River-
side avenne and the river. If plaintiff did
not own this strip, his right even to access
to the river was no better than that of an
owner of land a long distance away, or one
not an owner at alL But as plaintiff might
peradventure have shown some title as a
riparian owner, we have preferred to treat
the case as if such were the fact.
[31 Inasmuch as plaintiff was not harmed
by the direction in his favor of a nominal
verdict, the Judgment will be affirmed. Sy-
pherd v. Myers, 80 N. J. Law, 321, 70 AU.
340; Bntterhof ▼. Butterbof. 84 N. 3. Law,
28S, 86 Aa 394.
WHITE and TAYLOR, JJ„ dissenting.
(SO N. J. Law, 6S«)
MORE et aL y. RICHARDS. SAM32 v. MIL-
NER. SAME V. SILVER.
(Court of Errors and Appeals of New Jersey.
June 18, 19170
(Bylldbui ly t%e Court.)
t, COKPOBATIONS "SsaSe? — INSOLVENCY— SET-
OFF AND C!0UNTEBC£AIIf — UNLIQUIDATED
DEitAN D— Statute.
The defendants agreed in writinK to produce
from their respective farina tomatoes, of a giv-
en quality, by a certain time, and deliver same
to the vendee, and before the period of delivery
mentioned in the contract the vendee was de-
clared insolvent, and receivers were appointed
therefor.
In a suit by the receivers to collect a daim
aeainst the defendants for fertilizer, which
claims were certain in amounts and admittedly
correct, the defendants set up by way of set-off
their unliauidated demands aeainst the insol-
vent company, for failure to receive the toma-
toes, held, that being unliquidated the demands
were not capable of set-ofF under the corporation
act, which accords the right of set-off only to
claims arising out of mutual dealings.
[Ed. Note.— For other cases, see O>rporatlon8,
Cent. Dig. i 2287.]
2. COBPOKATIONS €=»567— INSOLVENCY— SET-
OFF AND Counterclaim— Sales— Default
OF Buyer— Tender.
The defendants had not perfected their right
to sue because of failure to deliver or a tender
of delivery.
[Ed. Note. — For other cases, see Corporations,
Cent Dig. i 2287.1
8. COBPOBATIONS «=»587— IWaOLVENOT— S»P-
Off — CLAiirs— Pbeferencb.
The recognition of unliquidated claims not
entitled to any legal preference against the re-
ceivers would accord to such claims a prefer-
ence in the distribution of the assets of the in-
solvent company, contrary to the provisions and
spirit of the insolvent act.
[Ed. Note. — For other cases, see Corporations,
Cent. Dig. t 2287.1
Black, White, and Heppenheimer, JJ., dis-
senting. I
Appeal from C^coit Court, Cnmberland
CJonnty.
Suits by Richard M. More and others, re-
ceivers for B. S. Ayars & Sons Company,
against Charles Q. Richards, Simon Mllner,
and Charles Silver, wherein defendants in-
terposed a plea of set-off. Judgment for
plaintiffs, and defendants appeaL Affirmed.
Alvord. & Tuso, of Vlneland, for am>ellant8.
Jamea S. Ware, William A. Logue, and Wal-
ter H. Bacon, all of Bridgeton, for appellees.
MINTURN, J. The respective defendants
in these three suits are sued by the receivers
of the B. S. Ayars & Sons (Company, upon con-
tracts, similar in form and substance, entered
into between that company during Its active
existence with each of the defendants. The
company sold the defendants quantities of
fertilizer for their respective farms, and in
turn entered into the agreements in question,
whereby the defendants respectively contract-
ed "to plant and thoroughly cultivate" and
to deliver to the company spedfled acreages
of tomatoes, of a specified quality, during
the season of 1913, and to receive from the
company therefor $8.25 per net ton.
The fertilizers were delivered, but the to-
matoes were not because the company before
their fruition had become insolvent, and had
gone into the hands of the present plaintiffs,
as receivers. The receivers brought suits to
recover for the agreed price of the fertilizers,
regarding which no question was made. The
defendants Interposed pleas of set-off, where-
by they alleged that they were damnified by
the failure of the company to execute its con-
tract, by accepting delivery of the tomatoes,
to an amount greater than the agreed price
of the fertilizers, which damage they claim
should present a legal set-off to the plain-
tiffs' claim.
No question is made that the tomatoes were
raised, and that in every essential, but the
fact of delivery, the defendants complied with.
their contract Upon this assumption a jury-
was dispensed with at the circuit, and by
consent of counsel the legal questions arising
upon the facts were submitted to the court.
It was conceded that the tomatoes matured
from day to day after August 1, 1913, and
that the receivers .were appointed July 21,
1913, and that on July 28, 1913, a restraining
order was made by the C!ourt of Chancery,
enjoining the company from transacting busi-
ness, except through Its receivers. It was
also In evidence that the receivers did not
operate the company's canning factory. Upon
these facts the court found for the plaintiffs,
from which determination these appeals are
fallen.
It is argued that the Ayars Company, In
its sale of fertilizers, was the agent of anoth-
er company, known as the Tygest Company.
The trial court, however, found it unneces-
sary to Interpolate this fact into the Issae,
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STATE V. HOP
881
but disposed of the questions upon tbe con-
crete inquiry, whether under the facts stated
an action will He against the receivers.
fl] It Is apparent that when the receivers
were appointed, these contracts had not ma-
tured, and therefore no delivery had been
made, and that no tender of the tomatoes was
thereafter made. The case therefore Is with-
in the narrow compass of an nnllquidated de-
mand, which the defendants seek to offset
against a distinct Independent and liquidated
demand, which the plaintiffs as receivers are
called upon vlrtute ofBcU to collect for the
purpose of administering the affairs of an
Insolvent corporation, whose liability for the
claim In question at the time of adjudicated
Insolvency was not fixed.
The manifest effect of a Judgment against
the receivers, under the drcnmstances, is to
single out these defendants among the credi-
tors, and concede to them a preference upon
claims in no wise distinguishable from the
great body of unpreferred claims, and accord
them a preferential status, conspicuously op-
posed to the letter and spirit of the law
which liquidates such claims upon a basis
of equality, In the distribution of assets. O.
S. p. 1652, 1 86; Lehigh v. Stevens, 63 N. J.
"Eq. 107, 51 Atl. 446; Doane v. MlUvllle Ins.
Co., 45 N. X Bq. 274, 17 Atl. 625.
[2] It Is equally obvious, upon well-settled
principles, that In order to acquire a legal
status for the purpose of maintaining their
suit against the receivers, and of pitting
them in the category of vendees, or the legal
representatives of vendees, who have repudi-
ated their contracts, the defendants should
liave tendered performance or delivery of
the subject-matter of the contracts, after
the period provided In the contracts had ar-
rived. Florence Mining Co. v. Brown, 124
TJ. S. 385, 8 Sup. Ct 531, 31 L. Ed. 424 ; Peo-
ple V. Globe Mutual Ins. Co., 91 N. Y. 179.
It is to be observed that the corjwratlon.act
(section 66) provides that in cases of mutual
dealings between the corporation and its
creditor, Just set-offs may be allowed "ac-
cording to law and equity."
The situation here disclosed presents no
appearance of mutual dealings, upon which
the receivers might have exercised their
Judgment In dealing with the claims upon
the basis of mutual set-offs, as contemplated
by the statute; and in this connection It Is
also to be observed that the claims In ques-
tion were not presented to the receivers upon
oath, for administration as required by sec-
tion 76 of the corporation act (2 Comp. St.
1.910, p. 1648), which requires every claim
against an insolvent corporation to be pre-
sented to the receiver, in writing, under
oath.
[3] Quite obviously, therefore, the effort Is
to obtain by Judgments against the recelv-
ei8 a legal status which will accord to the
delendants a preference in the distribution
of corporate assets, superior to the status
accorded by law to the ordinary claimant.
The case is not like Bosenbaum v. Credit
System Co., 61 N. J. Law, 543, 40 Atl. 591,
where no injunctive order restrained the
defendant from transacting business, and
permitted the plaintiff to continue his serv-
ices under the receivership, thereby conced-
ing to him a legal status which la not pre-
sented by the record before us.
The result of these considerations Is that
the Judgment of the trial court must be af-
firmed.
BLACK, WHITE, and HBPPBNHBIMBE,
JJ., dissent
(90 N. J. Law, 390>
STATE V. HOP.
(Supreme Court of New Jersey. June 22, 1917.)
(ByOabut hy the Court.)
L CannNAi, Law <8=»1105(1) — Warr ot Eb-
BOK— CERTnnCATION OK RECORD— REVIKW.
In order that a defendant may have the
benefit of section 136 of tbe Criminal Procedure
Act (2 Comp. St 1910, p. 1863), the trial judge
must, in addition to the formal and ordinary
return to a writ of error, certify that the pro-
ceedings transmitted b^ him to the court of re-
view comprise tbe entire record of the proceed-
ings had upon trial; and where the defendant
neglects to obtain such a certificate, the review
is limited to alleged errors arising on the face
of the record itself, or upon bills of exceptions
duly taken.
[Ed. Note.— E\>r other cases, see Criminal
Law, Cent Dig. { 2887.]
2. CBnaRAi, Law (S=>968(8), 1044— Abbbst or
Jtjdombnt — Motion— Evidence.
A lack of sufficient evidence to make out the
case charged in tbe indictment is not a ground
for arresting Judgment. In order to raise such
a question, there should have been a request to
direct an acquittal, or to charge in conformity
with the contention.
[Ed. Note. — For other cases, see Criminal
Law, Cent Dig. H 2437, 26723674, 2676.]
Ekror to Court of Quarter Sessions, Hud-
son County.
Sam Hop waa convicted of sodomy, and he
brings error. Afilrmed.
Argued February term, 1917, before
TBE)NCaiABD and BLACK. JJ.
Charles El. S. Simpson, of Jersey City, for
plaintiff in error. Robert S. Hudspeth, Pros-
ecutor of the Pleas, of Jersey City, for the
State.
TRBNCHARD, J. The d^endant below
was convicted In the Hudson quarter sessions
court on an Indictment for sodomy.
[1 ] The return to the writ of error is only
the formal and ordinary return. There is
no certificate by the trial Judge that the
proceedings transmitted by him to this court
comprise the entire record of the proceed-
ings had upon the trial, such as is required
to obtain a review under section 136 of the
Criminal Procedure Act (O. S. p. 1863). Our
review is therefore limited to alleged errors
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101 ATLANTIC REPORTER
(N.J
arlslDg aa tbe face of the record itself, or up-
on bills of exceptions duly taken. State v.
Webber, 77 N. J. Law, 580, 72 Atl. 74.
There Is no bill of exceptions, and tbe only
assignment of error is:
"Because the court denied the motion made
on behalf of the defendant before Judgment was
announced for an arrest of judgment."
[2] We are of the opinion that such motion
was properly denied. The sole contention
made in support of the motion Is that there
was not sufiBclent evidence to support the
conviction. But a lack of sufficient evidence
is not a ground for arresting Judgment In
order to properly raise such a question, there
should have been a request to direct an ac-
<iuittal or to charge in conformity with the
contention. Powe v. State, 48 N. J. Law, 84,
2 Ati. 662; State v. Kelly, 84 N. J. Law, 1,
87 Atl. 128. No such request was made.
However, in order to see that no injustice
has been done, we have looked into the ques-
tion argued, and find no merit in it
The judgment of the court below will be af-
firmed.
(90 N. J. Law, UO
PETER BREIDT BREWINa CO. v. WEB-
ER. (No. 57.)
(Court of Errors and Appeals of New Jersey.
June 18, 1917.)
liANDLOBD ARD TKNANT <S=>115(1)— MoNTH TO
Month Tenancy — Construction of Lea7e.
Under a lease of a saloon at rental of $100
per month, the letting is one from month to
month, and the fact that the tenant annually ap-
plies and pays for a license in compliance with
lease does not change the terms of the letting
to one from year to year.
[Ed. Note.— For other cases, see Landlord
4Uid Tenant, Cent Dig. $ 391.]
White and Taylor, JJ., dissenting.
Appeal from Supreme Court.
Action by the Peter Breidt Brewing C!om-
pany against Fred Weber. From Judgment
for plaintiff, defendant appeals. Reversed,
and venire de novo awarded.
William R. Wilson, of Elizabeth, for appel-
lant. John J. StanUer, of Elizabeth, for
appellee.
KALISCH, J. The fundamental question
presented here is whether the trial Judge was
warranted, under the facts and circumstances
of this case, in deciding as a matter of law
that an agreement of letting between the
parties was one from year to year and re-
quired a three months' notice to terminate.
The agreement between the parties, which
is in writing, was entered into by them on
the 10th day of June, 1910. By that instru-
ment it appears that the brewing company
agreed to let the premises therein mention-
ed "to the appellant at a monthly rent of
one hundred dollars, payable in advance,"
and that the appellant agreed "to pay a
monthly rental for the premises of one hun-
dred dollars ($100.00) per month, payable in
advance." The premises were let to tbe
appellant for the saloon business. The brew-
ing company by the terms of this agreement
obligated Itself to put in a new front and
to make such repairs and innovations on
the Interior as would make the premises suit-
able for the saloon business. The appellant
obligated himself to apply for a license or
transfer of the existing license to the ex-
cise board to conduct the business of retail
liquor dealer on the premises. On the trial
of the cause it appeared that on the 2Sth
day of July, 1910, the appellant procured the
license troia the board of excise, and that he
renewed the same annually, the last renew-
al b^ng from July 26, 1915, to July 25, 1916.
It further appeared that the appellant
paid an annual license fee of $500, and that
the brewing company spent a considerable
sum of money in putting the premises in
condition for the conduct of tbe saloon busi-
ness. On the 1st day of November, 1915,
the appellant vacated the premises, having
prior thereto given 30 days' notice to his land-
lord of his intention to vacate on the day
mentioned as is required by law to be given
to terminate a tenancy from month to month.
The error complained of by appellant is
presented by exceptions taken to that part
of the court's diarge in which he defines the
nature and extent of the term agreed on by
the parties.
Tbe court appears to have assumed that,
because appellant paid a saloon license fee
of $500 year after year from June, 1910,
to July, 1915, that this had the legal effect of
fixing the term of the lease from year to year.
And it was in this view he charged the Jury
that the tenancy was not a monthly one, and
that the appellant could not relieve himself
from the obligations of the lease by giving
one month's notice to quit to his landlord.
But this view is clearly untenable. The
written agreement entered into by the parties
In tbe present case does not show an annual
rental reserved, and this circumstance, ac-
cording to StefCens v. Earl, 40 N. J. Law,
137, 29 Am. Rep. 214, is a distinctive feature
of a yearly letting, but, on the contrary, the
writing shows that only a monthly rental
was reserved, and in these express terms,
"and to pay a monthly rental for the store
or first floor and the basement underneath
same, of one hundred ($100) dollars per
month, payable in advance." Concerning
such a situation Judge Reed, in the case cit-
ed, 40 N. J. Law, on page 137, 29 Am. Rep.
214, said:
"But where there is no such letting [yearly],
and there is no evidence but the mere fact of
payment at intervals of a week or a month, the
implication is that the renting ia a monthly or
a weekly one, just aa the payment is monthly
or weeldy."
The letting in the present case was mani-
festly a monthly one, and was subject to
be legally terminated by either party giving
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SECURITT TRUST CO. ▼. EDWARDS
383
one month's notice. The fact that the tenant
made a yearly application for a license to
conduct his baslness did not have the legal
effect to change the terms of the letting. The
rights and obligations of the parties must be
determined by the terms of the contract
of letting. This was apparently not done.
The Judgment will be reTersed, and a venire
de novo awarded.
WHITE and TAYLOR, JJ., dissent
(90 N. J. Law, ETt)
SEX3URITY TRUST CO. t. EDWARDS,
Comptroller. (Na 9T.)
(Oonrt «t Eirrors and Appeals of New Jersey.
Jmie 18, 1917.)
(SyUabu* 6y tk« Court.)
Taxation «=»898 — Succession Tat — Kjb-
KAiNOEB— Suspension.
Under section 3 of the Succession Tax Act
of 1909 (Comp. St. 1910, p. 5301), where there
are contingent or executory interests dependent
upon a power of appointment, the appraisal and
taxation thereof is suspended until the exercise
of the power.
Appeal from Supreme Court.
Certiorari by the Security Trust Company,
executor, etc, against Edward I. Edwards,
Comptroller, etc. From a Judgment of the
Supreme Court affirming on certiorari a suc-
cession tax on life interests In personalty
and also a tax on Interests In remainder,
subject to a testamentary power of appoint-
ment, the prosecutor appeals. Affirmed In
part and reversed in part
Ralph E. Lum, of Newark, for appellant
Theodore Backes, Asst Atty. Gen., for ap-
pellee.
PARKER, 3. So far as concerns the tax
upon the life interests, all questions raised
herdn were determined by the Supreme Court
in the case of Maxwell v. EXlwards, 99 Atl.
138, the Judgment In which case has been
affirmed by this court at the present term.
On this branch of the case the Judgment af-
firming the tax will be here affirmed.
With respect to the Interests in remainder,
the respondent's counsel concedes, quite prop-
erly, that there should be a reversal. The
win of Howard S. Collins, the testator, made
Identical provision for each of his two daugh-
ters by bequeathing the residuary estate to a
trustee, upon trust to pay the net income of
one-half thereof to each daughter for life—
"and on her death to pay over, transfer and
convey said part of said residue, with any in-
come not paid to ber, to the person, persons,
corporation or corporations that she may have
desigiiatcd and appointed bv her last will to
take the same, or, in default of a valid exer-
cise of her by will of the power of appointment
herein conferred, to those persons who under
the statutes of distribution of the state of Con-
necticut in force at the time of ber death would
be entitled to succeed to ber intestate estate in
the proportions therein specified."
The residue was appraised at $66,905.34
and the value of the life interests bequeath-
ed in trust at $38,178.38, which latter
amount, or the balance thereof after deduct-
ing the statutory exemptions, was made the
basis of calculation for a tax of 1 per cent
as property transferred to children. Section
1, par. 4, of act of 1909 (C. S. p. 5301), as
amended by P. L. 1914, pp. 267, 269. The
remainder of the residuary estate, or $28,-
726.96, was made the basis of a S per cent
tax presently imposed as subject to the gen-
eral rate prescribed In the same paragraph.
So far as relates to this remainder, the comp-
troller seems to have disregarded the provi'
sions of section 3, which deals with estates
in expectancy of a contingent or defeasible
character, and the particular life estates sup-
porting them. Where there is a power of ap-
pointment the statute provides that:
"The appraisal and taxation of the Interest or
interests in remainder to be disposed of by the
donee of power shall be suspended until tho
exercise of the power of appointment, and [they]
shall then be taxed, if taxable, at the clear
market value of such property, which value of
such property shall be determined as of the
date of the death of the creator of the power."
It seems quite plain that in obeying this-
mandate, the tax on the Interests in remain-
der will normally await the termination of
the particular estate; and counsel urge, a»
a ground of invalidity of such tax, that it
becomes impossible for the executor or trus-
tee to transfer shares in New Jersey corpora-
tions until that time, without submitting Uy
the requirement of section 12 for payment of
full 6 per cent tax, which was upheld In
Senft v. Edwards, 85 N. J. Law, 67, 88 Atl.
1026, or depositing a 5 per ceat. tax with
the comptroller and taking out a waiver, as-
provided in chapter 58 of the Laws of 1914.
These provisions appear to be aimed particu-
larly at the transfer of the legal estate In
stock to a purchaser, or the like, rather than
at the particular succession of a legatee in
remainder. There is also the provision con-
tained in the last paragraph of section 3,
permitting the compounding on equitable
terms of a tax not presently payable, which
Is evidently the "compromise" mentioned in
Senff V. Edwards, supra. The statutory
scheme is not obscure. If the executor wish-
es to sell the stock, without waiting for the
spedflc assessment based on Interests cre-
ated by the will, it can be done by paying
the 6 per cent tax under section 12, or de-
positing it under the act of 1914, page 97,
subject to refund of excess when later as-
certained ; or by paying the tax on the par-
ticular interests as presently due, and com-
promising that against the remainders upon
an equitable ascertainment of its present
worth, according to section 3. We are unable
to see that this scheme gives rise to any un-
just or unconstitutional discriminations. It
may be said that the point is not before us
except as contained in the reasons for setting
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(N.J.
aside a Ave per cent, tax on remainders pres-
ently payable. As a condition of permitting
sale of securities, sach tax has tlie support of
Senff T. Edwards in the Supreme Court As
a pure tax, irrespective of sucb sale, it is
not warranted by the statute, and should be
set aside. To this extent the Judgment of
the Supreme Court is reversed.
<90 N. J. Law, ESS)
SECURITY TRUST CO. t, EDWARDS.
State Comptroller.
(Court of Errors and Appeals of New Jersey.
Juno 18, 1917.)
(Byllabui by the Court.)
Taxattow «=»8'37(2)— Tkansfeb Tax— Stock
— Stattttes.
The interest of a nonresident deceased pledge
or of stock of a New Jersey corporation in su^
stock is subject to the transfer tax imposed by
the act of 1000 (P. U p. 3:^5; 4 Comp. St. 1910,
p. 5301) as amended in 1914 (P. L. p. 207).
[Ed. Note.— For other cases, see Taxation,
Cent. Dig. { 16S2.]
Appeal from Supreme Court
Certiorari by the Security Trust CSompany,
executor of Leonard Morse, deceased, against
Edward L. Edwards, State Comptroller.
From a Judgment of the Supreme Court (89
N. J. Law, 396, 99 Aa 133), setting aside an
Inheritance tax, the Comptroller appeals.
Reversed, with direction for the entry of an
order below at&rmiug the ussesement tax.
John W. Wescott Atty. Gen., and John R.
Hardin, of Newark, for appellant Lum,
Tamblyn & Colyer and Ralph E. Lum, all of
Newark, and Joseph If. McCloy, of New York
City, for appellee.
TRBNCJHARD, J. This is an appeal by
the state comptroller, defendant in certiorari,
from a Judgment of the Supreme Court set-
ting aside an inheritance tax levied under the
act of 1909 (P. L. p. 325; Ck>mp. Stats, p.
6301), as amended in 1914 (P. L. p. 267). The
prosecutor below. Security Trust Company,
a Connecticut corporation, is the executor of
the win of Leonard Morse, who died resident
in Hartford, Conn., on April 2, 1915. Morse
left no real estate whatever, either within or
without New Jersey. His gross estate
amounted to $64,523.85, and by the will went
entirely to collaterals or those unrelated to
the testator. The estate consisted largely of
certain securities, viz. corporate stock and
four bonds appraised in the aggregate at
$63,285.50. All of these securities had been
pledged by Morse in his lifetime, accompanied
by a power of attorney in blank, to the Phoe-
nix National Bank of Hartford, Conn., to se-
cure bis promissory note of $37,600, upon
wMch there was due $5.21 of interest togeth-
er with all of the principal amount, at the
time of bis death. It does not appear that
this note had been called prior to the death
of Morse, or that the pledgee had caused any
of the secnrities to be transferred to it or
that any demand had been made upon him
prior to death for the payment of the note.
Among the securities so pledged were New
Jersey stocks appraised in the aggregate at
$28,249. The comptroller appraised the New
Jersey stocks at the figures above mentioned,
and the decedent's interest in the New Jersey
stocks at the sum of $11,507. This amount
was obtained by prorating the amount of the
loan together with such portion of the gen-
eral deductions as the other assets were in-
suifident to meet, over all of the stocks
pledged. The value of the equity in the New
Jersey stocks was arrived at by applying to
the equity in all of the stodis the fraction
represented by the value of the New Jersey
stocks over tiie value of all the securities
pledged. Treating the gross estate for the
purpose of taxation as the value of the equi-
ty in all of the stocks, plus the value of
the other assets, the comptroller arrived at
the proportion demanded by the method of
computation prescribed for nonresident es-
tates in section 12 of the act (namely, the
ratio of the New Jersey property to the total
property wherever situate), which proportion
was found to be 42.6 per cent The tax was
then calculated in the manner prescribed in
that section and found to be $527.66. The
comptroller refused, to consent to the trans-
fer of the New Jersey stocks to the executor
of the decedent unless such tax upon the
decedent's equity therein was paid, and ac-
cordingly it was paid. The amount of the
tax, L e., the method of computation, is not
challenged, and with that we are not con-
cerned.
The only question presented by the record,
and indeed the only question argued, is that
decided by the Supreme Court namely: Is
the interest of a nonresident deceased pledg-
or of stock of a New Jersey corporation In
such stock subject to the transfer tax Im-
posed by P. L. 1909, p. 325, as amended by P.
U 1914, p. 2677 We are of the opinion that
that question must be answered in the affirm-
ative. The view of the Supreme Court was
that Morse had ceased to be the owner be-
fore Ills death; hence there was no succes-
si<Mi. The court does indeed ref w to hla
"interest" In the stock, but the tenor of the
opinion appears to be that there Is no taxa-
ble succession if the decedent owned anything
less than the entire legal and beneficial inter-
est in the stock. Such a view ignores the
language of the statute (P. L. 1909, p. 326. aa
amended by P. L. 1914, p. 267) taxing—
" • • • the transfer of any property • • •
or of any interest therein or income therefrom,
in trust or otherwise. • • • When the transfer
is by will • * • of shares of stock of cor-
porations of this state, * * * and the de-
cedent was a nonresident of the state at the
time of his death. • • • " Section 1.
"26. 'The words 'estate' and 'property* where-
ever used in this act • • • shall be construed
to mean the interest of tiie testator * • •
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SECCRITT TRUST CO V. EDWARDS
385
passing or traaafcrnd to the (gucceasors). * * *
The word 'transfer' as used in this act, shall be
taken to include the passing of proper^ or any
interest therein, in possession or enjoyment,
present or futore," etc. Section 26.
The only authority dted by the court
below is that of Snrrogate Fowler of New
Tork county In Re Ames, 141 N. Y. Supp.
793 (1913). But that decision Is In conflict
with the doctrines of the highest court of
New Tork, as we shall show.
We think that a nonresidoit pledgor's
Interest In New Jerseor stocks is a property
interest which has a situs here for the pur-
pose of succession taxation. As between
the pledgor and pledgee, the pledgor is still
the general owner. The pledgee has a special
property only and upon payment of the debt
this is extinguished. That rule has t>een
frequently stated and applied without chal-
lenge by Bngliah Judges. In the early case
of Mores r. Conham, Owen, 123, 74 English
Reprint, 946 (1610), the court recognized that
the right of the pledgee was but a special
interest In C!ogg8 ▼. Bernard, Ld. Raym.
909, 1 Smith's Leading Cases, 'lOd (1702),
Chief Justice Holt stated the same principle.
The learned annotator at page •228 says :
"A pawn never conveys the general property
to the pawnee, bnt only a special property in
the thing pawned; and the oSect of a default
in payment of the debt by the pawnor is, not
to vest the entire property of the thing pledged
in the pawnee, but to give him a power to dis-
pose of it, accounting for the surplus, wliich
power, if he neglected to use the general proper^
t; of the tiling pawned, continues in the pawnor,
wlio has a right at any time to redeem it."
Another leading case is Donald v. Suckling,
Lu H. 1 Q. B. 585, 35 I* J. Q. B. 232. Another
famous case is Sewell v. Burdick, 10 App.
Cas. 74, 64 L. J. Q. B. 156 (1884) where Lord
Fitzgerald says that:
The pledgees "acquired a special property in
the goods, with a right to take actual posses-
sion should it be necessary to do so for their
protection or for the realization of their security.
They acquired no more, and, subject thereto,
tho general proi>erty remained in ue pledgor.
A very recent opinion by the Privy Council
In a prize case is The Odessa, [1916] 1 A. 0.
145, affirming (1915) p. 52. Prior to the
outbreak of the European war German own-
ers of the cargo had, by assignment of the
bills of lading, pledged the cargo to British
bankers for advances made prior to the out-
break of the war. After the war began and
while the vessel was on the high seas the
cargo was seized and condemned as a prize.
The contest was between the British pledg-
ees and the crown. Lord Mersey, speak-
ing for the court says:
"All the world knows what ownersliip is. and
that it is not lost by the creation of a security
upon the thing owned."
Our own decisions are tiniformly to the
same effect In Donnell v. Wyckoff, 49 N.
J. Law, 48, 7 AtL 672 (Supreme Court,
1886), wherein the subject-matter of the
pledge was corporate stock, Justice Depue
said (49 N. J. Law, page 49, 7 AtL page 672) :
101A.-25
"Upon a pledge of property as -security, for a
debt, the pledgee has only a special property.
The general property is in the pledgor, subject
to the rights of the pledgee."
In Broadway Bank v. McElrath, 13 N. J.
Eq. 24 (Chancellor Green, 1860), the con.
flictlng rights of a pledgee of stock and the
attaching creditors of the pledgor were dealt
with. It would appear from the opinion that
the court entertained no doubt that the in-
terest of a nonresident pledgor in stock of
a New Jersey corporation pledged to a non-
resident was subject to attachment under
the New Jersey statute, and the court, on
page 26, says that the rights of the creditors
were unquestioned except so far as they con-
flict with the rights of the pledgee. And
speaking of the effect of a pledge, says :
"The absolute ownership of the stock, it la
true, was not transferred, nor was it intended
it shoold be."
In Meisel v. Merchants' National Bank,
85 N. J. Law, 253. 88 Atl. 1067 (Court of Er-
rors, 1913), It was said, In effect that the
pledgor has the right to bring a possessory
action against the pledgee to recover the
stock Itself, providing only he makes and
keeps good. a tender of the debt
In McCrea v. Tule, 68 N. J. Law, 465, 68
AtL 210, the Supreme Court In 1902, In a
case of an assignment of a chose In action
as collateral security, said (68 N. J. Law,
page 467, 53 Atl. page 211):
"A pledgee of personal property, assigned as
collateral security, has the right to collect the
interest, dividends, and income accruing on the
collateral assigned, accounting to the pled|ror
upon the redemption of the pledge. In making
such collections the pledgee is a trustee of the
pledgor to see to the proper application of the
funds C(41ected or to refund the samo to th4
pledgor if the debt be otherwise paid."
Id Mechanics' B. & L. Ass'n v. Oonover,
14 N. J. Eq. 219 (reversed on other grounds,
Herbert v. Mechanics' B. & L. Ass'n, 17 N.
J. Eq. 497, 90 Am. Dec. 601), the conrt said
that when shares of stock are pledged, they
"remain the pr<^erty of the shareholder for
every purpose excepting that of defteting
the lien" of the pledgee.
In the United States Supreme Court draw-
ing the familiar distinction between a chattel
mortgage and a pledge, Mr. Justice Pitney
says, In Dale v. Pattison, 234 U. S. 399, 405,
34 Sup. Ct 785, 788 (58 L. Bd. 1370, 52 L.
R. A. [N. S.] 764) :
"On the other hand, where title to the prop-
erty is not presently transferred, but posses-
sion only is given, with power to sell upon de-
fault in the jierformance of a condition, the
transaction is a pledge, and not a mortgage."
The law of (Connecticut appears to be to
the same effect In Robertson v. Wilcox, 36
Conn. 426 (1870), the highest court of that
state, 36 Conn, at page 430, said :
"A pledge of property does not carry with
it the title to the thing pledged. The title re-
mains as before. All that passes to the pledgee
is the right of possession, coupled with a spe-
cial interest in the prwerty, in order to pro-
tect the right"
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101 ATrANTIO RBPORTBB
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It la this Intangible proprietary Interest
of the pledgor In the corporate property that
the pledgor's executor succeeds to.
Now the doctrine Is too well established
to need discussion that the stock of a New
Jersey corporation has a situs In this state
and Is subject to succession taxation here.
Mxon V. Kussell, 79 N. J. Law, 490, 7C Atl.
982 (Court of Errors) ; Carr r. Edwards, 84
N. J. Law, 667, 87 AtL 132 ; Hopper v. Ed-
wards, 88 N. J. Law, 471, 96 Atl. 667.
The matter Is nowhere more fully and ably
discussed than In the opinion of Mr. Justice
Garrison in the Supreme C!ourt In Nellson
V. Russell, 76 N. J, Law, 27, 69 AtL 476
(1908), reversed on another point, 76 N. J.
Law, 655, 71 Aa 286, 19 L. R. A. (N. S.) 887,
131 Am. St Rep. 673 (1908). The following
is quoted therefrom, not for the purpose of
Biq)portlng this elementai7 proposition, but
as Illuminating the precise question under
review in the present case (76 N. J. Law,
page 35, 69 Atl. page 479) :
"In this country, where the ^neral doctrine
of the state courts is that the situs of property
governs its liability to succession taxes, the
weight of authority is that stock in a corpo-
ration is subject to the impositioo of succession
taxes by the state that created the corporation,
and that in this regard the place of residence
of the deceased stockholder is immaterial."
The case of Amparo Mining CV>nipany T.
Fidelity Trust Oo., 75 N. J. Bq. 555, 73 AU.
249 (Court of Errors, 1909), affirming opin-
ion of Vice Chancellor Stevenson in 74 N. J.
Eq. 197, 71 AU. 605, is also Instructive.
There the Jurisdiction of the courts of the
state of incorporation over the enforcement
of property Interests in stock as against non-
residents was upheld.
It being firmly established that the stock
la subject to succession taxation by the state,
it necessarily follows that not only is the en-
tire legal interest in the stock subject to
taxation by the state, but as well every un-
divided or fractional Interest In any such
given share of stock, and as well any pro-
prietary Interest in such share of stock,
though it be an Interest of a quality different
in character from a mere fractional or other
legal Interest less than the whole. The in-
terest of a pledgor of a share of stock being
such a proprietary Interest in the share of
stock itself, and the stock being taxable, it
follows that the pledgor's Interest is tax-
able, whether it be called an equity of re-
demption or by some other name.
We need not dwell on the distinctions
which exist in respect to situs for the purpose
of property taxes, on the one hand, and suc-
cession taxes, on the other. The argument
of respondent is not forwarded by calling
the pledgor's right an equity of redemption,
or chose in action, or an intangible. The
stock Itself is a chose, and intangible. While
an intangible right has really no locality. It
must, in the nature of things, have ascribed
to it a situs for legal purposes. The situs
is based on the power of the sovereign, and
if the sovereign has power to deal with It
effectively as a property right, it may tax
it as having an ascribed situs within its Juris-
diction.
The Aii4>aro Mining Company Case, 8iq>ra,
at once suggests such power. We note es-
pecially the attitude of the court towards the
rights of bona fide holders. If any one class
of such holders was more prominently in the
mind of the court than another, it was prob-
ably that of pledgees. But the court did not
turn aside from rendering Judgment because
of the possibility that a nonresident owner
had pledged his stock to a nonresident, which,
if respondent's argument be sound, would at
once have ousted the court of Jurisdiction.
It can hardly be doubted that the pledgor
could resort to our courts to enforce a con-
flicting property right in respect to his stock,
and that because he could obtain effective
relief nowhere but in the domicile of the cor-
poration. To be more concrete, suppose that
Morse, a resident of Connecticut, had pledg-
ed New Jersey aUxik. to residents of Mas-
sachusetts and New York Jointly, and that
the latter wrongfully delivered the same to
a resident of Oregon, and that the stock had
no market value. See Safford v. Barber, 74
N. J. Eq. 352, 70 Atl. 37L Where could
he obtain relief except in New JerseyT
Gregory v. N. Y., L. E. & W. R. R. Co., 40 N.
J. Eq. 38. Who would doubt that sudi a suit
would be quasi in rem I
The New York courts recognize that the
pledgor has a residuary Interest In Warner
V. Fourth NaUonai Bank, U5 N. Y. 251, 22
N. E. 172, the interest of a nonresident pledg-
or of notes held in pledge by a resident was
held to be subject to attachment In Mew
York state. Judge Gray says:
"The title to property may remain in the
pledgor, but the pledgee has a lien, or special
property, in tho pledge, which entitled him to
Its possession against the world."
And, further:
"The pledgor's residaary interest in the pledge
constitutes a claim or demand upon the pledgee,
which is property, and hence may become the
subject of attachment."
And again:
"We think the attachment in question here
operated to secure to the (attaching creditor) the
lien upon the pledged property, to the extent of
the interest ol the (pledgor), and that interest
was the right to the pledged property, or so
much of it or of its proceeds from any collec-
tion as remained after tho satisfaction of the
pledgee's claim for advances."
See, also, opinion of the same Judge In
Simpson V. Jersey City Contracting Co., 185
N. Y. 193, 58 N. B. 896, 55 L. &. A. 796, where
it is said:
"The pledgee obtains a special property la
the tiling pledged, while the pledgor remains
general owner."
The most distinguished New York Jndge of
all times, C3iancellor Kent expressly held
in Cortelyou v. I^nsing, 2 Caines Cases, :iOO,
2 N. Y. Ommon-Law Reports 802 (1805),
that the legal property in a pledge does not
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BECtJRITT TRUST CO. ▼. EDWARDS
387
pass as In the case of a mortgage with de-
feasance ; that the general ownership remain-
ed with the pledgor, and only a special prop-
erty passed to the pledgee, and, fnrther, that
the pledgor's Interest passed to hla admin-
istrators.
If the stock has a situs here, where else
can be the sltns of the residuum? If the In-
terest of the pledgee Is less than absolute
and unqualified ownership, how can the resid-
uary interest of the pledgor have a situs
other than that of the subject of the pledge?
Tbe stock never ceases to have a situs in
this state, whoever may be tbe owner. Neil-
son V. Russell, supra. If the transfer of
full ownership does not change the situs of
the property, how can the transfer of a
limited right take out of the Jurisdiction or
affect the situs of what of tbe rights of own-
enhip remain after such partial transfer?
The tax Is in rem; the res is the succes-
■ion to the proprietary right that a stock-
holder has in a corporation of this state. Un-
less the whole of the proprietary right be
transferred, the remainder must be taxable
here as property of the pledgor having a
situs here, to which his executor succeeds.
Of course the stock has a situs here; and
the general property in the thing pledged
must continue, notwithstanding the pledge,
to have a legal situs here for the purpose of
the taxation of the succession to such gen-
eral property.
The power to tax being established, we
have no difficulty in finding in the statute
the Intention to do so. It is clear that every
proprietary interest of whatever nature in
those species of property subject to tax 1b
Included. The fourth subdivision of section
1 imposes tax "upon the clear market value"
of the property, which Impliedly recognizes
that the prtq;>erty taxed may be Incumbered.
Sections 2 and 3 tax future and contingent
estates of every character. Section 12 for-
bids the transfer, by a corporation, without
the comptroller's waiver, of shares of stock
of, "or other interests In," the corporation.
Tbe last paragraph of section 12 (the ratio
provision) necessarily contemplates that every
kind of property Interest be brought Into
hotchpot, and puts the nonresident on the
same footing as the resident. Section 26 says
that the wonl "transfer" shall be taken to
Include tbe passing of "any interest" in prop-
erty, present or future. Such words as
"property" and "Interest" are ordinarily
used in a revenue act in a popular sense, and
ibonld be broadly construed. Smelting Co. v.
Comm. of Inland Revenue (1896) 2 Q. B. 179,
66 Ia J. Q. B. 513 (affirmed 1897) 1 Q. B. 176,
66 U J. Q. B. 137). In the Matter of Whit
tog, 150 N. X. 27, 44 N. E. 715, 34 L, R. A.
232, 55 Am. St. Rep. 640. The pledgor's
"equity" certainly is pr<^>erty in a popular
■ense. It has value; It may be sold; It may
be Incumbered; it may be made the basis
of extending credit See^ also, as to the
extensive arollcatlon of the language of tbe
act. Hopper v. Edwards, 88 N. J. Law, 471,
96 Atl. 667.
Some stress Is laid below by the respondent
on the rights of the pledgee, and their sup-
posed infringement by the comptroller, but
they are not here lnv<rfvedL No pretense is
nuide by the state that its lien on the stock is
other than Inferior to that of tbe pledgee.
The latter Is not before the court, and there
appears in the case nothing of interference
with bis rights. Certain practical difficulties
In the collection of such a tax as this may be
compassed within the imagination, bat the
present case is free therefrom.
It is enough for the decision of this case
that the comptroller's consent to transfer was
requested by the executor of the decedoit's
vrill ; that he refused unless payment of the
tax was forthcoming; that the tax was
paid, the waivers issued, and the stock trans-
ferred. The only question before the court
is. Had the Legislature the power to author-
ize the assessment and did it do It?
In the opinion of the Supreme CMrt (but
whether it was the basis of the decision we
cannot tell) mention is made of the possibili-
ty that the "equity of redemption" be ren-
dered valueless by a resort to the security
after the pledgor's death. This possibility
would, with equal force, support the proposi-
tion that no tax should be levied on an equity
in real estate, since that might be foreclosed.
This might be due to the owner's neglect to
pay tbe Incumbrance, or for other reasons.
Likewise a bouse might be destroyed by wind
or flood ; a chattel burnt or lost ; the assets
of the estate might be embezzled; a debt
become uncollectable by Incompetent manage-
ment; a security valueless by fiuctuatlons
in the market or the receipt of "news from
abroad." The tax is on the succession, which
occurs at death; and is then due and pay-
able. Section 1. If the subject-matter of the
succession be of value at that time, and the
universal or particular successors choose to
accept the succession, tbe state may then
levy, as of tbe situation then existing, a
premium upon the privilege so to succeed.
What becomes of the thing after the state has
admitted the successors to the succession Is
not of its concern. And so hold tbe author-
ities. See Tilford v. Dickinson, 79 N. J. Law,
302, 303, 75 AtL 574 (reversed on another
point, 81 N. J. Law, 576, 79 Atl. 1119); Mo-
Curdy v. McCurdy, 197 Mass. 248, 83 N. E.
881, 16 L. R. A. (N. S.) 329, 14 Ann. Cas. 859;
In re Penfold's Estate, 216 N. T. 172, 110 N.
E. 499.
Tlie argument of respondent that due
prudence and caution requires that assess-
ment be withheld pending realization on
the pledge is self-destructive. It will not do
to say that the state should take into com-
putation the loss or shrinkage. If any, whldi
has taken place in the meautlma It would
not be argued that if there be an Increase
In value, a tax should be laid on this. Of
course tbe state is not bound to stay the
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101 ATLANTIC REPORTER
(X.J.
exercise of the taxing power at tlie pleasure
of the pledgee, and chance the collection of
a tax on his judgment and honesty, and on
the Tariability of the market's demand for
the thing to be sold.
In the case at bar it appears that certain
of the New Jersey stocks were sold by the
pledgee shortly after Morse's death, at a
price in excess of the appraisement. Certain-
ly this did not render valueless the "equity"
In these stocks. It was a realization of their
value. While the proceeds were applied In
reduction of the principal of the debt, this
Increased correspondingly the "equity" in the
other stocks. It is as if the proceeds of the
Bethlehem Steel itreferred wliicb was aaiA
were paid to the respondent, and by it ap-
plied to the payment of the testator's legal
obligation. The validity of the tax, therefore.
Is not affected by any of the foregoing
matters.
Upon the whole, oar conclusUMi Is that
the interest of a lunuesident deceased pledgor
of stock of a New Jersey corporation In such
stock is subject to the transfer tax Imposed
by the act of 1909 (P. U p. 325; C. S. p. 5301)
as amended in 1914 (P. L. p. 267).
The Judgment below will be reversed, with
costs, with direction for the entry of an or-
der below affirming the assessment and tax.
(87 N. J. Hq. <75) "^"""^
STANFORD v. STANFORD et al.
(No. 36/102.)
(Court of Chancery of New Jersey. June 6,
1917.)
1. CoTTBTS 9=324— Jurisdiction— CoNRBsmo
BT Consent.
Jurisdiction of the subject-matter of a suit
In equity cannot be conferred by consent.
[Ey. Note. — For other cases, see Courts, Cent.
Vig. it 70-78.]
2. COUBTS «=>19 — JUBISOICTION — Paktiks
NONBESIDBNT.
A court of chancery has jurisdiction of
a bill for an injunction to restrain the taking
of a note into another state and its use in a
suit at law in such other state on such note on
the ground of fraud and for its cancellation,
though both parties are nonresidents of the
state; the note being impounded in this state
in the hands of a Supreme Court Commissioner.
rE5d. Note.— For other cases, see Courts, Cent.
Dig. H 47-52.]
8. EQXraTT 4=939(1)— JXTBIBOIOTION — RVrEN-
TION.
Where a court of equity acquires Jurisdic-
tion of an action to enjoin Uie taking of a note
to another state for use as evidence in another
state suit on the note impounded in this state
in the hands of a Supreme Court Commissioner
on the ground of fraud, it will retain jurisdic-
tion and determine the case on the merita.
[Ed. Note. — For other cases, see Equity, Cent.
Dig. H 104-109, 111, 114.]
4. Bnxs AND Notes «=>525—E<juitt— Fraud
— SmrFiciBKcr of Bvidencb.
Where the circumstances surrounding a note
are suspicious, as where the due date wag chang-
ed, interlineationB were made long after the
making of the note, and the payee slept on her
rights for 25 years till iudorsers were dead, the
claim should not be sustained except on clear-
est proof of most satisfactory and nnlmpeaeb-
able character.
[Ed. Note.— For other cases, see Bills and
Notes, Cent Dig. {§ 1832-1839.]
5. Bills and Notes «=>498 — Burden or
Proof.
In an action to restrain taking into another
state a note impounded in this state in the
hands of a Supreme Court Commissioner and
its use as evidence in a suit in such other state
against the indorser of the note, the defendant
must show by clear and convincing proof either
a legal protest and notice thereof or that it was
waived by the indorser, since burden is on plain-
tiff to prove these facts in an action at law
and equity follows the law.
[Ed. Note.— For other cases, see Bills and
Notes, Cent. Dig. {§ 1688-1694.]
6. Bills and Notes «=>130— Days or Grace.
A note due two years from August 1, 1S93,
was entitled under Laws N. Y. c. 607, to days
of grace.
[Ed. Note.— For other cases, see Bills and
Notes, Cent. Dig. if 297-309.]
7. Alteration of Inbtbuiixnts 4=96(2) — ^In-
terlineations.
Where it appears that words "service of no-
tice and protest is hereby waived," were inter-
lined after execution of note, it is void as
against the prior indorser who did not assent to
such alteration, as it is a material alteration
witliin meaning of Negotiable lustmments Law
(3 Comp. St. 1910, p. 3749, i 124).
[Ed. Note. — For other cases, see Alteration of
Instruments, Cent Dig. i{ 21-27.]
Bill by Helen E. Stanford against Annie
F. Cunningham Stanford to restrain taking
of note to another state and Its use as evi-
dence In a suit thereon in that state and for
cancellation of such note impounded in this
state In the hands of a Supreme Court Com-
missioner. Decree for complainant.
C!ortlandt ft Wayne Parker, of Newark, for
complainant I. Faerber Goldenbom, of Jer-
sey City, and George W. Carr, of New York
City, for defendants.
LEWIS, V. G. The bill In this case waa
filed for cancellation of a note for $6,500,
impounded In this state in the "hands of a
Supreme Court Commissioner, and to enjoin
its being taken to New York and used in a
suit brought thereon by Mrs. Cunningham
Stanford against Mra Helen K. Stanford, as
residuary legatee of her husband, Philip W.
Stanford. March 1, 1913, a rule to show
cause with temporary stay was granted. On
further hearing upon affidavits by both par*
ties. Injunction was granted October 6. 1913,
but with provisions so as to permit the New
Tork suit to go on to verdict upon Mrs. Cun-
ningham Stanford giving a bond for $1,000
that she will not proceed in the caase, after
verdict, without permission of the Court of
Chancery, and that the commissioner might
continue to bold the note subject to be pro-
duced at the trial of the New Tork suit.
An appeal thereupon was taken to the Court
of Errors and Appeals against so much of the
order as permits the suit In New Tork to pro-
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N.J4
STANFORD ▼. STANFORD
389
ceed, and permits the note to be taken to New
Tork for nse In the suit there.
[1] Before the hearing of the appeal conn-
sel on both sides got together and voluntarily
assented to the adjudication of the merits in
this tribunal, and the cause has been tried
before me. It was not an attempt by con-
sent to confer Jurisdiction upon the court,
for it is well settled that Jurisdiction of the
sabject-matter of a suit in equity cannot be
conferred by consent Hudson County t.
Central R. R. of N. J., 68 N. J. Eq. 500, 59
Atl. 303, and other cases. The situation la
somewhat similar to that presented by the
case of Varrick r. Hitt, 66 N. J. Eq. 442,
57 Atl. 406.
The facts, briefly stated, are : That a note
for $6,500 is alleged to have been given by
Colonel Asa P. Stanford, a brother of Leland
Stanford, the founder of a great university
of that name. The Colonel Is alleged to have
obtained the signatures of his son Philip and
bis daughter Mary as Indorsers on the note.
The note, with Its indorsements, reads as
follows :
'•$8500 New Tork, Aug. 1, 1893.
"Two years after date I promise to pay to the
order of Mrs. A. F. Cunningham, six thousand
five hundred dollars ($6500) at Laidlaw & Co.,
14 Wall street. Value received.
"Due. . No. .
"A. P. Stanford."
Indorsed:
"Service and notice of protest is hereby
waived. Mary E. Stanford.
"Philip Stanford."
The complainant alleges that the note Is
false and fraudulent and tainted with frand
and forgery. In that the signature of Philip
Stanford was not genuine, but was forged;
also that the note has been changed from a
one-year note to two years; also that the
words "Service and notice of protest Is hereby
waived" were placed there many years after
the Indorsements on the back of the note were
made, and that a conspiracy existed between
Colonel Asa P. Stanford and the lady who
afterwards became his wife, the now defend-
ant, to mulct the estate of Philip.
Philip was educated at Harvard, and at the
time he indorsed the note he was living at
Spokane, Wash., afterwards removing to Cal-
tfomia, and then to Montclalr, Essex county,
N. J., where he died on June 1, 1898, having
executed bis last will and testament wherein
he bequeathed everything to his wife and ap-
pointed her sole executrix. By the last will
and testament of ILieland Stanford be left
$100,000 to each of his nephews and nieces,
and also the same amount to his brother
Colonel Asa P. Stanford. The complainant
bad the will of her husband duly probated,
and thereupon Colonel Stanford engaged
counsel and took an appeal to the orphans'
court of Essex county, which was decided
against him. An appeal was then taken to
the Prerogative Court, which was discontinu-
ed. Colonel Stanford and the defendant In
this suit were both traders In stocks. He died
practically penniless. His son Philip seems
to have been fond of him, and all seems to
have gone along pleasantly untU the death
of Philip. The fact that Philip did not pro-
vide for his aged father's support by his will,
but, on the contrary, left everything to the
complainant, Philip's wife, seems to have
aroused the indignation of the old gentleman
who was at that time about 76 years of age.
Colonel Stanford and the defendant were
friends for a great many years. In 1902 he
married the defendant, and died In 1903.
The note was made In New York and in-
dorsed in the states of Connecticut and Wash-
ington. The note was delivered and is pay-
able in New Tork. The maker, when the note
was made and continuously till his death, re-
sided in New Tork. So far as Colonel Stan-
ford, the maker of the note, is concerned, the
note is barred by the statute of liniltatlons.
As to I^llp, iHXwever, the statute of limita-
tions of New Tork did not apply, as he was
out of that state. In the month of November,
1900, an action was commenced in the Su-
preme Court of this state by the present de-
fendant against the present complainant as
executrix on the above note, which note was
impounded by order of the court in the hands
of a Supreme Court Commissioner who died,
and it was afterwards placed in the hands
of another commissioner by order of the
court, and it has been held by him ever since.
A judgment of non pros, was entered in that
action. A second suit was then brought In
the same court between the same parties as
to the same subject-matter, except that the
complainant was sued as devisee of her hus-
band, which action the plaintiff discontinued
on the 30th of December, 1901.
Some time in December, 1911, the present
defMidant commenced suit against the pres-
ent o(»nplalnant in the New York Supreme
Court for the county of New York upon the
same note, alleging that the present com-
plainant was the sole legatee of Plillip W.
Stanford, and sole executrix, and received
his property and assets, and that no will ei-
ther of Asa P. Stanford or Philip W. Stan-
ford had been proved in New Tork. After-
wards, the present complainant pleaded to
that suit, and notice was given to her by the
present defendant that an application would
be made to the Honorable Francis Swayze,
Justice Qf the Supreme Court of this state,
for an order that said note should be turned
over and delivered by Charles D. Thompson,
the Supreme Court Commissioner who held it
under the order of the court Thereupon
the present suit was brought In this court
for an injunction to stay the suit at law and
for the cancellation of the note; and it is
now submitted to the court under stipula-
tions and order whereby this court is to try
the whole case, in order to avoid the trial of
the case in New Tork.
[2] In the brief of the defendants' counsel
he argues that the Court of Chancery of New
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101 ATIiANTIO RBPOUTBR
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Jersey has no Jurisdiction, because both^
parties are nonresidents. There is no basis
for such a contention, it being the settled
law that where both parties are nonresidents
it will not prevent them from bringing suit
or being sued in cases of this diaracter.
[3] It is also the settled law that courts
of equity have Jurisdiction over all questions
where fraud is involved, but, as a matter of
practice, where there is a complete and ade-
quate remedy at law courts of equity will
usually not assume Jurisdiction; but where
the court lias already assumed Jurisdiction,
as in a mere matter of discovery, it will con-
tinue on and deal equity between the parties
on the whole case. In regard to the comity
existing between the states, I thinlc that is
entirely settled by the stipulation of counsel.
[4] To my mind, this is an unconscionable
claim and shonld not be sustained except
upon the clearest proof of the most satisfac-
tory and unimpeachable character. It is
well settled that a court of equity will not
lend its aid to enforce an unconscionable
claim. Brie B. R. t. Delaware R. R. Co., 21
N. J. Eq. 283; Suffem v. Butler, 19 N. J. Eq.
202, and other cases. All the circumstances
surrounding it are suspicious. The chang-
ing of the date of the note from one to two
years, which is apparent on the face of it,
and the fact that unless such change had
been made the first suit that was brought
against the complainant as executrix, at the
time the note was impounded, would have
been barred by the statute of limitations; the
very obvious insertion of the words "Service
and notice of protest is hereby waived"
above the indorsements of Mary and Philip
on the note, which I am satisfied were made
many years after the malting of the note,
such Insertion being made with the privity
and consent of the defendant; the sleeping
on the rights for nearly a quarter of a cen-
tury ; the commencement of two suits in New
Jersey and allowing them to be dismissed
for lack of prosecution, and notliing further
being done until the commencement of the
third suit in New Xork, where they sought to
take advantage of a technical situation under
the statute of limitations because of the ab-
sence from the state of the defendant; the
death of Philip and Mary, who are unable to
testify; and the very apparent attempt to
mulct the estate of PhUlp — are all circum-
stances against the equities of the bolder of
the alleged note.
[5] I think that the defendant has not sus-
tained the burden which the law places upon
her — that she has failed to show a legal pro-
test and notice thereof; or if that was un-
necessary under the waiver, then she has
failed to show that the waiver was part of
the contract of the indorscrs; and in the
absence of clear and convincing proof on
either or both of those questions she could
not recover in an action in a court of law.
and as equity should follow the law. In this
respect she cannot recover here.
[6] The protest of the note shows that
words were interlined in different ink, and
the protest was made on the due day without
days of grace, while it should have been pro-
tested on the last day of grac& Days of
grace were abolished by the laws of New
York in 1894, chapter 607, taking efTect Jan-
uary 1, 1895, as to all notes made after the
approval of the act of May 9, 1891. Conse-
quently, If this note were for two years from
August 1, 1893, it was oitltled to days of
grace.
[7] According to the Negotiable Instru-
ments Law (3 Gomp. St 1910, p. 3749, f 124):
"Where a negotiable instmment is materially
altered without the assent of all parties liable
thereon, it is avoided, except as against a party
who has himself made, anthorized or assented to
the alteration and sabBequent indorsers. But
when an instrument has been materially altered
and is in the hands of a holder in due course,
not a party to the alteration, he may enforce
payment thereof according to its original tenor."
The prayer of the complataanf s bill for
the relief sought will be granted In accord-
ance with these views.
JBNKINSON et aL v. PARMLT.
C^ty Comptroller, et aL
(Supreme Court of New Jersey. April 6, 1917.)
MuNiciPAii Corporations «=s»512(3)— Public
Improvkmknts— Assessments— Judgment or
Commissioners.
Whether lands assessed for benefits result-
ing from extension of street, and sitaated 3.200
feet from place of extension, were specially
benefited, and to what extent, is a qnestion of
fact which must be detenuined by judgment of
commissioners, and that judgment wiU not be
disturbed, unless the improvement could not,
in the opinion of reasonable men, be justly re-
garded as a special benefit to the owners of
land in the area fixed by the commissioners.
[Bid. Note.— For other cases, see Monidpal
Corporations, Cent. Dig. { 1187.]
Certiorari to Circuit Court, Essex County.
Certiorari by Richard C. Jenklnson and
others against Tyler Parmly, Comptroller of
the City of Newark, and others, to review an
assessment. Affirmed.
Argued November term, 1916, befbre
SWAYZB, MINTUBN, and KALISCH, JJ.
Coult & Smith and Stein, Stein 4 Hax»-
noch, oil of Newark, for prosecutors. Harry
Kaliscb, City Atty., of Newark, for respond-
ents.
PER CURIAM. Property owners were as-
sessed for benefits resulting from the ex-
tension of Branford place to Highstreet, pub-
lic streets in the city of Newark. Upon the
coming in of the report of the commissioners! •
written objections were filed by landowners
to assessments agoinst their lands contained
in the report The report was confirmed.
The chief objection made against the con-
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391
flrmatlon of the report was tbat tbe lands
assessed derived no special benefit beyond
that of the general public. There were nn-
merous other objections which Involved mat-
ters requiring careful consideration, nil of
wbldi have been thoroughly and ably discuss-
ed and disposed of tn an elaborate opinion by
Judge Adams, sitting In the Essex circuit,
In confirming the assessments, which opinion
expresses the views of this court
The main contention of counsel for the
prosecutors to support their aUegati<Ni of il-
legullty of the assessments under review is
that the commissioners arbitrarily fixed an
area of benefits In that the report of the
commissioners shows that the lands of the
objectors were without the zone in which it
could be fairly said that the lands assessed
are specially benefited. Whether or not the
lands assessed were so benefited and to what
extent dep^ided upon the Judgment of the
commissioners. This Inquiry Involved In its
determination a mixed question of law and
fact, nie general legal principle to be ex-
tracted from Newark v. Hatt, 79 N. J. Law,
6«, 77 Atl. 47, 30 li. B. A. (N. S.) 637, is
that only lands which are spedally affected
by the opening or closing of a street are to be
considered. Bnt whether lands are more or
less affected or specially benefited must al-
ways remain a question of fact the solution
of which rests with the commissioners. It
is the Judgment of the commissioners which
must determine, under all the circumstances
of the case, whether the lands are specially
benefited or not.
We think the reasoning In Hart et al. v.
aty of Omaha et al., 74 Neb. 836, 105 N. W.
546, is peculiarly applicable to the matter be-
fore ns. In that case the court says:
"It is charged that the assessment Is unjust
and oppressive. The charge appears to be bas-
ed soleif on the fact that the appellant's prop-
erty, beu; about three-quarters of a mile from
tlie boulevard, cannot be specially beiie6ted
tliereby; but whether property is thus bene-
fited Is a question of fact, which must depend
on the facts and circumstances in each case.
On such questions the distance of the property
from the boulevard would undoubtedly have an
important bearing. But this court is now ask-
ed to say, as a matter of law, that because the
property is three-quarters of a mile from the
bonlevard it received no special benefit there-
from, and inferentially that the assessment
thereof for the purpose stated amounts to fraud,
cross injustice, or mistake. This the court,
acting within its constitutional bounds. Is un-
aUe to do. We do not mean to be understood
to gay that the distance might not be so great
in a given case as to enable the court to say
•8 a matter of law that the property woa not
specially benefited. That question stands open.
What we do hold is that this court cannot say,
In view of aU the facts and circumstances, tbat
beeanso the property is three-quarters of a mile
from the boulevard, it derives no special benefit
from such thoroughfare."
And so in the present case we cannot say.
In view) of all the facts and drcumstances,
that because some of the lands assessed are
8,200 feet from the Branford plade extension
into High street, tbat sudi lands do not de-
rive any special benefit
We cannot say as a matter of law that a
proper area of assessment would be upon the
blocks of land between the opened street and
the next parallel streets. Nor can we fix as
a matter of law the area of assessments by
metes and bounds, by declaring where such
area shall begin and where it shall end.
In other words, we cannot substitute our
Judgment for that of the commissioners, un-
less it clearly appears that the Judgment of
the commissioners was without any basis
whatever. As was pointedly remarked by
Dixon, J., in Jelllff v. Newark, 48 N. J. Law,
on page 109, 2 Atl. on page 632:
"The area of special benefit is so largely a
matter of opinion that the judgment of the
commissioners • • • must stand, unless
very convincing evidence be adduced against it"
We are not prepared to say from the un-
disputed facts alone namely, the widening
and extension of Branford place to High
street, thus linking High street and inter-
secting streets with Broad street In the very
center of the city, might not, in the opinion
of reasonable men, be Justly regarded as a
special benefit to the owners of land in the
area fixed by the commissioners.
For the reasons given, the Judgment of the
E^ex circuit court, confirming the assess-
ments under review, will be affirmed, with
costs.
FIEDLER et al. v. PARMLT.
City Comptroller, et al.
(Supreme Court of New Jersey. April 6, 1917.)
Certiorari to Circuit Court Essex County.
Certiorari by William H. F. Fiedler and oth-
ers against Tyler Parmly, Comptroller of the
City of Newark and others, to review an as-
sessment. Affirmed.
Argued February term, 1917, before SWATZE,
MINTURN, and KALISCH, JJ.
Coult & Smith and Stein, Stein & Hannoch,
all of Newark, for prosecutors. Harry Kalisch,
City Atty., oi Newark, for defendants.
PER CURIAM. The same questions which
were presented in Jenkinson et al. v. Parmly,
101 AtL 300, decided this term, are raised in
the present case. For the reasons given by
Judge Adams in his opinion confirming the as-
sessments in the Essex circuit court and the
views expressed in the opinion filed, in Jenkin-
son V. Parmly, supra, the judgment of the Essex
circuit court confirming the assessments under
review, wUI be affirmed, with costs.
<M N. J. lAw, am
NEW YORK TELEPHONE CO. v. MAYOR
AND COMMON COUNCIL OF OITT OF
NEWARK.
(Supreme Court of New Jersey. June 6, 1917.)
MONIOIFAL COBPOBAITONS «S>422 — PUBUO
IMPBOVEUENTS — ASSKSSUENT — TBLEPHONB
Exchange.
A telephone exchange, not being in a legal
i sense permanently devoted to a public use, may
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392
101 ATIiAJNTIC REPORTER
(N.J.
bo _ aasessed for local ImproTementB on the
basis of the enhancement of its market value.
[Ed. Note. — For other cases, see Municipal
Corporations, Cent Dig. { 1028.]
Certiorari by the New Tork Telephone
Company against the Mayor and Common
Council of the City of Newark, to review an
assessment. Affirmed.
Argued February term, 1917, before
SWATZB, MINTURN, and KALISCH, JJ.
Edward A. & William T. Day, of Newark
(Charles T. Russell, of New York City, (m the
brief), for prosecutor. Harry Kallscb, of
Newark, for the City.
SWATZE, J. This assessment is for the
same Improvement Involved in Jenklnson
V. Parmly, Comptroller, and Fiedler v.
Parmly, Comptroller. All the points but
one are ' disposed of by the opinions In
those cases. The additional point made
In this case is that the assessment must
be limited to the benefit conferred on
the telephone company for its use of the
property, and cannot be measured by the
increase In the market value of the land ;
and. Inasmuch as the property is said to be
permanently devoted to a public use of such
a character that the present owner Is not
benefited by improved means of access, It
is argued that the assessment should be
nominal, or should at most be less than it
would be If the property were ordinary busi-
ness property. To sustain this position the
prosecutor relies on State, Morris & Essex
R. R. V. Jersey City, 36 N. J. Law, 56 ; Ceme-
tery Co. V. Newark, 50 N. J. taw, 66, 11 Atl.
147; Erie R. R. Co. v. Paterson, 72 N. J.
Law, 83, 59 Atl. 1031. The last two cases
do not help the prosecutor. In the Cemetery
Company Case the portion of the land to
which the Cemetery Company had title was
held liable to assessment In the Erie R. R.
Co. Case, It was held that there might be an
assessment for benefits to the use of the
property, although there might be no assess-
ment under the circumstances of that case
fof enchancement of market value. In the
Morris & Essex R. R. Case, It was indeed
held that the enchancement of the present
market value was not the proiwr basis of
assessment, but that result was Justified by
the facts peculiar to the case. The subject
has been recently reviewed by the Court of
Elrrors and Appeals, and the rule and the
reasons on which It rests have been ad-
mirably stated by Mr. Justice Garrison.
New York Bay R. R, Ca v. Newark, 82 N.
J. Law, 581, 83 Atl. 962. The reason of the
rule. In Morris & Essex Railroad Co. v. Jer-
sey City, he says, is "that land acquired un-
der a legislative sanction that Implies its
permanent devotion to a public use can-
not, without a violation of such public
use, have a market for any other pur-
pose, and hence, as such a violation
will not be presumed, muA land has, In
legal contemplation, no market value to be
enhanced." The distinction between such a
case and the present is that here there is
nothing that In a legal sense Implies the per-
manent devotion of the telephone company's
property to a public use. It may be that in
fact it Is always likely to remain the best
site In Newark for a telephone exchange, and
that the company Is never likely to move ;
It may be that the Investment is so large
that the loss due to a removal would be pro-
hibitive ; it may be that it is fitted up for the
q>ecial business of the company. All these
considerations would probably be applicable
to any large business, to a bank, an Insur-
ance company or ofllce building, a hotel, a
factory, or a department store. But there is
nothing to show that the title to the property
is Ukely to be afCected by an abandonment of
the present use, nor is the property so changed
In character that It cannot readily be adapted
to other business purposes. Such a change
Is not unlsnown In the case of the telephone
company In Newark. We see nothing to dis-
tinguish the case from that of land used for
the other kinds of business buildings Just
mentioned.
The assessment Is affirmed, with costs.
(90 N. J. Law, Sg6)
0. J. GTJDE CO., NEW TORE, v. NEWARK
SIGNCO. etal. (No. 100.)
(Court of Errors and Appeals of New Jersey.
May 24, 1917.)
1. conspibaot ®=»19 — evidkhcb— pbkvions
Suit against Defendants.
In an action by a sign advertising company
agaiuBt other such compHiiies for maliciously
conspiring to mutilate and injure plaintiff's
signs, evidence that three of the defendants more
than seven years before the acts complained of
bad been sued by another plaintiff for like acts
was improperly received, since it confused the
issues and prejudiced defendants.
[Ed. Note.— For other cases, see Cmispiracy,
Cent Dig. i! 25, 26.]
2. CONSPIKAOT ®=»19— EVIDENCS— ImMATEBI-
ALrrT.
Testimony that the prior suit was settled, in-
troduced to substantiate the charges in the pre-
vious suit was improperly admitted.
[Ed. Note. — For other cases, see Conspiracy,
Cent Dig. §S 25, 26.]
3. Tbial <8=3252(3) — Instruotiow— IrbtbOc-
TION TX> CONSIDEB EVlDElfCE IIIPROPBRI.Y
Admitted.
The trial judge improperly charged that the
jury should consider the earlier suit and its set-
tlement as showing that some of the defendants
had knowledge that similar charges had previ-
ously been made.
[Ed. Note.— For other cases, see Trial, (}ent
Dig. § 598.]
Black, White, Eeppeahdmer, Williams, and
Gardner, JJ., dissenting.
Appeal from Supreme Court
Action by the O. J. Oude (}ompany. New
York, a corporation, against the Newark Sign
Ompany, a corporation, and others. There
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O. J. GUDE CO. V. NEWARK SIGN CO.
393
was verdict for plaintiff, from wblcb a rale
to show cause was allowed, with reserra-
tion of exceptions. The rule was dlacbarged,
and defendants appeal. Reversed, and venire
de novo awarded.
Kallsch & Kalisch, of Newark, for appel-
lants. Lum, Tamblyn A C!olyer, of Newark,
for appellee.
PER CURIAM. This was an action in the
Snpreme Ck)urt. The complaint alleges that
the plaintiff has been and is in the sign ad-
vertising business in general, that the de-
fendant corporations were engaged in the
same business, and were and are its competi>
tors and rivals throughout the city of Newark
and the surrounding territory; that Kelly
and Kavney were ofiBcers, directors, and em-
ployes of each of the defendant companies,
and were actively engaged in the conduct,
management, and promotion of the business
of each, and of their rivalry and competition
with the plaintiff ; that they, with Pratt and
CuUen, malldonsly intending to harass, an-
noy, and embarrass the plaintiff in the car-
rying on of its business, damaged and de-
stroyed Its signs and property, and caused
dissatisfaction among its customers; and to
injure and drive it out of business, etc., ma-
liciously conspired, combined, and agreed to
damage and destroy its signs and property,
and to caoae dissatisfaction among its cus-
tomers, and in pursuance of this design the
defendants chopped down, sawed off, burned
and otherwise mutilated and injured the
signs of the plaintiff, to its damage. At the
trial In the Essex circuit the Jury rendered
a verdict in favor of the plaintiff against tiie
defendants (except Cullen, as to whom the
plainUff took a nonsuit). From that verdict
a mle to show cause was allowed, vrlth
reservation of exceptions. The rule was dis-
charged, and the case is here on appeal on
the reserved exceptions.
There were many grounds of appeal relied
on by tlie appellants, but for the purpose of
disposing of the matter before us only those
grounds need be considered which have refer-
ence to certain transactions and a certain
controversy between the New Jersey Sign
Advertising Company (which is not a party
to this suit) and three of the defendants in
this suit, namely Samuel Pratt, Newark Sign
Company, and Newark Bill Poster Company,
evidence of which transactions and contro-
versy the conrt received in evidence and re-
ferred to in his charge to the Jury, over the
objection of the defendants.
[1] In offering this evidence, the plaintiff
sought to show that the above-mentioned
three defendants, in an earlier suit brought
against them by the New Jersey Sign Ad-
vertising Company In January, 1913, were
charged with the commission of acts Blmllar
to those charged against them In the present
suit; the complaint In the earlier suit hav-
ing alleged that the acts were committed in
pursuance of an unlawful conspiracy, com-
bination, and agreement entered into by the
three defendants above mentioned, and that
the acts were committed since January 20.
1907. The record of that suit was offered
and received in evidence. This was error.
The record tn the suit Just mentioned
throws no light upon the present controversy.
It was a suit based upon an alleged conspira-
cy entered Into in 1907, which was more
than seven years before the acts complained
of in the snit at bar. The plaintiff in that
suit was the New Jersey Sign Advertising
Company, and the plaintiff in the case at
bar is O. J. Oude (Company. The plaintiffs
were not the same In each case. It further
appears, upon an examination of the record
in the former case, that the answer filed by
the defendants denied the charges in the
complaint, and that the snit was never tried,
but was discontinued. It cannot be said
ttiat, because the New Jersey Sign Advertis-
ing Company, three years before the present
suit was commenced, accused three of the
present defendants of conspiring In 1907 to
injure it, especially without any verdict In
the case to establish the tmth of the accnsa-
tions, that those accusations in that salt
afford any light in determining whether
like accusations in the present suit are true.
It was highly Improper to place before the
Jury the record of the other case. It con-
fused the issues in this case and prejudiced
the defendants. It also affected the question
of punitive damages. The defendants could
not be required to meet the issues in the for-
mer suit.
[2] An effort was made to sobstantlate the
charges In the previous suit by the admission
of testimony showing that that suit was set-
tled. This was error. As the admission of
evidence of the bringing of that suit was er-
ror, testimony to the effect that it was set-
tled was equally erroneons.
[3} The trial judge, in dealing with the
matter in his charge, said that the Jury
should consider the earlier suit and the set-
tlement of it as showing that some of the de-
fendants had knowledge that similar charg-
es had been previously made. This too was
error, for, as ndther the bringing nor set-
tlement of that snit was competent evidence
for the plaintiff, it follows that the jury
could not lawfully give consideration to that
evidence in the pending suit.
The Judgment under review will be re-
versed, to the end that a venire de novo may
be awarded.
BIiACE, WHITE), HEPPBNHffilMBB, WII*
LIAMS, and OARDNBR, JJ., dissent.
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394
101 ATLANTIC RSPORTBB
(N.J.
(M N. J. Law, CO)
SOHWABZROCK v. BOARD OF EDUCA-
TION OF BAYONNB.
(Supreme Court of New Jersey. July 9, 1917.)
1. Schools and Schooi. Distbiots «=>63(2)
— Bjbmovai. or Officer — Jdkisdiction or
Statk Board and Offices.
A controversy as to whether a local board o{
education had rightfully removed a person from
a position ezistiiig under the school law is one
of which the commissioner of education and the
state board of education has jurisdiction under
School Law (4 Comp. St. 1910, p. 4727) « 10, in
a proceeding which can only result in affirming
or reversing the removal, though It involves
for determination thereof findings as to bis guilt
or innocence of the charge of attempted bribery.
2. Schools and School Districts €=>47—
Removal of Officer — Riohtfdlness —
Hearing bt Coumissioneb of Education.
The hearing by the Commissioner of Edu-
cation of the controversy of rightfulness of re-
moval by a local board of education of a person
from a position under the school law is a new
one, and he is not limited to a mere review of
the evidence taken before the local board, School
Law, § 10, providing that the facts involved
shall be made known to the commissioner by
sworn written statements, accompanied by cer-
tified copies of documents.
[Ed. Note. — For other cases, see Schools and
School Districts, Cent. Dig. §{ 93-99.]
S. Schools and School Districts ®=>63(2)—
DisiHSBAL or Officer — Sdfficienct or
Evidence.
Dismissal of an officer under the school law
by a local board of education on testimony of
one who has been convicted of perjury, in the
face of the officer's denial, is not justified.
4. ScBoou AND School Districts ^=»47 —
BmcoTAL or OrncEB — Setting Abide bt
State Board— Effeot.
Action of the state board of education In set-
ting aside the removal by a local board of edu-
cation of an officer under the school law has
the effect of a judgment.
[Ed. Note.— For other cases, see Schools and
Districts, Cent Dig. {§ 83-99.]
5. Mandakitb «=>10e(2)— Patmsnt or Sal-
ABT.
One whose removal from an office under the
school law by a local board of education has
been set aside by the state board is entitled to
mandamus, commanding the drawing and paying
of a salary warrant, on a showing of liaving
been ready and willing to perform his duty, and
refusal of the local board to allow him to do eo,
and refusal to pay him, and possession of mon-
eys applicable to the payment
[Ed. Note. — For other cases, see Mandamos,
Cent. Dig. K 218. 219, 221.]
6. MANDAinrs «=»ie3— Demurbbb to Alteb-
native Writ.
Averments of alternative writ of mandamus
are admitted by demurrer thereto.
[Ed. Note. — For other cases, see Mandamus,
Cent Dig. !| 841-343.]
Proceeding by Uustav G. Schwanrock
against the Board of Education of Bayonne.
Heard on certiorari of decision of State
Board of Education and on demurrer to
alternative mandamus. Decision sustained,
and writ granted.
Argued before Justice SWATZE, sitting
alone pursuant to the statute.
Mark Townsend, Jr., of Jeney City, for
SctawarcroclL Daniel 3. Hurray, of Bayonne,
tor Board of Education.
SWATZE, J. The certiorari at tlie suit of
tlie board of education brings up the decision
of the state board affirming the commissioner
of education and reversing the action of the
local board removing Schwarzrock from tlie
position of supervisor of buildings and re-
pairs.
[1] 1. I agree with the state board tliat
the controversy was one of which the com-
missioner of education and the state l>oard
had Jurisdiction under section 10 of the
school law. That controversy was whether
the local board Iiad rightfully removed
Schwarzrock from a position existing under
the school law. The proceeding could only
result in either atiirming or reversing the
removal. It could not result in any binding
judgment as to his guilt or innocence of the
charge of attempted bribery ; the fluding that
he was guilty or innocent could only be a
finding for the purpose of action by the
board, not for the purposes of the criminal
law. Whether in such a case the board
should act before action is taken by the
criminal courts is a matter resting in the
discretion of the board.
[2, 3] 2. It necessarily results from the
provision that the facts involved in any con-
troversy or dispute shall be made known to
the commissioner by written statements, veri-
fied by oath and accompanied by certified
copies of documents, that the hearing before
him should be a new hearing, and that he is
not limited to a mere review of evidence
taken liefore the local board. An examina-
tion of the evidence in this case makes it
clear that the commissioner and the state
board reached a correct result It wooild be
intolerable to permit a public official of good
repute to be dismissed from office on the
testimony of one who had been convicted of
perjury, in the face of the officer's denial.
[4-6] 3. The action of the state board set-
ting aside the removal of Schwarzrock baa
the effect of a judgment, and a mandamus
wlU issue in a proper case. Thompson t.
Board of Education. C7 N. J. Law, CSS, 31
AtL 168. The alternative writ in the pres-
ent case avers that Schwarzrock was ap-
pointed supervisor for three years at a sal-
ary of 11,800; that after his wrongful dia>
missal he was always ready and willing
to perform bis duties until July 1, 1916
(the expiration of his term), and that the
local board refused to allow him to do
so; that they refused to pay him the sum due
as salary, $3,000; that there are funds In
the bands of the commissioner of finance and
the custodian of titie school funds applicable
to the payment at said sum of $3,0(X>. These
averments are admitted by the demurrer.
Perhaps the defendant meant to challenge
the averments by the reasons, but it is a mls-
4ts»Far other cam see same topic and KBY-NDUBSR In all Kc7-Numb«r«d DlgMU and Indezaa
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BAIZ V. COEO A L. V. R. & IMPROVEMENT C».
395
take to say, as In reasons three and four,
tbat the writ does not show that the amount
claimed Is In possession of respondents, and
tbat it does not show that the respondents
are in irassesslon of moneys applicable to the
payment required by the writ The writ does
show these facts. If the defendants pieant
to traverse the averments they should not
have demurred. I cannot distinguish the
present case from Thompson v. Board of Edu-
cation. The writ should go. While It prays
relief In the alternative, that was proper in
view of the relator's uncertainty whetlier
there were funds in hand to meet his dalm.
In view of the admission of that fact, I see
no reason why the iieremptory mandamus
should not command the drawing of a sala-
ry warrant upon the custodian and the pay-
ment by the custodian, or other proper of-
ficer.
The rdator is entitled to costs.
(S7 N. J. Bq. 4S8)
BAIZ et al. v. CORO & Jj. V. R. & IMPROVE-
MENT CO. (No. 25/810.)
(Court of Chancery of New Jersey. May 11,
1917.)
1. CoBPOBATioNs €=>478 — Mortgages — Va-
LiniTT— AraEB-ACQUIBED PbOPERTT.
In 1892 the government of Venezuela grant-
ed a concession for the construction of the Coro
& La Vela Railroad, end in 1895 the grantee's
administrator assigned the concession to another
IndividDal, who reassigned it to a New Jersey
corporation known as the Coro & La Vela Rail-
road & Improvement Company. The original
concession authorized a transfer thereof to a
national or foreign corporation. Later in 1885
the corporation executed a mortgage to secure
its bonds covering all the tangible property, and
Including the concession contract and including
"all property that might thereafter be acquired
for use m connection with the mortgagor's busi-
ness, together with all the reversion, remainders,
income, tolls, revenues, rents, issues, and profits
arising out of or from the operation of the rail-
road or any part thereof, and privileges, benefits,
and appurtenances now or hereafter belonging
or in any wise appertaining thereto." In 1896
Venezuela by statute permitted the granting of
subsidies to railroads, prohibiting their trans-
fer to foreign governments, and providing that
transfers between private individuals, syndi-
cates, or companies must be previously approved
by the national executive. In 1^7 a conces-
sion on such terms was granted to the Coro &
I/a Vela Railroad & Improvement Company.
Through the mixed commission of the United
States and Venezuela the railroad's claim for a
concession was allowed in part, and the govern-
ment of Venezuela required to pay the amount
allowed to the government of the United States
for the benefit of the railroad. The government
of Venesuela then seized the railroad and oper-
ated it for a period of years. In 1900 the Gov-
ernor of New Jersey declared the railroad char-
ter void for nonpayment of taxes, and later a
receiver was appointed. In 1907 Venezuela
filed a petition in bankruptcy against the rail-
road, which was adjudicated a bankrupt, the
decree finding that the mortgage was mvalid,
tmt that the bonds, the greater part of which
were held by the Venezuelan government, were
valid, and the railroad's assets were sold under
bankruptcy proceedings. Held, that the mort-
gage of 1S}5, purporting to cover the concession
of 1892, if ever valid as to the original con-
cession, was not an equitable mortgage on the
after-acquired subsidy, represented by an award
of the mixed commission.
[Ed. Note.— For other cases, see Corporations,
Cent. Dig. i 1871.]
2. Railboads <s=9ie6— EqtnTABUC Mobtoao-
ES — CONSTKUCnON.
A somewhat strict construction is required
of railroad mortgages when ascertaining their
effect as equitable mortgages on after-acquired
property.
[Ed. Note.— For other cases, see Railroads,
Cent Dig. !S 616-518.]
3. Railboads €=>177— Mobtgagbs— Validitt
— ArTEB-AcQ.UIBED PbOFEBTT.
A railroad mortgage to secure its bonds cov-
ering "all the tangible property," and including
the concession contract and including "all prop-
erty that might thereafter be acquired for use in
connection with the mortgagor's business, to-
gether with all the reversion, remainders, In-
come, tolls, revenues, rents, issues, and profits
arising out of or from the operation of the "ail-
road or any part thereof, and privileges, benefits,
and appurtenances now or hereafter belonging
or in any wise appertaining thereto," if it creates
any right at all as to an after-acquired subsidy,
creates a right which can be asserted only after
some form of seizure of the subsidy.
[Ed. Note.— For other cases, see Railroads,
CJent. Dig. Si 391, 594-599.]
4. Judgment <S=3822(3) — VALinrrr — Arm-
AcquiBED Pbopebtt.
As the le^al situs of the right to receive the
subsidy was in Venezuela, the decree of Vene-
zuela that the mortgage was invalid foreclosed its
right to assert in the courts of New Jersey the
validity of the mortgage, so as to embrace the
subsidy, although the subsidy actually came in-
to the possession of the receiver in New Jersey.
[Ed. Note.— For other cases, see Judgment,
Cent. Dig. { 1500.]
6. COBPOBATIONS «=9482(1)— Vauditt— AlT-
KB-AOQUIBED PKOPEBTY — HOTCHPOT.
In such case held, that Venezuela was oblig-
ed in equity to put in hotchpot dividends receiv-
ed on her claim through the Venezuela bankrupt
proceedings.
[Ed. Note.— For other cases, see C!orporations,
Cent Dig. §i 1877-1879.]
Receivership proceedings by Emily M. Balz
and others against the C!oro & La Vela Rail-
road & Improvement Company. From an ad-
judication of the receiver of the Insolvent
corporation in respect to the allowance of
their claims, certain creditors appeal, and
Frank S. Bright, as counsel for the receiver,
applies for an allowance of counsel fees. Ap-
peal of the Republic <rf Venezuela not sus-
tained. On appeal of the Balz estate, affirm-
ed. Claim of Bright allowed.
fOhomas L. Raymond, of Newark, and
Francis P. Pace, of New York City, for Re-
public of Venezuela. M. T. Rosenberg, of
Jersey City, and Edgar J. Nathan and
Michael H. Oardozo, Jr., both of New York
City, for the executors of Balz. Charles
D. Thompson, of Jersey City, for Bright
Charles L. Oarrlck, of Jersey (Aty, pro se.
STEVENSON, V. C. There are in this pro-
ceeding three separate matters which have
been to a large extent heard together. It will
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101 ATLANTIC REPORTEB
(N.J.
be tbe function of this memorandum to set
forth, aa briefly as possible, the conclusions
which I have readied, and state the prin-
cipal reasons for such conclusions.
1. The first case to be considered is pre-
sented by the appeal of the United States of
Venezuela from the action of the receiver
in disallowing Its claim to a preferred charge
amounting to $114,700, and Interest to a large
amount thereon, under a mortgage alleged to
cover the entire fund In the receiver's hands.
I am not certain whether the receiver re-
jected this claim In toto, or allowed it as a
general claim, but rejected It as a preferred
claim under the mortgage referred to. How-
ever that may be, the evidence satisfies my
mind that the appellant holds 139 mortgage
coupon bonds of the Core & La Vela Rail-
road & Improvement Company of $1,000 each,
and that these bonds constitute valid obliga-
tions of this corporation, and that through
bankruptcy proceedings In Venezuela $25,300
of this bonded indebtedness was paid, leaving
the baliince ($114,700) with a large amount of
interest due and unpaid and entitled to pay-
mmt out of the fund In the receiver's hands,
either preferentially or concurrently with the
general claims which have been proved.
The only question to be considered in rela-
tion to this claim of Venezuela is whether it
stands aa an Incumbrance upon the fund In
the receiver's bands. My conclusion Is that
it does not, and the reasons for this conclu-
sion require some statement of the facts.
(1) On December 12, 1892, the original con-
cession contract for the construction of the
Coro & La Vela Ballroad In V^iezuela was
granted by the government of Venezuela to
"Manases Capriles and to his partners, as-
sociates, or successors." This concession or
contract does not appear to have been ap-
proved as required by law until March 26,
1895. By assignment dated July 8, 1895,
from the administrator and next of kin of
Manases Capriles, who was then deceased,
and his original "associates," this conces-
sion was transferred to Abram W. Naar.
Jacob Balz, of New York City, appears to
have been the promoter or the principal
original promoter of this Venezuela railroad
enterprise, and for the purpose of Its proper
exploitation a corporation was created under
the laws of <New Jersey entitled tbe Coro St
La Vela Railroad & Improvement Company,
among tlie objects of which was the construc-
tion and operation of this railroad. On Au-
gust 12, 1896, a month after Naar had acquir-
ed the concession from the Capriles syndicate,
he assigned it to this New Jersey corpora-
tion, the Coro & La Vela Railrced & Im-
provement Company. By the tenth article
.of this original concession It was provided
that:
"The grantee, his associates or bis successors,
will have tbe right to transfer or convey this
concession to another party, or to a national or
foreign corporation, with the same rights, condi-
tions, aiid obligations that are established, com-
plying with the formalities of tbe law, and giv-
ing due notice to tbe government."
There are grounds for arguing as will here-
inafter appear that this express provision
contemplated the assignment of the conces-
sion to a national or foreign corporation or
other party capable of carrying out, and in-
tending to carry out, the work of constructing
the railroad for tbe pr(»notlon of which the
concession was made. Tbe evidence bearing
upon this question Is In an unsatisfactory
condition. I think, however, that we may
assume, for present purposes only, that this
original concession expressly provided that
It might be assigned by way of mortgage to
secure money to a foreign corporation not
expressly authorized to construct railways
in foreign countries, and not Intending to
engage in such work.
On August 20, 1895, the Coro ft La Vela
Railroad & Improvement Company executed
In the usual form a mortgage to the Farmers'
Loan & Trust Company of New York City as
trustee, to secure an Issue of 150,000 bonds of
$1,000 each. The 139 bonds above mentioned
held by the appellant upon which its claim la
based are a part of this issue. Tbe mortgage
covered aU the tangible property of tbe cor-
poration, and also expressly included tbe con-
cession contract, and used terms which w,lll
be mentioned hereafter to extend its scope
as an equitable mortgage to after-acquired
property of a certain description.
On May 18, 1896, while the railroad, as I
understand the situation, was In process of
construction, there was a law or decree pass-
ed by the government of Venezuela permit-
ting the granting of subsidies under certain
conditions to its concessionaires engaged in
the construction of railroads at given rates
"for every section of ten kilometers finished."
This new law In article 16 provided as fol-
lows:
"The concessions cannot be transferred either
totally or partly to foreign governments. Trans-
fers between private individuals, syndicates or
companies must be previously approved by the
national executive in order to be valid."
This new law of Venezuela was approved
May 27, 1896.
On May 18, 1807, the government of Vene-
zuela, pursuant to the provisions of the last-
mentioned statute or decree, entertained the
application of an agent of the Coro ft La
Vela Railroad ft Improvement Company for
the "addition of an article" to the conces-
sion contract of 1892 "for the construction of
a railroad between the port of La Vela and
the city of Coro, granting a subvention from
the national treasury of twenty tbousand
bolivars for each kilometer of road," and
thereupon granted such subvention, payment
thereof to be made "at tbe completion of
each ten kilometers." This supplementary
concession of 1897 recites that tbe raUroad
was then In process of construction. There
can be no doubt that this subvention was
made to tbe Coro & La Vela Railroad &
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BAIZ V. OOEO & L. V. B. &- IMPROVEMENT CO.
397
Improvement Company, which was then en-
gaged In completing the railroad.
On Pebraary 18, 189S, the amount of the
subsidy which was dne from the govenmient
of Venezuela to the Coro & la Vela Railroad
& Improvement Company was ascertained,
according to law, by the proper oCBceis of the
Venezuelan governmait and "liquidated" at
the sum of 270,000 bolivars. No part of this
money was paid except in pursuance of the
award hereinafter mentioned.
The history of this railroad enterprise in
Venesuela for some years after the liquida-
tion of the subsidy in 1886 is very slightly
touched upon In the evidence. It is a matter
of history that Venezuela became Involved
in difflcultles with foreign governments, and
that her custom houses were seized and that,
largely through the Intervention of the Unit'
«d States, an adjustment of the financial
claims held by citizens of the United States
and other countries against Venezuela was
effected through a "mixed commission" creat-
ed by the United States of America and the
Republic of Venezuela. The claim of the
Goro & tA Vela Railroad against Venezuela
for the ascertained amount of the subvention
had been diligently pressed on behalf of the
railroad company by the direction of Mr.
Jacob Baiz, who seems to have stood behind
the whole enterprise as Its chief promoter
and cMef creditor. Mr. Bright, whose claim
to comi)ensation will hereinafter be consider-
ed, kept urging this claim through the diplo-
matic agencies at Wadilngton, under the
direction of Mr. Baiz until his death in 1899,
and aftei that under the direction or in the
name of his personal representatives or the
railroad company itself.
The railroad company at some time, before
or aftet the death of Mr. Jacob Baiz — prob-
ably some time after — became insolv^it or
for some other reason incapable of continu-
ing it« buainess, and the status of its prop-
erty in Venezuela is only vaguely indicated by
the evidence in this case. It Is alleged that
the goverment of Venezuela took possession
of all the railroad property and proceeded to
operate the railroad. It may be surmised
that whoever held and operated this railroad
made no profit therel)y.
On May 2, 1900, the Governor of New
Jersey by proclamation declared the charter
of the Coro & La Vela Railroad & Improve-
ment Company void on account of the non-
payment of taxes due the state for the year
1S97. Previous to the making of this procla-
mation the corporation had been enjoined by
tlie Court of Chancery of New Jersey from
the transaction of any further business on
account of the nonpayment of said taxes.
Whether the directors of the corporation at
the time of its dissolution by proclamation
made any effort to obtain or administer the
assets of the corporation does not appear, but
the inference seems to be warranted that
these directors took no steps in that direction.
In May, 1903, there being a prospect that
the "mixed commission" might make an
award in favor of the claim which Mr.
Bright had been urging, the present suit was
brought in this court by £mily M. Baiz and
others, executors of Jacob Baiz, deceased,
against the Coro & La Vela Railroad & Im>
provement Company and its directors pray-
ing that a receiver be appointed of all the as-
sets of the corporation, and that the directors
be enjoined from transferring or in- any way
interfering with the same, and thereupon
such injunction was granted and Mr. William
6. E. See, now deceased, was appointed re-
ceiver.
Upon the appointm^it of Mr. See as re-
ceiver Mr. Bright In May, 19(3, presMited to
the proper United States officials at Wash-
ington a memorial from the receiver setting
forth that the Coro & La V^ Railroad &
Improvement Company had completed the
railroad from La Vela to the city of Coro,.
in accordance with its contract, and that the
amount of the subvention had been liquidat-
ed by the Venzuelan officers at 270,000 boli-
vars, and that no part of this money had been
paid. The memorialist, prayed that the claim'
be presented by the agent of the United
States to the "mixed commission" according
to the protocol, etc., and that the agent of the
United States be directed to insist upon pay-
ment.
In June, 1903, the "mixed commission"
rendered Its judgment awarding the sum of
$61,101.70 in United States gold cohi "in
favor of said claimant," who is referred to.
as the Coro & La Vela Railroad & Improve-
ment Company, and directed that the said
sum should be paid by the government of
Venezuela to the government of the United
States of America in accordance with the pro-
visions of the convention under which the
award was made. No money was received by
the United States on this claim for a number
of years, owing mainly, I understand, to the
preference which was given to the payment
of certain other claims of great magnitude.
The entire amount has now been collected
from the United States government by a
series of receivers, and the present receiver
has in hand the sum of $51,000 for distribu-
tion pro rata among six or eight parties who
have presented their claims under oath to
one or another of these receivers, or for dis-
tribution pro rata among the holders of the
mortgage bonds. It will be seen that, if the
mortgage is held to be a valid incumbrance
upon this money, the United States of Vene-
zuela will take about fourteen-flfteenths of
the fund. If, however, the mortgage is not an
incumbrance upon this money, then, as I have
found the bonds to be valid obligations of the
insolvent corporation, the United States of
Venezuela will take a smaller, but still very
large, share of the fund, the amount of which
will depend upon the aggregate amount of
other claims which are allowed. It may be
noted in passing that it appears from a state-
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398
101 ATIiANTIC REPORTBR
(N.J.
ment of tbe claims presented to the receiver
that, if the appeal of Venezuela from the al-
lowance by the recover of the claim of tbe
estate of Jacob Balz, amounting to orer
$75,000, should be Anally sustained, the result
would be that Venezuela would not be great-
ly interested in securing the establishment of
the mortgage as a lien on the fund. If, how-
ever, the Baiz claim Is finally allowed, the
dividend of Venezuela will be reduced from
about fourteenth-fifteenths to about two-
thirds; the other clalou allowed besides
these two large ones being for comparatively
small sums.
I have referred to the obscurity in which
the evidence leaves the status of the railroad,
whldi seems to have been to a large extent
completed by 1898, during the eight or ten
years which followed. The sole purpose of
the present suit in this conrt seems to have
been to procure the appointment of a re-
ceiver through whom the dalm for the
270,000 bolivars could be presented to the
"nixed commission," and by whom any mon-
ey awarded on account of that claim oould
be received. The first receiver, Mr. See, ap-
pears to have made no effort to discover any
assets in Venezuela. In whose possession
these assets were in 1903, and thereafter un-
til 1908, we are not definitely Informed, al-
though, as I have said, it Is alleged that tbe
railroad property in Venezuela had been seiz-
ed by the government of Venezuela.
Continuing the history of this South Amer-
ican railroad enterprise. It appears that, how-
ever the railroad may have been then held
or operated, in December, 1907, the Republic
of Venezuela filed a petition in bankruptcy in
one of her courts agjtnst the Ck>ro & La Vela
Railroad & Improvement Company, and
thereupon promptly the court made an ad-
judication of bankruptcy against the com-
pany. Tbe Judgment of the court found. In
accordance with the allegations of tbe peti-
tion filed on behalf of the Republic of Ven-
ezuela, that Venezuela was a creditor of tbe
bankrupt as the holder of 140 of the said
Issue of mortgage bonds, and further found,
in accordance with the allegations and prayer
of the petition, that the mortgage was Invalid
under the laws of Venezuela as to all prop-
erty situate In that country. The bankruptcy
proceedings seem to have corresponded with
similar proceedings in rem under bankrupt
laws of other nations, but include a Judgment
invalidating the mortgage, although tbe in-
ference is that the mortgagee, tbe Farmers'
Loan & Trust Company of New York, was
not notified of the destructive claim which
was made against its mortgage, and in no
way appeared or was represented in the
proceeding. The Important fact, however, to
be noted is that Venezuela procured this de-
cree adjudicating in her court that she was a
creditor as the holder of these mortgage
bonds; that the mortgage which secured
these bonds and which covered practically all
the property of tbe mortgagor, and all of
which was situated in Venezuela, was, under
the laws of Venezuela, invalid as to such
property. Tbe administration of tbe assets
of the bankrupt then proceeded in a manner
corresponding with such proceedings in our
own courta The decree of bankruptcy di-
rected that creditors residing in Venezuela
should present their claims within 15 days,
"plus the traveling time," and that creditors
residing out of Venezuela be notified of the
adjudication of bankruptcy, and that sndi
creditors should prove their claims within
certain periods prescribed according to the
location of the creditors. Whether the estate
of Jacob Baiz was treated as resident In
Venezuela, or whether it was treated as resi-
dent In New Toric, and therefore entitled to
five months' notice, does not appear. It does
appear that the claim of the Balz estate was
not proved In this bankruptcy proceeding.
On October 26, 1008, the Venezuelan bank-
ruiA court made an order for tbe sole of the
railway, teleph<me line, real estate, boild-
ings, machinery, rolling stock, etc., of the
bankrupt, and In describing tbe property sold
expressly enumerated the "stock of tools,
implements, and other personal property for
the use and service of the railroad enterprise
situate at its stations at Coro and La Vela
and in the workshop." It is plain that the
liability of Venezuela under the award of the
"mixed commission" made five years before
this bankrupt sale was not included In the
assets Of the bankrupt which were inven-
toried and sold. This liability had been
merged in an award in tbe nature of a Judg-
ment requiring Venezuela to pay an amount
of money to the United States of America on
account of the claim of the Coro & La Vela
Railroad & Improvement Company, and the
bankrupt court of Venezuela made no attempt
to collect or sell the a.ward. The decree for
the sale of the assets of the company recog-
nized tbe claim of Venezuela, as the holder
of 140 of the mortgage bonds, to an amount
with interest then ascertained to be ov^
1,000,000 bolivars. The aggregate amount ot
tbe daims of IS other creditors was found by
the decree to be nearly 70,000 bolivars. Ven-
ezuela therefore was found entitled to about
fourteen-fifteenths of the entire proceeds ot
the bankrupt estate. The decree further ad-
judicates, a sale having been held and the
assets apparently having been bought in on
behalf of Venezuela, that tbe United States of
Venezuela was the owner of the assets "tor
the price of 139,094 bolivars, the said prop-
erty to form part of tbe private dominion
of tbe United States of Venezuela." It may
be noted that this final decree of October 26.
1908, adjudicates again that the mortgage of
the Farmers' Loan & Tmst Company "wa»
not known to the Venezuelan law, could not
produce tbe consequence of creating in favor
of tbe holders of said bonds any liens or spe-
cial rights over the properties situated to
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BAIZ T. CORO & Lb y. B. & IMPROVIEMENT OO.
899
Venemela as are those that are being sold
In this proceeding," and that the purchaser
would take free from all Incumbrances.
It may be also noted in passing, as one of
the curious and interesting features of these
Venezuela bankrupt proceedings in 1907,
that it does not appear that the Core & La
Vela Railroad & Improvement Company had
been doing any business in Venezuela or else-
where for at least four years. In 1900 this
Mew Jersey corporation was enjoined by the
Court of Chancery of New Jersey from pros-
ecuting any business on account of the non-
payment of taxes, and was dissolved by proc-
lamation according to law, and subsequently
In 1903 its entire property, so far as the
state of New Jersey could control the same,
was placed in the hands of a receiver sabject
of course to valid Hens.
(2) Proceeding now to the examination of
the question whether the mortgage of the
Farmers' Loan & Trust Company ever was a
valid incumbrance upon the original conces-
sion contract, there seem to be strong grounds
for answering this question adversely to Ven-
ezuela. The mortgagor was located in Ven-
ezuela. Apart from raising money and pur-
chasing material, there is no evidence that it
ever transacted the business of constructing
or operating a railroad anywhere else. It
was created for the purpose of constructing
and operating for 40 years this railroad in
Venezuela. This New Jersey company not
only established Itself In business in Ven-
ezuela, but accepted a concession contract
under Venezuelan law, and that contract ex-
pressly permitted its transfer to another par-
ty ".with the same rights, conditions, and ob-
ligations that are established, complying with
the formalities of the law and giving due
notice to the government." Whether the
"formalities of the law" were complied with
and notice was given to the government when
this assignment by way of mortgage was
made to the Farmers' Loan & Trust Company
are matters upon which the evidence gives
little, if any, information. The express pro-
vision for an assignment of the concession
under conditions seems to imply the exclu-
sion of assigjuuents without those conditions.
Moreover, the purpose of the article permit-
ting an assignment seems to have been to
permit an assignee to come in and construct
and operate the railroad under the terms of
the concession. We are certainly far away
from such an assignment when .we are pre-
sented with this mortgage made to secure
money and given to a trust company located
in the city of New Xork, which could hardly
be exi>ected to stand ready to go down to
Venezuela, construct this railroad and then
operate It for 40 years.
In view, however, of the unsettled ques-
tions of fact relating to this branch of our
Inquiry and the unsettled questions of Ven-
ezuela law iiertaining to it, I have concluded
to pass this fondamental and possibly fatal
objection to the establialtment of this mort-
gage as an incumbrance upon the right of
the Coro ft La Vela Railroad ft Improvement
Company to receive this award of money
now in the hands of the receiver, which
award was based upon a recognition and
enforcement of this right.
(3) But we are not dealing with the original
concession of May 12, 1892. For present
purposes, we may assume the mortgage to
have been a valid incumbrance upon all the
rights of the Coro ft La Vela Railroad &
Improvement Company under that conces-
sion. We are dealing with the subsidy grant-
ed by what la in effect a supplemental con-
cession In 1897, nearly two years after the
mortgage was made to the Farmers' Loan ft
Trust Company to secure this issue of $150,-
000 of bonds, and one year after a new law
had been passed by the government of Ven-
ezuela permitting such subsidies to be grant-
ed. When the mortgage was made not only
was there no subsidy provided for, but there
was no law under which any such subsidy
could be granted. It might be argued that
the mortgage of the original concession of
1892, especially in view of the words con-
tained In the mortgage with respect to after-
acquired property, would operate as an equi-
table mortgage upon supplementary articles
which might be added from time to time by
agreement between the contracting parties,
Venezuela and the mortgagor. Unfortunate-
ly for this argument, when we examine the
law of Venezuela passed in 1896 permitting
subsidies to be provided for in concession con-
tracts like this, we find the above-quoted ex-
press provision constituting article 16 of the
statute ;
"The concessions cannot be transferred either
totally or partly to foreini Bovernments. Trans-
fers between private individuals, syndicates, or
companies must be previously approved by tlie
national executive in order to be valid."
There Is no pretense that the allied equi-
table or anticipatory transfer made In 1895
to the Farmers' Loan & Trust Company of
New York was ever "previously approved"
or at any time approved by the national exec-
utive of Venezuela, as is expressly required
by the law of 1806 nnder whidi the subsidy
was granted to the Coro ft La Vela Rail-
road ft Improvement C<»npany. If It Is
worth while to infer or surmise as to the
reasons of this limitation upon transfers. In
view of the plain language of the law, it may
be noted that the manifest object of Vene-
zuela in providing by law for these subsidies
to railroad companies was to secure the con-
struction (tf railroads. Great evils can, I
think, be pointed out resulting in the preven-
tion of the construction of a subsidized rail-
road if the concession and the right to re-
ceive a subsidy under it could be mortgaged
to a foreign tmst company. In view, how-
ever, of what seems to be the plain prohibi-
tion of the law above set forth, any further
discnsslOB <rt tb* purpose and object of the
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101 ATIANTia REPORTER
(N.J.
law In order to aid In Its Interpretation seems
to be unnecessary.
In considering the question of the assign-
ability of the original concession of 1892, and
the supplementary concession of 1S97, It
must be borne In mind that, while the origi-
nal concession was assigned to Abram W.
Naar, and It does not appear that such as-
signment was permissible, or in fact was val-
id under the laws of Venezuela, or, tf valid,
was made In accordance with the express
terms of the concession itself, the subsequent
assignment by Naar to the €!oro & La Vela
Railroad & Improvement Company was recog-
nized In the most solemn manner by Venezue-
la, and the subsidy was made directly to that
company. It) is the transfer of rights under
the concessloni to a trust company in a for-
eign state by means of an Instrument operat-
ing as an equitable mortgage to secure loans
of money with which we must deal, and to
which we must apply these provisions of the
Venezuelan contracts and Venezuelan laws.
[1] In my judgment this mortgage of 1895
purporting to cover the concession of 1892, If
valid as to that original concession, could not
possibly operate as an equitable mortgage up-
on the after-acquired subsidy under the law
of 1896, when that law expressly prohibits
such a mortgage.
[2] (4) If we assume that the Coro ft I«
Vela Railroad & Improvement Company in
1895 could make a valid mortgage of this pos-
sible right to a subsidy, which possibly might
arise In the future under a new law which
Venezuela might possibly enact, and a sup-
plementary concession which Venezuela
might grant, my examination of the terms ol
the mortgage itself leads me to the conclu-
sion that it could not and did not at any time
opente as an equitable assignment or raort>
gage of the right of the mortgagor to receive
this subsidy, which right could not have been
lawfully created when the mortgage was
made, and in fact did not come into existence
until two years afterwards. The rule Is
well settled which compels a somewhat strict
construction of these railroad mortgages
when ascertaining their effect as equitable
mortgages upon after-acquired property. The
limits of this memorandum, if it is to have
any, will not permit a discussion o£ the
phraseology of this mortgage, which must be
reviewed for a minute Investigation of its
Interpretation and application to the sub-
vention. The mortgage undertakes expressly
to convey the grant and concession of 1892
and all property that might thereafter be ac-
quired by the mortgagor "for use In connec-
ti<» with its business as a railroad corpora-
tion." The authorities, I think, lead to the
limitation of this description of after-ac-
quired property to what may be so acquired
in connection wiOi the operation, not the
construction, of the railroad. The haben-
dum which counsel for Venezuela thinks fa-
von his view of the case defines the tenure
of the mortgagee as including the said prop-
erty and the premises, real and personal,
rights, etc., "hereby granted, assigned and
conveyed, or intended so to be, with all and
singular the reversion, remainders, income,
tolls, revenues, rents, issues, and profits aris-
ing out of or from the operation of said rail-
road, or any part thereof, and privileges,
benefits, and appurtenances now or here-
after belonging or in any wise appertaining
thereto." In my opinion the habendum
clause, the fimction of which it is to define
the tenure of the grantee, indicates that the
mortgage did not contemplate the acquisition
of a subsidy or subvention under a law which
might thereafter be enacted, but only mon-
eys which might be acquired from the con-
struction of the railroad. 3 Cook on Corp.
(4th Ed.) IS 856. 86T ; Humphreys v. McKls-
sock, 140 U. S. 304, 11 Sup. Ct 779, 35 L. Ed.
473; New Orleans Pacific Railroad Co. v.
Parker, 143 U. 8. 42, 12 Sup. Ct 364, 36 U
Ed. 66 ; Smith v. McCullough. 104 U. S. 25, 26
L. Ed. 637; Emerson v. European ft North
American Ry. Co., 67 Me. 387, 24 Am. Rep. 39.
(5) If we assume that the mortgage con-
tains language which should be construed ns
creating under certain c<mditions an equita-
ble incumbrance upon this after-acquired
right to the subvention, I think that the au-
thorities will not permit the establishment of ,
such an equity In favor of the mortgage un-
der the circumstances proved in tills case.
In the first place, it should be noted that no
attempt has been made to angue that the
mortgagee could have taken possession of this
sum of 270,000 bolivars if upon the liquida-
tion of the subvention at that sum the money
had been paid by Venezuela. The most that
has been argued, and as I think can possibly
with any show of reason be argued, is that
upon the mortgage coming due or deftiult in
its covenants being made the equity of the
mortgagee in respect of tills money would
arise. That the mortgagor before the mort-
gage fell due could collect the 270,000 bolivars
and expend them in any legitimate way can-
not be doubted.
Tbe mortgage, following the usual fbrm,
provides that until default, eta, the mort-
gagor should be entitled "to remain in the
full possession, use, and enjoyment and con-
trol" of all the property mortgaged or In-
tended to be mortgaged, and also should be
entitled "to manage the same and to receive
and use the income," etc., and "all mone.vs
payable and receivable or derivable there^
from." The mortgage further provides that
in case of default for six months to pay.
etc., the mortgagee might take possession of
the mortgaged property and conduct "the
business operations" of the mortgagor and
exercise Its franchises and collect the rev-
enues, etc., and after deducting the expenses
apply tbe residue of the money to the pay-
ment of the amount due on the bonds. The
mortgage also provided that in case of de-
fault, etc, the entire mortgage debt might
be declared to be dae, and thereupon tlie-
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BAIZ T. COBO & L. V. S. ft IMPBOVEMENT CO.
401
mortgagee might aell the mortgaged property
at public auction in the manner preacribed.
ProTlslon waa also made in the mortgage
for the appointment of a recdver upon the
commencement of any JnA.clal proceedings to
enforce the rights of the mortgagee and the
bondholders.
[3] I think imder the proyialons of this
mortgage, the meet Important of which are
above set forth, the right of the mortgagee
and the bondholders to have this instrument
of mortgage enforced as an equitable mort-
gage upon this subsidy, the right to widch
did not exist when the mortgage was made,
does not appear to have been contemplated
as liable to come into existence by the par-
ties to the mortgage, and in fact came into
existence two years afterwards — a right per-
taining to the construction of the railroad,
and not to Its future operation — can only be
asserted after some form of seizure of the
sudsidy or the property with which it was
connected, or the institution of some proceed-
ing to enforce the mortgage. While the mort-
gagee was standing aside and making no
effort in any way whatever to enforce Its
mortgage even upon the tangible property of
the mortgagor, and was leaving the mortgagor,
80 far as it (the mortgagee) was concerned, in
full possession and control of all its property,
including this subvention, the mortgagor had
full power as against it (the mortgagee) to
make or suffer any lawful transfer of this
subvention, this right to receive the subsidy.
Oilman v. IlL & Miss. Telegraph Co., 91 IJ.
S. 603, 23 L. Ed. 405; American Bridge Ca
V. Heldelbach, 94 U. S. 798, 24 £>. Ed. 144;
Freedman's Savings ft Trust Co. t. Shepherd,
127 U. S. 494, 8 Sup. Ct 12!50, 32 L. Ed. 163;
Zartman v. First Nat Bk., 189 N. X. 267,
82 N. E. 127, 12 I* R. A. (N. S.) 1083; Smith
T. Eastern Ry. Co., 124 Mass. 154.
In this situation of affairs in 1000 the cor-
poration was enjoined from prosecuting any
business, and in 1903 all its assets, so far as
the state of New Jersey controlled such as-
sets, were vested In a receiver appointed by
a New Jersey court Moreover, this receiv-
er forthwith proceeded to assert his right as
the successor of the Coro ft La Vela Rail-
road ft Improvement Company to the only
assets which he seems to have noticed, viz.
the right under the subvention from Vene-
zuela and the ascertainment of the amount
thereof by the proper Venezuelan officers, to
recover through the "mixed commission"
the amount of the subvention, viz. 270,000
bolivars. The receiver asserted his own
right not the right of the mortgagee, whom
he disregarded, and the mortgagee and the
trandbolders stood by and allowed him to
recover and receive the moneys.
Who in 1903 were the holders of this
Issue of bonds we are not Informed. Venezu-
ela app^red In 1007 as the owner of fonr-
teen-fifteenths of them. Whether or not
some time during a period of eight or ten
years which preceded the bankruptcy pro-
101A.-26
oeedings in Venezuela in 1907 the valuable
assets of the railroad were seized by Venezu-
ela or some other party, we are obliged to
infer that the mortgagee and the bondholders
did not make the slightest effort to assert
any rights under the mortgage in any way
whatever. The entire effort to enforce the
subventi<m and collect the amount thereof
through the "mixed commission" was made
by the New Jersey receiver without the
slightest aid from the mortgagee or the bond-
holders. This successful operation of the
receiver to recover money alleged to have
been mortgaged for more than the amount
thereof seems to have been the plainest pos-
sible assertion of a right in the receiver in
derogation of any alleged right or claim
of the mortgagee. Except in certain cases,
a receiver of a dissolved or insolvent cor-
poration administers only the equity of
mortgaged properties. It would be a strange
result it seems to me, if this so-called equi-
table mortgagee could be allowed to stand by,
assert no right in any way to this subvention,
and then when the receiver primarily repre-
senting the general creditors had effected a
recovery of the amount of the subvention,
a sum amounting to over (60,000, come Into
a court of equity and have its mortgage es-
tablished as an equitable mortgage upon the
$60,000 under the terms of the mortgage re-
lating to after-acquired property.
(6) The Republic of Venezuela through its
representative and attorney, as we have
seen. Instituted the proceedings in bankrupt-
cy against the Coro ft La Vela Railroad ft
Improvement Company in 1907, ignoring the
fiict that long before the corporate existence
of the alleged bankrupt had been terminat-
ed under the laws of New Jersey, under
which the bankrupt corporation was created,
and also Ignoring the fact that the New
Jersey Court of Chancery had placed this
New Jersey corporation under an injunction
restraining It from doing any business, and
undertaking under the statute of New Jersey
to place all the assets of said corporation,
wherever sttnate, in the possession of a re-
ceiver then appointed. In the petition which
the Republic of Venezuela filed in these bank-
rupt proceedings, she asserted that the mort-
gage to the Farmers' Loan ft Trust Company
was Invalid as to property situate in Venezu-
ela, and procured an adjudication to that
effect Reasons may be surmised why Vene-
zuela In 1907 and 1908, being the bolder of
130 or 140 of these bonds, preferred to have
the mortgage declared void, and the Farmers'
Loan ft Trust Company excluded from con-
sideration, provided the bonds themselves
were adjudged valid obligations representing
a valid debt but in regard to this matter
the evidence la unsatisfactory.
[4] The point to be brought oat is that
Venezuela in 1897 and 1898, in the most
solemn manner in her own court asserted
the inralldity of this mortgage as a mortgage
ot property situate In Venezuela, and pro-
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101 ATLANTIC REFOBTKB
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cured In that court an adjudication to that
effect, and subsequently received as a general
creditor holding 140 of the mortgage bonds
the great bulk of the proceeds of the assets
of the bankrupt administered In the Venezue-
la court, which assets were described in
and were attempted to be covered by the
mortgage; and now, having secured this re-
sult, Venezuela comes forward In the Court
of Chancery of New Jersey and seeks to
establish the validity In New Jersey of this
same mortgage, and have this court enforce
the mortgage as an equitable mortgage cov-
ering the proceeds of this subvention as aft-
er-acquired property. Of course, there is no
inconsistency in the claim of Venezuela that
this mortgage was inoperative upon prop-
erty In Venezuela under Venezuelan law, but
was valid and operative in respect of prop-
erty situate in New Jersey under New Jer-
sey law. The Inconsistency, however, is
made manifest when we consider the legal
Bitus of the right of the Coro & La Vela
Railroad & Improvement Company to receive
this subvention of 270,000 bolivars under
the supplemental concession made by Venezu-
ela, in pursoance of its law enacted In 1896,
a year after the mortgage was made. The
Coro 3e La Vela Railroad & Improvement
Company was transacting its business as
a railroad corpoitttion wholly in the state
of Venezuela. The Venezuelan decree of
bankruptcy declared that the corporation
had its de facto domicile in that country,
and as such was amenable to legal proceed-
ings, Including bankrupt proceedings in the
Venezuelan courts. Is it not plain that this
right under the supplemental concession of
1S97 to a subsidy from the state of Venezuela
had its situs as property in that state, where
all money due under its terms was payable?
The right to receive this money arose under
a contract which was made between parties
domiciled in Venezuela, and which was to
l>e wholly performed in Veneznela.
It seems to me that it only makes con-
fusion of thought to consider the situs of this
money in the hands of the New Jersey re-
ceiver. This money was never mortgaged.
This money represents an asset of the in-
solvent corporation which at all times had its
situs in Venezuela. The government of the
United States through a treaty with Venezu-
ela procured an award from arbitrators sit-
ting in Europe for the payment of a sum of
money to the United States In satisfaction of
the original claim of the Coro & I..a Vela
Railroad & Improvement Company, which
■was established and "liquidated" at 270,000
bolivars in 1898 by the officials of Venezuela
acting in that state. The mortgage either
covered the after-acquired right to a sub-
sidy or it did not If the mortgage became
uquitably extended so as to cover this right
{<> a siib^dy, it must have covered that
right when such right had its situs as prop-
«rty exclusively in Venezuela. If when the
amount due under the sabvention wag lioui-
datcU the obligalion of Venemda to pay that
amount created an indebtedness, it still re-
mains that the mortgagor "acquired" this
indebtedness as property while domiciled In
Venezuela; such indebtedness being payable
in Venezuelan money in the state of Venezuela
and by the sovereign state itself, which was
and is located permanently witUn its ter-
ritory. Notwithstanding the rules which in
some respects are conflicting in regard to the
legal situs of debts for various purposes, in
my judgment this indebtedness of Venezuela
to the Coro & La Vela Railroad & Improve-
ment Company should be considered for the
purposes of this mortgage, as having its
situs in Venezuela. Veneznela, however, pro-
cured an adjudication in her court that the
mortgage was void in Venezuela as to all
property situate in that state. Such adjudi-
cation necessarily Includes the proposition
that the mortgage was void as to this in'debt-
edness under the subvention, or, to state the
matter otherwise, that under the laws of
Venezuela this mortgage could not be allow-
ed any force or effect whatever In its rela-
tion either to the subvention or the liquidat-
ed indebtedness under the subvention, both
of which the Coro & La Vela Railroad &
Improvement Company "acquired" long aft-
er the mortgage was made.
The fact that this money has come into
the possession of the New Jersey receiver
while giving the New Jersey court full Ju-
risdiction over it does not affect its relation
to the mortgage as an equitable mortgage
of after-acqulri/d property. The receiver
might be a resident of another state, or even
of Venezuela. Such a thing is legally pos-
sible.
The inconsistency of the claim of Venezu-
ela in this court consists, I think, in the fact
that, having procured in her own court a de-
cree that this mortgage was absolutely void
as to all property covered by it which was
situate in Venezuela, she now endeavors to
get a decree from this court precisely to the
contrary. It is true counsel for Venezuela
has made no argument and presented no
theory in regard to the situs of the asset of
this Insolvent corporation represented by the
fund in the receiver's bands. His argument
seems, however, to assume tliat this fund
represents property acquired by the mort-
gagor after the mortgage was ^ven, situate
in the state of New Jersey, or, at any rate,
not situate in Venezuela.
It has not been argued that there has been
any ctiange of the situs of the original after-
acquired subvention. Until this New Jersey
corporation was dissolved by proclamation
and its assets were vested in a receiver, and
It was enjoined from acquiring property by
the decree of this court, there certainly was
no transfer from Venezuela to New Jiersey
or any other state of the situs of the sub-
vention under the supplemental concession
of 1887, or of the indebtedness of 270,OOC
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BAIZ T. COBO ft I., y. S. & IMPBOVBlfENT CO.
403
twUvars wbfch was ascertained to be due
under the subTentlon in 1898. Wben under
a treaty between tbe United States an'd Ven-
ezuela the "mixed commission" awarded the
payment of the 270,000 bolirars with inter-
est thereon in satisfaction of all claims under
the subTentlon, such payment was directed to
be made to the United States government,
and the United States gOTemment then turn-
ed over the money to the New Jersey receiv-
er. The Coro ft La Vela Railroad & Improve-
ment Company never "acquired" this money
when it was pafd to the United States govern-
ment or when It was transferred to tbe New
Jersey receiver. Tears before the first pay-
ment by Venezuela on account of the award
was made to the United States Government
the Coro ft La Vela Railroad ft Improvement
Company had been dissolved by proclama-
tion, and had been rendered incapable of ac-
quiring any property, and a receiver in New
Jersey of all its assets had been appointed.
The fact that in tbe award the Coro & La
Vela Railroad & Improvement Company Is
mentioned as the claimant is a matter of no
consequence. If at that time the right to
this money was an asset within the Jurisdic-
tion of New Jersey, such asset was vested
In the receiver, and it was the receiver that
appeared as the actor in the memorial ad-
dressed to the "mixed commission" present-
ing the claim held originally by the Coro ft
La Vela Railroad & Improvement Company.
It is evident, I think, that Venezuela, In
order to sustain her claim to a preferential
payment on account of this mortgage, must
necessarily take the position that the mort-
gage equitably covered this indebtedness of
270,000 bolivars, the situs of which was in
Venezuela, when the right to receive it was
"acquircid" by the Coro ft La Vela Railroad
ft Improvement Company, notwithstanding
that Venezuela succeeded in procuring a de-
cree In her own court that the mortgage as
to all property situate in Venezuela was In-
valid.
[5] (7) I state tbe conclusion without argu-
ment and with a mere citation of a few au-
thorities to sustain it that in this case tbe
claimant (Venezuela) is obliged in equity to
put In hotchpot the dividend which she re-
ceived on her claim through the bankruptcy
proceedings In Venezuela. The other cred-
itors wbose claims have been presented to
tbe receivers In this case, and have been sus-
tained, are entitlekl to stand on a level with
the Republic of Venezuela. Wharton on Con-
flict of Iaws, I 798; Phillips v. Hunter, 2 H.
Black, 402; Banco de Portugal v. Waddell,
L. R. 6 App. Cases, 161 ; In re Bonnaffe, 23
N. T, 169.
This rule of equity and equality, which ap-
plies to the case of a creditor who has al-
ready received a dividend in foreign bank-
ruptcy proceedings, is in somewhat clumsy
language declared and enacted in the present
Unlteid States bankrupt act (section 65 d).
2. The appeal of the Republic of Venezuela
from tbe adjudication of the receiver allow-
ing the daim of the Balz estate la not sustain-
ed. I do not recall that there Is any ques-
tion as to the amount of that claim. If there
is such question the matter can be determin-
ed upon settlement of the decree. The proof
establishes the claim as something over $70,-
000.
It la unnecessary to consider the status of
the five bonds alleged to be held by the Balz
estate as collateral to Its claim, because of
the conclusion which I have reached that
the bonds are not equitable liens on the fund,
but only represent a general indebtedness.
These five bon'ds therefore do not Increase
tbe claim of the Balz estate amounting to
over $70,000, nor do they give to the Baiz.
estate any greater right or equity than that
which the estate holds as an established gen-
eral creditor.
8. The claim of Mr. Bright baa received
so much attention from court and counsel
that an extensive discussion of it seems quite
unnecessary. This claim was the subject of an
oral opinion rendered upon its first presenta-
tion some time ago. My conclusion in regard
to this claim has virtually been announced^
and the grounds therefor have been indicated.
I may say briefly that this whole recovery
from the Venezuelan government through the-
"mixed commission" is the product of the in-
dustry, skill, and zeal of this Washington,
lawyer, Mr. Bright, who originally took hold
of the matter upon a somewhat indefinite,
but contingent, retainer under an arrangement
with Mr. Baiz In his lifetime, acting for the
Coro & La Vela Railroad ft Improvement
Company. To ignore Mr. Brlght's substan-
tial claim and to turn over to these creditors
the asset which he recovered under the cir-
cumstances proved would, in my Judgment,
be a flagrant violation of the plainest prin-
ciples of equity and Justice. If Mr. Bright
had not succeeded be would have lost the
fruits of all his protracted labors. My con-
clusion is that, in addition to the sum of
$6,000 which heretofore was allowed to him,,
he is Justly entitled to the reduced sum which
his counsel asked for on bis behalf, viz.
$».000.
If there are any matters overlooked In this
somewhat complex mass of litigations dis-
posed of by this memorandum, they may be-
brought to my attention upon settlement of
the decree which will be upon notice.
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101 ATLANTIC REPORTER
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(90 K. J. Law, S86)
HOFF T. PUBLJO SBRVIOB RY. CO.
(Supreme Onirt of New Jersey. JToiie 22,
1917.)
(Sylldbui Jm the Court.)
1. CUbriebs «=3284(1>— Gabkiaqb or Pabskn-
OEII8 — Protection.
A carrier owes to Its passenger the duty of
protecting him from the violence and insults of
other passengers so far as this can be done by
the exercise of a high degree of care, and it will
be held responsible for its servant's negligence in
this particular when by the exercise of proper
care the act of violence might have been foreseen
and prevented.
[Ed. Note.— For other caaea, see Carriers,
Cent Dig. SS 1125, 1127.}
2. Cabriebs €=>284(1)— CABRiAas or Passkn-
OEBS — Protection.
The failure of the servant of a carrier to pre-
vent the commission of an assault upon a pas-
senger by another passenger, to be a negligent
failure or oIBission, must be a failure or omis-
sion to do something which could have been
done by the servant ; and therefore there is in-
volved the essential ingredient that the servant
had knowledge, or with proper care could have
had knowledge, that the tort was imminent, and
that he had that knowledge, or had the opportu-
nity to acquire it sufficiently long in advance ot
its infliction to have prevented it with the force
at his command.
[Ed. Note.— For other cases, see Carriers,
Cent. Dig. §{ 1125, 1127.]
3. Triai, «=3l7S— Morion tob Dibbotkd Vkb-
OICT.
In passing upon a motion for the direction
of a verdict, the court cannot weigh the evi-
dence, but is bound to cmcede to be true all evi-
dence which supports the view of the party
against whom the motion is made, and to give
to him the benefit of all legitimate inferences
which are to be drawn in his favor.
(Ed. Note.— For other cases, see Trial, Cent.
Dig. H 401-103.]
4. Oabbiebs «s»318(1)— Cabbiaob or Fassbn-
GKBs— Protection — Neoligence.
The fact that a passenger was intoxicated
to the knowledge of the carrier's conductor, the
fact that he had repeatedly insulted a woman
passenger in the presence and hearing of the
conductor, and immediately after the last in-
sulting remark arose from his seat and struck
her twice, all without any word of admonition
or protest by the conductor or attempt upon his
part to prevent the assault, although be was
throughout within arm's reach of the drunken
man, are circumstances from which the jury
could properly infer that with proper care upon
the part of the conductor the act of violence
might have been foreseen and prevented.
[Ed. Note. — For other cases, see Carriers,
Ont. Dig. a 1307, 13U8.]
Appeal from Circuit Court, Hudson County.
Action by Helen Hoff against the Public
Service Railway (Company. From a Judg-
ment tor plaintiff, defendant appeals. AjC-
flrmed.
Argued February Term, 1917, before TREN-
CHARD and BLACK, JJ.
Lefferts S. Hoffman and Leonard J. Tynan,
both of Newark, and Oeorge HI. Blake, of
Jersey <3ity, for appellant. Alexander Simp-
son, of Jersey City, for respondent
TRENOHARD, J. Thte suit was brought
by the plaintiff, a passenger oa a trolley car
of the defoidant company, to recover for in-
juries sustained by ber by reason of the
failure to protect ber as a passenger. The
plaintiff bad a verdict of the jury, and the
defendant appeals.
The defendant complains of the refusal
of the trial Judge to direct a verdict In its
favor, and the determination of the propriety
of that action will dispose of eveiy qucetioa
raised and argued.
We are of the opinion that the refusal
to- direct a Terdlct was rl«ht At the time
when the moticMi -was made, it was open to
the Jury to Infer from the evidence, if they
saw fit, the following matters of fact: The
plaintiff, a young woman, boarded a closed
pay-as-you-enter car of the defendant com-
pany on March 20, 1916, at First street, in
Bayonne. It was late at night, and there
were some men on the car who Iiad been to a
prize fight and who had been drinking. As
she walked into the car, one of the men said,
"Look who is here!" or "Look who is ami-
ing!" The plaintiff was agitated, and walk-
ed into the car without paying her fare^ and
afterwards got up and Qald her fare. As
she i>assed the man the second time he again
spoke to her, saying, "Hello Chicken!" and
addressed other insulting remarks to her as
she was jwying her fare. When the car
reached Sixteenth street (where she wished
to alight) as she passed the drunken man he
said, "Hey, Chicken, take us along." The
plaintiff resulted this remark and turned and
safd to him, "You insulted me since I got on
this car ; If yon Insult me again I will smack,
your face." The man then arose from bis
seat and struck her twice, once in the breast
and once In the face, severely injuring ber.
These insulting remarks made by the drunk*
en man to and concerning the plaintiff were
all in the presence of the conductor of the car
(who stood within two feet ot the man), and
were heard by him, but he uttered not a word
of admonition or protest and made no ettoet
to protect the plaintiff from such insults, nor
from the assault, although he knew that the
man was intoxicated.
[1] Now the rule is that a carrier owee to
Its passenger the duty of protecting him or
ber from the violence and insults of other
passengers, so tar as this can be done by the
exercise of a high degree of care, and It will
be held responsible for its servant's negli-
gence In this particular, when, by the exer-
cise of proper care, the act of violence might
have been foreseen and prevented. Exton v.
Central R. Co., 62 N. 3. Law, 7, IS Atl. 486,
56 L. R. A. 608 ; Id., 63 N. J. Law, 356, 46
Atl. 1099, 66 L. R. A. 608.
It is unquestionably the right of a carrier
to control a person who is behaving lu an
Improper manner on its conveyance, or to
eject a person who refuses to desist from ob-
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FAIBVIBW DEVELOPMBNT. CO. t. FAT
405
Jectlonable and Indecent conduct, or whose
comlitlon Is such as to render his presence on
the conveyance oSensiTe or dangerons to the
reasonable comfort or safety of other passen-
gers. And, having this power of control or
ejectlmi, it is <»ly reasonable to hold the
carrier liable in case its negligent fallara to
eserdse it resolts in injury to a possoiger.
The gist of the action for Bucb injuries is
the negligence of the carrier or its officers in
charge of the conveyance.
[2] The negligent omission ot the servant
of a carrier to prevent the commission of a
tort upon a passenger by fellow passengers
being, as we have stated, the basis of the car-
rier's liability to a passenger injured by such
tort, it follows, of course, that the failure to
prevent the commission of the tort, to be a
negligent failure or omission, must be a fail-
ure or omission to do something which could
have been done by the servant; and therefore
there is involved the essential Ingredient that
the servant had knowledge, or with proper
«ate could have had knowledge, that the tort
was Imminent, and that he had that knowl-
edge, or had the c^portunlty to acquire it,
sufficiently long in advance of its infliction to
have prevented it with the force at bis com-
mand.
The defendant argues that the evtdMice
conclusively shows: (1) That the man who
committed the assault upon the plaintiff was
not drunk; and (2) that its conductor had
no reason to anticipate the assault, and
hence that a verdict should have been direct-
ed in Its favor. But this contention is not
wdl founded in fact
[3,4] In passing upon the motion for a dl-
rectlMi of a verdict for the defendant, the
conrt cannot weigh the evidence, but Is bound
to concede to be true all evidence which sup-
ports the view of the plaintiff, and to give her
the benefit of all legitimate inferences which
are to be drawn in her favor. So considered,
it was open to the Jury to find both that the
passenger who assaulted the plaintiff was
drunic, and that the conductor had reason to
anticipate the assault sufficiently long in ad-
vance to have prevented It Of course, the
mere fact that a passenger may have drunk
to excess will not, in every case, Justify Ms
expulsion from the car. It Is rather the de-
gree of intoxication, and its effect upon the
man, and the fact that by reason of the in-
toxication, he Is dangerous or annoying to
the other passengers, that gives the right or
Imposes the duty of expulsion. In the pres-
ent case the mere fact that the drunken man
was not ejected is not a controlling circum-
stance. But the fact that the man was in-
toxicated to the knowledge of the conductor,
the fact that he had repeatedly grossly insult-
ed the plaintiff in the presence and hearing
of the conductor, and immediately after the
last insnltlng remark, arose from his seat
and struck the plaintiff twice, all without
any word of admonition oi protest by the
conductor or attempt upon his part to pre-
vent the assault although he was throughout
within arm's reach of the drunken man, are
circumstances from which the Jury could
properly infer that with proper care upon
the part of the conductor the act of violence
might have been foreseen, and prevented.
Hie Judgment bdow will be affirmed, with
costa.
(90 N. J. lAW, 427)
TAIRVIEW DBVEJLOPMBNT CO. v. PAX.
rAIBVlEW HEIGHTS CEMETEBT CO. v.
SAME.
(Supreme Conrt of New Jersey. June 6, 1917.)
1. Taxation «=»208— Bxesiptions— Statotb
—Construction.
Exemptions from general tax burdens of the
state are not favored by the law, and will not
be construed to exist unless the statute invoked
to support them expresses the legislative inten-
tion in clear and unmistakable terma
[Ed. Note.— For other cases, see Taxation,
Cent Dig. i 343.]
2. Taxation «=3245— EIzbhftiors— Statutb
— CoNSTEUCnOW.
tinder Rural Cemetery Act (P. L. 1851, p.
254) S 4, as amended by Laws 1883, p. 123 (i
Comp. St 1910, p. 373), expressly providing that
any portion of the property of a cemetery asso-
ciation not actually set apart and used for bur-
ial purposes shall be subject to taxation until
it has been so set apart and used for actual pur-
poses of burial, etc., portions of the proper^
owned by a cemetery association and by a corpo-
ration holding such land in trust for a cemetery
association remaining practically in its natural
state and having no actual use or reasonable
contemplated use for cemetery purposes, was
subject to taxation.
[Ed. Note.— For other cases, sea Taxation,
Cent Dig. | 415.]
Two writs of certiorari by the Fairvlew
Deverl(9)ment C<Hnpany and the Fairvlew
Heights Cemetery Company against Thomas
Fay, collector, removing fissessments and
taxes by the borough of Fairview. Taxes at-
flrmed.
Argued February term, 1917, before
SWAYZB, MINTDBN, and KALISCH, JJ.
Weller & Lichtenstein, of Hoboken, for
prosecutors. Edwards & Smith, of Jersey
City, for defendant
MINTUBN, J. Two cases Involving a
claim of exemption from taxation are pre-
sented by these writs In the first Instance
the boron^ of Fairview, in Bersen county,
levied a tax on the assessed value of the
property of the Fairview Heights Cemetery
Company, comprising about 50 acres, for the
year 1913. The prosecutor is organized un-
der the cemetery act (C. S. p. 370), and owns
and manages a cemetery comprising about
65 acres, 50 acres of which are not in use for
cemetery purposes. The undeveloped section
remains practically in Its natural state. It
was assessed and Is taxed by the borough,
from which assessment the prosecutor ap-
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101 ATLA^rnO REPORTBK
(N.J.
pealed to ttie county board, which board sus-
tained the assessment and tax. The Insist-
ence of the prosecutor is that the entire tract
In use and out of use Is exempt from taxa-
tion.
t1] The cemetery acts have frequently been
before this court, In various aspects of liti-
gation, and from the Tiews expressed as the
result of those adjudications, the following
principles may be gleaned' The fundamental
rule pervading all exemptions from the gen-
eral tax burdens of the state is that they are
not favored by the law, and will not be ctm-
Btrued to exist unless the statute Invoked to
support them expresses the legislative inten-
tion in clear and unmlstalcable terms. Mau-
soleum Builders v. State Board, etc., 88 N.
J lAw, 692, 96 Atl. 494; Cooper Hospital v.
Camden, 70 N. J Law, 478, 67 Atl. 260; Bose-
dale Cemetery Co. v. Linden, 73 N. J. Law,
421, 63 Ml. 904.
[2] In enacting legislation of this general
charactet whose main and fundamental pur-
pose ie the protection under proper manage-
ment of the bodies of the dead, it is not rea-
sonable to assume that the power conceded
by the Legislature to cemetery associations,
for that purpose, is so comprehensive in scope
as to enable them to purchase tracts of terri-
tory, and to hold them unimproved and unde-
veloped for any purpose, out of the taxable
assets of township, county, and state asaess-
ments. If such a construction of this legis-
lation were to be admitted, there would ap-
pear to be no limit to the bomids of the own-
ership of the corporation, within the terms
prescril)ed in the act, except the financial
carrying capacity of the corporation Itself,
and the following case involving a claim for
exemption upon this ground will enable one
to perceive how even that protective limi-
tation may be evaded in actual practice.
The mere organization of a company, un-
der the cemetery acts, and the purchase of
land thereafter, without expenditure to im-
prove or develop it, but the mere passive
holding of the land, as it were by a species
of mortmain, is not enough to bring the
claim for exemption within the language and
spirit of this legislation. Ownership and use
seem to be the legislative tests upon which an
exemption from taxation of this character
may legally be based. Section 4 of the rural
cemetery act in 1883 was amended by a pro-
viso reading that any portion of the property
of any such company "not actually set apart
and used for burial purposes, shall be subject
to taxation," etc. L. 1883, p. 123. The
amendment of 1889 made no change in this
feature of the legislation. P. L. 1889, p. 418.
These various enactments are In pari mate-
ria, and must be considered together as pre-
senting a cohesive and consistent legislative
scheme declaratory of a state policy of set-
ting aside, by a separate species of tenure,
through corporate agencies, sections of land,
free from taxation, when such lands are ac-
tually in use, or within reasonable cont«n-
plation of being used for the purpose declar-
ed in the statute. Mt Pleasant Cemetery v.
Newark (Err. & App.) 98 Atl. 448 ; Rosedale
Cemetery t. Unden, supra; liausoleum
Builders v. State Board (Err. ft App.) lOO
Atl. 236. The locos In quo in this controver-
sy presents no indicia of actual use or of
reasonably contemplated use, within the stat'
utory purview, whidi will enable us to bring
It within sudi a classification, and the tax
In question should therefore be affirmed.
The second writ removes an assessment
and tax, upon 26 acres of undeveloped land,
situated on the Bergen turnpike and owned
by the Falrview Development Company, a
corporation not organized nnder the cemetery
acts, but organized for business purposes nn-
der the general corporation act It obtained
title to the locus in quo in 1910, by a con-
veyance from the Fairvlew Cemetery CJompa-
ny, for $1 and other valuable considerations ;
and thereafter an agreement was executed
between the parties to the deed setting out
the true consideration of the conveyance
($360,000), and a covenant was entered into
with the cemetery company that the latter
company might sell burial plots from the
land conveyed, upon certain prescribed terms, '
as to price and conditi<ma. In effect the in-
strument constitutes a holding agreement,
by which the title to the locus in quo Is vest-
ed In the devel<q;>ment company, subject to
certain uses, the covenant being In all formal
essentials not unlike the common-law cove-
nant to stand seised to uses (4 Kent's (Tom.
p. 402) ; the purpose apparently being to vest
In the development company, in trust, such
lands as the cemetery company could not
legally hold by reason of the limitation con-
tained in the cemetery acts.
The land in question is part of 40 acres
lying west of the Bergen turnpike, and eleven
acres of meadow land lying on the east side
thereof. Nothing has been done to Improve
or develop this acreage for cemetery uses;
and It lies in Its natural state. Impressed with
a cemetery use only, so far as the trust ex-
pressed in the agreement may impose that
character of user upon it The sltuatioa
thus presented in principle is not unlike that
presented in the case of Mt Pleasant Ceme-
tery V. Newark (Err. & App.) 08 AtL 448, and
the recent case of Mausoleum Builders, etc.,
V. State Board (Err. ft App.) 100 AtL 236.
We do not deem it necessary to determine
the power of a company, formed under the
general corporation act, for general business
purposes, to exercise the power and claim
tlie privileges expressly conferred by excep-
tional legislation upon a distinctive species
of corporation, created for the purpose of
performing a quasi public function, and exist-
ing specially for the purpose therein prescrib-
ed, and for no other; nor do we deem It nec-
essary to determine the further Inquiry moot-
ed In the briefs of counsel, whether In such a
situation the lands in question can be prop-
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«.JJ
K. I. DU PONT DE NKMOURS POWDER 00. t. SPOCIDIO
407
«rly considered as bdng b^d for cemetery
uses, within the meaning and pnrrlew of the
<;emeter7 leglslatlm.
It must suffice to decdare as we have done
in the previous instance, and for the rea-
sons there adranced, that the locus In quo
was not at the time of the imposition of this
tax devoted to and in use for cemetery pur-
poses, and for that reason this tax also must
-be affirmed.
(88 N. J. Eki. ZIO)
DB LUKACSEVICS v. DB LUKACSBVICS
(No. 40/759.)
'(Goort of Chancery of New Jersey. June 29,
1917.)
DlVOBCZ «=»2C6— WMT of SEQUTOTBATIOir— *
AUMONT — Claims of CBEnrroBS.
The execution of writ of sequestration in a
wife's divorce suit places in custodia legis the
property of defendant husband sequestered to
satisfy or compel the satisfaction of the wife'l
'Claims for alimony, and no rlKhts can be ac-
<iuired in the property except subject to the
operation of the writ, the lien under which ex-
tends to alimony due at the time of issuance and
alimony subsequently accruing.
[Ed. Note. — ^Tor other cases, see Divorce,
Cent Dig. S 741.]
Suit for divorce between Adelaide L. De
Lnkacsevics and Charles De Lukacsevics,
wherein judgment creditors of defendant hus-
band and the holder of his note applied to
obtain payment of their respective debts
from a fund in the possession of an officer of
the court under a writ of sequestration. Ap-
plications denied.
Edward A. Levy, of Passaic, and Frederick
A. Helsley, of Newark, for creditors, Fred-
erick S. Taggart, of Westfleld, for petitioner.
LANE, V. C. These are applications on be-
half of certain Judgment creditors of the de-
fendant, Charles De Lukacsevics, and also on
behalf of the bolder of a note made by de-
fendant, upon which note is indorsed a state-
ment that certain automobiles hereinafter
mentioned are held as collateral, to obtain
payment of their respective debts from a fund
In the possession of an officer of this court
under a writ of sequestration. Pending this
suit the court made an order for temporary
alimony. The defendant had appeared. The
order was not complied with. The defendant
left tbe stata Thereupon the court, under
the provisions of the twenty-sixth section of
tbe divorce act of 1907 (2 Comp. St. 1910, p.
2038), issued Its writ of sequestration under
which the sheriff took in his possession two
automobiles and certain other personal prop-
«rty of the defendant and entered upon real
estate of tbe defendant and sequestered the
rents and profits. Thereafter a receiver was
appointed who superseded the sheriff, and
-who now has in his possession one of the
automobiles and a fund of some $200, the
balance of the proceeds of sale of the other
automobile, tbe remainder of the money hav-
ing been used to pay alimony to tbe petltioneir
up to the 14th of April, 1917.
Tbe real estate Is said to be worth In ex-
cess of $10,000, but in its present condition
is unrentable, and it will be necessary to
espend in the neighborhood of between $400
and $500 for taxes and repairs. All of tbe
Judgments were obtained after the writ of
sequestration had been issued and executed.
Under tbe cases of Wood v. Price, 79 N. J. Eq.
1, 81 AU. 1003, affirmed 79 N. J. Eq, 620, 81 Ati.
983, 88 U R. A. (N. S.) 772, Ann. Gas. 1918A,
1210. and Close v. Close, 28 N. J. Eq. 472, It
seems to me that there Is no doubt but that
the execution of a writ of sequestration in
cases of this nature places in custodia legls
the property of the defendant sequestered to
satisfy or cMnpel the satisfaction of the claims
of the wife for alimony, and that no rights
can be acquired in the property except subject
to the operation of the writ The lien under
the writ extends not only to alimony due at
the time of tbe issuance of tbe writ, but
alimony which may subsequently accrue^ I
think that tbe property sequestered is no
more than reasonably necessary, in view of
the circumstances, to retain for the purpose
of satisfying or compelling satisfaction of the
claims of the petitioner. This results in the
application of the creditors being denied. So
far as the owner of the note Is concerned, be
took no chattel mortgage or other Instrument
which might be recorded evidencing bis Hen,
nor did he take actual or constructive posses-
sion of tbe chattels, so that the lien under
the writ is superior to bis rights, If any he
ha&
(90 N. J. Law, 438)
B, I. DD PONT DB NEMOURS POWDER
CO. V. SPOCIDIO.
(Supreme CJourt of New Jersey. June 28, 1917.)
1. Masteb and Servant ®=»411— Workmen's
Compensation Act — lN.roBiBB — Fihdinus
OP Fact.
On certiorari by the employer to review
judgment for an injured servant seeking com-
pensation under the Workmen's O>mpensation
Act (P. Ia 1913, p. 802), petitioner's injuries,
their nature and extent, held sufficiently to ap-
pear from the trial judge's findings of fact.
2. Masteb and Sebvant (8=>412— Wobkmen's
Compensation Act— Aobeement fob Com-
pensation— Question of Law and Fact.
Whether there was an agreement between
an employer and its injured employ^ to make
compensation under the Workmen's Compensa-
tion Act without resort to the court of common
pleas by petition was a mixed question of law
and fact.
3. Masteb and Sebvant <8=»419— WobKubn'S
Compensation Act — Aobkemkht fob Com-
PENSATioN— Review.
In view of the Workmen's CV>mpenBation
Act, { 5, providing that no agreement between
the parties for a lesser sum than that which
may be determined by the judge of the court of
common pleas to be due shall operate as a bar
to the determination of a controversy upon its
merits, or to the award of a larger sum, where
it shall be determined bv the judge that the
amount agreed upon is less than the injured
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408
101 ATLANTIC REPORTER
(N.J.
employes or Us dependents ar« entitled to re-
ceive, where an employer and its injured em-
ployi within a year of the accident agreed as to
the compensation to be paid the employ^, the
latter was not barred from filing a petition at
any time to have the asreemeut reviewed by
the court upon its merits; the clause of the
statute prescribing the one-year limitation peri-
od in which a petition must be filed or an agree-
ment made for compensation not being applica-
ble to the situaticHi.
Certiorari to Court of Common Pleas, Sa-
lem County.
Proceedings for compensatioii under the
Workmen's Compensation Act by James
Spoddlo, opposed by the El. I. Du Pont De
Nemours Powder Company, the employer.
On certiorari by the employer to review the
Judgment. Judgment alBrmed.
Argued November Term, 1916, before
SWAYZB, MINTURN, and KATJSOH, JJ.
J. Fomian Sinnickson, of Salem, for prose-
cutor. Bergen & Richman, of Camden, for
respondent
BCALISCH, J. The question to be deter-
mined upon this review is whether tbe re-
spondent, the petitioner In the court below,
filed bis petition for compensation imder the
Workmen's Compensation Act within tbe
time required by law.
The petitioner was in the employ of the
prosecutor. On the 25th day of January,
1915, the petitioner, while engaged In trans-
porting cans of cotton from one part of tbe
respondent's plant to another, fell and broke
his left arm In three places and suffered a
permanent injuiy.
On the 3d of March, 1916, the petitioner
filed his petition for compensation. On tbe
24th of March, 1916, the petitioner by leave
of the court filed an amended petition. In
this latter petition he sets forth that after
the accident mentioned he and the prosecu-
tor, agreed upon the amount of comiiensa-
tlon due to the petitioner for his injuries;
that petitioner was informed that he would
receive one-balf of his wages until he was
able to return to work, and after the expira-
tion of 15 days from the date of the accident
the prosecutor paid the petitioner $5.28 per
week, b^ng 50 per cent, of his weekly wages,
and which sum it paid him weekly until the
5th day of April, 1915, when he was told by
the prosecutor's physician to return to work,
but that tbe petitioner was not physically
able to return to work at the time, not being
entirely cured of his injuries and suffering
from a permanent disability as a result of
his injuries.
The petition further sets forth that the
prosecutor paid petitioner's medical expenses,
indudlDg an operation performed on peti-
tioner's arm; that tbe petitioner Is not en-
tirely cured of his injuries and is suffering
from a permanent disability of his left arm ;
that he has not l>een fully compensated un-
der the statute for his injuries received from
the accident: that the agreement as to the
compensation made between him and the
prosecutor had not been approved of by the
Judge of the court in which the petition is
filed, or a Judge of any other court of com-
mon pleas, in any county of this state; and
that a dispute has arisen between the prose-
cutor and petitioner as to the compensation
due tbe latter.
The fact that the petitioner's injuries were
due to an accident arising out of and in the
course of his employment is not diq>ated by
the prosecutor.
Tbe trial Judge found that as a result of
the accident the petitioner broke Ids left arm
in three places, and that as a result thereof
the petitioner suffered a temporary injury to
hU arm extending from the time he was In-
jured (January 25, 1915) until the 5th day of
July 1915, and that there is a permanent
injury to the whole arm of 10 per cent ; that
after the petitioner was injured he was first
taken to the office of Dr. Lummls, and was
there treated and subsequently to the Cooper
Hospital in Camden; that the petitioner was
told to go to the plant of the prosecutor and
he would be paid one-half of his wages; that
petitioner went to the prosecutor's plant and
receUed the sum of $5.28 pet week from the
prosecutor until the 7th day of April, 1915,
a total of 142.24; that the petitioner was
then given a note by Dr. Lummis advising
htm to go to the plant for work, the doctor
stating that be would be able to do llg^t, but
no heavy, work; that the petitioner returned
to the plant and did work from the 13th day
of April. 1915, until tbe 13th day of May,
1915, when be was discharged from the
plant, and has not been at work there since.
From these facts tbe trial Judge further
finds that there was an agreement and mon-
ey actually paid to the petitioner under the
agreemoit to the amount as above stated
from tbe time of the petitioner's injury. The
trial Judge further made the following find-
ings: That the prosecutor is entitled to a
credit on the amount awarded of $5.28 a
week for a period of eight weeks, or a total
credit of $42.24; that the prosecutor is not
entitled to a credit of $43.25 paid for medical
expenses after the first two we^s, nor what
was paid to the petitioner for the time he
worked from April 16, 1916, to May 13, 1015,
since there was no proof of any agreement
that it should be payment under the act ; that
the petitioner is entitled to compensation at
the rate of $6.12 per week for 21 weeks from
the 8th day of February, 1915 (being 2 weeks
after the accident happened), for tbe tempo-
rary injury to his arm, and that subsequent
thereto the petitioner is oititled to the sum
of $6.12 per week for a period of 20 weeks
for the permanent injury to bis arm.
The prosecutor seeks a reversal of the
Judgment on two grounds: (1) That the pro-
ceeding is 'barred by the statute of Umita>
tlons; (2) that "the court of common pleas
did not find and determine the facts from
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B. L DU FONT DE NEMOUBS FOWDJSR GO. ▼. SPOCIDIO
409
whicdi the legaU^ of tbe award by aald court
can be determined."
[1] Taking up for consideration the sec-
ond point made by the prosecutor flrst, we
ftink that by the facts above set forth it
sufficiently appears what the injuries to tbe
petitioner were, their nature and extent
As to the position taken by tbe prosecutor
that the proceeding of the petitioner is bar-
red by the statute which provides that In
case of pers<Hial Injuries or death all claims
for compensation on account thereof shall
be forever barred unless within one year
after the accident the parties shall have
agreed upon the compensation payable under
the act, or unless within one year after the
accident one of the parties shall have filed a
petition for adjudication of compensation as
provided by the act (P. L. lOlS, p. 314) be-
-canse the petition in the present case was
aied after a year had elapsed from the time
of the accident, we find to I>e untenable.
It Is plain that the statute provides three
methods which may be pursued within the
year for the purpose of fixing compensation
to be paid to an Injured employft: (1) By a
petition filed by the injured woAman; (2)
by a petition filed by the employer of the in-
jured workman; (3) by an agreement be-
tween employer and employe.
In the present case there was testimony
which afforded a reasonable basis for the
finding of tbe trial judge that there was an
agreement for compensation to be paid peti-
tioner between the prosecutor and petitioner,
under the statute; for there was testimony
to the effect that tbe prosecutor, after the
lapse of two weeks from the time of the
accident, agreed to and did pay to the peti-
tioner periodically one-half of tbe petltlon-
«r's weekly wages for some time until the
prosecutor requested the petitioner to go to
work, which the petitioner did, but was soon
afterward discharged. It also appears that
the prosecutor paid the medical expenses,
amounting to $43, Incurred as a result of the
petitioner's Injuries.
[2] Whether there was an agreement be-
tween the parties to make compensation, tm-
der the statute, without resorting to the
court of common pleas, by petitlmt, was a
mixed question of law and fact, and we
think there was evidence justifying tbe find-
ing of tbe trial judge that there was such an
agreement.
It Is clear from the plain reading of the
statute that, where the parties agree as to
tbe compensation to be made, the legislature
contemplated that such agreement should be
wbolly regulated and controlled by the pro-
vlsi<Nis of the statute both as to the duration
of time and the amount of compensation to
be periodically paid.
Paragraph 20 of the Workmen's Compensa-
tion Act (P. L. 1913, p. 809) expressly pro-
vides, Inter alia, that no agreement between
tbe parties for a lesser sum than that which
may be determined by the Judge of tbe court
of common pleas to be due shall operate as a
bar to the determination of a controversy
upon Its merits, or to the award of a larger
sum, where It shall be determined by the
judge that tbe amount agreed upon is less
than the injured employ^ or bla dQ)endents
are properly entitled to receive.
[9] In the present case it appears that the
petitioner was earning $12.24 per week at the
time of the accident, and therefore the peti-
tioner was entitled to receive $6.12 per week
instead of the periodic weekly payment of
$6:28, as agreed upon between the parties.
It further appears that under the statute
tbe petitioner was entitled to compensation
for temporary injuries for the period of 21
weeks, and for permanent injuries for 20
weeks, and that all the prosecutor paid to the
petitioner under the agreement were period-
ical payments of $5.28 for 8 wedcs. Thus it
becomes manifest, in view of the excerpt
from paragraph 20, above quoted, that tbe
petitioner was not barred from filing a peti-
tion In order to have the agreement made
between the parties reviewed by the court,
uixm its merits at any time.
As it appears In the present case that there
was an agreement made between the prose-
cutor and the petitioner as to the compensa-
tion to be paid by the former to tbe latter,
the one-year limitation clause in which a
petition must be filed or an agreement made
for compensation is obviously not applicable
to the situation presented her& And this is
also equally true as to the nonapplicabllity
of the clause of paragraph 21 of tbe act of
1913, which provides that an agreement or
award of compensation may be modified at
any time by a subsequent agreement, or at
any time after one year from tbe time when
the same became operative, on the ground
that tbe incapacity of the injured has subse-
quently increased or diminished, because the
petition under consideration is not filed on
either ground. But if we turn to paragraph
18 of the act, we find that provision is made
by it for filing a petition in case of a dis-
pute or failure to agree upon a dalm for
compensation between employer and employe,
etc., and that either party may submit Uie
claim, both as to questions of fact, eta Para-
graph 20 points out in general terms what
the petition shall set forth in case of a dis-
pute.
We cannot be led to believe that it was
the purpose of the Legislature to put agree-
ments entered into within the year between
employer and employe as to the compensation
to be paid upon a less secure footing than an
award made ui)on a petition filed within the
year. One of the objects of the act is to
secure to the parties an inexpensive method
of procedure. Of course, an agreement be-
tween employer and employe involves no ex-
pense whatever and saves to the employer
the expense of a hearing, etc. If In the
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(M.J.
present case eltber party bad filed a petition
within the year, and the court had made an
award of compensation, there could not be
the slightest doubt nnder the express lan-
guage of tJie statute that either party would
have the right in case a dispute arose re-
garding the compensation, etc., to file a peti-
tion after the expiration of the year. The
statute has put the agreement between em-
ployer and employe on the same plane as on
award made by the court upon petition, aft-
er a hearing, etc. And this course was mani-
festly necessary in order to prevent one of
the prime objects of the act from being
frustrated.
For it is obvious that, if the argumoit
made by counsel for the prosecutor should
prevail, then in a case where an employe is
entitled to compensation for a period ex-
tending beyond 62 weeks, and enters into an
agreement with his employer, as he may un-
der the statute, then if at the end of the
year, after the last payment due for the
year has been paid, the employer should
choose to discontinue any further payments,
the employe would be remediless nnder the
statute. We cannot give our sanction to
such a construction without violating the
plain language and spirit of the act and ex-
tinguishing one of its vital features.
The Judgment will be affirmed, with costs.
(18 N. J. Bq. 41)
WIEBKE V. DB WYNGAERT. (No. 41/169.)
(Oonrt of Chancery of New Jersey. July 6,
1917.)
1. MOKTOAOES ®=»56JX9) — FOBECLOSXntX BT
Action— Conclusiveness of Judgment.
A mortgagor's purchaser who was defendant
in foreclosure suit was concluded by the decree
therein in a suit to recover deficiency, and can-
not question amount decreed to have been due,
but could show that he was not liable for the de-
ficiency.
[Ed. Note. — For other cases, see Mortgages,
Cent. Dig. §§ 1607, 1608.]
2. MoRTQAOEs ®=»561— Surr for Deficiknct
— SurriciENCT op Answer— Fraud.
In suit for deficiency after foreclosure, the
mortgagor's purchaser should have get forth in
his answer the fraudulent representations in
taking the mortgaged property, which he relied
on, showing what the representations were, who
made them, and by what authority.
[Ed. Note, — For other cases, see Mortgages,
Cent. Dig. {} 1609-1621.]
3. Fraud ®=p10 — Misrepresentations bt
Agent— Sale or Mortgaged Property.
If the only representation was the opinion or
unauthorized statement of a corporation's agent
as to legal effect of writing which defendant
signed in purchasing mortgaged property from
the corporation, this was not a fraudnlent repre-
sentation by the company.
[Ed. Note.— For other cases, see Fraud, Cent.
Dig. I 11.]
4. Mortgaqeb ®=»561— Suit for DEnciENCT
— Necessity of Pleading Separate Re-
leases.
In a suit for deficiency after mortgage fore-
doBure, the mortgagor's purchaser should have
stated In his answer that he relied on two sepa-
rate releases given at separate times.
[£:d. Note.— For other cases, see Mortgages,
Cent Dig. §§ 1609-1621.]
6. Mortgages €=»561— Suit for DEFicneNct'
— Dividing Anbwkb into Separate Db-
FENSES.
In a suit for deficiency after mortgage fore-
closure, dividing of the answer into separate de-
fenses like separate pleas at law is not warrant-
ed by Chancery Act of 1915 (Act March SO, 1915
[P. L. p. 194]) I 49, providing that when several
causes of action are stated in the bill, the an-
swer must refer each defense to the cause of ac-
tion to which it is pleaded.
[Ed. Note. — For other cases, see Mortgages,
Cent Dig. {{ 1609-1621.]
Suit by Friedrich Wlebke agednst Joseph
E. De Wyngaert for deficiency after mort-
gage foreclosure. Application to strike out
parts of answer. Objectionable paragraphs
stricken out, and defendant given 10 days
In which to file further answer.
Hugo Woemer, of Newark, for the motloii.
<3eorge £. Clymer, of Newark, <vposed.
STEVENS, V. 0. [1] This is an appUca-
tion to strike oat parts of an answer. The
situation is this: The King-Marsac Company
mortgaged to complainant, and then sold the
mortgaged premises to defendant, who Is al-
leged to have assumed payment of the mort-
gage. Complainant foreclosed. The decree
adjudged $2,030 to be due on the mortgage
debt There was a sale on execution from
which $500 was realized. Complainant now
sues for the deficiency. His right so to sue
was adjudged on the application to strike out
the bilL The defendant, who as owner was
defendant in the former suit, is concluded
by the decree therein, as far as the decree
extends. He cannot question the amount
decreed to have been due, but he is not
concluded from showing tliat he is not liable
for the deficiency.
In view of the former adjudications the
so-called first defense Is stricken out, and
also paragraphs 1, 2 and 10 of the second
defense.
Paragraph S is ambiguous. The denial
may relate to the fact of acceptance or to
the written indorsement.
[2, 3] It is an elementary rale of pleadins
that if defendant answers he must answer
fully. This rule has not been observed in
the so-called fourth defense. The fraudulent
representations relied on should have been
set forth if they were other than the state-
ment that the ofllcers and agents of the cor-
poration represented to the defendant that
he would not be liable on his assumption un-
less he was the owner of the premises at the
date of the maturity of the mortgage. The
answer should have stated what the repre-
sentations were, who made them, and by
what authority. If the only misrepresenta-
tion was the opinion or unauthorized state-
ment of some agent of the company as to
the legal effect of the writing whldi de-
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FISHER T. T. W. ORIFFITH BEALTT 00.
4U
fendant signed, that was not a frandnlent
representation made by the company.
[4] Paragraph 1 of the third defense and
the fifth defense are to some extent repeti-
tions. The second is broader than the first.
If defendant relies npon two separate re-
leasee given at different times, be should
have so stated. Paragraph 1 should be
stricken out, and the so-called fifth defense
may he amplified to correspond to the fact
[S] I know of no authority for dividing
tbe answer into separate defenses like sep-
arate pleas at law, as defendant has done
In this case. It can only lead to repetition
and prolixity, and la not warranted by sec-
tion 49 of the Chancery Act of 1916.
nte objectionable paragraphs will be
stricken out, and the defendant given 10 days
in which to file a further answer.
rss N. J. Bq. tot)
FISHER V. T. W. GRIFFITH REALTT CO.
et al. (No. 41/282.)
(Court of Chancery of New Jersey. June 23,
1917.)
Injunction 9=3l28— Restbainino Bbkach oi
Peopebtt Owneb's Resteictivk Aorezuent
— SUFFICIENCT or EVIDENCE.
In a suit to prevent erection of an apart-
ment honse in Tiolation of a restrictive bnilding
agreement entered into by property owners, evi-
dence held insufficient to warrant relief, the
character of the locality having greatly changed
since the execution of the agreement, so as to
render it apparent that buUdings of the class
contemplated thereby would not be built upon
tbe land, and several buildings having already
been erected thereon contrary to the intent of
the agreement, making enforcement inequitable,
[Ed. Note. — For other cases, see Injunction,
Cent Dig. i 278.]
Bill by Jacob W. Fisher against the T. W.
GrtSth Realty Company, and another. De-
cree dismissing bill.
Edgar H. Pinneo, of Newark, for com-
plainant Saul Cohn, of Newark, for defend-
ants.
lANE, V. C. The bill is filed by the owner
of a piece of property on the westerly side
of TJucoln avenue In the city of Newark
between El wood and Delavan avenues to pre-
vent the erection of an apartment house upon
tlie southwesterly corner of Elwood and Del-
avan avenue, a point distant from complain-
ant's house, exclusive of the width of Dela-
van avemue, of lOS'/jo feet The right of
complainant is based upon an agreement en-
tered into on or about the 1st of February,
1S94, between the then owners of the prop-
erty extending from a point 1(X) feet south
of EHwood avenue on the westerly side of
Lincoln avenue to a point 200 feet south of
Delavan avenue and extending for a depth
of 200 feet restricting such property to use
only for the erection of private residences.
The agreement referred to was without con-
sideration other than mutual promises. For
the purposes of these condlaslons I have de-
termined to adopt tbe construction put upon
the agrement by Vice Chancellor Howell in
a memorandum handed down by him upon
the application for preliminary injunction,
which construction is to the effect that tbe
agreement as entered into would prevent tbe
erection of the structure proposed by the
defendants. The complainant acquired his
title by deed from Mary Ella Eagles, dated
March 27, 1909. Mrs. Eagles and her hus-
band, who owned the property in 1894, wene
parties to the agreement providing for tbe
restrictions. The street next westerly to
Lincoln avenue Is Summer avenue. Ori^nal>
ly the restricted property, or most of it, had
been owned by what is now the Phillips es-
tate. The Phillips homestead is on the plot
a portion of whldi Is now sought to be used
for apartment house purposes. The estate
also owned property on the easterly side of
Summer avenue, and at or about the date the
agreement was entered into between the
property owners on the westerly side of Lin-
coln avenue a similar agreement was entered
into by the property owners on the easterly
side of Summer avenue, among whom was
Mrs. Eagles, the predecessor in title of the
complainant. At the time the respective
agreements were entered into the property
In the immediate neighborhood was develop-
ed in substantially the same manner. From
Chester avenue^ the street next to Delavan
southerly, to Elwood avenue, on the westerly
side of Lincoln avenue, there were either
private residences or vacant lots. The build-
ings were substantial, and by that I mean
structures costing in the neighborhood of
from 110,000 to $15,000, and requiring the
outlay of considerable money each year to
properly maintain. The remaining property
in the block bounded by Elwood, Summer,
Delavan, and Lincoln was undeveloped. On
the easterly side of Lincoln avenue from
Chester to Elwood there were a number of
private dwellings which had been built for
some time. These dwellings, while not as
substantial as those on the westerly side,
yet housed persons who had been in the
neighborhood for years, and offered no ob-
stacle to the consummation of the plan which
I think those who entered into the restrictive
agreement had in mind. Nowhere on the re-
stricted area or in the neighborhood were
there two-family houses or apartments. The
neighborhood was not only strictly residen-
tial in the sense that almost all who lived
therein owned their own houses, but reslden.
tlal in the sense that the houses erected
might be termed "residences" in contradis-
tinction to "dwellings." Considerable of the
land on the easterly side of LLncoln avenue
was undeveloped.
There is no doubt in my mind but that the
purpose of the parties to the agreement of
1894 was to keep the neighborhood strictly
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101 ATLilimC REPORTER
(N.J,
residential, a neighborhood In wblch a person
who could afford to invest anywhere from
$10,000 to $15,000 in a residence, and who
could afford to ke^ up such a residence,
would be glad to live Whether that hope
and anticipation would be achieved or not
depended, of course, upon whether the unde-
veloped property and the property unrestrict-
ed in the Immediate neighborhood should be
developed up<» a corresponding scale. The
restricted area now under consideration com-
prised only a comparatively short distance
on one side of a street It is apparent, of
course, that if the other side of the street
facing the restricted area should be develop-
ed in a manner not consistent with the plan
of those entering into the agreement, the
purpose of the agreement would fail. So
also if the property on the side streets, Del-
avan and Elwood, or on the street in the
rear. Summer, should be developed in a man-
ner not consistent with the plan, this would
mean its failure.
That the parties, at the time, realized that
It was necessary for the success of the plan
that the easterly side of Summer avenue
should be restricted I think Is indicated by
the fact that similar restrictions were entered
into by the owners on that street To these
restrictions, as I have above stated, Mrs.
Bagles, the predecessor in title of tlie com-
plainant, was a party. I might say that
originally the Phillips estate owned the en-
tire block bounded by Summer, Delavan, Lin-
coln, and ElwoQid avenues, approximately one-
half of the block bounded by Summer, Ches-
ter, Woodside, and Elwood avenues, Wood-
side being the street next westerly to Sum-
mer, approximately one-half the block bound-
ed by Mt Prospect, Elwood, Woodside, and
Chester avenues, Mt Prospect being the street
next westerly to Woodside, and also a large
portion of the block bounded by Lincoln,
Delavan, Summer, and Chester avenues; it
also owned six lots north of Elwood opposite
the block between Woodside and Summer.
Conceding that the restrictions under discus-
sion would prevent the erection of the pro-
posed structure of the defendants, the ques-
tion is whether or not the neighborhood has
so changed as to make it inequitable for this
court to enforce the provisions of the agree-
ment I think It has.
If'acing complainant's house there liave
been erected on the northeast comer of
Delavan and Lincoln avenues 2 two-family
houses. The remainder of the easterly side
of the street is built up in approximately
21 one-family bouses. These houses, however,
are not comparable in any respect with those
touilt upon the westerly side of the street
While they are private dwellings, each of
them covers practically an entire lot, this
with few exceptions, and they are of much
cheaper construction than those which ap-
parently were contemplated by the parties
to the agreement. The street next easterly to
Lincoln avenue is Washington, and between
Delavan and Elwood It has developed Into
a business section with some two-family
houses and dwellings. Some of the dwellings
on the easterly aide of Linccdn avenue, be-
tween Delavan and £!lwood, are houses which
have been removed from the westerly side of
Washington. The easterly side of Summer
avenue, which is the westerly boundary of
the block in which complainant's house is
situate, is buUt up substantially in two-famUy
houses. There are 10 two-family houses and
9 single houses, exdnding the dwelling on
the southeasterly comer of Summer avenue
and Elwood, and the dwellings are of the
class that I have described as having been
built on the easterly side of Lincoln avenue.
On the easterly side of Summer avenue, ex-
tending from the southeasterly comer of Sum-
mer and Delavan, and on the property for-
merly of the Phillips estate, there have been
erected a row of houses, 8 of which are two-
famUy and 1 of which is three-family. On
the easterly side of lincoln avenue south of
Delavan there are a numlier of private dwell-
ings of the character that I have described as
having been erected on the easterly side of
Lincoln between Delavan and Elwood, and
there are also 2 two-family bouses between
Delavan and Chester. An apartment house
has been built on one of the comers oS Sum-
mer avenue and Delavan, -I think on the
southwest comer. Two apartment bouses
tiave been built on the northerly side of Dela-
van avenue between Summer and Lincoln,
and these abut in the rear ui)on complain-
ant's property.
On the restricted territory it Is conceded
that there has been built on the southerly
side of Delavan avenue, opposite the apart-
ment houses last referred to, at least 1 two-
family bouse. I Qnd from the testimony that
all 3 two-family houses on the southerly
side of Delavan avenue are within the re-
stricted territory. These two-family houses,
while around the comer from the complain-
ant, are but a comparatively short distance
from him. On the westerly side of Lincoln
avenue, two doors from the complainant,
there have been erected 5 houses which in the
testimony have been called duplex or double,
in contradistinction to two-family. Each
house has one roof, one set of outside walls,
a partition in the middle, so that it may be
used for two families. Whether they may be
called technically private dwellings or not, I
think unquestionably their erection was a
violation of the spirit of the restrictive agree-
ment. They are not in accordance in any
wise with the plan of the parties to that
agreement, but are rather In harmony with
the present development of the territory Id
the immediate vicinity.
A survey of the territory in the vldnlty
Indicates clearly that it has grown Into prin<
cipally a place for two-famUy and apartment
houses and small dwellings. On the north-
easterly corner of Washington avenue and
Delavan a block awajr from complainant's
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N.X)
DEPABTMKNT OF HEALTH v. MOKHEIT
413
house, la a 23-faiiiil7 aixirtment bouse; abont
a quarter way down tbe block, on tbe easter-
ly side of Washington avenue, between Del-
avan and Chester, approximately two blocks
from c(»nplalnant'8 house, Is a large apart-
ment house. The testimony taken before me
demonstrates that the proi)erty within the
restricted area Is no longer salable for res-
idential purposes. Two witnesses, one of
whom was Alfred S. Skinner, Esq., who own-
ed the property on the northwesterly comer
of Idncoln avenue and Delavan, and was a
party to the agreement, testified that when
they came to dispose of their houses they
could do so only at great sacrifice. They and
several other witnesses testified generally to
the change in tbe neighborhood, attributing
It to the construction of the car barns, the lu-
flux of small salaried employes, the noisome
smells which came sometimes from the Pas-
saic river, and the establishment of the ML
Prospect and Forest Hill section of the city
of Newark. It is to be observed that Mt.
Prospect avenue Is the next street westerly
to the vidnlty under consideration, but it
lies on a ridge, and there is no access to it
from the vicinity in question short of, I
think, half a mile, except by stairs, so that
there is a dear line of demarcation between
the Mt. Prospect section and this vicinity.
No evidence worthy of serious consideration
was produced which would indicate that the
restricted property was at the present time
salable for residential purposes. The dTect
of the development has been such as to com-
pletely surround this smaU restricted tet-
iltory on one side of a street by a class of
houses not at all in harmony with those con-
templated by the restrictive agreement. I
cannot see that the erection of the building
in qnestlon will Irreparably or In any wise in-
jure tbe complainant, in view of the character
of the neighborhood. The apartment house
to be erected Is of the latest type ; the rent
will be ai)proxlmately $10 a room, which
means that there will be a class of people
inhabit It who can afford to pay from $40 to
$60 a month and upwards ; the general char-
acter of the neighborhood will not be chang-
ed. The apartments are not so numerous as
that there will be an excess of noise and
confusion. Taking the territory as a whole,
I think that the apartment will be a better-
ment rather than a detriment It must not be
overlooked that neither the complainant nor
lUs predecessor In title protested against the
erection of the two-family houses on the
southerly side of Delavan avenue within the
restricted territory, and contrary to tfie
Testrlctive agreement, nor against the erection
of what have been called the double houses
on the westerly side of Lincoln avenue with-
in the restricted territory, and I think with-
in the restrictive agreement as construed by
Vice Chancellor Howell, nor that there are
at the present time two apartment houses on
the northerly side of Delavan avenue, which,
while not within the restricted territory abut
on complainant's house, nor that complain-
ant's predecessor In the title, although a par-
ty to the Summer avenue agreement, ac-
quiesced in its violation. The ultimate fate
of all of this territory is that it will be
built !up with two-family and apartment
houses. It Is only a question of time. My
reoollectlon Is that the complainant, or, if
not the complainant, one of the witnesses
who owned one of the residences, testified
that a man would be foolish to buy into the
territory for residential purposes In the sense
contemplated by the restrictive agreement.
My conclusion is that it would be inequi-
table for this court to at this time enforce the
restrictive agreement, and that tbe case is
within that of Page v. Murray, 46 N. J. Eq.
325, 19 Atl. 11.
I will advise a decree dismissing the bill,
but, under the circumstances, the dismissal
will be without costs. This case is determin-
ed, of course, solely upon the facts now be-
fore the court, and I express no opinion aa
to whether, If an attempt were made to erect
in this neighborhood a tenement house or
a factory, or if an attempt were made to vio-
late the restrictive agreement in any other
manner, this court would or would not in-
tervene.
(90 N. J. Law. 44S)
DEPARTMENT OF HEALTH OP NEW
JERSEY V. MONHEIT.
(Supreme Court of New Jersey. June 19, 1917.)
(Bvllabua by the Court.)
Courts «=>176% — Smaix Cause Cottbts —
Review — Penalties under Food Laws —
jvbisdiction.
In an action to recover a penalty for vio-
lating the provisions of tbe pure food law (Act
April 20, 1915 [P. L. p. 665] i 1), commenced in
the small cause court, the court of common
pleas of the county, in whidi the action la
brought, has jarisdiction to hear the case on
appeal.
(^erttorarl to Court of Common Pleas, Cinm-
berland County.
Proceeding by tbe Department of Health
of the State of New Jersey against Hlrsch
Monhdt. There was a Judgment for plain-
tiff, and defendant brings certiorari. Af-
firmed.
Argued June Term, 1917, before SWAXZE,
BERGEN, and BIiACK, JJ.
Joslah Stryker, of Trenton, and John W.
Wescott, Atty. G«i., for respondent Alvord
& Tuso, of Vlneland, for prosecutor.
BLACK, J. The question to be decided ta
this case is the Jurisdiction of tbe commou
pleas court, to hear a case on appeal, in a
suit brought in the small cause court, be-
fore a Justice of the peace, to recover a pen-
alty for a violation of the pure food statute.
The defendant was charged with the vlola-
^ssFor other .saan h* lama topic and KEY-NUMBKR In all Kay-Numbernd Dlsasta and Indaxa*
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414
101 ATLANTIC RBPOR'raSB
(N.J.
tion of sectl<a 1 of the supplement (P. L.
1915, p. 666) to the pure food act (RevUdon,
P. lu 1907, p. 485). He was found not guil-
ty by a Jury in the small cause court. The
department of health appealed from the de-
cision to the court of common pleas in the
county of Cumberland. That court found the
defendant guilty and imposed a penalty of
150, hence a writ of certiorari was allowed,
whldi draws in question the Jurisdiction of
the court of common pleas. The grounds of
attack are that the suit should have been
commenced before the Justice of the peace,
sitting as a magistrate, and that, by the
original pure food act (P. L. 1901, p. 194, |
16), parties aggrieved may appeal to the <Ar-
cult court of the county, wherein said action
Is had. Manifestly, this view of the prose-
cutor is untenable, as is clearly demonstrated
by the following provisions in the statute
law of the state. Thus the revised pure
food act, above dted (P. L. 1907, p. 485, I
40; 2 Oomp. Stat of N. J. p. 2574, i 40),
provides:
"Any and all penalties prescribed by any of
the provisions of this act shall be recovered in
an action of debt. • • • The pleadings shall
conform, in all respects, to the practice prevail-
ing in the court in which any such action shall
be instituted."
And in the supplement above cited (P. Ii.
1915, p. 665, { 5), the statute under which the
action in this case was brought, it is pro-
vided:
"Such penalties may be sued for and recovered
by the same boards and officials, and in the
same manner as provided for the recovery of
penalties in the act to which this act is a sup-
plement."
The act speaks of a court ; the only court
which a Justice of the i)eace Is empowered
to hold Is the small cause court; by the
small cause court act (P. L. 1903, p. 251, $
80), as amended in 1904 (P. L. 1904, p. 72,
f 80) It is further provided that from any
Judgment which may be obtained in those
courts, except such as may be given by con-
fession, an appeal is given to the court of
common pleas of the county.
The case of Harman v. Board of Phar-
macy, 67 N. J. Law, 117, 50 Atl. 662, however,
is decisive of this case; there the prose-
cutor was convicted of violating the pharma-
cy act ; the suit was to recover a penalty un-
der the act, as in this case; the same point
was there made, that the suit should have
been commenced before a Justice of the peace
sitting as a magistrate, and not In the small
cause court; that case held the action was
properly commenced in the small cause court
We therefore conclude that the Judgment
of the court of common pleas had Jurisdic-
tion to hear the case on appeal. The Judg-
ment of that court was regular. The rules
applying to summary convictions have no
application; it is not necessary that the evi-
dence in the court be set out or the proce-
dure conform to the rales governing som-
mnry convictions.
The Judgment of the common pleas court
of Cumberland county is affirmed, with costs.
(W N. J. Law, 620)
MAYOR AND ALDERMEN OF JERSEY
CITY V. THORPE.
(Court of Brrors and Appeals of New Jetaer.
June 18, 1917.)
(Byttalu* tv the OourtJ
1. CwmNAL Law «=9260(2) — Bsview— Warr
OF EiBBOB.
Writs of error do not run directly to this
court from the order of a Justice of the Supreme
Court reviewing the summary convictions of
criminal courts in municipalities.
[E2d. Note.— For other cases, see Oiminal
Law, Cent Dig. {§ 568-571.]
(Additional Syllabus hv Editorial Staff.)
2. CBUfiBAi. Law <g=>1030(2)— Appkai^Abgu-
KENT or CoNSTrruTioNAL Questions.
An appellant has no right to argue in an
appellate court constitutional questions based
on a stipulation entered into for the purpose of
such appeal, which raise for the first time ques-
tions not raised in the court below.
[Ed. Note.— For other cases, see Criminal
Law, Cent Dig. | '2620.]
Appeal from Supreme Court
Herbert A. Thorpe was convicted in the
First Criminal Court of Jersey City of vio-
lating an ordinance against littering the
streets with refuse matter, and from a Judg-
ment of the Supreme Court afflmilng the con-
viction, the defendant appeals. Dismissed.
EVank W. Heilenday, of Jersey City, for
appellant Jolm Bentley, of Jersey Cl^, for
appellee.
GARRISON, J. The appellant was con-
victed by the First criminal court of Jersey
City of a violation of the provisions of sec-
tion 4 of an ordinance entitled, "An ordinance
concerning the Uttering of the streets with
refuse matter," in that the said appellant did
distribute hand circulars iq>on Summit ave-
Due in said city.
Having been thus convicted, the appellanc
made application to the Justices holding the
circuit of the Supreme Court in Hudson coun-
ty for the purpose of liavlng his said convic-
tion set aside, if found to be illegal, as pro-
vided by the act establishing criminal courts
in municipalities in counties of the first class.
The said Justice having heard said appeal,
"under the statute in such case made and
provided" ordered that the conviction of the
said appellant be affirmed. TlUs order the
appellant seeks to bring Iiefora this court by
an appeal.
[1] It is too plain for argumoit that sudi
an appeal is without legal foundation, noK
only for the reason that an appeal has noc
been substituted for a writ of error in the
review of the Judgments of courts of criminal
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MALOME ▼. ERIE B. CO.
415
Jurisdiction, bat for the more substantial rea-
80Q tliat a writ of error does not mn directly
to this court from the orders or Judgments of
a legislative agency such as the Justice of the
Supreme Court Is under the proTlslons of the
statute under which the proceedings below
irere had.
Certiorari Is the proper remedy; the con-
stitutionality of the statutory review by a
legislative agency Is sustainable solely upon
the ground that orders or JiUdgments so made
may be supervised by the Supreme Court up-
on certiorari. Newark ▼. Kazlnski, 86 N. J.
Law, page 59, 90 Atl. 1016.
The present appeal, therefore, brings noth-
ing before this court, and must consequently
be dismissed.
[2] It may be well to point out to counsel
for the appellant that he has no right to ar-
gue In an appellate court constitutional ques-
tions based upon a stipulation entered Into
for the purpose of such appeal, and raising
for the first time In the appellate tribunal
questions that were not raised In the court
below. N. J. Digest, sec. 91, et seq. ; State
V. Sh«4ie, 88 N. 3. Law, page 610, 97 AtL 271.
(90 N. J. Law, US)
ELLIS V. PENNSYLVANIA R. CO.
(Supreme Court of New Jersey. June 2S, 1917.)
fSyllahiu by the Court.)
1. EXEonroRs and Advinistbators 9=3456(3)
—Costs— Motion to Nou Pros.
In an action broasht by an administrator
under the "Death Act^' (2 Comp. SL 1910, p.
1907) a motion to non pros., if granted, is with-
out costs against the plaintiff.
[Ed. Note. — For other casest see Kxecutors and
Administrators, Cent. Dig. {{ 1951-1954, 1957,
1968.]
2. Case Followed.
The ease of Kinney, Adm'r, ▼. G. R. B.
Co, 34 N. J. Law, 273, foUowed.
Action by Alfred H. Ellis, administrator,
against the Pennsylvania Railroad Company.
Motion to non proa. Rule entered without
costs to plaintiff.
Argued February term, 1917, before GAB-
BISON, PARKER, and BERGEN, JJ.
John A. Hartpence, of Trenton, for the
motion. Warren Dixon, of Jersey City, op-
posed.
GARRISON, J. This is a motion for
Hon pros., and for the allowance of coats ta
favor of defendant against the plaintiff, who
Is an administrator suing under the "Death
Act" The court granted the non pros., but
reserved the question of costs, with leave to
defendant to submit a memorandum In sup-
port of the application therefor against the
administrator, which has now been handed
to the court.
In his memorandum counsel frankly ad-
mits that In the case of Kinney v. O. B. R.
Co., 34 N. J. Law, 273 (1870), this court de-
cided that a defendant could not recover
costs against an administrator In an action
brought under the "Death Act" He also ad-
mits that for nearly 50 years this rule has
been applied In this court He then argues
with much force that the rule Is wrong for
the reason that the administrator does not
sue in the right of his Intestate, but In the
right of statutory beneficiaries. We ex-
press no opinion as to whether the original
decision of this question was correct or not,
for the reason that It Is the Judicial habit
of this court under the circumstances now
before us to follow Its own previous deci-
sion, leaving It to the Court of Errors and
Appeals to review the legal merits of such
decision.
The rule of non pros, may be entered with'
out costs.
(M N. J. law, SSO) ■
MALONB V. ERIE B. CO.
(Supreme Court of New Jersey. June 28, 1917.)
(ByUalut Iv the Court.)
DlSMISSAI, AND NONStnT «=»7(1)— RlQHT TO
Take Nonsuit.
When a judge is tryinfr a case with a jury,
bis opinion as to the sufficiency of the plain-
tiff's proofs, whether communicated to connsel
or not, does not deprive the plaintiff of his
right to submit to a voluntary nonsuit at any
time before the jury haa retired to consider its
verdict or the judge has commenced to address
the jury for the purpose of directing a verdict.
[Ed. Note.— For other cases, see Dismissal and
Nonsuit, Cent Dig. {{ 15, 18, 19, 22.]
Appeal from District Court
Action by James 0. Malone against the
Erie Railroad Company. There was a Judg-
ment for defendant, and plaintiff appeals.
Reversed, and venire de novo awarded.
Argued February term, 1917, before QAA-
RISON, PARKER, and BERjQEN, JJ.
Thomas J. Brogan, of Jersey City, for ap-
pellant Collins & CorMn, of Jersey City, for
appellee.
GARRISON, J. This was an action (or
damages for the negligent transportation of
skins whereby they heated and were In part
spoiled.
A motion to direct a rerdtct was made,
during the argument of which the court sev-
eral times gave expression to a view of the
case favorable to the granting of the mo-
tion, and when these expressions had reached
a point that satisfied coans^ for the plain-
tiff that in the view of the court his evidence
was not sufficient to make a case for the Jury,
he said to the court that he would take a
nonsuit This right the court denied blm,
and after an exception had been taken to this
ruling the court addressed the Jury and
directed them to render a verdict for the de-
fendant
We think that It was error to deny the
plaintiff's motion to submit to a voluntary
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101 ATLANTIC REPORTBR
QJ.J.
nonsuit made before tbe Jury had retired to
consider Its verdict and at a time when it
had not been directed what verdict to render.
Section 160, Practice Act (3 Oomp. St I&IO,
p. 4103), takes away this right only "after
tbe Jury hare gone from the bar to con-
sider their verdict." This applies to district
courts. Greenfield v. Cary, 70 N. J. Law, 613,
67 Atl. 269 ; Ciesmelewski r. Domalewski, No.
432, November term, 1016, 100 AtL 179.
In this latter case there was no Jury and
tbe Judgment pronounced by the court was in
effect after the consideration ot its verdict
Wolf Company r. Fulton Bealty Co., 83
N. J. Law, 344, 84 AtL 1041, was also a case
tried without a Jury and the Judge had be-
gun to announce his decision, which, of
course, assumed that tbe Jury element in the
court had considered its verdict
Mr. Justice Swayze in this case said that
the situation was closely analagous to one
where the trial Judge has directed tbe Jury
to render a verdict for the defendant, but the
verdict has not in fact been rendered, in
which situation the plaintiff has no right to
submit to a nonsuit, citing Dobkln v. Dltt-
mers, 76 N. J. Law, 235, 69 Att. 1013.
The theory of this line of cases is that,
when the Jury has been directed as to its ver-
dict no consideration by the Jury is con-
templated; hence tbe offer to submit to a
nonsuit comes too late. The essential feature
of these dedslocs Is the legal effect of a
binding Instruction delivered by the court
to the Jury. The attempt In the present case
la to give to the t^inlon expressed by the
Judge to counsel during the argument of the
defendant's motion for a direction the same
effect that the cases dted give to a Judicial
direction to the Jury to render a verdict for
the defendant
Tbe confusion of these two totally differ-
ent things loses sight of the fact that at com-
mon law where compulsory nonsuits were un-
known voluntary nonsuits were based upon
the communication to counsel of the Judge's
opinion adverse to the plaintiff. So far,
therefore, from such a communication pre-
venting the plaintifTs submission to a volun-
tary nonsuit. It normally led to It
In the early case of Bunyon v. Central
Railroad Company, 25 N. J. Law, 556, while
3ur practice as to nonsuits was still In the
naklng, this court said:
"The counsel did, indeed, resist the motion
\ dow, and the question whether the plaintiff
had made a case which entitled him to recover
was fully argued; but after the court had given
the opinion that the plaintiff ought to suffer a
nonsuit, h* did not insist upon his right to have
the matter submitted to tbe jury. In such case
tbe party is considered as technically suffering
a voluntary nonsuit"
There Is nothing in oar Judicial rule as
to compulsory nonsuits that alters the com-
mon-law right to submit to a voluntary non-
suit If that right has been abridged it is by
our statute which preserves the right until
the Jury has retired to consider its verdict or
some Judicial action has t>een taken, the
legal effect of which Is to control tbe action
of tbe Jury.
It results, therefore, that when a Judge la
trying a case wltti a Jury, his opinion as to
the sufficiency of the plalntHTs proofs,
whether communicated to counsel or not, does
not deprive the plaintiff of the right to sub-
mit to a voluntary nonsuit at any time before
the Jury has retired to consider its verdict
or the court has addressed the Jury for tbe
purpose of directing its verdict
It may well be that, when tbe Judge has
commenced to address tbe Jury for the pur-
pose of directing a verdict for the defendant,
he cannot be interrupted by counsel for the
plaintiff. That question does not arise in
this case, where the court bad not commenced
to address the Jury, but had expressed bis
opinion in a running colloquy with counsel.
Having readied the conclusion that there
was legal error in tbe denial of the plain-
tiff's right to take a voluntary nonsuit there
must be a reversal of the Judgment of the
district court and the award of a venire de
novow
(80 N. J. Law, 6C»)
DDFFI v. MAYOR AND ALDBRMBN OF
CITY OF PATERSON et aL (No. 147.)
(Court of Errors and Appeals of New Jersey.
June 18, 1917.)
Appeal from Supreme Court
Proceeding by William J. . Duffy against the
Mayor and Aldermen of the Oity of Paterson
and others. Prom a judgment for defendants,
the prosecutor aooeala. Affirmed.
Ward & McOinnis, of Paterson, for appdlant.
SMward F, Merrey, of Paterson, for appdlees.
PER CURIAM. The judgment under review
will be affirmed, for tbe reasons given in the per
curiam in Wilhelmina Koettegen v. Mayor and
Aldermen of the (Titr of Paterson et al., 101
Atl. 268, No. 149, of the present term of thia
court
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OAHIXiL ▼. TOWN OF WEST HOBOKEN
417
(M N. J. lAW, <W)
cahiui t. town of west hoboken.
McCarthy t. same.
(Sapreme Ckiurt of New Jersey. July 9, 1917.)
(ByUalus hy the Court.)
Mdnicipal Cobpobations ®=»126— Obtices—
Abolition— Remotai. of Incumbenj.
While a mtinicipal office may be abolished
by the municipality for economical or beneficial
rensons, and the incumbent deprived of his office,
although protected by a tenure of office statute,
that end cannot be accomplished by a removal
from office contrary to the terms of such a stat-
ute, when such acti<xi leaves the office in ex-
istence, and only brings about the creation of a
vacancy to which another may be appointed.
[BM. Note.— For other cases, see Municipal
Corporations, Cent. Dig. |f 298-300.]
Certiorari by Tbomas A. Cahlll and by
Pati-ick McCarthy against tbe Town of West
Hoboken to review two resolutions, of the
common council of the defendant Town.
Writs allowed and resolutions set aside.
Argued February term, 1917, before GAB-
RISON, PARKEK, and BERGEN, JJ.
John J. Fallon, of Hoboken, for prosecu-
tors. Frederick K. Hopkins, of Hoboken, for
defendant
BERGE<N, J. In each of the foregoing cases
a rule was allowed requiring the defendant
to show cause why a writ of certiorari
should not be allowed to review a resolution
adopted by tbe common council of tbe de-
fendant on tbe lat day of January, 1917, re-
scinding a previous resolution of the council
appointing the two prosecutors to tbe posi-
tions of patrolmen, and abolishing the posi-
tions which they held. On the argument, the
cages being argued together. It was agreed
by counsel that. If the court determined to
allow the writs, it should decide the merits
of the controversy as If on final hearing
without further argument.
It was stipulated that the defendant Is in-
corporated under "An act providing for the
formation, establishment and government of
towns," approved March 7, 1895 (P. L. p. 218),
and has since been governed by the provi-
sions of that act; that tbe defendant on April
12, 1916, adopted an ordinance establishing
a police department, which provided that the
police force of the town should consist of one
policeman (to be called patrolman) for every
700 inhabitants of the town; that the two
prosecutors were appointed in Decetnber,
1916, to fill vacancies, one caused by death,
and the other by retirement; that the ap-
pointments took efTect Immediately, and the
two prosecntors qualified and entered upon
the performance of their duties as patrolmen
and served as such until January 6, 1917;
that on January 1, 1917, tbe defendant adopt-
ed a resolution rescinding the resolution ap-
pointing tbe two prosecutors and purporting
to abolish tbe office of patrolman held by the
prosecutors; that no charges were preferred
against either for Incapacity, misconduct,
nonresidence, disobedience of Just rules and
regulations, or otherwise, nor was either
given a bearing on any charge or charges;
that the preamble of the rescinding resolu-
tion refclted that the police force was suffi-
cient without tbe appointment of tbe pros-
ecutors, and that such appointments were
unwarranted and Imposed an unnecedsary
and unjust burden on tbe taxpayers; and
that tbe purpose of the resolution was the
promoting of the! efficiency of the department
and economy In the administration of tbe
town's affairs.
The power of the defendant to provide for
the establishment of a police force is to be
found in section SO of an act entitled "An
act providing for the formation, establlsb-
mefnt and government of towns" (P. L. 1895,
p. 239; O. S. 6632, { 375), which declares
that the coundl shall have power by ordi-
nance to establish and provide for the ap-
pointment, removal, duties, and compensa-
tion of a police force^
"provided, that such police force (excluding of-
ficers) shall not exceed more than one policeman
to every eight hundred inhabitants: And pro-
vided further, that no policeman or police officer
shall be removed except for neglect of duty, mis-
behavior, incompetency or Inability to serve."
Tuere is nothing in this record which tends
to show that 'the police) department of the
town of West Hoboken was not lawfully es-
tablished under the statute above referred to.
It authorizes tbe establishment of a police
force not to exceod one to every 800 Inhab-
itants, and to that extent tbe numl>er of
patrolmen Is fixed by law, and appointments
beyond that number would be unlawful. The
fact that the present ordinance fixed the
number at one to every 700 inhabitants does
not destroy the ordinance establishing a po-
lice force and leave the municipality without
such force; for, if tbe number of patrolmen
is not properly fixed by the ordinance, tbe
statute fixes It, and wltliin that limit all ap-
pointments would be legal, and in this case
the appointments including the prosecutors
do not exceed that limit. We are of opinion
that the police force was lawfully estab-
lished.
If the police department was lavrfnlly es-
tablished, then tbe statute entitled "An act
respecting municipal police departments law-
fully established in this state and regulating
tbe tenure and terms of office of officers and
men employed in said departments" (P. L.
1915, p. 688) applies. That statute (section
1) provides that in municipal police depart-
ments lawfully established in this state tbe
officers and men employed therein shall hold
their offices and continue in their employ-
ment—
"during good behavior, efficiency and residence
in the municipality wherein they are respective-
ly employed ; and no person shall be removed
from office or employment in any such police
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418
101 ATIi&NTIC REPORTBR
(N.J.
department or from the police force of any such
municipaUty for political reasons or for an^
other caase than incapacity, misconduct, nonresi-
dence or disobedience of just rules and regula-
tions established or whicn may be established
for the i>olice force in such department."
Section 3 of the same act enacts that no
pcfrson, whether officer or employe in any
police department, shall be removed from of-
fice except for a cause provided In the first
section of the act —
''and then only after written charge or charges
of the cause or causes of complaint shall have
been preferred against such officer or employ^,
signed by the person or persons making such
charge or charges and filed in the office of the
municipal officer, officers or board, having charge
of the department in which the complaint ansr
es, and after the charge or charges shall have
been publicly examined into by the proper board
or authority upon reasonahle notice to the per^
son charged, it being the intent of this act to
give every person against whom a charge or
charges for any cause may be preferred under
this act, a fair trial upon said charge or charges
and everj reasonable opportunity to make his
defense, if any he has or chooses to make."
This act prevents the removal of any
patrolman from a poUcef department for po-
litical reasons, or for any other cause except
Incapacity, misconduct, nonresldence, or dis-
obedience of rules, and then only after a
public hearing upon written charges, and It
Is not pretcfnded In this case that any charges
were preferred or any bearing allowed.
It Is urged that when the purpose of the
removal of a patrolman Is alleged to be In
the Interest of economy be may be removed
arbitrarily by resolution and without a bear-
ing accordefd to him. We do not agree to
this proposition, for the ofllce cannot be
abolished by resolution; It Is created either
by statute or ordinance, and must be abolish-
ed In a like solemn manner. If it be grant-
ed that the municipality has the power to
reduce the number of patrolmen, It must be
done by ordinance fixing the number at less
than the statutory ratio.
The statute declares, among other things,
Ibat the council shall have power to provide
by ordinance for the removal of the police
force, and there Is nothing In this record
which shows any such ordinance; all that
bppears is that the prosecutors, lawfully ap-
pointed, are removed from their offices with-
out the hearing which the statute gives them,
leaving the offices in existence to be filled
with partisans of the majority of tbe council.
If this can be done, tbcfn there la nothing to
prevent other removals In like manner until
tbe entire force ' is discharged and their
places filled by new appointments, all by
resolution of the council. Under such con-
ditions the allegation of economy as an ex-
cuse for a removal of an Incumbent without
a hearing affords an easy means to avoid the
statute.
Mr. Justice Sciidder, speaking for tbe
Court of Errors and Appeals in Newark v.
Lyons, 63 N. J. Law, 632, 23 Atl. 274, said
statutes of this dass are Intended "for the
protection of Incumbents while the offices
continue," and that the power to declare all
offices vacant cannot foe exercised "for tbe
purpose of apixrintlng another to the vacated
office unless It be for good cause shown
against the Incumbent, for tbU would be a
removal within the prohibition of tbe stat-
ute." lit that case It was held that a power
existed to abolish useless and antiquated of-
fices and that "the tenure of the office is
qualified by the continuance of tbe office."
In Sutherland v. Jersey City, 61 N. J. Law,
436, 39 Atl. 710, Paddock v. Hudson Tax
Board, 82 N. J. Law, 360, 83 AU. 185, Van
Horn V. Freeholders of Mercer, 83 N. J. Law,
239, 83 AtL 891, and Boylan v. Newark, 58
N. J. Law, 133, 32 AU. 78, the office was abol-
ished. The rule seems to be settled In this
state that, while a mimicipal office may be
abolished by the municipality for economical
or beneficial reasons, and tbe Incumbent de-
prived of his office, although protected by a
tenure of office statute, that end cannot be
accomplished by a removal from office con-
trary to the terms of such a statute when
such action leaves the office in existence and
only brings about the creation of a vacancy
to which another may be appointed. Tbe
resolution under review does nothing more
than create a vacancy which the council may
at any time fill, and is not supported by the
cases dted by the defendant holding that an
office may be abolished in the public interest
even where tbe incumbeot Is protected by a
tenure of office act.
Whether, under any circumstances. In
view of the act of 1915 (P. L. p. 688), a police
officer can be retooved without written
charges, and a hearing accorded as provided
In that act. It la not necessary to decide In
this case, for here the office remains in ex-
istence, and the result Is the removal of the
prosecutors from office without charges, or
the hearing to which they are entitled, and
witbout an efTeetlve abolition of the offices
which they held.
The writs will be allowed and the resolu-
tion under review will be set aside.
(W N. J. Law, 414)
BIARTIN et al. v. WOODBRIDGE TP.. MID-
DLESHX COUNTY, et al.
(Supreme Court of New Jersey. June 19, 1917.)
(8v^la1»t* by tke Court.)
L Taxation «=>665— Tax Sale— Arbeabs.
Where lands have been sold by the proper
officer to make taxes in arrears levied against
land, under tbe provisions of section 63 of the
act of 1003 (4 (3omp. St 1910, p. 5134), it is
lawful to add to the taxes In arrears for the cur-
rent year, to make which a sale has been or-
dered, all arrears of taxes for which the land
has been sold and purchased by the taxing dis-
trict to the extent necessary to pay the cost of
redemption, whether the taxes accrued prior to
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MARTIN ▼. WOODBRIDQE TP.
119
that date when the act of 1903 went into effect
OT thereafter.
[Ed. Note.— For otker casea, aee Taxation,
Cent Dig. i 1349.]
2. Taxation «s»667—CoiXEcnoir— Mistake-
Costs.
The fact that the township clerk in furnish-
ing the collector with a statement of all taxes in
arrears erroneoaaly included an installment of a
■ewer asaeasment not ;et due will not vitiate the
lale when it appears that the collector before
making the sale corrected the error by deducting
the installment and did not include it in the
amount for which the sale was made, nor will
the fact that the clerk included in the amount
certain costs not properly chargeable make the
■ale illegal if in fact the sum for which the land
waa sold was not more, excluding the fees, than
the true amount due.
[Eii. Note. — BV>r other cases, see Taxation,
Gent Dig. | 1350.]
8. Taxatior «a»682— Tax Saia— Advxbtisb-
UKNT.
Proof by the collector making the eale that
he posted advertisements thereof in five of the
most public ploces of the taxing district is not
overcome by the fact that two of the places
were sometimes closed during buainess hours.
CBd. Note.— For other cases, see Taxation,
Cent. Dig. S 1342.]
4. Taxation «=>658(3> — Tax Salb— Notick
OF Sau:.
It is not necessary that the notice of sale
for unpaid taxes put up by the collector sitall
contain a statement that the land will be sold in
fee if no one should bid for a shorter term.
The statute makes it the duty of the ofScer to
make the sale in fee if no one shall bid for a
shorter term, and it is not necessary to adver-
tise the terms of the statute.
[Bd. Note.— For other cases, se« Taxation,
Cent Dig. { 1335.]
Certiorari by Albert Martin and ESphraim
Cutter, execntor of the will of Samnel Dal-
ly, deceased, against the Township of Wood-
bridge, In the County of Middlesex, and the
Valley Company to set aside a tax sale. Sale
confirmed.
Argued June term, 1917, before SWATZE,
BERQEN, and BLACK, JJ.
Charles C. Hommann, of Perth Amboy, for
prosecutors. J. H. T. Martin, of Newark, for
defendants.
BHRGEN, J. On the Slst day of July, 1916,
the collector of the township of Woodbrldge,
In the connty of Middlesex, sold at public
anctlon a parcel of real estate for unpiald
taxes to the defendant Valley Company In fee
for the sum of $2,077.13, and thereupon Issued
to the purchaser a certificate of the sale as
authorized by statute. The prosecutors were
allowed a writ of certiorari to review the
proceedings upon which the tax certificate la
based, and also for an order setting aside the
sale and certificate. The material facts,
which are not In dispute, are as follows ; The
land was assessed In the name of the own>
er, Charles S. Demarest, for the years 1894 to
1911, indaslTe, and In the name of the estate
of Samuel Dally for the years 1012 to 1915,
Inclusive; that in 1895 the land was sold for
taxes assessed for the year 1894, and were
also sold In 1896, 1900, and 1908 for the taxes
of the next preceding year, the township of
each case being the purchaser, the sales la
1895, 1898, and 1900 being for the period of
30 years, and those of 1904 and 1908 being
In fee. After the foregoing sales the town-
ship continued to levy the taxes against the
land In the name of the owner, and no taxes
being paid after the sale of 1908, nor the
land redeemed from the effect of the prior
sales, the township committee, March 16,
1916, adopted a resolution directing the col-
lector to sell the land to raise the taxes lev-
ied for the year 1914 and for all other taxes
In arrears.
The township clerk certified to the collec-
tor the amount of unpaid taxes for the years
1894 to 1915, Inclusive, and also an unpaid
sewer assessment. When the collector came
to make the sale. It was found that of the
sewer assessment $33 was not then due, and
the collector deducted that sum from the
amount certified, and added to the balance
thus ascertained the expenses and costs of
the sale, making a total of unpaid taxes, ln>
terest, sewer assessment and expenses of $2,-
077.13, for which the land was sold and pur-
chased by the Valley Company.
The sale was made by virtue of section
53 of the tax act of 1903 (C. S. 5134), which
provides that, where land has been sold and
purchased by a taxing district, the subsequent
taxes shall be levied as If no sale had been
made, and shall remain a paramount lien on
the land, and that no further sale shall be
made unless directed by the governing body
of the municipality assessing the taxes, in
which case the clerk of the taxing district
shall certify to the collector the amount re-
quired to be paid to redeem the land from
the previous sales, and that the collector shall
sell the land for the amount thereof to be
added to the tax for the current year. In
the present case the sale was made for taxes
levied In the year 1915, and to it was added
all unpaid taxes; the result being to raise a
sufficient sum to pay all taxes In arrears, and
also to redeem the land from the prior sales
to the taxing district
[1] The first reason which the prosecutor
argues why this tax sale should be set aside
is that the certificate of the township clerk
of the amonnt to be added to the current
taxes Included the tax for the years between
1894 and 1903, the date of the act which per-
mitted the adding of anterior unpaid taxes
to those of the current year for which the
sale was to be made, it being urged that the
act of 1903 had no application to taxes ac-
crued previous to that date, because, although
section 53 of the act of 1003 declares that:
"Where a parcel of land has been purchased
and is held by the taxing district under a tax
sale not redeemed, all subsequent taxes • • •
shall be and remain a paramount lien on the
land and be added to the purchase money and
shall be paid before the iaind can be redeemed
from the sale"
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101 ATLANTIC REPORTER
(N.J,
—It Is provided by aectlon 66, O. S. 5141:
"This act shall take effect on the twentieth
day of December 1903, and its provisions shall
extend to proceedings on and after that date, re-
lating to taxes assessed in the year 1903, but not
to proceedings relating to taxes assessed in prior
years."
Section 66 appears to be a legislative dec-
laration that tbe act of 1903 shall not ap-
ply to proceedings relating to taxes thereto-
fore assessed, and that the collection of prior
unpaid taxes cannot be enforced In the meth-
od provided by section 63, which relates to
cases where at a prior tax sale the taxing
district became the purchaser. By the stat-
ute of 1902 (P. L. 447) aU unpaid taxes as-
sessed after the Ist day of January, 1898,
were made a first lien for and during tbe
period of five years next after the date on
which they become delinquent, and by section
2 of the same act taxes thereafter assessed
were made a paramount Uen for five years,
but this act was rqtealed In 1003 (P. L. 446)
with the proviso that the repealer should not
afTect the proceedings or remedies relating
to taxes assessed prior to 1903. Tbe effect
of this repealer was to restore tbe status
existing prior to its adoption, the limitation
of five years being removed, and the pro-
ceedings and remedies relating to taxes as-
sessed prior to December 20, 1903, restored.
By the statute of 1879 (P. U 298; C. 8.
6188) it was enacted that, where real estate
theretofore or thereafter sold for nonpay-
ment of taxes, assessments, or water rents
was purchased by tbe taxing district, or by
any person in its behalf, subject to the right
of redemption, the taxes, assessments, and wa-
tese rents should continue to be assessed up-
on the land for subsequent taxes, but that It
should not be necessary to sell the land for
nonpayment, and that such taxes and assess-
ments should remain a first lien upon the
lands to be paid before it could be redeemed,
but this does not provide for a sale for un-
paid taxes for which a sale had been made,
so the situation is that, as to taxes assessed
prior to 1903 and for which the land assessed
had been sold and purchased by the taxing
district, the right of redemption, and not of
resale, existed, and the only question now
presented is whether in making a sale under
section 53 of the tax act the cost of redemp-
tion may be added to the amount of tbe cur-
rent taxes for which a sale is to be made.
We do not perceive any difference between
selling to make a current tax subject to a
right of redemption from a prior sale and a
sale to make current taxes which shall In-
clude tbe amount necessary to pay the re-
demption fee. The sale made under the act
of 1903 Is in fee unless the bidder will take
It for a shorter term, and the purchase of
a fee subject to the cost of redemption would
require the payment of the latter cost; for
it cannot be assumed that the Legislature
ever intended by implication what It has uot
expressly declared, viz. that a sale of land
(or unpaid taxes tor a current year under j
the act of 1903 would deprive the taxing dis-
trict of its right to claim and be paid tbe
taxes In arrears for whldi it had purchased
the land and was holding subject to the own-
er's right of redemption. We are therefore
of opinion that, when a sale of land is made
under the act of 1903, the taxing district
may add to the current tax for which a sale
is about to be made the amount required to
be paid to redeem the land from the effect
of all prior sales at which a taxing district
became the purchaser. In matters of taxa-
tion all doubtful questions must be resolved
in favor of the right of the state to enforce
the payment of taxes levied to sustain the
government
The next point Is that, as some of these
taxes are more than 20 years in arrears,
there Is a presumption that the tax has been
paid. In support of this we are referred to
In re Commissioners of Trenton, 17 N. J.
Law 3. p. 23, In which it is reported that Mr.
Justice Abbett said that as to taxes:
"A presumption of payment arises after a
lapse of 20 years if there is no evidence to repel
it, and to show that the deht is still unsatisfied."
Without conceding that sudi a presump-
tion arises against the state, It is a sufficient
answer in this case to say that such a pre-
sumption, if it exists. Is rebutted by the ad-
mitted fact that none of the taxes now in dis-
pute have ever been paid. But, aside from
this, all of these taxes beyond tbe 20-year
limit have been enforced by a sale and pur-
chase by the taxing district for the i>eriod
of 30 years, which has not yet expired, and
therefore It is still the owner subject to
the owner's right of redemption if that right
has not yet expired.
[2] The next reason argued Is that the cer-
tificate of the derk Included an installment
of a sewer assessment amounting to $33 not
yet payable, and that this amount, although
deducted by the collector before the sale, was
Included in the certificate of the clerk. It
is not denied that this amount was not in-
eluded in the sum for which tbe sale was
made, and the mere fact that there was a
mistake In the amount claimed in the cer-
tificate of the clerk which was corrected be-
fore the sale and it made for the true amount
will not vitiate the sale; for tbe owner was
in no way injured because he could have re-
deemed before tbe sale by paying the correct
amount for which the sale was made.
Another reason urged is that the certifi-
cate of the clerk Included certain items of
cost which were greater than that allowed by
law; that Is, that 40 cents was charged in
each case as a fee in excess of the legal
amount This does not make the sale Il-
legal when It appears, as It does here, that
tbe amount for which the property was sold,
owing to other slight miscalculations, was
not more than was due the township, ex-
(dndlng these alleged illegal fees, there be-
ing nothing to show that the owner oOTered
to redeem for any sum due less these fees.
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IN BE McOAW
421
or that he made any objection thereto prior
to the sale, or that he Is now willing to re-
deem by paying the amount due.
The next reason urged Is that the lands
conid not be advertised for sale to make the
taxes ot 1915 until after July 1, 1916, prior
to which time the land could not be sold for
impald taxes for the year 1915. This claim
Is not sound, for there Is nothing In the stat-
nte which prevents the advertising of the
land for sale prior to the Ist day of July
in each year; all that the statute forbid* is
a sale prior to that date, and In this case a
sale was not made until after that date.
[3] The next reason urged Is that the ad-
vertisements of the sale were not put up In
Ave of the most public places of the taxing
district. It Is not urged that the places were
not public In the general sense of that word,
bat that two of the places were sometimes
closed during business hours. Tbe affidavit
of the collector sets out that they were set
np "In five or more of the public places of
said township" as follows, one on a polo on
the north side of Green street, "In front of the
premises described In said notice," one in the
post office, one In the printing office, one In
a real estate office, one In a grocery store, and
one In the public room of a hotel, giving the
name of each. We think this Is sufficient
proof, and must be taken as true, unless It
Is rebutted In a more substantial manner
tlian appears in this case. They are all in a
fair sense public places, and should be taken
as such under this proof In the absence of
anything which conclusively sbows that they
were not such public places as satisfies the
law. What is a public place would depend
upon the state of mind of any one objecting
to a public sale by any officer which required
the posting of such notices.
[4] The next reason urged Is that the no-
tice of sale did not state that the land
would be sold in fee if no one would
bid for a shorter term. Such a statement
In the advertisement of the sale is not neces-
sary, for the law fixes the duty of the offi-
cer, which is to sell In fee unless some bid-
der at the sale Is willing to pay the arrears
in consideration of an estate less than a fee,
and the report expressly states that no person
bid for a shorter term than a fee, nor was It
necessary, as next urged, that the return of
the collector should state that It was requir-
ed to sell the whole of the land, for that
sufficiently appears when, as he did, he re-
ports he sold the entire tract to make the
arrears.
The next and last reason nrged Is that the
affidavit of mailing does not state that a
copy of the advertisement was mailed to the
owner of the land. The land belonged to the
estate of Samnel Dally, deceased, of whose
will Ephraim CJutter was the executor, and
his affidavit shows that be mailed to Gutter
as the executor of the estate of Samuel Dal-
ly, deceased, assessed as owner, a copy of the
notice, which was Indosed in an envelope,
with the postage prepaid, addressed to the
said Ephraim Cutter. This is sufficient.
There not appearing In this record any suf-
ficient reason why the certificate of sale
should be set aside, the proceedings and sale
will be conflrmed, with costs.
(88 N. J. Eq. 288)
In re McGAW. (No. 3766.)
(Prerogative Court of New Jersey. July 7,
1917.)
EXBCTTTOSB AND ADltimSTBATOBS «=9314(3)—
OBPHANS' Ck>UBT— Decbeeino Distkibu-
TION — TXSTATE EISTATES.
The orphans' court, under the power and
direction in 3 CJomp. St 1910, p. 3877, § 173,
to adjust, order, and make just diatribution "in
accordance with the directions and provisions
of the last will," cannot decree distribution to
an aasitmee of a legatee.
fEd. Note.— For other cases, see Executors
and Administrators, Cent Dig. §g 1279, 1280,
1297.1
Appeal from Orphans' Court, Atlantic
Coimty.
In the matter of the appeal of Abbie V.
McGaw fr(Hn a decree of orphans' court
Affirmed.
John O. Homer, of Camdoi, for appellant
Thompson & Smathers, of AUanttc City, for
respondent
LEAMING, Vice Ordinary. This Is an ap-
peal from a decree of distribution made by
the orphans' court of AtlanUc county. The
decree was made under authority conferred
by 3 Comp. Stat p. 3877, I 173. Orphans'
Court Act (P. L. 1898, p. 781).
This statute, originally passed in 1872 (P.
L. 1872, p. 47), by its terms confers upon the
orphans' court the power to make decrees ot
distribution in cases of testacy.
The decree in question directs the money
in the hands ot the executor to be paid to
the residuary legatee named in the will.
That disposition of the money Is admittedly
in accordance with the provisions of the wllL
But appellant herein was at that time the
equitable owner of the money by reason of a
written assignment thereof thnetofore made
to him by the residuary legatee. Appellant
accordingly sought in the orphans' court a
decree of distribution which should give rec-
ognition to the assignment and direct the
money paid to him. The Judge of the or-
phans' court adopted the view that the stat-
ute only authorized a decree in conformity
to the provisions of the will and refused to
recognize the assignment for that reason.
The only question raised on this appeal Is
therefore whether the orphans' court after
the allowance of the final accounts of an
executor, may, upon application of a party in
Interest for a decree of distribution, adjudge
that funds payable to a certain legatee by the
terms of the will shall be paid to a person to
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422
101 ATLANTIC REPOttTBE
(N.J.
whom the legatee has theretofore assigned
his rights in the legacy.
Prior to the act of 1872 above dted the or-
pbans' court was empowered to make decrees
of distribution in cases of intestacy only.
That power was conferred by the act of
March 2, 1795 (Pat h. p. 153), and has con-
tinued to this time with but slight ciianges in
the language of the original act Comp. Stat
p. 3874, i 168. In Sayre's Adm'r v. Sayre, 16
N. J. Eq. 505. it was determined that under
that section tibe decree must be made in fa-
vor of the next of kin irrespective of the ex-
istence of any assignments that might have
been theretofore made by such distributee.
At page 609 of the reported opinion in the
chse it is said:
"It is no part of the office of the decree to
settle whether the share has been paid in whole
or in part; or whether the legal or equitable in-
terest in the fund may have been assigned. The
law settles with sreat precision to whom the
shares of the estate shall be allotted in making
the distribution."
Tliat view does not appear to hare been
since questioned, and has been given appar-
ent sanction by our Ck>urt of Errors and Ap-
peals in Adams t. Adams, 46 N. J. Eq. 29i8,
19 AtL 14.
The statutory authority of the orphans'
court over decrees of distribution in cases of
testacy cannot be easily regarded as essen-
tially different from that enjoyed in cases
of intestacy so far as the office of the decree
Is concerned. By its terms the statute di-
rects the court to "adjust order and make
Jost distribution in accordance with the di-
rections and provisions of the last will and
testament in each case, of what shall remain
after all debts and expenses shall have been
allowed and deducted." This statute thus
confers upon the court a power and duty not
otherwise enjoyed, and is specific in its direc-
tions. A difference in the necessity of a de-
cree of distribution in cases of intestacy and
those of testacy may be suggested, in that
the former is necessary before a suit can be
maintained for a distributive share whereas
a legatee may sue for a legacy without such
decree; but that clrcnmstance tn no way
serves to enlarge or define the powers confer-
red by the section here under consideration.
Treated as a strictly statutory power of the
court, it seems clear that in the exercise of
that power, the court must confine the opera-
tion of the decree so made to the directions
of the will in accordance with which the de-
cree is directed to be made. To adjudicate
the rights of persons claiming under legatees
in a proceeding under the section here In
qupstion would in Its effect convert the pro-
ceeding into a suit for legacies in apparent
disregard of the procedure defined for suits
of that nnture In that court. See 3 Comp.
Stat p. 3883, { 192.
Tktubts suggested as to tlie constitutionali-
ty of the section are here passed over. Those
doubts are suggested in Adams v. Adams, 46
N. J. Eq. 298, at page 302, 19 Atl. 14; LIp-
pincott's Case, 68 N. J. Eq. 578, 59 Att. 884;
Polley's Case, 70 N. J. Eq. 669, at page 663,
62 Atl. 553.
I will advise an order affirming the decree
of the orphans' court
(90 N. J. lAW, 4U)
KELIiY V. BOARD OF CHOSEN FREE-
HOLDERS OF ESSEX COUNTI et aL
(Supreme Court of New Jersey. June 19, 1917.)
(Syllahut hg the Court.)
municipai, corpobations 4=3241— contbaci
—Rejection of Lowest Bio.
A municipality cannot lawfully reject the
bid of the lowest bidder, where the law requires
the awarding of a ccmtract to the lowest re-
sponsible bidder, upon the ground that he is not
responsible without giving him a hearing, and a
finding that he is not responsible, rested upon
proper facts.
[Ed. Note^— For other cases, see Municipal
Corporations, Cent Dig. { 6T3.J
Certiorari by James F. Kelly to review the
rejection of a bid by the Board of Chosen
Freeholders of the County of Essex and
others. Order to be entered setting aside res-
olution awarding the contract and contract
rested upon it
Argued June term, 1017, before SWAYZB,
BERGEN, and BLACK. JJ.
Ralph E. Lum, of Newark, for prosecutor.
Harold A. Miller, of Newark, for defendants.
BERGEN, J. The defendant the board of
chosen freeholders of the county of Essex,
advertised for bids for the plumbing and gas
fitting work necessary for a greenhouse and
a gardener's cottage connected witti a county
hospital.
The prosecutor was the lowest bidder by
$1, but the contract was awarded to the next
highest bidder, and it is to review this award
that the writ of certiorari was allowed in
this case. The difference in the bids is small,
but the principal involved is applicable to
all bids and cannot be evaded, because, in
this instance, the amount is small for the
conflrolling legal role must be applied in all
cases without regard to sum Involved. The
minutes of the meeting of the board at which
the bids were opened and considered show
that after the bids were opened the architect
reported that the bid of James F. Kelly was
the lowest, and that thereupon it was:
"Moved that on account of the unsatisfactory
work done in the past by this firm for the coun-
ty, that the bid be rejected. Seconded and car-
ried"
— and that then the contract was awarded
to the next highest bidder. The bestimony
taken in support of this action justifies the
Inference that a firm with whom the prosecu-
tor was at one time connected had not sat-
isfied the board with regard to work which
It had done for It, but so far as the testl-
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BOEHM y. BOBHM
423
moii7 goes It affords no groand for any in-
ference that prosecutor was responsible for
the ground of complaint; but assuming that
bis bid was rejected upon the ground that
the board did not consider him a res^nsl-
ble bidder, tbe action was taken without giv-
ing him a hearing or making a finding that
he was not a responsible bidder. The board
has no right to arbitrarily reject a bid on
that ground. The bidder has a right to be
heard and to a determination of the question,
which must have the support of proper facts,
in order that the rejected bidder may bare
an opportunity to review the action taken
and the sufficiency of the proof upon which
it is rested. In Faist v. Hoboken, 72 N. 3.
Law, 361, 60 Atl. 1120, this court said:
"If there be an allefcadon that a bidder is not
responsible, he has a right to be heard upon that
question, and there must he a distinct finding
against Mm, upon the proper facts to justify it.
And in Ilarrington ▼. Jersey City, 78 N.
J. Law, 610, 75 Atl. 943, Mr. Justice Swayze
said:
"If the prorisions had been that the contract
should be awarded to the lowest responsible bid-
der, it would have been necessary, before decid-
ing adversely to the prooecutorg on that ques-
tion, to give them a hearing."
This holding was approved by the Court of
Errors and Appeals on appeal of the same
case 78 N. J. Law, 614, 75 Atl. W3. The
law has thus been settled in this state that
before the lowest bid can be rejecOed, where
the statute requires that a contract shall be
awarded to the lowest responsible bidder,
upon the ground that such bidder 1&' not re-
spoasible, without giving him a hearing, and
a distinct finding against him that he is not
a responsible bidder upon facts which war-
rant such a conclusion. No such hearing was
afforded tbe prosecutor in this case, nor was
there any determination that he was not a
responsible bidder, based upon proper factts,
and therefore the resolution awarding the
contract and the contract made in pursuance
of the award will be set aside. The defend-
ant rcdles in justification of Its conduct on
McGovem v. Board of Works, 57 N. J. Law,
580, 31 Atl. 613, but that case involved an
entirely different statute requiring the
awarding of the contract to the lowest bid-
der giving satisfactory proof of his ability to
fnmlBh tbe materials and perform the work
properly, and to offer security for the faith-
ful performance of the contract, which is
quite different from the present act requiring
the award to be made to the lowest responsi-
ble bidder, a distinction pointed out by Mr.
Jostlce Garrison in speaking for the Court of
Errors and Appeals in the Harrington Case.
And in the McGovern Case Mr. Justice Llp-
pincott said that if the charter of the city of
Trenton provided thab contracts "should be
awarded to the lowest bidder, the action of
the governing board In this matter • • •
would be set aside as an unauthorized exer-
cise of power," and when we have added only
that tbe lowest bidder shall be responsible,
onr courts have held that the question of re-
sponsibility Is one of fact to be decided only
after the bidder has been heard. In addition to
this the rejected bidder was, in tbe case last
cited, accorded a hearing with tbe assistance
of counsel.
It Is to be regretted that the municipality
may be put to additional expense in read-
vertlslng and awarding another contract, but
we can find no way to avoid it. The re^wn-
sibillty for It rests with the public board
which disregarded a settted rale for law, by
action, which. If approved, would nullify the
statute and permit its willful avoidance by
the arbitrary action of municipal bodies, for
If permitted where tbe difference is $1, tbe
same principle would apply to a like unau-
thorized action If the difference was thou-
sands, and permit favoritism In tbe award-
ing of all contracts.
The prosecutor may enter an order setting
aside the resolution awarding the contract,
and the contract rested upon it.
(88 N. J. Eq. 74)
BOEHM V. BOEHM. (Na 42/486.)
(Court of Chancery of New Jersey. June 28,
1917.)
1. Httsbano and Wife «=4— Duty to Sup-
port.
The duty of a husband to support his wife
is not dependent upon contract, but flows from
the matrimonial status.
[Ed. Note.— For other cases, see Husband and
Wife, Cent Dig. gf », 10.]
2. Rttbband and Wife «=9279(1)— Dutt to
SuppoBT— Settijcmbnt— VALiDrrr.
Where the wife had been awarded separate
maintenance which she had been unable to col-
lect, and she made a settlement with the hus-
band for $700, which purported to be a release
of all accrued and future liability, hut which
the wife testified she did not unclergtand, and
there had accrued under the original decree an
amount due of $5,000, the payment of $750 must
be wholly disregarded, and was no bar tt the
wife's right to an allowance.
[Ed. Note. — For other cases, see Husband and
Wife, Cent Dig. H 1054, 1056, 1059.]
Bill by Kate Myers Boehm against E}ugene
Boebm. Decree for complainant.
Thompson & Smatbers, of Atlantic City,
for complainant. Garrison & Voorhees, of
Atlantic City, for defendant
I^BAHING, V. 0. Complainant's bill has
been filed pursuant to tbe provisions of the
twenty-sixth section of our divorce act (2
Comp. St 1910, p. 2038), and prays for an or-
der to compel complainant's husband to pro-
vide for her and her minor daughter suitable
support and maintenance.
Tbe defense which has been made by de-
fendant is based upon tbe claim that a decree
which was heretofore entered In this court
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424
101 ATLANTIO BEPORTEB
(N.J.
in a slmnar salt requiring defendant to pay
to complainant $10 per week for her support
has been satisfied and discharged by a set-
tlement made by the parties, in which settle-
ment defendant paid to complainant an
agreed gross amount In full satisfaction of
all past and future claims of complainant up-
on defendant for her support
The evidence discloses that on November
22, 1904, a decree of this court was entered
in behalf of complainant against defendant,
as complainant's husband, requiring defend-
ant to pay to complainant for her support
and maintenance $10 per week thereafter
until further order of the court. That decree
was made under and pursuant to the proyl-
slons of the section of the divorce act tben
in force, the provisions of which were sim-
ilar in terms to the section under which re-
lief Is now sought Great difficulty appears
to have been experienced by complainant In
the enforcement of that decree until May 25,
1007, when the settlement already referred to
was made. On that date complainant and de-
fendant executed a formal written agreement
by the terms of which they agreed to live
separate and apart during the remainder of
their lives, and complainant agreed to accept
$750 in full satisfaction of all claims past
and future upon her part against her hus-
band for support. The agreement was di-
rectly between the parties, without the in-
tervention of a trustee ; the money was paid
and the agreement signed and acknowledgetl
by both parties before an acknowledging offi-
cer and recorded, and the decree was then
discharged of record by complainant's then
solicitor.
Complainant now testifies that when slie
signed the agreement it was her understand-
ing that it was only in satisfaction of back
alimony then due under the decree, and that
she did not know that the agreement exempt-
ed defendant from the payment of future al-
imony or in any way conferred upon him the
right to live separate and apart from her.
Opposed to that testimony is the solicitor
who then represented complainant and who
took the acknowledgment. He has testified
that the full purport of the agreement was
explained to complainant by him when he
took her acknowledgment .and that she fully
understood it
It is difficult to determine at this time with
entire certainty whether complainant ade-
quately understood the terms and effect of
that agreement at the time she signed it
She Is a woman without education and with
an intensely dense perception. It is possible
that a careful and painstaking explanation to
her of the contents of the agreement and Its
purpose and effect could have adequately ap-
prised her of the exact nature and force of
her engagement; but it is reasonably clear
that less than that could not have accom-
plished that purpose. The settlement was
negotiated by the soUcitom, ftnd the written
agreement was prepared by them for tbeir
clients. Alimony to a considerable amount
was admittedly then overdue, and from com-
plalnant's viewpoint even more was overdue
than the amount that at tliis time appears to
have l)een then overdue, as complainant had
not received certain money which had been
paid by defendant to her former solicitor.
Great difficulty had been encountered by com-
plainant in the various efforts which tiad
been made to enforce payments under the
court decree, and complainant had appro-
priately become greatly discouraged in Iier
litigation. These discouragements Iiad led
her to employ a new solicitor to represent
her, and the attendant circumstances were
such as to render it entirely natural and rea-
sonable that complainant would have wholly
relied upon the advice of the solicitor then
representing her in signing the agreement
without real effort on her part to comprehend
the exact nature of the agreement further
than to ascertain that money was to be paid
to her. Her assumption that the money to be
paid to her was "back alimony" Is far from
unreasonable under all the circumstances un-
less great care was exercised at the time to
satisfy her to the contrary. The same may
be said with equal or greater force as to the
provisions of the agreement which were de-
signed to release defendant from future lia-
bility, including the provisions for the par-
ties to live apart Unless those provisions
were at that time explained to complainant
with more care than Is ordinarily observed
by an acknowledging officer. It is not reason-
able to assume that they were adequately
comprehended by complainant In their force
and effect The nature of the settlement and
complainant's limited mentality and the other
circumstances leading to and surrounding the
settlement peculiarly demanded that com-
plainant should receive not only accurate in-
formation touching the amount then due to
her for back alimony, but also sound counsel
fondling the effect of the instrument bn ber
future rights, and also that such information
should be Imparted to her In a manner salt-
able to ber limited powers of comprehension.
But, in the view which I entertain of the
present situation, I think it unnecessary to
here determine whether the written agree-
ment of May 25, 1907, was executed by com-
plainant without an adequate understanding
of its terms or effect, or whether, as claim-
ed t>y the solicitor of complainant, agree-
ments of that nature are so far contrary to
the policy of our laws as to render them void:
for I am unable to readi the conclusion that
the transaction is In any aspecb operative as
a bar to complainant's right to exact from
defendant support for herself and her daugh-
ter at this time.
[1] The duty of a husband to support his
wiXe Is not a duty dependent upon con-
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BOBHM V. BOEHM
426
tract ; tbat doty flows feom the matrimonial
status. The law casts upon the court of
cbanceigr the duty of enforcing that matri-
monial obligation of a husband in certain cir-
cumstances. The language of our statute un-
der which the present bill Is filed is that :
"In case a husband, without any justifieble
canae, shall abcmdon his wife or separate him-
self from her, and refuse or neglect to maintain
and provide for lier, it shall l>e lawful for the
Court of Chancery to decree and order such
suitable support and maintenance, to be paid
and provided by the said husband for the wife
and ner children, or any of them, by that mar-
riaee, or to be made out of his property, and for
sDch time as the nature of the case and cir-
cumstances of the parties render suitable and
proper in the opinion of the court, and to com-
pel the defendant to give reasonable security
for such maintenance and allowance, and from
time to time to malce such further orders touch-
ing the same as sball be just and equitable."
In the former suit brought by tills com-
plainant this court accordingly adjudged that
defendant had without Justifiable cause aban-
doned complainant and refused to support
her, and the decree then entered required de-
fendant to pay to her $10 per week until
farther order of the court for her support.
In that situation, and with payments under
the decree In default to a large amount, it
is claimed by defendant that complainant
voluntarily accepted $750 as a gross amount
in full discharge of all past and future obli-
gations of defendant for her support, and
thus absolved defendant from all future du-
ties of that nature. If a husband can thus
absolve himself from the duty of support
for all time, it is obvious that this court
is rendered powerless to perform the duty
imposed by the act above quoted, for that
act clearly contemplates the enforcement of
periodical payments for the support of the
wife, based upon her needs as they may from
time to time exist and upon the husband's
ability to pay, nnd that such payments shall
be modified In amount from time to time ac-
cording to drcumatances arising from chang-
ing conditions. The language of the act as
above quoted is essentially similar to that
of the preceding section for the recovery of
alimony In a suit for divorce, and that sec-
tion has been held to contemplate only period-
ical payments, and not to Justify an order
for payment of an amount in gross. Celame
▼. Calame, 25 N. J. Eq. 548 ; Lynde v. Lynde,
51 N. J. Eq. 473, 85 AU. 641. In the latter
case It Is said :
"Her right to support and maintenance con-
tinues so long as it ia Just that she shall re-
tain it It is coextensive with the husband's
position and ability. His ability and the jus-
tice of her enjoyment of her right are subject to
change of circumstances wliich the court cannot
anticipate, 'and hence complete justice requires
that the court's power to act shall be kept open
so long as it may be needed to direct just vari-
ation." Id., affirmed, 55 N. J. Eq. 591, 39 Atl.
1114.
It thus appears that, If a payment to a
wife of a sum In gross can be agreed niwn
by a husband and wife In final discharge of
a husband's future obligation of supportt
the parties are not otdy enabled to discharge
by stipulation the performance of an exist-
ing and permanent matrimonial duty of the
husband in a manner wiilch the court could
not authorize with the parties before It, but
in a manner that obviously defeats or tends
to defeat the primary purpose of the stat-
ute to protect the wife frcMn future want.
[2] But, while the right of spouses to con-
tract touching the discharge of this matri-
monial duty of the husband cannot be regard-
ed as unrestricted, I thlnli It unnecessary to
here determine that all such agreements are
▼old or should be wholly disregarded. A
settlement upon a wife of a fixed and cer-
tain income for her life would accomidlsh
the purposes of the act in so far as the In-
come should be found adequate, and the pay-
ment of a gross amount might In some dr-
cumstances be treated as relieving a hus-
band from his obligation of support to what-
ever extent should lie found Just under the
circumstances. But where, as here at this
time, the wife comes l>efore the court in a
destitute condition, and the husband claims
as a bar to his liability a settlement for
$760 of a decree under which there would at
this time have been paid o\ee $5,000 bad the
decree been complied with, I think It clear
that the payment so made by him by way of
settlement of future liability must be wholly
disregarded. Aside from any question of
public policy which may be Involved, the
money which was paid in settlement of fu-
ture liabllty was In amount ohviously too
unreasonable and unjust to afford a bar at
this time in a case of this nature.
Nor am I able to give any force to the
proTlsions of the settlemmt agreement pro-
viding that defendant may live separate and
apart from his wife. At the time that agree-
ment was signed he was a deserter of his
wife, and so adjudged by the court decree
then existing. His continued absence from
her has not been In the slightest degree oc-
casioned or Influenced by any consent upon
his wife's part to that effect No proffer
on his part has l>een made at the hearing or
at any other time to live with his wife or to
support her at his home or elsewhere. His
sole defense Is that the settlement agreement
has absolved lilm from the duty of support
Complalnant^s long delay since the settle-
ment in seeking the aid of this court has In
no way arisen from any understanding on
her part that she had by any agreem^it
Or settlement discharged her husband from
liability for future alimony or bad in any
way agreed that he should be privileged to
live separate trom her. At all times since
the $750 was paid her conduct has been
consistent with her belief that the payment
which was made was of hack alimony. Since
that time she has been persistently going
from attorney to attorney without success
seeking one who would enforce her claim.
Finally an appeal to the dianoellor secured
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426
101 ATLANTIO BEPORTBB
{S.J.
for her a BoUdtor, and this suit Is the re-
sult.
The former suit and decree was for com-
plainant's support, and did not include the
support of complainant's daughter. The set-
tlement agreement did not by its terms exon-
erate defendant from liability for the support
of the daughter. This suit seeks a decree
compelling defendant to contribute to the sup-
port of both complainant and their daughter,
who resides with complainant. The evidence
discloses that defendant's pecuniary resourc-
es are at the present time considerably less
than when the former decree was entered.
He is, however, in my Judgment, well able
to pay $5 per week. That amount Is an ap-
propriate amount for him to pay for the
support of the daughter alone, but I do
not feel justified In ordering payment of
more than that amount In view of defendant's
present pecuniary condition.
1 win accordingly advise a decree requir-
ing defendant to pay $5 per week for the
support of complainant and his daughter,
and also an aggregate counsel fee for com-
plainant's counsel of $50.
RICCIO T. RICX3I0. (No. 40/750.)
(Covrt of Chancery of New Jersey. June 29,
1017.)
Pabtitior €=»12a)— Tenancy bt Entibett
—Sale.
If a sale of premises held by husband and
wife as tenants by the entirety be decreed in a
suit for partition, it must not be an absolute
sale, but must be limited to the right of posses-
sion during the joint lives of both parties, that
the rixht of survivorshin may not be affected in
any way.
[Ed. Note.— For other cases, see Partition,
Cent. DiK. ( 39.)
Actlcm between Josle Rlcdo and Gaetano
Ricdo. Decree for complainant
Eugene Dotto and Philip J. Schotland, both
of Newark, for complainant Rlker & Rlker
and Richard Hartshorne, all of Newark, for
defendant
FOSTER, V. C, This Is an action for the
partition by absolute sale of certain real
estate in the city of Newark owned by the
parties who are husband and wife. On the
hearing It was established that the parties
were married on October 27, 1808, that they
have three children, and that as a result of
quarrels they separated about May 1, 1916.
Complainant before her marriage worked
as a button hole maker, and continued to do
some of this work after her marriage, from
time to time, and claims to have paid pert of
the purchase money of the property from her
work. Defendant is a tailor and claims to
have paid all of the purchase price, over the
amount of the money borrowed on mortgage,
from his savings. About May 20, 1902, the
parties purdiased the premises in question
for $2,500. Of this sum $2,200 was obtained
on mortgage from a building and loan associ-
ation, and complainant claims that she and
defendant each contributed $200 to make up
the balance of the purchase money and
to pay for searches and other expenses con-
nected with the passing of title. Defendant
denies that complainant contributed any
money for these purposes and claims that he
furnished all the money required to complete
the purchase above the amount obtained on
the mortgage and to carry the property. The
deed for the property conveys it to the par-
ties as "Gaetano Rlcdo and Josle Rlcdo, his
wife."
Complainant dalms that a mistake was
made In the deed In thus designating herself
and her husband, the defendant, as tenants
by the entirety, and that It violated the
agreement she bad made with her husband
regarding the form In which they should
take title, which was, that they each should
oontrlbute one-half of the purchase price and
an equal share for the maintenance of the
property, and that they should be equal part-
ners in the ownership of the property, and
that they were to be tenants In common In
the ownership of the property. Defendant
denies this and claims there was a mistake
made In the form of the deed ; that when he
purchased the property he was unfamiliar
with real estate transactions; that in ex-
amining the deed under whidi his grantors
held, he noticed It was made to "Justus
Schneider and Philliplna Sdinelder, his
wife," and he directed or consented to hav-
ing his deed made out In the same way, as-
suming that was the legal way it should be
done; that he has paid the purchase price
for the property and the expenses of its main-
tenance ; and that he Intended that the only
interest complainant, as his wife, should have
In the property was such as the laws of the
state gave her.
The impression made upon me at the hear-
ing was that the claim of a mistake In the
deed was an afterthought on the part of both
parties which had arisen because of the seri-
ous dlflerences between them. These dif-
ferences it seems cannot be recondled, as
complainant claims defendant assaulted and
stabbed her, and defendant claims complain-
ant since her separation from him has been
living in adultery with another Italian.
Counsel for complainant apparently take
somewhat the same views of the facts that
I have because they contend that if It Is
not established that a mistake was made In
the deed as claimed, and If It be found that
the parties are tenants by the entirety, never-
theless there should and can be a partition of
the property under the facts and on the au-
thority of Schulz V. Ziegler, 80 N. 3. Bn. 199,
83 AU. 9CS, 42 L. R. A. (N. S.) 98.
My consideration of the oplnlcm of Vice
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STATE ▼. NONES
427
Chancellor (now Chancellor) Walker in this
case and of the opinion of Mr. Justice Parker
In speaking for the Coort of Errors and Ap-
peals In affirming the Vice Chancellor's de-
termination shows that it does not entirely
sustain complainant's contention or sanction
the relief to the extent asked for in her bill.
Justice Parker, speaking for the court, said:
"We bold, therefore, that by virtue of an es-
tate by entireties, as modified by the married
woman's act, the seisin of husband and wife
durinx the joint lives is essentially a tenancy in
common, terminated on the death of either, with
remainder in fee to the survivor; and that the
right of the husband may be transferred by bim
to a third party who thereby becomes tenant in
common for the joint lives in the husband's
place; and that partition may be bad between
such purchaser and the wife of this tenancy in
common, but without affecting in any way the
common-law right of survivorship."
It will be observed from this statement
of the law, that if a sale of the premises be
decreed it must not be an absolute sale, but
must be limited to the right ctf possession
during the joint lives of complainant and de-
fendant, in order that the right of survivor-
ship may not be affected in any way.
The prayer of the bill in asking for an ab-
solute sale of the premises and the payment
to complainant of one-half of the amount
realized therefrom over the amount of the
present incumbrances thereon, as her share
of the property is too broad, but a sale of the
right of possession during the Joint lives of
the parties will be advised, and an accounting
may be token of the Income received from
and the expenses incurred in carrying the
property. Counsel will be heard if desired
on the period to be covered in the accounting.
cm N. J. Law. W)
BOROUGH OF HADDON HEIGHTS v.
HUNT.
(Supreme Court of New Jersey. April 25,
1917.)
LiCENSKS «=s>7(l) — Peddlinq — Occtn>ATioi»
Tax— PoLicB Poweb.
An ordinance making it unlawful for one
to peddle in a certain borough without a li-
cense anything except products of ids own
raising or articles of his own manufacture, but
exempting all persons having a regular place
of bnatneas or residence witliin the borough and
paying taxes therein, unless they are SGliing
goods of persons not residents and taxpayers
in the borough, is invalid; the ground of ex-
emption being arbitrary.
[Ed. Note.— For other cases, soe Ucenses,
Cent. Dig. H 7, 19.]
Samuel P. Hunt was convicted, and brings
certiorarL Conviction set aside, with costs.
The following Is the ordinance in question:
Section 1. It shall be unlawful for any per-
son to hawk or peddle or exiwse for sale housse
to bouse in the borough of Haddon Heights any
goods, wares or mercliandiso of any description,
excepting products of his or her own roising,
or articles of his or her own manufacture, or
to drive, push or pull any peddler's cart or wag-
on within said borough for that purpose with-
out a license for that purpose first had and
obtained. All persons who shall go from house
to house and sell on orders or by sample any
goods, wares or merchandise to be afterwards
delivered, shall be considered as hawkers and
peddlers within the meaning of this ordinance,
and shall be subject to the conditions and pen-
alties herein provided: Provided, liowcver, that
no person or persons having a regular place of
business or residence within the limits of the
said borough of Haddon Heights, and paying
taxes thereon, shall be subject to any of the
said conditions or penalties, unless be, she or
they are selling the goods of persons who are
not residents and taxpayers of said borough.
Argued before GARRISON, J., sitting aUwe
pursuant to the statute.
Cyrus D. Marter, of Camden, for prosecu-
tor. Jess & Rogers, of Camden, for defend-
ant
GARRISON, J. The ordinance U inflrm,
whether the occupation tax be a police or a
revenue measure, for the reason that there is
no rational connection between the occupa-
tion that is taxed and the conditions that
exempt from such tax.
Residence in the borough is admittedly not
enough, and having a regular place of busi-
ness is on the same footing, in the absence of
a requirement that the business conduct at
such place shall bear some relation to the
wares so peddled.
To exempt a peddler of produce because
he had a music store or a photograph gallery
would be arbitrary in the extreme. Wheth-
er or not such suggested requirement would
meet this defect is not up for decision.
The payment of real estate taxes on a resi-
dence or place of business affords no basis
for exemption from an occupation tax; the
two imposts are entirely nnrelated. A non-
resident might own and pay taxes on all the
real estate In the borough and still be re-
quired to pay this occupation tax.
The grounds of exemption being thus arbi-
trary and illusory, the ordinance falls to
support the conviction, which la set aside,
with costs.
(N N. J. Law, 341)
8TATD T. NONES. (No. 8.)
(Court of Errors and Appeals of New Jersey.
March 5, 1017.)
Error to Supreme Court.
Charles A. Nones was ccmvicted of crime, and
brings error to the Supnnne Court to review a
judgment aflSrming bis conviction. Affirmed.
For opinion of the Supreme Court, see 88 N.
J. Law, 460, 97 AU. 66.
Borden D. Whiting, of Newark, for plaintiff
in error. Jacob li. Newman, of Newaric, for
the State.
PER CURIAM. The judgment under review
herein should be affirmed, for the reasons ex-
pressed in the opinion delivered by Justice
Swayze in the Supreme Court, 88 N. J. Law,
460. 97 AU. 66.
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428
101 ATLANTIC RBPORTEB
(B.I.
(40 R. I. 477)
STONE T. NORMS. (No. 888.)
(Supreme Court of Rhode Island. July B.
1917.)
1. Taxation €=3329 — Asse8Smeitt — Suffi-
CIENCr.
Gen. Laws 1909, c. 58, i 6, requiring taxpay-
ers to describe their persoDalty, etc., is direc-
tory merely, since, if such accounts ar« not
filed, the assessors may fix its value.
[Ed. Note.— For other cases, see Taxation,
Cent Dig. §{ 640, 650.]
2. E3:.ECTioNB <S=s>S3 — QuAuncATiONS or
VoTEKa— Payment of Taxes.
Under Const, art. 2, { 2, providing that only
persons who have paid a tax assessed against
their property can vote for city councilmen, etc.,
persons paying personal property taxes are qual-
ified electors, although the assessments did not
describe their personalty, since Gen. Laws 1909,
c 58, does not require the assessors to describe
personalty upon the taxpayer's failare to do so.
[Ed. Note.— For other cases, see Electionai
Cent Dig. H 77-81.]
Petition In equity in tibe nature of quo waiv
ranto, under Gen. Laws 1909, c. 328, by
Charles H. Stone against Walter W. Norrta.
Petition denied and dismissed.
Edward M. Sullivan, Francis B. SuUivan,
and John J. Sullivan, all of Providence, for
petitioner. Frank H. Wildes, of Provideace,
fk>r respondent.
BAKER, J. Charles H. Stone, of the dty
of Cranston, in this state, by this his peti-
tion in equity in the nature of quo warranto,
filed under the provisions of chapter 328 of
the General Laws, brings in question the title
of the respondent, Walter W. Norris, to the
office of third councilman ot the Fourth ward
of said city for the term ot two years, com-
mencing the first Monday in January, 1917.
The petition alleges that said respondent and
himself were opposing candidates for the
office of third councilman from said fourth
ward at the election held November 7, 1916;
that on the following day the city council of
said dty in accordance with law counted the
ballots cast in said election for said office,
and declared the result of such election to be
that the respondent had been elected over
the petitioner by a plurality of 114 votes;
that thereafter the aald Walter W. Norris on
the first Monday of January, 1917, was duly
sworn and engaged as Incumbent of said
oflice of councilman, and now holds the same.
The petition further alleges that the names
of a number of persons participating in said
election, not qualified so to do and sufficient
to determine the result of said election, "were
placed upon the tax rolls of said city by
the assessors of taxes of said city without
any description of the several properties of
said persons respectively possessed or claim-
ed to be possessed" by them. By the bill of
particulars subsequently furnished by the pe-
titioner the names of 124 persons assessed as
aforesaid are given as participating in the
election of third councilman for said Fourth
ward on November 7th last The petition
also alleges that:
"Said pretended aasessment is in violation
of section 2 of article 2 of the Constitution of
the state of Rhode Island"
— which provides that:
"No person shall at any time be allowed to
vote in the election of the city conncil of any
dty, or upon any proposition to impose a tax
or for the expenditure of money in any town or
dty, unless he shall within the year next pre-
ceding have paid a tax assessed upon his prop-
erty therein, valued at least at one hundred and
tUrty-fonr doUara."
It appears by evidence or admissions that
these 124 persons were assessed in 1916 by
the tax assessors of Cranston for either "per-
sonal estate" or "personal property" in vary-
hig amounts from $196 to $6,000, the moat of
them for tangible personal property only, a
few for intangible personal property only,
and one for both kinds, and that all of them
duly paid the taxes assessed against them.
The petitioner's claim is that the words "tax
assessed," in section 2 of article 2 of the state
Constitution, means a tax legally assessed,
and that as the tax rolls of Cranston "did
not contain any description, or even mention,
of the personal property for the payment of
a tax upon which any such person claimed
the right to vote," the assessment as to all
of them was illegal, and as a consequence
they were not legally entitled to vote ; that
as the number of such voters exceed the plu-
rality declared to have been received by the
respondent, and inasmuch as it Is not xrassible
to determine and prove who'Vas chosen coun-
dlman by tlie admittedly legally qualified
voters at said election, he prays this court to
declare said election to be null and void and
to order a new election for said office of third
councilman. The respondent has moved the
dismissal of the iwtitlon on various grounds
which we do not deem It necessary to now
set out.
The petitioner does not question in any
way the acts of the board of canvassers, or
of the acts of the tax assessors other than
the one already stated, or the quallflcationa
of the 124 as voters, except as they may be
affected by the alleged illegality of the assess-
ment. There are, therefore, but two ques-
tions to be oonsideied: First, were the as-
sessments Illegal for lack of description of
the personal property? and, If Ulegal, were
these 124 persons, after having severally paid
a tax assessed upon their property in Cran-
ston, valued in the assessment in access of
$134 in each instance, disqualified as voters
at such election?
If we consider the second qnesticm first, as-
suming for the time being that the assess-
ments were Illegal, it is by no means dear
that these persons were disqualified as vot-
ers. The requirement of property ownership
as a qualification for voting, cmce so common,
has been almost entirely abandoned. If there
be precedents on the point, they must be
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STONE T. NORMS
429
Bonght In tbe early decisions, and we find
some authority on this question. Article 3
of the Amendments to the Constitution of
Massachusetts provided that:
"Every male citizen of twenty-one years of
age and upwards (excepting paupers and persons
onder guardianship) who shall have resided with-
io the commonwealth one year • • • and
who shall have paid * * • any state or coun-
ty tax, which shall, within two years next pre-
ceding such election" (for general state offices)
"hare been assessed upon him, in any town or
district of this commonwealth, • • • shall
have a right to vote in such election; • • •
and no other person shall be entitled to vote in
such election.
The House of Bepresentatlves submitted a
question to the Supreme Judicial (3oart as to
the right to vote under said article 3 of a
person upon whom a poll tax bad been assess-
ed "after the annual assessment of taxes."
The opinion of the court in reply appears in
18 Pick. (Mass.) 57S. On page 578 the oonrt
said:
"We beg leave liot to be understood as intend-
ing to suggest that to qualify one to vote, within
the provisions of the Constitution, it must ap-
pear that the tax which he has paid is in all
Inspects a legal tax, or that it is competent to
go behind the actual payment of a tax, to in-
qaire whether there has or has not been any
irregularity or illegality in the levying or as-
sessment of the taxes. This is a point which
the person claiming the right to vote is not
bound to inquire into, and in most cases cannot
know. It is sufficient that he has paid a tax de
facto levied and assessed upon him.'
Later In Humphrey v. Kingman, 5 Mete.
<Mass.) 162, 166, where the qvallficatlon of a
voter was In question, the court said:
"It is not the mere payment of money that
^loalifies a man to become a voter, but the money
paid must be for the discharge of a tax actually
assessed upon him, whether legally or illegally."
[1,2] But were the assessments against
these 124 persons Illegal because the personal
property was not described? The petitioner
has dted authorities and decisions In other
Jurisdictions holding that such an assessment
Is Invalid. But the statutes of different
states differ mudi in their requirements in
respect to the levy and assessment of taxes,
and It Is only where such statutes are sub-
stantially like our own that decisions In oth-
er Jurisdictions have persuasiveness as au-
thorities. The requirements of our own stat-
utes, as applied to the admitted facts, are to
determine the legality or illegality of these
assessments. Chapter 58 of the General
Laws prescribes the method of assessing
taxes. Section 4 imposes the duty upon the
assessors of assessing and apportioning "any
tax on the Inhabitants of the town and the
ratable property therein" as ordered by the
town. Section 6 relates to the giving of no-
tice of the time and place of making the
assessment, providing that:
Such notice "shall require every person and
body corporate liable to taxation to bring in to
the assessors a true and exact account of all
his ratable estate, describing and specifying the
value of every parcel of his real and personal
-estate, at ancta times as they may prescribe."
Section 7 Is as follows:
"ISvcry person bringing in any such account
shall make oath before some one of the assessors
that the account by him exhibited contains to the
best of his knowledge and belief a true and full
account and valuation of all his ratable estate;
and whoever neglects or refuses to bring in such
account, if overtaxed, shall have no remedy
therefor."
Section 8, as amended by section 43 of
chapter 769 of the Public Laws of 1912 Is as
follows:
"The assessors shall make a list containing the
true, full and fair cash value of all the ratable
estate in the town, placing land, buildings and
other improvements, tangible personal property,
and intangible personal property, in separate
polumns, auO distinguishing those who give in an
account from those who do not, and shall appor-
tion the tax accordingly."
Section 4 of chapter 57 of the O^ieral Laws
provides that:
"Taxes on real estate shall be assessed to the
owners, and separate tracts or parcels shall be
separately described and valued as far as prac-
ticable."
Chapter 57 has numerous provisions as to
the place in which and the persons to whom
personal property of different kinds shall be
taxed, but there is no statutory provision
slmUar to the one relating to real estate re-
quiring a separate description and valuation
of personal property.
It Is true that as to certain corporations,
which under the statutes are exempt from
taxation for personal property, except cer-
tain kinds thereof as named In the statute,
this court, from the necessities of the case.
In order to avoid double taxation, has held
that the assessment roll should show that
such corporation had been assessed <»ily for
such kind of personal property as It was
taxable for under the statute. Dunnell Mfg.
Co. V. Newell, 16 B. I. 233, 2 Atl. 766; Rum-
ford Chemical Works v. Bay, 19 R. I. 302,
33 AtL 443; Newport Beading Boom and
Hlgbee, Petitioners, 21 R. I. 440, 44 AU. 511.
Such cases are special In character and ap-
plication. The provision of our statute re-
quiring "every person and body corporate
Uable to taxation to bring In a true and
exact account of his ratable estate, describ-
ing and specifying the value of every parcel
of his real and personal estate," is merely
directory, as when there is default In bring-
ing in sucii account the assessors are clothed
with no authority to summon in such delin-
quents and compel disclosure, as Is the case
in some states. In such case it Is the right
and duty of the assessors to proceed to as-
certain the nature and extent of such per-
sons' taxable property from the sources of
information at their command and to place
a valuation upon It according to their best
Judgment. 37 Cyc. 995. The? have the means
of obtaining definite Information as to the
ownership of real estate by examining the
land records, and of ascertaining Its ap-
proximate value In the market, and according-
ly the requirements of section 4, chapter 57,
supra, as to separate descriptions and ralua-
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101 ATLANTIC RBPORTBE
<H,I.
tlons of separate tracto or parcels of real es-
tate are practicable and reasonable. But It
Is a practical Impossibility for assessors to
correctly ascertain the extent, character, and
particulars of an individuars ownership of
personal property when he brings in no ac-
count thereof; and to require them to par-
ticularly describe sndi personal estate In
the assessment roll, without first clothing
them with power to ascertain of what It con-
sists, would be unreasonable and futile. Our
statute does not require it. Chapter 58 of-
fers the inducement to bring in a sworn ac-
count of taxable property by providing for
such persons as do bo a remedy for over-
taxation. At the same time it provides as
a penalty or disadvantage for the one re-
fusing or neglecting to bring in an account in
that he is without remedy if overtaxed.
Coventry Co. v. Assessors of Taxes, 16 R. I.
240, 14 Atl. 877; Tripp v. Torrey, 17 R. I.
S59, 22 Atl. 278. There is remedy for such
person for illegal taxation only, as when he
has no ratable or taxable estate. Hall v.
Bain, 18 R. I. 413, 28 Aa 371, is a case of il-
legal taxation, although in that case the
plaintifF had brought in an account. See, also,
!Newport Reading Room and Hlgbee, supra.
In the case of a person having taxable per-
sonal estate and rendering no account to the
assessors, it could be of no possible advantage
to him to specify and describe on the assess-
ment roll the property on which he is asses*-
ed, as he is without remedy in any event
The law as to assessment of taxes in Massa-
chusetts in its main features is similar to
oar own, although it requires specification on
the assessment roll of certain kinds of per-
sonal estate. In Noyee v. Hale, 137 Mass.
266, on page 270, the court said:
"If a. person who is liable to be taxed in a
town for personal property does not bring in
a list of such property to the aasessors, as
provided by law, it is their duty to ascertain,
as nearly as possible, the particulars thereof, and
to 'make an estimate thereof at its just value,
according to their best information and belief.
Qen. Sts. c. 11, J 27; Pub. Sta. c. 11, S 41. If
t^ey are unable to ascertain the particular kinds
or Items of such taxable personal property, an
estimate of it may be made as 'personal proper-
ty,' without any enumeration of particulars.
This practice, we believe, prevails widely ; and
Indeed it appears to be necessary, in view of the
manner in which much taxable personal property
is now commonly held, of the ease and frequency
with which it is transferred, and of the practical
impossibiiity of ascertaining correctly the partic-
ulars of an individual's investments and proper-
ty without as well as within the state on any
given day. Such appears to have l>een the meth-
od which was sanctioned in Bates v. Boston, S
Gush. 93, and a similar method in respect to
real estate was approved in Tobey v. Wareham,
2 Allen, 594. The requirement of Pub. St c.
11, § 43, that the assessors shall specify the
amount of each of several classes of taxable
personal property, namely, money at interest
and other debts due, money on band including
deposits, public stocks, and securities, and stocks
In corporations without the state, did not ex-
ist until 1879. It was adopted chiefly for statis-
tical purposes; it of coarse extends only to so
moch of the enumerated classes as the assessors
may be able to ascertain : it does not include all
taxable kinds of personal property; and a com-
pliance with it is not essential to the validity of
a tax. See Sprague v. Bailey, 19 Pick. 436,
441; Lincoln v. Worcester, 8 Cush. 55, 63.
The existence of that requirement by no means
precludes assessors from assessing a tax upon
'personal property,' when they are unable to as-
certain the items of whidi such personal proper-
ty is composed."
See, also, Lamson Consolidated, etc, Co.
V. Boston, 170 Mass. 354, 49 N. E. 630.
We are of the opinion, therefore, that the
taxes assessed against the 124 persons named
were not illegally assessed l>ecause the per-
sonal property, tangible or Intangible, for
which they respectively were assessed, was
not described on the assessment roll.
One of the grounds of the motion to dis-
miss Is that the petition should have been
brought In the name of the Attorney General,
as the petitioner Is not a claimant of the
office of councilman, and in his brief the
defendant cites Ney v. Whitley, 26 R. I. 464,
59 Atl. 400, on that point Without decid-
ing the point we have thought it proper to
consider the questions presented by the pe-
tition and to express our opinion thereon, as
from its allegations It seems apparent that
the same question could be raised as to sever-
al other persons in Cranston declared to have
been elected to other offices in that dty In
the election held November 7th last.
The petition is denied and dismissed.
(40 B. I. 619)
RHODE ISLAND HOSPITAL TRUST CO.
et al. V. PECK et aL (No. 389.)
(Supreme Court of Rhode Islaod. July 6,
1917.)
1. PKBPEnrmss *=»4(21>-;Tbuht»— VAunrrr.
Under a trust, a provision for the payment
of fixed sums eacli year for an indefinite period
to such persons as shall from time to time an-
swer a certain description violates the rule
against perpetuities.
[EM. Note.— For other cases, see Perpetuities,
Cent. Dig. { 42.]
2. PKBFETnrriEs «=>4(17)— TBueiB— AnnuaXi
Pathents — Validitt.
A trust to pay a certain sum from the in-
come and corpus at a stipulated rate per year
until exhaustion of the corpus and during the
lifetime of the trustor's wife, or that after the
wife's death the residue of payments not due and
payable to her should be paid to the same per-
sons who would inherit real estate had testator
then died intestate, was valid as to all proTiai4MM
for the wife.
[Ed. Note.— For other casoB, see Perpetuitiea,
Cent. Dig. { 34.]
3. Pebpbtuitiks «=»4(21)— Tbubts— Ahhoai.
Pa TMENTs— Validity.
The provisions for disposition of the estate
after the wife's death were void, since the en-
tire class might not be ascertains bio within the
period allowed by the rule against perpetuities.
[Ed. Note.— For other cases, see Perpetuities,
Cent. Dig. i 42.]
4. Tbosts ®=>275— Income— Disposition.
Where testator created a trust in favor of
his wife and his heirs, providing for payment
4S>For other OBes sea lame topic ud KEY-NUMBER In all Key-Numbered Digests and Indtass
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RHODE IBZiATSm HOSPITAL TKUST 00. r. PEOK
431
of a stipnlated tram annually from the income
or the corpus as required, and the income was
sufficient to provide a surplus over the stipulat-
ed payment, the income should bo permitted to
accrue to provide for the possibility that the
income might eventually become insufficient to
pay the stipulated sums.
[EM. Note.— For other cases, see Trusts, Cent
Dig. I 393.]
Certified from Superior Court, ProTidence
and Bristol Counties.
Suit by the Rhode Island Hospital Trust
Company and another, against Louise Ia
Peclc and others. Case certified on questions.
Questions answered.
Argrued More PARKBDRST, G. J., and
SWEETLAND, VINCBNT, BAEBOt, and
STEARNS, JJ.
Gardner, Plrce & Thomley and James O.
Collins, all of Providence, for complainants.
William R. Tillinghast, Everltte S. Chaffee,
and Frederick A. Jones, all of Providence,
for respondents.
STEARNS. J. This is a suit In equity
praying for the construction of the will of
Walter A. Peck, who died in 1901, brought by
Rhode Island Hospital Trust Company and
Union Trust Company, trustees severally
named in said will, against Louise L. Peck,
widow of said Walter A. Peck and executrix
of the win, the three children and ten grand-
children of said Walter A. Peck, who are the
only descendants of said testator. The
cause, b^ng ready for final hearing, was cer-
tified to this court in accordance with chap-
ter 289, S 35, Gen. Laws of R. L
By his will the testator gave to each of the
complainants the sum of |200,000 to be held
in trust upon identical trusts. T^e only di-
rections given to the trustees In regard to the
distribution of the income arising from the
trust estates, the termination of the trusts,
on the final disposition of the corpus of the
trust estates are as follows:
"The trustee for the time being shall from
time to time as often as once in each six months
daring the continuance of this trust pay out
ft«m the then trust funds and property (in-
chidiog accamulations of income aa well as the
then corpus of the estate) at the rate of seven
thousand dollars ($7,000) per year until the prin-
cipal or corpus of said trust estate and property
as well as all accumulations of income have been
ezbaosted.
"During the lifetime of my wife if she survives
me, she is to receive the same fractional share
of each of said payments as wonld be payable
to her upon an equal division of said payments
between herself uid my diildren living or rep-
resented by living issue at the time of such pay-
ments respectively. For example, if my family
consists of its present members, one-fourth (%)
to her, but if at my death or at any time during
the term of her life either of my childrpn sImhiIH
die leaving no issue surviving or the issue of
any deceased child should all die, the fractional
share of my wife is to be increased, from and
after such occurrence to make her puyments
equal to that of each of my children then living.
And if my wife survives me,_and at my death
or at any time during her life neither of my
children nor any issue of theirs is surviving,
tlie whole of said payments shall be made to
her as they respectively become due and payable
during tho term of her life.
"At all times during the continuance of these
trusts the child, children or descendants living
at the time, of any child of mine that has pre-
viously deceased are to receive (per stirpes) the
share of income that would have been payable
to such child of mine under this will if such
child was then living, and I expressly include
in all the provisions of this will any child or
children of mine hereafter born whether in my
lifetime or not as well as my children now liv-
ing. From and after my decease if I survive
my wife, the whole of said payments as they
become payable shall be paid to the same per-
sons that would inherit real estate from me un-
der the present laws of the state of Rhode Island
had I then died intestate and in the same pro-
portions that they would inherit such real es-
tate from me.
"And from and after the decease of my wife
If she survives me, the residue of said pay-
ments not due and payable to her as aforesaid
shall be paid to the same persons that would in-
herit real estate from me under the present
laws of the state of Rhode Island had I then
died intestate, and in the same proportions that
they would inherit such real estate from me."
The trustees have paid out of each trust
estate the sum of |7,000 each year, one-
fourth thereof to Louise L. Peck, the widow,
and one-fourth thereof to each of the testa-
tor's children. Such annual payments have
not exhausted the income received by the
complainants, respectively, from the trust
funds, and each of the complainants now
holds a considerable stun of money repre-
senting accumulations of income which are
not at the present time required to make the
annual payments.
The questions submitted may be stated as
follows: I. What disposition shall be made
of the accumulated income now in the hands
of the complainant trustees? II. What dls'
position shall be made of the further income
and the corpus of the estate: (A) During
the lifetime of Louise L. Pteck? (B) After
the death of said Louise L. Peck? The an-
swers to these questions are dependent upon
the intention of the testator as expressed in
bis will except so far as his intention so ex-
pressed may be found to be contrary to the
rule against perpetuities. The method to be
followed In the application of this rule Is
stated as follows In Gray In section 629 (3d
Ed.):
"The Rule against Perpetuities: The rule
against perpetuities is not a rule of construc-
tion, but a peremptory command of law. It
ia not, liko a rule of construction, a test, more
or less artificial, to determine intention. Its
object is to defeat intention. Therefore every
provision in a will or settlement Is to he con-
strued as if tho rule did not exist, and then
to the provision so construed the rule is to be
remorselessly applied."
[1] What was the testator's intention as
expressed In his will? The trust provision
is unusuaL The trustee Is directed to "pay
out from the then trust funds and property
(including accumulations of income as well
as the then corpus of the estate) at the rate
of seven thousand dollars ($7,000) per year
until the principal or corpus of said tinist
estate and property as well as all accumula-
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101 ATLANTIC REPORTER
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liona of Income kave been exhausted." Tbls
lis the only Indication In the will of any at-
tempt to fix definitely the termination of the
trust. There is no direction for the payment
or transfer of the corpus of the estate as
distinguished from the Income.
The intention of the testator that the trust
should continue during the life of bis wife Is
dear; that It should not terminate at the
time of her death or at bis death. If he
should survive his wife — is also apparent
from the clauses supra. If he survives bid
wife, the gift Is of "the whole of said pay-
ments," and if his wife survives him, the gift
after her death is of "the residue of said
payments not due and payable to her." But
In the clause providing for his surviving his
wife these "payments" are furtlier deliued by
the addltl<Hi, "as they become payable." In
each case the gift over Is "to the same per-
sons that would Inherit real estate from me
under the present laws of the state of Bhode
Island had I then died Intestate"
It seems to be dear that the testator in-
tended that the payments of $7,000 per year
from each trust should continue after the
death of the survivor of himself and his
wife, and that they should be made to those
persons who would be entitled to Inherit real
estate from him at the several times when
the payments are made. The Intent at this
time is not to make an absolute gift of the
principal or the Income, but only of the pay-
ments as they become payable to persons who
answer the description given at the time of
each payment. The law is well settled that a
provision, as in this case, for the payments
of fixed sums each year for an indefinite
period to such persons as shall from time
to time answer a certain description is in
violation of the rale against perpetuities.
Williams V. Herrlck, 19 R. I. 107, 32 Atl. 913.
The effect on prior limitations of an Attempt
to create Interests which are too remote Is
stated by Gray, dted above, in section 247 as
follows:
"If futnre Interests created by any instm-
ment are avoided by the nilo against perpetui-
ties, the prior interests become what they would
have been had the limitation of the future es-
tates been omitted from the instrument"
See, also, Ooffe v. Goffe, 87 B. L 642, 94
Att. 2, Ann. Ces. 1916B, 240.
[2] At what time then do the Interests in
these trust payments become too remote? It
Is clear that the testator's Intentiim that the
payments should continue during the life of
the wife can be carried out, and that the
trust up to the time of the decease of the
wife is valid. We also are of the opinion
that the diildren during the life of their
mother are entitled to share equally In the
payments, and, In the event of the death of
any child In the lifetime of the mother, the
children or descendants of such deceased
child win take the share of the payments
that would have been payable to the parent ;
If any of the testator's children should die.
leaving no issue surviving, In this period, to
wit, during the life of the wife, the payments
to the wife and surviving children would be
Increased and divided equally as provided for
In the wUI ; and in the event of the death of
all of testator's children without issue sur-
viving, during the life of the wife, the wife
would then take the total of all the pay-
ments.
[3] Coming now to the time of the death
of the wife, said Louise L. Peck, we find a
gift of the residue of said payments as they
jbecome due for the benefit of a dass com-
posed of the persons who answer the descrip-
tion of his heirs at law, which Is to continue
indefinitely as long as any of his diildren or
their descendants are living. There Is no
distinct and separate gift to the testator's
children as such. Inasmuch as this gift is to
a class which includes persons who might not
be ascertained until after a life in being and
21 years afterward, it Is void under the rule
that a gift to a class is void unless the whole-
class must be ascertainable within the period
allowed by the rule. In re Hence, 3 Ch. Dlv.
U R. 242 (1891) ; In re Hancock, 1 Ch. Dlv.
U R. 482 (1901) ; Sledler t. Syms, 66 N. J.
Eq. 275, 38 AU. 424. In the cases dted supra,
the courts recognize and afflnn the well-
established rule quoted with approval by the
court in the Syms Case, supra, 56 N. J. Eq.
at page 279, at page 426 of 38 Atl.:
"When * * * a testator has made a gen-
eral bequest embracing a great number of pos-
sible objects, there is no authority for holding-
that a court can so mold it as to say that it is
divisible into two classes, the one embracing the
lawful and the other the unlawful objects of his-
bounty."
Applying this mle to the case before us,
it Is plain that the testator's diildren takfr
nothing under this dause, and that the en-
tire limitation after the decease of the wife
Is void. The trust is valid during the life
of the wife, and as the bequest to the heirs Is
void, the property held In trust by the trus-
tees will pass under the residuary clause
of the will quoted above Into the residue, and
will then belong to tho estate of Mrs. Peck.
In Gray, supra. In the footnote at bottom of
page 230, after dting authorities, the author
says:
"There is so question that personal property
Included in a void bequest goes to the residuary
legatee."
See, also, Woodward ▼. Congdon, 34 B. I.
316^ 83 Atl. 433, Ann. Cas. 1914C, 809.
[4] In regard to the surplus Income we are
of the opinion that this should be retained
in the trust funds until the termination of
the trust at the death of Louise U Pe<^
There are no instructions to the trustees to-
accumulate. The Intention of the testator
is to make sure that the trustees shall have
$7,000 a year to distribute, and the reference
to accumulations and the induslon thereof
In the trust fund are Incidental to the main
purpose of the testator as above mentionei).
At the time when the wiU was made tlie-
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STATK ▼. UNITED BBOEBRAaE CX).
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income from trust fnnds was considerably
leas than it is to-day. The trustees were giv-
en broad powers in the management of the
trusts and the change of investments. The
testator undoubtedly had in mind the possibil-
ity of loss from the use of these powers by
the trustees, In which event he evidently
meant that the corpus of the trust and ac-
cumulations of income, if any, should be us-
ed by the trustees for the payments. It is
true that the accumulations of income are
now considerable, but it is not at all certain
that the time may not come during the life
of the trust when these accumulations, or
part of them, may be required to continue
the payments.
The testator's intention in this respect
seems to us to be clear that his wife should
have no more than her proportionate part of
the $7,000 annually during her life, and that
nothing except the $7,000 a year should be
taken out of this fund, Including the accumu-
lations until her death.
Having answered the questions submitted
to QS, the parties may present a form of de-
cree In accordance with this opinion for ap-
proval by this court and entry by the superior
court.
(6 Bojrce, STO)
STATE ex rel. MNIHAN v. tlNTTBD BROK-
ERAGE CO. et al.
(Snperior Court of Delaware. New Castle.
June 27, 1917.)
1. CoBPOBATiONs «=>181(1) — Rights or
Stockhoi.dkb»— Inspection of Books.
A stockholder has the right to inspect the
books of the corporation at a proper time for
proper purposes.
[Ed. Note.— For other cases, see Corporations,
Gent Dig. » 674, 67B, 677.)
2. Mahdaicds «=»129 — RioHTB or Stock -
HOLDKBS— INSPXCTION 07 BoOKB.
On a stockholder's petition for mandamus
for inspection of books of the corporation, if it
appears from the corporation's return that he
desires the inspection for improper purpose, the
court in its discretion will not order the in-
spection.
[Ed. Note. — For other cases, see Mandamus,
Cent Dig. f 264.]
3. Mandaxijs €=> 164(4) — Rights or Stock -
HOLDBKS— Inspection of Books.
Where the return to a stockholder'a man-
damus petition to compel the corporation to al-
low Mm to inspect his books unequivocally alleg-
ed that he desired the inspection for the pur-
pose of bringing annoying and harassing suits
against the corporation without just cause, his
petition should be denied.
[Ed. Note. — For other cases, see Mandamus,
Cent. Dig. { 355.]
4. Manoauus «=>164(4) — Riania of Stock-
holders—Inspection Of Books.
If it is suflSdently averred in the return that
the pnrpose of relator in seeking an inspection
of the corporate books is an improper one, for
the purposes of the proceeding, the answor must
be accepted as true, and the relator referred to
what other remedy he may have at common
law.
[Ed. Note.— -For other cases, see Mandamus,
Cent Dig. { 355.]
Petition for mandamus by tbe State of
Delaware, on relation of John EL Linihan,
against United Brokerage Company and oth-
ers, to compel the production of books. Non
sunt as to Cames and McGehee. Service on
the remaining two defendants. Motion to
dismiss petition and discharge rule as to
James M. Satterfleld, the resident agent, on
the ground that be was neither a necessary
or proper defendant Granted. On return
of the rule, the alternative writ was on mo-
tion Issued against the United Brokerage
Company. Motion to quash return to the
alternative writ. Overruled. Peremptory
writ denied.
Argued before RICE and HEISEL, JJ.
Marvel, Marvel, Wolcott * Layton, of Wil-
mington, for plaintiff. Andrew C. Gray, of
Wilmington, for United Brokerage Co. Rob-
ert H. Richards, of Wilmington, for Samuel
T. Cames, and James M. Satterfleld, of
Dover, In pro. per.
RICE, J. (delivering the opinion of the
court). The state of Delaware upon relation
of John E. Linihan, filed a petition in this
court, praying for a writ of peremptory man-
damns, directed to United Brokerage Com-
pany, Samuel D. Carnes, J. P. McGehee and
James M. Satterfleld.
Upon the Issuance and return of the rule
to show cause why the prayer of the petition-
er should not be granted, an alternative writ
of mandamus was issued on the twenty-
fourth day of March, A. D. 1917. The peti-
tion was incorporated In the alternative .writ
On the seventh day of May following, the
defendant filed a return to the alternative
writ of mandamus. In this return the de-
fendant admits the allegations appearing in
the first, second and third paragraphs of the
petition, to wit: That the petitioner Is a
resident of the dty of Chicago and state of
Illinois ; that the United Brokerage Company
Is a corporation organized and existing un-
der the laws of the state of Delaware, and
Samuel D. Cames is the president, and J.
P. McGehee is the secretary and ti-easurer of
said corporation, and James M. Satterfleld is
the resident agent of said corporation ; that
the company has an authorized capital stock
of eleven million dollars, of which one million
dollars Is preferred and tea million dollars
is common stock, and that the relator Is the
owner of twenty-flve hundred and fifty shares
of said common stock.
In answer to the fourth paragraph of the
petition, the defendant admits that no div-
idend has been declared on tbe common stock
of the company.
To the fifth paragraph of the petition, the
defendant admits that until June 14, 1916, It
maintained an office at number 220 West For-
ty-Second street. New York City, at which
office the books and records of the company
were kept, but denies that Barron 0. Collier
4ts9For ottitr eun i
101 A.— 28
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101 ATLANTIC REPOBTBB
(Dd.
owns the majority of its stock or is its con-
trolling stockholder, and avers that the said
Collier Is the largest individual stockholder.
The defendant denies the averment in the
sixth paragraph of said petition that in the
month of November, 1916, the relator deter-
mined, If possible, to dispose of his stock in
the defendant company.
The defendant also admits that its stock
Is not listed on any exchange and is not cur-
rently dealt in at any place of public sale
and exchange of stock.
In reply to the seventh paragraph of the
petition, the defendant makes certain admis-
sions not necessary here to set forth.
The defendant admits the averments in the
eighth paragraph of the petition that cer-
tain letters .were sent by the relator and for
the relator to the defendant requesting an in-
spection of certain books of the corporation.
To the ninth paragraph of the petition, the
defendant admits that it is a holding com-
pany, and that Its properties consist of the
capital stock of other corporations, and bonds
of United Cereal MUIs, Ltd., but denies that
it owns any of the capital stock of the said
United Cereal Mills, Ltd.
The defendant admits the averment In the
tenth paragraph of the petition, that the said
United Cereal Mills, Ltd., did commence an
action in foreign attachment in the Superior
Court of the state of Delaware, in and for
New Castle county, against the relator, John
B. Linihan, and attached the shares of stock
of the said relator in said United Brokerage
Company, the defendant herein, and admits
that the ball demanded in said writ was the
sum of flfty thousand dollars, but denies that
the bringing and commencement of said ac-
tion was brought by procuration of this de-
fendant or its officers.
The seventeenth paragraph of defendant's
return is In the following language:
Further answering said petition, the de-
fendant avers that the demands of the relator
for the privilege of inspecting the books and
records of this defendant, and of making
copies thereof, and the institution of this
suit, were not In good faith, nor for any legit-
imate or lawful purpose, but were made and
instituted for the sole purpose and object
of harassing the defendant and the said Bar-
ron G. Collier, the defendant's principal
stockholder, with the view of compelling it or
him to acquire the said shares of stock owned
by the relator in the defendant, and as a
counter attack to Induce the said United Cere-
al Mills, Ltd., to abandon or compromise Just
and valid claims .which it has against the re-
lator, growing out of his iiilsmauugement of
the said United Cereal Mills, Limited, while
he was in charge tliereof, as will be here-
inafter more fully detailed.
The defendant avers that for several years
prior to the twenty-fifth day of October, A. D.
1916, the relator was an officer and director
of the said United Cereal Mills, Limited, a
partnership assodiatioa under the laws of
the state of Michigan, and during said period,
from time to time, held the offices of general
manager, treasurer, vice chairman and vice
president, and at some portions of said peri-
od held all of said offices at the same time,
and during said period had practical and
exclusive control, management and direction,
with slight exceptions, of all of the business
and affairs of said association. During said
period, the said relator had full right and
power to employ and discharge all agents
and employes of said association, to make all
legitimate contracts in its name and behalf,
and to disburse its funds in the oiieration and
conduct of its business.
During all of said period of employment of
the said relator by the said partnen^hip as-
sociation, the said association was almost en-
tirely owned by either this defendant or by
the said "United Brokerage Company of New
York," a corporation all of whose stock is
and always has been owned by this defend-
ant
For some time prior to October 25, 1916,
the United Brokerage Company of New York,
owning as aforesaid almost all of the capi-
tal stooge of said United Cereal Mills, Limit-
ed, was dissatisfied with the management of
the affairs of the said United Cereal Mills,
Limited, by the relator, and, although re-
peated requests were made for the same, by
the said United Brokerage Company of New
York, no accurate or definite information re-
garding the business and affairs of said part-
nership association could be obtained by the
said United Brokerage Company ot New
York from either the relator or his subordi-
nate officials and employ^. Consequently,
about the month of April, 1816, it was decid-
ed by the said United Brokerage Company
of New York to have a report made by a
qualified expert accountant on the condition
of the said partnership association and its
business; but the relator, being then the
managing officer of said partnership associa-
tion and being in actual possession and con-
trol of all its books and records, positively
refused to allow such accountant to have ac-
cess to said books and records for the purpose
of making an investigation of the affairs and
business of said association. The relatM-,
well knowing that such an investigation
would disclose mismanagement by him of the
affairs of said association and misappropri-
ation of its funds by him, persistently refused
either to give any information to the said
United Brokerage Company of New York, or
its representatives, with reference to the
business and affaifs of said association, and
also persistently refused to permit any such
information to be obtained by the said United
Brokerage Company of New York ; and the
said relator expressly instructed lUs subordi-
nates to refuse to every one any access wliat-
soever to the books and records of the said
partnership association and to refuse any in-
formation whatsoever relating to its afiTalra
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Del.)
STATE V. UNITED BROEERAOE CO.
43S
to the said United Brokerage Company of
New York, and also to every otber person
whatsoever. The said relator, then and
there knowing that this defendant, throngta
Its ownership of the stock of the United
Brokerage Ck>mpaDy of New York, was Inter-
ested In the affairs ot the said United Cereal
Mills, Limited, and, then and there, planning
a counter attack to divert or prevent the at-
tempts of the United Brokerage Company of
New York to obtain a disclosure of the true
conditions of the business and affairs of said
partnership association, seized hold of the
fact that he was a stockholder in the defend-
ant comimny as the basis of such counter at-
tack and forthwith made a demand that the
defendant company, or the said Barron O.
Collier, who was then knovm to the relator to
be the largest stockholder in the defendant
company, should purchase his (the relator's)
stock In the defendant company, at a price
satisfactory to the relator ; and the said re-
lator then and there threatened that maless
such purchase should be made he would take
legal proceedings, the character of which he
did not then disclose, for the purpose of hai^
asslng and Injuring the defendant. The
defendant corporation and tlie said Collier
both refused to purchase said shares of stock
and the said relator thereupon began to make
demands for the right to Inspect the books
and records of the defendant and persisted
In his refusal to permit any examination to
be made of the affairs of the said United
Cereal Mills, Limited, by the board of mana-
gers of said partnership association, as well
as by the owner of practically the entire cap-
ital stock thereof ; and claimed, as an excuse
for such conduct, that all of the board of
managers and officers of said partnership as-
sociation, other than himself, had not been
duly elected. By such, and other similar
tactics, the said relator, between April, 1016,
and October, 1916, endeavored to prevent ac-
cess to the books and records of said part-
nership association by all other persons than
himself and his appointed subordinates. It
having become evident that the relator's ef-
forts to prevent an examination into the af-
fairs of the association were caused by his
anxiety to conceal from the other officers and
stockholders some mismanagement qf the
business, a general meeting of the sharehold-
ers of eald association was held in the month
of October, 1916, and a. board of managers
was elected, of which board the relator was
not chosen as a member ; but as a matter ot
fairness to the relator, he was temporarily
continued as manager of the plants of the
said association until an Investigation and
report could be made of the condition of the
business. Under the Michigan statute (Row.
Ann. St. 1912, S| 5425-5441), authorizing the
organization of partnership associations, the
governing body thereof is called a "board of
managers." Almost immediately after the
new board of managers was elected, it was
discovered by the said board at managers
that the sold partnership association had a
number of outstanding checks without suffi-
cient funds in bank to pay them when pre-
sented, and that other financial transactions
had been made by the said relator which re-
flectedi seriously upon the honesty of the
management of the said association and
threatened the financial standing of the asso-
clatl<m. Thereupon, It was made plain to the
relator that the financial assistance which
had theretofore been extended to the said
association by the defendant company would
be withdrawn unless the relator should com-
pletely sever his connection with said associ-
ation and tarn over all books, records and pa-
pers of the said association unto such per-
sons as might be appointed by the said Board
of Managers. The relator, fully appreciating
that he would be seriously compromised if
said checks went to protest, and the financial
transactions above referred to were exposed,
therefore agreed to, and did, thm and there,
sever his connection with the said association
and made delivery of all its books and pa-
pers, and the attorney for said relator, then
and there, for the first time, informed the
representatives of the said Board of Mana-
gers that the relator had been using the mon-
ey and funds of said association for specula-
tion in grain and had thereby lost moneys
and funds of said association amounting to
about the sum of forty thousand dollars.
The examination of the books and affairs
of the said association which followed the
severance of the relator's connection there-
with, disclosed the fact that the said relator
for several years prior thereto had been nn-
lawfully and without authority using the
funds and money of said association for the
purpose of speculating in grain, ostensibly
for the company but, in a numl>er of Instano*
es. In the names of other parties, and that
such conduct on the part of said relator had
resulted in a misappropriation and loss of
about the sum of $3S,875.50 of the money and
funds of said partnership association; and
said examination also disclosed the further
fact that the said relator, for several years
prior to the severance of his relations with
said association, had been using the funds of
the said association for the purpose of pay-
ing his private debts and obligations and
thereby had overdrawn his personal salary
account with said association, for various
amounts from time to time, and that the-
amount of such overdrafts, at the time of
such severance of relations, aggregated the
sum of $6,886.35, the said amount being the
moneys of the said United Cereal Mills, Lim-
ited, which the said relator had theretofore
unlawfully taken and appropriated to his
own use, in addition to the above mentioned
funds so as aforesaid misappropriated by
him for the purpose of speculating in grain;,
and it is to recover the above mentioned
sums of money, so misappropriated as afore-
said by the said relator, that the said suit
by foreign attachment has been brought in.
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436
101 ATIiANTIO REPOBTEB
(Del.
the said Superior Court of the state of Dela-
ware.
Tbls defendant furtber avers tbat the per-
sistent refusals of the relator to permit the
United Brokerage Company of New Tork,
which was and is practically the sole owner
of the said United Cereal Mills, Limited, to
obtain any Information about the conduct of
the business of the said United Cereal Mills,
Limited, of which, as aforesaid, the said re-
lator was the manager, and the sudden de-
mand of the relator for the right to inspect
the books of the defendant, and the threat
of the relator to institute legal proceedings
against the defendant unless it should pur-
chase his stock in the defendant at a price
satisfactory to him, were aU inspired solely
by the relator's desire to avoid the conse-
quences of his wrongful and Illegal acts,
hereinabove set forth, as manager of the
said United Cereal Mills, Limited. Antici-
pating that some legal action would be taken
against him by the said United Cereal Mills,
Limited, the relator, even after the events
hereinabove detailed, continued to endeavor
to compel either this defendant, or the said
Collier, to purchase his shares of stock in
this defendant company; and, for the pur
ixwe of "holding up" the defendant, or the
said Collier, and coercing them to purchase
his said shares of stock, or to exert their in-
fluenoe to prevent any legal action being tak-
en against him by the said United Cereal
Mills, Limited, the said relator threatened to
exercise his right as a stockholder to Inspect
the books and records of the defendant and
threatened to use the information gained
from such inspection for the purpose of bring-
ing suits to annoy and harass the defend-
ant and to injure its business and the busi-
ness of Its said subsidiaries, engaged, as
aforesaid, in conducting the said street rail-
way advertising business. And this defend-
ant avers that, if permitted access to the
books of the defendant, the said relator will
use the information gained therefrom as the
basis of unjust and unsupportable legal ac-
tions In the hope that he may thereby be
able to compel this defendant, or the said
Collier, to purchase his said shares of stock,
or to compel them. Indirectly, to influence the
United Cereal MUis, Limited, to desist from
proceeding against him for the wrongful
acts aforesaid.
This defendant further avers that it is the
declared purpose and Intention of the said
relator, in case he obtains from this court the
right to inspect and make copies of the books,
papers and accounts of the defendant oor>
poratlon, to use the Information thus obtain-
ed to injure the street railway advertising
business of the said subsidiaries of the said
defendant, and also to use such information
as the basis of suits against the defendant
corporation or the said Collier, or both of
them, for the sole purpose of harassing and
annoying them to the extent of compelling
them, or one or the other of them, to pur-
chase his said shares of stock, aa the price
of peace.
This defendant further avers that this
present suit, itself, has not been brought for
any proper purpose, but, on the other hand,
that the same has been brought for the im-
proper, evil and vicious purpose of using
this court and its process as a means of coerc-
ing either the said defendant or the said Col-
lier to purchase the said shares of stock, eo
as aforesaid owned by the relator, whereas,
in fact, neither the said defendant nor the
said Collier liave any desire to purchase the
same. And this defendant further avers
that, so far as it Is concerned, it will not
permit itself to be coerced to purchase the
said relator's shares of stock, under any cir-
cumstances.
Argument was heard on a motion to quash
defendant's return to the alternative writ.
The question for our immediate considera-
tion and determination la whether the aver-
ments contained in the seventeenth para-
graph of the return show sufficient reason
why the relator should not be permitted,
under the order of the court, to Inspect and
make copies of, and extracts from, the books
of the company as prayed for in the petition.
We believe the questions of law raised have
all been determined by the courts of this
state.
The ilt^t which relator seeks in this salt
is the common-law right of the stodcholder
to inspect the books of the corporation at
the proper time and for a lawful and proper
purpose, ^e relator In his petition express-
ly avers that he does not wish to see the
books and papers for mere idle curiosity, nor
for speculative purposes, nor for any Im-
proper purpose whatever, and sets forth in
his petition what under ordinary circum-
stances would be a proper purpose, and if it
were not for the Issues raised by the seven-
teenth paragraph of the defendant's return,
we think he would have established Ills right
to inspect certain books of the defendant
company.
[1] It la a principle of law recognized in
this state, tliat a stockholder has the right
to inspect the l>ooks of the corporation at a
proper time for proper purposes. Julvecourt
V. Pan-American Co., 5 Pen. 395, 61 Atl. 398,
63 Atl. 1118; Brumley v. Jessup & Moore
Paper Co., 1 Boyce, 397, 77 Atl. 16; State v.
Jessup & Moore Paper Co., 4 Boyce, 248, 83
Atl. 449.
[2] If it appears from an inspection of the
defendant's return, that relator's purpose is
not as alleged by him, for a proper purpose,
but is, as averred by the defendant, for an
Improper purpose, then the court in its dis-
cretion would not make an order for the in-
spection of defendant's books by the relator,
and in this case would not quash return filed
by the defendant.
In State v. Jessup ft Moore Paper Cow,
supra, it was saidt
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OdJ
STATE T. UNITED BSOKERAQE CO.
437
"The answer made by the return U threefold
In nature. It first charges the relator with ac-
tions and motives which, if true, would deprive
it of the right to obtain information it seeks
* • • >>
—and again with reference to the bad faitti
and improper motive of the relator In the
same case, the court said:
"Bad faith and improper motive of the Idnd
alleged, would, if true, deprive the relator of any
ridit to insi>ect the books of a corporation of
whidi It is a stockholder ; but such an allega-
tion of bad faith and improper motive, without
something to show how and in what resi>ect it
exists, is alone insufficient as a denial of the
plaintiff's good faith and proper motive, just aa
a bald averment of the relator as to its good
faith and proper purpose, without something to
thow the real or prooable existence of the one
and the other, would be an insufficient aver-
ment in the petition upon which to ask for and
obtain the inspection of corporate books."
[3] In passing upon the question raised by
the return of the defendant, we must not only
keep In mind the right sought to be exercis-
ed by the relator, but we must also keep be-
fore us the rights of the other stockholders
to have their Interests In the company pro-
tected.
There Is much In the seventeenth para-
graph of defendant's return, which may seem
Irrelevant and would be Irrelevant If It were
not that It contained averments of the dr-
camstances leading up to and throwing light
upon the nature and character of the re-
lator's demand that one of tbe principal
(tockholders purchase his stock in the de-
fendant company, at a price satisfactory to
the relator and his threat that unless such
purchase should be made, he would take le-
gal proceedings for the purpose of harass-
ing and Injuring the defendant, and also his
snbsequent threat to exercise his right as a
stockholder to Inspect the books and records
of the company, and use the Information
gained in such inspecticm, for the purpose of
bringing suits to annoy and hara^ the de-
fendant, and to injure its business and the
business of its subsidiaries.
The examination of corporate books by the
relator for the purpose declared by him, as
averred in tbe return of seeking information
whereby he could bring harassing and vex-
atious litigation against the company, could if
such purpose should be effected but bring
injniy to the interests of the other stockhold-
ers In the company, and would be hostile to
their Interests and the interests of the com-
pany, eren though such litigation should be
finally determined in favor of the company.
Such averments of bad faith and Imprt^er
purposes cm tbe part of the relator when
unequivocal, C(nnplete and sufSclently plead-
ed in detail, can only under our practice in
mandamus proceedings, result in a denial of
the plaintilTs prayer to inspect tbe corporate
books.
In State t. Jessup & Moore Paper Co., su-
pra, the court said:
"Under tbe practice of this court in pro-
ceedings in mandamus, tbe relator by its peti-
tion must disclose a state of facts that establish-
es its legal right to the remedy it seeks, and
when an alternative writ issues to enforce that
right, the defendant by its return must either
show that it has obeyed the command of the
writ, or, in tbe alternative, deny the averments
of the petition, upon which the writ was award-
ed, and show the relator to be without right to
the remedy. There must be denials of those
averments that are material to establishing the
petitioner's right, and in order to avoid obedi-
ence to the mandate of tbe writ, the denials must
be unequivocal, complete and snfflcient. They
must be sufficient, not merely in the estimation
of the pleader, but must be so pleaded as to dis-
close their sufficiency to the court that is called
upon to pass upon their sufficiency. When the
sufficiency of the denials is thus disclosed, they
are accepted as true; when their snfficiency is
not disclosed, and the mandate of the writ is not
obeyed, the return Is insufficient, and to that
extent the case stands as if no tetnm were
made at aa • • • "
It may be a hardship to the relator In this
case not to be allowed to Inspect the books
of the company, as It may prevent him trcm
securing information as to the value of the
stock owned by him, and attached in the pro-
ceeding instituted by tbe United Oereal Mills,
Ltd., and may result in preventing him from
securing bail in that proceeding. But un-
fortunately for him, the return avers and
sets forth Improper threats and demands
against the company and at least one of the
stockholders in the company, which if carried
out, would undoubtedly prove most injuri-
ous to the welfare of the company and to tbe
Interests of the stockholders.
[4] Under our practice, if it is sufficiently
averred in the return that the purpose of
relator in seeking an inspection of the cor-
porate books is an Improper one, for the pur-
poses of the proceeding, the answer must be
accepted as true and the relator referred
to what other remedy he may have at com-
mon law. We have no practice or procedure
In this state, whereby Issues raised by the
allegation in the petition and the averments
tn the return may be submitted upon evi-
dence to a jury for their determination.
We are of the <9inlon that the bad faith
and Improper purposes on the part of the re-
lator, averred by the defendant in Its return,
la adequately pleaded and it is effectively
shown that the relator should not be permit-
ted to Inspect and make copies of, and ex-
tracts from, the books of the company, as
prayed for in his petition filed, and therefore
we are of the opinion that the motion to
quash the return should not be granted.
The peremptory writ is denied.
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438
101 ATIiAigriO REPORTia
<D«L
(6 Boyce, B»)
pere:ins t. brinohurst.
(Superior Court of Delaware. New Casfle.
June 27, 1917.)
DiscovKBT ©=997(1) — Motions— PsoDucnoR
or Papebs— Requisites.
In making an order under Rev. Code 1915,
{ 4228, to require the production of papers in
evidence the application should show not onl;
that notice had been served upon the adverse
party or his counsel of the time when the ap-
plication would be made to the court, but also
that prior demand had been made on the adverse
party, or his counsel, for leave to examine the
books or writings within a reasonable time (stat-
ing the time), and aacb leave had been refused.
[Ed. Note.— For other cases, see Discovery,
Cent Dig. H 124-127.]
Action by Clifton A. Perkins against Anna
3. Brlngburst On defendant's motion to re-
quire the prodactlon of papers. Motion
granted.
Argued before RICE and HEISBL, JJ.
Baldwin Springer and Caleb B. Burchenal,
both of Wilmington, for plaintiff. Saulsbury,
Morris & Rodney, of Wilmington, for defend-
ant.
Action by Clifton A. Perkins agaliist Anna
J. Brlnghnrst, to recover for work and labor
performed and materials furnished, money
advanced, etc.. In and about the erection and
repair of certain buildings for defendant.
Plaintiff filed a bill of particulars with his
declaration, to which defendant refused to
plead until a further bill of particulars was
filed. Plaintiff filed a more detailed bill of
particulars.
Counsel for defendant thereupon served
the following notice upon counsel for plain-
tiff:
" • ♦ * We hereby give you notice that on
Thursday, next, June seventh, 1917, at 2:30
o'clock P. M. we shall move the court to order
the plaintiff in the above cause to produce the
books or writings mentioned in the schedule
hereto appended and marked Exhibit 'A,' which
said booKs or writings are in the possession or
control of the plaintiff and which contain evi-
dence pertinent to the issue ; such production
to be made for use during the pendency of said
cause under such terms and at such times as the
court may direct."
And also filed the following motion:
"The defendant in the above stated cause by
Saulsbury, Morris de Rodney, her attorneys, luiT>
ing given to the plaintiff in said cause due no-
tice of this application, as appears by the copy
of said notice hereto attached, doth now move
the court for an order requiring the plaintiff
to produce during the pendency of said cause,
under such terms and at such times as the court
may direct, the certain books or writings men-
tioned in the schedule hereto appended and
marked Exhibit 'A,' which said books or writ-
ings are now in the possession or control of the
said plaintiff and contain evidence pertinent to
the i^ue in said cause."
Argument was beard.
HEISEL, J. (delivering the (pinion of the
court). This Is an application by defendant
for the production by plaintiff, of certain
writings in his possession for examination by
defendant during the iiendlng of the action, as
provided by section 4228, Rer. Code 1915.
In maldng such order as we think nec-
essary and proper in this matter, we take oc-
casion to say, that in applications to the
court under the section of tlie Code mention-
ed, we think the better practice to be, and
hereafter will require the application to
show, oot only, that notice bad been served
upon the adverse party or his counsel of the
time when the application would be made
to the court, but must show also that prior
demand had been made on the adverse party,
or his counsel, for leave to examine the books
or writings In queetlon, within a reasonable
time (stating the time) and saCb leuve bad
been refused.
We think the practice as stated In aectloa
337 of WooUey's DeL Piac. should be fol-
lowed.
And now, to wit, this twenty-seventh day
of June, A. D. 1917, the aforegoing petition
having been read and oonsldeved by the
court. It Is ordered that the plaintiff produce
on the twentieth day of July, 1917, at the of-
fice of the Prothonotary of this court, at Wil-
mington, for the inspection and examination
of the defendant, the following bills or writp
ings.
1. The contracts mentioned on page one of
the bill of particulars.
2. BUI showing items of diarge <»i pace
seventeen of the bill of particulais, Jannaiy
28, 1913, tin roofing for porch— *12«.98.
3. BlUs showing itons of charge on page
forty of the bill of partlculara under date ct
March 28, 1913, of each of the followlns
charges:
Warner's biU. $120 80
Plastering for truck room partitions. . 120 00
Tylre's bill for stone lining 100 00
Extra heating 235 00
Panels and castings ISO 58
Panels and canvas 81 80
Glass 78 82
Delaware Hardware Ca's bill— extra
hdw 178 00
Extra painting materials 133 28
Wilmington Sash & Door Co.'b bill for
extra mlUwork 174 70
(6 Boyos. 684)
PALESE V. PAX<ESB.
(Superior Court ot Delaware. New Oaatle.
June 14. 1917.)
DiVOBCK ©S399— PU^ADINO— DEixirsis.
Where the defense in an action for dtvoroe
is adultery on the part of the plaintiff, the bet-
ter practice is to file an answer setting up the
adulterous acts relied upon, with the same par-
ticularity as would be required in a petitioD
alleging adultery as a ground for divorce.
[Ed. Note.— For other cases, see Divorce, Cent.
£Kg. U 316-Sia]
Action for divorce on the ground of -ex-
treme cruelty by Mollie A. Palese against
Andrew J. Pales& Plaintiff given oi^tortu-
nity to file an answer, setting up defense
sought to be raised by evidence.
A=>For other eases s«e larne toolo and KBT-NUMBE31 In all Key-Numbered Digests and Indnes
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N.H.)
BERNARD ▼. WUITKKIJUjD TANNING OO.
439
At tbe trial, It was sought to Introduce
testimony to pnyve adultei^ on the part of
the. plaintiff. Objection was made tliat no
answer setting up such a defense had been,
filed by defendant It was contended in
reply that the practice did not require the
filing of SQCfa an answer, exc^t In cases
where the ground for divorce Is adultery.
Argued before RICE and HEUSEL, JJ.
Armon D. Chaytor, Jr., of Wllmlneton, for
plaintiff. Frank I* Speakman, of Wllmlng-
ton, for defendant
RICE, J. The court Is of the opinion that
where the defense In an action for divorce
is adultery on the part of the plaintiff, the
better practice would be, and should be, to
file an answer setting up the adultprous acts
relied uiK>n, with the same particularity as
would be required In a petition alleging adul-
tery as a ground for divorce. As the practice
has been somewhat unsettled up to tbls time,
we will give the defendant In this case rea-
sonable opportunity to file an answer. If
that can be done during the noon recess, the
plaintiff may then elect whether he will
proceed with the hearing or ask for a con-
tinuance.
(78 N. H. 418)
BERNARD v. WHITBFIEI/D TANNING CO.
(Supreme Court of New Hampshire. CoSs.
May 1, 1917.)
1. Watebs and Water Codbses «=>77— Pole
LUTIOW OF SXBKAM — SXJFTICMNCT OF BVI-
DBNCE.
Id an action for damages to realty and per-
sonalty from tbe pollution <A a river by anthrax
germs from defendants' tannery,- evidence held
to justify finding that tbe germs which killed
plaintiff's COWS and inoculated his land came
from the tannery in the summer, when defend-
ants operated it, rather than before, when it
was operated by others.
[Ed. Nota — For other cases, see Waters and
Water Courses, Cent. Dig. JS 65, 66.]
2. Watebs and Wateb Cocbses ®=>77— Poi.-
lction— evidence — materiality.
Evidence offered by defendants tending to
show that government in'spection and disinfec-
tion of the foreign hides which defendants used
exclusively were effectual to destroy anthrax
germs, and that defendants, in the management
of their business, relied on snck inspection and
disbifection, was admissible, since it bore direct-
ly on the question whether pollution of the
stream was due to defendants' wont of care, or
want (A care of defendants' predecessors in the
tannery business, who used domestic hides.
WEd. Note.— For other cases, see Waters and
ater Courses, Cent Dig. {{ 65, 66.]
3. NviaANCE <e=3£— Unbbasonabb Use or Re-
Ai,Tr — ^Knowledgk of use.
To charge the owner of realty with an un-
reasonable use of it, it must appear that he
iiad actual knowledge of the use.
[Ed. Note.— For other cases, see Nuisance,
Cent. Dig. { 2.]
4. Waters and Water Courses «=»77— Pol-
lution OF Stkeam— Action fob Daxaqes—
Issue.
In an action for damages tt^ realty and per-
sonalty frcHn pollution of a nver by aathraz
germs from defendants' tannery, thi> issue
whether turning the tannery's general waste
into the stream was a reasonable exercise of de*
fendanta' riparian rights should not be submit-
ted, but only the issue of negligence, unless
plamtiff proves damages from the exercise of the
right which defendants claim as appurtenant to
their riparian ownership.
WEd. Note. — For other cases, see Waters and
ater Courses, Cent Dig. SS 65, 66.]
Transferred from Superior Court, Co8s
County; Chamberlln, Judge.
Action on the case by James Betmard
against the Whltefleld Tanning Company.
There was verdict for plaintiff, and defend-
ant excepts. Transferred from the superior
court E2sceptloa sustained, and new trial
granted.
Case, for th«( recovery of damages to real
and personal property occasioned by the pol-
lution of John's river in Dalton, by anthrax
germs from the defendants' tannery located
on the river at Whltefield. Trial by Jury,
and verdict for the plaintiff. Exceptions
were taken by the defendants to the exclu-
sion of evidence, to the charge of the court
and to the denial of tbe defendants' motion
for a directed verdict Tha facts sufficiently
appear in the opinion.
Gobs & James, of Berlin, and E. M. Bow-
ker, of Whitefield, for plaintiff. Drew,
Shuitl^, Morris & Oakes, of Lancaster, for
defendant
FLVMMER, J. The defendants In support
of their motion for a directed verdict, con-
tend that the evidence of tbe plaintiff was
not sufSclent to warrant the verdict, be-
cause It could not be found on the evidence
that the anthrax germs which causefd the
damage to the plaintiff came from the tan-
nery while operated by them. The plaintiff
owns and carries on a farm of 100 acres
situated on the northeast side of John's river
in Dalton about five miles below the defend-
ants' tannery. Thirty acres of the farm Is
tillage, and the remainder Is pasture and
brush land. The building in which the tan-
nery is located Is owned by the town of
Whltefleld, and was first occupied and used
as a tannery for sefveral years by Bernard &
Son, and following them Obendorff & Adler
operated a tannery therein from July or Au-
gust 1914, to April, 1916. The defendants
took possession In May, 1915, and begran the
operation of the tannery May 15, 1915.
There Is considerable! water used In the va-
rious processes of tanning tbe hides, and all
the waste runs Into a sewer, which empties
into John's river. Great care Is taken to
save all the trimmings, fleshings, and hair
from the hides, that by custom belong to the
defendants, but some of the hair is washed
Into the sewer. There was evidence that the
tannery was kept in a clean condition. All
the hides tanned by the! defendants previous
to the bringing of this suit August 16, 1915,
<B=aror other euat *«• aanra topic sod KBV-NUMBBR in all Kay-Numbered Dlgert* and Index**
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101 ATIiAKTIC REPORTER
(N.H.
were foreign hWes. The flret hides tanned
were 500 from South America, which were
tanned May 15th, 16th, 17th, and 18th. The
next hides were 47 l^nown as Rangoons from
India, which were tanned May 23d. On
June 10th the defendants received 1,000
China hides for tanning, and from then to
the bringing of tills action, the tannery, or
some part of it, was in conttnuous operation,
tanning these) China hides. Anthrax is prev-
alent In China and many foreign countries.
Under government regulations, if hides Im-
I>orted from Argentine are accompanied by a
certificate of the American consul, stating
tliat the animals from which the tildes wefre
taken were killed in abattoirs under govern-
ment Inspection, they are admitted. But if
hides are Imported from China, in order to
be admitted, they most be accompanied by
a certificate sworn to by the American con-
sul, stating that they have been immersed
for at least 30 minutes In a 1 to 1,000 solu-
tion of bichloride of mercury, which is effec-
tive to kill both germs and sporea. If such
hides arrlire here without the proper certifi-
cate, a government Inspector sees that they
receive the required immersion before they
can be tanned. It appeared that anthrax
germs in the spore form are very difficult to
destroy, resisting drying, high temperatures
and freezing, and that damp ground and
muck holcjs furnish the best soil to promote
the growth of the spores, and when such
ground becomes Infected it Is likely to re-
main so for many years. There was evi-
dence that the predecessors of the defend-
ants In the tannery tanned domestic country
gathered hides from the West and South-
west, and that anthrax Is more or less prev-
alent in the Southern states in this country,
and particularly in the Mississippi Valley.
[1] The defendants urge that, inasmuch as
the evidence shows that the hides which
they tanned before this suit was brought
were all foreign hides admitted under gov-
ernment regulations, It Is very Improbable
that anthrax germs came from the tannery
while operated by them, and that it Is more
probable, considering the ability of the germs
to live in the soil, that the germs whldi did
the injury came from the tannery when op-
erated by those that preceded them, who
tanned coimtry gathered hides, and therefore
that the Jury could not find that they caused
the pollution of the stream. This contention
cannot be sustained. Whatever may be said
in support of the defendants' position, it can-
not be held as a matter of law that the Jury
wcfre not Justified in finding that the anthrax
germs that killed the plaintiff's cows and
inoculated his land, came from the tannery
in the summer of 1916. Previous to that
summer the occupants of the plaintiff's farm
had never had any trouble from cattle dying,
and cattle did not suffer any ill effects from
drinking the river water, when Bernard &
Son and Obendorfl & Adler were operating
the tannery. Betweoi the 5th and 10th of
July, 191S, shortly before 4 of the plaintiff's
cows died of anthrax, the water in John's
river rose, due to heavy rains, and overflow-
ed the piaintifTs low lands In which his cows
were pastured. And during the summer the
water in the river had a strong odor and was
filthy, and hair and pieces of fleshings were
floating on the water. The plaintiff bad 5
cows die of anthrax in 1915. Four died in
July as above stated, and 1 that died in De-
cember got out of ttie plaintiff's yard, and
wandered down onto the low lands and to
the river. Some 15 cattle along the course
of John's river below the tannery contract-
ed the disease of anthrax in the year 1915.
The first creature died of it on June 22d.
There was no outbreak of the disease prior
to that time. There were no known caxes of
the disease except on farms along the river
below the tannery, and at places where
meadow hay cut on the John's river inter-
vale was being fed. The evidence disclosed
that Amos Brown had cows taken sick with
anthrax that were fed with hay that was
cut in 1915 on a meadow below the tannery
through which the river flows. Washings
from this hay upon examination showed an-
thrax germs. An employ^ of the defendants
testified that the last of August or the first
of September, 1915, he had a swelling on his
ne<^ starting with a pimple, and that he
went to a hospital, and had it cut out, and
the physician who did it sent the tissue to
the state bacteriologist at Concord, who
found that it contained anthrax germs. The
evidence above referred to Is sufficient to
warrant the finding of the Jnry that the an-
thrax which destroyed the plaintiff's proper- '
ty came from the defendants' tannery in the
summer of 1915.
[2] The evidence offered by the defendants
tending to show that government inspection
and disinfection of foreign hides was effec-
tual to destroy anthrax germs, and that the
defendants in the management of their bnsi-
ness relied upon sudi Inspection and disin-
fection, which was excluded subject to ex-
ception, was competent, and should have
been admitted. It bore directly upon the
question whether the pollution of the stream
by anthrax germs was due to the defendants'
want of care, which was one Issue submitted
to the Jury. This error destroys the verdict.
[3] The gist of the plainttlTs dlaim was
that the defendants exercised their rights of
ownership of the tannery in an unreasonable
manner, and thereby caused the plaintiff's
injury, or stated more specifically, that it
was unreasonable for them to put anthrax
germs into the water, which was turned or
allowed to run Into the river and whldi
poisoned the plaintiff's cattle. The claim
was made at the trial: (1) That the defend-
ants had no right to empty the refuse frooi
the tannery Into the river; and (2) they could
not, in the reasonable exercise of their rights
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as owners of tbB itreliulBeB, put anthrax germs
into the water or allow it to be polluted In
tluit way. But the defendants did not claim
the right by virtue of their ownership of the
tannery premises to put poisonous germs in-
to the river. The right the defendants did
dalm was to turn the general refuse of the
tannery Into the stream, and they admitted
thdr obligation to ezerdse due care to keep
snch refuse free from anthrax germs. There
was no evidence the defendants kncfw the
refuse carried such germs. In order to
charge an owner of real estate with an un-
reasonable use of it, it must appear he had
actaal knowlcjdge of its alleged use. The
question whether the use of the stream as a
sewer for the tannery was a reasonable ex-
ercise of the dtfmdants' riparian right was
sabmitted to the Jury, but no claim of any
damagO from such use was made except that
occasioned by anthrax. As the defendants
did cot claim the right to put anthrax into
the stream, the injury the plaintUF alleged
arose not from the rl^t which the defend-
ants claimed, but from their alleged negli-
gence In the exercise of a right claimed by
tbem. Whether they had the right to turn
the refuse of the factory into the stream or
not, as the damage complained of did not
result from the ezerdse of that right, it Is
Immaterial whethcir turning the general
waste into the stream was reasonable or not.
The submission of that issue to the jury
might tend to confuse them and distract
their attention from the real Issne whether
the prcisence of the anthrax in the stream
was due to the defendants' fault.
[4] This issue was submitted as a part of
the question of reasonable use, but at anoth-
er trial the issue of negligence only should
be submitted unless the plaintiff proves dam-
age from the exercise of the right which the
defendants claim as appurtenant to their ri-
parian ownership. All concurred.
Bxception sustained.
New trial granted.
(91 Yt too)
BETTBBI/ir V. BRATTIiEBORO STREET
RT. CO. et at
(Snpreme Comrt of Vermont. Brattleboro.
July 20, 1917.)
1. Railroads «=3326(1)— Grosbirg Aooidknt
— CONTBIBCTOBT NbguOBRCK.
One driving a sleigh over a railway cross-
ing was lK>und to ezerdse ordinary care with
reference to general conditions known to, and
wUdi must necessarily, exist at such crossing
during the sleighing season, and the amount of
snow in the traveled part of the street as af-
fecting the slope to the track could be consid-
ered in passing upon the question of contribu-
tory negligence.
[Ed. Note.— For other cases, see Railroads,
Cent Edg. H 1037, 103&]
2. Railboads €=»330(1) — Gbossino Accident
—Right to Assume Safettt of Obobsino.
One driving a sleigh over a railroad cross-
ing coald assume that the track was kept in a
reasonably safe condition, and could not be
charged with negligence in failing to notice a
defect, unless it was so obvious that it ought
to have been seen by one approaching the cross-
ing with ordinary prudence.
[Ed. iNote. — For other cases, see Railroads,
Cent Dig. | 1071.)
3. Baiuioaos 9=>350(15) — CRossnro Acci-
dent—Contbibutobt Nkolioenok— Ques-
tion FOB JUBT.
Evidence showing that plaintiff drove a
sleigh over a railway crossing at the rate of
four or five miles an hour, and that he failed
to notice the undue prominence of a rail which
overturned liia sleigh held insufficient to show
contributory negligence as a matter of law.
[Ed. Note.— For other cases, see Bailroads>
Cent Dig. { 116a]
4. Railxoadb «s»324(4)— Cbossiko Aocidcnt
— OONTBIBUTOST INKOUOKNCB— MANNBB 09
Dbiviro.
The fact that one drove a horse over a rail-
way crossing at a trot, and that the speed was
not lowered, would not charge him with negli-
gence if the speed was no greater than ordinary
prudence permitted.
[Ed. Note.— For other cases, see Railroads,
Cent Dig. S 1025.]
5. Tbial <g=9296(4, 6)— Rxfubai. of Riquxst
—Cube by Otheb Instbuctions.
Refusal of a request upon the measure of
plaintiff's duty in driving over a railwajr track
held not to have been cured by givui instruc-
tions.
[Ed. Note.— For other cases, see Trial, Cent
Dig. i 709.1
6. Tbial €=362(2)— Rbckption of Evidenck—
Rebuttal.
Plaintiff had a right to rebut medical evi-
dence showing that he could not have survived
a certain dislocation testified to by plaintiff's
physician, resulting from a railway crossing
accident by showing that one who had received
such a dislocation could not only live, but could
be free from paralysis.
[Ed. Note. — ^For other cases, see Trial, Cent
Dig. S 149.1
Exceptions from Windham County Court;
Frank Ia Fish, Judge.
Action by Thomas F. Betterly against the
Brattleboro Street Railway Company and an-
other. Judgment for plaintiff, and both par-
ties bring exceptions. Exertions sustained,
Judgment reversed, and cause remanded.
Argued before MUNSON, C. J., and WAT-
SON, HASBI/TON, POWERS, and TAY-
LOR, JJ.
Barber & Barber, of Brattleboro, for plain-
tiff. Clarke C. Bitts, of Brattleboro, and
Harold B. Whitney, for defendants.
MUNSON, O. J. The plaintiff was injured
by being thrown from his sleigh while cross-
lug the street railway track in Brattleboro.
He has recovered a Judgment, and both par-
ties present exceptions. The only exceptions
argued by the defendants are to the refusal
of the court to direct a verdict In their favor,
and to its failure to comply with certain re-
quests for instructions. All their exceptions
relate to the question of contributory negli-
gence.
The plaintiff testified that there was good
»Fi>r otbar cases saa Muns tople and KBY-NUUBBB in all Ker-Numbared DlgaaU and ladaxM
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101 ATLAI4TIC RXPORTBR
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sleighing ftt this time, not a great deal of
snow, a few Inches, and that yon would nat-
urally go down slightly in passing upon tho
railway. All that is claimed in the defend-
ants' statement of the case is that the snow
made the traveled portion of the highway
somewhat higher than the railway crossing.
The Jury has found by special verdicts that
the accident was caused by the sleigh bitting
the running rail, and on account of the
absence of a proper plank guard along the
side of it There was evidence that the plain-
tiff had not crossed bere before daring that
winter.
The plaintiff testified that Ills horse was
trotting. Jogging along five, six, or seven
miles an hour; that he made no difference
in the speed on coming to the track ; that be
took all the care that anybody could; that
be did not see any obstacles, did not look
ahead to see If there were any, and did not
expect any; that be was driving along un-
concerned; that be did not have in mind bow
the track crossed, or what the effect would
be in striking the rail on a curve; and that
the fact that be was about to cross a track
did not occur to him. Mrs. E^tey, a witness
for the idaintiff, testified that as she was
coming from an Intersecting street she saw
the plaintiff coming down towards the rail-
way crosdng; that be was driving along at
a very slow pace, not more than four or five
miles an hour; and that he was thrown out
right in front of her as she waited for him to
get by.
[1-3] The defendants insist that the plain-
tiff's testimony as to the manner In which he
approached and came upon the crossing en-
titled them to a directed verdict It is evi-
dent, however, that the amonnt of snow in
the traveled part of the street, as affecting
the slope to the track, is an element to be
considered in passing upon the question of
contributory negligence. The plaintiff was
I>ound to exercise ordinary care with refer-
ence to the general conditions which are
known to e.\ist, and must necessarily exist,
at such a crossing during the sleighing sea-
son. But he had a right to proceed upon the
assumption that the track was kept In a rea-
sonably safe condition, and be cannot be
charged with negligence in falling to notice
the defect, unless It was so obvious that it
ought to Iiave been seen by one approaching
the crossing with ordinary prudence. We
think it cannot be said as matter of law that
the plaintiff was guilty of negligence in driv-
ing upon the crossing at the rate of four or
five miles an hour, or in falling to exercise
a closeness of observation that would have
informed him of the undue prominence of the
rail.
[4] We think the defendants were not en-
titled to instructions in the terms of the sec-
ond and fourth requests. One or two sugges-
tions will indicate our view. A man may
drive onto a crossing without giving it a
thought, and yet drive onto It in a manner
which meets the reqnirement of tke law. If
the speed at which the plaintiff came upon
the crossing was no greater than ordinary
prudence permitted, the fact that the gait of
the horse was a trot, and that the speed was
not lowered, would not charge him with neg-
ligence. The language of the fifth request
might easily be thought to refer to the physi-
cal situation alone, and so mislead the Jury
to the plaintiffs' injury. The situation at
the crossing as it actually existed was to be
considered in connection with the situation
which the plaintiff had a right to expect
there, and what reasonable pmdence requir-
ed of him in such circumstances.
[S] The third, seventh, and eighth requests,
like the others, are based upon different fea-
tures of the plaintiff's testimony dlscripttve
of bis driving. The seventh is taken up spe-
cially by defendants' counsel as the best
illustration of their claim. It reads:
"If a prudent man would naturally slow up
the gait of his horse as h« approached the
tracks as Betterly did, then it was incumbent
upon Betterly to slow up, and his failure to do
BO precluded his recovery in this action, if the
jury found that the gait at which he was coins
bad anything to do with throwing him out of
the sleigh."
The defendants claim that the refusal of
the court to comply with any of their requests
left the charge without any application of
the general rule given the Jury as the meas-
ure of the plaintiff's duty.
The only, general definition of negligence
was that given in stating the duty of the de-
fendants. The Jury was afterwards told, in
substance, that if the plaintiff was negligent
in any degree in anything that contributed to-
his injury, he oould not recover; that if be
was not without fault as be approached the
crossing, the defendants were entitled to a
verdict. The only statement in the nature of
an application of this rule to the facts of tbe
case was made in that part of the charge in.
which the court submitted certain special in-
quiries respecting the cause of the accident,
and stated the claims of the parties regard-
ing them. It was made with reference to the
inquiry whether the accident was caused by
the absence of a proper plank guard, and was
in these terms:
"The defendants say the crossing was in good
order, had all the planks and other things that
were necessary and proper for the safety of the
public, and that the driving of the plautiC at
the time onto the crossing as he did, the cross-
ing being more or less bare, the result was a
natural one, and tbe bialt was the plaintiff's ;
he should have halted bis horse and driven more
slowly upon the creasing, because it is known
of all men that you can't drive onto a piece of
bare ground with rails on it Uke this without
jolting the sleigh somewhat."
The court concluded this presentation by
saying:
"There is the whole question, in four pn^tosi-
tions, for you to determine."
The seventh request contained a suffldent-
ly complete and accurate statement of the
plaintiff's duty to entitle the defendant to a
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BIASniN T. OKEENE
443
'Compliance with It In terms or In substance.
It called for a specific application of the law
of the subject to the case presented by the
«vidence. The Jury was told that the plaln-
tur could not recover unless he was free from
ianlt, but was given no particular test as the
measure of his conduct The reference to the
case of a careful and prudent man as the
standard in cases of this kind was preceded
and followed by comments which directed the
attention of the Jury to the care exercised
by the defendants. There was no direct and
«zp1anatory presentation of the rule of lia-
bility in its relation to the plalntlflr. The
frame of the charge in other respects was
sacb as to malce this omission materiaL The
court submitted Inquiries regarding the ex-
istence and effect of certain physical con-
ditions whldh were claimed to have caused
the accident, and referred to these as cover-
ing the whole question. Later in the durge
the Jury were told tliat if they found that
any of these causes produced the injury, and
that the defendant was negligent in that par-
ticular, it would be their duty to assess dam-
ages. The accident might have been cansed
by any one of the claimed defects, and yet
the defendants have been absolved from lia-
bility by the conduct of the plaintiff. The
failure of the court to comply with the de-
fendants' request for a specitic application of
the law of negligence to the conduct of the
plaintiff, left the Jury quite liable to be mis-
led by the subsequent incomplete instmctiona
llie duty imposed upon the plaintiff by the
law of the subject was not adeqiiately pre-
sented to the Jury.
[I] The plaintlfTs exceptions relate solely
to the question of damages. His evidence
tended to show that when thrown from the
sleigh he struck upon his right shoulder and
bead, and received injuries which were seri-
ous and permanent. The defendants claim-
ed, and their evidence tended to show, that
the plaintiff's injuries were not serious and
permanent. It was not claimed that the
plaintiff suffered from paralysis. Dr. Lynch,
the physician who first attended him, tes-
tified that he thought be had received a par-
tial dislocation of the atlas and axla On
cross-examination the doctor said that a man
who bad suffered such a dislocation could
live, and that be had read of cases of that
kind. The defendants called physicians, who
testified that if the plaintiff bad received
such a dislocation, it would have resulted in
bis Immediate death or paralysia The plaln-
tifl called Dr. Lynch In the rebuttal, and
asked him if in bis Judgment that was a fact,
and the evidence was excluded as not rebut-
ting. The exclusion was error. Dr. Lynch
supported bis theory of a partial dislocation
by saying on cross-examination that one
could receive such a dislocation and live.
The defense Introduced witnesses who testi-
fl<>d in effect that the plaintiff could not have
received the dislocation dalmed, for If he bad
it would have resulted in death or paralysia
The plaintiff was entitled to rebut this denial
by evidence that one who had received such a
dislocation could not only live but be free
from paralysis.
The exceptions of both parties are sustain-
ed, and the case will go back for a retrial of
all questiona
Judgment reretsed, and canse remanded.
(>1 Vt S2S)
BLOUIN V. GREENE et aL
(Supreme Court of Vermont. Franklin. July
16. 1917.)
1. Gabhuhkent «ss>4— Natubk o* Action.
P. S. 1657, providing that contract and
account actions may be commenced by trustee
process, does not authorize oommendng a tort
action by such process.
[Ed. Note.— For other cases, see Garnishment,
Cent Dig. { 8.]
2. GARmsHifENT iB-.jI Natttkk or Acnoir.
The rule that a tort action cannot be com-
menced by trustee process is not changed by
Practice Act (Acts 1916. No. SO) « 3 and 4,
authorizing amendment of pleadings In form and
substance, and county court rule No. 10, pro-
viding that misdescription of the form of action
shall not be fatal, since such provisions relate
to defects in pleadings, and not in process.
[Ed. Note.— For other cases, see Garnishment,
Cent Dig. i 3.]
Exceptions from City Court of St. Albans ;
N. N. Post, Judge.
Action by Octave Blouln against W. B.
Greene and the Richford Savings Bank &
Trust Company, as trustee. Judgment for
plaintiff, and the principal defendant excepts.
Reversed, and complaint dismissed.
Argued before MUNSON, O. J., and WAT-
SON, HASELTON, POWERS, and TAX-
LOR, JJ.
McFeeters & McFeeters, of Enosbnrgb
Falls, for plaintiff. Fred L^ Webster, of
Swanton, for defendonta
MUNSON, O. J. The plaintiff has declared
In tort for Injuries to his automobila The
writ issued as a trustee process, and was
served "In the usual way" on both principal
defendant and trustee. The defendant plead-
ed the general issue with notice of matter In
set-off. Before trial, and while the Jury was
being Impaneled, the trustee appeared, made
disclosure of no funds, and was discharged.
It was agreed that the defendant might with-
draw the notice given with his plea. After
the Jury was impaneled and sworn, and be-
fore any evidence was Introduced, the de-
fendant filed a motion to dismiss the wilt,
which assigned for causes that the writ was
Issued and served as a trustee process and
was void, and tbat the court had no Juris-
diction of the process or the cause of action.
Upon the filing of this motion the plaintiff
asked leave to dismiss the action as to the
trustee; whereupon the court overruled the
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defendant's motion to dismiss the ^rrit, and
permitted the plaintiff to dismiss the action
as to the trustee, and allowed the defendant
an exception to each ruling. A trial by Jury
was then had, with verdict and Judgment for
the plaintur.
If not aftected by recent legislation, the
law governing this case Is well settled. An
action of tort cannot be commenced by trustee
process ; and, if so brought, it cannot be sus-
tained against the principal defendant by
discharging the trustee, or striking oat the
tiTistee clause. Such a proceeding is without
authority, and gives the court no jurisdiction.
Ferris v. Ferris, 25 Vt 100; HiU ▼. Whitney,
16 Vt 461.
The plaintiff contends that the case is gov-
erned by No. 90, Acts of 1915, known as the
Practice Act Special attention is called to
section 3 of the act as construed and ampli-
fied in county court rale 10. This section
provides that:
"No pleading shall fail for want of form, but
shall be amended in matters of form at any
stage of the proceedings if the fault is pointed
out"
The rule referred to contains this provi-
sion:
"The misdescription of a form of action in
a complaint or the bringing; of an action in
the wrong form, shall not vitiate the complaint
nor be fatal to the right of action ; and the
provisions of section 3 of said act shall apply
to such fault"
It is provided further In section 4 of the
act that:
"Pleadings may be amended in matters of
substance at any stage of the proceedings un-
der the direction and in the discretion of the
court • • •"
These provisions seem to sustain the plain-
tiff's position, unless the question Is still to
be regarded as Jurisdictional.
[1] The right to proceed by trustee pro-
cess depends solely upon the statute, and P.
S. 1657, the section giving the right does not
authorize it in actions of tort But In cases
where the right Is given the process is merely
an incidental proceeding in a suit brought to
enforce collection, directly from the debtor.
DlvoU V. Nichols, 70 Vt 537, 41 AU. 972. It
was urged in the cases above cited that a
writ and declaration in trespass, containing
the trustee clanse, were good In form and
substance as against tlie principal defendant
and could be sustained by discharging the
trustee and proceeding against the defendant
as upon a common law process. The court
conceded that, if the trustee were discharged,
and the trustee clause struck from the record,
there would still remain a legal process and
declaration, in form at least against the
principal defendant but considered that it
was prevented from so treating ihem by the
fact that there was no authority in law for
commencing the suit in that manner.
[2] If we adhere to the views expressed in
the eases above cited, we cannot sustain the
plaintiff's position without holding that the
Practice Act and the rule of court relied up-
on have disposed of the Jurisdictional ob-
jection ; in other words. It will be necessary
to hold that these provisions authorize an
amendment that will so change the process
as to make valid that which in its inception
was void. We do not think such an amend-
ment comes within the purpose of the act
Both the sections relied upon relate to the
amendment of defective pleadings, and the
defect here is one of process, and not of
pleading. We find nothing in the act wbicb
contemplates the authorization of a court to
amend itself into a Jurisdiction wtaidt It did
not have of the suit as brought Bat if the
act were held to authorize a rule giving this
power, there has been no attempt to exercise
the authority. The rule in question provides
merely that the bringing of an action in the
wrong form shall not vitiate the complaint
but diall be deemed a defect of form and
subject to the provisions of section three of
the act It manifestly relates to questions of
pleading and not of process. Thus, iC a
plalntlfTs right of action calls for a complaint
in contract, and he has declared in tort the
court may permit an amendment to cure the
defect ; but such an amendment in no way in-
volves the question of Jurladiction.
The process in this case issued with out
authority of law, and so was void from tiM
beginning ; and the court being without pro-
cess, was without jurtsdl£tion. It follows
that It was powerless to allow an amendment
and that It should have sustained the motion
to dismiss.
Judgment reversed, and complaint dismiss-
ed, with costs to defendant
(116 He. 2S3)
CHEIXIS T. COLE et aL (two casen).
(Supreme Judicial Court of Maine. July 16,
1917.)
1. Frauo iS=>9— Aotions— Riohts or Pasties.
Where defendants represented to plaintilfs
that corporation stock was as good as bonds and
was a good investment, when in fact the corpora-
tion was hopelessly insolvent and soon went
into receivership and bankruptcy, with a pay-
ment of only 15 per cent to creditors, defend-
ants were liable to plaintiffs for the fraud.
[Ed. Note.— For other cases, see Fraud, Cent
Dig. I 8.1
2. FsAun «=»30 — AcnoKS— RioBTS or Pas-
ties.
Where one defendant desired to sell corpo-
ration stock to plaintiffs, and another known to
plaintiffs and upon whose opinion they relied
stated to them that the stock was valuable, wag
as good as bonds, and that the investment was a
good one, be as well as the seller was liable for
the fraud.
[Ed. Note.— For other cases, see Fraud, Cent
Dig. f 35.]
3. Fraud e=»35— Actions-<Rioht8 of Pas-
ties.
Where the certificates of stock which were
the subject of a sale procured by fraud provided
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445
that the stock waa subject to redemption at a
certain amoant i>er share, which the company at
one time interpreted as entitling it to call in the
stock, the purchaser could not be put at fault in
his action for the fraudulent sale on account of
bis failure to tender the stock, especially where
the company was bankrupt and could not have
redeemed the stock in any event.
[Ed. Note. — For other cases, see Fraud, Cent
Dig. I 30.]
Beport from Supreme Judicial Court, York
County, at Law.
Two actions, by Daniel S. CbelUs and by
liudnda M. Chellls, Us wife, against Je-
rome W. Cole and another. Cases reported.
Judgment against botb defendants In eacb
action.
Argued before CORNISH, C. J., and
BIRD, HALBT, HANSON, and MADI-
GAN, JJ.
J. Merrill I/>id, of Kezar Falls, and Matb-
ewB & StevenB, of* Berwick, for plaintiffs.
Emery & Wat^house, of Blddeford, for de-
fendants.
MADIOAN, J. Both of these actions are
for fraud in the sale of stock of White's
Express Company, a New York corporation,
doing business in New York City and Brook-
lyn. By agreement they were reported to the
law court upon so much of the evidence as
Is legally admissible, the law court to rea-
der final Judgment thereon.
Daniel S. Chellis was about 60 years old,
and had lived for many years with his wife,
the other plaintiff, on a farm in a small
country town In York county. They had on
deposit In the Umerlck National Bank in
said county $6,000, $4,000 In his and |1,000
in her name. The defendant Mills was from
Mew Haven, and a stranger to the plaintiffs,
while Cole was a n^ghbor and was known to
fbem as a successful trader and business
man.
On Mardi 21, 1911, the defendants drove
Into the yard of the plaintiffs' home and
Cole Introduced Mills to Mr. Chellls and
asked him to take the defendants Into the
bouse as they wished to have some talk with
tbem, Chellls and his wife. On that and
two or three succeeding days on which the
Tlslta were repeated several hours were spent
In trying to Induce the plaintiffs to bny
stock in the express company which Mills
dalmed to represent A lengthy statement
jmrporting to show the exact state of the
company's assets and liabilities was exhibit-
ed and explained. Mills vouched for the
tmtta of everything therein contained stat-
ing tbat with an expert he had recently
spent some weeks making a complete exami-
nation of the affairs and condition of the
company. He further represented that its
property was fully insured, and its business
was so flourishing that the officers were ob-
liged to bnlld additional buUdings constant-
ly, and tbat the company owned all of its
real estate and terminals. The plaintiffs
were repeatedly assured that everything
about the company was an right, and that
the stock was an excellent investment
[]] Because of the representations and al-
lurements and advice of the defendants
Daniel Chellis bought 400 shares of the
stock, paying therefor $4,000, and his wife
bought 100 shares, paying therefor $1,000.
Four quarterly dividends at the rate of 7
per cent per annum were paid, but the evi-
dence clearly shows there was nothing in
the condition of the company to warrant any
one of these dividends. There is not the
least doubt that the company was hopeless-
ly insolvent when the stock was sold to the
plaintiffs, and in the latter part of 1911 the
company was in the hands of a receiver,
and early In 1912 it was in bankruptcy. A
dividend of 10 per cent was paid the credi-
tors with the prospect of a possible further
final dividend of 5 per cent The represen-
tations made to the plaintiffs by Mills were
untrue in fact, and of his liability therefor
there is no question. Wheelden v. Lowell,
50 Me. 499; Goodwin v. Fall, 102 Me. 353,
66 Atl. 727; Lltdifleld ▼. Hutchinson, 117
Mass. 195.
[2] The defendants contend that Cole la
not liable, because, at the most, his expres-
sions were merely those of opinion. His
conduct and statements were the controlling
influence whereby the plaintiffs were de-
frauded. He was known to the plaintiffs to
be a shrewd and successful business man,
and was supposed by them to be interested In
the sale of the stock. On three occasions
he drove with the defendant MUls in a bug-
gy a distance of four miles to their home,
sat by and participated in Mills' conversa-
tion. He repeatedly assured the plalntlffa
that the stock was all right; that it was a
safe Investment; that they would make no
mistake in taking their money from the bank
and buying this stock; that it was Just as
good as the bonds, which he exhibited to
them. A check for $1,000 given by Daniel
S. Chellis for a portion of this stock, made
payable to the order of Chas. E. Mills, agent
of White's Express Company, was Indorsed
by Mills, as agent, to Cole, who evidently
received cash for the same at the bank, as
the check bears no further indorsement
While it is not necessary for the maintenance
of this action to show collusion between C<de
and Mills, this, unexplained as it Is, Is strong
presiunptlve evidence that Cole was person-
ally secretly profiting by the sale of this
stock to the defendants. In Adams v. Col-
lins, 196 Mass. 422, 82 N. B. 498, we find
the following:
"The defendant • • • contends • • •
that the evidence showed tbat the statement
was made aa matter of opinion, and not as a
representation of a fact, and that he was not
liable therefor. But he was the third party
with no interest, so far as appears, in the
trade. And he was bound to act honestly and
in good faith, not only in regard to matters of
fact, but also in regard to matters of opinion.
* * * If he undertook to express an opin-
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101 ATIiANTIO RBPOBTBB
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ion he waa bound to give his honest opinion.
He had not the same latitude as a seller, tor the
reason that the buyer in dealing with the
seller would naturally be supposed to be on his
guard, whereas be would not be on his guard,
* * * in dealing with a disinterested third
person. • • • Being liable for a false rep-
resentation as to his opinion, as well as for a
false representation in respect to a matter of
fact, it is immaterial which the allegations were
construed by the presiding judge to be."
Also in Medbnry v. Watson, 6 Mete. (Mass.)
269, 39 Am. Dec. 726, there is a marked and
obvious distinction between the cases In
which there is a —
"false afSrmation b^ the vendor to the ven-
dee, where the maxim 'caveat emptor* applies,
and • • • those • • • upon the false
representations of a third person with regard
to the value of the property. * * * In the
one the buyer is aware of his position; he is
dealing with the owner of the property, whose
aim is to secure a good price, and whose in-
terest it is to put a high estimate upon his es-
tate, and whose great object is to induce the
purchaser to make the purchase: while in the
other the man who makes the false assertions
has apparently no object to gain ; be stands in
the situation of a disinterested person, in the
light of a friend, who has no motive nor in-
tention to depart from the truth, and who thus
throws the vendee oS his guard, and exposes
him to be misled by the deceitful representa-
tions."
See, also, Andrews v. Jackson, 168 Mass.
266, 47 N. E. 412, 37 L. R. A. 402, 60 Am.
St Rep. 390.
In this case the defendant was turning
over In part payment of land certain notes
of a third party. The defendant represented
that the notes were as good as gold, and
told the defendant he had lent money to the
maker, saying:
"Do yon suppose I would lend my money to
any one that was not good?"
Held, that the evidence was sufficient to
warrant a finding that the false representa-
tions were actionable.
The conrt says that :
"It is true that such a representation may be,
and often is, a mere expression of opinion.
But we think * * * it may be made under
such circumstances and in such a way as prop-
erly to be understood as a statement of fact
upon which one may • • • rely."
In Safford v. Grout, 120 Mass. 20, the rep-
resentation was that the maker of a note was
of ample means and ability to pay said note
and that the note was good. The court says
that these were statements of facts suscepti-
ble of knowledge, as distinguished from mere
matters of opinion or belief. In the case at
bar, made under the circumstances that it
was made, the statement of Cole that the
stock was a safe investment, that It was as
good as his bond, that it was safer than the
bank, is seemingly an approval of all repre-
sentations made by Mills as to the assets and
liabilities of the company. These statements
were made in conjunction with those made by
Mills. The value of the stock depended upon
the amount of stock paid in and upon the
available assets and liabilities. A state-
ment that the stock was good and a safe in-
vestment was equivalent to an assertion that
the express company was solvent The plain-
tiffs relied upon him, and not upon Mills,
who, unassisted by COle, never would have
defrauded the plalntitTs. Under the decisions
above quoted Oole Is equally liable in these
actions.
[3] But the defendants say that there was
an existing contract between the plalntifFs
and the White's Express Company, by virtue
of which the plaintiffs were entitled to re-
deem their stock at any time and receive for
each share of stock the sum of $11.50, and
as the stock had never been tendered to the
White's Express Company, the artlnns are
premature, and not maintainable. This con-
tention is based upon the following clause in
the certificates of preferred stock :
"This stock is subject to redemption at $11.50
per share."
The prospectus of the express company ex-
hibited to the plaintiffs at the time of the
sale and on file in the case as plaintiffs'
Exhibit Na 27, interprets that clause as fol-
lows:
"The company reserves the express right to
call in the preferred stodi at 115, which is
$11.50 a share with accumulated asd accrued
dividends, in whole or in part, on or before
January 1, 1916."
As this placed the call of the stock at the
option of the express company, and not at the
option of the plaintiffs, the plaintUTs cer-
tainly could not have been at fault Further^
more, it is clear that the company was bank-
rupt when the stock was sold, and was in no
better condition when it ceased paying the
dividends, which must have come from money
belonging to the creditors and not to the
stockholden. Any attempt to have the stock
redeemed by White's Express Company must
therefore have been a waste of energy.
These actions are not for breach of contract,
but are actions of deceit based on false rep-
resentations in regard to the sto(^ sold to
the plaintiffs. The measure of damages is the
difference between the actual value of the
stock at the time of the purchase and its
value If it had been what it was represented
to be. The tender of the 8to<A to the Express
Company was therefore unnecessary. An-
drews V. Jackson, 168 Mass. 269, 47 N. E. 412,
37 U B. A. 402, 60 Am. St Bep. 300 ; Morse
▼. Hutchins, 102 Mass. 439.
Judgment against both defendants in favor
of Daniel S. Chellls for $4,000, with interest
from date of writ
Judgment against both defendants in ta.\ov
of Luclnda Chellls for $1,000, with interest
from date of writ
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OARNSET ▼. OARK8BT
447
(Ue He. Its)
OAKNSEZ T. OAKNSEZ.
(Supreme JudicUl Court of Maine. July 21«
1917.)
1. WiLM «=>740(3) — CoRTEAcas BmwiKN
DEVIBEES— CONBIDESATION.
That the -widow to whom testator gave all
lu8 securities for life allowed the sons, the re-
siduary legatees and devisees and tremaindermen,
to use certain bonds to diadiarg« debts against
the real estate, is consideration for their con*
tract to pay her annually the amount of inter-
est on the bonds.
[Ed. Note.— For other cases, see Wills, Cent.
Dig. S 1891.]
2. Rbueabe «=>12(1)— PsoinsK— Consideba-
TIOR.
A mere verbal statement by creditor that he
will, or intends to, release, or that he does re-
lease, a debtor, being without conedderadon, is
of no binding effect
[Eld. Note.— For other cases, see Release, Cent
Dig. i 18.]
'8. IinKEE8T ^=945 — Natdbb ov Pathknts
Under Contract.
Under agreement of sons, in consideration
of their mother allowing them to use bonds in
irhich she bad a life interest, to pay her an-
nually, for life, an amount equal to the interest
<Mi the bonds, such payments are not interest, as
regards their bearing interest from maturity.
[Ed. Note. — Por other cases, see Interest, Cent
Dig. { 94.]
Report from Supreme Judicial Court, Tork
County, at Law.
Action by Mary J. Oarnsey against JuUa
A. Gamsey, administratrix, and another.
Case reported. Judgment for plaintiff.
Ar^ed before CORNISH, C. J., and BIRD,
HAXiSX, HANSON, and MADIOAN, JJ.
Lucius B. Swett, of Sanford, and Mathews
& Stevens, of Berwick, for plaintiff. Allen
A Willard, of Sanford, for defendants.
HAIiET, J. An action of assumpelt on
a contract in writing of the following tenor :
"Sanford, Maine, May 2, 189a
"For value received we jointly, but not sever-
■Tly, promise to pay to our mother, Mary J.
Oarnsey, annually, during her life, an amount
equal to the interest paid by the Kennebec Light
& Heat Company on $3,800 face value five per
cent bond, maturing in the year 1918.
"F. A. Gamsey.
"A. E. Gamsey."
The eotlon Is brought by Mary J. Gamsey,
tbe promisee named in the contract, against
Almon B. Oarnsey, one of the signers, and
Julia A. Gamsey, administratrix of the es-
tate of Fred A. Oarnsey, the other Joint
promisor. The case Is before this court
upon report
The plaintiff Is the widow of Amos Oarn-
sey, whose will was proved and allowed April
S, 1898, In the probate court for York county,
and Frederic A. Gamsey and Almon E.
Gamsey, two sons of the testator, were ap-
pointed as executors, without bonds, as re-
<iuested In the will. JuUa A. Gamsey, the
administratrix of Frederic A Gamsey, Is
made defendant, and Almon E. Oarnsey, one
of the executors of Amos, is the other de-
fendant The will of Amos Gamsey, by item
1 devised and bequeathed to his two sons,
they being all his legal heirs—
"all the securities whidi he owned at the time
of his decease, including stocks, bonds, notes and
other securities of a similar character, to be
held by them, or the survivor <^ them, in trust
for the following purposes:
"1. To pay the income thereon as it accrues,
to my wire, Mary Jane Gamsey, in her life for
her own use and disposition.
"2. Upon the decease of my said wife to di-
vide the securities between my two sons, or
their heirs by right of representation. I give my
said trustees power to reinvest any monies,
which ma^ come into their hands in payment of
the securitieB, upon consultation with their
mother, and with ner written consent to change
any investments, which they and she shall deem
it for the interest of all concerned. • • •
"II. All the rest and residue of my estate of
whatever name or nature or whatever situate,
I give, devise and bequeath to my two sons,
Frederic A. Gamsey and Almon E. Gamsey, in
equal shares, to them, their heirs by right of
representation and assigns forever."
The Inventory returned shows |12,700 real
estate, personal estate $41,600, and the bonds
of the Kennebec Light & Heat Company men-
tioned In the agreement were not included
In the Inventory, but they were a part of the
estate of Amos Gamsey, and were converted
by the two executors, and the proceeds used
to pay Indebtedness of the estate. The will
expressed the wish that the parties legally
Interested under the will make a division of
the property according to the terms of tb«
will, and prevent or dispense with proceed-
ings In the probate court The parties Inter-
ested under the will were the two sons and
the widow. There were no other heirs, and
It Is evident that they attempted to adjust
the matters without having the estate fully
administered upon. The will was proved
and allowed April 5, 1898, and there was no
account filed in the probate court until No-
vember 21, 1913, some 15 years after the will
was proved, and that account was never
settled.
[1] It Is objected that there was no con-
sideration for the agreement The considera-
tion Is clearly proved. The two executors
converted the bonds mentioned In the agree-
ment, and, according to the claim of counsel
and the testimony, they used the proceeds
to pay debts and claims upon real estate
whldi was devised to them at the death of
their mother. The plaintiff, as the widow
of Amos Oarnsey, had a right to waive the
provisions of the will, and to claim her one-
third Interest In the real estate, which was
undoubtedly worth $4,000, and also entitled
to a third of the rights and credits after
the debts of the estate were paid. But, In-
stead of doing that, she gave her approval of
the will by releasing $3,800 worth of bonds
so the executors might pay the debts of the
estate and preserve It for themselves as resid-
uary legatees. By the agreement between
the plaintiff and the executors and trustee*
the plaintiff waived the right to have them
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101 ATIiAinriG BSPORTBR
(Me.
bold $3,800 worQ) of bonds, and sbe be paid
the Inc(Hne therefrom during life, and ac-
cepted In lien thereof the personal obligations
of the two executors and trustees to pay her
the amount she would hare received as in-
terest on the bonds, and thereby they were
permitted and authorized to convert those
bonds Into money, which tbey did, and re-
duced the indebtedness upon the real estate
that was to descend to them at the death of
tfaelr mother by the provisions of the will
of their father. That was a sufficient con-
sideration for the execution by the executors
and trastees of the agreranent to pay the
widow according to the terms of the agree-
m«it declared upon.
[2] It is the claim of the defendant JuUa
A. Oamsey administratrix, that the plain-
tlS has released her as administratrix of
ber husband from the contract, even if there
was a sufficient consideration when given
by the two sons to the mother. She testi-
fies:
Hat at one time the plaintiff told ber sbe did
not want her to pay the obligation, "didn't ex-
pect me to pay ; she didn't need it, and I needn't
worry anything about it; she was goin^ to give
it to me. Slie said she was going to give it to
Almon ; she was givinp it to me ; she intended
to use us just alike; that on several times the
plaintiff stated that she did not expect her to
pay it, and didn't want her to."
Upon the other hand, the plaintiff is posi-
tive she never told her she did not expect her
to pay anything on It and did not want her
to, and that sbe never said any sudi thing,
and that she did expect It
The circumstances of the case tend to sup-
port the testimony of the plaintiff. But, even
If she did say that which JuUa A. Oamsey
claims she said to her, it was not a release
of the estate of Fred A. Qarnsey from the
obligation that he had signed. It was, at
most. If the defendant's version Is right,
a mere verbal promise without consideration
and of no binding effect. In order for It to
release the estate of Fred A. Oarnsey from
the contract made and signed by him, it was
necessary to be a promise upon a suffldent
consideration. There was no consideration
moving from any one to Mary A. Garnsey
to release the estate of Fred A. Oamsey from
his contract. A mere statement by a creditor
tliat he intends to release, or that be does
release, a debtor, there being no consideration
moving from any one for the promise, the
debt is not thereby discharged. The debt
was created by contract for a sufficient con-
slderaQon. It can be discharged by contract
for a sufficient consideration, but a nalsed
promise to release without consideration is
not a discharge.
It is urged that this suit is prosecuted by
the defendant, Almon E. Oamsey, one of the
Joint promisors, without the consent of his
mother. The plaintiff is an old lady and has
to rely upon some one. He Is her only son,
and it does appear tbat sbe r^ies to a cer-
tain extrait upon his advice. Sbe signed, of
her own free will, tbe notice to the other
defendant that the note must l>e paid. There
is no pretense of any duress or anj* fraud
to induce her to sign that demand. She ap-
pears in court and prosecutes the suit. It
is true she says she did not know until late-
ly, referring to the time of trial, that a suit
had been brougbt, but she ratified the act of
ber son If she did not give authority In the
beginning, and we have no doubt i^m the
testimony tbat she authorized the suit to be
brought at the time it was brought.
[1] The promise declared upon was tiie
Joint promise of Almon E. Oamsey and Fred
A. Oamsey, and by a Judgment against both
defendants either of the defendants can pay
and have contribution from the other. The
payments agreed to be paid were not Interest,
but yearly payments. They were payable,
annually, and eadh payment bore interest
from the day it became due. Swett v. Hoop-
er, 62 Me. 64; Whitcomb v. Harris, 90 Me.
211, 38 AtL 138. The mandate must be
judgm«it for plaintiff for $190 annually for
the years declared uiwn, with interest at 5
per cent on the payments when they became
due to the date of the writ and Interest <m
the total from the date of the writ to the
date of Judgment of the May term, 1917, to
be cast by the cleric
Judgment for plaintiff na per rescript
McCAETHT t. INHABITANTS OF TOWN
OF LEEDS (two cases).
(Supreme Judicial Court of Maine. June 21*
1917.)
1. BaiDoss «=937— Umjcknbed Automobilx
— IdABiLrrT— "Tbavelek."
Under Pub. Laws 1911, c 162, i 11 (Rev.
St 1916. c. 26, i 28), providing that no automo-
bile shall be operated by a resident of the state
upon any highway unless registered, and in view
of Rev. St 1908, c. 23, I 66, providing that
highways, townways, and streets legally eetab-
lished shall be Icept in repair so as to be safe
for travelers, the administrator of two infant
children riding in an automobile with their
granduncle, who owned the madiine, but in
whose name it was not registered, and who
were IcQled through a defective bridge, could
not recover from the town; the word "traveler"
meaning one lawfully a traveler, and any travd
in an unregistered automobile being unlawfuL
[Ed. Note.— For other cases, see Bridges,
Cent Dig. fS 96, 103-105, 109.
For other definitions, see Words and Phrases,
Krst and Second Series, Travel; Traveler.]
Z MUNICIPAt COBPORATIONS «=!»755(1) — Ds-
FEirriVIC HlOHWAT— iNJtTBIKS — LlABIX.rrT.
Independent of statute, there is no liability
on the part of municipalities for injuries caused
by defective highways.
[Ed. Note.— For other cases, see Municipal
Corporations, Cent Dig. H 1587, 1689, 1500.]
Madigan, J., dissenting.
Action by John H. McCarthy, Jr., admin-
istrator of two McCarthy children deceased,
against the Inhabitants ot the Town of
ttsatoi other caaas ••• aam* tqplo and KST-NUUBER Is all Kar-Mumb«rad Dlgwta and ladsxM
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Uti
McCarthy ▼. inhabitants of town of lebds
449
Leeds. Judgment for defendants in each
case.
Argued before SAVAGE, C. J., and COIU
NISH, BIRD, HALEY, HANSON, PHIL-
BROOK, and MADIOAN, JJ.
McGllllCTiddy & Morey, of LewJston, for
plaintiff. Tascus Atwood and H. W. Oakes,
both of Auburn, for defendants.
CORNISH, J. These two actions were
brought against the defendant town under B.
S. 1903, c. 23, $ 76, to recover damages for
the loss of life of two children aged seven
and Dine, respectively, alleged to bare been
caused by the failure of the defendant to
keep a certain bridge over Dead river in
said town in proper and reasonable repair.
On tbe day of the accident, July 22, 1913,
one John H. McCarthy was riding in Ills au-
tomobile, and was sitting on tlie front seat
beside tlie chauffeur. On the rear seat were
the two little girls, his grandnieces. When
the automobile reached tlie bridge, one of tbe
forward wheels, according to the declaration
in the writs, struck a raised plank, thereby
deflecting the machine from its course and
taming it against the railing which proved
to be weak and unable to withstand the Im-
pact The automobile with its occupants was
precipitated into the river. Mr. McCarthy
was rescued, but the children were drowned.
The automobile was not registered in tbe
name of the owner, and that fact is the piv-
otal point in this case.
Suit was brought by Mr. McCarthy in his
own behalf against the town to recover dam-
ages for injuries to himself and his property,
and J-odgment was rendered for the defend-,
ant on the ground that as the automobile
was not registered in the owner's name be
was pr<riilbited from using it on the high-
way, and the town owed him no duty to keep
the way safe and convenient for him to trav-
el upon. McCarthy v. Leeds, 115 Me. 134. 98
Atl. 72, Ia R. A. 19ieE, 1212.
[1] Tbe two suits at bar were subsequently
brought by John H. McCarthy, Jr., as ad-
ministrator of tbe estates of the two chil-
dren, the plaintiff claiming that these two
passengers have a right of action against the
town, even if the owner did not In our
opinion they, as well as the owner, are bar-
red from recovery.
[2] It must be distinctly borne in mind
that tbis is not a common-law action of neg-
ligence against an individual or a corpora-
tion, but a statutory remedy against a mu-
nicipality, and the rights of the traveling
public and the liability of the municipality
are limited by the scope of the statute. In-
dependent of statute there is no liability on
the part of municipalities for injuries caused
by defective highways. The liability Is a
creature of tbe statute (Haines v. Lewiston,
84 Me. 18, 24 AtL 480; Colby v. Pittsfleld,
113 Me. 507, 95 AtL 1), and it does not ex-
101 A.-29
tend beyond the express provisions (Peck v.
Ellsworth. 36 Me. 393).
What then. Is the measure of that liabil-
ity? It is this:
"Highways, town ways and streets, legally es-
tablished, diall be opened and kept in repair so
AS to be safe and convenient for travelers with
horses, teams and carriages." R. S. 1903, c.
23, S 56.
Tbe word "travelers" is the significant
word for oar consideration. As was said by
this court in McCarthy v. Portland, 67 Me.
167. 24 Am. Rep. 23 :
"To enable the plaintiff to recover, he must
have been a 'travder.' That is not all. He
must have been traveling for some purpose or
other for which streets are required to be con-
structed and kept in repair. A person may be
a traveler, but not such within the contempla-
timi of tbe statute which gives compensation
for an injury occasioned by a defect in the high-
way. He may be within or without the pro-
tection of the statute, and still be a traveler."
It was accordingly held in that case that
one who uses the highway for the express
purpose of horse racing is not a traveler to
whom the municipality owes the statutory
duty of keeping its street in repair. Chil-
dren using a street as a playground cannot
be regarded as travelers. Stinson v, Gardi-
ner, 42 Me. 248, 66 Am. Dec. 281. Nor can
a runaway horse. Richards v. Enfield, 13
Gray (Mass.) 344; Hlgglns v. Boston, 148
Mass. 484, 20 N. Bl. 105.
Further, In order to be within the protec-
tion of the statute, one must be a lawful
traveler. One who is traveling in defiance of
a statutory prohibition is unlawfully upon
the highway. Take for Instance traveling on
Sunday, prior to tbe passage of chapter 129
of the Public Laws of 1805. This court re-
peatedly decided that when a person received
an injury through a defect in the highway
while he was traveling on the Lord's Day,
except in case of necessity or charity, he
could not recover. Bryant v. Blddeford, 39
Me. 193; Hinckley v. Penobscot, 42 Me. 89;
Cratty v. Bangor, 57 Me. 423, 2 Am. Rep. 66.
Tbe Maine rule as to nonrecovery in such
cases was also the rule In Massachusetts
(Boswortb V. Swansey, 10 Mete. [Mass.] 363,
43 Am. Dec. 441 ; Jones v. Andover, 10 Allen
[Mass.] 18; Connolly v. Boston, 117 Mass.
64, 19 Am. Rep. 396; Davis v. Somerville,
128 Mass. 594, 35 Am. Rep. 399); and in
Vermont (Johnson v. Irasburgb, 47 Vt 28, 19
Am. Rep. 111). In this Vermont case tbe
ground on which the rule rests Is clearly set
forth. New Hampshire held the contrary.
Sewell V. Webster, 59 N. H. 586.
Precisely tbe same principle is Involved in
the case at bar where the intestates were
traveling in an unregistered automobile.
Such a vehicle Is proscribed. Pub. Laws
1911. C. 162, I 11 (R. S. 1916, c. 26, i 28)
reads:
"No motor vehicle of any kind shall be oper-
ated by a resident of this state, upon any high-
way, town way, public street, avenue, drive-
way, park or parkway, unless registered as prc^
vided in this chapter," etc.
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450
101 ATLANTIC RBPOBTEE
(3tfe.
The Legislature had the power and the
right to enact this prohibitive legislation for
the protection of its citizens. The registra-
tion of a car and the display of Its number
plate serve to ld«itlfy the owner in case of
Injuries caused by negligent conduct in Its
operation. Here, as in the case of the
violation of the Sunday law, it is not a ques-
tion of causal connection between the viola-
tion of the statute and the happening of the
aoddent. The same causes would be at
work to produce an accident on Monday or
Tuesday as on Sunday. So In the case at
bar the more nonregistration can hardly be
regarded as a contributing cause. The rail-
ing of the bridge had no more strength to
withstand the Impact of a registered than
of an unregistered car. The true theory is
that this imregistered car was expressly for-
bidden to pass along the highway and over
the bridge. The municipality was not oblig-
ed to furnish any railing whatever for its
protection. This is the ground on which
McCarthy v. Leeds, 115 Me. 134, 98 Atl. 72,
L. R. A. 19ieE, 1212, was decided, and it is
the logical ground on which this class of
cases against municipalities rests.
But the learned counsel for the plaintiff
urges that even if Mr. McCarthy, Sr., the
owner of the car, cannot recover, the ban
does not prevail against the children who
were merely passengers. He discusses the
lack of contributory negligence on their
part and what Is true, that the doctrine of
imputed negligence does not obtain in this
state. But neither of these questions is in-
volved here. The question of contributory
negligence as related to the nonregistration
Is beside the mark. It is not a question of
age or intelligence or knowledge or Intention
on the part of the occupants. It is a ques-
tion of fact. It Is a matter purely of statu-
tory prohibition. All the occupants are un-
der the same disability. The very logic of
the situation prevents any discrimination
between them. The statute does not relieve
the town from keeping its streets in repair
merely for the owner of an unregistered auto
and those who know the situation, and im-
pose that duty upon it as to those passengers
who have no such knowledge. Nor does
the absence of the doctrine of imputed negli-
gence aid the plaintiff. Our decision is not
based on the doctrine of negligence, as we
have already stated. It Is based upon the
statutory "thou shalt not."
To illustrate: It is conceded that the right
to use the highways of the state is not ab-
solute, and that the Legislature has tlie
right to limit and control their use whenever,
in the exercise of the police power, it is
necessary to promote the safety and general
welfare of the people. It can prescribe what
vehicles shall use the highways and what
shall not It can absolutely close certain
streets to certain traffic. Commonwealth
T. Kingsbury, 199 Mass. 642, 85 N. E. 848,
L. B. A. 1915E, 264, 127 Am. St Rep. 513.
In the exercise of this power certain streets
in the town of Eden were closed to the use
of automobiles by chapter 420 of the Private
and Special Laws of 1903. At the entrance
to these streets, under the provisions of the
act, signboards were to be erected bearing
these words: "No automobiles allowed on
this road." This act was held constitutional
State V. Mayo, 106 Me. 62, 75 AU. 295, 26 L
R. A. (N. S.) 502, 20 Ann. Cas. 612.
In 1909 the prohibition was extended ter-
ritorially to all the ways and streets in the
towns of Eden, Mt Desert, Tremont, and
Southwest Harbor on the Island of Mt Des-
ert Private and Special Laws 1909, c. 133.
This act was also held constitutional. State
V. Phillips, 107 Me. 249, 78 Atl. 283. Suppose
an automobile in defiance of tliose statutes
had been operated In the forbidden district
and one or more of the occupants had l>een
injured through some defect in the highway.
Could it with reason be claimed that any
liability whatever rested upon the munici-
pality within which the accident happened,
or that it made any difference whether the
injured party was the owner or the <diauf-
feur or the passenger, and whether such
passenger knew of the nonregistration or
not? Certainly not. Those towns were freed
from all responsibility when the prohibition
was placed upon this kind of trataa
Now instead of prohibiting all automo-
biles from using certain streets and ways,
the Legislature has seen fit to debar all un-
registered automobiles owned by resld«its
from using any of the streets and ways
throughout the state. Xlguratively speak-
ing, signs are erected on every ttighway, aft-
er the pattern of the ISden act, bearing the
Inscription: "No unregistered automobiles
are allowed on this road." Whenever that
sign is disregarded the occupants travel at
their peril.
The nonliability to passengers as well
as to owner has been settled in Massachu-
setts. In Feeley r. Melrose, 205 Mass. 329,
91 N. ]j}. 306, 27 U R. A. (N. S.) U56, 137 Ana.
St Rep. 445, three suits were brougtit
against the defendant dty, one by the owner,
and two by female passengers in an unreg-
istered car. On this point the opinion holds:
"If the automobile in which the female plain-
tiffs were riding was not registered according
to the requirements of law, it was unlawfully
upon the way; those who were using it wer«
not travelers, but trespasseni; and it would
follow that they could not maintain this action.
* * * Each one of the plaintiffs must fail of
recovery in that event It would not help the
individual plaintiffs that they may not have
known that the automobile was not duly regis-
tered; they did not know that it was, and it
was at their own peril, as to the city and as to
third persons, that they undertook to nse a
vehicle the use of which was prohibited by law."
To the same effect is Dean v. Boston Ele-
vated Railway, 217 Mass. 495, 105 N. E. 616.
Our conclusion therefore is that these &c-
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TXJTTLB T. CUMBERLAND COUNTT POWER A UGHT CX>.
451
Uons cannot be maintained. If tbe present
statute is too drastic the remedy should come
by leglslatlTe amendment
Judgment for defendants In each case.
MADIGAN, J. (dissenting). That those in-
nocent of an intentional wrong should be
held trespassers on the highways established
for the benefit of tbe public does not seem
reasonable. A machine may t>e operated oou-
trary to tbe provisions of the statute, but why
uMist all passengers therein be classed as out-
laws? Few violations of statutory prohibi-
tions entail such drastic punishment. A
sleigh without l>eU8, a carriage without
lights, a wagon with narrow tires; If for-
bidden should be in the same class ; but must
we hold all In such Tehlcleti trespassers, and
tlierefore without protection from defective
highways or the negligence of other travel-
era? If certain appliances were required by
law on trolley cars, would we hold all pas-
sengers In an oftending trolley as trespassers?
Massachusetts, which Is one of the few
states holding as Maine does, applies a dif-
ferent rule to the unlicensed chauffeur than
to the unregristered car. Can we say a ma-
chine in perfect condition unregistered, but
driven by a licensed driver, is more danger-
ous than a registered car driven by a man
whose license lias been revoked for reckless
driving? Under the rule adopted In the ma-
jority opinion at our peril we accept a ride
with a friend, or enter a public bu& The wo-
men and children in the sight-seeing cars in
the dtles, and public cars running from town
to town, may be without remedy in case of
Injury. License plates are no indication of
compliance with the law. They frequently
are changed from car to car. Only by making
sure that the maker's number agrees with
that on the state license is there reasonable
assurance of safety. If by change of owner-
ship the license has lost Its efficacy within an
hoar the car and Its occupants are beyond the
pale of the law. The cruelty of our interpre-
tation is brouight home to us In the case of
these Innocent children. If the accident in-
stead of proving fatal had rendered them crip-
ples for life, they would have been without
redress for the criminal negligence of some
town official. We say the law says, "Thou
Shalt not," and therefore travelers are tres-
passers, though the failure to pay a state
license has not the slightest connection with
the accident. Is It a necessary sequence, or
is it thus because we say It is? Why might
not the penalty here, as in other instances of
violation of law, stop with One or imprison-
ment? Condltionst in our state and high-
ways are no different than In states taking
the contrary view and, as it seema to me,
fairer and Juster rule.
COS Ma. sag)
TUTTLB V. CUMBERLAND COI'NTY POW-
ER & LIGHT CO.
(Supreme Judicial Court of Maine. July 21,
1917.)
Tbiat. ®=>14&— Questions for JtrsT.
Where the testimony on vital questions in-
volved is conflicting, and different conclusions
may be drawn therefrom, tbe case is properly
submitted to the jury.
[Ed. Note.— For other cases, see Trial, Cent
Dig. SS 342, 848.]
Exceptions and on Motion from Supreme
Judicial Court, Chimberland County, at Law.
Action by Mary J. Tuttle against the Cum-
berland County Power & Light Company. On
defendant's exceptions to refusal to direct a
verdict for defendant and on general motion
for new trial. Bxceptiona and motion over-
ruled.
Argued before CORNISH, C. J., and
SPEAR, KING, ELANSON, and MADIGAN,
JJ.
Hinckley & Hinckley, of Portland, for
plaintiff. Bradley & Llnnell, of Portland,
and William Lyons, of Westbrook, for defend-
ant
PER CURIAM. This Is an action to re-
cover damages for personal injuries claimed
to Iiave been received by the plaintiff while
she was a passenger on ouei of the defend-
ant's electric cars.
At the conclusion of the testimony the de-
fendant's attorney moved the court to direct
a verdict for the defendant, which motion
was overruled. The Jury returned a verdict
for the plaintiff for $400. The case is be
fore the court on the defendant's exception to
the refusal of the presiding Justice to direct
a verdictj for the defendant, and upon gen-
eral motion for a new trial.
The Issues in the case are stated in the blU
of exceptions as follows:
"The plaintiff claimed that as the car In
wliicfa she was riding was proceeding along
Ocean street, in South Portland, and slowing
down to make a stop on Highland avenue which
crosses Ocean street diagonally, where she in-
tended to alight from the car, and that at a
short distance before said car reached Higli-
land avenue, she arose from her scat and pro-
ceeded to the rear platform of the car, and
while standing on the step or the rear plat-
form of the car, and at a point on said Ocean
street near said Highland avenue, tbe conduc-
tor gave the motorman the signal of two bells,
and that the car moved or jumped forward rap-
idly, and threw her on to the street and severely
injured her."
"Tbe defendant daimed that as the car was
proceeding along Ocean street at a moderate
rate of speed, and when it had reached a point
on said street near to a double tenement house,
located on tho easterly side of said street, and
about 120 feet northerly from said avenue, the
motorman shut off tbe power in obedience to
a signal that the conductor gave him 400 or
500 feet back from this point, to stop at High-
land avenue at a whito post, so called, located
at the comer of said street and avenue, and
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101 ATLAigriO REPORTBB
(MeL
€ba.t *a the ear was slowed down to a speed of
4 or 5 miles an hour the plaintiff arose from
her seat, proceeded to the rear platform, and
stepped right down on to the step, and then on to
the street, at a point at least 85 feet northerly
and before said white post and Highland avenue,
the stopping place of said car, were reached, and
that when sne so stepped off from said car,
it was running smoothly, 4 or 5 miles an hour,
without any jerking or jumping, or any un-
usual motion whatever, and that no signal of
two bells was given by the conductor as claim-
ed by the plaintiff. And the track at this
place was very nearly level and in good condi-
tion and the car was in perfect running order."
The testimony upon the vital questions in-
volved was conflicting and different conclu-
sions might be drawn from the evidence by
different minds. The case was therefore
properly submitted to the Jury for their find-
ing upon the Issues involved. We are of
opinion that the testimony warranted the
Jury in finding that the plaintiff was in the
exercise of due oare, and that her injury was
caused by the negligence of the defendant
The weight of tlie evidence sustains the claim
of the plaintiff that the signal of two bells
was given prematurely, and that following
the same, and as a direct result thereof, she
was thrown from the car and injured. The
first claim is abundantly proved by the plain-
tiff's testimony, the latter claim that she was
thrown from the car, is corroborated by
witnesses for the defendant It follows that
the exceptions and motion must be overruled.
So ordered.
(US Mew 28»)
McKININON T. BANGOR RX. & ELBCTRIO
CO.
(Supreme Judicial Court of Maine. July 21,
1917.)
1. STBESF RA.II.BOAD8 ^=»100(1)— iKJtTBT TO
PEDKSTHIAN— CONTBIBUTOBT NEOUQENCX.
Evidence that plaintiff, ten year old boy, at-
tempted to cross a street in the middle of the
day without looking for approaching trolley
cars or noticing ringing of the gong, and ran
into fender of a car, establishes his contributory
negligence as a matter of law.
[Ed. Note.— For other cases, see Street Rail-
roads, Cent Dig. { 217.]
2. Street Railroads «=»112(3) — ^Injury to
Passenger— Burden of Paoor.
A ten year old plaintiff injured while at-
tempting to pass in front of defendant's street
car must affirmatively show that his want of
due care did not contribute to the injury.
[Ed. Note.— For other cases, see Street Rail-
K«d8, Cent Dig. {{ 227, 228.]
8. Street Rahaoadb «=>114(1&)— Person Ik-
jubed— sufficibnot of b^videnox.
Evidence regarding defendant street rail-
way employes' efforts to stop a car by reversing
power, sanding tracks, etc., on down grade,
slippery tracks between the time plaintiff fell
on the fender until collision with a stationary
car held not to sustain a verdict for plaintiff
upon the last dear chance doctrine.
[Ed. Note.— For other cases, see Street Rail-
roads, Cent Dig. i 248.]
Btxceptions front Supreme Judicial Court,
Penobscot County, at Law.
Action by John McKlnnon, by Us next
friend, against the Bangor Railway & Elec-
tric Company. Verdict for plaintiff, and de-
fendant moves for a new trial, and excepts.
Motion sustained, and new trial granted.
Argued before COUNTSH, O. J., and HAL-
EY, HANSON, and MADIGAN, JJ.
E. P. Murray, of Bangor, and W. R. Pat-
tangall, of Augusta, for plaintiff. Ryder It
Simpson, of Bangor, for defendant
HALEY, J. An action on the case to re-
cover damages for injuries received by the
plaintiff, as he alleges, by reason of the neg-
ligent operation of the defendant street rail-
road. The verdict was for the plaintiff, and
the case is before this court upon motion and
exceptions.
The record discloses that on the morning
of February 22, 1916, at about half past 10
o'clock, a car of the defendant company, call-
ed an Old Town car, on the track of the de-
fendant at Bangor, came up Exchange street
and down State street, in a westerly direc-
tion, on the northerly track, towards Ham-
mond or Main street; that when it arrived
at a point near what Is called the old post
office, it) had a tUgixt collision with a jigger
that had failed to get off the track, although
the motorman was constantly ringing the
gong. The car stopped and a crowd com-
menced to gather, while the motorman and
ccmductor were taking the names of tlie wit-
nesses who saw the oolllsion, at which time
a Highland street car of defendant came up
Exchange street and turned the corner into
State street about 180 feet away. The mo-
torman of the Highland street car saw the
car ahead at a standstill as his car headed
straight down State street and aiq?lled bis
brakes. State street from Exchange street
where the car stopped, la down grade. The
day was warm and the snow was melting and
running down along the car rails into State
street Tlie rails were slippery. When the
brakes were applied the wheels of the High-
land street car ceased turning, but the wheels
skidded on the rail by reason of the rail be-
ing what the raUroad men call "greasy."
The car was about 81 feet long and weighed
11 tons. The motorman next reversed his
power, but the car wheels got no grip on the
rails and the car kept on, the motorman ring-
ing Ills gong continuously. Ttie conductor
came forward and worked the lever on the
sand box which threw sand upon one rail
of the track. The car would (diedt up a little
and then slide ahead again, but failed to
stop. Hie car was a vestibule car, and in
the vestibule there was a pail oC sand witb a
small shovel in It When the Highland street
car was within a short distance of the sta-
tionaiy car, the plaintiff, a boy about ten
years old, whose attention had been attracted
by the car colliding with the jigger, ran from
the sidewalk on the southeiiy side of State
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McKINNON T. BANGOR BY. & ELECTRIC CO.
453
street diagonally acroes the street, and with-
out seeing the Highland street car or looking
to see If any car was coming be ran against
the left-hand comer of the Highland street
car and was caught up by the projecting car
teiider and carried on until the Highland
street car bumped Into the stationary car.
The motorman of the Highland street car
saw the boy appear at the corner of his car
and saw him faU out of sight, whether on the
fender, the ground, or under the car the
motorman could not tell. The Highland
street car was then moving very slowly, prob-
ably not more than 4 miles an hour, and
there Is some testlmcmy showing it was not
over 2 miles an hour. The motorman's ef-
forts to stop the car failed, although he was
Dslng his brake and reversing the power con-
stantly from the time he came around the
comer and the car began to skid, during
which time the conductor was working the
lever, sanding the rail that the wheels might
catdi so that the car would go backwards.
When the cars came together the impact was
not hard enough to break the glass or injure
the cars. The plaintiff was caught between
the two cars, his head was badly cut, his
right hand and forearm crushed, so that his
arm had to be amputated a little b^ow the
elbow. Neither the conductor of the High-
land street car nor the conductor or motor-
man of the Old Town car knew of the boy's
presence until after he was hurt. It also
appeared that the defendant had a sand car
whldi was used to sand slippery places upon
Its tracks upon notice of their existence, but
no sand had been put upon the State street
tracks by the sand car <m the momhig in
question.
[1,2] There was also testimony tending to
show that water running on the rails would
wash the sand off, especially after a car
had passed along and pulverized the sand on
the rails, and that the condition of the car
rails as to slipperyness changed in a few
minutes, being dependent upon the street
traffic, water, moisture, frost, wind, and at-
mosphere There is but little dispute as to
the facts; the principal dispute being the
distance of the Highland street car from the
<Hd Town car when the plaintiff fell upon
the fender of the Highland street car. The
undisputed facts that the plaintiff. In the
middle of the day, stepped from the side-
walk and attempted to cross a public street
upon which the trolley cars were running In
plain ^gbt, and without looking where the
cars were coming fronj, or the rate of speed
at which they were traveling, or without
looking for the car that was coming down
the street, or without paying any attention to
the ringing of the gong which was being rung
all the time, heedlessly ran against the fen-
der of the car and was thrown on the meshes
of the car fender, shows beyond question that
the plaintiff was not In the exercise of due
care, that his want of due care was negli-
gence that contributed to the injuries that he
received, and as the plaintiff was bound to
show not only the defendant's negligence, but
affirmatively that no want of due care on
his part contributed to bis injury (Cktiomb
V. Street Railway, 100 Me. 418, 61 Atl. 898;
Mullen V. Railway, 164 Mass. 452, 41 N. E.
664), his contributory negligence and want
of due care is a bar to this action, imless, as
the plaintiff cont^ids, that rule does not ap-
ply to this case.
[3] The plaintiff claims that, admitted he
was negligent in mnnlug on to the car so
that he fell upon the fender, yet the defend-
ant Is liable because its servants might, after
the motorman saw the plaintiff on the fen-
der, or by the exercise of reasonable care
might have seen him, have stopped the car
and thereby have avoided the collision.
In actions of this kind It is true that every
negligent act upon the part of the plaintiff
will not necessarily bar him from the re-
covery of damages. The rule has been stat-
ed many times, "that he who last has an ap-
portunlty of avoiding the accident, notwith-
standing the negligence of the other, Is solely
responsible."
"If due care on the part of eltb^ at the
time at the injury would prevent it, the ante-
cedent negligence of one or both parties is
immaterial, except as it may be as one of the
circumstances by which the requisite measure
of care is to be determined. In such a case
the law deals with their behavior in the sit-
uation in which it finds them at the time the
mischief is done, regardless of their prior
conduct." Iron & Steel Co. v. Worcester &
Nashua Railroad Co., 62 N. H. 162. Not-
withstanding the negligence of the plaintiff
in falling upon the fender of the defendant's
car, the plaintiff was powerless to help him-
self; from that time a new relation existed
between the parties, and it was the duty of
the defendant, If its servants having charge
of the car knew of his position, or by the
exercise of due care would have known the
dangerous position the plaintiff was In, to use
the same degree of care which a reasonable,
careful, and prudent man ought to use under
the same drcnmstances, and If, with the ex-
ercise of reasonable care, they could have
prevented the Injury, it was their duty to
do so, and failure on their part to so act
would be negligence which would entitle the
plaintiff to recover. Weitzman v. Nassau
Electric B. Co., 33 App. Dlv. 585, 53 N. T.
Supp. 906. In other words, when a plaintiff,
by his negligence has placed himself in a
dangerous position, the defendant, advised
of his situation, is not for that reason legally
justified In falling to use reasonable care to
avoid Injuring him. McKeon v. Railroad Co.,
20 App. Dlv. 601, 47 N. T. Supp. 374. Where
the negligent acts of the parties are distinct
and independent of each other, the act of
the plaintiff preceding that of the defend-
ant. It is considered that the plaintifTs con-
duct does not contribute to produce the in-
jury, if, notwithstanding bis negligence, the
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101 ATIiANTIO REPORTER
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iDJory oould have been avoided by the use of
ordinary care at tbe time by the defendant.
Atwood V. Hallway Company, 91 Me. 399, 40
AU. 67 ; Ward, Adm'r v. Maine Central Rail-
road Co., 96 Me. 136, 51 Atl. 947; Butler
V. Railway, 09 Me. 149, 58 Atl. 775, 105 Am.
St Rep. 267; Moran v. Smith, 114 Me. 55,
95 Atl. 272. But that doctrine does not apply
to the facts of this case, as they fail to show
negligence on the part of the defendant In-
dependent of and subsequent to the plalntlfTs
negligence. At ,the time the plaintiff fell
upon the fender ihe motorman and conductor
were using all means at their command to
stop the car. Its speed had been reduced to
between 2 and 4 miles an hour, and with the
efforts they were making, but for the slippery
or greasy condition of the raUs caused by the
melting snow and slime which ran off from
the street onto the tracks, they would have
been able to stop the car almost instantly.
The condition of the rails was caused by the
action of Nature but a few minutes before
the accident, and was remedied by the action
of Nature as the running water shortly
washed the rails clean. The plaintiff claims
that the rails should hare been sanded, but
the evidence shows that the sand would have
washed away Immediately. The conductor
did not see the plaintiff or know of his posi-
tion upon the fender until after the accident.
The motorman testifies positively that he did
not; that he was trying to stop the car by
putting on the power and reversing that he
might make the wheels catch upon the rails
and stop the car from skidding; he saw the
boy fall close to the car — ^he could not tell
where — and from that time to the time the
car ran into the Old Town car both the con-
ductor and motorman were doing their ut-
most to stop the car with proper appllanccK
furnished for that purpose. TOere is no
evidence of any negligence on the part of the
defendant independent of and subsequent to
the plalntlfTs negligence that caused the
plaintiff's injuries.
The case of Weltzman v. Nassau Electric
Co., 33 App. Div. 686, 66 N. X. Supp. 905,
cited by the plaintiff, differs from this case
In that the plaintiff in that case offered to
prove that the car, upon the fender of which
the plaintiff's Intestate fell, could have been
stopped within 20 feet from where the motor-
man first saw the child approaching danger-
ously near the track. The court refused to
admit the testimony, and therefore a new
trial was granted.
In this case there is no evidence that the
motorninn saw the child until it feU upon
the fender, and the evidence shows clearly
and conclusively that the efforts of both
the conductor and motorman could not stop
the car before the collision.
In Green v. Metropolitan St Ry. Co., 65
App. Div. 54. 72 N. Y. Supp. 524, the plaintiff
fell upon the fender of the car, and the car ,
traveled a distance estimated at nearly 100
feet before It stopped, and the plaintiff was
Jolted off from the fender and run over, and
the testimony proved that tlie car oould have
been stopped within 20 or 25 feet It was
held that the defendant was UaUe^ but in
that case there was no effort made to stop
the car within the distance within which It
could have been stopped. In this case the
servants of the defendant made proper effort
to stop the car.
As the evidence clearly shows that the
plaintiff was guilty of negligence In falling
upon the fender of the defendants' car, and
that his negligence contributed to the in-
juries he received, and as the defendant was
guilty of no independent subsequent negli-
gence after the platntiffs negligence, bat that
Its servants did all that an ordinary pru-
dent person would or could have done under
the circumstances to stop the car, which was
a suitable car for the business for which it
was being used, it follows that the motion
must be sustained. It Is tinnecessary to
consider the exceptions In detail, as they aro
ail practically covered by the statements of
the law as applied to the motion for a new
trial.
Motion sustained.
New trial granted.
(267 Pa. 221)
JOOS V. COMMOiNWEALTH.
(Supreme Court of Pennsylvania. March 19,
1917.)
1. JtrnoMiHT «=>714(2)— Rbs AitfUDicArA—
LiABiLrrY roB Advebtisino.
A judgment of the Supreme Court that un-
der the statutes relator could not recover for
publishing the mercantile list of dealers within
the cities of Pittsburgh and Allegheny wag res
adjudicata, and could not be litigated again in
another proceeding by the same relator involv-
ing the same cause of action.
[Ed. Note.— For other cases, see Judgment,
Cent. Dig. | 1243.]
2. Taxation «=»319(1)— Pubi-ication of Ap-
pbai8embnt6— authobity — statute.
Under Act April 22, 1846 (P. U 486) { 12,
requiring notices of mercantile appraisements
in the county of Allegheny, except in the cities
of Pittsburgh and Allegheny, to be advertised
in at least two newspapers, the authority of
the mercantile appraisers to order such publica-
tion would be implied, and such authority was
not taken away by Act April 11, 1862 (P. U
492), relating to the assessment and coUectioa
of mercantile taxes, which is to be construed
with other acts relating to the same subject.
[Ed. Note.— For other cases, see Taxation,
Cent Dig. Sf 614, 527-629, 532-1534.]
3. Newspapers iS=95(2)— Pubucation or Ap-
praisements—Extent OP Recovert — En-
ABLIXIG STATDTR.
Where the mercantile appraisers for the
county of Allegheny ordered the publication of
the mercantile appraisement list in a news-
paper and it was held by the Supreme Court
that the publisher could not recover for piiblish-
ing the list within the cities of Pittsburgh and
Allegheny, and Act May 3, 1915 (P. L. 241).
authorized the publisher's action for whatever
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fH
JOOS V. COMMOlSrWEALTH
455
wu due him, a judgment tor adverdaing the
list of dealers in the cotmty outside of those
cities, and refusing a recovery for advertising
within those cities, was proper.
[Ed. Note. — For other cases, see Newspapers,
Ctent. IMg. S$ 23, 24.]
Appeal from Conrt of Common Pleas,
Dauphin County.
Assumpsit for ajdvertislng by John B. Joos,
a resident of the city of Pittsburgh, against
the Commonwealth. Verdict for plaintifF for
$2,524, with Interest from May 9, 1885, and
Judgment thereon, and both parties appeal.
Affirmed.
See, also, 129 Pa. 492, 8 Atl. 159.
Argued before BROWN, C. J., and STEW-
ART, MOSCHZISKEB, FRAZER, and WAIi-
LING, JJ.
E. K. Trent and J. R B. Cunningham, both
of Pittsburgh, for plalntifT. Horace W.
Davis, Deputy Atty. Gen., and Francis Shunk
Brown, Atty. Qea., for the Commonwealth.
BROWN, C. J. [1] By an act of assembly
approved May 3, 1915 (P. L. 241), the plaintiff
was authorized to bring this action against
the commonwealth to recover whatever might
be legally due him as owner and publisher
of a German newspaper in which there was
published, by direction of the mercantile ap-
praiser, the mercantile list of the county of
Allegheny for the year 1885. Louis T. Brown
was the county's appraiser for that year, and
on May 9, 1885, approved plaintiff's bill for
$4,152. After Its ai^roval he presented it
to the auditor general, who declined to pay
It, and be thereupon Instituted a proceeding
In the court of common pleas of Allegheny
county to compel A. E. McCandless, county
treasurer, to pay him. A full report of that
proceeding Is found in Commonwealth t. Mc-
Candless, 129 Pa. 492, 8 Atl. 159, and, for
the purpose of an Intelligent understanding of
the case now before us, we extract the follow-
ing facts from It: To the alternative man-
damus the county treasurer filed an answer.
In which he averred that the paper owned
and published by the plaintiff was a Sunday
newspaper, and the publication of the mer-
cantile appraiser's list therein was not there-
fore legal. An issue was directed to deter-
mine whether the paper was or was not a
Sunday publication. The verdict of the Jury
was that It was a Saturday nevrspaper. The
court then considered the various acts of as-
sembly relating to the publication of mercan-
tile appraisers' lists, and in an elaborate
opinion by the late learned Judge Ewing,
It was held that, under the statutes, the
mercantile appraiser had no power to au-
thorize the publication of the mercantile list
of dealers within the dtles of Pittsburgh
and Allegheny, and for this, if for no other
reason, the commonwealth was not bound to
pay the claim of the relator as presented, for
there were no means of ascertaining the
proportion that would be chargeable for the
list of dealers outside 9t tb« said dtles.
[2] It Is first to be observed that the qnea-
tion of the right of the plaintiff to recover
for the publication of the list of deaters with-
in the cities of Pittsburgh and Allegheny must
be regarded as res adjudicata, for It was
distinctly passed upon by the court below
adversely to him, and its action was affirmed
by this court. The right given by the net of
1915 to bring this suit merely permits it to be
brought with the right of the commonwealth
to have Its liability determined by settled
rules of law applicable to all litigation. The
plaintiff's claim of $4,152 Is made up in this
action of two Items: (a) $1,828, for advertis-
ing the names of dealers within the cities of
Pittsburgh, and Allegheny; (b) ^,624, for
advertising the names of dealers In Allegheny
county outside of said dtles; and the only
Question Is whether he can recover for the
second item. Whether he can do so depends
upon statutory provisions. The act of April
16, 1846 (P. I*. 632), authorized the courts of
common ideas of Allegheny and Philadelphia
counties to appoint an "appraiser of mer-
cantile taxes" to ascertain and assess all
dealers In accordance with the various acts
of assembly then In force relating to tax up-
on vendors of merchandise. By the slxtli
section of the act the appraiser was directed
to furnish each person and firm so assessed
a written or printed notice of his classifica-
tions, giving at the same time to each dealer
notice of the place and time at which ap-
peals might be heard from his classifications.
No authority is given In this act to the ap-
praiser to make any publication in the news-
papers. By section 12 of the act of April
22, 1846 (P. U 486), the fifth, sixth, seventh,
and eighth sections of the act of 1845 were
extended to all the counties of the common-
wealth, with the provisos that the appraiser
for each county should be appointed by Its
commissioners, and that the written or print-
ed notice required by the sixth section of the
act of 1845, to be furnished by the appraisers
to the persons or firms assessed, should ex-
tend only to the cities of Pittsburgh and Al-
legheny, In the county of Allegheny. The
notices of assessments made by the appraiser
within other portions of the county are re-
quired by the act of 1846 to be given by at
least four advertisements In at least two
newspapers. If there be so many published In
the county. WbUe the act Is silent as to who
Is to <H^r the publication, the fair Implica-
tion is that it was Intended to vest the author-
ity to do so in the appraiser, and this author-
ity was exerdsed by the appraiser In the
present case. In pursuance of which the
publications were duly made by the plain-
tiff, and his bill therefor is at an admittedly
correct rate. While the court below, In Com-
monwealth V. McCandless, was In doubt as to
whether this authority remained in the ap-
praiser. In view of the act of April 11, 1802
(P. I/. 492), we are of oi^nlon that, as all
acts relating to the assessment and collec-
tion of mercantile taxes must be construed
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456
101 ATIANTIO REPORTER
(Pa.
together, the authority of the mercantile ap-
praiser to OPder the publlcatloa, found In the
act of 1846, was not taken away by the act of
1862. The act of May 6, 1874 (P. L. 124) re-
lates only to advertisements published by an
officer or officers of the commonwealth au-
thorized by law to publish the same, and Is
not to be regarded as having any applica-
tion to the present case.
[3] The foregoing views were correctly held
by the court below. From Its Judgment sus-
taining the secoai Item of plaintiff's claim
he and the commonwealth have both appeal-
ed. The Judgment gives him all he Is en-
titled to under the law, and does not require
the commonwealth to pay what it does not
0W& It is therefore affirmed.
(»7 Pa. 134)
RICHARDS et al. V. SHIPLEY.
(Supreme Ckturt of Pennsylvania. March 12,
1917.)
iNJTJWCnoN €s»61(2) — CoNxaAOT in Rk-
STEAiNT or Tradk— Breach.
Where the owner of a coal businesa sold it,
including his fixtures, trade-name, etc., and
agreed not to engage in that business in the city
in which he bad conducted his business for two
years, or within a radius of two miles from his
former place of business for five years, and
three years thereafter established a coal busi-
nesa inside the city limits, but outside the two-
mile radius, and solicited orders witiiin such
radius, he would be enjoined from soliciting or
transacting such business within a radius of
two miles from his former place of business
within five years from the date of the agree-
ment.
[Ed. Note. — For other cases, see Injunction,
Cent Dig. §§ 121-123.]
Appeal from Court of Common Pleas, Phil-
adelphia County,
Bill in equity for an Injunction by J. Er-
nest Rlcliards and others against Walter CL
Shipley. I^-ellminary injunction continued,
and defendant appeals. Affirmed.
Davis, J., filed the following findings of
fact and conclusions of law in the court of
common pleas:
Findings of Fact
Upon the bill, answer and proofs the follow-
ing facts are found:
(1) The plaintiff George B. Newton OmlI C<Hn-
pnny is a Pennsylvania corporation chartered
September 4, 1912, under the name of "Heg
Coal Company," its corporate name being short-
ly thereafter changed to George B. Newton Coal
Company. It is, and has been since November,
1912, engaged in the retail coal business in the
city of Philadelphia.
(2) The plaintiffs J. Ernest Richards, Howard
F. Ilansell, Jr., and F. Wilson Priehett are cit-
izens of Pennsylvania and residents of Philadel-
phia. They were the promoters of the George
B. Newton Coal Company, which they organized
in the year 1912 for the purpose of purchasing
and consolidating a number of retail coal busi-
nesses in the city of Philadelphia, Pursuant to
said plan, said coal company did, in the fall of
1912, purchase and acquire the plants, proper-
ties, assets, trade-names, and good will of a
number of retail coal businesses theretofore con-
ducted in said city, among others being the coal
business conducted by the defendant, Walter 0.
Shipley.
(3) The defendant Walter C. Shipley, is a cit-
izen of Pennsylvania residing in the city of Phil-
adelphia. Prior to November, 1912, he had been
engaged for many years in the retail coal busi-
ness in said city, his principal office and place
of business being at tne comer of Price street
and Main street, in Germantown, Philadelphia.
He did a large retail coal business in German-
town and owned a valuable business and good
will, his business being conducted under the
name of "Walter C. Shipley."
(4) On November 22, 1912, the defendant
Walter C. Shipley, executed a bill of sale, a
copy of which is attached to the bilL On the
same day the plaintiffs F. Wilson Priehett,
Howard F. Hansell, Jr., and J. Ernest Richards
executed a bill of sale, a copy of which is at-
tached to the bill of complaint. On the same
day the defendant Walter C. Shipley, and the
plaintifiCs J. Ernest Richards, Howard F. Han-
sell, Jr., and F. Wilson Priehett entered into
the trade agreement, a copy of which is attach-
ed to the biU of complaint which agreement was
on said date assigned by said Richards, Hanscll,
and Priehett to the (ieorge B. Newton Coal
Company by an assignment a copy of which is
attached to the bill of complaint. On the same
date the George B. Newton Coal Ompany and
the defendant, Walter C. Shipley, entered into
the employment contract a copy of which is at-
tached to the defendant's answer.
(5) Upon the execution of the bills of sale, as-
signments, and agreements enumerated in the
foregoing finding No. 4, and upon the consumma-
tion of the transfers contemplated by said docu-
ments, the plaintiff George B. Newton (3oal
C!oropany took over, and has from that time
continuously to the present conductedjthe busi-
ness thus acquired t>y it from said Walter C.
ShipW.
(6) Pursuant to his said contract of employ-
ment with the George B. Newton Coal Company,
the defendant, Walter O. Shipley, entered the
employ of that company on November 22, 1912,
and continued in its employ until the latter part
of the month of December, 1915. During most
of said period he was in charge of and manager
of that branch or department of the George B.
Newton Coal (I^mpany's business which had
formerly constituted the business of said Ship-
ley.
(7) The agreement dated November 22, 1912,
between the defendant, Walter C. Shipley, and
the plaintiffs J. Ernest Richards, Howard F.
Hansell, Jr., and F. Wilson Priehett, and their
assigns (hereinabove referred to in finding No.
4). provided, inter alia, as follows:
Whereas, Walter O. Shipley, by agreement
bearing even date herewith, has granted, bat^
gained, and sold unto J. Ernest Richards, How-
ard F. Hansell, Jr., and F. Wilson Priehett all
of his business, trade-name, trade-mark, gooil
will, machinery, fixtures, furniture, etc., of his
coal business, with the exception of cash, ac-
counts, and bills receivable, accounts and bills
payable, materials, supplies, and stock on band
as set forth in the said bill of sale;
"And whereas, in consideration of the pur-
chase of his business by the said J. Ernest Itich-
ards, Howard F. Hansell, Jr., and F. Wilson
Priehett, it is deemed to be to the mutual inter-
est of the parties hereto that the said Walter
C. Shipley shall refrain from ecntinuing in the
coal business in the city of Philadelphia for a
period of two years and within a radius of two
miles from Main and Price streets, German-
town, for a period of five years, and that he
should indemnify the said J. Ernest Richards,
Howard P. Hansell, Jr., and F. Wilson Priehett.
and their assigns, from any loss on account of
any claims made against the said Walter C.
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BIOHARDS T. SHIPI;ET
467
Shipley, fat ccmnectioii with hia business or by
reason of any aocounts and bills payable now
outstanding:
"Therefore, it is mutually aneed by and be-
tween the parties hereto as follows:
"(1) Walter C. Shipley agrees that he will
not. for a period of two years from date here-
of, within the city of Philadelphia, and for a
period of five years from the date hereof within
the radius of two miles from Main and Price
streets, Oermantown, be or become directly or
indirectly engaged in or connected with any
retail coal business or undertaking similar to
that heretofore conducted by him under the
name of Walter C. Shipley, either individually
or as a member of any firm or partnership, or
as an officer, director, manager, stockholder,
or employ^, or in any other capacity, other
than in any ono of said capacities in the George
B. Newton Coal Company or its subsidiary
companies. • • •
"This agreement is made with the understand-
ing: • • * II. It shall not be so construed
as to prevent "Shipley becoming the owner of
any real estate, whether the same is used in
the coal business or otherwise.
"This agreement and the warranties and cove-
nants shall extend to, inure to the benefit of,
and be binding upon the parties hereto, their
executors, administrators, and assigns."
(8) In the month of January, 1915, the de-
fendant, Shipley, rented a tract of land at
Chestnut Hill and situated about 2 miles and
50O feet from the corner of Main and Price
streets, Germantown, and in the summer of 1915
he began to equip and fix the same as a coal-
yard. Immediately npon leaving the employ
of the Newton Coal Company in December,
1915, said Shipley proceeded to transact a re-
tail coal business at said yard under the name
of St. Martins Coal Company, and is still en-
gaged in said business under said name. Im-
mediately upon entering upon said business he
began upon an extensive scale to advertise his
business, by means of circulars and otherwise,
in various places, and among others throughout
that portion of Germantown which lies within
two miles of the comer of Main and Price
streets. He actively solicited orders of coal
within said district in various ways, and among
others by circulars signed "St. Martins Coal
Company, by Walter G. Shipley," and sold and
delivered coal in said district.
(9) When the defendant Shipley negotiated
the lease of his present yard at Chestnut Hill,
it was his belief that said yard should be rent-
ed by the plaintiff Newton Coal Company. He
was urging upon the Newton Coal Company the
advantages that would accrue to it from rent-
ing such yard, and acted in the premises on
behalf of the Newton Coal Company. It was
not until the fall of 1915 that the proposal that
the Newton Coal Company a^onld take over
•aid yard was abandoned.
(10) At no time did the defendant, Shipley,
inform any of the officers or directors of the
Newton Coal Company that he intended, upon
entering upon the retail coal business at his
present yard, to solicit orders within the dis-
trict I^ng within two miles of Main and Price
streets, Germantown, or engage directly or in-
directly in the retail coal business in said dis-
trict prior to November 22, 1917, the time limit
fixed in said agreement of November 22, 1912.
At no time did the Geor^ B. Newton Coal Com-
pany or any of its officers, directors, or com-
mittees authorise, agree, or consent that said
Shipley should disregard in any way the trade
restrictions contained in his said agreement.
Conclusions of Law.
(1) The agreement of November 22, 1912, be-
tween Walter C. Shipley and J. Kmest Kidi.
ards, Howard F. Hansen, Jr., and F. Wilson
Pricliett, and which waa subsequently assigned
to the George B. Newton Coal Company, where-
by said Shipley agreed to refrain for a period
of five years from November 22, 1912, within
the radius of two miles from Main and Price
streets, Germantown, from engaging or becom-
ing interested, directly or indirectly, in the
retail coal business or any undertaking similar
to that conducted by him under the name of
Walter C. Shipley prior to November 22, 1917,
is a legal, valid, and enforceable agreement.
(2) Under his said trade agreement with the
George B. Newton Coal Company said Walter
C. Shipley has no right either under his own
name or the name of St. Martins Coal Company,
or any other name, to solicit orders for retail
coal from or receive orders for retail coal from,
or make deliveries of retail coal to, any persons,
firms, or corporations within two miles of Main
and Price streets, Germantown.
(3) Neither the George B. Newton Coal Com-
pany nor any of its officers, committees, or di-
rectors have waived the rights of said company
under said trade agreement, by acquiescence or
otherwise.
(4) The evidence offered on behalf of the de-
fendant, Shipley, tending to prove an oral
agreement entered into between said Shipley
and one or more of the promoters of the New-
ton Coal Company, in derogation of the trade
agreement entered into by said Shipley in the
written contract of November 22, 1912, was
irrelevant and inadmissible.
(5) At no time did Howard F. Hansell, Jr.,
or any of the promoters of the Newton Coal
Company agree or attempt to agree with said
Shipley that he would not be required to ob-
serve his trade agreement of November 22, 1912.
(8) The plaintiflfe are entitled to the relief
Eayed for in the bill, and the temporary in-
action heretofore entered by the court should
continued to cover the period named in said
agreement of November 22, 1912, to wit, until
November 22, 1917.
Discussion.
The hill in equity filed prays for an Injunc-
tion to restrain the defendant "from being or
becoming, directly or indirectly, engaged in or
connected with any retail coal business in the
city of Philadelphia for a period of two years
from November 22, 1912, either in his own name
or under the name of St Martins Coal Company
or any other name or as a member of any firm
or partnership, or as an officer, director, man-
ager, stockholder, or employe of any corpora-
tion, or in any other capacity," and further "re-
straining and enjoining said Walter O. Shipley,
either in his own name or under the name of
St. Martins Coal Company or any other name,
from soliciting retail coal business or transact-
ing a retail coal business in any way vpithin a
radius of two miles from Main and Price streets,
.Germantown, Philadelphia, for a period of five
years from November 22, 1912."
The plaintiffs and defendant entered into an
agreement dated November 22, 1912. This
agreement provided, in part: "In consideration
of the purchase of his business by tbo said
J. Ernest Richards, Howard F. Hansell, Jr.,
and F. Wilson Prichett, it is deemed to be to
the mutual interest of the parties hereto that
the said Walter C. Shipley shall refrain from
continuing in the coal business in the dty of
Philadelphia for a period of two years, and with-
in a radius of two miles from Main and Price
streets, Germantown, for a period of five years,
and that he should indemnify the said J. Ernest
Richards, Howard F. Hansell, Jr., and F. Wil-
son Prichett, and their assigns, &om any loss
on account of any claims made against the said
Walter C. Shipley, in connection with his busi-
ness or by reason of any accounts and bills
p^able now outstanding."
It is admitted that the defendant has estab-
lished a retail coal business and yard nnder the
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458
101 ATLANTIC BEPOKTBR
(Fa.
oame of the "St Martins Goal Company." The
yard is located at what is designated by the de-
fendant as 7600 Germantown avenue. It ap-
pears that this location is a few hundred feet
outside of the two-mile radius from Main and
Price streets, Germantown, the location indi-
cated in the contract. It is further admitted by
the defendant that he has solicited business in
the city of Philadelphia within a radius of two
miles from Main and Price streets, German-
town. The terms of the agreement are neither
vague nor ambiguous, and the meaning of the
parties to the agreement is conclusively pre-
sumed to have been set fort in its written
words. A meeting of the parties preliminary to
the execution of the contract was held, and a
contract submitted to the defendant was reform-
ed at the suggestion of himself and his counsel.
We conclude from the brief of counsel for de-
fendant and his argument at the bearing that
his interpretation of this contract is that the
defendant may establish a retail coal business
beyond the two-mile radius and deliver coal to
customers living within the territory included
in the radius of two miles from Main and Price
streets. We need not here concern ourselves
as to the motive or reason actuating the minds
of the parties to the agreement as to the limi-
tation of time or territory as therein set forth.
As we have already stated, the purpose and
requirements of the agreement are perfectly
clear, and we cannot read into the agreement
any mental reservation or mutual understand-
ing not therein expressed at the time of the ex-
ecution. The defendant contends that the plain-
tiff corporation by one of its officers acquiesced
in the action of the defendant in securing a
coal yard and placing a stock of Coal therein
at 7600 Germantown avenue. It appears from
the correspondence between the defendant and
the president of the plaintiff company and from
conversation with other officers of the_ company
that the defendant desired to sever his connec-
tion with this company as an employ^. There
is nothing in the agreement requiring the de-
fendant to continue as an employ^ of the com-
pany, and it further appears that the officers of
the company desire the defendant to continue in
the service of the company as an employ^. The
defendant further contends that the action of
Mr. White, the vice president of the plaintiff
company, in advising defendant as to the meth-
od of constructing the coal pockets in defend-
ant's yard, amounted to an acquiescence of the
company in defendant's action in violating the
terms of the agreement We find as part of
Qxe agreement the following: "(2) It shall not
be so construed as to prevent Shipley from be-
coming the owner of any real estate, whether
the same is used In the coal business or other-
wise."
The defendant cannot be estopped from estab-
lishing a coal yard in the city of Philadelphia
after the expiration Of two years, provided such
yard is not within a radius of two miles from
Main add Price streets, Germantown. The de-
fendant evidently recognized that provisioQ, as
he was careful to go a few hundred feet beyond
that radius in constructing his new plant
We are not convinced that the conduct of the
officers of the company acting In their individu-
al capacity amounted to an acquiescence in the
abrogation of the contract, nor that the plain-
tiff corporation is estopped from enforcing the
clause prohibiting the defendant from doing
business for a period of five years within a radi-
us of two miles from Main and Price streets,
Germantown, and the result of their discussions
in relation to defendant's right to disregard the
agreement was to the effect that defendant
could not arbitrarily abrogate the contract
The officers or directors of the plaintiff corpora-
tion appeal; to have brcn acting as individuals.
In any event, it does not appear that there was
any offidal action taken by the plaintiff com-
pany authorizing them to abrogate the contract,
and we are of opinion that the officers of the
company, acting as individuals, cannot vaive
the right of the company plaintiff to enforce the
terms of the contract If the agreement is to
be abrogated, the corporation, in its offidal
capacity, should authorize such action.
It is not necessary at this time to cite the
numerous authorities supporting the right of aa
injunction for violation of contracts similar to
the agreement in this case. In Monongahela
River Coal & Coke Co. v. Jutte, 210 Pa. 288,
302, 60 Atl. 1088, 1093 (105 Am. St Rep. 812, 2
Ann. Cas. 931), it was said: When a contract
is presented which in some degree restrains
trade, we do not at once decide that it is void
as against public policy, but we go further and
inquire: Is it limited as to space or time, and
is it reasonable in its nature? We are ap-
proaching nearer and nearer to the conclusion,
although we have not yet reached it, that com-
mon honesty is the true public policy."
We are of opinion that it is a breach of the
agreement to conduct a business similar to the
one transferred within the radius of two miles
from Main and Price streets or to do acts in
violation of the spirit and intent of the contract.
The defendant cannot be restrained from estab-
lishing a coalyard, after the term of two years,
beyond the territorial limits set forth in the
agreement, but the soliciting of business, the
selling and delivery of coal to customers within
the territorial limits, is carrying on business
and a breach of the contract
The court on final bearing contlnved the
preliminary injunction which it had Issued.
Defendant appealed.
Argued before BROWN, a J., and STEW-
ART, MOSCHZISKEB, FRAZEE, and
WALMNQ, JJ.
Alex. Simpson, Jr., and El. Spencer Ulller,
both of Philadelphia, for appellant Cauirles
I>. McKeehan, of Philadelphia, for appellees.
PBR CURIAM. This appeal U dismissed
on the facts found and the legal conclaslons
reached by the learned chancellor below and
on his discussion of the questions Inrolved.
Decree affirmed at appellantf s costs.
CK7 Ps. ISS)
hVKQ T. SUTTON et al
(Supreme Court of Pennsylvania. Mardi 12,
1917.)
Mabteb and Skbvant 4=a217(l) — Safe Place
TO WoBK— KnowLEDOK Or Daroeb.
A serraot suiag for personal injury from
stepping into a hole in the floor of a building in
which he was working could not recover where
he had noticed a number of similar holes, and
had attempted to cover them, but bad missed the
one into which he fell.
[Sd. Note.— For other cases, see Master and
Servant, Cent Dig. { 574.}
Appeal from Court of Common Pleas, Phil-
adelphia County.
Trespass by Harry Lung against Charles M.
Sutton and Richard W. Stephenson, trading
as Sutton & Stephenson, to recover damages
for personal Injury. Ftom a Judgment re-
fusing to litikeofr a compulsory nonsuit, plain-
titf appeals. Affirmed.
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EDMOKDS ▼. CHANDLER
469
From tbe record it appeared that the plain-
tiff at the time of the accident bad been
ordered by the defendant firm to put) tile
npon and around the base of a column in a
building which was being altered and repair^
ed; that in the floor there were a number of
boles, and that when the plaintiff went to
woric he noticed the holes, endeavored tto cov-
er them, and then went to work. After work-
ing three-quarters of an hour he stepped in-
to one of the holes and was seriously hurt.
He explained that he had overlooked this
hole because it was In the dark. At the close
of the plaintifTs case the court entered a
compulsory nonsuit, which It Bubseqnently re-
fused to take off. Plaintiff appealed.
Argued before BROWN, a J., and STEW-
ART. MOSCHZISKBR, FRAZER, and WAI<-
LING, JJ.
Charles E. Asnis, David Bortin, Jacob Sing-
er, and Emanuel Furth, all of Philadelphia,
for appellant. A. L. Moise and W. W. Smlth-
ers, both of Philadelphia, for appellees.
PER CURIAM. The appellant, an employe
of the appellees, was injured by stepping In-
to a hole In a floor of a building In which
be was working. Having noticed a number
of holes In this floor, he proceeded, before
starting to work, to cover them with boards
procured from another floor, but unfort^inate-
ly missed, as he frankly admitted in his tes-
timony, the one into which he fell. His fall-
are to cover that hole resulted in his injuries,
and for this reason the court below could not
have avoided the entry of the nonsuit.
Judgment afllrmed.
(2S7 P>. 140
EDMONDS et al. v. CHANDLER.
(Supreme Court of Pennsylvania. March 12,
1917.)
Equity «ss>443— Btli, of Rkvixw— Judoubitt
or SnPBKHB COUBT.
After a decision by the Supreme Court a
bill of review will not be entertained in the court
from which the appeal was taken, especially
where the purpose of the bill is to correct an
alleged error as to matters which were a part of
the record in the case at the time of tlie appeal.
{Ed. Note.— For other cases, see Equity, Cent
Dig. -tt 1071-1077.]
Appeal from Court of Conmum Pleas, Dau-
phin County.
Bill In equity by Franklin Spencer Ed-
monds and another against Percy M. Chan-
dler, recover of the Tradesmen's Trust Com-
pany, to review a decree distributing the as-
sets of the Insolvent trust company. From a
decree dismissing the bill, plaintiffs appeal.
Afnnned.
On final bearing the court, McCarrell, J.,
in the court of common pleas, filed the fol-
lovriog opinion:
The plaintifTs, Franklin Spencer Edmonds and
Charles I. Cronin, filed this bill in the above-
entitled case, and as a part of the proceedings
taken therein, against Percy M. Chandler, re-
ceiver of the Tradesmen's Trust Company, ask-
ing for a review of the decree of distribution
made to them as creditors of said trust com-
pany. The company was dissolved October 11,
1911, and a receiver duly appointed. As his
acconnts were filed they were referred to audi-
tors, in pursuance of the act of 1900, for audit
and distribution. These plaintiffs presented
their claim, asserting that they had the right to
preference over other creditors, because their
claim was secured by an arrangement between
the Tradesmen's Trust Company and one John
Megraw, who was interested in a building oper-
ation in West Philadelphia, and had arranged
with the trust company to finance the buildmg
operation, and bad given as security for the
moneys needed for that purpose ground rents
and mortgages resting upon ue various lots of
ground included within the limits of the building
operation. The nlaintifFs became the purchas-
ers of certain of these mortgages and ground
rents. The agreement between Megraw and the
trust company provided, in snlistance, orally,
that the funds received from the sale of ground
rents and mortgages should be a trust fund in
the hands of the trust company to secure the
trust company for its advances of money and the
protection of the securities which were to be
sold by the trust company for the purpose of
raising funds to complete the liuilding opera-
tion. The building operation had not been com-
pleted at the time the trust company was dis-
solved in October, 1911, and these plnintiSs
presented to the auditors appointed to make dis-
tribution of the money in the hands of the re-
ceiver their daim for the mortgages and ground
rents which they had purchased, and requested
a preference over the general creditors in the
distribution of the funds in the hands of the re-
ceiver t>ec8U8e of the agreement to treat the pro-
ceeds of the ground rents and mortgages as a
trust fund. The plaintiffs offered no special
testimony for the purpose of showing their
right to a preference, but the auditors examined
fully into the matter and heard testimony upon
the subject at various dates. They decided that
no trust fund had been created, that the money
received from sale of ground rents and mortgag-
es covering the Megraw operation had been mix-
ed with the general funds of the company, and
were a part of the general assets, and therefore
refused to allow the plaintiffs a preference, but
did allow them their proper percentage from
the general fund. Exceptions were taken to the
report of the auditors, which exceptions were
overruled by this court, and an appeal was
taken to the Supreme Court by the plaintiffs,
resulting in the affirmance of our decree of dis-
tribution. This opinion affirming our decree was
delivered Ju^ 3, 1915. The present bill for a
review was filed October 19, 1915. An answer
has been filed by the receiver, and the matter is
now before us for decision.
The plaintiffs contend that the testimony of
Howard P. Page, quoted in part in their bill,
shows a manifest mistake of law and of fact
upon the face of the record, and that they are
therefore entitled to a review. Their conten-
tion is that the testimony of Page shows that
a trust fund was in existence covering the pro-
ceeds of the ground rents and mortgages con-
nected with the Megraw operation, out of which
the plaintiffs were entitled to l>e paid in prefer-
ence to other creditors. This testimony was
taken April 26, 1912. No request was made to
the auditors or to this court, based upon this
testimony for a specific finding, that this tes-
timony showed the existence of a trust fund,
such as the plaintiff asserted was established
for their protection. No exception was taken
to the auditors' finding specifically upon that
ground, and no application was made either to
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460
101 ATLANTIC RBPORTBB
(Pa.
the auditors or to tbis court for permisgion to
file exceptions nnnc pro tunc. That these
plaintiffs knew of the existence of this testi-
mony or b; the exercise of reasonable diligence
could have known of the same prior to the filing
of the auditors' report is reasonably certain.
They were present by their counsel at the
morning session of the auditors' meeting April
26, 1012. After the matter has been decided
by the court of last resort, are they entitled
now to maintain a bill of review for the pur-
pose of correcting the alleged mistake? This
question has been considered by our appellate
courts quite frequently. In Dennison v. Goehr-
ing, 6 Pa. 402, the plaintifEs had filed a bill,
setting out that a trust was created for the
benefit of one of the plaintiffs. A final decree
was pronounced in favor of the plaintiffs, and
the defendant appealed to the Supreme Court.
After hearing in the Supreme Court the decree
of the court below was affirmed. Afterwards
the defendant brought his bill of review in the
lower court for alleged error in law appearing
in the body of the decree. The lower court dla-
missed the bill of review, and from this decree
of dismissal an appeal was taken. Mr. Justice
Bell, page 403, uses the following language:
"Thus, the only question presented for deter-
mination is, whether a bill of review for errors
on the face of the record can be entertained in
an inferior tribunal, after the final decree of this
court on appeal, affirming the decree appealed
from." Ifumerous decisions upon this subject
are then referred to, and at i>age 405 appears
the following: "These decisions are consonant
with reason; and the rule they establish is ab-
solutely necessary to prevent the confusion and
mischiefs which would flow from practically
transposing the relative positions of onr courts,
superior and inferior, an inconvenience which
the occasional correction of mistake in a com-
paratively few • • • cases would not com-
pensate." To the same effect in George's App.,
12 Pa. 280; also Felty ▼. Calhoun, 147 Pa. 27,
23 AtL 43a
The case of Ricketts v. Capwell, 241 Pa. 1S8,
88 Atl. 319, is in accordance with the other de-
cisions, and holds that after a decision by the
Supreme Court a bill of review cannot be en-
tertained in the court from which the appeal
was taken. The plaintiffs before the auditors
and in this court asserted that they were enti-
tled to a preference. The burden was therefore
upon them to show b^ what authority they had
this preference. Assigned Estate of the Solici-
tor's Loan & Trust Co., 3 Pa. Super. Ct. 244.
The auditors had before them the testimony of
Mr. Page upon the basis of which the right to
this bill of review is based, and they had also
other testimony upoA the same subject, partic-
ularly the testimony of Lewis K. Brooks, for-
mer treasurer of the company. He testified
distinctly and po^tively that the moneys receiv-
ed by the Tradesmen's Trust Company were
mingled with its own funds and became a part
of the general assets. Referring to accounts
which the trust company had with certain
banks, which accounts were marked "Title De-
partment," Mr. Brooks testified as follows: "Q.
Then do I understand that the purpose of having
those title department accounts was not to keep
trust funds which would go through the title .de-
partment separate and apart from the general
funds of the company? A. No, it was not.
That was hoped to arrive at some day, but that
was not the intention when those accounts open-
ed, nor were those accounts run for that pur-
pose. Q. Then do I understand that the title
department accounts which you have just been
speaking of, in those account funds which be-
longed to other people who had transactions
through the title department, were not deposited
there for the purpose of keeping those funds In-
tact and separate and apart from the funds of
the company? A. No, they were not"
The testimony of Mr. Brooks upon this sub-
ject was clear and distinct and positive, and
on that the auditors found that the funds re-
ceived by the trust company from the securities
connected vdth the Megraw operation had been
mingled with the general funds of the compa-
ny, and that no funds had been earmarked as
belonging to a trust for the holders of these se-
curities. The testimcmy of Howard Page, upon
whom the plaintiffs now rely, and which was
taken long before the appeal to the Supreme
Court was taken, does not, in our opinion, show
that the testimony of Mr. Brooks is incorrect.
It seems to be In entire harmony with it. Mr.
Page speaks of the account of the trust com-
pany with the Corn Exchange National Bank
and with the Fourth Street National Bank.
These accounts were both in the name of the
Tradesmen's Trust Company, and showed that
the banks respectively were indebted to the
Tradesmen's Trust Company, Title Department,
in the sums appearing in the respective ac-
counts. Neither account, however, shows that
the funds referred to therein were designated
as a trust fund for the holders of the Megraw
securities, or in any way indicated that the ac-
counts showed anything else than the indebted*
ness of the banks to the trust company. The
funds referred to in these accounts were not
earmarked, and no one could tell therefrom that
they were anything else than a statement of
the money due from each bank respectively to
the trust company. Mr. Page undertakes to
analyze and examine the deposits and ascertain
from what source moneys credited therein were
derived. He said: "By analyzing the balances
I find various points that they would transfer
from this special deposit to the general deposit
of the company certain sums of money, in the
most cases even amounts of flO,000, $15,000
or $26,000, indicating the amounts deposited in
this account, and, diecking from the last de-
posit made, I find that eight items, the last
deposits which were made aggregating $13,658.-
49, which consisted of the proceeds of the sale
of six ground rents."
l^ere does not appear from any testimony to
have been anything upon the books of the bank
to indicate the source from which the money de-
posited came; and, as already stated, the ac-
counts in these respective banks were not mark-
ed as trust funds for the Megraw securities or
any other particular securities. The testimony
of Mr. Page seems to be consistent with the tes-
timony of Mr. Brooks that these deposits were
to the general credit of the trust company, and
that the funds were mingled with other funds,
so that they were apparently a part of the gen-
eral assets of the trust company. Mr. Page
testified: "I might say that all of the checks
drawn upon the title department funds 'were
made payable to the Tradesmen's Trust Com-
pany, and redeposited in their general funds."
This is in exact harmony with the testimony of
Mr. Brooks. At the time of the hearing before
the auditors the plaintiffs submitted all the tes-
timony which they desired to offer to sustain
their right to a preference. They were fully
heard upon this subject by the auditors, by this
court, and by the Supreme Court. The audi-
tors had before them all the testimony, both of
Mr. Brooks and Mr. Page. Mr. Page was a cer-
tified public accountant, employed by the re-
ceiver to examine the books of the trust com-
pany, and he was called to testify before the
auditors as to whether the receiver had charged
himself in account with all the money received
by him for the trust company. He had never
been an officer of tiio trust company. Mr.
Brooks, the treasurer of the company, testified
positively that no trust fund had ever been
created or set aside, although the company ex-
pected to do so in the future. The auditors con-
sidered all this testimony and concluded that:
"The moneys received by the trust company
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PaJ
IN RE BERBERICH'S ESTATE
461
were mingled wlili its own funds and became a
part of the general assets. Appellants have
failed to Identify the funds in such manner as
to entitle them to foUow and claim it as a tnist
fand to the exclusion of other creditors." This
conclusion has been affirmed by the Supreme
Court in opinion of Mr. Justice Frazer in
Comm. V. Tradesmen's Trust Co. (No. 1), 250
Pa. 372. 376, 05 Atl. 574.
We are not satisfied that this conclusion
reached by the Supreme Court works any in-
justice to the plaintiffs. We are of opinion
that they are not now entitled to a bill of re-
view. An appeal to this court for a rehearing
on the ground of the alleged after-discovered
evidence necessarily must have been refused,
for the evidence suggested as after discovered
was already on the record, and plaintiff must be
conduaively presumed to have known of ita
existence. Now, after the whole matter has
been considered and decided by our court of
last resort, we are powerless to grant further
relief. There are, perhaps, a thousand cred-
itors of the Tradesmrai's Trust Company whose
<daini8 are being held up because of the proceed-
ings for the distribution of the funds in the
hands of the receiver, and to permit the filing
of the bill of review at this late date nnder the
circumstances existing would be without prece-
dent, and would unnecessarily and improperly
interfere with the rights of otiier creditors, who
are not made parties to the proposed bill of
review.
Tbe court dismissed the bill. Plaintiffs ap-
pealed.
Argued before BROWN, C. J., and STEW-
ART. MOSCHZISKEK, FRAZEB, and WAli-
John G. Jobnaon and E. Spencer Miller,
both of Philadelphia, for awellants. Pax-
Km Deeter and Samnel M. Clement, Jr., both
of Philadelphia, for appellee.
PER CURIAM. The decree in this case Is
affirmed, at appellants' costs on the opinion
of the learned court below dismissing their
bilL
(2&7 Fs. 181)
In re BERBERICH'S ESTATE.
(Supreme Court of Pennsylvania. March 18,
1917.)
1. PUSDOES «=»56(4)— SaLB— NOTICK.
Hie pledgee of property before selling it to
answer for the default of the pledgor must give
notice to the pledgor in order to afford him op-
portunity to continue the pledge if he desires,
and upon coatinued default the pledgee may sell,
but only upon notice of sale so that tbe pledgor
may protect himself and his property by redemp-
tion or otherwise.
[Ed. Note.— For other cases, see Pledges, Cent
Dig. §! 157-159, 178, 179.]
2. Bbokeus ^=924(2) — Stockbbokebs — Mab-
oiK Transaction— Salb of Stock.
Where a stockbroker contracts to carry stock
upon margin, an agreement is implied that it
shall not be sold to prevent the exhaustion of
tbe margin until additional margin shall have
boen requested, and a reasonable time' afforded
for fumisbing it, and a sale of the stock without
notice to the owner is a breach of the broker^s
contract
[Ed. Note. — For other cases, see Brokers,
Cent Dig. f 19.] |
3. EeroFPEX $=394(1) — Salb or Stock — Ac-
quiescence.
The widow of a customer who had dealt with
a stockbroker on margins bad no standing in her
own right to interfere with the broker's sales of
the stock, and as the administratrix of the cus-
tomer and as against the broker who had ille-
gally converted the stock might stand quiet until
the broker demanded the balance due, as the
wrongdoer could not compel her election between
a ratification of bis act or a repudiation of it,
and hence was not estopped to complain of the
transaction, especially where the broker had not
been misled to his injury in reliance upon her
action.
[Ed. Note.— For other cases, see Estoppel,
Cent Dig. | 246.]
4. Attobney and Client «=»77— AtrraoRiTT
or Attobnky— Sale of Stock Pledged bt
Testatob.
An attorney for an administratrix, without
express authority to bind her or the estate, has
no implied authority to authorize a broker to
sell stocks pledged by the decedent without no-
tice to the administratrix.
[Ed. Note.— For other cases, see Attorney and
CUent, Cent Dig. fi 8»-90, 132, 136, 148, 149.]
Appeal from Orphans' Court, Philadelphia
County.
Kathryn Berberich, administratrix of the
estate of Herman Berberich, deceased, ap-
peals from a decree dismissing her excep-
tions to adjudication of the claim of William
Hastie Smith, Jr., & Co. against the estate^
Reversed, with a procedendo.
Argued before BROWN, C J., and MES-
TREZAT, POTTER, STEWART, and FRA-
ZER, JJ.
James J. Breen, of Philadelphia, for appel-
lant Frederick J. Knaus, of Philadelphia,
for appellees.
STEWART, J. EV)r sereral years prior to
July, 1914, WiUiam Hastie Smith, Jr., & Co.,
a firm of stockbrokers in tbe city of Phil-
adelphia, bad carried an account with one
Herman Berberich. The firm from time to
time purchased stocks and bonds on tbe tat-
ter's order, advandog their own money for
that purpose, and charging him with tbe
amount so advanced, plus their regular com-
mission and Interest The bonds and stocks
so purchased remained pledged in the hands
of the brokers as security for their advance-
ments and charges, together with whatever
margin might be deposited by Berberich pur-
suant to demand made by tbe firm for addi-
tional security against a declining market.
Under date of June 30, 1914, the Arm render-
ed a quarterly statement of account to Ber-
berich— ^the last one rendered — showing an
Indebtedness due from him of $56,806.17, for
which it held as security «iumerated bonds
and stocks purchased on his order. On 16th
of July following, inpon the order of Ber-
berich, the firm purchased for him certain
additional stocks increasing his indebtedness
to $5S,40e.l7, subject to a credit of $440 for
certain dividends collected by the firm, which
reduced the claim to $57,966.17. Thus the
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101 ATLANTIC EEPORTBB
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account stood when towards the end of July,
1814, the firm called on Berberich for addi-
tional margin. This demand he attempted to
comply with by mailing to the firm two
checks drawn by himself, one for $1,000, and
one for $2,000, against deposits ample to meet
the demand. These cb(H:k8 reached the firm
on Saturday July 25th, and were promptly
d^oslted. The day following, Sunday, Ber-
berich met his death In the surf at Wildwood,
N. J. On Monday, the two checks passed
through the clearing house. The one for $1,-
000 was paid. The other was refused by the
bank for the reason as written on the back,
"Maker deceased." On the 11th of August
following letters of administration on the
e&tate of Herman Berberich were granted
to his widow, Kathryn Berberich, the ac-
countant and appellant On the audit of her
account as stated by herself William Hastle
Smith, Jr., & Co., the above-named firm of
brokers, presented its claim as above indi-
cated, reduced by the $1,000 check which had
been paid, and demanded payment out of
balance in the hands of the administratrix.
The correctness of the account^ was not dis-
puted; that is to say, there was no conten-
tion that it did not correctly exhibit the sev-
eral stock transactions between Berberich
and the firm. The dispute arose out of trans-
actions on the part of the firm after the death
of Berberich. On the day following the death
of the latter, Monday, July 27th, there oc-
curred a rapid decline in stock values because
of the warlike situation abroad. The margin
demanded by Berberich not having been met
In full because of his sudden death, and being
apprehensive of a still further decline In mar-
ket values, the firm, without notice to any
one in Interest, proceeded to sell sufficient of
the pledged securities of Berberich to furnish
it with what it believed a reasonable margin
for its own protection. These sales made on
the day following Berberlch's death, while
furnishing sufficient margin to the brokers,
resulted in heavy loss to Berberlch's estbte.
Hie firm, by letter dated the same day ad-
dressed to the widow of Berberich, advised
her of the fact that they were carrying a
large amount of stock for her husband, that
he had sentl a check for $2,000 to be placed
to his credit which had been refused by the
bank on which it was drawn, and added:
"This reduced his credit with ua to such an
extent, and the stock market was ao panicky <»
account of the war scare that we felt it wise to
reduce his boldings, and go sold 1,100 shares
as per inclosed notice. It is well that we did
80, as the prices of stocks we sold are much low-
er to-night. As soon aa you are able to take
these matters up with us, we would be glad to
call upon you and explain the situation."
The stocks reported sold were Philadelphia
ESectric 100 shares. Lake Superior 000
shares, and Electric Storage 100 shares.
Two days thereafter values continued to de-
cline, and the firm sold the following addition-
al securities of Berberich, without notice to
any one In interest: Lake Superior 100 shares,
Electric Storage 200 shares, and Kansas
Southern 100 shares — and carried proceeds
to Berberlch's credit During the months of
September, October, and November follow-
ing, further sales were made without notice
to the administratrix of the estate, but <ft
which she was subsequently advised by the
firm. This left in the hands of the firm $10,-
000 in Lake Superior bonds and 775 shares
of Lake Superior stock. The total proceeds
of sales made amounted to $42,821.74. This
credited on Berberlch's account left a bal-
ance of Indebtedness of $14,144.43, for which
claim was made before the auditor. The
facts not being In dispute, on this presenta-
tion of them the auditor held: (1) That In
making the sales in July the claimants acted
within their rights and powers, they sold
only sufficient to protect themselves, instead
of selling out decedent's entire holdings; ; the
prices obtained were higher than those ob-
tainable during the rest of the year, and
had they waited longer greater loss would
have been occasioned; (2) the claimants im-
mediately notified the wife of the decedent
of the action they had taken, and if it was
not her duty as vrtdow to repudiate their ac-
tion, it certainly was her duty to do so as
administratrix after her appointment; (3)
that as to sales made after appointment, the
administratrix through her counsel waived
any necessity of notice by directing <daimants
to protect themselves as best tiiey could.
The auditor accordingly awarded to claim-
ants the full amount of their claim as pre-
sented. Exceptions having been filed the
case was heard by the court in banc, with
the result that the exceptions were dismissed
and the report of the auditor confirmed.
From this decree we have the present appeal
by the administratrix of the estate.
In the opinion filed by the court, while
there is no express dissent from the view
taken by the auditing judge in what we have
above indicated as the latter's first con<dn-
sion, namely, that in making the sales in
July the claimants acted within their rights,
there is, nevertbeless, a refusal to rest the
case on any sudi ground accompanied by this
qualified admission:
"If the rights of the parties depended simply
upon this question, we snould probably hold that
the stoclcs were unlawfuly converted, and the
claimants were liable for the consequent loss."
Inasmuch as we are of opinion that the
court should have held unqualifiedly that
these sales of stock were In law and fact an
illegal conversion of the same, and are un-
able to agree that the reasons assigned by
the court are sufficient in law to relieve tlie
claimants from the legal consequences in-
curred, a brief reference to some well-estab-
lished rules and principles will be here In
place. Reduced to its simplest terms, the re^
latlon to the parties to this transaction was
that of pledgor and pledgee. No special con-
tract between the parties touching the mode
or manner of conductinK the business that
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IN BE BERBEiaCH'6 ESTATB
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engaged them having been shown, it was nec-
essarily subject to common-law rules and
principles, and by these their recit)rooal
rights and obligations must be determined.
Though having certain property rights in
the things pledged, the pledgee had no right
of disposal except under well-defined condi-
tions; and, except as these conditions have
been fully met, any sale of the pledge by
the pledgee must be held to be unlawful con-
version of the property.
[1] One of these conditions requires that
before any sale be made to answer for any
default of the pledgor the pledgee shall give
notice to the pledgor or some one standing
in Interest with him, in order that opportuni-
ty may be afforded tiim to continue the
pledge if he may desire^ Upon continued
default the pledgee may sell, but even then
only upon notice that sale will be made, so that
opportunity be again afforded the pledgor to
protect himself and his property, if he can,
by redemption or otherwise.
[2] Where, as In the present case, there is
a contract to carry stocks upon margin, an
agreement, as part of the contract. Is Im-
plied, that such stocks shall not be sold. In
case there Is danger of the exhaustion of the
margin, until additional margins shall have
been applied for and a reasonable time afford-
ed for furnishing the same. A sale of the stock
without notice is a breach of the contract on
the part of the broker. Doubtless parties
may agree that the broker may sell without
notice when stocks falling in price show that
the margin does not cover the difference be-
tween current rates and the price paid, but.
In the absence of any snch agreement, it
wonld t)e a breach of good faith and common
honesty to allow the pledgor's property to be
sacrificed without giving him an opiwrtunity
to Increase his margin and hold the stock
for a favorable change In the market. This
Is said in Bitter r. Cnshman & Gignonx, 35
How. Prac. (N. T.) 284, and multiplied cases
from oar own books may be found of like
effect. We have cited the above case In this
connection more particularly because of what
follows the extract above given. The learn-
ed Jndge there concludes:
"I know it ia said that fluctuations in the stock
market are so sudden and unexpected that there
is not time to give notice; but these abrupt
transitions in the value of stocks are and have
been well known for many years, and shonld be
provided for by brokers and those with whom
they deal. If no snch provision is made, par-
ties must abide by the rules of law."
In Blspham'8 Eqnlty PL (8th Ed.) 369, It is
said:
"The rifdit to sell apon notice, however, is one
in the exercise of which a great deal of care is
required; and the pledgee may be held responsi-
ble if be does not strictly follow all the require-
ments of the law by which his rights are
fenced."
In Dlller r. Brnbaker, 62 Pa. 498, 91 Am.
Dec. 177, following Davis v. Funk, 39 Pa.
243, 80 Am. Dec: 519, and Sitgreaves v. Farm-
ers' Bank, 49 Pa. 359, it is expressly declar-
ed that the pledgor cannot apprc^riate the
pledge in satisfaction of the debt intended to
be secured at his option, unless In pursuance
of a contract to that effect, nor sell it with-
out giving notice to the pledgor of his inten-
tion to do so, in order that be may have an
opportunity to redeem it if he desire. To
the same effect is the late case of Sproul v.
Sloan, 241 Pa. 284, 88 Atl. 501, Ann. Cas.
1915B, 941. In the present case it is not pre-
tended that any notice whatever was even
attempted to be given. We need not delay to
consider whether Berberich was in actual de-
fault on July 27th when the sales were made,
with respect to the margin that had been
demanded of him. It may be conceded that
for the few hours, if so much, intervening
between the return of the $2,000 check and
the actual sale, he was technically In default
What right did that circumstance give the
appellee? None whatever but the right to
sell upon notice given. Instead of giving
such notice, or attempting to give It, the ap-
pellee, with the single purpose of providing
Itself with additional margin on a rapidly
declining market, precipitately threw the
pledged certificates upon the market and sold
them as It would have sold its own proper-
ty for which it was answerable to none but
Itself. The fact that Berberich was lying
dead at the time neither Justified nor ex-
cused such precipitate haste. What matters
it that notice to Berberich was made imprac-
ticable by his death? Such circumstance,
or any other happening that wonld interfere
with the pledgor observing the strict re-
quirements of the law, as said in the case
above dted, should be provided against by
the brokers and those with whom they deal,
and if no such provision be made, parties
must abide by the rules of law. A i^imlliar
rule is that, when notice Is required to be
given, if the party to be served cannot be
found, a notice delivered at Ills last known
place of residence is suffldsnt So it might
have been here, and .who can say that sudx
notice, had it been given, would not have ar-
rested the sale? However this may be, it
was the bonnden duty of the appellee to give
whatever notice a reasonable regard for the
rights of those in interest would have sug-
gested. Failing In this, sales made on the
27th and 29th of July must be held to have
been an illegal conversion of the pledged
property.
[3,4] Avoiding in a way this material in-
quiry, the learned court rests its afflrmance
of the auditing judge's report on purely equi-
table considerations: First, that it was the
duty of the widow, at least after she had
qualified as administratrix, to r^udiate the
transaction, and not having done so, she can-
not now claim that the sales were unlawful
and seek to hold the brokers for the highest
market value of the stocks thereafter, or the
market price at the date of the trial. The
opinion proceeds:
"She did nothing at all, and it would be in our
opinion very inequitable to allow her to set oft
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101 ATI/ANTIO REPOBTESE
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against thla claim damages which we calculate
would approximate $6,700."
Thla is to Impose on the widow and admin-
istratrix a duty which the law nowhere rec-
ognizes. In her own right the widow had no
standing to Interfere; as the legal repre-
sentative of the estate of the pledgor she had
a perfect right, as against one who had il-
legally converted the property of the estate,
to stand quiet until the latter made demand.
The wrongdoer was without standing to com-
pel her to make election between a ratifica-
tion of his wrongful act or a repudiation of
it. It is quite enough to know that no rati-
fication by her is alleged. We are not here
dealing with a question arising out of a con-
tract, but <»>e arising out of an illegal trans-
action.
Another consideration advanced by the
court is that:
"The widow's conduct was entirely inconsist-
ent with her present daim; for when shortly
after her appointment as administratrix one of
the claimant s firm saw her attorney in refer-
ence to the account and to a check of the de-
cedent's drawn before his death, but returned
from the bank by reason of bis death, the attor-
ney said in effect, 'It is up to you to protect
yourselves.' Naturally the brokers considered
that this remark was virtually a declination to
do anything to protect the account and an au-
thority to the brokers to act in the future as
they thought best, and we entirely agree with
the auditing judge that this was a waiver of the
notice of future sales. This was, moreover, at
tlie time when the attorney for the estate should
have given tlie brokers notice that they would
be held liable for their failure to give notice of
the prior sales. He who will not 8i>eak when he
should shall not speak when he would. The cir-
cumstances were such as to impose on the admdn-
iatratrix or her representative the duty in equity
to inform the brokers that they would be held
to strict accountability for what they had done."
To the doctrine here asserted we cannot
agree. Minds may difTer as to what might
fairly be understood from the remark of the
counsel to the appellees when he was called
upon; but, aside from that, it is of no con-
Bequence what he said. In his capacity aa
counsel mer^y he was without express au-
thority to bind the administratrix, or the es-
tate she represented ; nether had he any im-
plied authority arising out of the relation in
which he stood. The subject of the conversa-
tion had regard to a fixed right In property
of the estate, and over tliat he bad no con-
trol whatever. B^irthermore, It being a fixed
right of the estate — the right to notice of a
purpose to sell — It could only l>e waived up-
on consideration, and none is pretended. The
counsel was under no duty to speak out and
caution the appellee against further Illegal
acts on their part In connection with the
property of the estate, or disclose to them
what his advice to the administratrix would
be with respect to the earlier sales. We re-
peat, here is no room for the operation of
equity. Estoppel could not arise. There is
not a particle of evidence that appellees were
misled to their hurt by relying upon the rep-
resentations made by rither the administra-
trix or her counsel. What they did with the
stocks remaining on their hands from August
to November was Just what they had al-
ready done with the stocks sold in July; they
sold without notice and without any waiver
of notice, thereby making themselves liable.
"If a transaction is condemned under the force
of legal rales, it cannot receive a more favorable
consideration in a court of equity on account of
any hardship to particular parties." Bispham's
Equity PI. (8th Ed.) p. 59.
The case calls for reversaL With the data
before us that would enable us to determine
exactly what amount should be deducted
from the claimant's demand. In view of what
we have said as to the law, we might end
the controversy here; but we have not this
data, and it is possible that further testi-
mony wlU have to be taken to do exact Jus-
tice between the parties. We have BUffldent-
ly indicated what we regard to be the law
governing the case, and in order that the
case may l>e disposed of In accordance there-
with, we direct a return of the record, and
reverse with a procedendo.
It la ao ordered.
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COOMBS T. FESSEKDEN
465
OU Me. 804)
COOMBS et al. r. PBSSENDBN et aL
(Sninreme Judicial Gonrt of Maine. July 10,
1917.)
1. Deeds «=»1M(1)— Deuvebt — Pbesukf-
TIOIT FROM MANUAI. TBAKSrEK.
There is a presumption that when manual
poBsession of a deed passed from a son, the
crantor, to his mother, the grantee, both par-
ties intended to effect an immediate transfer of
the title in accordance with the terms of the
deed.
[Ed. Note. — ^For other cases, see Deeds, Cent.
Dig. H 574, 575, 581-683, 834.]
2. Deeds «=>208(1)— Deuvebt— Intehtion —
CONTBOI, Oir pBEStJMPTIOK— SdFFICIEXCT OF
Evidence.
In an action to recover realty, defendants
baaing title on a warranty deed from a son to
his mother, the delivery of which plaintiffs de-
nied, evidence held insufficient to overcome the
presumption that, when manual possession of
the deed passed from son to mother, both par-
ties intended to transfer title.
[Ed. Note. — For other cases, see Deeds, Cent.
Dig. H 625, 630.]
3. BviDEjroE *=9271(18)— Deliveht of Deed
— Sblf-Sebvino Decl&batioxb.
In an action to recover realty, defendants
daiming under a warranty deed running from
a son to bis mother, receipts for rent of the
demanded premises, given by the son after ex-
ecution of the deed, and an assignment to secure
rent, the mother's name not appearing in any
of the papers, and there being no evidence that
she ever saw them, or knew the manner in which
her son was dealing with the tenants, were
inadmissible to overcome the presumption of de-
livery of the deed arising from its manual
transfer ;_ for, though evidence of the grantor's
conduct in relation to the property conveyed by
bia deed ia admissible on the question of title,
the participation and knowledge of both parties
in and of such conduct must clearly bppear;
otherwise the evidence is self-serving and inad-
missible.
[Ed. Note.— For other cases, see Evidence,
Cent. Dig. { 1096.]
4. Afpkai. and Ebbob «a>1004(l)— iNBTBno-
KXOHS— HABMIiEaS EBBOB.
Where no legal evidence was introduced to
control the presumption that a deed was deliver-
ed to the mother, the grantee, by her son, with
intent to vest title in her to the premises de-
scribed, an instruction that the only question
to be considered was. Did the parties mean
that title was to pass or not? that there was no
question but that it was passed over as far as it
went, but was it intended to take effect as a
conveyance, was misleading and prejudicial to
the interests of one claiming under the grantee^
[Ed. Note.— For other cases, see Appeal and
Brror, Cent. Dig. i 4219.]
Exceptions from Supreme Judicial Court,
Androscoggin Comity, at Law.
Action by Madeline B. Coombs and oth-
ers against Cornelia O. Fessenden and oth-
ers. There was verdict for plaintltCs, and
defoidants except. EJxceptlons sustained.
Argued before CORNISH, C. J., and KING,
BIRD, HANSON, PHIIjBROOE, and MAD-
lOAN, JJ.
Oakes, Pulsifer k Luddea, of Auburn, for
plaintiffs. Ralph W. Crockett, of Lewlston,
for defendants.
MADIGAN, J. In a farmer trial of this
case the defendants recovered a verdict,
which was set aside by the law court 114
Me. 347, 96 Atl. 242. A second trial resulted
in favor of the plaintiffs, and the matter is
now before us on exceptions. 1!be plaintiffs
assert title to the demanded premises as the
heirs of William C. Coombs, who received
a deed of the same as the result of a parti-
tion between the heirs of John Coombs, the
father of William. The defendants' title Is
based on a warranty deed, in common form,
dated July 1, 1909, running from WllUam to
his mother, Marda Coombs, the delivery of
which the plaintiffs deny, thus raising the Is-
sue in dispute.
William died a few hours after the moth-
er, and we lack the benefit of any light they
might have shed on the controversy. The
attorney who drew the deed says he acted
at WUUam's request A first draft was un-
satisfactory to the mother, and a second
draft meeting with her approval was exe-
cuted and acknowledged by William, handed
by the attorney to William, who in turn
handed it to his mother. After her death
the deed was found In a trunk In which the
mother kept her papers.
[1,2] The decision Id Coombs y. Fessen-
den, supra, Is based on the refusal of instruc-
tions that the Jury might find the attorney's
testimony to be true and BtlU find for the
plaintiff on the question of legal delivery
of the deed, provided they were satisfied
from all the evidence in the case that al-
though the deed was physically transferred
from the grantor to the grantee, nevertheless
the parties did not intend that the title and
ownership of the property should immediate-
ly pass to Mrs. Coombs. A careful examina-
tion of the evidence In this case fails to over^
come the presumption that when the manual
possession of this deed passed from the son
to the mother, both parties Intended to ef-
fect an Immediate transfer of the title. In
accoirdance with the terms of the deed.
In the absence of oontroUlng evidence of
strong probative ftirce, the circumstances are
sufllclent to conclusively establish that the
deed was delivered with the intention of
passing the title to the premises demanded.
"When the grantor gives iriiysical possession
and control of the document to the grantee,
rither actually or constructively, or directly
states that he delivers the instrument wherever
it may be, and so puts it in the power of the
grantee to take it or does both of these Uiings,
and there is no proof of an intent not to trans-
fer the title, a ddivery complete in the first
instance is made." Beeves on Real Pn^erty, |
1110.
"Where a deed, with the regular evidence of
its execution upon the face of it is found in
the hands of the grantee, the presumption is
that it has been duly delivered." Ward et aL v.
Lewis et al., 4 Pick. (Mass.) 518.
"The production of a ixmd by the obligee from
his own possession also tended to riiow that it
had been delivered to him." Valentine v. Wheel-
er, 116 Mass. 478.
tCsoVoT other cases ne same toplo and KBT-NCUBER in all Ks7-Numb«red Digests and Indexes
101A.-30
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101 ATIiANTIG RBPORTBB
(Bte.
"If an nnrecorded deed of land ia found, at
the death of the grantee, in bis pocket book in
iiig posaession," the presumption ia that it was
"duly delivered to him." Butrick v. Ulton, 141
Mass. 93, 6 N. E. 563.
[3] To overcome this presoniptlon the
plaintiffs introduced several receipts for
rent of the demanded premises, given by Wil-
liam after the execution of the deed, also an
assignment to secure rent. The motlier's
name nowhere appeared in any of these pa-
pers, and there was no evidence that she erer
saw them or knew the manner In which Wil-
liam was dealing with the tenants. While
evidence of the conduct of the grantor in re-
lation to the property Is admissible on ques-
tion of title, the participation and knowledge
of both parties must clearly appear. This
evidence lacks the essential mutuality, and is
self-serving and consequently inadmissible.
"Receipts, bills of parcels, and other papers,
signed by one party to a suit, and offered by an
opposing party, are received, like other con-
tracts, as showing the declaration or engage-
ments In writing of the opposing party. But
they cannot be received, when offered by the
maker of them, unless there be proof, that they
have been in the hands or in some way connected
with the opposing party; and they are then
received as exhibiting his assent, or showing
his connection with the transaction." Boody v.
McKenney, 23 Me. 517.
"The rule of law is well settled that, after
a conveyance of real estate, the declaration of
the grantor in disparagement of his grant, made
in the absence of the grantee, are never admissi-
ble in evidence against the grantee." Qhase ▼.
Horton, 143 Mass. 118, 9 KB. 31.
"The declaration and acts of a grantor after
the completion of a sale have been held admis-
sible for the pnrpose of defeating the title,
which, by a solemn contract, he had passed to,
And perfected in, another." White t. Chad-
bourne, 41 Me. 149.
"The declarations of a supposed grantor" are
not to be received after his death as "evidence
against the party claiming under the deed."
BarUet v. Delprat, 4 Mass. 707.
"The rule that the acts and declarations of a
grantor, after he has divested himself of the
«8tate, shall not be admitted to impeach the
title of the grantee is well settled, and not to be
departed from." Winchester v. Charter, 97
Mass. 140.
Defendants' exceptions to the admission of
this evidence must therefore be sustained.
As a basis for a verdict this question was
submitted to the jury:
"Was the deed of William C. Coombs dated
July 1, 1909, intended by the parties to it to
take effect at that time as a conveyance of the
title of the land deacribed in It by the delivery
of it to the grantee?"
With this question and as explanatory of
the issue the presiding justice In bis charge
instructed the jury as follows:
"When it appears that there has been a de-
livery, that is, a manual delivery, from band
to band, of a deed, there arises a presumption
that the title passes; that is, that the parties
intended the elfect to be just what their acts
wonld indicate. But it is not a conclusive pre-
sumption; because deeds are delivered from par-
ty to party for various reasons, at various
times, without the parties intending at the time
to pass the title. They may intend to pass it
at some future time, but not then; that is, the
deed is passed over without intention on the
part of the parties to it that it shall take effect
then as a conveyance of the title. Sometimes
a man may make a deed, perhaps, and intend
dcliven with an intention that it shall take ef-
fect when he dies, or on the happening of some
condition, or upon the condition of payment,
and not to take effect otherwise, and delivery
of a deed, passing from hand to hand upon
condition, does not convey title. It must be
a delivery of the title from one to the other at
the time. Now, there being no question raised
that this deed was actually passed from William
U. Coombs, the sole and only question to be con-
sidered is: What was the intent of the parties?
Did they mean that the title was to pass then
or not?"
And also the following:
"There is no question but it was passed over,
as far as that goes, but was it intended to take
effect at that time as a conveyance?"
[4] While to the trained legal mind this
question and these instructions would pre-
sent no difflculties, we fear tliat they were
misleading to the jury, and therefore preju-
dicial to the Interests of the defendants;
for, as heretofore observed, no admissible
evidence was Introduced to control the pre-
sumption that this deed was transferred to
the mother with the Intention of thereby
vesting In her the title to the demanded
premises.
"It is indispensable to the delivery of a deed
that it shall pass beyond the control or dominion
of the grantor. Otherwise it canjiot come right-
fully within the power and control of the gran-
tee. Their interests are adverse, and both can-
not lawfully have control over the deed at the
same time. The grantee does not necessarily
acquire the right uie moment it leaves the pos-
session and control of grantor, but he cannot
have it before. Neither can the grantor transfer
his property after his decease by deed, l^e
statute of wills or of descent then govern all
property not disposed of during the hfetime of
the owner. To be sure a freehold estate may
be conveyed to commence in futuro, when it is
so declared in the deed (Wyman v. Brown,
50 Me. 1.S9), and the grantor may reserve full
power and control over the land thus conveyed
during his natural life (Drown v. Smith, 52
Me. l41), but not over the deed." Brown ▼.
Brown, 66 Me. 318.
"So far as die grantor is concerned, any acts
or words, • • • whereby he In his lifetime
parts with all right of possession and dominion
over the instrument, with the intent that it shall
take effect as bia deed and pass to the grantee,
constitute a delivery of a deed of conveyance;
and that nothing less will suffice." Brown ▼.
Brown, 66 Me. 81&
A father assigned certain mortgages to his
son, with instructions that In case he died
to pnt them on record at ooce. The son
placed them in a safe to which he and his
father both had access; the fattier continu-
ing to collect the interest on the mortgage
notes. The conrt says:
"We are aatisfled that the transfer of the
property was not to take effect, until after the
father's death. As this is contrary to the stat-
ute of wills, the assignments are to be treated
as nullities" ShurtleS v. Francis, 118 Mass.
154.
"To make the delivery good and effectual, the
power of dominion over the deed must be parted
with." Cook V. Brown, 34 N. H. 460.
Hubbard v. Greeley, 84 Me. 340, 24 Atl.
709. 17 L. R. A. 511, Is both clear and exhaus-
tive:
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COOMBS T. FESSENDEN
467
"The antborities all tigne that a deed cannot
be delivered directly to the grantee himself, or
to hig agent or attorney, to be held as nn es-
crow ; that if such a dc^very is made, the
law will give effect to the deed immediately,
and according to its terms, divested of all oral
conditions. The reason is obvious. An escrow
is a deed delivered to a stranger, to be delivered
by bim to the grantee upon the performance of
some condition, or the happening of some con-
tingency, and the deed takes effect only upon the
second delivery. Till then the title remains
in the grantor. And if the delivery is in the
first instance directly to the grantee, and he
retains the poesession of it, there can be no
second delivery, and the deed must take effect
on account of the first delivery, or it can never
take effect at all. And if it takes effect at all,
it must be according to its written terms.
Oral conditions cannot be annexed to it. It will
therefore be seen that a delivery to the grantee
himself is utterly inconsistent with the idea of
an escrow. And it is perfectly well settled by
all the authorities, ancient and modern, that an
attempt to thus deliver a deed as an escrow
cannot be successful; that in all cases where
such deliveries are made the deeds take effect
immediately and according to their termor di-
vested of all oral conditions. • • •
"The law reasonably provides • • • that
the instrument delivered shall be conclusive with
respect to its contents and the intention of the
parties, and in the same manner, and in view
of the same considerations, that the act of de-
livering the instrument shall be equally con-
clusive; that the danger to be apprehended
from fraud and false swearing, as well as from
the infirmity of human memory, are as great
in the oae case as in the other; that if a con-
dition could be annexed to the delivery of a
deed, when made to the obligee himself, or to his
agent or attorney, the very essence of the trans-
action would be left to depend on the memory
and tnithfulnem of the bystanders; and that
there is manifest wisdom in the rule that In
such transactions the law will regard, not what
is said, but what is done."
"It is easy to see," said the court. In Miller
V. Fletcher, 27 Grat (Va.) 403, 21 Am. Rep.
856, "that the most solemn obligations given
for tbe payment of money, are of but little
value as secnrltles if tfaey may at a future
day be defeated by parol proof of conditions
annexed to the delivery of tbe Instrument,
and never performed," and that a doctrine
of this kind would, perhaps, be still more
mischievous. If applied to deeds of real es-
tate; tbat if snch a doctrine should prevail
the title of the grantee wonld be liable to
be defeated at any time by evidence of non-
perfonned parol conditions annexed to the
ddlvery of the deed, and in such cases there
would be no safeguards against perjury or
tbe mistakes of the "slippery memory," and
all titles would be as unstable as sands be-
fore the seashore.
Hill V. McNidiol. 80 Me. 20&, 13 Atl. 883,
is an instance where the history of the deed
and the conduct of the parties subsequent to
the date of its supposed deliveiy absolutely
negative any intention of the parties to de-
liver tbe deed and thereby transfer the title.
As is said in that case:
"An intention that it shall be a delivery must
exist in tbe minds of both parties."
One Abner Hill was conducting, with his.
SODS, a large business. In 1860 and 1S61 he
executed a deed of certain property to one of
bis sons, Monroe Hill, who in 1862 executed a
deed of the same premises to bis mother,
Elizabeth Hill. The latter deed was never
seen or heard of until within a few days after
Monroe Hill died when It was taken from a
drawer in a bureau at the Hill house, where
Monroe lived with his parents, and hurriedly
sent by special messenger to the registry of
deeds. It appears that both Abner and Mon-
roe HIU kept papers and transacted some
business in this house. There was no evi-
dence In the case of any previous possessioa
of the deed by Mrs. Hill more than a pre-
sumption arising from her possession at the
time she sent the same for record in 1867.
The evfdence In this case of Mrs. Hill's con-
nection with this property, subsequent to-
transferring the deed from Monroe to her, of
conveyances In which she Joined subsequent
to the date of such deed, which are absolutely
inconsistent with any claim of title by her,
was BO strong that It was considered by the
Jury and the court as absolutely disproving
any Intention of the parties to pass any title
from Monroe to his mother by the deed, nn-
der which she asserted title. The question
of intention, which is the essential element
of a valid effectual delivery, is a matter of
evidence, and In Hill v. McNlchol the evi-
dence absolutely disproved any such inten-
tion.
In this case, however, as already stated,
we find no evidence to show that both grantor
and grantee did not intend an effectual valid
'delivery of the deed from tbe son to tbe moth-
er. The testimony of the attorney clearly
shows it. Tbe deed was found In her papers,,
and there is no admissible evidence in the
case to disprove It WhUe a deed might pass
from the manual possession of the grantor
to that of tbe grantee for some temporary
purposes, such as examination or as the basis
for survey, or a legal opinion as to tbe title,
there is in such cases no intention of delivery
for the purpose of passing title, and neither
party could claim a delivery. In this case,
however, there is no such evidence, and there
Is no evidence to rebut the presumption aris-
ing from the mother's possession or to dis-
prove the testimony of tbe attorney who wit-
nesses the execution and delivery of the in-
strument. As we feel tbe question submitted
and tbe instructions tended to cloud the real
issue in the minds of the Jury and to divert
their attention from the salient points of the
evidence and the law applicable to tbe case,
the defendants' exceptions must be sustained..
We do not feel it necessary to discuss the re^
mainlng exceptions.
Exceptions sustained.
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468
101 ATLANTIC REPOETEE
(Mo,
(US Me.
299)
FARNHAM
T. CLIFFORD.
(Supreme Judicial Ck>art of Maine. Joly 28,
1917.)
1. Masteb and Sebvawt «=>330(3)— Evidence
OF Relation— Sufficiency.
In an action for pergonal injuriea alleged to
have been sustained by plaintiff in a collision
with defendant's automobile, evidence held to
warrant finding that defendant's son was em-
ployed in his father's business while driving the
automobile at the time of the accident.
[Ed. Note. — For other cases, see Master and
Servant, Cent Dig. { 1272.]
2. Evidence <S=3265(10) — Admissions
Against Interest — Failttbe to Contra-
dict.
Where, after evidence as to defendant's ad-
mission of his liability, he took the stand and
did not contradict or explain the testimony, the
jury was authorized to find that he knowingly
made the admission and that it was true.
[Ed. Note.— For other cases, see Evidence,
Cent. Dig. f 1038.]
8. Appeal and Ebbob 9s»1002— Findings of
JoBT— Review.
Where the testimony as to the permanency
of the injuries was evenly balanced, it was a
question for the jury as to the weight to be giv-
en such testimony, and the appellate court will
not review their findings.
[Eld. Note.— For other cases, see Appeal and
Error. Cent. Dig. {§ 3935-3937.]
Exceptions from Supreme Judicial Court,
Androscoggin Ck)unty, at Law.
Action by Anna R. Fambam against John
D. Clifford. There was a verdict for plain-
tiff, and the case Is before this court on a
motion for a new trial and upon exceptions.
Motion and exceptions overruled.
Argued before SAVAGE, G. J., and C»R-
NISH, KING, BIRD, HALEX, and MADI-
OAN, JJ.
McGillicuddy & Morey, of Lewlston, for
plaintiff. Andrews & Nelson, of Augusta, for
defendant.
BALET, J. An action os tbe case for per-
sonal Injuries alleged to hare been sustained
by the plaintiff June 13, 1914, as a result of
a collision of the carriage in which she was
riding with the automobile of the defendant
The case was tried at the September term,
1916, in Androscoggin county, and the Jury
returned a verdict for the plaintiff for the
sum of $3,747.69, and the case Is before this
court upon a motion for a new trial and up-
on exceptions.
At the time of the accident the defendant
was llTlng in the dty of Lewlston. The
family consisted of himself and wife, two
boys and two girls, the sons being more than
21 years of age and practicing lawyers in the
city of Lewlston. The defendant was the
owner of an automobile, which he had pur-
chased for the plea.sure of himself and family
and which the family had permission to talce
and use whenever they so desired. On the
evening of the accident the defendant was
not In town, and on that evening one of his I
sons, who was living with him as a member
of his family, took the car, without any ex-
press permission as far as positive testimony
goes, and while operating the automobile did
it so negligently that it collided with a team
in which the plaintiff was riding, about three
miles out of Lewlston on the road to New
Glouce.ster. As a result of that collision, the
plaintiff was injured, and brings this action
against the defendant
It is the contention of the attorney for the
defense that there Is no evidence whatever
that John D. Clifford, Jr., the son who was
driving the automobile at the time of the
accident, had ever acted as chauffeur for
his father, or had ever driven for any other
member of his father's family, and that there
is an entire lack of evidence as to whether
he was out on business or pleasure the night
of the accident The motion and exceptions
practically go to the same proposition, that
there is no evidence in the case that the son
was employed In his father's business while
driving the machine at the time of the ac-
cident; that It was for bis sole pleasure;
that the relation of master and servant did
not exist; that such relation cannot be In-
ferred from the ownership of the car; and
that, although it may have been the business
of the father to furnish an automobile for
the use of bis family, yet there is no evi-
dence in the case that the son was so iising
It, or for what purpose he was using It ; that
It does not appear sufficiently that be was
performing the business of his father, or
that the relation of master and servant
existed. The defendant testified that the son
did not own the auto, and never did ; that he
himself was In absolute control of the ma-
chine; that nobody else had the control;
that its control never passed from him ; that
he bougbt the machine for the pleasure of
himself and family; that John D., Jr., the
son, had the right to take the machine out
on any pleasure ride that be might wish;
that he did not have to ask iwrmission ; that
he bought It for the family's pleasure to take
it when they liked, and he could take the ma-
chine that nigbt Just as he had always
taken it, without asking; and that, aside
from the ownership of the machine, John had
the right to the use of it just as he pleased.
[1,2] If the evidence stopped there. It may
be that the position of the defendant's coun-
sel would be sustained ; but there was In the
case evidence that authorized the juiy to
find that, at the time the defendant's son
was using the machine, he was either doing
it as the agent or servant of the father, or
n<!ing it in the defendant's business, for the
defendant told the husband of the plolntUT
"that bis car he bad bought for the pleasure
of his family and for business; that they bad
a right to take It whenever they saw fit with-
out asking," and he furthermore told blm
"so far as the liability extended he was re-
sponsible." That was a direct admission of
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liEMBO V. DONNEIiL
469
facts essential to estaUlsh Ms legal liabili-
ty, and, if the defendant's position Is sound,
then tbat admission covered the sltnation
which defendant's counsel vtrges was neces-
sary to exist for defendant to be charged.
After the aeddent, with full knowledge of the
facts, he admitted his liability. Upon the
stand he did not deny he so admitted; but
leaves it for his coxjnsel to argue, wilhout ex-
planation, why the admission was not true.
The admission of the defendant was open to
explanation and contradiction. It was sub-
ject to rebuttal, explanation, and comment,
and the fact that the defendant was a wit-
ness In his own behalf, after the testimony
had been given as to his admission of his lia-
bility, and did not contradict or explain the
statement, but allowed it to pass as true and
unchallenged, authorized the Jury to find
that he knowingly made the admission, and
that his admission was true. As stated in
Robinson v. Stuart, 68 Me. on page 62:
"The statement and admissions of Southard,
aa testified to by the plaintiff, not bavinc been
denied or in any way modified, moat be taken
as tme."
The defendant having admitted bis liabil-
ity, and when a witness in his own behalf
not having explained or modified his admis-
sion, it is useless to discuss the rights of the
parties upon the theory that facts existed
that the defendant, by his admission, shows
did not exist
[S] The motion also asks that the verdict
be set aside t>ecau8e the damages avi^arded
by the Jury are excessive. There is no ques-
tion but that the plalntifF was severely in-
ured by reason of the accident, and that she
'wae taken to a hotel and remained there
aome three weeks, and that she has been un-
der medical treatment ever since. There is
a dispute as to the nature of her injuries and
•whether she will ever recover or not ; but
tbere is no question but that she was injur-
ed as dalmed, and that stie had not recov-
ered at the time of the trial. The plaintifT
produces three eminently respectable physi-
cians, including the physician who treated
ber from the time of the injury to the time
of the trial, who have made examinations,
and they all give an opinion which. If believ-
ed, authorized the Jury to find that the wo-
man received injuries from which she will
never recover. Upon the other hand, the de^
fense produce three eminently respectable
physicians who admit that, at the time of
tbe trial, the plalntlfC was suffering from the
apparent effects of the injury received at the
time of the accident; but they gave it as
tbelr opinion that she is not suffering from
tbe same injury that the physicians for the
plaintiff give their opinion she is suffering
from, and that she will in a short time prob-
ably recover from the effects of the injury.
The physical condition of the plaintiff was
one of tbe issues submitted to the Jury, and
«re have no right to say that the testimony
of the three physicians upon one side or the
other should be weighed differently than the
Jury found it. They were authorized to find
that the testimony of the physicians for the
plaintiff outweighed the testimony of those
for the defendant; and if, in their opinion,
the testimony of the defendant's physicians
outweighed the testimony of the physicians
of the plaintiff, they bad the right to so find.
But, with tbe testimony so evenly balanced
upon the question of the permanency of the
injuries, it was a question for the Jury as to
the w^ht to be given the testimony, and we
have no right, under the circumstances, to
disturb their finding and the mandate must
be:
Motion and excepttona overruled.
(US He. SOS)
LEMBO V. DONNELL.
(Supreme Judicial Court of Maine. Aug. 1,
1917.)
ABOBTION «=>16 — ClVH, LlABIUTT — EiXCEB-
8IVB DAUAOEa
Plaintiff broui^t an action for damages for
an illegal operation performed by defendant up-
on plaintiff's wife to produce a miscarriage.
The wife became infected with blood poisoning
as a result of the operation, and became desper-
ately ill, remaining in the hospital seven weeks,
durmg which time ten operatioDs were perform-
ed. She had recovered only in part at the time
of the trial about six months alter she left the
hospitaL There was evidence from which the
jury might have found that plaintiff's actual
disbursements and liabilities necessari^ incur-
red amounted to substantially $600. Beld, on
motion for new trial, that a verdict of 1881.58
could not be regarded as excessive.
On Moticm from Supreme Judicial Oonrt,
Androscoggin County, at Law.
Action by Emilio K. Lembo against Charles
K. Donnell. The Jury returned a verdict for
plaintiff, and the case is now before the law
court upon a motion by defendant for a new
trial. Motion overruled.
Argued before CORNISH, 0. J., and
SPEAR, KING, BIRD, HANSON, and MADI-
GAN, JJ.
Newell & Woodslde, of Lewlston, for plain-
tiff. Taacua Atwood, of Auburn, for de-
fendant.
PER CURIAM. Action on the case, where-
in it is alleged that the defendant performed
an illegal operation on the plaintiff's vriie
to produce a miscarriage, and thereafter neg-
ligently and unskillfully treated her, where-
by the plaintiff was put to large exi)ense for
nursing, medicine, and medical attendance
for her, and was deprived of her companion-
ship and services for a long space of time.
Upon trial tbe Jury returned a verdict of
$881.58 for the plaintiff, and the case is now
before the law court upon a motion by the de-
fendant for a new trial, based upon the alle-
gations that the verdict is against the weight
of the evidence and that the damages award-
ed are excessive.
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470
101 ATIANTIO RBPORTEK
(Me.
We have examined and studied the evi-
dence with care, and we are by no means
satisfled that the finding of the Jury in the
plaintiff's favor was erroneons. Whether
they found against the defendant upon both,
or only upon one, of the allegations upon
which the action Is based this court cannot
now determine; but that Is Immaterial, for
we think the evidence Is abundantly sufficient
to Justify the Jury In finding that both of
those allegations were established.
Neither Is It made to appear to the oonrt
that the damages awarded are excessive
The plaintiff's wife became Infected with
blood poisoning as a result of the criminal
operation on her. The defendant attended
her for about four weeks following the opera-
tion. Under his treatment she became des-
perately 111, and as soon as another physician
was called she was removed to a hospital,
where her case was diagnosed as almost hope-
less. She remained In the hospital seven
weeks, during which time ten operations were
performed to remove pus from different parts
of her body. She had recovered only tn part
at the time of the trial, about six months
after she left the hospital. The evidence
shows that the plaintiff was put to large ex-
penses for nursing, medicine, and medical
and surgical services in an effort to save
his wife's Ufe and to restore her to health as
much as possible. The Jury may well have
found from the evidence that his actual dis-
bursements and liabilities necessarily incur-
red on that account amounted to substantially
$600. In view of that fact, and also that the
plaintiff was deprived of the services of his
wife for a long space of time, and that be
suffered great anxiety and distress of mind
on account of her serious illness, an award
of $881.58 damages In his favor cannot be re-
garded as excessive.
Motion overruled.
Judgment on the verdict.
(lie M*. G04)
SPOFFOBD V,
BIOCFORD.
(Supreme Judicial CJourt of Maine. Aug. 1,
1917.)
Nsw Tbiai. 4=>71— Confuotiko E>vidki«ce.
There being a mere issae of fact and con-
ffictinK evidence, and the Jury not manifestly
erring in deciding auch issue, new trial wiU
not be granted.
[Bd. Note.— For other caaea, see New Trial,
Gent. Dig. i§ 144, 145.]
Om Motion from Supreme Judicial Court,
Androscoggin (Jounty, at Law.
Action by Isaac N. Spofford against Hor-
ace Blckford. Verdict for defendant, and
plaintiff moves in the law court for new
trial. Motion overruled.
Argued before CORNISH, C. J., and
SPEAR, KING, BIRD, HANSON, and MADI-
GAN, JJ.
Newell & Woodside, of Lewlston, for plain-
tiff. McGlIUcuddy & Morey, of Lewlston,
for defendant.
PEJR CnjRIAM. Action of replevin for a
black horse. The verdict was for the de-
fendant, and the case comes before the law
court upon the plaintiff's motion for a new
trial.
It is imdlsputed that the defcindant pur-
chased the horse In question of the plaintiff
and fully paid for It Thereafter he told the
plaintiff that the horse was too young or
too quick, and the parties then made some
arrangement whereby the defendant left the
black horse with the plaintiff and took from
him a sorrel horse. A few days later the de-
fendant returned to the plaintiff the sorrel
horse and took the black horse home. Tbe
plaintiff's claim at the trial was that the de-
fendant resold the blade horse to him In ex-
change for the sorrel horse. He testified that
when the sorrel horse was driven beck to bis
place by the defendant, a few days after thci
exchange, it was too sick to be driven, and
that It was left In his stable tot that reason,
the defendant borrowing the black horse to
drive home with. The sorrel horse did not
recover from that sic^ess, but dlM In a few
days at the plalntUTs stable.
On the other hand, the defendant contend-
ed that the atrangement betwe^i him and
the plaintiff was that he should take tbe
sorrel horse on trial for a few days, and it
It satisfied him he was to keep It In place
of the black borse; that upon trial the sor-
rel horse proved wholly unsatisfactory, and
he returned It to the plaintiff and took his
black horse) home.
The issue In the case was one of tact,
whether the d^endant resold the black horse
to the plaintiff in exchange for the sorrel
horse. Upon tliat Issue the testimony was
conflicting. It will serve no useful purpose
to restate it here. If the Jury accepted the
testimony of the defendant and his witnesses,
the verdict was Justified. An examination of
the evidence does not convince the court that
the Jury manifestly erred In deciding the
Issue of fact involved between the parties In
the defendant's favor, and accordingly the
motion for a new trial must be overruled.
So ordered.
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UEDOTF y. FISHER
471
<]8r Pm. UO
MSDOBT T. STSHBB et aL
<SupTeme Conrt of Pennsylvania. March 12,
1917.)
1. OONTBACTS «=»105— BorLDIWO CONTRACT—
Abcbitect — Knowisdob or Statutobt
RXGULATIORB.
Plaintiff holding himself out as an architect
•waa particularly charged with knowledge of
the statutory regulations and restrictions gov-
erning the erection and use of buildings.
[Ed. Note.— For other cases, see Contracts,
Cent Dig. $! 477, 478, 480-497.]
2. CONIBACTB <S=>106 — IlXEOALlTT — BKCOV-
KBT.
An architect, suing for services in the prepa-
ration of plana and specifications for a build-
ing under a contract with defendants, which
building was to contain a motion picture theater
and also dwellings, bathhouse in cellar, and
stores, in violation of Act Juno 9, 1911 (P. t>.
746), regulating the construction of buildings
tised for exhibition of moving pictures, was a
party to an agreement to do an unlawful act,
and could not recover.
[Hid. Note.— For other cases, see Contracts,
Ont Dig. IS 477, 478, 480-497.]
Api)eal from Court of Common Pleas, Phll-
adelpbla County.
Assumpsit by Barnet J. Medoff, doing bnsl-
ness as Medoff & Son, against Joseph Flsh-
«r and others for services rendered by plain-
tiff as an architect. Verdict for plaintiff for
$2,247, and judgment tbereon, and defendants
appeaL Reversed.
Argued before BEOWN, O. J., and POT-
TER, MOSCHZISKER, FBAZEB, and WAL-
MNG, JJ.
Julius C. Le-vl, of Pblladelphia, tor appel-
lants. Bernard Pockrass and Harry A. Mack-
ey, both of Philadelphia, for appellee.
MOSCHZISKER, J. The plaintltr, an ar-
-<diltect, sued to recover for professional serv-
ices ; he secured a verdict, upon which Judg-
ment was entered; tlie defendants have aiH
pealed.
In his statement of claim, the plaintiff
avers that he was employed by defendants
"to prepare and draw up plans and specifl-
caUons and to supervise the operations of
a building which the defendants were about
to erect"; that "said building was to con-
tain a moving picture theater, Russian and
Turkish baths, stores and dwellings"; fur-
ther, that he had performed the services of
hla employment as far as he could, but, aft-
er securing bids from various contractors,
the defendants had refused to proceed with
the construction of the building; finally,
plaintiff claimed a fixed amount for commis-
sions upon what he alleged to be an agreed
basis, less an admitted payment on account.
The defendants relied upon several de-
fenses, only one of which need here be con-
sidered. In the course of the trial, when
another architect, called as an expert wit-
nem by the defendants, was upon the stand,
the conrt would not permit blm to explain
that the plans in qnestlon contravened the
law, hence, could not be used, and therefore
were of no monetary value. Counsd tat
the plaintiff objected to the offer upon the
ground that, whether or not the plans were
within the law had "nothing to do with the
case," since bis client "contracted to do
what defendants wanted." Although this
particular testimony was ruled out, yet all
the evidence in the case shows that the
various parts of the structure which defend-
ants contemplated erecting were so connect-
ed as, within the meaning of the law, to con-
stitute a single building, containing a moving
plctnre theater and several stores and dwell-
ings, the basement under all to be fitted for
and occupied as a public bathhouse.
The act of June 9, 1911, P. L. 748, "to reg-
ulate the construction, maintenance, and in-
spection of buildings used for the exhibition
of moving pictures, in all cities of the first
class," provides, inter alia, by section 3,
that "no such building hereafter erected
* • * with a seating capacity of five hun-
dred or less, and no portion of any such
building, shall be occupied or used as a
dwelling or tenement house, apartment
house, hotel, or department store;" further
that "such restriction shall relate and be ap-
plicable, not only to the portion containing
the auditorium, but also to the entire struc-
ture or building used for moving picture
exhibitions, or In connection therewith;" by
section 4, that "no such building • • •
for the exhibition of moving pictures, with
a seating capacity of over five hundred, and
no portion of any such building, shall be
used for any other purpose;" and, by sec-
tion 8, "any person or persons who shall
• • • violate any of the provisions here-
of, shall be guilty of a misdemeanor," pun-
ishable by flue or imprisonment
On the element of seating capacity, there
is some evidence, though not very definite,
that the auditorium in this case was to have
"not more than 500 seats" ; but, even at that,
the building, as planned, would clearly have
contravened the plain terms of the statute.
Had the structure been erected and put to
the uses Intended, the owners would have
been guilty of a misdemeanor.
[1, 2] This being the case, what Is the sit-
uation of the plaintiff? The principle that,
since one may change his mind before the
actual perpetration of a forbidden act, the
mere intention to commit a wrong is no of-
fense has no proper application under the
circumstances at bar; for even though, attn
er an erection of this building, the defend-
ants might not have put it to any forbidden
use, yet that fact does not change the status
of the case so far as the plaintiff is con-
cerned. The latter's position, therefore. Is
simply this: All men are supposed to know
the law, and, further, one holding himself
out as an architect is particularly charged
with knowledge of the statutory regulations
and restrictions governing the erection and
•For otter oasM sm mudo topic and KBT-NtflCBBR la all Keyr-Numbend DlsMti and lodeasa
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472
101 ATIANTIO REPORTER
(Pn.
ase of bufldlngs: therefore we must assume
both the plaiutlfF and defendants knew that
the uses to which the latter contemplated
putting the proposed structure were forbid-
den under a criminal penalty by the statutes
of Pennsylvania. Thus, it may be seen, we
have the plain case of three men, the defend-
ants, intending to do a forbidden thing, em-
ploying a fourth, the plaintiff, to assist
them in making plans to carry out their un-
lawful purpose — ^in other words, a combina-
tion which could be indicted as a criminal
conspiracy. Of course, no contracts or en-
gagements entered into under such circum-
stances win be enforced at law.
The plaintiff showed this unlawful com-
bination In making out his case, and, in
fact, it would have been impossible for blm
to avoid doing so; hence the law wlU leave
him just where It finds him, and tbe court
below should have so ruled. As already in-
dicated, the plaintiff's objection to defend-
ants' offer of testimony shedding, or tending
to shed, further light upon the issue under
consideration was based upon a theory of
law which should not have been sustained;
but since the case falls without regard to
tills rejected testimony, It is necessary to
pass upon only the seventh assignment of
error, which complains of the trial judge's
refusal to give binding instructions for the
defendants.
The assignment last referred to Is sustain-
ed, and the judgment is reversed.
(2&7 Pa. 172)
CITT OF PHITiADELPHIA v. CONWAY.
(Supreme Court of Pennsylvania. March 19,
ldl7.)
1. MUHIOIPAX COBPOBATIONS «=33429 — OpEN-
INO OF STBEETS— ASBEBSUKNT BENEFITS.
Where property lies at the comer of un-
opened intersecting streets, benefits may be
separately assessed for tbe opening of tlie
street upon which but a small part of the prop-
erty abuts, if the entire property is benefited by
the improvement.
[Ed. Note. — For other cases, see Municipal
Corporations, Cent Dig. f 1038.]
2. Municipal Cobpobationb «=>429— Open-
ing OF STBESI — ASSESBUENT — ASnTTINe
OWNEB.
An ordinance for tbe opening of F. street
from the north to W. street and for the opening
of W. street from F. street to another street
provided for tbe opening of F. street to the
south side of W. street, so that property run-
ning to the middle of W. street abutted on F.
street as opened for half the width of W. street,
and was properly assessed for benefits.
[Ed. Note.— For other cases, see Municipal
Corporations, Cent. Dig. { 1039.]
8. Tbiai. «s9252(1) — iNSTBUcnoHS — Ab-
STBAOT.
The court properly refused to charge that
benefits from a street opening, if allowed, should
be restricted to such charges as are peculiar
to an abutting owner, and did not include those
common to the public; such instruction being
abstract and inadequate.
[Ed. Note. — For other cases, see Trial, Cent.
Dig. IS 596, 612.]
4. Municipal Cobpobationb «=»428— Pdbuc
Ikpboveuentb— Assebshbnt of Benefits.
A general advance in value in the neighbor-
hood is no ground for assessing benefits if the
property does not border on the improvements.
[Ed. Note.— For other cases, see Municipal
Corporations, Cent Dig. {$ 1038, 1043.]
5. Municipal Coepobations €=>467— Public
ilfprovementb — assessment of benefits.
Where property adjoins the improvement
and becomes subject to assessment for benefits,
the rule in estimating damages and l>encfits is
the difference in tbe market value as a whole
before and after the improvement.
[EA. Note — For other cases, see Municipal
Corporations, Cent. Dig. $1 1110, 1111.]
6. Municipal Cobpobations «=>554— Stbeet
Opening — Assessment of Benefits.
In a proceeding for the determination of
benefits^ from a street opening, where defend-
ant claimed that remote and speculative bene-
fits, or benefits accruing from the increased
business the opening of the street might bring
to the owner, should not be considered, it was
not reversible error to qualify the contention
by charging that the jury should be satisfied if
the advantiige accrues vrithin a reasonably short
time or a "relatively immediate" time, as that
term did not permit the jury to depart from
the general rule by which damages are meas-
ured by the difllerence in market value before
and after the improvement.
7. Municipal Cobpobations 9=»5.53— Stbeet
Opening — Detebmination of Benefits —
Evidence.
In such proceeding the admission in evidence
of the plan of the property used by the viewers
and attached to their report, wideh did sot
show the full area of the land, was not re-
versible error, where the deficiencies in the plan
were supplied by admission of counsel for de-
fendant, by a deed of tbe entire property and
further description with the acreage given by
defendant himself.
[Ed. Note.— For other cases, see Municipal
Corporations, Cent. Dig. { 1262.]
&, Municipal Cobpobations i3=3553— Asbess-
uent of Benefits— Evidenck—Repobt of
Vie WEBS.
Where street opening proceeding were be-
gun prior to passage of Act April 2, 1903 (P.
L. 124), makmg viewers' reports prima facie
evidence of benefits sustained, the report of
viewers was not admissible in evidence.
lEA. Note. — For other cases, see MnnicipBl
Corporations, Cent. Dig. { 1262.]
9. Appeal and Ebbob «=s>1050(1)— Habulbbs
Ebbob— Admission of Evidence.
Error in the admission of the report of
viewers was not ffround for reversal, wher«
such ground of objection was not relied upon
at the trial, and where there was evidence of
the fact set out in the report, and where th«
jury wero instructed that the report was not
binding upon them.
[Ed. Note. — For other cases, see Appeal and
Error, Cent. Dig. Si 1068, 1069, 4153, 4157.]
10. Appeal and Ebbob «=9728(3) — Absion-
MENTS OF Ebbob— StwFiciKNCT.
Assignments of error to overruling objec-
tions to certain questions are defective, where
they fail to set forth the answers to tbe ques-
tions.
[Ed. Note.— For other cases, see Appeal and
Error, Cent. Dig. { 3012.]
Appeal from Court of Common Pleas, Pblla-
delphia County.
Condemnation proceeding by the City of
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Pa.)
CITY or PHILADELPHIA v. COKWAY
473
Philadelphia against WUllam Conway, with
appeal from award of Jury of view assess-
ing benefits for the opening of certain streets.
Judgment for the plaintiff, and defendant
appeals. Affirmed.
Argued before MBSTREZAT. POITER,
STBWABT, MOSCHZISKEB aad FRAZER,
JJ.
J. Lee Fatten and Alfred 1>. Wller, both
of Philadelphia, for appellant Glenn G.
Mead and Lools Hntt, Asst City. 6ols., and
John P. Connelly, City SoL, aU of Philadel-
phia, for appellee.
FRAZEB, J. [1, 2] In 1896 tbe dty of
Philadelphia adopted an ordinance providing.
Inter alia, for the opening of Fifty-Eighth
street, from Market street to Walnnt street,
and also Walnut street from Fifty-Seventh to
Sixtieth streets. The ordinance for grading
Elfty-Eaghth street was passed July 16, 1897 ;
the contract for the work bears date July
28, 1898 ; and the improvement was complet-
ed September 18, 1898. The ordinance for
grading Walnut street bears date February
14, 1898; the contract, July 12, 1896; the
work was completed September 27, 1898. The
improvement of the two streets was carried
on simultaneously, and as a whole. Under
the practice then existing separate boards of
viewers were appointed to assess damages
and ben^ts resulting to abutting property
from the opoiing of the two streets. Defend-
ant's property is located at the southwest
comer of Fifty-Mghth and Walnut streets,
beginning at the intersection <rf the center
line of those two streets, and extending west-
erly on the center line of Walnnt street, and
soBtberly <« the center line of Flfty-Bightb
street. Tbe viewers ai>pointed on the Fifty-
Eighth street improvement assessed benefits
against defendant's property in the sum of
$2,800. Tuts report was confirmed by the
court, and an appeal taken by defendant to
the court of ccMnmon pleas. The dty filed a
statement of claim May 11, 1899, and no fui^
ther action was taken to have the appeal dis-
posed of until 1913, when the case was put at
issue by defendant, and called for trial in
1914. A verdict resulted for plaintiff for the
amount awarded by the viewers, plus Interest
from the date of the original assessment,
making a total amount of $5,824. The court
below overruled defendant's motion for a
new trial, and for judgment non obstante
veredicto, and this appeal followed.
Defendant's main contention is that his
property does not abut otn the line of the im-
provement, and consequently Is not liable to
assessment for l>eDeflts; hence he was enti-
tled to have Judgment entered In his favor
non obstante veredlcta At the time these
two streets were opened defendant's proper-
ty, comprising over nine acres, extended
aouthward from Walnut street, between Fif-
ty-B;ighth and Fifty-Ninth streets, to which
access was had by an old lane, or country
road, called "Marshall Road," and was used
as a brickyard. The opening of Fifty-Eighth
street provided an outlet on the north to
Market street, a main dty thoroughfare, and
the extending of Walnut street gave the prop-
erty a street frontage along its entire length
on the northern side. The opening of these
two thoroughfares were parts of the same
general improvement, and were completed at
approximately the same time. At the inter-
section of Fifty-Eighth street and Walnut
street, a small rectangular piece of ground
lying within the lines of both streets was re-
quired to complete the Improvement De-
fendant contends the Walnut street frontage
Induded the entire width of Fifty-Eighth
street thus leaving his property without
frontage on the latter thoroughfare. There
seems, however, to be no reason for holding
that the prc^erty fronts on one of these
streets rather than the other. The ordinance
called for the opening of Fifty-Eighth street
from Market to Walnut The strip of land
lying between the northern boundary of Wal-
nut street and its southern boundary, and
within the line of Fifty-Eighth street was
as much a part of Fifty-Eighth street as of
Walnut street If the phrase "to Walnut
street" be construed to indicate the north
side of that street, as argued by defendant,
then a provision in the same ordinance to
open Walnnt street from Fifty-Eighth to
Sixtieth streets must necessarily be construed
to mean from the western line of Fifty-
Eighth street to the eastern line of Sixtieth
street and there would remain unopened an
ungraded square piece of land lying within
the line of both streets at the comer of Fifty-
Eighth and Walnut streets, thus leaving the
two Improvements with dead ends and un-
connected. Surely this was not the Intention
of the munldpal authorities. Consequently,
under a fair and reasonable construction of
the ordinance, "to Walnut street" can have no
other meaning than to the south line of that
street In accordance with this condusion de-
fendant's property abuts on Fifty-Eighth
street, for the distance of half the width of
Walnut street Although it is true the abut-
ting portion is but a small part of the tract
yet the advantage acquired is an ouUrt to a
main thoroughfare, and the benefit accrues to
the tract as a whole, and not merely to the
small portion directly abutting on the street
Chester v. Eyre, 181 Pa. 642, 37 Atl. 837.
Hence the question of the extent of the bene*
fit of tlte Improvement to the entire property,
if any, was properly submitted to the jury.
This case is distinguishable from those re-
lied upcm by defendant following the general
rule that property can be assessed for pub-
lic Improvements but once, and only when it
abuts directly on the line of the improve-
ment as was held in Morewood Avenue, 159
Pa. 20, 28 Atl. 123, 132, Fifty-Fourth Street
1(>5 Pa. 8, 30 Atl. 503, In re Orkney Street
0 Pa. Super. Ct 604, and numerous other
cases. Here the property not only abutted on
the Fifty-Eighth street improvement but
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474
101 ATLANTIC REPORTER
(Piu
there bad been no previous proceeding In
which this particular item ot benefit was, or
could be, considered.
The fifteenth, sixteenth, and seventeenth
assignments of error are to the refusal of the
trial judge to affirm points submitted by de-
fendant, requiring an Instruction to the JU17
that his propei-ty did not abut on the im-
provement. These assignments are disposed
of In the foregoing part of this opinion, and
require no additional consideration.
[3-6] In the eighteenth assignment defend-
ant complains of the refusal of the court to
atftrm a point to the effect that benefits, If
allowed, should be restricted to such advan-
tages as are special and peculiar to defend-
ant, and not include those common to the
public. As an abstract principle of law, the
point Is substantially correct Morewood
Ave., supra; Park Avenue Sewers, 169 Pa.
433, 32 Atl. 574; Beedtiwood Avenue Sewer
(No. 1) 179 Pa. 490, 36 Ati. 209. It is, how-
ever, inadequate as applied to the facts of
this case, and, if afilrmed would doubtless
have served only to confuse the Jury. The
assessment of benefits for public Improve-
ments Is but a mode of exercising the taxing
power of the commonwealth, and is valid only
80 long aa it provides for a just and equitable
assessment, according to benefits conferred.
Washington Avenue, 69 Pa. 352, 8 Am. Rep.
255; Pittsburgh's Petition, 138 Pa, 401, 21
Atl. 757, 750, 761. For reasons reiterated In
a long line of cases we have evolved the rule
that such assessments can be Justified but
once, and when confined to properties directly
abutting on the improvement. In the More-
wood Avenue Gase^ supra, we said (159 Pa.
37. 28 Atl. 130):
"As wo have repeatedly decided, the doctrine
of BBSessment for benefits, to pay for public
improvements can only be defended upon the
nound that the benefits are local and easential-
ly peculiar to the very property assessed, and
then it can only be done once. This can only
be the case when the property assessed abuts
directly upon the Une of the improvement. Hav-
ing their own burthens to bear in this respect,
the owners cannot be subjected to the discharge
of similar burthens upon other properties, whetn-
er situate on the same street or in the same
neighborhood."
A general advance in value in the neigh-
borhood is not ground for assessing benefits,
if the property does not border on the im-
provement But if the property adjoins the
improvement it becomes the subject of assess-
ment, and the rule is that in estimating both
damages and benefits the criterion is the
difference In market value as a whole before
and after the changed conditions. Defend-
ant's fourtii point involving this rule was
affirmed by the trial judge; the sixth point,
excluding remote or speculative benefits, was
also affirmed, and the subject fully covered In
the general charge. Under the circumstances,
if the point had been properly drawn, In view
of the facts of the case, the refusal to affirm
would not Justify a reversal. Miller v. James
Smith Woolen Machinery Ck»., 220 Pa. 181, 68
Atl. 598; Bracken v. Penna. R. R. Co., 222
Pa. 410, 71 Atl. 926, 34 L. R. A. (N. S.) 790;
Hufnagle v. Delaware & Hudson Co., 227 Pa.
476, 76 Atl. 205, 40 L. R. A. (N. S.) 962, 19
Ann. Cas. 850.
[7] The nineteenth assignment complains
of the failure of the trial Judge to affirm
without qualification the sixth point, which
Included a statement that remote and specu-
lative benefits should not be taken into con-
sideration, nor should the Jury consider bene-
fits accruing from Increased business the
opening of the highway might bring to the
owner of the land. The court In answering
this point said:
"In general, tliat is a correct proposition,
namely, that you most not go far out into
dreams to find out the advantage. You must
be satisfied if the advantage accrues to it with-
in a reasonably short space of time, wliidi we
call, by the way, relatively immediate."
The complaint is that the use of the words
"relatively immediate" permitted the Jury to
depart from the general rule by which dam-
ages are measured by the difference In mar-
ket value before and after the improvemmt.
We cannot say the use of these words was
intended to permit the Jury to depart from
the rule laid down in this class of cases, nor
that it had such effect In an Improvemeat
of this nature necessarily extending over a
period of time, no particnlar day can be set
as the dividing line for the purpose of flxlns
the values t>efore and after the taking. A
reasonable time must necessarily be allowed
for the completion of the work, and a proper
determination of the various elements of val-
ue based upon the changed condition of tlie
locality. Robblns v. Scranton, 217 Pa. 577,
66 Atl. 977. The time for determining the
changed value was explained by the court In
the general charge, and defendant's fourth
point, to the effect that the damages or bene-
fits were to be measured by the "difference In
tlie market value immedlatdy before the
opening of the street and Its market valae
immediately after the opening of the street,"
was affirmed without qualification. The an-
swer to the point In connection with the
general cliarge placed the question raised in
the point properly before the Jury.
[8] In the first assignment of error cona-
plalnt is made of the admission in evidence
of the plan of the property used by the view-
ers and attached to their report The plan
showed the portion of the property abutting
on Walnut and Fifty-Eighth streets and the
intersectlcm of these two streets, but did not
show the full extent of the area of the land.
Whatever deficiency existed In this respect
was supplied by the admission of counsel
for defendant that there were over nine acres
in tlie tract, and that it extended from tbe
center line of Walnut street, and between the
center lines of Fifty-Eighth and Fifty-Ninth
streets, southward beyond Spruce street A
deed of the property was subsequently offered
in evidence, and a further description, with
the acreage, given by defaadant himsdf. Tb»
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MTIiFORD WATER CO. y. KAIfNIA
475
Jurors, therefore, had before tbexa a complete
description of the extent of the property and
Its uses.
It] Defendant also argues that the trial
judge erred In {lerniltting the report of the
viewers to be received as evidence. This
practice vyas established by the act of April
2, 1903 (P. I* 124), making viewers' reports
prima facte evidence of benefits sustained.
The provisions of the act do not, however,
apply to proceedings held before its passage.
Carson v. Allegheny, 213 Pa. 537, 62 Atl. 1070.
Tbe report in this case was filed in 1S99, and
was not properly admissible under the terms
of the act. However, no objection was made
to Ita admission on this ground; the objection
on the record being that the plan did not
show the entire property belonging to defend-
ant. The case was tried on its merits, both
court and counsel apparently overlooking the
fact that the proceedings had been begun
several years previous to trial, and before the
passage of the act of 1908. We hare fre-
quently refused to consider objections raised
for the first time in this court But should
we be disposed to depart from our usual prac-
tice, we are not convinced that harm resulted
to defendant by reason of the oversight Ex-
pert testimony as to the value of the prop-
erty, both before and after the improvement,
was glTen on b^alf of both parties, and the
Jury Instructed that the report of the view-
ers was not binding upon them, and that if
in their opiniou the viewers reached an im-
proper conclusion, they must have no hesita-
tion In so saying.
[10] There are 34 assignments of error In
this case. Those not discussed above are de-
fective, and on account of their defects re-
quire no comment They assign the action of
the conrt in overruling defendant's objections
to certain questions, without stating the an-
swers. This is a plain violation of our rule
of court
The assignments of error aro overruled.
and the Judgment is aflSrmed.
<92 Conn. 3U
MILFORD WATEIB CO.
T. KANNIA et aL
(Supreme Court of Errors of Connectieut
July e, 1917.)
1. Eminent Domain «=»237(4) — Appbaisal
OF Pbopebty.
The irregularity of the appraisers in emi-
nent domain proceedings visiting the assessor's
oihce and inspecting the tax list in tb; absence
of the parties is not a ground for setting aside the
award, where no substantial injustice resulted.
[Ed. Note.— For other cases, see Eminent Do-
main, Cent Dig. { 610.]
2. Eminent Domain ^(=3231— Appbaisai. of
Pbopebty.
It is not irregular for appraisers to exam-
ine public records which are admissible in evi-
dence and are afterwards admitted.
[Ed. Note. — For other cases, see Eminent Do-
main, Cent Dig. §S 58&-588J
S. KMINENT DOMAIW <&=»134— APPBAISAL 0»
Pboperty— Damages.
In appraising property the owner cannot
have inrliided as nn item of damages the possi-
ble profits should a water-bottling plant be in-
stalled in the absence of evidence as to the
adaptability of the land for such purpose, or as
to the profitable character of the industry.
[Ed. Note.— For other cases, see Elminent Do-
main, Cent Dig. 8 3o6.]
4. Eminent Domain «=»202(1)— Appbaisait-
SCOPB OF InQUIKY.
It is not improper for a member of the ap-
praising committee to ask whether a cow got
mired on the land to be condemned.
[Ed. Note.— For other cases, see Eminent Do
main. Cent Dig. i 541.]
6. EvinENCE «=»266— Dbclabatiohs.
Then is no error in excluding a questicm
asked whether a real estate expert had not in
conversation appraised premises at a higher val-
ue than his testimony showed, since the fact
tliat a real estate expert employed to establish
an asking price has revised Jiis opinion down-
ward is no evidence that the revised valuation
is less correct than the original.
[Ed. Note.— For other oasea, see Evidence,
Cent Dig. i 1051.]
Appeal from Superior Court, New Haven
County, Gardiner Greene, Judge.
Proceedings' by the Mllford Water Com-
pany against Antonio Kannla and others.
From a judgment overruling remonstrance to
report of appraisers on condemnation pro-
ceedings, Kannla and others appeal. No error.
See, also, 100 Atl. 1064.
George B. Beers, of New Haven, for ap-
pellants. George D. Watroua, of New Haven,
for appellee.
BEACH, J. At the last term a motion to
dismiss tills appeal was overruled, and It
now comes before us on its merits.
The first assignment of error relates to the
reception against objection of a tax list con-
taining a valuation for assessment of 48 acres
of land, including the premises in question,
on the ground that the valuation was not
shown to have been made by either of the re-
spondents. But whether the objection is well
taken or not is of no consequence, because
the appraisers valued the 16 acres taken by
the applicant at more than three times the
assessed value of the entire 48 acres.
[1] It is also objected that the appraisers
visited the assessor's office and inspected the
tax list In the absence of the parties; but,
as no substantial injustice resulted, the al-
leged irregularity Is not a ground for setting
aside the award. Groton & Ledyard v. Hurl-
bnrt, 22 Conn. 191; Bristol t. Branford, 42
Ctonn. 321; New MUford Water Co. v. Wat-
son, 75 Conn. 237, 247, 52 Atl. 947, 53 AtL 57.
[2] Moreover, It Is not Irregular for ap-
praisers to examiue public records which are
admissible in evidence and are afterward
admitted.
[3] It is also assigned as error that the
appraisers excluded a question, asked of the
witness Whitney, as to how many quarts of
bottled drinking water would have to be
handled per diem in order to moke the busi-
ness a feasible one. The respondents' claim
tts>Vor other cases ne sama topic and KE!Y-NUMBBR in all Key-Numlwrsd Digests and Indezw
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476
101 ATI/ANTIC REPORTER
^nn.
In this connection was that without making
an unreasonable use of the water of Beaver
brook, which adjoined their land, and with-
out appre<^My diminishing Its flow, a bot-
tling business could be conducted on their
land for bottling and selling drinking water,
and that the value of th« land for that use
should be taken into account. The apprais-
ers excluded the question on the ground that
the respondents' had no right, as against low-
er riparian owners, to use any of the water
of the brook except for farm and household
purposes. It appears Incidentally from the
report that there are some springs on the re-
sitondents' land; but no question Is raised on
this appeal as to the right of a landowner to
impound and divert spring water at Its
source, and we express no opinion on that
point The only ground of this branch of the
remonstrance Is that the committee erred in
ruling that the respondents had no right as
riparian owners to bottle and sell any part
of the water of Beaver brook. We are of
opinion that the question objected to was
properly excluded. The Just compensation to
which a landowner is entitled In condemna-
tion proceedings is the value of the land
taken (and in a proper case the damage to
the balance of his land) considered with ref-
erence to the uses for which the land is then
adapted. It follows that no evidence of value
Is admissible with reference to the alleged
adaptability of the land for any special com-
mercial buslnees until a foundation is laid by
evidence that the land Is in fact adapted for
that special business at the time of the tak-
ing. A mere claim of counsel Is not enough.
It is useless, for example, to discuss the al-
leged right of the respondents to sell bottled
water from Beaver brook, unless it is first
made to appear that there is an available
market for It. There is nothing in this rec-
ord to show either an existing market for
Beaver brook water In bottles, or that the
water of Beaver brook iwssesses special qual-
ities which would tend to make it more sal-
able In bottles than ordinary brook water;
and ordinary brook water is not so salable.
As bearing on the value of the re^wndenta'
land, the evidence objected to was too remote
and speculative, and on that ground alone the
committee did not err In rejecting It On
this state of the record the question whether
a riparian owner may bottle and sell brook
water, provided he does not thereby appre-
ciably or unreasonably diminish the flow of
the stream, appears to us to be a moot ques-
tion which does not require discussion.
[4] A member of the committee who had
heard of the fact that a cow got mired on the
land in question very properly asked the re-
spondent Kannia about it when the latter
was on the witness stand. This incident af-
fords no basis at all for a claim of bias or
injustice.
[B] There was no error in excluding the
question addressed to his own real estate
expert by the respondents' counsel asking
whether he had not in conversation appraised
the premises at a higher valuation than that
to which he had just testified. The fact that
a real estate expert employed to establish an
asking price has revised his opinion down-
ward is no evidence that the revised valua-
tlon is less correct than the original.
There is no error. The other Judges con-
curred.
(M Conn. 58)
STATE V. CASTEIiLI et aL
(Supreme Court of Brrorg of Connecticut
July 6, 1917.)
1. Cbimiwal Law <g=622(l)^JoiNT Tbiai. of
Defendants — Discretion of Couet.
It Is within the discretion of the court to
grant a separate trial to defendants jointly in-
dicted, and it is not an abuse of discretion to
deny separate trials unless it appears that a
joint trial will probably result m substantial
injustice.
[Ed. Note.— For other cases, see Criminal
Law, Cent Dig. §{ 2210, 2214.}
2. Ckiminai, Law i8!=>622(2)— Joint Trial o»
DEFENOANTB — DiSCKBTION OF COUBT.
It is not necessarily a ground for granting
a separate trial to defendants jointly indicted
that evidence will be admissible against one
which is not admissible against the other, sinc«
evidence may be received and its limited a^
plication pointed out to the jury.
[Ed. Note. — For other cases, see Criminal
Law, Cent Dig. {{ 2210, 2213, 2216, 221T.]
3. Cbiminai. Law «s>622(2)— Joint Tbial or
DSFENnANTS — DlBCBETION OF CoUBT.
Ordinarily the fact that one of the accused
has made a confession incriminating the other
is a good ground for granting separate trial of
defendants jointly indicted.
[Ed. Note.— For other cases, see Criminal
Law. Cent. Dig. U 2210, 2213, 2216, 2217.]
4. Chiminax Law «=9622(2)— Joint Tbiai. or
Defendants— Discketion of Coubt.
Where each of two defendants jointly indict-
ed made a full confession of facts which if legal-
ly corroborated was sufficient to convict either
of them, it is not an abuse of discretion to re-
fuse separate trial, asked on the ground that
evidence, consisting of confessions, admissible
against one, was not admissible against the
otlier.
[Ed. Note. — ^For other cases, see Criminal
Law, Cent Dig. If 2210, 2213, 2216, 2217.]
5. Cbiminal Law «s»1158(2)— APPBAt— Coi.-
LATERAL QUESTIONS.
Generally speaking the decision of a trial
court on a preliminary and collateral question
of fact will not be reversed unless in a case of
clear and manifest error.
6. Criminal Law «::»531(2)— Witnesses «=>
241 — Pbeliminabt Questions — Leadinq
Questions.
It was not error to admit a general ques-
tion addressed to state's witness whether any
threats were made or inducements held out to
procure confessions, the issue being a prelim-
inary one, tried to_ the court in the absence of
jury with opportunity of cross-examination since
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STATE y. CASTELLI
477
in such case leading qnestiona and questions call-
ing for conclusions oC fact are admissible.
[Ed. Note.— For other cases, see Criminal
Law, Cent. Dig. g 1214 ; Witnesses, Cent. Dig.
SS 795, 840.]
7. CBiHiitAi. Law ie=»673(4)— Evidencb— Ad-
ifiBBiBiuTT— Confessions.
Where two defendants are jointly indicted
and tried for murder, the confession of one of
them is properly admitted as against him if the
jury is instructed not to consider it aa evidence
against the other.
[Ed. Note.— For other cases, gee Criminal
Law, Cent. Dig. 81 1897, 1873.]
& Cbiminai, Law <S=>518(1), 531(1) — Evi-
DENCK — ADMiaSlBILITT — CoNrESSIONS —
VOLIJKTABT CHAKACTEK.
Before a confession of accused can be admitp
ted, the state must show its voluntary charac-
ter, and it is not essential that a warning be
given that accused could not be compellea to
make the confession if the vcduntary character
is otherwise shown, especially where the accused
has been warned at another time prior to mak-
ing the confession,
[Ed. Note.— For other cases, see Criminal
Law, Cent. Dig. {§ 1167, 1159, 1212, 1213.]
9. CnntiwAL Law e=»681(8)— Evidence— Ad-
MisaiBiLiTT — Confessions — Voluntabt
Chabacteb.
Evidence held to show that confession of one
of two defendants jointly indicted and tried was
voluntarily made.
[Ed. Note.— For other cases, see Criminal
Law, Cent Dig. § 1215.]
10. Cbikinal Law <8=»858(3) — Conduct 0»
Tbiai/— Taking Btvidence to Jubt Roou.
It is not error to allow the jury to taketo
the jury room confessions of the accused which
were admitted as exhibits.
[Ed. Note.— For other cases, see Criminal
Law, Cent Dig. | 2058.]
11. Cbiminai. Law <8=>402(1) — EviDEnot —
Lost Documents— Admibsibiutt.
Where the aseistant state's attorney stated
that he had been through every scrap of paper
the state had, and could not find papers show-
ing a statement of accused that he would con-
fess, it was not error to permit parol testimony
of the alleged transaction.
[Ed. Note.— For other cases, see Criminal
Law, Cent Dig. {g 887, 1211.]
12. Homicide «i=»166(5>— Evidence— Admis-
bibilitt.
In prosecution for wife murder, a summons
in suit for nonsupport by deceased against ac-
cused is admissible as tending to show accused's
reason to believe that his wife had complained
to the police.
[Ed. Note.— For other cases, see Homicide,
Cent Dig. { 826.]
13. Cbiminai. Law <s=>517(1)— Bvidenoet-Ad-
MissiBiiJTY— Confessions.
The confessions of two defendants jointly
indicted and tried, being inconsistent with re-
spective pleas ot not guilty, when proved are
evidence affecting the defendants.
(Ed. Note.— For other cases, see Criminal
Law, Cent Dig. S| U46, 1148, 1149.]
14. Cbiminai. Law «=»823(15) — Tbial — In-
btbuctiors— Keabonabuc Dodbt.
In prosecution for murder, where the court
fully instructed on reasonable doubt and the de-
gree of proof required, mere use of the phrase
"'considerable doubt" was not error, where the
Jury could not have misunderstood.
[Ed. Note.— For other cases, see Criminal
Law, Cent Dig. §§ 1992-1994. 3158.]
16. Cbiminai. Law «=»777V4 — Tbial — In-
stbuctions.
Where the court carefully instructed that
the jury must take the evidence from the wit-
nesses, that bis own recollection of the testi-
mony might be incorrect, his omission to state a
certain fact testified to was not error.
[Ed. Note.— For other cases, see Criminal
Law, Cent Dig. § 1807.]
16. Cbiminal Law «=»834(2) — Tbiai. — In -
stbuctions.
The court is not bound to use the phrase-
ology of counsel in preference to its own in stat-
ing familiar propositions of law to the jury.
[Ed. Note.— For other cases, see Criminal
Law, Cent Dig. H 1202-1205, 1222-1224.]
17. Homicide «=3l07— Justification.
A husband who on his own story suspects
that his wife and a friend are going to nave
illicit relations, follows them to a distant city,
conceals himself in a closet, armed with a dead-
ly weapon, waits for the expected provocation
to materialize, and then kills his wife, cannot
claim justification.
[Ed. Note.— For other cases, see Homicide,
Cent Dig. { 137.]
18. Cbiminai Law «=>510— Accomplice Tes-
TIMONT — SUPnCIENOT.
One of two defendants jointly indicted and
tried cannot be convicted solely on the testimony
of the other.
[Ed. Note.— For other cases, see Criminal
Law, Cent Dig. » 1124^1126.]
19. Cbiminai. Law «=)C08(3)— Conspibaot-
Evidence — Admissibiutt.
in a prosecution for murder against two
defendants jointly on theory of ccmspimcy,
where one of them testified in his own <lefens«N
his testimony was admissible so far as it tended
to prove or disprove the conspiracy outlined by
the confession of the other defendant
[Ed. Note,— For other cases, see Criminal
Law, Cent Dig. M 1101. 1104, 1113rlll5; Wit-
nesses. Cent Dig. i 244.]
20. Homicide «=5»263(1) — Bvidbwob— Sum-
Evidence Md to sustain the conviction of
two defendants jointly indicted for a crime of
first degree murdsr.
[Ed. Note.— For other cases, see Homicide
Coit Dig. H 623, 581.]
Wheeler, J., dissoiting.
Appeal from Superior Court, New Haven
County; Joel H. Reed, Judge.
Joseph eastern and Francesco Vetere were
convicted of murder, and they appeal. No
error.
The defendants were convicted in the so-
perior court for New Haven county of mur-
der in the first degree. They were jointly
indicted for the murder of Annie, the wife of
Castelli, who was found in a bedroom at
260 Crown street. New Haven, on Easter
Sunday, April 23, 1916, suffering from severe
fractures of the skull, of which she died on
the following day. The deceased and both
the accused were deaf mutes. On the 2eth
of April both of the accused were appre-
hended in New York in connection with an
Inquiry Into the disappearance from New
York of Annie CastelU. While the inquiry
was in progress the coroner for New Haven
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101 ATLANTIC REPORTER
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county arrived and tbe Identity of the miss-
ing woman with the murdered woman was
established. Each one of the accused freely
made a full confessloa to the coroner in
which each separately from the other de-
scribed the killing in substantially the fol-
lowing way: Castelli for reasons given was
tired of his wife and desired to get rid of
her. He induced Vetere to plan and carry
out n pretended elopement for the purpose
of bringing Annie to New Haven, where Cas-
telli was to kill her. Pursuant to this con-
spiracy, Vetere Induced Annie to accompany
him to New Haven, and took her to a lodging
house at 200 Crown street, where tb^ ol>-
talned a room, representing themselves as
man and wife. They then went out to lunch,
and Vetere found an opportunity of leaving
Annie and Informing Castelli, who had fol-
lowed them on the same train, of the where-
abouts of the room and how to open the
front door at 260 Crown street After lunch
Vetere and Annie went back to their room,
where Castelli had in the meantime con-
cealed himself in a closet armed with a piece
of Iron pipe. Vetere kissed Annie, and after
some love-making went to the front window.
Vetere says that Annie appeared to fi»U
asleep. Castelli then came out of the closet
and struck her on the head with the pipe,
ioflictlng the wounds from whidb she after-
wards died. Castelli and Vetere then to<^
Annie's Jewelry and money and returned to-
gether on the same train to New York. On
the way down Vetere, at Castelll's suggestion,
wrote a postal card to the effect that Annie
had eloped, addressed it to Castelli, and
mailed it on reaching New York. This post-
al card was produced and put in evidence at
the triaL That evening they both went to-
gether Co a social entertainment E>ach of
the confessions was admitted in evidence
against the party who made it, but not as
against the other accused. The state also
proved the death and identity of Annie Castel-
li ; the fact that she and Vetere were seen to-
gether at the boarding house; that Annie
was left alone in the restaurant for a time
and rejoined by Vetere; that Vetere was
seen leaving the boarding house alone with
a bag. Annie's Jewelry was recovered from
the person to whose custody Vetere had com-
mitted It
On the trial each of the defendants went
upon the witness stand and admitted all the
physical facts recited in their respective con-
fessions, but Vetere claimed that the el<^>e-
ment was a genuine one, and Castelli claim-
ed that he learned of it by seeing Annie and
Vetere conversing about It in the sign lan-
guage, followed them to New Haven without
V'etere's knowledge, ascertained by observa-
tion where their room was at 260 Crown
street, and found his way there without the
assistance of Vetere, concealed himself in
the closet armed with a piece of iron pipe,
and that be became enraged at the behavior
of Annie and Vetere, and killed bis wife un-
der the influence of uncontrollable rage.
WlUiam A. Bree and John CunlUIe, Jr.,
both of New Haven, for appellant Castelli.
Spotawood D. Bowers, of Bridgeport, and
Samuel E. Hoyt of New Haven, for appel-
lant Vetere. Amon A. Ailing, State's Atty.,
and Walter M. Pickett Asst State's Atty.,
both of New Haven, for the State.
BEIACH, J. (after stating the facts as above).
At the opening of the trial Vetere moved
for a separate trial on the ground that It
would appear from the coroner's finding and
notes that there was evidence In the case ad-
missible against one and not admissible
against the other of the accused. Castelli
made no motion for a separate triaL Vetere'a
motion was opposed by the state's attorney on
the ground that the crime was committed in
carrying out a conspiracy to murder the de-
ceased, and that as to any items of evidence
which might be admissible against Castelli
only Vetere could be adequately protected by
a proper instruction to the Jury. The court
overruled the motion and directed tbe accus-
ed to be tried together, and this is assigned
OS error by both of the accused.
(1] The rule as to granting separate trials
to persons Jointly Indicted Is stated in State
v. Braunels, 84 Conn. 222, 226, 79 AtL 70, 72,
as follows:
"Whether a separate trial shall ba allowed to
parties jointly indicted is within tbe discretion
of the court. Ordinarily justice is better sub-
served whero the parties are tried together.
But cases arise where the defenses of the differ-
ent parties are antagonistic, or where evidence
will l>e introduced against one which will not be
admissible against others. Where from the na-
ture of the case it appears that a joint trial
will probably bo prejudicial to the rights of one
or more of the parties, a separate trial should
be granted when properly requested."
The discretion of the court la necessarily
exercised before the trial begins, and with
reference to the situation as it then appears ;
and the phrase "prejudicial to the rights of
the parties" means something more than that
a joint trial will probably be less advanta-
geous to the accused than separate trials.
The controlling question Is whether it ap-
pears that a joint trial will probably result
In substantial injustice.
[2] It is not necessarily a ground for grant-
ing a separate trial that evidence will be ad-
missible against one of the accused which Is
not admissible against another. Such evi-
dence is received and its limited application
pointed out to the jury in most cases where
two or more accused persons are tried to-
gether. When tbe existence of such evidence
is relied on as a ground for a motion for
separate trials, the character of the evi-
dence and its effect upon the defense intended
to be made should be stated so that the
court may be in a position to determine the
probability of substantial Injustice being
done to the moving party from a Joint trial.
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STATE y. CASTELLl
479
It does not appear from the record tbat the
trial court was so advised in this case, and
on that ground alone It Is Impossible to say
tbat the court abused Its discretion In deny-
ing Vetere's motion.
[3] Ordinarily the fact that one of the ao
cosed has made a confession incriminating
the other would be a good ground for grant-
ing a separate trial. But the peculiarity of
this case was that eadi of the accused had
made a full written confession of facts which,
if legally corroborated, was sufficient to con-
vict either <me of them of murder In the
first degree.
[4] It follows that no material fact incrim-
inating either one of the accused came to the
knowledge of the Jury because they were tried
together which would not also have come to
the knowledge of a Jury if each had been
separately tried and his own confession ad-
mitted against him. This being so, the claim
that snbetantial injustice was done by a
j«^t trial relates rather to the corroborative
effect which each of these confessions may
be supposed to have had upon the other ; and
if we assume that the trial court did know
all the facts before the trial began, the ques-
tion presented to it was whether It would
order separate trials of two self-confessed
conspirators, each of whose acts and dec-
larations made or done in pursuance of the
Gon^iracy was admissible against the other,
because their respective confessions, being
made after the event, were not so admissible.
Tbe mere statement of this proposition shows
that the question was one fairly within the
limits of Judicial discretion, and ttiat a denial
of Vetere's motion for a separate trial was
not an abase of discretion. In view of the
precautions taken in the admission of evidence
and again in tbe charge of the court, we can-
not assume that the Jury were improperly
influenced by any corroborative effect given
to evidence not admissible against one of
the accused, but admitted as against the
other only. It may be observed that our
attention has been called to but two cases
in this country where the action of a trial
court in refusing to grant separate trials to
persons Jointly indicted has been held to be
reversible error. In one of them the right to
a separate trial was granted by statute, and
in the other the effect of the Joint trial was
to derive the accused of the benefit of ma-
terial testimony, under the common-law rule
tbat persons Jointly indicted and tried may
not be called as witnesses for or against each
other.
[t] Generally speaking, the decision of a
trial court upon a preliminary and collateral
question of fact will not be reversed unless
in a case of clear and manifest error. In
State V. Willis, 71 Conn. 293, 313, 41 Atl.
820, this rule was applied to, or quoted as
applicable to, the determination of the volun-
tary character of extrajudicial confessions as
affecting their admissibility in evidence; and
we see no reason why it is not equally appli-
cable to the determination of the probability
or improbability of substantial injustice flow-
ing from a Joint trial of persons Jointly In-
dicted. If it were not so, there would be
grave danger of mistrials from causes which
were nnknown to the trial court at the time
when it was required to dedde the question.
Moreover, Joint trials of persons Jointly in-
dicted are the rule, and separate trials the-
exception resting in the discretion of tbe
court For the reasons indicated we are sat-
isfied that In this case the court did not err
in denying Vetere's motion for a separate tri-
al, and that no substantial Injustice has been
suffered by either of tbe accused in conse-
quence of thrfr Joint trial.
The assignments of error next in logical
order are those relating to tbe admission of
the several statements and confessions of
the accused. Here again the court had to
deal with a preliminary issue, and upon the
trial of that issue all of the statements and
confessions were abundantly shown by the
state to have been given voluntarily and
without undue Influence of any kind.
[6] Referring first to the assignments of
error relating to this branch of the case pur-
sued on the brief for Castelli: There was no
error in admitting the general question ad-
dressed to the state's witnesses whether any
threats were made or inducements held out
to procure the confessions. The issue was a
preliminary one, tried to tbe court in tbe ab-
sence of tbe Jury, and opportunity was glv*
en for cross-examination. Under these cir-
cumstances tbe court might in its discretion
shorten the direct examination of witnesses
by admitting leading questions and questions
asking for conclusions of fact Eixhibit 81
was an affidavit for the purpose of extradi-
tion, and the evidence of the officer Einright
is not only tbat Castelli before signing it
read it over carefully and made a correction
in it, bat on cross-examination that the no-
tary warned Castelli in writing that any-
thing he signed might be used against him.
Bxhiblt 39 is the detailed confession made
by Castelli to the coroner of New Haven
county, and it is prefaced by a written warn-
ing in tbe form approved by this court in
State V. Coffee, 56 Conn. 399, 16 Atl. 151, and
in State r. WiUis, 71 Conn. 306, 41 Atl. 820.
Exhibit 28 is a paper written by Castelli ad-
mitting the kiUing and addressed to the cor-
oner after Castelli had been taken to the
door of the room where Vetere was, and bad
seen that Vetere was making a statement to
tbe coroner. The witness De Martini testi-
fied that Castelli asked for a piece of paper
on which to write it. No doubt, Castelli was
influenced by what he had Just seen and by
the statement of De Martini, which was true,
that Vetere was telling the whole story ; but,
as pointed out in State v. Willis, supra, it
is difficult to conceive of a confession which
is not induced by a sense of self-interest.
Moreover, this paper added no material fact
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101 ATLANTIC REPORTER
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to tbe case made by the state. CastelU made
several statements on April 26tti, and tbe
state very properly offered all of them In evi-
dence, but, so far as tbe Issue of guilt or In-
nocence Is concerned, they were all merged
In or superseded by the final confession, EDc-
hlbit 39, which was complete in Itself.
[7] Exhibits 38 and 30 are statements
made by Vetere Incriminating CastelU. These
were not admitted as against CastelU, and
the Jury were instructed not to consider them
as evidence against him. They were neces-
sarUy admissible as against Vetere, and the
course which tbe court took was the only one
possible. On their merits the assignments of
error relating to these statements of Vetere
go back to the denial of tbe motion for a
separate trial which has already been dis-
cussed.
[6] In this connection we take np the al-
leged error of the court in admitting the
story of eastern's rehearsal of the murder
scene at 260 Crown street on May 3d. The
claim Is that CasteUl was compelled to re-
enact the murder, and so compelled to give
evidence against himself. This again was a
preliminary Issue, and tbe court so treated It
ruling that the state must show that the ac-
tions of CastelU were voluntary. The state
fully sustained the affirmative of that issue,
but the objection is made that CastelU was
not at that time warned that he could not be
compeUed to rehearse the murder or that
such rehearsal might be used against him.
OThere Is, however, no role of law In this state
which requires any such warning. The state
must show affirmatively that any confession
or performance In the nature of a confession
was not procured by duress. Tbe fact that
a warning in the usual form has been given
Is generally accepted as satisfactory evidence
that the confession was not procured by du-
ress. But when the voluntary character of
the confession Is shown either by proof of a
warning Or by any other satisfactory evi-
dence the law and the Constitution are satis-
fled. In this Instance a warning bad been
given to CastelU the week before, and he had
fully confessed after being warned. A week
later he was asked, being deaf and dumb, to
go to the scene of the crime and repeat the
confession In pantomime, and upon the evi-
dence he did so voluntarily. A second warn-
ing under such circumstances woold have
been superfluous.
CastelU testified when on the witness
stand that one of the officers at tbe police
station In New York struck blm many tirne^
with a piece of hose before his confession
was written. This evidence was offered aft-
er the state bad rested, and, of course, long
after the preliminary issue as to the volun-
tary character of Castelli's confession had
been tried and determined in favor of Its ad-
mlssibiUty. Under these circumstances the
court properly Instructed the Jury that, if
they found that the accused were frightened
or forced to make their confessions by the
conduct or abuse of the officer having them
In charge, they should disregard the state-
ments entirely as of no value.
[9] Referring now to the statements and
confessions of Vetere. It is assigned as er-
ror that the court ruled that Vetere's confes-
sions were voluntary. In support of these
assignments of error It Is said that Vetere
was aUowed to see CastelU in tbe act oC
making a statement to the coroner; that tbe
two were kept apart, and not aUowed to com-
municate with each other; that Vetere was
not given anything to eat from 7:30 p. m.,
when he was brought into tbe pcdlce head-
quarters, until 11 p. m.; that his examina-
tion was protracted untU 3 a. m.; and that
the attempted proof of the voluntary chaiv
acter of his statements failed, because of the
generality of the questions asked of the
state's witnesses. Most of these matters
have already been sufficiently discussed. Tbe
length of time occupied in these examina-
tions by the coroner Is accounted for in part
by the fact that he took the statements of
CastelU and Vetere separately, partly by the
mode of communication adopted, which was
by writing out tbe questions and then hand-
ing the paper to the accused for blm to write
his answer, and partly by the fact that Ve-
tere was taken out to supper. As to the al-
leged deprivation of food, it appears that up
to the time when Vetere complained that be
was hungry he bad made no incriminating
statement; that he offered to make a state-
ment in writing ; that the coroner wrote out
the customary warning, and Vetere wrote in
reply:
"I want to get food, as I nearly choked to
death, and I got awful headache. I am un-
easy without food, and if 1 get food I would
bo excited to write and tell aU the truth."
He was Immediately taken out to supper,
and wrote nothing in the nature of a confea-
sion untU after he came back. This being so,
it cannot be said that his confession was In
any degree extorted by starvation. On the
contrary, tbe coroner was careful that no
confession should be made until after Vetere'a
hunger had been satisfied.
[10] It Is also assigned as error that the
confessions of tbe accused were admitted aa
exhibits and allowed to go to the Jury room;
tbe alleged wrong being that undue promi-
nence was thus given to tbe most damag;lng
portions of tbe testimony. There was no er-
ror In this. Writings made or subscribed by
tbe accused are ordinarily admitted as ex-
hibits. If these writings were harmful. It
was not because any rule of procedure waa
violated, but because the accused had fur-
nished harmful evidence against themselves.
[11] We take up next the assignments of er-
ror In the admission of evidence. De Marti-
ni testified that he wrote on a piece of paper
that Vetere was telling all, and showed it to
CastelU, who wrote back on a piece of paper :
"Me afraid of chair; teUall." This testimony
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STATE T. CASTELLI
481
was objected to on the grounas that papers
themselves mnst be produced and to prove
their loss the assistant state's attorney was
allowed to state to the court that be bad been
through every scrap of paper the state had
and could not find them. The testimony was
then admitted. There was no error. The
evidence of loss was sufficient to support the
admission of secondary evidence, especially
as the statement itself was of little Impor-
tance, because followed by a full written con-
fession.
[1 2] As to the -admission of the summons
In the suit for nonsupport brought by Annie
against Castelll, the objection that It tended
to prove a different offense from that with
which C5a8telll was charged was properly
overruled. The paper was admissible, being
taken from GastelH's person, as tending to
show that Castelll had reason to believe that
his wife bad complained to the police against
him In respect of the matter described in the
summons. The probation card, also taken
from him, and the testimony of Enright ex-
plaining it, were admissible on the same
ground, and the exemplified copy of the rec-
ord of the New Xork court in the nonsupport
proceedings was directly admissible to show
the relations between Castelll and bis wife.
Vetere's assignments of error Nos. 8 and 9
are not weU founded in the record. The
dalm is that De Martini was permitted to tes-
tify to a conversation carried on in writing,
without producing the writings, but the rec-
ord Is that the witness was asked whether
any threats or inducements were made to
Vetere in writing or otherwise, and that he
answered "No."
[13] The court in charging the jury with
reference to the statements or confessions
made by the accused used the phrase, "They
are only admissible as evidence aCCectlng the
one who made them ;" and this is claimed as
error because la State v. Willis, supra, we
said that such statements were not "testi-
mony," but facts to be proved by testimony.
The distinction drawn in SUte v. WlUis is
quite correct, and that distinction was care-
fully observed by the trial court not only In
other parts of the charge, but also in the
language complained of. The declarations of
the accused inconsistent with their respec-
tive pleas of not guilty were not testimony,
but when proved they were "evidence affect-
ing tbe one who made them" in the same
sense that any other relevant fact Inconsist-
ent with the claims of an accused Is evidence
affecting him.
[1 4] On one occasion the court in Its charge
used the phrase "considerable doubt" Instead
of "reasonable doubt," but it could not be sup-
posed by the Jury ttiat the court Intended to
mean anything more or less than that reason-
able doubt which it had been at great pains
to explain and expound to them at great
length.
£16} The claim that the court unfavorably
101 A.— 31
commented on evidence seems to ns without
foundation. It is true that the court appar-
ently failed to remember Castelll's claim that
he had bought his ticket for New Haven be-
cause he had seen Annie and Vetere talking
about going to New Haven, but such a slip
as that in commenting on the evidence after
a long trial is not reversible error. In the
first place, it is the duty of the Jury, not
of the court, to remember the evidence cor-
rectly, and, in the second place, the court was
very careful to so Inform the Jury and to tell
them that be might be mistaken in his recol-
lection of the evidence, and that they must
take the evidence not from him but from the
witnesses.
[ia] The court did not err in refusing to
charge as requested by Castelll upon the sub-
ject of reasonable doubt The charge of the
court upon that point was correct and suffi-
cient, and the court Is not bound to use the
phraseology of counsel In preference to its
own in stating familiar propositions of law
to the Jury.
[1 J] Tbe court did not err in charging the
jury that in order to reduce Castelll's crime
from murder to manslaughter the homicide
must have taken place under circumstances
which would Justify a reasonable belief that
adultery was being committed. That is the
rule expressed in State v. Tanz, 74 Conn. 177,
60 Atl. 37, 54 L. R. A. 780, 92 Am. St B^.
205, and State v. Saxon, 87 Conn. 15, 86 AtL
500. It was too favorable to CastellL A hus-
band who on his own story suspects that
adultery Is going to be committed, follows
his wife and her suspected paramour from
New Tork to New Haven, conceals himself
In a closet armed with a deadly weapon,
waiting for the expected provocation to ma-
terialize, and then kills his wife, cannot
claim the benefit of the rule In State t. Yanz.
[1 B, U] As to Vetere's assignments of er-
ror Nos. 39-41, the court correctly charged
the Jury that Vetere could not be convicted
on Castelll's unsupported testimony. This
was all that the case called for. Castelll
was not a witness for the state. He could
not, while Jointly Indicted, have been com-
pelled to testify. But, since he chose to tes-
tify in his own defense, his admissible testi-
mony was relevant, though not that of a full
witness, so far as it tended to prove or dis-
prove the existence of the conspiracy out-
lined in Vetere's confession.
[20] We have disposed of all the assign-
ments of error pursued on the briefs, except
those relating to the denials of the motions
to set the verdicts aside, on the ground that
they were against tbe evidence. These mo-
tions were properly denied. The rule laid
down in State v. Willis, supra, is that an un-
corroborated extrajudicial confession will not
support a conviction of murder in the first
degree. But these confessions were abun-
dantly corroborated. The identity of the
victim and her death f-om the Injuries in-
flicted by Castelli are established without re-
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101 ATLANTIC REPOllTBR
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sorting to the confessions. Castelll's testimo-
ny at tbe trial admitting tbe kUllng and
pleading provo<»tloa left only tbe degree of
the crime to be determined by tbe Jury. Was
It a willful, deliberate, and premeditated kill-
ing, as his confession admitted, or was it the
result of a sudden outburst of uncontrollable
fury caused by the sl^t of his wife in
Vetere's arms? The Jury could give but one
answer to that question ; for Castelli himself
testified that he concealed himself In the
closet armed with a deadly weapon, to await
the return of Vetere and bis wife ; and upon
what little testimony was given on the trial
as to the situation of the parties it seems
that Vetere was standing by tbe window at
some distance from Annie when she was
struck.
Vetere also admitted on the witness stand
that he was present at tbe Idlllng. His testi-
mony amounted to a Judicial confession that
he was an accessory after the fact, and the
only question left for the Jury was whether
he was an accessory after the fact, in which
case he was not guilty of any crime of which
he stood Indicted, or whether he was a prin-
cipal under our statute as indicated by his
confession to the coroner. All the physical
facts were admitted. The determining ques-
tion was whether the elopement with Annie
was a genuine affair of the affections, as
Vetere claimed in his testimony, or whether
it was a pretense contrived to bring the vic-
tim to her place of execution, as Vetere ad-
mitted to the coroner.
No reasonable explanation consistent with
the theory of a genuine elopement can be giv-
en of Vetere's own testimony as to what took
place at and after the killing. The crucial
scene is hurried over in a few words. He
says that be kissed Annie ; that she wanted
to take a nap in the chair; that he went
over to the window seat ; that he heard and
saw nothing until he looked around and saw
Castelli standing beside bis wife. Annie was
then sitting with a drooping head, and Cas-
telli, pointing to the door, said "KUled, fin-
ished," and then, "Hurry up." Apparently
no further communication passed between
them until they reached the train. Could
there be stronger corroboration of the con-
fession to tbe coroner than is unconsciously
furnished by Vetere's testimony? Not an in-
dication of surprise, sorrow, anger, or desire
for retributive Justice, but, on the contrary,
instant acquiescence, a partition of Annie's
Jewelry and money, a Joint flight from the
scene of tbe crime without stopping to see
whether Annie was really dead, and a com-
mon attempt to conceal the crime by writing
a postal card addressed to Castelli intended
to account for Annie's disappearance, and by
appearing together at a social entertainment
that same evening.
Tbe fact that Vetere left Annie alone in
the restaurant at tbe time when, according
to his confession, be met Castelli and told
him of tbe location of the room, and how to
open the front door, was also proved. With-
out going further into details, it seems evi-
dent that the motions to set aside the ver-
dicts were properly denied.
There is no error in either appeal.
PRENTICE, C. J., and RORABACK and
SHUMWAX, JJ., concurred.
WHEISLBR, 3. (dissenting). One ground
of error in Vetere's appeal and one in Cas-
telll's, in my Judgment, entitles each to a
new trial. Vetere seasonably moved for a
separate trial. The granting of sudi a mo-
tion Is ordinarily a matter of discretion. But
if the defenses of the accused are antagonis-
tic, or the evidence to be introduced against
one is not admissible against the other, sejiw-
rate trials may be ordered. Where a Joint
trial will probably be prejudicial to one or
more of the accused, the motion should be
granted. State v. Brauneis, 84 Conn. 222,
226, 79 AU. 70.
I agree with the majority opinion that the
mere fact that evidence will be admissible
against one accused which will not be ad-
missible against another will not necessarily
furnish a ground for granting a separate
trial ; for the court by limiting Its admission
and pointing out to the Jury at the time of
its admission and its charge the precise use
to be made of the testimony may make it
reasonably certain that tbe Jury did not
reach its conclusion by tbe improper use of
this evidence.
So that in a given case tbe test for the
trial court is, Will the Joint trial probaUy
result In substantial Injustice, that is, will
the Jury be unable to separate the evidence,
and be likely to use tbe evidence admissible
against one accused against another, against
whom it is not admissible?
I. I agree with the majority that the
ground of the motion for a separate trial
should develop the existence and effect of
such evidence so that the court will be placed
In a position to determine the probability that
substantial injustice will be done to the mov-
ing party. The majority hold that:
"It does not appear from the record that the
trial court was so advised in this case."
I think this conclusion does not accord
with the facts of record.
At the beginning of the trial Mr. Hoyt,
counsel for Vetere, thus addressed the court :
"Before we proceed to draw the jurors, I
should like to make a motion m this case. I
should like to make a motion that the accused
bo tried separately, first, upon the ground that
there is evidence in this case, as is apparent
from the coroner's finding and notes, which is
admissible SKuinst one and not admissible
against the other, in the nature of statements
and other evidence decidedly of a character that
is not admissible against both. As I understand
tbe law in State v. Brauneis in 84 Conn. 222,
79 Atl. 70, it is, of course, a matter of discre-
tion for the court Our Supreme Court baa
said that where it would be prejudicial to the
interests of the accused to try them together,
then they should be tried separately. Now, I
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STATE V. CASTBLLI
483
therefore more that they b« tried separately, on
behalf of Vetere at least"
Replying, the Btate's attorney conceded
that:
The two accused "did make separate state-
ments in writing • • • anj other statements
by sig:n8 to the authorities in New Tork during
the coroner's inquest"
Mr. Hoyt replied:
"I cannot add anything, your honor, to what
I have already said, except this: The state's
attorney has suggested that in the event of
admissions or conversations of one being admit-
ted which would not be admissible against the
other that the caution of the court would teike
care of it Now, it does not seem to me that
while your honor in the caution is doing every-
thing you could to prevent it being used against
the other man, it certainly does get to the ears
of the jury, and it is pretty hard for any human
being to dismiss that from their minds, provided,
of course, such statements are admissible."
The mllng of the court ui>on the matlon
shows that It fally appreciated the ground
of the motion, viz. to prevent the iftate In-
troducing statements and evldoice whldi
were admissible against one accused and
not against the other.
The state's attorney has argued this point
as wholly within the discretion of the conrt
He has not daimed that the trial court was
not apprised of the ground of the motion
or the character of the evidence to be of-
fered. Mr. Hoyt expressly called the court's
attention to the coroner's finding and notes,
and we may assume that the court, learned
and experienced judge, and for a long period
a dlatlnguished state's attorney, bad these
before It
The court then knew that there were dif-
ferent statements in the nature of written
confessions and oral statements claimed by
the state to have been made by these ac-
cused, some of which might be admissible
against one accused and not against another
and others of which might be admissible
against one and not against another, and the
court knew that the state Intended to offer
evidence that Castelli had been taken to
the scene of the tragedy and had there re-
enacted all that was done by him and by
Vetere at and about the time of the killing.
I have never known a case where it was
more apparent at the Inception of the trial
tliat It would probably be difficult, If not
impossible, to disassociate the evidence thus
offered against one accused from the evi-
dence offered against the other. It was the
duty of the court, when this condition ap-
peared, to grant separate trials to these
accused.
Upon an examination of the evidence It
appears that during the taking of the evi-
dence In at least 21 instances the court
Instructed the Jury that certain evidence ad-
mitted was admissible against Castelll, and
not against Vetere, and In at least ten In-
stances the court instructed the Jury that cer-
tain evidence admitted was admissible against
Vetere and not against Castelll. And these
were not the only occasions when such In-
struction would have been pertinent
The amended finding recites:
"(1) Upon the trial much evidence was admit-
ted against the defendant Joseph Castelli only.
This was done against the objection of counsel
for the defendant Frank Vetere, made upon
tho ground that such evidence was prejudicial
to the defendant Frank Vetere, and that the
mere fact that such evidence was admitted only
against the defendant Joseph Castelli did not
properly protect tho defendant Frank Vetere's
rights, because the jury, having heard such evi-
dence and considered it against the defendant
Joseph Castelli, would be unable wholly to dis-
miss it from their minds in consideration of tho
evidence against the defendant Frank Vetere."
The court states tha/t under Its ruling
about half of the 596 pages of the printed
testimony was admitted. The finding fur-
ther states :
"The substance of this evidence which Is
claimed to have been harmful to tho defendant
Frank Vetere, is as follows: That the defend-
ant Joseph Castelli had killed his wife, of whose
murder he and the defendant Frank Vetere were
jointly charged, because he was mad at her for
telling the deaf people abont him, and because
she had ^iven him a disease; • * • that he
had admitted this was the reason; that said
Jcseph Castelli had treated his wife very badly,
and had been arrested at her instigation for
nonsupport, and had been sent to tho work-
house as a result thereof; that Joseph Castelll
had struck his wife on occasions; that said
Joseph Castelli had been taken by the police
authorities of New Haven over the route tiie
state claimed was taken by him in going to the
scene of the crime, and that he had acted out
the tragedy by showing how he struck his wife
from behind on the head several times with an
instrument; that thereupon he and tjie defend-
ant Frank Vetere left the scene of the crime
together and went to New Tork together; that
the defendant Joseph Castelli had stated that
he had planned to have Frank Vetere take Jo-
seph Castelli's wife to New Haven on the day of
tho killing, and that he told defendant Frank
Vetere that he was going to kill her at that
place, and had told Frank Vetere to find a room
in New Haven where the killing could be ac-
complished, and that defendant Frank Vetero
came to him while his wife was at dinner and
gave him the key to the room so that he could
get into it and that after Joseph Castelli had
killed his wife he took all her money and jewel-
ry, and he and Frank Vetere went to New York
together, and that on the way there he gave the
jewelry to defendant Frank Vetere; that said
defendant Joseph Castelli had stated that he had
paid for PVank Vetere's ticket to New Haven
on the day of the killing, and also for the meal
Frank Vetere had with Joseph Castelli's wife in
New Haven; and that defendant Frank Vetere
wrote Exhibit 40, which is made a part of this
finding, at the direction of said Joseph CastelU,
addressing the postal to Joseph Cfastelli and
signing it as coming from Joseph Castelli's
wife."
All of this evidence was vitally prejudi-
cial to Vetere, and It Is unreasonable to ex-
pect that the jury could have heard this evi-
dence and kept it wholly separate. No mat-
ter how carefully the trial court cautioned
the Jury as to its duty to do this, the Jury
could not have kept wholly separated In Its
nUnd the evidence admissible solely against
Castelll and that solely against Vetere. It
could not do It, because the jiuman mind
cannot even read this record and do it, and
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101 ATIiANTIO REPORTER
(Conn.
the printed page Is cold and dull compared
with same testimony given In open court. I
think the record shows that the court wan
fully advised preceding and during the trial
of the nature and character of this evidence,
and was in/ a position to determine that sub-
stantial injustice would be done to Vetere on
a Joint trial.
The majority opinion concedes that:
"Ordinarily the fact that one of the accused
has made a confession IncrlmiDating the other
would be a good ground for granting a separate
trial."
But it excludes Vetere from the benefit of
this rule because:
"Each of the accused had made a full writ-
ten confession of facts which, if legally corrobo-
rated, was sufScient to convict cither one of
them of murder in the first degree. It follows
that no material fact incnminatmg either one
of the accused came to the knowledge of the
Jury because they were tried together, which
would not also have come to the knowledge of
a jury if each had been separately tried and his
own confession admitted against him."
If this means that because each confession
covered the same facts it was immaterial If
both were received in evidence, since the jury
had before It the admissible confesblon,
which, If corroborated, was sufficient to con-
vict, it would seem to assume that the Jury
found the admissible confession proven and
corroborated without reference to the inad-
missible confession. Unfortunately we can-
not Imow what the Jury found proven, and
we cannot tell what part the inndmlssible
confessions' played in helping them reach
their conclusion. The evidence of this char-
acter excepted to not only covered written
confessions, but written statements of facts
and acts and a pantomime of the entire trag-
edy. It cannot be found that all of this in-
admissible evidence was contained In Vetere'a
confession, nor can it be found that his con-
fession was not illustrated, explained, and
corroborated by this inadmissible evidence,
some of it Intensive in kind and dramatic in
quality.
The logic of this argument is somewhat dis-
tnrbed as we read the qnestions asked Cas-
telll by the coroner:
"Didn't you make up your mind to kill her
before that, and didn't you tell Frank Vetere
that you were going to do it? No. Yes. Did
you plan to have Frank Vetere take her to
New Haven for you lost Sunday? Yes; by
me. Did Frank know that he was to take her
to New Haven and you were to kill her there?
Yes."
And throughout the route which the cor-
oner took Castelli over in enacting the pan-
tomime of the killing and what preceded and
followed It the coroner constantly asked
about Vetere, where he was, what he did,
and his part in the tragedy. These references
are simply illustrative of this entire record.
How can it be said that Its introduction was
not prejudicial to Vetere? OastelU did not
move for a separate trial; he must be held
to have waived any prejudice to his rights
from the Joint trial.
2. Vetere and Castelli were taken In cus-
tody In New York, and while in custody, but
not under arrest, Coroner Mix of New Haven
on April 26tb took their statements in New
York, first stating to them that be was the
coroner for New Haven county. Conn., and
engaged in Inquiring as to the death of Annie
Castelli ; that be could not compel them to,
and they were not obliged to, say anything
about it, unless they wished to, and he in-
quired if they were willing to tell what they
knew about It Subsequently by extradition
proceedings the accused were brought to New
Haven, and Castelli was taken on May 3d to
the office of the coroner, who wrote on a
piece of paper for Castelli:
"I am going to take you the Tay yon took
when you came to New Haven and to Crown
street. Will you show me?"
And Castelli nodded his assent, and short-
ly thereafter the coroner, with others, ac-
companied Castelli over the said route and
questioned Castelli in detail as to what he
and Vetere did, where they went, etc. ; in
short, be caused Castelli to enact the pan-
tomime of the tragedy and what took place
whUe they were in New Haven. All of this
evidence was duly objected to, and exceptions
noted. The court found that Castelli did all
of this voluntarily.
This Is an instance where a quasi Judldat
officer of the state procures an accused to
Inoriminate himself without warning him
that his acts and words would be used
against him. It .cannot in fairness be held
that the caution given by Coroner Mix in the
police station in New York about his giving
his statement must have been in the mind of
this deaf and dumb man when seven days
after the coroner In New Haven told him:
*T am going to take you the way you took
when you came to New Haven and Crown
street."
He was then entitled to a warning tbat
he did not need to enact the tragedy of his
crime in order to furnish the state evidence
of his galVt.
A statement made to a coroner by an ac-
cused under arrest without a warning from
him that he need not make it cannot be held
to be legally voluntary. So acts, conduct,
and statements explanatory thereof, made at
the solicitation, persuasion, or command of
a coroner, cannot be held to be legally vol-
untary if made without such warning.
The only evidence before the trial court
as to the voluntary character of this evidence
was the statement that no promises or in-
dncements were held out to OastelU to do
or say what he then did. This evidence, I
think, procured by the coroner without warn-
ing, was Insufficient and inadmissible because
in derogation of our rule as to involuntary
confessions. It was a violation of the rlphta
guaranteed to Castelli by article 1 of our Con-
stitution.
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CODD.)
PIERSON V. PIERSON ENaiNEERINO & CONSTRUCTION CO.
485
(91 Conn. K)
OTT T. CONNECTICUT CO.
(Supreme Court of Errors of Connecticut. July
6, 1917.)
Appeal and Ebbob «=3999(2)— Scope of Re-
view—Findings OF Fact.
Unless the jury's conclusion could not hare
been reached reasonably and without partiality,
corruption, or other improprietieB, its conclusion
must stand.
[Ed. Note. — For other cases, see Appeal and
Error, Cent. Dig. { 3910.]
Appeal from Superior Court, New HaTOi
County; Gardiner Greene, Judge.
Actton by Max Ott against the Connecticut
Company. Judgment for plalntUT for $800,
and defendant appeals. No error.
Harrison T. Sheldon, of New Haven, for
appellant. Charles S. Hamilton, of New Ha-
ven, for appellee.
PER CURIAM. The defendant ODncedes
tliat the evidence presented to establish its
negligence was such as to entitle the plaln-
tUT to go to the Jury upon that issue, and
that clearly was the case. Upon the issue
as to the absence of contributory negligence,
evidence was before the Jury which, If be-
lieved, would furnish a reasonable basis for
the affirmative conclusion at which it arriv-
ed. Although we are not as strongly im-
pressed by the trustworthiness of some per-
tinent portions of that evidence as it appar-
ently was, we cannot forget that it was its
office to determine what the evidence estab-
lished, and that Its conclusion must stand
unless it appears that that conclusion was
one which it could not have reached reason-
ably and without Indicating that its members
were Influenced thereto by partiality, cormi>-
tion, prejudice, or otherwise improperly.
We cannot say that the trial court erred
in ruling that the Jury's conclusion that the
plaintiff was in the exercise of due care was
not one which, under the accepted rules of
law, it should disturb.
There is no error.
(92 Conn. 96)
PIEJRSON V. PIERSON ENGINEERING &
CONSTRUCTION CO.
(Supreme Court of Errors of Connecticut July
6, 1917.)
1. Beckivebs «=3l74(4)— PEBiassioN to Stm—
DiSCBETION OF CklUBT.
Whether a court will permit its receiver to
be sued is largely a matter of discretion.
[Ed. Note.— For other cases, seo Receivers,
Cent Dig. { 338.]
2. Beceivebs <8=»174(4) — Applioation to
Sue IN Anotbeb Ooubt— Discbbtion.
Where the action related to the title or right
of possession of property which had already been
taken into the custody of the state court, it
properly refused to permit its receiver to be sued
in the United States District (3ourt, the rule
"that where a court has once acquired jurisdic-
tion over a particular subject-matter it retains
it free from interference by any other court"
being applicable.
[Ed. Note.— For other cases, see Receivers,
Cent. Dig. | 336.]
Appeal from Superior Court, Hartford
County; Milton A. Sbumway, Judge.
Action by Martin E. Plerson against the
Pierson Ekigineerlng & Clonstructlon Compa-
ny. The application for a temporary receiv-
er was granted, and Maurice E. Davis peti-
tioned the court for leave to sue the re-
ceiver. Petition denied, and Davis appeals^
No error.
On April 27, 1916, a temporary recover,
afterward confirmed and appointed perma-
nent receiver, was appointed over the Pler-
son Engineering & Construction Company,
a corporation largely engaged in construction
work, whose machinery, tools, and equipment
were located at various places where the
work was then in progress. One Maurice El
Davis applied to the court for an order re-
quiring the receiver to deliver to him certain
property described in a so-called condition-
al bill of sale. The application was denied,
and his petition for leave to sue the receiv-
er was then filed and denied. The property
in question appears from the papers to In-
clude a large part. If not all, of the tangible
assets now In the hands of the receiver.
Alvan Waldo Hyde, of Hartford, for ap-
I)ellant. Lucius F. Robinson, of Hartford,
for appellee Holden.
BEACH, J. (after stating the facts as
above). The petition is singularly brief.
It ^mply alleges that the petitioner entered
Into an agreement, recorded and acknowledg-
ed according to law, with the defendant
company, whereby it was agreed that certain
goods and chattels delivered by Davis to the
company should remain the property of Da-
vis until certain payments had been made
by the defendant; and that neither the de-
fendant nor the receiver has made the pay-
ments, although the receiver Is now In pos-
session of the property. Wherefore the pe-
tltlcmer prays for leave to bring suit to
determine bis rights under the contract.
There is no allegation or finding that Da-
vis was the owner of the property at the time
when the agreement was executed, or that
the payments to be made were installments
of an agreed purchase price. On the con-
trary, the agreement refers to "construction
work now In progress in the town of Bur-
lington," and recites that a large part of
the equipment is located there. So far as
this record shows, the transaction between
Davis and the Plerson Engineering & Ck>n-
structlon Company may have been an attempt
to secure Davis for past or present advanc-
es by giving him a conditional bill of sale
Instead of a chattel mortgage. It also ap-
pears from the finding that the property de-
scribed In the agreement was, at the time of
testVoT otliar oasM laa same toplo and RBT-NUIIBE& In all Ker-Numbered Dlgeats and IndezaB
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101 ATIANTIC REPOHTER
(ConB.
filing the petition, In use by the receiver In
carrying out contracts made by the defend-
ant before the receivership.
The petition does not indicate what partic-
ular kind of an action tlie petitioner de-
sires to bring against the receiver. The
prayer for relief Is broad enough to Include,
if granted, permission to bring replerio, and
take the property out of the custody of the
court pending the determination of the pe-
titioner's rights under the contract Under
the circumstances, a summary dl^ossession
of the receiver by replevin is out of the ques-
tion. The property is already In the cus-
tody of the court, which Is making use of
It in carrying out the defendant's contracts,
in an attempt to conserve the defendant's
assets for the benefit of all concerned.
[1] Finally, the question whether a court
will i>ermit Its receiver to be sued Is largely
a matter of discretion. There Is no reason
why the superior court, being in possession
of the property and able to administer full
relief to the petitioner, should allow him to
bring another action in the same court to
try out hla alleged title to or Interest in the
property.
[2] Presumably, the desire is to bring an
acticm in the District Court of the United
States; Davis bdng described In bis petition
as a citizen of New York. In such cases
much depends on the character of the ac-
tion. If in the nature of a suit in personam
not affecting specific assets, the court of
the receivership may consistently allow its
receiver to be sued In another court In the
exercise of Its discretion. But if, as in
this case, the action relates to the title to
or right of possession of property which has
already been taken into the custody of the
court, "the rule that, where a court has
once acquired Jurisdiction over a particular
subject-matter, it retains it free from Inter-
ference by any other court, is that which
governs." Links v. Connecticut River Bank-
ing Co., 66 Conn. 277, 33 Ati. 1003.
There is no error. The other Judges con-
curred.
(82 Conn. 47)
STATE V. TRIPLETT.
(Sopreme Court of Errorti of Connecticut. July
6, 1917.)
CoNSFiRACT iS=»47— Raps 4=953(3)— Assault
—Intent— Evidence.
Evidence, on prosecution ■ for conspiracy to
commit rape and for assault to commit rape, the
overt acts being committed by another, and any
liability of defendant being tliat of accessory,
and tlie purpose of the parties, as shown by the
evidence, being to obtain evidence against the
woman's character, held not to establish the
necessary element of intent to rape.
[Ed. Note. — For other cases, see Conspiracy.
Cent. Dig. §S 105-107; Rape, Cent. Dig. { 80.]
Appeal from Superior Court, New Haven
County ; Edwin B. Gager, Judge.
Hampden Triplett, alias Granville Xrlplett,
was prosecuted on Information in three counts
charging: First, a conspiracy to commit
assault ; second, a conspiracy to commit rape ;
and, third, an assault with intent to commit
rape. He was convicted on the seccmd and
third counts, and appeals. Reversed, and
new trial ordered.
Dorothy A. Triplett, residing in New York
City, is the wife of John B. Triplett, a clergy-
man residing In New Jersey. The accused
is the brother of John B. Triplett and a
lawyer resident of and practicing in New
York City. In February, 1914, Mrs. Triplett
left her husband, taking with her their child,
and went to reside with her mother in New
York. A few months later she began pro-
ceedings in the courts of New York for a
separation from her husband upon the groimd
of his cruel and inhuman treatment and non-
support of her, for the custody of their minor
child, and for an allowance for the support
of herself and child. The accused, acting in
his brother's Interest, took steps to defeat
that proceeding, and employed one, Intown
in the present case by the name of Wilson,
to watdi Mrs. Triplett, and to secure evi-
dence which might be used against her.
The state offered evidence to prove, and
claimed to have proved, that the accused and
Wilson conspired together to secure evidence
touching Mrs. Trlplett's chastity which could
be so used, and to that end it was planned
and arranged between them that Wilson,
under the guise of a real estate agent, should
lure Mrs. Triplett to New Haven upon the
false pretense that she was to meet a Mrs.
Allen, residing there or near there, who was
a possible purchaser of a piece of prop-
erty in Canada belonging to Mrs. Trlplett's
mother; that Wilson succeeded in arranging
for a meeting between Mrs. Triplett and the
pretended prospective purchaser at the Hotel
Garde in New Haven, where they were to
meet, the former being accompanied by
Wilson; that Mrs. Triplett so accompanied
went to New Ilaven and to the hotel for the
purpose of lilling this pretended appoint-
ment; that upon their arrival at the hotel
Wilson reported that Mrs. Allen had not yet
arrived, and that they thereupon went In-
to the dining room; that Wilson thereafter
left the dining room upon some pretense
and went to the desk and registered himself
and Mrs. Triplett as husband and wife un-
der an assumed name, and received the assign-
ment of a room ; that meanwhile the accused
and two New York men, whom he had em-
ployed for tho purpose, lutown as Campbell
and Donahue, had arrived at the hotel by
prearrangeiuent and taken a room; that at
the time Wilson registered he conferred witli
Triplett or one of his associates as to the
program which was to be followed ; that Wil-
son returned to the dining room and reported
that Mrs. Allen bad arrived and was in ber
»Por otbar
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STATE ▼. TRIPtiETT
48T
room upstairs waiting for them; that Wil-
son and Mrs. Trlplett then went, as the latter
supposed, to meet Mrs. Allen; that Wilson
showed the way to the room which had been
assigned to blm ; that, as WUson opened the
door and Mrs. Trlplett entered, she fonnd
that no one was there to receive her and that
the room was an unoccupied bedroom; that
she turned to leave, facing WUson, who bad
followed her through the door; that as she
was about to depart Wilson pushed her upon
the bed and seized her violently to keep her
there; that a vigorous struggle ensued, dur-
ing which Mrs. Trlplett was badly bruised
and lacerated upon one of her legs and thighs
over a considerable area, bruised in h^
right arm, and her clothing In places torn;
that while this struggle was proceeding Trlp-
lett and bis associates appeared at the un-
loclted door, knocked, and entered ; that the
struggle between Wilson and Mrs. Trlplett
then censed, Wilson remarking, "I got her,"
and the accused replying, "I knew damn well
you'd get her ;" that Mrs. Trlplett then pass-
ed into the ball, and out of the hotel to
the station, where she later took a train for
New York ; and that the accused followed her
downstairs, went to the desk, called the at-
tention of the clerk to the occupancy of the
room by a couple not man and wife, and
later returned home
The claim of the accused, overwhelmingly
contradicted by the state's testimony, was
that after having employed Wilson he be-
came suspicious of his unfaithfulness In that
employment, and that he had entered Into
lUiclt relations with Mrs. Triplett ; that, hav-
ing overheard a telephone conversation be-
tween them making an appointment to go to
New Haven by a specified train, he determined
to follow them and hastily employed Camp-
bell and Donahue to assist him In tracing
their movements; that they succeeded in trac-
ing them to the hotel and in locating them in
a room which they visited, only to find Wil-
son and Mrs. Trlplett In bed together and
undressed.
Spotswood D. Bowers, of Bridgeport, for
appellant. Amon A. Ailing, State's Atty., and
Walter M. Pickett, Asst. State's Atty., both
of New Haven, for the State.
PRENTICES, C. J. (after stating the facts
as above). The defendant was convicted
upon two counts, one for conspiracy to com-
mit the crime of rape upon the person of
Dorothy A. Trlplett, and the other for an as-
sault upon her committed with intent to com-
mit rape. The state made no claim that he
personally participated in an assault upon
Mrs. Trlplett or performed any overt act in
jPnrtherance of such assault by another. The
overt acts which furnished the basis of the
state's charge were committed by a person
known in the case by the name of Wilson,
The accused's criminal liability, if liable he
is as charged in the two counts, is that of
an accessory. No evidence was offered tend-
ing to show that Wilson ravished Mrs. Trip-
lett. There was evidence impressively estab-
lishing that he committed an assault upon
her. It was incumbent ui>on the state, there-
fore. If it would furnish a sufficient founda-
tion for the defendant's conviction upon the
last-named count, to establish beyond a rea-
sonable doubt that Wilson's assault was
made with the Intent and purpose of ravish-
ing Mrs. Triplett, and. If a conviction upon
the first-named count was to be Justified, to
establish In like manner that any combina-
tion or conspiracy which may have existed
between the accused and Wilson comprehend-
ed such ravishment within Its scope and pur-
pose. In other words, it was essential to
the state's successful prosecution of the de-
fendant, under either of the two counts npon
which conviction was had, that it be shown
beyond a reasonable doubt that there was an
intent or purpose on the part of the parties
Implicated in the affair under Investigation,
or some of them at least, that carnal iuiowl-
edge of Mrs. Triplett be had forcibly and
against her will.
Were the evidence confined to the scene In
the bedroom In the hotel where Wilson laid
violent hands upon Mrs. Triplett, it might
well be Inferred that his purpose was her
ravishment; but the exigencies of the state's
case, which required that the accused be
criminally connected with what there tran-
spired, demanded that the evidence take a
wider range. As a result, we have in the
record a disclosure of collateral matters and
events vitally Important to an Intelligent un-
derstanding of the situation In which Wilson
is found committing bis assault, and throw-
ing a flood of light upon the motive behind
It and the end It had In view.
The story, as the state's evidence discloses
it, is in all Its details a long one, and need not
now l>e rehearsed. It Is sufficient to say thi>t
It shows no other motive behind the affair
and no other object sought by means of it
than the provision of a foundation for evi-
dence derogatory to Mrs. Triplett's character
for use In defeating her pending action against
her husband, a brother of the accused, for
a separation and support The theory of the
state was and Is that the accused was de-
sirous of obtaining such evidence; and to
that end employed Wilson, Campbell, and
Donahue to carry out a carefully planned
scheme In accordance with which Wilson was
to lure Mrs. Trlplett to the hotel in New
Haven and to a sleeping room therein on the
false pretense of meeting there a lady on a
business errand Involving the sale of real
estate, and the accused, accompanied by
Campbell and Donahue, were to appear upon
the scene following Mrs. Triplett's unsuspect-
ing entrance to the room with Wilson.
Assuming that it was the moving purpose
of the parties whom Mrs. Triplett faced upon
this occasion to obtain evidence or the toun
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dation for evidence incriminatory of ber
diaracter, It ts more than difficult to imagine
liow the addition of ber ravishment to the
discovery of her presence in the room alone
with Wilson could either have added a fea-
ture beneficial to her husband's cause or been
thought that it would do so. Tbe truth
would not have helped, and perjury would
have been furnished no better founda-
tion for the desired testimony than ber pres-
ence in the room supplied. Not only was
there nothing to gain by the perpetration of
a rape, but the very attempt at Its perpetra-
tion threatened both disaster to the scheme,
through the outcry and commotion that
would be likely to result, and dire punish-
ment for the offenders singularly open to
detection. It is bard to imagine a more
senseless and foolhardy thing for the ac-
cused and his associates to have planned to
do, if they hoped for success in their Imputed
purpose, than that which the Jury, In order
to return its verdict, must have found that
they planned and did. It is well-nigh unbe-
lievable that a sane man, much less a train-
ed lawyer, would, in order to carry out a
plan devised for the purpose outlined, have
permitted so foolish, superfluous, and haz-
ardous a feature to' enter Into it as that of
the rape of the Intended victim of It.
As far as the assault is concerned, the
explanation that It was prompted solely by
the exigencies of the occasion, in order that
Mrs. Trlplett might be detained In the room
and found therein by the waiting and mo-
mentarily expected watchers, is far more
plausible and reasonable than that it was the
first step in a concerted attempt to commit
rape. Her discovery In the room was, for
the conspirator's purpose, as suflfldent an out-
come as any other produced by force could
have been. That purpose was as claimed by
the state, and no other involving the accused
in criminal responsibility is apparent, the se-
curing of a plausible and workable founda-
tion for testimony derogatory to Mrs. Trlp-
lett's character to be used to defeat her cause
against her husband. That foundation might
be obtained by the discovery of outward sus-
picious conditions which might safely be left
to speak for themselves before the trier, or
it might be secured through the discovery of
such conditions to be utilized in testimony
which should weave around it manufactured
details which would make a more explicit
tale of wrongdoing. Her escape, before the
prearranged arrival of those hovering near
to entrap her under circumstances themselves
suspicious' and susceptible of being embroid-
ered Into something worse than suspicion,
would seriously threaten the successful ex-
ecution of the plan which had been arranged.
That fact must have been apparent to Wilson,
and bis resort to force to prevent her escape
was not an unnatural consequence.
As one reads the repulsive story which the
state's evidence presents with a striking ar-
ray of proof, it is easy to see how the Jury
was Influenced to return a verdict which
would prepare the way for the Infliction of
severe punishment upon the defendant for
the part he played In it Although we may
share in no slight degree the Jury's natural
feelings of disgust and repugnance at what
the evidence appears clearly to disclose was
done to Mrs. Trlplett, we are bound to say
that an examination of It shows that, what-
ever else it satisfactorily establishes, there
is in It a palpable failure of proof, not to say
proof beyond reasonable doubt, establishing
that the essential element of an Intent to rape
was involved In any combination entered in-
to by the parties charged therewith, or that
the accused assisted, aided, or abetted in any
act which had that design in view. Without
such proof a conviction upon either count
was without Justification.
In view of our conclusion, we have no oc-
casion to consider the sufliciency of the re-
maining somewhat numerous assignments of
error.
There Is error, the Judgment Is set aside,
and a new trial ordered. In this opinion the
other Judges concurred.
LYONS V. WALSn.
(93 Conn. IS)
(Supreme Court of Errors of Connecdcut.
July 6, 1917.)
1. AnjoiNiNQ Landownees (8=>4(6)— Lateb-
AL SUPPOBT — ■RbTAININO WALL — DOTT TO
Maintain.
Where A. cut down his lot below the level
of B.'s adjoining lot, and put a retaining wall
wholly on B.'s lot, A. s successor In title was not
bound to maintain the wall, which became part
of B.'s lot, though he would have been bound
to do 80 had the wall been placed on A.'s lot;
the right of action for destroying lateral support
being personal against the wrongdoer, and the
wrong binding the land to nothing.
[Ed. Note. — For other cases, see Adjoining
Landowners, Cent. Dig. § 36.]
2. Injunction «=9l4 — Mandatory Injunc-
tion— ^Restobation of Retaining Wall.
While the owner of a lot on which parts of a
disintegrating retaining wall on the adjoining
lot falls may recover for damages done, he may
not have mandatory injunction for restoration of
the wall ; irreparable injury not clearly appear-
ing.
[Ed. Note.— For other cases, see Injunction,
(Tent. Dig. i 14.]
Appeal from Court of Common Pleas, New
London County; Charles B. Waller, Judge.
Action by Mary R, Lyons against Mari-
anne Walsh for mandatory injunction for
restoration of a neglected wall and for dam-
ages for its partial collapse; defendant
counterclaiming for substantially the same
relief. Judgment for defendant on her coun-
terclaim, and plaintifC appeals. Reversed
and remanded, with directions.
^ssFor otlkcr easM ita ume toric and KET-MITMBBB In all Ker-Numbered DlgwU sad Indaxw
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LYONS V. WALSH
489
The parties own adjoining dty house lots
on a street in Norwich running north and
south. Both lots were originally In one
tract, and In Its natural condition the land
sloped unhrokenly and at a steep pitch from
the north. LoDg before either of the pres-
ent owners acquired title to her lot, the then
owner of the lower lot, who had purchased
from the original owner of the tract, leveled
a part of his land for buUdlng upon It, and
in so doing excavated and removed the soil
from this portion up to and along a section
of his northern boundary line. This destroy-
ed for a corresponding distance the natural
lateral support of the adjoining land of the
north lot, and to replace it he built into the
bank a retaining wall 10 feet high along this
portion of the east and west line. This was
set wholly upon the upper, or what is now
the Walsh, lot, and the dividing line of the
two properties lies along Its exposed south-
ern face. Some years afterwards, in 1895,
and after the defendant had become the
owner of the north lot, a later owner of the
south lot made another excavation in prepa-
ration for further building, and removed
more soil up to the Une as extended from
the eastern end of the wall. This (deration
removed the lateral support of the Walsh
land along the continued line, and In substi-
tution for this support he extended the wall
at the same height of 10 feet still further
along the Une, continuing it wholly on the
Walsh land, so that the dividing line of the
two lota follows the southern face of the
wall throughout its length. The height of
the wall measures the depth of the exca-
vations at the line, and no additional bur-
den requiring more than the natural lateral
support of the soil has ever been added to
the Walsh lot. The parties are Ignorant of
the circumstances under which the first sec-
tion of the wall was placed on the Walsh
lot, save that its purpose and the person
erecting It were as already stated, and, al-
though the remaining part of the wall was
built after the defendant had acquired her
present ovmershlp, the record is silent as to
why this part of the wall was also placed
whoUy upon her land. No deed dealing with
any of the property involved mentions the
wall. The plaintiff bought the south lot In
1913, and through neglect and the work of
tlie elements the wall has been disintegrating
for several years ; there being no evidence of
any effort l>y any <me to maintain It or keep
It In repair. It is now out of plumb in
parts, and stones from it have become loos-
eaei and dislodged, and have fallen upon
the plaintiff's land. Damage to the plain-
tiff from this cause during the two years
next before this action was brought amounts
to $25. More trouble of this character Is
lilcely to occur, and the wall is in danger of
farther collapse, unless it is strengthened or
restored.
Xliere was apparently no dispute between
the parties as to these essential facts, and
upon them the plaintiff claimed, by way of
equitable relief, a mandatory Injimctlon di-
recting the proper repair or rebuilding of
the wall by the defendant, and legal relief
In damages for the injiu? already incurred.
The defendant. In pursuance of a counter-
claim which rehearsed the more Important
of the facts and supplemented them with
fivther allegations in the nature of assumed
legol deductions from them, claimed a man-
datory injunction compelling the restoration
of the wall by the plaintiff to a condition of
etDcieucy, or the furnishing of other ade-
quate support for the defendant's land. Hie
trial court rendered judgment for the de-
fendant for a mandatory Injunction as pray-
ed for, and for nominal damages, and the
plaintiff's claim of error, alternatively stat-
ed in its several assignments upon the ap-
peal, is based upon the court's holding that
the duty of maintaining the wall rested upon
the plaintiff, and in not holding that it rest-
ed upon the defendant
Wllllara H. Shields and William H. Shields,
Jr., both of Norwich, for appellant. Jere-
miah J. Desmond, of Norwich, for appellee.
CASE, J. (after stating the facts as above).
[1] When a former owner of the Lyons land
first disturbed its surface, he did so at the
peril of answering in damages if his act
should destroy the lateral supi)ort which was
his neighbor's by natural right The law
as to that situation is universally settled:
"The right of an owner of land to the support
of the land adjoining is jur« naturte, like the
right in a flowing stream. Every owner of
land is entitled, a« against his neighbor, to have
the earth stand and the water flow in its natural
condition." Gilmore v. Driscoll, 122 Mass. 109,
201, 23 Am. Rep. 312; Trowbridge v. True, 52
Conn. 190, 52 Am. Rep. 579 ; Ceffarelli v. Lan-
dino, 82 Conn. 126, 72 AU. 564.
He apparently recognized this, and sougbt
to forestall the probable result to the higher
ground of the upper lot by substituting an
artificial support to safeguard it In every
effective sense he accomplished thla purpose,
but what he actually did was to take away a
portion of his neighbor's land and replace it
with a solid stone wall. Whether he in-
vaded the adjoining lot by mistake or with
its owDefa consent is of no consequence, so
far as his successors in title are concerned.
It was in any event so done as to leave no
charge upon his own land. The wall became
as much a part of the realty upon whldi it
was built as the earth had been which it re-
placed, and with the same Incidents and bur-
dens of ownership as attach to every part of
the land on which it st{inds. Ward v. Ives,
91 Conn. 12, 21-22, 98 AtL 337.
The accepted law with relation to lateral
support is therefore without direct slgnlfl-
cance here, and of only an incidental inter-
est in its possible bearing upon the equities
which the case discloses. Such right arising
from it as the defendant's predecessors in
title had in relation to the adjoining land
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490
101 ATLANTIC REPORTER
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was by way of relief in damages, once a
wrongful invasion had been followed by an
actual injury to the land. There Is, of course,
no natural right to equitable interference for
the preTention of such an anticipated wrong,
thongh it may rery well be that in cases pre-
senting situations peculiar to themselves and
disclosing the essential elements of irrepar-
able injury a court of equity will Interpose its
aid. But the redress contemplated by the law
is that whidi comes from an infringement of
the right that works actual damage. The vio-
lator is then answerable for his tort, whether
he be the owner of the premises on which
the initial mischief is committed or the merest
stranger to the title. Gilmore v. Driscoll,-
122 Mass. 190, 208. The action is a purely
personal one. The wrong which gives rise to
it binds the land to nothing— charges the title
with nothing. But if the owner, in anticipa-
tion of such an injury arising out of his acts,
sets an artificial structure on his own land
to prevent it, and to replace what he has re-
moved, he assumes an obligation which eq-
uity will recognize, and charges the land with
its maintenance, so far, at least, as that main-
tenance is necessary to preserve his neigh-
bor's rights.
The defendant seems to assume that In
some way the situation presented here is
controlled by this principle, and relies chief-
ly upon the earnestly urged unfairness of
saddUng the maintenance of the wall upon
her, when It was confessedly erected by a for-
mer owner of the adjoining land to protect
what later became hers from the consequenc-
es of his invasion. However persuasive her
statement of the equities may apx)ear in this
limited view of the situation, the claim is not
tmable. It ignores the entire absence of the
link vitally necessary here to fasten any lla-
Mlity upon the plaintiff — a burden upon the
land Itself which attaches to her as its own-
er. She Is obviously only reachable through
this, and it Is not even seriously suggested
that under the positive and well-understood
law of real property the land came to her
charged ■<*ith any duty to this wall. As to
any snpposable personal agreement by the
builders of the wall to maintain it, if we
were at liberty on the record before ua to
assume that such an agreement ever existed,
there Is no conceivable theory of law or eq-
uity which could transfer the obligations of
such a personal undertaking to the plaintiff
upon her mere acquirement of a title In no
way affected by it.
But, while these considerations are decisive
of the case, it is apparent that something
might l>e said for the plaintifrs equitable
position here, if there were occasion to treat
the matter in that aspect She succeeded to
her present ownership as recently as 1913,
and took the land as she found it The wall
was no part of her purchase, but was an open
and visible part of the adjoining property.
We may pr(q;>erly assume from the facts
found that It was then in an advancing con-
dition of decay. Whatever the original pur-
pose of its erection had been, it became, after
her ownership began, a source of annoyance,
if not a menace, to her occnpatlou. B<ven had
she taken title with knowledge that the struc-
ture had been voluntarily put there by some
former owner of the land she was buying,
to avoid a personal liability for a tort of his
own, this could not weaken her position from
the standpoint of equity. She was in no
sense equitably, any more than legally, an-
swerable for any act of her predecessor In
title, to which she was not a party, and which
did not result in a cliarge upon the land. We
are unable to sustain the Judgment of the
trial court, charging the plaintiff, as It does,
with the duty of maintaining the wall, but
the finding is comprehensive enou^ to war-
rant a final disposition of the case without a
retriaL
[2] The plaintlET Is entitled to recover for
the damage already done to her land by fail-
ing parts of the wall; but as to her claim
for equitable relief by way of a mandatory
injunction directing the rebuilding or restora-
tion of the wall to its original condition, we
are not satisfied that Irreparable injury is
clearly enough disclosed to wurrant the ex-
ercise of so drastic a power. Equitable re-
lief of this character Is, and for the most ob-
vious reasons should be, granted only in slta*
atlons whidi so clearly call for it as to make
Its refusal work real and serious hardship
and injustice. The facts of the case before
us hardly bring It within this requirement.
There is error, the Judgment is reversed,
and the cause is remanded, with directions to
the court of common pleas to enter a Judg-
ment for the plaintiff to recover damages,
assessed at $26. The other Judges concurred.
DOBUS v. LION.
(K Conn. S&)
(Supreme Court of Errors of Connecticut July
», 1917.)
1. LiMITATIOR OF ACTIONS 9s>S5(3)— ABBKITOK
FBou State— Resi DEN CB within Statb.
Where the debtor in 1892 took an apart-
ment in New York City, removing from Con-
necticut, except that until 1906 he continaed
to keep a residence at his mother's house in
Connecticut, where for a considerable part of
each year be spent three days a week, and his
name was on the voting list in Connecticut,
he was not without the state so as to toU the
statute of limitations.
[Ed. Note. — For othar cases, see linoitatioii
of Actions, Cent Dig. { 451.]
2. Domicile <6=>1— "Resident."
A man may be a resident in two or more
states at the same time.
[Ed. Note.— For other cases, see Domicile.
Cent. Dig. { 1.]
3. Process <S=>61— "Usual Place of Abode."
The bouse where a resident of Connecticut
habitually spends three days of the week for
14 years, except when away on trips and vaca-
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CARTER T. ROWB
491
tionR, is bis usual place of abode for the pur-
pose of serving process upon him.
[Ed. Note. — VoT other cases, see Process, Cent,
Dig. { 69.
For other definitions see Words and Phrases,
First and Second Series, Usual Place of Abode.]
Appeal from Court of Common Pleas, Fair^
field County; Frank L. Wilder, Acting Judge.
Action by James H. Doms against Flor-
ence G. Lyon, executrix of Charles H. Lyon,
deceased. Judgment for defendant, and
plaintiff appeals. No error.
The plalntUTs cause of action accrued
March 9, 1892, against Charles H, Lyon, then
of Bridgeport, and this action was not
brought against his executrix until Decem-
ber, 1915. To a plea of the statute of limi-
tations the plaintiff replied that Lyon re-
moved from the state of Connecticut in 1892,
and continued to reside out of the state un-
til his death in April, 1915. The reply was
traversed, and the finding on that point Is
that Lyon and his wife took an apartment In
New York City in 1892, and removed from
the state, and were without the state until
his death, except that from 1892 until the
death of his mother in 1906 Lyon continued
to keep a residence at his mother's house In
Bridgeport, where for a considerable part of
each year he spent three days a week. Also
that Lyon's name was on the voting list of
the dty of Bridgeport until his death, that
he sometimes voted there, and that it was
his usual custom to spend Thursdays, Fri-
days, and Saturdays of each week at bla
mother's house, where he had a room, except
those portions of the year when he was away
from Bridgeport on some trip or vacation.
There are other findings not inconsistent with
the above which. In the view we take of the
case, need not be repeated.
William H. Comley, Jr., and Charles A^
H<^wood, botb of Bridgeport, for appellant.
W. Parker Seeley, of Bridgeport, for appel-
lee.
BBACH, J. (after stating the facts as
above). [1] The controlling question la
whether Lyon was "without the state," with-
in the meaning of General Statutes, | 1125,
from 1892 to 1906, so that the statute of
limitations did not run against the plaintiff's
cause of action during that period. If It did,
the plea was good. It seems clear that the
finding condudes the point against the plain-
tiff's contention. The finding Is that Lyon
was without the state except as therein stat-
ed; but the exceptions nullify the affirma-
tion.
In Sage v. Hawley, 16 Conn. 106, 41 Am.
Dec. 128, we held that the proviso as to ab-
sence frcHU the state did not refer to tem-
porary absences, but was Intended to pre-
serve the plaintiff's right of action during «
period when, by reason of the defendant's
absence. It was impossible to commence an
action In personam against the defendant;
and we said that If the defendant is domi-
ciled or resident vrlthin the state, although
temporarily absent therefrom, the statutes
Still provide a way by which a personal ac-
tion may be commenced against him, in
which a Judgment may be obtained which
will be binding and conclusive between the
parties, and therefore in such a case no sav-
ing of the right of the plaintiff to commence
such an action is necessary.
In this case the defendant was not even ab-
sent from the state. He was customarily In
Bridgeport three days in the week, and by
the exercise of ordinary diligence the credi-
tor could have ascertained that fact, and
commenced his action at any time.
[2, S] The finding that he sometimes voted
in Bridgeport indicates very strongly that
Lyon himself regarded Bridgeport as his
legal domicile. There Is no finding on the
point of domicile, but It Is expressly found
that be had a residence in Bridgeport, and
the necessary Inference from the other facts
found Is that he also had a usual place of
abode in Bridgeport. A man may be a resi-
dent In two or more states at the same time,
and the bouse where a resident of Connecti-
cut habitually spends three days In the week
for a period of 14 years, except when away
on trips and vacations, is his usual place of
abode for the purpose of serving process up-
on him.
There Is no error. The other Judges con-
curred.
02 Conn. (2)
CARTER V. ROWB et aL
(Supreme Court of Errors of Connecticub July
6, 1917.)
1. Mastteb ANn Sebvaut «s>37S(2) — Wobk-
iflEN's Compensation Act — Injubt in
COUBSK OF AND OUT OF EmPLOTMENT.
Where one was employed to work on a boat,
and on reporting at the appointed time for sail-
ing was informed it would not sail till 11
o'clock, and given permission to use the in-
tervening time as he pleased, and went ashore,
his injury by fall while returning at 10 o'clock,
and while going tlu-ough the employers' yard,
a not unreasonable route, arose m the course
of and out of his employment.
Afpe&l from Superior Court, New Haven
County; James H. Webb, Judge.
Claim of Alexander G. Carter against
Henry C. Rowe and others under the Work-
men's Compensation Act (Laws 1913, c. 138).
From Judgment dismissing appeal from de-
cision and award of compensation commis-
sioner of the Tlilrd district in favor of plain-
tiff, and afUrming the award, defendants ap-
peal. Affirmed.
Patrick Healey, of Waterbury, for appel-
lants. L. Erwin Jacobs, of New Hav«i for
appellee.
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492
101 ATIiAJS'TlC ItEPOUTER
(Cona
WHEELER, J. The finding of the comml*
sloner recites these facts: On September 23,
1916, the plalntlfT entered into a contract of
employment as a hand upon the defendants'
boat, and was Instnicted by the defendants
to report for duty on the boat, which was to
sail at 6 o'clock In the afternoon of Septem-
ber 24th. The plaintiff reported on the boat
shortly before the hour of sailing. He waa
there informed that the boat would sail at
11 o'clock and shortly went ashore, leaving
hia baggage on the boat About 10 o'clock
In the evening he returned to the premises of
the defendants, and while going through
their yard to board the boat fell in the dark-
ness and suffered Injuries, for whldi he
claims compensation.
[1] The sole ground on the appeal to this
court is that the trial court erred in deciding
that the injury arose in the course of and
out of the employment of the plaintiff. Car-
ter's onployment was to have begun at 5
o'clock, and from the time be entered his em-
ployer's premises in order to reach the boat
until he boarded her shortly before 6, be was
doing something incidental to bis employment
and reasonably within its period. Employ-
ment may exist before actual work begins.
Just as it may continue after actual work has
ceased. When he left the boat and went
ashore he was, so far as the finding of the
commissioner discloses, engaged upon his own
business or pleasure, and not in the course of
bis employment. From the memorandum of
the commissioner it appears that this question
was not raised before him, which explains
Its absence from hU finding. If Garter left
the boat without orders and without permis-
sion, he voluntarily left his place of employ-
ment, and such dangers as be thereafter en-
countered could not be held to have arisen
in the course of or out of his employmait.
Any injury so suffered occurred outside the
place of his employment, since that was on
the boat and not on shore, and while he was
bent upon bis own business and not upon
the duties of his employment. Larke v. Han-
cock Mutual Life Ins. Co., 90 CJonn. 303, 97
Atl. 320, L. R. A. 1916B, 5»i; Mann v. Glas-
tonbury Knitting Co., 90 Conn. 116, 118, 96
Atl, .'568, L. R. A. 1916D, 86; Wnrren v. Had-
ley's Colliery Co., 6 B. W. C. G. 136.
In his memorandum of decision the trial
judge says: "He [Carter] was given permis-
sion to use the intervening time as be pleas-
ed." The parties at least In the oral argu-
ment, have argued the cause as if this fact
were a part of the finding before us. If we
so assume, it would follow that Garter had
been given the privilege of using bis time at
his will, and of leaving the boat and his
employer's premises and returning at hia
pleasure. This permission would be subject
to an implied qualification that he should re-
turn a reasonable time before the boat sailed
and by a reasonable route over the owner's
premises. The defendants have argued the
case upon the theory that the employment
of Carter began at 11 o'clock instead of at
5 o'clock. If their assumption were to be
made, it would not follow, in the absence of
express contract to the contrary, that Carter
could not have boarded the boat an hour be-
fore she sailed. That, it seiems to us, would
not have been an unreasonable time to have
sought the place of «nployment before the
boat was to salL Carter might well have
supposed there would be duties to perform
some time before the sailing. Fltzpatrlck v.
Hlndley Field Colliery Co., 4 W. C. 0. If
Carter left the boat by pefrmission, and while
returning to It and bis work he was injured
upon bis master's premises, and while he
was proceeding over a not unreasonable
route, and while he was at a place where he
had a right to be, and within the period of
his employment, which began at 5 o'clock, he
was injured in the course of his employment
and his employment was a proximate cause
of his injury.
There is no error. The other Judges con-
curred.
(92 Conn. 87)
SWANSON ▼. LATHAM & CRANE et aL
(Supreme Court of GTrrors of Connecticat. July
6, 1917.)
1. Master and Sebvant ®=»418(5) — Wobk-
men's Compensation Act— Review— Ques-
tions Reserved.
Where the superior court reserved for the
advice of the Supreme Court of Errors questions
of law raised on appeal from an award under
the Workmen's Compensation Act (Laws 1913,
c. 138), only the questions reserved can be con-
sidered.
2. Masteb and Sebvant «=»417(7) — Work-
men's Compensation Act — Findings op
Commissioner— Review.
Upon an appeal from the findings of the
commissioner under the Workmen's Compensa-
tion Act, the trial court does not retry the_ facts,
but decides upon the findings of the commis.«ion-
er, unless the appeal assigns as error the find-
ings, or omission to find any facts, and the court
finds that facts have been found, or omitted,
which would affect the result.
8. Master and Servant *=»^18(6) — Work-
men's Compensation Act — Findings of
Commissioner— Review.
Upon appeal under Workmen's Compensa-
tion Act from the decision of the trial court, or
upon a reservation in a compensation case, our
authority does not differ from that exercised by
OS in the ordinary appeal for errors in the find-
ings of tiie trial court.
4. Master and Servant ®=>875(2)— Injubies
to Servant— Course or Emflotment.
Defendants agreed as part of the contract
with their employes that they would pay them,
in addition to their regular wages, 90 cents
each day as transportation charges to and fTt,m
the place of employment. Defendants arranged
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SWANSON V. LATHAM A CRANE
493
vith'one of the workmen, who bad an automo-
bile, to carry the others. While retarning from
vork, thi automobile collided with a train and
the workmen including the driver were killed.
Held, in an action by the widow of a workman
for compensation under the Workmen's Compen-
sation Act, that the injury was one arisinK out of
and in the course of the employment.
6. Master and Servant «=>375(2) — Wobk-
hbn's Compensation Act — Pboximatk
Cause of Injubt.
The employment was the proximate cause of
the injury.
Case Reserved from Superior Court, Hart-
ford County ; Edwin B. Gager, Judge.
Proceeding under the Workmen's Compen-
«ation Act by Alice May Swanson against
Latham & <>ane, employer, and the .9<tna
Life Insurance Company, Insurer. Prom an
award of compensation by the compensation
commissioner, the respondents appealed to
the superior court to Hartford county. Ques-
tions of law raised reserved for the advice
of this court Judgment advised, dismissing
the appeaL
Warren B. Johnson and Leonard J. Col-
lins, both of Hartford, for appellants. Wil-
liam A. King and Samuel B. Harvey, both
of WlUlmantic, for appellee.
•WHBELER, 3. The facts essential to
the decision of this appeal, as found by the
commissioner, are these:
The claimant Is the widow of Andrew S.
Swanson, a carpenter who was employed by
the respondents, Latham & Crane, building
contractors, of WlUlmantic, to work upon
the Dennis house In Stafford Springs, for
the r^nir of which the contractors had the
contract. The contractors agreed, as a part
of the contract of employment with Swan-
son and five other employes, Includtog Os-
terhout, similarly employed, who lived In or
near WlUlmantic, that they would pay them,
In addition to their regular wages, their
transportation charges, fixed at 90 cents each
day, from WlUlmantic to Stafford Springs
and return. These employes were at Uberty
to remain In Stafford Springs and use the 90
cents for board, or to return to Willimantic
and use It tor transportation.
The contractors arranged with Osterh<mt,
one of these workmen, to carry these em-
ployes tp and from Stafford Springs In his
own automobile, <H)erated and maintained
by him, for the sum of 90 cenfts a day for
each man.
On this particular Job the transportation
for these men was provided by means of
Osterhout's automobile, which the men so
used, and the 90 cents for each man paid
by the contractors to Osterhout, and charged
to Deonii), and later paid by him.
On December 7, 1916, about 5 o'clock In
the afternoon, while returning from their
work In Stafford Springs to their homes In
WllUmantIc, the automobile collided with a
train at a railroad crossing, and Swanson
and the other five men in the autoraobUe
were kUled.
The questions of law reserved are:
"Did the commissioner err in holding: (1)
That the injury to and death of the decedent
arose out of his employment with the respond-
ents Latham & Crane. (2) That the injury to
and death of the decedent arose in the course
of said employment. ^3) That the claimant was
entitled to compensation by reason of said in-
jury and death. (4) That there was an undei^
standing or agreement between the employers
and the Carpenters' Union whereby the former
agreed to provide transportation for the de-
cedent. (5) That it was a part of the contract
of employment between the employers and the
decedent that the latter was to be carried to
and from his work by Oaterhoot.''
[1] These questions, following the corre-
spondingly numbered reasons of appeal, are
Identical with them, except that to questions
3, 4, and S the words "upon the evidence," ap-
pearing to the reasons of appeal after the
words "In holding," are omitted. This omis-
sion has not changed the purpose or meaning
of the reasons of appeal. The questions re-
served are, and were Intended to be, those
contained to the reasons of appeal.
Assignments of error 4 and 5 to the ap-
peal from the commissioner and questions 4
and 5 upon the reservation were, we presume,
intended as statements of error committed by
the commissioner in finding the facts set
forth in these assignments; the words "in
holding" betog used to the sense of "in flnd-
tog." We have examtoed the evidence with
care, and are of the opinion that the trial
court might reasonably have found the facts
complatoed of.
[2,3] Question 3, reserved, which is as-
.slgnment of error 3, Is based upon a mistaken
conception of the nature of the appeal from
the commissioner. The trial court does not
retry the facts. It decides the appeal upon
the finding as made by the commissioner, un-
less the appeal assigns as error the finding or
omission to find any facts, and the court finds
that facts have been found or omitted, which,
If found, to accordance with the evidence,
would affect the result. The right of the tri-
al court to correct the flndtog of the commis-
sioner is similar to that exercised by us
upon a proper appeal over the finding of a
trial court. And our authority upon appeal
from the decision of the trial court, or upon
a reservation in a compensation case, does
not differ from that exercised by us in the
Ordtoary appeal for errors to the findtog of
the trial court.
[4] The remaintog assignments of error
are the holding of the commissioner that the
tojury suffered arose in the course of and out
of the employment The contract of employ-
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494
101 ATLANTIC REPOBTEB
(ConiL
ment between the decedent and the respond-
ents required the decedent to work outside
of the place of his residence, WUllmantlc, If
his employer should so desire; and the re-
spondents agreed that, while the decedent
was at work in Stafford Springs, they, as a
part of his contract of employment, would
conTey the decedent from his home to his
work and back to his home each day in an
automobile provided by them. The work be-
gan when the decedent reached Stafford
Springs; the employment began when the
decedent boarded the automobile at WiUlman-
ilc, and continued during the trip and during
the work, and on the return trip to WlUiman-
tic. Transportation to and from his work
was incidental to his employment ; hence the
employment continued during the transporta-
tion in the same way as during the .work.
The Injury occurring during the transporta-
tion occurred within the period of his em-
ployment, and at a place where the decedent
had a right to be, and while he was doing
something incidental to his employment, be-
cause contemplated by it. The case falls
clearly within the construction we have here-
tofore placed upon the terms of the statute
"arising in the course of the employment."
Larke r. Hancock Mutual Life Ips. Co., 90
Conn. 303, 308, 97 AtL 320, L. R. A. lOlOES,
68i. An injury received by an employ^
while riding, pursuant to his contract of
employment, to or from his work in a con-
veyance furnished by his employer, is one
which arises in the course of and out of the
employment.
[t] The injury arose in the course of the
employment and while the decedent was be-
ing transported to his home ; consequently
the employment was the proximate cause of
It. It therefore arose out of the employment ;
for these are the tests to ascertain in a given
case whether an Injury arose out of the
employment. Larke v. Hancock Mutual Life
Ins. Co., 90 Conn. 303, 97 Atl. 320, L. R. A.
1916E, 584.
The commissioner did not err in the mat-
ters reserved. The superior court is advised
to render its judgment dismissing the appeal
The other Judges concurred.
m Conn, tl)
08TEEH0DT T. LATHAM & CRANE et al.
(Supremie Court of Errors of Connecticut.
July 6, 1917.)
Case Reserved from Superior Court, Hart-
ford County; Edwin B. Oager, Judge.
Proceeding tmder the Workmen's Compen-
sation Act (Laws 1913, c. 188) by Cora T. O*-
terhout against Latham & Crane, employers,
and another. From an award of compensa-
tion by the Compensation Commissioners, the
respondents appealed to the superior court in
Hartford county. Case reserved. Judgment
advised, dismissing the appeal.
Warren B. Johnson and Leonard J. Collins,
both of Hartford, for appellants. William A.
King and Samuel B. Harvey, both of Wll-
limantlc, for appellee.
WHEELER, J. The facts are identical
with the comtianlon case. Swanson v. Latham
& Crane et al., 101 AU. 492. The decedoit,
Osterhout, was an employe of the respond-
ents, and the contract of employment with
him was the same as with Swanson. He
stood in a dual relation to Latham & Crane.
As the owner of the automobile, he was their
agent to transport in his own automobile
Swanson and the other employfis, including
himself, from Wllllmantic to Stafford Springs
and back each day, for the sum of 90 cents
each day for each employe, Including him-
self. As an employe his contract of emiHoy-
ment during the period of transportation did
not differ In any essential from Swanson's
and the other employes'. So far as the facts
disclose, Osterhout's case does not dUter from
Swanson's.
The superior court is advised to render its
Judgment dismissing this appeal.
(12 Conn. IJ})
McNERNET v. DOWNS.
(Supreme Court of Errors of Connecticut. Aug.
2, 1917.)
1. Principal ano Subett «=»46— Actions—
Defenses.
A surety cannot deny facts recited in his
obligation, unless such recital was inserted by
mistake, and cannot object that the bond was
given without consideration, that judicial pro-
ceedings In which it was given were irregular,
or that necessary preliminary steps were not
taken ; but he is not estopped from question-
ing the legality of its execution.
[Ed. Note.— For other cases, see Principal and
Surety, Cent Dig. H 91-95.]
2. Attachment ®=»180 — Ofticeb'b Receipt —
Vaupitt.
An oflSoer's receipt, executed to release at-
tached property, which provides that the obligor
will redeliver the property or pay a sum certain,
and which contains a waiver clause that the
obligor is estopped from denying the attachment,
the ownership, and the value of the property, is
not prohibited by statute, is not against public
policy, and is supported by sufficient considera-
tion.
[Ed. Note.— For other cases, see Attadiment,
Cent. Dig. {§ 609-622.]
3. Attachvent «=3l89— OnrcEB's Reckipt—
Actions— Defenses.
In an action on an officer's receipt, executed
to release attached property, the obhgor cannot
object that the judinnent asainst the defendant
io the principal action was not binding upon the
obligor, because no legal service was made of the
process, nor statutory provisions complied with.
[Ed. Note. — For other cases, see Attachment.
Cent Dig. f| 600-622.]
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ConnO
MoNERNEY v. DOWNS
495
4. Attachment ®=al90 — OmcEs's Receipt-
Actions — Admissibilitt of Evidence.
lu an action on an oflScer'g receipt, executed
to release attached property, which contained a
waiver clause providing that obligor was estop-
ped from denying ownership of attached prop-
erty, testimony tending to prove that defendant
in the principal action was not the owner was
inadmissible.
[Ed. Note.— For other cases, see Attachment,
Gent. Dig. fS G23-632.]
Appeal from City Court of New Haven;
John R. Booth, Judge.
Action by Peter J. McNemey against Wll-
llam S. Downs. Judgment for plaiutifT, and
defendant appeals. Affirmed.
William S. Downs, of Derby, in pro. per.
David M. Rellly, of New Haven, for appellea
BORABACK, J. The following facts ap-
pear to be undisputed: The plaintiff Is a
deputy sheriff in and for the county of New
Haven. On the 80tb day of August, 1915,
the plaintiff had in his hands for service as
such deputy sheriff a writ of attachment
against one F. W. Skinner, a resident of the
town of Derby, in favor of John H. Dillon
and William H. Douglas, of New Haven,
wliidi writ was returnable to the city court
of New Haven on September 13, 1915. The
plaintiff, by virtue of this writ, attached
as the property of Skinner certain cigars
and liquors, and afterwards took an offi-
cer's receipt for the same, which receipt was
signed by the defendant This receipt con-
tained, among others, the following provi-
sions:
"Which said property we hereby, for a valua-
ble consideration, a^ree and promise, jointly and
severally, to redeliver in good order to said
officer (or any officer legally authorized to re-
ceive the same), on demand, or in default there-
of to pay the sum of $60, or (if demand be not
made oefore judgment is rendered) the amount
of damages and costs which Rhall be recovered
by the plaintiff in said case, if the same shall
fall short of such sum ; it being understood that
we are hereby estopped from denying that the
property herein described has been attached by
said officer, and that we have received the same
from him, and is the property of said defendant,
and of the value herein named. Schedule of
property attached, viz.: Cigars and liquors of
the agreed value of $60."
Skinner at this time was absent from the
state and gone to parts unknown, and a true
and attested copy of the writ of attachment
was left by the <^cer with a O'Brien for
Skinner ; O'Brien at this time having charge
of the attached property. On February 11,
1916, Dillon and Douglas obtained a judg-
ment, by default, in the city court of New
Haven, against Skinner in this action. On
the same date an execution was Issued on
this Judgment, and subsequently returned to
the city court wholly unsatisfied. This judg-
ment has never been paid. On March 28,
1916, the plaintiff demanded of the defend-
ant the property attached and described In
the officer's receipt, but the defendant failed
to deliver the same. On the same date, the
plaintiff demanded of the defendant payment
in satisfaction of the Judgment and costs,
but the defendant failed to pay the same.
Prior to the demand upon the defendant by
the plaintiff for the property receipted for,
the defendant returned and surrendered pos-
session of this property to O'Brien herein-
before referred to; O'Brien having demand-
ed the same from the defendant..
The trial court reached the conclusion that
the defendant was, by the terms of the of-
ficer's receipt, estopped from denying that
the property described in this receipt was
the property of Skinner. It is unnecessary
to consider the action of the trial court in
sustaining a demurrer to the third para-
graph of the defendant's answer, as the same
question Is presented In the third reason of
appeal, which avers that the court erred in
ruling:
"That the defendant was by the terms of said
officer's receipt estopped from denying that the
property described in said officer's receipt was
the property of F. W. Skinner."
In 1 Brandt on Suretyship & Guaranty
(3d Ed.) S 52, it is said:
"The general rule is that sureties are estop-
ped to deny the facts recited in the obliga-
tions signed by them, and this whether the re-
citals are true or false in fact. Having once
solemnly alleged the existence of the facts, they
cannot afterwards be heard to deny it."
[1] As a rule a surety cannot deny facts
recited in his obligation, unless such recital
was Inserted by a mistake; and he cannot
now claim that a bond was given without
consideration, that the judicial proceedings
in which it was given were Irregular, or that
the necessary preliminary steps were not
taken. If the obligation has accomplished
the purpose for which It was given, the sure-
ty will not be permitted, thereafter, to free
himself from its disadvantages. But a sure-
ty is not estopped, by the recitals of the
bond, from questioning the legality of Its
execution. 32 Cyc. 69.
The parties, as it appears from this bond,
had agreed that the defendant should be
estopped by the terms of the contract from
denying that the property had been attached
by the officer, that it had been received from
him, and that it was the property of tl»e
defendant Skinner. It appears that one of
the express purposes of this written contract
was to exclude, as between the officer and
the defendant, the iMsslbllity of the latter
challenging the right of Skinner to the prop-
erty attached. Dejon t. Street, 78 Conn.
337, 65 AU. 145.
[2] This bond was voluntarily given by
the defendant, upon a sufficient consideration,
and such an undertaking is not prohibited
by statute or against public policy. The
defendant In the former action, or his agent,
by means of this undertaking upon the part
of the defendant in the present case, has
secured possession of the property of Skin-
ner, and the defendant. Downs, cannot now
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496
101 ATLANTIC REPORTER
(Conn.
escape the liability of the nonperformance of
his agreement.
[3] The defendant also contends that:
"The judgment against Skioner was not bind-
ing upon this defendant, because no legal serv-
ice was made of the process, nor the provisions
of the statute complied with."
As we have already stated, the defendant
cannot now claim that the Judicial proceed-
ings in which this receipt was given were
irregular, or that the necessary preliminary
steps had not been taken before the Judg-
ment was rendered. He was not a party to
the original action, and the judgment render-
ed thereon cannot now be collaterally attach-
ed by one who has agreed to redeliver the
property attached on Judgment to the of-
ficer, or pay the damages and costs recovered
in that action. Aside from this, the record
discloses that this property was lawfully at-
tached by the plaintiff, who it appears left a
true and attested copy of the original writ
of attachment with the person having charge
of the property of Skinner, who, as the
finding states, was absent from the state
and in parts unknown at the time the attach-
ment was made.
[4] In view of what we have already stat-
ed, it is unnecessary to discuss the defend-
ant's claim that the trial court erred in re-
jecting his testimony, which tended to prove
that the defendant Skinner did not own the
property receipted for when it was attadied.
It was not admissible.
Of the other errors assigned, none seem
to have sufficient merit to warrant their
discussion.
There is no error. The other Judges con-
curred.
(S2 Conn. SS)
STATE T. MAD RIVER CO.
(Supreme Court of Errors of Connecticut. July
e, 1917.)
1. Taxation 4=»150—CoBFoaATioNS— Water
COMPANT.
To render a company taxable under Pub.
Acts 1915, c. 292, pt. 2, it must have been prin-
cipally engaged in selling and distributing water
and must have derived gross earnings from such
operation within the state.
[Ed. Note.— For other cases, tea Taxation,
Cent. Dig. i 279.]
a SaI£S <S=>263— Nattjbe.
Under Pub. Acts 1907, c. 212, J 1, defining
sales, a "sale" implies an ownership in the thing
sold and the passing of title.
[Ed. Note.— For other cases, see Sales, Cent.
Dig. i! 746, 749-751, 763.
For other definitions, see Words and Phrases,
First and Second Series, Sale.]
8. Taxation <S=»159— Cobpokations— Wateb
Company.
Pub. Acts 1915. c. 292, pt 2, Uxing compa-
nies selling and distributing water, is inapplica-
ble to a concern maintaining reservoirs to ren-
der a stream's flow uniform for the benefit of its
stockholders who were riparian owners, since
there was no sale.
[Ed. Note.— For other cases, see Taxation,
Cent. Dig. { 279.]
Appeal from Superior Court, Hartford
County: Milton A. Shumway, Judge.
Application by the State of Connecticat
against the Mad River Company to determine
the amount of a tax. From a judgment fix-
ing the amount of such tax, the defendant ap-
peals. Reversed and remanded for rendition
of a judgment denying the application.
Mad river is a small tributary of the
Naugatuck river. In 1866, six riparian own-
ers along the former stream entered into an
agreement by the terms of which two reser-
voirs were to be built on streams which fiow-
ed into It, and an agent was appointed by
them to buy the land and hold the same
in trust, collecting from time to time from the
parties to the agreement the expenditures
entailed in the execution of the enterprise
In certain specified portions. In 1872, this
agreement was extended to include a third
reservoir, also located on a stream tributary
to Mad river. Pursuant to these agreementa,
the necessary land was purchased and the
reservoirs built. The title to them was vest-
ed in a trustee.
In 1873, the defendant was chartered by
the General Assembly. Its purpose, as stated
in the charter, was "to maintain and improve
the water power by the means of reservoirs,
cultivation of timber, and other suitable
means on the stream known as Mad river
* • * and upon the branches and sources of
said stream and to purchase and hold certain
improvements already made thereon." The
corporation took over, in payment for its stodc.
aU the property acquired under the two agree-
ments recited, and the parties to those agree-
ments became its stockholders. Its sole prop-
erty was, and still is, the three reservoirs
together with their dams and the land con-
nected therewith. It neither owns nor nti-
llzes any canals, pipes, or flumes. It lias nev-
er diverted any of the water of the streams,.
upon which ita reservoirs are located, fron»
its natural course, nor has it the means or
Instrumentalities for doing so. Ottie dams and
reservoirs are operated so as to hold back
and store the water in times of plenty for
release at such other times and In such
amounts as its stockholders may desire. The
water of the streams, after leaving the gates
of the reservoirs, Is at the service of every
lower riparian proprietor. No objection has
ever been made by any such proprietor, not a
stockholder in the defendant, to the retention
of the water Impounded and economized in
the reservoirs. The highest site owned by
any of the stockholders is four or five miles
below the nearest reserv<^r.
For a long time It has l)een customary
for the ScovlU Manufacturing Company, one
of the defendant's stockholders acting infor-
mally as its manager, to advance all the ex-
penses of maintenance and taxation, and ob-
tain reimbursement from the other stock-
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TTERNET v. MARTONE
497
holders In prc^orttons agrreed upon at the
annual meetings, Hiese proportions have va-
ried from time to time. No two stockholders
own the same amount of stoclc, and contribu-
tions made by the several stockholders
towards the payment of the expenses of the
corporation have borne no fixed relation to
the amount of stock owned. Each stockhold-
er Is represented on its board of directors.
The revenues of the corporation are confined
to the contributions made to meet the ex-
penses of maintenance and taxation as above
stated.
Arthur F, Ells, of Waterbury, for appel-
lant George E. Hlnman, Atty. Gen., for the
State.
PRENTICE, C. J. (after stating the facts
as above). [1] The Attorney General brings
this application under section 15 of chapter
292 of the Public Acts of 1915 for an order
for the payment by the defendant to the state
of an amount claimed to be due under and by
virtue of the provisions of part 2 of that act,
being one providing for the taxation of
certain corporations, partnerships, and so
forth. To bring the defendant within the
operation of these provisions three condi-'
tions must be met, to wit: (1) Its principal
business must have been that of operating a
system of waterworks; (2) that operation
must have been for the purpose of selling
and distributing water for domestic or power
purposes; and (3) it must have had gross
earnings from such operation in this state.
[2, 31 It may be assumed without decision
that the first and last named of these condi-
tions were satisfied in the defendant's case.
The second surely was not. That condition
embraces both the sale and distribution of
water. If it can reasonably be said that al-
lowing the water of a stream to flow in Its
accustomed dunnels and be used and en-
Joyed freely by those who as riparian owners
are entitled to use and enjoy It Is distribution
within the meaning of the statute, the ele-
ment of sale of the water thus distributed
clearly is wanting. A "sale" Implies an own-
ership in the thing sold and a transfer of
that ownership to another. P. A. 1907, c 212,
i 1. It Involves the passing of title. The
defendant never has had title to the water
which It has detained in Its reservoirs, and
It has never undertaken to give to any one ti-
tle to It or to any part of it. It has never at-
tempted either to appropriate any water, or
to divert any from its natural channels, or
to restrict lie benefldal enjoyment of the
M'aters of the streams by lower prc^rletors
entitled to such enjoyment. The only thing
that It has sought or accomplished Is a con-
trol of the flow of the water In such manner
tbat through avoidance of waste at times
and of shortage at other times the Interest
of riparian proprietors should be more bene-
ficially served than would otherwise be the
case. The purpose of the defendant is not
sale, but conservation. It exists for the ren-
dition of service, and not for dealing in a
salable commodity.
There Is error, the Judgment is set aside,
and the cause remanded for the rendition
of Judgment denying the application. The
other Judges concurred.
(M Conn. 93)
TIERNET V. MARTONE et ux.
(Supreme Court of Errors of Connecticut. July
6, 1917.)
1. Shebiffb ano Constabuis ®=>87— Sxrviob
OP Writ— Duties of Officer.
An officer, duly qualified with a lawful pre-
cept, is not required to declare by what autnor-
ity he acts nntil the authority is questioned.
[Ed. Note.— For other cases, see Sheriffs and
Constables, Cent Dig. S 119.]
2. Trial «=»140(1)— Questions fob Jdbt—
CredibiI/Itt of Witnesses.
It is within the province of the jury to de-
termine the credibility of witnesses.
[Ed. Note.— For other cases, see Trial, Cent
Dig. { 334.]
3. Assault and Battery <8=>40— Excessivb
Damages— Personal Injuries.
Where an officer, attempting to serve a writ
of attachment, was assaulted and received severe
bruises, a broken nose, and was incapacitated
to follow his usual vocation for two weeks, and
incurred a property loss of $S7 on account of liis
injuries, a verdict of $300 was not excessive.
[Ed. Note.— For other cases, see Assault and
Battery, Cent Dig. { 55.]
4. Assault and Battery a 1 11 Civil Lia-
BiLiTT— Joint Verdict.
Where plaintiff in serving a writ of attach-
ment was assaulted by defendant and bis wife at
the same time, a joint verdict was warranted.
[Ed. Note. — For other cases, see Assault and
Battery, Cent Big. { 63.]
Appeal from District Coort of Waterbury;
Francis T. Reeves, Judge.
Action by John D. Tiemey against Nun-
sianta Martone and wife. Judgment for
plaintiff, and defendants appeal. No error.
The plaintiff had a writ directing him to
attach the property of Rocco Martone, a son
of the defendants. The defendants in their
answer Justify the assault alleging that when
the plaintiff attempted to attach the son's
automobile, the defendants informed the
plaintiff that the son was Indebted to his
mother the defendant Philomena in the sum
of $25 for storage of the automobile, and that
it could not be moved until the storage was
paid, and that thereupon the plaintiff as-
saulted the defendant Nunzlante, and the de-
fendant Philomena went to her husband's
assistance, and used no more force than was
necessary to protect themselves from the
plaintiff's assault The cause was tried to
the Jury, and they rendered a verdict for
the plaintiff against both defendants and
assessed damages at $300.
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101 AXIiANTTO hkfortbr
(C<H1II.
Charles W. Banby, of Waterbury, for ap-
pellants. Joba J. O'Neill, of Waterbury, for
appellee.
SHUMWAT, J. (after stating the facts as
above). The defendants complain that the
court erred in its charge In Ita refusal to
charge as retjuested and by the refusal of the
court to set aside the verdict as against the
evidence and because the damages found
were excessive, so far as appears from the
defendants' brief, the claimed errors in the
charge and refusal to charge are not pressed
for consideration by this court. But, how-
•ever, if they are, the court complied sub-
stantially with the requests to charge, ex-
cept one, as follows:
"If you find that the plaintiff did not dis-
close to the defendants that be was an officer
and bad a writ to serve, then you would be
justified in reaching the conclusion that the
plaintiff was a trespasser, and that the de-
fendants had a right to order him from the
premises and use force in ejecting him."
[1] The defendant was not entitled to have
the Jury so Instructed. An ofl^cer duly qual-
ified with a lawful precept Is not required to
declare by what authority he acts until the
authority Is questioned. It would be better
In the orderly performance of his duties for
an officer to inform all who may be immedi-
ately concerned that he Is an ofllcer with a
Jegal process to serve as was done In this case.
The defendants' answer alleges that the
plaintiff demanded the payment of a bill. It
appeared In the evidence that the defendants
fully understood the plaintiff was an ofl3cer
and about to malce an attachment. It is al-
so apparent that the affray between the plaln-
llff and defendant began because of the plain-
tiff's declaring his Intention to seize the auto-
inoblle by attaching It and the defendants
objecting because Mrs. Martone claimed a
lien on It for storage. Nunzlante Martone
testified that the plaintiff made an unpro-
voked assault on him at the time when he
•claimed his wife bad a lien on the automobile,
while the plaintiff testified that Nunzlante
assaulted him as he started to move It and
attempted to obstruct him In the service of
the writ.
[2] The defendants* main c<H)tentlon in the
brief Is that th« trial court should have grant-
fid a new trial because the verdict was
against the evidence and the damages were
excessive. The verdict was not against the
evidence. The evidence was so conflicting
that the credibility of the witnesses became
all Important, and surely It was within the
province of the jury to determine where the
truth lay, If possible.
[3] It cannot be said that $300 was an ex-
cessive verdlct< as the plaintiff testified he
received severe bruises, a brolcen nose, and
was Incapacitated to follow his usual voca-
tion for two weeks, and incurred a property
loss and expenditure of $87 on account of
his Injuries.
[4] It Is suggested that the court erred in
accepting a joint verdict against the defend-
ants ; the contention being that If the defend-
ant Phllomena assaulted the plaintiff. It was
a separate assault and not the one In which
her husband was concerned. Evidence was
offered tending to prove that, while the plain-
tiff and defendant Nunzlante were struggling
upon the ground, the defendant Philomeoa
struck the plaintiff several times with a piece
of stove wood. If the jury found the facta
as stated, they were properly Instructed that
the defendants committed a Joint assault, and
were Jointly liable. There Is no error. The
other Judges concurred.
(SI Conn. 29)
nOTT T. OITY OF NEW HAVEN et aL
(Supreme Court of Errors of Connecticut. July
6, 1917.)
Municipal Corporations ®=>705(1)— Stbeets
— Danoerogs Agencies— Negligence.
If an express wagon driver ought, in the
exercise of due care, to have seen the sagging
wire from a broken trolley wire pole and to have
appreciated the danger of its becoming entan-
gled with Ills truck and the possibility of pulling
down the pole, he was negUgeut in driving into
the wire, and his negligence was a contributing
cause to the death of one struck by the falling
wire.
[Ed. Note. — For other cases, see Municipal
Corporations, Cent. Dig. § 1515.]
Appeal from Superior Court, New Haven
County; Howard J. Curtis and £klwin B.
Gager, Judges.
Action by Grace L. Hott, administratrix,
against the City of New Haven and others.
From a verdict for plaintiff and denial of
motion to set aside the verdict, defendant
Adains Express' Company appeals. No error.
Action to recover damages for negligence
brought against the city of New Haven, tbe
Connecticut Company, and the Adains Eix-
press Company to the superior court for New
Haven Ckninty, where demurrers by the dty
of New Haven and the Connecticut Company
were sustained (Curtis, J.), and the case
against the Adams Express Company tried to
the Jury before Gager, J. Verdict for the
plaintiff, motion to set aside verdict denied,
and appeal by the Adams Bxpress Ckanpany.
No error.
Edmund Zacher and William B. Ely, both
of New Haven, for appellant Robert J.
Woodruff and James J. Palmer, both of New
Haven, for appellee.
PER CURIAM. A trolley pole fell upon
and killed the plaintiff's IntesUte. The de-
fendant ascribed the cause of the fall of tlie
pole to the fireman engaged in working
around and upon 5t after It had been cracked
and bent by the Impact of a fire engine run-
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MASSET ▼. FOOTE
49»
ning Into It. The plaintiff ascribed the cause
to the defendant express company's anto-
track becoming entangled in one of the 'wires
attached to it which sagged through the bend-
ing of the pole, and In this way the truck
pulled down the pole upon the plalntUTs In-
testate.
Our reading of the evidence satisfies us
that the Jury might reasonably hare found
the cause of the fall of the pole as the plain-
tiff claimed. And, further, the Jury might
reasonably have found that as the truck pro-
ceeded down George street Its driver ought
In the exercise of due care to have seen the
sagging wire and to have appreciated the
danger of its becoming entangled with his
truck and liable to pull down the pole and
Injure some one of those in the street near
by. Further, the Jury might have found that
the driver of the truck drove on after having
received adequate warning. If the Jury so
found, and the verdict Indicates this, the con-
clusion that the conduct of the driver was
negligent and was a material and contribu-
ting cause of Hott's death necessarily fol-
lowed.
The evidence would hare Justified the Jury
In finding that Hott Just prior to being struck
was in the middle of the highway in a posi-
tion of no apparent danger and at such a
distance from tliis poIe» and surrounded as
It was by people, that he could not reason-
ably have been expected to have seen that the
pole was in danger of falling, and that in
fbct it was not in such danger until pulled
down by the truck. The conclusion of due
care, which the verdict indicates the Jury
found, cannot be said to have been found up-
on inadequate evidence.
There is no error. All concur.
(U Cona. as)
MASSEY V. FOOTE.
(Supreme Court of Errors of Connecticut.
July 6, 1917.)
1. CotTBTs ®=»201 — Pbobate Court — Juais-
DICWOIT.
A probate court's JuriBdiction la entirely
■tatntory, and it possesses only the necessary
incidental powers.
[Ed. Note.— For other cases, see Courts, Cent
Dig. SI 86, 87.]
2l Exkoutobs and Administbatobs 4s»816(4)
— jDBISDICnON or COXTBTB.
Gen. St 1902, { 203, Mnpowering probate
conrts to revoke ex parte decrees before appeal
and before final settlement of an estate, etc,
does not authorize revoking a distribution order
made upon notice, and from which an appeal
had been taken.
[Ed. Note.— For other cases, see Executors
and Administrators, Cent. Dig. f 1306.]
Appeal from Superior Court New London
County; Joel H. Reed, Judge.
Proceedings by Lucy A. Massey as guardian
of Lydla L. Main Foote, for the allowance
of her account as guardian against said
ward. A probate court decree, disallowing
the account, was affirmed by the superior
court, and the guardian appeals. Affirmed.
C. Hadlai Hull, of New London, for ap-
pellant Edmund W. Perkins, of Norwich,
for appellee.
SHUMWAT, J. The only debatable ques-
tion in this case involves an interpretation
of section 203 of the General Statute. Th»
part of the statute bearing uxmn the question
reads thus:
"Any court of probate may modify or revoke
any order or decree made by it ex ^arte before-
any appeal therefrom, and if made va reference
to the settlement of any estate, before the final
settlement • • • upon the written applica-
tion of any person interested therein. • ♦ • •'
[1] This court has held and reaffirmed
that the entire Jurisdiction of probate courta
is statutory, special, and limited. In thfr
exercise of such statutory Jurisdiction they
possess such Incidental and implied powers,
legal and equitable, and such only, as are-
necessary to the entire performance of all
the dDtles Imposed upon them by law^
Potwlne's Appeal, 31 Conn. 381; Hall v. Pier-
son, 63 Conn. 332, 28 Atl. 544; Schutte v.
Douglass, 90 Conn. S29, 97 Atl. 906. In
passing upon the jurisdiction of probate
courts, this court has considered also the-
power of probate courts to modify or set
aside its orders and decrees. In this case
now under consideration only such facts aa
are material need be recited.
It appears that William L. Main died in
1890, leaving a will which was duly offered
for probate and was approved. The estate
was distributed by order of the probate
court A portion thereof was distributed ta
Amos W. Main, a son of William L. Main.
Amos W. Main died in July, 1901, leaving a
widow, the present plaintiff. She was ap-
pointed administratrix upon her husband's
estate on July 18, 1901. She duly filed an
Inventory and charged herself with this item.
The Interest of said deceased in his estate of
his late father was estimated at $2,000. Od
the 6tb day of October, 1908, distributors wer»
appointed to distribute the estate. The
court, having ascertained the heirs and dis-
tributees of the estate of Amos W. Main, or-
dered the estate distributed to them. To-
the present plaintiff there was distributed as
follows: One undivided third of the dis-
tributive share of what will remain for dis-
tribution of the estate of William L. Main
that by the terms of his will would go to-
Amos Main on the death of the widow of
William L. Main, had Amos outlived her.
At the time of Amos W. Main's death he
had a minor daughter, Lydia L. Main, the
present defendant, and a minor son, Clifford
M. Main. On the 27th day of July, 1901, th»
plaintiff was appointed guardian of her ml-
nor daughter, Lydia l>. Main. Hie widow of
William L. Main died in April, 1913.
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101 ATLANTIC REPORTER
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By the distribution of the estate of Amos I
Main on October 6, 1908, which was approved
by the probate court, one-ttdrd of what rfe-
mained of William L. Main's estate was dis-
tributed to the plaintiff. On the 8th day of
April, 1914, the probate court ordered the
balance of the estate of William L. Main to
be distributed to the beneficiaries named In
the will, and these beneficiaries had been as-
certained and adjudicated by the decree of
the court of October 6, 1906. From the order
of the court of April 8, 1914, one of the ez
ecutors of the will of William L. Main ap-
pealed to the superior court, which appeal
was pending in said court until October 27,
1914. In September, 1914, the executors of
William L. Main's estate petitioned the pro-
bate court, setting out that the order of
April 8th was Informal, incorrect, and er-
roneous, and on the 27th day of October,
1914, that court made the following order:
"Ttiat the order passed on the 8th day of
April be, and is hereby, reconsidered and amend-
ed to read as follows. * • • The heirs at
law of said Amos Main are found to be his two
minor children, Lydia L. Main and Clifford M.
Main, Mrs. I/ucy Massey being their guardian,
each of said two children tailing one-half of
said balance^'
— ^thus giving nothing to the widow. This
procedure certainly constituted a revocation
of the order of April 8th and if the probate
court bad authority to do this, the action of
the superior court, affirming the order of Oc-
tober 27, 1914, should stand; otherwise it
should be revoked.
[2] The statute above quoted gives the pro-
bate courts authority to modify or revoke its
decrees made ex parte only before an appeal
is taken. But in this case an appeal was
taken, and the order was not made ex parte,
but upon notice. In the case, Delehanty v.
Pitkin et al., 76 Conn. 412, 56 Atl. 881, the
power of probate court over its decrees was
fully considered, and there It was held that
a probate court had no authority to revoke
its decree, admitting to probate a document
purporting to be a last will and testament,
although that decree was obtained by fraud.
The court in the case last named say It was
at that time a "question of first impression
In this state," though the "question was rec-
ognized, but not decided, in Potwine's Ap-
peal, 31 Conn. 381." As indicating how that
decision was regarded, the reporter In the
Potwine Case appended to the opinion a
quotation from Pettee v. Wilmarth, 5 Allen
(Mass.) 144, in which this pertinent Clause
appears:
"If he [the probate judge] could rescind his
first decree, he might rescind the second, and
so on indefinitely: and there could be no cer-
tainty that any decree had finally established
any party's rights, but every person in wliose
favor a decree had been obtained would liold it
precariously at the discretion of the judge who
passed it"
The doctrine of Delehanty v. Pitkin et aL
is affirmed in Sdiutte v. Douglass, 90 Conn.
529, 97 Atl. 906, and It Is now so well settled
as to lie no longer open to question.
It Is, however, contended in the appellee's
brief that the power of the probate court to
revoke decrees extends, not alone to ex parte
orders, but to orders in reference to the set-
tlement of any estate before final settlement;
that the word "and" conjoining the phrases
in the statute above cited "order and decree
made by it ex parte," "and if made In ref-
erence to the settlement of any estate,"
should be read "or," thus giving the probate
court power to revoke or modify Its decree In
both cases. No such construction can fairly
be put upon the statute; the language used
and its meaning is too dear to permit It.
There Is error in the Judgment of the su-
perior court, a new trial is ordered, and a
proper guardian's account should be allowed
pursuant to the probate decree of AptU 8,
1914.
The other Judges concurred,
~^°°™" (M Conn. 13)
ROCHESTER DISTILUNO dO. ▼. GELOSO.
(Supreme Court of Errora of (Connecticut. July
6, 1917.)
1. Sausb «=s>81(2)— Pkbfobuaitck— Tike fob
Deuvkbt.
In the absence of agreement as to the time
in the contract, the law implies the delivery of
the goods sold in a reasonable time.
[Ed. Note.— For other caaea, see Sales, C!enb
Dig. i 2ia]
2. Appeal and Bsbob «=>100S(1)— Saues e=*
182(1)— Pebfobilakci — TuiB fob Pebfobk-
ANCE.
It is ordinarily a qnestion of fact and the
determination of the trial court is conclusive
as to what would be a reasonable time for per-
formance of a contract which fails to state the
time,
[Ed. Note.— For other cases, see Appeal and
Error, Cent Dig. { 3955; Sales, Cent Dig. {
492.]
3. Saucs ®=»123— Pebfobuance— fREBCissioir
OF CONTBACT.
Where defendant purchased whisky from
plaintiff, who agreed to supply advertising ma-
terial and watches, the whisky being left in
bond, and defendant agreed to pay a sum down
and the balance in monthly installments, and he
made his first payment, withdrew none of the
liquor from bond, and made no demand for the
advertising material and watches, be could not
on due day of the first note repudiate the agree-
ment, tender back the bond certificates, and re-
cover bis first payment
[Ed. Note.— For other cases, see Sales, Cent
Dig. i 302.]
Appeal from Court of Common Pleas, New
Haven County ; Isaac Wolfe, Judge.
Action by the Rochester Distilling Com-
pany against John Geioso. Judgment for
plaintiff, and defendant appeals. No error.
Robert L. Munger, of Ansonla, for appel-
lant Alfred C. Baldwin and Harold E. Drew,
both of Derby, for appellee.
WHEELER, J. The plaintiff, a wholesale,
and the defendant, a retail, liquor dealer.
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ROCHESTER DlSTHiMNG CO. v. GELOSO
601
on June 3, 1015, entered Into a contract of
sale of 15 barrels of whisky, by the terms of
which contract the plaintiff agreed to sell
to the defendant the whisky In bond and to
deliver the same by three certificates, certi-
fying that the whisky was stored lu bond,
subject to the order of the defendant The
plaintiff farther agreed to pay the storage
Insurance on the same, and to send to the de-
fendant various articles of advertising mat-
ter, including six watches, and agreed that.
If these were not received, the defendant
should have the right to cancel the notes
which the defendant agreed to give as part
«t its consideration for the purchase.
The defendant in consideration of the
agreements of the platntUf agreed to pay
$108.98 in cash, and to give to the plaintiff
18 notes, each for $30, payable serially 30
days from date, 60 days from date, and so
on, until the last note in the series became
payable. The certificates and notes were du-
ly delivered and the $108.08 In cash paid, and
thereupon the contract became executed and
complete, except as to the delivery of the ad-
vertising matter. The purpose of the adver-
tising matter was to call the attention of the
public to the fact that this particular brand
of whisky which the defendant advertised was
on sale by him.
[1,2] No time was agrreed upon for the
delivery of this advertising material. In
the absence of an agreement as to the time,
the parties concur in the opinion that the law
Implies the delivery of the advertising mate-
rial In a reasonable time. What would be a
reasonable time for such delivery depends
upon the terms of the sale and the circum-
stances surrounding the sale. And this ordi-
narily is a question of fact, and the condu-
Bion of the trial court conclusive, unless the
time found to have been reasonable was so
short or so long that a court must hold as
matter of law the finding erroneous. Loomis
V. Norman Printers' Supply Co., 81 Conn.
843. 347, 71 Atl. 358.
Shortly after the contract was entered into
the plaintiff began the preparation of the
advertising material tor shipment and placed
its order for the manufacture of the watches
with the manufacturer. It is the plaintiff's
eastern to ship to a customer all of the ad-
vertising material agreed to be furnished him
when the order is substantially complied
witb. It is also Its custom to ship this mate-
rial as soon as it Is notified that the retail
dealer has withdrawn any of the whisky
from bond, although sometimes the ship-
ment is made at an earlier date. The defend-
ant did not at any time withdraw any of
tbc whisky from bond.
On July 3, 1015, the first of the notes was
presented for payment, and the same refused.
At this time none of the advertising matter
hud been delivered to the defendant. On
July 3, 1015, the defendant notified the plain-
tiff that by reason of the failure of the plain-
tiff to deliver the advertising matter he can-
celed the notes and asked for the return of
the remaining notes and the $106.98, and be
thereupon returned to the plaintiff the three
certificates for whisky in bond.
On July 14, 1015, the plaintiff shipped all
of the advertising matter except the watches
to the defendant, but upon tender to him he
refused to accept it At the date of maturity
of the first note the watches were in process
of manufacture. And at the date of maturi-
ty of the second note on August 3, 1015, and
at the time of the institution of this action,
the watches had not been completed by the
manufacturer.
In his brief the defendant says:
"The appeal presents a single question, wheth-
er or not, according to the specific terms of this
written contract, the defendant did not have the
right to refuse to pay any of the notes he had
given for the purchase of the whisky if the ma-
terial described in the memorandum was not de-
livered until after the maturity of the first note."
[3] The right to cancel the notes at the
maturity of the fliBt note would be undoubt-
ed provided the failure to deliver the adver-
tising material prior to that time was un-
reasonable. There is no relation between the
period of delivery of the advertising material
and the maturity of the first note so far as
the finding informs us. The defendant did
not deem this delivery essential to the begin-
ning of the contract; for he paid in $106.98 at
its execution, when he must have known some
time would elapse before he received this
material. The defendant had no occasion to
make use of the advertising material prior to
the institution of this action, since at no time
did he withdraw any of the whisky In bond.
He at no time requested the delivery of the
advertising materlaL So far as appears, up
to the time when this action was begun the
platntiff had done everthing that could be
reasonably expected of it to procure the
watches.
The conclusion of the trial court that the
defendant was not legally Justified in refus-
ing to accept these articles, and that the
plaintiff was entitled to a Judgment for the
amount of said notes, necessarily Involved a
finding that the failure to deliver all of the
advertising matter prior to the maturity of
the first note, and the failure to deliver the
watches prior to the institution of this ac-
tion, was not unreasonable.
In our view the finding of the trial court
cannot be said to be unwarranted in law.
There is no error. The other Judges con-
curred.
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101 ATLANTIC REPORTER
(Omis.
(92 Conn. 11)
COAST & LAKES CONTRAOTING CORP. v.
MARTIN et aL
(Snpreme Oourt of Erroni of Connecticut July
e, 191T.)
1. Execution «=»129 — Levy — Requisite*—
"Manufactuotno ok Mechanical Estab-
UBHMENT"— " MeCHANICAI."
Under Gen. St 1902, { Bll, aa to levy of ex-
ecution on machinery, a stone quarry wherein
air compressors and steam en^rines are operated
is a "manufacturing or mechanical eetablish-
ment" so that a levy upon the machinery is
valid, though the madiinery is not removable;
the word "mechanical" meaning pertaining to
machinery.
[Ed. Note.— For other cases, see Execution,
Cent Dig. SS 29»-801.]
2. Attachment «=»322— Lett— SumcnswcT.
The sheriff's return of levy of an attachment
upon machinery need not state it as bis opinion
that the machinery could not be removed, since
that ftict is susceptible of other proof.
[Ed. Note.— For other cases, see Attachment,
Cent Dig. SS 1153-1159.]
8. Attachment ^=171— Levy— Pobtinq No-
tices—Requisites.
Failure to post notices on the outer door of
a shed which was not completely inclosed did
not invalidate the levy of an attachment on ma-
chinery in the shed if the notices were conspicu-
ously posted upon the shed.
[Ed. Note.— For other cases, see Attachment
Cent Dig. SS 49:^-604.]
4. Attachment <3=>152, 171 — L«tt — Sufit-
cienct.
A description In the attachment and notice
of levy of property as "compressed air ma-
chinery" and "three hoisting engines" is suffi-
cient
[Ed. Note. — For other cases, see Attachment
Cent. Dig. S§ 425-427, 492-504.]
6. BANKKXrpTOY ©=5200(3)— ATTACHMENT— Bf-
fect of Bankruptcy.
Attachment liens, acquired more than four
months before proceedings in bankruptcy are
begun by filing a petition, are not dissolved b|y
an adjudication in baiikniptcy.
[Ed. Note.— Foi- other cases, see Bankruptcy,
Cent Dig. SS 29(J-300.]
Appeal from Superior Court, Tolland Coun-
ty; Joel H. Reed, Judge.
Action by the Coast & Lakes Contracting
Corporation against Manuel J. Martin and
others. Judgment for defendants, and plain-
tin appeals. No error.
Frank L. McGulre, of New London, for
appellant Charles B. Whittlesey and Perry
J. Hollandersky, both of New London, for
appellees.
SBUMWAY, J. This action was brought
by the plaintifF, claiming an injunction
against the defendant, who is a deputy sher-
iff of New London county, to restrain him
from taking and selling on execution certain
property held under attachment. The exe-
cution was issued to enforce a Judgment ren-
dered In an action brought by Joseph Novy
against the Breakwater Company. Novy's
action was begun and the attachment made
on August 15, 1913. At that time the Break-
water (Company w^as engaged In the business
of quarrying .stone In ttie town of Ledyard.
The stone after It was taken from the quar-
ry was carried away and used In the con-
struction of breakwaters and sea walls. The
quarry occupied 10 to 12 acres covered by
the operations of the company. The land
WHS owned by a corporation called the
Rivers & Harbors Improvement Company.
Among the articles of property owned by the
Breakwater Company were three hoisting en-
gines and compressed air machinery, used by
the company in the quarry. On the 27tb of
December, 1913, a petition in bankruptcy was
filed against the Breakwater Company, and
it was adjudicated a bankrupt on February
2, 1914. The judgment in favor of Novy
against the Breakwater (^mpany was r«i-
dered on April 2, 1914. On March 23, 1914,
the trustee In bankruptcy of the bankrupt
sold the property under attachment to one
Slegel, and he on April 4, 1914, transferred
the same to the plaintiff In this action. The
process In the action of Novy against the
Breakwater Company was served and the at-
tachment was made by J. H. Tubbs, deputy
sheriff of New London county. He attached,
as the property of the Breakwater (Company,
three hoisting engines and the compressed,
air machinery. At the time of the attach-
ment the hoisting engines were in different
parts of the quarry, and were separately and
partially Inclosed by rough structures, eacb
having a roof, but open on one or more sides.
The compressed air machinery was located
In a long building, which was divided into
separate rooms by partitions and had dooiB
In front and rear. In the same room were
two pumpa The compressed air machinery
consisted of two compressors, a steam cylln-
der and an air cylinder. Each compressor
was mounted on a bed, on one end of which
was a steam engine and on the other end
was the cylindfer in which the air was com-
pressed. On each of the compressors was a
plate giving the name of the manufacturer.
Its number, and size. From the judgment in
favor of Novy the Breakwater Company ap-
pealed to the Supreme Court of Errors, and
the judgment of the superior court was af-
firmed cm December 22, 1914, and an exe-
cution delivered to Deputy Sheriff Martin,
the defendant herein, on February 20, 1915,
and on the same day he made levy of the
same and posted notices of the sale.
The plaintifTs complaint was doubtlessUv
framed having in mind sections 831 and 911
of the Qeneral Statutes, and with a purpose
to allege sufficient facts to show that as the
property attempted to be attached had not
been removed by the officer, the provisions
of these statutes in such cases had not been
complied with. One of the important ques-
tions In the case is whether or not the acts
of the officer aa detailed In the finding se-
cured to the plaintiff named In the process
a lien on the property attached so that the
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OOAST * LAKES CONTRAOTINO CORP. v. MARTUT
603
same conid be held to satisfy an e-xecutlon
Issued on final judgment The statute (sec-
tion 831) provides that In certain cases an
officer making an attachment Is not required
to move the property attached. The portion
of the statute material for the purposes of
this case Is as follows:
"Attachments of machinery, engines, or imple-
ments, situated and used in any manufacturing
or mechanical establishment, • • • wbicE
cannot, in the opinion of the officer levying up-
on the same, be moved without manifest in-
jury, shall be effectual to hold the same, with-
out any removal thereof: Provided the service
«f such attachment shall he completed and a
copy of the process and of the accompanyiog
complaint, with the officer's return indorsed
thereon, particularly describing the property at-
tached, shall be filed in the office of the town
clerk of the town in which such property shall
be situated, within twenty-four hours after such
attachment shall have been made."
Section 911, relating to levy of an execu-
tion on machinery, engines, or other Imple-
ments, provides that If It cannot, in the opin-
ion of the officer levying the same, be moved
without manifest injury, be shall not move
it, but shall give notice of such levy by post-
ing a notice thereof on the outer door of
building In which such property is situated.
[1] One of the claims of the appellant la
that the attachment was void because the
Breakwater Company's business of working
a quarry was not a manufacturing or me-
chanical establishment. This statute Is pe-
culiar to this state, and decisions In other
Jurisdictions ^ve but little aid in construing
Its meaning. The purpose of the statute was
to provide the method by which machinery,
engines, and implements could be attached
without moving them, and thereby held to se-
cure a judgment. The word "manufactur-
ing" has no restricted meaning as used in
the statute. It is aK>arent that such was
not the intent when the word "mechanical"
was Inserted. The primary meaning of the
word "mechanical" is "pertaining to machin-
ery," and the fair meaning of the statute
Is that it was Intended to Include all estab-
lishments outfitted with machines used In
conducting such operations as the business
required. The machines attached were in use
in a mechanical establishment
[2] Another contention of the plaintiff is
tliat the attachment made by Sheriff Tubbs
Is void t>ecause he did not state in his orig-
inal return that in his opinion the property
«ould not be removed without manifest in-
Jury. The statute leaves it to the judgment
of the officer making an attachment to de-
termine whether or not the machine could
be moved without injury and the return
wtalch an officer makes on the original writ
of his doings is only prima facie evidence of
the facts stated therein, and they may be
disproved by proper evidence. The only
thing omitted as claimed is a statement of
tlie <^cer'B opinion that the property could
not be moved without manifest injury. That
be entertained this or that opinion may be
as readily determined in many cases by what
he does as by what he says. But the court
has found as a fact that the property could
not be moved without injury, and it is admit-
ted that the officer was In f^ct rightfully
of the same opinion at the time of the at-
tachment. It may be that the offic^ ran
a risk that the attachment would not hold if
he came to a wrong conclusion, but it would
be manifestly unfair to an officer to so rule If
he acted in good faith. In the case Morey
v. Hoyt, 62 Conn. 556, 26 AU. 127, 19 I* R.
A 611, it was held that under the circum-
stances in that case it was not necessary to
the validity of the attachment of machinery
that the property be moved or a reason giv-
en in the return why it was not. The at-
tachment did not fail in this case because
Deputy Sheriff Tubbs did not state in the
return that in tils opinion the machines could
not be removed without manifest injury, but
it is not necessary to rule that it would be
so in every case.
[3] The plaintiff contends that the levy of
the execution by Deputy Sheriff Martin was
void because he did not post notices of the
levy on the outer door of the buildings in
which the hoisting machines were sltuoted.
The structures had no doors which could be
moved to permit entrance. The notices were
posted in a conspicuous place upon the struc-
tures, which was a sufficient compliance wltN
the statute.
[4] The plaintiff complains because th^
property attached and levied ujKjn was not
"particularly described" in the attachment
and the notice of levy. The description as
made was "compressed air machinery" and
"three hoisting engines." The purpose of re-
quiring such description was to notify all
persons who were or might become interested
in the property that the property was under
attachment and levy. No claim is made that
the plaintiff was a purchaser without no-
tice. The pr(^erty was sold to the plaintiff
"subject to existing liens." If the plaintiff
investigated and made Inquiry at the prop-
er place, the town clerk's Office In Ledyard,
he would have found that what purported
to be an attachment lien rested upon the
compressed air machinery and hoisting en-
gines in the quarry in Ledyard, the property
of the Breakwater Company, and possibly
may have found in the quarry the notices
posted by Deputy Sheriff Tubbs, indicating
the particular property attached. The de-
scription was sufficient
[t] Another claim by the plaintiff is that
Novy lost his lien. If he had one at any
time, by the adjudication in bankruptcy of
the Breakwater Company. Attachment liens
acquired more titan four months t>efore pro-
ceedings In bankruptcy are begun, by filing
a petition, are not dissolved by an adjudica-
tion in bankruptcy. Metcnlf v. Barker, 187
U. S. 165, 23 Sup. Ct 67, 47 L. Ed. 122. The
attachment was made on August IS, 1918.
The petition in bankruptcy was filed Decem-
ber 27, 1013. But the plaintiff contends that
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504
101 ATLANTIC REPORTER
(CJonn.
under the antbority of Walteman v. Throck-
morton, 74 Conn. 621, 51 AU. 554, the Judg-
ment In favor of Novy should have been re-
stricted "to be satisfied only out of the In-
terest which the defendant had in the prop-
erty attached." If such restriction had been
claimed or a suggestion made to the court
that the defendant was a bankrupt, the Judg-
ment, no doubt, would have been so restrict-
ed, but the Judgment Is not void. Kovy must,
tf he collects his Judgment at all, collect It
out of the property attached.
There Is no error. The other Judges con-
curred.
m Conn. 3»)
GAI/LON T. BURNS et aL
(Supreme Court of Errors of Connecticut.
July 6, 1917.)
1. Fraud «s»9—AcnoNB— Grounds.
Where fraud and deceit is the ground of
action, it must be proved that the representation
was made as a statement of fact that it was
untrue and known to be untrue by the party
making it, that it waa made for the purpose of
inducing the other party to act upon it, and that
the party to whom the representation was made
was in fact induced thereby to act to his injury.
rE!d. Note.— For other cases, see Fraud, Cent.
Dig. 8 8.]
2. Fraud «=»22(1)— Acnoiss— Diuokncb.
Where stockholders of a corporation in sell-
ing stock to plaintiS fraudulently represented
that the company waa solvent, he was not bound
to investigate to prevent bis being defrauded,
nor for failure to mvestigate could his recovery
for the fraud be denied.
[Bd. Note.— -For other
Dig. §S 19. 20, 22, 23.]
1, see Fraud, Cent
Appeal from Superior Court, New Haven
County; Gardiner Greene, Judga
Action by Jos^b H. Gallon against Ed-
ward J. Bums and others. Judgment for
plaintiff, and defendants appeaL No error.
Hugh J. Murphy and Charles T. McClnre,
both of New Haven, for appellants. Robert
J. Woodruff and James J. Palmer, both of
New Haven, for ai^ellee.
SHUMWAY, J. nie complaint alleges that
the defendants made certain false and fraud-
ulent representations to the plaintiff whereby
he was induced to purchase shares of the
capital stock of a corporation called the
Bums Thomas Company, orgnnlzed to carry
«n the business of selling and repairing auto-
mobiles, ^e defendants in ttieir answer
deny the making of representations alleged
in the complaint. On the trial to the Jury
tlie Issues were found for the plaintiff and
from a Judgment in his favor the defendants
appeal, assigning as error the court's fail-
ure to give proper instructions to the Jury.
The defendant Bums was secretary and a
stockholder and the defendant Thomas was
a director and stockholder of the Bums
Thomas Company. The court in the charge
used language that may be constraod as a
statement that Bums was a director and
secretary. He was not a director. The de-
fendants complain that the court's remark
misled the Jury to their hartn. The remark
was made in connection with the instructions
given .relative to the duty of the plaintiff
to make an investigation for himself in order
to ascertain the truth or falsity of the de-
fendants, representations aa to the condition
of the company. The court said:
"if with such superior means of informadoo
the defendants made false statements to the
plaintiff with intent to deceive him, and the
plaintiff, relying on their better means of in-
formation, went on depending on their state-
ments, they cannot escape liability because it
was possible for the plaintiff to have obtained
information that would have saved him from
losing his money."
It is clear that the court's reference to
Bums as a director of the company was an
inadvertence and did the defendants no harm.
There was nothing to indicate that the court
intended to intinoate that a director of the
company would have any better information
ns to the financial condition than the secre-
tary. The defendants also complain of the
above-quoted passage because, as they say,
the court removed a question of fact from
the Jury; as it was for the Jury to deter-
mine whether the plaintiff should have made
an Independent investigation as to the condi-
tion of the company instead of relying on
the defendant's representations.
[1] This claim of the defendants embraces
essentially all the errors set out in the ten
reasons of appeal, and it is unnecessary to
consider them separately. Where fraud and
deceit is the ground of action :
"It must be proved that the representation
was made as a statement of fact that it was
untme and known to be untrue by the party
making it ; that it was made for the purpose of
inducing the other party to act upon it; that
the party to whom the representation was made
was in fact induced thereby to act to his in-
jury." Barnes v. Starr, 64 Conn. 150, 28 Atl.
980.
The trial court in Its diarge followed this
statement of the law, but the defendant
claims that the court erred because It omitted
to charge the Jury that. If they fonnd the
plaintiff was able to make an independent In-
vestigation of his own concerning the finan-
cial condition of the Bunw Thomas Com-
pany, then he could not recover In this action
under the pleadings.
[2] The defendants state the point in their
brief in this manner:
"The plaintiff was bound to use reasonable
diligence to ascertain the condition of the com-
pany."
Notwithstanding the Claim of the plaintiff
that he had been induced to purchase worth-
less stock of the Bnms Thomas Company
through false representations of the defMid-
ants, the defendants insisted that, as It
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FT. ORANGE BAB BERING CO. r. NEW HAVEN HOTEL 00.
505
appeared In evidence that the plalntiiff
had an opportunity to examine the books
ot the company and fiilled to do to,
be could not recover In this action. The
early case of Sherwood t. Salmon, 5
Day, 439, 5 Am, Dec. 167, does not appear
to have been questioned In this state. In
that case. In an opinion by Judge Swift,
the conrt says:
"I apprehend no authority can be found to
warrant the doctrine that a man mast use due
diligence to prevent being defrauded ; otherwise
he shall be entitled to no remedy. The truth
is, redress is most commonly wanted for inju-
ries arising from frauds, which might have been
prevented by due diligence. • • * In such
impositionB and deceits, when common prudence
may guard persons against the suffering from
them the offense is not indictable, but the party
is left to his civil remedy for redress of the
injury that has been done him."
It is possible that statement of the law
might not be regarded as correct in other
Jurisdictions, and it has sometimes been said
that, where a party deceived can protect
himself by ordinary care, it is his duty to
do 80, but It is with this qualification that
he must have equal means of knowledge and
be equally able to Judge of the matter for
himself and to stand upon an equal fbotlng
with the one using deceit or making the rep-
resentations; then If he acts without exer-
cising the means of knowledge open to him he
does so at his own perU. It matters not ia
this case which rule la applied; for the
plaintiff and defendants were not on the
same footing with respect to information as
to the extent and character of the business
of the Bums Thomas Ck>mpany, and It would
have been erroneons for the court so to have
charged the Jury. Both Burns and Thomas
were stockholders, one the secretary, the
other a director having full knowledge ot
the extent of the business and of the otmdl-
tlon of the company, while the plaintiff had
no Information whatever. The court did not
err in omitting to Instruct the Jury that the
plalntlfl could not recover In this action If
he had an opportunity to examine the books
of the company and he failed to do so. The
Jury were properly Instructed that. If they
found that the plaintiff relied on the false
representation of the defendants that the
business was in a sound and healthy condi-
tion and the other false statements the plain-
tiff claimed to have proved, and was there-
by Induced to buy the stock, he was entitled
to a verdict. If a person buys property hav-
ing a defect known or visible to the buyer,
It would be absurd to hold or find as a fact
that he relied upon a statement In making
the purchase that was contrary to what was
known to him to be true. There was no
obligation on the part of the plaintiff to
examine the books of the company to find
out that the defendants were lying, certainly
not if, as claimed, he was told by the defend-
ants the books would corroborate their state-
ments as to the prosperous condition of the
company
There
curred.
company.
There is no error. The other Judges con-
(» Conn. Hi)
BTT. ORANGE BARBERINO CO. v. NEW
HAVEN HOTEL CO.
(Supreme Court of Errors of Connecticut.
Aug. 2, 1917.)
1. Justices of thb Peacb ®=3l28(l) — Reo-
OBDS — COLLATERAI. ATTACK.
A court held by a justice of the peace is a
court of record, and his records in proceedings
within bis jurisdiction import verity, and can-
not be collaterally questioned.
[Ed. Note.— For other cases, see Justices of
the Peace, Cent Dig. { 40a]
2. Landlobd and Tenant «=>298(1)— Fobfei-
TUBE fob FaILUBE TO PAT ReNT— DEFENSES.
A waiver of the forfeiture for breach of
covenant to pay rent was a good defense in
summary process by the landlord to obtain pos-
session of the premises.
[Ed. Note. — ^For other cases, see Landlord and
Tenant, Cent. Dig. fi 1276-1279.]
3. Justices of the Peace €=>129(1)— Judg-
ment—Res Judicata.
The judgment of the Justice court, in sum-
mary process, adjudging a forfeiture by the ten-
ant, is conclusive evidence that there was no
waiver by the landlord of the covenant to pay
rent at that time, and equity will not consider
the question, in an action to restrain further
proccedinga m summary process.
[Ed. Note. — For other cases, see Justices ot
the Peace, Cent. Dig. § 408.]
4. Appkai. and Ebbob «e»5— Modk or R>-
VIEW.
Erroneons proceedings, in an action of sum-
mary process before a justice of the peace, can
only be reviewed by the Supreme Court of Er-
rors upon a writ of error.
[Ed. Note.— For other cases, see Appeal and
Error, Cent Dig. J{ 8-21.]
5. Injunction 9=>2o — Intxbfebence with
JuDouENTs AT Law.
While under certain drcumstances restrain-
ing proceedings upon a judgment Is a matter ot
tight, courts of equity omy interfere with a
judgment at law where some well-defined inde-
pendent equitable ground exists for restraln-
mg enforcement of the judgment
[Ed. Note. — Fat other cases, see Injunction,
Cent Dig. § 24.]
9. Landlobd and Tenant «s»112(1) — Fob-
ffBITUBB— WAIVKB.
Where the leniency of the landlord has not
put the tenant in any worse position than if
the lease had been strictly enforced, the rule
that one who does not declare a forfeiture whea
he is entitled thereto waives the right is in-
applicable; it resting upon the grounds of equi-
table estoppel.
[Ed. Note. — For other cases, see Landlord
and Tenant Cent Dig. Si 843, 344, 346, 347,
349.]
7. Landlobd and Tenant «=» 108(1)— Ousteb
—Demand fob Rent ob Rb-bntbt— Neces-
sity.
Provision in lease for forfeiture for failure
to pay rent and that no demand for rent or
re-entry should be necessary for recovery of
possession by summary process, is enforceable.
[Ed. Note. — For other cases, see Landlord and
Tenant Cent Dig. §§ 333, 334, 339.]
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506
101 ATLANTIG REPORTBR
(Conn.
Appeal from Superior Court, New Haven
County; James H. Webb, Judge.
Action by the Ft Orange Barberlng Com-
pany against the New Haven Hotel Company.
Judgment for defoidaot, and plaintiff ap-
peals. No error.
The finding shows that on the 17th day of
October, 1911, the defendant leased to the
plaintiff in writing certain space In the Ho-
tel Taft, in New Haven, to be used as a bar-
berlng establishment, tor a period of five
years from the 1st day of September, 1912,
at an annual rental of $2,700, and with an
option for a renewal thereof for a further
period of five years at the same rental, the
rentals being payable monthly In advance.
This lease, among other stipulations, provid-
ed that there was to be a forfeiture in the
event of nonpayment of rent. The forfeiture
danse was in the following language:
"Provided, however, and it is further agreed
that, if the rent shall become due and payable
as aforesaid, or if the said Ft. Orange Barber-
lng Company shall • • * not perform and
fulfill each and every of the covenants and stipu-
lations herein contained to be performed by
said Ft. Orange Barberlng Company, then this
lease shall thereupon, by virtue of this express
stipulation therein, at the option of said man-
agers, expire and terminate, and said managers
may at any time thereafter re-enter said prem-
ises and the samo have and possess as of their
former estate, and without such re-entry may re-
cover possession thereof in the manner prescrib-
ed by the statute relating to summary process;
It being understood that no demand for rent and
no re-entry for condition broken as at common
law shall be necessary to enable the lessor to
recover such possession pursuant to said statute
relating to summary process, but that all right
to any such demand or any such re-entry is
hereby expressly waived by the said Ft. Orange
Barberlng Company."
On or before April 1, 1912, the plaintiff
entered into the leased premises, and has
ever since continued to occupy the same,
claiming the right to do so under the lease.
The plaintiff, except In two Instances, neg-
lected to pay the monthly rental on the 1st
day of each month In advance. In a ma-
jority of Instances these payments of rent
were made after the middle of the month, and
on two different occasions one payment was
accepted for two months' rent All of the
payments were made by check, mailed by the
plaintiff from the dty of New Tork to the
defendant at New Haven. These checks
were accepted by the defondant as and for
the payment of rent then due and owing by
the plaintiff. On September 14, 1916, the
plaintiff was two monthly payments of rental
In arrears, and on this day the defendant
served notice upon the plaintiff to quit pos-
session of the premises. It was admitted
upon the trial that a check for some Install-
ment of rent was sent by the plaintiff to the
defendant on September 14, 1916, which the
defendant refused to accept and returned to
the plaintiff. No evidence was offered by
the plaintiff as to the amount of this chedc,
nor as to what Installment of rent it should
be applied, nor any evidence whatever con-
cerning It No evidence was offered by the
plaintiff to show whether or not, prior to
September 14, 1916, the defendant had ever
in any manner notified the plaintiff that It
.would claim a forfeiture of the lease upon
the failure of the plaintiff to pay the month-
ly Installments of rent at the time they be-
came due and payable under the terms of
the lease. On September 23, 1916, the plain-
tiff tendered to the defendant a sum of mon-
ey that would be In full of all rent to October
1, 1916, which the defendant refused to ac-
cept On September 30, 1910, the defendant
brought an action of summary process against
the plaintiff, returnable before James EL
Wheeler, Esq., a Justice of the peace for
New Haven county, on the 6th day of Oc-
tober, 1916, claiming that this lease had
been forfeited by the nonpayment of rent
The parties appeared before the Justice and
were duly heard, and on October 7, 1916,
Judgment was rendered in favor of the de-
fendant (the New Haven Hotel Company)
that the company recover possessicm of the
premises. Thereupon this plaintiff (the Ft
Orange Barberlng Company) sued out a writ
of error to the court of common pleas for
New Haven county, which writ was subse-
quently withdrawn by the plaintiff. Darin?
the year 1912 the plaintiff carried on the
business of a barberlng establishment at a
loss of $434.15, but thereafter carried on this
business at an annual profit Upon the open-
Ing of this business, supplies were purchased
to the amount of $1,703.50. These supplies,
consisting of hat racks, cuspidors, bottles,
shaving mugs, massage machines, vases, etc..
are still for the most part on hand, and to-
gether with towels and linen, of the value of
$150, are of value to the plaintiff. The plain-
tiff offered no evidence to prove that It ever
made any other tender to the defendant of
the monthly rentals past due, except the of-
fer of payment made on September 23, 1916.
herein mentioned. The plaintiff at the trial
declared its willingness to pay to the defend-
ant all Installments of rent in arrears, with
interest thereon, but made no tender there-
of, nor offered evidence of any offer or ten-
der other than that Just mentioned. None of
the irremovable fixtures In said barberlng;
establishment, such as barber chairs, mir-
rors, washstands, etc., were installed by or
belong to the plaintiff. They were installed
by and are the property of the owner of the
Hotel Taft. Since the year 1912, the plain-
tiff has carried on its business on the premis-
es In question at an annual profit, and it Is
reasonable to expect that this business would
continue to be profitable to the plaintiff,
should It decide to avail Itself of the option to
extend said lease for a further period of five
years from August 31, 1917, and be permitted
to remain in possession of the same.
The plaintiff In its complaint alleged that,
"by reason of the defendant's acquiescence In
the delayed payments for a period of mora
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FT. ORANGE BABBERIN& 00. v, NEW HAVEN HOTEL 00.
607
than foar years, the defendant Induced the
plaintiff to bellere, and the plaintiff did be-
lieve, that a strict performance of the cove-
nants In the lease in reference to the time of
payment of the rent on the 1st of each month
would not be required"; that "the plaintiff
is ready and willing to pay the defendant all
the rents that may be due or become due,
with sudi Interest as may be due thereon";
that 'iJie defendant has suffered no loss or
incDnvenience by reason of the delayed pay-
ments"; and that the Issuance of an execu-
tion of summary process would work Irrepa-
rable loss to the plaintiff. Those allegations
were denied by the defendant in Its answer.
The Judgment file finds the Issnea for the de-
fendant Hotel Company.
Samuel Campner, of New Haven, and Lewla
M. Schener, of New York City, for appellant
Robert C. Stoddard and Jacob P. Goodhart,
both of New Haven, for appellee.
RORABAGE, J. (after stating the facts as
above). This case turns ni)on the sufficiency
of the findings to sustain the conclusion of
the trial court In rendering Judgment for the
defendant. The plaintiff's objections to the
decision of the superior court, which are urg-
ed here, are summarized as follows:
"First Because it appears that the plaintiff
will suffer irreparable injury, damage, and
loss, should the forfeiture of the lease be en-
forced. Second. Because it is a fixed rule in
equi^ to give a tenant equitable relief against
forfeiture for breach of covenant to pay rent
irrespective of any question as to whether such
forfeiture would or would not result in irrepar-
able damage to the tenant, it being the mere
inequity of a forfeiture that prompts the relief.
Third. Because, in view of the previous relations
of the parties and their mutual conduct it
wonld be nnfair, inequitable, and unjust with-
out previous notice of intention, to enforce strict
performance."
t1] This statement of claims Involves sev-
eral questions. One is as to the effect of the
judgment of the Justice of the peace in the
summary process suit The recovery by the
defendant In this action has an imiwrtant
bearing upon the present case. In this state
the action of summary process is regulated
by statute, and the Judgment has the same ef-
fect as a common-law Judgment In other cas-
es. A court held by a Justice of the peace Is
a court of record. His record, therefore, in
Jn'diclal proceedings which have taken place
before him and are within his Jurisdiction,
imports verity, and its statements cannot be
collaterally questioned. Every act recited In
EHich a record Is presumed to have been pn>i>-
erly and rightfully done until the contrary
appears. American Bonding Co. v. Hoyt 88
C!onn. 255, 00 Atl. »32 ; Church v. Peame et
al., 75 Conn. 351, 53 Atl. 955. The Judgment
in the justice court against the appellant the
Bartering Company, established the validity
of the lease, that It was in possession, Its ob-
ligations to pay the rent then in question, and
tUat these installments were due and unsatis-
fied.
[2,3] A waiver of the forfeiture of the
breach of covenant to pay rent was a good de-
fense In the summary process proceeding be-
fore the Justice court. The Judgment of this
court against the appellant for the forfeiture
is conclusive evidence that there was no waiv-
er at the time this Judgment was ren'dered,
and equity will not consider this question in
an action like the present one to obtain relief
against the forfeiture. Dunklee v. Adams, 20
Vt 415, 50 Am. Dec. 44.
[4] The action of summary process is a
special statutory remedy to enable landloi'ds
to obtain possession of leased premises with-
out suffering the delay and expense to which,
under the common-law actions, they might be
subjected by tenants wrongfully holding over
their terms. By section 1078 of the General
Statutes the action of summary process Is
made returnable before a Justice of the peace.
Section lOSl provides that "no appeal shall
be allowed from any Judgment rendered in
any such action." Under section 817 of the
General Statutes a writ of error lies from the
Ju'dgment of a Justice in an action of sum-
mary process to the court of common pleas or
the superior court, but not to this court By
section 1087 of our statutes a defendant In an
action of summary process Is allowed but 48
hours after final Judgment for filing his bill
of exceptions and procuring his writ of error,
and is required to give a sufficient bond, with
surety, to the plaintiff to answer for all rents
that may accrue during the pendency of the
writ of error. Erroneous proceedings in an
action of summary process can be reviewed
by this court only upon a writ of error. This
was not done In the case now before us.
Banks V. Porter, 89 Conn. 30T. The Jurisdic-
tion of a Justice of the peace la limited to
claims for legal relief. General Statutes, |
533.
[S] In proper cases the exercise of equi-
table Jurisdiction to relieve against Judgments
is generally held to be within the discretion
of the court, which is to be guided and con-
trolled in its exercise by legal principles, and
to be exercised in conformity with the spirit
of the law and in a manner to subserve, and
not defeat the ends of substantial Justice,
an'd for a manifest abuse thereof it is review-
able by a proper procedure. While, under
certain circumstances, restraining proceed-
ings upon a Judgment Is a matter, not of
grace, but of right, courts of equity do not
lightly interfere with Judgments of law, and
do so only with occasions where some well-
defined. Independent, equitable ground exists
for restraining the enforcement of the Judg-
ment 15 Ruling Case Law, 730, 731, and
cases cited in notes; Danlell's Chancery Prac-
tice (6th Am. Ed.) — ; 3 Pomeroy's Eq. Juris.
§ 1365 ; Clark v. Board of Education, 76 N. J.
Eq. 326, 74 Atl. 319, 320, 25 L. R. A. (N. S.) 827,
139 Am. St Rep. 763. Hood v. N, Y., N. H.
& H. R. R. Co., 23 Conn. 600, 621. "A court
of equity does not Interfere with Judgments
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508
101 ATLANTIC REPORTER
(Conii,
at law, QDless the complainant has an equi-
table defense, of whlcb be would not avail
himself at law, because It did not amount to
a legal defense, or had a good defense at law,
which he was prevented from availing himself
of by frau'd or accident, nnmixed with negli-
gence of himself or his agents." Truly v.
Wanzer et al., 46 D. S. (5 How.) 141, 12 L.
Ed. 8S.
In the present case there Is no allegation
or suggestion of any fraud, accident, surprise,
or mistake in the proceeding before the Jus-
tice court The application of the rule above
dted, under the facts here presented, seems
to leave the plaintiff but few facts upon
which to base its claim for equitable relief,
the most important of which is the allegation
and claim that the plaintiff was Induced to
believe that a strict payment of periodical
rents would not be required. This contention
has not been sustained. It appears that the
plaintiff alleges in its complaint that:
"By reason of the defendant's acquiescence in
tho delayed payments for a period of more than
four years the defendant indnced the plaintiff
to believe, and the plaintiff did believe, that a
strict performance of the covenants in the lease
in reference to the time of payment of the rent
on the Ist of each month would not be required
of it"
This, as we have seen, was deni^ by the
defendant The Judgment, by finding the is-
sues upon this part of the case for the de-
fendant, necessarily finds that the plaintiff
has failed in its proof upon this subject A
special finding upon this i>art of the case,
which is broader than the general finding of
the issues for the defendant in the Judgment,
Is not inconsistent therewith. There is noth-
ing in the finding whldi suggests a basis for
the claim that:
"In view of the previous relations of the par-
ties and their mutual conduct it would be un-
fair, inequitable, and unjust to sanction the
right of the landlord to cancel the lease without
previous notice of intention thereafter to en-
force strict performance."
Upon the other hand, it appears that the
court below has expressly found that:
"No evidence was offered by the plaintiff to
show whether or not prior to September 14,
1916, the defendant had ever in any manner
notified the plaintiff that it would claim a for-
feiture of said lease upon the failure of the
plaintiff to pay the monthly installments of
rent at the time they became due and payable
under the terms of said lease."
[(] It does not appear from the finding that
by the defendant's leniency the plaintiff has
t>een put in any worse position than it would
have been, had the strict performance of the
lease been enforced. There is a class of
cases holding that one having the right to
declare a forfeiture, who does not declare it
when be Is entitled to do so, waives the right
of forfeiture; but this rule rests upon the
ground of estoppel. In such cases the lessee
has usually incurred large expenditures, or
made valuable improvements, believing tliat
the landlord failing to assert the right of
forfeiture after a breach of the conditions,
it would not be asserted. This is not sudi a
case. O'Connor v. Timmermann, 83 Neb. 422,
123 N. W. 443, 24 L. R. A. (N. S.) 1063, 1066,
133 Am. St Rep. 668.
[7] The plaintiff relies upon Bowman v.
Foot, 29 Conn. 331, as an authority to sus-
tain its contentl(»is. The facts In the Bow-
man Case are easily distinguishable from
those in tills case, especially as to the express
conditions contained In the lease now before
us, which provides that:
"It being understood that no demand for rent
and no re-entry for condition broken as at com-
mon law shall be necessary to enable the lessor
to recover such possession pursuant to said stat-
ute relating to summary process, but that all
right to any such demand or any such re-entry
is hereby expressly waived by tne said Ft Or-
ang-o Barbering Company."
The lease in the Bowman Case contains no
such provision. It follows, therefore, that no
demand for rent or re-entry was necessary
before the commencement of the present ac-
tion. It is also of interest to note that In
Bowman v. Foot the questions presented in
this action were by means of a writ of error.
The plaintiff also lays stress upon the caae
of Hartford Wheel Club v. Travelers' Ins.
Co., 78 Conn. 365, 62 AO. 207. In that case
the questions presented and decided were
that:
"The acceptance of rent, accruing after a
breach of condition for which the lessor has de-
clared his election to terminate the lease, from
a lessee for years, who refuses to recognize the
termination of the lease and continues in pos-
session as before, constitutes a waiver of the
forfeiture, which is binding alike up<Hi the les-
sor and the lessee. While provisions in a lease
which absolve the lessor from making any de-
mand for rent, from making a re-entry, from giv-
ing the statutory notice to quit, and from every
other formality, may enable him to commence
an action for obtaining possession without such
demand and re-entry, they certainly do not pre-
vent the parties from waiving a forfeiture be-
fore such action is began."
In the present case it is not claimed that
the Hotel Company accepted any rent after
a breadi of the conditions for whi<di ft de-
clared its intention to terminate the lease.
It is also of Importance to notice that In the
case of the Wheel Club against the Insurance
Company the procedure adopted to test the
question of waiver was also by a writ of er-
ror, as we hare stated should have been
done in the present case. Burritt v. Lunny,
00 Conn. 491, 495, 406, 97 AU. 75a
There is no error. The other Judges con-
curred.
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Conn.)
PliTTM TREES LIME CO. v. KEELER
509
(92 Conn. I)
PLUM TKE]ES LIME CO. y. KEBLEB.
(Supreme Court of Errors of Connecticut. July
6, 1917.)
1. Appeal ajjd E]bbob «=>574(2)— PKaraciiON
OF Record— BviDBNCE.
Under Gen. St. 1902, { 797, it wm irregu-
lar to move to make the evidence on rulings
jtart of the record on appeal four montlui be-
fore the trial court's finding was filed ; such mo-
tion being proper within a week after the movant
receives notice of the filing of such finding.
[Ed. Note.— For other cases, see Appeal and
Error, Cent. Dig. | 2568.]
2. Insubance «=» 116(1)— FiBK Insubakok —
"iNBtmABLE InTEKEST."
Any person has an insurable interest in
property if he receives a benefit, or by the de-
struction of which he will suffer a loss, whether
he has or has not any title in, or lien upon, or
possession of, the property itself.
[Ed. Note.— -For other cases, see Insurance,
Cent Dig. % 139.
For other definitions, see Words and Phrases,
First and Second Series, Insurable Interest.]
3. Insubance €=»115(4)— Fibe Insubance—
Insubable Inte'best.
Where a quarry tenant erected buildings at
a cost of $2,500 and had a lease which would
run for eight years requiring it to lieep the
buildings and machinery in good repair, it had
•n insurable interest in the buildings.
[Ed. Note.— For other cases, see Insurance,
Cent. Dig. { 147.)
4. Insurance «=»560(1)— Pboceeds — Biobts
OF Tenant.
Where the lease would expire in eight
years and the tenant had built new buildings to
make the premises tenantable and had taken
out insurance which the insurer required to be
in the landlord's name, and on loss the land-
lord collected the insurance after having refused
to insure his own buildings, the value of plain-
tiff's buildings being greater than the amount
of insurance, it was too late for the landlord
to claim that the tenant had no legal or equi-
table right to recover the insurance money.
[Ed. Note. — For other cases, see Insurance,
Cent Dig. JS 1439, 1440, 1442, 1443.)
6. Tbustb «=»1— "Implied Trusts."
A trust may be express or implied, and it
la "implied" when deducible from the transac-
tion as a matter of intent (citing Words and
Phrases, First Series, Implied Trust).
i. Note. — For other cases, see Trusts, Cent
B. §1.1
6. Trusts «=»6S%— Implied Trusts.
Where the landlord collected insurance mon-
ey on policies payable to him by insuring loss
of buildings constructed by the tenant whose
lease would not expire for eight years, an im-
plied trust was raised in favor of the tenant
*a against the landlord in the insurance money.
[Ed. Note.— For other cases, see Trusts, Oent
THg. H 91, 92, 98, 99, 100.]
Appeal from Cotirt of Common Pleas, Fair-
field County; Howard B. Scott, Judge.
Action by the Plum Trees Lime Company
against Samuel Keeler. Judgmeiit for plaln-
tttr, and defendant appeals. No error.
The plaintiff is a corporation organized
under the statute of laws of Connecticut.
This action Is brought by Wilbur P. Tomlin-
SOD, Charles Kerr, and Alpbaus A. Hatha-
way, its directors, acting as trustees for the
purpose of closing up the business of the
corporation pursuant to the provisions of
sections 29 and 30 of chapter 194 of the Pub-
lic Acts of 1903, regulating the voluntary
dissolution of corporations. In August, 1910,
the defendant was the owner of the premises
described in the plaintiff's complaint, as
amended, upon which was a ledge or deposit
of limestone, with lime kilns and lime shed.
On August 4, 1910, the defendant leased
these premises to one Alfred P. Phillips, for
a term of ten years from date, which prem-
ises, under a series of assignments of this
lease, passed into the possession of the plain-
tiff on the 24th day of February, 1912. This
lease provided that the lessee should keep
the kilns, buildings, machinery, and plant
thereon in good repair and should deliver up
the same at the expiration of its tenancy
in as good condition as they now are in,
ordinary wear, fire, and other unavoidable
casualties excepted. Subsequent to the 24th
day of February, 1912, and up to the 8th
day of October, 1914, the plaintiff was en-
gaged in mining or quarrying limestone on
these premises, and the burning, manufactur-
ing, and preparing the same for market. At
the time of the execution of this lease, and
for a number of years prior thereto, these
premises had been unoccupied and unused
and the kilns and buildings had been grossly
neglected. At the time these premises passed
into the possession of the plaintiff, the plant
thereon consisted of three lime kilns, con-
structed of noncombustlble materials, to wft,
exteriorly of brick and lined Internally with
Are brick, and the structures connected with
the kllhs buUt of wood were decayed and
unsafe and not practicable for the uses re-
quired of them, and a lime shed practically
dismantled by the removal of everything that
could be carried away ; the plant being unfit,
inadequate, and insufficient for prosecuting
the business of the plaintiff. The plaintiff,
for the purpose of enabling it to carry on
its business conveniently and efficiently, was
compelled to erect and construct, and did
erect and construct, various structures and
appliances on the leased premises, at its own
cost and expense, and for its own purpose
and advantage. The structures erected by
the plaintiff on these leased premises con-
sisted of a wooden tower on top of the kilns,
with a hoisting apparatus thereon for the
purpose of hoisting their raw limestone and
fuel to the top of the kilns, a platform on
top of the kilns with a bridge leading there-
from to the hillside adjoining the kilns for
the purpose of affording access thereto with
teams and materials, an engine house and
other structures and appliances adapted to
the business of the plaintiff, costing in the
aggregate about $2,500. The buildings, struc-
tures and appliances erected by the plaintiff
on these premises were new, and did not
replace other similar structures, but were
«»7or other cases see same topic and KET-NUMBGR In all Key-Numbered Digests and Indexes
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310
101 ATLANTIC RBPORTEE
(Conn.
radically different from ttaos^ used by their
predecessors In occupancy of the premises,
and was an alteration in the method of hand-
ling the raw material and finished product
in the plaintiff's business.
The plaintiff, desiring to protect its prop-
erty on these premises, made application to
the local agent of the Fidelity Phoenix Fire
Insurance Company of New York, and the
Phoenix Fire Insurance* Company of Hart-
ford, C<mn., for insurance thereon. At the
time of making such application, the plain-
tiff, by its president and general manager,
informed the agent of the condition of the
property desired to be covered by the pro-
posed insurance; that the structures lo be
insured were the property of the plaintiff,
and were located on real estate occupied un-
der a lease from the defendant; and that it
desired to have 'the policies Issued in the
name of the plaintiff, but they were inform-
ed by this agent that the policies could not
be issued in the name of the plaintiff, but
must be issued in the name of the defendant
as owner of the land upon which the same
were located. The plaintiff, relying upon the
statement of the agent, caused the property
of th^ plaintiff, located on these premises, to
be insured for the sum of $600, under policy
No. 329, issued by the Fidelity Phoenix Fire
Insurance Company, and for the additional
sum of $600, under policy No. 2295, issued by
the Phoenix Fire Insurance Company, in the
name of the defendant as benefldary. The
plaintiff paid the premium on these policies,
retained the same In Its possession, and it
bad no intention of insuring the property
of the defendant, but intended to insure its
own property located on the leased premises.
The defendant was ignorant that these pol-
icies, Nos. 329 and 2295, had been Issued un-
til after the pn^wrty Insured thereunder had
been destroyed by fire, when application was
made to him by the plaintiff to execute a
proof of loss as required by the insurance
<!ompenle8. The plaintiff, by Its officers, re-
<iuested the defendant to insure his buildings
on these premises ; but the defendant refus-
ed to do so. On October 8, 1914, the build-
ings, structures, and appliances on these
premises belonging to the plaintiff and insur-
ed under the policies were destroyed by fire.
At the time of the execution of the policies,
and at the time of the loss occasioned by
the fire, the plaintiff was the owner of the
property Insured under these policies. Upon
proof of loss, the insurance companies ad-
Justed the same, and paid the sum of $1,200
to the defendant, and the defendant retained
the same.
On November 17, 1914, the plaintiff In-
itiated proceedings for the dissolution of its
corporate existence pursuant to the provi-
sions of sections 29 and 30 of chapter 194
of the Public Acts of 1903, regulating the
voluntary dissolution of corporations, and
subsequent to that date the plaintiff ceased
doing business as a going concern, and its
directors have since that been acting as trus-
tees in closing up the business of the corpo-
ration. All property belonging to the plain-
tiff is in the hands and under the control of
its directors acting as trustees. The plain-
tiff, by its directors acting as trustees, made
demand upon the defendant for the proceeds
of the insurance policies, as a part of the
assets of the company for the purpose of
liquidating Its Indebtedness and closing up
its business. Subsequent to the proceedings
to the winding up the corporate existence of
the plaintiff, the defendant offered to expend
the proceeds of the policies in restoring the
defendant's own buildings on these premises
which were not insured under the policies.
The defendant refused to pay over the pro-
ceeds of the insurance to the plaintiff. The
proceeds of the insurance policies in the
hands of the defendant are Insufficient to
restore the structures and appliances built
by the plaintiff, to an efficient, workable con-
dition. Immediately after proceedings were
commenced to terminate the corporate exist-
ence of the plaintiff, its directors, acting as
trustees, surrendered the possession of the
leased premises to the defendant, and the de-
fendant has since been in possession of the
same.
Leo Davis, of Norwalk, for appellant
George Wakeman, of Danbury, for appellee.
RORAJBACK, J. (after stating the facts as
above). The plaintiff, by its complaint, seeks
to recover from the defendant the proceeds
of two Insurance policies described in the
complaint. Judgment was rendered for the
plaintiff to recover $819.27.
Several reasons of appeal are based upon
alleged errors of the trial court In denying
certain paragraphs of the defendant's motion
to correct the finding. This motion to cor-
rect is Informal. If we consider it under
sections 795 and 790 of the General Statutes,
we do not find, as we should, any written
exceptions to any finding of facts or refuging
to find facts as requested. Practice Book
(1908), p, 268.
[1] The reasons of appral, if considered
under the provisions of section 797 of the
General Statutes, are irregular. This sec-
tion in substance provides that in lieu of
the motion to correct, under sections 794,
795, and 796 of the General Statutes, either
party may, within one week after he shall
have received notice of the filing of such
finding, file with the clerk of the court a
copy of the evidence on rulings with a mo-
tion that such evidence be made a part of the
record on appeal, and tiiat the claims of the
appellant for such correction may be pre-
sented In the assignments of error in the
same way that questions of law are now
raised. The record discloses that this mo-
tion, to make the evidence on rulings part
of the record, came too early in the defend-
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PLUM TKEES LIME CO. v. EKELER
511
anrs atlempt to ta&e his appeal. It should
hare beeb made within one week after he
received notice of the Wing of the finding.
It appears, however, that this motion was lu
fact made about four mouths before the find-
ing of the trial court was filed with the clerk
of the court. But It appears that the court
below recognized the defendant's motion as
made under the provisions of section 797, as
it ordered a cenrtiflcate of the evidence. The
purpose of the defendant is clear, and we are
not disposed, by a strict construction of sec-
tion 797 of the General Statutes, to deprive
him of a remedy which If properly pursued
was his.
One of the requests to correct the finding
was allowed by the trial court Other as-
signments of error relate to facts of but little
imi>ortance. The evidence as to the remain-
der of th0 facts referred to in the motion to
correct is either conflicting or of such a
nature that we cannot say that the trial
court erred in finding or refusing to find cer-
tain facts. Therefore the motion to correct
the finding is overruled, and the claim for a
correction is denied.
[2] The first four reasons of appeal assign
cirror in a general and indefinite manner.
They may, however, be considered as suggest-
ing the proposition that the court erred in
holding that the Plum Trees Lime C!ompany
had an insurable Interest in the! prox>erty in-
sured. It may be said generally that:
"By the law of insurance, any person has an
insurable interest in property, by the existence
of which he receives a benefit, or by the de-
straction of which he will suffer a loss, whether
he has or has not any title in, or lien upon,
or possession of the property itselt"
It is stated in Getcbell v. Mercantile Sc
Mfrs. Mat P. Ins. Co., 109 Me. 274, 83 Atl.
801, 42 L. R. A. (N. S.) 135, Ann. Cas. 1913B,
739, that:
"The crucial question therefore is: Will the
insured be directly and financially affected by
the loes of the property insured. If so, he has
such an interest as the law will recognize.
The loss must not be indirect or sentimental,
but direct and actual. It is not necessarily an
interest in the property in the sense of title, but
a concern in the preservation of the property,
and such a relation to or connection with it as
will necessarily entail a pecuniary loss in case
of its injury or Bestruction. This opens a wide
field, and the decisions take an extensive range
with a growing tendency to expand rather than
to contract the scope of the term. It has there-
fore been held that it is sufficient if the in-
sured has any legal interest whatever as an own-
er in fee, a mortgagee, a tenant for life^ or a
In Fowle T. Springfield F. & M. Ins. Co.,
122 Mass. 194, 23 Am. Rep. 308, the court
said:
"The plaintiffs had an insnrable interest In
this building. They had erected it at their
own expense, and used * • • it, in their
business, as a carpet store. They might wish
to rebuild it. or to indemnify themselves for
their expenditure, in the event of its loss by
fire. In either case, it was proper for them to
procure insurance, and they might lawfully do
80 to the extent of the value of the building. It
is clear that they wonld derive benefit from its
continuing to exist, and wonld be injured by its
destruction."
The plaintiffs In this case wefre sublessees
of the land on which the building insured
stood. See, also, cases dted in note to Ann.
Cas. 1913E, 741, and 14 VL C. L. 915, S 91.
[S] In the present case the plaintifTs lease
required it to keep the kilns, buildings, and
machlneiy In good repair. It had expended
about $2,600 in erecting buildings, structures,
and appliances upon the leased premises.
These buildings were! new and entirely dif-
ferent from those used by their predecessors
in occupancy. This lease it appears, under
ordinary conditions, was not to expire until
August, 1920. Under theise circumstances,
the plaintiff had such an insurable interest
In the property In question as permitted it to
procure the Insurance and to recover In case
of loss.
The plaintifTs complaint alleges that:
"This corporation, for its own t>ene&t, protec-
tion, and advantage, and at its own cost and
expense, insured its property, so erected and
constructed on the leased premises, by policies
which, through error, inadvertence, and mistake,
were issued by the insurance companies in the
same of the defendant, Samuel Keeler, as bene-
ficiary, instead of in the name of the Plum
Trees IJme Company, although the defendant
had no interest in these policies or the property
insured thereby, other than a nominal one re-
sulting from the error as aforesaid."
[4] These allegations were denied by the
defendant in his answer. We learn from the
judgment file that the Issues upon the ques-
tions thus presented were fovmd in favor ot
the plaintiff. The finding of facts made by
the trial court is entirely consistent with this
adjudication. It also appears that the de-
fendant when requested to insure his build-
ings refused to do so; and that the value of
the plaintiff's buildings, and structures stand-
ing upon the leased premises, when they
were destroyed by fire, was much greater
than the amount of insurance covered by the
insurance policies then in force. Under
these conditions, it Is now too late for the
defendant to claim that the Plum Trees lime
Company bad no legal or equitable right to
recover this insurance money.
The defendant also claims that the trial
court erred in reaching the conclnsion that
the defendant was holding this insurance
money in trust for the plaintiff. It must be
conceded that it appears from the face of the
insurance policies that the apitarent legal ti-
tle to this Insurance and the money derived,
therefrom was in the defendant But the
court below has found as a fact that the in-
tention of the Hum Trees Lime Company,
the party procuring the insurance, was to
protect its own property, and not that of the
defendant. It has also been found that
through mistake and Inadvertence the insur-
ance policies were Issued by the insurance
companies in the name of the defendant
Keeler, as beneficiary, although he has no
interest tn the policira other than a nominal
one.
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[8] Mr. Justice Swayne, In Seymour v.
Freer, 8 Wall. (75 U. S.) 202. 19 L. Ed. 306,
defined a trust as:
"Where there are rights, titles, and interests
in property distinct from the legal ownership.
In such cases, the legal title, in the eye of the
law, carries with it, to the holder, absolute do-
minion, but beUnd it lie beneficial rights and
interests in the same property belonging to an-
other. These rights, to the extent to which they
exist, are a charge upon the property, and con-
stitute an equity which a court of equity will
protect and oiforce, whenever its aid for that
purpose is • * • invoiced."
It la also a familiar principle of law that
a trust may be express or Implied, and that
It 1b implied when dedudble from the trans-
action as a matter of Intent 8 Words and
Phrases, p. 7172.
[$] It follows therefore that from the facts
found the trial court properly held that the
defendant might well be regarded as holding
the proceeds of this Insurance money in
trust,
One reason of appeal Is that the court err-
ed in ruling and holding that the plaintitr
was not bound, under its lease, to pay to the
defendant rent for the term beginning March
1, 1914, and ending March 1, 1916. From the
scant information which the record contains
ui>on this branch of the case .we cannot find
any error in the action of the trial court in
that connection.
Upon the facts found there Is no ground
for the claim now made that the court erred
in holding that the defendant was not enti-
tled to a set-off for his expenses In a former
suit in collecting the insurance money now in
question. It appears that the only Issue in
that case was the right of the possession of
the checks which were given by the insur-
ance companies in their adjustment of the
loss sustained by fire. These checks were
made payable to the defendant, Keeler, and
were In the possession of Tomlinson, the
president of the Plum Trees Lime Company.
This question was litigated between Keeler
and Tomlinson. Keeler was successful in this
litigation, and Tomlinson paid the costs.
It appears that this litigation was not
against the corporation, but against an In-
dividual who happened to be president of
the company. But a more complete and de-
cisive objection to this claim is that it is ap-
parently based upon a demand for attorney's
fees in an action in which no such claim
could have been properly allowed.
There Is no error. The other Judges con-
curred.
(87 N. J. Bq. 60»)
JOB HAINES HOME FOR AGED PEOPLE
v. KEENE et al. (Na 41/192.)
((3ourt of Chancery of New Jersey. June 29,
1917.)
1. Wiixs <S=»782(12) — Devise or Pboprbtt
Not Bklongino to Testator — Constbuc-
TION.
Where a testator devised to his widow for
life, remainder to his son, the realty upon which
he lived and to which he had no title at the
time of his death, but upon his death became
the absolute property of his widow, .as tenant
by the entirety and gave widow personal prop-
erty wliicb she accepted, in the absence of an
express statement in the will that the provi-
sions for the widow were given her in lieu of
her ownership of the realty, such intention can
only be deduced by dear and manifest implica-
tion from the will, founded on the fact that the
widow's claim of title to the property would
be inconsistent with the will and so repugnant
to its dispositions.
[Ed. Note.— For other cases, see Wills, Ont.
Dig. t 2031.]
2. Wiixs *=»782(12)— Rights of Dbvibees—
Election — Pbovision fob Subvivino
Wife.
The intent of a husband to dispose of his
wife's property and thus put her to an election
will not be inferred where the words of the
gift would have their fair and natural imimrt
by applying them to the property which he has
the pofweT to dispose of by will.
[Ed. Note.— For other cases, see Wills, Cent
Dig. S 2031.1
3. Wills $s>781 — Rights of Devisees —
Election.
In determining the necessity for an election
between property rights and rights under a will,
general words of description such as "all my
lands," "all my estate," etc., do not require the
beneficiary to elect, since the testator's language
can have full effect when applied only to his
share or interest, and he is presumed to have
intended to give only tlie property he had to dis-
pose of.
[Ed. Note.— For other cases, see Wills, Cent
Dig. Sg 2013-2017.]
4. Wills «=9781— Rights of BsNEnciABiES
— E1.BCT10N — Specific Devise — Pbofebit
Owned by Entiketies.
A case for an election by the co-owner of
property, who is a beneficiary under testator's
wil( will be presented only where testator's
gift of it to another is so expressed by words of
description as to import an intent to give to
the latter the whole of the common property in
its entirety.
[Ed. Note.— For other cases, see Wills, (^nt
Dig. i§ 2013-2017.]
6. Wills «=>782(12) — Rights of Benefici-
ABiES— Election— Specific Devise— Pbop-
ebty Owned by Entireties.
Where testator devised to his wife for life, re-
mainder to his son, property owned by entireties
by the specific words of description "the house
and premises where I now reside," the specific
gift to the son put the widow, who also took a
bequest of personal property under the will, to
an election.
[M. Note.— For other cases, see Wills, Cent
Dig. { 2031.]
8. Wills *=>781— Rights— Elbotton.
Nor could the other sons do so upon her
death where they had accepted provi^ons made
for them under the will.
[Ed. Note.— For other cases, see Wills, (3ent
Dig. Si 2013-2017.]
7. Wills ®=»718— Rights — Electiow — Ao-
CEPTANCE or Benefits.
A person accepting a benefit under a will
is required on the doctrine of election to perform
all the requirements of the will.
[Ed. Note.— For other cases, see Wills, C!ent.
Dig. IS 1717-1721.]
8. Wills ©=718 — Rights — Election — At>
CEPTANCE OF Benefits.
A person may not take a benefldal inte>'est
under a will and at the same time set np any
»For other caaea see aam* topic and KBY-NUUBEK in all Ker-Nombered Dlgaeta and Indexes
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N.J.)
JOB HAINES HOME FOR AGED PEOPLE r. KEENE
613
right or daim of his own, although otherwise
legal and well-founded, which will defeat or in
any way prevent the full effect and operation of
every part of the will.
[Ed. Note.— For other caaes. Me Willa, Cent
Dig. SS 1717-1721.]
9. WlXLB «=3792(5)— BVIDinCB— SUFFICIENOT.
Evidence held to justify the conclusion that
the other sons consented to and acquiesced in
the disposition of the property made by the will,
and elected to take toe benefits given them by
the will rather than assert their right to an in-
terest in the property.
[Ed. Note.— For other cases, see Wills, Cent
Kg. S§ 2061, 2062.]
10. Wnxs «=»7»6—Right&-Blbotios— Va-
lidity.
If beneficiaries under a will made an elec-
tion in ignorance of their right to property dis-
posed of by the testator, or under a mistalce
as to the real nature and extent of their rights
therein, such election would not be binding and
could be revoked unless rights of third parties
had intervened which would be interfered with
by the revocation.
[Ed. Note.— For other cases, see Wills, Cent
Dig. a 2064-2068, 2070.]
11. Wnxs «=»778— RioHTS of Lboatees and
Devisees— Elbction-Nattjbb of Doctbini!.
The doctrine of election is one resulting in
compensation and not in forfeiture.
[Ed. Note.— For other cases, see Wills, Cent
Dig. ii 2004, 2006, 2010.]
Action to quiet title by tbe Job Haines
Home for Aged People against Clarence A.
Keene and others. Decree for complainant
Charles G. Titsworth, of Newark, for com-
plainant Albert W. Harrla, of Newark, for
defendants.
FOSTER, V. C. This Is an action to quiet
complainant's title to certain property in the
dty of Newark xised as a home for aged
people.
The premises in question were part of the
real estate devised by the last will of Jos-
eph Crane (which was probated October,
1832) to his son and four daughters. Phebe
Keene, one of tbe danghters, thus acquired
an undivided one-flfth Interest in the prop-
erty, and by a deed dated October IS, 1832,
the remaining devisees conveyed their un-
divided fonr-flfths interest to said Phebe
Keene and Alfred Keene, her husband.
By his will Alfred Keene, who died in 1880,
bequeathed to his wife, Phebe, certain per-
sonal property, and also gave her tbe use of
the premises in question for life, and on her
death he devised the same to liis son, Joseph
EJdward Keene. In addition to Joseph, Al-
fred Keene left him surviving two other
sons, Thomas Anstln Keene and Howard De
Witt Keene, and the defendants are heirs at
law of Thomas and Howard.
Alfred Keene made the devise to his son
Joseph on the death of his widow of specific
property, viz. "the house and premises where
I now reside," which are the premises in
question, and this devise was made to Jos-
eph and accepted by him, as stated in Al-
fred's will, "in full satisfaction of all claims
against me or against my estate for any serv-
ices rendered to me in my lifetime or for
any other Indebtedness of any kind whatso-
ever."
Thomas was given and discharged from the
amount of his Indebtedness to his father,
and to Howard was given a bond and mort-
gage for ?1,800, with the accumulated inter-
est thereon; and Alfred also bequeathed and
devised to each of his sons an equal one-third
interest In the residue of tils estate.
By bis will Alfred Keene sought to make
a balanced disposition of his estate among
his widow and their children, and the widow
and children accepted without objection the
provisions which he bad made for them.
After the death of her husband, Phebe
Keene continued to live on the property with
her son Joseph for the rest of her life.
Thomas had his home In Brooklyn, N. X.,
where he died in 1889, and Howard's home
was In Tonkers, N. Y., where he died in 1899.
Neither of them or any of their children ever
lived on the premises in suit after the death
of Alfred in 1880. Joseph, however, continu-
ed to live on the property from the time of
his father's death until he died on November
22, 1912.
Joseph left a last will and testament,
which has been duly probated, by which be
gave certain legacies to tbe defendants, the
children of his brothers, Thomas and How-
ard, amounting to about $4,500, and which
they have accepted, and be devised the prem-
ises in question and the residue of his real
and personal property to complainant for
the purpose of establishing and maintaining
a home for aged people. Complainant has
been in possession of the premises since May,
1914, and has been conducting the same as
an auxiliary home for aged people in accord-
ance with the direction of Joseph's will,
Joseph's title to the premises under the
devise from his father was never questioned
by his mother, Phebe Keene, or by his broth-
ers, Thomas and Howard. Defendanto, how-
ever, as the respective heirs at law of Thom-
as and Howard, now claim to own an un-
divided two-thirds Interest in the property
by reason of the facte above set forth. Their
contention is that under the will of their
great-grandfather, Joseph Crane, their grand-
mother, Phebe Keene, became seised of an
undivided one-flfth interest in the property
absolutely; that the deed of October 15,
1832, from Joseph Crane's four other chil-
dren and devisees to Phebe Keene and Alfred
Keene, her husband, conveyed their four-
fifths Interest in the property to Phebe and
Alfred as tenante by the entirety ; and that
upon the death of Alfred the fee to the en-
tire property became vested in Phebe by the
joining of her title to the undivided one-fifth
interest with her title to the remaining four-
4s>For otber caiea tee same topic and KKT-NUMBER la all Key-Numbered Digests and Indexes
101A.-SS
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101 ATLANTIC REPORTBE
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fifths Interest which she acqnired as the sur-
viving tenant by the entirety. They fur-
ther contend that, the fee to the property be-
ing thus vested In Phebe, the will of her
husband, Alfred, by which he gave her, as
Ms widow, a life Interest In the property,
and on her death devised the same to Joseph,
was Ineffective to accomplish Its purpose, as
the property belonged absolutely to Phebe,
and on her death Intestate the property de-
scended to her three sons, Joseph, Thomas,
and Howard, and that the only Interest In
the property which Joseph could and In effect
did devise to complainant was his undivided
Interest in the property, and that these de-
fendants, as the heirs of Thomas and How-
ard, both of whom died intestate, inherited
the remaining two-thirds interests on the
death of their respective parents.
Complainant's answer to the contentions of
defendants is that Phebe Keene and all
claiming under her, or under her sons Thom-
as and Howard, are estopped from asserting ti-
tle to the property, or to the disposition made
of it by the will of Alfred, and also by the will
of Joseph, because Phebe Keene and her sons
Thomas and Howard elected to take and ac-
cept the provisions made for them in the will
of Alfred in place of their interest in the
premises in question, and, further, because
the defendants elected to accept the provi-
sions made for them by the will of their
Uncle Joseph, in lieu of any Interest they
may have been entitled to in the property.
Complainant also asserts- title to the prop-
erty which it claims to' have acquired by the
continued adverse possession thereof of Jos-
eph and complainant since the death of Al-
fred Keene in 1880. Complainant further in-
sists that, under a provision of Joseph's will
which reads, "If any contest the provisions
of this will they are to lose all benefits there-
in," defendants, having elected to receive
and accept the benefits given them under his
will, are estopped by this provision from con-
testing the devise therein made to complain-
ant
The questions to be determined under the
issue thus presented are:
Whether Phebe Keene and her sons Thomas
and Howard were put to their election by the
disposition made of her property by the will
of her husband, and if they were, if they ex-
ercised their election by accepting the ben-
efits given them by his will.
If Phebe, Thomas, and Howard were not
obliged to elect and did not elect under the
will of Alfred Keene, were defendants as the
heirs of Thomas and Howard put to their
election by the devise of the property to com-
plainant under the will of Joseph, and, if so,
did they exercise their election by accepting
the benefits given them by his will?
If an election In either case was not nec-
essary, or if it were not exercised, has com-
plainant through its own and Joseph's pos-
session acquired Adverse title under color of
title to the property?
What effect, if any, has the provision of
Joseph's will against a contest npon the con-
troversy ?
The general doctrine of the law relating to
election is stated by Mr. Justice Depoe in
delivering the opinion of the Court of Errors
and Appeals in Pratt v. Douglas, 38 N. 3. Eq.
516 at p. 536, as follows:
"Where the testator has only a partial inter-
est in the property he diBposes of by his will,
courts will incline as far as possible in favor
of a construction which will apply the language
of the will only to the interest or estate which
the testator is able to dispose of in his own
right, and it requires an unequivocal expression
or indication of an intent to dispose of the en-
tire property, in order to raise a necessity for
an election. 1 Pom. Eq. Jur. pars. 488-193."
And he adds that in Adslt v. Adslt, 2 Johns.
Ch. (N. T.) 448, 7 Am. Dec. 639, ChanceUor
Kent from a review of the case deduces a
rule that has met with uniform approval:
That to enable the court to deduce an inten-
tion that a testamentary gift to the widow should
be in lien of dower, "the claim of dower must be
inconsistent with the will, and repugnant to its
dispositions, or some of them ; it most, in fact,
disturb or disappoint the will."
In Stephenson v. Brown, 4 N. 3. Eq. 503,
certain lands were devised for life to testa-
tor's widow, and it was held that:
"The widow was at liberty to take her dower
in the lands, or to accept the devise. If she
elected to take the devise, she must take it cum
onere. There is no rule distinguishing between
the widow and other devisees, as "the settled
principle of equity is that he who accepts a ben-
efit under a will, must conform to all its provi-
sions and renonnce every right inconsistent with
them."
[1] In the case before us we find Alfred
Keene by his will devising to his son the par-
ticular property where he lived and to which
he had no title at the time of his death, and
which upon his death became the absolute
property of Ids widow, and giving her a life
interest therein, together with certain per-
sonal property which she accepted. There
is no express statement in bis will that the
provisions made for his widow are given her
In lieu of her ownership of the property, and
an intention on his part that such should be
their effect can only be deduced by clear and
manifest implications from bis will, founded
upon the fact that her claim of title to the
property would be inconsistent with the will
and so repugnant to its dispositions as to dis-
turb and defeat them. Pratt v. Douglas,
supra.
[2] An Intent of the husband to dispose of
his wife's share of property, and thus put her
to an election, will never be inferred when
the words of the gift may have their fair
and natural Import by applying them only
to the property which he has the power to
dispose of by will. 1 Pom. Eq. Jur. S 550-
[3] In determining the necessity for an
election there is a dLstlnctlon between a gift
in general words of description such as "all
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JOB HAINES HOME FOR AG£D PEOPLE r. KEENB
615
my lands" or "all my estate" and the like,
and a gift of spedflc property, "In cases of
the first class, an obligation to elect does not
arise, for the testator's language can have
full effect when applied only to his share or
Interest and he is presnmed to have intend-
ed to give only the property he had to dis-
pose ot."
[4] "In cases of the second class It can-
not be said that upon every specific devise
or beqnest a duty to elect arises. A case for
an election by the co-owner of the property
80 given, who is a beneficiary under the tes-
tator's will, will be presented only where the
testator's gift of it to another is so express-
ed by words of description as to import an
Intent to give to the latter the whole of the
common property In Its entirety." Pratt v.
Douglas, 38 N. J. Eq. 538.
[6, 8] The will of Alfred Keene In the devise
to Joseph Qsed the specific words of descrip-
tion "the house and premises where I now
reside," and it is clear from this that he in-
tended this property upon the death of his
widow should be Joseph's absolutely; fur-
thermore, the will states that this gift to
Joseph was in satisfaction of testator's in-
debtedness to him; and the remainder of tes-
tator's estate, excepting an undivided one-
third Interest In the residue, was given to his
widow and two other sons. And it would
seem under the principle relating to a specific
devise stated above that the specific gift of
the homestead to Joseph put the widow to
her election. She could not assert her title
to it and accept the personal property be-
queathed to her without defeating and dis-
appointing the will; nor could her sons
Thomas and Howard do so on her death, as
they had accepted the provisions made for
them under their father's will.
On the distribution of Alfred's estate and
the payment to the widow and to Thomas
and Howard of the gifts made to them, there
was nothing bat Joseph's undivided one-third
interest in the residue out of which testator's
indebtedness to blm could be paid.
This clearly was not testator's intention.
His scheme of distribution contemplated suit-
able provision for his widow and children
and the settlement of the Indebtedness owing
by him to Joseph. His widow and his sons
Thomas and Howard could not take the pro-
visions made for them and then claim title
to the property devised to Joseph without
dlstnrbing and disappointing testator's oth-
er dispositions of his property and defeating
bis attempt to settle the indebtedness owing
by liim to Joseph by the devise of his home.
[7] It is well settled that a person accept-
ing a benefit under a will Is required, on the
doctrine of election, to perform all the re-
quirements of the will. "He cannot disap-
point a will under which he takes a benefit."
Bird V. Hawkins, 58 N. J. Eq. 229, at page
246. 42 Atl. 588. at page 503.
[SI And the rule is equally well settled
that a man shall not take any beneficial in-
terest under a will, and at the same time set
up any right or claim of his own, it other-
wise legal and well-founded, which shall de-
feat or in any way prevent the full effect
and operation of every part of the will. Van
Duyne v. Van Duyne, 14 N. J. Eq. 60.
Mrs. Keene and her sons Thomas and How-
ard, in accepting the benefits provided for
them under Alfred's will, were required on
the doctrine of election to relinquish such of
their rights as were Inconsistent with the
provisions of his will in order "that no dis-
position of the testator therein may be de-
feated." Pratt T. Douglas, supra, 38 N. J.
Eq. p. 538.
[9] The fact that Mrs. Keene accepted the
provisions made for her by the will and that
after the death of her husband she continued
for a few years, and until her death, to re-
side on the property with Joseph in the en-
joyment of the life estate therein given her
by the will, and that Thomas and Howard
removed from the state and established
homes elsewhere, and allowed Joseph to as-
sert and to exercise sole ownership of the
property, without claiming at any time their
right to any interest therein. Justifies the
conclusion that they consented to and ac-
quiesced in the disposition of the property
made by their father's will and elected to
take the benefits given them by by his will,
rather than assert their right to an interest
in the property. And the same comment can
be made and the same conclusion reached on
the conduct of the defendants in accepting
the provisions made for them by the will
of their Uncle Joseph.
Since the death of Alfred In 1880 all par-
ties, including the defendants, having any
right to assert an interest in the premises
in question, remained silent until after Jos-
eph's death. They permitted him to lose
the opportunity of having the indebtednes?
owing him by his father paid out of his fa-
ther's estate, they allowed him for 30 years
to bear the expense of maintaining and im-
proving the property, and the defendants ac-
cepted the benefits amounting to about $4,500
which Joseph gave them by his will under
the belief that he owned the premises in
question, and they now seek to keep the
benefits his will gave them and to defeat and
disappoint the will In other respects.
[10] It Is not claimed that defendants or
their parents or grandmother acted or made
their election in ignorance of their right to
the property, or under a mistake of the real
nature and extent of their respective rights
therein. If their election had been made un-
der such circumstances, it would not be bind-
ing, and could be revoked, unless rights of
third parties have intervened, which would
be Interfered with by the revocation.
In Young v. Young, 51 N. J. Eq. at page
500, 27 Atl. 634, Vice Chancellor Pitney stat-
ed that:
"The authorities seem to concur in holding
that, in order to make the enforcement of one
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101 ATLANTIC REPORTER
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demand, which Is Inconsistent with another, a
final and binding election to talce that, and not
the other, the party must either be shown to
have acted advisedly, with proper knowledge
of all the circumstances, and witn a conscious-
ness of the effect of the act relied upon, or the
party adversely interested must have so chang-
ed his position in reliance upon such action that
it would be inequitable to permit the party who
has the choice to recede &om his former action."
Cbancellor Vroom, In English v. English,
3 N. J. Eq. 609, 29 Am. Dec. 730, uses this
language:
"What acts of acceptance or acquiescence are
sufficient to constitute an election cannot be des-
ignated with sufficient precision to justify a gen-
eral rule. Each case, as it occurs, must be gov-
erned by its own peculiar circumstances. The
general questions are whether the parties act-
]g or acquiescing were cognizant of their rights,
whether they intended to make an election,
whether they can restore the individuals af-
fected by their claim to the same situation as if
the acts had never been performed, or whether
these inquiries are precluded by lapse of time."
These statements of the law are particu-
larly applicable to the sltnation under con-
sideration. Lapse of time and the death
of Mrs. Keene and her three sons render
it impossible to restore the parties to their
original position. In reliance upon the elec-
tion of his mother and brothers, Joseph made
no effort to collect the Indebtedness owing
him from his father's estate; and, relying
on their apparent election, he permitted them
to divide the greater part of the estate among
themselves. During the 80 or more years
of his occupancy of the premises, with their
consent or acquiescence he treated the prop-
erty as his own and paid the taxes, made Im-
provements thereon, and generally acted as
and publicly claimed to be the owner of the
property, and it would now be impossible to
have an accounting of his expenditures in
order to reimburse his estate. He, further-
more, in connection with the devise of this
property to complainant, made substantial
gifts to the defendants which they accepted,
and do not offer to return; and if they were
able and willing to make return of the leg-
acies he gave them, it cannot be said that
the amount thereof, with interest, would be
BuIBclent to reimburse his estate for all that
was due hira.
[1 1 ] The doctrine of election is one result-
ing In compensation, and not in forfeiture
(Toung V. Young, supra), and if it were pos-
sible for defendants to properly reimburse
and compensate the estate of Joseph for all
that was due him, a different construction
might be put upon their conduct and upon
the acts and conduct of Mrs. Keene and her
sons. But, as sudi compensation cannot be
made, prindpally because the amount re-
quired cannot be ascertained with any de-
gree of accuracy, I deem it equitable under
all the circumstances that defendants should
not be permitted to recede from the former
action of themselves and of those under
whom they claim; and to hold that Mrs.
Keene and her sons exercised their election
under the will of Alfred Keene, and that de-
fendants also exercised their election under
the will of their Uncle Joseph. This con-
clusion makes it unnecessary to pass upon
the other questions raised on the argument
A decree for complainant wUl therefore be
advised, with costs.
(90 M. J. Law, 6S;>
SWILLEK et al. v. HOME INS. CO. OF NEW
YORK. (No. 30.)
(Court of Errors and Appeals of New Jersey.
July 18, 1917.)
(Syllahus by the Court.)
IirsuKAiTCE «=s»387— FiKB Policy— Ikdobsb-
ICENTS.
The indorsement by an insurer on a fire in-
surance policy of consent to change of owner-
ship in the property insured, without more, is
not to be construed as an agreement by the com-
pany to become liable to the new owner for a
loss occurring after tihe ownership^ actually
changed but before the consent was given.
[Ed. Note.— For other cases, see Insurance,
Cent. Dig. i 1025.]
The Chancellor, and Bergen, Mintum, Kal-
isch. White, and Williams, JJ., dissenting.
Appeal from Supreme Court
Action by Max and Abe Swlller, copart-
ners, against the Home Insurance Company
of New York. Prom a Judgment of the Su-
preme Court for plaintiffs, defendant appeals.
Reversed.
Russell B. Watson, of New Brunswick, for
appellant John P. Kirkpatrick, of New
Brunswick, for appellees.
PARKER, J. The suit is to recover loss
by fire which plaintiffs claimed to be covered
by a policy issued by the defendant com-
pany. The policy was Issued in the names
of Max Herman and Wolfe Fisher, as their
respective interests might appear, for a term
of one year from October 8, 1912. On Feb-
ruary 14th, about 3 p. m., Fisher and Giott-
lleb delivered a deed conveying the property
to the two SwIUers, the present plaintiffs,
who also received the written policy, and
about 4 p. m. of the same day they gave it
to their insurance broker, named Levine,
with directions to have the ownership trans-
ferred to their names. Levine was not the
agent of the company. That agent was a
corporation named Nellson T. Parker, Ina
Levine did not go to Parker for an indorse-
ment of change of interest until the next
morning, when the indorsement was made.
In the meantime the fire had occurred. The
stipulation of facts shows that, when Levine
presented the policy for indorsement of new
ownership, neither Parker, Inc., nor tbe
company knew of the Are having taken place,
and Levine did not Inform Parker of it
On this state of facts, the trial Judge, sit-
ting without Jury, held that, although in
his estimation the policy was not originally
enforceable because Fisher had no interest
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8WILL.EB V. HOME INS. 00.
517
In the property at the time of Its issue or
thereafter, yet plaintiffs were entitled to re-
cover, on the theory, as he stated It, that the
question was not one of waiver of the In-
validity of the original policy, but of prac-
tically new insurancei and that instead of
writing a new policy for the remaining por-
tion of the policy (term?) the company ex-
tended the old insurance to the new owners.
We think that this was error. It may be
conceded that by indorsing the new owner-
ship on a policy which the company could
have voided for misstatement of original
ownership, or for transfer of ownership to
the SwlUers without such indorsement, the
company entered into a fresh contract with
said new owners to insure them for the re-
mainder of the term, and that the premium
originally paid was a valid consideration
therefor. But when did the remainder of the
term begin? In order to uphold the decision
below, it is necessary to say that it began
when the deed to the SwlUers was delivered.
Doubtless the company could have so agreed,
but the question is: What agreement did it
actually make by the indorsement? The
only reasonable answer, as it appears to us,
is that in the absence of some special stipula-
tion the insurer's consent to diange of ovra-
ership must be construed as operating to
protect the new owner from the time it is
given, and that time is, ordinarily, when it
is affixed by the company or its authorized
agent, and that it does not relate back to any
prior time when the ownership in fact chang-
ed; or, in other words, that the Insurer
does not, by assenting to the change of own-
ership, assume the liability for a loss occui^
ring before that consent was given, of which
it knew nothing, and for which, as the policy
stood without its consent, it was not liable.
The case Is not within the rule in Hal-
lock V. Insurance Co., 26 N. J. Law, 268, 27
N. J. Law, 646, 72 Am. Dea 379, for in that
case the application was made for Insurance
and premium tendered to the agent before
the fire occurred for a term to begin at the
date of the application, and the policy was so
written. There was consequently in that
case no room for argument as to what the
conapany agreed to, and the main question
was whether It was relieved from the agree-
ment because the flie bad occurred without
its knowledge before it had formally entered
Into it
One of the defenses set up in the plead-
ings, and not contradicted as to the facts,
was that the i>olicy contained ' a provision
that, unless otherwise provided by agree-
ment Indorsed thereon or added thereto, it
should be void if any change, other than
by the death of the insured, take place in the
interest, title, or possession of the subject
of insurance, etc., and that by the conveyance
to tile Swillers such change took place and
vitiated the policy. On the trial defendant
requested the court to And that the forego-
ing clause was a warranty, of which tber*.
had been a breach by the conveyance to the
Swillers which had not been waived by an
Indorsement on the policy or addition there-
to; and further that the indorsement in
question, placed on the policy after the Are,
did not constitute such waiver because the
company had no knowledge or notice of such
Are. These requests were either overruled
or confessed and avoided by the ' decision
placing the Judgment upon the ground, not
of waiver, but of new insurance. As the
case stands before us, defendant is entitled
to attack both the refusals of the court and
its specific findings of law Injurious to de-
fendant. It is not necessary to pass upon
the question whether, by the language of the
policy insuring Herman and Fisher as their
respective interests appeared, the policy,
though void as to Fisher, would be ^ood as to
Herman. It might even be conceded for the
sake of argument tliat they might have re-
covered for the loss. The simple question be-
fore us Is: Was the company under a con-
tractual liability to the Swillers for a loss
after title vested in them, and before the
indorsement of change of ownership?
The trial court held that It had agreed to
such liability by its Indorsement made after
the Are and without knowledge thereof. This
we consider erroneous, for reasons already
stated; and for this error the Judgment must
be reversed.
The CHANCBLLOE, and BERGEN, MIN-
TURN, KALISCH, WHITE, and WILLIAMS,
JJ., dissent.
BERGEN, J. (dissenting). I am unable to
agree with the majority of the court that
the refusal of the trial court to And, as re-
quested, ttiat the indorsement entered on the
policy on February 15, 1913, which reads as
follows:
"Interest in this policy is hereby vested in
Max and Abe Swiller, trading under the name
of Swiller Bros, as owner instead of as hereto-
fore. Loss if any, first payable as before. Sec^
ond mortgagee eliminated"
— was not a waiver of previous breaches of
warranty as to ownership, called to the at-
tention of the court, because the company had
no notice of the facts alleged to avoid the
insurance and forfeit the policy, was errone-
ous.
This request is based upon the assumpticm
that the policy, before it was assigned to the
plaintifTs and the indorsement made thereon,
was absolutely void because when it was is-
sued to the previous owners, Max Herman
and Wolfe Fisher, the latter had conveyed
his undivided one-half Interest to Nathan
Gottlieb. The policy of Insurance is not
printed In the record, nor was It submitted
to the court; the case being tried and de-
termined upon facts stipulated, so we have no
knowledge of the terms of the policy, relat-
ing to the character of the Interests insured,
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518
101 ATLANTIC REPORTER
(N.J.
except as they appear In the stipulations,
the first of which is that on October 8, 1912,
the defendant Issued a Standard fire Insur-
ance policy "to Max Herman and Wolfe BHsh-
er, as their respective Interests appear, for
the term of one year from the 8th day of
October, 1912, at noon, to the 8th day of
October, 1913, at noon." As I read this
policy, It Is an Insurance against loss of the
respective Interests of each, and not of their
joint Interest, and there is no reason why
the Insurance company could not lawfully
contract, as they did, to Insure either against
loss so far as their respective interests ap-
peared, and if so each had an undivided in-
terest insured. If EMsher bad no interest,
aU the company insured was the Interest of
Herman, which Interest remained insured un-
til lie conveyed it to the plaintiffs, and so
long as be retained that interest his mort-
gagee, Aagusta McGlnnls, one of the plain-
tiffs, was protected to the extent of his in-
surable interest by reason of the Indorsement
making any loss tlrst payable to her as mort-
gagee.
None of the conditions contained In the
policy upon which the breaches of warranty
appearing In the requests to charge or find
appear in this record; but, assuming that the
policy contained these warranties, there was
no breach so far as the interest of Herman Is
concerned, because hia respective interest was
always in existence and continued to be un-
til he conveyed the property niid handed over
the policy to the new owner; for "respective
Interests" means such Interests as each of the
insured had. It is not a case where tenants
in common are Jointly Insured where con-
veyance by one would avoid the policy, but
an insurance of the respective interest of
each as such interest might 'appear, and
therefore there was no breach of warranty
so far as Herman was concerned which call-
e<l for a compllan(« with the sixth re-
quest that the indorsement did not constitute
a waiver of the breaches of warranties, be-
cause one of the parties held a valid in-
surance to the extent of his interest. The ef-
fect of the new contract created by the in-
dorsement on the policy after the conveyance
by Herman and after the loss Is not raised
by any request to charge and is not to be
considered because all of the requests are
based upon the theory that the entire policy
was void from its inception because Fisher
was not one of the owners when the policy
was issued, and therefore the very interest-
ing question, bow much of the period of the
time stated in the policy it was to cover
inures to the assignee when the entire pol-
icy is assigned and consented to by the in-
surance company, is not before us.
If it is a new contract based upon all the
terms and conditions of the policy, as seems
to be the settled law, it may be that the
insurance company, by the substitution of a
new owner for the old one, makes the policy
good to the new owner for the entire period,
which would be nothing more than an agree-
ment to insure the new owner for the en-
tire period covered by the policy, or at least
from the time it was assigned to him, and
that the company has a right to antedate Its
policy was settled in Hallock v. Insurance
Ck>., 26 N. J. Law, 268. But no such ques-
tion is raised in this case, for all of the re-
quests, the refusal to comply with which is
the only ground of error alleged, are based
upon the claim that, the policy being original-
ly void, the indorsement to the new owner
was not a waiver of alleged breaches, be-
cause the policy itself was void, and if, as
I think, the policy was not void because it
was an insurance of respective interests, one
of which was Insurable, then the requests
were l>ased upon a false assumption of law
and were properly refused.
The Judgment should be affirmed.
(W N. J. lAW, 7»)
SPROTTE V. DELAWARE, I* & W. R. 00.
(Court of Errors and Appeals of New Jersey.
June 18, 1917.)
L Carriebs «=>52(2)— Bux of Ladino— Coir-
nmoN OF Goooa
In an action ajrainst a carrier for damages
to Koods by breakaKe, acknowledgment in bill of
lading that the goods mentioned therein were in
apparent good order, is sufficient prima facie
proof of that fact, where their condition could be
ascertained by mere inspection, and the clansa,
"contents and condition of contents of packages
unknown," is not applicable.
[Ed. Note.— For other cases, see Carriers,
Cent. Dig. §S 109, 152-161.]
2. Casbiebs <s=>52(2)— Bill of Lading— Cor-
DinoN or Goods.
In an action against a carrier for damages
to goods, where claim is for scratches to furni-
ture, whose condition at time bill of lading was
issued was concealed, other proof of good order
than mere acknowledgment in bill of lading is
necessary.
[Ed. Note.— -For other cases, see Carriers,
Cent. Dig. ${ 109, 152-161.]
Appeal from Supreme Court
Action by George Sprotte against the Dela-
ware, Lackawanna & Western Railway Com-
pany. BYom a Judgment of the Supreme
Court, affirming a Judgment of the district
court for plaintiff, defendant appeals. Af-
firmed.
The per curiam opinion of the Supreme
Court is as follows:
The plaintiff employed a shipping company in
Los Angeles to ship a carload of furniture from
that point to Dover, N. J. When the goods ar-
rived in New York, they were forward^ by the
shipping company to Dover over the defend-
ant's line, and some of the goods were damaged
when they arrived.
The defendant issued a waybill in which it
was stated that the property was in apparent
§ood order, except as noted (contents and con-
ition of packages unknown). The list contain-
ed specific items, some of which were boxes.
There was a stipulation that, if defendant 'was
found liable, the damages were to be asseecied
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BBERIiIKO T. MUTILLOD
619
■t $169.05, and this sum the district oourt
found. Under the record all we have to deal
with is the liability of the defendant between
New Torlc and Dover. The defendant claims
that the court should have granted its motions
for a nonsuit, or directed a verdict for the de-
fendant, because there was no proof that the
goods were damaged while in defendant's posses-
sion, beyond that the waybill certified that they
were received in apparent good order in N£w
Tork, and the fact that they were received in a
iamaged condition at Dover.
Such a recital in a bill of lading is prima facie
evidence of the fact that the goods were in ap-
parently good condition when received, and,
while the common carrier may show the con-
trary, the burden is on it. No attempt was
made in this case to show that the goods were
not in good condition when delivered to the de-
fendant, and where a carrier receives freight in
good condition, and it is found in its possession
damaged at point of destination, negligence wiU
be presumed, unless removed by explanation.
The next point is that it was error to admit
the contract with the Los Angeles Moving Com-
pany, the initial shipping company. This did
not injure the defendant, and, if error, was
harmless.
The next objection is refusal to allow defend-
ant's train conductor to testify that nothing un-
usual happened to the car between New York
and Dover. This was immaterial, for, if he so
testified, which is the best defendant could ex-
pect, it would prove nothing, for the goods were
in a closed car, and it was not pretended that
anything happened to the car.
As we find no error in this record, the judg-
ment will be affirmed, vrith costs.
Frederic B. Scott, of New Tork aty, for
appellant. King & Vogt, of Morrlstown, for
appellee.
SWAYZB, J. [1, 2] The facts are stated In
the menjorandtim of the Supreme Court We
agree that the bill of lading was sufficient
prima facie proof that the goods mentioned
therein were In apparent good order, so far as
their good order could be apparent. Ontils
applies to the greater part of the goods and of
the damages claimed. Most of the goods were
of such a character that it could be ascer-
tained by mere Inspection whether they were
In sound condition, and most of the damages
were due to breakage. To such goods, where
the claim is for obvious injury, the clause
"contents and condition of contents of pack-
ages unknown" is not applicable. Where
the claim was for scratches and similar In-
juries to furniture, and the condition at the
time the bill of lading was issued was con-
cealed by burlap or other covering, there
could not be good order apparent in that
respect, and proof other than the mere ac-
knowledgment In the bill of lading would be
necessary. This difficulty Is particularly ap-
plicable In this case to the piano, which was
boxed. We should have difficulty with the
case, if the distinction had been made at the
trial, and the question properly raised. This
was not done. The plaintiff relied on the
bill of lading, as if Its terms were applicable
alike to all the articles named. The defend-
ant rdied on the clause as to contents and
condition of contents of packages, as if all
I the articles had been so {Kicked as to conceal
their real nature. The amount of damages
was stipulated. The error was the usual one
of attempting to apply general expressions,
without discriminating to particular cases.
We have nothing to add to what the Supreme
Court said as to the rulings on questions of
evidence.
We find no error of law pointed out in the
record, and the judgment must be affirmed,
with costa
(90 N. J. UtW, 4T8)
EBERUNO y. MUTIIXOD (two eases).
(Court of Errors and Appeals of New Jersey.
July 19, 1917.)
(Byttabut ly the Govrt.)
1. ANniAI.B ©S'GS— DOQS— LlABIUTT roB Ik-
JUBY.
The infant plaintiff, a boy of 16 years old,
testified that he had been in the business of d»-
livering newspapers on defendant's estate to
him and to his tenants for about a year, and
that on the day he was bitten by defendant's
dog he was going across defendant's lawn on the
regular route he had always taken, having en-
tered through a gate which was open, lleld
that, even if he were a trespasser on defendant's
premises, he was entitled to recover damages for
the injury resulting from the biting by the
dog, nnder the facts in this case, if it were own-
ed by the defendant (which was admitted), and
if defendant knew that the dog had previously
bitten other people, of which there was evidence,
and unless the plaintiff was guilty of contribu-
tory negligence, aside from the mere fact of
trespassing, and he was not, according to Us
own testimony.
[Ed. Note.— For other cases, see Animals.
Cent. Dig. §§ 225, 226.]
2. AiTiiiALs €=»71 — Acnoits— Defenses.
The mere fact of trespassing upon the
grounds of another is not, in and of itself, con-
tributory negligence, which will defeat an ac-
tion to recover damages for injuries inflicted by
a vicious animal belonging to defendant and al-
lowed to be at large upon the premises.
[Ed. Note. — For other cases, see Animals.
Cent. Dig. §§ 238-241.]
3. Animals <g=>74(8) — Pbbsonal Injuries —
JrRY Question.
The question whether a person entering up-
on the grounds of another without invitation or
license, and then and there injured by an at-
tack by a vicious animal of the owner, allowed
to be at large upon the premises, exercises the
degree of care which reasonable and prudent
persons would use under like circumstances, ia
a jury question.
[Ed. Note.— For other cases, see Animals,
Cent. Dig. § 273.]
Appeal from Circuit Court, Hudson
County.
Actions by Emil Eberllng, by Rudolph
Eberllng, his next friend, and by Budolph
Eberllng, against Marlus Mutlllod. From
judgments for the several plaintiffs, defend-
ant appeals. Affirmed.
Frederick K. Hopkins, of Hoboken, for ap-
pellant. Harlan Besson, of Hoboken, for op-
pellees.
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101 ATLANTIC REPORTER
(N.J.
WALKER, Ch. These eases arose out of
Injuries resulting to a boy from beliig bitten
by a dog. They were tried together before
a Jury, and were argued together here. In
the first action, the plaintiff, Emll Eberllng,
a minor, sued by his father as next friend,
and in the other action the father sued for
himself. In March, 1915, the plaintiff, Emll
Eberllng, was employed In delivering news-
papers, afternoons. He was a boy 16 years
old. Two verdicts were rendered, one for the
boy of $400, and one for his father for $23.50,
against the defendant, Marlus MutlUod, la
the Hudson county circuit court, by a Jury,
and Judgments were thereupon entered. The
defendant has appealed to this court
The plaintiff, Emll Eberllng, was a news-
boy living in the borough of Secaucus with
his father, from whom he had not been eman-
cipated. The defendant, Marlus MutlUod,
was a florist, owning an estate In the bor-
ough of Secaucus, Hudson county. He was
the owner of a large St. Bernard dc«, which
he permitted to run at large on his proper-
ty. It was established that bis dog bad at-
tacked a man named Fred Montigel, when
the defendant, its owner, was present, some
time before, and ruined a pair of trousers,
for which the defendant paid. There was al-
so testimony that the dog had bitten another
man, who had told the owner of it It ap-
peared from the testimony that it was the
custom of the newsboy plaintiff to enter the
gate in the northern part of Mr. MuUllod's
property and cross the lawn to one of the
houses situate on his estate. On March 13,
1915, while delivering papers to Mr. Mutll-
lod's tenants, the boy was attacked by the
defendant's dog, which was roaming at large
upon the latter's estate. The dog bit the
boy several times in the hip. The bites were
severe, and he required the care of a doctor
for some time.
The defendant's land was only partially
inclosed by a fence, in which there were
large gates, which were open most of the
time, and in that situation the defendant's
dog was permitted by him to run at large
on the premises. The boy entered through an
open gate at the time he was bitten. Defend'
ant's coun.sel moved to nonsuit at the end of
plaintiff's case, and for a direction of a ver-
dict at the close of the testimony, both of
which motions were denied, and the cases
were submitted to the Jury, who found for
the plaintiffs, as stated. These are the only
grounds of appeal.
It is perfectly obvious that the defendant
appellant is not entitled to a reversal of the
Judgments. The reason is that there was evi-
dence to support them, and this court will
not review the findings of fact In a court
below, beyond ascertaining that there was
evidence to support such findings. Lamed v.
MacCarthy, 85 N. J. Law, 589, 90 Atl. 272.
The plaintiffs, under the facts in this case,
were entitled to go to a Jury if they showed
(1) that tbe defendant owned the dog; (2)
if the boy was bitten by the dog and injured;
(3) if the defendant knew that the dog bad
previously bitten other people. There was
testimony establishing defendant's liability
and tbe plaintiff's right to recover on all of
these grounds. Ownership of the dog was
admitted by defendant
Counsel for appellant relies upon De Gray
V. Murray, 69 N. J. Law, 458, 55 Atl. 23T;
but In our Judgment the doctrine in that case
is not applicable to tbe one at bar. It was
there held that the owner of a vicious dog
Will not be liable for injury Inflicted by It
tf it escapes from control, where the owner
has exercised a degree of care commensurate
with the danger to others which would fol-
low from such an escape. That is not this
case. The owner here failed to control the
dog. He appears to have regarded it or at
least to have treated it as being docile, and
not vicious.
[1-3] The api>eUant contends that tbe in-
fant plaintiff was not upon his premises by
invitation or license, but as a trespasser, and
that therefore he is not liable to respond in
damages for the injury to the boy inflicted
by the biting by the dog. The doctrine of
invitation and license need not be considered,
for recovery was properly had even if the
boy were a trespasser. The doctrine is that
in an action for injuries caused by an at-
tack by a vicious animal kept by a person on
his premises, the mere fact that the injur-
ed person was a trespasser at the time will
not, as matter of law, defeat tbe action. A
leading case on this subject is that of Marble
V. Ross, 124 Mass. 44. There was evidence
tending to show that the plaintiffs' intestate
received his injuries in the defendant's pas-
ture, where be was at the time a trespasser,
and that when he went upon the premises,
he knew there was a stag there, and under-
stood that it was vicious. It was not con-
tended that the defendant placed tbe stag in
the pasture for the purpose of keeping off
trespassers, or of having the stag frighten or
Injure any one. Morton, J., said, at page 48:
"In the ease at bar, it appeared that the de-
fendant knowingly kept a vicious and daQgei^
CUB stag in a large pasture, and the plaintiffs'
intestate, while in the pasture, was attached
Olid injured by it. Tbe defendant requested the
court to rule Uiat, if the plaintiffs' intestate was
a trespasser in the pasture, they could not re-
cover. We are of opinion that the court right-
ly refused this ruling. The mere fact that the
intestate was upon tbe defendant's land without
his consent would not defeat the right of ac-
tion. _ The unlawful character of his act did not
contribute to his injury or affect the defcndant'a
negligence. • • • The fact therefore, that
the intestate was committing an unlawful act
at the time of his injury, would not prevent bis
recovery. Nor does the fact that this unlawful
act was a trespass upon the defendant's land
necessarily have this effect. It is true that, as
a general rule, a trespasser who is injured by
a pit or dangerous place upon the land of an-
other, exca%'ated or permitted for a lawful pur-
pose, cannot recover damages therefor, because
the owner of the land owes no duty to him, and
therefore is not negligent as to him; but it is
dear that the owner of land cannot wantonly
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ROWLAND V. NEW YORK STABLE MANURE CO.
621
injure a trespasser. If he does, he is liable chil-
ly as well as criminally. The law holds the
keeper of an animal linown to be dangerous,
which injures another, to the same degree of
responsibility as in cases of wanton injury, and
the fact that the person injured is trespassing
does not exonerate such owner from the conse-
quences of his negligence."
And at page 49:
"If Marble voluntarily and negligently put
himself in a position which was likely to result
in injury, and the injury happened, his negli-
gence is a contributing cause, and he could not
recover. The fact of his kiDowledge that the
stag was in the pasture and was dangerous would
be important evidence tending to show negli-
gence; but we cannot say, as matter of law, that
it would conclusively prove it. This might de-
pend upon the size of the pasture, the position
of the stag in it, and other circumstances which
are proper for the consideration of the jury.
The test is whether the plaintiffs' intestate, m
entering the pasture, exercised that degree of
care which reasonable and prudent men use un-
der like circumstances. Tliis is a question of
fact for the jury upon all the evidence."
We think that Marble t. Ross well states
the law of the case under consideration. The
boy had gone on defendant's estate every
day for a year to deliver his pwpers, and at
the time he was attacked by the dog he was
on the regular route he had always taken.
He was not guilty of any contributory negli-
gence. If he is to be believed when he says
that he did nothing to ezdte the dog, which
be did not see until it was about five feet
away from him. He had only seen the dog
once before, and, although some one had told
him that it would bite, the tenants said he
should not be scared, because it would not
bite or do anything like that.
In no aspect of the cases at bar can it be
said as matter of law that the defendant was
not liable. The cases were properly submit-
ted to the Jury, and the Judgments entered
upon the yerdicts must be affirmed, with
costs.
(88 N. J. Bq. 168)
BOWLAND et al. ▼. NEW XORK STABLE
MANURE OO. (No. 42/192.)
(Court of Chanceiy of New Jersey. July 12,
1917.)
1. NinsAKOB «=33(3) — Public NmsANOE —
OmrNBiTX Odobs— Manube Piles.
Storing of manure gathered from city sta-
bles in New York and other cities from abont
May lit until the latter part of September, dur-
ing which time approximately 40,000 tons are
accumulated, emitting foul, Inauseating, and
sickening odors, corrupting the air, and pene-
trating the liomes of complainants, living with-
in a radius of a mile, is a nuisance.
[EJd. Note.— For other cases, see Nuisance,
(3ent. Dig. gS 2&-25.]
2. X<4)T7ITT 9=>148(2)-^OINSEB OF CAUSES Or
Action— MuLTiFABionsNEBS.
In a bill to abate a nuisance, doe to the
maintenance of manure piles, the causes of ac-
tion for injury by defiling tiie air and by pol-
lution of water were properly joined under
Act March 30, 1915 (P. L. p. 184) §g 24, 25,
allowing the joinder of separate causes of ac-,
tions arising oat of the same transaction, or se-
ries of transactions.
[Ed. Note.— For other cases, see E^luity, Cent.
Dig. §; 345, 354-357.]
3. Nuisance $=>21— Abatement— Conditions
Precedent.
Complainants could maintain a bill to abate
a nuisance created by storing manure in large
quantities, without showing that application had
been made to tlie local board of health to take
proceedings, and that the board had without
just cause refused to do so.
[Ed. Note.— For other cases, see Nnisanesk
Cent Dig. H 55-59.]
4. Nuisance ^s»2$>— Laches— Evidence.
That complainants for eight years endared
the stench from defendant's manure stora^
plant would not constitute laches, barring their
bill; every day's continuance being a new nui-
sance.
[Ed. Note.— For other cases, see Nuisance,
Cent. Dig. { 68.]
5. Nuisance <g=>23(3)— E<jurrT— Jubibdiotion
. IN PiBST Instance.
Where the damage is substantial, a court of
equity will in the first instance determine the
question of nuisance, and grant relief.
[Ed. Note.— For other cases, see Nuisance,
Cent. Dig. { 58.]
6. Nuisance (S925(1) — Acquiescence — Els-
lOPPEL.
Defendant's outlay in purchasing and pre-
paring its land for storing manure was without
the implied consent of complainants, and does
not estop them from maintaining this bill.
[Ed. Note. — For other cases, see Nuisance.
Cent. Dig. {§ 60-63.] "««.«»,
7. Nuisance <8=»25(2)— Injunction— Result-
in o Dauaoe to Defendant.
Where a nuisance is clearly established,
and it appears that it is causing material ir-
reparable injury to complainants, they are enti-
tled to injunction, irrespective of resulting dam-
age to defendant
[Ed. Note.— For other cases, see Nuisance,
Cent. Dig. { 6.]
Bill betweoi William J. Rowland and oth-
ers and the New York Stable Manure C!om-
pany to abate a nuisance. Granted.
John P. Kirkpatrlck and Russell B. Wat-
son, both of New Brunswick, for complain-
ants. Edgar W. Hunt, of Lambertville, and
Spencer Weart and Edward H. Hoos, both of
Jersey City, for defendant
BACKES, V. C. This Is a bill to abate a
nuisance to habitations, caused by offensive
odors arising from manure pUes. The de-
fendant's business is that of gathering horse
manure from stables in New York, Brooklyn,
and Jersey City, and shipping It direct to
farmers and dealers in fertilizers, except dur-
ing the crop-growing season, when the collec-
tions are stored at the defendant's plant on
the Rocky Hill branch of the Pennsylvania
Railroad near Monmouth Junction. Storing
begins about May 1st, and continues untU the
latter part of September, when reshipments
commence, lasting until the end of the year.
On an average, 20 carloads of manure, of 25
to 30 tons each, are received daily ; the an-
nual accumulations approximating 40,000
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tona. The cars are nnloaded by cranes and
dredges, and the manure is stacked in ricks
20 feet high, about 1,000 feet long, and from
30 to 50 feet In width. To keep the manure
from burning— the animal heat Is so Intense
as to be physically unendurable — requires
soaking with water for a period of three
weeks. The water Is drawn from what Is
called the "Black Pool," which Is replenished
by the drainage from the manure ricks. A
shrinkage In weight of about 25 per cent re-
sults, doubtless, from drainage and evapora-
tion. The complainants allege that these
manure piles and the Black Pool emit foul,
nauseating, and sickening odors, corrupting
the air and penetrating their homes, greatly
to their Inconvenience and discomfort.
The principles of law applicable to this
kind of nuisance have been so often reiterated
that I pause before restating Chancellor Zab-
rlskie's pertinent declarations in Cleveland v.
Citizens' Gaslight Co., 20 N. J. Eq. 201:
"Any business, however lawful, which causes
annoyances that materially interfere with the
ordinary comfort, physically, of human exist-
ence, is a nuisance that should be restrained;
and smoke, noise, and bad odors, even when not
injurious to health, may render a dwelling so
nncomfortable as to drive from it any one not
compelled by poverty to remain. Unpleasant
odors, from the very constitution of our nature,
render us uncomfortable, and, when continued
or repeated, make life uncomfortable. To live
comfortably is the chief and most reasonable
object of men in acquiring property as the
means of attaining it; and any interference
with oar neighbor In the comfortable enjoyment
ot life is a wrong which the law will redress.
The only question is: What amounts to that
discomfort from which the law will protect?"
[1] The complainants, ten in number (four
were admitted during the course of the trial)
and their witnesses, reside within a radius
of a mile or so of the defendant's plant, in
different directions, encircling It, and th^r
evidence (of a score and more) leaves not the
shadow of a doubt that tbey suffered much
annoyance and misery from these offensive
and disturbing smells. It would be Impracti-
cable here, and it would serve no practicable
purpose, to recount their testlmcmy. Their
definitions and characterizations of the 111-
smelUng odors vary with the witnesses' power
of description; as one of the witnesses tersely
put It, "it is hard to describe a bad smell."
A summary of their experiences and the ef-
fects and results of the smells, by which,
after all, the question of nuisance Is to be
determined, is that, whenever the wind blew
towards them from the direction of the ma-
nure heaps, the atmosphere was so laden with
the malodor as to cause nausea, headache,
and vomiting, to cause them to forego their
meals altogether, or to leave them unfinished,
to seek shelter In their homes with the doors
and windows tightly closed, to at nighttime
suddenly awaken them from sound slumber,
and to deprive them of sleep, or compel thom
to seek sleep with the windows down and
doors shut. (Children were driven into their
bopses from play, and members of families
from their porches and lawns. All of these
things did not, of course, happen to all of
the witnesses, but nearly all of tbem to some,
and some to all or members of th^r families,
In tbelr turn, or in groups, as the winds fa-
vored during the hot summer months; and
especially were they affected during sidtry,
damp, and foggy periods, when the vapors
could be seen arising from the storage grounds
and wafted towards their homes. The efflu-
vium was constant, the infiictlons intermittent
and recurrent, as the air currents shifted. The
testimony of the complainants as to this state
of affairs is supported by some of the wit-
nesses called by the defendant, and Is not
overcome by others, who testified that the
odors smelled like stable manure and that
they were not distressed. I am ready to be-
lieve that the smell was like that of stable
manure; but stable manure plus noisome
gases and vapors generated by these enor-
mous heaps of dung, during the cooling pro-
cess. It requires no proof to satisfy me of
the great difference in volume and pungency
of odors emitted by ordinary barnyard ma-
nure piles, and those that come from Immense
deposits, such as the defendant stores; for
I need only recall the stifling and overpower-
ing stenches that came from the horse stable
manure stored in large quantities on the
Newark meadows some years ago, and I be-
lieve by this very defendant company, and
bow we were obliged to close car windows
and doors, and stop breathing, while traveling
by ; and. Indeed, we experience the same dis-
agreeable sensations in our present dally
travel, when passing long trains freighted
with this animal excrement The evidence
makes out a clear case of nuisance to the
complainants in the comfortable enjoyment
of their homes — denounced by Judges aJid
text-writers as among the worst class of
nuisances — and of a type similar to many
reported in our books, which this court srup-
pressed. Ross v. Butler, 19 N. J. Eq. 291, 97
Am. Dec 654; Cleveland v. Citizens' Qas-
ligbt Co., supra; Meigs t. Lister, 23 N. 3.
Eq. 199; Pennsylvania R. R, ▼. Angd, 41 N.
J. Eiq. 316, 7 Atl. 432, 56 Am. Rep. 1; Raasch
V. Glazer, 74 AU. 39; Laird v. AtlaaUc
Coast Sanitary Co., 73 N. J. Eq. 49, 67 Atl.
liSl; Kroecker v. Camden Coke (3o., S2 N.
J. Eq. 373, 88 Atl. 955.
The nuisance determined, I will take np,
In the order submitted by the defendants'
counsel oo the argument and In the briefs,
the various objections to granting complain-
ants relief.
[2] Before answer filed, a motion was made
to strike out the bill as amended, on tbe
ground of multifariousness. The gravamen
of the bill, as originally drawn, was nuisance
to habitation by defiling the air, and by the
amendment an additional injury to one of tlie
complainants was alleged by reason of the
|)ollutlon, from the "Black Pool," of a natural
stream running through his property. De-
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BOWLAND y. NKW TOUK STABI^ MANCBE CX>.
523
cisloD was reserved ontll final bearing, with
the understanding that, if it went against the
complainants, the amendment was to be with-
drawn and an Independent bill filed, with the
farther stipulation that testimony was to
be taken on both branches of the case and
used in the second suit, if one became neces-
sary. Dnder the former practice, the Join-
ing of these causes of action would have been
improper (Davidson t. Isham, 9 N. J. S]q.
1S6; Morris & E^sex Railroad Co. t. Prud-
den, 20 N. J. Eq. 530), and would not have
been permitted under the rule of this court
promulgated by Chancellor Zabrlskie at the
March term, 1869. Bowbotham v. Jones, 47
N. J. Eq. 837, 20 Atl. 731, 19 L.. B. A 663.
But, by the supplement to "An act respecting
the Court of Chancery" (P. L. 1915, p. 184),
the joinder is now allowed. Sections 24 and
25 of subdivision 3 of paragraph "Schedule
A" provide:
"24. Separate Ooutet of Action.— Penona in-
terested in separate causes of action may join
as complainants or be joined as defendants, re-
spectively, if the cansea of action have a com-
mon question of law or fact, and arose oat of
the same transaction or series of transactionB.
"25. 'Tramactiont.'— The transactions refer-
red to in the preceding section include any
transaction which grew out of the snbject-matter
in regard to which the controversy has arisen."
This remedial provision, which has for Its
object the simplification of chancery proce-
dure, by uniting In one suit all manner of
complaint growing out of the same subject-
matter, ought to receive most liberal judicial
construction. The causes of action joined in
this bill — the corruption of the atmosphere
and the poUutlon of water— arose out of the
same transaction, viz., the defendant's main-
tenance of its manure storage ground, to
which the same fundamental principles of
law are applicable, generally; and, while
proof of one offense does not establish the
other, the two causes of complaint are so
closdy allied in connection with the subject-
matter of the controversy as to, for all prac-
tical purposes, embody a common question
of ftict within the letter and spirit of the
legislation. Either a common question of
law or a common question of fact warrants
a joinder; and the use of the disjunctive
particle is an indication of the broad sweep
of the legislative intent, along with the
trend of the times, towards econcnny of
time, labor, and costs of litigation.
[3] By plea, the defendant challenges the
complainants' right to maintain this suit
without first showing that application had
been made to the local board of health to
take proceedings, and that ' the board had,
without Just cause, neglected or refused to
do so. The police power of the state or lo-
cal boards of health to abate nuisances, and
to apply to this court to enjoin them. Is
Ilxnlted by the statute to those "hazardous"
or 'Injurious to public health." 2 C. 8. 2652.
Tbe bill in this case does not charge that
tbe odors are noxious, unwholesome, or hurt-
ful to health, but alleges merely that they
are of a character so offensive and disagree-
able as to make life uncomfortable, thus
stating a case over which the health bodies
have no jurisdiction. State ex rel. Board of
Health v. Neidt, 19 AtL 318; State v. Free-
holders of Bergen, 46 N. J. Eq. 173, 18 Aa
465; Board of Health v. Lederer, 62 N. J.
Eq. 675, 29 Atl. 444. But, If the case were
one of a distinct and special Injury, af-
fecting the enjoyment of property, arising
out of a public nuisance, the injured party
would be entitled to redress, without first
Invoking or resorting to the means created
by law for the suppression of public offenses.
Bqulty sometimes will decline, or with re-
luctance entertain. Jurisdiction to abate a
public nuisance at the instance of an In-
dividual suffering an injury distinct from
that of the public, where the remedy at
law is adequate and efficacious (Morris &
ESssez Bailroad Co. v. Prudden, supra), or
where the Legislature has established Insti-
tutlons with power of speedy and economi-
cal redress, as, for example, the Public Util-
ity Commission; but this inclination does
not extend to subordinating a right of pri-
vate redress to a co-ordinate remedy in the
public.
[4, S] The defendant further sets up in its
answer that it and its predecessor in title
carried on business in the same manner at
Monmouth Junction continuously for the past
eight years, and that "the complainants are
in laches, and are therefore debarred from
maintaining this suit, unless and until they
shall have first established in ordinary pro-
ceedings at law the fact that this defendant
Is guilty of maintaining upon its premises
an actionable nuisance." I know of no rule,
and no authority has been brought to my
attention, to sustain the proposition that
equity will not grant relief from a constant
or recurring nuisance, because of the laches
of the complainants, until the question of
nuisance is settled by the verdict of a jury.
Where tbe right or title of the complain-
ant is not disputed, or is apparent, and the
fact of tbe Injury has been clearly made out
by the evidence, and the damage is sub-
stantial, a court of equity will in the first
Instance determine the question of nuisance
and grant relief. Carlisle v. Cooiter, 18 N. J.
Eq. 241; b. c 21 N. J. Eq. 576; Duncan v.
Hayes, 22 N. J. Eq. 25; Stanford v. ligon,
37 N. J. Eq. 94. In Biggins v. Flemlngton
Water Co., 36 N. J. Eq. 638, Chief Jus-
tice Beasley said:
"After a court of equity has entertained a
bill, and, instead of sending tbe cas^e to a trial
at law, has itself tried the questions of fact
involved, and settled the legal riglit in favor
of the complainant, it certainly would be a
result much to be deprecated if, at such a stage
of tlie controversy, it was the law that the
cliancellor were required to say to such a com-
plainant, 'Tour right is clear; if you sue at
law you must inevitably recover, and after sev-
eral such recoveries it then will be the duty of
this court, on the ground of avoiding a multi-
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101 ATIiANTIC REPORTEE
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plicity of suits, to enjoin tiie continuance of
this nuisance: still you must go through the
form of bringins such suits before this court of
equity can or will interfere.' In those cases in
which, to the mind of the chancellor, the right
of the complainant is clear, and the damage
sustained by him is substantial, so that his
right to recover damages at law is indisputable,
and the chancellor has considered and establish-
ed his right, I think it not possible that any
authority can be produced which sustains the
doctrine contended for by the counsel of the de-
fendant"
Where the nnlsance Is erected and com-
pleted, and there la no pressing necessity
for intervention, or where on the question of
nuisance the evidence is in sharp conflict
and doubt exists, a verdict of a Jury must be
had before equity will aid. Attorney Gen-
eral V. Heishon, 18 N. J. Bq. 410; Tuttle Y.
Church (C. O.) 53 Fed. 422; Elizabeth v.
GUchrlst, 86 Atl. 635. The Chancellor may,
in his discretion, decline to hear and de-
termine a close question of fact of nuisance,
and may frame an issue for a Jury, to in-
form "the conscience of the court." Bassett
V. Johnson, 3 N. J. Eq. 417; Fisler v. Pordi,
10 N. 3. Eq. 243; Trenton Banking Co. v.
Woodruff, 2 N. J. Eq. 117; Newark & N. Y.
Railroad Co. v. Mayor of Newark, 23 N. J.
Eq. 515; Carlisle v. Cooper, supra.
[6] Upon the argument, and In the briefs
<rf counsel, they raise the question of laches
as a bar In its broader aspect. I do not see
bow the complainants con be charged with
sleeping upon their rights, so as to deprive
them of relief. It would be most inconsider-
ate to hold that, having, for the past eight
years, lived in a filthy atmosphere, inhaling
and enduring the stench from the defendant's
business, without complaint, they must pa-
tiently submit to further discomfort, and as
long as the defendant sees fit to Impose upon
them. Every day's continuance is a new or
fresh nuisance. Board of Health v. Lederer,
supra; Society v. Low, 17 N. J. Bq. 19; Car-
lisle V. Cooper, supra; Brady v. Weeks, 8
Barb. (N. Y.) IST; Wood's Nuisances, I 18,
footnote cases. Nor are the complainants
equitably esto^ed by acquiescence. The de-
fendant's outlay in the purchase and prepa-
ration of Its land, for tlte purpose of car-
tying on an offensive trade, was not with the
Implied consent of the complainants; and.
If it had been, they rightfully would have re-
frained from taking action in the expectation
that the business could be carried on so as
not to barm them. The expenditure of about
$20,000 by the Pennsylvania Railroad Com-
pany In laying additional trackage and build-
ing a railroad scale on its own right of way
to accommodate itself to the trade of the
defendant, which Is dwelt upon by counsel
as a feature in the element of estoppel, can
be of no possible concern.
The defendant puts forth considerable ef-
fort to cast the blame for the complainants'
anno.vance upon a nearby manure storage
plant belonging to one McOirr, and also upon
loaded manure cars standing on sidings of
the Pennsylvania Railroad at Monmouth Juno*
tlon; but the evidence points unmistakably
to the defendant as the prime and principal
offender. Witnesses have traced the odors
by the sense of smell, and the gases and
vapors by the eye, directly to the defendant's
storage plant, and also located their origin
by the direction of the wind. The McGIrr
plant is small, and may have, to some ex-
tent, contributed to the nuisance of which
the defendant Is guilty, and so perhaps the
railroad company; but either or both nei-
ther Justify nor excuse the defendant. Meigs
V. Uster, supra.
[7] The defendant appeals to the court's
discretion to withhold relief, for the reason
that to grant an Injunction would do more
harm than a denial would to the complain-
ants. The doctrine of "weighing the In-
conveniences," It is argued, ought to be ap-
plied, because the Injury to the complainants
Is comparatively small when contrasted with
the annual loss to the defendant's farmer
customers of 38,000 tons of horse stable
manure, "enough to fertilize heavily 8,800
acres of land, which would produce, on an
average good crop, 760,000 bushels of pota-
toes," and the consequent loss to the public
at large of this great and valuable amount
of foodstuff, and the eventual destruction of
the defendant's entire business because of
Its Inability, for failure of a market for Its
commodity or a place to put it during the
summer season, to comply with the d^ sta-
ble owner's demands to be rid of his stable
manure daily the year round, not to speak of
the defendant's loss of profits. A similar ap-
peal in behalf of the public was swept aside
by Chief Justice Beasley in the Hlggtns Case,
wherein be quoted Lord Cranworth in
Broadbent v. Imperial Qas Company, 7 De
G., M. & G., 486:
"If It should turn out that this company had
no right so to manufacture gas as to damage the
plaintiS's market garden, I have oome to the
couclusion that I cannot enter into any question
of how far it might be convenient for uio pub-
lic that the gas manufacture should go ou.
* * * But, unless the company had such a
riijiht, I think the i>resent is not a case in which
this court can go into the question of conveni-
ence or inconvenience, and say, where a party
is substantially damaged, that he is only to be
compensated by bringing an action toties
quoties. That would be a disgraceful state of
the law, and I quite agree with the Vice Chan-
cellor in holding that in such a case this court
must issue an injunction, whatever may be the
consequences with regard to the lighting of the
piirishes and districts which this company sup-
plies with gas."
The discretion exercised by courts of
equity In refusing injunctions on the ground
of greater injury to the defendant la proper-
ly restricted to applications pendente lite.
Tlchenor v. Wilson, 8 N. J. Bq. 197; Hlg-
glns V. Water Co., supra; Simmons v. Pater-
son, 60 N. J. £>]. 385, 45 Atl. 995, 48 L R. A.
717, 83 Am. St Rep. 642. But, on final hear-
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HILL V. CARB
626
tng, if the nuisance Is clearly established,
and It appears that it is causing substantial,
material, and irreparable injury to the com-
plainant, for which there is no adequate
remedy at law, the law is settled in this
state, and by the great weight of authority
In other Jurisdictions, that the complainant
Is entitled to relief by injunction, Irrespec-
tive of the resulting damage to the defend-
ant. Hlgglns V. Water Co., supra ; Hennessy
V. Carmony, 50 N. J. Bq. 616, 25 Atl. 374;
Campbell v. Seaman, 63 N. T. 568, 20 Am.
Uep. 567; SuUivan v. Jones Steel Co., 208
Pa. 540, 57 AU. 1065, 66 U R. A. 712. The
cases on the subject of comparative injury
are collected in the footnote to Bristol r.
Palmer, 31 L. B. A. (N. S.) 881, and supple-
mental notes in U R. A. 19160, 1268. The
principle was upheld in Simmons v. Pater-
son, but the Court of E)rrors and Ai^eals
found itself Justified in withholding injunc-
tlve relief, "in view of such acquiescence and
the magnitude of the injury which would fall
upon the public by prohibltiog the use of tlie
sewers," and held that a substitute remedy of
adequate compensation would be a Just dis-
position of the controversy. The nuisance
complained of was the pollution of the Pas-
saic river through the defendant's sewer sys-
tem, built at an enormous expense under
legislative authority, and which liad existed
for many years. The equities that stayed the
court's hands were acquiescence and impend-
ing peril to health and life.
The defendant relies upon what was said
toy Vice Chancellor Pitney in Hennessy v.
Oarmony, supra, as furnishing a distinction
between the right to an injunction where
the act complained of is a trespass to real
-estate and where the injury is created by
noisome and disagreeable odors interfering
with the comfortable enjoyment of habita-
tion. The opinion does not show that the
Vice Chancellor differentiated the remedy.
Reilley v. Cnrley, 75 N. J. Bq. 57, 71 AU. 700,
138 Am. St. Rep. 510. Pure air and the com-
fortable enjoyment of property are as much
rishts belonging to it as the right of posses-
sion and occupancy. Fertilizing Co. v. Hyde
Park, 97 U. S. 659, 24 l>. Ed. 1036.
During the course of the trial, counsel for
the defendant admitted that there was no
method of treatment nor any contrivance by
wbich the nuisance could be overcome, and
that there was no remedy short of a removal
of tlie cause. An injunction will therefore is-
sue, restraining the defendant from storing
manure on its premises after the 1st day of
April, 1018. The time is tlius extended to
enable the defendant to carry on its business
during tlie present summer, and to seek an-
other location, if one can be found. This
will not be burdensome to the complainants,
in view of their toleration for the past eight
years, and is equitable to both parties. The
complainants are entitled to costs.
HILL V. CARB.
(78 N. H. 458)
(Supreme Court of New Hampshire. Merri-
mack. June 30, 1917.)
1. Work and Labob ®=>4(2)— Iupued Con-
tracts.
Fi-om the acceptance of service rendered the
law implies a promise to pay what the service
was worth.
[Kd. Note.— For other cases, see Woiii and
LBl>or, Cent Dig. { 4.)
2. Contracts ®=»175(2) — Conbtbuctioh —
"Home."
In determining tlie meaning of an oral ex-
ecuted contract that one aince^ deceased should
"have her home" with plaintiff, the evidence
competent is as to the situation of the parties,
the amount of consideration paid, the age of
the one to be cared for, and the practical coa-
stniction given by the parties.
[EM. Note. — For other cases, see Contracts,
Cent Dig. §§ 766, 1068, 1786, 1803, 1810.
For other definitions, see Words and Phrases,
nrst and Second Series, Home.]
3. contsacts ®=»232(1) — constrtjonon —
Elements.
Conceding a contract for a home for life to
liave been made for a stated consideration,
plaintiff could recover for special nursing and
care rendered necessary by a disease which de-
veloped long after the making of the contract.
[B3d. Note. — For other cases, see Contracts,
Cent Dig. §{ 1071, 1073-1075%, 1078-1086.]
4. Trial iSs32S5(12)— Nkcessitt or Rxqtjbst-
ING Instructions.
In action on contract to pay for a home
furnished, where defendant claimed that the
consideration had been paid, but plaintiff de-
manded added payment for special services and
care rendered necessary by subsequent develop-
ment of a disease, it was defendant's duty to
ask instructions as to how much of the daim
was answered by the alleged contract.
[EM. Note.— For other cases, see TtAal, Cent
Dig. i 638.]
5. Trial «=»165— Dismissal and Nonsuit-
When Ordered.
A nonsuit is not ordered upon defendant's
evidence, for plaintiff is not obliged to yield to
the evidence, but is entitled to have it weighed
by the Jury.
[Ed. Note.— For other cases, see Trial, Cent
Dig. a 373, 374.]
6. Appeal and Error €=3853— Soofb of Bk-
viEW— Preservation of Exceptions..
An instruction that the jury could draw no
inference against plaintiff because she did not
testify, in the absence of exception, became the
law of the case, and was not open on appeal.
[Ed. Note.— For other cases, see Appeal and
Error, Cent Dig. H 1524, 3405.]
7. Appeal and Error €=3995— Scope or Bs-
VIEW.
The Supreme Court has no jurisdiction to
decide the c<«nparative weight of the evidence.
[Ed. Note.— For other cases, see Appeal and
Error, Cent Dig. § 3907.]
Exception from Superior Court, Merri-
mack Coimty ; Sawyer, Judge.
Assumpsit by Amelia H. Hill by Burt W.
Carr, executor of Hannah Carr, deceased.
On defendant's exception to denial of mo-
tion for directed verdict Eixceptlon over-
ruled.
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626
101 ATLANTIC REPORTER
CN.H.
Assumpsit to recover for board, room,
care, and special attention furnished the de-
fendant's testator, Hannah Carr, In her life-
time, according to the following spedflcatlou :
To board and room from June 16,
1002. to March 30, 1007, 250 weeks,
at $4 per week $1,000.00
To board, room, washing, mending,
nursing, and special v-are of Miss
Carr from March 30, 1007, to Feb-
ruary 10, 1912, 254 weeks, at |5 per
week rr. 1,270.00
To board, room, washing, mending,
nursing, and special care of Miss
Carr from February 10, 1012, to
February 10, 1014, 104 weeks, at $7
per week 728.00
$2,9oaoo
1902. Credit.
June 1& Credit by cash 1,000.00
$l,9e&00
Trial by Jury, with verdict for the plain-
tiff for the amount of the specification. There
was evidence the services for whlCh pay-
ment was claimed were rendered and that
they were of the value charged. At the dose
of the evidence the defendant's motion that
a verdict be directed for him was denied,
subject to exception. No other exceptions
are reported.
Harry J. Brown, of Concord, for plaintiff.
Streeter, Demond, Woodworth & Sulloway,
of Concord, for defendant
PARSONS, C. J. [1] From the acceptance
by the defendant's testatrix of the service
rendered her, the law implies a promise to
pay what the service .was worth. The fact of
service and its value are not contested, but
the defendant contends that the evidence con-
clusively establishes that all the services were
rendered under an express contract to fur-
nish them for a fixed sum paid in advance.
The only exception before the court is one
to the refusal of the court to order a verdict
tor the defendant at the conclusion of the
evidence. To sustain the exception, there-
fore, not only must the existence of the al-
leged contract conclusively appear, but It
must appear with equal conclusiveness that
all of the services claimed in the si>eciflca-
tion and proved were within the terms of the
contract There was no written evidence of
the alleged contract One of the parties be-
ing dead, there was no evidence from the
parties themselves as to the contract or its
terms. The evidence comes from the plain-
tiff's husband, who testified that the testa-
trix. Miss Carr, then a woman 82 years of
age "offered $1,000 to come and have a home
with us, and finally we talked it over and
concluded to let her come. • • • She
said she would give $1,000 to come and have
a home with us; there .was nothing said
about how long the home should be for, or
anything of the kind." Upon this statement
of the contract, conceding that the evidence
must be held to conclusively establish the
existence of such a contract, the question
arises : What did the parties understand to
be included in the term "home" which Miss
Carr was to have with the plaintiff?
Occasion for discussion of the meaning of
the word "home" has arisen in the construc-
tion of wills, in which a home is given to one
legatee at the expense of another. The word
has been construed to mean merely a place
of residence (Clough v. Clough, 71 N. H. 412,
416, 417, 62 Atl. 440; Gibson y. Taylor, 6
Gray [Mass.] 810; Shnttleworth v. Shuttle-
worth, 34 W. Va. 17, 22, 23, 11 S. B. 714;
Kennedy's Appeal, *81 Pa. 163; Nelson v.
Nelson, 19 Ohio, 283) ; and In other cases to
Include board and maintenance (Willett y.
Carroll, 13 Md. 459, 468); also necessary
food and fuel, but not clothing (Denfield,
Petr., 156 Mass. 266, 80 N. B. 1018), and to
include both lodging and sustenance, subject
to an obligation to render service (Day v.
Towns, 76 N. H. 200, 81 AtL 405; Lyon y.
Lyon, 65 N. T. 339). "It Is manifest that the
word 'home' has not such a fixed meaning
that It would accurately and precisely limit
an obligation like the one here in question.
Recourse may therefore be had to other evl- _
dence to ascertain the Intent of the parties." '
Day v. Towns, supra, 76 N. H. 201, 81 AtL
406.
[2] The question is: What did the parties
understand was to l>e furnished and received
under the term "home" as adopted in their
contract, if they made such a contract? The
evidence competent for consideration Is the
situation of the parties at the time, the
amount of the consideration paid, the age of
the person to whom it was to be furnished,
with her probable duration of life, if the
home was to be for life, and the practical
construction of the parties. "As It ia the
province of the Jury to weigh the testimony
of witnesses, and determine its effect, so it Is
competent for the court. In Its discretion,
where a contract is merely verbal, and there
is doubt as to the precise language used, or
as to the imderstandlng of the parties, to
leave it to the Jury to Judge what is proved,
and what language was used, and how It was
to be understood, subject to proper instruc-
tions as to the legal effect of such contract as
they may find to have been made." Folsom
y. Plumer, 48 N. H. 469, 472.
[3] The testatrix, Hannah Carr, was 82
years of age at the time it is alleged the con-
tract was made, and in good health for a per-
son of her age. She had other property,
l^ere was a special reason in the necessities
of the plaintiff for the payment of the lump
sum of $1,000 at the time. The testatrix
was furnished by the plaintiff with room and
board; but, becoming ill in 1010, and re-
quiring a nurse, the amount paid by the
plaintiff to the nurse was repaid by Hannah.
She had a doctor, but there Is no evidence
the plaintiff paid him. Later she became III
of a cancer, requiring special care and atten-
tion of a peculiarly disagreeable character.
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HILIj t. CABR
627
which the plaintiff furnished. From this
evidence It could be found that, eren If the
parties understood the furnishing a home to
include lK>ard and lodging, they also under-
stood it did not include the special nursing
and care rendered necessary by the disease
which developed long afterward. And, as
the service was rendered, the plaintiff, even
If the contract was made as the defendant
claims, could recover therefor. Hence to
have granted the defendant's motloa would
have been error.
[4] The defendant argues that the plaintiff
at the trial claimed to recover for all serv-
ices charged upon a quantum meruit, or
agreement to pay what they were reason-
ably worth, and that the position that a por-
tion of the services were not covered by the
contract set up by him cannot now be taken,
since no such position was taken at the trial.
The plaintiff claimed to recover for certain
services according to her specification. The
defendant claimed the evidence conclusively
proved a contract. In consideration of $1,000
paid, to perform all the service for which
payment was asked, and in reliance upon
that claim moved that a verdict be directed
for him. The motion was properly denied,
as the contract was not necessarily an answer
to all of the spedflcation. It was then the
defendant's, not the plaintUTs, duty to ask
for an instruction as to how much of the
specification was answered by the alleged
contract. The presumption is that such In-
structions as were proper were given.
In this case, however, although no excep-
tions were taken to the charge. It has been
rei>orted, and it appears the issue submitted
to the Jury was whether the services were
rendered under an agre^nent to pay what
was feasonable, with an advance payment of
$1,000 to enable the plaintiff then to pay
<^ a mortgage upon her home, or whether
the agreement was that the plaintiff should
care for the testator as long as she lived;
the $1,000 paid being full compensation there-
for. No exception was taken to the charge,
and the question whether there was evidence
authorizing recovery by the plaintiff upon
the issue submitted is not, as has been said,
raised by the exception taken. But this
question has been argued, and failure to con-
sider It might give a wrong impression. The
question, therefore, is discussed, although
technically not presented by the record. As
already suggested, it was for the Jury to find
wbat the contract was. The services and
their value were proved, from which the law
inaplies a promise to pay what the services
were worth. The defendant relies upon an
express promise by the plaintiff to render
tbe services withont further compensation
tban the $1,000 then paid. Whether the
plaintiff so promised is a question of fact.
The evidence tending to prove the promise
is the testimony of the husband before re-
cited, and the fact that Hannah paid the
$1,000, came to the plaintifTs home to live^
and remained there until about six months
before she died. There was also evidence
from two witnesses that the deceased, after
occupying the home for a long time, expressed
the feeling that she was living on charity,
because she had outlived all she had paid in.
The parties draw opposite inferences from
these statements ; but which Inference should
be drawn Is for the Jury to decide. Although
Hannah Carr left the plaintiff's home about
six months before her death, because a phys-
ical injury to the plaintiff rendered it im-
possible for her longer to care for the testa-
trix, it does not appear she ever claimed
that the plaintiff was liable for her subse-
quent support, or that her conservator, or
tbe defendant, have made such claim.
Whether Hannah Carr paid the $1,000, and
came to the plaintiff's home In reliance upon
a promise, such as the husband's evidence
tends to prove, Involves probabilities of which
the Jury are Judges. Upon this question
the considerations before suggested as to the
probable understanding of the parties as to
the word "home" bear with more or less force.
The effect of the contract, if found to bA
proved, was clearly explained to the Jury,
Whether the contract was made was properly
left to them. The defendant argues that, la
tbe presence of an express promise to pay,
the law will not imply one. This is so; but
the verdict shows that the express agreement
relied on by him was not proved to the satis-
faction of the Jury. There was also evidence
offered by the defendant of statements made
by the plaintiff tending to establish the con-
tract as claimed by him.
[S] A nonsuit is not ordered upon evidence
offered by the defendant, "for the plaintiff
is not obliged to yield to the evidence, and
is entitled to have It weighed by the Jury."
PlUsbury v. PUlsbury, 20 N. H. 90, 97. The
defendant argues that, as the plaintiff did
not go upon the stand to deny making the
admissions of which his witnesses testified,
she admitted having made them. The claim
is that the plaintiff could have testified
whether she made the admissions or not, be-
cause Hannah was not present when they
were claimed to have been made, and could
not have testified upon the subject. But
Hannah, If living, could have testified to tbe
contract, and the plaintiff's testimony deny-
ing an admission that the contract was as
the defendant claims would be indirect tes-
timony that the contract was as she claimed.
[8, 7] Whether this would or would not ex-
clude her testimony is now ImmateriaL The
Jury were Instructed that they could not
draw any Inference against tbe plaintiff be-
cause she did not testify. This was the law
of the trial, and as no exception was taken
it became the law of the case. The question
is not now open. This Js not a case of uncon-
tradicted evidence tending only to one point
(State V. Harrington, 69 N. H. 496, 45 Atl
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528
101 ATI/ANTIO REPORTER
(N.H.
404; Arnold v. Front, 51 N. H. 687), but one
where the sufficiency of the evidence relied
npon as an answer Involves probabilities
which are solely for the Jury. Of the compara-
tive weight of the evidence, this court is with-
out Jurisdiction.
Exception overruled. All concurred.
(78 N. H. US)
SPENCER T. CONNECTICUT RIVER POW-
ER CO. OF NEW HAMPSHIRE.
(Sapreme Court of New Hampshire. Cheshire.
June 30, 1917.)
1. Eminent Domain €=»152(1) — Right to
Damages — Owneks.
When land is taken in invitum by eminent
domain, the damages belons to the owner at
the time of the taking.
[Ed. Note. — For other cases, see Eminent Do-
main, Cent. Dig. §{ 403-405.]
2. Eminent Domain <8=»271— Flowing Lands
— llabiutt fob damages.
Although, under Pub. St. lOOl, c. 142, § 12,
Laws 1907, c. 244, § 3, and Laws 1903. c. 300,
( 4, a power company could acquire the right
to flow lands of other owners and be relieved
from common-lnw liability for so doing by pay-
ment or tender of damages, until such payment
it is liable in tort at common law for the damage
done by such flowing.
[Ed. Note. — For other cases, see Eminent Do-
main, Cent Dig. fS 725-736, 741.]
8. Eminent Domain «s>63 — Exercise of
Right.
Where a power company had caused lands
of other owners to be overflowed, but had taken
no steps to dispossess the owners of their rights,
deeds from such owners to plaintiff conveyed
the lands anhampered by the right to flowage
then unacquired.
(Ed. Note.— For other cases, see Eminent Do-
main, Cent Dig. $$ 161-164.]
4. Eminent Domain «=>168@)— Exeboibe of
Right.
Under Pub. St 1901, c 142, | 12, Laws
1907, c. 244, I 3, and Lews 1903, a 306, ! 4,
if the owner of overflowed lands brings petition
for assessment of damages, it must be dismissed
if the power company disclaims the intention
to take the right to flow the land, and the pro-
ceeding is only maintainable if the company de-
sires to acquire! such right
Exceptions from Superl(»r Court, Cheshire
County; Branch, Judge.
Petition by Charles P. Spencer against the
Connecticut River Power Company of New
Hampshire. Order dismissing the petition,
and plaintlfl accepts. Exceptions sustained.
Petition for the assessment of damages
through flowing the plaintiff's land by the
defendants' dam. At a hearing before the
court It was agreed that the plaintiff acquir-
ed title from two to five years after the de-
fendants' dam was filled and the land first
flowed. No damages have been paid by the
defendants to the persons who owned the
premises when the flowage commenced, and
no other petition for the assessment of dam-
ages for such flowage has been filed. Upon
these facts the court ordered the petition
dismissed, and the plaintiff excepted.
Joseph Madden, of Keene, for plaintlfl.
Harold E. Whitney, of Brattleboro, Vt, and
Philip H. Faulkner, of Keene, for defendant
PARSONS, O. J. [1, 1] When land Is taken
in Invitum by eminent domain, the damages
belong to the owner at the time of the taking.
Locke V. Laconia, 78 N. H. 79, 97 Atl. 567;.
Hadlock v. Jaffrey, 75 N. H. 472, 76 Atl. 123;
Hodgman v. Concord, 69 N. H. 849, 41 Atl.
287; Bean v. Warner, 38 N. H. 247; Moore
V. Boston, 8 Cusb. (Mass.) 274. In these cas-
es the legal taking was considered to be coin-
cident with the entry upon the land, and
consequently the damages belcmged to the
owner at the time of the entry. Under the
mill act (P. S. c. 142, { 12), and the defend-
ant's charter (Laws 1907, c. 244, § 3; Laws
1903, c. 306, ! 4), the defendant could ac-
quire the right to flow lands of other own-
ers and be relieved from common-law lia-
bility for so doing only by the payment or
tender of the damages ascertained by agree-
ment or through proceedings under the acts.
Until such payment the defendant is liabl»
In an action of tort at common law for the
damage done by flowing lands of others.
Roberts v. Railway, 73 N. H. 121, 59 AtL
619; Ash v. Cummlngs, 50 N. H. 591.
[3, 4] As the defendant, at the time of the
plaintiff's purchase, had taken no steps to-
dispossess his grantors of their property
rights which had been invaded by the flow-
age, their deeds to the plaintlfl conveyed the
lands unhampered by such a right, then unac-
quired and which never might be obtained.
Although the grantors had a common-law
right of action for damages, they did not
have a legal right to an assessment under the
statute. Their petition for such assessment
would have been dismissed unless the de-
fendant had Joined In requesting an ascer-
tainment of the value of the flowage right in
the land. Upon the defendant's disclaimer of"
an Intention to acquire such a right, a pe-
tition by the plaintiff's grantors would have
been dismissed, as the present will be upon-
such plea. Jones v. Whlttemore, 70 N. H.
284, 47 AtL 259 ; Chapman v. Co., 67 N. H.
ISO, 38 Atl. 16. As the defendant has not
yet legally taken the plaintiff's land for
flowage purposes, the present proceeding Is
maintainable, if It now desires to do so, and
the damages will be recoverable by the own-
er at the time of the taking. In Hadlock v.
Jaffrey, 75 N. H. 472, 76 Atl. 123, the water
right taken was taken under a special act
authorizing the town to construct water-
works, and not under the flowage act, and
the decision appears to stand npon the find-
ing In the case that the right was taken by
the town prior to the plalntifTs acquisition,
of title. The plaintiff, by bringing this pro-
ceeding, admits the flowage "is or may be of
public use or benefit" (P. S. c. 142, { 15), and
hence that the defendant may acquire the
right of flowage by payment of damages:
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Md.)
ADIiEMAK ▼. OCEAN ACCIDKNT A GUARANTEE CORP.
629
L e., that It may legally take the land, not
that It has legally taken It
As the plaintiff may maintain this proceed*
tog under the original act, It Is unnecessary
to consider the effect of chapter 326, Laws
1909, amendtog section 8, & 244, Laws 1907,
which gave the defendant power to erect a
dam across the Ck>nnectlcut below the mouth
of the Ashuelot. The special provisions re-
lied upon by the plalntlfl appear to relate
solely to the fiowage from the dam at this
potot, and If they could be construed to ap-
ply to flowage from other dams, they certain-
ly would not have that effect until the de-
fendant had accepted the amendment and
buUt the dam, which does not appear to haTe
yet been done.
Exception sustained. All concurred.
(UO Md. 572)
ABLEMAN t. OCEAN ACCIDENT & GUAR-
ANTEE CORP., Limited, et bL (No. 5.)
(Court of Appeals of Maryland. June 26, 1917.)
Masteb and Skbvawt «=»S93 — Wobkmen's
Compensation Law— Abatement of Com-
pensation AWABDED.
Under Workmen's Compensation Law (Acts
1914, c. 800) § 35, fixing compensation for
partly dependent persons, and providing for de-
tennmation of questions of dependency accord-
ing to the facts existing at the time of the In-
Jury resulting in death to the emplo;£, section
42, providing that on marriage of a dependent
widow her compensation shall cease, and section
53, piving the Commission power to change or
modify former findings or orders, the subsequent
marriage of a partly dependent sister of a de-
ceased employ^ did not determine her right to
compensation awarded her by the Commission
and authorize the Commission to abate it.
Appeal from Circuit Court, Washington
County; M. L. Keedy, Judge.
"To be ofBdally reported."
Proceeding under the Workmen's Compen-
sation Law by Toba Brenner and another
against the Ocean Accident 4 Guarantee Cor^
poratlon. Limited, Insurer and another, to
recover compensation for the death of Morris
Brenner, employ^. From an order of the
State Industrial Commission, dismissing the
petition of the tosurer, praying that the com-
pensation awarded Mary Brenner Adleman
be abated. It appealed to the circuit court,
where the mrder was reversed, whereupon
Mrs. Adleman appeals. Reversed, with costs
to appellant.
Argued before BOTD, C. J., and BRISCOE,
THOMAS, URNEB, and STOCKBRIDGE, JJ.
Frank G. Wagaman, of Hagerstown, for
appellant Frank Gosnell, of Baltimore,
(Alexander Armstrong, Jr., of Hagerstown,
on the brief), for appellees.
THOMAS, J. On the Stta of December,
1014, Morris Brenner, an employ^ of the
Reliable Junk Company, of Hagerstown, Md.,
died as the result of an accidental Injury
arising out of and in the course of his em-
ployment by said company. His mother,
Toba Brenner, and bis sister, Mary Brenner,
filed a claim for ccnnpensation as dependents
under Acts 1914, c. 800, known as thi: "Work-
men's (Compensation Law," and the State
Industrial Accident Commission, en April
7, 1915, passed an order awarding them, as
partly dependent upon the deceased, the sum
of 112.50 per week, which the Commission
apportioned between the claimants, giving
each of them $6.25 per week, payable week-
ly, for the period of 4 years and 32 weeks
from the 5th day of December, 1914.
On the 10th of June, 1916. the Ocean Ac-
cident & Guarantee (Corporation, Limited, the
insurer in the case, filed a petition allegtog
that Maiy Brenner was married to Nathan
Adleman on the 19tb of June, 1915, and that
she had concealed her marriage from the
petitioner until the 1st day of June, 1916, and
praying that the compensation awarded her
be abated by the Commission as of the 19th
of June, 1915. After a hearing, at which the
facts stated In the petition, except the al-
leged concealment of the marriage, were ad-
mitted, the Commission passed an order
denying the relief prayed and dismissing the
petition. From that order the petitioner
appealed to the drcnlt court for Washington
county, and that court on the 10th of Jan-
uary, 1917, passed an order reversing the
order of the Commission and abating the
compensation awarded Mary Brenner as of
the 19th day of June, 1915.
This appeal Is from the order of the cir-
cuit court and the single question Involved
Is whether the subsequent marriage of a part-
ly dependent sister of a deceased employ^
determines her right to compensation award-
ed her by the Commission and authorizes
the (Commission to abate it ^e answer
to this question must of course, be found
in the provisions of the act under which
the award was made. The (Commission took
the view that it had no authority to grant
the relief prayed, while the circuit court held
that under a proper construction of the act the
subsequent marriage of Mary Brenner de-
termined her right to the compensation,
and that the Commission, and the circuit
court on appeal, were authorized to abate it
The act after declaring its purpose to
provide "sure and certain relief for workmen
Injured In extrahazardous employments and
their families and dependents, ••• re-
gardless of questions of fault and to the ex-
clusion of every other remedy," except as
therein provided, and after providing for
ft commission to administer the law, declares
In section 14:
"Every employer, subject to the provisions of
this act, shall pay or provide as required herein
compensation according to the schedules of this
act for tbe disability or death of his employi
resulting from an accidental personal injury sus-
tained by the employ^ arising out of and m the
course of his employment, without regard to
fault as a cause of such injury," etc.
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101A.--34
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530
101 ATIiANTIO REPOROXn
(^d
Otber sections of the act require tbe em-
ployer to secure the payment ot the compen-
sation referred to In section 14, and provide
how he may do so. Section 35 declares
that:
"Each employ^ (or in case of death his family
or dependents), entitled to receive compensation
under tliis act shall receive the same in accord-
ance with the following schedule, and except as
in this act otherwise provided, such payment
shall be in lieu of any and all rights of action
whatsoever against any person whomsoever."
After providing for permanent and tern-
porary total disability and permanent and
temporary partial disability, this section con-
tains the following provisions for cases where
the Injury causes the death of the employ^
within two years :
"If there are wholly dependent persons at the
time of the death, the payment shall be fifty per
cent, of the averjiRe weekly wages [of the em-
ploy6], and to continne for the reran inder of the
period between the date of the death and eight
years after the date of the injury, and not to
amount to more than a maximum of four thou-
sand two hundred and fifty dollars, nor less than
a minimum of one thousand dollars.
"If there are partly dependent persons at the
time of the death, the payment shall be fifty
per cent, of tno average weekly wages, and to
continue for all of such portion of the period of
eight years after the date of the injury^ as the
Commission in each [case] may determine, and
not to amount to more than a maximum of three
thousand dollars.
"Tbe following persons shall be presumed to
be wholly dependent for support upon a deceas-
ed employ^: A wife or invalid husband ('in-
valid' meaning one physically or mentally in-
capacitated from earning), a child or children
under the age of sixteen years (or over said
age if physically or mentally incnpacitated from
earning) living with or dependent upon the par-
ent at the time of the injury or death.
"In all other cases, questions of dependency. In
whole or in part, shall be determined in accord-
ance with the facts in each particular case exist-
ing at the time of tbe injury resulting in the
death of such employ^, but no person shall be
considered as dependent unless such person be
a father, mother, grandfather, grandmother, step-
child or grandchild, or brother or sister of the
deceased employ^, including those otherwise
specified in this section."
Under these sections, where the employ^, en-
gaged In any one of the employments covered
by the act, dies as the result of an "accidental
personal Injury • • • arising out of and
In the coarse of his employment" within two
years, leaving at the time of bis death pei>
sons within the class mentioned who were,
at the time of the injury, partly dependent
upon him, tbe act imposes upon the employer
a Uablllt7 to pay to such dependents 60
per cent of tbe average weekly wages of the
employ^, to continue for all or such portion
of the period of eight years after the date of
the injury as tbe Commission may deter-
mine, not to amount to more than a maximum
of $3,000. Except as to those presumed to
be wholly dependent, the question of depend-
ency, in whole or In part, and the portion of
the period of eight years after the date of the
Injury during which 50 per cent, of the aver-
age weekly wages of the employe is to be
paid to those partly dependent, is left to the
determination of the Commission ; but when
so determined tbe obligation of the employer
to pay, and the right of the beneficiaries to
receive, the compensation provided becomes
definite and certain. This obligation to pay
and the right to receive are not, by the terms
of tbe act, made conditional upon tiie benefi-
ciary remaining unmarried, or dependent
upon his or her subsequent state of depend-
ency, and nowhere in the act is there found
express authority to the Commission to abate
the compensation. Tbe relief to the depend-
ents of the deceased employe provided by the
act is in lieu of that afforded by the common
law, and subsection 11 of section 62 of tbe
act defines "beneficiary" as :
"A husband, wife, child, children or depend-
ents of an employe in whom shall vest a right to
receive payment under this act"
Tbe act defines tbe duties and powers of
the Commission, and, in the absence of a
clear grant of such power, we would not be
justified in holding that it Is authorized to
abate compensation expressly provided by the
act as "sure and certain relief' for those who
were partly dependent upon a deceased em-
ploye, and whose right thereto has been de-
termined and has vested in accordance with
the terms of the act When we speak of tbe
right to the compensation as vesting In tbe
beneficiary, we do not mean to indicate that
the right of those partly dependent to the
compensation awarded them is a vested right,
in tbe sense that if they should die before
the completion of tbe weekly payments al-
lowed them, their right to the same would
devolve upon their personal representatives.
That question is not presented by the record,
and we are not to be understood as express-
ing any opinion in regard to it But that the
right to the compensation provided by the
statute vests in such beneficiaries, in tbe
sense that it is not conditional upon their
remaining unmarried, and that the marriage
of such a beneficiary does not authorize tbe
abatement of tbe compensation by the Com-
mission, we think is free of doubt
Tbe appellee relies, and tbe learned court
below based Its conclusion, upon section 53,
which provides that:
"The powers and jurisdiction of the Commis-
sion over each case shall be continuing and it
may from time to time make such modificaitians
or change with respect to former findings or
orders with respect thereto as in its opinion may
be justified."
A reference to several otber sections of tbe
act will show tbe purpose and application of
this section. For Instance, under section 41,
compensation may be suspended by tbe Com-
mission where an employs refuses to submit
to a medical examination. Under section 42.
in case of aggravation, diminution, or ter-
mination of disability, the Commission may
readjust the rate of compensation, and, in a
proper case, terminate the payments; and
under section 43, if a beneficiary has been a
nonresident of the state for one year, the
Commission may convert weekly payments
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ADL.EMAN ▼. OCEAN AOCIDKNT A GUABAKTEX! CORP.
681
Into a '^nznp sum payment" These and ofh- '
er provisions Indicate the power granted to
the Commission In the ezerdse of Its contlnn-
Ing jurlsdlctlmi, but they afford no support
for the contention here made by the appellee.
If we assume that under section 53 the Com-
mission may make such modifications or
change In Its former findings in reference to
those partly dependent upon a deceased em-
ploye, or Its orders In respect thereto, as In
its opinion may be Justified, the change or
modification made must nevertheless be such
as is authorized by the act Subsection 4 of
section 35 declares in explicit terms that In
all cases, other than those In which the law
presumes the claimants to be wholly depend-
ent, the questl(Hi of dependency. In whole or
in part, shall be determined In accwdance
with the facta existing at the time of the in-
Jury resulting In the death of the employe.
It is clear that, if the question of dq)endency
is to be determined upon the facta existing
at the time of the Injury, any modification or
change by the Commission of its former find-
ing upon that question must likewise be bas-
ed upon the facts existing at the time of the
injury, and cannot be made to rest upon or to
conform to conditions arising and existing
subsequent to the date of the Injury, provid-
ed, of course, the award is to those living at
the time of the death of the Injured employe.
Here the application Is not for a correction
or modification of the finding of the Commis-
sion upon the facts existing at the date of
the injury ; but the petitioner, In the face of
the express terms of the statute, seeks to
have the question of dependency of Mary
Brenner determined by the Commission upon
a state of facts arising after the Injury, the
death of the employe, and the award of the
Commission, and to have the former finding
and order of the Commission changed accord-
ingly. In dealing with a similar provision
In the Ohio statute, where it was claimed
that it conferred upon the Board of Awards
power to abate an award to one wholly de-
pendent upon a deceased employe, the Su-
preme Court of Ohio said, in State v. In-
dustrial Commission, 92 Ohio St 434, 111 N.
B. 299, li. R. A. 1916D, 944 :
"If section 39 could be construed as giving
the board i)ower to abate an award made under
paragraidi 2 of section 35, in case of the death
of dependent prior to completion of payments, it
necessarily follows that it could be construed
also as giving the board power and jurisdiction
to determine dependency at any time during the
period covered by the payments, instead of hav-
ing its determination expressly limited by the
statute, as it is, to dependency at time of death,
and, although the statute is inflexible as to
amount of award, abate the award at any time
the person to whom the compensation was grant-
ed ceased to be a dependent This construction
would be directly Contrary to the statutory re-
qtrirements."
Section 49 provides:
"The benefits in case of death shall be paid to
gnch one or more of the dependents of the dece-
dent for the benefit of all the dependents as may
be determined by the Commission, which may
apportion the benefits among the dependents in
such manner as it may deem just and equitable."
It is suggested that under this section and
section 63 the Commission may reapportion
the compensation among the dependents, and
It is argued that. If the Commission has the
power to cliange the award to one of the
beneficiaries, it may abate It entirely. We
are not required in this case to determine
whether the Commission has the power to
change its award for the purpose of reappor-
tioning the compensation among the depend-
ents. The statute fixes the amount of the
weekly payments the employer is required
to make to the tieneficiarles at 50 per cent
of the average weekly wages of the deceas-
ed employe. That amount cannot be changed
by the Commission, but must be paid to one
or more of the dependents for the t)eneflt of
all, or may l>e apportioned among them, as
the Commission may deem just and equitable.
Toba Brenner, the other beneficiary, is not
asking for a reapportionment of the week-
ly payment fixed by the statute; but the pe-
tlti(»ier, the insurer, is in effect seeking to
have the statutory allowance reduced to the
extent of one-half. The terms "Just and
equitable," used in section 49, relate, not to
the amount of compensation to be paid by the
employer or insurer, but to the apportion-
ment of the same among the beneficiaries.
In that the petitioner can have no interest
Section 42 provides that:
"In case of the remarriage of a dependent wid-
ow of a deceased employ^ without dependent
children, all compensation nnder this act shall
cease," etc.
But there is no such provision In reference
to other dependents mentioned in the act,
and It is reasonable to conclude that if the
Legislature, while dealing with the subject
of abatement of compensation, bad intended
the compensation provided for a sister to
abate upon her marriage it would bave so
declared in plain terms.
We have examined the other cases cited
by counsel, but they furnish very little aid
in arriving at the proper conclusion in the
case before us. Those determining the ef-
fect of the marriage of a dependent are bas-
ed upon statutes unlike the Maryland law.
while in the others the question Involved was
the right of the personal representatives of
a deceased dependent to the compensation
awarded or provided by statute. As the
Maryland act does not provide for the abate-
ment of compensation awarded to a partly
dependent sister of a deceased employe upon
her marriage, or authorise the Commission
to abate It on that ground, we must reverse
the order of the court below.
Order reversed, with costs to the appel-
lant, Mary Brenner Adleman.
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632
101 ATLANTIC Rm'ORTBQ
(Md.
(131 Md. 1)
WASHINGTON, B. ft A. BI/ECTBIC IL CO.
T. OWENS. (No. 17.)
<Court of Appeals of Marylan^. June 27, 1917.)
1. Mastkr and Servant ^=>265(4)— Fedebal
Empi:x>tbrs' I^iabiutt Act— Injubies in
iNXEBaTATE COMUEBCE — ISSCES AND PBOOF.
In an action under the federal Employers'
Liability Act (Act April 22, 190S, c. 149, 35
Stat 65 [U. S. Comp. St. li>16, §^ 8657-86C5])
for death of aervaut, it is essential to plaintiff's
right to recoverjr to prove that at the time the
deceased was injured he waa employed in inter-
state commerce.
[Ed. Note. — For other cases, see Master and
Servant, Cent Dip. §§ 8S0, 899.]
2. Mastbk and Sebvant «=»276(1)— Actions
FOB Death— Federal Fuplotebs' Liabiu-
TT Act — SUITFICIKNCT OF EVIDENCE.
In an action under the federal Employers'
liiabiUty Act, evidence that deceased, who was
accidentally killed by the discharge of a pistol
in the hands of a fellow servant, was employed
in a blacksmith shop in which repairs were made
on cars engaged in both interstate and intra-
state work, was insufficient to show that at the
time of deceased's death he was engaged in
work in interstate commerce.
[Ed. Note. — For other cases, see Master Mid
Servant, Cent Dig. iS 950, 964.]
Appeal from Superior Court of Baltimore
City; John J. Dobler, Judge.
"To be officially reported."
Action by Sylvia L. Owens, adralnistratrlx
of Marcellus F. Owens, deceased, against tbe
Washington, Baltimore & Annapolis Electric
Railroad Cidmpany. Judgment for plalntUf,
and defendant appeals. Reversed.
Argued before BOYD, C. J., and BRISCOE,
BURKB, THOMAS, PATTISON, and STOCK-
BRIDGE, JJ.
George Wlnshlp Taylor and George Weems
Williams, both of Baltimore, for appellant
Thomas Mackenzie, of Baltimore^ for ap-
pellee.
BDRKE, J. The appellee, plaintiff b^ow,
recovered a Judgment In the superior court
of Baltimore City against the appellant, and
this Is the defendant's appeal. The suit was
brought under tbe federal Employers' Lia-
bility Act, areroved April 22, 1908, to recov-
er damages for the death of Marcellus F.
Owens, who was Injured by the alleged neg-
ligence of the defendant, while he was in Its
employ, and died as the result of said injury.
The first section of that act provides:
"That every common carrier by railroad while
engaging in commerce between any of the sev-
eral states or territories, or between any of the
states and territories, or between the District of
Columbia and any of the states or territories, or
between the District of Columbia or any of the
states or territories and any foreign nation or
nations, shall be liable in damages to any person
soffering_ injury while he is employed by such
carrier in such commerce, or, in case of the
death of such employ^, to his or her personal
representative, for the benefit of the surviving
widow or husband and children of such employ^ ;
and, if none, then of such employe's parents;
and if none, then to the next of kin dependent
upon such employ^, for such injury or death re-
sulting in whole or la part from tlie negligence
of any of the officers, agents, or employ^ of
such carrier, or by reason of any defect or in-
sufficiency, due to its negligence, in its cars, en-
gines, appliances, machinery, track, roadbed,
works, boats, wharves, or other equipment"
The declaration contained two counts. In
the first count it was alleged:
"On the 2d day of July, 1915, Marcellus F.
Owens, the deceased aforesaid, and the husband
of the said equitable plaintiff Dora Owens, and
the father of the said equitable plaintiffs, Sylvia
L. Owens, Gilbert Owens, and Franklin Owens,
was and for a number of years last preceding
snid date had been employed by and engaged in
the service of said defendant corporation as a
blacksmith or mechanic in tbe repair works and
shops of the defendant engaged in work upon
the cars and Instrumentalities used by it in inter-
state commerce as hereinbefore and hereinafter
described ; that on the said 2d day of July, 1915,
the said Marcrflus F. Owens was employed, en-
paged, and acting in the ser?ice of the defendant
as a blacksmith or mechanic in the perform-
ance of his work upon the oar and instmmentali-
ties used by the defendant in its interstate com-
merce aforesaid between the state of Maryland
and the District of ColumHa, and within the
jurisdiction of the United States of America
hereinafter referred to."
At the conclusion of the evidence for the
plaintiff the defendant submitted several
prayers by which the court was asked to
withdraw the case from the consideration
of the Jury upon various grounds. The same
questions as to the plalntlfrs right to recover
were raised by the defendant's special ex-
ceptions filed to granting of the plaintiff's
prayers. These prayers and special excep-
tions were overruled by the court The
rulings on the prayers and sijedal exceptions
constitute the only bill of exceptions In the
record. These rulings present several Im-
portant questions as to the plalntUTs right to
maintain the suit tmder tbe act; but In the
view we take of the case only one of these
questions need be considered. That ques-
tion Is this: Did tbe plaintiff offer any legal-
ly sufficient evidence tending to show that
Marcellus F. Owens was Injured while he
was employed In Interstate commerce, with-
in the meaning of the federal Employers'
Liability Act? Upon the substantial and con-
trolling facts, which are few and simple,
there is no conflict in the evidence, and these
facts are here stated.
The defendant is a common carrier, and
owns and operates an electric railroad whlcb
runs from Baltimore City, Md., to and Into
the city of Wlashlngton, In the District of Co-
lumbia, and ah90 from Baltimore City to
Annapolis, Md. It Is engaged in l)oth inter-
state and intrastate transportation. The
branch line to Annapolis connects with the
main line at Annapolis Junction where the
company's repair shoi>s aro located. Marcel-
lus F. Owens was in the employ of the de-
fendant working as a helper In the t>lack-
smith shop at this place. There were four
persons employed In this blacksmith - shop,
viz. Robert F. Bryant and Arthur T. An-
AssFor other cases tee ume topic and KET-NUMBBR In all Key-Numbered Digests and IndexM
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WASHINGTON, B. A A. BLECTBIC R. CO. ▼. OWENS
6.13
drews, both blacksmiths, and William liOW-
man and Marcellus F. Owens as their respec-
tlve helpers. About a year and a half be-
fore Owens was Injured Robert F. Bryant
brought to the shop an old army pistol. This
old pistol was used In the hunting of rabbits
near the shops, and was at times discharged
about the shops for amusement or sport. It
was kept in a locker In the shop in which
Bryant and Lowman kept their clothes and
tools. E^arly In the afternoon of July 2, 1916,
William Lowman took the old pistol, which
was loaded with powder' and paper wadding,
from the locker, intending to discharge it
either for amusement or to frighten some
one about the works. When he was at or
near the door of the blacksmith shop the pis-
tol was accidentally discharged and the load
entered the right thigh of Owens, who was
standing near by at the time. The wound
was washed at the shop and Owens went
borne, and ttiat evening he consulted Dr.
Thomas W. Linthicum,.wlM> was called as a
witness and testified:
"That on July 2, 1915, Marcdlus F. Owens
was brought to his office about 8 o'clock in the
evening suffering from a gunshot wound in the
right thigh. The hole at the entrance of the
woond was about as large as a half dollar,
ragged and torn. He dressed it. Some one had
attempted to dress it before, and had removed
some of the debris. There was not a bullet in
the pistol, but it was loaded with hair or dirt or
packing of some kind. The wound was blacken-
ed as if a powder wound. He was burned
through his clothes. It was deeip, and went
through nearly all the muscles, practically to
the b<xie. He removed some particles resembling
hair. Owens stated to him that it was packing
from an old refrigerator. He said that was
what the pistol was loaded with. He removed
from the wound a lot of hair that looked like
packing, although be had never seen packing of
a refrigerator. He saw Owens again July 3d,
and every day until the day of his death, on
July 9th, at the University of Maryland Hos-
pital. He thinks he died from the effects of
this wound."
[1,2] It was essential to the plaintifPs
right to recover to prove that at the time the
deceased was Injured he was employed in
Interstate commerce work. Howard v. 111.
C. R. Co., 207 U. S. 492, 28 Sup. Ct. 141, 52
I* Ed. 297; Osborne v. Gray, 241 U. S. 16, 36
Sup. Ot 486, 60 I* Ed. 865; 111. a R. Co. v.
Behrens, 233 V. S. 473, 34 Sup. Ot. 646, 58 L.
Ed. 1051, Ann. C&s. 19140, 163 ; Minn. & St
I* R. Oo. V, Winters, 242 U. S. 353, 37 Sup.
Ct 170, 61 L. Ed. 358. In what parUcuiar
service was Owens engaged on the day he
was Injured? Was it interstate or Intrastate
commerce? The record is entirely silent
The evidence of the character of work done
by him is found in the testimony of Robert F.
Bryant as follows:
"Q. What kind of work did you do in the
shop? A. Blacksmithing. Q. You did it all?
A. No: Mr. Andrews, he had a helper. Q. I
don't mean you personally, but In your shop you
four men did all the repairs on ^1 the cars of
the defendant? A. Doing repairs. Q. That
was the only blacksmith shop out there in those
Works? A. Yes, sir. Q. This railroad line
runs from the District of Columbia over to
Baltimore? A. I rode on it that far; yes."
Whether he was employed on the day he
was injured in work on cars used in intra-
state service— on the Annapolis division — or
in repairing cars used on the interstate divi-
sTon, or working on cars used indiscriminate-
ly in both kinds of transportation is not
shown. The evidence fails to show that at
the time he was injured he was employed in
Interstate commerce, and the case should not
hare been submitted to the Jury. In IlL C.
B. Co. T. Behrens, Adm'r, 233 U. S. 473, 34
Sup. Ct. 646, 58 L. Ed. 1061, Ann. Cas. 1914C,
163, the court said:
"The facts shown in the certificate are these:
The intestate was in the service of the railroad
company as a member of a crew attached to a
switch engine operated exclusively within the
city of New Orleans. He was the Qreman, and
came to his death, while at his post of duty,
through a head-on collision. The general work
of the crew consisted in moving cars from one
point to another within the city over the com-
pany's tracks and other connecting tracks.
Sometimes the cars were loaded, at other times
empty, and at stUl other times some were loaded
and others empty. When loaded, the freight
in them was at times destined from within to
without the state or vice versa, at other times
was moving only l>etween points within the
state, and at still other times was of both
classes. When the cars were empty, the purpose
was usually to take them where they were to
be loaded, or away from where they had been
unloaded; and oftentimes, following the move-
ment of cars, loaded or empty, to a given point,
other cars were gathered up and taken or start-
ed elsewhere. In short the crew handled inter-
state and intrastate traiSSc indiscriminately, fr^
quently moving both at once, and at times turn-
ing directly from one to the other. At the time
of the collision the crew was moving several
cars loaded with freight which was wholly in-
trastate and upon completing that movement
was to have gathered up and taken to other
points several other cars as a step or link in
their transportation to various destinations
within and without the state. The question of
law upon which the Circuit Court of Appeals
desires instruction is whether upon these facts
it can be said that the intestate, at the time of
his fatal injury, was employed in interstate
commerce within the meaning of the employers'
liability act.
"Considering the status of the railroad as a
highway for both Interstate and intrastate com-
merce, the Interdependence of the two classes
of traffic Ld point of movement and safety, the
practical difficulty in separating or dividing the
general work of the switching crew, and the
nature end extent of the power confided to Con-
gress by the commerce clause of the Constitu-
tion, we entertain no doubt that the liability of
the carrier for injuries suGfered by a member of
the crew in the course of its general work was
subject to regulation by Congress, whether the
particular service being performed at the time
of the injury, isolatedly considered, was in inter-
state or intrastate commerce. Baltimore & O.
R. Co. V. Interstate Commerce Commission, 221
V. S. 612, 618 [31 Sup. Ct 621, 66 I* Ed. 878] ;
Southern B. Co. v. United States, 222 U. S. 20,
26 [32 Sup. Ct 2, 56 L. Ed. 72]; Second Em-
ployers' Liability Cases (Mondou v. New York,
N. H. & H. R, Co.) 223 U. S. 1 [32 Sup. Ct
169, 66 L. Ed. 327, 38 U R. A. (N. S.) 44); In-
terstate Commerce Commission v. Goodrich
Transit Co., 224 U. S. 194, 213 [32 Sup. Ct
4.'{6, 56 L. Ed. 729]; Minnesota Rate Cases
(Simpson T. Shepard) 230 U. S. 352, 432 [33
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634
101 ATLANTJO REPOBTEB
(Bid.
Sup. Ofc 729, 67 L. Ed. 1511, L. R. A. (N. S.)
1151, Ann. Ca& 1918A, 18]. The dedsion in
Employera* Uability Oases (Howard v. IllinoiB
C. R. Co.) 207 U. S. 463 [28 Sup. Ct 141, 62
L. Ed. 297] is not to the contrarv, for the act
of June 11, 1906 (34 Stat 232, c. 3073, U. S.
Comp. Stat. Supp. 1911, p. 1316), there pro-
nounced invalid, attempted to regulate the lia-
bility of every carrier in interstate commerce,
whether by railroad or otherwise, for any in-
jury to any employ^, even though his employ-
ment had no connection whatever with inter-
state commerce.
"Passing from the question of power to that
of its exercise, we find that the controlling pro-
vision in the act of April 22, 1908, reads as t<A-
lows: 'Hat every common carrier by railroad
while engaging in commerce between any of the
several states * • * shall be liable In dam-
ages to any person suffering injury while he in
employed by such carrier in such commerce, or,
in case of the death of such employ^, to his or
her personal representative, • • • for such
injury or death resulting in whole or in part
from the negligence of any of the officers,
agents, or onploygs of such carrier, or by rea-
son of any defect or insufficiency due to its
negligence in its cars, engines, appliances, ma-
chinery, track, roadbed, works, boats, wharves,
or other equipment.' Giving to the words 'suf-
fering injury while he is employed by such car-
rier in such commerce' their natural meaning,
as we think must be done, it is clear that Con-
gress intended to confine its action to injuries
occurring when the particular service in which
the employ^ is engaged is a part of interstate
commerce. The act was so construed in Peder-
sen V. Delaware, L. & W. R. Co., 229 U. S.
146 [33 Sup. Ct. 848, 67 L. Hd. 1125, Ann.
Ces. 19140, 163]. It was there said: 'There
can be no doubt that a right of recovery there-
under arises only where the injury is suffered
while the carrier is engaged in interstate com-
merce and while the employ^ is employed by
the carrier in such commerce.' Again: 'The
true test always is: Is the work in question a
part of the interstate commerce in which the
carrier is engaged?' And a like view is shown
in other cases. Second Employers' Ldability
Cases (Mondou v. New York, N. H. & H. R.
CoJ 223 U. S. 1 [32 Sup. Ct 169, 56 I* Ed.
327, 38 L. R. A. (N. S.) 44] ; Seaboard Air Line
R. Oo. V. Moore, 228 U. S. 433 [33 Sup. Ct
680, 57 L. EM. 907]; St Louis. S. F. & T. R,
Co. V. Scale, 229 U. S. 156, 158 [33 Sup. Ct.
651, 57 L. Ed. 1129, Ann. Cas. 1914C, 156];
North Carolina R. Co. v. Zachary, 232 V. 8.
248, 256 [34 Sup. Ot. 305, 58 L. Ed. 691. 594,
Ann. Cas. 19140, 159]; Grand Trunk Western
R. Co. V. Lindsay, 233 U. S. 42 m Sup. Ct
681, 68 T^ Ed. 838, Ann. Cas. 1914C, 168].
"Here at the time of the fatal injury the in-
testate was engaged in moving several cars, all
loaded with intrastate freight from one part of
the city to another. That was not a service in
interstate commerce, and so the injury and re-
sulting death were not within the statute.
Tliat he was expected, upon the completion of
l^at task, to engage in another which would
have been a part of interstate commerce, is im-
material under tlie statute, for by its terms the
true test is the nature of the work being done
at the time of the injury."
Jiadse Dobler, who presided at the trial
below, followed the ruling of this court in
B. & O. R. R. Oo. V. Branson, 128 Md. 678,
98 Atl. 225. In that case Branson suffered
injury in the shops at Cumberland while en-
gaged in painting engines and cars used In
both interstate and intrastate commerce, and
this court allowed a recovery upon the
ground that the work of painting these en-
gines and cars had a reasonable and sobstan-
tlal relati'on to Interstate commerce. But
tliat case has been reversed by the Supreme
Court of the United States (B. & O. v. Bran-
son, 242 U. S. 623, 37 Sup. Ct 244, 61 U Ed.
634), apparently upon the sole ground that
Branson was not engaged in interstate com-
merce at the time he suffered the injury.
The court dted In support of its condusicMi
Delaware, Lackawanna & Western B. R. Oo.
T. Turkonls, 238 D. S. 439, 35 Sup. Ct 802,
59 L>. Ed. 1397; Shanks t. Delaware, Lacka-
wanna & Western B. B. Co., 239 D. S. 65e,
36 Sup. Ct 188, 60 L. Ed. 436, li. B. A. 1916C,
797; Chicago, Burlington & Quincy B. R.
Co. V. Harrington, 241 U. S, 177, 180, 36 Sup.
Ot 517, 60 L. Ed. 941.
For the reasons stated, the Judgment will
be reversed, and, as there can be no recov-
ery in this action, a new trial will not be
awarded.
Judgment reversed, without awarding a
new trial.
030 Md. 635)
BUOHBB v. FEDERAL BASEBALL CLTTB
OP BALTIMORE, Inc. (No. 16.)
(Court of Appeals of Maryland. Jane 26, 1917.)
1. CoRPORATTONS «=»7ft— Stook Sttbbcsiptioitb
— AOREKMENTS — BoNTTS.
Dpfendant, with others, agreed ns port of an
nnderwHtine ngreement to subaeribe shares of
prpferrod stork in plaintiff corporation, in c«ni-
sidprntion of shares of common stock to be trans-
ferred to him by the directors in payment of
his services, the subscription to the preferred
stock to be annulled and returned noon the sale
to the public of stock in a specified amonnt.
Held, that the defendant could not avoid liabili-
ty on his subscription on the theory that the
contract was invalid, as providing for the issu-
ance of a boTiuB, since a transfer by the direo
tors to defendant was not the issaanee of stock
to defendant as a bonus.
[Ed. Note.— For other cases, see CorporatlonB,
Cent Dig. H 197-209, 213-2ia]
2. EVIDENCB «=»73 — Pmhtomptions — Cow-
TBACT8.
The appellate court will not presume that
agreement of directors of corporation to contrib-
ute stock of the corporation nnder an underwrit-
ing agreement as compensation for the services
of underwriters had not been legally iasned. In
order to exempt an underwriter from his obliga-
tion under his agreement
[Ed. Note.— For other cases, see EMdence,
Cent Dig. I 94.1
8. Corporations «=»90(6)— SxTBSORipnoNa id
Stock — Actions— AMtrssiBixiTT of Bvi-
DENCE.
In an action against the underwriter of cor-
porate stock, a subscription agreement is not
rendered inadmissible by reason of the fact that
one of the subscribers, who signed after defend-
ant, had reserved the option of paying for the
stock he was underwriting prior to the date si>ec-
Ified in the tinderwriting agreement, since, if
he exerriaed his option, it could not increase or
affect the liability of the other subscribers.
[Ed. Note. — For other cases, see Corporations.
Cent Dig. H 411-416.]
«=>For other cases see same topic and KBT -NUMBER In all Key-Numbered Digests and Indexas
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BUCHER T. I^DKRAL BASEBALIi CLUB OF BAIiTIHORK
635
4. cospobations 9=390(6) — scb8cbipti0nb to
Stock— Fraud — Evidence.
In an action against the underwriter of cor-
§ orate stock, evidence that defendant was in-
uced to sign by representations and assurance
of secretary of the corporation that no liability
would be incurred, that the corporation, after
the first baseball game of the season, would have
money enough for its needs, and that defendant
Bigned the paper without reading it, was proper-
ly rejected, as without probative force on the is-
sue of fraud.
[Ed. Note.— For other cases, see Corporations,
Cent Dig. §f 411-il6.1
Si COBPOBATIONB <S=80(B)— StJBBORrPTIOWS—
Fraui>— Statement or Fact ob Opinion.
The statement by the secretary of a base-
ball club that its gate receipts would be suffi-
cient to meet its requirements, and thus relieve
an underwriter of its stock of liability, is not a
representation of an existing fact, but only an
expression of opinion or expectation, which is
insufficient as a basis of fraud or deception.
[Ed. Note.— For other cases, see Corporations,
Cent. IHg. i 250.]
6. CoBroBATioNS <e=>90(6» — Sale or Coepo-
bate Stock— Actions— Evidence.
In an action by a corporation against an un-
derwriter and subscriber of its stock, evidence
that the underwriting agreement was hypothe-
cated for a loan held admissible.
[Ed. Note. — For other cases, see Corporations,
Cent. Dig. !S 411-416.1
7. COBPOBATIONS i&=>fl0(6)— Stock Subbcbip-
Tioifs — Underwriting Aoreekent — Ao-
T10N8— Admissibility or Evidence.
In an action by a corporation against an un-
derwriter and subscribers of its capital stock,
-evidence of the sales of stock by the corpora-
tion pursuant to the agreement, prior to the
time when the subscribers were called upon for
payment, was admissible.
[Ed. Note.— For other cases, see Corporations,
Oent Dig. $| 411-416.]
8. Evidence ®=»271(13) — Aduissibilttt —
Declabations.
In an action by a baseball corporation
against an underwriter and a subscriber to its
capital stock, statements made by the secretary
■of tiie dub to defendant, after defendant was call-
ed on under the agreement to pay liis subscrip-
tion, were inadmissible.
[Ed. Note.— For other cases, see Evidence,
Cent. Dig. S 1087.]
"9. cobpobationb ®=>90(c)— subscriptions—
Actions— Admissibilttt of Evidence.
In an action by a baseball corporation
against an underwriter and subscriber to its cap-
ital stock, evidence as to defendant's knowledfie
of corporation's financial condition after defend-
ant was called upon to pay under hia agreement
-held inadmissible.
[Ed. Note.— For other cases, see Corporations,
Cent Dig. » 411-416.]
10. CoBPOBATiONS ®=>90(6)— Subscriptions-
Actions— Admissibility OF Evidence.
In an action by a baseball corporation
•gainst an underwriter and subscriber to its
capital stock, evidence that the secretary of the
club, who was also one of the underwriters, had
not as yet paid his subscription, was immaterial
and inadmisaible.
[Ed. Note. — For other cases, see Corporations,
Cent Dig. {f 411-416.]
11. Interest *=>68 — Stock Subscriptiok —
Question fob Jury.
A subscription for stock in a corporation un-
der an underwriting agreement to be paid in
the future, not being a contract on which inter-
est is recoverable as of right the allowance of
interest on such contract should be left to the
Jury, to determine whether, under the circum-
stances, a recovery of interest would be equita-
ble and Just
[Ed. Note.— For other cases, lee Interest
Cent Dig. f 157.]
12. Trial $=3194(11)— Question fob Jubt.
In an action by a corporation against an
underwriter and subscriber to its stock for the
recovery of subscription price, an instruction al-
lowing recovery of interest is erroneous, as in-
vading the province of the Jury.
[Ed. Note.— For other cases, see Trial, Cent
Dig. il 45&-460.]
13. Appeal and Ebbor $=31144— Dkteruina-
TioN and Disposition — Affibmance iw
Part and Reversal in Part.
In an action by a corporation against an
underwriter and subscriber to its capital stock
for the amount of the subscription, where the
court erroneously by instruction allowed the
recovery of interest, but plaintiff thereafter of-
fered to waive the interest allowed by the Jury,
and to accept the amount of the sul>scription
without interest, the court on appeal will affirm
the judgment for the recovery of the principal,
and remand the cause for new trial as to the al-
lowance of interest
[Ed. Note. — For other cases, see Appeal and
Error, Cent Dig. S 4479.]
Appeal from Superior Court of Baltimore
City; James M. Ambler, Judge.
"To be officially reported."
Action by the Federal Baseball Club of Bal-
timore, Incorporated, against Frederick Buch-
er. Judgment for plalntlfT, and defendant ap-
peals. Affirmed In part, and reversed In
part, and new trial awarded.
Argued before BOYD, G. J., and BRISCOE,
BURKE, THOMAS, PATTISON, DRNEB,
and STOCKBRIDGB, JJ.
William G. Towers and William P. liyons,
both of Baltimore, for appellant, tu Edwin
Goldman and Frank B. Ober, both of Balti-
more (Ritchie & Janney, of Baltimore, on the
brief), for appellee.
UBNER, J. An nnderwriting agreement
between the Federal Baseball Club of Balti-
more, Incorporated, and a number of persona,
Including the appellant, recited that the cor-
poration had then outstanding capital stodc
to the amount of $150,000 preferred and
$150,000 common stock, and was desirous of
raising money for nse as working capital for
the ensuing year, and proposed to obtain the
necessary funds by Increasing its capital
stock to $250,000 preferred and $250,000 com-
mon stock, the preferred to be offered to the
stockholders at par, with snch bonus, if any,
of common stock as might be determined by
the board of directors, bat that, as the time
was deemed unfavorable for offering the new
stock to the stockholders and the public, the
corporation had requested the other parties
to the agreement to underwrite the stock on
the terms thereinafter prescribed, the under-
writing, when completed to the amount of
$25,000, to be effective and binding, and to
be used by the corporation for the purpose of
AssFor otber cases •«• mm* topic and KET-MUMBER In all Ker-Numberad Dlseat* and IndexM
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5S6
101 ATIiANTIO REPORTER
^d.
borrowing money thereon to the extent of Its
requirements. The agreement then provided
that each of the underwriters thereby sub-
scribed for the number of shares of the pre-
ferred stock of the corporation set opposite
bis name, and obligated hhnself to pay there-
for at the rate of $10 per share as and when
3;)ayment should be called for by notice in
writing from the treasurer of the corporation,
but such calls to be made in no event prior
to July 1, 1915. It was further agreed that
the underwriting might be hypothecated by
the corporation with any bank or trust com-
pany. There was a provision that the base-
ball club should have the exclusive right to
offer the stock to its stockholders and the
public "until the dissolution of the underwrit-
ing on July 1, 1915," and the agreement then
proceeded as follows:
"And in coDsideration of such services render-
ed by the subscribers, said Federal Baseball
Club of Baltimore, locorporated, does hereby
agree that upon the sale of said stock to the
amount subscribed for hereunder to Its stockhold-
ers or to the public, said subscription obliga-
tions shall be returned and the said underwrit-
ers shall each receive as compensation for their
said services 50 per cent, of the par amount of
their subscriptions herein in common stock of
the corporation, the same having been contrib-
uted for this purpose by the directors, and that
all sales of stock effected as aforesaid shall be
applied ratably on said subscriptions."
The appellant was one of 25 underwriters,
each of whom signed the agreement as a sub-
Bcriber for $1,000 of the preferred stock at
its par value. By the hypothecation of the
underwriting with the Baltimore Trust Com-
pany a loan was obtained by the Baseball
Club to the amount of $25,000. The eftorts
of the club to dispose of the new issue of pre-
ferred stock resulted in the sale of only 129
shares, apart from those taken by nnderwrit-
era, two of whom paid for and received the
full amount for which they subscribed. The
other 23 subscriptions were reduced ratably,
as provided by the agreement, as the result
of the sales of stock made by the club subse-
quent to the underwriting. As the amount
realized from such sales at par was $1,290,
the obligation of each of the subscribers was
reduced from $1,000 to $943.92, and each of
them was notified In writing by the treasurer
of the club to pay that sum on August 15,
1915, in pursuance of a resolution to that ef-
fect passed by the board of directors. The
payment thus requested of the appellant hav-
ing been refused, he was sued, in this action,
and a Judgment, on the verdict of a Jury, was
recovered against Mm for the amount claim-
ed, with interest.
There are seven bills of exception in the
record. Hie first exception was taken to the
admission in evidence of the underwriting
contract. It is contended that the agreement
Is invalid and inadmissible, because of Its
provision that the underwriters should re-
ceive, as compensation for their services, com-
mon stock of the baseball club to the amount
of 60 per ceat. of their subscriptions for its
preferred stock. This objection is founded on
the theory that the agreement provided for
the issuance of bonus stock to the subscrib-
era, in the amounts specified, and that such
an undertaking Is illegal, and renders the
subscription void and unenforceable. The
principle applied In the case of Trent Import
Co. V. Wheelwright, 118 Md. 249, 84 Atl. 543,
is invoked in support of this contention. In
the case cited a subscription for preferred
stock, with a 50 per cent, bonus of common
stock, in a New York corporation, was held
to be invalid under the laws of that state. It
is urged that the law of Maryland also pro-
hibits such contracts upon the part of corpo-
rations created under our statutes. Whether
this view is correct in its general theory Is a
question which need not now be decided, be-
cause, if the principle assertekJ be assumed to
be operative in this state, we are satisfied
that it does not apply to the special terms of
the agreement Involved in this suit.
[1] The common stock, to be received by
the subscribers for preferred stock under the
present contract, was not to be issueSd by the
corporation, and was not intended to be a bo-
nus. It was contributed by the members of
the board of directors as a compensation
to the underwriters for their services in that
capacity. By the terms of the agreement
they were to receive the stated amounts of
common stock only in the event that the cor-
poration succeeded in selling the preferred
stock for which they had subscribed. If that
contingency had actually occurred, the sub-
scription obligations were to have been re-
turned an'd the un'derwriting dissolved. The
subscribera would then have been relieved of
the liability they had assumed, and would
have received no preferred stock under the
agreement, but wouid have been entitled to
the common stock contributed by the 'direct-
ora as compensation for the service rendered
in the underwriting transaction. The argu-
ment for the appellant on this point proceeds
upon the theory that the contribution of the
common stock by the directors, to which the
agreement referred. In fact represented the
direct issuance of the stock by the corpora-
tion to the underwritera We do not feel at
liberty to make such an assumption. It Is
not in accord with the meaning of the lan-
guage used in the agreement, and we have no
reason to assume that the statements of fact
therein maUe are incorrect in any particular.
When the agreement was executed, $150,000
of common stock had previously been Issued,
and it was some of this stock, apparently,
that was owned and contributed by the di-
rectors. If it had been intended to compen-
sate the underwritere with some of the un-
issued common stock of the corporation, that
purpose would have been expressed by a sim-
ple provision for the Usitanoe of the stock for
that purpose. There would have been no oc-
casion to recite the contribution of the stock
from the source Indicated.
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BUCH£B y. FEDERAL BASEBAI<Ii CLUB OF BALTIMORK
637
[2] The opinion in Trent Import Co. V.
Wheelwright, supra, distinguished the ruling
in that case from the decision in Maries
Carved Moulding Co. y. Stnlb, 216 Pa. 91, 64
Atl. 431, where—
"the defense of a subBcriber that certain shares,
which he was to receive in conjunction with
those for which he had subscribed, were to be il-
legally issued as a bonus, was disallowed, but it
was pointed out that the stock was to be trans-
ferred to the subscriber by a third party, to
whom it had been lawfully issued, and not by
the corporation."
There is nothing In this record to show
that the stock contributed by the directors for
the compensation of the anderwriters had
not been legally issned, and we have no
reason, therefore, to adopt such a theory
for the purpose of exempting the appellant
from his contractual obligation.
[3] The admissibility of the subscription
agreement was disputed also on the ground
that one of the subscribers, who signed after
the appellant, made a written reservation of
the privilege of withdrawing any part of the
$1,000 of preferred stock he was underwrit-
ing, "together with the bonns stock," at any
time prior to July 1, 1915. It Is argued that
a subscription thus qualified is not In ac-
cordance with the agreement, and hence is
not to t>e considered as meeting In part the
provlBion that the obligation should become
effective when the nnderwriting was com-
pleted to the amount of $26,000. With this
subscription thus eliminated, the theory is
that underwriting to the prescribed amount
has never been procured, and that the agree-
ment has therefore never become effective.
The reservation by a 8ttb8crll>er of the priv-
ilege of paying for his stock l>efore the time
when the underwriting was intended to be
dissolved did not relieve him of his equal
obligation under the contract, but gave him
the option to meet and satisfy bis liability be-
fore it matured. The exercise of such an op-
tion could not increase the resi)onsibillty of
the other subscribing parties. It could only
have the effect of reducing the total of the
amounts for which they were severally bound.
The right was reserved by the corporation
to sell prior to July 1, 1916, to the stockhold-
ers, or the public, any or all of the stock un-
derwritten by the agreement, and in view
of the provision to that effect, and of the
evident design that the stock should be sold,
If possible, the option in question, append-
ed by one of the subscribers, would appear
to have been superfluous. It was certain-
ly Immaterial, so far as the practical rights
and interests of the other underwriters were
concerned.
[4] The second, seventh, eighth, ninth, and
tenth exceptions refer to offers of testimony
by the appellant as a witness in bis own be-
balf to prove that his subscription was ob-
tained by fraud. It was admitted by the
appellant that he signed the paper and en-
tered "$1,000" with his own hand in the
column headed "Amount at Par Value of
Preferred Stock Subscribed For^ ; but he d»
sired to testify in substance that he was In-
duced to sign by the representation and as-
surance of the appellee's secretary that no
liability would be thereby incurred by the ap-
pellant, and that the only object of the paper
was to tide the baseball club over the first
game of the season, after which it would
have enou^ money for its needs, and that
he signed the paper without reading it, and
la reliance upon the secretary's statement
as to the purpoae for whldi it was to be
used. The trial court ruled in effect that the
testimony thus proffered was immaterial, and
without probative force upon the issue of
fraud, to which it was directed. With this
view we fully agree. By the appellant's ad-
mission that he understood the paper he
signed was to be used for the purpose of
raising money, and that he personally wrote
after his signature the amount of his sub-
scription, it is settled beyond question that
he was not misled as to the fact and measure
of the liability he was thereby assuming.
[5] In view of his conceded knowledge as
to the object for which his signature was
being obtained, he is not entitled to Impeach
for fraud the obligation into whldi he enter-
ed merely because he did not read the paper,
and was assured that the corporation to which
he was lending his credit would realize enough
money from its operations to repay the loan
he was thus aiding it to procure. The state-
ment by the secretary of the baseball dub
that its gate receipts would be sufficient to
meet its requirements, and thus relieve the
appellant ol any liability on account of his
signature, was not a representation of an
existing fact, but only an expression of opin-
ion or expectation, upon which he was not
justified in placing reliance, and which is an
insufficient basis for a charge of fraud and
deception. Robertson v. Parks, 76 Md. 132, 24
AtL 411; Boulden v. Sttlwell, 100 Md. 562,
60 Atl. 609, 1 L. R. A. (N. 8.) 258; HaU v.
Brown, 126 Md. 178, 94 AU. 530. The case
of McGrath v. Peterson, 127 Md. 412, 96 AtL
551, cited by the appellant, was widely differ-
ent in its facts from the one now under re-
view.
[•, 7] The third and fourth exceptions were
taken to the admission of proof that the un-
derwriting agreement was hypothecated by
the baseball club for a loan of $25,000, and
the fifth and sixth exceptions opposed the
introduction of evidence as to sales of stock
by the corporation, under the agreement,
prior to the time when the 8ut>8criber8 were
called on for payment There was no error
in these ruUngs.
[I, S] The eleventh and twelfth exceptions
refer to the exclusion of testimony by the ap-
pellant as to statements made to him by the
secretary of the baseball club after the no-
tice for payment was issued. The subsequent
representations thus sought to be proven were
immaterial under the issues joined, as was
also the knowledge then possessed by the
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638
101 AXLAKriO REPORTBB
QiO.
appellant, and offered to be proven nnder
the thirteenth exception, as to the appellee's
financial condition.
[10] An offer to prove, as shown b7 the
fourteenth bill of exception, that the secre-
tary of the club, who was also one of the
underwriters, had not as yet paid his sub-
scription, was properly refused, as that fact,
if proven, would have been clearly immate-
rial.
The only remaining bill of exceptions re-
lates to the instructions. Those granted at
the request of the plaintiff are said to be ob-
jectionable, because they disregarded the is-
sue of fraud raised by the pleadings. We
find no evidence in the record legally suf-
ficient to warrant the submission of that
question to the Jury. It was testified by the
defendant that, when he was asked to sign
the agreement, he was told by the secretary
that the baseball club had made $8,000 the
previous year, but had to advance that sum
to the players. The secretary was then called
as a witness by the defendant, and stated
that he had no exact knowledge on the sub-
ject, but he believed that the club had lost a
little money the preceding year. This wit-
ness, upon whom the defendant relied for the
rather indefinite proof Just mentioned, testi-
fied also that he made no statement to the
defendant, on the occasion of his signing the
subscription, as to the club's earnings the
year before, except that it had not prospered,
and hence found it necessary to raise some
money by the proposed underwriting. As, ac-
cording to the defendant's own testimony,
he knew that the profits of the former season
had been expended, and that the club was In
actual need of funds to continue its opera-
tions, we can have no doubt as to the legal
insufficiency of the evidence offered in sup-
I>ort of the issue of fraud. The defendant's
prayers were properly refused. They are
based upon theories which we have discussed
In ruling upon other exceptions.
[11] One of the Instructions granted at
the plaintiff's Instance was to the effect that.
If the Jury should, find In favor of the plain-
tiff, their verdict sbonld be for the amount
due on the defendant's subscription, with in-
terest from August 15, 1915 ; that being the
date designated In the call for payment Ob-
jection is made to this instruction, because
it directs the allowance of interest from the
date mentioned, instead of leaving that ques-
tion to the Jury's discretion. It was held in
the case of Frank v. Morrison, 65 Md. 40S,
that:
"A eabscription for stock in a corporation, to
be paid for in installments, is not aucb a con-
tract as falls witbin the class of those on which
interest is recoverable as of right."
In thus ruling the court said that:
"While there are cases in which interest is re-
coverable as of right, such as bonds, contracts
in writing to pay money on a day certain, such
as bills of exchange or promissory notes, or
contracts for the payment of interest, or where
the money claimed has been actually ased, yet
with such exceptions it has long been the setued
practice of the courts of this state to refer the
question of interest entirely to the jury, who
may allow it or not in the shape of damages,
according to the equity and justice appearing
between the parties, on a consideration of all
the circumstances of the particular case as dis-
closed at the trial."
[12] By virtue of this rule of practice, a
granted prayer in the ca«e cited, directing
the allowance of Interest, was held to be er-
roneous. The same principle applies to the
instruction now ,tander consideration. It
should properly have left to the jury's dis-
cretion the question as to whether Interest
should be added to the principal sum claimed.
[13] Before the entry of the ai^peal an of-
fer was made by the plaintiff to the defend-
ant, as shown by the record, to waive the In-
terest allowed by the jury, and to accept set-
tlement on the basis Of a verdict and Judg-
ment for $&13.92, being the amount due on the
subscription, without interest This offer
does not appear to have been accepted. The
verdict was for the sum of $1,011.15, whidi
is evidently made up of the principal debt
and Interest thereon from the time it was
payable to the date of the trial. There is no
difiSculty, therefore. In s^aratlng the inter-
est from the total amount of the Judgment
By section 22a of article 6 of the Code Of
Public Civil Laws, as enacted by chapt^
248 of the Acts of 1914, it Is provided:
"If it appears to the Court of Appeals that a
reversible error affects a severable item or part
only of the matters in controversy, the court
may direct final judgment as to the remaining
parts or items thereof, and may direct a new
trial as to the said severable part or item only."
In pursuance of this provision the Judg-
ment will be reversed only to the extent of
the interest Item It includes, as to whldi a
new trial will be awarded, and as to the re-
maining amount of the Judgment. $943.92, It
win be affirmed, and directed to be finally en-
tered.
Judgment affirmed in part, and reversed in
part, and new trial awarded; the appellant
to pay the costs.
(UO Hd. 6es>
WILMEE V. PHILADEIiPHiA & READING
COAL & IKON CO. (No. 4.)
(Court of Appeals of Maryland. June 26, 1917.)
1. Injunction ®=>118(6) — AcTtoNS fob Ik-
junction— PtEAniNO — Exhibits.
Where plaintiff sued, as substituted trustee
of an insane cestui que trust under a will, for
an accounting for mmerals removed from land
in which the cestui que trust had an interest,
and to enjoin the further removal of minerals,
but did not file with bis bill copies of the will
and of the order appointing him as trustee, an
injunction could not properly have been granted,
as tlie court could not accept plaintiff's con-
struction of tbe will, e8i>ecially where it ap-
peared that defendant was daiming nnder a.
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WILMER V. PHILADELPHIA A READINa COAL A IROK 00.
639
lease purporting to be signed by the committee
of the estate cl the cestai que trust.
[Ed. Note.— For other cases, see Injunction,
Cent. Dig. § 242.]
2. Tbusts «=a251— Actionb bt Tbustkes—
Dbfenses— Payment to Cestui Que Tkust.
Where an insane cestui que trust of an in-
terest in land had received the benefit of the
lease, equity could not permit his trustee to
recover tor the removal of the minerals because
of some defect in the execution of the lease, or
because the payments, were made through the
committee of the estate of the cestui que trust,
and not through the trustee.
[Ed. Note.— For other cases, see Trusts, Cent.
Dig. f 357.]
8. Evidence *=»43(3) — Judicial Notice —
Pboceedinob in Otheb Suits.
The Court of Appeals is not required to ig-
nore facts appearing in its records in a different
case, to whidi plaintiff and defendant were par-
ties and in which the same lease was involved.
[Ed. Note.— For other cases, see Elvidence,
Cent. Dig. f 64.]
4. AfPEAi. and Ebbob ^s>518(5) — RacoBD —
Mattebs Included— Exhibits.
A statement giving the purport and sub-
stance of an exhibit filed with the bill was im-
properly included in the record, unless such
statement was itself filed with the bill.
[Ed. Note. — For other cases, see Appeal and
Error, Cent. Dig. {$ 2348-2350.]
6. Tbusts e=»237— Ratification or TJnau-
TBOBiZKD Actb— Ratification bt Coubt.
Where the same person was trustee under a
will creating a trust and committee of the es-
tate of the usane cestui que trust, and as trus-
tee he acquiesced in a lease executed by him as
committee and which should have been executed
as trustee, the court had power to ratify his act,
even after the bringing of a suit by his successor
as trustee for an accounting for miner^ re-
moved under the lefise.
[Ed. Note.— For other cases, see Trusts, Cent
IHg. a 325, 344.]
& Insane Pbbsons «s>71 — Leases — Enxoi
OF Ibbeoulabities.
If the court authorized the c(Hnmittee of an
insane person to execute a mining lease, the
informal execution of it, or its failure to recite
such authorization, did not justify a second
recovery of the rents and profits from the lessee.
[Ed. Note. — For other cases, see Insane Per-
sons, Cent. Dig. {§ 118-124.]
7. Insane Persons ^371— Leases— Vaxiditt
—Law GovEnNiNG.
The powers of a committee of an insane per-
son appointed in Maryland over property in
Pennsylvania, and the effect of a lease of prop-
erty in Pennsylvania executed by him, depend
upon the laws and decisions of Pennsylvania.
• [Ed. Note. — For other cases, see Insane Per-
sons, Cent. Dig. §§ 118-124.]
8. CouBTs €=>18 — JuBiSDicTioN — Location
or Real Pbopertt.
Where a substituted trustee under a will
brought a suit for an accounting for minerals
taken from land in which his cestui que trust
had an interest, and it appeared that the miner-
als were so taken under a lease executed for
the cestui que trust by a committee of his estate,
the title of the property under the lease was
so directly involved that a court of Maryland
conid not properly determine the questions in-
volved, the land being situated in Pennsylvania,
as the validity of the lease, and not the question
of accounting, was the primary question.
[Ed. Note.— For other cases, see Courts, Cent.
Dig. §$ 50-68.]
9. Tbusts «=>261 — Actions bt Tbustxb —
Pleading.
Where a substituted trustee under a will
brought suit for an accounting for minerals
taken from land in which his cestui que trust
had an interest between the years 1890 and
1899, and it appeared that plaintiff was him-
self one of the lessors in a lease of the land ex-
ecuted in 1899 and was presumably familiar
with the facts, be would not be permitted to as-
sert such a stale claim without alleging some
explanation of his own delay for two ^ears in
bringing suit, or for the inaction of his prede-
cessor for nearly a quarter of a century.
[Ed. Note.— For other cases, see Trusts, Cent
Dig. i 371.]
10. Tbusts ^9261 — Actions bt Xbubtkb—
Fisadino.
If plaintiffs cestui que trust had not receiv-
ed his share of the profits of the mining opera-
tions, or if plaintiff could not ascertain whether
the cestui que trust had or had not received
such profits, he should have so alleged in hia
bill.
[Ed. Note.— For other cases, see Trusts, Cent
Dig. f 371.]
11. Tbusts «=»261— Aonons bt Tbustkb —
Pleading.
Where, in a suit by a substitnted trustee of
an insane cestui que trust for an accounting for
minerals taken from land in which the cestui
que trust had an interest it appeared -that a
trustee and a committee were both named for
the cestui que trust, and that for a large por-
tion of the time the same person was named as
both, plaintiff could not rdj; on general allega-
tions as to himself and hia predecessor, but
should definitely allege whether the cestui que
trust's share, or any imrt of it, had been paid
to plaintiff's predecessor as committee, or to
any one else.
[Ed. Note.— For other cases, see Trusts, Cent
Dig. I 371.]
12. Mines and Minkbals iS=>52— Injunotioit
— cotbnants.
The taking of minerals from land will not
be enjoined at the suit of a party claiming only
a comparatively small interest in the land,
where an injunction might do the defendant
great injustice, and no good ground for such a
drastic proceeding appears, especially as the
remedy by injunction in favor of a cotenant is
si>aringly exercised.
[Ed. Note.— For other cases, see Mine* and
Minerals, Cent Dig. U 142-146.]
Appeal from drcnit Court No. 2 of Bald-
more City ; Carroll T. Bond, Judge.
Suit by Edwin M. WUmer, substituted trus-
tee, etc., against the Philadelphia & Reading
Coal & Iron Company. From a decree sus-
taining the demurrer and dismissing the bill,
plaintiff appeals. AfSrmed.
See, also, 124 Md. 599, 93 AO, 157.
Argued before BOYD, C. J., and BRISOOB,
THOMAS, URNER, and STOCKBRIDGE, JJ.
David Ash, of Baltimore, for appellant
Ralph Robinson, of Baltimore, for appellee.
BOYD, C. J. This is an appeal from a de-
cree sustaining a demurrer to, and dismiss-
ing, an amended bill of complaint, filed by
the appellant against the appellee. The
plaintiff alleges that he is the duly substi-
tuted trustee under the will of Jane H.
Nicholas for the purposes of the trust there-
in created, by an order of circuit court No.
AisFor other eaiM •«« game toplo and KBY-NUUBE31 In sU Key-Numbered DlgeeU and Indexea
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640
101 ATLANTIC BEPORTBR
Qii.
2 of Baltimore City, passed the 12th day of
July, 1013, and that the defendant (appellee)
Is a foreign corporation "engaged in the busi-
ness of mining, transporting, and selling coal
and other mine products, with offices located
In the city of Baltimore, and transacting
business In said dty"; that by the terms of
the will of Jane H. Nicholas, who was the
owner of a one-sixth fee-simple interest In
certain laud situated In Schuylkill county,
Pa., described in an indenture, a copy of
which Is filed, her estate was divided into
six equal parts, one of which devolved upon
the plaintiff as such substituted trustee, for
the benefit of Philip N. Nicholas, for the term
of his natural life, he being stiU living ; that
the signature of George C. Nicholas, the al-
leged committee of Philip N. Nicholas, to
said indenture, by his alleged attorney, was
unauthorized ; and that It was Incompetent
for said alleged committee so to lease said
land, without leave of the court first had and
obtained.
It Is then alleged that by the terms ot the
will an undivided fee-simple Interest in said
land had devolved upon the plaintiff, as ten-
ant in common with certain other cotenants
therein, the defendant being one of them;
that the defendant had occupied said land
from the Ist of January, 1890, the time of
the death of said Jane H. Nicholas, or prior
thereto, to the present time, mining the same,
and since said date opened new mines there-
on without the leave of the plaintiff, or any
predecessor of his in title, and received the
rents, issues, and profits thereof, which
amounted to a great sum of money, after the
deduction of all necessary expenses in the
operation of the mines, and used the same
for the purposes of its mining business, and
for the erection and occupation of works and
houses thereon, and has encroached upon the
rights of the plaintiff, its cotenant in the
premises, as herein more particularly set
forth, without leave, license, or warrant in
law, and without any contract or lease with
or on behalf of the plaintiff, or any prede-
cessor of him in said trust; that the de-
fendant has been and still Is mining large
quantities of coal and other products of said
land from mines already opened prior to the
1st of January, 1890, and prior to the date
of the alleged indenture, and from mines
opened subsequent to said dates, etc.
It is further alleged that defendant is
still using and otherwise disposing of the
coal and products of mining taken from said
land, as well as the land Itself, and has
erected buildings, tracks, and machinery
thereon, and has otherwise wrongfully used
said land continuously, year after year, to
the present time, "to the exclusion of your
orator from his rights therein and in utter
disregard of said rights, to the great loss and
damage of and to said trust estate, and the
depletion of the coal and other mineral de-
P(^ts upon sold land, and the value of said
land, and has unwarrantably leased and an-
dertnken to lease portions of said land for
other purposes than mining to strangers to
this plaintiff, who have no privity of con-
tract with your orator." It Is alleged that
plaintiff had demanded an accounting, bat
the defendant bad failed to account to bim,
or any predecessor of him, in the premises,
for any part of the rents, is.sues, or profits
of said land, or for any matter of account
whatsoever, since the 1st of January, 1890.
The bill prays for (a) an accounting;
(b) that defendant be decreed to pay the
plaintiff all sums found to be due on said
accounting; (c) that the defendant be en-
Joined "from further excluding your orator
from said land, and from further Interfering
with the rights of your orator In said land
held by this trustee in trust as aforesaid,
and from mining or removing any coal or
other property from said land; and from
further occupying said land adversely to the
interests of your orator" ; (d) that defendant
be adjudged to pay to the plaintiff such dam-
ages as he may have sustained from the
wrongful acts of the defendant; and (e) for
further relief.
[1] As there were not filed with the bill
copies of the order of court, by which the
plaintiff alleges he was appointed, and of
the will of Jane H. Nicholas, we have no in-
formation in the record of their contents be-
yond the allegations in the bill. The Judge
of the lower court could not properly have
granted the injunction prayed for without
having those exhibits before him. Miller's
Equity Procedure, f 682, i^. 689, 690 ; Miller
V. Balto. Oo. Marble Co., 52 Md. 642, 646.
Under the circumstances of this case it was
necessary to have before the court a copy of
the will, as the court is not authorized to ac-
cept the construction placed on it by the
plaintiff, especially as the copy of the lease
filed with the bill shows that it was signed
and executed by "George 0. Nicholas, Com-
mittee of the Ebtate of Philip Norboume
Nicholas." The amended bill seems to pro-
ceed <m the theory that the defendant and
the plaintiff are tenants in common. In addi-
tion to what we have quoted, it as alleged
that:
"Excepting as arising from gold cotenancy, no
contractual rights or privity exist or have ex-
isted between him, or his predecessor in title,
and said defendant."
It is contended by the appellee that the bill
in effect alleges an ouster. The "Indenture"
referred to, marked "Plaintiff's EJxhlblt A,"
is a lease dated January 1, 1900, to the ap-
pellee by a large number of persons. Includ-
ing "George C. Nicholas, Committee of the
Estate of Philip Norboume Nicholas, by his
Attorney in Pact, Cumberland Dugan." EM-
win M. Wilmer, individually, is also one ot
the lessors. By that lease the lessors un-
dertook to grant, demise, and let to the de-
fendant "the exclusive right and privllegt
of digging, mining, and carrying away an-
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Md.)
WILMER V. PHUiADEI^PHIA & READINO COAL A IROX CX>.
541
tbradte coal wholly at their own cost and
expense in and from their interest (being
two hundred and elghty-th'ree five hundred
and seTenty-Blxths part) of, in, and to" cer^
tain tracts in Schuylkill county, Pa., with the
right to deposit the slate, dirt, and refuse
thereon, for the term of 15 years, from the
Ist day of January, 1899, to the 31st day of
December, 1913. It is signed, sealed, and
acknowledged, and, when executed by attor-
neys in fact, it purports to be executed un-
der letters of attorney Intended to be record-
ed in Schuylkill county. Pa.
Although according to the bill the appel-
lant was not appointed substituted trustee un-
til the 12th of July, 1913, and he was Indi-
vidually a party to that lease, the first
prayer of the bill reads as follows:
"(a) That said the Pbiladeli^la ft Reading
Coal & Iron Company, defendant, may answer
this bill, and discorer and set forth in detail
the amount of tonnages of coal and other prod-
nets mined at, on, and from the land aforesaid,
by, on, or on account of or for the benefit of
■aid defendant^ as well as to discover and set
forth, in detail, the tonnage of each and every
grade of coal and other products mined as afore-
said, by said defendant, monthly since the month
of January in the year 1890, and to set forth
in detail all sums by it received from said coal
and other products, and each of them, from or
on account of sales, or in any other manner
whatsoever, from and since the 1st day of Jan-
nary, 1890, as well as all profits by it in any
way made daring the said time on said land, and
the products thereof, and each of tbem, and
account with your orator for all your orator's
interest in the rents, issues, and profits of said
land, so occupied as aforesaid, by said defend-
ant, from and since the 1st day of January in
the year 1890 to the present time."
Then follow the prayers for a decree re-
qnirtng the defendant to pay over all sums
found to be due on said accounting, for an
Injtmctlon, for damages, and for general re-
lief.
The argument of the case was devoted
mainly to the question whether relief should
be granted to the appellant in this state.
Inasmuch as the land in question is in Penn-
sylvania, the title to which the defendant
alleges is involved and is really the main
Issue. It would probably require a large
force of clerks to furnish the Information de-
manded by the prayer quoted above, and,
although it is true that the appellant was
not appointed trustee until July, 1913, he
was one of the lessors in the lease referred
to, and presumably had every opportunity to
know what was received by the lessors, and
wbat each was entitled to. The lease con-
tains many provisions' for the protection of
the lessors, amongst others one requiring the
company to furnish them, on or before the
10th of each month, a correct statement of
tbe number of tons of coal mined and shipped
from the premises during the previous month,
otbers permitting them, their agents, engi-
neers, and inspectors, at all times to enter
the mines, providing for distress for rent in
arrears, for re-entry, eta
[2] While there is a genend denial of the
defendant having obtained any rights under
the lease from the plaintiff or "any predeceS'
sor of his in title," It is not alleged or con-
tended that Philip N. Nicholas did not get the
full benefit of what he was entitled to. It
would be a monstrous injustice to hold the
appellee responsible for the share coming
to Philip N. Nicholas during the many years
the defendant was operating under the lease,
if in fact he received the benefit of it Can
it be seriously contended that if a number
of tenants in common make such a lease as
this, and one cotenant does not join in it,
but accepts his share, that he could subse-
quently recover it, because he did not unite
in tbe lease, In a court of equity? No one
could pretend that one capable of acting In
his own right could thus bring reproadi up-
on the administration of Justice, and would a
court of equity, having charge either of a
committee of a lunatic appointed by It, ex
of a trustee acting for such a person, or
both, be required to allow another recovery
of such share, although it was actually re-
ceived and used for the benefit of the ward
of the court, merely because there was some
defect in the execution of the instrument?
Of course not; on the contrary, it would be
the manifest duty of the court to protect
a lessee from the attempt of a trustee ap-
pointed by it to again collect the amounts
already paid, If the ward of the court,
whether a lunatic or a mere beneficiary un-
der a trust, had In fact already had the
benefit of the amount due, even If it was
paid through a committee and should have
been through the trustee, unless there was
something more shown than is in this bUl.
Although it is not before us on this de-
murrer, take for illustration what the learned
Judge below said in his opinion on the de-
murrer to the original bill. While he did
not feel authorized to consider them in pass-
ing on the demurrer, he spoke of certain
facts which the counsel for the parties agreed
upon in the course of the argument, one of
which was that the same person who was ap-
pointed to hold the interest of Philip N. Nich-
olas as committee was trustee under tbe
will; "that he never acted as trustee, but
that under the title of committee only he ex-
ecuted a mining lease to the defendant, and
during the 20 years of occupancy by the lessee
received, as committee only, a regular ac-
counting of rents and profits under the lease,
from all three seventy-seconds in which the
lunatic had an interest." If that was the
case, is there any principle of law, equity,
or good morals which would permit the ap-
pellant to again collect from the appellee the
share of Philip N. Nicholas, if It be con-
ceded that his trustee did not collect It as
such, but did as committee? It may very
properly be urged that the bill does not so
admit, but it nowhere alleges that the ap-
pellee has not paid to some one, and only
refers to the appellant and "his predeces-
sor in title" as not receiving it, by which we
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542
101 ATLANTIC REPOBTBB
(Hd.
understand the bill to mean tbat plaintUTs
predecessor as such did not unite In the lease
or receive the money. In Wllmer v. Phila.
& Reading G. & I. Co., 124 Md. 599, 93 AtL
157, the Coal Sc Iron Company filed a bill of
interpleader against the present appellant
and the Baltimore Trust Company as com-
mittee of Philip N. Nicholas. The Trust Com-
pany had been substituted as such committee.
The subject-matter of the bill was a fund
derived from the interest in the coal lands
owned by Philip N. Nicholas as one of the
heirs of 0. O. Nicholas, who was a party to
the lease, and Wllmer, trustee, sought to
bring into that case the Interest of Philip N.
Nicholas in those lands under his mother's
will. Wllmer there contended that the Coal
A Iron Company was not an indifferent stake-
holder, because It "has paid the revenue since
the death of C. O. Nicholas to some one," and
it was nowhere suggested that all that was
due had not been paid to some one for the
benefit of Philip N. Nicholas. The court held
however, that only the fond in the hands of
the i>laintiff could be considered under the
bill of interpleader. In the absence of some
allegation to the contrary, it may be fair-
ly inferred that Philip N. Nicholas got the
benefit of all he was entitled to, as Cumber-
land Dngan was not only the attorney in
fact for George C. Nicholas, committee, but
for the other lessors in that lease, and was
■ lessor himself.
(3, 4] In the Interpleader case (124 Md. 699,
93 Atl. 157) a letter from Wllmer, trustee,
addressed to the Coal & Iron Company, was
filed, in which it was stated tbat Oeorge C.
Nicholas, surviving trustee of Philip N. Nicho-
las under the will of Jane H. Nicholas, had
been removed and that he had been appoint-
ed trustee in his place. That letter bears
the same date as the order appointing him,
and although, as we have already pointed out,
the order was not filed with the bill, as it
should have been, we cannot be required to
ignore the fact which appears in the records
of this court in a case to which the present
appellant and appellee were parties, and in
which the very lease in question was involv-
ed. Indeed, tn this record there Immediately
fbllows the amended bill of complaint a state-
ment which is said to give the purport and
substance of Exhibit A, and In it reference Is
made to the indenture of lease printed in the
record of this court in the case in 124 Md.
599, 93 Atl. 157, thus referring us to that
record, and, moreover, we assume that the
statement was filed with the bill, as other-
wise it ought not to have been in this record.
Beyond all that, there is in the record in this
<a8e a copy of the indenture referred to,
which shows the necessity of explaining such
matters as we have referred to.
[S] Assuming, then, that George C. Nicholas
was both trustee under the will for, and com-
mittee of, Philip N. Nicholas, it cannot be
doubted that, as he executed the lease as com-
mittee, be must be held to have acquiesced
In it, even if it be conceded that he ought to
have executed it as trustee, and not as com-
mittee, or was not duly authorized to exe-
cute it as committee. The court certainly
had the power to ratify his act as such trus-
tee, and presumably he duly accounted for
the funds received by him, as there is no
allegation or suggestion to the contrary. If
the court having Jurisdiction of the trust,
which is the court in which the bill was filed,
is satisfied that it would have ratified the
action of the trustee if It was necessary for
the trustee to have that done, and that the
cestnl que trust got the benefit of what he
was entitled to, it could and doubtless would
even now do so. It is said in 38 Cyc. 106, in
the article on Tenancy in Common, written by
the learned attorney for the appellant, that:
"Tenants in common, being owners of several
interests, may ratify the acts of each other or
acquiesce therein; and generally such ratifica-
tion or acquiescence with full knowledge of
material facts is effective, and after such rati-
fication or aoiuieacence the ratifying parties and
their respective grantees are estopped from de-
nying the effect thereof."
See, also, 38 Cyc. 104; 7 R. O. I* 876, 877,
and note to Da Rette v. Miller, Ann. Cas.
1913D, 1165.
[6-S] By reason of the failure of the ap-
pellant to file the will, we cannot determine
the powers of the trustee under it; but the
powers of a court of equity, under sections
114 to 123 of article 16 of the Code of Pub-
lic General Laws of 1904, in reference to
persons non compos mentis, are very broad
and comprehensive, although a sale, lease, or
mortgage of the estate of a person non cmor
pos mentis by his committee is safeguarded
by a number of provisions for his protection.
The bill does not in terms allege that the
court did not authorize the committee to
make the lease, and, if it did, the Informal
execution of it, or failure to recite the fact tn
the lease, would not justify a second recovery
of the rents and profits. It is true that the
bill alleges that the signature of George C
Nicholas, etc., "is entirely unauthorized" ; but
why it is we are not informed by the bilL
How far a committee appointed in this state
can exercise powers over property in Pennsyl-
vania must depend upon the laws and deci-
sions of that state, and it would be for the
courts of that state to determine the effect of
such a lease as this, signed by a committee
or his attorney in fact, If he was both trustee
and committee for Philip N. Nicholas, as he
seems to have been. It would seem, there-
fore, to be clear that the title of this prop-
erty, under the lease, is so directly Involved
that a court of this state could not properly
determine the questions which would be nec-
essary in order to do justice to the parties.
The question of accounting is not the primary
one, for if the lease be held to be valid, or
the rights of the defendant protected under
the theory suggested by us above, or for oth-
er reasons satisfactory to the Pennsylvania
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Md.)
WARFIELD ▼. VALENTINB
543
courts, there will be no occasion for an ac-
counting under tbis bill.
[(, It] We have thus only discussed the
demurrer In connection with the lease, for
although the bill undertakes to go back to
January 1, 1890 — 0 years before the lease
was to operate, and over 25 years before
the original bill was filed — without something
more definite as to what transpired between
the Ist of January, 1890, and the 1st of Jan-
nary, 1S99, when the lease began to operate,
than we find In this bill, a court of equity
would not be Justified in permitting a trus-
tee under Its jurisdiction to thus delve into
the past, much less In granting relief to such
a stale claim. It Is true that the plaintifT
was not appointed substituted trustee until
a little over 2 years before the original Mil
was filed, but the lease filed as an exhibit
shows that he was one of the lessors of the
land, and presumably he was familiar with
the facts, and yet he makes no explanation
of his own delay of 2 years, or of the inaction
of nearly a quarter of a centniy by his prede-
cessor. If his predecessor ought to have re-
ceived the share In question as trustee, and
did not in that capacity, but did as com-
mittee, and properly accounted for it, what
we have said is sufficient to show that in our
opinion the plalntift should not be permitted
to recover, and if there was no such receipt,
or the appellant could not ascertain whether
or not there was, he should have so stated in
Ills bill. Frankness in a court of equity de-
manded at least that much.
[11] So as to what, if anything, became
due between the time of the expiration of
the lease, on December 81, 1913, and the &!•
Ing of the bill, we are not sufficiently In-
formed how the defendant was holding, but
the allegations are of the most general and
Indefinite character. We do know from
the case in 124 Md. 599, 93 Atl. 157, that
the Baltimore Trust Company was at some
time appointed committee of Philip N. Nicho-
las; but whether his share, or any part of
It, has been paid to that company as commit-
tee, or to any one else, we are not Informed
by the bUl, although in 124 Md. 599, 93 Atl.
157, in his cross-bill, the appellant alleged
that the Trust Company "under color of Its
alleged committeeship has wrongfully receiv-
ed and accepted money due to blm as trus-
tee." Frankness is demanded In all cases,
but peculiarly so in one such as tliis, where
tbere is enough before the conrt to inform
It that a trustee and a committee were named
for the same person, and that at least for
a large portion of the time the same person
vna named as both. It Is not enough for
one who has been substituted for one of the
places to rely on general allegations as to
blmself and his predecessor, especially as,
v^hen one person occupies two positions of
trust for the same person, and receives money
for bis cestui que trust or ward, presumably
be receives it in the proper capacity, in the
absence of something to the contrary, and,
if he did not, but applied it to the use of bis
cestui que trust or ward, a court of equity
could readily adjust and correct the error,
so as to protect all parties entitled to pro-
tection.
[12] That under the circumstances an in-
junction should not have been granted would
seem clear. There is only Involved a com-
paratively small interest in the land. To en-
join the defendant from prosecuting its' busi-
ness on that land might do great injustice,
and there does not appear In the bill any
good ground for such a drastic proceeding.
The remedy by injunction in fftvor of a co-
tenant is sparingly exercised. 88 Cya 97, 98;
17 Amer. & Eng. Bncy. of Law, 705. If the
contention of the appellee be correct that the
bill alleges an ouster, there wonld be stlU
less ground for the relief asked; but we
have not thought it necessary to discuss that
question, as we are satisfied that the plain-
tiff is not entitled to relief under this bill,
for the reasons we have stated.
Decree affirmed ; the appellant, individual-
ly, to pay the costs.
(UO Md. 587)
WAKFIEIiD ▼. VALENTINE et ai
(No. 7.)
(Court of Appeals of Maryland. June 20, 1917.)
1. Afpeai, ANn Ebbob «=>837(3)— Condition
OK Catjsh!— Pendency or Pbocbedingb in
LOWEB CODBT.
On bill for specific performance, plaintiflTs
appeal from an ex parte order substituting ad-
miiustrators pendente lite on account of death
of one of the parties defendant is premature,
where notice of such order was served on plain-
tiff, and he filed petition against such adminis-
trators, and thereafter petitioned for rescission
of the order, which petition was pending at the
time of the attempted appeal.
[Ed. Noto.— For other cases, see Appeal and
Error, Cent Dig. i 1877.]
2. Appkai. and Errob €=:378(1>— Obdebs AP'
FEAIJIBLE — FiNALITT OF DBTEBMINATION.
Aji order setting for hearing a motion to dis-
solve an injunction is not within the provi-
sions of Code Pub. Civ. Laws, art. 5, i 26,
authorizing appeals from final decrees or from
orders in the nature of final decrees.
[Bid. Note.— For other cases, aeo Appeal and
Error, Cent Dig. SS 426, 470, 472.]
Appeal from Circuit C!ourt, Baltimore (boun-
ty; Frank I. Duncan, Judge.
"To be officially reported."
Bill for specific performance by S. Davies
Warfield against John R. Valentine and oth-
ers. £>om an order making administrators
pendente lite parties defendant, and from an
order setting for hearing defendants' motion
to dissolve an injunction, plaintiff appeals.
Appeal dismissed.
Argued before BOYD, 0. J., and BRISCOE,
THOMAS, URNER, and STOCKBRIDGE, JJ.
John B. Demlng and George Whiteloclt,
both of Baltimore (Whitelock, Demlng &
Kemp, of Baltimore, and T. Scott OSntt, of
4ts»For oUi«r cans we mm* topic and KBY-NUUBER in all Key-Numbered Diseata and Udezea
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544
101 ATLANTIC REPORTER
(Md.
Towson, on the brief), for appellant. Osborne
I. Yellott and Frank Gosnell, both of Balti-
more (Marbury, Gosnell & Williams, of Balti-
more, on the brief), for appellees.
THOMAS, J. This is the second appeal
In this case; On November 1, 1915, a bill of
complaint was filed in the circuit court for
Baltimore county by the appellant against
Thomas H. Emory for specific performance
of an -alleged contract by which Emory sold
to the plalntifT two farms or tracts of land
In Baltimore county, containing in the ag-
gregate 775 acres of land, more or less. John
R. Valentine was made a party defendant in
the bill because of the purchase by him of
the property through an agent of Emory, with
the view, as alleged in the bill, of defrauding
the plaintUF, and because of an alleged under-
standing between Valentine and the plaln-
tifT that, if either of them purchased the
property, "the other should be considered as
having a share or interest In the same." The
bill prayed (1) for the specific enforcement
of the alleged contract between the plaintiff
and Emory; (2) or, in the event the court
should refuse that relief, that a decree be
passed declaring that Valentine purchased
the property In trust for himself and the
plaintlft; and (3) that Emory and Valentine,
and their servants, agents, etc., be enjoined
until the further order of the court from
taking any steps to carry out the contract
of sale between them. An order restraining
and enjoining the defendants as prayed In
the bill was passed by the court on the day
the bill was filed, and thereafter the defend-
ants filed their answer, admitting the con-
tract of sale between the defendants, but
denying the other averments upon which the
plaintiff relied for relief.
The proceedings in the case from the filing
of the bin to the date of the order for the
present appeal are set out In the record of
the former appeals of Theodore W. Forbes
and Osborne I. Yellott, administrators pen-
dente lite, and John R. Valentine, January
term, 1917, and are referred to in the opinion
of this court filed Mardi IS, 1917.
On the 6th of September, 1916, Theodore
W. Forbes and Osborne I. Tellott, administra-
tors pendente lite, filed a petition In the case,
alleging that Thomas H. Emory bad died at
Saranac Lake, N. Y., on the 15th of August,
1916, leaving a paper writing purporting to
be his last will and testament; that before
the will was admitted to probate by the
orphans' court of Baltimore county a caveat
thereto was filed by an uncle and two aunts
of the deceased, as his heirs at law and next
of kin ; and that the orphans' court of Balti-
more county bad appointed the petitioners
administrators pendente lite, with authority
to Intervene in this case, and praying the
court to pass an order making them parties
defendant. On the same day the court be-
low passed an order making them parties
defendant in the case, "provided that a copy
of this order shall be served upon the plaln-
tifT, or one of his counsel of record, and al-
so upon John R. Valentine, or his counsel of
record, on or before the 12th day of Septem-
ber, 1916." A copy of the order was accord-
ingly served on coimsel of record for the
plalntifT and on coimsel for the defendant
Valentine on the 6th of September, 1916.
On the 8th of September, 1916, the plain-
tiff filed a petition against the administra-
tors pendente lite and John R. Valentine, in
which, after stating that Thomas H. Emory
had died, and that a caveat had been filed to
the paper purporting to be bis last will and
testament, he alleged that It was necessary
in order to preserve the property that the
farm be operated, that Forbes and Yellott
should not be permitted to assume the con-
trol and management of the same, and that
some competent and disinterested person
should be appointed receiver to take charge
of it; and thereupon the court appointed the
Safe Deposit & Trust Company of Baltimore
receiver, to take possession of and to manage
and operate the farm "imtil It shaU have
been determined who is entitled to the owner-
ship thereof."
On the 21st of October, 1916, the court be-
low passed an order setting a motion of the
defendants to dissolve the Injimction there-
tofore granted for hearing on the 28th of
October, 1916, and requiring a copy of the
order to be served on the plaintiff on that
day. On the 26th of October, 1916, the plain-
tiff filed a petition alleging that the ordw
of September 6, 1916, making the administra-
tors pendente lite parties defendant, was
passed "upon the ex parte application" of the
said Forbes and Yellott; that "pending the
determination of the controversy concerning
said supposed will, it is impossible to deter-
mine who win be the holders of the legal
title to said real estate, from whom a con-
veyance must be made to your petitioner, in
the event that this court shall decree the
relief prayed In the bill of complaint, and
therefore until the determination of said con-
troversy It is also impossible for this court
to ascertain who are sufficient parties defend-
ant in the room and stead of said decedent" ;
that the plaintiff was not notified of the pas-
sage of the order of the orphans' court of
Baltimore coimty authorizing the adminis-
trators pendente lite to intervene In this
case, "nor of the filing of any application or
petition therefor, nor was be notified of the
application of said Yellott and Forbes to be
made parties hereto, nor of the passage of
the order aforesaid making them parties un-
til after the same had been passed"; that
he had no opportunity to be heard in refer-
ence thereto, and that he "Is advised that tlie
passage of said order by this court was im-
provident and Inadvertoit." The petition
prayed for the "rescission" of the order o*
September 6, 1916, and that the administra-
tors pendente lite be dismissed as parties
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WABFIBLD v. VALSaraiNB
648
defendant The court passed an order set-
ting tbe petition for hearing on the 28tb of
October, 1916, and on that day, and while
the petition of the plaintiff for a "resdaslon"
of the order of September 6, 1916, making tb«
administrators pendente lite parties, and the
motion to dissolve the Injunction, were still
pending in the court below, the plaintiff filed
his order for the present appeal from the or-
der of September 6, 1916, and the order set-
ting the motl(n to dissolve the injunction
for hearing.
In the case of Baldwin v. Mitdiell, 86 Md.
379, 38 AtL T76, Judge Page, speaking for
this court, said:
"There are no provuions in our statutes de-
fining the powers of an administrator pendente
lite, "or establishing particular and exception-
al rules for the discharge of his duties, as in
the case of an administrator ad colligendum.
Sections 61 to 64 The intention of our law,
therefore, seems to be dear that be must be sub-
ject to the same general rules as control gen-
eral administrators. Within 12 months from
the date of his letters, he must render his first
account, and, if necessary, an additional ac-
count every 6 months thereafter. If his letters
bo revoked before the 12 months expire, he must
then exhibit his account without delay, and hand
over to the executor or new administrator all
the property of the decedent in bis hands. He
may sue for the recovery of the assets and bo
sued for debts due from the decedent; and if
such suits are still pending when his letters are
revoked, tho new administrator may prosecute
or defend them. Section 69. With powers and
duties such as these, no sufficient reason can be
•sugned why he shall not be required to dis-
charge the decedent's debts, as other adminis-
trators are required. We are of upinion, there-
fore, that our statutes do not contemplate such
an administrator as having been appointed for
the special purpose only of taking care of tho
assets."
It Is said In Miller's BSqulty Procedure, { 64:
"In eeaes of specific performance the general
mie is that only those persons are proper par-
ties who are parties to the contract or those
who have been substitnted in their place as
executors or heirs. This general rule, however,
has been somewhat enlarged in its scope. If a
purchaser assigns his entire interest in the
contract of purchase, his assignee may sue the
vendor; tho assignor Is a proper party to such
a suit. If the vendor conveys the ijroperty to
a purchaser with notice, the latter is a neces-
sary party defendant. • • • If the purchas-
er be dead, and the vendor sues for specific per-
formance, the personal representative of the
purchaser must be a party, because the personal
assets aro primarily liable for the debt; and
the heirs or devisees also, because the convey-
ance must be made to them. If the purchaser
dies and the heirs of the purchaser sue the
vendor, the personal representative of the pur-
chaser shonld also be a party, for the heirs are
mititled to have tho contract paid out of the
personal estate. If, on the other hand, the
vendor be dead, and ids personal representatives
■cek a specific performance against the pur-
dtaser, the heir or devisee of the vendor should
be a party, for he alone is competent to convey
title. And if the vendor bo dead, and the pur-
diaaer seeks a specific performance, the heirs
or devisees of the vendor should be made par-
ties."
The same rules are recognized In 1 Dan-
leU's Ch. P. & P. (6th Am. Ed.) star p. 285,
where it is further said:
"Where tho bill is filed to redeem a mortgage
«sainst the heir of a mortgagee^ the persoiud
101A^-«S
representative must also be made a party to th*
suit, because, although the mortgagee upon pay-
ing the principal money and Interest has a right
to a reconveyance from the heir, yet tlie heir
is not entitled to receive the money."
In the case of Stewart v. Orifflth, 217 U.
S. 323. 30 Sup. Gt 528, 54 U Ed. 782. 19 Ann.
Gas. 639, where the bill was filed by the ex-
ecutor of a deceased vendor for a spedflc per-
formance of a contract for the purchase of
certain land, the Supreme Court said:
"It is urged that the probate of the will does
not establish it conclusively as to real estate,
and that the heirs might attack it hereafter;
but it is answered that by the contract the land
had become personalty as against them, and
that therefore so far as this land is concerned
the will is safe from collateral attack. More-
over, as it is clear that the estate has and is
subject to a binding contract, it Is hard to see
how it matters to the heirs who does the formal
acts of accomplishment so long as he is ac-
countable to the orphans' court/'
Section 95 of article 16 of the Gode pro-
vides for the appointment of a trustee to exe-
cute a deed decreed to be executed (Hollander
V. Central Metal Co., 109 Md. 131, 71 Atl. 4^
23 L. R. A [N. S.] 1135), and the general rule
Is that. In proceedings for the sale of real es-
tate, all persons who by any possibility may
be entitled to an Interest are proper parties.
MlUer's Equity Pro. | 67; Handy v. Waxter,
75 Md. 517, 23 AU. 1035. So if It be conceded
that the heirs at law, devisees, or executor of
a deceased vendor are necessary parties to
enable the court to decree spedflc perform-
ance of a contract of sale of land at the suit
of the purchaser, the authorities referred to
would seem to Indicate that, pending a caveat
to an alleged will of the deceased vendor, the
administrator pendente lite Is at least a prop-
er party, not because he Is authorized under
section 81 of article 16 of the Code to conv^
the real estate, bat becanse he would be en-
titled to receive the purchase money, If spe-
dflc performance of the contract Is decreed
pending the caveat
[1] But we are not called upon in Oils case
to pass upon the right of the administrators
pendente lite to be made parties defendant
or to express an opinion in regard to the
propriety of the order of September 6, 1916,
making them parties. It appears from the
return of the sheriff that a copy of the or-
der was served on counsel for plaintiff oa ths
day the order was passed. On the 8th of
September the plaintiff flled a petition
against the administrators pendente lite and
Valentine for the appointment of a receiver
to take charge of the property, and no objec-
tion was raised to the order making thenk
parties until the petition of October 26, 1916,
was flled by the plaintiff, praying that the
order be rescinded. After having Invoked the
Jurisdiction of the court below to review and
resdnd its order of September 6, 1016, passed
without objection, the plaintiff, In effect re-
fused to submit to its Jurisdiction, and, aban-
doning his petition, enters an appeal for the
purpose of having the order reviewed by thip
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646
101 ATLANTIC JiEPORTER
(Md.
conrt The course pursued by the plaintiff is
certainly not In accord with the usual prac-
tice In this state, and is one, we think, that
should not receive the approval of this court
Section 4 of article 16 of the Code provides
that:
"Any representative of a deceased party may
appear and suggest in writing the death of the
party under whom he claims, and be made a
party in place, of the person so dying, • • •
on giving such notice to the opposite party as
the court may direct."
And section 36 of article 5 of the Code pro-
vides:
"On an appeal from a court of e<]uity, no
objection to tho competency of a witness, or
the admissibility of evidence, or to the sufficien-
cy of the averments of the bill or petition,
* * * shall be made in the Court of Appeals,
unless it shall appear by the record that such
objection was mado by exceptions, filed in the
court from which such appeal shall have been
taken."
In the case of Carrlngton v. Basshor Co.,
121 Md. 71, 88 Atl. 52, this court said:
"The jurisdiction of a court of equity in this
state, upon proper averments, to appoint receiv-
ers for a corporation, is not and cannot be ques-
tioned, and it is therefore obvious that, had the
Basshor Company appealed from the orders re-
ferred to, independent of the fact that it con-
sented to the orders, it would not have been
allowed to object in wis court to the sufficiency
of the averments of the bill or to tho jurisdic-
tion of the court below. • • • Upon what
principle [then] can the appellant escape the
requirements of the rule? He was not a neces-
sary party to tho bill, and not having been
made a party, it is true that, so far as the rec-
ord shows, he did not have an opportunity to
resist the relief prayed prior to the orders of
which he now complains. But after these
orders were passed ho was, upon his own ap-
plication, made a party defendant, and if he
had such an interest in the subject-matter of
the suit as entitled him to defend it, and he
desired to mako the defense stated in his an-
swer, before taking his appeal, he should have
applied to the court below for a rescission of
the orders upon those grounds. • • • Had
he done so, and had the • • • court adopted
his view of the bill, there would have been no
occasion for this appeal. To permit him to
make the obji-ctions now would require this
court, in the ftice of the statutes and the rules
stated, to consider questions that were not rais-
ed or determined in the lower court."
As the plaintiff had notice of the order
complained of in this case, and as the lower
court, because of the present appeal, has not
passed upon his objections to the petition of
the administrators pendente lite and the or-
der passed thereon, we think, upon the prin-
ciple announced In Carrlngton y. Basshor Co.,
supra, that bis appeal is premature.
[2] It needs no citation of authority to
show that the order of October 21, 1916, set-
ting the motion to dissolve the injunction
down for bearing, is not within the provisions
of section 26 of article 5 of the Code, author-
izing an appeal from a final decree, or an or-
der in the nature of a final decree, and it
follows from what has been said that the ap-
peal must be dismissed.
Appeal dismissed, with costs.
010 Md. au)
STATE, to Use of SCOTT et al. ▼. WASH-
INGTON, B. & A. ELECTRIC
R. CO. (No. 10.)
(Court of Appeals of Maryland. Jnne 28, 1917.)
1. Appeal and Ebrob «=s>1058(2)— Harmuss
Erbob— Exclusion or Evidencb.
In an action against a carrier for death of
a passenger, the exclusion of evidence as to the
condition of deceased's health prior to the date
of the injury was harmless, where a witness was
permitted without contradiction to testify as
to the condition of deceased's health on the day
of his death and for two weeks prior thereto.
[Ed. Note. — For other cases, see Appeal and
Error, Cent. Dig. iS 4195, 4201.]
2. Cabbibbs 4=9369, 370 — Injuries to Per-
sons on Track— Pboxiicate Cause.
Where passenger was forcibly ejected from
car by carrier's servant, and the injury from
which be died was received at a distance of more
than a mile from the point of his ejection, and
was suffered by reason of his being struck by an-
other of carrier's trains, held, bis ejection was
not the natural and probable consequence of de-
fendant's wrongful act in ejecting him, but that
the proximate cause of his injury was his want
of care in being upon defendant's tracks.
[Ed. Note. — For other cases, see Carriers,
Cent. Dig. gi 1459, 1483, 1485-1487.]
S. Carriers ^=»370— Action for Injukieb—
Injury op Passenoeb Ajteb BBii«a
BIJECTED.
A passenger ejected from car, who thereaft-
er walks along defendant's tracks, assumes the
risk of its perils.
[Ed. Note.— For other cases, see Carrieia,
Cent. Dig. { 1459.]
Appeal from Circuit Court, Prince George's
County ; John P. Briscoe, B. Harris C!amaller
and Fillmore Beall, Judges.
"To be officially reported."
Action for death by the State of Maryland,
to the use of Eleanor Sanford Scott an'd an-
other, Infants, against the Washington, Bal-
timore & Annapolis Electric Railroad C!om-
pany. Judgment for defendant, and nse
plaintiffs appeal. Affirmed.
Argued before BOYD, O. J., and BURKE.
THOMAS, PATTISON, URNBR, and STOCK-
BRIDGE, JJ.
Leonai'd J. Mather and Robert W. Wells,
both of Washington, D. C. (Prank M. Stephen,
of Upper Marlboro, on the brief), for appel-
lants. George Weems Williams, of Baltimore
(T. Van Clagett, of Upper Marlboro, on the
brief), for appellee.
BURKE, J. The appeal In this case was
taken from a judgment rendered In favor <rf
the appellee in the circuit court for Prince
George's county under an instruction of the
court by which the case was withdrawn from
the consideration of the Jury and a verdict
directed for the defendant.
The suit was brought in the name of the
state, for the use of Eleanor Sanford Scott.
the widow of Oscar Scott, and his Infant son,
Kenitb Walter Scott, to recover damages
for the death of the husband and ftither, who
wna alleged to have been killed by the negll-
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STATE V. WASHINGTON, B. A A. ELECTRIC R. CO.
547
gence of the defendant. The record contains
two exceptions taken by the plaintiff during
the course of the trial ; the first relating to a
ruling on evidence, and the second to the
grantinK of the prayer submitted at the close
of the plaintiff's case, withdrawing the case
from the consideration of the Jury. The dec-
laration contained two counts; but there
was no evidence to support the second count,
and it Is conceded that no recovery could
have been had under that count
The defendant is a common carrier of pas-
sengers for hire, and owns and operates an
electric railway between the city of Wash-
ington, In the District of Columbia, and Bal-
timore city, in the state of Maryland. Oscar
Scott, the deceased, l>oarded the defendant's
car as a passenger at White Bouse Station,
Fifteenth and H streets, Washington, for
Dodge Station, on the defendant's line, on
July 1, 1915, about 7 :20 p. m., and was Isilled
at Sprlngman's Crossing, Md., by a car of the
defendant running from Baltimore to Wash-
ington. The alleged breach of duty on the
part of the defendant, upon which the suit is
based. Is specifically set out In the first count
of the declaration. After stating that the de-
ceased was a passenger upon the defendant's
cars, and that it was its duty to exercise the
highest degree of care towards his safety, it
alleged that :
"Said defendant railroad company became and
was negligent, in that on the day aforesaid, aft-
er said plaintiff's intestate, who had been drink-
ing intoxicating liquor, had purchased a ticket
entitling him to safe transportation from this
city to a place or station in the state of Mary-
land called Dodge Park, and to fit, proper, and
adequate protection while he, said plaintiETs in-
testate, was being conveyed to his said destina-
tion, and after said plaintiff's intestate had
been placed upon one of the defendant com-
pany's cars by said defendant company, by and
through its servants, agents, and employes, and
had taken his seat therein, and after said car
had been started from Washington for the desti-
nation of said plaintiff's intestate at said Dodge
Park Station, in the state of Maryland, as
aforesaid, but long before it had reached there,
said defendant company, in violation of the duty
owed said plaintiff's intestate, as aforesaid, who
waa behaving himself in a seemly and proper
manner, by and through its conductor, servant
or servants, or agents then and there in charge
of said car, maliciously, willfully, and wantonly
assanlted, beat, kicked, and grievously wounded
and injured said plaintiff's intestate, without
cause therefor on his part, and violently eject-
ed and threw said plaintiff's Intestate from its
said car, whereby and by reason of which said
treatment, in the then condition of said plain-
tiCTs intestate, he was so dazed, disabled, and
injured as-that, after being thus ejected from
said defendant company's car, he was in a help-
less condition, and wandered aimlessly about
mid defendant company's tracks and right of
way in his effort to find and go to his home at
said Dodge Park, in the state of Maryland, as
aforesaid, until later he was struck and killed
by another of said defendant company's cars,
-which was south-bound and on its way from
Baltimore to the city of Washington and Dis-
trict of Columbia."
Assuming, as contended by the plaintiff,
that the expulsion of the deceased from the
defendant's car in the District of Columbia
fwas unlawful, and that he was assaulted and
maltreated by the defendant's agents In
charge of the car, the important legal ques-
tion presented by the appeal is this: Does
the record contain any evidence legally suffi-
cient to show or tending to show any legal
connection between the negligence alleged
and the death of Scott? Stated in another
way, did the plaintiff offer any evidence le-
gally sufiident to show that there existed the
relation of cause and effect between the neg-
ligence alleged and the death of Oscar Scott?
The determination of this question depends
upon an accurate statement of the material
facts appearing in the record. In the last
analysis, questions of proximate and remote
cause must depend on the facts of each par-
ticular case. 7 Am. & Eng. Ency. of Law
(2d Ed.) 1381.
Oscar Scott was 32 years of age. He was
a carpenter, and was familiar with the de-
fendant's road, having been employed by the
company as an Inspector of ties. He lived
near Dodge Station, Prince George's county.
Shortly before his death he was working at
his trade and was making $4 per day. On the
morning of July 1, 1915, he left home and
went to Washington. Mrs. Scott, his widow,
testified that he did not go to Washington
that morning to work, as he was sick; that
he hod been home two weeks. The record con-
tains nothing as to Scott's whereabouts from
the time he left home until be boarded the
car on his return trip at about 7 :20 p. m.
He took a seat in the smoking compartment.
He was sick and vomited in the car. A wit-
ness said he was "sick at the stomach."
There were four occupants of the smoking
compartment, viz., Scott, a colored man, and
two white men. After Scott vomited, the two
white men went Into the passenger compart-
ment
W. C. Robinnett the motorman, testified:
That he saw Scott on the car; that as the
car came along Bennings Race Track the con-
ductor came out front and said to him:
"That he had a passenger back there that
wouldn't pay his fare, and that he had been
drinking and wouldn't pay bis fare, and he said:
'Stop up there; I want to put him off.' That
was along at Bennings ; it was along about Ben-
nings Race Track. So when we got to Minne-
sota avenue I stopped the car and waited a
minute, sitting in my cab, and I heard a com-
motion out in the baggage room. The baggage
compartment was on the front, the smoker next
to that, and the passenger compartment behind
that. I heard the commotion out there, and I
sat still in my cab. I heard the conductor argu-
ing with him, trying to get him to pay his fare,
and he would not pay his fare. He said he
was not going to pay the conductor his fare.
Then I stepped back m the baggage part where
he was,"
When the car reached Minnesota avenue,
the conductor attempted to put Scott off. He
resisted. He was put off twice, and jumped
back, and held to the hand bars. The car
would move slowly and stop.
The witness White testified:
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648
101 ATIiANTIO REPORTER
(McL
"He got off the c«r a couple of times— they
got him off the car and he would jump back on.
He was right on the other side of Minnesota
avenue when witness saw the conductor kicking ;
about a block and a half or two blocks from
Minnesota avenue. The car had stopped the
last time they put him off ; the car was running
slow; it would stop like, and they couldn't get
him off, and it would run a little further; he
was hanging onto the grips — standing on the
steps ; didn't see whether or not he was drag-
ged ; heard the conductor tell Mr. Scott to get
eff ; that is all witness heard. Didn't hear Mr.
Scott make any reply. Didn't hear the motor-
Aian say anything. The motorman took part in
gutting Mr. Scott off. The last witness saw of
cott he was going back down the track toward
Minnesota avenue. Scott's apparent condition
during the time be was being put off was that of
a sick man. He was vomiting when he first got
on the car; that is what made me go out of the
smoker. The conductor's manner exercised to-
wards Scott throughout the ejectment was 'an
ugly manner.' "
Bernard F. Howard testified:
He was in the passenger compartment, and
heard a commotion in the smoidng car. 'That
between the smoking and passenger compart-
ments there was no other compartment on the
car; when the attention of witness was first
attracted by the commotion did not investigate
at first to see what it was about, but later on he
did, and found that after the car left Minnesota
avenue — ^they stopped at Minnesota avenue and
I understood they were putting a man off — but
witness was reading, and did not pay much at-
tention to it until after they started np, and
witness heard some woman in the back say,
That man will get killed.' The car witness was
in had a motorman and a conductor, and after
witness went in the smoking car to see what the
commotion was about — didn't notice how many
people were in the smoking car at the time ;
only went to the door: thinks there were very
few, but couldn't tell how many— first thought
that the conductor and Scott were guying or
fooling with each other, and witness went back
and sat down, but after the car started at Min-
nesota avenue, and heard this woman back there
say, 'That man will get killed,' went forward
through the smoking car and found Scott stand-
ing on the bottom step, with his hands on the
brakeholds, and saw the conductor trying to
get Scott to get off, and after Scott wouldn't get
off he started kicking his hands; cannot tell
with what force these kicks were drove vrith,
but he was kicking with his left foot, and seem-
ed to be worked up trying to get the man off, and
he kept kicking him on the hands, trying to
make him loosen his hold on the handholds.
They had run — they were running very slow —
about a square and a half, witness guesses, as
far as he could judge from the inside of the car,
and 'Scott was holding on and refused to get off.
He was telling the conductor that he had his
ticket, and he knew he had his ticket, and the
conductor told him to get off. He said he want-
ed his hat, and the conductor told him to get off
and go after his hat. The hat was lying be-
tween the tracks. The motorman asked Scott
to get off. Scott said : 'What in the h have
you got to do with it? What do you want to
get into it forV The motorman said: 'I don't
want to get into this; but, if I do get into it,
then you will have to get off.' Then I turned
around and went back into the passenger part
of the car and sat down with my wife. Witness
told the conductor once that he oughtn't to
put that man off between the tracks, but he
didn't pay no attention, and Scott was finally
put off about a square and a half the other side
of the fire stop at Minnesota avenue, as near as
witness could judge of it; he was put off the
forward unA of the car, on the inside, between
the tracks. Didn't see him at the particular
time that his hold was severed from the ear, but
when witness started to sit down with his wife
he heard somebody say that the man was
off, and that the man had fell underneath the
car. That witness looked underneath the car,
and saw Scott getting up like from the side of
the car, and staggering along towards the edge
of the track." » » "^
[1] It thus appears that Scott was finally
ejected from the car in open daylight, in the
District of Columbia, not far from Minnesota
avenue, and that he was by no means In a
physically helpless condition, as he displayed
considerable strength and determination in
resisting expulsion from the car. He was
no doubt excited and disturbed by this en-
counter with the conductor; but there is no
evidence in the record, or offer of evidence,
that he was mentally unsound, or bad ever
suffered from any mental disorder. The con-
dition of the deceased's health on the day of
his death and for two weeks prior thereto
was testified to by Mrs. Scott, and there was
no contradiction of her evidence, and there-
fore there was no reversible error in the rul-
ing embraced in the first exception, wherein
the court refused to permit Mrs. Scott to
testify as "to the condition of the plaintiS'a
health just prior to July 1, 1918."
From Minnesota avenue, near which Scott
was finally expelled from the car, to Spring-
man's Crossing, where he was killed, the
distance is variously estimated from 1^ to
2^ miles. He appears to have walked this
distance over or along the defendant's right
of way in less than an hour, as he was seen
by one of the witnesses in the Casualty Hos-
pital, Washington, at 8:30, where he died.
The facts do not support the allegation of
the narr. that after the deceased was eject-
ed from the car "he was in a helpless condi-
tion, and wandered aimlessly about said de-
fendant company's tracks and right of way
in his effort to find and go to bis home at
Dodge Park." That conclusion could be
reached only upon the merest conjecture.
The law does not indulge in metaphysical
speculation and refinements upon the ques-
tion of causation. In B. & P. IL B. Co. v.
Beaney, 42 Md. 117, Judge Alvey said:
"In the application of tbe maxim, 'In jure non
remota causa sed proxima spectatur,' there Is
always more or less difficulty, and attempts are
frequently made to introduce refinements that
would not consist witii principles of rational
justice. The law is a practical science, and
courts do not indulge refinements and subtleties,
as to causation, that would defeat the claims of
natural justice. They rather adopt the practi-
cal rule, that the efficient and predominating
cause, in producing a given event or effect,
though there may be subordinate and dependent
causes in operation, must be looked to in deter-
mining the rights and liabilities of the parties
concerned. It Is certainly true that where two
or more independent causes concnr in pro-
ducing an effect, and It cannot be determined
which was the efficient and controlling cause,
or whether, without the concurrence of both, the
event would have happened at all, and a partic-
ular party is responsible for only the conse-
quence of one of such causes, in such case a re-
covery cannot be had, because It cannot be
Judicially determined that the damage would
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STATE V. WASHINGTON, B. A A. ELECTRIC B. CO.
549
have been done without such concurrence. Mar-
ble T. Worcester. 4 Gray [Mass.] 395. But It
is equally true, that no wrongdoer ought to be
allowed to apportion or qualify his own wrong,
and that, as a loss has actually happened whilst
his own wrongful act was in force and opera-
tion, he onght not to be permitted to set up as
a d^ense that there was a more immediate cause
of the loss, if that cause was put into operation
by his own wrongful act. To entitle such party
to exemption, he must show, not only that the
same loss might have happened, but that it must
have happened, if the act complaine<l of had
not been done. Davis v. Garrett, 6 Bing. 716."
In Baltimore Olty Passenger Ry. Co. ▼.
Kemp, 61 Md. 74, the same disttngolshed
judge said In discussing the question of pros-
iniate cause:
"It is not simply because the relation of cause
and effect may be somewhat involved in ob-
flcuri^. and therefore difficult to trace, that the
principle obtains that only the natural and
proximate results of a wrongful act are to be
regarded. It is only where there may be a more
direct and immediate sufficient cause of the
effect complained of that the more remote cause
will not be charged with the effect. If a given
result can be directly traced to a particular
cause, as the natural and proximate effect, why
should not snch effect be regarded by the law,
even though snch cause may not always, and
under all condition of things, produce like re-
sults? • • • The general rule is stated [in
Addison on Torts, 6] with as much clearness
and precision as will be found in any other
text-writer, and he states the rule to be 'that
whoever does an illegal act is answerable for all
the consequences that ensue in the ordinary and
natnral course of events, though those conse-
quences be immediately and directly brought
about by the intervening agency of others, pro-
vided the intervening agents were set in motion
by the primary wrongdoer, or provided their acts
cansing the damage were the necessary or legal
and natural consequence of the original wrong-
ful act'"
A dear exposition of the doctrine is found
to Railway v. Kellogg, 94 U. S. 469, 24 L. Ed.
256, In which Jndge Strong said. In discussing
a case In which a sawmill and a quantity of
lumber were destroyed by fire alleged to hare
been negligently communicated from the de-
fendant's steamboat:
"The true rule Is that what is the proximate
cause of an injury is ordinarily a question for
the jury. It is not a question of science or of
legal knowledge. It is to be determined as a
fact, in view of the circumstances of fact at-
tending it. The primary cause may be the
proximate cause of a disaster, though it may
operate through successive instruments, as an
article at the end of a chain may be moved by
a force applied to the other end, that force
being the proximate cause of the movement, or
as in the oft-cited case of the squib thrown in
the market place. Scott T. Shepherd (Squib
Case) 2 W. BL 892. The question always is:
'Was there an unbroken connection between the
'wrongful act and the injury, a continuous op-
eration? Did the facts constitute a continuous
Koccession of events, so linked together as to
make a natural whole, or was there some new
and independent cause intervening between the
-wrong and the injury? It is admitted ttiat the
rule is difficnlt of application. But it is gener-
ally held that, in order to warrant a finding that
nesligenco, or an act not amounting to wanton
-wrong, is the proximate cause of an injury, it
must appear uat the injury was the natural
and probable consequence of the negligence or
wrongful act, and that it ought to have been
foreseen in the light of the attending circum-
stances. These circumstances, in a case like the
present, are the strength and direction of the
wind, the combustible character of the elevator,
its great height, and the proximity and cum-
bnstible nature of the sawmill and the piles of
lumber. Most of these circumstances were ig-
nored in the request for instruction to the jury.
Yet it is obvious that the immediate and insep-
arable consequences of negligently firing the
elevator would have been very different if the
wind bad been less, if the elevator had been a
low building constructed of stone, if the sea-
son had been wot. nr if the lumber and the mill
had been less combustible. And the defendants
might well have anticipated or regarded the
probable consequences of their negligence as
much more far-reaching than would have been
natural or probable m other circumstances.
We do not say that even the natural and prob-
able consequences of a wrongful act or omission
are in all cases to be chargeable to the misfea-
sance or nonfeasance. They are not when thero
is a sufficient and independent cause operating
between the wrong and the injury. In such a
case the resort of the sufferer must be to the
originator of the intermediate cause. Bnt,
when there is no intermediate efficient cause,
the original wrong must be considered as reach-
ing to the effect, and proximate to it. The in-
quiry must therefore always be whether there
was any intermediate cause, disconnected from
the primary fault and self-operating, which
produced the injury. Here lies the difficulty.
But the inquiry must be answered in accord-
ance with common understanding. In a succes-
sion of dependent events an interval may always
be seen by an acute mind between a cause and
its effect, though it may be so imperceptible as
to be overlooked by a common mind. Thus, if
a building be set on fire by negligence, and an
adjoining building be destroyed without any neg-
ligence of the occupants of the first, no one would
doubt that the destruction of the second was due
to the negligence that caused the burning of the
first. Yet in truth, in a very legitimate sense,
the immediate cause of the burning of the sec-
ond was the burning of the first The same
might be said of the burning of the furniture
in the first. Such refinements are too minute
for rules of social conduct. In the nature of
things, there is in every transaction a succes-
sion of events, more or less dependent upon
those preceding, and it is the province of a
Jury to look at this succession of events or facts,
and ascertain whether they are naturally and
probably connected with each other by a con-
tinuous sequence, or are dissevered by new and
independent agencies, and this must be deter-
mined in view of the circumstances existing at
the time."
[2] Applying the accepted doctrine announc-
ed In the cases to which we have referred to
the facts of this case, we hold that the death
of Oscar Scott was not the natural and prob-
able consequence of the alleged wrongful act
of the defendant in expelling him from Its
cars. All the facts and circumstances of the
case show that he was able to take care of
himself; that he was physically able to do
so, and knew exactly what he wanted, and
the strength he displayed In roslstlng expul-
sion, and the short time he consumed In walk-
ing over or along the tracks of the company
to Springman's Crossing on his way home In-
dicate that he was not helpless or Irresponsi-
ble.
[3] No one was produced at the trial who
saw the deceased, from the time he was put
off the car and started back towards Minne-
sota avenue, until he was Idlled at Spring-
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550
101 ATLANTIC KEPORTBB
(Md
man's Crossing. It was said In B. & O. R. R.
Co. V. Allison, 62 Md. 479. 50 Am. Rep. 233:
"A right of way of a railroad company is the
exclusive property of sach company, upon
which no unauthorized person has the right to
be, and any one who travels upon such right of
way, as a footway, and not for any business
with the railroad is a wrongdoer and a trespass-
er; and the mere acquiescence of the railroad
company in such user does not give the right to
use it, or create any obligation for especial pro-
tection. R. R. Co. v. Godfrey, 71 111. 500 [22
Am. Rep. 112]. Whenever persons undertake
to use the railroad in such case as a footway,
they are suppoaed to do so with a full under-
standing of ita dangers, and as assuming the
risk of all its perils. 71 lU. 500 [22 Am. Rep.
112]; McLaren v. Railroad Co., 8 Amer. &
Eng. R, R Cases, 219; Railroad Co. v. Gold-
smith, 47 Ind. 43; Railroad Co. ▼. Houston, 95
U. S. 702 [24 Ia Ed. 642]; Railroad Co. v.
Jones, 95 U. S. 442 [24 L. Ed. 500] ; 1 Thomp-
son on Negligence, 453, 459; Morrissey v. Rail-
road Ca, 120 Mass. 377 [30 Am. Rep. 686]. In
Maenner v. Carroll, 46 Md. 212, which was a
suit for injury received by falling into an exca-
vation which bad been dug on the private prop-
erty of the defendant over which persons were
in the habit of passing, but which was not a
public highway, this court declared the same
principle as controlling, and adopted the lan-
guage of the court in Hounsell v. Smyth, 7 C.
B. N. S. 7.31, that in such case 'one who uses
the waste has no right to complain of an ex-
cavation he finds there. He must take the pei^
mission with its concomitant conditions, and, it
may be, perils.' Binks v. Railroad Co., 3 B. &
S. 244, Bolch ▼. Smith, 7 II. & N. 736, and
Oautiel v. Egerton Ia R. 2 C. P. 371, are cited
In support of the law thus indorsed. Inasmuch,
therefore, as the presence of the deceased upon
the road of the appellant at that point was a
trespass it would seem to be necessary to show
some negligence, amounting to the omission of
a general and imperative duty toward him not-
withstanding, which ought to subject the appe-
lant to liability in the action brought."
This the appellant ntterly failed to do. It
is said in 7 Am. & Eng. Ency. of Law, 382:
"In the application of the principle that th«
law looks at the proximate, and not at the re-
mote, cause of an injury, lies the great difll-
culty in the law of contributory negligence. No
general rule for determining when causes are
proximate, and when remote, has yet beea
formulated. But the principles that govern the
determination of the question are well settled.
When it is once established that a person in-
jured by the negligence of another has been
guilty of a want of ordinary care, it becomes
necessary to determine whether such want of
ordinary care proximately contributed to the
injury aa an efficient cause, or only remotely,
as a condition or remote cause thereof. If it
proximately contributed, there can be no recov-
ery ; but, if it was only a remote cause or con-
dition of the injury, a recovery can be had."
We therefore hold that the proximate cause
of the death of Oscar Scott was his own want
of care In being upon the defendant's tracks
under the circumstances disclosed by the evi-
dence. The appellant relies upon the cases of
Warren v. Railway, 243 Pa. 15, 80 Atl. 828;
McCoy V. MiUvllle Trac. Co., 83 N. J. Law,
508, 85 Atl. 358; Railway v. Parry, 67 Kan.
515, 73 Pac. 105; Eidson t. Railway (Miss.)
23 So. 369 ; Guy v. Railway, 30 Hnn (N. Y.)
309; Railway v. Ellis, Adm'r, 97 Ky. &30, 30
S. W. 079. But those cases can have no con-
trolling effect in this, because the facta wh<d-
ly fail to bring this case vrithin the prin-
ciples announced therein. Those cases dealt
with the obligations of the railway towards
passengers who were, from drunkenness or
other causes, helpless and unable to care fi>r
themselves.
For the reasons stated the Judgment win
be affirmed.
Judgment affirmed.
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MEKRTMAX v. WHEELSB
661
(uo Ma. E«n
MERRTMAN v. WHEELEE. (No. 8.)
(Oonrt of Appeals of Maryland. Jnne 20, 1917.)
1. DxBT, Action ot 4=»11— Decxasatiohs—
Stjfticienct.
A declaration, aTerrinfr and declaring upon
a contract nnder seal, giving the date thereof,
and alleging that the dSendant covenanted and
agreed to pay the plaintiff a certain and fixed
sum for the erection and completion of a dwell-
ing house, that the house was erected according
to the terms of the contract, and there was due
and owing under the contract a sum named, ac-
cording to a statement filed with the declaration,
and that the defendant refuses to pay the sum
due the plaintiff, although wanting in clearness,
was good in an action of debt npon a specialty.
[Ed. Note. — For other cases, see Debt, Action
of, Cent Dig. |§ 27, 28.]
2. Assumpsit, Action of «=»19 — Dboiaba-
tion— sofficibnct.
The declaration was not good in assumpsit.
[Ed. Note. — ^For other cases, see Assumpsit,
Action of. Cent. Dig. ii 81-99.]
8. CoTKNANT, AcnoN or «s»12 — Dbclaba*
TION8— SCFFICntNCY.
Nor was it a good declaration in an action
of covenant.
[Ed. Note.— For other cases, see Covenant,
Action of, Cent. Dig. | 16.]
4. AsBTjMPsiT, Action of «=>6(2)— Action on
Specialty.
Assumpsit is not sustainable npoa a spe-
cialty.
[Ed. Note.— For other cases, see Assumpsit,
AcUon of. Cent Dig. {{ :!9-3(i.]
6. Covenant, Action of «=»1— Whkbx Pat-
ifXNTs Dub.
Covenant will not lie, when the payments
are all due and payable.
[Ed. Note.— For other cases, see Covenant,
Action of. Cent Dig. {| 1-7.]
6. Debt, Action of ^3l2— Iupbopeb Pleas.
The suit and declaration being in debt on a
specialty, the defendant's pleas— (1) that he nev-
er was indebted as alleged; (2) that he did not
promise as alleged — were improper.
[Ed. Note.— For other cases, see Debt, Action
of. Cent Dig. SJ 29-33.]
7. Debt, Action of «=»12— Pleas— Qesnebai,
Issue.
In an action of debt upon a specialty, the
general issue plea is non est factum; and, if
other defenses are relied upon, they must be spe-
cially pleaded.
[Kd. Note.— For other cases, see Debt, Action
of. Cent Dig. iS 29-33.]
8. Dbbt, Action of «=»12— Pleas— Patmbnt
.AJVD Set-Off.
The declaration being in debt upon a special-
ty, defendant's pleas of payment and set-off were
{rood, and, if sustained by proof, would have
been a sufficient answer to plaintiff's claim.
[EJd. Note. — For other cases, see Debt, Action
of. Cent Dig. K 29-33.]
9. Debt, Action of «=»12— Impbopbb Pleab—
Faixure to Sustain DEiniBREB.
In debt on a specialty, the ordinary general
issue pleas in assumpsit were improper, nnd the
court erred in overruling plaintiff's demurrer
thereto.
rKd. Note.— For other cases, see Debt, Action
of. Cent Dig. H 29-83.]
10. Debt, Action of «=9l8— Etidbncb— Suf-
FICIENCT.
In debt on a specialty, evidence at the con-
clusion of plaintiffs testimony held legally suffi-
eient for submission to the jury.
[EM. Note.— For other cases, see Etebt Action
of. Cent Dig. {| 41, 42.]
Appeal from Circuit Court, Baltimore Coun-
ty ; Wm. H. Harlan, Judge.
"To be ofDdally reported."
Suit by Marion H. Merrymaa against
George F. Wheeler, Jr. Judgment for defend-
ant, and plaintiff appeals. Reversed, and
new trial awarded, with costs to appellant
Argued before BOYD, C. J., and BRISCOE,
THOMAS, URNER, and STOCKBRIDGB, JJ.
James £. Tlppett, of Baltimore, for appel-
lant T. Scott OfTutt, of Towson (George
Hartman and George O. Wheeler, both of
Towson, on the brief), for appellee.
BRISCOE, J. The plaintiff brought this
salt against the defendant In the circuit
court for Baltimore county, to recover an al-
leged balance due on a building contract
dated the 22d day of June, 1916. The plain-
tiff's declaration states the cause of action
as follows: For that the defendant by his
contract under seal bearing date May 17,
1906, covenanted and agreed to pay the plain-
tiff the sum of $3,600 for the erection and
completion of a certain frame dwelling house
In the village of Towson, Baltimore county,
state of Maryland ; that the plaintiff erected
said house according to the terms of said con-
tract; and that there is due and owing to
the plaintiff under said contract the sum of
$197.60, as per statement herewith filed,
which sum the defendant refuses to pay.
The building contract was filed with the dec-
laration, and is set out In the record. With
the declaration and contract the following ac-
count was filed:
George F. Wheeler, to Marion H. Merryman, Dr.
To amount due on contract for erec-
tion of house on Penna. Ave., Tow-
son $.3,600.00
By cash on account as per contract . . 3,340.00
Sept 5, 1906, balance due $ 260.00
To int on $260.00 for eight and one-
half years, $132.60; Aug., 1915, re-
ceived int. $132.60, and received on
account of principal 62.40
$ 197.60
The defendant. It appears, demurred to the
declaration. This demurrer was overruled,
and the declaration held to be good, upon
the theory that the suit was one in assumpsit
and not upon a sealed contract Thereupon
the defendant pleaded: First, that he never
was indebted as alleged; second, that he did
not promise as alleged; third, payment;
and, fourth, that the plaintiff is Indebted to
the defendant in the sum of $030, with in-
terest, in liquidated damages, at $10 per day
of 63 days, for violation of article 6 of the
sVor other ossm ■«• sam* tople and KBT-NUMBER In all Key-Numberad Dlceata and Ina*x««
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552
101 ATLANTIO REPORTER
(Md.
contract declared on, by failure to complete
and carry out said contract by August 17,
1906, the date named therein, the defendant
being Inconvenienced by said delay until
October 20, 1906, which amount the defend-
ant Is willing to set off against the plaintiff's
claim.
The plaintiff's demurrer to the defendant's
flrst, second, and fourth pleas, was overruled,
and thereupon the docket entries show that
Issue was Joined upon all four pleas, and the
case was submitted to the court for triaL
At the conclusion of the evidence on the part
of the plaintiff, the court granted a prayer
directing a verdict for the defendant, upon
the ground that under the pleadings and the
evidence the plaintiff was not entitled to
recover, and the verdict must be for the de-
faidant The action of the court, In its rul-
ing upon this prayer, constitutes the only ex-
ception brought up by the record. A Judg-
ment on the verdict in favor of the defendant
for costs was entered on the 13th of Novem-
ber, 1916, and from that Judgment this ap-
peal has been taken.
[11 While the declaration filed In the case
Is somewhat loosely drawn, and Is wanting In
that clearness of statement which is required
by the rules of good pleading, we think its
averments are sufficient to entitle It to be sus-
tained as a good declaration in an action of
debt upon a specialty. The declaration avers
and declares upon a contract under seal, bear-
ing date the 17th of May, 1906, and alleges
that the defendant covenanted and agreed to
pay the plaintiff a certain and fixed sum for
the erection and completion of a dwelling
house; that the house was erected according
to the terms of the contract, and there was
due and owing under the contract the sum of
$197.60, according to a statement filed with
the declaration ; and that the defendant re<
fuses to pay the sum due the plaintiff.
The suit Is therefore upon a contract under
seal, to recover in debt upon a specialty, and
where the amount claimed to be due Is spe-
cially stated In the dedaratlon to be due and
owing according to the terms of this con-
tract. The contract and an account showing
the plaintiff's claim Is filed with the declara-
tion and made a part thereof. The general
rules as to the proper and essential averments
to make a good declaration and to constitute
a ground of action, under our various forms
and system of legal pleading, will be found
set out In article 75, p. 1638, of the Code,
and the cases there cited.
[2-J] It Is clear, under the averments of
the declaration in this case. It cannot be
treated as a good declaration, either in as-
sumpsit or In covenant It Is well settled
that assumpsit is not sustainable upon a
specialty, and covenant will not He or be sup-
ported when the payments are all due and
payable, as In the present case. 1 Chitty's
Pleading, 118, 129, 388, 376, 385; Fisher's
''^wentlals of Pleading, 122, 124; 1 Poe's
Pleading and Practice, 145, 146, 139; Booth
V. Hall, 6 Md. 4; Waldeck Co. v. Bmmart,
127 Md. 474, 96 AtL 634.
[6, 7] The suit and declaration in the case,
being In debt on a specialty, the defendant's
first two pleas were improper pleas. The
general issue plea In this form of action
is non est factum, and If other defenses are
relied on they must be specially pleaded. 1
Poe on Pleading, 625; Fisher's Essentials
of Pleading, 55, 56; 1 Chltty on Pleading,
510, 511; Waldeck Co. v. BUnmart, 127 Md.
476, 96 AtL 634.
[8] The defendant's third and fourth spe-
cial pleas of payment and setoff were good
and proper pleas, and. If sustained by proof,
would have been a full and sufficient defense
and answer to the plaintiff's claim. Steele v.
Sellman, 79 Md. 1, 28 Aa 811; 1 Poe's Plead-
ing, 626, 651, 614; 1 Chitty on Pleading, 595,
511 ; Code P. G. L. art 76, ( 12.
[•] The action of the court in overruling
the plaintiff's demurrer to the defendant's.
first and second pleas was therefore error,
because they were the ordinary general Is-
sue pleas In assumpsit, and not proper pleas
In debt on a specialty. The case appears to
have been tried upon Joinder of issue on the
third and fourth pleas, and these were good
pleas, and it Is not clear that the plaintiff
Buffefred any injury by the ruling of the court
on the pleadings, and we should hesitate to
reverse the Judgment for the defective plead-
ing, if this was the only error in the rulings
of the court beAow disclosed by the record.
McCart T. Regester, 68 Md. 429, 13 Atl. 361;
Chappell T. Real Estate Co., 89 Md. 263, 42
Atl. 936; Charles Go. v. Mandany<^l, 93 Md.
150, 48 Atl. 105a
[10] There was error in the ruling of the
court in granting the defendant's prayer
withdrawing the case from the Jury, at the
conclusion of the plalntUTs testimony, be-
cause the evidence as disclosed by the record
was legally sufficient to have taken the case
to the Jury, and It should have been submit-
ted for their consideration, and not decided
by the court Burke v, Baltimore, 127 Md.
555, 96 AtL 693; Baltimore t. NeaL 65 Md.
438, 5 AU. 338.
The plaintiff testified in substance that he
was a contractor and a builder, and that ho
had been employed by the defendant to bnlld
a house for him in Towson, Baltimore coun-
ty ; that it had been completed, and was now
occupied by the defendant; that at the time
the house was completed there was a bal-
ance due on the contract price of $360, and
the whole of this amount had not been paid.
He then testified as to a conversation with
the defendant about 15 months prior to the
suit, as to the indebtedness and the balance
due on the contract as follows:
When Mr. Wheeler came down to my house,
my daughter was sitting in the room. Mr.
Wlieeler said: "Mr. Merryman, about the bal-
ance due you, you are mistaken, as it is only
$260; that i» all that I owe yon, but I cannot
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BEACHET ▼. HEIFI^B
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pay all that now, lint I will pay it along as I
can. I have one of my sons working in Balti-
more now, and he is willing to Iielp me out," I
told him that that was all right, and asked him
how mach he could give me, and when the pay-
ments would be made. He told me that he
would make a payment the comine week. He
made that payment, and he made payments
along at different times until he had paid $195,
and then he stopped. He ran along for a long
time, and I didn't know why he di&'t pay me.
I sent him a statement, and then he called to see
me and said: "Mr. Merryman, I have paid yon
all the money that I am going to pay yon."
Then I said to him that that was not right, that
I had waited nine years for this money, that
I needed the money to keep my children in
school, that I had waited nine years for the
money, and, if he did not pay me, I was going
to make him pay me.
He further testified that he had received
and had been paid for all thd work on the
house, except the $360, less the credit of
$195.
BOSS Merryman, the plaintUTs daughter,
testified that she knew the deifendant; that
she was present and heard the conversa-
tion and interview between her father and
the defendant, at the father's house, relative
to the amount of money due, and stated that
thd conversation was as follows:
Q. Did yon hear what Mr. Wheeler said at
the interview about owing Mr. Merryman any
money? A. Yes, sir. Q. State what was said.
A. Father said that he owed him $360, and he
admitted that he owed him $260. Q. Mr.
Wheeler said that he owed your father only
$2607 A. Yea, sir. Q. Did yon hear him say
that? A. Yes, sir; and his son was present at
that interview, too. Q. Whose son? A. Mr.
Wheeler's son. Q. Was any payment made at
that time to yonr knowledge— Uie time of the in-
terview? A. None that I know of.
Upon this state of fticts, without a further
discussion of the testimony, we think the
case was one, upon the authorities, for the
consideration of the Jury, and the Instruction
of the court below was clearly erroneous.
For the rcsasons stated, and for the errors
Indicated, the Judgmmt must be reversed,
and a new trial will be awarded.
Judgment reversed, and new trial awarded,
wltb costs to the apiiellant.
(130 Ifd. (83)
BBACHEY et al. v. HEIPLB et ■!. (No. 21.)
(Court of Appeals of Maryland. June 27, 1917.)
1. Equttt 43>227 — Dekubreb — Puhatukb
S*nJ[Ne— OBjKonoits Avaii^ablb.
"Wheie by agreement demnrrers to a bill
-were refiled two days after an amendment of the
bin by interlineation, and a decree sustaining
tiie demnrrers and dismissing the bill was filed
Ions' before an order of publication against a
nonresident defendant could have expired, the
demurring defendants had no standing to object
to tbe bill on the groond that such nonresident
•wnB a necessary party and had not been served
by publication with the bill as amended.
CEid. Note.— For other cases, see Ekinity, Cent
rAg. S B18.1
2. Equity «s>150(1) — Multifabiousness —
JoiNDEB or Defendants.
As alleged in the bill, plaintiffs and B. pur-
chased land, and title was taken in B.'s name as
trustee; the terms of the trust being that he
should dispose of it for the benefit of plaintiffs
and himself. He sold tbe land to the A. Co.
for cash, a note of the A. Co. secured by bonds,
and $>SO,000 of bonds, but represented to plain-
tiffs that only $15,000 of bonds were received.
In consummation of tbe fraud he conveyed the
property to the A. Co., M., and O. Temporary
certificates were issued in lieu of bonds, certifi-
cates for $65,000 being issued to M. and the
A. Co.'s agents, who subsequently exchanged
them for bonds. M. loaned her bonds to the A
Co., which pledged them to a bank, and plain-
tiffs did not know whether the bank was a
bona fide holder, bot, if so, claimed the equity
in the bonds. The A. Co.'s agents were not bona
fide holders, but received the bonds as part of
the plan to defraud plaintiffs. B. had disap-
peared, and the clerk of a Pennsylvania court
had taken into his custody the temporary cer-
tificates issued to B. and filed them in court.
The trustee under the deed of trust securing the
bonds was demanding the delivery of tibese cer-
tificates l>efore issuing bonds in exchange there-
for. Plaintiff sought the appointment of a new
trustee, and the recovery by him of all of the
bonds, and an injunction against their transfer.
Held, that the A. Co., its agents, M., C, the
trustee under the deed of trust, the clerk of the
Pennsylvania court, and the bank mentioned
were all proper parties, and the bill was not
multifarious because of their joinder with B. as
defendant.
[Ed. Note.— For other cases, see Equity, Cent.
Dig. a 84a, 871, 373, 878.] "^ ■"
3. BQurrr «=s>150(l) — MtrLTiFABiotrsKEss —
Joinder or Defendants.
The objection to a bill on the ground of
multifariousness onght only to apply where the
case of each defendant is entirely distinct from
that of other defendants, and it is not indispen-
sable that all of the parties should have an in-
terest in all of the matters contained in the bill;
it being sufficient if each party has an interest
in some material matters in the suit and that
they are comected with others.
raid. Note.— For other cases, see Bqnitr, Cent
mg. U 342, 371. 373, S78.r "* -J" "= '•
4. EQumr «s»S62 — Dibmibsai.— Obounds —
MlTLTITABIOUSNEfiS.
If a bin is mnltifarions by reason of the mis-
joinder of defendants, plaintifb should be put to
their election, and the bill should not be dis-
missed in toto.
{Ed. Note.— For other cases, see Eanitgr, Gent.
6. Tbustb «s>371(1)— ENFOBcxiniNi^PueAD-
INO.
In a suit by coowners of land, title to which
was held in tiie name of B., one of the co>
owners, as trustee, to enforce the trust in the
consideration for a sale of the land by B., of a
part of which consideration B. and other de-
fendants had sought to defraud plaintifb, the
allegations of the bill held not contradictory and
inconsistent.
[Ed. Note.— For other cases, see Trusts, Cent
Dfe. H 588, 699.] ^^
6. Tkustb «=»359(S)— EtnroBOEiiBNT— Natubb
OF Revkdt.
A co-owner of land, holding titie for himself
and other coH>wnerB as trustee, conveyed the
land, corporate bonds being a part of the con-
sideration, but deceived his co-ovmers as to the
amount of bonds, and with the purchasers,
agents, and others sought to defraud his co-
owners of a part of the bonds. He had disap-
^sssFor oUmf easss as* aaiae topla and KBY-MUMBBR in all Key-Nombsrsd Dlswts and IndMss
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101 ATI/ANTIC REPORTER
(Md.
poared, and his co-ownera brouirht a suit to have
a new trustee appointed, to collect and recorer
the bonds wrongfully diverted from the parties
holding them, and for an injunction against their
transfer. HM, that equity had jurisdiction, as,
even though a court of law would have had ju-
risdiction in some matters, it could not have
appointed a new tnistee, or given plaintiffs all
the relief they were entitled to, and a court of
equity at least had concurrent jurisdiction be-
cause of the fraud, and special jurisdiction be-
cause of the trust.
[Ed. Note.— For other cases, see Trusts, Cent
Dig. i see.]
7. EqtriTT «=»119 — Sebviok or Pbocebs —
Sebvicb bt Pubucation.
The proceeding being in rem, and not in
personam, the original trustee could be proceed-
ed against by publication.
[Ed. Note.— For other cases, see Equity, Cent.
Dig. f§ 293-305.]
8. Tbttsts «=»371(2)— Enpobckhknt— Pixad-
rno.
As the statute of frauds does not provide
that trusts shall be constituted by writing, but
only that all declarations or creations of trust
■hall be manifested and proved by writing, a
bill seeking the enforcement of a trust need not
charge the trust to be in writing, as the writing
is no part of the trust, but only the evidence to
prove it.
[Ed. Note.— For other caaee, see Trusts, Cent.
Dig. «{ 589-591.]
9. Tbtjsts «=>63%— Resultino TBtrsTB— Op-
KBATION OF STATUTI: OF FRAUDS.
Under the statute of frauds, resulting tmsta
are not required to be in writing.
[Ed. Note.— For other cases, see Trusta, Cent
Dig. { 93.]
10. Tbvsts «s>80(1) — Rkstotiwo Tbttsts —
Sttfficiency of Evidence.
A resulting trust must be clearly proved, to
justify the court in granting reliel
[Ed. Note.— For other cases, see Trusta, Cent
Dig. { 134.]
11. E>QurrT «=»152— PtEADiNO— ExHiBira
A co-owner of land, who held title as trus-
tee for himself and his co-owners, conveyed the
land as trustee, but attempted to defraud his co-
owners of a part of the corporate bonds received
(m the sale, and they brought a suit to establish
and «iCorce the trust in such bonds, and to en-
join a transfer of the bonds by the person hold-
ing them. HeUL that a copy of the deed from
the truatee ahould have been filed with the bill,
under Code Pub. Civ. Laws, art 16, { 142, pro-
viding that no order or process shall be made or
issued upon any bill, petition, or other paper
until such bill, petition, or other paper, together
with all exhibits referred to as parts thereof, be
actually filed with the clerk of the court, as the
failure to file such copy prevented the issuance
of an injunction, and the copy should also have
been filed to justify the other relief.
[Ed. Note.— For other cases, see Equity, Cent
Diis. H 383-385.]
12. Afpiai. and Erbob «C31106(S) — Rkuand
Without Decibion— Grounds.
It being improbable that the demurrer to the
bill was sustained because of the failure to file
a copy of such deed, and the bill not being de-
murrable on any other ground, the Court of Ap-
peals would remand the cause without affirming
or reversing, and a copy of the deed could then
be filed and further proceedings taken.
' {Ed. Note.— For other cases, see Appeal and
Error, Cent Dig. f§ 4380^301.]
13. Costs 9=9243 — Costs or Appeal to
Abide the Event.
On remand of a cause without affirming or
reversing, the costs will be allowed to abide the
resnlt of the case.
[EH. Note.— For other cases, see Costs, Cent
Dig. §§ 938, 039, 946.]
14. Trusts @=>365<2)— Enforceuent— LmriA-
TioNB AMD Laches.
A co-owner of land, holding title as trustee
for himself and his co-owners, conveyed theland,
taking corporate bonds as part of the considera-
tion, but deceived his co-owners as to the amount
of the bonds, and in collusion with the pur-
chaser's agents and others sought to defraud his
co-owners of a part of the bonds. He disap-
peared, and less than three years after the sale
his co-owners filed a suit, in which an amended
bill, filed less than a year later, sought to es-
tablish and enforce a trust in the bonds with-
held. The amended bill alleged that plaintifb
were not aware of the real transaction until
shortly before the amended bill was filed, and
long after the original bill was filed. Held, that
the suit was not barred by limitations or laches.
[Ed. Note. — For other cases, see Trusts, Cent.
Dig. I 571.]
Appeal from Circuit Court of BaltimoTtt
City; H. Arthur Stump, Judge.
Suit by E. M. Beachey and others against
Aaron F. Heiple and others. From a de-
cree sustaining demurrers and dismissing the
bill, complainants appeal Cause remanded,
without afflrmlng or reversing.
Argued before BOYD, C. J., and BRISGOB,
BUUKia, TUOMAS, PAl^USONl, and
STOCKBRIDOB, JJ.
Frank B. Ober and Stuart S. Janney, both
of Baltimore (Ritchie & Janney, of Baltimore,
on the brief), for appellants. Julius H. Wy-
man and Jacob S. New, both of Baltimore
(James T. O'Neill and Duvall ft Baldwin, all
of lialtimore, on the brief), for appelleea.
BOTD, C. J. This is an appeal fr(»n a de-
cree sustaining demurrers to and dismissing
an amended and supplemental bill of com-
plaint; filed by the appellants against the
appellees and others. The original bUl made
the AJaz Consolidated Coal C}ompany, the
Mortgage Guarantee Company, Aaron F.
Heiple, and Harvey M. Berkley defendants,
and the amended and supplemental bill made
the State Bank of Maryland, the Walker-
Wadsworth Company, A. B. Osgoodby, Mary
L. MacmuUen, and James Connell defendants.
In addition to those In the original bilL
Mary L. MacmuUen, James Connell, A. B.
Osgoodby, the Walker-Wadswofth Company,
and the State Bank, of Maryland demurred to
the amended bill, alleging as reasons for
the demurrers: (1) That the plalntUCs had
not stated such a case as entitled them to re-
lief: (2) multifariousness; and (3) that the
court was without Jurisdiction; and the
AJax Company demurred on the ground of
multifariousness.
We will state at some length the facts al-
leged In that bllL The three plaintiffs and
Berkley, all of whom were residents of Somer-
set county. Pa., each contributed ^1.67 and
^saVor other cues see same toplo and KBT-NUMBER ta all Key-Nnmbered DigceU and Index**
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BKA.CHET T. HEIPLE
666
purchased coal In lands In tbat county, sub-
ject to a mortgage for $44233^. described
In a deed dated October 29, 1902, In which
Harvey M. Berkley, trustee, was the grantee.
The deed was taken in his name "for con-
Tenience and other reasons." He was a
lawyer of high standing, In whose honesty
and Integrity the plaintiffs had every confi-
dence, and he attended to the legal details of
the transaction. The terms of the trust are
alleged to be that Berkley should dispose of
the prc^wrty for the benefit of the four In-
terests and distribute the proceeds In four
equal portions to himself and the three plain-
tiffs; they being equal owners. During the
summer of 1913, Berkley, as trustee, with
the consent of and acting for the plaintiffs,
sold the property to the Ajax Consolidated
Coal Company, a corporation of Pennsylvania,
whose principal office was in tlie dty of
Baltimore. Berkley reported to the plain-
tiffs that the consideration for the sale was
$1,800 cash, bonds of the Ajax Company of
the par value of $15,000, and a note of tbat
company for $3,100, secured by $5,000 of
bonds. The bonds were a part of an Issue
of the AJaz Company for $250,000, secured by
a deed of trust or mortgage to the Mortgage
Guarantee Company of Baltimore, as trustee ;
but the plaintiffs charge that, in addition to
the cash, the note, and the bonds mentioned,
Berkley received and the Ajax Company paid
for said property $65,000 bonds of that Issue —
that being the true consideration received
by Berkley and paid by the company. They
allege that they did not know of the payment
of the $65,000 of bonds until long after the
original bill was filed, and shortly before the
amended bill was filed.
In order to conceal from the plaintiffs the
tme consideration received, and in consum-
mation of the fraud, Berkley conveyed the
property to the AJaz Company, Mary L.
MacmuUen, and James Connell, as tenants In
common. Mary L. MacmuUen, who is a resi-
dent of Norfolk, Va., had no Interest or part
In the property, and paid no consideration for
It, but received the conveyance in payment of
a preexisting debt due her or her father's
estate by Berkley, although the plaintiffs be-
lieve she was innocent of any intention to
wrong them. Connell is a resident of Penn-
aylvania, and has no financial or other re-
apoDslbUity, had no interest In the property
or tlie sale, never paid any consideration, but
WB8 used as a doak and sham, in order to
disguise the real transacticm. The Walker-
Wadsworth Company, a corporation of Mary-
land, was financial agent of the AJax Com-
pany, and was employed hgr It to buy the
property, arrange the terms of payment, and
to sell the bonds of the AJax Company. Os-
goodby was treasurer and active manager of
the Walker-Wadsworth Company, and con-
dncted the negotiations. He collaborated
wltb Berkley, trustee, in order to deprive the
pUtinttffs of the real consideration for the
property, and the deed to Mary h. MacmuUen
and James Connell was made pursuant to an
understanding with the Walker-Wadswortb
Company and Osgoodby, in order to divert
from the plaintiffs their true share in the
consideration paid tor the property. The
true consideration was as stated, whidi was
paid ; but the plaintiffs have not received it.
The bonds of the AJax Company not being
engraved at the time of the purchase, tem-
porary certificates, called "interim bond cer-
tificates," were issued, which were to be
surrendered and bonds delivered when the
latter were engraved. There was paid to
Berkley, trustee, the $1,800 cash, the promis-
sory note of $3,100, secured by an interim
bond certificate for $5,000, and anothM' audi
certificate for $15,000. A certificate for $22,-
000 of bonds was delivered to Mary Mac-
muUen, and one for $19,000 was ostensibly
delivered to ConneU, but it was surrendered,
and the bonds represented by it were deUver-
ed to the Walker-Wadsworth Company. A
certificate for $24,000 of bonds was made out
in the name of the latter company and de-
livered to Osgoodby as its r^resentatlve.
AU the certificates have been surrendered,
and the bonds delivered, except to Bei^Iey,
trustee. Berkley withheld from the plain-
tiffs all knowledge of the true consideration,
but the actual consideration is approved by
the plaintiffs, and has been approved and
ratified by the Ajax Cwnpany. That com-
pany has always paid the semiannual in-
terest on its bonds, except those stiU on de-
posit with the Mortgage Guarantee Com-
pany, the interest on which it has always ex-
pressed a willingness to pay when they are
deUvered to the true owners. The bonds rep-
resented by the two certificates of $5,000 and
$15,000 are In the hands of the Mortgage
Guarantee Company ; but It demands the de-
livery of the two certificates before surren-
dering the bonds, to which plaintiffs are en-
tttied.
In August, 1913, Berkley suddenly and
mysteriously disappeared, and it Is not
known whether he is living or dead. After
his disappearance, Aaron F. Heiple, prothon-
otary and clerk of the common pleas court
of Somerset county. Pa., under the advice of
the Judge of that court, took into his cus-
tody certain papers that had been in the
possession of Berkley, amongst which were
the interim bond certificates Issued to Berk-
ley and the promissory note referred to.
Heiple has filed them with the clerk ot, the
lower court, and he answered the original
biU. By the terms of the trust the certifi-
cates should be Indorsed by the trustee and
the bonds collected from the Mortgage Guar-
antee Company and distributed to the plain-
tiffs; but, owing to the disappearance of
Berkley, there is no trustee to make the in-
dorsement and the distribution. The $22,000
of bonds deUvered to Mary L, MacmuUen
have been by her returned or loaned to the
AJax Company, and are now on deposit wltb
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101 ATIANTIO REPORTER
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the State Bank of Maryland, it claiming to
hold them as security for some indebtedness
of the AJax Company; but the plaintitFs
have no knowledge whether the bank is 8
bona flde holder, for value, without notice of
the right of the plalntUFs, and at any rate
there Is a substantial equity la th»n. The
remaining ^,000 of bonds were received by
the Walker- Wadsworth Company, or Osgood-
by acting for it, and neither Is a bona fide
holder for value, nor has either paid any
consideration therefor, but they were receiv-
ed as part of a preconceived plan to defraud
the plaintiffs, and they should be delivered to
the trustee to be appointed in the place of
Berkley for distribntion In accordance with
the terms of the trust
The amended bill prays: d) That a new
trustee be appointed in place of Berkley,
with power to execute the trust reposed in
him; (2) that said trustee be authorized to
receive the interim bond certificates and the
promissory note outstanding in the name of
Berkley, trustee, and d^wslted with the
clerk of the lower court, to make such In-
dorsements and execute such instruments and
writings as may be necessary, upon surren-
der of the certificates, to secure the bonds
repreaeatei by them, and that the Mort-
gage Guarantee Company be ordered to de-
liver the said bonds to the trustee; (3) that
the trustee be directed to collect and recover
the bonds wrongfully delivered to Mary Ix
Macmullen and now deposited with the State
Bank of Maryland, and that she and the
bank be ordered to deliver them to said trus-
tee free and clear of any claims by them; (4)
that the Walker-W^idsworth Company, and
Osgoodby for said company, be ordered and
directed to deliver the $43,000 of bonds re-
ceived and held by said company, or said Os-
goodby, to said trustee, free and clear of any
claims of either of them ; (5) that said trus-
tee be ordered to hold all of said bonds and
said note until the court determines who are
entitled to them, and upon said determina-
tion that the trustee deliver them to such
person or persons as the court may direct;
(6) that in the meantime an injunction issue
enjoining the State Bank of Maryland from
disposing of, transferring, or making deliv-
ery to any one, except the trustee, of the
bonds described in the amended bill, and that
a similar Injunction be Issued against the
Walker-Wadsworth Company and Alfred B.
Osgoodby, as to the bonds in their possession
or control; and (7) for general relief.
We will consider the objections to the bill
in the order stated in the brief of the ap-
pellees:
[1] 1. Alleged Irregularity of the Proceed
i»\4j». On January 22, 1017, the demurrers
to an amended bill were sustained, with
leave to file another amended bill. The next
day the court granted the plaintiffs leave to
amend that bill by interlineation. On Janu-
ary 26th an agreement of aoUdtorB was en-
tered into that the deraurrera theretofore filed
be considered as refiled to the bill as amend-
ed, per order of January 23, 1017, and the
same day a motion for hearing was filed.
The appellees contend that there was no or-
der of publication against Berkley on the
bill as amended by interlineation, and that,
as he was a necessary party, the demurrers
were properly sustained. As the demurrers
were by the agreement reflled on January
25th, it would be a most novel application
of equitable procedure if the defendants, who
had been summoned and were represented
in court by solicitors, could thus object to an
amended bill because a nonresident was not
then in court under an order of publication.
The decree appealed from was filed on Febru-
ary 13th, long before an order of publication
could have expired. If the amendment was
such as to require a new order of publica-
tion, which we need not, if we could, deter-
mine, as the record does not show what it
was, those who were still in coart, and es-
pecially those who by their solicitors enter-
ed into the agreement referred to, had no
standing to object to the bill for such rea-
son; their demurrers being filed two days
after the interlineation.
[2] 8. Multifariouanesi. As Alfred B. Os-
goodby and the Walker-Wadsworth Company
are charged with fraudulent conduct in con-
necti(m with the transaction, which resulted
in what the plaintiffs complain of, they were
properly Joined with Berkley. It might
work great injustice to them if they were
not made parties, as not only the bonds, but
their reputations, were Involved. If they
were guilty of fraud at all, under the bill
they were as guilty as Berkley. Duckett v.
Bank, 86 Md. 400, 38 AU. 983. 39 L. R. A.
84, 63 Am. St Rep. 513; Id.. 88 Md. 8, 41
Atl. 161, 1062; Safe Deposit Co. t. Cahn.
102 Md. 530, 62 AtL 819. If they were not
guilty, they ought to demand, rath«ir than
avoid, an investigation. The AJax Company
was also clearly a proper party. Just how
the plaintiffs were deceived by the deed be-
ing made to that company and Mary L. Mac-
mullen and Jam^ Connell, as tenants in
common, is not clear; but as the bill al-
leges the sale was to the AJax Company,
and the deed was made to the three, that,
taken in connection with other allegations
in the) bill, as to the receipt of bonds and the
subsequent disposition of them by Mary I*
Macmullen and James C<»ineU, shows th^-
are ulso proper parties. The Mortgage Guar-
antee Company is the trustee in the doed of
trust given to secure the bonds. It is not
objecting to being made a party, and could
not well make a valid objection. On the con-
trary, it might well have asked to be made
a party, if it had not been. Nor is Aaron F.
Helple objecting. He is merely Interested In
seeing that the papers he found are properrly
disposed of. Nor do we see any valid ob-
jection by the State Bank of Maryland on
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BEACHEY ▼. HEIPLB
657
tbls ground. It Is true It is only Interested
In the $22,000 of bonds, so far as tbe! bill
discloses; but they were received from a
party who had no right to th«n, and whose
name at least was connected with the sale
made by the alleged fraudulent trustee, and
if the plaintiffs sustain their main contention
— that they are interested in all of the $80,-
000 of bonds— then, if there is any equity in
tboee bonds held by the bank, it is direictly
Interested In knowing who the real owners
are. Of course, if It is contended in the pro-
ceedings, as the bill indicates may be done,
that it is not a bona flde holder, but bad
notice of the alleged Interest of the plaintiffs.
It will be directly interested in the* whole
matter, to the extent of the bonds held by it;
for, if the plaintiffs have no Interest in the
bonds, then there! will be no question as to
whether the bank is a holder for value, with-
out notice of any defect in the title, but, if
thiey have audi interest, there may be the
further question— at least to be contested —
as to whether the bank is a bona flde bolder
for value. If there was a separate proceed-
ing for tho $22,000 of bonds, the costs nec-
essary to be incurred in undertaking to estab-
lish the right of the plaintiffs to the bonds
would be as great as they could be In this
case.
[3, 4] The objection to a bill <m the ground
of multifariousness "ought only to apply
where the case of each defendant is entirely
distinct from that of th« other defendants;
and it is not indlspoisable that all the par-
ties should have an interest In all the mat-
ters contained in the bill. It will be suffi-
cient if each party have an interest in some
mateirlal matters in the suit and that they
are connected with others." Miller's Bq.
Proc. 139, i 110; Phelps, Jurld. Eq. | 42.
"This objection is more frequently overruled
than sustained." Phelps, Jurld. Eq. ( 43.
Or, as said in note 3 to section 105 of Mil-
ler's Eq. Proc., it "is much more oftefn taken
than sustained." For cases Illustrating the
application of the doctrine, see Trego v. Skin-
ner, 42 Md. 428; Neal v. RatheU, 70 Md. 592,
17 AtL 568; Regester v. Regester, 104 Md.
S59, 65 Atl. 12; Murphy v. Penniman, 105
Md. 462, 66 Atl. 282, 121 Am. St. Bep. 583;
Ruhe v. Ruhe, 113 Md. 595, 77 Atl. 707 ; Roth
T. Stuerken, 124 Md. 404, 92 Atl. 808. If the
bill bad been held to be multifarious, the
plaintiffs might have befen put to their elec-
tion; but the bill woold not have been dis-
missed in toto. Miller's Eq. Proc. 114. The
court can amply protect all parties by sudi
decree or decrees as it may pass as to costs
in other matters. What was said by Judge!
Miller in Neal v. Rathell, supra, is sufficient
as to the suggestion that two decrees may be
necessary, to avoid a further discussion of
that
[5] 3. The Alleged Contradictory and In^
contittent AUoffatUnu. We confess our in-
ability to find such. While the bill refers to
the subject several times, it is distinctly and
unequivocally alleged throughout that Berk-
ley reported to the plaintiffs that he had sold
the property for $1,800 cash, a promissory
note for $3,100 (secured by bonds of $5,000
par value), and bonds of $15,000 par value,
while he in reality sold It for the cash and
note mentioned and $80,000 in bonds. The
statement that the plaintiffs ratify and ap-
prove the sale, and that the stockholders and
directors of the AJax Company did also, Is in
no wise contradictory or Inconsistent. If
they did not ai^rove or ratil^ the sale made
by the alleged fraudulent trustee, they cer-
tainly would not be entltleid to recover bonds
which were given in part pajrment theirefor.
Their suit to recover the bonds, etc., given
for the purchase!, would probably be all of
the ratification necessary, but the aIlegatl<Mi
can do no harm. The object in saying that
the AJaz Company approved and the stock-
holders and directors ratified it was simply
to show that the company was not seieklng
to avoid the sale by reason of Berkley's
fraud. If that had injured the company, and
it was not aware of the fraud at the time,
or did not afterwards ratify his action, pos-
sibly it could have decline!d to carry out the
sale. The plaintiffs did not ratify the fraud
of Berkley, or claim in the bUl that he did
not sell with their consent; but they com-
plain of his fraud In not truly represefntlng
to them the terms of sale, and giving himself
and others the benefit of part of the purchase
price to which they we!re entitled.
[1, 7] 4. There can be no possible question
about the Jurisdiction of a court of equity.
The plaintiffs are undertaking to establlsb
that a trust existed in their favor, and the
deed itself shows that Berkley held the
property as trustee. Even If a court of law
would have had Jurisdiction in some matters,
a court of equity, to say the least, certainly
has concurrent Jurisdiction in cases of
fraud, and special Jurisdiction in cases of
trust A court of law could not appoint a
new trustee, or give the plaintiffs all the
relief they are entitled to. If the facts were
as they allega The Mortgage Guarantee
Oompany, which holds the $15,000 of bonds,
to be delivered on the surrender of the in-
terim bond certificate, and the $5,000 of
bonds as security for the note, is a Mary-
land corporation. The $22,000 of bonds de-
livered to Mary Li Macmullen are held by
the State Bank of Maryland, and the $19,000
delivered to Connell were turned over to tlie
Walker-Wadsworth Company, as were the
other $43,000 of bonds, and it and the bank
are Maryland corporations. The proceeding
does not involve the title to real estate in
Pennsylvania, but bonds which are In Mary-
land, although secured on sudi real estate,
and the AJax Company, although a Pennsyl-
vania corporation, has its principal office in
Baltimore. There could be no possible doubt
about the right to proceed by publication
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101 ATLANTIC REPORTER
(Md.
against Berkley, trustee, as It is a proceed-
ing in rem and not In personam. Many au-
thorities miglit 1)6 cited to sustain the juris-
diction of a court of equity in such a case as
tliis, but it seems to us tliat it is only nec-
essary to recall the facts alleged and the fa-
miliar principles of equity procedure and the
grounds for relief, as thoroughly established
in this state.
[S] 5. Statute of Fraud*. As to the ob-
jection that the statute of frauds precludes
the plaintiffs from recovery, one of the cases
cited by the appellees as to multifariousness
might be cited aa an answer to that con-
tention. Ruhe T. Ruhe, supra. But there
are sereral complete answers to the objection
as now raised. Section 7 of St Car.. II, c.
3 (statute of frauds), does not provide that
the trust shall be constituted by writing, but
"all declarations or creations of trusts and
confidence, of any lands, tenements or
hereditaments shall be manifested and prov-
ed by some writing," etc. See Maccubbiu v.
CromweU, 7 Gill & J. 157; Gtordon v. Mc-
Culloh, 66 Md. 245, 7 Atl. 457. "It there-
fore follows that a Mil need not charge the
trust to be in writing ; at least it is not de-
murrable on that account, for the writing
is no part of the trust, but only the evidence
to prove it at the hearing. Davies v. Otty,
33 Beav. 540, afiSrmed on appeal Id., note;
Forster v. Hale, supra." 3 Ves. Jr., 696;
8. c., 6 Ves. Jr. 308; 2 Alex. Br. StaL (Coe's
Ed.) 743. In this bill the allegations are
ample.
[9, 10] But section 8, St 29 Car. II, takes
resulting trusts out of the statute, and such
trusts are not required to be in writing.
Without deeming it necessary to cite many
of the numerous cases on that subject, we
will content ourselves by referring to the
excellent volume last referred to, on pages
744-746, and to Dixon v. Dixon, 123 Md. 44,
90 Atl. 846, Ann. Gas. 1916D, 616, one of the
last expressions of this court on the subject
Of course, all such trusts must be clearly
proven, to justify the court in granting re-
Uef.
[11-13] 6. Deed Not Filed. The objection
that a copy of the deed from Berkley was
not filed was sufficient to prevent an in-
junction being issued, and we tliink it should
have been filed in order to justify relief oth-
er than the injunction prayed for. In Chap-
peU T. Clark, 92 Md. 98, 48 AtL 36, it was
held error to pass an order requiring a bond
to be given by the trustee, as well as grant-
ing an injunction before an exhibit was filed,
being contrary to what Is now section 142,
art Id. The court was entitled to have the
deed before it, as there may be something
in it which it would think reflected upon
some of the questions involved. We have no
means of knowing whether the lower court
sustained the demurrer on that ground alone,
although it is not probable that it would
have dismissed the bill simply for that rea-
son, aud as that is the only defect we find
in the bill which made it demurrable, we will
remand the cause without affirming or re-
versing the decree. A copy of the deed can
then be filed, and further proceedings taken.
We will follow the practice established by
this court when this course is pursued, Iv
letting the costs abide the result of the case.
7. What we have said above is sufficient
as to Berkley not now being l>efore the court
Defendants cannot oust plaintiffs by appear-
ing and demurring before an order of publi-
cation can be published against a necessary
nonresident party.
8. It is said the appellants do not come
into court with clean hands; but there is
notliing to show the application of that max-
im excepting statements outside of the
record.
[U] 9. IAmitation« and Lache*. Nor do
we think that the appellants' claim is barred
by limitations or ladies. 'Fbe original bill
was filed December 17, 1916, and in the
amended bill it Is distinctly alleged that the
plaintiffs were not aware of the real trans-
action until long after the original hill was
filed, and shortly before the amended bill
was filed, which was October 17, 1916. As
will be seen, the original bill was filed in less
than tliree years after the sale, and after
Berkley disappeared. The piaintUFs conlS
not be expected to proceed at once, as it
probably took a considerable time to ascer-
tain the necessary facts — what BerWey had
done with the papers, whether he could be
located, etc.
Cause remanded, without affirming or re-
versing the decree; the costs, above and
below, to abide the final result
(UO Hd. EST)
HAMIUrON CORP. v. JULIAN et aL
(No. &)
(Court of Appeals of Maryland. June 26, 1917.)
1. Nuisance 4s»19— Tbskatbned Nuisanob
—Injunction.
An injunction will be granted to restrain
acts which, when completed, wUl constitute a
nuisance.
[EM. Note.— For other cases, see Nuisance,
Cent Dig. f 56.]
2. Nuisance «=»3(9)— Pbivais INuuurcb" —
What Constitutes.
Bowling alleys and moving i)icture theaters
may become "nuisances" in certain places, whoi
they create a disturbance to the serions annoy-
ance and physical discomfort of persons of or£-
nary senBibUities living in the neighborhood.
[Ed. Note. — For other cases, see Nuisance,
Cent Dig. |§ 20-22.
For other definitions, see Words and Phrases,
First and Second Series, Nuisanceii]
3. Nuisance €=s>32— Thbkatkned Nuisance
— pukauinq.
Bill alleging that defendant is erecting a
building which can be used only as a bowling
alley and a moving picture theater, in an ex-
clusive residence neighborhood, and such use
4=3For otber ca»ei we «am« topic and KBT-NUUBBR In all Key-Numbered Dlgeets and Indezee
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HAMILTON CORP. >. JOLIAIf
569
will render plaintiffa' property untenable as a
home for themselves and aa a boarding house, is
sufficient to entitle plaintiffs to an injunction
against such use of the property.
[Ed. Note. — For other cases, see Nuisance,
Cent Dig. $§ 77-83.]
Appeal from Clrcnlt Court Baltimore
County, in Eqtiity ; Frank I. Duncan, Judge.
"To be offlrfally reported."
Bill by Ella 8. M. Julian and others
against the Hamilton Corporation. From
an order overruling defendant's demurrer,
it appeals. Affirmed.
Argued before BOYD, O. J., and BRISOOB,
THOMAS, URNER, and STOCKBRIDGE,
JJ.
John B. Gontrum, of Baltimore (Henry B.
Mann and John S. Biddison, both of Balti-
more, on the brief), for appellant C. M.
Armstrong, of Baltimore (J. Elmer Welshelt,
of Baltimore, on the brief), for appellees.
BRISCOE, J. This is a bill In equity
brought by the plaintiffs against the defend-
ant, in the circuit court for Baltimore coun-
ty, for an Injunrtion to enjoin and restrain
the defendant from erecting, maintaining,
and conducting a bowling alley and a mov-
ing picture theater building upon its lot In
the village of Hamilton, In Baltimore coun-
ty. Hie defendant is a corporation duly
Incorporated under the laws of the state
of Marj'land, and its incorporators reside
and own a lot in the village of Hamilton,
adjoining the plaintiffs' property. The plain-
tiffs are also residents of Hamilton, and own
a lot therein, improved by a dwelling hoUse,
which they occupy as a home, and where
they also conduct a boarding bouse as a
means of livelihood. The lot is described as
situate on the soulthwesterly side of Hamilton
avenue, having a frontage on this avenue
of about 50 feet, and extending thence south-
westerly, with an even width of 50 feet
about 214.2 feet, and designated as lot No. 8
on the plat of the land of the LauravlUe Hall
& Land Company of Baltimore County.
The bill alleges that the village of Ham-
ilton is exclusively a residential suburb
of Baltimore City, and that the section of
the plaintiffs' residence is exclusively a resi-
dential neighborhood, except several places
of business necessary and suitable for the
accommodation of the residenits of the com-
mnnlty, and that these by their ordinary and
proper use arc not calculated to interfere
witli or Impair the reasonable use and enjoy-
ment of property in the neighborhood by the
owners and occupants thereof. The bill then
avers that the defendant corporation is erect-
ing and constructing on its lot adjoining
the plaintiffs' property a bulldihg in which
they are going to conduct public bowling al-
leys for profit, that the building is of large
dimensions, over 100 feet in length by 50 feet
In -width, and Is within 25 feet of plaintiffs'
dwelling house, that this Imiiding is not sus-
ceptible of any other use, and that this use
will Impair the reasonable enjoyment of
the plaintiffs' property as a residence and a
boarding house, l^e bill farther diarges
that the defendant is also about to erect and
construct (m its loC another building where
they wUl conduct a moving picture theater,
and this building will be within 21 feet of
plaintiffs' dwelling, and that the uses to be
made of both buildings, with the noises in-
cident to such places, will work a special
injury to the plaintiffs and their property;
thajt both the bowling alleys and theater, to
be located and operated In the manner and
way as proposed, will deprive them of the
reasonable use and enjoyment of their prop-
erty rights, render it untenable as a home
for themselves, and destroy iits use and bene-
fit as a means of support for them, and make
it undesirable and unavailable as a place of
residence for their boarders and lodgers, and
greaUy impair its value.
The prayer of the bill is for an In-
junction restraining and enjoining the de-
fendant, the Hamilton corporation, (1)
from establishing, maintaining, or con-
ducting a bowling alley, or bowling al-
leys, upon the lot In the village of Hamilton,
in the Fourteenth election district of Balti-
more county, designated as lot No. 9 on said
plat of the Lauraville Hall & Land Company
of Baltimore County ; (2> that.the defendant
be enjoined from esltablishing, maintaining,
or conducting, or causing to be established,
maintained, or conducted, upon the lot, a
moving picture theater ; (3) that the defend-
ant be commanded and required to remove
immediately the bowling alley building now
being erected by them upon the lot, and en-
joined from erecting hereafter a bowling al-
ley building thereon ; (4) that the defendant
be enjoined from eredting or constructing
on the lot a moving picture theater building ;
(5) and for other and further relief aa their
case may require.
Subsequentiy the case was heard upmi the
bill and a demurrer thereto, and from an
order of court, passed on the 18th day of
December, 191C, overruling the demurrer
to the bill, with leave to answer, this appeal
has been taken.
The cause and grounds of the demurrer are
Stated to be: (1) That the plaintiffs have
not stated in their bill such a case as entitles
them to any relief in equtty against this de-
fendant (2) That the allegations of the bill
are too general, vague, uncertain, indefinite,
argumentative, and Infereotial to require this
defendant to answer the same, or to entitle
the plaintiffs to any relief in the premises.
[1] The object of the bill, it will be seen
from Its recitals, is in substance to enjoin
and restrain a prospective, probable, or
threatening nuisance, and the single question
here involved is whether Its averments of
fact, as admitted by the demurrer to be true,
are sufi&dent to entiUe the plaintiffs to the
relief sought by the bllL The rules of law.
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101 ATIAmCIC REPORTKS
(Ud.
ciontrolUiig the rights of parties under slm-
Uar facts and drcomstances, alleged by the
bill In this case, have been settled by numer-
ous decisions of this court. In Adams ▼.
Michael, 38 Md. 123, 17 Am. Rep. 616, it Is
said:
'"Dio general rule is that an injunction will
only be granted to restrain an actual existing
nuisance ; bat where It can be plainly seen that
acts which, when completed, will certainly con-
stitute or result in a grievous nuisance, or
where a party threatens or be^ns to do, or in-
sists upon bis right to do, certain acts, the court
will interfere though no nuisance may have been
actually committed, if the circumstances of the
case enable the court to form an opinion as to
the illegality of the acts complained of and that
irreparable injury will ensua"
See Dlttman ▼. Bepp, BO Md. 516, 33 Am.
B^. 325; Gbappell t. Funk, 57 Md. 465;
FertUlzer Co. t. Spangler, 86 Md. 562, 39
AtL 270; Hendrlcksou v. Standard Oil Co.,
126 Md. 578, 06 Atl. 163; Singer ▼. James,
ISO Md. 882, 100 AU. 642.
[2] While It Is tme that bowling alleys and
moving picture theaters-, kept and conducted
for profit, are not nuisances per se, yet they
may be and may become so In certain places,
when they create a disturbance to the serious
annoyance and idiysical discomfort to persons
of ordinary sensibilities living in the neigh-
borhood. 29 Qya U64, 1168, 1183; Harri-
Boa V. People, 101 111. App. 224; Cleveland
T. Citizens' Oas Co., 20 N. J. Eq. 201; Tuttle
T. Oburch (O. Q) 53 Fed. 426; Appeal of
Ladles' Decorative Art Club (Pa.) 13 Atl. 639.
In imey r. A'Heam (Ey.) 18 a W. 630, the
court held that In similar cases a party is
not required to wait until the injury is in-
flicted. The object of the writ is preventive
and It wards off the injury. The case must
be a clear one; but If the danger be probable
and threatening, and likely to ensue, the aid
of the court may be invoked. Broder v.
SalUard, 2 Cb. Div. 602; Ball v. Bay, 8 Ch.
App. 471; Crump v. Lambert, L. B. 3 Eq.
Cas. 409; Smelting Co. v. Tipping, 11 H. L.
Cases, 642.
[S] In the present case, the averments of
the bill are sufficient, if they can be siustained
by the proper proof, to warrant the granting
of the relief sought by the bill. The real
question In all such cases, as stated by the
authoritiKS, Is whether the nuisance complain-
ed of will or does produce such a condition of
things as in the Judgment of reasonable men
is naturally productive of actual physical
discomfort to persons of ordinary sensibil-
ities and of ordinary tastes and habits, and
as, in view of the circumstances of the case,
is unreasonable and In derogation of the
rights of the party. A proq>ectlve or threat-
ening nuisance is subject to the same test
and against which a party would have a
dear right to prevraitlve relief In equity.
In view of the averments of the hill in this
case, and in the absence of answer and proof,
we must hold upon the authorities that the
court below was entlrrfy right in overruling
the demurrer, and in requiring the defendant
to answer the plaintiffs* MIL
Order afflrmed; tbe appdlant to paj Um
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WHITAKER V. MAYOR, ETC., OP DUMONT BOROUOH
661
(90 N. J. Law, 383)
WHITAKER et «1. v. MAYOR AND COUN-
CIL OF DUMONT BOROUOH.
(Supreme Coart of New Jersey. Aug. 11, 1917.)
1. MUNICIFAI. CORPOKATIONS *=>456(4)— PCB-
LIO IMPBOVSMENTS— SFBOIAL ASSKSSMENTS—
Validitt.
Borough Act (1 Comp. St 1910, p. 244) I
83, par. 1, provides for laying out and opening
np streets; and paragraph 2 authorizes a single
ordinance for making several improvements in
a street already laid out. Held, that an assess-
ment attempting a single levy lor laying out a
new street and for grading and for construction
of sidewalks is invalid.
2. Mdnicipai. Cobfokatiors *=>45e(4)— Pttb-
uo IicPBOVKKKNTS— Special Assebsiointb—
Vauditt.
Since the cost of sidewalks must be paid by
the owners of the lands in front of which they
are constructed, an assessment for laying out
and opening a street, for grading, and including
an amount for sidewalk construction, is invalid.
Certiorari by Benjamin J. Whltaker and
otbers against the Mayor and Council of the
Borough of Damont, to set aside assessments
for special benefits. Assessments set aside.
Argued February term, 1917, before SWAY-
ZE, iSJNTUBN, and KALISCH, JJ.
William M. Senfert, ot Englewood, for pros-
ecutor. Frank G. Turner, of Jersey City, for
respondent.
SWAYZB, J. Although the writ removes
only the assessment, tbe prosecutor Improper-
ly assigns reasons for getting aside the or-
dinances nnder which the Improvements were
made. The Justice who allowed the writ
acted advisedly in limiting its scope. The
prosecutor had allowed the time for ques-
tioning the ordinances to pass by, and he
could only question the assessment. Ttda
consideration disposes of most of the reasons
assigned.
[1] In order to determine the question of
the validity of the assessment, we have had
to pick out from the voltunlnouB and some-
'wbat confused record the essential facts.
Three ordinances were approved April 11,
1911. One established the grade of part of
Madison avenue. One provided that the av-
enue be widened to 60 feet where It was then
less, that it be graded and improved accord-
ing to the grade to be established therefor,
that the improvements be done according to
emch plans and specifications as the mayor and
council might adopt therefor, and that the
cost be assessed upon the property benefited
thereby. The third provided for the construc-
tion of cement sidewalks. Subsequently the
txirough authorities called for bids "covering
tbe grading work and construction of cement
sidewalks." Separate bids were received
and separate contracts were awarded (1) for
tbe sidewalks; (2) for tbe grading and ma-
cadamizing. Subsequently some additional
grading, macadamizing, and improving was
done. On March 16, 1915, the cost and ex-
p^ues were ascertained to be $11,368.49, of
which $7,869.76 was for roadway oonstruo
tion and $3,827.84 was for "sidewalk grad-
ing." Of the total, aU but $670.24 was as-
sessed on property owners as special benefits.
The return of the commissioners shows that
their assessment was for laying out, opening,
and improvement of Madison avenue. Ob-
viously this is not an assessment of the cost
of grading and paving and laying sidewalks.
Section 3 of the Borough Act discriminates
between laying out and opening, which are
provided for in paragraph I, and grading
and paving, which are provided for in para-
graph II. Paragraph II authorizes a ^ngle
ordinance for tbe making of more than onn
of the improvements therein specified, all of
which are cognate in character and relate to
the improvement of existing streets, but does
not authorize the inclusion in the same or-
dinance of provisions as to laying out and
opening, which have to do with new streets.
Moreover, paragraph II requires a separate
assessment of damages and benefits for each
improvement, and, whatever doubt there may
be as to the extent to which this goes (Cook
V. Manasquan, 80 N. J. Law, 206, 76 Atl. SIO),
there can be no doubt that a distinction must
be made between benefits due to laying out
and opening under paragraph I and improve-
ments under paragraph II. The observance
of the rule is especially Important in a case
like the present, where there was no orOi-
nance to lay out and open a street, and appar-
ently no laying out and opening in point of
fact. We cannot tell how much of the assess-
ments the commissioners attributed to lay-
ing out and opening, and how much to the
improvement of the street - AU we can tell
from the return is that some ot tbe assess-
ment was for laying out and opening for
which there was no anthority.
[2] There is a further difiicnlty. Hie
amount of the assessment is much In excess
of the cost of the street improvement, and ob-
viously includes some of the cost of the side-
walks. The return of the commissioners says
nothing about an assessment for tbe side-
walks. Under the statute, the cost of side-
walks is to be paid by the owners ot the lands
in front ot which the same is constructed, a
very different method from that ot an assess-
ment for benefits, lbs oommlssioners could
not legally have combined the two in a single
assessment, and it is probably tor that reason
that they returned no assessment tor side-
walks ; but they could not, by thus omitting
to assess tor sidewalks according to the stat-
ute, clothe themselves with anthority to as-
sess for the street improvements more than
they cost The suggestion that the expense
of the sidewalks was not included in the
$11,368.40 for which the assessment was made
is futile. The determination of cost on page
68 shows that there was included for "side-
walk grading" $3,327.84. This determination
we must assume to be correct although the
B)For otbar «
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I toplo and KBT'MUIIBBB In All Kay-Numberad DigasU and Indasas
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101 ATIiANTIO REPOKTBB
(N.J.
amount seems large for grading alone. The
resolution printed on page 142, on which
counsel relies, must be incorrect. The item
"side grading" has no meaning that we can
ascertain, unless it refers to the sidewalks.
Moreover, there was a contract for the con-
struction of sidewalks, and as near as we
can tell the road construction alone would
not, under the contract therefor, amount to
the total cost as ascertained.
The assessment must be set aside, with
costs. As to the sidewalks there should be
a new assessment. Whether a new assess-
ment of the cost of the street Improvement
Is permissible is not clear. The answer to
the question seems to depend chiefly on
whether the ordinances authorized the ma-
cadamizing of the street We will hear
counsel as to the form of the Judgment to be
entered.
(90 N. J. Lav, t78)
TRENTON & MERCER COUNTY TRAC-
TION CORP. V. INHABITANTS OF
CITY OF TRENTON et al.
(Supreme Ourt of New Jersey. Aug. 2, 1917.)
1. Carriebs €=»12(4) — Regulation — Fares
— JUKISDICnON.
Public Utility Commission has jurisdiction,
under P. L. 1011, p. 380, J 17h, to forbid street
railways to ^ut ioto effect proposed withdrawal
of sale of SIX tickets for 25 cents, increasing
rate to 5 cents.
2. Cabbierb «=3ia(9)— Contract as to Ratxb
—Rescission.
Street railway company cannot rescind con-
tract with city as to fares because of its own
mistake, not induced by city, as to power re-
served by city to alter its franchise ordinances.
3. Carriers <S=>12(9)— Contract as to Rates
—When Complete.
Where street railway company's directors
had ordered its officers to execute agreement as
to fares on passage of ordinance of same tenor
and officers cannot vary its terms and directors
do not intend to pass on matter again, agree-
ment becomes binding on passage of oruinance,
since all that remains to be done' is to execute
formal contract.
4. Carriers 0=9l2(9)— Gontbaot as to Ratbs
— CoNsi deration.
Where city was threatening to alter fran-
chises of street railway company to its detri-
ment, passage of ordinance which does not con-
tain threatened changes is sufficient consider-
ation for agreement of company to continue ex-
isting fares.
5. Carriebs iS=»12(0)— Contract as to Rates
— ErPBCT ON Lessor Roaos.
An ordinance as to street oar fares, passed
by agreement between city and company, is
binding also as to line^ of companies under long-
term leases to party to agreement.
Certiorari by Trenton 4 Mercer County
Traction Corporation against the Inhabitants
of the City of Trenton and otliers, to review
an ordn of the Board of Public Utility Com-
missioners. AfDrmed.
Argued November term, 1916, before
SWAYZE, MINTURN, and KALISCH, J J.
Frank S. Katzenbach, Jr., of Trenton (Ed-
ward M. Hunt, of Trenton, on the briefX for
prosecutor. George L. Record, of Trenton
(Charles E. Bird, of Trenton, on the brief),
for City of Trenton. Pranic H. Sommer, of
Newark, for Board of Public Utility <^minis-
sioners.
SWAYZE, J. Although the voluminous rec-
ord In this case has necessarily required a
long time to examine, the decision may well
be rested on a single point, and that wlthhi
narrow compass. The prosecutor seeks to set
aside an order forbidding It to put into ef-
fect a proposed withdrawal <tf the sale of six
tickets for 25 cents on street railways operat-
ed by it. These railways are three in number,
the Trenton Street Railway (Company, the
Mercer County Traction Company, and the
Trenton, Hamilton & Ewlng Traction Com-
pany. They are operated under leases and
agreements of October 15, 1910. The two
latter had been leased t>rior to 1909 to the
Qrst named for 999 years.
[t] We think It dear that the Public Utili-
ty Commission had jurisdiction under sec-
tion 17, par. "h" of the act. P. U 1911, 380.
The withdrawal of the sale of six tickets for
a quarter was an Increase of an existing late
under which 82 per cent, of the passengers
carried paid a fare of only 4Va cents ; by the
proposed .withdrawal they would be forced to
pay a fare of 6 cents.
[2] We find It unnecessary to pass upon the
question whether the original ordinances and
their acceptance amounted to a contract by
which the companies were authorized to
charge as much as 6 cents, <>r whether they
amounted only to a limitation by which the
companies were forbidden to charge more
ttian 6 cents. It is likewise unnecessary in
our view to consider whether a fare of 4i/«
cents Is reasonable in view of present condi-
tions and ttve situation of the company. We
find that In 1909 a new contract was made
between the city and the company which re-'
quires the coiqpany to sell six tickets for 25
cents upon all cars operated in the dty of
Trenton. The facts are as follows: For
i^any years tickets had been sold at that rate
In 1909 the street railway company, proposed
to stop the sale. Naturally great public In-
ter^t was aroused, threats were made of at-
tacks upon the franchises of the company,
and the city authorities were preparing for
such an attack and for amendments of the
ordinances. An agreement was reached by
negotiation, and on October 4, 1909, the Troi-
ton Street Railway Company adopted a reso-
lution waiving its right to notice of altera-
tions . in the ordinances, and directing Us
officers to execute an agreement already pre-
pared' (a copy of which was set forth). Imme-
diately after the passage of a new ordinance,
a draft of which had been submitted by the
city counsel to the railway company. This
ordinance provided for the sale of tickets
at the old rate by the company upon all can
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N. 3.) TRENTON & M. COUNTY T. CORP. v. INHABITANTS OP TRENTON
663
operated in the city of Trenton. The ordi-
nance was passed by the common oonncll on
October 19th and approved by the mayor on
October 22d, 18 days after the resolution of
the railway company. Had the agreement
been signed by the officers of the company as
directed by the resolution of October 4th on
the faith of .which the city passed the ordi-
nance, no question could have arisen. In-
stead of that, the company, after the passage
of the ordinance, rescinded the resolution be-
cause, as the rescinding resolution states. It
was falsely recited therein that the city had
reserved the right to alter the ordinances
whenever in the Judgment of the common
council it became necessary for the public
good. It is a little difficult to understand
upon what theory it is stq>po8ed the false re-
cital vitiates the action of the company. It
is not charged that the dty did anything to
mislead the company In this respect ; it could
not have done so, since the ordinances were
necessarily aa well known to the company as
to the city; and the proposed written form
of contract, submitted by the dty counsel, re-
dted what was the exact truth, that the right
of alteration or amendment was reserved "by
the several ordinances aforesaid or some of
them." The addition of the qualifying words
was enough to call the attention of the com-
pany to the existence of a question as to
the extent of the dty's right. With this
draft before them, the directors chose to put
a broader statement in the recitals of their
own resolution. Manifestly they ought not
to be permitted for their own mistake to with-
draw from the agreement after the dty had
acted thereon.
[3] It is argued that the parties did not
intend that there should be a complete con-
tract until the written agreement was execut-
ed. The case, It is said, Is within the rule
of Water Ck>mmlssloners of Jersey City v.
Brown, 32 N. J. Law, 504, dedded by the
Court. of Errors and Appeals in 1866, and ap-
plied by the Supreme Court in Donnelly v.
Currie Hardware Co., 66 N. J. Law, 388, 49
AtL 428. These cases are not applicable. In
tbe first the water commissioners directed
that thdr engineer and attorney should pre-
pare a contract and submit the same for ap-
proval by the board before bdng executed.
The court said that several particulars as to
fbe time of finishing the work, as to the man-
ner of doing it, and as to the guaranty of
its permanence remained to be settled. The
second case was dedded upon the ground
tbat there had been no agreement as to the
time allowed for beginning and completing
tbe -work and the mode of payment, matters
wblcli are generally provided for In such ar-
rangements. As Lord Cranworth said in
Rld&eway v. Wharton, 6 H. of L. Cases, 238,
at 268, the fact that the parties Intend a sub-
sequent agreement to be made Is strong evi-
dence to show that they did not Intend the
previous negotiations to amount to an agree-
ment; but at the same time he protested
against Its being supposed because persons
wish to have a formal agreement drawn ujk
that therefore they cannot be bound by a pre-
vious agreement If it is clear that such an
agreement bad been made ; and he expressed
his approval of Sir Wllllnm Grant's dedslon
In the leading case of Fowle v. Freeman, 9-
Vesey, 851. In Wharton v. Stontenbnrgb, 35
N. J. Eq. 266, it was held that a final agree-
ment had been reached, although the parties
Intended that a lease embodying the agree-
ment should be executed. Tbe applicability
of that case to tbe present is not weakened by
the fact that a written memorandum would
have been there necessary to satisfy the stat-
ute of frauds If the vendee had not taken pos-
session. The taking possession did not supply
the terms of the lease, and before decreeing
that the lease should be executed. It was nec-
essary for the court to find that a final agree-
ment had been previously reached, and that
the execution of the lease was necessary only
by way of part performance of the agree-
ment, and not as a condition precedent to the
existence of a final agreement. The facts of
the present case bring it within the rule of
Wharton v. Stoutenburgbu The draft agree-
ment had been submitted by the dty to the
company; the company had assented to Its
terms ; all that remained was for tbe execu-
tive officers to execute the written Instrument
in whldi the terms of the agreement were set
forth ; but the officers had no power to vary
the terms, and it was not contemplated that
the directors should again pass on the matter.
Tbe case is as if in Water Commissioners of
Jersey City v. Brown, the agreement bad
been already prepared and adopted by tbe
water commissioners.
[4] There was sufficient legal considera-
tion for the agreement by the company. It
is true the ordinance did not affirmatively
concede any benefit to the company; on its
face it was rather a detriment; but that is
too narrow a view to take. The situation
was that the company was liable to attack,
and the ordinances might t>e altered or
amended in such a way aa to be very harm-
ful, or at least productive of long and expen-
sive litigation. What the company secured
was the adoption of an ordinance which con-
tained no such drastic changes; the benefit
to the company was in what the ordinance
omitted, not In what it contained. In saying
this, we are not to be understood as suggest-
ing that the mere act of passing the ordi-
nance in pursuance of the agreement would
not be a suffident consideration in a legal
sense.
We think there was a valid contract requir-
ing the company to sell six tickets for a quar-
ter, and hence the Public Utility Commission-
ers might well conclude that such a rate wa»
Just and reasonable under the circumstances
of the case.
£5] It is said, however, that the Mercer
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101 ATIiANTIG BBPORTBB
(N.J.
County Traction Company and the Trentcm
and Hamilton & Ewing Traction Company
could not be affected by the ordinance be-
cause no official action was taken by either
with reference to its terms. This argument
overlooks the fact that both those com-
panies were at the time under lease to the
Trenton .Street Railway Company for a
term of which more than 990 years were
stUi to come. The probability of the two
lessor companies being affected prejudidaUy
by the ordinance is negligible.
The order la affirmed, with costs.
(88 N. J. bq. a» ■=■"■
FOUR CORNERS BLDG. & TX)AN ASS'N OF
NEWARK T. SCHWARZWABLDER.
(No. 42/244.)
(0>nrt «f Chancery of New Jersey. July 10,
1917.)
1. Neouobnoe «s>1— Definition.
Apart from any willful act, the "negligence"
for which a person can be held responsible con-
sists either in the performance of an act which
under all the circumstances he is bound not to
perform, or the nonperformance of an act which
under all the circumstances ho is bound to per-
form.
[Ed. Note. — For other definitions, seo Words
and Phrases, First and Second Series, Negli-
gence.]
2. Buiu>iNa AND Loan Associations #=»
23(8) — Gboss Neolioenob or Dibeotob —
Knowlkdoe or Mestino.
A director of a building and loan associa-
tion was guilty of gross negligence in permit-
ting the secretary to pursue the custom of call-
ing up various members of the board of direc-
tors on the occasion of a meeting and getting
their permission to note them as present when
they were absent, and the director must be held
bound for such knowledge as he would have ac-
quired if in fact present at a meeting.
8. BniLDiNO ANn Loan Associations 4=>
23(8)— Knowledge ov Dibectob.
Where a director of a building and loan
association was not present at a meeting at
which the minutes stated a report on an appli-
cation for loan was made by the committee of
which the director was a member, or at a meet-
ing at which the loan was transferred from the
applicant to another, but he was present at the
meeting at which minutes of the meeting when
the loan was transferred were approved, he was
bound hy knowledge of whatever appeared in
the minutes.
4, BinLDiNO AND Loan Associationb 9s>
23(8)— "Nbouoencs" of Dibectob— Liabii.-
ITY.
Where a director of a building and loan as-
sociation, also executor of a decedent's estate,
permitted the association to make a loan on
premises on which the estate held a mortgage,
the director, knowing of the application, and
of the issuance by the association of the check
therefor in time to have stopped payment, was
guilty of such negligence as rendered him re-
sponsible to the association for the loss occa-
sioned it by reason of his failure to act.
6. Building and Loan Associations <S=»
23(8)— "Neguobnce" of Dibectob— Liabu.-
ITT.
Where the minutes of a meeting of directors
of a building and loan association at which de-
fendant director was present showed that the
treasurer reported a disbursement on account
of a particular mortga^, and defendant di-
rector, had he made inquiries, would have ascer-
tained immediately that the money had been
advanced on property on which the estate rep-
resented by him as executor already held a mort-
gage, and would also have discovered that the
loan had never been authorized by the associa-
tion, BO that the disbursement was illegal, the
director was guilty of such "negligence" as to
make him responsible for consequent loss to
the association; it being his duty, under the
constitution of the association, to loan the funds
and gee to their safe investment.
8. Building and Loan Associations «=>
23(8) — Dibectobs — Delegation of Duties
TO Counsel.
The directors of a building and loan asso-
ciation have no right to shift to their counsel
the duty imposed on them to loan the associa-
tion's funds and see to their safe investment.
7. Building and Loan Associations
23(8)— Liabilitt of Dibectob.
'That other directors of a building and loan
association were responsible for any loss to the
association through a loan, as well as defendant
director, was no objection to relief to the aa-
soaation as against defendant director.
Suit between the Four Comers Building &
Loan Association of Newark and Frank
Schwarzwaelder. Further argument directed.
Raymond, Mountain, Tan Blarcom & Marsh,
of Newark, for complainant. Francis ChUd
and Thomas S. Henry, both ol Newark, for
defendant
LANE, V. O. This Is a proceeding to com-
pel defendant to reimlmrse complainant for
losses alleged to have been sustained by com-
plainant on account of two loans, one of 95,-
000 on property in South Orange, and one of
?4,000 on property In Bast Orange.
The complainant is a building and loan as-
sociation, and the defendant was one of Its
directors at the times the respective loans
were made. TSxe defendant was also at the
same time one of the executors of the es-
tate of Loehnberg, which estate. It subse-
quently transpired, held mortgages, prior to
those of the building and loan association,
upon the prc^erties in question, with the re-
sult that, upon a foreclosure of a mortgage
prior to that held by the Loehnberg estate on
the South Orange property, the equity of the
building and loan association was wiped oat,
and upon the foreclosure of the mortgage held
by the Loehnberg estate oa the Bast Orange
property the buUdlng and loan assodatioa. In
order to protect its rights, was obliged to buy
in the property, which it atlil holds. The
charge is that the defendant, as a director of
the building and loan association, has beea
guilty of such negligence as makes him re-
sponsible for the losses accruing to the build-
ing and loan association. In French v. Arm-
strong, 79 N. J. Eq. 283, 82 Atl. 101, Vice
Chancellor Stevens, in dealing with the re-
sponsibilities of directors of building and loan
associations, saia:
"In Williams v. McKay, 40 N. J. Eq. 1S9
[53 Am. Rep. 775], the case of a receiver of a
savings bank against its managers, it was held
by the Court of Errors that the receiver rep-
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FOUR CORNKRS BLDQ. <fc LOAK ASS'N t. SCSWARZWAELDBB
565
resents sot only the corporation, bat its de-
positors and creditors, and that the managers
stand to such depositors and creditors in the
character of trustees: that the trust was di-
rect, and that as such that it was exempt from
tho operation of the statute of limitations. It
appears to me that building and loan associa-
tions stand on very much the same footing as
savings banks. They are quasi public institn-
tions, dealt with as such by the Legislature
• • * and having very similar objects. They
are both designed to conserve the scanty sav-
ings of wage-earners and other people of small
means. If the managers of saving banks are
trustees of creditors and depositors, I see no
reason why the directors of building and loan
associations do not stand in precisely the same
relation to their creditors and so-called stock-
holdets."
And the Ooart of Appeals in Oertiard y.
Welsh, 80 N. J. Bq. 206, 82 AtL 871, dealing
with the responsibilities of directors of a
building and loan association, was apparently
of, although not directly so stating, the same
opinion, citing the opinion of the chancellor
on final hearing in Williams r. McKay, 46 N.
J. Eq. 25, 18 Atl. 824.
In Williams v. McKay, 40 N. J. Eq. 189,
at page 195, 53 Am. Hep. 775, the Court of
Appeals said:
"The duty belonging to sncfa a tdtnation is a
plain one— to care for the mon^s intrusted to
them in the manner provided m the charter,
and to exercise ordinary care and prudence in
Bo doing. It is true that the defendants were
unpaid servants, but the dut^- of bringing to
their office ordinary skill and vigilance was none
the less on that account, for to this extent there
is no distinction known to the law between a
▼olonteer and a salaried agent. These defend-
ants held themselves out to the public as the
managers of this bank, and by so doing they
severally engaged to carry it on in the same
ivay that men of common prudence and skill
conduct a similar business for themselves. This
is the measure of the responsibility of officers
of this kind."
And on final bearing the Cbanoellor, 46 N.
J. Eq. at page 56, 18 AtL at page 835, said:
"Trustees of the character of the defendants
are not merely required to be honest, but they
must also bring to the discharge of the duties
that they undertake ordinary competency, to-
gether with reasonable vigilance and care.
GTbey cannot excuse imprudence or indifference
by showing honesty of intention coupled with
g^ross ignorance and inexperience, or coupled
-with an absorption of their time and attention
in their private affairs. The rule in this respect
ia admirably stated by 3ud^e Barl of the Court
of Appeals of New York in Hun v. Gary, 82
N. X. 74 [37 Am. Rep. 6461, in this language:
'One who voluntarily takes tne position of direc-
tor and invites confidence in that relation, un-
dertakes, like a mandatory, with those wliom he
represents or for whom he acts, that he pos-
sesses at least ordinary knowledge and skill, and
tbat he will bring them to bear in the discharge
of bis duties. Such is the rule applicable to
public offlcers, to professional men, and to
mechanics, and such is the rule which must be
applicable to every person who undertakes to
act for another in a situation or employment
requiring skill and knowledge gratuitously.
Crbese defendants ordinarily took the position of
trustees of the bank. They invited depositors
to confide to them their savings and to intrust
the safe-keeping and manogement of them to
their skill and prudence. Tbey undertook, not
4>nly that they would discharge their duties with
prox>er care, but that they would exercise the
ordinary skill and judgment requisite for the
discharge of their delicate trust, "
And see Campbell, Receiver, t. Watson, 02
N. J. Eq. 396, 50 Atl. 120, and Barrett t.
Bloomfield Savings InsUtution, 64 M. J. Eq,
425 54 AtL 543.
In BrlggB V. Spauldlng, 141 U. S. 132, 11
Sup. Ct 924, 35 L, Ed. 662, the Supreme Court
of the United States in dealing with the lia-
bility of directors said with respect to what
is negligence:
''If very little care is due from him, and he
fails to bestow that little, it is called gross
negligence. If very great care is due, and he
fails to come np to the mark required, it is
called slight negligence. And if ordinary care is
due, such as a prudent man would exercise ia
bis own affairs, failure to bestow that amount
of care is called ordinary negligence. In each
case the negligence, whatever epithet we give
it, ia failure to bestow the care and skill which
tho situation demands; and hence it is more
Mrictly accurate, perhaps, to call it simply
'negligence.' • • * In any view the degree
of care to which these defendants were bound ia
that which ordinarily prudent and diligent men
would exercise under similar circumstances, and
in determining that the restrictions of the stat-
ute and the usages of business should be taken
into account. What may be negligence in one
case may not be want of ordinary care in an-
other, and the question of negligence is there-
fore ultimately a question of fact, to be deter-
mined undor all the drcnmstances."
[1] It seems to me that leaving out of con-
sideration any willful act the negligence for
which a person can be held responsible con-
sists either In the performance of an act
which under all the drcumstauces he Is bound
not to perform or the nonperformance of an
act whldi under all the drciunstanoes he is
bound to perform.
In Citizens' Building, Loan & Sav. Associ-
ation r. Corlell, 34 N. J. Eq. at page 392, the
court said, referring to and approving an
opinion by the Pennsylvania court:
"It was there said that, while directors ai«
personally responsible to the stodsbolders for
any losses resulting from fraud, embezzlement^
or willful misconduct, or breach of trust, for
their own benefit, and not for the benefit m the
stockholders, for gross inattention and net^-
gence, by which such fraud or misconduct has
been perpetrated by agents, officers, or codirec-
tors, yet they are not bable for mistakes of judg-
ment, even though they may be so gross as to
appear absurd and ridicnlous, provided they are
honest, and are fairly within the scope of the
powers and discretion confided to the managing
body."
Qusre, whether the last remark Is quite
consistent with the duty of a person becom-
ing a director In an institution such as a
building and loan association to bring to his
office ordinary competency? In this case
there is no charge, or at least no proof, of
fraud, embezzlement, or willful misconduct,
or breach of trust for the benefit of the de-
fendant, nor is there any question of a mis-
take of Judgment The sole question la
whether the defendant was quilty of gross
inattention and negligence (which means
simply the failure to give such attention and
to perform such acts as the circumstances
required) as to make posslNe the fraud and
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101 ATLA.NTIO REPORTBB
(N.J.
misconduct which was undoubtedly i>erpe-
trated by an officer of the complainant.
First. The facts are as follows with re-
spect to the South Orange loan: Roland D.
Crocker was the solicitor for the association.
In 1909 be conveyed the property to Mabel
Daly, who Immediately made a mortgage to
the executors of the estate of Loehnberg, of
whom defendant was one. The property was
then immediately reconveyed by the Dalys to
Crodter, who held title unUl April 1, 191S,
when he conveyed It to Arthur M. Sims, who
by instrument dated on the same day mort-
gaged it to the complainant Crocker caused
an application to be made to the complain-
ant for a loan on the property as early as
October, 1912, in the name of Louis Wagner,
tor 17,000. The defendant was appointed
one of the inspection committee. At a meet*
ing of the directors held on the 25th of Oc-
tober, 1912, at which the defendant was
present, a report of the defendant, the only
one of the committee reporting, was present-
ed, recommending a loan of $5,000. The
property Is clearly described In the mlnutea
On the 2Sth of February, 1913, at a meeting
of the directors at wlilch the defendant was
present. It was recommended that the ofD-
cers be empowered to grant such amount of
the loan as should be unanimously recom-
mended by the committee, which Included
the defendant. The minutes of a meeting of
the directors held on March 28, 1913, the
defendant not being present, state that all
the members of committee recommended that
a loan of $5,000 be granted to Louis Wagner
on the property in question. The next ref-
erence to the matter Is In the minutes of a
meeting held on April 25, 1913, at which
the defendant was not present. The minutes
state:
"Referring to application for loan by Louis
Wagner, Brooklyn, N. Y., to whom a loan of
$5,000 was granted on property 60-62 south
side of Second street, South Orange, Mr. Wag-
ner having sold the property to Arthur Sims,
and all of the committee, Mr. Frank Shulz and
Mr. Thomas F. Peer and Mr. Frank Schwara-
^adder, reporting in favor of loan of $5,000
to Arthur Sims on property 60-^ south side
Second street, South Orange, K. J., it was, on
motion of Mr. Merlinger, seconded by Mr.
Stone, ordered that the committee recommenda-
tion be received and granted."
[2] The minutes of a meeting of May 23,
1913, at whldi, according to the minutes, de-
fendant was present, state:
"On motion duly made and seconded, minutes
of last meeting and special meeting were ap-
proved."
And at the same meeting the treasurer's
report was received, the first item of dis-
bursement being the sum of $4,813.50 for Ar-
thur Sims mortgage. Again at a meeting of
the directors July 2, 1913, at which the de-
fendant, according to the minutes, was pres-
ent, the minutes of May 23, 1913, were read
and approved. It is insisted for the defend-
ant that the fact that the minutes of May 23
and July 2, 1913. indicate that he was pres-
ent does not prove that fact, because It was
a custom of the secretary to. If there was a
lack of quorum, call up various members of
the board and get their permission to note
them as present The defendant swears that
he never knew of any loan to a man named
Sims, and that therefore it must be that the
secretary pursued the course heretofore ad-
verted to with respect to these two meetings.
If this be true, then the defendant Is un-
questionably guilty of gross negligence in
permitting such a practice to be pursued,
and he must be held bound for such knowl-
edge as he would have acquired If he were
in fact present In considering this phase
of the case I have dealt with it as if he
were in fact present at the two meetings in
question, and I find as a fact that there is
not sufficient evidence to indicate tliat the
minutes are Incorrect Crocker caused to be
filed a forged satisfaction of the mortgage
held by the Loehnberg estate, and also caus-
ed to be filed a forged satisfaction of a first
mortgage held by one Bercaw upon the prop-
erty. The Bercaw mortgage was foreclosed,
and the property sold for less than a suffi-
cient amotut to pay anything on the subse-
quent Incumbrances.
[S] The testimony is to the effect that
the defendant examined the premises In
question as executor of the Loehnberg es-
tate upon various occasions, that he was
familiar with the loan, and that he received
Interest regularly from Crocker until he dis-
appeared in September, 1914. It is incon-
ceivable to me that, when be acted as an
inspector upon the application of Louis Wag-
ner, and examined, as he says, the proper!?,
he did not realize that an application was
being made to the building and loan associ-
ation for a loan upon pr(^;>erty upon whidi
he already held a mortgage. He advised the
loan. He made no inquiry as to liow bis
mortgage was going to be taken care of. 'Ae
officers were empowered to grant a loan at
a meeting at which he was present, and he
still took no steps either to inquire as to
how his loan was going to be taken care of
or to advise the association that the estate
which he represented held a mortgage. Al-
though he was not present at the meeting
held March 28, 1913, at which the minutes
state a report was made by the committee of
which he was a member, recommending that
a loan of $6,000 should be granted, (w at
the meeting of April 25, 1913, at whicb
time the loan was transferred from Wagner
to Sims, yet be was present at the meeting
of May 23, 1913, at which the minutes of the
meeting of April 25, 1913, were approved, and
he is therefore bound by knowledge of what-
ever appears In these minutes. The minutes
of AprU 25, 1918, distinctly refer to the
transfer from Wagner to Sims, and describe
the property, and refer to the fact that all
the members of the committee, including him-
self, had reported in favor of the loan. At
the meeting of May 23, 1913, he made no
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FOUR CORNERS BLDO. <fc UiAJS ASS'K v. SOHWARZWAELDER
667
liiquli7 as to how the money due on the
mortgage held by the estate that he repre-
sented wonld be paid, nor did he notify hla
fellow directors of the existence of such a
mortgage^ At the same meeting the treas-
urer reported that he had disbursed the
sum of $4313.50 for the Arthur Sims mort-
gage. Apparently, If the defendant's story
is to be believed, he sat quiet when this re-
port was presented and made no Inquiry
whatever to ascertain the authority of the
treasurer for the disbursement of this large
sum of money. He knew that he had recom-
mended a loan of $5,000 on property already
Incumbered by a mortgage under his control,
and from October to May made no Inquiry
as to what had become of the matter. 'Hie
check was not paid until July 10, 1013, so
that if he had protested on May 23, 1913,
the payment of the check might have been
stopped. On July 2, 1913, at a meeting at
which the defendant was present, and before
the payment of the check, the minutes of
May 23, 1913, were approved, and the Sims
mortgage, at least constructively called to
Ills attention.
[4] It seems to me that all of the circum-
stances Indicate that with respect to this
loan the defendant is guilty of such negli-
gence as renders him responisible for the loss
which was occasioned to the association by
reason of his failure to act The duties of
the directors of the association are defined
In section 2, art 9, of the Constitution:
"Section 2. The board of directors shall meet
regularly at four p. m. on tho third Thursday
of each and every month, at such place as they
or a majority shall appoint for the purpose of
receiving from the stockholders their monthly
dues, interest and fines, and pay the same into
tho treasury; to loan out the funds and see
to their safe investment, and to attend to the
financial concerns of the association senerally."
Article 2, § 3, provides:
"No money sliall be loaned on any property
already incumbered."
Under -the authorities to which I hav^ re-
ferred It is no excuse to say that the defend-
ant was ignorant and incompetent or so en-
groEScid in his own affairs as not to be able
to give proper attention to the affairs of the
building and loan association. He was bound
to apply to his duties as director of the build->
ing and loan association that degree of care
wtilcli an orainarlly prudent man would ex-
ercise with respect to Ms own affairs.
The question is the amount of damages
for which he may be held. If it appears that
the first mortgage v^as foredoscSd and that
the property did not realize sufficient to pay
the first mortgage, then, if in fact the defend-
ant had brought to the attention of the build-
ing and loan association the existence of his
mortgage, it is, of course, conceivable that
Ills mortgage might have been paid off out of
the proceeds of the loan, and the loan still
made, and stUl wonld have resulteU in the
loss. It Is, on the other hand, conceivable
.tDat If the existence of this second mortgage
held by the Loehnberg estate had been dis-
closed, then an Investigation would have been
made which might have disclosed the exist-
ence of the prior mortgage and the rascality
of Crocker an'd would have saved the associa-
tion from any loss. Upon this point I desire
to bear counsel.
[S] Second. With respect to the East Or-
ange loan. There Is nothing in the minutes
of the board of directors authorizing the
granting of the loan to Aschenbach on the
property in East Orange. The files merely
show an application signed by Aschenbach,
without date, asking for a loan of $4,000. It
bears the name of William B. Howell, Robert
Ii. Hopkins, as the committee recommending
it. It contains no description of the property
except "Map of Ampere section of property
of East Orange Ampere Loan Company." In
December, 1909, William H. Daly and wife
had executed a mortgage to the Loehnberg
estate of which defendant was executor, for
$4,000. In September, 1910, Albert B. Aschen-
bach an'd wife executed a mortgage to the
complainant association for $4,000 upon the
same property. The only reference to this
loan is contained in the minutes of a meet-
ing of the board of directors held on Septem-
ber 22, 1910, at which the defendant was
present, at which the treasurer reported a dis-
bursement on September 4th of $3,019 on ac-
count of Aschenbach mortgage. The defend-
ant made no Inquiries with respect to this pay-
ment. If he had, he would have Immediately
discovered tlmt the money had been advanced
upon property upon which the estate repre-
sented by him already held a mortgage. He
would also have discovered that the loan had
never been authorized and the disbursement
was therefore Illegal. Unless reports of offi-
cers are to be received and approved pro
forma and members of a board of directors
excused from any Investigation whatever. It
seems to me that the act of the d^endant was
gross Inattention and such negligence as make
him responsible for the consequences of ills
inattention. I cannot conceive tbbt he has
performed his duty as a member of the board
of directors, intrusted with the savings of
poor Investors whose duties are defined to be
"to loan out the funds and see to their safe
investment." Here again the question arises
as to the' measure of damages. The Loehn-
berg mortgage was foreclosed,, the property
bought in by the association, which still holds
it. I will hear counsel upon this point.
[8] In defense of this director It is said that
he properly relied upon Counsel of the associa-
tion, Crocker, who up to the time he abscond-
ed In September, 1914, bore an excellent rep-
utation. The duty of counsel Is to act as
legal adviser to the board, to examine the
title to every security, and report thereon
to the directors, to prepare obligations and
contracts, and to transact the legal business
of the society. The directors have no right
to shift, to counsel the duty Impose'd upon
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101 ATIiAMTIO REPORTER
(N.J.
tbem to loan ont the funds and see to tbeir
aafe Investment. There ia no proof before
me that counsel ever reported to defendant
or to the board that the title to either of the
premises In question was clear. If counsel
of the association had rei>orted, It would Im-
mediately have occurred to the defen'dant
that the report was false, because a meve ex-
amination of the papers would have demon-
strated that the two mortgages held by the
Loetmberg estate had not been satisfied, and
that the titles were not clear.
Tbe statute of limitations is pleaded, but
not seriously argued. The point seems to
be disposed of by the following cases : Dal ley
V. Kleman, 75 N. J. Law, 276, 67 Atl. 1027;
Orane v. Ketcham, 83 X. J. Law, 327, 84 Atl.
1062; Fryer v. Mount Holly Water C3o., 87
N. J. Law, 57, 93 Att. 679; Williams ▼. Mc-
Kay, 40 N. 3. Eg. 180, 53 Am. Rep. 775;
French r. Armstrong, 79 N. J. Eq. 283, 82
Afl. 101.
[7] The fftct that other directors may be
also responsible for any loss which occurred
by reason of the East Orange loan appears
to presNit no objection to relief. Stockton,
Receiver, v. Anderson, 40 N. J. Eq. 486, 4
Atl. 642; Williams v. McKay, 46 N. J. Eq. at
page 39, 18 Atl. 824.
Within a week counsel on either side may
present such additional argument niton the
facts or law as they may be advised.
If there is an apparent error In dates,
amounts, etc., or with respect to any fbct, I
wish counsel would bring it to my attention,
as these conclusions have been prepaid with-
out having before me a copy of the testimony.
I do desire to hear from them particularly
with respect to the queries which I have
above indicated.
WARNB T. OREENBAUM. (No. 48/261.)
(0>urt of (Chancery of New Jersey. July 26,
1917.)
1. Yendob and Pttbohabeb <8=>130(7)— Sxtffi-
OIKNCT OF Tmx BT AdVKBSB POSSESSION.
Fact that acme unknown heirs of complain-
anf ■ predecessor in title did not join in convey-
ance to person nnder whom she daima does not
render title unmarketable, where she and those
under whom she claims have been In open, con-
tbiuoos, and nndisputed adverse possession of
premises under color of title for more than 45
years and no daim Is made that unknown heirs
were under any disability that would prevent
them from asserting their rights.
2. Advebsk Possession «=385(1) — Hosnut
CHABACTKB— COLOB OF TiTia— Pbbsumption.
One who enters under color of title and
openly and continuouslv uses property must be
assumed to do so with intent to claim adversely
to unknown heirs.
Action by Grace Wame against Adolph
Oreenbanm. Decree for complainant
August C. Streitwolf, of New Brunswick,
for complainant Leo Goldberger, of Perth
Amboy, for defendant
FOSTER, V. C. This bUl Is filed for the
specific performance of a contract dated No-
vember 18, 1916, made by the parties for
the purchase and sale of certain real estate
in the dty of Perth Amboy.
The case has been submitted on an agreed
state of facts, from which it a^ears that
complainant a widow, by the contract In
question, agreed to sell and convey to de-
fendant the premises described in the bill for
$10,450, subject to a mortgage for $5,000, and
that on tha execution of the contract a pay-
ment of $600 was made on account of the
purchase price. The balance of the price was
to be paid and "a free and clean warranty
deed for the property" was to be delivered
by March 1, 1917. On this date a warranty
deed, containing the usual covenants, duly
executed by complainant conveying the prop-
erty to defendant, was tendered to defendant
and he refused to accept the same on the
ground that complainant was not the owner
of the fee of said premises, and that certain
undivided rights therein were vested In the
heirs of William Bennett, deceased, unknown
and outstanding.
William Bennett at the time of his death
in 1800 owned the premises in fee. By his
win, not dated, but made in 1790, and pro-
bated in the Prerogative Court in 1800, he
devised the premises under the following
paragraph of his will:
"I give and bequeath all my estate, real and
personal that Bbafl be remaining after the afore-
said conditions and orders be lullv observed to
my son William and his heirs ana assigns tor-
ever, and if it diould so happen that my said
son should die, or not have lawfol iseue of his
body, before he shall arrive at the age of twenty-
one years, then and in sudi case «J1 my estate
to my said son William herd>y bequeathed shall
descend to my brothers and sisterar sons in man-
ner following, that is, one moiety or one-half
part to the sons of my brother, Hendridcson
William Bennett and one-fonrth part to the
sons of my brother-in-law Walter Stuea." (Also
known as Walter Hires.)
The son William Bennett was an idiot and
he died unmarried in 1866, and by the terms
of his father's will the sons of Hendrickson
W. Bennett and Jacobson W. Bennett and
of Walter Stires (or Hires) or their lawful
issue became seised of the premises, and
some of them made a deed for their Interest
in the premises to Joseph Imlay in 1866, and
to Henry S. Uttle in 1867, the last named
having acquired all of Imlay's rights In the
premises. On April 1, 1871, Henry S. Utde
conveyed the premises to HexekUh Wame
and Abraham Wame. On February 2, 1878.
Hezekiah Wame and wife conveyed their
Interest in the property to Abraham Wame.
All these deeds were duly recorded. Abra-
ham Wame died intestete seised of the prem-
ises on July 21, 1883, leaving his widow,
Cornelia Wame, and his sons. Wood Wame,
Abraham Wame, and Elmer Wame, surviving,
all residents of Matawan In this state. Cor-
nelia Wame was granted letters of admlniB-
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IX. 3.)
STATX: V. J£FFSIlSON
669
tratlon, and she died in 1893, and thereafter
Wood Wame died, leaving a widow, Mary
Wame, now deceased. On March 21, 1893,
Abraham Wame, unmarried, conveyed all his
right, title, and inteceet In the premises to
his brother Ehner. On Jane 12, 1913, Elmer
died testate, and by his wUl duly probated,
be devised the property to bis widow, Grace
Wame, the complainant.
It Is admitted that complainant, her prior
grantors, and those in devolntion of Interest
in succession to the title, commencing from
the deed into Henry S. LltUe on July 3, 1867,
have remained in the nndistorbed, quiet, and
peaceable enjoyment of the premises, and
that the Wame family have ramalned in the
-continued, quiet, and peaceable enjoyment
thereof since the deed into Abraham and
Hezekiah Wame, dated April 1, 1871, and
have been holding adversely to any devisees
or heirs of such devisees named in the will
of William Bennett It is further admitted
that there are several unknown heirs of the
4Bons of Hendrlckson W. Bennett, Jacobson
W. Bennett, and Walter Stires (or Hires),
whose names and addresses are unknown,
who were not parties to any of the deeds
mentioned, and who have a vested interest io
the premises by virtue of their heirship. De-
fendant contends that the outstanding In-
terests of these unknown h^rs render com-
plainant's title incomplete and prevent her
from owning the premises in fee, and that
these outstanding Interests render the title
onmarketable. Ck>mplalnajit's answer is that
t>y reason of the continuous and uninter-
rupted possession of herself and her prede-
-cessors in title since April 1, 1871, her title
Is complete and marketable, and that de-
fendant should be required to perform the
contract by paying the balance of the pur-
chase price and accepting a deed for the
property. The question thus presented for
determination is the validity of the title ac-
quired by complainant through adverse pos-
session against the Interests of the unknown
belrs mentioned.
[1] From the facts stated, and in the ab-
sence of any statement to the contrary, it
appears that complainant and those under
whom she claims have been under color of
title in the open, continuous, undisputed,
peaceable, and adverse possession of the
premises she agreed to sell and convey to
defendant, for more than 45 years; and no
claim is made that her, or their, right or
title thereto was ever questioned, or that the
unknown heirs, or any of them, were under
any disability that would prevent them from
asserting their rights to, or from claiming
any interest in, the premises to which they
might be entitled. Such being the situa-
tion, it must be controlled by the rule of
Foulke V. Bond, 41 N. J. Law, 527, where
Mr. Justice Depue, speaking for the Court of
Errors and Appeals, at page 545, observed:
"The prindples on which the doctrine of title
by adverse possession rests are well settled,
^e possession must be actual and exclusive,
adverse and hostile, visible or notorious, con-
tinued and uninterrupted. • • * A party re-
lying on title derived from such a source must
Srove possession in himself, or in those un-
er whom he claims, of such a character as is
calculated to inform the true owner of the na-
ture and purpose of the possession to which the
lands are subjected."
[2] In the absence of any facts to the con-
trary, and in view of the fact that complain-
ant and her predecessors entered under color
of title and openly and continuously used
and enjoyed the entire property, it must be
assumed that they did so with the intent to
claim adversely to the unknown heirs, and
therefore the farther statement of the law
by Justice Depue on this branch of the sub-
ject Is particularly appropriate to the pres-
ent case, for he said:
"That entry under color of title confers an
advantage, in that it operates, under some cir-
cumstances, as a disseisin, and determines the
quo animo with which the entry was made.
Having color of title is also advantageous to the
disseisor in givine character to his possession
after entry made."
The rule of Foulke v. Bond has been re-
peatedly followed In our courts to the pres-
ent time; and, as the facts presented show
title In complainant by adverse possession,
against the unknown heirs referred to, a
decree will be advised for the specific per-
formance of the contract
CM N. J. I*w, SOT)
STATE V. JEETERSON. (No. <».)
(C!ourt of Errors and Appeals of New Jersey.
July 18, 1917.)
District and Pbobkcdtino Attobnetb «=»11
— Mai,feasanc£ in Offics— Indiotmbnt—
Condition PascEDENT.
(>>nst art 6, I 3, par. 3, providing that
judgments in case of impeacnment shall not
extend further than to removal from office, etc.,
but the party convicts shall be liable to indict-
ment etc., does not require impeachment of the
Srosecutor of the pleas of the county as a con-
ition precedent to his indictment for malfea-
sance in office.
Error to Supreme Court
Matthew Jefferson was convicted of mal-
feasance in office, and, from a Judgment of
the Supreme Court (88 N. J. Law, 447, 97 AtL
1^) sustaining the conviction, he brings er-
ror. Affirmed.
Howard L. Miller, of Camden, and Clarence
L. Cole, of Atlantic C^ty, for plalntUt In er-
ror. Joslah Stryker, of Trenton, and John W.
Wescott, Atty. Gen., for the State.
GtTMMERE, C. J. The Judgment brought
up by the present writ Is one affirming the
conviction of the plaintiff in error in the
Cape May quarter sessions upon an Indict-
ment charging him with malfeasance in of-
fice. The office held by him was that of
prosecutor of the pleas of the county, and
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570
101 ATLuiMTIC BSPOUTBR
(N.J.
the Bpedflc malfeasance diarged against him
was the protection of violators of the crimi-
nal law and affording them Immunity from
punishment for a money consideration.
Numerous assignments of error were sub-
mitted to the Supreme Court and received
consideration by that tribunal in the opinion
promulgated by it The same grounds of at-
tack upon the conviction which were there
made have been repeated before us. With a
single exception, we are content .with the dis-
position made of them by that court and for
the reasons set out in the opinion.
The only assignment which we consider
merits further discussion is that directed at
the refusal of the trial court to grant a mo-
tion In arrest of Judgment, which was based
upon the ground that the plaintiff In error,
being a state officer, could not be legally In-
dicted and tried for malfeasance In office an-
til after Impeachment proceedings had been
instituted against him and a judgment of con-
viction rendered therein. The argument is
that this is a right afforded to him by article
6, { 3, par. 3, of our Constitution, which de-
clares that:
"Judgment in eases of impeachment shall not
extend farther than to removal from ofSce, and
to disqualification to hold and enjoy any office
of honor, profit or trust under this state; but
the party convicted shall nevertheless be liable
to indictment, trial and punishment according
to taw."
A consideration of the EMglish cases is not
helpful In solving the question presented, for
the reason that the courts of impeachment of
this country, both federal and state, although
modeled on the English tribunal, so far as
its formation and methods of procedure are
concerned, differ from It fundamentally in the
purpose of their existence and the power ex-
ercised by them. Stated specifically, the Ju-
risdiction of the English court is purely crim-
inal. Inflicting punishment of the same kind
and in the same measure as the ordinary
criminal courts of the kingdom. For in-
stance. Lord Stafford, after an indictment for
high treason had been presented against him,
and before trial thereon, was proceeded
against by articles of impeachment for the
same offense, was convicted by the House of
Lords, sentenced to death on the conviction
and executed. 7 How. St Trials, p. 1297. So,
too, after the rebellion of 1745 some of the
participants therein were indicted and con-
victed in the common-law courts and execut-
ed on such convictions, while articles of im-
peachment were exhibited against at least
one of the other participants, and the trial
thereon resulted In his conviction and execu-
tion. Campbell's Life of Lord Hardwick, p.
106. The courts of Impeachment of this
country, on the other hand, perform no puni-
tive function. The single purpose of their
existence is the protection of the people
against public servants who have betraj-ed
their trust and have violated the law which
they were sworn to obey. The sentence pro-
nounced against the offender affects neither
his life, liberty, nor property, but merdy
removes him from the office he has disgraced
and bars him from ever afterward holding
any office of honor, trust, or profit
From what has been said it is apparent
that the constitutional provision appealed to
by the plaintiff in error was not adopted from
any rule of procedure prevailing in England.
So far as my examination has gone, it first
aroears in the New Tork Constitutioii of
1777, and next in that adopted by New Hamp-
shire in 17S4. It was written into the feder-
al Constitution in 1787, and after that from
time to time was adopted as part of the fun-
damental contract of at least 17 of our sister
states. Its purpose must be either that
claimed for it on behalf of the plaintiff in
error, or else to settle beyond controversy the
claimed right of a person c<Hivlcted by a
court of impeachment to plead that convic-
tion as a bar to a trial on an Indictment for
the same offense which brought about his re-
moval from office.
So far as the researches of counsel and the
court have gone, but one case has l>een found
in .which a contention similar to that advanc-
ed by the plaintiff in error has been made,
viz. Commonwealth v. Rowe, 112 Ky. 482, 00
8. W. 29. In that case the Supreme Court of
Kentucky, after a full consideration of the
question, reached the conclusion that the im-
peachment of a commonwealth's attorney Is
not a condition precedent to his indictment
for malfeasance in office and punishment
thereunder. The opinion Is a carefully oon-
sidered one, and the conclusion reached seems
to be fully supported by the logic of the argu-
ment set out In it But, independent of the
reasoning of the case cited, we are entirely
satisfied that the conclusion of the Kentucky
court is the correct one. If it be true that
the effect of the constitutional provision is to
stay proceedings in the criminal courts nntll
after a conviction in the court of Impeach-
ment, then punishment for a crime in sncb a
case is made to depend upon whether or not
the House of Assembly will see fit to pre-
sent articles of impeachment against the of-
fending officeholders. This they may or m«y
not do, as the Judgment of its meml>ers may
dictate. It may be that the offender's term
of office will have expired during the recess
of the Legislature or will expire almost Im-
mediately after its convening, and that Im-
peachment proceedings therefore will be tn-
advlsnble. Other reasons for nonaction, by
the House of Assembly will readily suggest
themselves. That any such possible Immunity
from punishment was intended to be confer-
red upon the betrayers of public trust by the
framers of this provision of the Constitution
cannot be conceded and never has been so un-
derstood by our people. The history of our
own state is a demonstration of this fact.
From 1784, when Peter Hopkins, a Justice of
the pence, was impeached by the House of
Assembly, down to the present time, tliere
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AHRENS ▼. KELIiT
671
have been Jnst fonr impeachment trials in
New Jersey. Certainly no one will suppose
that during this period of 133 years tbe four
persons thus proceeded against constitute all
of the officeholders imder the state govem-
ment who have been untrue to the trust im-
posed in them. In fact, the very slightest
examination of onr official reports will dem-
onstrate the contrary.
The history of the federal court of impeach'
ment is similar. The records of the Senate
show that from the adoption of the Consti-
tution in 1787 until now articles of Impeach-
moit have been presented against one Presi-
dent, one United States Senator, one member
of the cabinet, and six members of the judi-
ciary. All other dvll officers serving under
the federal government who have been guilty
of criminal conduct while in office have been
dealt with by the ordinary tribunals of Jus-
tice.
The records of our sister states have not
been available to us for Inspection, but it is
more than probable that they will disclose a
similar condition ; for, as was said by. Prof.
Theodore W. Dwlgtat in an article on "Trial
by Impeachment" (American Law Beglster,
voL 6, K S. p. 257): "This mode of trial is
rarely exercised and practically dormant"
It has been suggested, rather than argued,
that, unless the Indictment of a state officer
la postponed until the termination of im-
peachment proceedings, the interests of the
state will suffer by its deprivation of the serv-
ices of the officer while the title to the' office
remains in him. It is suggested when ai^lied
to the present case it would seem to savor of
grim humor, if it were not for the seriousness
of the matter. When it is remembered that
the spedflc charge upon which the plaintiff
In error was convicted was the shielding of
▼iolators of the criminal law from punish-
ment for a pecuniary consideration, the sug-
gestion that by his conviction and sentence
the state la being "deprived of his services"
l8 very wide of the mark ; It would be much
more accurate to say that by it the state is
being protected against the further prostitu-
tion of his office.
We conclude that the refusal of the motion
in arrest of judgment was proper, and that
on the whole case the conviction should be
affirmed.
(SS N. J. Eq. lU)
AHKEINS v. KEIyliY et al. (No. 41/334.)
(Court of Chancery of New Jersey, July 31,
1017.)
1. USDBT «=s>130— FOBECLOSURE OT MORTOAOB
— DEFEHSB— AVAILABILITT.
Where a son executed a second mortgage,
and his mother signed the bond accompanying
it, and the property was conveyed to her, sub-
ject to the mortgaRe to secure other advances,
on foreclosure, she could set up defense of usury.
2. usuby ®=>55 — conteact by aoent —
Knowledge of Principal.
Although the illegal bonus was paid to an-
other, if it was paid pursuant to toe terms of
contract of loan with the knowledge of the mort-
gagee, the mortgage will be declared usurious.
3. UsuKY «=>117 — Contract by Agent —
Knowledge of Pbincipai/— Evidence— S0t-
ficiency.
In a bill to foreclose a mortgage, evidence
held sufficient to show that the mortgagee, al-
though he did not negotiate for the loan, knew
that the loan was usurious.
Bill by Augusta N. Ahrens against Mary
Kelly and others. Decree for complainant.
Eunyon & Autcnrelth, of Jersey City, for
complainant Randolph Perkins, of Jersey
City, for defendants.
LEWIS, V. 0. The bill in this case is filed
to foreclose a mortgage made by the defend-
ant Patrick J. Kane and Esther Kane, his
wife, to William G. Ahrens. The instrument
bears 'date the 7tta day of March, 1913, and
covers property at the comer of Bergen and
Bramhall avenues, Jersey City. The mort-
gage was for the sum of $10,000, and was
second to one held by the New Jersey Title
Guarantee & Trust Company for $23,000.
Kane used the money (i. e., the $8,000 of the
$10,000 paid on the mortgage) In erecting an
apartment house, and also secured other sums
from his mother, Mary Kelly, who executed
the bond accompanying the mortgage. On
May 21, 1A13, he conveyed the property to his
mother, and they both testify that at the
time of this conveyance there was an agree-
ment between them that the mother would
turn back the property to her son upon being
reimbursed.
[1] An answer and counterclaim were filed,
alleging that the transaction was nsurions;
but it was urged by the complainant that
even if this were the case, under the rule
laid down in Lee v. Stiger, 80 N. J. Eq. 610,
Scull V. Idler, 79 N. J. Bq. 466, 81 Atl. 746,
and other cases, Mary Kelly, the defendant
conld not be allowed to set up usury against
such mortgage. I am not Inclined to this
view of the matter under consideration. This
is not the case of affording to a "mere ad-
venturer, who may happen to slip into the
seat of the borrower, a right to speculate on
a violation of law which has done him no
harm," as was said in Lee v. Stiger. That
Mrs. Kelly took the conveyance expressly sub-
ject to the mortgage Is a mere technical de-
fense. Mrs. Kelly signed the bond, and is
liable for deficiency Judgment thereon. She
really took the deed as security for her
loan, and nn'der the view expressed in Tms-
dell V. Dowden, 47 N. J. Eq. 386, 20 Atl. 972,
is entitled to defend. Kane, the son and
mortgagor, is also a party to this suit and
he certainly has, under Andrews t. Stelle,
22 N. J. Eq. 478, this right
£2, S] It was further contended that in
case the transaction was tainted with usury,
Albaneslus, who negotiated the loan, was the
agent of Kane, and not of Ahrens, the com-
plainant, and that he (Ahrens) knew nothing
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(N.J.
about the arrangement between Kane and
Albanesius, and that, If the former had any
remedy, It was by suit against the latter for
IHegal brokerage. The facts developed at the
hearing satisfied me that the complainant
Ahrens, knew all about the Kane transaction
with Albanesius, and that be must be held
accountable within the rule laid down by
Vice Caiancellor Van Fleet In Borcherllng v.
Trefz, 40 N. J. Eq. 502, 2 Atl. 369, that "to
taint a contract with usury it is not neces^ry
that the Illegal interest or bonus shall have
been taken by the lender himself; but if it
be shown that an illegal consideration was
paid to some other person than the lender,
pursuant to the terms of the contract of loan,
with the knowledge of the lender, the con-
tract must be declared usurious." This view
has been numerously followed. Kane says
that Ahrens was present at the time of the
first payment; that he saw the two checks
that were left lying on the desk and the one
check that was taken. Ahrens did not go on
the stand and deny this. The testimony rel-
ative to his exaction of a bonus from the
owner for an extension of the mortgage, and
his demand for another that he did not get,
gives us some idea as to his disposition re-
garding transactions of this kind. Moreover,
it does not seem probable that he would have
loaned this considerable sum of money on a
aecond mortgage to a person of Kane's finan-
cial standing, merely to secure interest, with-
out a thorough understanding. He Is too
shrewd a business man to do this.
The division of the first payment at $4,000
Into three part»— $2,000, $1,600, and $500—
and the giving of the three checks is sugges-
tive. Kane's story is that Ahrens produced
the tliree checks. He says that Ahrens had
already told him he would have to pay a
bonus of $2,000 to get the $10,000. His story
Is that the checks were laid upon the table
in Albanesius' office ; that he indorsed them
there, and left the $1,600 check and the $500
check lying on the desk in the presence of
Albanesius and Ahrens. The $2,000 check he
took and deposited In the New Jersey Title
Guarantee & Trust Ck>mpany, as la shown by
his passbook. This story appears to me to
be a truthful narration of events at the out-
set of the transaction. Can it be doubted
that Ahrens saw the indorsement of Albane-
sius on the two checks, one for $500 and the
other for $1,500? Albanesius denies Kane's
story. But, as I said before, Ahrens did not
do this. Albanesius says that the arrange-
ments with Kane were all made before
Ahrens was brought in. Albanesius says
tliat he had many financial transactions with
Kane ; that Kane gave him a note of $1,500,
which he held at the time of the first pay-
ment on the Ahrens mortgage; that the
check of $1,500 was taken by him in payment
of this note, and that the $500 check was for
securing the loan for Kane, which, of course,
Is $350 beyond what the law allows for brok*
erage. Albanesius also says that Kane's in-
debtedness arose by cash money loan trans-
actions. He was subpoenaed to produce all
his books, papers, and checks of every de-
scription pertaining to the transaction; but
he did not produce any. Subsequently, while
on the witness stand, upon his attention be-
ing directed to the matter, Albanesius pro-
duced a note of $1,500, signed by Kane,
which he says he has held since the time of
the first payment, although he alleges It was
paid by Kane with the $1,600 check he re-
ceived on the first paymoit. Kane says that
at the time of the first payment Albanesius
asked him to sign the $1,500 note so as to
cover up the transaction, and that he owed
no money whatever to him; that he never
borrowed a cent from him, and never liad
any dealings with respect to money. From
the evidence before me. It is quite apparent
that it would be hard for Albanesius to
prove the consideration of this note for $1,-
600.
It la difficult for me to disconnect Albane-
slu!) and Ahrens in this transaction. They
were neighbors and friends, and had been
for years; and the testimony is that they
called each other "Dick" and "BUI," and
that they had several financial transactions
together, and at the time of the hearing
Ahrens was renting and living In a house be-
longing to Albanesius, and Ahrens has a
mortgage on Albanesius' property for an
amount in the neighborhood of $^,000. It
is inconceivable that he did not discuss with
his friend the nature of the transaction that
be had on hand with Kane. It is also ob-
servable, from the testimony of Ahrens, Rita
Smith, and the complainant, that Ahrens
had every intention of exacting from Mrs.
Kelly all he could get In the way of bonuses
for extensions. He admits that he got $400
of the $500 check which was paid for the
renewal of the mortgage and there Is no
denial that when the mortgage fell due an-
other bonus of $500 was demanded. We
have a similar situation throughout the en-
tire lite of the mortgage. Miss Smith was a
mere dummy In the transaction. On Sep-
tember 8, 1914, when a half year's interest
was paid, Ahrens told Mr& Kelly that be
wanted the principal. She urged him to let
the mortgage stand and he said that he had
a friend who might take It, providing the
bonus of $500 was paid. On September 14tlk
Mrs. Kelly paid the bonus. As before stated,
Ahrens admits that he got $400 of it On
that day Ahrens executed an assignment ot
the mortgage to Rita B. Smith, which was
recorded. Rita B. Smith Immediately exe-
cuted an assignment to Ahrens' sister, Au-
gusta N. Ahrens, although this assigament
has never been recorded. Ahrens' testimony
Is that his sister had $2,000 Interest In the
mortgage from its inception. Mrs. Kelly
paid Interest on March 7, 1915, and Septem-
ber 7, 1915, to Miss Smith. Wh«i the last
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SUMMIT SILK CO. v. FIDELITT TKUST CO.
573
interest was paid, the mortgage became due,
and Mrs. Kelly asked Miss Smith to grant
her a further extension but Miss Smith re-
fused. On October 30; 1915, she sent the
following letter to Mrs. Kelly:
"Dear Madam: I had to have aome money,
and have sold the mortgage I held on yonr Ber-
Sen avenue and Bramhall avenue property to
liss A. N. Ahrens.
"Respectfully, Bita B. Smith."
Miss Smith's evidence, and her attitude
while on the witness stand, satisfactorily
shows that she had absolutely no interest
whatever in the mortgage^ but was merely
acting for Ahrena She was in ignorance of
the entire matter and did what she was told
to do.
On the brief It is urged by the complainant
that the answer is defective. The counter-
claim charges usury, and the particulars of
the transaction are set out in the answer.
My recollection is that the solicitor of the
defendants made application to amend the
answer, so that it might conform with the
proofs and meet the views expressed by Vice
Chancellor Emery in Kase v. Bennett, 61 K
J. E9q. 97, 33 AtL 248, and that leave to do
this was granted. In this case the usury
diarged appears by the facts as well as by
the conclusions of law from the facts. Dur-
ant V. Banta, 27 N. J. Law, 624. The usury
Is proven, not left to conjecture. New Jer-
sey Patent Tanning Oo. v. Turner, 14 N. J.
Eq. 326. I cannot fairly and reasonably in-
fer tliat this was not a usurious transaction.
Gillette V. Ballard, 25 N. J. Eq. 491, affirmed
27 N. J. Eq. 489.
The complainant in this case Is entitled to
a decree for the amount of the principal of
tills mortgage, less the usurious charges at
the time of its inception. The bonuses paid
on the renewal September 14, 1914, must be
applied on the principal.
(BS N. J. Dq. tu)
BTJMMIT SILK CO. v. FIDBLITX TRUST
CO. OF BALTIMORE, MD., et aL
(No. 37/111.)
(Court of Chancery of New Jersey. July 27,
1917.)
CoKPoRATioRS «=>432<2) — Contracts — Pbk-
SUMPnON.
A contract made in the name of a corpora-
tion by its president in the usual course of bnsi-
nees, which its directors can aathorize and make,
or ratify, is presumed binding on it, till it is
clearly shown it was not authorized or ratified,
especially where acquiesced in till the other
party has become insane.
Suit by the Summit Silk Company against
tbe Fidelity Trust Company of Baltimore^
Md., guardian of Emily B. De Forest, a lu-
natic, and another. Heard on pleadings and
proof. Decree for defendants.
McDermott ft Enright, of Jersey City, for
complainant Vredenburgh, Wall & Carey, of
Jersey City, and Charles L. Eingsley, of
New York City, for defendants.
LEWIS, V. C. This suit Is brought to re-
strain the defendants from prosecuting an
action at law, in ejectment, against the Sum-
mit Silk Company regarding certain premises
at Summit, N. J., in which Emily De Forest
has the legal title; the complainant claiming
to be tbe equitable owner, alleging that
EmUy is a mere trustee.
Etelly and Harriet De Forest, sisters, were
married to two brothers, one of whom was
named Othneil De Forest and the other was
named William H. De Forest, Jr. In August,
1892, the Summit Silk Manufacturing Com-
pany was organized as a corporation of this
state. It was a close corporation, and the
objects stated in the certificate of incorpora-
tion were the manufactui-e and sale of silk
and silken goods, to buy lands and to erect
thereon buildings, machinery, etc. The incor-
porators were Othneli De Forest, John Night-
ingale, and William H. De Forest, Jr., and
shortly after the organization Othneil De
Forest, William H. De Forest, Jr., and Har-
riet De Forest became the directors. Oth-
neil De Forest was elected president, and
William H. De Forest, Jr., the secretary and
treasurer. Mrs. Emily E. De Forest was
the principal owner of the stock. The fac-
tory was built on a plot of land consisting
of about eight acres; the fSctory taking up
about two acres, and leaving a little over six
acres vacant
In 1896 the Summit Silk Manufacturing
Company wished to have some houses erect-
ed on this plot for its employte; but as it
did not have the funds with which to erect
them, the president applied to tbe Summit
Building & Loan Association for a loan. He
found out from that association that a cor-
poration could not become a member of the
association, and he was, therefore, unable
to borrow any money from that association.
Thereupon, in March, 1895, Emily E. De For-
est became a shareholder to the extent of 85
shares in the afore-mentioned association.
Her dues for March, April, and May, 1896,
were paid oa June 13th of that year, and
were charged to her account on the books
of tbe Silk Company. On July 23, 1895, the
Silk Company duly made, executed, and de-
livered to her the deed, dated July 10, 1895.
The deed recites the payment of the con-
sideration of $2,000. This deed Is Emily E.
De Forest's muniment of title, and her bond
of $14,000 was given to the Summit Building
ft Loan Association, together with the se-
curity of this title, and the association then
made her a loan of $7,000, with which to
erect five double tenement houses on the
piece of ground which the Silk Company had
conveyed to her.
On the land conveyed to Emily the five
double houses were erected, and the pay-
ments to the contractors were made by
checks of the Summit Building & Loan As-
sociation, drawn at the order of said Emily
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574
101 ATLANriO REPOBTBR
(N.J.
De Forest Fire Insurance on the houses
was placed In the name of Emily E. De For-
est ; the houses were rented to the employes
in the factory of the Silk Company, and the
rents were collected by the superintendent
or a clerk in the employ of the Silk Com-
pany. As the rents were collected, they were
put in the bank to the credit of the Silk
Company, and its check was drawn to the
order of the Summit Building & Loan As-
sociation at the rate of $75.25 per month.
Taxes, Insurance, and repairs were also paid
out of the rents.
In the course of about 12 years, the 35
shares of the Summit Building ft Loan As-
sociation matured, and in the first part of
Febmaiy, 1907, the Building * Loan As-
sodatlon sent its dieck for $7,000 to Emily
B. De Forest, and the mortgage was can-
celed, being discharged of record July 18,
190& From the time of the maturity of the
shares in the Building ft Tx>an Association
until May, 1910, the rents from these houses
were collected by clerks and officers of both
the Summit Silk Manufacturing Company
and its successor, the Summit Silk Company,
the present complainant, and were paid over
to Emily B. De Forest. During this period
taxes, insurance, and repairs on these houses
were paid by Emily B. De Forest, either per-
sonally or through others acting in her t>e-
hall
In January, 1907, Elrero Godone, P. J.
Ferrara, and Emily E. De Forest were elect-
ed directors, and Mr. Godone was made presi-
dent, and Mr. Ferrara secretary and treas-
urer. The Silk Company became embar-
rassed, and arrangements were made to or-
ganize a new company and give extensions
to the new company, which was taking over
all the liabilities and assets of the old com-
pany on two years' time. The result was
the organization of the Summit Silk Com-
pany as a corporation to take over the en-
tire property and assets of the old company,
with proper deeds and other instruments of
conveyance thereof, and the new company to
assume the payment of all Indebtedness. The
meeting at which the transfer was organized
was held on February 20, 1908. The pro-
ceedings are recorded in the minutes on
several pages. Emily E. De Forest was pres-
ent by proxy; she also signed a waiver of
notice of the time, place, and objects of the
meeting. Following the meeting of Febru-
ary 20, 1908, and in pursuance thereof, deeds
and a bill of sale were executed to transfer
all the property of the Summit Silk Manu-
facturing Company to the Summit Silk Com-
pany. The principal deed is dated February
20, 1008, and Includes the lands in dispute;
that is to say, it included the property con-
veyed to the Summit Silk Manufacturing
Cktmpany by Harriet De Forest and husband,
excepting therefrom only the sis lots which
were previously conveyed to Harriet De For-
est and which are not in dispute. On Feb-
ruary 20, 1908, the Summit Silk Manufac-
turing Company executed a bill of sale, by
which It sold and transferred to the Summit
Silk Company "all its property wheresoever
situate, including its machinery, tools, and
fixtures located in its factory in the city of
Summit, New Jersey, and elsewhere, indnd-
ing office furnishings, patent rights, patents,
good will, merchandise, accounts, bills, notes,
money and all other assets."
These instruments establish that the pur-
pose of the Summit Silk Manufacturing Com-
pany was to transfer to the Summit Silk
Company all its property of every kind and
character. It becomes Important, therefore,
to ascertain whether the lands and houses
In dispute were, in equity, the property of
the Summit Silk Manufacturing Company,
which made a deed of all its property to the
Summit Silk Company.
On October 14, 1895, the old company duly
made, executed, and delivered to Harriet
De Forest its deed for certain of 'its prop-
erty adjacent to that conveyed to Emily by
the deed of July 23, 1895, and upon which
were erected three double tenement houses
similar to those erected by Emily upon her
land. On October 18, 1910, Emily was judi-
cially adjudged a lunatic by the circuit court
of the city of Baltimore, Md., and the Fi-
delity Trust Company of Baltimore was ap-
pointed her guardian, while she was then
located at Baltimore, and has also been ap-
pointed guardian of her property and estate
in New Jersey by the Chancellor.
On December 12, 1912, an action was com-
menced in the New Jersey Supreme Court by
the jfuardian to eject the new company from
the bouses and premises at Sumndt, and on
October 20, 1913, the present bill to restrain
the ejectment suit was filed for the purpose
of obtaining the benefit of certain equitable
defenses. Those defenses in brief are as
follows : First, that there was no considera-
tion for the deed made by the Summit Silk
Manufacturing Company to Emily Do Forest,
under which she claimed a right to the pos-
session of the land; second, that the deed
was executed without the authority of the
company; third, that she had assented to
a sale of the same property to the Summit
Silk Company by the Summit Silk Manu-
facturing Company after her deed had been
recorded, and was estopped to question tbe
title of the Summit Silk Company; fourtli,
that she held the title only In trust for tbe
Silk Company, which, it Is alleged, had fur-
nished the money for the purchase of the
land and the construction of the balldlngs
thereon. Mre. De Forest contends that all
these defenses are available at law, except
the one which seeks to establish a trust.
The minutes of the stockholders and di-
rectors are very meager, and do not disclose
that there was any authority given by the
stockholders or directors to convey the prop-
erty in question to Mrs. Emily De Forest,
or, for that matter, to Mrs. Harriet I>e
Forest— Harriet De Forest's situation in re-
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EDOSTER y. BUGSTER
575
gard to tbe land which has been deeded to
her by the old company being precisely the
same as Emily's with the exception that,
when the old company turned over Its pr(^
erty to the new company, the land hereto-
fore deeded to Harriet was excepted, no
mention being made of the deed to Emily,
nils is a peculiar fact, and may or may not
be significant as to whether she was the true
owner of the lands in question.
It Is undoubtedly true, however, that when
a contract is made In the name of the cor-
poration by the president in tbe usual course
of business, which the directors have the
power to authorize and to make, or to ratify
after It Is made, the presumption is that the
contract is binding on the corporation, un-
til It is shown that the same was not author-
ized or ratified. Paul Gerll, who had been the
chief creditor of the old company, and who
had stepped In as the controlling factor of the
new company, knew that these rents were be-
ing collected by the clerks or other employes
of the new company, and he knew that they
were being transmitted to Mrs. Emily De
Forest; in fact, the evidence shows that he
directed It to be done, and upon the clos-
ing of the account of Mrs. Emily De Forest
and of her sister, Mrs.' Harriet De Forest,
he drew and signed the checks to those two
ladles for the proportionate amounts due
them, respectively.
About the year 1910, when Mrs. Emily De
Forest had become mentally Incompetent and
was no longer able to take care of herself
and her affairs, Paul Oerli suddenly ceased
renaitting the rents from these houses to
Mrs. Emily De Forest. His explanation of
tbls action on the witness stand was that he
had felt sorry for the De Forests in their
financial reverses, and that after the death
of Mrs. Emily De Forest's husband he had
contributed these rents to her support as a
matter of charity, but that when his own Silk
Company had dWBculty in meeting expens-
es he felt obliged to cut off his philanthropic
contribution. If this were true. It would
certainly stamp Mr. Oerli as an extraordi-
narily generous man, considering that Mrs.
Emily De Forest was nothing to him. It is
very difficult to get at the facts in the case,
as both Mr. Othnell De Forest and his broth-
er, William H. De Forest, Jr., are dead, and
the lips of Mrs. IJmlly De Forest are sealed
through Insanity. We cannot get her story ;
bnt I am satisfied that the transfer of the
land to Mrs. Emily De Forest by the old
company was for an adequate monetary con-
sideration ; second, that the deed to her was
In due form of law and unassailable in this
proceeding, with no sufficient testimony to
undermine Its, at least, prima fade validity ;
third, that the credit of Emily De Forest
was pledged to obtain the moneys that were
nsed In the construction of the houses, and
that her obligation was paid off by the rents
from those houses, and that no money of
the Silk Company went into those houses.
It Is apparent that neither Mrs. Emily De
Forest nor Mrs. Harriet De Forest desired
the burden of handling the rents, etc., when
they had husbands to do it for them. Wo-
men, very frequently, do not care to assume
these burdens. I ttilnk this fully accounts
tor the facts already mentioned. I am quite
satisfied that the whole business was done
In a perfectly natural manner under all the
circumstances of the case; and It must be
remembered that the burden of establishing
the various contentions of the complainant
Is upon the complainant, and must be sus-
tained by the clearest and most convincing
proof, more particularly because one of the
circumstances attendant upon the dalm of
the Silk Company is that It was asserted
only after a blight had fallen upon the
mind of Mrs. Emily De Forest, and after
it had acquiesced in her apparent right for
about two years, and also because of the
fact that Mrs. Emily De Forest Is unable to
give her testimony in this proceeding. If
there be any doubt whatever, it must be
resolved In ftivor of the Incompetent woman.
The real question before the court Is
whether Emily is a trustee for the Silk
Company, and as I find that there is no
resulting trust, but that Emily is the owner
of both the legal ajad equitable title In
the premises In question, that disposes of
the case.
I shall advise a decree In accordance with
these views.
(8S N. J. Eiq. 73)
EUOSTER V. EUGSTER. (No. 41/284.)
(Court of Chancery of New Jersey. July 11,
1917.)
Divorce ®=»40 — GaotrNns — Desebttok' —
Acquiescence of Wite.
A wife cannot be denied divorce for ac-
quiescing in the separation from her of a hus-
band, who shows that he married her in order to
plunder her, and who beats her and treats her
otherwise with cruelty.
Petition for divorce by Maria A. Eugster
against Benedict Eugster on tbe ground of
desertion, with answer and cross-petition
for divorce on the ground of desertion.
Heard on pleadings and proofs taken In open
court Decree for petitioner.
Henry Leon Slobodin, of New York City,
for petitioner. Edward P. Stout, of Jers^
City, for defendant
STEVENSON, V. O. It was the second
marriage of each. Both were in middle life.
The wife had property. The husband had
only his capacity to earn wages at his trade.
Quarrels soon occurred. The husband ap-
parently desired to get possession of his
wife's property. Very soon the parties sepa-
rated.
The case of the husband on his cros»-
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576
101 ATIiAMTIC BEFORTES
(N.J.
petition In my Judgment entirely falls. The
only question, and It Is a somewhat close
one, Is whether the petitioner consented to
the separation — acquiesced In It to such an
extent and with such a mind as to deprive
the desertion of the husband of the element
of obstinacy. In undertaking the solution
of this problem I start with the conrlctlon
that the defendant, the husband, Is utterly
unreliable as a witness. His untruthfulness
was manifested on the stand, and his deposi-
tion as read from the printed page in respect
of various matters Is Improbable, If not
Incredible. On the other hand, I was strong-
ly Impressed with the honesty and accuracy
of the petitioner's testimony. She told ber
story Jnst as she recollected the facts, with-
out regard to whether what she said helped
or hurt her cause. The doubtful feature of
the petitioner's case, above referred to, Is
disclosed by her own testimony.
Although I followed the testimony of the
witnesses closely, I found it necessary to
have the entire testimony written out by the
stenographer. This testimony I have pe-
rused with care. My conclusion is that the
consenting mind of the petitioner was caused
by the violations of duty on the part of the
defendant — ^that the petitioner would have
been willing to live with the defendant if
be bad done his duty. A wife is not to be
blamed for acquiescing in the separation
from her of a busttand who shows ber that
he married her In order to plunder her, beats
her, and treats her otherwise with cruelty.
Smith V. Smith, 65 N. J. Eq. 222, 37 AtL 49 ;
WUson V. WUson, 66 N. J. Eq. 237, 57 Atl.
552 ; Martin v. Martin, 78 N. J. Eq. 423, 79
AtL 261; Klpp v. Kipp, 77 N. J. Eq. 685,
78 Aa 682.
A decree nisi in favor of the petitioner will
be advised.
(87 N. J. Bq. »0)
BEALL et al. v. NEW YORK & N. J. WATER
CO. et aL (No. 39/353.)
(Court of Chancery of New Jersey. July 16,
1917.)
(BfUaJtu* Ity th« Court.)
1. Equttt «=>422— Pbactiob— Deobees.
On final hearing in the court of chancery,
bat one decree may be entered, no matter how
numerous the parties or the iBSoes.
2. BQTnxT «=»423— PttACTiCB— Decbees.
The purpose to be accomplished by a decree
in equity is to finally settle and determine the
rights of all persons interested in the subject-
matter of the suit.
8. EQumr «s>415— Pbactics— Deobee.
In a decree in chancery there need not be,
in the ordering or mandatory part, an adjudi-
cation of the existence of facts warranting such
decree, although they may be stated in the re-
cital preceding the decretal paragraph, or may
be omitted entirely.
4. Eqbitt «=>415— Pbaoticb— Decbees.
There should be an adjudication in a decree
of the rights to which a party or parties are en-
titled. This does not include several negative
adjudications -against the complainant as to pre-
cise questions put in issue on which be is nn-
8uccessful,_ but it is only necessary that a gen-
eral adjudication in favor of defendant, so far as
he is successful, need he made, unless there are
specific matters or things to be awarded to him,
and which cannot appropriately be made the
subject of an omnibus adjudication.
5. Bquitt e=427(l)— Pbactice— Decbee.
While it seems that every matter put in Is-
sue by the pleadings is to be presumed to have
been adjudicated, if there be a decree for or
against one or more of the parties to the suit,
yet for greater certainty it is better formally to
adjudicate in terms all issues in a chancery suit,
either generally or specifically, as the natore
of the case may require; and a decree can al-
ways be so framed.
6. Costs «=»172— Egtrrrr— Attobnet's Fees.
The allowance of a counsel fee to a party to
a suit in oquity under the chancery act (P. L.
1902, p. 540, { 91, amended by P. L. 1910, p.
427), is discretionary.
7. Costs «=>172—Equitt— Counsel Fees.
The rule is that, where a complainant and a
defendant are each successful on one or more
substantial issues, neither party is entitled to
costs or counsel fee against the other.
8. Equity «=»428— PBAcTrcE— Decbee.
when a complainant prevails in part, and a
defendant in part, the complainant is entitled to
enter the decree, which should adjudicate the
relief to which he is entitled, and dismiss the
bill as to the relief to. which he is not entitled,
reciting that the cause came on for hearing in
the presence of counsel for the respective par-
ties, naming the parties and counsel, hut not
reciting that the decree is entered upon the mo-
tion of counsel for either party; the name of
complainant's solicitor only bemg indorsed on
the back of the decree.
Bill by Turner A. Beall and others against
the New York & New Jersey Water Company
and others. On moticHi for settlement and
entry of decree. Decree entered.
Collins & Corbln, of Jersey City, for
complainant McCarter ft English, of New-
ark, for defendants New York & New Jersey
Water Co. and others. Fort & Fort, of New-
ark, for defendant Fletcher.
WALKBlEt, Cb. This cause was beard be-
fore Hon. James B. Howell, Vice Chancellor,
who filed an opinion and died before advis-
ing a decree. (Counsel for complainants, on
due notice to defendants, have moved before
me for the settlement of a decree in accord-
ance with the views expressed la the lata
Vice (Chancellor's opinion.
The Vice Cbanoellor prefaced bis opinion
with a statement of the objects of tbe suit
and the prayers for relief, and observed
that the scope of the bill and application for
relief are much broader than the points BDt>-
mitted at the hearing. After stating the re-
lief to which the complainants are entitled!,
he remarked that the remainder of the points
taken by the complainants must be decided la
favor of the defendants ; that Is to say, the
decree must provide that, as to those points,
tlie complainants' allegations and proofs foil
to make an actionabile case against the de-
fendants, wbicb points he shortly described.
sFor otbtf cues aae mud* topio and KSi-KUtlB&R In all K«r-Numbar*d DlseaU and InduM
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K7.)
BEALb T. NKW YORK & N. J. WATER CO.
677
and indicated the reasons that led to his con-
clusions concerning them.
Messrs. Collins & Corbln, for the complalii-
ants, submit a form of decree to be entered
as on their motion, making appropriate re-
cital of the reference, hearing, filing of opin-
ion, and death of the Vice Chancellor before
decree made, and notice of the present appli-
cation to the Chancellor to settle the decree,
which draft adjudges the afHrmative relief
only decided upon in the opinion, and does
not contain any adjudication of a negative
character, namely, that complainants are not
entitled to relief as to any of the several
matters concerning which the allegations
and proofs failed to establish an actionable
case against defendants, which would be af-
flnnative in Its character so far as the de-
fendants are concerned. This form of decree
provides for costs and counsel fees to the com-
plainants against the individual defendants.
Messrs. McCarter & Etagllsh, on behalf of
the defendants whom they represent, also sub-
mit a draft of decree, not expressed to be
made on motion of any counsel, but with
their firm name indorsed on the back there-
of, which decree first adjudges that certain of
the relief prayed be denied, and then decrees
the affirmative relief to wtiich the complain-
ants are entitled, but is silent on the ques-
tion of counsel fee and costs.
Messrs. Fort & Fort, representing the de-
fendant J. Gilmore Fletcher, also submit a
form of decree, as on their motion, which
adjudges that, in so far as any relief is pray-
ed against their client, the bill be dismissed,
and ttiat he recover against the complainants
ills costs of suit, including a counsel fee.
Messrs. ColUns & Corbin Insist that they
are entitled to enter the decree on behalf of
the complainants, that it should not contain
any negative adjudications against them,
which would be affirmative ones in favor of
defendants, and that the defendant Fletcher
is not entitled to have the bill dismissed as
against him, with or without costs and coun-
sel fee.
The assertion made on behalf of Fletcher
that he Is changed with fraud personally,
disassociated from the other defendants, is
not borne out. His counsel's claim is that he
was made a defendant, and relief prayed
against him, because of various specific allega-
tions of fraud on his part as director of the
New York & New Jersey Water Company.
He was, moreover, a director of the Suburban
Water Company, and one of the transactions
directed in the (pinion to be set aside is a
proceeding by Fletcher and his felloW direc-
tors of both the New York & New Jersey
Water Company and tlie Suburban Water
Company which resulted in procuring $126,-
OOO of the bonds of the New York & New
Jersey Water Company for the benefit of the
Suburban Water Company, in exchange for a
certain conveyance, which the opinion holds
is unlawful and should be set aside, because
five of the directors, including Fletctier, were
lOlA^-37
directors of both companies — ^Interlocking di-
rectors— ^whlch Imparted to the transaction
the character of a dominant corporation ob-
taining an advantage of a servient one.
[1,2] The first question presented is as to
who is entitled to enter the decree. The
purpose to be accomplished by a decree In
equity Is to finally settle and determine the
rights of all persons interested in the sul»-
ject-matter of the suit See the remarks of
Vice Chancellor Van Fleet in Jones v. Daven-
port, 46 N. J. Eq. 77, 17 Atl. 670 (reversed in
Jones v. Fayerweather, 46 N, J. Bq. 237, 19
Atl. 22, bat not on this point). On final hear-
ing but one decree Is entered, no matter how
numerous the parties or the Usues.
[3,4] In a decree in diancery there need
not be, in the ordering or mandatory part, an
adjudication of the existence of facts war-
ranting such decree, although they may be
stated in the recital preceding the decretal
paragraph, or may be omitted entirely (Bull
V. International Power Co., 84 N. J. Eq. 14,
92 Atl. 796) ; but there should be an adjudi-
cation in a decree of the rights to wliich a
party or parties are entitled. This does not
include, as I understand it, several negative
adjudications against a complainant as to
precise questions put in issue and on which
be is unsuccessful, but that it is only neces-
sary that a general adjudication in favor of
the defendant, so far as he is successful,
need be made, unless, of course, there are
specific matters or things to be awarded to
him, and wliidi cannot appropriately be made
the subject of an omnibus adjudication.
This, I think, appears from the mere contem-
plation of the fact that, if the complainant
were wholly nnsuccessful, a simple decree
would be entered reciting that he was not en-
titled to relief touching the matters set forth
in Ills bill, and that the bill should be dis-
missed, and tliat, too, without long recitals
to the effect that he was not entitled to this
and that specific relief, etc.
[6] It Is true that the Vice Chancellor
states In his opinion the allegations in the
bill which the proofs failed to establish, and
says that the decree must provide, as to
them, that an actionable case was not made.
This does not Indicate to me, however, that
he meant that they should be set out seriatim
in the decree; and I think the decree will
afford the defendants all the protection they
need by a clause dismissing the bill as to all
and singular the matters and things alleged
therein, and which are not adjudged in favor
of the complainant. This fbrm of decree
would give the defendants all they are enti-
tled to by way of estoppel of record against
any other suit or action by the complainants,
or those in privity with them, with refer-
ence to any of the allegations of the bill
which are not adjudicated in their favor.
Every matter put in Issue by the pleadings
is undoubtedly to be presumed to have been
adjudicated, tf there be a decree for or
against one or more of the parties to the suit.
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S78
101 ATZAm'IO BEPORTBS
(N.J.
And yet the expression of fhe Judges In the
decided cases generally Is that a former Judg-
ment Is concluslTe as to all demands In Is-
sue and adjudicated in the former suit.
Soutbem Padflc R. K. Co. t. United States,
1G8 U. S. 1, 18 Sup. Ct 18, 42 U Ed. 355;
WUloughby v. Chicago Ilys. Co., 50 N. J. Eq.
C56, 25 Atl. 277. In any event, for the sake
of greater certainty, It would appear to be
better to formally adjudicate in terms all is-
sues In a chancery suit, either generally or
specifically as the nature of the case may re-
quire ; and a decree can always be so fram-
ed. The form of Judgments of courts of law
are not as elastic as decrees In equity, and
sometimes do not show what were the points
submitted for decision. In this situation it
seems that resort may be had to parol evi-
dence to show what was submitted and de-
cided. See Wells on Bes Adjudlcata, t 102.
[•] Now, as to the question of costs: It has
already been observed that each of the par-
ties, complainants and defendants, have suc-
ceeded in part, and, I should add, that both
sides have succeeded on substantial Issues.
In Diocese of Trenton v. Toman, 70 Atl. 881,
I held, when Vice Chancellor, that under the
chancery act (P. L. 1902, p. 540, § 91) the al-
lowance of a counsel fee to complainant was
discretionary. That section was amended in
1910 (P. L. p. 427), but in no way which is
important with reference to the case now be-
fore me. The allowance of counsel fee to
one party against another in a case like the
one sub Judice is not compulsory, but discre-
tionary, and therefore the rule that, where
the complainant and defendant are each suc-
cessful on one or more substantial Issues,
neither is entitled to costs as against the
other, applies; and this, obviously, extends
to counsel fees as well.
[7, 1] The result reached is that a decree
may be entered by the complainants' solicitors,
granting the relief to which complainants are
entitled, as stated in the opinion of the late
Vice Chancellor, containing a paragraph dis-
missing the bill as to all and singular the
matters and things alleged against the defend-
ants and which are not in and by the decree
adjudged to the complainants, and also a
paragraph to the effect that neither of the
parties, complainants or defendants, is enti-
tled to costs and counsel fees as against the
other or others, with the right reserved to
the complainants to apply for costs and
counsel fee to be paid by the Mew Xork &
New Jersey ^Water Company out of such
avails as may be gotten for it by and through
the relief awarded in the decree.
Now, as to the form of the decree: In our
practice It Is quite usual, in the ordering
part of a decree, to recite that it is made
up<»i motion of counsel, naming them, for the
party entering the decree ; but I think that,
where a complainant prevails in part, and is
consequently entitled to enter a decree, that
decree, where a negative adjudication is to
be made against the complainant, which is
affirmative so far as the defendant is con-
cerned, ought not to be entered, apparently
on the motion of complainant's counsel, when,
in truth, it is not, and I think it unusual to
enter a decree with alternate recitals of mo-
tions made on behalf of complainants and de-
fendants, naming counsel as moving for the
respective parties, for the specific relief ac-
corded to each. I concede that this may be
done without impropriety, and yet I am un-
aware of any practice authorizing it In
this connection, I have taken occasion to
look up some forms of decrees, for the pur-
pose of ascertaining whether or not such a
practice as Just referred to, exists. In the
forms printed in the Equity Draftsman
(American Notes, 1861) at page *823 et seq..
the decrees are not expressed to be made up-
on the motion of counsel. The decree in
Page V. Harris, commencing at page *830, is
one awarding relief to both complainant and
defendant; and at page *832 it is recited
that the matter came on "in the presence of
counsel learned on both sides," and the order-
ing part commences, "And his honor doth de-
clare that the plaintiS is entitled to," eta
And, further on, it Is ordered that "the said
plaintiff do forthwith grant and execute to
the said defendant," etc.
It may be that the reason that the En^ish
decrees In chancery were not expressed to be
made on motion of counsel, naming them,
was because the decrees were not signed by
the Chancellor, but were drawn up by the
register of the court in conformity to the
Chancellor's opinion. Dan. Ch. PI. & Pr.
*1008 et seq. However this may be, our own
approved forms of decree seem to have beoi
drawn upon the English model, for in Dick.
Ch. Prec. (Rev. Ed.) the form of a final de-
cree, at page 178, wlille it recites the pres-
ence of counsel, does not purport to be made
on motion of counsel. This is true of the
forms of decrees in foreclosure proceedings
at page 361 et seq. and of a final decree of
divorce at page 4^.
The decree to be entered in the case at liat
will recite that the cause came on for hear-
ing in the presence of counsel for the respec-
tive parties, naming the parties and counsel,
but will not recite that it is made on motion
of counsel lor any one of them. The decree
will, however, be entered by the complain-
ants' solicitors, whose firm name will be in-
dorsed upon the back thereof. The draft
must be submitted to defendants' solicitors.
who, if they object to its form, will be heard
on that question.
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Conn.)
AINS V. HAYES
679
(92 Conn. UO)
AINS T. HATES.
(Supreme Court of Errors of Ckinnecticat Aug.
2, 1917.)
Landlobb and Tkrant (£=3211(2) — Sale ot
rBEMisEs— Recovery of Damaoks by Ten-
ant— ^"Compelled."
Under agreement that. If tenant was com-
pelled to Tacate through a sale of the cottage,
he was to receive $50 and moving expenses, that
lessor sold the house to a party, who, after in-
stalling gas, raised the rent to an amount which
the tenant could not pay, would not authorise
recovery, where the increase in rent was rea-
sonable; the tenant not being "compelled" to
leave by the terms of the sale or by the action of
the purchaser.
[Ed. Note.— For other definitions, see Words
and Phrases, First and Second Series, Compel.]
Appeal from Court of Common Pleas, Fair-
field County ; John J. Walsh, Judge.
Action by Vetal F. Alns against Bdward D.
Bayea Judgment for plaintiff, and defend-
ant appeals. Judgment set aside, and cause
remanded for rendition of Judgment in f&Tor
of defendant.
Tbis action Is for damages for compelling
the plaintiff to move, occasioned, as alleged,
by the sale of a house formerly owned by the
defendant. A memorandum of agreement re-
lating to this transaction was In the follow-
ing words:
"Bridgeport, Conn., August 15, 1914.
"I hereby agree, if Mr. Ains is compelled to
vacate my cottage on Ezra street through my
selling said cottage, he is to receive the sum of
fifty (50) dollars and moving expenses, which are
not to exceed the sum of $14.
"Edward D. Hayes."
The controlling question In issue was
whether or not the plaintiff was compelled
under the terms of the contract to move
through the defendant's selling the cottage.
T%e finding shows that:
The defendant was the owner of a house
consisting of five rooms and a bathroom, but
with no water. This building was situated
on the corner of Ezra street and Fairfield
avenue, In Bridgeport, Conn. Ezra street
was a new street, and Fairfield avenue had
Just been laid out through a newly opened
tract of land in the northern part of the city
of Bridgeport. The place Is now a residential
neighborhood, and this house was the first
one erected on this street. The cottage on
this property was lacking in modern improve-
ments, and consisted of a small flve-room
house upon a city lot Prior to July 15, 1915,
the wife of the plaintiff called at the house
of the defendant and Inquired If he had any
rents. The defendant stated that he had a
house which was not complete, as the water
and gAs bad not been connected, but that
water could be drawn from a spring a few
hundred feet away until the dty water sup^
ply was connected, which would be In a few
months. The defendant showed the plaintiff
the building and offered to rent the same for
$14 per month, to commence on August 1,
1915. Tb« plaintiff was willing to take the
house on these terms, providing the defendant
would give him assurance that he would not
sell It to anybody who would compel the de-
fendant to vacate the premises. The de-
fendant accepted these terms, and on August
15, 1915, executed the written agreement
hereinbefore set forth. The defendant re-
ceived no consideration for this writing. The
plaintiff occupied these premises and paid the
rent therefor until October 1, 1916. On July
15, 1916, the defendant sold this house to one
Koehler, who knew about this agreement be-
tween the plaintiff and the defendant. Kel-
ler installed gas in the house between July
15 and September 9, 1916, and then notified
the plaintiff that, beginning October 1, 1916,
the rent for the house would be $25 a month.
Tbis sum was more than the plaintiff could
afford to pay for the house rent and was en-
tirely beyond bis means, and In consequence
of the increase of rent the plaintiff was
obliged, on October 1, 1916, to find another
rent. The cost of the plaintiff's moving was
$7.50. The court rendered judgment for the
plaintiff, to recover the sum of $50 and $7.50
costs of moving, with double costs.
John A. Cornell, Jr., Spotswood D. Bowers,
and Charles E. Williamson, all of Bridgeport,
for appellant. Henry E. Shannon and Frank
U Wilder, both of Bridgeport, for appellee.
RORABACK, J. (after stating the facts as
above). There Is nothing disclosed In the
finding of facts which shows that the plain-
tiff was subjected to such a degree of com-
pulsion as to warrant the rendition of a Judg-
ment in his favor. The contract states that
it was agreed that. If the plaintiff was com-
pelled to vacate the defendant's premises
because of the sale of them, he was to re-
celye the sum of $50 and moving expenses.
The word "compelled" may la some cases
refer to compulsion exercised through the
process of the courts, or through laws act-
ing directly upon the parties. Such certainly
Is not the present case. The word "compel"
In its ordinary sense means:
To drive or urge with force; to constrain;
oblige; necessitate, whether by physical or mor-
al force. Webster s International Dictionary.
As applied to the agreement of Mr. Hayes,
the meaning of the language, "if Mr. Ains
is compelled to vacate my cottage on Ezra
street through my selling said cottage," is
this: Mr. Alns may be compelled to leave
through the terms of the sale, by which the
purchaser Is to take Immediate possession;
or Mr. Alns may be compelled to leave by
the action of the purchaser. Immediately
upon his purchase, notifying him to leave;
or Mr. Alns may be compelled to leave by
the action of the purchaser In, Immediately
upon his purchase, making It unreasonable
to expect him to continue in possession, as,
for example, by raising the rent to a prohibi-
tive rental.
The record is also barren of facts which.
4^s>For other caaes >e« savne toplo uirt KUY-NUMBEK in all Key-Numbered DigeaU and Indaxw
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680
101 ATIiANTIC REPORTER
(Conn.
aliunde tend to sustain the plaintiff's dalm
tbat he was compelled to vacate these prem-
ises becanse they had been sold. It does
not here appear that either the defendant,
or the party purchasing his property, did
anything which the law condemns. There
was no actual or threatened exercise of pow-
er possessed, or supposed to be possessed,
over the person or property which the plaln-
ttS occupied. It Is not even claimed tbat
the plaintiff was ever notified or requested
to surrender possession of the property,
which had been leased to him by the defend-
ant. There Is nothing to suggest that this
Increase in the rental was arbitrary or un-
reasonable. Upon the other hand, It Is fair
to infer, from the facts found, that the
owner of the property might have been Jus-
tified in making an alteration In the charge
for the use of bis premises. The property
had been improved, and the facts were not
the same when the plaintiff vacated these
premises as when he leased them. The
only compulsion shown came from the plain-
tiff's inability to pay the rental of the prop-
erty. This ftict cannot be resortedt to for
the purpose of fastening liability upon the
defendant.
. There Is error, the Judgment for the plain-
tiff Is set aside, and the cause ronanded for
the rendition of Judgment In favor of the de-
fendant, ^e other Judges concurred.
(tS Conn. UE)
SCHWARTZ T.
DASHIFF et aL
(Supreme Court of Errors of Connecticut Aug.
2, 1017.)
1. PaTMEKT «=»89(5) — APPUOATIOIf OF Pat-
IfENTB.
Where contract for sale of goods provides
that purchase price shall be paid in installments
of $25 per week, evidenced by notes, and payee
applies payments to notes not due, those which
were due at the time, and to which payments
should have been applied, are extinguished, al-
though not they, but notes not due, were sur-
rendered at the time of payment.
2. Sales «=»187— Pbicb— Iwtebest.
Where plaintiff sold defendant trunks, pur-
chase price to be paid when trunks were sold by
defendant, she is not entitled to recover interest
on purchase price of trunks not sold.
Appeal from City Court of Danbury ; Sam-
uel A. Davis, Associate Judge.
Action by Rosa Schwartz against Morris
Dashlff and another. From the Judgment,
plaintiff appeals. Affirmed.
Action to recover on an alleged written
contract, and to recover the value of goods,
wares, and merchandise, brought to the city
court of Danbury. Facts found, and Judg-
ment rendered for the plaintiff for $66.G0,
and appeal by the plaintiff. No error.
Chester H. Brush, of Danbury, for appel-
lant. Henry O. Wilson, of Danbury, for ap-
pellees.
RORABACK, J. The complaint contahis
four counts. The principal controversy Is as
to the allegations of the first count of the
amended complaint, which reads as follows:
On or about April 30, 1915, the plaintiff sold
to the defendants a part of a stock of gents'
furnishings, under a written agreement in
the following language:
"Danbury, Conn., April 30, 1915.
"I, Rosa Schwartz, from 104 White St.. Dnn-
bnry. Conn., county of Fairfield, have sold to
Dasbiff & Kruzansky, style of firm G. Z. S.vstem,
at 32 White St, Danbury, Conn., part of stock
consisting of gents' furnishing and clothinfr,
amounting to $485.75, same beine paid as fol-
lows: $25 cash; the balance $2o weekly per
notes; $00.75 note due May 1, 1915, and bal-
ance in notes as agreed on the notes.
"Dashiff & Krusansky."
The defendants telled to make payments In
accordance with the terms of said contract,
and there remained due on the same August
7, 1915, the sum of $100. To facilitate the
weekly payments called for in the contract,
a series of notes for $25 each, payable one
week apart, were executed. Four of these
notes remained unpaid August 7, 1915. The
fourth note has been paid since the com-
mencement of this suit, on the 7th day of
August, 1916.
The defendants in their answer admitted
the sale of the goods, that the agreement de-
scribed In the complaint was signed by them,
that notes payable one week apart were giv-
en to the plaintiff, and tbat there were 16
notes, each for $25, made by them. The re-
maining allegations of this count were de-
nied by the defendants. The defendants in
their answer also aver that by a mistake 17
notes were given. Instead of 16, as intended,
and that the seventeenth note was without
consideration and void.
The finding shows that by the written con-
tract the sum of $485.75 was to be paid In
installments as follows: $85.75 In cash at or
about the time of the sale, and the balance
of $400 in 16 promissory notes of $25 each,
payable one week apart $85.75 was paid to
the plaintiff by the defendants, and a series
of notes, all dated May 1, 1916, was signed
and delivered by the defendants to the plain-
tiff. These notes were numbered from 1 to
16, inclusivb It also appears tbat 17 notes
were made and delivered by the defendants
to the plaintiff. Tixe notes falling due on
July 3 and August 7, 1916, were botli num-
bered "13." The parties did not Intend to
make the seventeenth note, and there was no
consideration therefor. These notes were not
presented In their numerical or chronological
order, but several of them were presented
without regard for such order. Notes 1 to
11, Inclusive, 15, and 16 were paid by the
defendants prior to the date of the complaint
No. 14 was paid by the defendants to the
plaintiff subsequent to the time when the ac-
tion was commenced, and before the trial.
Fourteen of the series of 16 notes were
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STATE T. MANCINI
631
paid by the defendants to the plaintiff.
Note No. 12 and two notes, each numbered
"13," were presented to the defendants for
payment; but payment was refused on ac-
count of the discrepancy In number and
presentation. It may be ascertained by a
little mathematical calculation that notes
Nos. 14, 15, and 16 were not due at the time
when this action was commenced on Aug^ust
7, 1915. It appears that note No. 14, improp-
erly numbered "13," was due August 7, 1916,
note Na 15 was due on August 14, 1915, and
note No. 16 was due on August 21, 1915.
These notes were the only ones unpaid when
this action was commenced. No. 14 has been
paid since the commencement of this action.
There are now two notes, of $25 each, or
$50 unpaid. This was the exact amount
wbldi the defendants offered to allow the
plaintiff to take Judgment for. This the
plaintiff refused to accept This Is also the
amount of the Judgment rendered for the
plaintiff upon this part of the case.
[1] The right of the plaintiff to recover in
this connection depends upon the allegations
of her complaint and her claim that the de-
fendants failed to make payments in accord-
ance with the terms of the written contract,
and that there was $100 due thereon when
she commenced her action on August 7, 1915.
As stated, it appears that by the terms of the
contract three of these notes, namely, Nos.
14, 15, and 16, were not due when this action
was instituted. The terms of the contract
were In conformity with the terms of the
notes, except as to the one whldi was ap-
parently given by mistake. The plaintiff, by
her improper presentation and collection of
these notes, attempted to change the terms
of the contract and the terms of several of
the notes. The surrender of the notes be-
fore they were due did not alter the terms
of the contract, or of the notes due or not
due. These payments should have been ac-
cepted and applied to that portion of the In-
debtedness and the notes due when these
j>ayments were made. When so applied, the
debt or debts now said to be due when this
action was brought were necessarily extln-
gtilshed. Whether or not the notes affected
by these payments were surrendered is Im-
material as to the discharge of the debt or
debts to which such payments should have
been applied. New Haven Mfg. Go. v. New
Haven Pulp & Board Co., 76 Conn. 129, 130,
55 Atl. 604.
The alleged cause of action now before us
Is based upon certain notes, which were due
and paid, and which had no legal existence,
when this action was commenced. The de-
fendants offered to allow the plaintiff to take
jadgment for $50. This offer was refused
by the plaintiff. It follows, therefore, that
the plaintiff has no ground to complain of
the action of the trial court in rendering
Judgment in her behalf for $50 and costs, up-
on this brandi of the case. This also puts
an end to the plalntlfTs claim that the court
below should have allowed her interest upon
the notes.
[2] The remaining reasons of appeal re-
quire only a passing notica One of them
objects to the Judgment rendered, upon the
ground that no Interest was added to the
Judgment for certain trunks referred to in
the second count of the complaint. A suffi-
cient answer to this claim appears in the
finding of the court that these trunks were
not to be paid for until sold, and that they
were not sold when the plaintiff commenced
her action.
There is no error. The other Judges con-
curred.
STATE V. MANCINI,
(» vt. BOT)
(Supreme Court of Vermont. Windham.
Aug. 2, 1917.)
1. Cbimxnal Law <S=»1122(5)— Review— Pkes-
EEVATioN or Exceptions.
Refusal of requests to charge, though excep-
tions thereto were allowed and argued, cannot
be considered when no copy of the requests is in
the record.
2. Breach of Peace «=»1 — What Consti-
tutes.
If the circumstances justif:^ an officer in
arresting without warrant, it is the duty of
the arrested person to submit, and bis resistance
would constitute a breach of the peace, but in
the absence of such circumstances the attempted
arrest would be an assault, and resistance would
not constitute a breach of the peace.
3. Akkest <S=>63(1)— Necessity or Wabbant.
An officer may arrest without a warrant for
a breach of peace committed in his presence, and
in some circumstances to prevent a Drea<^ of the
peace.
4. Bbbach oir THK Peace «=5>1— What Cow-
BTTTUTES— StATCTB— CONSTBtrOnoN.
Since P. S. 5870, is not a definition of breach
of the peace, but merely defines certain modes
of committing such offense, the offense may be
committed in other ways; the term being ge-
neric and including all violations of public peaoa
or order.
5. Bbeaoh of the Peace <8=>1— What Con-
stitutj5&— "publio peace."
The "public peace" is that sense of security
and tranquility, so necessary to one's comfort,
which every person feels under the protecti(»
of the law, and a breach of the peace is an in-
vasion of the protection which the law thus
affords; and a violation of public order or de-
corum, if calculated and intended to disturb
public tranquility, may constitute a breach of
the peace.
[Ed. Note.— For other definitions, see Words
and Phrases, Public Peace; First and Second
Series, Breach of the Peace.]
6l Disturbance of Public Assevblagb «=»1
—What Constitutes— "Disturbance."
Any conduct contrary to the usages of a par-
ticular sort of meeting^ and class of persons
assembled, and which interferes with _ its due
proRress or is annoying to the assembly in whole
or in part, is a "disturbance."
[Ed. Note. — For other definitions, see Words
and Phrases, First and Second Senes, Disturb-
ance.]
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7. Disturbance or Pubuo Assemblage 9=>
1— What Constitutes.
One attending a dance at the invitation of
thoee in charge must conform his conduct to
their reasonable requirements, and he does not
have the absolute right to drink beer at a
dance.
8. Disturbance of Pubuc Assbmbi^oe 9=>
14 — What Constitutes.
When persona attending an appointed law-
ful meeting of any description conduct them-
selves in a manner lawful in itself, but at vari-
ance with the purpose of the gathering and in-
consistent with its orderly procedure, it will or-
dinarily be for the jury to say whether their
conduct was such as amounted, in the circum-
stances, to a disturbance of the peace.
9. Distubbanck or Pobuo Assembi,aok 4=»
14— What Constituteb.
The court cannot say, as a matter of law,
that it was not a breach of the peace for a
man in attendance at a dance to walk through
rooms used in connection with the dance with
hia hands filled with beer bottles shortly after
a disturbance over an arrest of a drunken per-
son.
10. Breach or Peace «=>7— Evidence— Ad-
mssiBiurr.
In prosecution for breach of the peace, evi-
dence that the officer who made the arrest was
a deiiuty sheriff is admissible as bearing upon
his right to arrest without a warrant.
11. Breach of the Peace <S=»7 — Questions
FOB JuBT— Evidence— Admissibiljtt.
Since in a prosecution for breach of the
peace the jury must decide whether the acts
constituted a breach, it is proper to exclude the
answer of the arresting officer to the question
as to what acts of defendant he objected to.
12. Distubbanck or Public Assbmblaoe €=>
1— Possession or iNxoxiCAXiNa Liquors—
Biohts of Officers.
An officer preserving peace at a public dance
has a right to intercept an attendant who is
carrying intoxicating liquor and inquire as to
what was to be done with the liquor, if he rea-
sonably believes that it is to be sold, furnished,
or given away in violation of law.
Exceptions from Brattleboro Municipal
CJonrt; Frank E. Barber, Judge.
Frank Manclni was convicted of a breach
of the peace, and he excepts. No error.
Argued before MUNSON, C. J., and WAT-
SON, HASBI.TON, POWERS, and TAY-
LOR, JJ.
O. B. Hughes, State's Atty., of Brattleboro,
for the State. Gibson & Daley and W. D.
Smith, both of Brattleboro, for respondent.
MUNSON, 0. J. Manclni has Been convict-
ed in the municipal court of Brattleboro on
a complaint charging a breach of the peace
by tumultuous and offensive carriage, and
by assnulting one Adln Miller. A dnnce was
in progress In the grange hall In Dummers-
ton, and the constable of Dummerston was
in attendance In his official capacity. Some
time in the middle of the night he procured
the attendance of Miller, who was a deputy
sheriff, but wore nothing on this occasion
indicative of his office. Three men had been
arrested before the occurrence in question,
and were then being confined In the lodge-
room. Tills room and the supper room were
In the rear of the building on the lower
floor, and were connected with an ante-
room In front, which was reached by a stair-
way from the main hall above. As Miller
WHS coming from the supper room, he saw
four men in the anteroom coming towards
him with bottles in their bands, one of whom
was MancinL Miller, without saying any-
thing, stepped up to Manclni and took bold
of some of the bottles he was carrying,
whereupon Manclni and another of the party
wrenched them from Miller's hands. Upon
this Miller "collared" Manclni, and Mancinl
pushed bis hands over Miller's face, trying
to get at bis throat. At the time Mancinl
attempted this, Miller said, "Ton are fight-
ing an officer ; yon are under arrest" Miller
kept his hold on Mancinl and took him to
the lodgeroom, Mancinl fighting him all the
while In an effort to get away. MiUer tes-
tified that he arrested Mancinl for a breach
of the peace.
[1] The exceptions state that the respond-
ent made several requests to charge, and was
allowed exceptions to the court's refusal to
comply with them ; and these requests are
referred to and made a part of the bill,
and are required to be printed- Two of
these exceptions are argued, but they cannot
be considered, as no copy of the requests bag
been furnished. The transcript of the evi-
dence and charge is referred to and made
controlling according to section 2 of County
Court rule 31, and it appears from this
that certain exceptions to the admission and
exclusion of evidence were taken by the
respondent, and that there was a motion to
direct a verdict on several grounds presented
Informally in an oral discussion. This cov-
ered the claims that there was no evidence
to warrant the finding of a breach of the
peace or of any violation of law by the re-
spondent; that the respondent had a right
to the possession of the bottles, and to use
force enough to retain possession; that
Miller acted throngbout without authority;
and that the respondent liad a right to resist
him as he did.
[2] There was ample evidence to sustain
the complaint, if the circumstances were
such as to Justity Miller in arresting without
a warrant If tWs was the case. It was
the respondent's duty to submit, and bis re-
sistance would constitute a breach of the
peace as charged. State v. Carpenter, M
Vt. 551. But if the respondent's previous
conduct was not such as to make him liable
to arrest without a warrant. Miller's Inter-
ference was, in the circumstances, an as-
sault upon the respondent which he could
lawfully resist State v. Hooker, 17 Vt
658; 2 Blsh. Or. Law, { 37; note, 84 Am.
St Rep. e9a So In order to determine
whether the respondeat had a right to make
the reststence he did, it will b(> necessary
to ascertain whether the officer could law-
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STATB V. MANCINI
583
fnlly make the arrest 2 R. O. L. 474 ; note
84 Am. St Rep. 700.
[3] An officer may arrest without a war-
rant for a breach of the peace committed
In his presence, and In some circumstances
he may do this to prevent a breach of the
peace. 5 0. J. 408. The question whether
certain conduct constitutes a breach of the
peace often depends largely upon the dr-
cumstances of the particular case. An act
which would be lawful In some drciunstanc-
es may amount to a breach of the peace tf
done In other circumstances. 8 R. O. I<.
285.
[4] If It were conceded that respondent's
conduct previous to his being "collared"
by Miller did not constitute a breach of the
peace by tumultuous and offensive carriage,
this would not be determinative of the case.
A breach of the peace may be committed In
other ways than those specified In P. S.
5870. This section Is not a definition of
the crime known as breach of the peace,
but is a statute defining certain modes of
committing that offense. State v. Boyd,
99 Atl. 515. The terra Is generic, and In-
cludes all violations of the public peace or
order. State v. Oark, 64 W. Va. 625, 63
S. B. 402.
[(] A breadi of the peace Is described as
"a violation of public order; the offense of
disturbing the pnbllc peace." Bouv. Diet
The public peace la that sense of security
and tranquility, so necessary to one's com-
fort, which every person feels under the
protection of the law; and a breach of the
peace Is an invasion of the protection which
the law thus affords. State v. Archibald,
59 Vt 648, 9 Atl. 362, 60 Am, Rep. 755. A
violation of pnbllc order or decorum. If
calculated and Intended to disturb the public
tranquility, may constitute a breach of the
peace. Bouv. Diet; Davis v. Burgess, 54
Mich. 614, 20 N. W. 540, 52 Am. Rep. 828;
Stewart v. State, 4 Okl. Or. 564, 109 Pac.
243, 82 L. R. A. (N. S.) 505; Delk v. Com-
monwealth, 166 Ky. 39, 178 8. W. 1129, L. R.
A. 1916B, 1117.
Mr. Bishop says that whatever, of anffl-
dent magnitude for the law's notice, one
willfully and unjustifiably does, to the dis-
turbance of the public order or tranquility.
Is Indictable at common law. 1 Bish. <>.
Law, { 533. He refers to "breadies of the
peace" as a term of indefinite, yet large,
and sometimes greatly expanded, meaning,
and says further that:
"Commonly and more narrowly it signifies any
criminal act ot a sort to dlsturo the public re-
pose." Section 536.
With reference to the disturbance of as-
semblies he says:
"When people assemble for worship, or in
their town or other lilce meetings, or probably
always when they come together m an orderly
way for a purpose not unlawful, the common
law makes it a crime to disturb their meeting.
* * * What amounts to disturbance varies
with the nature and objects of the meeting."
Section 642.
P. S. 6871 prescribes the penalty Incurred
by "a person who l>y a disorderly or unlaw-
ful act disturbs a town, sodety or district
meeting, or a school or any meeting lawfully
assembled." In considering what constitated
a disturbance onder a similar statute in
Massachusetts, Shaw, C. J., said:
The question "cannot easily be brought with-
in a definition, applicable to all cases ; it must
depend somewhat upon the nature and character
of each particular kind of meeting and the pur-
poses for which it is held, and much also on the
usage and practice governing such meetings.
• * * It must be decided as a question of
fact in each particular case; and although it
may not be easy to define it beforehand, there
ia commonly no great difficulty in ascertaining
what is a willful disturbance in a given case.'
Commonwealth v. Porter, 1 Gray (Mass.) 476.
[6] Speaking generally, the rule applicable
to disturbances of public assemblies is that
any conduct which, t>eing contrary to the
usages of the particular sort of meeting and
class of persons assembled, interferes with Its
due progress, or is annoying to the assembly
In whole or in part, is a disturbance. 2 Bish.
Cr. Law, { 309.
[7] It is urged that the respondent was
only doing what he had a right to do ; that
he was the owner of the beer and had a
right to do as he pleased with It, If It whs
not used for an Illegal purpose. But the
respondent's right to possess and drink the
beer at the time and place In question was
not absolute. It was not even such as it
might have been in that place at some other
time, as when the place was otherwise oc-
cupied. The respondent was there at the
invitation of those in control of the dance,
and It WIS his duty to conform his conduct
to their reasonable requirements. See 2
Bish. Cr. I.aw, » 310.
[8] The importance of the attending circum-
stances as an element In determining whether
the conduct complained of amounts to a breach
of the peace, Is indicated by many adjudged
cases, and Is fairly apparent from the statu-
tory characterization of the act as one which
disturbs or breaks the public peace. It has
been held in this state that a boxing match,
while not a breach of the peace as conducted
in ordinary athletic sports, may be so con-
ducted as to become such, and that it is for
the jury, under proper instructions, to deter-
mine from the nature of the conduct whether
the offense has been committed. State v.
Bnmham, 56 Vt 445, 48 Am. Rep. 801. And
when persons attending an appointed law-
ful meeting of any description conduct them-
selves In a manner lawful in Itself, but at
variance with the purpose of the gathering
and Inconsistent with its orderly procedure,
it will ordinarily be for the Jury to say
whether their conduct was such as amounted,
In the circumstances, to a disturbance of the
peace.
[9] Here four young men, one of whom was
the respondent, with hands filled with beer
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bottles, were making tlielr ,way through the
rooms nsed for and In connection with the
dance. Officers were present to preserve or-
der and protect from annoyance those prop-
erly pursuing the purpose of the gathering.
Others had been arrested for a drunken dis-
turbance shortly before this occurrence, in cir-
cumstances from which it may fairly be pre-
sumed that the fact was known to the re-
spondent The officer In charge had previous-
ly cautioned the respondent in connection
with blB possession of a suit case apparently
containing bottles, and told him to behave
himself. We cannot say as a matter of law
that the respondent's conduct was not, in the
circumstances, a breach of the peace. On the
evidence, the question was for the Jury under
proper Instructions.
[10] Against objections that the evidence
was irrelevant and immaterial, the state was
permitted to show that Miller was a deputy
sheriff, and that the respondent was arrested
and placed in a temporary lockup. Neither
ruling was error. It was material to show
that Miller was a peace officer as bearing
upon bis right to arrest without a warrant
The arrest and placing in a temporary lockup
were a part of the transaction under investi-
gation, and so not immaterial.
[11] Miller was called as a witness for the
state, and testified to the facts leading up to
the respondent's arrest In cross-examina-
tion he was asked :
"And the only breach of the peace that you
complain of is because the respondeat objected
to your taking a bottle of beer from his band
as you have describedV"
The question was excluded, and the re-
spondent excepted. The reason advanced in
support of the exception Is that Miller was
the complaining witness. It does not appear
that this was the fact. Besides, it was Im-
material what particular thing in the re-
spondent's conduct Miller complained of. The
jury, and not the witness, was to Judge of
the quality of the acts which the prosecu-
tion relied upon as constituting a breach of
the peace. The witness had testified fully
as to the facts both In direct and cross ex-
amination.
In his argument to the court on the re-
spondent's motion for a directed verdict, the
state's attorney said, in effect, that a drunken
fracas had taken place earlier in the evening.
The respondent asked that an exception to the
statement be noted, but the court Ignored the
request and could properly do so, for the
reason, among others, that the evidence war-
ranted the statement.
[12] The state's attorney claimed and ar-
gued in substance that when Miller saw the
respondent coming into the ball with bottles
of beer, he had a right to investigate and as-
certain whether or not it was being carried
In for unlawful sale or distribution. The re-
spondent excepted because there was no evi-
dence that Miller had reason to believe that
it was for unlawful sale or distribution, and
no evidence that he seized it for that reason.
The court, "in view of the discussion" (ap-
parently referring to that had in the presence
of the Jury on the motion for a verdict),
charged on this subject that intoxicating liq-
uor, being goods the sale and distribution of
which are prohibited in this state — ^In other
words being contraband — ^the officer had a
right to Intercept the respondent and Inquire
of him as to what was to be done with tbe
Uquor, if he reasonably believed that it was
to be sold, furnished, or given away in viola-
tion of law. The respondent excepted to this
on the ground that the evidence did not dis-
close that Miller had any reason to believe,
or did believe, that tbe liquor was being ca^
rled by tbe respondent for any unlawful pur-
pose.
It was not claimed that the argument and
charge on this point did not correctly state
the law ; so we have no occasion to consider
anything more than whether the evidence met
the respondent's objection. Miller testified
that be grabbed the bottles because be
thought it was not Just the thing to bring
them into the hall; that he wanted to see
what was going on; that he arrested the re-
spondent because he thought he was breaking
the peace by bringing "stuff" into the hall;
that he took tbe bottles to see what they
were. In answer to the respondent's ques-
tions the witness said :
"My mind was to know why they were brinit-
in^ such stuC into the hall and what tiicy were
going to do with it; it occurred to me that
three or four fellows, coming into the hall with
their hands full of bottles, couldn't use it all
themselves, and were violating the law and dis-
turbing tbe i^eace; (that) it was a breach of
the peace, bnn^ng this stuff into tbe ball un-
der the conditions that night"
It appeared from the testimony of tbe at-
fleer in charge that earlier in the evening the
respondent had In the hall a dress suit case
containing bottles, and that witness spoke to
him about It and cautioned blm, as hereinbe-
fore stated, and that the respondent there-
upon took the dress suit case outside the
hall, three or four fellows going with him.
This evidence and the inferences to be drawn
from It fairly tended to support the argument
and charge.
Other exceptions not noticed are too dear
ly without merit to require special consldera-
tloii.
Judgment that there Is no error in the pro-
ceedings, and that the respondent take noth-
ing by his exceptions. Let execution be donOi
OlVt 615'
ESTABROOKS et al. v. ESTABROOKS.
(Supreme Court of Vermont St Johnsbury.
Aug. U, 1917.)
1. Easements <S=>48(3)— Extent or Rioht—
ExrKESs Grant — Constbuction.
Where testator, owning two adjoining lot*
with a driveway running across both, devised
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S8S
to plaintiffs lot then occairfed by tbem, with
right of way "aa now used" acroas the other,
then occupied by testator, without designation
of terminal points, and plaintiffs had. for years
before and after making of will, while testator
waa living, gone to and from his driveway by
wa^ of street leading up to it, as well as over
their driveway, plalntifn were entitled, in ac-
cordance with testator's intention, to use of
driveway through both ways of approach in use
in his lifetime, and fact that, because plaintiffs
have moved to a different part of the lot, they
had to ose a longer section of street as approach
to driveway, does not defeat that right.
S. Easements «=925— Extent of Right— Bx-
FREB8 GBANT — CONBTRUOTION.
Where testator, owning two adjoining loti
with a driveway running across both, devised
to plaintiffs lot then occupied by them, with
right of way across the other, then occupied
by himself, so long as either one should live
and occupy premises described as "dwelling
bouse, outbuildings, and land where they now re-
side," testator intended to give them right to
use driveway so long as they occupied any part
of that lot, and since right was given for their
personal benefit, and not for benefit of land, their
conveyance of part of premises gave grantees
no interest in right of way.
Appeal In Chancery, Caledonia County;
Wlllard W. Miles, Chancellor.
Action by Lydla A. Estabrooks and anoth-
er against Henry F. B^stabrooks. From a
decree for plaintiffs, defendant appeals.
Modified and afflrnied, and remanded.
Harry Blodgett, Dunnett & Shields and
Walter W. Wesley, all of St Johnsbury, for
appellant. Porter, Witters & Harvey, of St
Johnsbury, for appellees.
MTJNSON, C. J. The premises Involved in
this controversy were owned In one parcel by
Warren Estabrooks, who was the father of
the defendant and the father-in-law and
grandfather, rcsiiectively, of the plalntUfs,
and who died April 3, 1906, leaving a will
executed November 11, 1901. At the time
the will was made the testator was occnpy-
Ing the premises devised to the defendant,
and the plaintiffs were living on the premises
devised to them, and enjoying the privilege
which is the snbject of the dispute. The
clause creating the easement Is as follows:
"Also a right of way, as now used from said
land to Main street. In St. Johnsbury, across
the lot where I now rt-side, to them and each
of them so long as either of them shall live and
occupy the premlBes aforesaid ; and said right
of way shall then terminate."
It should be noticed here that the grant is
of "a right of way," without the designation
of terminal points, and that its coarse from
the plaintiffs' land across the servient es-
tate Is to be determined solely by the exist-
ing use; for these features of the grant are
made the basis of Important claims, to be
taken up after the case has been fully stated.
The premises divided between these parties
by Warren Estabrooks' will extended from
Main street easterly to North Pearl street and
Warren avenue; the last being a street ex-
tending easterly from the north end of North
Pearl street nearly at a right angle. The
lot devised to the plaintiffs was a projec-
tion of the property extending southerly
along North Pearl street and bounded on
the north by a line which was nearly in line
with the south line of Warren avenue. But
the north part of this lot was separated from
North Pearl street by a triangular piece, not
owned by Warren Elstabrooks, the base line
of which was 17 feet and the side lines about
100 feet. This base line is practically a con-
tinuation to North Pearl street of the line
whi<fli bounded plaintiffs' lot on the north.
The driveway through the defendant's land
from Main street to North Pearl street en-
ters that street at Its junction with Warren
avenue, about 15 feet north of the point where
the line just described strikes North Pearl
street The buildings occupied by the plain-
tiffs at the date of the will, and until June
11, 1914, were located on the northerly end
of their lot A driveway extended from the
bam around the rear end and north side of
the house, and then curved to the north, and
crossed the division line at the comer be-
tween the plaintiffs' lot and the triangular
piece, and entered the defendant's driveway
about 18 feet from the line of North Pearl
street. There was a walk extending from the
plaintiffs' driveway near the rear of the
bouse, whi(^ entered the defendant's drive-
way about 60 feet west of the driveway con-
necticHi; but this walk has since been dis-
continued. There were steps which led down
to North Pearl street from the lawn in
front of the bouse, crossing the triangular
piece about 28 feet north from its point A
portion of the passageway leading to these
steps was grassed over. It does not appear
that objection to the maintenance of the
steps has been made by any one. The de-
fendant has excepted to the chanc^or's fail-
ure to find that there was a concrete walk
from the easterly front steps connecting with
the driveway, claiming that the existence of
such a walk is established by uncontradicted
evidence.
The plaintiffs used the driveway leading
tnnn their buildings to the defendant's drive-
way, and the defendant's driveway from the
point of Junction to Main street, as their
convenience and necessities required, without
let, hiudrance, or obstruction. They also
used the walk above described as a means of
passing between their house and the defend-
ant's driveway, in going to and from Main
street On coming from their driveway into
that of the defendant, they sometimes turned
to the right and passed into North Peail
street The driveway between Main street
and the plaintiffs' bouse was used by grocery-
men, hackmen, and visitors, and for the de-
livery of coal. Orocerymen and milkmen
sometimes came up North Pearl street, made
their deliveries and passed across to Main
street, and scmietimes made the trip in the
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reverse order. Hackmen engaged by the
plaintiffs would sometimes come up North
Pearl street, stop for the plaintiffs at the
steps before described, and drive along to
the North Pearl entrance, and thence across
to Main street, and would sometimes cross
directly from Main street to North Pearl
street, and thence to the steps, and receive
the plaintiffs there. The plaintiffs used all
the described routes at their convenience.
The buildings occupied by Warren Eista-
brooks at tlie date of the will and until his
death, and since occupied by the defendant,
are located on Main street, somewhat back
from the street, with the bam directly in
the rear of the house, and the westerly end
of the driveway crossing the premises consti-
tutes the defendant's approach from Main
street to his buildings. At the southeasterly
corner of the barn is a gate connected with
a farmyard, which has been used at times to
dose the right of way.
On the Ilth of June, 1914, the plaintiffs
conveyed to Mary Caldbedi the lot devised
them by Warren Estabrooks, excepting a
small lot in the southeast comer, and re-
serving their interest in certain springs and
a right to remove the bam. Subsequent to
the conveyance the bam was moved onto the
lot not conveyed, and converted into a dwell-
ing, and the plaintiffs have since resided
there. The will gives a right of way from
the plaintiffs' land, across the defendant's
land, to Main street Within such limits as
these terms may be held to establish, the
extent and location of the right are to be
determined by the use then existing. The
continuance of the right is conditioned upon
the occupancy of the premises by the gran-
tecs of the right. The flnal question is
whether the present occupancy meets the re-
quirement of the will.
The plaintiffs claim that the right devised
to them covered every line of approadi by
which they had been accustomed to reach
the driveway crossing the defendant's land ;
that they had a right to make use of the
public street between their steps and the
entrance to the deftendant's roadway as a
connecting link between the two; and that
the right to make use of that street remains
to them, notwithstanding their transfer of
that part of the premises which Included their
former dwelling and its aiH>roaches. The de-
fendant argues that this is a grant ot "a
right of way," and not of two or more; that
the way granted extended from the plaintiffs'
premises across the defendant's land to Main
street, and not from Pearl street across the
defendant's land; that no right was given
the plaintiffs to come upon the defendant's
land from any other place than their own
property.
[1] For a series of years before and after
the making of the will, and while the testa-
tor was living at the house now occupied by
the defendant, the plaintiffs and those having
business at their place came to and from the
testator's driveway by way of North Pearl
street, as well as over the driveway whidi
led directly from the plaintiffs' buildings to
the testator's driveway. In these circum-
stances, the words "as now used from said
land to Main street • * * across the lot
where I now reside,'' are not to be taken as
capable of only one construction, and so con-
clusive as regards the testator's Intention.
It is difficult to believe that one having the
interest the testator had in these devisees
intended that the delivery of their household
supplies should be accomplished only by go-
ing in from Main street and returning the
same way, when their driveway entered his
only 18 feet from North Pearl street. We
think it was the intention of the testator
that the plaintiffs should have the use of
the roadway between the two streets through
both the ways of approach then in use.
[2] It having been ascertained tliat the
plaintiffs were entitled to use a section of
North Pearl street In connection with the
way across the defendant's land while living
in the dwelling since conveyed, the fact that
their change of location to another part of
the lot requires the use of a longer section
of the street caimot of itself defeat the right
So we treat the remaining claim of the de-
fendant as standing squarely upon the ques-
tion of occupancy. By the terms of the win
the plaintiffs are entitled to the right as
long as they shall "occupy the premises
aforesaid," and the premis^ referred to are
described In the will as "the dwelling house,
outbuildings and land where they now re-
side." The defendant argues that this lan-
guage required the plaintiffs to remain in
possession of the entire premises, if they
wished to retain the right, and that they do
not now occupy the "aforesaid premises,"
but only a very small portion of them.
It is clear that the right to cross the de-
fendant's lot was given for the personal bene-
fit of the testator's daughter-in-law and
granddaugliter, and not for the benefit of the
parcel devised to them. T^e right was con-
ditioned upon their occupancy of the prem-
ises, and was to cease upon the death of the
survivor. This right being personal, tbe
plaintiffs' conveyance of a part of the prem-
ises gave their grantees no interest in tbe
right of way. The plaintiffs' continued oc-
cupancy of the remainder of the lot presents
the same situation as regards their personal
benefit which the testator had In contempla-
tion when he made his will. We think tbe
testator intended that the plaintiffs should
have access to and from Main street over tbe
driveway across his premises, through the
North Pearl street entrance, as long as they
continued to occupy any part of the lot ad-
Joining that street.
Decree modified, and affirmed as modified.
and cause remanded, with mandate.
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WESTERN MABTLAKD BT. CO. v. 8ANNER
587
(UO Md. E81)
WBSTBRN MARTIiAND RT. CO. ▼. SAN-
NEm. (Nol 6J
(Conit of Appeals of Maryland. June 26, 1917.)
1. Masteb and Servant «=s129(1)— Fedebal
liKFLOTEBS' IiIABIUTT AOT — NKGLIOENClt.
Under federal E^nployere' Liability Act (Act
AprU 22, 1908, c. 149, 35 Stat. 6S [U. S. Ck>mp.
St 1916, SS 8657-8665), recovery cnn be had
only for cases of accident in which negligence is
tlie cause of the injury.
2. Masteb and Sebvant «=»87— Actiohb Un-
der Fedebai. Euplovers' Liabiutt Act—
"Neolioencb" as Pbkrequisitb to Rxcot-
KBT.
The word "negligence," not being defined in
federal Employers LiiabiUt^ Act, must be taken
to mean such act of commission or omission as
would at common law have been sufficient to en-
title an action thereunder to be submitted to a
jury.
[For other definitions, see Words and Phrases,
First and Second Series, Negligence.]
8. Masteb and Sebvant ®=3ll2(3)— Actions
Undeb Fedebal Buplotebs' Liabiutt
Acp— Neolioencb.
Fact that a railroad has constructed no spe-
cial walk or path along its tra<^ for the use of
employes In operating switches is not such neg-
ligent omission as will make defendant liable to
its servant under the federal E<mployers' Liabili-
ty Act.
4. Master and Servant <3=>112(3)— Actions
Undeb Fedebai. Employers' Liabilitt Act
—Condition or Track.
Fact that the embankment or slope on which
a railroad was built did not come up to the bot-
tom of the ties is not of itself such negligence as
will render railroad liable to an employ^, jump-
ing from freight train where the track at that
point is wi a curve and the rails on the outer
tangent of the curve are necessarily higher than
on the inner tangent.
B. Master and Servant <3=>265(1)— Tbial
^=>139(1) — Actions koh Injuries— Taking
Case fbom Jvbt— SurFiciBNOT of Evi-
DENOB.
In an action under the federal E>mployer8*
Liability Act, it is incumbent upon the plnintiCf
to show affirmatively all the elements of his right
of recovery, and in the absence of evidence to
fully support the verdict, should one be found,
it becomes the imperative duty of the court to
direct a verdict for defendant.
8. Masteb and Servant <S=>285('8')— Actions
— Federal Employers' Liability Act.
In action by railroad employe under the fed-
eral Employers' Liability Act for injuries al-
leged to nave been caused by failure of railroad
to provide safe approach to switch for use of
trainmen, evidence held insufficient to warrant
submission to jury.
7. Masteb and Sebvant 4s»280— Actions—
Ekplotebs' Liability Act— Assumption
of Risk— Bvidencb.
In action by railroad employ^ under the fed-
eral SSmployers' Liability Act for injuries al-
leged to have been caused by failure of railroad
to provide safe approach to switch for use of
trainmen, plaintiff held, under the evidence,
precluded from recovery by assumption of risk.
Appeal from Superior Court of Baltimore
City ; James M. Ambler, Judge.
"To be offlclaUy reported."
Action by James Howard Sanner against
the Western Maryland Railway Company.
Judgment for plaintiff, and defendant ap-
peals. Reversed.
Argued before BOTD, C. J., and BRISCOE,
THOMAS, UBNER, and STOCKBRIDGE, JJ.
George R. Galther and George P. Bagby,
both of Baltimore, for appellant George
Moore Brady, of Baltimore (William Mllnes
Maloy and William Joseph Tewes, both of
Baltimore, on the brief), for appellee.
STOCKBRIDGE, J. This suit was brought
to recover damages for personal injuries re-
sulting to the appellee under the following
ctrcumstances :
James H. Sanner was a brakeman on a pas-
senger train of the appellant, running from
Cumberland, Md., to Eflkins, W. Va. On the
13th o< July, 1914, he was on a west-bound
train, and as the train approached a place
known as NefC's Siding, where It was to meet
an east-bound train, the plaintiff took a po-
sition on the locomotive in order to be ready
to Jump off and throw the switch, which
would enable his train to pass into the sid-
ing. As the place came in sight, it was seen
that the east-bound train had already arrived
at the point, and that the switch was open
for the west-bound train to enter. The en-
gineer accordingly, instead of bringing his
train to a stop before reaching the switch,
ran past it, and at a point some 30 or 40
feet beyond the plaintiff jumped from the lo-
comotive, and one of his legs gave way under
him. He picked himself up and continued
to discharge bis duties for the remainder of
the run. By the next morning his knee had
swollen considerably, and gave him pain. He
returned to Cumberland, where he was visit-
ed by the physician of the company, who
treated the case as one of a sprain. Little or
no Improvement taking place, he was later
sent to Baltimore, where an X-ray was made
of the injured joint This showed that "one
of the ligaments in the joint bad t)een torn,
and a little, tiny piece of bone was pulled off
with it" This amounted to a permanent in-
jury, incapacitating the plaintUI from further
work as a railroad man, an occupation which
he had followed for a number of years.
[1] The theory on which the suit was
brought was that it fell within the provi-
sions of the act of Congress of 1908, chapter
149. Section 1 of that act provides that ev-
ery common carrier by railroad engaged in
interstate commerce shall be liable in damages
to any person suffering Injury whUe he Is
employed by such carrier in such commerce,
where the Injury results "in whole or in part
from the negligence of any of the offlcers,
agents, or employes of such carrier, or by
reason of any defect or insufficiency, due to
its negligence. In its cars, engines, appliances,
machinery, track, roadbed, works, boats,
wharves, or other equipment." It is there-
fore clear that not all cases of accident and
injury are included within the provisions of
the act, but only those in which negligence
is the cause from whlcli the injury rcsultii.
tesoFot other cases se« same topic and KEY-NUMBER In all Key-Numbered DlKeets and Indexes
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588
101 ATUANTIO REPORTER
(Md.
That It was not Intended to apply to all cases
Is also made clear by the title of the act,
which is :
"An act relating to the liability of common
carriers by railroad to their employes in certain
cases."
[2] In order to detennlne whether a cer-
tain case Is within the provisions of the act,
it Is first necessary to ascertain whether
there has been actionable negligence on the
part of the railroad. Nowhere In the act is
any definition of negligence to be found.
Therefore the term must be taken to mean
such act of commission or omission as would
at common law hare been sufficient to entitle
the case to be submitted to a Jury. That neg-
ligence in this case Is claimed to have been
the failure of the railroad to provide a safe
approach to the switch for the use of the
trainmen whose duty It might be to open or
close the switch lever.
The accident happened about 6 o'clock p.
m., or an hour and a half before sunset, when
it must have been perfectly light The Im-
mediate cause of the Injury to the plaintiff
Is claimed to have been the existence of a
bole or guUey 5 feet long, 3 feet wide, and 4
feet deep, into which the plaintiff fell as he
dropped from the locomotive. He made no
examination of It at the time of the accident,
but on the following day, from the rear of
an east-bound train in motion, he observed a
hole or gully at or near the point where he
bad suffered his injury. There Is no positive
identification of the hole or gully be then
saw as being the same one Into whldi he bad
actually fallen. Nor Is there any identifica-
tion of the spot by any other witness. The
plaintiff testified to the appearance of the
hole he saw on the following day as Indicat-
ing that it bad been there for a considerable
length of time, but no knowledge of any de-
fect Is brought home to the railroad, or any
if its employ^.
Can it be said that the existence of sudi a
hole, assuming for the time being that it did
exist, constitutes actionable negligence? A
number of railroad men testified as to the
conditions of the approach to switches on the
railroads by which ttaey were employed, but
their evidence only shows that dlfTerent
modes prevail upon different roads, not that
there is any generally recognized method of
construction.
[3] Assuming, as for the purpose of the
present Inquiry must be done, the absolute
truth of all the plaintiff's testimony, and that
the railroad company had constructed no
special walk or path for those operating the
switch, that fact alone Is not sufficient to
fasten a liability upon the appellant, as be-
ing an act of negligent omission on its part.
[4] It was further claimed by the plain-
tiff as an act of negligence that the embank-
ment or slope upon which the railroad was
built did not come up to the bottom of the
ties at this point by a considerable distance;
but the plaintiff also testified that the road
at this point was on a curve, and other wit-
nesses testified without contradiction that
because of this curve, the rail on that side
was 2^ inches higher than on the other side.
This fact would of itself show a reason for
the elevation of the ties at thi& point over
that maintained under different conditions.
[5] The rule of law In this case is that
announced by Judge Alvey in State v. Mal-
ster, 57 Md. 309:
"It Is incumbent upon the plaintiff to show
affirmativelv all the elements of the right to re-
cover. tJnlesa the court can see that there is
such evidence in the cause as will thoroughly
support a verdict if the jury should find it to be
credible and proper to be made the basis of their
finding, it becomes an imperative duty of the
court to instruct the jury to find their verdict
for the defendant."
And this statement has been followed and
adopted in numerous cases since. The re-
fusal of the defendant's first prayer was
therefore clearly prejudicial error.
[S, 71 In view of this condnsion, It Is not
essential tbat the second question presented
by the record, vi2. the assumption of risk by
the appellee, should be discussed at any
length. It is, however, proper to say that,
under the adjudicated cases, the appellee is
precluded from recovery upon this ground al-
sa In Masterson v. Namqult Worsted Mills;
32 R. I. 10, 78 AQ. 258, the plaintiff turned
an ankle, and the acddent was said to have
resulted from an inequality in the floor; his
arm was caught in- some belting and injured.
He sued the master for negligence In the con-
struction of the floor, and it was held that,
even if it could be said that the defendant
was negligent in the construction of the floor,
it was a defect as obvious to the plaintiff as
the defendant, and that as it was so obvious
he assumed the risk, and the verdict for the
defendant was sustained. In A., T. & S. F. R.
R. T. Alsdurf, 47 111. App. 200, a brakeman
was ld.11ed on a siding. In the center of the
trade the spaces between the ties were filled
to the top of the ties, and then receded so
tbat there was no ballast at the ends of the
ties. In dedding the case the court says:
"In the absence of any agreement the railroad
was not bound to furnish a better track than
such as were In general use, or to furnish such
a track as the Jury might rightfully regard as
safer than the customary one. The deceased
must be held to have understood the ordinary
hazards attending his employment as a brake-
man, and to have voluntarily taken upon him-
self those hazards when he entered appellant's
employment Hazards arising out of the usual
and general methods ot construction on well-
managed railroads of the side tracks upon which
brakemen perform their duties must be consid-
ered as ordinary and incidental to the business
generally, and therefore as being generally as-
sumed by the contract of employment."
In Fletcher v. Freeman-Smith Lumber Ck>.,
98 Ark. 202, 135 S. W. 827, it Is said:
"Where a brakeman received injuries at hi-J
accustomed place of work, the risk of danger
from the steepness of the grade, being open to his
observation when he took service, was assumed
by him."
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PATTERSON v. MAYOR, ETC., OF CITY OF BALTIMORE
689
And the same rule baa been adopted and
followed In tbls° court. Westiughouse Man-
ufacturing Ca V. Monroe, 129 Md. 59, 9$
Atl. 206, and cases tbere cited. For tbe rea-
sons thus indicated, tbe Judgment appealed
from must be reversed, without a new trial.
Judgment reversed with costs.
<130 Md. 646)
PATTERSON et al. v. MAYOR, ETC., OF
CITY OP BALTIMORE. (No. 9.)
(Court of Appeals of Maryland. June 26, 1917.)
1. Eminent Douain 9s»202(4) — Absebsicent
. OP Compensation — Evidencx — Value fob
Special Pxibpose.
In a proceeding to condemn and open a
atreet through a tract of land, it was admia-
aible to ihow that the tract was available for
city lots, and to point out its special advantages
for residential or industrial purposes, though it
had been held as an unimproved and undevelop-
'«d tract and not laid oat into lots.
Z WrrNEssEs 4=3262 — Plats to Explain
TE8TEV0RT— DISCBETION Ol* COUBT.
Where in such proceeding a witness was
permitted to state fully his views as to the ef-
fect on the tract of land of locating a street as
proposed by tho city, and testified concerning
the irregularity in the shape of the lots into
which the tract might be divided, and the jury
was taken upon the gronnd and saw the actual
-conditions for themselves, and two plats were
admitted in evidence, it was within the court's
-discretion to exclude a plat prepared by the
witness and showing the plan proposed by him
tm the best method of developing the tract.
3. Eminent Domain 4=3208(1) — Assessment
or Damages— Evidence.
In a proceeding to condemn land for a street,
-evidence as to whether the street as laid out
by the dty was the most advantageous to the
-owners of the property, and as to what plan
would give the property the most utility, was
not admissible, as the question was the dam-
ages sustained by the plan adopted by the city,
and not whether this was more injurious than
some other plan.
4. EJVIDENCB «=>507 — EXPEBT Tebtimowt —
Mattebs of Common Knowi^doe.
A question asked an expert witness was
properly excluded, where men of sufficient in-
telligence to sit on a jury could answer the
question as well as the witness.
6. MtJNICIPAL CORPOBATIONS ®=>413(1)— PtTB-
uc Improvements— Assessment of Bknk-
I1T8— "Open"— "Latinq Out."
Baltimore Charter, $ 6, authorizes the city
to provide for laying out, maintaining, etc.,
any street in the city, and for assessing, either
generally on the city property or specially on
property benefited, the damages and expenses,
and paying over compenBstion to each person
entitled before any street shall bo openral. A
-different part of the section authorizes the city
to provide by general or special ordinance for
grading, paving, and curbing any street con-
demned, etc. Ueld, that the Legislature made a
distinction between opening a street and grad-
ing, paving, or curbing a street, and in a pro-
-ceeding to condemn and open a street the city
could not, assess the benefits to the property
from the grading or paving of the street, as
"open" is the equivalent of "laying out," which
is defined as tbe adoption of outlines or loca-
tions, and not the work of construction or im-
provements (citing 5 Words and Phrases, Lay
Out; see, also. Words and Phrases, First and
Second Series, Open).
6. Municipal Corpobations 4=»2GC— Public
Improvements — Statutory Provision.
Acts 1912, c. 32, amending Baltimore Char^
ter (Code Pub. Loc. Lews, art. 4) i 175, rela-
tive to the laying out, opening, or grading of
streets, but providing that nothing therein shall
affect any right or liability accrued, or any
proceeding begun or pending prior to the pas-
sage of that act, and the Acts 1914, c. 125,
dealing with the same subject, did not apply to
a proceeding commenced before they were
enacted.
7. Eminent Domain 4=9208(1) — Damages —
Evidence.
In a proceeding to condemn and open a
street, evidence that the city for some years bad
not been exercising its power of assessing the
cost of grading and paving streets on abutting
owners was irrelevant, as the nonexercise of
its power did not prevent tbe city from exer-
cising it in the future.
8. EhaNBNT Domain «=>204 — Asbesbmxnt or
Compensation— Evidence— Benefttb.
Where in a proceeding to condemn and open
a street it is attempted to show the benefits in
advance of the paving and curbing, the width
of the driveway and sidewalks to be adopted
should bo shown.
Second Appeal from Baltimore Cltj C!ourt:
Chas. W. Heulsler, Judga
Proceeding by tbe Mayor, etc., of the City
of Baltimore against Laura Patterson and
others, to condemn and open a street. From
an inadequate award, the property owners
appeal. Reversed and new trial awarded.
The following Is city's prayer No. 3, re-
ferred to in tbe opinion:
The jury are Instructed that the measure of
damages in this case is the market value of tho
property taken by the city of Baltimore, in this
proceeding, at the time of the taking, considered
without reference to the opening of Twenty-
Fifth street or any effect that such openLog may
have upon the property; and, in addition, sucm
damage, if any, as may, by such opening, have
been caused to the remaining property concern-
ed. The fair market value of the property taken
is the price that a purchaser, willing but not
compelled to buy, would pay for it, and whi(A
a seller, willing but not compelled to sell, would
accept for it
They are further instructed that the measure
of benefits is the increase in the market value
of the property in controversy caused by the
op;pning of Tw«ity-E^fth street through the
said property, and that this increase should be
considered as the amount which a purdiaser,
willing but not compelled to buy the property,
would pay for It, and which a scUer, willing
but not compelled to sell, will accept for it,
after Twenty-Kfth street shall have been open-
ed, graded, paved, and curbed; it being proper
to take into account the fact that the property
owner will be burdened when the street shall
be paved, with the special paving tax of 15
cents for each front foot on each side of said
street for a period of 10 years as a matter of
law; and that, as a matter of fact, in order to
utilize this property, it will be necessary for
the property owner to pave the sidewalk and
to grade the property back to a usaolo depth
in connection with that street, ((^ranted.)
Argiied before BOYD, C. J., and BRIS-
COE, BURKE, THOMAS, PATTISON, TJR-
NER, and STOCKBRIDGB, JJ.
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590
101 ATLANTIC RKPOETEB
(Md.
Arthur W. Macben, Jr., and Raymond S.
WllUams, both of Baltimore, for appellants.
S. S. Field and George Arnold Frlck, both
of Baltimore, for appellees.
BOYD, O. J. This Is the second appeal by
the appellants In a proceeding for the con-
demnation and opening of Twenty-Fifth
street from the east side of Greenmount ave-
nue to the west side of Harford avenue, un-
der Ordinance No. 416 of the mayor and dty
council of Baltimore, approved December 9.
1909. The former appeal is reported in 127
Md. 233, 96 AU. 458. There are 37 excep-
tions in the record — ^tbe last one presenting
the rulings of the lower court in rejecting
11 of the appellant's 13 prayers, and grant-
ing the city's third and seventh prayers and
overruling the special exception to the city's
seventh prayer, and the others containing ex-
ceptions to rulings on the evidence.
[1, 2] The first 20 exceptions relate to dam-
ages. Undoubtedly an Important element In
estimating damages for land taken under
condemnation proceedings may be its avail-
ability for or adaptability to certain pur-
poses. In this case, although the tract of
land owned by the appellants had not been
laid out into lots, but bad been held by them
and those under whom they dalm for many
years as an unimproved and undeveloped
tract of land, it was admissible to show that
it was available for city lots, and to point
out the special advantages for residential or
industrial puri>oses the particular parts of it
had. In the testimony of Mr. Atwood, a
witness for the appellants, who was shown
to be an experienced dvll engineer and sur-
veyor, and had been a commissioner for open-
ing streets for one term and city surveyor
for two terms, he was permitted to state ful-
ly hia views as to the effect of locating
Twenty-Fifth street according to the location
made in these proceedings. The appellants,
however, did not deem that suflSdent, but
sought to introduce two plats made by the
witness. The first, second, third, fourth,
fifth, sixth, eighth, ninth, tenth, twelfth,
thirteenth, and nineteenth exceptions relate
to those plats. The Belt Line of the Bal-
timore & Ohio Railroad Company runs
through the tract of the appellants, dividing
it into two parts of about equal areas, each
part containing in the neighborhood of 50
acres. It is only the part south of the rail-
road which is involved in this case. Mr.
Atwood testified that Twenty-Fifth street, as
proposed to be located, was 100 feet wide
and runs, roughly speaking, parallel with the
railroad and approximately from 100 to 120
feet from It His tbeory was that by thus
laying out the street, the depth between the
railroad and the north side of the street was
not sufficient "to utilize it for most busi-
nesses of any large character," and If that
side of the street was used for residences,
they would run back to the railroad, which
would be disadvantageous to them. He
spoke a good deal about, the Irregularly
shaped lots, and said that the proposed loca-
tion of the street had the effect of forcing
the irregularities to the south of the street,
instead of putting them along the railroad.
The lots were not actually laid out on the
ground, and the plats prepared by him were
simply of a plan he proposed as the best
method of developing the tract. While we
do not see any particular Injury tliat would
likely have been done by admitting the plats
In evidence. It is i>osslble that they might
have misled and confused the Jury, rather
than helped them. The Jurors were taken
upon the ground, and could see for them-'
selves the actual conditions there. Presum-
ably the location of the proposed street was
pointed out to them, as well as such other
locations as were relevant. Considerable dis-
cretion In such matters must be left to the
trial Judge, and If there be room for a dif-
ference of opinion as to whether the plats
offered by the appellants could have aided
the Jury, without the danger of misleading
them, the action of the lower court was at
least within the discretion that must be al-
lowed it; espedally was that so as to the
plat on the bladtboard referred to in the
third exception. The plat used in the con-
demnation proceedings and one used by the
appellants at the former trial were before
the Jury, and with a witness as InteUlgent
as Mr. Atwood on the stand, there ought to
have been no difficulty in his making hIa
views plain to the Jury with the use of the
plats which were before them, for all legiti-
mate purposes. There w«is therefore no re-
versible error in the rulings in any of those
exceptions, although some of the questions
possibly might have been admitted without
injury.
[3, 4] In the seventh exception Mr. Atwood
was asked to say whether be was able to
state whether or not this land "possesses
a special adaptability for use for the laying
out through the same of streets or roads or
rights of way for the purpose of constructing
or making or creating building lots or lots
for commerdal and industrial purposes, and,
if so, ttate to the jury what plan would be
the highett utilUj/ of tM» property for those
pvrposet." He was permitted to answer the
question except as to the last clause, which
we have italicized. The court was dearly
right in excluding that The question for the
Jury was not "what plan would be the high-
est utility of this property," but what dam-
ages the appellants were entitled to by rea-
son of taking the land, in the way proposed.
It may be that some other plan might pro-
duce better results to the appellants than the
one proposed, but, if that be so, that was one
of the questions the Jury could consider.
The city cannot be required to adopt the
plan which "would be the highest utility of
the property" for the purposes named, and
to permit different experts to answer such
a question, we might have as many opln-
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PATTERSON r. MATOK, ETa, OF CITY OF BALTIMORE
mi
as tbere were experts. They would .
soon get Into the realms of speculation. This
record well Illustrates how conflicting thej
views of experts are on such questions, and,
while their opinions, if kept within proper
bounds, are admissible and helpful, if not,
they are confusing and of no use In attain-
ing the ends of Justice. Mr. Atwood was per-
mitted to testify to the effect this location
of the street had on the property. The
eleventh exception more clearly illustrates
what we mean. In that Mr. Atwood was ask-
ed whether the opening of the streets, "of
the width and location proposed In these pro-
ceedings wonld accord with the best plan for
the development of the property — by best, I
mean the most advantageous to the owners
of said property rather than the city as a
whole." The city was not laying out a plan
for the development of the property. It
might well be that a street of less width and
differently located would cause less damage
to the owners than the one proposed, but
if such a rule be adopted as the question
suggested, a dty might be compelled to adopt
plans for the benefit of the owners of the
land being condemned, rather than those
for the public good. We do not understand
that to be the law of this state. Sometimes
It happens that a public improvement of this
kind is materially and injuriously affected
by the effort to please or benefit some par-
ticular person, but such action by public of-
ficials ^ould be condemned, and not sanc-
tioned by the courts. Of course owners are
generally entitled to more compensation for
taking 100 feet in width than they would be
if only 60 feet were taken, and If the location
Is specially injurious, that fact can be consid-
ered in fixing the damages. The seventh, elev-
enth, fifteenth, sixteenth, and eighteenth ques-
tions were properly held to be Inadmissible.
The fourteenth was harmless, as the witness
bad already said he "would not put any blind
street oat thei*."- We see no special objec-
tion to the seventeenth, unless it was al-
ready sufficiently answered in the previous
evidence. The twentieth did not require an
expert to answer. If the Jurors were men
of sufficient intelligence to sit on a Jury, they
could answer the question as well as the wit-
ness. So while there Is no doubt that the
appellants had 'the right to show the uses
for which tba ,pn^>erty was adaptable, we
cannot agree with them as to the methods
adopted for the purpose, and we find no such
error In any of the 20 exceptions already
referred to as would Justify us in reversing
the case.
It may be well to add here that in ad
ilitlon tp evidence being admitted on the sub-
ject, the lower court by the apiiellants' sec-
ond prayer expressly Instructed the Jury
that:
"In arriving at the market value of the land
to be taken, the jury must take into considera-
tion its availability for building lots and for in-
<lu8tri*l purposes, if they find it bad such avail-
ability, even though they also find that said
land is not at present used for such purposes,
and that, In fixing the dnmnj;es for Injury to the
remaininit; land of the petitioners, "they should
also consider whether the availability, if any, of
said remaining land for use as building lots or
for industrial purposes will be decreased at all,
and, if so, to what extent, by the condemning
and opening of Twenty-Fifth street of the width
and of the location proposed in these proceed-
ings."
[B] The most Important question In this
case is the measure of benefits to be assessed
against the appellants. The city's prayer
No. 3, which was granted, so directly pre-
sents the question as to suggest the advisa-
bility of considering that before considering
the other exceptions to the rulings on the
evidence. We will request the reporter to
publish that prayer in his report of the case.
The time fixed by that Instruction for the
consideration of the Jury, as to the benefits
was:
"After Twenty-Fifth street shall have been
opened, graded, paved and curbed ; it being
proper to take into account the fact that the
property owner will be burdened when the street
shall be paved, with the special paving tax of
15 cents for each front foot on each side of
said street for a period of 10 years as a mat-
ter of law, and that as a matter of fact, in order
to utilize his property, it will be necessary for
the property owner to pave the sidewalk and to
grade the property back to a usable depth in
connection with that street."
These proceedings were begrun under "An
ordinance to condemn and open Twenty-Fifth
street from the easternmost side of Green-
mount avenue (formerly York road) to the
nortbwesternmost side of the Harford turn-
pike road." The new. charter of Baltimore
city in section 6, art 4, Public Local Laws,
under the head of "General Powers," subhead
"Streets, Bridges and Highways," is sub-
divided in the revised edition of the charter
published In 1915 by the law department of
the city. Under subdivision "(A) Opening,
Extending, Widening, Straightening, or Clos-
ing up Streets," the city Is authorized "to
provide for laying out, opening, extending,
widening, straightening, or closing up, in
whole or in part, any street, square, lane or
alley within the bounds of the city, which
in Its opinion the public .welfare or conven-
ience may require." It then provides for
' damages and benefits, and authorizes the
dty "to provide for assessing or levying, ei-
ther generally on the whole assessable prop-
erty of said city, or specially on the property
of persons benefited, the whole or any part
of the damages and expenses which It shall
ascertain will be Incurred in locating, open-
ing, extending, widening, straightening, or
closing up the whole or any part of any
street, square, lane or alley in said city."
After providing for appeals to the Baltimore
city court from the decisions of the commis-
sioners .for opening streets, or other persons
appointed by ordinance to ascertain the dam-
age which will be caused or the benefit which
will accrue to the owners by locating, open-
ing, etc., any street, it contains this clause:
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592
101 ATLANTIC REPORTBB
(U4.
"To proTide for collecting and paying over the
amoant of compensation adjudged to each per-
son entitled • ♦ • before any street, square,
lane or alley, in whole or in part, ehall be so
opened," etc
It authorizes the dty to acquire the fee-
simple interest in any land for the purpose
of opening, eta, the street That part of
the section says nothing whatever about
grading, paving or curbing.
Later the section provides under the sub-
division "(B) Grade Line of Streets" for
grade lines, and under subdivision "(C) Grad-
ing, Paving, Curbing, etc., Streets" it spedflc-
ally gives authority "to provide by ordinance
for grading, shelling, graveling, paving and
curbing," or for regrading, etc., of a street,
lane or alley "now condemned, ceded, open-
ed as a public highway, or which may here-
after be condemned, ceded, opened, widened,
straightened, or altered," etc. Then under
subdivision (D) it authorizes the dty to pro-
vide by general ordinance, subject to section
85, for grading, graveling, shelling, paving,
or curbing or for regrading, etc., of any
street, lane, or alley, whenever the owners
of a majority of the front feet of property
binding such street, etc., shall apply for the
same, etc. There are thus made distinct
provisions for opening, etc., streets, from
those in reference to grading, paving, and
carbtng.
We have at some length referred to the
charter, as It seems to us its provisions set-
tle the question, independent of authority.
When this ordinance was passed (1900) this
section was the same as what we have stat-
ed above, and the revised edition of the char-
ter only makes the subdivisions and refers to
the original acts and dedsions of the courts
for convenience. It Is difficult to read those
provisions of the charter and reach a con-
clusion other than that the Legislature in-
tended the acquisition of the land for a
street before it was graded and paved. This
proceeding was begun under what is above
referred to as subdivision (A), and not under
subdivision (B). At the time the ordinance
was passed there was no provision in the
charter for an ordinance to include the open-
ing and grading of a street, but it was dear-
ly intended to require the dty to first con-
demn the land tor the opening (if It was not
dedicated or otherwise acquired), and then
afterwards provide for the grading, paving,
and curbing. It is true that Act 1012, c.
32, { 175, which relates to the duties of the
commissioners for openlpg streets, was
amended to read:
"Whenever the mayor and dty conndl shall
hereafter by ordinance direct the commissioners
for opening streets to lay out, open, extend,
widen, straighten, grade or dose up, in whole
or in part, any street," etc.
— but that act, which made a number of
changes, expressly provided that:
"Nothing herein contained shall be construed
to affect any right or liability of any party ac-
crued, or any proceeding begun or pending prior
to the twssage of this act, but all such rights
shall remain and such proceedings shall contin-
ue, in the same manner, and to be of the same ef-
fect, as if the provisions hereinabove mentioned
had remained as they were prior to the passage
of tbU act"
Then it .was expressly limited to a case
when the mayor and dty council "shall here-
after by ordinance direct," etc. But regard-
less of that it is clear that the Legislature
Itself made a distinction between opening and
grading, paving or curbing, and therefore it
is difficult to see how an ordinance for open-
ing a street can be construed to include the
grading, paving or curUng. Indeed, until the
dty acquires title to the land to be used for
the street, a number of practical difficulties
suggest themselves. Just how. In assessing
benefits in a case lltce this, the cost of paving
a street can be accurately ascertained has not
been made clear. As we have seen from the
charter, there are a number of materials
which can be used, either of which will be a
compliance with the statute, and the kind of
material used is a very important matter, as
the cost must depend upon that It may be
a long time before the street Is paved, and
prices necessarily vary. If, for example, the
price is estimated now, and the street is not
paved for a year or more, who can say that
the price may not be greatly reduced by that
time? In that instance the property owner
would sustain the loss, but, on the other hand.
If the paving had been estimated several
years ago, the probabilities are that by this
time the cost of the material has greatly In-
creased. Judge Miller said in Dashldl v.
BalUmore, 45 Md. 615, 626 :
"A street may be and often is opened and
condemned for many years, before any steps
are taken to pave it
In our Judgmmt the ordinance under wbidi
these proceedings .were instituted, and the
statutes then in force, must control, and the
ordinance did not indude grading, paving,
and curbing.
Our examination of the authorities
strengthens the views we liaTe on the sub-
ject It was said in Seed ▼. City of Toledo,
18 Ohio, 161:
"By the term 'opening* we do not understand
the improvement of a street or highway by grad-
ing, culverting, etc.; the term is generally (we
thmk always) clearly distinguishable from such
kind of improvement The term 'opening* re-
fers to the throwing opatto the public what
before was appropriated to individual use, ana
the removing of such obstructions as exist m
the surface of the earth, rather than any artifi-
cial improvement of the surface. And we think
in the charter this distinction is very clearly
drawn."
Or, as said in S Dillon on Mtinc. Cor. (5th
Ed.) { 1042:
"So authority to open a ttreet and antt* <ke
damages on the property benefited does not give
the power to assess for anything more than
opening the street and paying for the right of
way; it does not include the power to assess
other property for the improvement of the street
by grading, culverting, and the like."
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PATTERSON ▼. MAYOR, ETC., OF CITT OF BALTIMORE
593
In Mnnldpal Corporations in Maryland, by
the present Attorney General (section 12) It
la said:
"The two systems for opening and condemn-
ing streets and for grading and paving them are
essentially different from each other. They are
provided for b^ different lavs and ordinances,
executed by different ofScers and governed by
different rules and regalations."
He referred to Baltimore v. Porter, 18 Md.
284, 79 Am. Dec. 686 ; Dasblell y. Baltimore,
46 Md. 616. and Baltimore ▼. Hook, 62 Md.
371. "While It Is tme the conditions in those
cases differed from those in this case, the
principles are, for the most part, the same.
In Douglass v. Biggin, 123 Md. 18, oa page
22, 90 AtL 1000, on page 1002, ft was said :
"It constituted an opening of the street for
the use of the lots according to the evident sense
in which the term 'open' was used in the reser-
vation under the agreement of ^sale. It was
f)lainly employed in this connection as equiva-
ent to the 'laying ouf of the proposed street,
and tills has been defined to mean 'the adoption
of outlines or locations, and not the work of
construction or improvement.' Oberheim v.
Recside, 116 Md. 273 [81 Aa 690]; 6 Words
and Phrases, 4037."
See, also, Banman y. Ross, 167 U. S. 648,
686, 17 Sup. Ct. 966, 42 L. Ed. 270; Hutt y.
Chicago, 132 lU. 352, 23 N. E. 1010. In Bal-
timore v. Smith, 80 Md. 458, 31 AtL 423,
which case only Involved benefits, and at that
time the <iaestlon of damages for opening a
street was not open for review on appeal
from benefits alone, the Jury was Instructed
that the only matter for their Inquiry was
the amount of increase in the actual market
value of the lots fronting on the street opened
which would be caused by the acquisition,
through those proceedings by the dty, of ti-
tle to the land in the bed of the street to be
used as a public street, and the verdict should
be limited to such increase. The sixth pray-
er granted in Baltimore v. Megary, 122 Md.
20, 89 Atl. 331, was to the same effect
Tltere would seem to be no doubt that the
dty would still have the power to assess the
property owners with the whole cost of grad-
ing, paving, and curbing in a proceeding tak-
en for paving, etc., after the property is con-
demned. Section 6 of the charter so au-
thorizes. If the dty has no authority to now
assess for those purposes, but did so In this
case, we are not prepared to say, as it con-
tends, that it would be estopped from doing
so again. There may be circumstances under
which it would be est(9ped from collecting
the same assessment twice, but in a case
such as this, where the property owners can
undoubtedly be assessed for some benefits, if
the measure of benefits established be er-
roneous. It would, to say the least, be diffi-
cult for them to be protected. But Inde-
pendent of that, if, as we think, the benefits
can naw pr<^rly Indude those to accrue
from the street after it is "opened, graded,
paved, and curbed," the appellee has no right
to assess the appellants with them In this
proceeding and, besides, the appellants have
101A.-38
the right to a correct interpretation of the
law.
[6] It was conceded by the appellee that
it was formerly the established rule not to
take into consideration the cost of grading,
paving, eta, in a proceeding of this kind, for
opening, but the learned solldtor contends
that the contrary rule has, for some years,
been in force. We find no change in the law
to authorize it, which is applicable to this
casa We have already indicated that the
Acts of 1912 and 1914 do not apply. The pro-
vision quoted above from the act of 1912 can
leave no doubt as to that act, and we find
nothing' in the act of 1914 Indicating an in-
tention on the part of the Legislature to re-
peal or change that provision. The case of
Cahlll y. Baltimore, 129 Md. 17, 98 Atl. 235,
was relied on in support of the city's conten-
tion, but, without discussing the question as
to burden of proof, which is all of that case
which can be claimed to be applicable, it is
suffident to say that that proceeding was not
instituted until after the act of 1912 was
passed, and hence was not included in the
saving clause of that act as this one was.
As seen by reference to the first appeal, Balti-
more V. Cahlll, 126 Md. 596, 95 AU. 473, the
ordinance was not passed until April, 1913.
[7, J] We do not understand the relevancy
of evidence tending to show that the dty had
not, for some years, been exercising its pow-
ers of assessing the cost of grading and pav-
ing on the abutting owners. If a municipali-
ty has the power to grade and pave under ei-
ther of several methods, and it for some
years adopts one of them, it does not follow
that the other cannot be exercised, unless the
charter is amended or the law prohibits it
Administrations change, and frequently with
such changes entirely new ideas are intro-
duced. Or new conditions may require or
suggest changes. But this case shows the
dangers of such evidence, as the appellants
contend that ordinances of the dty show that
the witness was mistaken. At any rate, the
evidence ought not to have been admitted. It
Is proper to add that ,we think the jury would
be entitled to know, in cases where the cost
of grading and paving is involved, the width
of the driveway and sidewalks to be adopted,
if the benefits are attempted to be shown in
advance of the paving and curbing. How can
a Jury teU whether in the particular case the
driveway is to be 40, 60, 66 or other number
of feet when the street condemned Is 100 feet
wide and it is left to the dty authorities to
determine the vrldth. Such evidence as that
in the thirty-first, thirty-second, and thirty-
third exceptions was therefore inadmissible
even under the appellee's theory of the case
as to the measure of benefits. Without fur-
ther pursuing this question, we are of the
opinion that under these proceedings the city
was limited to benefits as the result of the
opening of the street, and such benefits as
grading, paving, and curbing cannot be con-
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101 ATLANTIC RBPORTEE
(Md.
sldered. There was therefore error la grant-
ing the city's third and seventh prayers.
The petitioner's first was properly rejected,
as It was entirely too broad. Attorneys can,
and frequently do, explain to juries what the
law is If not in conflict with the granted In-
structions, or no Instructions are given by the
court on the particular subject Their sec-
ond was granted. The third was properly re-
jected for reasons stated above In passing on
the exceptions to evidence. The fourth was
properly rejected. The fifth and sixth ought
to have been granted. The seventh was not
necessary. The eighth and ninth were calcu-
lated to mislead. The tenth could not have
been granted under the theory which prevall-
«d in the lower court, as It would have been
In conflict with the prayers granted, but If at
the new trial evidence xs Introduced in refer-
«nce to the grading, etc., as authorized in
Baltimore t. Smith, 80 Md. on page 471, 31
Atl. 423, an instruction as to Its effect will be
proper. The eleventh was granted. The
twelfth and thirteenth are Immaterial In view
of what we have said.
In the above discussion we thlnlc we have
sufficiently referred to the questions Involved
In the exceptions to evidence not already
passed on to relieve us of discussing them
further.
Rulings reversed, and new trial awarded,
the appellee to pay the costs.
^xn Md. M)
BONAPARTE ▼. MAYOR & CITY COUNCIIj
OF BALTIMORE et al. (No. 25.)
<Conrt of Appeals of Maryland. June 27, 1917.)
1. EMINENT Domain iS=>134 — Compensatiok
— Value of Propebtt.
The measure of compensation for property
-taken for a public use is the actual market
value of the property, depending upon the uses
for which it is available and any special utility
tending to enhance its value in the market.
2. Eminent Domain «=>134— Compensation
—Value of Propebtt.
In assessing compensation for property tak-
•en for a public use, the availability of the prop-
erty for a particular use contributing to its
market value is not to be ignored merely because
■the property has not, in fact, been applied to
that use.
3. Eminent Domain «=9l31— Oompknbation—
Value of Propebtt.
In assessinR compensation for property tak-
en for a public use, the effect of toe public
project for which the property is acquired on
the value of property must be disregarded.
-4. Eminent Domain ^=3184— Compensation— •
Value of Propebtt.
Where property taken by a city in connec-
•tion with the widening of a street had been so
altered as to be adapted to use as an apartment
house, though not actually devoted to that pur-
pose, and the availability for such use added to
its rental and market value, and this was the
most profitable use to which it was adapted, the
property ownei- was entitled to Its value for
such use.
6. Eminent Domain €=3222<4) —Assessment
of Compensation— Instbuctions.
In a proceeding to assess the compensation
for property taken in connection with the wid-
ening of a street, an instruction that the jury
were to consider the value of the property as
though no such opening were to take place and
the surroundings immediately preceding such
opening were to continue indefinitely did not ex-
clude a use to which the property was adapted
from the consideration of the jury, though the
property had not been devoted to such use, but
merely emphasized the rule that the jury must
not regard any change of value resulting from
the street improvement.
6. Eminent Domain <s=3262(5) — Assessment
of Compensation— Appeal— Habmless Eb-
BOB.
In a proceeding to assess compensation for
property taken for a public use, an exception to
the exclusion of evidence was rendered imma-
terial by the subsequent admission of the same
proof.
7. Evidence ^»142(1)— Value of Pbopkbtt—
Selling Peice of Otiieb Pbopbrtt.
In a proceeding to assess the compensation
for property taken in connection with the widen-
ing of a street, though the prices realized from
voluntary sales of similar land in the vicinity
might be proved, evidence as to the price paid
by the city for neighboring property bought for
the purposes of the street improvement was not
admissible, as such a sale is not voluntary, but
is in the nature of a compromise.
8. JdBY «=>34(2) — JUBT TbIAL — DXNIAL OB
Infbinoement of Rioht.
Baltimore City Charter, S 175c, as added by
Acts 1014, c. 125, providmg that, on apped
from the action of the commissioners for open-
ing streets in awarding damages or assessing
benefits in the matter of opening or widening
any public highway, the return of the commis-
sioners shall be prima facie evidence of the cor-
rectness of the damages awarded and the bur-
den of proof shall be on the party attacking
such award, does not prejudice a property own-
er's right to a jury trial given him by Const,
art. 3, I 40, requiring the payment of just com-
pensation to be agreed upon by the parties or
awarded by a jury, especially in view of sec-
tion 179 of the charter (Code Pub. Loc. Laws,
art. 4, as amended by Acts 1912, c. 32), specific-
ally securing the right to a jury trial.
Appeal from Baltimore City Court; Chas.
W. Heuislef, Judge.
"To be offldally reported."
Proceedings by the City ot Baltimore and
otliers to acquire land of Charles J. Bona-
parte for the widening of a street From an
inadequate award the property owner ap-
peals. Reversed and remanded.
Argued before BOYD, C. J., and BRISCOE,
BURKE, THOMAS, PATTISON, UBNIOK,
STOOKBRIDGB, and CONSTABLE, JJ.
Paul M. Burnett and Clharles J. Bonaparte,
both of Baltimore, for appellant George
Arnold Frick, of Baltimore (S. S. Field, of
Baltimore, on the brief), for appellees.
URNER, J. The property of the appellant,
known as No. 407 St Paul street In the dty
of Baltimore, is required by the city for the
widening of the street in pursuance of ordi-
nances providing for that Improvement In
the proceeding for the condemnation of tht«
property, which consists of a lot of ground.
AsaFor otb'w cam au Mmt topic and KBY-NOUBGR IB all KeT.-Ktai)i«r»d,Dismt» and Isdexw
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Md.)
BONAPARTE t. MAYOR, ETC., OF BALTIMORE
595
owned by tbe appellant In fee simple and Im-
proved with a building used for residence
parposes, the commissioners for opening
streets awarded to the owner, as fall com-
pensation for the property taken, the snm of
$5,335.85. On appeal by the owner to the
Baltimore city court, the award was increased
to $6,700 by the verdict of a jury. Believing
this revised valuation to be still inadequate,
the owner has brought the case to this court
for the review of certain rulings to which
he excepted on the theory that they bad the
effect of unduly restricting the award.
It was proved that the appellant has ex-
pended in the purchase and permanent im-
provement of the property at least the snm
of $11,000. TUbe building has been rented as
a whole to successive tenants. Extensive al-
terations and additions made by the appellant
have adapted tbe building to use as an apart-
ment house, though It has not actually been
devoted to that purpose. The real estate ex-
perts who testlfled in the case based their val-
uations partly upon the capitalization of the
rent currently received from tbe property.
The estimates of tbe city's experts varied
from $5,980 to $6,076, while the experts pro-
duced by the appellant valued the property at
amounts rangins from $7,500 to $8,600. One
of the latter testlfled that the buUdlng was
well adapted to apartment house uses, nnd
that. If thus employed, it would yield rentals
indicating a property value of $9,200. In
view of this testimony the appellant, by his
second prayer, requested an instruction to the
Jury that:
"In estimoting the valne of the property and
the amonut to be awarded to the appellant as its
owner, they must consider all the uses to which
the said property could have been applied had
no such public improvement as that for which
it is taken been determined upon by the mayor
and city council, and must award the appellant
what they believe would have been its value un-
der the circumstances mentioned, if employed
for the most profitable use for which they may
find it could have been applied, whether it has
in fact been applied to such use or not."
This prayer was refused.
[1-J] The measure of the compensation to
which tbe appellant Is entitled in this pro-
ceeding is the actual market value of the
property condemned. Its market value de-
pends upon the uses for which it is available,
and any special utility which may tend to en-
hance Its value in tbe market is a proper ele-
ment to be considered. Tbe availability of
tbe property for a particular use, contribut-
ing to its market value, is not to be ignored
merely because it has not in fact been ap-
plied to that use. Tbe valuation for con-
demnation purposes must disregard the elTect
of the public project, for which the property
is acquired, but must take into consideration
all tbe uses to which it is capable of being
applied at tbe time of the appropriation and
which affect its marketability. Consolidated
G., E. L. & P. Ck). V. Baltimore, 130 Md. 20,
99 Atl. 968; Baltimore v. CarroU, 128 Md.
73, 96 AU. 1076; Brack v. Baltimore, 125 Md.
378, 93 Atl. 994, Ann. Cas. 1916E, 880; Id.,
128 Md. 437, 97 AtL 548; Baltimore v. Gar-
rett, 120 Md. 613, 87 AU. 1057; Callaway v.
Hubner, 99 Md. 529, 58 Atl. 362 ; Baltimore
V. Smith, 80 Md. 458, 31 AU. 423 ; Patterson
V. Baltimore, 101 Atl. 589.
[4] Applying the principles Just stated to
the present case, we think tbe prayer we
have quoted should have been granted. There
is uncontradicted evidence that tbe appel-
lant's building, as now c<Migtructed, is special-
ly adapted for use as an apartment house,
and that lbs availability for such use adds
to the present rental and market value of
the property. This element of value arises
from the existing plan and structure of the
building. It is not contingent upon any ma-
terial change of conditions with resi)ect to
the land or the Improvements. It is based up-
on a- practical nnd presMit utility which, as
the evidence tends to show, directly and im-
mediately affects the value of the property in
the open market. The fact that the building
has been devoted to a less profitable use than
the one for which it is shown to be specially
designed does not preclude the owner from be-
ing paid for his property upon the basis of
its actual market value for the most profit-
able use to which it is now adapted. This '
was the theory of the proposed instruction,
and we think the appellant was entitled to
have it distinctly stated to tbe Jury. It was
not so presented by any at the granted
prayers.
[i] There were eight prayers offered on be-
half of the appellant, ttiree of which were
refused. Including tbe one to which we have
referred. We find no error in the rulings on
the other rejected prayers. Tbe instructions
proposed by the city were properly granted.
The first was the only one subjected to criti-
cism as to Its form. It instructed the Jury
that the market value of the property con-
demned should be estimated as of the time
of this proceeding, and without reference to
any change in the value of the property which
may have been occasioned by the fact that St
Paul street is to be widened and opened, and
that—
"in other words, the jury are to consider its val-
ue as though no such opening were to take place,
and the surroundings immediately preceding
such opening were to continue indefinitely."
The latter part of the prayer, wMch we
have quoted, is objected to on the theory that
the word "surroundings," as therein employed,
had reference to the existing utilization of
the building, and that tbe prayer had the ef-
fect of instructing the Jury that no other use
of which It was susceptible could enter into
their appraisement. This is not our under-
standing of the purpose and meaning of the
prayer. Its object was to emphasize the
rule that the Jury were not to regard any
change of value resulting from tne street im-
provement for which the property is being
condemned, but that they were to estimate
the value as though the street were not to be
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101 ATLANTIC BEPORTEE
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widened and its pre-existing situation in
lefereuce to tte property were to continue.
As thus understood, the prayer Is not ob-
jectionable.
[8, 7] Two exceptions were reserved to tlio
exclusion of evidence offered by the appel-
lant One was rendered immaterial by the
admission of the same proof at a later stage
of the case. The other exception was taken
to the refusal of the court to allow the
appellant to prove the price at which a
neighboring property bad t)een bought by the
dty for the purposes of the street improve-
ment for which the appellant's property is
being acquired. This proffer was made as
part of the cross-examination of a witness
for the dty who had testified to a former
sale of the other property mentioned as re-
flecting upon the value of the property in-
volved In this proceeding. Objection was
made to the proposed inquiry on the ground
that the sale to whldi it referred was not
voluntary, but was made with a view to ob-
viating the impending condemnation, and
was therefore not a reliable Indication of
the real value of the property. It is a set-
tled rule that In an investigation as to the
market value of land, the prices realized
from voluntary sales of similar land in the
vicinity may be proven either on direct or
cross examination of witnesses conversant
with the facts. Patterson v. Baltimore, 127
Md. 241, 86 AU. 4S8; Baltimore v. Smith,
80 Md. 473, 31 AU. 423. The sale to which
the exception refers was evidently not a
voluntary sale within the meaning of the
rule Just stated. The reasons for the exclu-
sion of such a sale, as evidence of value, are
well stated in a discussion of the question
in Lewis on Eminent Domain (2d Ed.) i 447,
as follows:
"What the party condemning has paid for oth-
er property is incompetent. Such sales are not
a fair criterion of value, for the reason that
they are in the nature of a compromise. They
are affected by an element which does not enter
into similar transactions made in the ordinary
course of business. The one party may force a
sale at such a price as may be fixed by the
tribunal appointed by law. In most cases the
same party must have the particular property,
even if it costs more than its true value. The
fear of one party or the other to take the risk
of legal proceedings ordinarily results in the
one party paying more or the other taking leas
than is considered to be the fair market value of
the property."
The view that such sales are not competent
evidence of value is well supported by ad-
judications. Cobb V. Boston, 112 Mass. 181;
providence, etc., R. Co. v. Worcester, 155
Mass. 40, 29 N. E. 56 ; Peoria Gas Light Co.
V. Peoria Term. Ry. Co., 146 111. 372, 34 N.
E. 550, 21 L. R. A. .373 ; Chicago & Alton R.
R. Co. V. Scott, 225 111. 352, 80 N. E. 404;
Howard v. Providence, 6 R. I. 516.
[8] The city's third prayer refers to the
provtelon of section 175C of the city charter,
as enacted by chapter 125 of the Acts of
1914, to the effect that tiie return of the
commissioners for opening streets is prima
fade evidence in the case of the correctness
of the amoimt of damages awarded, and the
burden of proof is on the party asserting
that the amount should be less or more than
that reported by the commissioners. It is
suggested that this provision Is In violation
of section 40, art 3, of the Constitution of
the state, which requires the payment of
"just compensation" in such cases "to be
agreed upon by the parties, or awarded by
a jury." The appellant's right to a jury
trial, upon the question as to the compensa-
tion to be awarded him for the property
condemned, is spedflcally secured by section
179 of the dty charter (Code Pub. Loc. Laws,
art 4, as amended by Acts 1912, c. 32), and in
our judgment that right is not prejudiced by
the section first dted. The purpose of sec-
tion 175C is simply to attach tlie presumption
of correctness to the report of the commis-
sioners, as against an appeal by either the
city or the property owner. This regulation
is entirely consistent with the right afforded
the owner to prove, and with the duty im-
posed upon the jury to determine, the true
amount of the just compensation to be
awarded.
The rulings are all approved except as to
the refusal of the appellant's second prayer.
Ruling reversed, with costs, and case re-
manded fbr a new trial.
''™°°"°° (tn Md. IT)
BAE(R V. KAHN et aL (Xo. 24.)
(Court of Appeals of Maryland. June 27, 1917.)
1. TBUSTS «=>177— ASStTMPnON OF JUBIBDIO-
TION BT COtJBT— POWEBS Ot TbUSTEE.
Whatever the powers of a trustee may be,
under the wUL after the court has assumed ju-
risdiction of the trust, the trustee's powers are
so far changed that the sanction of the court
must h« secured for all acts.
2. Trusts <^=3l77— Assuhfxioii or Jubudio-
TION BT COUBT.
Where the court not only assumed jurisdic-
tion of the trust but directed the trustee to re-
port annually the securities in whidi the trust
estate was invested for approval, the discretion-
ary power given the trustee to invest in such se-
curities as he saw fit was abrogated.
3. Tbtjstb C=>177— Discbetionabt Powbes—
iNTEBrERENCE BT COUBT.
Where the discretionary power conferred up-
on a trustee is honestly and reasonably exercised,
a court of equity has no right to interfere.
4. Tbusts <S=177— Abuse of Discbktion by
Tbustee— Evidence— SuFFiciEwcT.
The alleged refusal of a trustee to disdoee
to the beneficiary the securities in which the es-
tate was invested failed to disclose such want of
good faith, or arbitrary exercise of discretionary
powers (dven trustee under the will, as would
justify the court in assuming supervisory juris-
diction, where the record disclosed that the es-
tate was invested in securities which received
the approval of the court
5. Trl'sts i&=3217(l)— Giving Infobsjatioh to
Beneficiaby— Duty of Trubtee.
The request of the beneficiary that be l>e in-
formed of the security in whidi the estate was
«=9For other case* se« same topis and KBT-KUM BBR la all K«r-Numb«r«d DlgMti and Indexes
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BAER ▼. KAHN
597
invested was reasonable, and the Information
should have been given, if at no other time, when
the trustee accounted for and paid over to the
beneficiary the interest, profits, and income from
the trust estate.
6. Tbustb «=»177— Abuse or Disokstion bt
TBUBTBE— EJVIDENCB— SumCIENOY.
If information as to securities in which the
estate is invested be necessary to ascertain
whether the trustee is executing the trust prop-
erly, a court of equity should, upon application,
order the information to be given ; but until this
is done, and it is found that the trustee is not
administering the trust in good faith, or is abus-
ing the discretionary power granted him under
the will, the court should not, against his wishes,
assume supervisory juriadieUon of the trustee's
discretionary powers.
Appeal from Circuit Gonrt Na 2 of Balti-
more City; Henry DulTy, Judge.
Bill by Lena Kalm and another against
Lewis Baer, trustee. Prom an order of the
court, assuming Jurisdiction of the trust es-
tate, and from an order directing the trustee
to pay scdidtor's fees, the trustee appealR.
Orders reversed, and bill dismissed, with
costs to appellant.
Argued before BOYD, G. J., and BRISCOE,
BUBKE, THOMAS, PATTISON, URNSSl,
8TOCKBRIDGE, and CONSTABLE, JJ.
Chester P. Morrow and Alfred S. Nlles,
both of Baltimore (Carlyle Barton, of Balti-
more, on the brief), for appellant Allan H.
Plsher, of Baltimore (Samuel J. Fisher and
Fisher & Fisher, all of Baltimore, on the
brief), for appellees.
PATTISON, J. The appeal in this case
Is from two orders of the circuit court No.
2 of Baltimore City. By the first of these
orders the court assumed Jiurlsdlctlon of the
trust estate of Lena Kahu. The second di-
rected the trustee to pay to her solicitor for
bis services the sum of $100, $75 of it to be
paid out of the corpus of the estate, and $25
out of the Income. The facts alleged In the
bin filed by the appellees are substantially
as follows:
Lewis, Moses, and Solomon Baer for a
number of years succesafully conducted the
hide, fur, and wool business in the city of
Baltimore under the firm name of Lewis
Baer & Co. In 1905 the firm purchased about
$9,000 of the capital stock of B. Eahn & Bros.
Company, a corporation of whlc^ Benjamin
Kahn, husband of Lena Kahn, was manager.
This corporation was not prosperous, and as
a result of said investment Lewis Baer &
Co. lost about $3,000. This loss, it is aUeged,
produced an unfriendly feeling on the part
of Lewis Baer for both his sister and her
husband, Benjamin Kahn, in consequence of
which, he wrongfully contended that the said
$9,000, although In the nature of an Invest-
ment, was in fact a loan to his sister and
her husband, and he unreasonably demanded
and received from them their note for the pay-
ment of said sum of $3,000, the amount so lost
by the firm. Solomon Baer died in 1913. In
his will be bequeathed certain sums of mon-
ey In trust to Lewis and Rebecca Baer, for
the benefit of Lena Kahn and her minor chil-
dren. A petition was filed by those named
as trustees, asking to be relieved of the ad-
ministration of the trust; but thereafter
Lewis Baer consented to serve, and Samuel
J. Fisher, the appellees' solicitor In this case,
was appointed to serve with him as cotrustee.
Lewis Baer afterward withdrew as trustee,
and Fisher thereafter acted as sole trustee.
In March, 1915, Moses Baer died, and by his
wUl, dated May 27, 1914, he bequeathed $2,-
000 to Arthur Kahn, $2,000 to Lewis Kahn,
and $8,000 to Bosanna Kahn, children of
Lena Kahn, and $24,000 to Lewis Baer, in
trust for Lena Kahn. The provision creating
said trust Is found in the fourth item of his
will, which is as follows:
"I give and bequeath unto my brother, Lewis
Baer, the sum of twenty-four thousand dollars
($24,000.00) in trust and confidence, to hold the
same, make tuch inoetiment* or reinvestmenU
thereof at he, in hit ditcretion, may tee fit, de-
frajr all necessary expenses thereon, and pay the
net income arising therefrom, quarterly, unto my
sister, Lena Kahn, for and during the term ol
her natural life. • • • Upon the death of my
said sister, Lena Kahn, this trust shall cease,
and said property and estate held in trust at the
time of her death under this paragraph of my
last will and testament, shall then vest absolute-
ly, free and dear of all trusts, in ber children
then living, and the then living descendants of
any deceased child of my said sister, Lena Kahn,
per stirpes but not per capita share and share
alike, absolutely."
In the further disposition of hla property,
one-third of his estate was devised to bis
wife, Mamye Baer, and after making smaller
bequests to another sister and several nieces
and a n^hew he gave the residue of his es-
tate to his brother Lewis, absolutely. In the
seventh clause of his will Is found the follow-
ing provisions:
"I empower my said trustee * * * to in-
vest all moneyt or fundi held In trust under this,
my last will and testament, in tuch lecurities at
he * * * may tee fit, and to change the in-
vettment thereof, when, at often and in tuok
manner at my taid truttee • * • may deem
advitable. I also authorize and empower my
said trustee • * ♦ at any time, during the
existence of the tmst set forth in this, my last
will and testament, to sell, assign and convey
any of the trust property, original or substituted
held under this, my last will and testament, for
the purpose of investment, reinvestment, distri-
bution, division, or any other purpose whatso-
ever, and to execute, acknowl^ge and deliver
any deeds or instruments of writing that may be
necessary to carry these powers into effect, and
no one dealing with my said trustee or any suc-
cessor, appointed by a court of competent juris-
diction, shall be required to see to the applica-
tion of any purchase money."
Several days after the death of Moses
Baer hla will was read, and immediately
thereafter, as the bill alleges, Lewis Baer
"burst Into tears," and told his sister Lena
Kahn "that the sudden death of his two
brothers within so short a time necessitated
^saTixe otbcr mms Me aun« topic and KBY-NUllBBR la aU Key-Numherad Otsasts sad Indaxw
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101 ATIANTIO REPORTER
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the withdrawal of an unusually large amount
of cash from the firm of Lewis- Baer & Co.,
which be feared would cause financial dis-
aster to him," and "that if he had the amount
which he had lost In the B. Kahn Bros. Com-
pany that it would to some extent help him
out of bis difficulty." It was then that Lewis
Baer informed his sister that, in addition to
the bequest made to her In his will, Moses
Baer had a policy of insurance on his life for
the sum of $5,000, which upon his' death was
payable to her and her daughter, Rosanna,
in eqoal shares, "and begged her to assign
that to him in part payment of the alleged
indebtedness." She finally agreed, over the
protest of her husband, to pay $1,500 out of
the proceeds of the policy upon the note pro-
Tionsly given by her and her husband. It
was then charged that, notwithstanding the
alleged need of money to save the firm from
financial difficulties, Lewis Baer shortly
thereafter purcliased an automobile for tUs
own pleasure, for which he paid about $1,400.
The further charge was made against Lewis
Baer that, in order to increase the residue of
the estate that was devised to him, he de-
layed stating his final account as executor,
which resulted in financial loss and injury to
Lena Kahn. The bill then alleges that on
April 18, 1916, she requested her attorney,
Mr. Fisher, to write Judge Niles', attorney
for tlie defendant, for information regarding
the manner in which the corpus of her trust
estate would be Invested, suggesting that as
much as possible of It be Invested in ground
rents, yielding a net income of from 5 to 3
per cent., and that the estate be administered
under the supervision, direction, and control
of a court of equity. Mr. Fisher wrote Judge
Nlles, as requested, and received in response
thereto two letters. In the first Judge Niles
stated "that his letter had been referred tn
Mr. Baer"; and in the second "that he did
not represent Mr. Baer in the matter of the
trust estate of Lena Kahn, and suggested
that Mr. Fisher write Mr. Baer direct," which
he did. "Several days thereafter, Mr. Baer
called to see Mr. Fisher, and Informed him
that he bad procured a safe deposit box ex-
clusively for the wcurlties of this trust es-
tate; but he refused to divulge the securities
in which the corpus of the estate had been
invested, and declined to ask one of the
equity courts of the city to assume Jurisdic-
tion of the trust." On July 5, 1916, Mrs.
Kahn received from Lewis Baer, as trustee,
his check for the amount then due and owing
to her as income from the trust estate, and
accompanying said check was a statement
showing how a part of said funds was at that
time invested. Thereafter, on the same day,
Mr. Fisher, at the request of his client, again
wrote the trustee, Mr. Baer, asking how the
remainder of the trust fund had been In-
vested, and asking him to petition to a court
of equity to as&ume jurisdiction of said trust.
to which letter no answer was received, eitlier
by her or her attorney. The bill concludes
with a prayer, asldng the court to assume
Jurisdiction of the trust, and that the trustee
be directed to administer said trust ander
the supervision, direction, and control of the
equity court
Lewis Baer admitted many of the allega-
tions of the bill, but denied that be had lost
Ills affection for his sister or that be had ever
treated her with rudeness or Incivility, or
bad by undue pressure induced her to sign the
note alluded to, or to make pajrments there-
on, or that he had ever refused to give her
or her counsel any information "that she was
entitled to receive," or that he had ever made
untruthful statements to her or to her oonn-
sel, or that in his actions as trustee he had
shown or that he would show any spirit of
vlndlctlveness. The answer then avers that
he is not impressed with the safety or desira-
bility of such ground rents as can now be had
which win yield 5 or 6 per cent, net upon the
money invested. He then, in his answer,
gives a full statement showing how and in
what securltes the entire trust estate was at
such time Invested. Ttte answer fnrthM
avers his unwillingness to retire voluntarily
from said trusteeship, as it was his brother's
will that he should serve as trustee, and that
in his opinion the provisions found in the will
of bis brother were made for the express pur-
pose of confiding the management of the
estate and the investment of the fands
solely to his Judgment, and, l)ecause of
the wishes of his brother, expressed not only
In the will, but to him personally, and because
of the expense that would necessarily be in-
volved If the estate was administered under
the supervhslon of the court, he "does not feel
Justified in giving his assent to the adminis-
tration of the trust under the direction of
this court."
To the answer a general replication was
filed, and thereafter an order of the court
was passed, at the Instance of the plaintlfl^.
granting leave to take testimony orally in
open court. Upon the call of the case, on the
day set for hearing, counsel for the plaintUF
read the bill filed ; counsel for the defendant
thereupon read the answer, and, tiavlng fin-
ished reading the answer, said to the court
that it might serve to explain the case and
somewhat clarify the issues if he made a brief
statement His statement, as requested, was
then made, and it with what followed at
such time, was, at the request of the counsel
In the case, certified to by the court Tbia
certificate, as found in the record, la as fol-
lows:
"Counsel for the defendant thereupon stated
thnt many of the statements contained in the
bill of complaint were, in his opinion, irrdevant
but that it was true that the three brothers
named in said bill, vis., Lewis Baer, Moses Baer,
and Solomon Baer, had engaged in busintss
together; that Solomon Baer died about the
year 1913, leaving I^wis Baer, one of his tros-
tees ; and that Lewis Baer afterwards resigneu
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BASS ▼. KAHI7
699
(rom said trust. The counsel farther stated
that the defendant expected to prove that Mr.
Moses Baer, at the time when Mr. L«wig Baer
resigned the trusteeship as aforesaid, said to
Lewis Baer that he hoped that Lewis would not
resign from the trust which would be imposed
upon him by the will of said Moses. The coun-
sel further stated that he expected to prove that
Moses Beer had told Lewis Baer that he did not
wish his estate to be administered in court,
but desired that the expense of a court adminis-
tration should be saved." After the counsel for
the defendant had made these statements, the
court stated that "he was not impressed by any-
thing contained in them as being sufficient to
prevent the court from assuming jurisdiction."
The securities belonging to the said trust estate
as set out in the answer were shown to the
court, and "certain authorities were then read
to the court, after which the court (wliile ap-
proving of the investments made by the trustee)
stated that be would sign an order assuming
jurisdiction of the trust. The court further
stated that all trustees, where it can be reason-
ably done, should be required to administer their
trusts under the jurisdiction of the court, and
to report under the thirty-first eguity rule. No
evidence was taken."
Thereafter, on Fehmary 2, 1017, the conrt
passed an order assnmini; jurisdiction of the
trust estate, and requiring the trustee to re-
port to It, in accordnnco with its thlrty-flrst
equity rule; and on the 5th day of the same
month the court passed Its second order, or-
derlni? and directing Lewis Baer to pay to
Mr. Fisher, counsel for the appellees, the sum
of $100 for his services, and that $76 of said
fee shonid be paid out of the corpus of said
estate and $23 out of the Income. It was
from the action of the court in granting these
orders that this appeal Is taken.
[1] We will first consider the action of the
court in passing the order of February 2d.
Under it the court assumed Jurisdiction of
the trust, and required the trustee to report
to it under its thirty-first rule. In Abell y.
AbeU, 75 Md. 64^ 23 Afl. 74, this court, in
speaking of the powers of the trustees, after
the court has assumed Jurlsdictioin of the
trust, said:
"Whatever their powe^ may be under the
will, if the trusts , created thereby are before
such a court, 'and a decree hns been made, the
powers of the trustees are theilceforth so far
changed that they must have the sanction of the
court for all their acts.' 2 Perry on Trusts,
S 474, and authorities there cited."
In the later case of Qottschalk. v. Mercan-
tUe Trust Co., 102 Md. 526, 62 Atl. 812, tbU
court said:
"If tmstees undertake to administer their
trust without seeking the aid and protection of
any court, they may exercise the discretion, and
execute Uie powers conferred on them by the
instrument creating the trust, and eqiiity wlU
not generally interfere with them, so, long as
they act in good faith and with fair discretion.
But if, upon their application or that of their
cestui que trust, with their consent, a court of
equity by an appropHate decree assumes ju'ria-
dfction of the trusts, and directs them to be
executed under its direction and supervision, the
authorities agree that the situation of the trus-
'tees is thereby so far changed that they must
thereafter secure the sanction or ratifieation of
the supervising court for the successive steps of
jheir administratiott of the trust Perry on
Trusts, 474; Lewln on Trusts (lltb Ed.) p.
753."
[2] The court in this case not only assumed
a general jurisdiction of the trust estate, but
it directed the trustee to report to it annual-
ly, under its thirty-first rule. By this rule
the defendant, as trustee, was required to
report speclflcally the securities in which the
trust estate was Invested, that the same
might re<>eiTe the sanction and approval of
the court The court by said order abridged
the discretionary powers of the trustee, con-
ferred upon him by the will creating the
trust, and consequently interfered with him
In the exercise of such powers. As to the
right of courts to interfere with the exercise
of discretionary jiowers vested in trustees, in
the administration of trust estates, it is said,
in 39 Oyc. 316:
"The court will neither enlarge nor restrict
the powers given the trustee by tlie instrument
creating the trust, • • • nor, except where
an intention of the settlor that the execution
of the trust shall be under the supervisory con-
trol of thp court is manifest in the instrument
creating the trust will it, of its own motion or
at the instance of interested parties, interfere
with the performance of the duties of the trus-
tee, and exercise the discretionary powers con-
ferred upon him, unless there is shown bad
faith on his part,, or a gross and arbitrary use
of discretion, or a complete refusal to act in
the premises."
The same principle is laid down in Shelton
V. King, 229 U. S. 9i, 33 Sup. Ct 687, 67 L.
Ed. 1086, where it is said :
"It is a settled principle that trustees having
the power to exercise discretion will not be in-
terfered with, so loBg as they are acting bona
fide. To do so would be to substitute the discre-
tion of the court for that of the trustee."
See, also, the cases of Sharon t. Simons,
30 Vt. 458; Larkin v. WikoS, 75 N. J. Eq,
480, 72 Atl. 98, 79 AtL 365; Browning y.
Stiles (N. J. Ch.) 65 Aa 457; Dillard y. DU-
lard's Ex'rs (Va.) 21 S. E. 669 ; In re Naglee's
Estate, 52 Pa. 154, and pther cases in appel-
lant's brief.
[3] The law as stated in these cases is also
the law of this state. In Pole y. Pietsch ft
Thiede, 61 Md. 572, this court said:
"In the exercise of the discretionary power
thus conferred on the trustees, a court of eq-
uity has no right to interfere, provided it u
honestly and reasonably exerdsed. They must,
however, act in good faith, having a proper re-
gard to the wishes of 'the testator, and the na-
ture and character of the trust imposed in
them." Claito v. Parker, 19 Yes, 1; French
y. Davidson, 3 Madd. 806; Kemp v. Kemp, 5
tea. 849.
And it is said in the later case of Levi
y. Bergman, 94 Md. 209, 50 Atl. 516, that:
"It must be conceded that, if the trustees act
in the attempted exercise of their discretion
within the limitations imposed upon them by
the will itself, a court of equity cannot inter-
fere, provided such discretion is reasonably and
honestly exercised."
And we said in Gott&chalk y. Mercantile
Trust Co., sppra:
"Equity will not generally interfere with them
[trustees] so long as they act in good faith aad
with fair discretion."
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101 ATLANTIC RBPORTER
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The hearing in this case was upon bill,
answer, and replication, without proof, and
the question, therefore. Is whether the court,
apon the application of the principles here
stated, was authorized to interfere with the
trustee in the exercise of the discretion con-
ferred upon liim by the will of his brother.
The bUl alleges certain acts of the trustee,
that were in no way connected with the ex-
ecution of the trust, as tending to show a
hostile feeling towards his sister, Mrs. Kabn;
bat he In his answer denies, in substance, any
such feeling, and alleges that be still has a
fraternal afTectlon for her, and, although the
bill alleges that she suffered financial loss
and injury because of his delay in stating his
final account as executor of his said deceased
brother, it is conceded that in doing so he
acted within the law, and as he had a right
to da
[4] Under the will of Moses Baer, the de-
fendant, as trustee, is given broad discre-
tionary powers in the management of the
trust estate. He Is given the power to in-
vest all money or fnnds of the trust estate
in such securities as he may see fit, and to
change the investmoit when, as often, and
In such manner * * * as he may deem
advisable, and yet, notwithstanding these
powers so vested in him, we find bis sister,
the plaintiff, a short while after the death
of the testator, suggesting, tlirough her coun-
sel, not only the securities In which he should
invest the trust estate, but that he apply to
a court of equity to assume Jurisdiction of
the administration of the trust, whereby the
sole discretionary power would no longer be
lodged in him. It Is dIs<3osed by the answer
that he. In the exercise of his Judgment, did
not deem it advisable to invest the estate
in tbe securities suggested by the cestui que
trust; and he refused to apply, as requested,
to the equity court to assume Jurisdiction of
the trust It is also alleged that he there-
after refused to disclose to her, or to her
counsel, the securities in which the estate
was at such time invested. In answer to
this he states that he did not refuse "to give
her or her counsel any information that she
was entitled to receive." It may be said of
this answer that It is not a sufiicient or di-
rect answer to the charges against him that
be had refused to give to tbe plaintiff the
Information sought by her. But, neverth»-
less, it Is disclosed by the record that at such
time the estate was invested by him in se-
curities that in these proceedings received
the sanction and approval of tbe court. Tbe
alleged refnsal of the defendant to Inform the
plaintiff as to the securities in which the
estate was Invested is practically the only
act of the defendant to be considered by us
in determining whether be has, as alleged,
acted in bad faith and has abused the dis-
cretionary power lodged in Iiim under the
will. Justifying a court of equity to assume
Jurisdiction of tbe trust, and direct the trus-
tee to report to it under its thirty-first equity
rule; and it, we think, fails to disclose such
want of good faith or arbitrary action on the
part of tbe ti^ustee in tbe exercise of his dis-
cretionary powers as to warrant sudi actloa
of tbe court.
[B, 8] We may add, however, that the re-
quest of a cestui que trust that he be inform-
ed by the trustee of the securities in which
the estate is Invested is a reasonable one,
and one that should be granted, and tbe In-
formation given, if at no other time, when the
trustee accounts for and pays over to tbe
cestui que trust the interest, profits and in-
comes from the trust estate, to which he may
be entitled; and if such information I>e nec-
essary in order to ascertain whether the trus-
tee is executing the trust fairly and without
abuse of the discretionary power reposed Id
him, a court of equity, upon being applied to,
should order such information to be given;
but until that is done, and it is found that
tbe trustee is not administering tbe trust la
good faith, or is abusing tbe discretionary
power granted him under the wUl, the court
should not, against his wishes, assume su-
pervisory Jurisdiction of the trustee's dis-
cretionary powers.
The other order, aa we have said, directed
the trustee to pay to Samuel J. Fisher the
sum of $100 for Ms services as counsel for
the plaintiff in these proceedings, $75 of
which was ordered to be paid out of the cor-
pus of the estate, and tbe balance, $25, out
of the income of said estate. As we bold in
this case that the court was not authorized
to assume supervisory Jurisdiction of the ad-
ministration of the trust estate mpon the facts
presented by the bill, answer, and replication,
the order directing the plaintiff's counsel to
be paid out of the trust estate was erroneoas-
ly passed.
There is a motion in this case to dismiss
the appeal upon several grounds therein
stated; but none of them, in our oplolon.
Justify a dismissal of tbe appeaL It follows
therefore, from what we have said, that tbe
two orders appealed from will be reversed.
Orders reversed, and bill dismissed, witb
costs to the appellant
(ISl Md. W
POSTAL TELEGRAPH CABLE CO. v. HAR-
FORD COUNTY COM'BS. (No. 28.)
(Court of Appeals of Marjiand. June 27, 1917^>
1. Taxation <8i=!>493(8)— Appeais— Rbvikw.
The Court of Appeals, on appeal in tax pro-
ceedings, is confined to an examination of the
legal princii|>leB upon which tbe aasessing body
acted, and in the alisence of errors is without
power to disturb the assessment or revise tbe
valuation.
AssFor otbar easn w* »ua» tooio and KBY-NUUDBR is all K«r-Numb«nd DUuU and ladcxM
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Kd.)
POSTAIi TELBQKAPH CABLE CO. T. HABFOBD COUNTY OOM'RS
601
Z Taxation iQ , i 101— Appbam to Statx Tax
GOIOUSalON — AUTDOBITT TO IllOBBASE AS-
BE8BMKNT.
The state tax commisaion, ander Acts 1914,
e. 841, on appeal from an order of the county
commissioners denying abatement has jurisdic-
tion to increase the assessment.
5, Taxation «=9493(7>— Abatbmxnt Fxockxd-
INOS— AFFEALr— iRECOBD.
The state tax commission is under no obli-
gation to preserve the evidence taken at a hear-
ing on appeal from the action of the county
commissioners in abatement proceedings, and
appellant, failing to take steps to have the evi-
dence preserved, cannot predicate error npon
the absence of such evidence.
4. Taxation 4=>47(7>— CoBFOSATioNS— Gboss
EIABRINOB— DOXTBUC TAXATION.
The fact that a telegraph company pays a
gross earnings tax under C!ode Pub. Oiv. Laws,
art. 81, { 167, does not make an assessment on
its easements in public highways void as double
taxation, prohibited by Bill of Bights, since
•nch gross earnings tax is not a tax Imposed up-
on the property of a corporation.
6. Taxation «=>396 — Cobfobations— Gboss
EABNINGB— DOUBLB TAXATION.
The validity of an assessment of the ease-
ment of a telegraph company in public highways
is not affected by the validity or invalidity of
any gross earning tax whidt it may be required
to pay.
Appeal from Circuit Court, Harford Coun-
ty; Wm. H. Harlan, Judge.
"To be offldally reported."
Proceedings by the Postal Telegraph Cable
Company tor tbe reduction of a tax assess-
ment. The application for abatement was
refused by the county commissioners, and on
appeal to the State Tax Commission the as-
sessmoit was increased, from which order an
appeal was taken to the circuit court From
an order dismissing the appeal, this appeal
la taken. Order affirmed.
Argued before BOYD, O. J., and BRIS-
COE, BURKB, THOMAS, PATTISON, DR-
NER. and CONSTABLE, 33.
H. Ralph Cover, of Baltimore (H. Webster
Smith, of Baltimore, on the brief), for appel-
lant. "Walter W. Preston, of Bel Air, for ap-
pellees.
BTJRKB, J. The Postal Telegraph Cable
Company, the appellant, is a corporation or^
ganized under the laws of Delaware. It ac-
cepted the advantages and obligations of the
act of Congress approved July 24, 1866 (14
Stat 221, c. 230 [D. S. Oomp. St 1916, !§ 10072-
10077]), entitled "An act to aid in the con-
struction of telegraph lines, and to secure to
the government the use of the same for
postal, military, and other purposes." It has
been held that, whilst the companies accept-
ing the provisions of that act may use the
post roads of the coimtry, the act was not
intended to interfere with state sovereignty
under the Constitution. In Pensacola Tele-
graph Co. V. Western Union Telegraph Oo.,
96 U. S. 1, 24 L. Ed. 708, the court said that
the grant under this act —
"evidently extends to the public domain, the mili-
tary and post roads, and the navigable waters
of the United States. These are aU within the
dominion of the national goyemment to the ex-
tent of the national powers, and are therefore
subject to legitimate congressional regulation.
No question arises as to the authority of Con-
gress to provide for the appropriation of private
property to the uses of the telegraph, for no such
attempt has been made. The use of public prop-
erty alone is granted. If private property u re-
quired, it must so far at the present leg&lation
is concerned, be obtained by private arrange-
ment with its owner. No compulsory proceed-
ings are authorized. State sovereignty under
the Constitution is not interfered with. Only
national privileges are granted."
The appellant in this case owned certain
property located in Harford county, Md.
This property was assessed for purposes ot
taxation for the year 1816 to the amount ot
$20,680. The property consisted ot poles,
erected in tbe public highways of the coimty,
and copper and iron wires strung upon tiia
poles. It applied to the county commlasion-
ers' for Harford coimty for an abatement ot
the assessment, which the commissioners re-
fused to grant It thereupon appealed to
the state tax commission to reduce the as-
sessment and a hearing of the subject-mat-
ter of the appeal was had before that body,
which on October 20, 1916, reversed the as-
sessment of the property of the appellant
located In Harford county, and assessed the
same as follows for the year 1816, and or-
dered and directed the county commissioners
of Harford oonnty to enter on the assessment
books of Harford county for the purpose of
taxation for the year 1916:
First District
Telegraph line commencing at Little Falls, Bal-
timore county line, to Buck, to Cresswell, to
Third district line, 9 miles 30 feet pole line, 40
poles to the mile, and cross-arm and easements.
360 poles at 17.80 ?2,808 00
9 miles of copper wire at $20.00 180 00
99 miles of iron wire at $10.00 990 00
$3,978 00
Third District
Telegraph line from First district line at
Cresswell via Schucks Comer to Priestford
Bridge at Deercreek, Fifth district line, 10 miles
30 feet pole line, 40 poles to the mile, and
cross-arms and easements.
400 poles at $7.80 $3,120 00
10 miles of copper wire at $20 200 00
120 mUes of iron wire at $10 1,200 00
$4,520 00
Fourth District
Sixteen miles 30 feet pole line, 40 poles to
the mile, and cross-arms and easements.
640 poles at $7.80 $4,992 00
256 miles of copper wire at $20. . . . 5,120 00
32 mUes of iron wire at $10 820 00
$10,432 00
Fifth District
Two lines — one line from Pennsylvania line
near Constitution to Fourth district line. No.
2 line from Priestford Bridge on Deercreek via
Darlington and Berkley to Susquehanna river
at Conowingo, 16 miles 30 feet pole line, 40
poles to the mile, and cross-arms and easements.
600 poles at $7.80 $4,680 00
75 miles of copper wire at $20 1,.500 00
118 miles of iron wire at $10 1,180 00
$7,360 00
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602
101 ATLANTIC REPORTISR
(Md.
The total ralnatlon placed npon the prop-
erty by the state tax commission was $26,-
290. It therefore appears from this order of
the state tax commission that the assessment
was Increased $5,600. The appellant appeal-
ed from this order to the circuit court for
Harford county, and that court, on the 27th
of December, 1916, dismissed the appeal,
with costs. From that order the appeal in
this case was taken.
The act of 1914 (chapter 841), being the
act by whidi the state tax commission was
created, allows an "appeal to court on [all]
questions of law only from decisions of the
state tax commission to the court of that
county, where the property is situated, if
real estate or tangible personal property,"
etc., and section 244 provides that all "ap-
peals from any action of the state tax com-
mlssloD to court, as authorized by section
238 hereof, shall be taken within thirty days
of such action by petition setting forth the
question or questions of law wbldi it Is de-
sired by the appellant to review." All ap-
peals In Baltimore City must be to the Bal-
timore city court, and a further right of ap-
peal to this court Is given from any decision
of the Baltimore city court or of Qie circuit
courts of the several counties. Such appeals
are required to be taken within ten days
from the final Judgment or determination of
the lower court
In Its petition for appeal, the appellant,
as required by the act, set out as follows
the questions of law which It desired the
circuit court for Harford county to review:
First. That the said state tax commission
of Maryland was without jurisdiction to in-
crease the assessment levied by the county com-
missioners of Harford county in the proceed-
ings which were then pending before it.
Second. The admissibility in evidence, as proof
of the value of your petitioner's easements, of
testimony that the Bankers' & Traders' Tele-
graph Company had paid $3 per pole for their
right of way 20 years ago.
Third. The arbitrary method pursued by the
state tax commission of Maryland in valuing the
alleged easements of your petitioner at $6,000;
no legally sufficient evidence having been pro-
duced at said hearing that your petitioner was
the owner of easements in Harford county, and
no legally sufficient evidence having been pro-
duced at said hearing us to the value of such
alleged easements.
Fourth. The manner and form of said order
or action of the state tax commission of Mary-
land, dated October 20, 191U, reversing the as-
sessments of the county commissioners of Har-
ford county, and reassessing said property at an
increased valuation.
E^fttL The method of computing the deteriora-
tion in value of the property involved in said
appeal.
Sixth. The valuation of the easements of your
petitioner for purposes of taxation, which said
easements have been and are now taxed under
the provisions of article 81, sections 167 to 1S6,
indnsive, of the Annotated Code of the Public
General Laws of Maryland (Bagby).
Seventh. That the state tax commission of
Maryland is in error in this case in its con-
struction, interpretation, and application of the
laws of Maryland relating to the assessment and
taxation of the easements of your petitioner;
and contrary to said law said commission ruled
that the law permitted, directed, and authorized
the consideration and valuation of theeasementi
of your petitioner in arriving at the proper as-
sessment of said property for purpose of state
and county taxation ; and
Eighth. The method of conserving the record
of the proceedings at the bearing of this appeal
before the state tax commission of Maryland,
and such other questions of law involved in
this appeal as may be raised at the hearing
thereof.
[1] It was beld in Mayor t. Bonaparte, 93
Md. 159, 48 Atl. 735, that this court cannot
be required or allowed to sit as a board of
review to revise the amount of the valuation
placed by tox officials upon property for
purposes of taxation. Consolidated Gas Co.
V. Baltimore City, 101 Md. 542, 61 Atl. 532,
1 L. R. A. (N. S.) 268, 109 Am. St Rep. 584.
It Is confined to an examination of the legal
principles upon which the assessing body act-
ed, and if there found no error of law ap
plied by It to the Injury of the complaining
taxpayer this court Is without power to dis-
turb the assessment. Consolidated Gas Co.
v. Baltimore City, 105 Md. 43, 65 Atl. 628, 121
Am. St Rep. 553. In this case no testimony
was taken In the lower court, and the evi-
dence taken before the state tax commission
was not preserved, and therefore we have
very little information as to what legal ques-
tions were raised and decided by that board.
As stated In the opinion of Judge Harlan,
who decided the case in the lower court:
"The record sent up contained the doclcet en-
tries, the petition of the taxpayer upon whicb
the matter was brought upon appeal from tlie
county commissioners, together with certain ex-
hibits, the answer and motion to dismiss of the
county commissioners, together with a copy of
the assessment as it stood on the county's books,
the order of the commission complained of here,
and the appellant's petition to have tlie record
sent to this court"
[2] As to the first and fourtli reasons as-
signed in the petition for appeal, viz. that
the state tax commission was without Juris-
diction to Increase the assessment, little
need be said. This was not pressed, either in
the court below or in this court, and in view
of the broad powers as to assessment confer-
red upon the state tax commission by the
act of 1914 (chapter 841), as construed by
this court In Lescr et aL v. Lowenstein, 129
Md. 244, 98 AtL 712, these objections cannot
be sustoined.
There is no evidence to support the sec-
ond, third, and fifth reasons assigned.
[S] The ground of complaint in the eighth
paragraph of the petition relates merely to
alleged irregularities or omissions of the
state tex commission in methods of proce-
dure, eta None of the things complained of
affected the jurisdictioa of the commission to
hear and decide the case, and there was no
obligation upon the commission to have tak-
en and preserved the evidence taken at the
hearing. If the appellant thought this desir-
able, it was at liberty to have had a steno-
graphic copy of the evidence taken. It was
certainly not the duty of the sUte tax coiu-
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MdO
WILSON ▼. BILLIARD
603
mission, any more than It Is the duty of a
court of record, to cause to be prepared- and
flled as a part of Its records a copy of the
evidence taken upon the hearing. The act
does not require this.
[4] The record shows that, In placing a
valuation upon the appellant's poles and cross-
arms, the state tax commission took Into con-
sideration and assessed Its easements In the
public highways. This action of the commis-
sion Is assigned as error of law in the re-
maining paragraphs of the petition, viz., the
sixth and seventh. The appellant Is one of
the class of corporations upon which a gross
receipts tax Is Imposed by this state. It paid
this tax for the year 1916, and it is argued
that this tax, Imposed by section 167, art. 81,
of the Code, is a tax In "lieu of and In sub-
stitution for any other tax that might be
levied on its intangible property, whether It
be termed franchise or easement," and that
the assessment of its easements In the public
highways of Harford county by the state tax
commission Is a second assessment for pur-
poses of taxation of the same value, and is
void, because it is double taxation and pro-
hibited by the Bill of Rights of thU state.
We do not agree with this contention. It
would introduce a principle into the general
law of taxation of this state that might, and
probably would, result in serious injury to
the public. It is settled In this state that
gross receipts taxes Imposed by the section
of the Code mentioned are not taxes imposed
upon the property of the corporation. State
V. PhUa., WU. & Balto. R. R. Co., 45 Md. 361,
24 Am. Rep. 511. These taxes have been re-
peatedly defined and sustained as constitu-
tional, both by this court and the Supreme
Court of the United States. Cumb. & Pa. R.
R. Cow V. State, 92 Md. 668, 48 Atl. 503, 52 L.
R. A. 764; State v. United States Fidelity
Co., 93 Md. 314, 48 Atl. 918; State v. Central
Trust Co., 106 Md. 208, 67 AtL 267. It was
held in State v. United States Fidelity Co.,
supra, that the gross receipts tax is Imposed
only upon gross receipts from the business of
the corporation done In this state, and not
upon the gross receipts from its business
done beyond this state. In Ratterman v.
Western Union Telegraph Co., 127 U. S. 411,
8 Sup. Ct 1127, 32 L. Ed. 229, as to a corpora-
tion which had accepted the provisions, as
this appellant did, of the act of Congress of
July 24, 1866, It was held—
"that 80 far as a tax was levied upon receipts
properly appurtenant to interstate commerce
It was void, and that bo far as it was only upon
commerce wholly within the state it was valid.
The commerce here mentioned was telegraph
business, and the receipts were receipts for tel-
egraph messages. This case arose upon a certifi-
cate of division of the judges who presided at
the trial, and in remandinK the case the court
said: 'We answer the question, in regnrd to
which the judges of the circuit court divided in
opinion, by saying that a single tax, assessed
under the Revised Statutes of Ohio, upon the
receipts of a telegraph company which were de-
rived partly from interstate commerce and part-
ly from commerce within the state, but which
were returned and assessed in gross, and with-
out separation or apportionment, is not wholly
invalid, but is invaha only in proportion to the
extent that such receipts were derived from in-
terstate commerce' ; and, concurring with the
circuit judge in his action enjoining the col-
lection of the taxes on that portion of the re-
ceipts derived from Interstate commerce, and
permitting the treasurer to collect the other tax
upon property of the company and upon receipts
derived from commerce entirely within the hm-
its of the state, the decree was affirmed."
[S] But if it were held that the gross re-
ceipts tax, as applied to this corporation,
were invalid, as appears to he intimated in
the brief of the appellant, that would not im-
pair the validity of the assessment of these
easements, which are taxable under the law
of this state. Consolidated Gas Co. v. Balto,
supra.
Order affirmed, with costs.
(ISl Hd. 10)
WILSON V. HILLIARD et aL (No. 23.)
(Court of Appeals of Maryland. Juno 27, 1917.)
EXECTJTOBS AND Aduinistsators $s>500(4)—
Settlement of Account — Reopening.
Where petitioner acknowledged in writing
under seal that he had received iTom his grand-
father $10,000, which, if not returned, should
be deducted from his share in his grandfather's
estate, be would not, in the absence of fraud,
on proof that he did not read all of the writing,
and in fact receive bonds worth only 1^1,000, in-
stead of $10,000, be entitled to have the ac-
count of the executor, charging him with $10,-
000, reopened and reinstated, and petitioner
charged in the new account with the present
market value of the bonds.
Appeal from the Orphans' Court, Washing-
ton County.
"To be officially reported."
Petition by U Roy Wilson against Charles
Edward Hilliard, executor and others. From
an order of the orphans' court dismissing the
petition, with costs to petitioner, he appeals.
AfBrmed, with costs.
Argued before BOYD, C. X, and BRISCOE,
THOMAS, PATTISON, URNER, STOCK-
BRIDGE, and CONSTABLE, JJ.
Edgar Allan Poe, of Baltimore (Bartlett,
Poe & Claggett, of Baltimore, on the brief),
for appellant. Levin Stonebraker and J. A.
Mason, both of Hagerstown (A. S. Mason, of
Hagerstown, on the brief), for appellees.
THOMAS, J. The appellant, on the 13th
of February, 1917, filed in the orphans' court
of Washington county a petition in which he
alleged that he was a grandson and legatee
of John L. Nlcodemus, deceased; that Charles
Edward Hilliard, executor of the deceased,
had flled his fourth account, which the or-
phans' court had approved on the 6th of
February, 1917, in which the petitioner was
charged with the sum of $10,000 "by virtue
of the following paper executed by him:
"I, Roy Wilson, of Baltimore, Md., hereby
acknowledge that I have this day received of
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604
101 ATLANTIC EEPORTER
(Md.
my grandfather, John I*. Nicodemue, the snm
of ten thousand dollars, which said sum of
?10,000 I hereby promise to pay to him if at
any time he should demand payment thereof,
and in case no such demand be made by my said
grandfather in his lifetime, I consent and agree
that the said $10,000 shall be charged against
me in the dietribution of hia estate, and I
hereby authorize and direct the person or per-
sons legally authorized to administer the estate
of my said grandfather to charge and deduct
the said snm from any legacy or distributive
share of said estate to which I may in any way
be entitled, either as legatee or heir at law.
"Witness my hand and seal this 6th day of
October, 1912.
"[Signed] L. Roy Wilson. [Seal.]
"Test: J. L. Nicodemus.^'
The petitioner further alleged:
"That he never received the sum of ten thou-
eand dollars ($10,000.00) mentioned in said pa-
per, but that be did receive from his grandfa-
ther, at the time of the ezocution thereof, five
(5) five per cent. (5%) O'Gara Coal Company
bonds, numbered 1797, 1798, 1799, 1800, and
461, and five (5) six per cent (!&%) Mobile
Terminal & Railway Company bonds, numbered
151, 152, 153, 160, and 161. That at that time
tho O'Oara Coal Company bonds had a market
value somewhere between seventy-nine (79} and
eighty-five (85), and Mobile Terminal & Railway
Company bonds had a market value somewhero
between ninety-six (96) and one hundred (100).
At the time of the death of the said John H
Nicodemua both the O'Gara Coal Company and
the Mobilo Terminal & Railroad (Company were
in the hands of receivers, and the value of thfe
Baid bonds had therefore greatly diminished;
the O'Gara Coal Company bonds being worth
about twenty-five (25), and the Mobilo Termi-
nal & Railway Company about thirty (30).
"(3) That during the lifetime of his grand-
father he was not at liberty, under the terms
of the receipt above eet forth, to dispose of
said bonds, because the said receipt obligated
him to return the said bonds to his grandfather
if at any time he should demand their return.
That by the true construction of said paper,
dated October 6, 1912, signed by your petition-
er and delivered to his grandfather at the time
of the receipt of the bonds above mentioned, the
said John L. Nicodemus only intended to charge
your petitioner with the receipt of said bonds,
and only intended, in case he failed during his
lifetime to demand of your petitioner a surren-
der of said bonds, that the executor of his will
should only chargb against and deduct from the
legacies to your petitioner, under said will, the
actual value of the bonds as of the time of the
payment of the said legacies."
The petition then prayed that the accouit
be "re<^eued and restated," and that the pe-
titioner be charged In the new account with
the present market value of the bonds. The
petition was answered by the executor, and
by Edwin M. Connor, one of the grandcUtl-
dren and legatees of the deceased, denying
the allegations of the third paragraph there-
of, and the matter was set down for a hear-
ing by the orphans' court
At the hearing counsel for the petitioner
made the following offers of proof:
"We offer to prove by Mr. Wilson (tho peti-
tioner): That in October, 1912, the time these
bonds were delivered to him by his grandfather,
the O'Gara bonds had a market value of aho\it
70 to 80, and tho Mobile bonds a market value
from 96 to 100. That at the time of the death
of Mr. Nieodemus, the testator, the O'Gara
bonds had a market value of about 42, and the
Mobile boaia bad a possible market value of
70 to 86, although no bonds were actually sold
at that time. That the present market valne
of the O'Gara bonds is between 20 and 30,
and the present market value of the Mobile
bonds about 35. That the receipt that he signed
on October 6, 1012, was shown him just short-
ly before he started for the train. That he did
not read the entire receipt, and only read down
to the part where • • • he promised to pay
to his grandfather if at any time he should de-
mand payment thereof. That the first timo that
he ever read the receipt in its entirety was when
he received a copy of it from the executor, in-
closed in a letter from the executor dated Ma;
22, 1916. That until his grandfather's wUl was
read be had no knowledge tliat any legacy or
deviso was left to him."
"We offer to prove by Mrs. Nicodemus, widow
of the testator: That she was present at the
time of signing this receipt That $10,000 in
cash was not given to Roy Wilson at that time,
but that there was delivered to him fivo 5 per
cent bonds of the O'Gara Coal Company, Nos.
1797, 1798. 1799, 180O, and 461, and five 6
per cent. Mobile Terminal & Railway Ck>mpany
bonds, Nos. 151, 152, 153, 160 and 161, said
bonds being of the par value of $1,000. That a
receipt was signed by the petitioner, Roy Wil-
son, just as he was leaving for the train on
Sunday, the 6th of October, 1912, and was
hurriedly read over by him. That subsequent
to the delivery to Roy Wilson of the above-
mentioned bonds, and prior to the death of John
L. Nicodemus, the O'Gara Coal Company went
into the hands of receivers, and also the Mobile
Terminal & Railway Company. That Roy Wil-
son, shortly after the O'Gara Coal Company
went into the hands of receivers, wrote to John
Li. Nicodemus, asking what he was to do with
tho O'Gara Coal Company bonds, and at the in-
stance of John L. Nicodemus, Mrs. Nicodemus
wrote to Roy Wilson, to wit, on September '2A,
1913, 'Send bonds at once.' "
The orphans' court sustained objections to
this evidence, and the petitioner excepted to
the rulings, and, the "petitioner not desiring
to offer other testimony," the orphans' court,
on the 24tli of February, 1917, passed the or^
der, from which this appeal was taken, dis-
missing the petition and requiring the peti-
tioner to pay the costs.
The argument of counsel for the appellant
in bis brief is devoted to the questions of the
admissibility of the evidence offered by the
petitioner and the jurisdiction of the orphans'
court to construe the paper executed by him.
But, even if the jurisdiction of the orphans'
court be conceded, and the evidence offered
be treated as admissible and allowed fall ef-
fect, it Is quite dear that it would not war-
rant a reversal of the order dismissing the
petition. Assuming that the petitioner actu-
ally received five O'Gara Coal Company bonds
and five Mobile Terminal & Railway Com-
pany bonds, each of the par value of $1,000,
instead of $10,000, what would be the effect
of the paper or agreement executed by him?
If we write into the acknowledgment of hav-
ing received $10,000 the bonds referred to in
the evidence, in the place of the $10,000, we
would still have the promise of the petitioner,
under seal, in consideration of having re-
ceived said bonds, to pay to his grandfather
$10,000 if at any time he demanded payment
of that sum, and, in case no such demand was
made, his agreement that $10,000 should be
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BALTIMORE A O. B, CO. ▼. OWKNS
605
diarged against him In the distribution of
his grandfather's estate. There Is no intima-
tion here of any fraud or mistake, and the
only question Involved is the proper con-
struction of the paper. The petitioner and
his grandfather knew what was delivered to
and received by the petitioner, and in view
of that fact the only reasonable and possible
construction of the paper la that they treated
the bonds as equivalent to $10,000 and agreed
that they should be bo regarded. To hold
that the promise of the petitioner was to de-
liver the bonds to his grandfather if he de-
manded them, and that his agreement was
tlut he was only to be charged with the
value of the bonds in the distribution of his
grandfather's estate, would require us to dis-
regard the terms of the paper, whldi are too
plain to admit of any doubt as to their mean-
ing, and to substitute for the written promise
and agreement of the petitioner another and
altogether different obligation. In Abbott v.
Gatcb, 18 Md. 314, 71 Am. Dec. 635, the court
said:
"The law Is well settled that contracts are
to be interpreted and enforced accordinir to
the fair import of their terms, without refer-
ence to the hnrd.shins that may fall on the pap-
ties. Wagner v. White, 4 Har. & J. ."566: Bar-
ney V. Insurance Co., 5 Har. & .T. 14.3: Dorsey
T. Smith, 7 Har. & J. 345. If persons volun-
tarily express themselves in writing, they mnst
he bound by the lanzuage employed. McElderry
V. Shipley, 2 Md. 25. The law presumes that
they understand the import of their own con-
tracts, and to have entered into them with
knowledge of their mutual rights and obliga-
ttone."
In Taylor v. Turley, 83 Md. 500, Judge
Stewart said:
"It Is certainly not the duty of courts to shape
the contracts of parties, but to enforce such as
the parties make. The contract must be con-
strued by the natural and fair import of its
terms, without reference to the hardship it may
visit on the parties. If persons voluntarily ez-
presB themselves in writing, they are bound by
the language employed, interpreted bv all the
evidence admissible for that purpose.
And in the case of Dixon v. ClayriUe, 44
Md. 573, C3ilef Judge Bartol said:
"It has been well observed that 'there is no
general rule better settled, or more just in it-
self, than that parties who enter into con-
tracts, and especially contracts In writing, must
be governed by them as made, according to their
true intent and meaning, and must submit to
the legal consequences arising from them.' It
is a familiar principle that 'the intention of the
parties contracting must govern, whero that can
be discovered, unless that is in contravention of
some rule of law.' Chew v. Buchanan, 30 Md.
367. This intention must, however, be ascer-
tained from the terms of the contract Itself,
where this is in writing and free from ambigu-
ity."
The evidence offered, to the effect that the
petitioner did not read the whole instrument,
cannot aid in the construction of the paper,
or relieve Urn from the consequences of
having executed it. McGrath y. Peterson,
127 Md. 412, 96 Atl. 551. Nor does the fact
that the petitioner. In reply to his letter to
John Xj. NicodemuB, was notified to "Send
bonds at once," point to the conclusion that
the intention of the parties was other than
that plainly expressed in the paper. What
John Ia Nlcodemus* purpose was in direct-
ing the bonds to be sent to him is not
shown, and Is not material to the inquiry
here; nor does it appear that the O'Gara
Coal Company bonds were ever sent Co him
in compliance with the letter from Mrs.
Nicodemus.
It fallows, from what has been said, tliat
the order of the orphans' court must be
affirmed.
Order affirmed. With costs.
(ISO Md. 678)
BALTIMORE 4 O. B. CO. v. OWENS.
(No. 18.)
(Oourt of Appeals of Maryland. June 27, 1017.)
1. JxTsncBa OF the Peace «=>36(1)— JtrBiswo-
TiON— Determination.
Under Code Pub. Gen. Laws 1904, art 52.
t 7, providing that no justice of the peace shall
have jurisdiction in actions where the title to
land is involved, it must appear to the court,
from the nature of the action itself, that it is
one in which the title to land is necessarily and
directly involved, in order to oust and defeat the
jurisdiction of the justice of the peace, and of
the circuit court on appeal.
2. Justices or the Peace «=»36(1) — Jubisdio-
TION— DETEEMINATION.
The, statement by defendant that the title
to land is involved is not conclusive, and cannot
govern or control the action of the court, or de-
termine its jurisdiction.
3. Justices oe the Peace €=936(1)— Jubisdio-
TioN— 'Title to Land.
An action for injury to plaintlfTs possession
merely did not involve the title to land, so as to
defeat the jurisdiction of the justice of the
peace.
4. Appeal and Ebbob ^=>493— Decisions or
Justices of the Peace— Review.
Where it does not affirmatively appear from
the record that the title to land was a question
directly or necessarily in issue, so that the jus-
tice had no jurisdiction, there is no right of re-
view by the Court of Appeals of judgment of
cLrcnit court on appeal
Appeal from Circuit Court, Prince George's
County; llllmore Beall, Judge.
"To be officially reported."
Action in justice's court by Clarence J.
Owens against the Baltimore & Ohio Railroad
Company. From a judgment for plaintiff,
defendant appealed to the circuit court; and
from a judgment of affirmance, defendant ap-
peals. Appeal dismissed, with costs.
Argued before BOXD, O. J., and BRISOOB,
BURKE, THOMAS, PATTISON, and
STOCKBRIDGE, JJ.
John D. Nock and CarviUe D. Benson, both
of Baltimore (Benson & Karr and Stanley A
Boss, all of Baltimore, on the brief), for ap-
pellant. T. Howard Duckett, of Washington,
D. C. (Marion DucUett, of Washington, D. C,
on the brief) , for appellee.
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606
101 ATLANTIO REPORTER
(Md.
BRISCOE], J. This is an appeal from an
order of the circuit court for Prince George's
county, overruling a motion to quash the pro-
ceedings In a magistrate's appeal case, and
from a judgment In favor of the plaintiff
against the defendant for the sum of $100.
The record presents a single question, and
that relates to the Jurisdiction of Justices
of the peace in civil cases, under article 52,
i 7, Code of P. G. Laws of the state.
The motions to dismiss the appeal and to
quash the proceedings in the court below
were based upon the ground that neither the
justice of the peace nor the circuit court for
Prince George's county on the trial bad ju-
risdiction, because the suit was one where
the title to land was involved, and therefore
they were without jurisdiction to hear and
determine the case. Section 7 of article 52 of
the Code reads as follows:
"Bnt no justice of the peace shall have any
jurisdiction in actions where the title to land is
Involved, nor in actions for dander, for breach
of promise to marry or to enforce any lien for
work done or materials furnished."
[1,2] This section (7) of the Code has re-
peatedly been before this court for construc-
tion, and it has been distinctly held that in
such cas«!S It must appear to the court from
the nature of the action Itself that it is one
in which the title to land is necessarily and
directly In issue, in order to oust and defeat
the jurisdiction of the justice of the peace,
and of the circuit court on appeal from the
justice of the peace. In Randle v. Sutton,
43 Md. 64, it is said:
"The statement by the defendant that the ti-
tle to land is involved, is not condusivo, and
cannot govern or control the action of the court,
or determine its jurisdiction. It must appear
to the court, from the nature of the action it-
self, that it was one in which the title to land is
necessarily and directly in issue between the
parties."
See Cole v. Hynes, 46 Md. 181 ; Deitrich v.
Swartz, 41 Md. 196; Shlppler v. Broom, 62
Md. 318.
These earlier cases are considered and re-
viewed in a number of more recent decisions,
and the construction of the statute as an-
nounced by them has been approved and
adopted by this court as the law applicable
in similar cases. Legum t. Blanic, 105 Md.
128, 65 Atl. 1071; Josselson v. Sonneborn,
110 Md. 548, 73 Atl. 650; Whlttlngton v.
Hail, 116 Md. 468, 82 Atl. 163; Wllmer v.
Mitchell, 122 Md. 300, 89 Atl. 612.
It appears from the docket entries In the
case that on the 10th of December, 1914, the
appellee obtained a judgment against the
appellant company, before Wm. J. Neale, a
justice of the peace of the state of Maryland,
In and for Prince George's county, for the
sum of $100 and costs. The defendant was
summoned to answer an action on the case
for $100 damages at the suit of the plalntifT,
and the cause of action and the particulars
«f the plaintitTs claim for damages are bas-
«d upon an alleged improper and negligent
construction and operation of the defendant's
trains on its tracks at and near the plaintllTg
residence in Rlverdale, Prince George's county,
to the injury and damage of the plaintiff.
The bill of particulars, filed with the justice
of the peace and set out in the record, al-
leges in part the plaintiff's claim for dam-
ages, as follows:
"That the freight trains on the track are there
mostly at nisht, and througliout the nif;ht, and
they recklessly and negligently are operated by
the defendant's employes, and because of sach
emit a great quantity of steam, soot, smoke,
ashes, and cinders, all four of the latter being
wafted over the plaintiff's property, in and upon
his dwelling house and his porches, requiring
him to keep the blinds of the house facing the
railroad, when the wind blows that direction,
shut, to prevent his bedding, linen, and furniture
from being ruined ; that he can use his telephone
only with much inconvenience by reason of the
interminable noises made by the operation of
these freight trains; that the passenger trains
between Washington and Baltimore pass River-
dale Station, both night and day, with great
speed, and these freight trains are warned of
their approach by automatic bells and dynamite
caps, which requires them to hurry and scurry
into the switch to avoid collision; that the jam-
ming and ramming of the cars, loud and boister-
ous calls to the crews of the freight trains, pre-
vent conversation in the plaintiff's yard or on
his porches, and especially musical performances
and literary entertainments, both of which his
premises are often devoted to; that his rest and
quiet at night is destroyed by the operation of
these freight trains; that the trains are often
loaded with live stock and stand immediately
opposite the plaintiff's house, squeaking and
bleating, and they are loaded with manure and
fertilizer, by which obnoxious odors are driven
all over the plaintiff's premises."
From the judgment rendered by the jus-
tice of the peace an appeal was taken to the
circuit court for Prince George's county, and
upon trial the judgment was affirmed. The
evidence produced at the trial is Incorporat-
ed in the record, and the proceedings are cer-
tified to by the judge before whom the case
was heard and tried, and the pending appeal
to this court is taken from the judgment in
that court in favor of the plaintiff.
[3] We find nothing, from an examination
of the record now before us, that tends in
any way to disclose a want of jurisdiction in
the justice of the peace or in the court below.
There is nothing on the face of the proceed-
ings, properly before us, or from the nature
of the action itself, that shows that it is a
suit in which the title to land is necessarily
and directly in issue between the parties.
The nature of the injury complained of and
the suit itself was to recover damages for
an injury to the plaintiff's possession merely,
and the title to the land was not directly and
necessarily involved, iv) as to defeat and oust
the jurisdiction of the justice of the peace
or of the circuit court. In Shlppler v. Broom,
62 Md. 318, it is said:
"The only ground on which an exercise of the
revisory powers of this court can be successfully
invoked, in a case where the judgment was ren-
dered by an appellate tribunal, reviewing the de-
cision of a justice of the peace, is the want of
jurisdiction to consider and determine the qnes-
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BARTON r. SWAINSON
eo7
tions inToIved in litigation. The principle is
too -well settled to be controverted, that in an
appeal from tbe decision of a jnstice of the
peace the judgment of the appellate court is a
finality, unless such court transcends the lim-
its of its jurisdiction."
[4] As it does not af9rmatlvely appear
from the record that the title to land was a
question directly or necessarily in Issue or
involved in the case, and that the justice
rendering the judgment, and the drcnit court
affirming it upon appeal, were without Juris-
diction to hear and determine the case, It
follows, there being no right of review by
this court, that tbe motion to dismiss the
appeal must prevail. Wllmer t. Mitchell, 122
Md. 301, 89 Atl. 612; Whittlngton v. Hall,
116 Md. 468, 82 Atl. 163.
Appeal dismissed, with costs.
(130 Md. OO)
BABTON T. SWAINSON. (No. 14)
(CSourt of Appeals of Maryland. June 26, 1017.)
1. Public hAvos 9=9154— StrsvETS ash Cek-
TIFICATKS— "CaVBAT."
Under Code Pub. Civ. Laws, art. 54, i§ 41.
42, regulating the survey of vacant lands, cer-
tificates thereto, .^nd caveats, a caveat is bat
an objection to tbe issuance of the patent, and,
if it is not heard and determined within the 12
months allowed by section 42, the certificate by
operation of law is released from the effect of
the caveat, and tbe patent should issue upon the
eaveatee complying with the other provisions of
tbe law.
[Ed. Note.— For other definitions, see Words
and Phrases, First and Second Series, Caveat.]
2. PuBuc Lands iS=>154— Subvuts and Ckb-
TmCATEB— C A VKAT.
Under Code Pub. Civ. Laws. art. 54. ${ 41.
42, failure to hear and determine a caveat with-
in the statutory time affects only the caveat, and
does not impair tbe rights of the caveatee to
have certificate issued to him.
8. Public Lands «=s>154— Subvkts and Oee-
TiFiCATES— Caveat.
Where caveatee was informed by chief derk
to the land office commissioner that all the ca-
veat cases affecting the landn involved were "out
by law," and any proceedings affecting such
lands must be begun de novo, such statements
held a mere expression of the views of the chief
derk, and not tbe judicial determination of the
commissioner.
4. Public Lands «=s>15^->Sttbvet8 and Ceb-
TinoATEB— Caveat.
Caveatee held not bound or concluded by
statements of tbe chief clerk to the land com-
missioner, made to caveatee, to the effect that
the caveatpes were "out by law," and that pro-
ceedings affecting the lands should be started' de
novo.
6. PobLic Lands «=3164--Subvets and Cer-
tificates—Caveat.
Payment of caution or composition money
in land office caveat proceedings does not, as
between the applicant for a warrant and the
state, establish tbe relations of contracting par-
ties; but such payment is necessary before tbe
question whether a patent should be granted can
be considered.
Appeals from Commissioner of Land Of-
fice.
In the matter of tbe application of Wil-
liam Edward Swalnson for a warrant of
survey for certain vacant lands. In wbl«flt
Leland Barton filed caveats. From orders
of the Commissioner of the Land Office dis-
missing the caveats, caveator appeals. Or-
ders affirmed.
Argued before BOYD, C. J., and BRIS-
COE, BURKE, THOMAS, PATTISON, UB-
NBR, and STOCKBRIDGE, JJ.
John Rldout, of Washington, D. 0., for ap-
pellant Daniel W. Baker, of Washington,
D. C, for appeUee.
PATTISON, J. The appeals in this case
are from three orders of the commissioner
of the land office, dismissing the . caveats of
the appellant. In each of these cases Swain-
son, the appellee, on July 16, 1914, filed his
application for a warrant of survey for cer-
tain vacant lands in Montgomery county,
Md. A warrant thereon was issued on the
19th day of July following, and said lands
were thereafter surveyed, and certificates of
sndi surveys were filed with the commis-
sioner.
On February 16, 1915, the Chesapeake &
Ohio Canal Company's trustees filed caveats
against the Issuance of patents upon' said
applications of the appellee. On May 3, 1016.
the appellant filed applications for special
warrants to survey said vacant lands, that
patents therefor might be Issued to him. It
appears that a warrant In each case was
issued in response to his application, but it
is not shown by the record that any return
thereon was made to the commissioner.
Thereafter the commissioner, who had re-
cently been Inducted into office, issued no-
tices In forms of orders nisi without discrim-
ination to all caveators, including the Chesa-
peake & Ohio Canal Company's trustees, to
show cause why their pending caveats should
not be dismissed by a certain day named in
the order, and on the 24th day of June, 1916,
tbe appellant, who had heard of tbe Issuance
of said notice, also filed caveats against the
applications of the appellee, Swalnson, for
patents for said vacant lands. These caveats
were dismissed on the 4th day of October,
1916.
After service of the aforesaid order or no-
tice on the Chesapeake & Ohio Canal Com-
pany's trustees, tbe caveats against them
were heard upon a day agreed upon by the
caveators and caveatees and on the 5th day
of October, 1916, the caveats were dismissed,
and on the 4th day of December following,
patents were ordered to issue to the appellee.
The appeals in this case, as we have said,
are from the three orders of October 4, 1916,
dismissing the caveats of the appellant
The record disclosed that the caveats of
the Chesapeake & Ohio Canal Company were
not heard and determined within 12 months
from the entering of the same, and this fact
is the chief ground. of the appellant's caveats
to the issuance of patents to the appellee.
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lOl ATIiAMTIO REPOBT£B
Old.
Section 42 of artlde 54 of the Code of 1912
provides tbat:
"Every cayeat shall be heard and determined
by the commissioner of the land office within
twelve months from the entering of the same un-
less he shall under special circumstancea give
further time to the parties."
It Is contended by the appellant that un-
der a proper construction of this section the
commissioner, without special circumstances
authorizing extension of time, was not only
without authority to hear and determine the
caveats, but that the appellee, because of the
failure to hear and determine them within
the statutory period, had lost his right to
bare the patents Issued to him, even though
be should comply with all other requisites
of the statute.
Section 41 of article 54 of the Code pro-
vides that if a certificate of survey shall be
>-etumed within the time herein prescribed,
And shall be found to be correct, and the
irhole composition or purchase money has
been paid, and such certificate has lain 6
months in the land office, and no caveat has
been entered thereto the person having such
certificate returned, his assigns, devisees, or
heirs shall be entitled to a patent thereon, or
If the certificate Is released by adjudication
or by the operation of law from the effect of
the caveat, a patent shall issue thereon as
if no caveat had been filed. The aforesaid
section 42 deals with the caveat, and pro-
vides that It shall be heard and determined
within 12 months from the entering of the
same, unless under special circumstances the
time be extended.
[1, 2] The caveat is but an objection to the
Issuance of the patent, and if It Is not heard
and determined wlttiin the statutory period,
without extension of time, the certificate is
released from the effect of the caveat by
operation of law, and upon the caveatee com-
plying with all other provisions of the law
the patent should issue. The failure to hear
and determine the caveat within the require
ed time affects only the caveat, and does not
affect the certificate, or the rights of the
caveatee to have Issued to him thereafter his
patent, If the certificate be correct, and he
complies with the law In all other respects.
It appears from the record that on the 2d
day of May, 1916, the chief clerli In the com-
missioner's office. In response to a letter from
the appellant, dated the 2dth day of April,
1916, which is not in the record, wrote ap-
pellant, saying:
"In reference to the different caveat cases
yon have cited, in which Mr. Swainson is the
caveatee, namely, 'Swainson's Island,' 'Wade's
Island,' and 'Wade's Discovery,' beg to advise
that these cases are all out by law, » • •
which states that 'every caveat must be heard
and determined within twelve months from the
date of entering same.' • • • As to Swain-
son's right in the matter of these caveats, we
stated above that they are out by law, and any
proceedings affecting this land or lands must
necessarily be started de novo."
On the next day, May 3d, the appellant
filed his application for a special warrant to
survey said vacant lands and paid the cau-
tion money therefor. The fact that he was
told by the chief clerk in the letter rec^ved
hy him that these caveat cases and Swain-
son's right in the matter of the caveats were
"out by law" is made an additional objection
to the issuance of the patents.
[3,4] It Is claimed by the appellant that
the aforesaid statements of the c^lef clerk,
found in his letter of May 3d, Induced him
to mal<e his application for special warrant
and to pay the caution money, and that the
payment of said money created contractual
relations between him and the state, whldt
were wrongfully disregarded in the dismissal
of his caveats. The statements referred to
were the mere expressions of the views of
the chief clerk, and were not the Judicial
determination of the commissioner ; but, even
should said statements be regarded as the
Judicial determination of the commissioner,
they certainly would not be binding upon the
appellee in the sense tbat his rights wovdd
be concluded thereby. It is not clear Just
what was meant by the clerk In the expres-
sions used by him In his letter, but such ex-
pressions could not have bad the effect and
meaning that is given them by the appellant
[E] The payment of caution or composition
money does not, as between the applicant for
a warrant and the state, establish the rela-
tions of contracting parties. Its payment is
necessary before the question whether a pat-
ent should be granted can be considered.
Day V. Day, 22 Md. 638. The record dis-
closes no error in the action of the commis-
sioner In XMSslng said orders, and they will
therefore be affirmed.
Orders affirmed, with costs to the appellee.
(UO Md. 62S)
MBTBOPOLITAN LIFE INS. CO. r. JEN-
NINGS. (No. 12.)
(Court of Appeals of Maryland. June 26, 1917.)
i; Insttbance ®=>668(6) — Actions on Pou-
ciEB— Questions fob Jubt.
Ordinarily the falsity and materiality of
representations in an insurance application are
questions for the jurv ; but where such faleity
and materiality are shown by clear, convindog,
and uncontradicted evidence, the court may so
rnle as a matter of law.
2. iNsuBANcic «=»64e(3)— Actions on Poli-
cies—Bubdkn OF Pboof.
The burden is on an insurer to satisfy the
jur^ of the falsity and materiality of represen-
tations in the application for insurance.
3. Insubanck «=s>291(S)— Falss Repbesenta-
TioNB— Health and Phtsicai, Condition.
In an insurance application, made in Sep-
tember, 1912, the applicant represented that he
was in sound health, bad never had any disease
of the lungs, had not been attended by a physi-
cian for 12 years, that the complaint, when at-
tended, was for lumbago, and that he had never
been under treatment in any hospital, etc. In
fact, the applicant bad puhmonary tuberculosis
in the spring of 1911, was under treatment in a
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METROPOLITAN LIFE INS. CO. r, JENNINGS
609
state saDatorinm from March to July of that
year, and from November, 1911, to August,
1912, was under treatment in a tuberculosis
camp connected with the penitentiary, in which
he was undergoing sentence. Beld, that the
representations were false, and the facts indl-
rated that insured was not ignorant of their
falsity.
4. Insurance ®=3291(4)— False Repbesenta-
iiONS— Health and Phtbical CoNDrnow.
The representations were not only material,
but were vital to the risk, as it was irrational
to suppose that the insurer would have issued
the policy, it apprised of the true state of facts.
Appeal from Baltimore City Court; Chas.
W. Heuisler, Jndge.
Action by Helen B. Freeburger Jennings
against the Metropolitan Life Insurance Com-
pany. Judgment for plaintiff, and defendant
appeals. Reversed, without new trial.
Argued before BOYD, C. J., and BRISCOE,
BURKS)^ THOMAS, PATTISON, URNER,
and STOCKBRIDGE, JJ.
W. Hall Harris, of Baltimore (W. Hall
Harris, Jr., of Baltimore, on the brief), for
appellant. Julius H. Wyman and Jacob S.
New, both of Baltimore (M. Maurice Meyer,
of Baltimore, on the brief), for appellee.
PATTISON, J. This is an appeal from
a judgment of the Baltimore dty court, re-
covered by the appellee against the appellant
company upon a policy of insurance Issued
by it upon the life of Edward J. Freeburger,
brother of the appellee. The policy, the
amount of which was $500, with the appellee
named as beneficiary therein, was Issued on
October 16, 1912, and the insured died on
January 10, 1914. The sole defense made to
this suit was that the insured had Induced
the appellant company to Issue the policy to
him by false representations material to the
risk.
lo his written application to the ai^>el-
lant company, the insured stated, among oth-
er things,, that be was of sound health ; that
he bad never had any disease of the lungs;
that the physician who last attended him was
Dr. Bllllngslea, the date of such attendance
being 12 years prior to his application, and
that his complaint at such time was lumbago ;
that he had not been under the care of any
physician within 2 years prior to his said ap-
plication, and had "never been under treat-
ment in any dispensary, hospital, or asylum,
nor been an Inmate of any almshouse or other
institution." The application in which these
statements are found was by the Insurance
agreement made part of the policy of Insur-
ance, and it was further agreed that said
statements were "correct and wholly true,"
and were to form the basis of the contract
of insurance upon the issuance of the policy.
In the proofs of death, which were signed
by the plaintiff, the cause of death as given
is pulmonary tuberculosis.
The uncontradicted evidence In this case,
as disclosed by the record, shows that the
Insured In the spring of 1911 was sufTerli^
from pulmonary tuberculosis, and that on
March 29, 1911, he entered the State Sana-
torium at Sabillasville, and remained there
until July 29, 1911, under treatment of Dr.
Cullen, superintendent of said Institution, and
during the whole of said time he suffered
from pulmonary tuberculosis. He left that
institution to attend the United States Dis-
trict Court of Maryland, in which court he
had beea indicted for the violation of th^
Oleomargarine law. The trial of his case
had been postponed at the request of Dr.
Oullen, because of the advanced tubercular
condition of the Insured in the spring of 1911.
On June 6th Dr. Cullen wrote Hon. John
Philip Hill, the United States district attor-
ney, saying:
"Mr. Freeburger has a pretty far advanced
tuberculosis throughout both lungs, and if it
were possible for his case to be postponed until
the weather is cooler, it would be very much bet-
ter for him."
He was tried in October, and was convicted
and sentenced to 13 months In the Atlanta
Penitentiary. His actual term of imprison-
ment in that institution commenced on Octo-
ber 16, 1911, and expired on August 16, 1912.
While so Imprisoned he was on November
4, 1911, transferred to the tuberculosis camp
within the prison, and there he remained
until the end of the term of his sentence
under the treatment of the prison physician
for pulmonary consumption, and while in the
camp "he received open air treatment within
the tent colony, with appropriate nourishing
tuberculosis diet." Upon his discharge from
the Atlanta prison on August 16, 1912, he re-
turned to Baltimore, and on September lOth
following made and signed the written appli-
cation containing the above-mentioned state-
ments and representations.
At the conclusion of the evidence the de-
fendant offered a prayer asking the court to
instruct the Jury:
"That the uncontradicted evidence In this
case shows that statements made at the time of
the signing the application for insurance by the
insured, as contained in said application, were
untrue, and that those statements being material
to the risk, their verdict must be for the de-
fendant"
This prayer was refused, and prayers sub-
mitting the case to the consideration of the
Jury were granted to both the plaintiff and
defendant. It is contended by the appellant
that its prayer directing a verdict for the de-
fendant should have been granted, and because
of the court's refusal to do so the Judgment
of the court below should be reversed.
[1 , 21 This court has said a number of
times that ordinarily it is the province of
tJie Jury to determine the falsity and mate-
riality of the representations made in an ap'
plication for Insurance policy, and the burden
is upon the defendant to satisfy the Jury of
the truth of these defenses; but where the
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101 ATLANTIC REPORTER
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falsity and materiality of the representations
are shown by clear, convincing, and uncon-
tradicted evidence the court may so rule as
a matter of law. Fidelity Mutual Life In-
surance Association v. Flcklln, 74 Md. 173,
21 Atl. 680, 23 Ati. 197 ; Dulany y. Fidelity
4 Casualty Co., 106 Md. 17, 66 Atl. 614;
Mutual Life Insurance Co. v. Rain, 108 Md.
353, 70 Atl. 87 ; Bankers' Ufe Insurance Co.
V. Miller, 100 Md. 1, 50 Atl. 116; Maryland
Casualty Co. v. Gehrmann, 96 Md. 634, 54
Atl. 678 ; MtntL Life Insurance Ca v. Millar,
113 Md. 693, 78 Atl. 483 ; Mutual Life Insur-
ance Co. V. Mullan, 107 Md. 463. 69 Atl. 385 ;
Forwood V. Prudential Insurance Co., 117
Md. 259. 83 AtL 169.
[3, 4] The uncontradicted evidence that
Freeburger, so early as March, 1911, was suf-
fering from pulmonary tuberculosis, because
of which he was sent to the State Sanato-
rium at Sablllasville, Md., where he was un-
der the treatment of Dr. OuUen, and where
he remained for several months, until his
trial in the fall of that year, which resulted
In his conviction and sentence to the Atlanta
prison, where he was again treated by the
physician in charge for tuberculosis of the
lungs until his discharge, less than a month
.before the date of the application, shows
the falsity of the representations made by
him that he was last attended by Dr. Bll-
llngslea for lumbago 12 years prior to his
application ; that he had never suffered from
any lung disease ; that he bad not been under
treatment In any dispensary, hospital, or
asylimi or other institution; and we may
further add that the existence of these facts,
disclosed by such uncontradicted evidence,
makes It Impossible to believe that the in-
sured, In making such representations, was
Ignorant of their falsity. The representa-
tions made were not only material, but were
vital to the risk, and of such a character as
to make it irrational to suppose that the ap-
pellant would have issued the policy if It
had been apprised of the true state of facts
to which the representations were made.
The prayer directing a verdict for the de-
fendant should have been granted, for which
reason the Judgment of the court below will
be reversed, and as there should, in our opin-
ion, be no recovery in this case, the judg-
ment will be reversed without awardbtg a
new trial.
Judgment reversed, without new trial, with
costs to the appellant
(130 Hd. 617)
MORGAN V. CLEAVER. (No. 11.)
(Court of Appeals of Maryland. June 26, 1917.)
1. Bills and Notes ®=34n2(3) — Actions —
Defenses— Failure of Consideratio.v.
As between ttie immediate parties to a ne-
gotiable instrument, it ia competent to show that
thtf consideration baa failed.
2. Bills ard Notes «=»489G9— Actiors-Is-
8UK8.
In assumpsit between the original parties
to a negotiable Instrument, the defense of fail-
ure of consideration may be shown under tlie
general issues.
3. Bills and Notes €=3480(C9— Assumfsr—
Pleading — Sfbcial Fuea on Eqoitabli
OsoDRns.
In assumpsit on defendant's check, payment
of which was refused, the defense that check
was given pursuant to a contract with plaintiff,
as administrator, for tbo sale of land belong-
ing to the estate, and that the contract wa*
void because the administrator acted without
authority, is a defense in the nature of failure
of consideration, available to defendant under
the general issue, and a plea on eqoitaUa
grounds, under Code Pub. Civ. Lftws, art. 76, i
86, is bad on demurrer.
4. Action «=»24r-PLKADiNG — Defenses.
Code fSib. Civ. Laws, an. 75, | 86, which
allows defenses on equitable grounds, was in-
tended to permit a defendant to plead defense
valid in equity, but not previously available at
law, and does not permit defen!<e8 good at law to
be pleaded on equitable grounds.
Appeal from Oicuit Oour^ Koit County.
"To be offidally reported."
Assiunpsit by Henry Cleaver against Rob-
ert H. Morgan. Judgment for plalutiCF, and
defendant appeals. Affirmed.
Argued before BOXD, C. J., and BRIS-
COE, BURKE, THOMAS, PATTISON, TIE.
NGU, and STOCKBRIDGE, JJ.
L. Wethered Barroll, of Baltimore (Barroll
& GIU, of Baltimore, Hope H. Barroll, of
Chestertown, and John S. Gittlngs, Jr., on
the brief), for appellant Harrison W. Vlck-
ers, of Chestertown, and Richard S. Rodney,
of Wilmington, Del., for appellee.
BURKE, J. This appeal presents for con-
sideration the propriety of the action of the
circuit court for Kent county In sustaining
a demurrer to the defendant's third amended
plea. The plea was filed on equitable
grounds under section 86, art. 75, of the
Code. The suit was in assumpsit Tlie dec-
laration contained the common counts and
one special count, which is here inserted:
"And for that on tho 6th day of May, 1916,
the defendant, Robert H. Morgan, made his
check in writing, dated on that day, and direct-
ed the same to the Third National Bank of
Chestertown, Maryland, and there required the
said bank to pay to the plaintiff, Henry Cleaver,
Admin., the sum of five hundred dollars ($500).
who indorsed the game, which waa thereafter
duly presented by him to the said bank for pay-
ment, but was not paid, being returned by said
bank as protested and marked 'payment stop-
ped' by written request, all of which notice was
given to the defendant and that the check still
remains unpaid."
To this declaration the defendant pleaded,
first that he never was indebted as al-
leged; secondly, that he never promised as
alleged; and, thirdly, a plea on equitable
grounds which the court held twd on de-
murrer. The case went to trial on the gen-
eral issue pleas. The docket entries incor-
porated in the record show that the trial
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began on tbe 18th and was concluded. on tbe
lOtb of October, 1916, by a verdict for the
[>lalntlff for $515.65, and tbat Judgment for
that sum was entered against the defendant
on CM:ober 23, 1916. They also show that
prayers were submitted by tbe respective
parties and passed upon by the court. The
evidence and prayers are not In the record,
but It will be assumed that all defenses
which were available to the defendant im-
der tbe general issue were pre8«ited to the
court and Jury.
Th record shows that the plaintiffs are
the heirs at law of Sarah B. Oleaver, de-
ceased, who was a resldoat of New Oastle
(bounty, DeL ; that at the time of her death
she owned a farm, containing 152 acres,
more or less situated in that county; and
that Henry Cleaver, her son and one of the
plaintiffs, was appointed administrator of
her estate. The equitable plea is quite
lengthy, and sets out In full an agreement
entered into on the 6th day of May, 1916,
between Henry Cleaver, administrator of
Sarah B. Cleaver, and Robert H. Morgan,
the defendant, for the sale to and purchase
by the defendant of the Delaware farm for
the sum of $15,000, upon the following
terms and conditions, viz.:
"Five hundred ($500.00) dollars npon the
execution of this agreement, and the balance
upon^ the delivery of a deed to him for said
premises. It is agreed that possession of said
property shall be delivered to the purchaser on
tho 1st day of March, A. D. 1917, and the said
party of the first part agrees to execute and de-
liver to the said party of the second part, on
or before the lat day of July, A. D. 1816, a
good and lawful deed in fee simple for said
premises, clear of all incumbrances."
It is then alleged:
"That said pretended contract was made and
entered into in the state of Delaware, where said
land lay; tbat prior to and at the time of tbe
execution of this pretended agreement Henry
Cleaver, administrator, who was in reality and
fact administrator in the state of Delaware, in
New Castle county, of Sarah Cleaver, who in
her lifetime owned the farm mentioned in said
erotended contract of sale, which farm npon
er death intestate descended to the plaintiffs,
aa her heirs at law, as tenants in common, sub-
ject to a mortgage thereon for a large sum of
money then, on May 6, 1910, an outstanding
valid lien against said farm, and the said
Henry Cleaver, administrator, liad no power
or authority under the laws of tbe state of
Delaware to sell said farm, and had obtained no
authority or order from tho orphans' court of
New Castle county, Delaware, to sell any of
tbe real estate of Sarah Cleaver, deceased; that
section 3417 of the Itevised Code of Delaware,
in force at the time of the execution of this pre-
tended agreement, sets forth the prerequisite
conditions for the sale of real estate such as was
attempted to be sold by this administrator, none
of which conditions have been complied with,
□or had been complied with by Henry Cleaver,
administrator, at the time of the execution of
this pretended contract; that therefore the same
was utterly void and of no effect under the laws
of tbe state of Delaware; that the defendant
should not in any wise be compelled to pay the
said alleged check so obtained from him under
a pretended contract which could not have been
enforced by any of tho parties to the attempted
execntioa of the same, nor oonld this defend-
ant have compelled all the owners of the fee in
said farm to execute to him a deed in fee simple,
clear of all liens (including said mortgage) for
said farm, and tbe attempted performance of
which by Henry Cleaver, administrator, would
have been and would be an illegal and void act
on his part, and in no wise would have bound
or would bind the persons who held the legal
and equitable title to the said farm to convey
a good title to this defendant; that the check
sued on In this case was executed and delivered
to Henry Cleaver, administrator, in Mew Castle
county, in the state of Delaware, under the
facts, conditions, and circumstances above re-
cited and set forth, and no consideration for
the said check passed from the defendants, nor
any of them, for the said check to the defend-
ant"
[1,2] The plaintttb In this suit are the
heirs at law of Sarah B. Cleaver and the
owners of the farm, and there is no allega-
tion in the plea that a deed of tbe character
mentioned In the contract had not been ten-
dered the defendant. The whole defense set
up in the plea Is the total failure of the
consideration for tbe check, by reason of the
failure of Henry Cleaver, tbe administrator,
to obtain from the orphans' court of Mew
Castle county, Del., an order for the sale
of the farm under section 3417 of the Re-
vised Code of that state. That section
provides fbr the sale of a decedent's real es-
tate, where bis personal estate is insufficient
to pay his debts. This section does not ap-
pear to have any application to this case,
because it is not alleged that tbe personal es-
tate of Sarah B. Cleaver was not sufficient to
pay her debta. If, however, such were the
fact, or because of that, or for any other
reason, Henry Cleaver, tbe administrator,
did not or could not deliver to tbe defendant
a fee-simple title to said t&rm, clear of all
Incumbrances, tbat defense was open under
the general issue, and it Is reasonable to pre-
sume was attempted to be proved at the trial.
It is the settled law of this state that as be-
tween tbe Immediate parties to a negotiable
Instrument, as in this case, the question of
consideration - Is always open, and It la
competent to show that the consideration bad
failed, and this defense can be shown imder
the general Issue. Ingersoll v. Martin, 68
Md. 68, 42 Am. R^. 322; Spies v. Rosen-
stock, 87 Md. 14, 39 AtL 268; WllUamB V.
Huntingdon, 68 Md. 580, 13 AtL 836, 6 Am.
St Rep. 477.
[3, 4] The defense relied on in the equita-
ble plea being open and available to the de-
fendant under the pleas already in tbe case^
the court committed no error In sustaining
the demurrer. The statute (Code, art 75, |
80), "which allows defenses on equitable
grounds, was Intended to permit a defendant
to plead many defenses valid in equity, but
not previously available at law. Taylor y.
State, 73 Md. 222, 20 AtL 914, U Ia R. A.
852. A defense which Is good at law
cannot be pleaded on equitable grounds, be-
cause it Is only such a defense as could not
formerly have been pleaded at law that is
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101 AlXiANTIO REPOUTEB
(Md.
now let In on eqnltable grounds." Robey ▼.
State, TJse of Mallery, 94 Md. 61, 60 ,Atl.
411, 89 Am. St Rep. 405; Albert T. Freas,
103 Md. 691, 64 Ati. 282.
Judgment affirmed.
(131 Md. lU)
HAMMOND V. DU BOIS. (No. 20.)
(Court of Appeals of Maryland. June 27, 1017.)
1. Troveb and Conversion «=»1— Stidbncb
— Sufficiency.
The action of trover cannot be maintained,
without a conversion.
2. T80VEB AND CONVEBSION €=»l, 40(4)— DX-
BECT OB OONSTBUCTIVE CONTEBSION.
A conversion may be either direct or con-
structiTO, and may be proved directly or by in-
ference.
8. Tboveb and Convebsion «=>35— Actions—
Demand and Refusal.
When plaintiff fails to prove an actual
conversion, it will be necessary for bim to
prove a demand and refusal at the timo when
defendant had the power to give up the goods.
4. Troveb and Conversion €=>40(4) — Dk-
uand and Refusai^Rebxtttal.
A demand and refusal are only evidence of
a prior conversion, which may be explained and
rebutted by evidence to the contrary.
6. Tbovee and Conversion ®=»3— Intent to
CoNVEBT— Necessity.
To entitle plaintiff to recover In trover,
there must be evidence of an intention of de-
fendant either to take to himself the property
in the goods or to deprive the plaintiff of them.
6. Corporations ®=9l33 — Tkansfeb of
Stock— Demand and RefcsaI/— Evidencb—
Sufficiency.
In an action for the conversion of certifi-
cates of stock, evidence held insufficient to show
a demand upon defendant and a refusal by him
to make the transfer desired.
7. Principal and Agent ®=>164(1) — Acts
Not as Agent— Ratification.
A principal, by his subsequent ratification
or acquiescence, may become liable for the un-
authorized acts of his agent; but this principle
presupposes that the act complained of was the
act of the one as agent or on behalf of the prin-
dpal.
8. Equity ®=s423 — Decbee — Pkbsonb Not
Parties.
Where a company was not a party to the
suit, no decree could have lieen pamed affecting
its interests.
Ai>peal from Superior Court of Baltimore
City; James P. Gorter, Judge.
Suit by Addison G. Du Bols against John
Hays Hammond. Judgment for plaintiff, and
defendant appeals. Reversed.
Argued before BOYD. C. J., and BRISCOE,
BURKE, THOMAS, PATTISON, URNER,
STOCKBRIDGE, and CONSTABLE, JJ,
Edward N. Rich and Joseph O. France, both
of Baltimore, for appellant John C. Glt-
tlngs, of Washington, D. C, and William Pep-
per Constable, of Baltimore (George Win-
ship Taylor, of Baltimore, on tJie brief), for
appellee.
THOMAS, J. On the 6th of June, 1907,
Willard D. Doremus, Addison O. Du Bols,
and others of Washington, D. C, parties of
the first part, entered into a contract with
John P. Miller, of Virginia, party of the sec-
ond part, whldi recites:
"That whereas, the said parties of the firat
part are the owners for the United States of
the entire right, title, and interest in a certain
invention of said Doremus, being an improve-
ment in cotton ginning machinery for which
application for letters patent of the Cnited
States was filed in the United States Patent
Office May 17, 1907, by said Doremus; and
whereas, said party of the second part is de-
sirous of securing said entire right title, and
interest in and to said invention, and in and to
the letters patent which may be granted for
said invention by the United States of America."
The agreement then provided that in con-
sideration of the sum of $50,000, to be paid by
Miller as therein specified, the parties of the
first part did thereby grant bargain, and sell
unto him, his heirs and assigns, "all the right,
title, and interest in and to said invention,
and in and to any improvements thereon that
may be made by said Doremus, and in and
to the letters patent for said invention, and
for said improvements thereon that may be
hereafter granted by the United States."
On the 27th day of June, 1907, Doremiig
assigned and transferred to MlUer "the en-
tire right and Interest in and to any and
all patents which may be attained in ac-
cordance with this agreement in countries
foreign to the United States on said cotton
gin and on any and all improvements there-
on," in consideration of the agreement that
he was to receive one-half of the profit l"
bonds, stocks, or money, realized from the
sale of letters patent in One United States or
In foreign countries ; and on the Ist day of
July, 1907, MUler, in consideration of $10,
"and other valuable consideration," sold to
Addison G. Du Bois "one-fourth part of the
entire net proceeds from said invention de-
rived from either United States or foreign
patents on said invention, whether the pro-
ceeds shall be in money, stocks, bonds, or
other thing or things of value."
Thereafter the National Cotton Improve-
ment Company was organized under the laws
of Maine, and its entire capital stock of
$1,600,000, except a few organization shares,
was issued to Miller for the American rights
to the Doremus invention, and the Doremus
patents were assigned to that company by
Miller and by Doremus. There was also
formed a corporation, called the Doremus
Holding Company, to which Doremus assign-
ed his application for the foreign rights, and
the stock of the latter company was held by
Doremus, Miller, and Daniel J. Sully. Miller
gave to one J<din J. Welch an <9tion on the
majority of the stock of the National Cotton
Improvement Company, and through Welch
the Doremus invention was brought to the
attention of the appellant in this case, John
Hays Hammond. Mr. Hammond referred the
matter to Mr. Sully, with whom he was in-
terested in a plan for warehousing cotton,
for investigation and a report as to the value
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613
of the Invention, and Mr. Snlly reported that
In his opinion the Doremus Invention was
very valuable, and "would revolutionize the
whole cotton Industry."
Welch failed to make the payments under
his option, and his rights became forfeited,
and on the 28th of December, 1909, John P.
Miller, John Hays Hammond, and Daniel J.
Sully entered into the following agreement:
"Agreement made this 28th day of December,
1909, between John P. Miller, party of the
first part, and John Haya Hammond and Daniel
J. Sully, acting for a syndicate to be composed
of themselves and one or more other persons^
parties of the second part, witnessetb:
"Whereas, the party of the first part is the
owner of $471,200 at par of the preferred stock
and $967,200 at par of tho common stock of
the National Cotton Improvement CJompany;
and whereas, the parties of the second part are
about to incorporate, or cause to be incorporat-
ed, a corporation to be known as the General
Cotton Securities Company, or some other suit-
able name, for the purpose of promoting the
incorporation and organization of and holding
the stock and other securities of corporation
engaged in the ginning, warehousing, and gen-
eral development of tho cotton business, which
said corporation is to have a capital of $7,-
000,000 common and $3,000,000 preferred stock,
whi<>h preferred stock is to be 7 per cent, cumu-
lative, with a preference as to assets upon dis-
solution, without participation in profits beyond
7 per cent., and without voting power as long
as the 7 per cent dividend is paid; and where-
as, the party of the first part desires to sell
his stock to tbe>said corporation to be formed,
and to take in payment therefor cash and
common stock, and the parties of the second
part desire to obtain the same for the new
corporation, and also propose to finance the said
corporation by the sale of this preferred stock:
"Now, therefore, this agreement witnessetb
that in consideration of the premises and of
the mutual covenants and agreements herein
contained the parties hereto agree to and with
each other as follows, to wit:
"1. The party of the first part agrees to de-
liver to the parties of the second part $471,200
at par of the preferred stock, and $967,200 at
par of the common stock of the National Cotton
Improvement Company, the certificates for the
same duly indorsed for transfer to be lodged
with John Hays Hammond forthwith.
"2. The party of the first part agrees to ac-
cept in payment for the said stock $37,500 in
cash to be paid upon the delivery of the cer-
tificates as hereinbefore provided, $1,000,000 in
full-paid common capital stock of the new cor-
poration, and $1,000,000 in full preferred stock
thereof; it being understood and agreed, how-
ever, that the common capital stock of the new
corporation may be transferred upon the issu-
ance thereof into the names of John Hays Ham-
mond, D. J. Sully, and Frank S. Bright, as vot-
ing trustees, to be held by them for a period
not exceeding five years, which voting trust is
to be established f^r the purpose of maintaining
a continuous and efficient administration of the
new corporation during the period of its for-
mation, promotion, and commencement of its
operations, and in the event that siich voting
trust is formed the party of the first part agrees
that the $1,000,000 of common stock be paid
and delivered in the shape of certificates of
beneficial interest in that amount of stock,
subject to a voting trust. The parties of the
second part may, if necessary to effect the
sale of the preferred, withdraw or omit from the
voting trust so much of the common stock as
may be used as bonus on such sales: Provided,
that at all times at least a majority of the com-
mon stock aball b« subject to said trust.
"3. Party of the first part agrees that the
parties of the second part may transfer the
said stock of the National Cotton Improvement
Company to the new corporation upon such
terms and conditions as will provide for the
issuance by the new corporation to the parties
of the second part of $3,000,000 at par of its
common stock and $8,000,000 at par of its pre-
ferred stock, the balance of the common stock
to remain unissued, to be issued hereafter at
the discrotton of the board of directors for cash
or property, in accordance with the needs of the
corporation: Provided, however, that in addi-
tion to receiving from parties of the second part
the stock of the National Cotton Improvement
Company the new corporation shall also receive
from the sale by parties of the second part
of the stock to be transferred to them $1,600,-
000, which sum is to be paid into the treasury
of the new corporation by the parties of the
second part as the same is derived from the
sale of the preferred and common stock of the
new corporation issued by it to the parties of
the second part
"4. The party of the first part agrees that
the $1,000,000 of preferred stock to be issued to
him as aforesaid shall be lodged with the syndi-
cate, of which parties of the second part are
members, and for which they are acting in exe-
cuting this agreement for sale by them, so as
to net to party of the first part the sum of
$400,000.
"5. The parties of the second part agree,
upon the deposit of the said certificates of stock
of the National Cotton Improvement Company
with John Hays Hammond aforesaid, to pay
to the party of the first part $37,500 in cash,
and to proceed forthwith to incorporate the new
corporation and to procure the issuance of its
stock to them ajs hereinbefore provided, and
when and as soon as the same is issued to es-
tablish a voting trust as above provided, and
deliver to party of the first part certificates of
beneficial interest, subject to the voting trust,
in $1,000,000 par of the common stock of the
new corporation, and to receive and hold for
the account of the party of the first part $1,-
000,000 at par of the preferred stock of the
new corporation. They further agree to trans-
fer the said stock of tho NationfJ Cotton Im-
provement' Company to the new corporation,
and to enter into an agreement with it to use
their best endeavors to sell $2,000,000 of its
preferred stock and so much as may be neces-
sary of the common stock which they receive,
so as to net to its treasury the sum of $1,600,-
000. For the purposes of sale, the $2,000,000
of preferred stock to be sold for the new cor-
poration and the $1,000,000 preferred stock to
be sold for the party of the first part shall be
taken and considered as one block, and the
parties of the second part shall use their best
endeavors in every respect to sell and market
the same. Upon the sale of each share of said
preferred stock there shall be paid out of the
proceeds of such sale by the parties of the sec-
ond part to the party of the first part the sum
of $14 in cash until the sum of $400,000 has
been paid in full as herein provided for, and
a proportionate amount shall be paid into the
treasury of tho new corporation until the $1,-
600,000 herein provided for has been paid In
full. Anj sum or sums of money received by
parties of the second part from the sale of the
$1,000,000 preferred stock in excess of tho sum
of $400,000 shall belong to parties of the sec-
ond part as and for their compensation for
carrying out this agreement The parties of
the second part shall be under no personal lia-
bility by virtue of this agreement except to
transfer the stock received by them from the
party of the first part to the new corporation,
to pay the sum of $37,600 io cash, to deliver to
party of the first part $1,000,000 in common
stock or voting trust certificates, to receive for
the account of party of the first part $1,000,000
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101 ATLANTIC REPORTER
(Ml
preferred stook, to nse their best endeavors to
sell said $1,000,000 of preferred for the party
of the first part and $2,000,000 preferred for
the new corporation, and to account to party of
the first part and to the new corporation for
their respective proportions of the moneys re-
ceived from the said sales.
"0. It is understood and agreed by and be-
tween the parties hereto that all deliveries of
stock and all payments of moneys herein pro-
vided to be made to party of the first part may
be made to Frank S. Bright, as his representa-
tive, and the parties of the second part shall
not be accountable or responsible for the dis-
tribution by him of the securities or moneys
among the other parties if any entitled thereto.
"In witness whereof the parties hereto have
hereunto set their hands the day and year first
above. Jno. P. Miller.
"John Hays Hammond.
"D. J. Sully.
"Ralph Polk BudL"
In pursuance of the above agreement, the
General Cotton Securities Company was in-
corporated under the laws of Delaware, and
the "first meeting of the corporation" was
held at its ofllce in Wilmington, Del., <m the
6th day of January, 1910. On the 7th of
January, 1910, the General Cotton Securities
Company entered Into the following contract
with Daniel J. Sully:
"This agreement, made the 7th day of Janu-
ary, 1910, between Daniel J. Sully, part^ of
the first part, and General Cotton Securities
Company, a corporation of the state of Dela-
ware, party of the second part:
"Whereas, Daniel J. Sully, party of die first
part, has offered to deliver to this company
|471,200 at par of the preferred stock and
9967,200 at par of the common stock of the
National Cotton Improvement Company, a cor-
poration of the state of New Jersey, with a total
authorized and outstanding issue of $500,000
preferred stock and $1,000,000 common stoc^,
and to pay into the treasury of the party of the
second part $1,600,000 as and when payment
thereof is demanded, in consideration of the is-
suance to him by the party of the second part
of $3,000,000 at par of the preferred and $3,-
000,000 at par of the common stock, full paid
and nonassessable, of this company; and where-
as, the said National Cotton Improvement Com-
pany is the owner of valuable patents and pat-
ent rights in an improved cotton gin known as
the 'Dorcmus gin,' and by virtue of said owner-
ship the stock which said party of the first
part has offered to convey is in the estimation
of the board of directors of party of the second
part worth not less than $5,000,000, and is nec-
essary for the purposes and objects of the in-
corporation of party of the second part:
"Now, therefore, this agreement witnesseth
that, in consideration of the premises and of the
mutualities of this agreement, the parties here-
to covenant to and with each other as follows,
to wit:
"First Party of the first part hereby agrees
to deliver or cause to be delivered to party of
the second part, on one certificate of the pre-
ferred and one or more certificates of the com-
mon stock of the National Cotton Improvement
Company, aggregating 4,712 shares of the said
preferred stock and 9.672 shares of the common
stock thereof, properly executed and indorsed
for transfer, the said delivery to be made to the
treasurer of the party of the second part,
"Seoond. Party of the first part agrees to pay
to the part}/ of the second part from time to
time, upon its demand, the sum of $1,600,000
in cash, without interest, and agrees to make
the said payments at such times and in such
amounts as the party of the second part may
nominate.
"Third. Party of the second part agrees to
execute and deliver to the party of the first part,
upon the delivery to it of the certificates of
stock hereinbefore provided for of the Nationri
Cotton Improvement Company, one or more
certificates of the preferred stock and of the
common stock of party of the second part, ag-
gi-ogating $3,000,000 at par of the preferred and
$8,000,000 at par of the common, which stock
is hereby declared to be and is fall-paid and
nonassessable.
"In witness whereof, the party of the first
part has signed and sealed this agreement, and
the party of the second part has cansed tii«
same to bo executed by its president and its
corporate seal to be hereunto affixed, duly at*
tested by its secretary the day and year first
above written.
"Daniel J. Sully. [Seal]
"General Cotton Securities Company,
"By Ralph Polk Buell, President
"Attest: a H. Stanton, Secretory."
On the 7th of January, 1910, an agreement
was entered into between John Hays Ham-
mond, Daniel J. Sully, and Frank S. Bright,
as constituting voting trustees, and the stock-
holders of the General Cotton Securities
Company, by which the common stock of the
company was placed in the bands of the vot-
ing trustees for the period of five years, upon
the trustees issuing therefor to the stock-
holders common stock trust certlflcates. Ttala
agreement was signed by Daniel J. Sully u
the holder of 29,065 shares of the common
stock. On the same day a syndicate com-
posed of Daniel J. Sully, Jbhn Hays Ham-
mond, Harris Hammond, Mont D. Rogers,
and D. B. Atherton was formed for the pur-
pose of selling $3,000,000 of preferred stodt
and $750,000 of the common stock of the
General Cotton Securities Company. Tbia
syndicate agreement recited that Mr. Sully
had acquired from the General Cotton Se-
curities Company $3,000,000 of its preferred
stock and $3,000,000 of its common stock, and
provided that each member of the syndicate
was to use his best endeavors to sell the $3,-
000,000 of preferred and $750,000 of the com-
mon stock ; that the preferred stock was to
be offered for sale at the "price of $100 for
each $100 par value of preferred stock and
$25 par value of common stock, if payments
therefor be made in one sum, hut for the
price of $105 for like amount of preferred
and common stock If payment be made in In-
stallments" ; that Daniel J. Sully diould be
syndicate manager, for the purposes fbeieln
specified ; and that the $3,000,000 of prefer-
red and $750,000 of common stock should be
transferred by Daniel J. Sully into hia bands
as syndicate manager, and the certificates
therefor deposited In some trust company, to
be selected by him, under an agreement by
which the purchasers of the stock were to
make payments therefor to the trust compa-
ny. On the 9th of February, 1910, Daniel J.
Sully delivered to the United States Trust
Company of Washington, D. C, certificate
No. 1 for 30,000 shares of the preferred stock
of the General Cotton Securities Company,
and certificate No. 3 for 7,500 shares of the
common stock voting trust cartiflcateB of the
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HAMMOND ▼. DU BOIS
615
commjir, both oertlllcates being In bis name
as syndicate manager, wblch the trust com-
pany agreed to hold In accordance with the
terms of his letter of that date, and In ac-
cordance with the provisions of the syndi-
cate agreement On the Sd of Febroary,
1910, John P. LlUer executed the following
declaration of trust:
"Declaration of Traat
"Whereas, I, John P. Miller, have this day
received the foUowine described common stock
trust certificates of toe General Cotton Securi-
ties Company:
No. 4 2,550 Bbares.... John P. UlUer, Tnuta*.
No. S 1,560 ■hares....Job]i P. Uiller, Trustee.
No. • 100 Bbarei.... John P. Miller, Trustee.
No. 7 100 shares.... John P. Miller, Trustee.
Mo. t. 100 shares.... JohB P. Miller, Trustee.
No. 9 100 shares.... John P. Miller, Trustee.
No. 10 100 shares.... John P. Miller, Trustee.
No. 11 2,275 shares John P. Miller, Trustee.
No. 12 1,600 shares John P. Miller, Trustee.
No. 13 600 sbarea.... John P. Miller, Trustee.
No. U 600 shares.. ..John P. Miller, Trustee.
No. 15 400 shares.... John P. Miller, Trustee.
No. 16 110 shares.... John P. Miller, Trustee.
No. 17 165 shares.... John P. Miller, Trustee.
"And whereas, I have redelivered said cer-
tificates for deposit in escrow for the period of
18 months, and said certificates have been de-
posited in a safo deposit box, rented in the
names of Daniel J. Sully and F. S. Bright; and
whereas, said certificates are deposited under
•a agreement that they shall not be sold for
said period; and whereas, I am the owner of
certincate Ko. 11 for 2,275 shares of said com-
mon stock; and whereas, I hold the others in
trust:
"Now, therefore, I, John P. Miller, trustee, do
hereby declare that upon the termination of
said escrow Willard D. Doremus will be entitled
to receive said certificates Ncs. 4, 5, 6, 7, 8, 9,
and 10, Addison G. Du Bois will l>c entitled to
receive certificates Nos. 12, 13, 16, and 17, F.
S. Briglit will l>e entitled to receive certificate
No. 14, and Wm. Muerling will be entitled to
receive certificate No. 15; and said voting trus-
tees are hereby authorized and directed to
transfer said common stoclc trust certificates to
the individuals thereto entitled as above indicat-
ed. This declaration of trust is to be deposited
with said certificates and is to be irrevocable,
without the consent in writing of the benefici-
aries hereto.
"In testimony whereof I hereunto set my hand
and seal this 3d day of February, A. D. 1910, at
the city of Washington. District of Columbia.
"John P. Miller, Trustee. [Seal.]"
On the 4th of March, 1910, Mr. Sully, Mr.
Hammond, Mr. Miller, Mr. Harris Hammond,
Mr. Bright, Mr. Atherton, treasurer of the
General Cotton Securities Company, and Mr.
Baldwin met at the office of the National
Cotton Improvement Company In the Union
Trust Building In Washington. Mr. Sully
gave Mr. Bright an order on the United
States Trust Company of Washington for
certificate A-3 for 30,000 shares of preferred
stock of the General Cotton Securities Com-
pany, and Mr. Bright got the certificate of
stock from the trust company and brought it
back to the meeting. Certiflcate A-3 was
then canceled, and certiflcate No. 5-A was is-
sued to John P. Miller for 10,000 sliares, and
certificate No. ft-A for 4,000 shares was Is-
saed to Daniel J. Sully, syndicate manager.
I The 10,000 shares were transferred by Miller
I to Daniel J. Sully, syndicate manager, and a
certificate therefor, being certiflcate 7-A, was
Issued to him. Certificates 6-A and 7-A were
then returned to the United States Trust
Company by Mr. Bright and receipted for by
that company, and the remaining 16,000
shares were turned Into the treasury of the
General Cotton Securities Company.
It thus appears from the evidence referred
to that the American patents for the Dore-
mus Invention were purchased by Miller in
1907 from Doremus and others interested
therein for $50,000. The National Cotton
Improvement Company, which will hereafter
be referred to as the Improvement Company,
was then organized, with a capital stock of
$1,600,000, and the American patents were
transferred by MlUer to that company In
consideration of 96 per cent of its entire
capital stock, and the patents were assigned
by Miller and by Doremus to the company.
Upon the organization of the General Cotton
Securities Company, Miller transferred to
that company the stock of the improvement
company, in consideration of the payment of
$37,500 in cash and $1,000,000 of the common
stock and $1,000,000 of the preferred stock of
the latter company. It also appears from
the evidence that the $37,500 was paid by
Mr. John Hays Hammond to Mr. Bright, who
paid the same to Mr. Miller, Mr. Du Bois, Mr.
Doremus, and others Interested therein, and
that Mr. Hammond had previously paid the
$12,500, being the balance of the $50,000
which Mr. Miller had agreed to pay for the
American rights.
From the organization of the General Cot-
ton Securities Company in January, 1010,
until the faU of 1910, Mr. Sully was actively
engaged in trying to sell the stock of the Se-
curities Company, and to dispose of the for-
eign rights in the Doremus Invention. To
that end he made several trips to England,
and a number of tests were made of cotton
gins constructed in accordance with the Do-
remus patent The cost of these tests, as
well as the personal expenses of Mr. Snlly,
were borne by Mr. Hammond. In Septem-
ber and October, 1910, serious dlCTerences
arose between Mr. Hammond and Mr. Sully,
which resulted in Mr. Hammond telling Mr.
Sully that he would not make any further
advances to him for his personal use, but
that he would make further efforts himself
to sell the stock of the company and would
pay the cost of any further tests of the Dore-
mus gin. Mr. Sully then threatened to Issue
a prospectus and to sell the stock of the com-
pany, and Mr. Hammond told him that if he
did he would "repudiate" the prospectus in
every paper in the country ; the attitude of
Mr. Hammond being, according to his own
testimony, that it would not be honest to sell
the stock of the company until the value of
the Doremus invention could be fully demon-
strated by further tests of the gin. FoUow-
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101 ATLANTIC REPORTER
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Ing this Interview Mr. Sully wrote Mr. Hara-
mond as follows:
"Office of Vice President and General Manager.
"Washington, D. C, October 12, 1910.
"Mr. John Hays Hammond, 71 Broadway,
New York, N. Y.— Doar Sir: I inclose you here-
with a copy of a letter which I have tendered
to Mr. John P. Miller to-day.
"Yours truly, Daniel J. Sully.
"P. S.— I have informed Mr. Miller and his
associates that you yesterday absolutely refus-
ed to furnish any more money, which you wero
obliged to do under our contract, for the further
protection of the General Cotton Securities Com-
pany, and that you notified me that you would
repudiate in every newspaper in the country
any prospectus that I might issue.
" D. J. S."
The letter Inclosed to Mr. Hammond was
u follows:
"Washington, D. C, October 12, 1910.
"Mr. John P. Miller, Washington, D. C—
Dear Sir: Under a contract made with you
the 28th day ot December, 1909, between John
Hays Hammond and myself jointly, acting as
a syndicate, which waa to bo composed of John
Hays Hammond and myself and one or more
other parties, wherein we entered into a con-
tract with you whereby we were to organize a
corporation with the capital stocls of $7,000,000
common and $3,000,000 preferred stocic, which
preferred stock was to lie 7 per cent, cumulative
with a preferment as to assets upon dissolu-
tion without participation in profits beyond 7
per cent. ; and also we desired to obtain from
you your interest in tho National Cotton Im-
provement Company, for the General Cotton
Securities Company, and also obligated our-
selves to finance the said General Cotton Securi-
ties Company by the sale of the preferred stock
of the General Cotton Securities Company, and
to use our best endeavors to sell the preferred
stock to meet the obligations which wo entered
into with you. Under that contract, now, there-
fore, please take notice that the General Cotton
Securities Company was formed, under the re-
ciuiremcsnts of that contract the syndicate was
formed; al.so under the requirements of that
M)ntract 1 have used my best endeavors to get
the consent of my copartner (John Hays Ham-
mond) to co-operate vrith me in placing this
stock where it could bo sold. I have been un-
able to so do. Therefore, to absolve myself
from any liability, financially or morally, re-
specting the contract, I herevnth inform you
That I will on your demand proceed as far as
I can to turn back to you legally all and any
of the right or interests that I may have undor
this contract.
"Yours truly, Daniel J. Sully."
On the 12th of October Mr. Sully also
wrote Mr. Hammond, tendering bis resigna-
tion as a director of the General Cotton Se-
curities Company, to take effect when the
board of directors accepted the same. Mr.
Hammond and Mr. Sully met again on the
6th of November, when, according to the tes-
timony of Mr. Hammond, friendly relations
l)etween him and Mr. .Sully were partially
restored, with the understanding that Mr.
Hammond would take up active measures to
establish the value of the Doremus inven-
tion, with the view of selling the stock of the
wmpany, and arrangements were made for
a meeting of the directors. On the 16th of
November the directors met at the office of
the company in Washington, and the meeting
TMUlted in a further breach between Mr.
Hammond and Mr. Sully, and no action on
the part of the directoi:?. Following this
meeting W. D. Doremus and A. G. Du Bols
wrote to Mr. Hammond, Mr. Sully, and Mr.
Briglit, as the board of trustees, advising
them that they were interested to the extent
of three-fourths in the trust certificate is-
sued by them to John P. Miller, and stating:
"Our information is to the effect that at an
alleged meeting of the board of directors held
nt the office of the company on Wednciiday, the
16th inst, tho previous minutes of the board of
directors, or what was supposed to be the pre-
vious minutes of the board of directors (whidi
were, in fact, made by a board differently con-
stituted from those who were present the 16th
inst.), were physically altered in an attempt to
release the gentlemen interested in the syndi-
cate, for whom Daniel J. Sully was acting, from
the obligation to pay into the treasury of the
company, upon demand made therefor, the sum
of $1,600,000, as provided for under the con-
tract made by the former president of the com-
pany with said Sully, acting for said syndi-
cate, under date of January 7, 1910."
The letter also demanded that the board
of trustees request the president of the com-
pany to call a special meeting of the stock-
holders for the purpose of removing the then
board of directors. On the same day Messrs.
Du Bols and Doremus wrote to Mr. Athertoa,
the treasurer of the General Cotton Securi-
ties Company, calling his attention to the
fact that there was in his possession the
preferred and common stock of the improve-
ment company, stating that they had been
informed of certain illegal action taken by
the board of directors of the Securities Com-
pany on the 16tb of November, which was
greatly to their detriment as the beneficial
owners of three-fourths of the trust certiflr
cates issued to John P. Miller, and demand-
ing that he retain in his possession the stodc
of the National Cotton Improvement Com-
pany until a proper l>oard of directors could
be elected by the stockholders of the Securi-
ties Company. They also wrote to Mr. Ham-
mond, informing him that they were interest-
ed in the stock held by Mr. Miller, and that
"among the conditions on which the delivery
of the stock of the General Cotton Securities
Company by it to Mr. Sully was the agree-
ment that he made on behalf of the syndi-
cate to pay in the treasury of the said com-
pany the sum of $1,600,000" ; that they had
been informed that an attempt bad been
made to alter the contract made by Mr. Sully
with the company, so as to relieve the syndi-
cate of the payment to the company of said
sum of $1,600,000 ; and that they were advis-
ed that such action was absolutely Illegal.
The letter concluded by stating that they
would hold him personally responsible for
any Injury suffered by them by reason of any
change or transfer of the stock then stand-
ing in the name of John P. Miller. Mr. Du
Bols and Mr. Doremus also wrote to Mr. Mil-
ler, on the 18th of November, 1910, as fol-
lows:
"Dear Sir: Under the several agreements in
existence between us, you have been authorized
to act in our bohalf and interests in relatioa to
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HAMMOND y. DU BOIS
617
tlie stock in the National Cotton Improvement
Cotapany, which stood in your name alone, and,
aa you know, we acquiesced in the agreement
made by you in December, 1009, with the syndi-
cate represented by John Hays Hammond and
Daniel J. Sully. In carrying out the agreement
in behalf of the syndicate, we are all aware of
the fact that the General Cotton Securities Com-
pany, through its president and secretary, se-
cnred a contract from Mr. Sully, made bi be-
half of the syndicate, that was ^eatly to the
advantage of all of us, as under its terms the
■yndicate is required to pay into the treasury
of that company upon demand $1,600,000.
Through our consent you have been the repre-
sentative member for our joint interests on the
board of directors of the General Cotton Securi-
ties Company; we assuming, of course, that you
would In every way protect our mutual inter-
ests. If we have been correctly informed, you
have failed to appreciate that the recent action
taken by the board of directors of the General
Cotton Securities Company, or what is sup-
posed to be a board of directors, at a meetin;
held in this dty on Wednesday, the 16th inst,,
has jeopardized oar rights. We feel sure that
you must appreciate that agreeing that the
minutes of the previous meeting held by the
board of directors in New York on January 7,
1910, should bo physically changed, so as to
relieve the syndicate from its obuifation to jMy
into the treasury of the company $1,600,000
upon demand, practically places us in the posi-
tion of being at the mercy of the syndicate.
Consequently, we demand that you take neces-
sary steps to at once protect the interests of
all of us in the stock of the National Cotton
Improvement Company, which was turned over
by you through the syndicate to the General
Cotton Securities Company, by such appropriate
action in the premises that will impress that
stock with the trust that you represent in our
behalf. ^
"Tours respectfully, W. D. Doremus.
"A- G. Dn Bois."
It Is apparent that the theory upon wMch
Mr. Doremus and Mr. Du Bois acted in writ-
ing these letters was that Mr. Hammond was
personally liable for the $1,600,000 which Mr.
Sully agreed to pay to tbe Securities Com-
pany, and that tbe course they pursued was
based upon the assumption that there had
been a formal meeting) of the board ot di-
rectors of the Securities Company on the
16tb of November, 1910. There are no min-
utes of such a meeting in the record, and
there are no grounds upon which Mr. Ham-
mond could be held liable for tbe sum named.
After receiving the letter from Mr. Du'Bols
and Mr. Doremus, Mr. Hammond tried to ar-
range for a meeting between himself and Mr,
Du BolB and Mr. Doremus, and went to
Washington on November 19th to meet Mr.
Doremus, for the purpose of explaining to
bim that he was not liable for the $1,600,000
referred to in Mr. Sully's contract with the
company, and that the directors had not at-
tempted on November 16th to do anything
tbat would prejudice his Interest While In
Washington on the 19tb of November Mr.
Hammond learned from Mr. Bright that Mr.
Sully bad executed a contract on behalf of
the Securities Company with tbe Fordyoe
Company, which involved tbe stock of tbe
Securities Company. Mr. Bri^t would not
explain to him the exact terms of the con-
tract, and Mr. Hammond immediately tele-
graphed to Mr. Atfaerton, tbe treasurer r-f the
Securities Company, who was then in Little
Bock, Ark., that he had just learned of an
"attempted contract" between Mr. Sully, on
behalf of the Securities Company, and the
Fordyce Company, but that he was not ac-
quainted with the details, and directing him
to wire Mr. Fordyce, Sr., in St liOuis, that
Mr. Sully had no authority to mal;e the con-
tract, that It was in violation of the syndi-
cate agreement, and absolutely void.
A special meeting of the board of direc-
tors of the General Cotton Securities Com-
pany was called, and was held at the New
Tork ofiSce of the company on the 23d day of
November, 1910. The minutes of that meet-
ing show that the return of the $1,600,000 of
the preferred stock of the company to the
treasurer of tbe company was approved; tbat
the letter of Daniel J. Sully to John P. Mil-
ler of October 12, 1910, a copy of which was
sent by Mr. Sully to Mr. Hammond, was pre-
sented to the board, and with it the follow-
ing communication from Mr. Hammond to
Mr. Miller, referring to Mr. Sully's letter:
"Since the receipt of that letter I have made
great efforts to carry out the contract of De-
cember 28, 190©, which is referred to in Mr.
Sully's letter to you. 1 find I also am entirely
unable to carry out the contract of December
28, 1909, which is referred to in Mr. Sully's
letter to you. I find I also am entirely unable
to carry out the unfulfilled provisions of that
contract, and I therefore join with Mr. Sully in
informing yon that I will, on your demand, pro-
ceed as far as I can to turn back to yon let^tlly
all and any of the rights or interests that I may
have onder that contract
"Tours truly, John Hays Hammond.
"P. S.— I made this proposal to you by word
of mouth on Saturday, November 19, 1910,
and I am writing this to formally confirm my
verbal proposal. J. H. H.
"We hereby assent to the above proposal as
members of said syndicate.
"Harris Hammond.
"D. B. Atherton."
Mr. John Hays Hammond then offered, "on
behalf of the vendors (the members of the
syndicate), those members present assenting
thereto," to return the stock of the company
received by them upon the acceptance by the
company of the proposal, except the 49 shares
held by the directors and officers of the
company, to permit the cancellation of the
certificates for the same. Mr. Miller stated
tbat he had written a letter to Mr. Sully, ac-
cepting the proposal contained In his letter of
October 12, 1910, "and demanded the re-
delivery to him of the capital stock of the
National Cotton Improvement Company as oA
the terms set forth in Mr. Sully's letter."
Thereupon the board of directors adopted
the following resolution:
"Whereas, heretofore this company entered in-
to an agreement with Daniel J. Sully as set
forth in the minutes of the first meeting of the
board of directors whereby there was transfer-
red to this company 4,712 shares of the prefei^
red and 9,672 shares of the common stock of
the National Cotton Improvement Company for
certain considerations moving from this compa-
ny, to wit, $3,000,000 at par of common stock
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101 ATLANTIO BEPORTRR
0(0.
of this company, and $1,400,000 of preferred
•tock of gala company; and
"Whereas, thereby and therennder Daniel J.
Sully obligated himself personally to pay on de-
mand for the additional $1,000,000 of the pre-
ferred stock of this company issued to him and
his associates: and
"Whereas, the aforesaid agreement was enter-
ed into on or about the 7th day of January,
1910, and it appears from the statements of the
vendors to this company (other than Mr. Sully
and Mr. Rogers) of the said National Cotton
Improvement Company's stoc^, who were pres-
ent at this meeting, that no sales of this com-
pany's stock have been effected, and that all
efforts put forth by said vendors to effect such
sales have thus far failed; and
"Whereas, the said vendors present hereat are
unable to state definitely when any sales can
be effected by them under said agreement ; and
"Whereas, the said John P. Miller has receiv-
ed the offers made by each of the vendors afore-
said embodied in letters read to this board:
"Resolved, that it is to the interest of the
General Cotton Securities Company that it ac-
cede to the request of the said vendors, and thus
enable the said vendors to meet the demand of
the said John P. Miller for the return of the
National Cotton Improvement Company's stock
aforesaid, and that a refusal on their part in
their opinion will inevitably precipitate a long
and expensive litigation, and otherwise compli-
cate and disastrously affect the affairs of this
company.
"Resolved, further, that this company hereby
accepts the offer of the vendors to rescind the
contract aforesaid and to return to it the bal-
ance of this company's capital stock, available
for this purpose, to wit, $2,905,100 of common
stock of said company and 21,400,000 par value
of its preferred stock, which, together with the
preferKd stock already returned, constitutes the
entire stock outstanding under said contract, less
48 shares held by the directors and ofScers of
the company, and that the certificates for all
of said shares of this company, except the di-
rectors' shares, be and they are hereby called in
and canceled.
"Resolved, further, that the treasurer and sec-
retary of this company be and they are hereby
authorized and directed to return the shares of
the capital stoc^ of the Naticmal Cotton Im-
provement Company and the certificates there-
for in accordance herewith, and to cancel on the
books of this company the aforesaid shares of
this company, except the 49 shares of common
stock which are not available for this purpose,
and to take such other and further action in the
premises as may be necessary or proper.
"Resolved, further, that this company execute
by its pro^r officers an assignment of all of
its ri|ht, title, and interest in and to any ap-
plications of J'ohn R. Fordyce for claimed im-
provements upon the Doremus gin to National
Cotton Improvement Company, the owner of the
said original patents, to whom same under the
circumstances and in equity and good faith be-
long: Provided, the said National Cotton Im-
provement Company pays to this company, by
way of reimbursement, tbe expenses incurred by
it or its officers incident to toe preparation, fil-
ing, and assignment of said applications, not,
however, to exceed the sum of $165.
"Resolved, that in addition to any other notice
that may be required by the foregoing action,
that notice of the cancellation of the certificates
of the capital stock of this company be given
by the trpasurer to the United States Trust
Company, Washington, D. C, being certificates
A-6 for 4.000 shares of the preferred stock of
said company, and A-7 for 10,000 shares."
On tbe day foUowlDg tbe meeting of tbe
directors Just referred to Mr. Hammond left
Xew Tork on a trip to Rus.9la. After his re-
turn to America, Willard D. Doremus and
Addison O. Du Bols filed a MU of complaint
against him, the National Cotton Improve-
ment Company, Daniel J. Sully, Frank S.
Bright, John P. MUler, and the United States
Trust Company, on the 3d of Mardi, 1911, in
the Supreme Court of the District of Colum-
bia. The bill is a lengthy one, covering 16
pagea of the printed record, and it Is only
necessary in this case to set out the prayers
for relief, which .were as follows :
"2. That the court pass a decree herein di-
recting the defendants Daniel J. Sully and
Frank S. Bright to deliver to the plaintiff Wil-
lard D. Doremus trust certificates Nos. 4, 5, 6,
7, 8, 9, and 10, representing the shares of com-
mon stock of the General Cotton Securities Com-
pany, and deliver to Addison G. EKi Bois trust
certificates Nos. 12, IS, 16, and 17, representing
the shares of c<»nmon stodf of the General Cot-
ton Securities Company.
"3. That the court pass a decree herein di-
recting the defendants John Hays Hammond,
Danid J. Sully, and Frank S. Bright, upon the
presentation and delivery to them of the trust
certificates of beneficial interests Noa. 4 to 10,
inclusive, and 12, 13, 16, and 17 by tbe plain-
tiff, to deliver to said plaintiffs the common stock
represented thereby.
4. Tliat the court pass a decree herein au-
thorizing and directing the United States Trust
Company to forthwith deliver to the plaintiff
Doremus, out of the 10,000 shares of preferred
stock now in its possession, 5,000 shares, and
to tbe plaintiff Du Bchs 2,500 shares;
"6. That the defendant the National Cotton
Improvement Company be enjoined pendente lit*
and permanently from entering into any oon-
tract of any lund or description with any one
in relation to the Doremus patents or any im-
Cvements thereon, or transferring upon iti
ks any stock that now stands in the name of
John P. Miller, trustee.
"6. That the defendant John P. Miller be en-
joined pendente lite and permanently from en-
tering into any contract of any kind or descrip-
tion with any one in relation to the stock now
in his possession and standing on the books of
the National Cotton Improvement Company in
the name of John P. Miller, or John P. MUler,
trustee, and that the oourt pass a mandator
order in this cause demandinK that John P.
Miller forthwith return to the lawful treasurer
of the General Cotton Securities Company all
the stock, or the certificates for shares of stock,
of the National Improvement Company, received
by him from the treasurer, or any other officer,
or the Generol Cotton Securities Company, ei-
ther previous to or subsequent to the 23d day
of November, 1910, and to assign or reassign
any patents or applications for patents in rela-
tion to any improvements made upon the cotton
gin conceived by the Thomas Fordyoe Manufac-
turing Company or John R. Fordyce, and as-
signed by Fordyce, or the Fordyce Manufactur-
ing Company, to the General Cotton Securities
Company."
Daniel J. Sully answered tbe bill on be-
half of the National Cotton Improvenaent
Company as Its first rice president, in which
all of tbe allegations of the bill were admit-
ted. The Supreme Court held that Mr. Sully
"was the Instigator of the suit, that be was
made a party defendant to conceal the same,
and to make use of whatever advantage the
act afforded the plaintiff by his position as
defendant," and on the 27th of November,
1911, entered a decree dismissing the bill.
The plaintiffs appealed to the Court of Ap-
peals of the District of Columbia, and ob-
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tained a reversal of the decree of tbe Su-
preme Court. In disposing of the case on
appeal, Chief Judge Shepard said :
"The court below wbs right in holding that no
juriadiction had been acquired of the National
Cotton Improvement Company by the service of
the process in this case. * • * The answer
for said corporation, purporting to have been
filed by Daniel J. Sully as vice president, did
not have the effect to bring the corporation be-
fore the court. The corporation had a presi-
dent, as well as a vice president; and, without
pausing to consider whether Sully was actually
Its vice president at the time, it does not ap-
pear that he had any authority as such officer
to enter its appearance, or answer for it in this
suit Ambler v. Archer, 1 App. D. C. Mr-106.
It does not seem that it was to its interest to
appear voluntarily. On the contrary, its an-
swer would seem to have been filed by Sully in
the interest of tbe plaintiffs. Tbe entire rec-
otH of the case furnishes an example of corpo-
rate formation, stock watering, and manipula-
tion that is made possible by tbe character of
the corporation laws in force in many of the
states, as wdl as by the absence of restraining
legislation in the Ihstrict of C<^umbia. Assum-
ing, what may reasonably be inferred from the
drcnmstances in evidence, that Sully stimulated
this litigation, desiring thereby to accomplish
some purposes of his own, it does not follow that
plaintiffs shall lose any subetantial rights they
may be entitled to under the allegations of their
bill. It remains to be inquired what these are,
if any, and if they may be adjudicated in the
S resent proceeding with tbe parties properly
efore tbe court. So far as inquiry into the
corporate proceedings of the General Cotton Se-
cnntiea Company, looking to tbe correction of
its minutes, and the legality of its election of
directors and other officers, is involved, that
corporation is a necessary party. But, being
a foreign corporation, if it were a party, the
courts of this jurisdiction would have no power
to control its internal affairs and the adminis-
tration of its corporate functions. Clark v.
Mutual Reserve Fund Life Ass'n, 14 App. D.
C 154-175, 43 L. K. A. 390; Barley v. Git-
tings, 15 App. D. C. 427-^43. It does not ap-
pear that the administration of the internal cor-
porate affairs of the National Cotton Improve-
ment Company is necessarily involved, nor
would It be a necessary party to a mere deter-
mination of the right to the ownership of its
capital stock as between rival claimants thereof,
if such were the object of this suit. • • •
Whatever 'rights the plaintiffs may have are nar-
roiwed to the ownership of the shares of the
General Cotton Securities Company held in
tmst by the United States Trust Company, as
against John P. Miller. Said Miller is a neces-
sary party to this determination; and whether
aa against him the plaintiffs are entitled to a
decree determining the question of ownership
is a question that cannot be considered because
Miller is not before the court It was error to
dismiss the bill because of the belief that Sully
bad instigated it against the other defendants.
Tlie decree will therefore be reversed, and the
cause remanded, whereupon the plaintiffs may
bave it retained for a reasonable time for an
opportnnity to obtain service of process upon
Joiin P. Miller, and to amend their bill, if so
advised."
After tbe case was remanded to the Su-
preme Court, Mr. Justice Anderson, In dis-
posing of it, said :
"This is a suit by Willard D. Doremns and
Addison G. Dn Bois. seeking certain injunctive
relief against John P. Miller, and further seek-
ing to have delivered to the plaintiffs by the
other defcndnnts certain certificates for shares
of common stock and preferred stock in the
General Cotton Securities C<»apany, which cer-
tificates are located within this district and are
claimed to belong to the plaintiffs. The case
came on for final hearing before Mr. Justice
Wright, and a decree was entered dismissing
the bill. An appeal was prosecuted from such
decree, and the Court of Appeals reversed the
same, remanding the case for further proceed-
ings upon tbe sole question of the ownersbip
of said certificates of stock as against John P.
Miller. The Court of Appeals said: 'Whatever
rights the plaintiffs may have are narrowed to
the ownership of tbe shares of the General Cot-
ton Securities Company held in trust by tbe
United States Trust Company, as against John
P. Miller. Said Miller is a necessary party to
this determination, and whether as against him
the plaintiffs are entitled to a decree determin-
ing uie question of ownership is a question that
cannot he considered because Miller is not be-
fore the court.' 41 W. U R. 8. The Court
of Appeals further said, in overruling the mo-
tion for rehearing: 'Whatever may be the con-
cession regarding the ownership of this stock
by the other defendants, who moreover have no
interest therein, there is and could be no conces-
sion by Miller who was never a party to this
case.' At that time Miller had not been brought
into the case, either by personal service or pub-
lication. Since the case was remanded, service
by publication has been obtained against Miller,
and a decree pro confesso entered, and subse-
quently made absolute, against him. The case
is now submitted to the court for the entry of
a final decree directing the delivery of the cer-
tificates claimed by the plaintiffs. In this situa-
tion, the Court of Appeals having held that tbe
other defendants have 'no interest therein,' and
having remanded the case for the sole purpose
of determining the ownershijp of said shares 'as
against John P. Miller,' this court, in view of
Miller's default and the pro confesso against
him, must necessarily enter a decree directing
the defendants to deliver to the plaintiffs the
certificates for common and preferred stock in
the General Cotton Securities Company as
claimed by them. Whether the Generol Cotton
Securities Company will recognize them when
presented for transfer, in view of their suppoih
ed cancellation, is a question with which this
court can have no concern, and can only be de-
termined in the proper forum in a proceeding in
which said company may be made a party. A
decree will accordinffly be entered, directing the
defendants to deliver to the plaintiffs the certifi-
cates for stock in tbe General Cotton Securitiea
Company as claimed."
In accordance with this opinion the Su-
preme Court on the 2d day of June, 1913,
passed the following decree:
"This cause came on for final hearing thia
term and was duly argued by counsel, and it ap-
pearing to the court that tbe complainants are
entitled to the relief sought by the bill of com-
plaint filed in this cause, and thereupon, and
upon consideration thereof, it is this 2d day of
June, 1918, adjudged, ordered, and decreed that
the defendants Daniel J. SuUy and Frank S.
Bright be and tbey hereby are Jointly and sev-
erally commanded to deliver to the complainant
William D. Doremus, or to his attorney, trust
certificates Nos. 4, 5, 6, 7, 8, 9, and 10, repre-
senting respectively shares of common stock of
the General Cotton Securities Company, and to
Addison G. Du Bois trust certificates Nos. 12,
l.S, 16, snd 17, representing respectively shares
of the common stock of the General Cotton Se-
curities Company, such delivery to be made by
said defendants to said complainants, or to their
attorneys of record, within 10 days from the date
of the execution of this decree. And it is hereby
further adjudged, ordered, and decreed that the
defendants John Hays Hammond. Daniel .T. Sul-
ly, and Frank S. Bright be and they hereby are
commanded to deliver to the complainants re-
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101 ATLANTIC RBPOBTER
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spectively, or to their attorneys of record, the
number or shares of common stock of the Gen-
eral Cotton Securities Company held by them as
voting trustees, as are represented by trust cer-
tificates Nob. 4, 5, 6, 7, 8, 9, and 10, and trust
certificates Nos. 12, 13, 16, and 17, or, if all of
the common stock in said defendants' hands are
embraced in one certificate, then and in that
event said defendants, and each of them, are
hereby commanded to execute a proper assigni-
ment to each of the plaintifts for the number of
shares of common stock of said General Cotton
Securities Company as are represented by the
trust certificates aforesaid, and attach to said
assignment the certificates of stock held by
them, and a certified copy of this decree, and
deliver the said assignment and decree to the at-
torneys of record for the complainants, with a
letter addressed to the General Cotton Securi-
ties Company, duly signed by said defendants,
authorizing and directing said company to trans-
fer on its books the number of shares represent-
ed by the assignment and shown hj this decree
that the complainants are respectively entitled
to, and to issue and deliver to said comnlain-
ants, or their assigns, new stock certificates
therefor, said delivery to be made within 10 days
after the presentation to said defendants, or to
their attorneys of record in this cause, by the
complainants, respectively, of the trust certifi-
cates herein mentioned. It is hereby further
adjudged, ordered, and decreed that the defend-
ant the United States Trust Company deliver to
the said complainant Willard D. Doremus five
thousand (5,000) shares, and to the said com-
plainant Addison G. Du Boia twenty-five hun-
dred (2,500) shares of the preferfjed stock of the
General Cotton Securities Company heretofore
placed in its possession as trustee by the defend-
ant Daniel .1. Sully, or, should the shares of pre-
ferred stock of the General Cotton Securities
Company held by it be embraced in a certificate
or certificates of such denominations that it is
impracticable to perform this command, then
and in that event said defendant be and it is
hereby commanded to execute a proper assign-
ment to the complainants, respectively, for the
number of shares of said stock as they by this
decree are respectively entitled to, and said de-
fendant is hereby further commanded to attach
thereto such certificates of said preferred stock
as may be necessary, and to accompany same by
a letter addressed to the General Cotton Securi-
ties (Company, such letter to be signed by its
proper officers, with the request, authorization,
and direction that said General Cotton Securi-
ties Company transfer on its books five thou-
sand (5,()00) shares of said preferred stock to
Willard D. Doremus and twenty-five hundred
(2,500) shares to Addison G, Du Bois, or their
assigns, and to issue to and deliver to them, or
their assipiS, new certificates therefor, and re-
turn to It (the defendant the United States
Trust Company) a certificate for the shares re-
maining after making such transfer. And said
defendant is hereby directed to deliver such as-
signment or assignments, together with the nec-
essary certificates of stock and the letter herein
provided for, to the complainants' attorneys of
record, such delivery to be made within 10 days
from the date of the execution of this decree,
nie costs in this court will bo taxed, one-halt
Hgainst the plaintiffs, and one-hnlt against de-
fendants Hammond, Sully, and Bright."
On the 16th of June, 15)13, Mr. Gittlngs,
counsel for Mr. Du Bols and Mr. Doremus,
dellvorod to .Tohn I* Lordan, a member of
the bar of New York City, a certificate la-
sued by Ralph Polk Buell, president of the
(Jeneral Cotton Securities Company, to John
Hays Hammond, Daniel J. Sully, and P. S.
Bright, TOtlng trustees, for 28,965 shares of
the common capital stock of said ompany,
and the following letter:
"Washington, D. O., June 4, 1913.
"Transfer Officers, General Cotton Securities
Company, a Delaware Corporation : Under aod
by virtue of a decree passed on the 2d day of
June, 1913, by the Supreme 0>urt of the Dis-
trict of Columbia, in cause Equity No. 30,002,
entitled Willard D. Doremus and Addison G. Du
Bois against National Cotton Improvement
Company and others, a certified copy of which
decree is hereunto attached, we, the under-
signed, as voting trustees, out of the 29,965
shares of the common stock represented by cer-
tificate No. 14, General Cotton Securities Com-
pany, in the name of John Hays Hammond,
Daniel J. Sully, and F. S. Bright, voting trustees,
which certificate is hereunto attached, assign and
transfer unto Willard D. Doremus, or his as-
signs, four thousand five hundred and fifty (4,-
650) shares, and unto Addison G. Du Bois, or
his assigns, two thousand two hundred and sev-
enty-five (2,275) shares, and we do hereby irrev-
ocably constitute and appoint attor-
ney, to transfer the said stock on the books of
the said company, with full power of substitn-
tion in the premises; and we do hereby author-
ize and direct the said General Cotton Securities
Company to transfer the aforesaid shares on the
books of the company to the persons above nam-
ed, and to issue and deliver to them, or their as-
signs, new stock certificates therefor.
"John Hays Hammond,
"Prank S. Bright,
"D. J. SuUy, Voting Trustees."
He also delivered to Mr. Lordan a copy of
the decree of the Supreme Court of the Dis-
trict of Columbia, a certificate Issued by
John Hays Hammond, president of the Gen-
eral Cotton Securities Company, March 4,
1910, to Daniel J. Sully, syndicate manager,
for 10,000 shares of the preferred stock of
the said company, and the following letter
from the secretary of the United States Trust
Company of Washington:
"United States Trust Company.
"W^ashington, D. C, June 13, 1913.
"General Cotton Securities Company, 71
Broad Street, New York City — Gentlemen : Pur-
suant to the terms of a decree of the Supreme
Court of the District of Columbia, passed on
June 2, 1913, in the case of Willard D. Doremus
et al. V. John Hays Hammond and others, Equi-
ty 30002, we are inclosing you herewith certifi-
cate A-7 for 10,000 shares of the preferred cap-
ital stock of the General Cotton Securities
Company, with a request, authorization, and di-
rection, as provided in said decree, that you trans-
fer on your books 5,(X)0 shares of the said pre-
ferred stock called for by said certificate to Wil-
lard D. Doremus, and '2,500 shares to Addison
G. Du Bois, or their assigns, and to issue and
deliver to them, or their assigns, new certificates
therefor, and return to this company^ a new cer-
tificate for 2,500 shares, to be issued in the name
of Daniel J. Sully, syndicate manager. We are
advised by the attorneys in the case that Mr.
Sully, in whose name this certifirate is made,
will indorse inclosed certificate, so as to enable
you to make the transfer hereinbefore requested.
"Very truly yours, J. H. Borden, Secretary."
Mr. Lordan took the certificates, letters,
and copy of the decree to Mr. Campbell, secre-
tary of the General Cotton Securities Com-
IMny, who was In the ofllce of Mr. John Hays
Hammond, and asked him to transfer the
stock in accordance with the letters annexed
to the certificates. Mr. Campbell told him
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HAMMOND V. DU BOIS
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that the books of the company were not In the
office, but had been sent to the resident agent
In Wilmington, Dei, and that he could not,
therefore, make the transfer, and declined to
take the certificates. Mr. Lordan then went
to see Mr. Atherton, treasurer of the Gen-
eral Cotton Securities Company, on the 17th
of June, and presented the certlHcates, let-
ters, and copy of the decree, and requested
him to make the transfer of the stock. Mr.
Atberton, according to Mr. Lordan's testi-
mony, told him that he had no authority to
do so, that the books were in the office of
Mr. Baldwin, the attorney for the company,
and that be would not make the transfer,
unless he received instructions to that effect
from the attorney. Mr. Atherton testified
that, when Mr. Lordan presented the certlH-
cates of stock, etc., some time In July, he
told Mr. Lordan that he could not transfer
the stock ; that, In the first place, he did not
have the stockbooks in his possession, and
did not know where they were, and, in the
second place, the certificates would neces-
sarily have to be signed by Mr. Hammond,
and that Mr. Hammond was out of the city,
and In the third place, that he would not
transfer the stock without the advice of
counsel. He further testified as follows:
"Have yoD had any experience in corporati<»i
affairs? A. Yes, sir. Q. And you say you told
him that you would not transfer the stock, even
if the certificates were signed by the president,
widiont the advice of counsel? A. Yes, sir. Q.
What, if anything, did Mr. Hammond do or say
to you along about that time to prevent or influ-
ence your action in the transferring or nontrans-
f erring of that stock? A. Nothing whatever. I
had not seen Mr. Hammond."
After bis interview with Mr. Atberton, Mr.
Ijordan received the following letter from
Mr. Baldwin, dated July 31, 1913:
"John J. Lordan, Egq., 115 Broadway, New
ToA City — Dear Sir: I have been unable so far
to get any instructions as to the transfer of the
certificates of the General Cotton Seeuritien
Company, but have advised the company that,
in my opinion the stock having been lawfully
canceled, the certificates therefor are void. Re-
gretting tlie delay, which I trust has not incon-
venienced you, in replying to your correspondent,
I remain,
"Very truly yours,
"Wm. Woodward Baldwin."
Mr. Hammond stated in his testimony that
the certificate had never been presented to
him and that he had not been requested to
transfer the stock. At the time of the de-
mand made upon Mr. Oampbell and Mr.
Atherton, he was at his home in Gloucester,
Mass., and he did not hear anything of It
until some time thereafter, when he heard
of it through Mr. Baldwin-, tliat he merer
gave Mr. Baldwin any instractions In refer-
ence to the matter, and, when he heard of
Mr. LoTdan's request throagh Mr. Baldwin,
he said to Mr. Baldwin, "Well, now, Bald-
win, this is a legal question, and it is up to
you as attorney of the cwupany." When he
was asked what he meant by saying that it
was a legal question, he said that on No-
vember 23, 191Q, the stock had been called in
and canceled at the meeting of the board of
directors of that date; that he knew, as a
business man that It would be dishonest for
him to sign certificates of fully paid up
stock when the conslderatlcm for that stock
bad been returned to Mr. Miller, and when
the stock represented no assets. "In other
words, . I would be committing fraud, and
certainly should not have done it, unless I
had the very best legal advice, or possibly
even an order of the court, to protect my-
self." It further appears that there had
never been any meeting of the directors of
the General Cotton Securities Company after
the meeting of Novemiber 23, 1910. At that
time aU of the stock of the National Cotton
Improvement ' Company, which represented
the patent rights to the Doremus invention of
the cotton gin and improvonents thereon,
and which represented the only assets of the
General Cotton Securities Company, was
turned over to Mr. Miller, and the stock of
the latter company had been declared cancel-
ed by the board of directors. Mr. Ham-
mond, in 1913, had no Interest In the Na-
tional Ootton Improvement Company, and
had upon his return from Russia In the early
part of 1911 resigned as the president of
that company.
On the 21st of May, 1916, Addison G. Da
Bois brought this suit in the superior court
of Baltimore City against John Hays Ham-
mond. The declaration alleges:
That the plaintiff was, on the 23d day of
November, 1910, lawfully in possession of a
certain certificate or certificates representing
2,500 shares of the preferred stock of the Gen-
eral Cotton Securities Company and 2,275 shares
of the common stock of said company. That be
on said day lost said stock, and that the same
came into possession of the defendant by finding.
"Yet, defendant, well knowing the said certifi-
cates to be the property of the said plaintiff and
rightfully to belong and appertain to him, but
contriving and fraudulently intending craftily
and subtly to deceive and defraud the plaintiff
in this behalf, has not as yet delivered said cer-
tificates to the plaintiff, although often so re-
quested to do, and has hitherto wholly refused
so to do; and afterwards, to wit, on or about tiie
23d day of June, 1913, at the place aforesaid,
converted and disposed of said certificates of
stock to his own use. Wherefore the plaintiff
says he is injured and has sustained damages
to the amount of $477,500. Wherefore the
plaintiff brinrs this snit and claims damaftes in
the sum of .?477.500, exclusive of all interest and
costs of this suit."
The second count of the declaration, which
was filed on the 21st of November, 1916, Is
substantially the same as the first. The de-
fendant pleaded that he did not commit the
wrong alleged, and also filed a special plea,
to which reference need not here be made.
To the second count the defendant pleaded
the general issue plea, the plea of limita-
tions, and a further plea to which it is
imnecessary to refer. The trial of the case
in the superior court, which apparently ex-
tended over a period of several weeks, and
the record of which contains between 1,500
and 1,600 printed pages, resulted In a ver-
dict for the plaintiff for |238,760, which
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was reduced by the court to $123,775, for
whicli amount tbe Judgment from which this
appeal Is taken was entered in favor of the
plaintiff.
The record contains IB exceptions, the
last one of which relates to the ruling of
the court on the prayers. The court below
granted the plaintiff's second prayer, as fol-
lows:
"The jury are instructed aa a matter of law
that the plaintilTa title to the stock mmtioned
in the declaration ia settled by the decree of the
Supreme Court of the District of Columbia in
Equity cause 30002, and when the plaintiS pre-
sented the decree of said court, defendant's let-
ter, and said crtodc to the proper officers of the
corporation for transfer (if the jury so find),
then he had the right to have it transferred on
the cort>oratlon books to his name, and certifi-
cates for his shares iasued to him, and if the
jury find, from the whole evidence^ the defendant
personaliy, or by his agents or attorney, pre-
vented that being done, defendant was guil^
of a conversion of said stock, and their verdict
should be for plaintiff."
The court rejected the prayers of the de-
fmdant, asserting that the plaintiff had of-
fered no legally sufficient evidence, under
the pleadings of any conversion by the
defendant of the certlflcates of stock or
shares of stock of the General Cotton Se-
curities Company mentioned in the declara-
tion, and that the verdict of the jury should
therefore be for the defendant.
[1-4] The primary and important Question
to be determined Is, therefore, whether the
record contains any legally sufflcient evi-
dence of a conversion by the defendant of
the sto<^ mentioned In the declaration. In
considering this question it Is necessary to
keep in view the precise nature of the in-
quiry. In the case of Dletus v. Fuss, 8 Md.
148, the court used this language:
"Before expressing an opinion in reference
to the plaintiff's third prayer, it is proper to no-
tice some of the principles relating to the sub-
ject of conversion, for the action of tro%-er can-
not be maintained without a conversion. It
may be either direct or constructive, and tJiere-
fore may be proved directly or by inference.
When the iplaintiff fails in proving an actual
conversion, it will be necessary for him to give
evidence of a demand and refusal having been
made at a time when the defendant had the
power to give up the goods. A demand and ro-
lusnl are only evidence of a prior oonversicm,
which may be explained and rebutted bgr evidence
to the contrary. 2 Greenl. Ev. {( 642, 644;
Edwards v. Hooper, 11 Mees. ft Wels. 363."
[I] In the case of Manning r. Brown, 47
Md. 606, Judge Alvey said:
"There is nothing in the facta stated, and
which have been found by the jury, that would,
in the least, justify a pretension that there had
been any such conversion of the personal effects
of the plaintiff as would entitle him to recover
under tiie first count of bis declaration. Ther«
was no evidence whatever of any intention on
the part of the defendants either to take to
themselves the property in the goods, or in any
manner to deprive the plaintiff of them. To
entitle him to recover on the count in trover,
such proof would have been required. EHetus v.
Fuse, S Md. 148; Simmons v. Lillystone, 8
Kich. 431, 442 ; Bnrroughes v. Bayne, 5 H. ft
N. 2«6; Pillot v. Wilkinson, 2 H. ft Colt 72."
In the case of Balto. Marine Ins. Co, v.
Dalrymple, 25 Md. 269, the court said:
"In the case last cited [Eidwards v. Hooper, 11
M. ft W. 302] the plaintiff's assignee ia bank-
ruptcy relied on a demand and refusal as tlie
ground of their action, the conversion harin;
taken place before the fiat in bankruptcy, it
was held the suit could not be maintained.
Parke, Baron, said: 'If the goods were in pos-
session of the defendants, a demand and refusal
would be evidence of a conversion. But it ia
not so in a case where the goods hare been
previously parted with by sale. There cannot
be an effectual demand and refusal unless the
party has at the time possession of the gooda
and has the means of delivering them up.' In 2
Greenl. Ev. i 644, the effect of a demand and
refusal is correctly stated, and many caaoi
cited. In Dietus v. Fuss, 8 Md. 158, the case in
11 M. ft W. 362, and the sections of Oreenleaf
on this subject were cited and approved. It
follows from these authorities that the demand
and refusal in this case could have no effect ei-
titer is giving to the plaintiff a right of action,
or to fix the measure of damages."
In a more recent case of Mercdiants' Bank
r. Williams, 110 Md. 334, 72 Aa 1114, Judge
Burke, speaking for this coort, said:
"Conversion, in the sense of the law ot trover,
consists either in the appropriation of the prop-
erty of another, or in its destruction, or in ex-
ercising dominion over it in defiance of die
owner's rights, or in withholding the possession
from him under an adverse claim of title, and all
who aid, command, assist, or participate in tbe
commission of such unlawful acts are liable. In
this case the bank, accepting for its own benoSt,
the stock from Wilson Colston ft Co., with notice
of their want of authority to hypothecate, be-
came by that act jointly liable with that firm for
the conversion of the plaintiff's goods, which took
place on the 17th of September, 1907."
In the case of Smith r. Young, 1 Camp,
439, Lord EUeniboroagh said:
"The defendant would have been guilty of a
conversion if it had been in his power; but the
intention is not enough. There must be an
actual tort. To make a demand and refusal suf-
ficient evidence of a conversion, the party, when
he refuses, must have it in his power to doUver
up or to detain the articles demanded."
[6] Applying these principles to the facts
In this case, it is apparent that there is not
tlie slightest evidence of the conversion of
the stocks in question by Mr. Hammond on
the 23d day of June, 1913. So far as the
evidence discloses, the booka of the General
Cotton Securities Company were not in his
possession or in the possession of Ills agents.
No demand was made upon him to transfer
the btock, and according to the uncontradict-
ed evidaice be bad no knowledge of the de-
mand upon Mr. Atherton and Mr. Campbell
until long after it was made, and be had
never given them any instructions in refer-
ence tliereto. There ia evidence tmdlng to
show that Mr. Campbell was ahao employed
by Mr. Hammond; but the demand made up-
on him was made upon him as tlie secretary
of the General Ootton Securities Company,
and he declined to make the transfer, except
under advice of counsel for the company.
Mr. Baldwin, to whom Mr. Hammond bad
given no instructions in reference to the mat-
ter, wrote Mr. Lordan that be Iiad been un-
able to get any instructions as to the trans-
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CKOMWELI, T. CHANCE MARINE CONST. CO.
623
fer of the 8tock,"but that he had advl&ed the
rampany that In his opinion, the stock hav-
ing been lawfully canceled, the certificates
therefor were void. The fact that Mr. Gamp-
bell was also employed by Mr. Hammond,
and that Mr. Baldwin was also counsel for
Mr. Hammond, would not justify an infer-
ence that in what they did and said they
acted as the agents of Mr. Hammond, and not
as the secretary and counsel of the company,
when the eridence is to the effect that they
were not approached as the agents of Mr.
Hammond, and that Mr. Hammond had no
knowledge of the alleged demand, and gave
no instructions to either of tbem in reference
to the transfer of the stock.
[7] It is true a principal may, by bis sub-
sequent ratification or acquiescence, become
liable for the nnauthorized nets of hlis agents:
bnt this principle presupposes that the act
complained of was the act of one as the
agent, or on behalf of the principal. In this
case there Is no proof to warrant the view
that. In what Mr. Baldwin, Mr. Campbell,
and Mr. Atherton did, or refused to do, they
acted as the agents of Mr. Hammond, be-
cause, as we have said, the evidence shows
that he had given them no instructions in
reference to the matter, and they were only
called upon to act as the officers of the com-
pany.
[•] The court below, in granting the plaln-
tlfTs prayer, proceeded upon the theory, and
the learned counsel for the appellee contend
in this court, that the decree of the Supreme
Goart of the District of Colombia determined
the plaintiff's right to a transfer of the stock
on the books of the General Cotton Securities
Oompany. But it is obvious that the decree
could not have that effect, and that the learn-
ed Judge of that court did not intend so to
decree. The Qeneral Cotton Securities Com-
pany was not a party to that suit, and no
decree could havie been passed affecting its
Interests. It Is not necessary in this case
to determine wbetber this court can properly
pass upon the legality of the proceedings of
the board of directors of the General Cotton
Securities Company on the 28d of November,
1910. Tlie only question here involved is
whether the conduct of Mr. Baldwin, Mr.
Oanipbell, and Mr. Atherton amounted to a
conrerslon of the stock by Mr. Hammond. If
{be demand had been made upon Mr. Ham-
mond, as' the president of the company, to
transfer the stock, It might be questioned
whether. In view of the resolution of the
board of directors of the company, he would
have been authorized to make the transfer
without some previous action of or authority
from the board of directors.
Among other cases dted and relied on by
the appellee is the case of Travis v. Knox
Terpezone Co.. 215 N, Y. 259, 109 N. E. 250,
L. B. A. 1916A, 542, Ann. Cas. 1917A, 387.
It may be noted, however, that In that case
that the defendants Rogers and Skinner, who
were the president and treasurer of the cor-
poration. Joined with the defendant company
in a formal refusal to transfer the stock. In
this case there was no demand made upon Mr.
Hammond, and no refusal on bis part to
make the transfer desired.
It follows, from what has been said, that
the plaintiff l>elow failed to make out a case
of a conversion of the stock In question by
Mr. Hammond, and the Judgment of the court
below must therefore be reversed, without
awarding a new trial.
Judgment reversed, with costs, without
awarding a new trial.
(Ul Md. 105)
CROMWELL T. CHANCE MARINE CONST.
CO. (No. 30.)
(Court of Appeals of Maryland. Jane 27, 1917.)
1. Sales «=s398 — Rememes or Bdter — Rii-
COVERT OF PUBCHASE PRICE — QUESTION FOB
JUET.
In action by buyer to recover the purchase
price of a motor boat alleged to be of no use or
value, evidence held to present a Jury question.
2. Trial ^=>143 — Questions fob Jubt —
Weight of Evidence.
The comparative weight of evidence is ex-
clusively a jury question.
3. Tbial «=»139(1) — Questions fob Jubt —
Weight of Evidence.
Where there is any evidence competent, or
of sufficient probative force, to support plaintiffs
case, the weight and sufficiency of such evidence
should be left to the jury.
4. Monet Received «=3l—A8suirFsiT— Right
OF Action.
In assumpsit for money had and received,
plaintiff may recover from defendant any money
beloneing to him obtained from him through
mistake, fraud, or deceit; and such action lies
to recover money in possesion of defendant
which in justice, an4 good conscience bdongs to
plaintiff.
5. Monet Received «=»17(3) — Assxthpsit-— f
Issues.
In assumpsit to recover money had and re-
ceived, the defendant, under the general issue,
may rely upon any. just ground of defense that
tends to show he was not bound to pay it.
Appeal from Circuit doart, Anne Anmdd
Ck>naty; Jas. R. Brashears, Judga
"To be officially reported."
Assumpsit by James P. Cromwell against
the Chance Marine Construction Company.
Judgment for defendant, and plalntlfl appeals.
Reversed, and new trial granted.
Argned before BOYD, C. J., and BRISCOE,
BURKE, THOMAS, PATTISON, URNER,
and CONSTABLE, JJ.
Eugene P. Cbilds, of Annapolis, tor appel-
lant. Robert Moss, of Annapolis, for ap-
pellee.
BRISCOE, J. The controversy in this case
is over the sale of a motorboat. The declara-
tion is in assumpsit, upon the usual common
counts. The defendant pleaded the genera]
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101 ATIiANTlO REPORTBE
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Issue pleas, and, the trial In the conrt below
resulting In a judgment for the defendant,
the plaintiff brings this appeal.
At the trial a single exception was taken,
and that was to the ruling of the court, at the
close of the plaintiff's testimony. In granting
the defendant's prayer, wlthdrawlrxg the case
from the consideration of the Jury, and di-
recting a verdict for the defendant The sole
question presented, on the appeal, Is whether
the court below committed an error In grant-
ing the .defendant's prayer, and this requires
a review of the evidence disclosed by the
record. The record Is a short one, and there
were only two witnesses examined in the
case. The testimony Is somewhat brief, and
the plaintiff's testimony Is the only material
evidence in the case.
It appears that the plaintiff, who resides
npon the Severn river, in Anne Amndel coun-
ty, some time In the year 1916, purchased of
the defendant a motorhoat for the sum of
$375. Prior to the contract of sale. It was
agreed that a small engine, whldi was then
In the ttoat, should be removed, and what was
called a Hubbard engine was to be Installed
In Its i^ace. It further appears that on the
25th of February, 1916, the plaintiff paid the
sum of $210 on account of the boat and en-
gine, but with the understanding that. If a
Hubbard engine was not put In It, he did not
want it The following letter, Introduced as
evidence in the case, shows the contract and
understanding between the parties:
The Chance Marine Construction Company,
Designers and Builders of Boats.
OflSce and Shipyard, S«vem Avenue, Eaatport,
Md.
Annapolis, Md., Feb. 23, 1916.
Mr. 3. H. Cromwell, Forrest and Front St.,
Balto„ Md.— Dear Herbert: Confirming tele-
phwie conversation with you regarding the
CauRby boat, will say that we will let yon have
the boat at $376 as per your request. As you
understand, tiie hall does not belong to us. We
will ask yon for your check for $210. We will
then take the engine out and put in the 12 H. P.
Victor motor in its place. The balance payable
when the boat is delivered. You will under-
stand Uiat we conid not make any change in the
boat until it is paid for, as the money has to be
turned into the estate of the owner.
Tours very truly, ' Caryl H. Bryan.
On the 25th of February, 1916, the plaintiff
replied to the foregoing letter, as follows:
Homestead Park Product Company, Forrest and
Front Streets.
Baltimore, Feb. 25, 1016.
Tbe Chance Marine Construction Co., Annapo-
lis, Md. — Gentlemen: I am inclosing herewith
my check for $210 to apply on account of the
Seabury boat and engine. Your attention is
called to the fact that before I agreed to pur-
chase this outfit, or even before I made an offer
for same in your office last week, your Capt.
Baker represented this engine to be one manu-
factured by the Hubbard Motor Company, and
it was on the strength of this representation
that I made tbe above offer and finally agreed to
purchase. In the meantime I have been famil-
iarizing myself with the different parts of the
Hubbard motor, and after talking with your
Mr. Bryan this afternoon I ran across some in-
formation that led me to believe that it was pos-
sible that your motor was not a Hubbard ma-
chine, but one manufactured for the Fairbanks
Company by another concern, and with which
they have experienced a large amount of trou-
ble. I have jnst finished talking with your
Capt Baker on the phone, and he assured me
that the motor is a Hubbard, and if such is the
case all is well and good, and I want yon to
go ahead with the work as promptly as yon can;
but, on the other hand, I want you to be sure
of this fact before you do go to work on it
because, if it is not a Hubbard engine, I don't
want it as I do not care to experiment with any
engine that you or I don't know anything about
Yours very respectfully,
0. K. X H. CromweU.
The plaintiff also testified that he got tbe
boat on Thursday and returned it on Satur-
day of the same week; that when he went
after the boat there were two or three hours'
work on tbe engine before It was ready to t>o
taken away; that the boat leaked; that It
broke down on its way home before they got
to the railroad bridge; "we had to anchor
and spend an hour, and then came beck with
one cylinder, and they repaired It and wa
started out again." He further testified
That tbe defendant stated that It was a Hul>
bard engine which had been put In and In.
stalled In the boat, when It was turned ovei
to him. Upon redirect examination he was
asked the following question: "Then you did
not find out It was not a Hubbard motor nn-
til after you took the boat back?" Answer:
"Yes, sir." That be told the defendant when
he carried the boat back, that If he could
prove to him that a Hubbard engine had been
Installed In tbe boat he would take It, but
this was not done. That he made demand for
the return of the $210 before bringing the
suit, but the defendant refused to answer any
correspondence, or to return tbe money, evea
uiton a personal appeaL
[1-3] From this outline and statement of
the testimony, and it embraces all of the
material and snbetantial facts disclosed by
the record, it will be seen that the question
here presented Is a narrow one, and that is
whether the court below committed an error
In withdrawing the case from the jury by
the Instruction granted. We think the testi-
mony, as disclosed by the record, was legally
sufficient to take the case to the Jury, and
the court committed an error in granting tbe
defendant's prayer. It Is well settled by a
long line of decisions of this court that the
court has no power or authority to decide np-
on the comparative weight of evidence, but
that is exclusively tor the Jury. If there is
any evidence competent or of a suCBdent
probative force^ to sustain the proposition
sought to be maintained, or' to support the
plalntlfTs case, the weight and value of this
evidence should be left for the oonslderatioo
of the Jury. Baltimore v. Neal, 65 Md. 438, 5
Atl. 338; Jones v. Jones, 46 Md. 154; Burke
v. M. & C. of Balto., 127 Md. 660, 96 Atl. 693.
[4, s; The theory of the plaintiff's case la
that he purchased from the defendant a
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WORTHIXaTON V. MPSITZ
625
motorboat. In which there should have been
Installed a Hubbard engine, of the kind
agreed upon between the parties, and that he
paid the sum of $210 on account of the pur-
chase price, and that through the fraud of the
defendant he did not get what he bargained
for, bat, <m the contrary, the defendant de-
livered to him a boat and engine of no use
and value, and that upon this discovery he
returned it to the defendant and demanded
the money which he had paid, but the de-
fendant refused to return or to pay it bactc.
The law Is well established that In an action
of assumpsit for money had and received the
plalntlfC can recover from the defendant any
money belonging to the plaintiff, obtained
from blm through mistake, fraud, or deceit
It lies to recover money in the possession of
the defendant, which In Justice and good con-
science belongs to the plaintiff, and the de-
fendant, under the general issue, may rely
upon any just ground of defense that may
show he was not bound to pay it. Penn v.
Flack, 3 GUI A J. 370; Blair v. Blair, 39 Md.
556; Mills v. Bailey, 88 Md. 320, 41 AtL 780;
1 Poe's Pleading, 117-124.
In this case we are not prepared to hold
that there was no evidence legally sufficient to
require the case to be submitted to the Jury,
under the nndispnted evidence set out in the
record, and, for the reasons stated, the Judg-
ment must be reversed, and a new trial will
be awarded.
Judgment reversed, and a new trial award-
ed; the appellee to pay the costs.
(in Md. XM)
WORTHINGTON v. UPSITZ et al. (No. 44.)
(Court of Appeals of Maryland. Jane 28, 1917.)
1. Etidbnce ®s>473— Imfbessior Eviderob—
Admissibilitt.
An objection was properly sustained to a
question relating to a certain conversation.
What was the impression they left you under?
as it was not the impression of the witness, but
the facts and circumstances and the conduct of
the parties, which were material.
2. PSAnDS, Stathtk of ®=>158(4) — Sales —
Vekbal Contbact — Acceptance and Rx-
CBiPT— Evidence— ScynoimNCY.
In assumpsit for the purchase price of cider,
under a verbal contract of sale, evidence held
insufficient to show an actual acceptance and
receipt of the cider told, as requir^ by Code
Pub. Civ. Laws, art 83, i 25, providing that a
sale of goods of the value of 1^ or upward
will not be enforceable by action unless the
buyer accepts and actually receives' the goods
sola.
Appeal from Baltimore Court of Clommqn
Pleas; Carroll T. Bond, Judge.
"To be officially reported."
Suit by Bruce Worthington, trading as In-
terstate Fruit Product Company, against Har-
ry Lipsitz and others, trading as H. Lipsitz
&. Sous. Judgment for defendants and plain-
tiff appeals. Affirmed with costs.
Argued before BOYD, C J., and BRISCOE,
BURKE, THOMAS, TTRNBR, STOCK-
BRIDGE, and CONSTABLE, JJ.
Lewis W. Lake, of Baltimore, for appellant,
Louis S. Ashman, of Baltimore, for appellees.
BRISCOE, 3. This suit was' brought, in
the court of common pleas of Baltimore dty
to recover for a carload of cider, containing
70 barrels, valued at $476.84. The plaintiff
Is a manufacturer and broker of dders, vine-
gars and fruit products, trading under the
name of the Interstate Fvuit Product Com-
pany, with business offices in Baltimore city.
The defendants are copartners trading as
H. Lipsitz & Co., and engaged in business in
Baltimore city. The suit Is in assumpsit on
an oral contract for the purchase price of
the dder, and the dedaratlon contains the
common counts. The case was tried upon is-
sues Joined on the pleas of never Indebted
and never promised as alleged, and from a
Judgment in favor of the defendants, the
plaintifT has appealed.
In the course of the trial, the plaintiff re-
served two exceptions, one to the ruling of
the court upon testimony, and the second to
the granting, at the condusion of the plain-
tiffs evidence, of the defendants' prayers
marked "A," "B," and "C."
[1] Ibere was dearly no error in the rul-
ing of the court upon the first exception.
The witness Nowlln testified that he saw the
bill of lading, at the plaintiffs office on Tues-
day the 19th of December, 1916, and that he
had seen the defendants on a number of
occasions, that nothing was said to Indicate
that they desired to repudiate the sale, and
that one of the brothers made the remark:
"That dder is a long time getting here. The
cider season will be over by the time it gets
here, or something of that kind."
He was then asked:
"'What was the impression they left you un-
der, if any?"
The question was objected to by the de-
fendants and the objection was sustained.
The question was not a proper one, and the
impression of the witness was clearly inad-
missible. It was not the opinion or impres-
sion of the witness, but the facts and drcum-
stances and the conduct of the parties, that
be was called upon to give in evidence and
of wbldi he was competent to speak.
[2] The prlndpal and second question pre-
sented by the record for review is whether
the rulings of the court upon the defendants'
prayers were correct, and that Is whether
there was any evidence legally sufficient, un-
der the pleadings, of any valid contract be-
tween the plaintifT and the defendants' for the
purchase of the goods alleged to have been
sold. There can be no great difficulty, we
think. In regard to the well-settled prlndples
of law by which the several questions pre-
sented by the prayers are to be determined.
The controverted question In the case l!»
s>Por other e««es ■«• hub* topic and KSY-NUUBEH la all Key-Numbered DIgeiti and ladeSM
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101 ATIiANTIC BEPOKTEB
(114.
whether there was a BuflSdent receipt and
acceptance of the goods sold under the ver-
bal contract as to constitute a valid and bind-
ing sale, under the statute, and this, of
course, must depend upon the facta and cir-
cumstances disclosed by the record In the
case. By section 25, art. 83, of the Oode
(1910, c. 346) It Is provided that:
"A contract to sell or a sale of any goods
or choses in action of the value of fifty dollars
or upward shall not be enforceable by action,
anless the buyer shall accept part of the goods
or choses in action so contracted to be sold,
or sold and actually receive the same, or give
something in earnest to bind the contract, or in
part payment, or unless some note or mcmoran-
uum in writing of the contract or sale be signed
by the party to be charged or his agent in that
behalf. • • *
"(3) There is an acceptance of goods withm
the meaning of this section when the buyer, ei-
ther before or after delivery of the goods, ex-
presses by words or conduct his assent to be-
coming the owner of those specific goods."
And by section C8 of the same article It
Is further provided:
"(1) Where goods are delivered to the buyer,
which he has not previously examined, he is
not deemed to have accepted them unless and
until he has a reasonable opportunity of exam-
ining them for the purpose of ascertaining
whether they are in conformity with the con-
tract."
What will constitute an acceptance and
receipt so as to gratify the statute has been
frequently considered and determined by this
court in cases under the seventeenth section
of the statute of frauds, where the words of
the statute are, in substance, the same. In
Belt V. Marriott, 9 Gill, 335, it Is said:
"In order to satisfy the statute there must be
a delivery of the Rootls with intent to vest the
right of possession in the vendee, and there_ must
be an actual acceptance by the latter with intent
to take possession,"
In Jones v. Mechanics' Bank, 20 Md. 287,
86 Am. Dec. 533, Judge Miller said:
"The statute does not speak of delivery, but
superadds to the delivery which the common
law requires acceptance of the goods, or some
part of them by the purchaser. It confers upon
the buyer alone the privilege to prevent a con-
Bommation of the contract b^ refusing to accept
and receive the goods. While there can be no
acceptance under the statute without delivery
by the seller, yet there must be both delivery and
acceptance in order to sustain an action upon
the contract." Belt v. Marriott, 9 Gill, 335;
Hewes v. Jordan, 30 Md. 480, 17 Am. Bep. 578;
Richardson v. Smith, 101 Md. 20, 60 Atl. 612,
70 L. R. A. 821, 109 Am. St. Rep. 552, 4 Ann.
Cas. 184 ; Cooney & Ca v. Hax & Co., 02 Md.
137, 48 AU. 58; Jarrdl v. Toung, 105 Md.
282, 68 Atl. 50, 23 L. R. A. (N. S.) 367, 12
Ann. Cas. 1.
The facts- of the case, as presented by the
record, are these: On or about the 21st day
of November, 1916, the defendants verbally
agreed to buy from the plaintiff 70 barrels
of elder, containing 8,406 gallons, at 14 cents
per gallon, rained at $476.84. On the 9th of
December, 1916, the factory delivered it to
the Cumberland Valley Railroad, at Win-
chester, Va., consigned to the defendants.
The bill of lading was mailed to the plaintiff,
who received it in Baltimore on the 11th of
December, 1916, and was mailed with an In-
voice to the defendants on the same day. The
bill of lading Is as follows:
"Cumberland Valley Railroad Compaoy.
Straight Bill of Lading— Original— Not N^otia-
ble. Consigned to H. Lipsitz & b'ons, Balti-
more, Maryland." Car initial, P. K ; car num-
ber 635051; 70 bbls. pure apple cider; dated
December 9, 1016 ; signed "U. W. Hamberger,
Agent."
The witness Kirk, an employ^ In the gen-
eral agent's department of the Pennsylvania
Railroad, at Bolton Station, Baltimore, tes-
Ufied: That the bill of lading on Its face
shows a certain car, which car arrived at
3:50 o'clock a. m. in the Bolton yard on
the 18th of December, 1916, and that the
witness had a personal recollection of that
car and of telephoning to H. Llpsitz & Sons
on the same date at 11 o'clock a. m., advis-
ing them that the car had arrived. That
the car came from Winchester over the
Cumberland Valley Railroad to Le Moyne,
a station Just this side of the river cross-
ing at Harrlsburg, where It Is placed In a
yard and turned over to the Pennsylvania
Railroad, where it is there picked up by
them and brought to Baltimore. That the
time taken by the car from Winchester, Va.,
to the Bolton yards was normal. The wit-
ness stated that It is necessary to produce
the bill of lading and arrival notice prox)er-
ly indorsed on the back, as per instructions
on arrival notice to obtain goods from rail-
road. The following is an atwtmct from
notice received by defendants:
"The articles described below have been re-
ceived consigned to you, and are now ready for
delivery on payment of charges due thereon.
Please send for same immediately and present
this notice and bill of lading, when freight is
called for. If not called for in person, fill out
order fir delivery on back thereof. No. pack-
ages, 170. Description of articles and special
remarks. Brls, Vinegar."
That the car containing the cider or vine-
gar was eventoally sent to tfie terminal
warehouse. That when be called up the
defendants, he gave them vinegar as the lad-
ing of the car.
The witness NowUn testified that he called
upon the defendants on December 16th, to
collect the bill for the elder, and was in-
formed by a member of the firm that the
car had not arrived, and it would be too
late to sell dder at the time the car got
to Baltimore, ^e hill of lading was re-
turned to the plaintiff, and received by
him on the 19th of December, 1916.
While the proof shows that the defend-
ants in this case verbally agreed to pur-
chase the elder, upon certain terms and con-
ditions disclosed by the record, there is no
evidence whatever from which a Jury would
be warranted to find an actual acceptance
and a receipt of the dder sold by the verbal
contract, as wonld gn^tlfy the plain provi-
sions of the statute, and would constttate a
valid and enforceable contract of sale. On
the contrary, the proof tends. to shov ttUlt
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EINO T. BROWW
627
the defendants refased to accept and to
receive tbe goods, and the carload was sent
to the terminal warehouse of the railroad
company. Oooney A Co. v. Hax & Co., 82
Md. 136, 48 Atl. 58.
It follows, for tbe reasons stated, that the
court committed no error in granting the
defendants' prayers withdrawing the case
from the consideration of the Jury, and the
Judgment will be affirmed.
Judgment affirmed, with costs.
(78 N. H. 410)
KINO et aL t. BROWN et aL
(Supreme Court of New Hampshire. Coos.
June 30, 1917.)
1. RsrOBMATION OF iNffTBUKENTS «=3ll— NA-
TUBE AND SCOFB OF REMEDY.
Equity will not reform a bond for restora-
tion to debtor of attached property, given pur-
aoant to Pub. St c. 220, S 26, by correcting
name of plaintiff in original attachment, since
that is immaterial in action on bond.
2l Attachhert 4=9833— liiABiUTT ON Bond
TO DiSCBABOK.
Since obligors on bond for restoration to
debtor of attached property, given pursuant to
Pub. St. 1901, c. 220, i 26, are liable for so
much of value of property as is necessary to sat-
isfy any executions for payment of which it is
held, the only material question in sheriCTs ac-
tion on such bond is whether property is held
for satisfaction of any execution, and it Is im-
material in whose favor original writ of attach-
ment was issued.
Exceptions from Superior Court, Coos
County; Chamberlln, Judge.
Bill by Charles C. King and another against
Elmest P. Brown and others. Decree for de-
fendants, subject to exceptions, and order
dismissing bill. Eixceptions sustained, and
Judgment for plaintiffs.
Bill In equity, alleging that upon a writ In
favor of Charles C. King against Thomas
Kamey a yolce of oxen was attached as the
property of Kamey ; the defendants. Brown
Bros., gave bond to the plaintiff Davis, sher-
IflT of the county, and took possession of the
oxen claiming them by virtue of a mortgage
to them by the firm of Kamey & Moyd, and
sold them at auction; that subsequently
Judgment and execution was obtained against
Kamey in the suit of King v. Kamey, and
the same Is now unpaid; that in drafting
the bond the writ upon which the attach-
ment was made was by mistalce described as
sued out by King Bros., instead of by Charles
C. King. The prayer of the bill is for a
refonuation of the bond, by substituting the
name of the actual plaintiff, Charles C. King,
for King Bros., and for Judgment against the
defendants for the amount of the execution,
which was less than the penalty of the bond.
The condition of the bond was as follows:
"Whereas, one pair of oxen and one horse,
which were attached by Henry Cotton, a deputy
sheriff for said county of Grafton, on tbe 1st day
of February, 1909, upon a writ in favor of King
Bros.i of WbiteReld, in the county of Coos, and
state of New Hampshire, against Thomas Kar-
ney, as the property of catd Thomas Kamey,
have been restored to the said Brown Bros., who
claim said property by virtue of a default of the
condition of certain mortgages upon the said
property given by said Kamey and one William
R. Lloyd to tbe said Brown Bros, and one
Sherl Lang, of Lyndon, in said county of Cale-
donia, at their request: Now, if tbe said Brown
Bros, shall well and truly pay to the said sber-
ifiF the sum of $300, being the appraised value of
said goods and chattels, or so much thereof
as may be necessary to pay and satisfy any ex-
ecution for tbe payment of which the said prop-
erty or its proceeds is or may be by law holden,
then this obligation shall be void."
The case was heard by a master, who
found that Brown Bros, claimed the oxen by
virtue of a blanket mortgage covering all the
property of Kamey & Lloyd then in or about
their camps, but that the oxen in question
were owned by Thomas Karney, and not by
the partnership of Kamey & Lloyd, and that
their value was $110. The facts as to the at-
tachment and giving of the bond are found
as alleged in the hill, with the additional
finding that Brown Bros., though in no way
misled by the plaintiffs, honestly believed
that the suit in question had been brought
by King Bros., and that they would not have
executed the bond, had they supposed Charles
C. King was Individually plaintiff in the suit
The master found the plaintiffs not entitled
to a reformation of the bond, and the court,
subject to exception, ruled that there should
be a decree for the defendants and ordered
the bill dismissed.
Edgar M. Bowker, of Wbitefleld, for plain-
tiffs. Goss & James, of Berlin, and Simoods,
Searlcs & Graves, of St Johnsbury, Vt, for
defendants.
PARSONS, C. J. Upon the facts establish-
ing the validity of the sherlfTs tlUe, and that
the defendants, Brown Bros., have the proi)-
erty or its proceeds, the bond might be dis-
regarded, and Judgment rendered against
these defendants in trover or assumpsit by
amendment for all the plaintiff claims. But
it seems to be considered of importance that
Judgment should also run against the surety
upon the bond.
[1,2] Counsel for the plaintiff appear to
have assumed that the true construction of
the bond merely required the payment of any
execution issued in a suit In favor of King
Bros, against Thomas Kamey, and that, as
no execution has issued in favor of King
Bros., there had been no breach of the con-
dition of the bond. Hence this bill has been
brought for the correction of the written
evidence of the contract relied upon. But
equity does not interfere to correct an im-
material error, which does not affect the
rights of the parties. Hence the first ques-
tion is whether the error in describing the
plaintiffs in the suit in which the attach-
ment was made prevents a recovery upon the
bond. The error is an immaterial one. The
imrties adopted the procedure authorized
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628
101 ATIi/lNTIO REPORTER
(N.H.
for the restoratton to the debtor of personal
property held under attachment P. S. c.
220, { 26. Property go restored Is still at-
tachable upon subsequent writs, as though
it remained In the sheriff's jxissesslon. For
that purpose it Is deemed still In the custody
of the ofBcer. P. S. a 220, | 27. Hence the
provision of the bond to pay to the sheriff
the appraised value of the property, or so
much thereof as may be necessary to pay and
satisfy any execution for the payment of
which said property or its proceeds la or
may be by law holden. The material ques-
tion is whether the goods for which the de-
fendants gave bond are holden for the pay-
ment of a iMtrtlcular execution. The suit in
which the original attachment is made is
Immaterial. The recital in this case by way
of Inducement sets out the claims of the par-
ties. The Browns claimed the right of pos-
session. Whether upon trial they proved
sudi right by a prior mortgage from Thomas
Eamey, or established the title in Kamey &
Liloyd, from whom they had a mortgage,
would be of no importance. It is equally
Immaterial to the sberilTB claim to hold the
property under attachment against Thomas
Kamey, in whose favor the writ of attadi-
ment was Issued, now that the title of Brown
Bros, has failed. The facts entitling the
plaintiff sheriff to recover upon the bond
have been found, and there should be Judg-
ment for him for the amount of the execu-
tion, with interest.
Bzception sustained. Judgment for the
plaintiff. All concurred.
(78 N. H. 440)
OAEPENTEJR v. OABPENTER.
<Sapreme Court of New Hampshire. OarroIL
June 30, 1017.)
1. Appeai. and EasoR <S=>501(1)— Exceptions
— Question of Fact.
Whether an exception was taken is a ques-
tion of fact for the trial court to find and re-
port, and argument upon the transfer of a case
that an exception was intended to be taken is
irrelevant and futile.
2. Divorce <S=»179 — Transfee of Cacsb —
Grounds of Review — Presentation or
Prf.serv.\tion.
That the libelant objected to the granting of
a motion for a rehearing and to the taking of a
view and the proceedings thereunder is of no ma-
teriality here, since it appears from the bill of
exceptions that no exceptions were interposed or
allowed.
3. Divorce ®=»170— Decrees— Whew Finai/—
Time.
Under the practice prevailing in the superior
court, a decree for divorce does not become res
judicata and final until the end of the term, or
until a special order is made for judgment on a
specified date during term time.
i. Divorce <S=>ie5(4) — Decrees — Poweb to
Vacate.
On July 11th, the court granted libelant a
divorce. At libelee's request, the court suspend-
ed the decree for 30 days, and on August 7th
she filed a motion for a withdrawal of the order
of divorce and a rehearing. A preliminary hear-
ing on this motion was had before the court od
August 26th. A reargument was had, and on
October 23d and 24th the case was submitted.
On November 6th, the court ordered that the
decree of divorce be vacated, and the libel dis-
missed. Beld, that aa no special day hod been
appointed when the decree entered should be-
come effective, the case remained open until the
rehearing had been had, and that therefore the
court had jurisdiction to vacate the decree.
6. Divorce <S=9lM— C!obhection of Ebbobs—
New Trial.
The grant of a motion for further proceed-
ings after the first decree was entered on the
ground that some of the witnesses had testified
falsely did not require a bearing of the case de
novo, where the court stated that if he was
satisfied that libelant had not made ont his case,
he would dismiss it.
6. Divorce <g=al79 — Gbouwds of Review —
Preservation.
The question whether the evidence warrant-
ed the court in vacating the decree will not be
considered, where no exception was taken before
the case was submitted.
7. Courts ®=>20— View iw Another State-
Jurisdiction.
The court in suit for divorce did not exceed
his jurisdiction in taking a view of the premises
in which defendant was charged with having
committed adultery, though situated in another
state.
8. Tbial «=3309— View.
The information gained from a view is evi-
dence which the trier of the facts is antfaorized
to use in reaching a verdict.
9. Trial «=375— Trial bt Court— View.
The judge, when trying a case without a
jury, may take a view, as he is pro hac vice the
jury.
10. WoBDS AND Phbases— "View."
A "view" is a method of procedure con-
ducted in the absence of the court as an aid in
the ascertainment of the truth from the physical
act of inspection, which does not require the ex-
ercise of the judicial powers of a court at the
time for its proper performance.
11. Trial «=»375—lBREauLABiTiES— Waiver.
If for any reason the taking of a view in an-
other state was an irregularis, it was waived
by the absence of an objection thereto.
12. Appeal and Error «=>201(1), 259^Ibbeo-
TTLA RITIE8— Waives.
Whether there were irregularities at the
view cannot be considered on appeal, in the ab-
sence of any objection and exception thereto.
13. Divorce ®=>111 — Strict Rules of Evi-
dence.
Strict rules of evidence are not applicable to
divorce trials.
Exceptions from Superior Court, Carroll
County; Kivel, Judge.
Libel for divorce by Ralph O. Carpenter
against Marguerite Paul Carpenter. Libel-
ant's motion to set aside the decree ordering
the decree of divorce vacated and the libel
dismissed denied, and he excepts. Excep-
tions overruled, and libel dismissed.
The libel alleges adultery as a ground for
divorce, committed at Magnolia, Muss. Sev-
eral witnesses for the libelant testified that
about the times alleged in the libel they saw
the libelee in compromising relations with
one or more men at Magnolia. In reliance
upon this evidence the court, on July 11,
1916, granted the libelant a divorce At the
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CARPENTER v. CARPENTER
629
libelee's request seasonably filed the conrt
suspended the decree for 30 days, and on
August 7, 1916, she filed a motion for a with-
drawal of the order of divorce and a re-
argument or rehearing of the question of
adultery and other matters. The ground of
the motion was that the witnesses who testi-
fied to the alleged acts of adultery could
not see what they said they saw, on ac-
count of the physical situation as It existed
at Magnolia, and a view was suggested. A
preliminary hearing on this motion was had
before the conrt on August 26th. Subse-
quently the libelee submitted affidavits of
several persons In support of her motion.
Thereupon the court ordered a view at Mag-
nolia, which was taken in the presence of
counsel for both sides, on September 10th
and September 23d, when experiments or
tests were made to determine the truth of
the statements made by the libelant's wit-
nesses. Afterwards the court ordered the
case reargued upon the question of the abil-
ity of the witnesses to observe what trans-
pired at Magnolia as they testified, and up-
on the question whether if their testimony
were stricken out the remaining evidence
is sufficient to support the finding of adultery.
The reargument was had October 23d and
24th, and the case was submitted. On Oc-
tober 30th a further view was taken and ex-
periments made. November 6th the court
ordered that the decree of divorce be va-
cated and the libel dismissed. The libelant's
UIl of exceptions was filed December 12th,
and on the 20th be filed a motion to set
aside the decree of November 6th, which
was denied, and the libelant excepted. No
other exception was noted to any of the
above-described proceedings, previous to the
filing of the bill of exceptions. Other facts
are stated In the opinion.
Martin P. Howe, of Concord, and W. H.
Smart, Michael J. Sughrue, and Henry F.
Hurlburt, all of Boston, Mass., for plain-
tiff. Streeter, Deraond. Woodworth & Sul-
loway, of Concord, and Walter I. Badger,
of Boston, Mass., for defendant
WALKER, J. Many of the questions ar-
gued by the libelant are not properly before
the court. It is ordinarily essential, under
our practice, that parties desiring to litigate
questions of law in this court, which were
involved in the trial of the case, should un-
equlTOcally take an exception to the ruling of
wlilcb they complain, and that the record
should show they did so. A mere objection,
not followed by an exception, is unaralling.
"Under the well-established practice of this
state, unless exception is taken and noted.
It is conclusively understood that the ruling
is accepted as the law of the case." Lee v.
Dow, 73 N. H. 101, 105, 58 Atl. 374, 376;
Story V. Railroad, 70 N. H. 364, 380, 48 Atl.
288; Chesbrough v. Mfg. Co., 77 N. H. 387,
»2 Atl. 832.
H, 2] Whether an exception was taken is
a question of fact for the trial court to find
and report, and argument upon the transfer
of a case that an exception was Intended to
be taken is irrelevant and futile. Conse-
quently the tact that the libelant objected
to the granting of the motion for a rehearing
and to the taking of a view and to the pro-
ceedings thereunder Is of no materiality here,
since it appears from the bill of exceptions
that no exceptions were interposed or allowed
to any of ttie matters now complained of,
until the filing of the bill of exceptions De-
cember 12, 1916,
[3,4] But it is argued that although the
libelant took no exception to the action of
the court in entertaining the libelee's mo-
tion for a rehearing of the case, after the
decree of July 11, 1916, granting a divorce
to the libelant. It is still permissible for him
to take the position that upon the filing of
that decree the court's Jurisdiction of the
case was at an end, and hence that the de-
cree of November 11, 1016, vacating the first
decree and ordering a dismissal of the bill,
was a nullity. One sufficient reason why
this position is imsound, even if there were
no others, is that under the practice pre-
vailing In the superior conrt a decree for di-
vorce, like other decrees or verdicts, does not
become res adjudicata and final until the
end of the term when the parties are en-
titled to Judgment if the litigation is at
an end, or until a special order is made for
Judgment on a specified date during term
time In Hillsborough county the practice is
to regard the first day of each month as
Judgment day. Whatever the ancient prac^
tlce may have been in this respect, by which
the enrollment of a decree was regarded as
a final act, it is not of binding eCfect when
a different practice prevails. As no special
day had been appointed when the decree
should become effective as a Judgment, the
case bad not been finally dlsxwsed of when the
rehearing was had and the order made an-
nulling the first decree and dismissing the
libel. The case had not been fully disposed
of (Haynes v. Thorn, 28 N. H. 386, 399), but
was still before the court and subject to such
orders as Justice might require (Adams ▼.
Adams, 51 N. H. 388, 396, 12 Am. Rep. 184).
It is not true, therefore, as suggested in argu-
ment that the status of the parties as hus-
band and wife was finally changed the in-
stant the decree of divorce was entered. The
court having found that Justice required that
the decree of divorce should be vacated, its
power to make the last decree cannot be
doubted.
The distinction between this case and Pol-
som v. Folsom, 65 N. H. 78, is obvious. That
was an application for a retrial of a divorce
case, which had been heard and determined
at a former term of court, upon the ground
of perjury; and upon the allegations of the
petition it was held that as a matter of law
the petition could not be granted. It would
hardly be regarded as commendable practice
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630
101 ATLANTIC RSPORTBR
(N.H.
In this state to bold that the court, after hav-
ing technically entered a decree of divorce,
could not revoke it during the term upon
being convinced that he had been grossly
Imposed upon by the libelant and his wit-
nesses. Such practice would be useful for no
apparent purpose other than that of promot-
ing injustice and for that reason it does not
prevail in this state. "The notion that when
judgment had been given and enrolled no
amendment could be made at a subsequent
term (3 Bl. Com. 407) was long ago aban-
doned." Owen V. Weston, 63 N. H. 699, 603,
4 Att. 801, 808 (66 Am. Bep. 647).
It appears, moreover, that the decree ot
divorce was suspended on July 13th for 80
days from July 11th, the day it was entered.
In order to permit the libelee to file her
motion for a rehearing. While this motion
was pending and while the case was being
reconsidered and reheard, no suggestion was
made by any one that the power of the court
came to an end when the 30-day limitation
expired, as la now argued by the libelant
Until the questions raised on the rehearing
were determined the case remained open, in
accordance with the understanding of the
parties, the undoubted intention of the court,
and the recognized practice in this state.
Eastman v. Concord, 64 N. H. 263, 8 Atl.
822. No question of Jurisdiction Is involved
in this contention, requiring farther discus-
sion.
[S] But It Is claimed that the libelee's mo-
don for further proceedings after the first
decree was entered was in legal effect an
application for a new trial, and that by
granting the motion the court could only
proceed upon that theory and hear the case
de novo. If it is conceded that a retrial of
the whole case might have been ordered by
the court after it was convinced that a serl-
ous error of fact had been introduced at the
first trial, it is clear that such an order was
not the only method by which the error could
be corrected. Lisbon v. Lyman, 49 N. H. BUH.
That no misunderstanding might be indulged
as to what the court intended to do, if he
found that some of the libelant's witnesses
had testified falsely at the first trial, upon
whose testimony he had relied in concluding
that the libelee had committed adultery, the
court stated expressly at a hearing as to the
scope of the questions presented by the mo-
tion, that:
"I shall vacate my decree and order the libel
dismissed it I am satisfied that by the balance
of probabilitiea the libelant has not made out
bis case."
Other remarks by the court were made at
the same time of similar import, and no
exception or objection was made, on the
theory now suggested that the court could
only order a new trial. It is difficult to im-
derstand how counsel could have been mls>
led in this respect or have been taken by
surprise, when the court ordered the first
decree vacated and the libel dismissed. It
Is certain that this court can draw no such
Inference. If the exception which the libel-
ant took to the last decree might be held
to cover the objection, it must be overruled.
[1] Nor can the question whether the evi-
dence warranted the court in vacating the
decree and ordering the bill dismissed be
now considered, since it appears that there
was not "any claim as to the insufficiency
of evidence to warrant a reconsideration of
the first decree and dismissal of the bill made,
until December 20, 1916," several days aft-
er the last decree was entered. To have the
benefit of an exception upon that ground it
must be taken before the case Is submitted;
otherwise the objection is deemed to be
waived. Head & Dowst Go. v. Breed«tf
Club, 76 N. H. 449, 75 Aa 062; Moynihan ▼.
Brennan, 77 N. H. 273, 00 Atl. 964.
[7] Perhaps the principal contentioa of the
libelant is in support of the proposition that
the court in taking a view in Slassachusetts
attempted to perform judicial acts which for
want of territorial jurisdiction were absolute-
ly void, and that it Is immaterial whether the
libelant excited to that procedure or not,
since absolute want of power is not remedied
by consent, and may be taken advantage ot
at any time during the trial or subsequently
by collateral attadc. While It is true that
when it appears a court has no jurisdiction
of the subject-matter of a suit, the proceed-
ing will be dismissed, even if no objection
is made (Burgess v. Burgess, 71 N. H. 208,
51 Atl. 1074), the question is whether the
taking of a view in another state is so tat
beyond the jurisdiction of the court that it
renders all subsequent proceedings in the
case, including the verdict and judgment,
absolutely void, or whether it is at most
merely an irregularity in the trial, which Is
obviated by the consent of the parties, or
by the absence of objectioa thereto. The
solution of this question depends very ma-
terially upon the object or purpose of a view.
If it is to transfer the trial with all its in-
cid«its to the place to be inspected, little
doubt would arise that it could not, for many
reasons, take place outside the state; but,
if it is merely to enable the jury or the trier
of the facts to acquire some special informa-
tion mat^lal to the case by inspectioa alone
that could not be conveniently or aatiafac-
torily presented In the courtroom, the fact
that the inspection in the absence of the
court occurred in another state would seem
to have little legitimate bearing on the power
of the court to try the merits of the case.
Whether a referee or master or a judge may
conduct a trial, in whole or in part, outside
the state It Is unnecessary to decide. Many
instances of such procedure have occurred,
apparently by consent of the parties.
[I] In some sense the purpose of a view la
the acquisition by the jury of a special and
restricted kind of evidence, which the trial
court in its discretion finds may be of \ue to
the Jury in reaching a verdict The Jury
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OABPSNTEai T. CiiBFiaiTEB
631
are not tsent out to get ertdence generally, or
to examine phy^cal facta not autliorlssed in
the order. Tbey do not bear oral testimony ;
DO witnesses are examined; no argumeats
are mad& They merely see such physical
objects as are properly sbown to tbem, and
receive Impresfiions therefrom. They get a
mental picture of the locality,- which as sen-
alble men they carry back to the courtroom
and nse in their deliberations as evidence.
It would therefore be senseless to say that tn
this restricted sense the Information thus
gained by actual inspection Is not evidence
which the trier of the fact is authorized to
use in reaching a verdict, and which counsel
are entitled to comment upon In argument.
The acquisition of such evidence does not
depend upon the oaths of witnesses, is not
tested by cross-examination, and presents
no questions of law calling for a ruling of
the court on the grounds of admissibility or
relevancy. The court as such has no func-
tion to perform when such evidence is pre-
sented, for it depends entirely upon the
Jury's ability to observe what is pointed out
to them. No trial is had while the view Is In
progress, and the court is not In session at
the place of the view for the trial of the
case.
The procedure by which special evidence
of the character indicated becomes available
Is In fact based upon a useful rule of neces-
sity, without which much valuable informa-
tion dearly bearing upon the trial of cases
would be withheld from the tribunal charged
with the duty of dedding the facts. It pro-
vides a method by which evidence of a pecu-
liar and restricted character may be obtained
in the absence of the court and without the
observance of the rules deemed essential In
the production of evidence given in court
It may not be inaccurate to say that this
procednre is anomalous, but Is Justified In
fact as a necessary exception to the general
rule that evidence must be produced in court
subject to numerous Judicial restrictions and
directions.
There is much apparent conflict in the
language used by courts in defining the ob-
ject or purpose of ordering or permitting
views to be' taken. In some of the authori-
ties it is said that a view is, in no proper
sense. Intended to furnish evidence, but to
afford a means by which the Jury can better
understand and apply the strictly legal evl-
dencfi already in the case or to be thereafter
submitted. This restrictive language is de-
rived from St. 4 & 6 Anne, c. 16, {8, where
In the discretion of the court Jurors may be
■ordered to take a view of the "place in ques-
tion. In order to their better understanding
the evidence that will be given upon the
trials of such issues." Similar expressions
occur In the statute law of many of the
states. In this state the statute provides
that:
"In the trial of actions involving qucsticna of
Tight to reed estate, or in which the examina-
tion of places or objects may aid the jnry in un-
derstanding the testimooT, the court, on motion
of either party may, in their discretion, direct a
view ot tne premises by the jury, under such
rules as they may prescribe." P. S. c. 227, f
19.
It i> not clear bow this distinction proves
the proposition that the information derived
from a view is not for all practical purposes
evidence, or that It Is not as much evidence
as similar Information conveyed by an in-
spection of a physical object exhibited to the
Jury in court.
Other authorities hold that the informa-
tion obtained by the Jury upon a view is as
much eTldentiary tn its character as the
sworn testimony of witnesses regularly re-
ceived in court, while still other courts re-
gard It as evidence to t>e considered like
sworn testimony, subject to the qualification
that alone it is not sufficient to support a
verdict B"'or cases in support of these dif-
fering opinions see note in 42 L. R. A. 385.
While the purpose of a view is not to ob-
tain "evidence" in the broad sense of that
term or to permit the jury to use their
power of observation while taking a view to
discover material facts not apparent from
the actual situation of the things under ob-
servation, it is dUficult to understand why
the impressions made upon their minds by
an inspection of a physical object regularly
pointed out to them should not be permitted,
in a legal sense, to have the force of evi-
dence, when as a matter of simple mental
reasoning honest jurymen could reach no
other result If the object is black when
seen by the. Jury it would be absurd to ex-
pect them to find that it was white, in the
aosence of evidence indicating that they had
been imposed upon. An Instruction that al-
though they knew from an authorized ob-
servation of it that It was black, they could
not, as a matter of law, find it was of that
color^ because they had no legal evidence of
it would strike the ordinary mind as a
strange and unreasonable doctrine, based up-
on a refinement in legal reasoning subver-
sive of the Just and practical administration
of Justice. "There is no sense in the con-
clusion that the knowledge which the jurors
acquired by the view is not evidence in the
case." 1 Thon«>. Trials, i 893; 2 Wig. £v.
i 1168; Tully V. Railroad, 134 Mass. 496; 7
Bnc. PI. & Fr. 681. There is. UtUe merit
la the contention that the libelant bad no
means of knowing what Impressions the
evidence produced by the view bad upon the
Justice, and hence that no way was open to
meet or. explain them; for thla is equally
true what a Jury takes a view.
A more extended discussion of this sub-
ject or a critical examination of the cases
outside this Jurisdiction which seem to be
germane is unnecessary, because the unques-
tioned practice in this state sbown by the
cases is determinative of the question. A
view is one means of obtaining a certain
class of evidence. Information thus acquir-
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101 ATLANTIC REPORTER
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ed by tbe Jury, wfalcb Is material to tbe Issue
and necessarily Involved In the subject-
matter of tbe view, has been recognized aa
evidence In the following cases, among oth-
ers, without a suggestion that Its use as
such was open to doubt: Cook v. New Dur-
ham, 64 N. H. 419, 420, 13 AU. 650; Concord
Land & Water Power Co. v. Clough, 70 N. H.
627, 47 Atl. 704; Flint v. Company, 73 N. H.
483. 485, 62 Atl. 788; Lane r. Manchester
Mills, 75 N. H. 102, 106, 71 Atl. 629; City
BowUng Alleys v. Berlin, 78 N. H. 160, 170,
97 AtL 976 ; Osman v. Company, 90 Atl. 287.
Nor Is It Important to Inquire whether tbe
power of tbe court to order an Inspection of
objects located at a distance from where the
trial Is had Is an Inherent and necessary
power of tbe court under tbe common law,
or whether It Is derived from the statute, or
whether It may be justified on both grounds
la conjunction, since whatever theory Is
adopted as a matter of historical Investiga-
tion, no one can question the existence of
tbe power In this state, or successfully con-
tend that it does not afford a reasonably
convenient method of securing essential and
material evidence. "If tbe established prac-
tical construction Is theoretically wrong, the
case is one of a class in which It is proper to
act upon the maxim that common opinion
and common practice may be accepted as
conclusive evidence of what the law is." Ty-
ler v. Flanders, 68 N. H. 371, 373; Oleason
V. Emerson, 51 N. H. 406.
[9] Tbe argument Is presented that the
statute does not authorize a judge, when try-
ing a case without a jury, to take a view,
and that the common law does not permit
such procedure. In short the position Is
that he has no jurisdiction to take a view,
however important such procedure may be In
the particular case. But the discnssloD of
that preposition, which is in direct conflict
with the uniform practice In tbe courts of
this state since the foundation of the govern-
ment, under the statute, or under the com-
mon law, would be of no practical use. Tbe
trier of facts, whether the court, referees,
or masters, as well as juries, have been per-
mitted In accordance with the principle of
utilizing the best inventible procedure, to
view material objects in order to ascertain
the truth. See Adams v. Bushey, 60 N. H.
290, where a referee took a view In the ab-
sence of the parties, and tbe report was sus-
tained. A contrary doctrine would seem to
rest upon the most tecbnical and unsatisfac-
tory reasoning. A judge when taking a view
acts simply as a trier of facts; he is pro
bac vice the jury. See Fowler v. Towle, 49
N. H. 507, 523 ; P. S. c. 204, {{ 8, 9.
But it is argued, with great apparent con-
Mence, that the judge exceeded his territori-
al jurisdiction when he took tbe view in
Massachusetts. It must be borne in mind
that he did not hold court or try the case in
that state. When be was there the court
was in recess. And so far as the argument
Is based upon that assumption It is clearly
fallacious, as shown above. It cannot be
supported upon that ground, aiiless when a
view is taken by the jury it is correct to say
that the trial Is transferred to the locality in-
spected, although the presiding justice is not
present, no testimony is taken, and none of
the usual and necessary methods Incident to
a trial are observed. A legal trial in com-
mon-law countries presupposes and is predi-
cated upon the presence of a presiding jus-
tice under whose directions the case is tried.
If no such person Is present it would be a
dear misnomer to say that there could be a
legal trial. People v. Thorn, 156 N. Y. 286,
50 N. E. 947, 42 L. R. A. 308. There was no
attempted trial of the case In Massachusetts.
All that the judge did was to go to Mag-
nolia without the objection of the libelant, as
the record shows, and In the presence of the
parties or their attorneys observe the situa-
tion of tbe premises In Its bearing upon the
disputed question, whether witnesses who
had testified for the libelant could see tbe
libelee In certain locations about the hotel
from the positions they said they occupied.
This act, it Is urged, he had no jurisdictional
power to do, and authority to do It could not
be conferred by the consent, waiver, or ex-
press request of tbe parties, and hence that
the fatal effect of such an act may be taken
advantage of without a formal exception.
WhUe It Is true tbat the jurisdiction of a
court of the subject-matter of a suit when It
exists Is alone conferred by the law and its
absence may be taken advantage of at any
stage of the proceedings, and If it is conced-
ed that a court cannot exercise its Judicial
functions outside the prescribed limits of Its
jurisdiction, tbe Inquiry Is whether the jus-
tice, when he made the inspection at Magno-
lia, was exercising a judicial power that be
could only exercise in Mew Hampshire. Did
the prescribed territorial limits of the superi-
or court of Carroll county In the trial of
causes preclude him as the trier of the facts
in this case from taking a view at a p<^t
beyond those limits?
It cannot be successfully maintained that
this doctrine of jurisdiction is so Inelastic as
to render a view, ordered by the court of one
county to be taken within tbe limits of an-
other, void for want of territorial Jurisdic-
tion. Where both parties were residents of
Grafton county and the suit was brought la
Belkmap county, the trial in the latter county
was not arrested when the Jurisdictional ir-
regularity was shown on defendant's motion
for a change of venue. The decisive ques-
tion in tbat case was what justice required
under tbe circumstances. It was not treated
as a fundamental question of jurisdiction.
Wbltcher v. Association, 77 N. H. 405, 92 AtU
736. In Wheeler & Wilson Mfg. Co. v. Whit-
comb, 62 N. H. 411, and in Bishop v. Compa-
ny, 62 N. H. 456, the bringing of an action in
a wrong county was not regarded as such a
serious defect that It could not be transfer-
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CARFENTBB v. CABPXaTTEB
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red to the proper county. Tbe Irre^larlty
was capable of being obviated. Seasonable
procedure Justified such action. St. Louis,
etc., RaUroad ▼. McBrlde, 141 U. S. 127, U
Sup. Ct 882, 35 L. £ld. 659. If tbe caae of
Little V. Dickinson, 29 N. H. 56, is in conflict
witb these cases, it must be regarded as over-
ruled by them. Indeed, in the present case
the trial which lasted many days was held in
Merrimack county for the convenience of all
parties concerned, without objection or dls*
sent by any one.
In Kimball y. Flak, 39 N. H. 110, 122, 123,
75 Am. Dec. 218, proceedings for tbe appoint-
ment of a guardian of an insane person were
held by tbe Judge of probate upon days other
than those specified by the statute for tbe
holding of the probate court, and in holding
that the acts of the Judge were legal, tbe
court said:
"If it should be regarded as irregular that
business should be done by tbe Judge of probate
on days not appointed by tbe law, still this is
hardly to be regarded as a matter affecting the
i'nrisdiction of the court over the subject-matter.
f the proceedings would be set aside on motion,
seasonably made in the probate court, or in
this court on a;>peal, still the court has not act-
ed beyond its jurisdiction. The defect is not
one necessarily fatal, since it may be waived,
or released ; and consequently, so long as the
I>roceedings remain, and are not set aside on mo-
tion or appeal, all parties are bound by them,
and they cannot be treated as nullities, when
they are incidentally brought in question."
The question was not one of the power of
the court to act upon tbe subject presented,
but of its power to act at a particular time.
It was a question of procedure and not of Ju-
risdiction. A similar illustration is furnish-
ed by Harris v. Parker, 66 N. H. 324, 23 Atl.
81, where it was claimed that the appoint-
ment of a commissioner in insolvency was un-
authorized; but the appellants, having sub-
mitted their claims to him with a full knowl-
edge of the facts, were held to have waived
their right to object to the appointment made
by a court having Jurisdiction of the subject-
matter. See, also. State v. Blchmond, 26 N.
H. 232, 243 ; Bruce v. Cloutman, 45 N. H. 37,
84 Am. Dec. Ill; Bowe v. Page, 54 N. H.
190, 196; White v. White, 60 N. H. 210;
Lombard v. Company, 09 Atl. 295; Sander-
eon V. Nashua, 44 N. H. 492.
It may be said that these cases are not di-
rectly In point and do not establish the rule
that a view may be properly taken In an-
other state. They show, however, that many
defects of a jurisdictional character are not
fundamental, since they may be obviated by
the consent or the waiver of the parties, and
that it is not true la an unqualified sense
that Jurisdiction may not be acquired by con-
sent, or that when Jurisdiction of the subject-
matter and tbe parties is once acquired, it
may be lost by methods of procedure in the
trial, which Justice clearly requires. If, In
order to ascertain the truth upon a material
issue, the Judge deemed it Important that, as
tbe trier of the fact, he should personally in-
spect tbe relative position of houses and oth-
er physdcal objects located in Massachusetts,
it Is not perceived why it should be held
that he was absolutely precluded from doing
BO, because the case was pending within the
territorial limits of New Hampshire. If,
while trying a case in one county be can or-
der the Jury to take a view in another county,
or take a view himself in another county In a
case tried without a Jury — a weU-recognlzed
practice — ^why Is he or the Jury entirely dis-
qualified to perform the same act across the
geographical boundary line in another state?
The only suggested answer is that it is in-
herently impossible for a court to try cases
beyond the territorial limits of its Jurisdic-
tion. This argument is based upon the false
assumption that a view is equivalent to a Ju-
dicial trial, while it is apparent that the trial
is in fact suspended in order that a view may
be taken. The presiding Justice does not oft-
en accompany tbe Jury on a view ; no sworn
evidence is received, and no arguments are
made.
[18] A view, therefore, is a method of pro-
cedure conducted in the absence of the court
as an aid In the ascertainment of the truth
from the physical act of Inspection, which
does not require the exercise of the Judicial
powers of a court at the time for its proper
performance. If such is a correct exposition
of a view when taken within the state. Its
essential character remains when it occurs
without the state. The territorial Jurisdic-
tion of the court is as fully preserved as it Is
when the court admits the testimony of a
civil engineer as to physical conditions ob-
served by him in another state, or where
maps, plans, and photographs are introduced
for the inspection of the jury. If for any
reason such a view is an irregularity. It may
be waived, and was waived in this case. See
authorities supra.
The numerous cases referred to by the li-
belant, which it is claimed sustain his con-
tention, are not of convincing importance.
The most of them relate to orders made be-
yond tbe limits of the Jurisdiction which it
was held were of a Judicial character, and
many of which, upon that question even,
are open to serious doubt; as, for instance,
the case of Ihinlap t. Bumph, 43 Okl. 491,
143 Pac. 320, where it was held that a Judge
could not approve and sign a "case-made"
while he was In Chicago, although the par-
ties agreed that it was correct, and that it
should be approved by him in that dty; in
Price V. Bayless, 131 Ind. 437, 31 N. B. 88,
it was held that a Judge cannot issue a re-
straining order while he is in Michigan ; in
Shaw V. Spencer, 67 Wash. 587, 107 Pac. 383,
that a Judge cannot hear a motion for a new
trial in another county; in Buchanan v.
Jones, 12 Oa. 612, that the granting of a writ
of certiorari outside the state is a void act ;
in Adams v. Kyzer, 61 Miss. 407, that the
chancellor for one district has no power to
hear and determine a motion to dissolve an
injunction In another; In Share t. Anderson,
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634
101 ATLANTIC RKPORTBB
(N.H
7 Serg. & R. (Pa.) 43, 10 Am. Dec. 421, that
a Justice of the peace cannot take the ac-
knowledgment of a deed in a county for
which he was not appointed, but see Odiorne
V. Slason, 9 N. H. 24; in Ralney v. Rldge-
way, 161 Ala. 532, 43 South. 843, that an oi>
der of a judge of probate extending the time
for signing a bill of exceptions is void when
made outside the limits of his jurisdiction;
and in Lee r. Wells, 15 Gray (Mass.) 459,
that a judge of probate cannot issue a war-
rant of insolvency while in another county.
Some of the cases depend upon a construc-
tion of special statutes. Ex parte Parker, 6
S. 0. 472; Phillips v. Thralls, 26 Kan. 780;
Ro<^ord V. Copplnger, 66 lU. 610. The case
of State v. Hawthorn, 134 La. 979, 64 South.
873, was an indictment for stealing a hull,
and it was deemed important by both parties
that the jury should see the animal, which at
the time of the trial was across the river in
the state of Mississippi. The court denied
the request of both parties for a view, and
upon appeal It was held that no error ap-
peared, the court saying:
"The jury, as such, could not have exercised
its functions in another state, where also it
would have been beyond the supervision and
control of the court."
While the case might have been put upon
the ground that the trial court properly ex-
ercised its discretlcm in denying the request,
the reason given in the opinion is not con-
vincing, since the only function the Jury
could exercise in Mississippi was that of see-
ing the bull, and whether, while performing
that simple act, the immediate supervision of
the court would I>e necessary is not appar-
ent It is evidence that the foregoing cases
have little bearing upon the present case, in
which the trial court did not make any Judi-
cial orders or conduct any part of the trial
in another jurisdiction.
It might be interesting to compare the cases
above referred to with other cases where a
more liberal practice seems to prevail, as,
for instance, Bate Refrigerating Co. v. Gil-
lette (C. C.) 28 Fed. 673, where it was held to
be the universal practice to permit a master
to act outside the territorial jurisdiction of
the court and to take testimony in foreign
countries. This was followed in Consolidated
Fastener Co. v. Company (C. C.) 85 Fed. 04.
In People v. Thorn, 166 N. Y. 286, 60 N. EL
947, 42 L. R. A. 368, it was held that a view
by a jury of the premises where the crime
was committed is not a part of the trial lo
such a sense; that it could not be taken in
the absence of the respondent If an action
Is brought in a wrong county, the error is
not fatal. With the consent of the parties
the trial may proceed. Bishop v. Company,
62 N. H. 455. But see Malins v. Dunrcven
(1845) 9 Jur. 690, which is not a satisfactory
or convincing decision.
If it were determined that for some Juris-
dictional reason a New Hampshire Jury is
disqualified to take a view outside the state,
and that all subsequent proceedings in tbe
case bef(»« the same jury are absolutely
void, thoi^h no one raises an objection on
that ground, mudi surprise would undoubted-
ly be created among the resident members of
the profession ; for the practice has prevailed
in this state by common consent and approval
for many years. And the fact that the ques-
tion has not been raised or discussed in any
of oar reported cases is cogent evidence that
it has not been deemed to be debatable. State
T. Sawtelle, 66 N. H. 488, 32 AU. 831, was an
indictment for murder in the first degree, in
which the respondent was convicted and sen-
tenced to be hanged. Able counsel defmded
him and took and argued various exceptions
which were overruled. The trial was presided
over by Chief Justice Doe and Associate Jus-
tice Bingham, and during its progress the jury
were sent into the state of Maine to view
localities, which it was claimed were material
to the issue on trial. No one seemed to have
entertained a doubt of the propriety or legali-
ty of the proceeding; no objections were in-
terposed to it If it had been understood that
tbe fundamental jurisdiction of the court was
lost or suspended in consequence of the view,
it is unaccountable that in a case of such im-
portance that objection was not suggested or
entertained by any one connected with the
trial. Numerous other instances have been
called to our attention where juries have
taken views outside the state with the con-
sent of the parties; In fact it Is not inac-
curate to say that It is tbe general practice
in this state, whenever the court deems it
useful and no objection is interposed. Wheth-
er it is an Irregularity in procedure for the
reason that the court has no extraterritorial
power and may not be able to compel the par-
ties and the officers in charge of the jury to
go outside tbe state is not a question deter-
minative of its power to try tbe case and
render Judgment therein; often an extrater-
ritorial view has been taken with the consent
of the parties.
"Where a court has jurisdiction of the canse
and the parties, and proceeds erroneously, tbe
judgment, notwithstanding the error, is binding
until it is vacated or reversed. This distinction
is well settled." Smith v. Knowlton, 11 N. H.
191.
"When it is once made to appear that a court
has jurisdiction of both the subject-matter and
of the parties, the judgment which it pronoonc-
es must be held conclusive and binding upon tbe
parties thereto and their privies, notwitnstand-
ing the court may have proceeded irregularly, or
erred in its amplication of the law of tbe case
before it It is a general rule that irregulari-
ties in the course of judicial proceedings ao not
render them void." CooL Con. lAm. 587.
"Irregularities, which is but another word for
illegalities, in the proceedings in an action, fui^
nisb everywhere ground of exception to the
party whose rights are affected by uem, and tbe
Irregular proceedings ere at once set aside, on
motion of the proper party. But it is » gen-
eral rule that if a party who has ground to mo^e
the court to set aside any process or proceed-
ing of any kind neglects to make his sppUcation
in a reasonable time, after the facts have come
to his knowledge, he is deemed to waive the
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CARFENTBB ▼. OABPBNTSR
636
«xceptioii by the delay, and will be foreTer pre-
'Cluded to make the objection afterwards." State
V. Richmond. 26 N. H. 232. 243.
See, also, Sanderson t. Nashua, 44 N. H.
492; KimbaU t. Flsk, 39 N. H. 110, 75 Am.
Dec. 213; State t. Buzzell, 59 N. H. 65;
State ▼. Albee, 61 N. H. 423, 428, 60 Am. Rep.
325; SUte T. Almy, 67 N. H. 274, 280, 28 AtL
372, 22 L. R. A. 744.
"But when the court does not possess the legal
power to decide the question involved, then ju-
risdiction cannot be acquired by consent."
Brown, Juris. S 47; Hobart v. Frost. 5 Duer
(N. T.) 672: Smith t. Knowlton, 11 N. H. 191 ;
Morse t. Presby, 25 N. H. 299; Crowell t.
Londonderry, 63 N. B. 42; Warren y. Glynn,
87 N. H. 340; Bickford ▼. Franconia, 73 N.
H. 194, 60 AtL 98; Hutdilnson t. Railway,
78 N. H. 271, 276, 60 AtL 1011; Fowler t.
Brooks, 64 N. H. 423, 13 AtL 417, 10 Am.
St Rep. 425; State t. Shattuck, 45 K. H. 205;
Voorheee y. Bank, 10 Pet 449, 473, 9 L. Ed.
490; 1 Black. Judg., f 244.
[11] As it appears from tbe bill of excep-
tions that the libelant took no exception to tbe
granting of the libelee's motion that the court
take a view of the premises in Massachnsetts,
he waived his right to object to such proce-
dure, even If it is conceded that It was what
Is termed an "Irregularity." And as the
territorial ]urisdlcti<»i of tlie court was not
lost or Impaired by the view In such a sense
that no exception would be necessary to bring
the matter to the attention of the court, the
contention of the libelant upon this point la
unavailing.
[12] Whether there were irregularities at
the view cannot be considered at this stage
of the case, in the absence of any objection
and the exception thereto. It haa been ar-
gued that certain experiments were resorted
to at the view which were Improper and ought
not to have been made. As no objection was
made to that practice until after the decree
was entered, the argument is superfluous.
But upon the question of tbe legality of ex-
periments made while a view is being taken,
see Flint v. Company. 73 N. H. 483, 485, 62
Atl. 788; Concord Land, etc., Co. T. Clough,
70 N. H. 627, 47 AtL 704. The claim that the
libelant had no opportunity to take the neces-
sary exceptions except while the court was
in Massachusetts and without power to act
Judicially is without merit, since he could
have ai)pliad to the court in this state within
a reasonable time for the allowance of bis
exception. Ue was not prevented from mak-
ing the attempt.
Several affidavits of persons wlu> had ex-
amined the premises at Magnolia, to tbe ef-
fect it was physically impossible tliat witness-
es for the libelant could have seen what they
testified they saw, were Introduced in sup-
port of the libelee's motion for a rehearing,
and it appears from the bill of exceptions that
the court considered them in connection with
the experiments made at tbe view. But it
does not appear that they were considered as
independent evidence. So far as tbe view
demonstrated that the statements were true,
it is not apparent what substantial error was
committed. Moreover, it is. to be noted that:
In tbe trial of divorce cases "the court has
never been governed by strict rules of evidence
or practice, and has always exercised a broad
discretion, as well in the admission of evidence
as in other respects." Warner y. Warner, 69
N. H. 137, 138, 44 Atl. 908.
In accordance with tills principle, if for no
other reason, the exception to the use made
of the affidavits by the court must be over-
ruled.
[13] iSeveral exceptions to the evidence
were regularly taken at the original trial, and
are now insisted upon. But they do not appear
to be of sufficient Importance to warrant ex-
tended discussion, especially in view of the
fact that the strict rules of evidence are not
applicable to divorce trials. Warner v. War-
ner, suiNTa.
It appears that petitions to the probate
oonrt tor Carroll county have been filed ask-
ing tor the appointment of a guardian of the
minor son of the parties, and that subsequent-
ly the libelee filed in the superior court a pe-
tition for legal separation and maintenance,
and for the custody of her minor son. By
agreement of tbe parties the question is trans-
ferred in this case whether tbe probate court
has authority to appoint a guardian over tbe
minor son pending a decision upon the petition
filed in the superior court No orders upon
these petitions have been made in either court
Tbe probate court has not appointed a guard-
ian, nor has the superior court appointed a
custodian. That the probate court has power
generally to appoint a guardian of a minor
"whenever there Is occasion," of both his
person and estate (P. S. c. 178, H 1> 9 is Qot
denied; nor Is it denied that tlie superior
court in a divorce proceeding may appoint a
temporary or permanent custodian of the
child of the parties (P. S. c. 176, | 4; Laws
1907, a 81). Whatever distinction there may
be between the powers and duties of a guard-
ian and those of a custodian, under tbe stat-
utes, it is clear that it was the purpose of
the Legislature to authorize the superior
court to appoint tbe latter in a divorce pro-
ceeding. If the probate court should, as it
probably would, appoint the same person as
guardian, the contentions of the parties upon
this subject would doubtless be ended; and
tbe same result would be reached if tbe pro-
bate court should appoint a guardian deemed
by the libelee to be unfit for the trust, since
upon appeal to the superior court the matter
of guardianship would be finally determined
as well as tbe question of custody. In this
view of the matter it Is not advisable to de-
cide at this time tbe question, which is
somewhat Irregularly presented, as it may be-
come of no practical importance to tbe par-
Ues.
Exceptions overruled; libel dismissed.
All concurred.
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101 ATLANTIC BBPORTEE
(N. H.
(78 N. H. «7)
THRASHER t. LAWRENCE et al.
(Supreme Court of New Hampshire. Sullivan.
June 5, 1917.)
Pabtnkbship <s=»C8(1), 325(1) — Dissolu-
tion—Rights OF Pabtners.
Where a partner had acquired the right to
buy land at about half its value, and his ropart-
ners contributed the money and plaintiff such
right, and title vras taken in defendants' names,
they held it as trustees for the partnership, and,
if they refused to sell it for the benefit of the
firm, on a dissolution of the partnership, a trus-
tee would be appointed to do bo.
Exception from Superior Court, Sullivan
County; Branch, Judge.
Bill by Benjamin F. Thrasher against
Summer Lawrence and another. Judgment
for plaintiff, and defendants except. Excep-
tion overruled.
BUI In equity to wind up a partnership.
Hearing by a master, who found that the
plaintiff had acquired the right to purchase
two adjoining tracts of timber land for
about half their value, and entered Into an
oral agreement of partnership with the de-
fendants, "the terms of which were that
in consideration that the plaintiff would
share with the defendants the benefit of his
efforts in securing the lots, and would look
after and see to selling the same, the defend-
ants were to furnish the money to pay for
the lots, to pay all taxes assessed thereon,
and other expense, if any, not Included in
what plaintiff was to do, and, when the lots
were sold, defendants were to receive the
amounts advanced In payment by them for
the lots, taxes and other expenses not In-
cluded in plaintiff's undertaking, together
with 6 per cent Interest thereon from the date
of said purchase to the date of sale or other
disposition of the lots, and then any amount
of money received from the sale of the lots
after taking out the foregoing items of pay-
ments and expenses on the part of the de-
fendants was to be divided equally between
the plaintiff and the defendants. • • •
The conveyances were made to said defend-,
ants respectively, t)ecause they advanced the
purchase money, and to secure tbem for so
doing." The court ordered Judgment for the
plaintiff on the master's report, and the de-
fendants excepted. Transferred from the
November term, 1916, of the superior court
Frank H. Brown and Hurd & Kinney, all
'>f Claremont, for plaintiff. Martin ft Howe,
of Concord, for defendants.
TOUXG, J. The only conclusion that
can be drawn from the findings of the
master is that the plaintiff bought the land
with the assets of the partnership, whi<A
consisted of bis right to buy It for one-half
its actual value and the money contributed
by the defendants. There is nothing that
can be construed as a finding that the de-
fendants paid for the land, or that their
■noney paid for It Since the land wa?
bought with partnership assets, the defend-
ants hold It as trustees for the partnership
(Parker v. Bowles, 57 N. H. 491, 495; Mes-
ser v. Messer, 59 N. H. 375; Foster v. Sar-
gent, 72 N. H. 170, 55 Atl. 423) ; and, as they
have refused to dispose of It for the bene-
fit of the partnership, the plaintiff is enti-
tled to have a trustee appointed, who will
dispose of It and distribute the assets in ac-
cordance with the order of the court.
Exception overruled.
(78 N. H. 456)
ROLLINS V. BROCK.
(Supreme (3ourt of New Hampshire. Carroll.
June 30. 1917.)
1. Fbauob, Statute of ©=>158(2) — Rehedt
UNDBB Contbact— Parol Evidence.
In suit for specific performance of a parol
agreement whereby plaintiff took a deed to land,
to be reconveyed by him to defendant on defend-
ant giving plaintiff bis note secured by mortgage
for a sum advanced by plaintiff, though defend-
ant could not be compelled to accept a deed and
reconvey it to plaintiff in mortgage, plaintiff
liaving paid the owners the balance of the pur-
chase price and tendered defendant a deed in
accordance with the agreemeut, and defendant
having refuged to perform, parol testimony of the
agreement was admissible to show how plaintiff
held the farm.
2. Fbauds, Statute or ^=>119(1)— Reuedies
OF Parties— Repudiation of Agreement.
The fact that defendant in a suit in eqnity
for specific performance of a parol agreement
has repudiated bis agreement does not give him
any greater rights than he would have had if
he were trying to enforce it
8. Specific Pebfobmancb «=»127(2) — Relbe*
— Stbict Fobeclosubb ob Sale.
In suit for specific performance of a parol
agreemeut, whereby on conveyance of a farm
to defendant, reserving the standing timber, de-
fendant was to give plaintiff a note for $1,500
secured by mortguge on the farm, if there should
be a strict foreclosure, the court will fix a rea-
sonable time wittkin which defendant must pay
plaintiff what is due him, but if there should
be a sale, it will appoint a commissioner to sell
the farm and distribute the proceeds ; the decree
in either form fixing the exact amount due
plaintiff.
Exceptions from Superior Court, Carroll
County ; Chamberlain, Judge.
Suit by Ellsworth H. Rollins against Ste-
phen Brodc. From a decree for plaintiff, de-
fendant excepts. Cose discharged.
BlU In equity for the specific performance
of an oral agreement The defendant having
bargained with the Gllman heirs for a fkirm
for which he was to pay $4,400, and having
but $1,000, made an arrangement with the
plaintiff by which he was to buy the timber
on the farm for $1,900 and loan the defend-
ant the further sum of $1,500, which he need-
ed to pay for the farm, the loan to be secur-
ed by a mortgage of the farm. It was agreed
that the defendant should pay the Oilman
heirs $1,000 and direct them to convey it to
the plaintiff, who should pay them $3,400, Ode
balance of the purchase price, and, reserving
the standing timber, should convey the farm to
the defendant, who should give the plaintifT
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COMMONWEALTH v. LAPRIESTA
637
his note for $1,500, secured by a mortgage
of tUe farm. The defendant paid the GUinan
heirs $1,000 and directed them to convey the
farm to the plaintiff. The conveyance was
made to the plaintiff, who thereupon paid the
balance of the purchase price, and tendered
a deed of the farm to the defendant In ac-
cordance with the terms of the agreement;
but he refused to accept It, and to give the
plaintiff the note and mortgage for $1,600 as
agreed. The court entered up a decree by
the terms of which a writ of possession was
to issue unless the defendant elected to com-
ply with the terms of the agre«nent on or
before September 30, 1916, and the defend-
ant excepted. He also excepted to the ad-
mission of oral testimony to show the agree-
ment under which the plaintiff holds the
farm. A bill of exceptions was allowed at
the May term, 1016, of the superior court
Leslie P. Snow, of Rochester, and Burt R.
Cooper, of Concord, for plaintiff. William
Wright, of Rochester, and Henry D. Xeaton,
for defendant.
YOUNG, J. [1] Notwithstanding the de-
fendant cannot be compelled to accept a deed
of the farm and reconvey it to the plaintiff in
mortgage to secure the payment of his note
for $1,000, the evidence excepted to was
properly admitted for the purpose of showing
how the plaintiff holds the farm. In other
words, if this were a writ of entry and the
plaintiff Introduced the deed conveying the
farm to him, and rested, it would be compe-
tent for the defendant to Introduce this evi-
dence for the purpose of showing that the
plaintiff held the farm (not including the
timber) as security tor a loan of $1,500.
[21 The fact the defendant has repudiated
his agreement does not give him any greater
rights than he would have had If he were
trying to enforce it; consequentfy the plain-
tiff is entitled to a decree in his favor.
Whether it should take the form of a strict
foreclosure or of a sale depends on which
the court finds would be equitable.
[3] If the court finds there should be a
strict foreclosure, it will fix a reasonable time
within which the defendant must pay the
plaintiff what is due him. If, however, it
finds that there should be a sale of the prop-
erty, it will appoint a commissioner to sell
the farm and distribute the proceeds.
Whichever form the decree takes, it should
fix the exact amount due the plaintiff.
Case discharged. All concurred.
(267 Fa. 28S)
COMMONWEALTH v. LAPRIESTA'.
(Supreme Court of Pennsylvania. March 19,
1917.)
1. EoMiciDK €=»340(1)— Appeal^Habicless
Errob.
In a mnrder case, the fact that the court
mistakenly charged that the indictment con-
tained a. eoant for manalaugbter is not reversi-
ble error, where accused conM have been con-
victed of that offense on a count cbarfring mur-
der, and the trial court correctly defined man-
slaughter.
2. Homicide <8=>300(3) — Offense — Instruc-
tion'.
Wherp the accused relied on self-defense, re-
quested instructions that, if assault on him was
so fierce as to warrant a belief that he could
not retreat without opening himself to the grav-
est danger, be was warranted in killing, were
properly qnalified by statements that kiUinir
should be the last resort, and that, if there was
no other way of resisting, accused was warrant-
ed in killing his assailant.
Appeal from Court of Oyer and Terminer,
Xiackawanna County.
Anthony Lapriesta was convicted of mur-
der in the second degree, and he appeals. Af-'
firmed.
The defendant was indicted for the mur-
der of Tony Romeo on January 1, 1916. The
jury found him guilty of murder of the sec-
ond degree, for which he was sentenced' to
a term of 8 years minimum and 12 years
maximum In the state penitentiary for the
Eastern district of Pennsylvania. Defend-
ant appealed.
Errors assigned were (1) stating to the Jury
that the defendant was charged in the in-
dictment with a count for manslaughter, and
the second, third, and fourth assignments,
which follow:
Second. The learned court erred In Its
answer to the fourth request of defendant
for instruction. The request and the answer
thereto are as follows:
"If the attack on Lapriesta was so sudden and
violent that a retreat would not diminish his
danger, he could kill Romeo, if from the nature
of the attack there was reasonable ground to be-
lieve that there was a design to take his life,
or do him great bodily harm ; and in so doing
he would be guilty of no crime and should be
acquitted.
"Answer: We aflirm that point, gentlemen of
the jury, if you find from the evidence that there
was no other way of resisting, and the kiUing
came from the resisting."
Third. The learned court erred in Its an-
swer to the fifth request for instruction by
defendant The request and the answer
thereto are as follows, to wit:
"If the assault upon Lapriesta was so fierce
as to justify him in the belief that he could not
retreat without manifest danger of his life or
grievous bodily harm, then, in his defense, he
could kill Romeo instantly, and in so doing he
would be guilty of no crime and should be ac-
quitted.
"Answer: We affirm that point if there were
no other way by resisting or escaping. Killing
is the last resort, and, if there were any other
way, it was the duty of the defendant to take
that way ; but, if there were no other way_, then
he would be justified, even it it resulted in the
killing of Romeo."
Fourth. The learned court erred In its an-
swer to the seventh request for Instruction
by defendant The request and the answer
thereto are as follows, to wit:
"The law of self-defense is pre-eminent, and
by virtue of this inherent right a man assaulted
by another, under circumstances manifesting an
intention to take Ufe or do some great bodily
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101 ATIaANTIO rbportbr
(Pa.
harm, may immediately resist the assailant, even
unto death. He may even, under circumstances
o{ urgent and manifest necessity, anticipate the
blow of an assailant threatening such an attack,
and kill him before his deadly intention is fol-
lowed by an actual assault.
"Answer: That is rather academic, gentlemen
of the jury, because there lacks in this case that
which would sustain such facts; but as a gen-
eral proposition we affirm it."
Argued before BROWN, O. J., and POT-
TER, STEWART, FRAZER, and WAL-
KING, JJ.
Clarence Balentine and E. T. Philbln, both
of Scranton, for appellant. Frank P. Ben-
jamin, First Asst Dlst Atty., and George W.
liazey, Dlst Atty., both of Scranton, for
the Commonwealth.
PER CURIAM. [1] This appeal la from
the Judgment on a verdict finding appellant
gnllty of murder of the second degree. His
first complaint is that the court erred In
diarglng the jury that the Indictment con-
tained a count for manslaughter. This did
him no harm, for he could have been found
guilty of that offense on the count charging
murder, and It Is admitted that the learned
trial Judge correctly defined manslaughter
in his Instructions to the Jury.
[2] The second, third, and fourth assign-
ments charge errors In answers to points sub-
mitted by the defaidant. Each was afiSrm-
ed with a Qualification free from error.
Judgment afllrmed.
(!57 Pa. SOE)
POLUSKIEWICZ V. PHinADEtPHIA ft
READING COAL & IRON CO.
(Supreme 0>urt ot Pennsylvania. March 23,
1917.)
Maoteb and Sebvant ^=»417(7)— Workmkn's
Compensation Act — Boabd — Findings of.
Under Workmen's Compensation Act June
2, 1915 (P. L. 736) } 409, declaring that find-
ings of fact shall be final unless the board shall
allow an appeal therefrom as hereinafter pro-
vided, and that the board's findings of fact shall
be in all cases final, findings of fact by the ref-
eree, approved by the board, cannot be disturbed
on appeal.
Appeal from Court of Common Pleas,
Schuylkill County.
Proceedings by Frances Polusklewicz
against the Philadelphia ft Reading Coal &
Iron Company, for compensation under the
W^orkmen's Compensation Act The referee
allowed compensation, which on appeal was
sustained by the Compensation Board. From
an order dismissing the appeal from the
board, defendant appeals. Appeal dismissed.
Bechtel, P. J., filed the following opinion
in the court of common pleas:
This case comes before us on an appeal taken
from the Workmen's Compensation Board by
the defendant. The appellant files six excep-
tions to the decision of the board. These six
exceptions involve but one question, whether or
not the facts warranted the findings by the ref-
eree and the compensation board.
The referee found the facts against the de-
fendant and allowed compensation. The defend-
ant thereupon appealed to the compensation
board, which sustained the findings of the ref-
eree. It thereupon took an appeal to this court
The plaintiff claims that the court has no juris-
diction to reverse the findings of fact made by
the referee and the compensation board. Even
if we had jurisdiction to revise the findings as
made in this case, we feel, in the absence of
any express provision in the act of assembly,
that our actions should be governed by the rules
laid down by our higher courts relative to the
findings of fsct in equity cases. It is a well-
settled doctrine that in the absence of fraud or
a gross abuse of discretion the appellate court
will not reverse the findings of fact by a chan-
cellor, and it has been held that these findings
should be sustained if there be any evidence to
justit^ such action. We would hesitate to go
that far with this record.
Section 409 of the Compensation Act of Jane
2, 1916, P. Ll 736, provides: "A referee's find-
ing of fact shall be final unless the board shall
allow an appeal therefrom as hereinafter pro-
vided. The board's findings of fact shall in
all cases be final. From the referee's decision
on any question of law an appeal may be taken
to the board and from any decision of the board
on a question of law an appeal may be taken to
the courts as herein provided."
Section 419 provides for an appeal by the ag-
grieved party to the board on two grounds, the
second of which is "that the findings of fact
and ruling or disallowance of compenaatiim were
unwarranted by the evidence," and section 421
defines the powers of the board relative to such
appeals. Section 425 provides for the method
of hearing appeals taken from the board to the
courts, but distinctly limits such appeals to
questions on matters of law. We nowhere in
the act find any express provision authorizing
the courts to reverse the findings of fact of the
compensation board. It is very significsnt that
th« act provides that the board's finding shall
be final m all cases, and that in the section pro-
viding for an appeal to the courts distinctly
states on questions involving matters of law.
We do not thiuk that it was the intention of
the Legislature, nor do we think that the plain
language of the act gives to the courts the right
to reverse the findings of fact of the compensa-
tion board, lliat is the one question involved
in this case.
The court dismissed the appeal. Defend-
ant appealed.
Argued before BROWN, O. J., and MBS-
TREZAT, POTTER, FRAZBR, and WAL-
LING, JJ.
George Oowen Parry, of Philadelphia, and
John F. Whalen and George Ellis, both of
PottsviUe, for appellant. M. A. Kllker, of
Glrardvllle, for appellee.
PER CURIAM. SecUon 409 of the act of
June 2, 1916 (P. L. 736), Is as foUows:
"A referee's findings of fact shall be final, on-
less the board shall allow an appeal therefrom
as hereinafter provided. The board's findings
of fact shall in all cases be final. From the
referee's decision on any question of law an ap-
peal may be taken to the board, and from any
decision of the board on a question of law an
appeal vauf be taken to the courts as herein-
after provided."
Referees and the Workmen's C^mpensatloa
Board must realize the great responslblllt7
Imposed upon them by the provision that
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LEBANON VAIiliET CXSKSOL. W. S. CO. T. COMMONWEALTH T. 00.
639
their findings of fact are final. If they err
In this respect, courts can grant no relief to
parties who may be wronged. In the light
of the plain words of the statute, the learned
court below was of the correct opinion that
it could not disturb the facts found by the
compensation board.
Appeal dismissed at appellant's costs.
(2S7 Pa. 252)
HUGEK T.
COATESVILLB BOIUEK
WORKS.
(Sapreme Court of Pennsylvania. March 19,
191T.)
Mastteb and Sebvant 4=9106(1)— InxDBiES to.
SeB VA NT— NbGLIQEN CE.
While a master who requires a servant to
labor with improper tools is necessarily liable
unless the danger was so imminent that a rea-
•onably prudent person would have refused, a
servant encaged in puttinf; a head on a steel
boiler cannot recover for injuries resulting from
bdng struck with a splinter of steel from the
pin, though the foreman, over objection, required
mm to use a heavier hammer than ordinarily
used ; it not appearing that the hammer or pin
was defective.
Appeal from Ck>urt of Common Pleas,
Chester County.
Action by Tony D. Rnger against the
Coatesville Boiler Works. From an order
refusing to take off a nonsuit, plaintiff ap-
peals. Affirmed.
Hause, J., filed the following opinion sur
plaintiff's motion to take off the nonsuit in
the court of common pleas:
On Jaly 2, 1015, plaintiff, an employi of the
defendant, was injured while engaged in putting
a head in a large steel boiler. To accomplish
this work he was required to use steel pins and
hammers of different weights. On the day nam-
ed, while performing the work assigned to him
and finding the boiler head slightly large for the
boiler in which it was to be placed, one Crouse,
his foreman, directed him to drive steel pins be-
tween tbe rim of the boiler bead and the boiler,
and, as this could not be accomplished by the
use of a small hammer, he directed him to use,
and he did use, a larger one. This was the
usual and customary manner of performing this
work ; the plaintiff was entirely familiar with
tbe metbod and tbe operation, and had headed
many boilers, prior to the day of the accident,
in the same manner, except that he had not
theretofore used a hammer so heavy as the one he
was using when the accident happened. When
Instructed to use a larger hammer, he demurred,
for some reason which did not appear at the
trial, whereupon the foreman told him, in sub-
stance, that if he did not propose to do the
work with the tool he suggested, he should go
home. While striking one of the steel pins with
the larger hammer, a small splinter from the
pin struck him in the eye, and later the eye
was removed. He seeks to recover damages for
his injury and bases his right to recover on two
grounds: First, because the defendant was neg-
ligent "in coercing and requiring him" to do
the work on pain of bein^ discharged ; second,
because tbe defendant furnished for the work im-
proper tools and pins, the latter being defective
and were liable to splinter when struck with a
hammer.
An employer is not guilty of negligence merely
because ne insists that his employ^ shall work.
If, however, he or his toreman for him requires
the employ^ to labor with improper and defpc-
tive tools and apjpliances or in unsafe places and
injury results, liability necessarily follows, un-
less Uie danger was so imminent that a reason-
iililv prudent person would have avoided it. Ijce
V. Dobson, 21T Pa. 349, 66 Atl. 567; Porter
V. Wilson, 62 Pa. Super. Ct. 339; Ignash v.
Murphy, Cook & Co., 249 Pa. 223, 94 Atl. 1058;
Broski v. Phoenix Iron Co., 82 Pa. Super. Ct.
305.
Tbe difBculty with the plaintiPs case, how-
ever, was that there was not a scintilla of tes-
timony to show that either the steel pin or tbe
hammer was imperfect. Nor was there a sug-
gestion that the use of a heavier hammer to ac-
complish the object sought was not entirely
proper. The plaintiff lost his eye as the result
of an accident wholly unforeseen and against
which, so far as tbe testimony shows, no human
foresight could have provided.
The trial judge entered a compulsory non-
suit which the court in banc subsequently
refused to take off.
Argaed before BROWN, 0. J., and MES-
TREZAT, STEWART, MOSCHZISKEB, and
WALLING, JJ.
W. S. Harris, of West Chester, for ap-
pellant. A. M. Holding, of West Chester,
for appellee.
PER CURIAM. This judgment is affirmed
on the opinion of the learned court below
denying the motion to take off the nonsuit.
(2S7 Fa. 284)
LEBANON VALLEY CONSOL. WATER
SUPPLY CO. et al. ▼. COMMON-
WEAI/TH TRUST CO.
(Supreme Court of Pennsylvania. March 19,
1917.)
Equity ^=9322— Service of Process— EJxtba-
tebbitobiai, service.
Act April 6, 1859 »P. L. 387), providing for
extraterritorial service where suit concerns any
charge, lien, judgment, mortgage, or incum-
brance on lands within the jurisdiction of the
court, does not, in an action to compel delivery
of bonds secured by a mortgage on lands in the
county where instituted, warrant service on de-
fendant in a different county.
Appeal from Court of Comm<m Pleas, Leb-
anon County.
Bill by the Lebanon Valley Consolidated
Water Supply Company, with D. Oring, as
Intervening bondholder, against the Common-
wealth Trust Company. From an order set-
ting aside service, complainants appeal. Dis-
missed.
The facts appear in the following opinion
by Henry, P. J., setting aside the service
of the bill:
The defendant in the above-entitled case has
moved to set aside the service of the bill and
vacate the order upon wUch the service was
made, for the reason that service was made up-
on the defendant in Dauphin county. The but
in equity filed in this case asks that the defend-
ant be ordered and directed to deliver certain
bonds in its hands to the plaintiff. These bonds
are secured by a mortgage upon lands in Leba-
non county, under which the defendant is the
trustee.
It is conceded by the plaintiff that, unless the
service as made is authorized by that part of
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101 ATLANTIC BEPORTBB
(Pa.
the act of April 6, 1859 (P. L. 387>, which pro-
vides for extraterritorial service where the suit
concerns "any charge, lien, judgment, mortgage,
or incumbrance" upon lands, tenements, or here-
ditaments within the jurisdiction of the court
directing the service, the motion of the defend-
ant must prevail. The simple question is then
raised whether the suit concerns any charge,
lien, judement, mortgage, or incumbrance upon
land in I^ebaDon county. The purpose of the
bill is to compel the defendant to certify and
deliver to plaintiffs certain bonds in its hands
secured by a mortgage given by the plaintiff to
the defendant as trustee. Unless there is some
reason to the contrary, the plaintiff is entitled
to the bonds. Should there be some good reason
for the withholding of the bonds, it must be
owing to some default upon the part of the
plaintiff. The lien of the mortgage stands unaf-
fected by the determinntion of this question, ex-
cept in as far as the other bondholders under the
mortgage may have an increased value attach-
ing to their bonds as long as a part of the bonds
are unissued ; but to say that because the bonds
are secured by a mortgage, or because the value
of outstanding bonds may be affected as long as
a part of the bonds are unissued, their delivery
or nondelivery concerns the lien of the mort-
gage which is given to secure the bonds, is plac-
ig a strained construction upon the plain lan-
guage of the said act of assembly. The suit con-
cerns the bonds alone and not the mortfrage or
the lien of the mortgage. We can only conclude
that the service is not good under the proviaiona
of the act of assembly of April 6, 1S50.
The lower court set aside the service of
the bill. Plaintiffs appealed.
Argued before BROWN, C. J., and MES-
TREZAT, POTTER, FRAZER, and WAIi-
LING, JJ.
William H. Sponsler, of New Bloomfleld,
E. B. McCurdy, of Lebanon, and Geo. R.
Helsey, of Ilarrisbiirg, for appellant. 0. H.
Bergner, of Harrisburg, and Howard C.
Shirk, of Lebanon, for appellee.
PER CURIAM. This appeal is dismissed,
at appellants' costs, on the opinion of the
court below setting aside the service of the
bill.
(257 Pa. 238)
HANIGAN V. PHILADELPHIA & R. R. QO.
(Supreme CJourt of Pennsylvania. March 19,
1917.)
Railboads €=>327(8)— Cbossing Coixision—
Neouoenoe — Failube to Look and Lis-
ten.
Where plaintiff's decedent, had he stopped,
looked, and listened at a point 20 feet from the
railroad track, would have had an unobstruct-
ed view from 900 to 1,800 feet in the direction
from which the train approached, but proceeded
to cross ttie track with his team, in consequence
of which be was struck, he was guilty ui con-
tributory negligence, justifying a compulsory
nonsuit.
. Appeal from Court of Common Fleas,
Bucks County.
Trespass by Lydia A. Hanlgan against the
Philadelphia & Reading Railway Company
to recover damages for the death of her hus-
band. From an order refusing to take off a
nonsuit, plaintiff appeals. Affirmed.
The facts appear in the following opinion
of Ryan, P. J., sur plaintiffs motion to
take off the nonsuit:
The plaintiff brings this action to recover dam-
ages for the death of her husband, who was
killed at a grade crossing at Siielly, in this
county, by a train of the defendant company.
At the plai:e of the accident the double track
of the defendant runs approximately north and
south and the highway crosses it nearly at right
angles. The accident occurred about 7:40 in
the evening of July 4, 1913. The deceased at
the time was driving two horses geared to a
market wagon, the side curtains of which were
down. With a boarder at his house named
Gillick, he occupied the only seat in the con-
veyance. Back of them, on the floor of the
vehicle, were seated bis sister, Mrs. Hannah
Costello, with her daughters, Giertrude, Frances,
and Kitty, her little son, £>dmund, and a child
named Ed. Kane. The party was coming to
Shelly from the deceased's farm, which was about
a mile distant to the eastward of the point of ac-
cident. The deceased had lived on the farm
nearly seven years. Approaching the crossing
from this direction the highway descends a
steep hill, but from the foot of the hill to the
crossing it is a level road. About 40 feet from
the crossing on the right is a cigar factory, jnst
bc.vond which, toward the crossing, the deceased
stopped the team, leaned forward, and looked
and listened. At this point, however, he could
not see the track to the north, as the view was
obscured by a growth of bushes along the top
of the bank of the cut of 4 or 5 feet in depth,
through which the railroad is constructed.
From that point to a point beyond the bank of
the cut, about 20 feet from tho first track, the
view from the highway to the north is ob-
structed. At that point a dear and unobstruct-
ed view of the track northward to a curve to
the east could be had. The distance to this
curve and the extent of the unobstructed view
was estimated by witnesses at from 400 to &00
yards to a quarter of a mile. Whether tix« de-
ceased st(q)ped a second time at the point whero
he bad an nnotntructed view of the track is
not dear.
Gertrude Costello testified in chief that he
stopped, and looked up and down the tracks,
"right before he came to the crossing, right
below the cigar factory, • * • 40 feet from
the trades." She eaid (Testimony, p. 39): "He
looked up and down the track with the team
and nothing came, so we went on and we were
just past the first track when we were hit, aboat
in the middle of the other track." Mrs. Ade-
line Bauck stated that she was seated upon
a hotel porch opposite the station, near the
crossing, and saw the team come down the hill.
In chief she testified (page 64): "I was sitting
in my rocking chair on the porch, and all at
once I saw the wagon coming down this hilL
and I saw a man holding his line back, and
stop, and look up and down. Of course, where
I sat, you can see everybody that comes down
that hill, and I saw him until he got to the sta-
tion, and I heard the train come and toot toot,'
and when the acddent happened I beard no
bell, no whistle." On cross-examination (page
73) she testified inter alia as follows: "Q.
When did he stop? A. When he got down the
hilL Q. At the botton of the hiU? A. Yes. Q.
As soon as he struck the level? A. Yes, sir.
Q. He didn't stop again, did ho? A. He stop-
ped, you know; he looked up and down. Q.
Was he sittin)^ on the seat of the wagon? A.
Yes. Q. He didn't stop again after stopping at
the bottom of the hill? A. He stopped right
there at the station. Q. You say he stopped
at the bottom of the hill? A. That is near
there. • • • Q. Did he stop again— stop
his liorse? That is the last time he stopped un-
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COMMONWEALTH v. HAINES
641
til he was atraA. U that It? A. Yea. Q.
About a quarter of a square away. A. Yos.
<J. Away from the track? A. Yes; then he
stopped, and just held his lines, and locked
up and down the tracks, and they were clear,
And be went over. Q. But he only stopped one
time altogether? A. Yes; it is just as good as
stopped. Q. He stopped once? A If you say
so. Q. Do yon say so? A. I can't say it over
again. By the Court: Did he stop more than
once? A. He stopped once, his horses; then
right near the train he stopped again, just a
second, and he looked up and down to see it
the tracks were clear; then he went across the
tracks, and the train came around the bend."
Whether the deceased did stop a second time
or not, the fact is clear that there was a point
20 fe«t from the first or north-bound track where
there was an unobstructed view of both tracks
up to the carve. If the deceased had stopped
and looked here, he could have seen a train ap-
proaching from the north for a distance of from
about 900 to about 1,780 feet. He drove across
the first and upon Uie second track, when the
team was struck by a south-bound train. The
wagon was demolished, and the deceased and
some of tiie other occupants of the conveyance
were kiUed. The horses also were killed. The
deceased's duty under the circumstances is thus
stated in Haas v. Northern Central Ry. Co., 49
Pa. Super. Ct 107, 109, following a lony line of
decisions of the Supreme Court of this state:
"The rule that the traveler about to cross a
railroad track must stop, look, and listen is nn
absolute and unbending rule of law, founded on
public policy, for the protection oif passengers
in railroad trains as much as travelers on the
common highway, and such stopping, looking,
and listening must not be merely nominal or
perfunctory, but substantlnl, careful, and per-
formed in good faith, with the accomplishment
of the end in view. Ho must stop and look
where be can see, and will not be allowed to
say that he did so, when the circumstances
make It plain that by the proper using of his
common sense he must have seen his danger."
There is no question in the case at bar of
what was the proper place to stop. It is clear
from the testimony of the plaintiffs witnesses
that the deceased stopped where he could not
see. It is also clear that there was a point,
about 20 feet from the first track, beyond the
bank of tho cut, which was surmounted by bush-
es, where an unobstructed view in the direction
from which the train came could be had. In
Carroll v. Penna. Railroad Co., 12 Wkly. Notes
Cas. 348, 349, the Supreme Court says: "It
is in vain for a man to say that he looked and
listened, if, in despite of what his eyes and
ears must have told him, he walked directly in
front of a moving locomotive." It is equally
vain for others to say so, where his actions in-
dicate that he did not see the approaching train.
If, in the case at bar, tho deceased had looked
and listened at the point 20 feet from the
track, where the view was unobstructed, he could
have both seen and heard the approach of tho
train that collided with his team. To drive
in front of an approachin«r train, which could
have been seen and heard from a place of safety
in time to avoid a collision, is negligencn per
se. In Pennsylvania R. R. Co, v. Beale, 73
Pa. 604, 500. 13 Am. Rep. 753, Sharswood, J.,
declared: "There never was a more important
principle settled than that the fact of tho fnil-
nre to stop immediately before crossing a rail-
road track is not merely evidence of negligence
for the jury, but negligence per se and a ques-
tion for the court North Pennsylvania R. R.
Co. V. Heileman, 49 Pa. 60 [88 Am. Dec. 482]."
"Where there is a doubt as to the proper place
to stop, look, and listen, as a general rule such
question will be referred to the jury. But where
there is no such doubt, where the deceased stop-
ped at a point where he could not see, it is for
the court to determine whether it was a proper
place." Urias t. Penna. R. R. Co., 162 Pa.
326, 25 Atl. 566. This rule is quoted and ap-
plied in Kinter v. R. R. Co., 204 Pa. 497, 54
AU. 276, 93 Am. St. Rep. 795. While it is said
that the rule laid down in Carroll v. Penna.
Railroad Company, supra, applies to clear cases
only, we consider this sodi a case, and conclude
that the nonsuit was properly entered.
The trial Judge entered a compulsory non-
suit, which the court subsequently refused to
take off. Plaintiff appealed.
Argued before BBOWIN, 0. J., and MES-
TREZAT, STEWART, MOSCHZISKEE, and
WAUjING, JJ.
Hugh Roberts, of Philadelphia, for appel-
lant. Harman Yerkes, of Pblladelphla, fot
appellee.
PER CURIAM. This judgment Is afBrm-
ed, on tbe opinion of the court belonr refus-
ing to take off the nonsuit
OOMMONWEAI/TH v.
(257 Pa. 289)
HAINES.
(Supreme Court of Pennsylvania. March 19,
1917.)
1. GannNAi, Law «=>372(4)— Evidbrci)—
Otheb OxTBirSEB.
In a prosecution for murder, where it was
claimed that defendant though he did not fire
the shot which killed deceased, was a principal
in the crime, evidence that defendant and the
actual murderer had previously committed burg-
laries which were not shown to be in any way
connected with the murder is inadmissible ; the
murder not being one of a series of mutually de-
pendent crimes.
2. Cbiminai. Law 4=s>780(l)— Tbiai^Ik-
8TBU CTIONS— ACCOICPLICES.
Where the commonwealth relies on accom-
plice's testimony, the court should in its general
charge clearly state the law applicable to testi-
mony of accomplice and make specific applica-
tion of it to the particular case, pointing out
wherein such testimony was claimed to be con-
tradicted or corroborated, and directing the jury
to closely scrutinize such testimony and accept
it with caution.
3. Cbiminal Law <8=>1129(3)— Apfxai/— Ab-
SIONVENT OF EBBOK.
It is improper to assign as error certain ex-
cerpts from tbe charge, so disconnected from the
context as to carry an erroneous meaning of the
language used.
Appeal from Ooort of Oyer and Termlnei;
Jefferson County.
Ernest Haines was convicted of murdei
in the first degree, and be appeala Re>
versed.
Argued before BROWN, O. J., and MBS-
TKBZAT, STEWART, MOSCHZISKER, and
FRAZER, JJ.
William L. McCracken and William T.
Darr, both of BrookvIUe, for appellant Jes-
se 0. Long, of Punxsutawney, and John W.
Reed, of Brookvllle, for appellee.
MESTREZAT, J. William S. Haines, a
farmer, resided on his farm In Oliver town-
ship, Jefferson county, in a house located
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642
101 ATLANTIC RJBPORTEB
(Pa.
near the Plttsftmrgli, Shawmut & Northern
Railroad. His family consisted at himself,
his wife, his son, Ernest, and his daughter,
Floy. He left his home shortly after 12
o'clock, noon, Wednesday, March 22, 1916,
and walked west on the track of the railroad
In the direction of the village of Sprankles
Mills, which Is about one mile distant, and
consists of a schoolhouse, two stores, a black-
smith shop, a gas pump station and a half
dozen dwelling houses. The railroad sta-
tion is about one-third of a mile southeast of
the Tillage, and abont one mile west of Mr.
Haines' residence, and between the residence
and the station there is a railroad cut which
is on a carve. While Haines was walking
on the railroad track in the cut, and 1,200
feet east of the railroad station, Henry Ward
Mottorn, the son of a farmer residing in the
neighborhood, fired two shots at him from a
shotgtm; the first taking effect in Haines'
breast, and the second striking him in the
head, resulting in almost Immediate death.
When he fired the shots, Mottorn stood on
the north embankment of the cut, which Is
about 13 feet above the track. Within a
short time after Haines was killed, his body
was found by two neighbors on the railroad
In the cat They reported their discovery
to the agent at the railroad station and the
news was telephoned to the pump station,
where Mottorn and Ernest Haines, the son
of the deceased, were at the time the message
was received.
The evening of the day of the homicide
Mottorn and Ernest Haines, the defendant
in this case, were arrested and (jiarged with
the crime. They were jointly indicted as
principals, but the court granted a severance,
and they were tried separately. Mottorn
was tried first, and, after the Jury had re-
tired, Haines was put on trlaL Before the
Jury in the Mottorn case had returned a
verdict, and while it was deliberating, Mot-
torn was called as a witness by the common-
wealth to testify in the Haines case. The
defendant objected to his testimony, but the
objection was overruled, and the testimony
was received. Mottorn was the principal
witness on behalf of the commonwealth.
The Jury found a verdict of guilty of murder
in the first degree lu both cases.
It is unnecessary in the consideration of
this appeal to refer in detail to Mottorn's tes-
timony given oi> the trial of Ernest Haines.
He admitted, on the witness stand, tliat be
had shot and killed the elder Haines after
a prior unsuccessful attempt to do so, and
testified that It was done in pursuance of a
plan or arrangement formed by blm and the
defendant to rob the deceased of $250, which
they knew the latter to have in Ills posses-
sion.' He further testified that, on Monday
evening prior to Wednesday, the day of the
homicide, he entered the home of the de-
ceased for the purpose of robbing him, but
was frightened away; that, in the villnge
store, he and the defendant had again plan-
ned on Tuesday that he should procure a
shotgun and shoot the deceased as he passed
through the railroad cut going from his
home to the village, and the defendant was
to be on hand to take the money from the
body of the deceased, and they would sub-
sequently meet at the pnmp station and di-
vide it ; that on the day of the shooting the
defendant and his sister preceded their fa-
ther along the railroad to the railroad sta-
tion, where bis sister left him and went to
her school in the village; that the defend-
ant saw his father coming, and notified
Mottorn, who was stationed on top of the
embankment and shot the deceased after be
entered the railroad cut; that the defend-
ant secured the money from his father's
body, and shortly thereafter they met at the
pump station and he gave It to Mottorn.
After the latter's arrest, the money was
found under the carpet In his room. The
defendant testified in his own behalf, alleged
that the relations between his father and
himself were friendly, denied that be had
ever been a party to planning his father's
death, or that he had any prior knowledge
of, or anything to do with, the crime, and in-
troduced witnesses, including his mother and
sister, to corroborate his testimony.
The first assignment, if we understand the
question intended to be raised, complains
that the court erred in permitting Mottorn
to testify before a verdict was rendered in
his case and he was sentenced. As Mottorn
was thereafter convicted of murder in the
first degree and sentenced, the questioD, if
in fact it be one, becomes unimportant, and
cannot be raised In the next trial.
[1] The second assignment complains that
the court erred in permitting Mottorn,
against the objection of the defendant, to
testify to an alleged s^arate and distinct
offense committed previously by him and the
defendant. Mottorn was asked:
"State whether or not this defendant, E/rnest
Haines, was with you at any other place that
you broke Into."
An objection to the question being over-
mled, the witness testified that he and the
defendant were together in Seyler's store.
The purpose of the evidence, as stated by
counsel, was to show that the witness and
the defendant were associated togettier In
the commission of other criminal offenses
about the time the elder Haines was mur-
dered. The time of the occurrence was not
shown; whether it was of recent date, or
several years prior to the shooting of Haines,
did not appear. The record also falls to dis-
close any offer made by the commonwealth
to show other instances in which Mottorn
and the defendant were associated in the
commission of crime.
We think it was reversible error to permit
the witness to testify to the occurrences at
Seyler's store, and that, therefore, the second
assignment must be sustained. It was dis-
tinctly stated by counsel for the oonuuon-
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COMMONWEALTH ▼. HAINES
643
wealth tbat the evidence was offered for the
purpose of showing that the witness and the
defendant were, abont the time Haines was
billed, associated togetbei: In the commission
of other crimes. The testimony failed to es-
tablish that they had been associated In the
commission of any other offense when the al-
leged offense of statutory burglary was com-
mitted, or that the burglarly was, proximate-
ly or remotely, connected with the crime
laid in the indictment,' or was one of a series
of mutually dependent crimes connected with,
and resulting or terminating in, the murder
of Haines. These requisites for the admis-
sion of proof of collateral crimes are entire-
ly wanting in this record. The common-
wealth made no attempt to show, nor did it
appear by proof in the case, that the alleged
burglary was other than an independent of-
fense participated in by the parties, having
no connection whatever with the crime charg-
ed in the indictment against the defendant
The two offenses are dissimilar in kind and
purpose, and could not have been laid in the
same indictment It was proper for the com-
monwealth to show the extent of the prior
intimacy and association between Mottom
and the defendant, and whether or not It
was criminal; but the evidence in the case
falls entirely to show any prior criminal con-
cert of action l>etween them which, in the
remotest degree, could have any bearing on
the Issue in the present case. The evidence,
as well as the offer of counsel made In the
presence of the Jury, was clearly prejudicial
to the defendant, as the Jury might readily
conclude that, if the defendant had recently
been associated with Mottorn in the commls-
sion of another crime, it was a logical pre-
sumption, under the evidence, that he was
not ignorant of Mottorn's last offense.
It is fundamental that a defendant cannot
be convicted of an offense with which he
Is charged, because he had committed an-
other offense unconnected with that for
which he was Indicted; and hence, as a
general rule, evidence of his participation
In another and distinct crime is not ad-
missible on his trial to prove the crime laid in
the indictment. There are, however, circum-
stances under which evidence of the commis-
sion of another offense may be received In
the trial of a criminal case. Tb6 exceptions
to tbe general rule ezdndlng such testimony
have frequently been the subject of adjudi-
cation by this court and we have uniformly
held that such a connection must be shown
between the two offenses as tends to estab-
lish tbat, if the defendant were guilty of the
one, be was also guilty of the other. The
doctrine Is well stated by Mr. Justice Clark
in Swan v. Commonwealth, 104 Pa. 218.
There the defendants were Jointly Indicted
for bnrglary and larceny. It appeared that
In the same township and on the same day
another house had been burglarized, to which
one oC the defendants had pleaded guilty in
another indictment This fact was given in
evidence, on the theory that defendants were
members of an organization banded togethei
for the commission of buislary. The de
fendants were seen together In the locality
of the crime on the day It was committed.
We reversed the Judgment of conviction, and
held that the evidence should have been ex-
cluded. In the opinion it is said:
"To make one criminal act evidence of anoth-
er, some connection must exist between them:
that connection must be traced in the genera;
design, purpose, or plan of the defendant, or it
may be shown by such circumstances of identifi-
cation as necessarily tends to establish that the
person who committed one must have been guilti
of the other. The collateral or extraneous of-
fense must form a link in the chain of circum-
stances or proofs relied upon for conviction ; as
an isolated or disconnected fact it is of no con-
sequence ; a defendant cannot be convicted of th«
offense charged simply because he is guilty of an-
other offense."
The counsel for the appellant misappre
bended the purpose of the testimony covered
by the third assignment of error. It was of-
fered for the purpose of showing by the de-
fendant's acts and declarations his connec-
tion with the crime, and was entirely com
petent
[2, 3] The fourth to the ninth assignments
complain of certain parts of the charge Ir
which the trial Judge outlined the evidence
produced by the parties at the trial. These
excerpts are separated from the general con-
text Of the charge, and, standing alone, are
in some instances obscure and fail to indi-
cate the meaning of the trial Judge, but when
read, as they should be, in their proper con-
nection are free from error. The Judge, told
the Jury that he had given them a mere out-
line of the contentions of the parties, and not
a recapitulation of the testimony or a state-
ment of the facts, told them that it was their
duty to remember all the evidence and give
it the credence it was entitled to, and that
the credibility of the witnesses was for them,
including that of Henry Ward Mottom, the
accomplice. We have time and again con-
demned and held to be reprehensible the
practice of assigning as error excerpts from
the charge so disconnected from the context
as to convey an erroneous meaning of the
language used.
The tenth and eleventh assignments are
without merit We are not disposed to sus-
tain the twelfth, thirteenth, and fourteenth
assignments, alleging error in answers to cer-
tain requests for instructions which deal
with the extent of the corroboration suf-
ficient to warrant conviction on the testi-
mony of an accomplice, in view of the in-
structions on the subject contained In the
general charge covering the questions raised,
and to which no error is assigned. We sug-
gest, however, that on the next trial of the
cause the court in its general charge state
clearly the law applicable to the testimony
of an accomplice, and make a more specific
application of it to the particular facts tt
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101 ATLiANTIC REPORTER
(Pa.
the case. The court should point out, In a
general way, not only the testimony, of the
accomplice, but wherein It Is claimed to be
contradicted and corroborated, and the Jury
should be told that they must closely scruti-
nize such testimony, and accept it with cau-
tion.
The second assignment of error is sustain-
ed; the judgment Is reversed, and a venire
fadas de novo la awarded.
(2E7 Pa. ITS)
BLACK et al. v. EASTERN PENNSTIy-
VANIA RYS. CX).
(Supreme Court of Pennsylvania. March 19,
1917.)
linaTATiOR OF ACTIONS <8=931 — Husbakd's
Suit tob Injtjbt to Wife.
A huslwnd's right to maintain a suit for per-
sonal injury to his wife is barred after two years
by Act June 24, 1895 (P. L. 236), relating to
suits for damages for injury wrongfully done to
the i)er8(« which does not result in death.
Appeal from Court of (Common Pleas,
Schuylkill CX>unty.
Trespass by Eliza J. Black and Edward
Black against the Eastern Pennsylvania Rail-
ways Company, to recover damages for per-
sonal injuries. Judgment for defendant, en-
tered upon a compulsory nonsuit, and plaln-
titTs appeal. Affirmed.
The facts appear in the following opinion
by Bechtel, P. J., in the common pleas:
^is case was argued before the court in banc
on a rule to strike off the nonsuit entered by
the trial judge. It presents but one question,
which is rather unique. The suit was an ac-
tion of trespass brought by Eliza J. Black and
Edward Black, her husband, against the defend-
ant for injuries sustained by Eliza Black, on
the 28th day of July, 1908. The suit was
brought in September, 191S. It is admitted by
counsel for the plaintiff that the right of Eliza
J. Black to sue has been barred by the statute
of limitation of June 24, 1885 (P. L. 236), but
contended that the right of the husband to main-
tain the suit is not barred, by reason of the fact
that he has six years in which to bring his ac-
tion, in accordance with the provisions of the
act of March 27, 1713 (1 Smith's Laws, p. 76).
The act of 1895 (P. U 236, i 2) provides, in-
ter alia: "Every suit hereafter brought to re-
cover damages for injury wrongfully done to
the person, in cases where the injury does not
result in death, must be brought within two
years from the time when the injury was done
and not afterwards; in cases where the injury
does result in death the limitation of action
shall remain as now established by law."
We have been unable to find any decision of
the higher courts in this state in which this
question has been definitely decided. The act
of 1895, supra, has, however, been construed a
number of times. In the case of Peterson et ah
V. Delaware River Fsiry Co. of New Jersey,
190 Pa. 364, 365, 42 AU. 955, the court say:
"The act of 1895, as held in the case referred
to, is a general act in the nature of a statute
of limitation* Its terms are general, and make
no exceptions In favor of persons under disabil-
ity. The settled rule is that infants as well as
all others are bound by the provisions of such
statutes." In Rodebaugh v. PhUadelphia Trac-
tion Co., 190 Pa. 358. 362, 42 Atl. 9^ 954,
it was said: "The words of the act of 1805 are
general, and there Is nothing to indicate that
they were not intended to establish a general
rule, applicable to all cases within their terms,
to wit, 'every suit to recover damages for in-
jury wrongfully done to the person.' " There
are a number of other decisions to the same ef-
fect
The act of May 8, 1895 (P. L. 54), provides
that the right of action in case of injury done
to the person of the wife shall be tried both
for the husband and the wife in one suit, and
provides for the rendition of verdicts for each
of them, and also contemplates a verdict in fa-
vor of one and against the other; and it is
therefore contended by counsel for the plaintiff
that the husband's rights are not sfEected by
the statute of limitations of 1895,_ supra. The
contention of counsel for the plaintiff is that the
husband's right of action is not for injuries to
his person, and that therefore it is not governed
by the act of 1895. We cannot agree with this
contention. The act does not say for m^uries
wrongfully done to his person, but for injuries
wrongfully done to the person. The suit in
?uestion is certainly based upon injuries wrqng-
uUy done to the person, the person of plaintiffs
wife. It is difficult to understand how one suit
should be maintained by both of these plaintiffs,
founded on the one cause of action, and that
cause of action be barred by the statute of lun-
itations, and yet the one plaintiff be permitted
to recover. . .^ .... «
We feel that it was the evident intention of
the Legislature to bar all actions for wjune*
done to the person after two years. This is
the plain language of the act We are therefore
of the opinion that the nonsuit was properly
entered.
The trial judge entered a compulsory non-
suit, which the court in banc subsequently
refused to take off.
Argued before BROWN, C. J., and MES-
TREZAT, POTTER, FRAZER, and WALL-
ING, JJ.
John O. TJlrlch, of Tamaqua, for appellants.
Otto E. Farquhar and a H. Berger, both of
PottsvUle, for appellee.
PESR CURIAM. The act of 1895 clearly
barred the right of either of the plaintiffs to
recover in this action, brought more than
five years after the Injuries to the wife were
sustained, and the Judgment is affirmed, on
the opinion of the learned court below re-
fusing to take oft the nonsiiit.
Judgment affirmed.
. (»7 Pa. »i)
In re IVIBON'S ESTATE.
(Supreme Court of Pennsylvania, March 19,
1917.)
LiFB EsTATsa «=>6— Seoubitt— Entekinq 0»
Secubxtt.
Where a testatrix left to her husband, the
executor of her estate, all her interest in prop-
erty, with the provision that he should pay the
interest on a sum of money for the maintenance
of the testatrix's grandson, such sum to revert
at the death of the husband to the estate for the
use of the grandson, the husband was properly
required to give bond to secure payment of the
interest and principal.
Appeal from Orphans' Court, Franklin
County.
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Pa.)
PHICE ▼. LITTLE
645
In the matter of tbe estate of Kate Keyset
Ivlson, deceased. On petition to require life
tenant of personal property to enter security.
Prom decree requiring life tenant, I. D. Ivl-
son, to enter security, be appeals. Affirmed.
Petition to require a life tenant of person-
al property to enter security. Kate Keyser
iTlson died testate, June 1, 1912. Her will
consisted of a formal paper and a letter of
Instructions to her executor, and was duly
probated before the register of wills of
Franklin county, and letters testamentary
granted to I. D. Ivlson, one of her executors;
the other renouncing. The formal will gave
to her executors the residuary estate In
trust, with power to convert the same Into
money and to Invest and reinvest the same
In lawful securities, tbe Income to be paid
to tbe guardian of her grandson, George W.
Brodhead, the principal of tbe said fund to
be paid to George W. Brodhead absolutely,
when he became 21 years of age. In case of
bis death before be became 21 years of age
without child or children surviving, the resid-
uary estate was given to certain other per-
sons.
The letter of instructions, probated as part
of tbe will, gave to I. D. Ivlson, tbe husband
of the testatrix, all her Interest In tbe Hotel
Washington, "he to pay tbe Interest on five
thousand (5,000) dollars at the rate of five
(G) per cent, to my estate, the same for (in-
terest) maintenance of my grandson, George
Wills Brodhead ; Interest not to begin for
one year after my death, and at the death
of my husband, I. D. Ivlson, tbe five thou-
sand (5,000) dollars to revert to my estate
for the use of my grandson, George Wills
Brodhead, if of age. If not, to be Invested
to tbe best advantage by the trustees, inter-
est only to be used. In case my grandson
before reacblng the age of twenty-one (21)
years should die without issue, I give and be-
queath to my hnsband, I. D. Ivlson, all mon-
ey, bonds, mortgages" — the remainder of the
estate being given to certain legatees.
I. D. Ivlson elected to take under bis
wife's will. He filed his account as executor,
which was excepted to, and the exceptions
in part sustained. On February 7, 1016, tbe
Philadelphia Trust Company, guardian of
George Wills Brodhead, the minor g^randson
of tbe testatrix, presented its petition to the
orphans' court of Franklin county for a rule
on I. D. Ivlson to turn over tbe certain ar-
ticles given to him for life or until be should
remarry, and to require him to give security
in tbe sum of $10,000 for tbe payment of
$250 to the guardian of George Wills Brod-
head annually, and to pay the principal sum
to tbe said George Wills Brodhead, as pro-
vided by the will of the testatrix.
I. D. Ivlson, In bis answer to said petition,
expressed his willingness to turn over tbe
articles of personal proi)erty valued at about
$400, but denied tbe right of the guardian to
require him to give security, on tbe ground
that the money was payable by blm as lega-
tee, not to tbe guardian, but to himself as
trustee under the will of his deceased wife,
and that as trustee he bad active duties to
perform, and therefore should not be requir-
ed to give security.
The court decided that the case was ruled
by Kemerer's Estate, 251 Pa. 282, 96 Atl.
654, and directed I. D. Ivlson to enter secu-
rity in the sum of $8,000. I. D. Ivlson ap-
pealed. Error assigned was the order of the
court.
Argued before MESTREZAT, POTTER,
MOSCHZISKSR, FBAZE]R, and WALLING.
JJ.
Charles Walter and Arthur W. GUlan, both
of Chambersburg, for appellant. Irvtn C.
Elder, of Chambersburg, John Stockburger
and James F. Hagen, both of Philadelphia,
and Walter K. Sharpe, of Chambersburg, for
appellee.
PER CURIAM. We agree with tbe learn-
ed judge of the orphans' court that this case
Is ruled by Kemerer's Estate, 251 Pa. 282, 98
AtL 654, and therefore tbe decree is affirmed.
PRICE V. LITTLE.
(267 Pa. SW
(Supreme Court of Pennsylvania. March 23,
1917.)
TBIAL e=9l9(>— iNSTRtrCTIOTTB.
In an action for an alleged libelous newH-
paper publication, charcing misconduct in of-
fice on the part of plaintiff, an alderman who sflt
as a magistrate, it was not error for tlie trial
judge to comment on the ethics which should be
observed by a magistrate, and to state that the
magistrate should not sit where relations be-
tween him and the suitors were so close as to
oast a suspicion npon him, and that it was im-
proper for a magistrate to institute suit in
nis own court.
Appeal from Court of Common Pleas.
Lackawanna County.
Action by Thomas J. Price against Rich-
ard little. From a judgment on verdict for
defendant, plaintiff appeals. Affirmed.
The following is the opinion of Staples,
P. J., In the court of common pleas:
From the record it appeared that the alleged
libelous article complamed of consisted of an
account of a proceeding brought before the
plaintiff as alderman of the thirteenth ward of
the city of Scranton. Defendant offered evi-
dence to prove that the publication was true.
The court charged the jury in part as follows:
"You will remember, likely, the details of the
evidence with regard to these charges of arbi-
trary conduct upon his part We preface our
remarks upon this subject with this, gentlemen
of the jury: A magistrate is an officer of the
law, his oiiice is established largely for the con-
venience of the people, and especially of the
poorer class of people. It is not the rich as a
rule who are called into a magistrate's court;
it is the poor who get there. As a rule, the
amounts that are sued for and the offenses charg-
ed against persons are small amounts and
minor offenses. Of course, in the process of the
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101 ATLANTIC REPOKTER
(Fa.
criminal aide of the court and the law, all kinda
of charges againat persona for crimes and felo-
nies must be instituted in the magistrate'a court,
but, aa a rule, persona who are well to do, or
have money at hand, retain counael or attor-
neya at law, who take charge of their affairs
and who go before the magistrates and look
carefully after the righta of their clients, and
thia, therefore, puts a guard upon the magis-
trate, and he ia more inclined, I think it would
be fair to say, to strictly obey the law and do
hia duty where there are counsel able and fitted
to take care of the business which is brongbt
before the magistrate, but a poor peraon, a per-
son not well to do, is not in the same class, and
he ia at least entitled to information from a
magiatrate as to what he should do ; and, if the
magistrate neglects to give that information to
the t>er8on who ia brought into his court and
pennita him to go on and neglect something that
be ought to do until he is caught and then una-
ble to do it and protect hia right, that would be
a matter of criticism, we take it, by a news-
paper, if made in proper manner. It is a part,
or should be a part, of the ethics in a magis-
trate'a office the same aa a part of the ethics in
the common pleaa court. No judge in the court
of common pleaa who bad any regard to the
proprieties of life and of his office should sit in
a case in which be had the least interest. He
would call in another judge. He ought not to
sit in a case where the relations between him-
self and Bome suitor were so close aa even to
cast suspicion upon bim, and a magistrate who
brought a suit in his own court for a claim in
which he was personally interested in the mind
of the conrt would be guilty of misconduct, to
say nothing further about it.
Verdict for defendant, and Judgment tbere-
on. Plaintiff appealed.
Argued before BROWN, C J., and POT-
TER, STEWART, FRAZER, and WAL-
LING, JJ.
Charles H. Soper, of Scranton, for appel-
lant John F. Scragg, Robert E. Scragg and
Harold A. Scragg, all of Scranton, for ap-
pellee.
PER CURIAM. In this action for libel
the verdict was for the defendant, and from
the Judgment on it the plaintiff has appeal-
ed. What Is termed the "first assignment
of error" Is but a legal conclusion of counsel,
and Is therefore dismissed. By the second
assignment error Is charged in the quoted
portion of the Instructions to the Jury.
While the learned trial Judge might properly
have omitted from his charge what is com-
plained of, no legal error is discoverable in
It, and the Judgment is therefore affirmed.
(2S7 Pa. 320)
In re PENNSYLVANIA COAL COMPANY'S
ASSESSMENT.
(Supreme Conrt of Pennsylvania. March 23,
1917.)
Taxation ®=»493(8)— Review— Finding.
Where it appeared that the board of revi-
sion and appeal in making findings of fact as
to the value of coal lands assessed considered
the evidence and weighed it, their findings will
not be disturbed on appeal.
Appeal from Court of Common Pleas, Lack-
awanna County.
In the matter of the assessment and valua-
tion of coal land of the Pennsylvania Coal
Company. From an order of the board of
revision and appeal fixing the value of coal
lands, tlie owner appeals. Affirmed.
Appeal from valuation of coal lands at
triennial assessment iff the board of revision
and appeal. The opinion of the Supreme
Court states the facts. The court in banc
assessed the Pennsylvania Coal Company's
property at $300 per foot acre. Pennsylvania
Coal Company appealed.
Argued before BROWN, C, J., and POT-
TER, STEWART, FRAZER, and WALLING,
JJ.
Frank W. Wbeaton, of WUkes-Barre, and
3cim P. Kelly, Henry A. Knapp, James H.
Torrey, James EX Burr, M. J. Martin, D. R.
Reese, and John R. Wilson, all of Soranton,
for appellant. H. C. Reynolds and H. L. Tay-
lor, Co. Sol., both of Scranton, for appellee.
PER CURIAM. The appeal of the Penn-
sylvania Coal Company from the valuation
and assessment of its coal lands in Dunmore
borough by the board of revision and appeal
for the county of Lackawanna was heard
by the court below in banc, and the finding of
its Judges was that the value of those lands
on January 1, 1918, was $400 per foot acre.
Following a rule of uniformity, they reduced
It to $300 per foot acre for assessment pur-
poses, or $25 less than the valuation for the
purposes of taxation fixed by the board of
revision and appeal. What we are asked to
change on this appeal is the finding of fact
by the judges of the court below in fixing the
valuation of the lands. It was for them to
fix this after the consideration of the evidence
in the case and giving due regard to the
weight thereof. Lehigh Valley Coal Co. v,
Northumberland County Commissioners, 250
Pa. 515, 95 Atl. 712. They seem to have fol-
lowed this rule, and, after duly considering
what was submitted to them, we cannot say
their finding was erroneous.
This appeal is therefore dismissed without
costs to either party.
(ST Pa. sn)
In re McMURRAT'S ESTATB.
(Supreme Court of Pennsylvania. March 23,
1917.)
Appeal from Orphans' Court, Allegheny
County.
On reargument Former decision (256 Pa.
233, 100 Atl. 798) adhered ta
Argued before BROWN, C. J., and MES-
TREZAT, STEWART, MOSCHZISKER, and
FRAZER, JJ.
Charles K. Robinson and Frank H. Ken-
nedy, both of Pittsburgh, for appellant. John
S. Robb, Jr., and John Rebman, Jr., both of
Pittsburgh, for appellee.
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Pa.)
BlXIiEB ▼. SWARTZ
647
PER CURIAM. After the re-reargoment of
this appeal, ordered upon the application of
the ai^iellee, -we are still quite clear that the
learned court below erred In substituting Its
discretion for that of the register, which had
not been improperly exercised.
Our decree of January 8, 1917 (McMurray's
Estate, 256 Pa. 233, 100 AtL 798), wlU there-
fore not be disturbed.
(257 Pa. 300)
BIXLER et al. y. SWARTZ.
(Supreme Court of Pennsylvania. March 19,
1917.)
Apfkai. and Ebbob «=»954(4) — Review— In-
JUHCTIOK.
An order continuing a preliminary injunc-
tion aKainst interference with plaintiff s posses-
sion of a storeroom and against any summary
action at law to recover its possession will not
be disturbed on appeal, where plaintiffs were
in lawful occupancy under a lease and defendant
was threateninf to oust them.
Appeal from Court of Common Pleas,
Northampton County.
Bill In equity for an Injunction by Fannie
T. Blxler and Arthur B. Blxler, Individually
and as partners trading as A. B. Blxler &
Co., against Mark T. Swartz. From a decree
continuing a preliminary Injunction, defend-
ant aK>eals. Appeal dismissed.
The facts appear In the following opinion
by McKeen, J., in the common pleas:
The defendant moved to dismiss the bill and
the preliminary injunction granted thereon in
the above-stated case for the reason that there
are no injunction affidavits such as are required
by the equity rules, the injunction affidavits hav-
ing been made by the parties to the bill, and
for the further reason that the bill does not dis-
close any averment or allegation which would
entitle the plaintiff to equitable relief and to
an injunction, preliminary or otherwise. On the
6th day of July, 1911, Fannie T. Blxler, Ar-
thur B. Bixler, and Samuel P. Ludwig, co-
partners doing business as "the C. W. Bixler
Company," entered into a written lease of the
premisea in question with the Northampton
Trust Company, trustee, duly appointed by the
orphans' court of Northampton county under
the will of Charles Pomp, deceased, for the term
and period of 10 years from the Ist day of Au-
gust, 1911, upon the terms and covenants therein
set forth, which said lease was signed by the
said copartners as follows: "The C. W. Bixler
Company, by Samuel P. Ludwig. Samuel P.
liudwig. Arthur B. Bixler. Fannie T. Bixler."
The firm, instead of using the name "the C. W.
Bixler Company," set forth in the lease, used
the name of C. W. Bixler & Co. There was nev-
er any written partnership agreement between
the copartners until the 14th day of September,
1914, when' a written agreement was entered
into between the parties, to wit, the estate of
O. Willis Bixler, by the executors, Fannie T.
Bixler and Arthur B. Bixler; Arthur B. Bix-
ler, individually, and Samuel P. I/udwig. The
estate of O. Willis Bixler owned a one-fifth in-
terest in said partnership, Arthur B. Bixler a
two-fifths interest, and Samuel P. Ludwig a two-
fiftbs interest. These interests were the same
when the original partnership was entered into
by the parties. Samuel P. Ludwig, one of the
partners, diiJ on the 15th day of June, 1016,
iind bis interest, under the terms of the part-
nership agreement, was acquired by Arthur B.
Bixler, and the firm name was changed to Ar-
thur B. Bixler & Co., composed of Arthur B.
Bixler, now owning a four-fifths interest in
said partnership, and Fannie T. Bixler, repre-
senting the estate of C. W. Bixler, a one-fifth
interest; the partnership being carried on in
the same manner and under the terms of the
partnership agreement by the surviving partners
with the exception of the change in the firm
name. The lease contains a clause which reads,
"This agreement shall be binding upon the ex-
ecutors, administrators, successors, or assigns
of the parties hereof ;" also a clause which pro-
vides, "And the parties of the second part also
agree not to sublet the said demised premises,
or any portion thereof, or to assign this lease
either by themselves, judicial sale, operation of
law, or otherwise, without permission in writ-
ing to that effect first had and obtained from
the said party of the first part" On May 18tb,
during the tenancy of plaintiff, the real estate, a
part of which was occupied by plaintiff by
virtue of the lease, was sold to Stanley D. How-
ell and Paul M. Thomas, who on the same day
conveyed the same to Mark T. Swartz, the de-
fendant. On August 1, 1916, the quarter's rent
then due was paid to and accepted by defend-
ant; the check was signed, "0. W. Bixler &'
Co., per A. B. Bixler." On November 1, 1916,
the rent then due was tendered defendant by
check signed "A B. Bixler & Co., per A. B.*^"
On the face of the check appeared the words,
"A. B. Bixler & Co., successors to C. W. Bixler
& Co." This check was refused by defendant,
and tender in gold for amount of rent due was
afterwards made by plaintiff to defendant, and
also refused. On November 29, 1916, plaintiff
received a quit notice from the defendant, noti-
fying and requiring plaintiff to quit and deliver
up possession of the premises in question on the
1st day of January, 1017.
The plaintiff, under the terms of the written
lease, is in the lawful occupancy and posses-
sion of the demised premises, and under the facts
presented to the court, there havinpr been no
nreach of any of the covenants therein express-
ed, cannot be disturbed in the enjoyment of the
occupancy and possession of snid premises.
Taking up the question of the sufficiency of the
injunction affidavits, it is contended that these
affidavits were made by complainants, and under
the equity rules must fall. Defendant has sub-
mitted anthoiity to the effect that a bill and
preliminary injunction must be sustained by at
least two injunction affidavits, senarate and
apart from the affidavit to the bill, and that
these aflidavits mnst be made by different per-
sons, neither of whom is a party to the proceed-
ings, and must each contain the substance of
every material allegation contained in the bill.
This is correct as a general proposition, but
cannot be rigidly adhered to, where the enforce-
ment of such a ruie would work injustice. It
can reasonably be concluded, and it was so stat-
ed at the hearing, that complainants were the
only parties having knowledge of the facts al-
leged and averred in the bill, and, under these
conditions, equity would not demand the strict
enforcement of a rule which would bar com-
plainants from obtaining equitable relief. In
Hinnershiti v. United Traction Co., 206 Pa. 91,
97, 55 Atl. 841, Mr. Justice Mitchell, in passing
upon an equity rule, said: "The equity rules
were promulgated by this court under the au-
thority of an act of assembly, and it has been
said that they have 'all the force and effect of
a positive enactment.' By this was meant that
they were established as rules of equity practice
in all the courts of the commonwealth, and must
be followed and enforced as such. * • • But
it was not intended to say that they were in-
exorable under aU possible circumstances, or
to take them out of the ordinary equitable con-
trol of a chancellor in the application of chan-
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101 ATLANTIC REPORTER
(Pa.
eery rules to exceptional cases. Such a con-
struction might easily make them more oppres-
slTe than mandatory statutes. • • • They
ere the rules of all the courts, to be enforced
as of course in all of them, and not relaxed or
disregarded as matter of mere indulgence or con-
venience. But, on the other hand, they are, like
all other rules of practice, subject to the judi-
cial discretion of the chancellor as to their strict
enforcement under circumstances productive of
injustice or exceptional hardship. This doe-
trine was also approved by Mr. Justice Mosch-
Eisker, in Sunbury Borough v. Snnbury & Sus-
quehanna Ry. Co., 241 Pa. 357, 360, 88 Atl. 543,
and by Mr. Justice Potter, in Crennell v. Ful-
ton, 241 Pa. 572, 579, 88 Atl. 783.
The other reason advanced by defendant, that
the bill does not disclose any averment or alle-
gation which would entitle plaintiff to equitable
relief and to an injunction, preliminary or oth-
erwise. In view of the lawful occupancy and pos-
session of plaintiff of the premises under the
terms of the written lease, cannot be sustained.
In Denny v. Fronheiser, 207 Pa. 174, 56 Atl.
406, approved in Kaufmann v. IJggett. 209 Pa.
87, 92. 58 Atl. 129, 67 L. R. A. 353, 103 Am. St.
Rep. 988, it was held: "That a court of equity
has jurisdiction in a proper case to restrain
proceedings under the landlord and tenant acts
of 1772 and 1863." In the case at bar. under
the facts presented at the hearing on the mo-
tion to continue preliminary injunction, the
plaintiff is entitled to a continuance of the
same, and a refusal to grant such relief would
be contrary to the principles governing equity
practice.
The court continued a preliminary injunc-
tion which it had granted. Defendant ap-
pealed.
Argued before MEJSTREZAT, POTTER,
MOSCHZISKER, FRAZER, and WALr
LING, JJ.
W. S. Klrkpatrlck and Smith, Paff & Laub,
all of Easton, for appellant. P. C. Evans and
Clarence Beck, both of Easton, and Eklward
P. Stout, of Jersey City, N. J., for appellees.
PER CURIAM. This la an appeal from an
order of the court below, continuing a pre-
liminary Injunction restraining the defend-
ant from Interfering with the plaintiffs' pos-
session of a storeroom in the dty of Easton
and from instituting or proceeding with any
summary action at law for that purpose. We
have carefully considered the facts disclosed
by the record, and think there were reason-
able grounds for the action of the court be-
low, and therefore. In accordance with our
established practice, we will not, on this ap-
peal, further consider the merits of the case.
The appeal Is dismissed at the costs of the
appellant.
(257 Pa. 338)
GEISSLER et al. v. LAUTHER.
(Supreme Court of Pennsylvania. March 23,
1917.)
Wills <s=3599 — Constbuction — Estate De-
vised— Fee.
Under a will which, after providing for the
erection of a monument and the payment of tes-
tator's debts and tor a trust estate, suggested
that the residue of the realty be taken by his
children at the appraisement therewith inclosed,
the children took an estate in fee simple in the
real estate.
Appeal from Court of CJommon Pleas, Berks
County.
Assumpsit by Harry C. Gelssler and Annie
L. Gelssler, his wife, and others, against
Louis G. Lauther, for balance due as pur-
chase money under an agreement for tb9
sale of real estate. Judgment for plaintiffs
for want of a sufficient affidavit of defense,
and defendant appeals. Affirmed.
The following Is the opinion below of Wag-
ner, J. :
The plaintiffs in this case daim from defend-
ant the sum of $1,990, the balance due as pur-
chase money upo7i an agreement entered into by
the plaintiffs with the defendant for the sale
to him of 1335 North Tenth street, Reading,
Pa. The only defense is that the plaintiffs are
not the owners of said property in fee simple, for
the reason that under the will of Henry C-
Geissler, deceased, they did not take an estate in
fee simple.
In the case of Henry C. (Jei.ssler, Jr., Blarie
L Geissler et al. v. Reading Trust Company,
Trustee, etc. (opinion just filed), we have con-
sidered the effect of the clauses in the will of
Henry C. Geissler, deceased, in which he at-
tempted to create a trust estate for his children
and grandchildren. The property in question iu
this suit is no part of the estate of the said
Henry C. Geissler, deceased, attempted to be
placed in trust, but belongs to that designated
in his will as the "rest, residue, and remainder
of my estate." The only clause in the will that
refers to this residue of the estate is item 11,
which is: "As to the rest, residue and remain-
der of my estate, I suggest that the real estate
be taken by my children at the appraisement as
herewith inclosed and hereinbefore referred to,
also the securities, at the then market values."
The claim of the plaintiff is that the testa-
tor, having out of his estate made provision for
the erection of a monument, the payment of his
debts and a trust estate, by this item 11 recoR-
nizes that, without a specific bequest of the resi-
due of his property, it, upon his death, would
pass to bis four children in equal shares, under
the intestate laws; that the only purpose of
this clause is to give a sugcestion of a valuation
of the real estate to facilitate an equitable dis-
tribution thereof. The only two constructions
that can be placed upon this item 11 are that it
merely fixes the price at which the children are
to take the residue of his estate under the in-
testate laws, as contended for by the plaintiffs;
or, second, that it is broad enough to give to the
children the real estate at the price fixed. P"'
the purposes of this case it is immaterial which
of these is correct, as under either of them the
children of Henry Geissler, deceased, have an
estate in fee simple in the property described
in plaintiff's declaration.
The lower court entered Judgment In favor
of the plaintiffs for want of a sufficient affida-
vit of defense tot the sum of $1,990. De-
fendant appealed.
Argued before BROWN, C J., and MES-
TREZAT, STEWART, MOSCHZISKER, and
FRAZER, JJ.
Walter B. Craig and Jefferson Snyder,
both of Reading, for appellant H. Robert
Mays, of Reading, for appellees.
PER CURIAM. The Judgment In this case
is affirmed, on the opinion of the learned
court below In directing it to be entered.
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COMMONWEALTH t. MATTER
640
(2ST Pa. a»
COMMONWBAI/TH v. MATTER.
(Supreme Goart of PenDsylTania. March 23,
1917.)
1. Statutes ^91(2) — "Ix>cai, ob Spkoial
Law"— CONBTITOTIONAI, PBO VISIONS.
Act June 16, 1911 (P. L. 1027), providing
for the appointment of a capitol park commis-
sion to obtain for the commonwealth for park
pnrposes such land as the commission might
wish ^rithin certain boundaries, is not a local
and special law in violation of Const, art. 3, 8
7, prohibiting an; local or special legislation
relating to the affairs of counties, cities, towns,
wards, boroughs, or school districts.
[Ed. Note.— For other definitions, see Words
and Phrases, First and Second Series, Local
Iiaw ; Special Law.]
2. Statutes «=»8%(1>— Enactment— Advbb-
The validity of Act June 16, 1911 (P. L.
1027), appointing a capitol park commission
to obtain land for the commonwealth for park
purposes, which bad been duly passed by both
branches of the Ijegislature and approved by the
Governor, could not be impeached by a state-
ment in an affidavit of defense in the common-
wealth's action of ejectment for land appropriat-
ed by the commission that the act was invalid
for the reason that it had not been advertised.
3. Exinknt Domain ®=>71— Compensation—
OONSTITnTIONALITY OF STATDTB.
Such act appropriating $2,000,000 to carry
out its provisions, and providing that a writ of
mandamus might issue K>r paying any judgment
which the owner might recover against the
commonwealth for the taking of his land, in the
absence of any averment that the appropriation
was insufficient to cover the value of lands tak-
ea, and in view of the owner's appearance be-
fore the capitol park commission in regard to
the value of the land taken, and his nending
appeal from the valuation fixed by the com-
mission, did not violate Const, art. 1, I 10, on
the ground that no compensation bad either been
paid or secured for the land taken.
Api)eal from Court of Common Pleas, Dau-
phin County.
B]|]ectment by the Commonwealth of Penn-
sylvanla against H. Homer Matter. Judg-
ment for plaintiff for want of a sufficient
affidavit of defense, and defendant appeals.
Affirmed.
The following Is the opinion of McCarrell,
J., In the court of common pleas, snr plaln-
tlfTs rule for Judgment for want of a suffl-
cient affidavit of defense:
This action is brought to obtain possession of
certain real estate in the Eighth ward of the
city of Harrisburg, known as No. 136 North
Fourth street. This land lies within the park
extension zone as defined in the act of June 16,
1911. (P. L 1027). This act provides for the
appointment of a capitol park commission for
the purpose of obtaining for the commonwealth
for park purposes such land as the commission
may desire to take for the commonwealth within
the boundaries mentioned in the act. The com-
mission is authorized as far as practicable to
acquire by purchase the lands included within
said boundaries upon such terms, price, or con-
sideration as may be considered by it to be rea-
sonable and can be agreed upon between it and
the owners of lands. If unable to agree the
commission is authorized to determine what land
within said boundaries it will take for the use
of the commonwealth, to give notice to the own-
ers or reputed owners of their intention to take
the lands belonging to such owners, for at least
60 days, and then provides that after the giving
of said notice for said time the commission shall
enter upon and take possession of the lands, and
declares that such entry and possession "shall
vest in the commonwealth the absolute title to
the lands so entered upon."
[1,2] The declaration in this case avers that
under this act of assembly the commission, be-
In^ unable to agree with the defendant upon tiie
price of the lands in question here, gave notice
of its intention to take the said lands on De-
cember 28, 1915, and 60 days thereafter made ,
entry of possession thereon. According to the
terms of the act the title to the premises was
vested absolutely in the commonwealth when
this action was taken. The affidavit of defense
and the supplement thereto do not deny that this
proceeding was had by the capitol park exten-
sion commission as stated, but contends that the
act under which the commission has proceeded
is local and special, and invalid because not ad-
vertised. It was duly passed by both branches
of the Legislature and approved by the Gover-
nor, and according to a long line of decisions in
this state its validity cannot now be. impeached
because of any statement contained in the affi-
davits of defense. It must be conclusively pre-
sumed that everything was done that the law re-
quired to be done. Besides, we are not satisfied
that the act is local or special legislation within
the meaning of the constitutional provision.
Const, art 3, { 7. It expresses the determina-
tion of the commonwealth to provide lands for
the extension of its capitol park within certain
boundaries, and appoints a commission to make
purchases, if the same can be done, and to ob-
tain title otherwise in case an agreement as to
price cannot be reached. The right of the com-
monwealth to take land for this purpose cannot
be questioned, and the method of obtaining title
is not in violation of any constitutional provi-
sion. The affidavits of defense are quite volu-
minous, and refer to many matters touching oc-
currences in connection with the passage of
the act and concerning the conduct of individu-
als with respect thereto, but none of these mat-
ters, in our opinion, can be considered now.
The act must be regarded as a valid statute of
the commonwealth, binding upon all its citizens
and the commonwealth as well.
[3] In the original affidavit of defense in sup-
port of defendant's allegation that the taking of
this land is in violation of article 1, 1 10, of the
Constitution, it is alleged that no compensation
has either been made or secured for the lands
in question here, and that "to-day there is no
fund in the state treasury to pay." The act,
however, makes an appropriation of $2,000,000
for the purpose of carrying into effect its pro-
visions and making payment for the lands di-
rected to be acquired. In the present case the
defendant had a hearing before the commission
in regard to the value of the land described in
this writ, and the commission fixed a v^uation,
from which an appeal has been taken in due
course by the defendant, and which appeal is
now awaiting trial and should be promptly
heard. The second section of the act provides
that in all cases where the value of propwty is
fixed by judgment upon an appeal taken nom
the award of the commission, the court is au-
thorized and empowered to issue a writ of man-
damus to the proper officer to secure the pay-
ment of such judgment. There is no averment
in the affidavit of defense that the amount ap-
propriated as aforesaid is insufficient to cover
the value of the land described in tihe writ when
the same is ascertained upon the pending ap-
peal, and we regard the provisions contained in
the act appropriating the money and empower-
ing the issuing of a writ of mandamus for pay-
ing any judgment recovered as a sufficient secu-
rity for just compensation for the taking of de-
fendant's lands within the meaning of the con-
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atitutlonal proTiaion referred to. The afBdavits
of defense allege that the dimensioDs of the land
taken by the commonwealth ar« greater than
are set out in this writ. If upon the trial of
the pending appeal it is shown that the dimen-
sions of the property are not correctly stated,
proof will be heard as to the exact dimensions,
and the jury will be instructed to ascertain the
fair market value of all the lands owned by the
defendant which are taken by the commission
for the use of the commonwealth.
We have carefully considered all the allega-
tions of the affidavits of defense. As already
stated, there is no denial of the procedure taken
by the commission for the purpose of obtaining
title for the commonwealth to the lands describ-
ed in the writ, and these proceedings according
to the statute vest the absolute title to the lands
in the commonwealth of Pennsylvania. We are
therefore of opinion that neither the original nor
supplemental affidavit of defense discloses any
anmcient answer to the plaintiCTs claim of title,
and the commonwealth is at liberty to enter
Judgment in favor of the commonwealth and
against the defendant for the lands described in
the writ To this conclusion the defendant
excepts, and at hia request an exception is now
sealed.
Argued before BROWN, O. J., and MES-
TREZAT, STEWART, MOSCHZISKER, and
FRAZDR, JJ.
H. Homer Matter, of Harrlsburg, In pro.
per. Joseph U Kun, Deputy Atty. Gen., and
Francis Shunk Brown, Atty. Gen., for the
Oommonwealth.
PER CURIAM. This appeal ought to be
quashed for flagrant disregard of our rules
relating to the statement of questions Involv-
ed and assignments of error, but, that there
may be an end to the litigation, the Judg-
ment la afl^med on the opinion of the learned
court below. In pursuance of which It was
entered.
(S7 Fa. S64)
SMTZINGBR et al. v. BECKER et al.
(Supreme Court of Pennsylvania. March 19,
1917.)
1. EQurrr «=»97— Action fob Aooodntino—
Pasties.
Under rule 22 of the Equity Rulee of the
Supreme Court providing that where parties on
either side are very numerous, and cannot readi-
ly be brought before it, the court may dispense
with making all of them parties, etc, the gran-
tees or heirs of grantees of certain lots sold
them by the trustees of an unincorporated chni-
itable association holding land for the sole pnr-
|)08e of a general cemetery for the use of the
people of the vicinity, and to manage and im-
prove it, were proper parties to a bill in eq-
uity for an accounting of the proceeds received
from the sale of lots, and for the removal of the
trustees.
2. Chawties «c»43 — OHABrrABLE Um — Ap-
plication or Income— Accounting.
Such trustees who had appropriated part
of the amount received from the sale of lots and
other income arising therefrom to the erection
of halls and other buildings for the purposes of
the association were liable, at the suit of the
holders of certain of the cemetery lots, to an
accounting of the funds received, and subject to
an injunction against applying income to other
purposes than that stated in the deed.
Appeal from Court of Common Pleas,
Schuylkill County.
Bill in equity by Jacob R. Seitzinger and
others for an accounting and for the removal
of Ejdward Becker and others, trustees of
Harmony Lodge "No. 86, of the Borough of
Tamaqua, of the Independent Order of Odd
Fellows of Pennsylvania, and others. Decree
for complainants, and defendants appeal.
Appeal dismissed, and decree affirmed.
After a hearing on bill and answer Brumm,
J., in the court of common pleas, found the
following facts and coQClusions of law:
Facts.
On February 10, 1913, the deed from the Lit-
tle Schuylkill Navigation, Railroad & Coal Com-
pany to James M. Hadesty et al., trustees of
Harmony Lodge, etc., as set forth in complain-
ants' pleadings, was introduced, and its contents
not disputed by respondents.
On same day was introduced the deed from the
Odd E^lows Cemetery of Tamaqua, to John F.
Boyer, one of the complainants, dated the 10th
day of February, 1913, for lots Nos. Ill and
11() (with description), being a part of the tract
of land which the Little Schuylkill NavigatioD,
Railroad & Coal Company above mentioned,
granted and conveyed to James M. Hadesty and
others. This deed and other testimony sliowed
that the complainants as originally named in
this bill, had a special, individual interest in
said cemetery as purchasers or heirs of pur-
chasers of burial lots. The acceptance of the
trust under the deed was shown and admitted by
respondents. The said trustees of said Harmony
Ix>dge have held, improved, and managed said
tract of land, for the purpose of a general cem-
etery for the use of the people of the borough of
Tamaqua and vicinity, but have acquired more
money by the sale of lots, etc., than was neces-
sary for that purpose, and have appropriated a
large amount of money thus acquired, for the
benefit of said Harmony Lodge of Odd Fellows,
in the erection of buildings and other purposes
wholly disconnected from and forming no part of
said cemetery. The complainants have with-
drawn their claim as to any alleged discrimina-
tion in favor of Gen. Doubleday Post; there is
no other discrimination in favor of any por-
tion of the inhabitants of the borough of Ta-
maqua and vicinity, claimed.
While the respondents admit that they have
applied certain moneys received from the sale
of lots, to the cost of the erection of a building
belonging to and used in connection with the
charitable purposes of the respondents, they
also alleged that they purchased five acres of
land adjacent to the cemetery, for which they
paid over $4,000, and expended several sums in
clearing and improving the same, and that they
have taken up bonds amounting to $7,000, whidi
were used by said Harmony Lodge to secure a
loan for the erection of its hall on Broad street,
Tamaqua; that they have invested $9,000 in
first-class bonds, which are now in the possession
of the treasurer of the respondent trustees, and
that S2,000 of said surplus is in cash, which ii
now in the possession of said treasurer: that
they raised a large sum of money by a fair held
by said Harmony Lodge, and which money wai
exclusively devoted in improving said cemetery,
etc., and sundry other financial transactions;
all showing, or tending to show, that the money,
or part of the money derived from the sale of the
lots of the cemetery, in charge of the respondeat
trustees, under the deed from the Little Schuyl-
kill Navigation Railroad & Coal Company, was
appropriated to other purposes than to improve,
manage, and hold for the sole purpose of a gen-
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SBITZINaER ▼. BECKER
651
eral cemetery for the Dse of the people of the
borough of Tamaqaa and ricinitr.
Assuming for argument's sake, that the deed
from the Schuylkill NaviKation Railroad & Coal
Company to James M. Hadesty et al., trustees,
passed title in fee simple, yet Uie condition sub-
sequently attached to said grant involves two
main features: First, that the land shall be im-
proved, managed and held for the sole purpose
of • general cemetery; second, this purpose is
limited, "for the use of the people of the borough
of Tamaqua and vicinity, and no discrimination
shall be made for or against any portion of the
inhabitants, but the rules and regulations of
said cemetery shall be so formed as to secure
equal ruhts and privileges to all," etc.
The first feature of this condition has been
carried out There is no dispute. Therefore
the whole matter of contention is involved in the
second feature as to whether the trustees have
managed and held the property for the use of
the people of the borough of Tamaqua and vi-
cinity, BO as to secnre equal rights and privi-
leges to alL
[I] The persons for whose use and benefit this
right of sepnlcher was granted being the peo-
ple of the borough of Tamaqua and vicinity, the
respondents claim that the complainants are
not the proper parties to maintain the bill in
any event, because they are only a part of the
beneficiaries named in the grant, and that the
grant to the people of Tamaqua means either:
(A) The corporation of the borough of Tama-
Sna; or (B) the people as a unit; and that
lierefore the only authority to bring this action
would be the borough council of Tamaqua, or
the action by the majority of the people of
Tamaqua, acting as a body. Rule 22 of the Eq-
uity Rules of the Supreme Court provides:
"That where parties on either side are very
numerous, and cannot, without manifest incon-
venience and oppressive delays in the suit, be
brought before it, the court in its discretion,
may dispense with making all of them parties,
etc. ITiis rule in addition to the fact that the
complainants are the grantees or heirs of gran-
tees of certain lots sold to them by the re-
spondents, gives them such interest and rights
in the premises as to make them proper par-
ties to maintain the bill.
[2] This brings us to the main issue, which is
OB to whether the respondents had a right to
charge more money for the lots and the right of
sepulcher than was necessary for the improve-
ment and maintenance of the cemetery, and. to
use any or all of the surplus money so received,
for the benefit of Harmony Lodge in the erec-
tion of buildings and other purposes wholly dis-
connected from and forming no part of said
cemetery.
While it is true that the deed sets forth that
tlie consideration for the land was $226.88 for
their right, title, and interest In said land, yet it
also states, "Eacept as is hereinafter provided,"
which proviso is aa follows: "Reserving out of
and from the same, all mineral, coal and iron,
etc • • • It is further provided, that the
trae intent and meaning of this indenture is that
the tract or piece of land above described is ac-
cepted on the express condition that the same
shall be improved and managed and held for the
sole purpose of a general cemetery for the use
of the people of the borough of Tamaqua and
%'icinity, and no discrimination shall be made for
or against any portion of the inhabitants, but
the rules and regulations of said cemetery shall
be so formed as to secure equal rights and privi-
leges to all of whatever sect, denomination, so-
ciety, association or name. In case the mana-
gers of said cemetery shall attempt to violate or
evade this express provision and condition the
said lands herein mentioned and intended, shall
immediately become vested in the snid people
themselves as fully and effectually as if they had
been the original grantees herein named." This
reservation includes not only the usual mineral
rights incident to lands in that locality, but also
states spedfically tiie purpose of the grant, and
the use to which every x>article of said land shall
be put, limiting that purpose and use, to the peo-
ple of the borough of Tainaqua and vicinity.
While the persons for whose use and in whose
interest this grant was made may be somewhat
indefinite by reason of the geographical limits
stated, yet the intent, object and purpose of the
^antor, as to what use shall be made of said lot
is very clearly and specifically stated, and po«d-
tively limited, and does in no way include Har-
mony Lodge as a beneficiary for the use, occu-
pancy, or enjoyment of any of the land, or any
proceeds, increments or benefits arising out of
or from said land, inconsistent with the provi-
sions and purposes of the grant. They might as
well disregard the coal and mineral reservation
with the right to mine, etc., as to repudiate the
exception or covenant running with the land,
concerning its use, etc.
The evidence does not clearly establish the fact
that any money received from the proceeds of
this lot has been appropriated to any other use
than the improvement and maintenance of the
cemetery, as the testimony shows that another
tract of land was purchased, lots sold, etc., cer-
tain sums of money received from a fair held by
said lodge and other sources, and no account ren>
dered to show how much, if any, of the moneys
received from the joint tracts and other incomes,
was appropriated to the sole benefit of Har-
mony Liodge. An account, therefore, should be
rendered of all moneys received from and ex-
pended on the lot granted by the Little Sehuyl-
kill Navigation Railroad & Coal Company, for
the uses set forth in said grant, exclusive of any
and all moneys received from any other source.
so that proper disposition may be made of all
moneys if any, that may have been improperly
appropriated.
The plaintiffs contended: "That the defend-
ants have abused their trust ; that the deed above
referred to only created a determinable fee, and
that, upon the happening of the event named in
the said deed, namely, the actual failure on the
part of the grantees named in the deed to carry
out the purposes of the trust, or the evincing of
an intention to evade the trust having arrived,
the fee would revert to the grantor, which was a
corporation, and is presumably still in existence,
but for the express provision in the clause creat-
ing the trust that upon the misfeasance or mal-
feasance of the trustee, the title to the same
should immediately vest as fully in the people of
Tamaqua and vicinity as though thev had been
the original grantees in the deed. Thus it evi-
dences the intention of the grantor that all the
people of the borough of Tamaqua and vicinity
were to share in the benefits of this ground, and
that if the trustees selected by the grantor to
carry out the purposes of this tract should fail
in the discharge of their duty, title to the prop-
erty should not vest absolutely in such errant
trustees, but that the same interest reverting to
the grantor should immediately vest in the peo-
ple themselves. We take it that the only way
in which the people can get the benefit of this
alternative provusion is by means of the appoint-
ment of other trustees by this court, who wUl,
instead of diverting the property from its prop-
er uses, hereafter devote it to the proper execu-
tion of the trust created by the said dMd."
We do not think the testimony is sufficient to
sustain the claim "that the defendants have
abused their trust," even assuming that the de-
fendants appropriated some of the proceeds from
the sale of these lots, believing that they had
such title in fee simple, as made them the abso-
lute owners to appropriate the proceeds over and
above the amount necessary to carry out the
purpose of sepulcher as stated in the will. It
was at most an error that can be rectified by
rendering a full account of their transactions,
and refunding all moneys, if any have been er-
roneously misappropriated.
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101 ATLANTIO REPOUTEB
(Pa.
We therefore find the following facta:
First. That the LitUe SchuylkiU Navigation
Railroad & Coal Company, by a deed dated the
lOth day of April, A. D. 1865, granted and con-
reyed in fee simple to Jamea M. Hadesty, Henry
Bnterline, Benneville L. Fetherolf, Francis X.
Bender, and William A. Shoemaker, then trus-
tees of Harmony Lodge No. 86, a certain piece
of land containing 15 acres more or less, situate
in Schuylkill township, with the usual min-
eral and coal reservation incident to lands in
that locality, and with the further proviso
that the true intent and meaning of this inden-
ture is that the tract or piece of land above de-
scribed is accepted on the express condition that
the sane shall be improved and managed and
held for the sole purpose of a general cemetery
for the use of the people of the borough of Tam-
aqua and vicinity, and no discrimination shall
be made for or against any portion of the inhabi-
tants, but the rules and regulations of said cem-
etery shall be so formed as to secure equal rights
and privileges to all of whatever sect, denomina-
tion, society, association, or name. In case the
managers of said cemetery shall attempt to vio-
late or evade this express provision and condi-
tion, the said lands herein mentioned and in-
tended shall immediately become vested in the
said people themselves as fully and effectually as
if they had been the original grantees herein
named.
Second. The Odd FeUows' cemetery of Tama-
qna, by deed dated the 10th day of February,
1913, granted and conveyed to .Tohn F. Boyer.
one of the plaintiffs aforesaid, two lots of
ground, Nos. Ill and 110, being part of the land
conveyed to the trustees of said Harmony Lodge
for cemetery purposes.
Third. That the trustees of Harmony Lodge
have bought additional, adjoining ground for
cemetery purposes, and from the sale of lota
from both these said pieces of ground and the
proceeds of a fair and other sources of income
have improved and managed said tract of land
for the purpose of a general cemetery, for the
use of the people of the borough of Tamaqua and
vicinity.
Fourth. That they have appropriated part of
the income from these various sources to the
erection of a hall and other buildings, and
have not made or filed separate or itemized ac-
counts of their receipts and expenditures f<Nr
the various purposes stated.
Fifth. That under the evidence, we are unable
to ascertain how much, if any, of the money
received for the sale of lots purchased from the
little Schuylkill Navigation Railroad & Coal
Company was appropriated for any other pur-
pose than the improvement and management of
said tract of land, for the purpose of a general
cemetery for the use of the people of the bor-
ough of Tamaqua and vicinity.
Law.
First We find that the complainants are
proper parties to maintain this bill.
Second. That the doctrine of laches is not ap-
plicable under the facts shown in this esse.
Third. That Charles Hodgkins et al. have not
forfeited their right to hold the property un-
der the terms of the deed from the tittle Schuyl-
kill Navigation Railroad & Coal Company to
James M. Hadesty et al., trustees of Harmony
Lt>dge.
Fourth. That said trustees should give an ac-
count of all moneys, if any, received by them as
trustees, not appropriated for the use and main-
tenance of a general cemetery ; also all mon-
eys so received, if any, which they have appro-
I>riated to the use of said lodge for its own pur-
pose.
Fifth. That the receipts from the sale of lots
of any of the ground deeded to them in the al-
leged will, as trustees, must be used for the
care and management of the cemetery, and in-
vested and kept as a fund for the purpose of
perpetually preserving and keeping the lots in
proper condition.
Exceptions were subeequently dismissed by
the court in banc and the following decree en-
tered: Now, the 8th day of November, 1915, it
is ordered, adjudged, and decreed, that the de-
fendants be restrained from appropriating any
money received from the sale of lots, or any
source, income or increment, from the 15i|
acres of land deeded by the Little Schuylkill
Navigation Railroad & Coal Company, to Ed-
ward Becker et al., as trustees of Harmony
Tjodge, for any other use than the maintenance
of said lot or any part thereof, for the purpose
of aepulcher, and as a cemetery under the pro-
visions of said deed.
That the defendants render a complete, item-
ized account of all moneys so received, or that
may hereafter be received from said lots, as
stated, over and above the amount necessary
for the repair and maintenance of said piece of
ground ; and said moneys, with the accruing
interest, shall be invested and appropriated from
time to time, for the perpetual maintenance and
proper care of said piece of ground, for the pur-
pose of sepulcher, under the provisions set forth
in said deed.
Argued before, BROWN, O. J., and MBS-
TREZAT, POTTER, FRAZBR, and WAL-
LING, JJ.
George M. Roads and R. J. OraefT, both of
Pottsville, for api)ellants. Otto E. Farqubar
and C. E. Berger, both of Pottsville, for ap-
pellees.
PER CURIAM. The five legal conclusions
of the learned chancellor below logically fol-
lowed bis five findings of fact, and, upon
these findings and conclusions the appeal Is
dismissed, and the decree affirmed, at appel-
lants' costs.
(26T p>. n4)
In re CONWAT'S ESTATE.
Appeal of GILROY.
(Supreme Court of Pennsylvania. March 23,
1917.)
1. WiuLB <©=316(3) — Undtjb Influence —
Question for .Turt.
An opportunity for the exercise of undue in-
fluence is insufficient to require the submissiott
of the question of undue influence to a jury.
2. Wills «=316(1) — Issux DBViSAvrr Vel
NoN— Question fob Jubt.
An issue devisavit vel non is a matter of
right, where the existence of a substantial dis-
pute upon a material question of fact is shown
by competent evidence, and where a verdict
against a will could be properly sustained by a
trial judge the issue should be submitted to the
jury; but where the trial judge would feel con-
strained to set aside a verdict against the will
ns against the weight of the evidence, there
would be no substantial dispute, and the issue of
devisavit vel non should be refused.
Appeal from Otphans' Court, Lackawanna
COnnty.
Elizabeth Gllroy, administratrix of the es-
tate of Mary McAndrew, deceased, appeals
from an order of the register of wills refus-
ing an issue of devisavit vel non In the es-
tate of Patrick J. Conway, deceased. Ap-
peal dismissed.
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EDELMAK ▼. CONNEIX
653
Argued before BROWN, a J., and POT-
TER, STEtWART, FRAZER, and WAIi-
LING, JJ,
Joseph O'Brien, James J. Powell, and
<%ariea P. O'Malley, all of Scranton, for ap-
pellant. M. J. Martin, Charles H. Welles,
J. H. Torrey, David J. Reedy, and Thomas
P. Hoban, all of Scranton, for appellee.
PER CURIAM. [1] Tb]fi Is an appeal from
the refusal of an Issue devlsavlt vel non.
One of the reasons given In asking for it
was that a fraud had been practiced upon
the testator by substituting the paper in con-
troversy at the time be signed it for another
which had been drawn for him as his last
will and testament. We have not been con-
vinced that the learned court below erred in
holding that the testimony was "wholly in-
sufficient to support any such finding." Nor
have we been convinced that error was com-
mitted In disposing of the other two branches
of the case, as to which the learned court
said:
"Some ten or more witnesses were called by
the proponent to establish testamentary capacity
of the decedent. They were men wbo had busi-
ness dealings with him, friends and his neigh-
bors, many of whom had known him for years.
They were in a position to hear him talk, to ob-
serve his actions and conduct, and note any
change in him. Before expressing an opinion as
to his mental capacity, they qaalified them-
selves by stating facts upon which it was based,
The evidence adduced by the contestant in our
nninion dnes not show any impairment of the
decedent's mental faculties, and there can be
no question under all the evidence that there was
any. Therefore the burden of proof is upon
the contestant to show undue influence. • • •
On this branch of the case it is enough to say
that the testimony is wholly insufficient to sup-
port a finding that Mrs. Conway exercised any
influence over the mind of the decedent at the
time of the making of the will. The most that
can be found from the testimony is that there
was an opportunity for the exercise of influence,
and this is held insufficient to submit to a jury
in Tyson's Estate, 223 Pa. 596 [72 AtX. 10^]."
[2] "An issue devlsavlt vel non is a mat-
ter of right, where the existence of a substan-
tial dispute upon a material question of fact
is demonstrated to the court by competent
evidence which, under the circumstances of
the case, measures in probative force up to
the requirements of the law; or, in other
words, as the rule has heretofore most often
been put, when, upon a review of all the
proofs, a verdict against the will could be
properly sustained by a trial Judge, the con-
troversy must be submitted to a jury, even
though the Judge should feel that, were he
sitting as a Juror, be would not draw the in-
ferences or reach the conclusions contended
for by the contestants. But If the testimony
is such that the Judge would feel constrained
to set aside a verdict aguliist the will as con-
trary to the manifest weight of the evidence,
determined according to relevant legal stand-
ards, it cannot be said that a substantial dis-
pute has arisen." Phillips' Est, 244 Pa. 35,
90 Atl. 457. "This simple and only safe test
Is supported alike by reason and authority."
Appeal of Knauss et al.. 114 Pa. 10, 20, 6 Atl.
394. 395.
Appeal dismissed, at appellant's costs.
EDELMAN et aL v.
(267 Pa. 317)
CONNELIj.
(Supreme Court of Pennsylvania. March 28,
1917.)
1. MUNTCIPAI, COBPORATIONS €=S>700(5)— COL-
LISION IN Stbeet— Neougbnck— Evidench:.
Evidence in an action for damages for in-
jury to an 11 year old boy, struck by an auto-
mobile while coasting on a bobsled, held to sus-
tain a judgment for defendant.
2. Neouoence 9=385(2)— Gontbibutobt Nbo-
LioEKCE — Child.
The measure of a child's standard for con-
tributory negligence is his capacity to under-
stand and avoid danger, and he is required to
exercise only that degree of care which persona
of like age, capacity, and experience might be
reasonably expected to naturally and ordinarily
use under like circumstances.
Appeal from Court of Common Pleas,
Lackawanna County.
Trespass by Louis Edelman, by bis next
friend, George Edelman, and George Edel-
man, against James L. Oonnell, to recover
damages for personal injury. Verdict for
defendant, and Judgment thereon, and plain-
tiffs appeal. Affirmed.
From the record it appeared that the
street on whlcA defendant was driving was
In an icy and slippery condition. The evi-
dence was conflicting as to the speed of de-
fendant's automobUe.
Argued before BROWN, C. J., and POT-
TER, STEWART, FRAZER, and WAL-
LING, JJ.
R. Ia Levy, C. P. O'Malley, and Leon M.
Levy, all of Scranton, for appellanta Frank
R. Stocker, O. H. Welles, Sr., and David J.
Reedy, all of Scranton, for appellee.
PER CURIAM. [1] The injuries for
which compensation is sought in this action
were sustained by a boy when he was 11
years and 4 months of age. With several
companions be was coasting on a bobsled,
which was struck by an automobile of de-
fendant driven along a street intersecting the
one down which the boys were sledding,
The contention of appellant that the court
below ought to have declared the defendant
guilty of negligence as a matter of law is
utterly untenable. That was a question of
fact, to be determined from the oral testimo-
ny in the case, in the light of which learned
counsel for appellee contended below, and
insist here, that the trial Judge would have
been justified in directing a nonsuit or a ver-
dict for defendant. Whether the verdict
was in hie favor for this reason, or on ac-
count of the contributory negligence of the
boy, does not appear.
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[2] As to the standard l^ which the con-
duct of the boy was to be measured on the
question of contributory negligence, the
learned trial Judge instructed the Jury, inter
alia, as follows:
"The measure of a child's standard for con-
tributory negligence is his capacity to under^
stand and avoid danger. • • • The law as
to negligence of children is that they are requir-
ed to exercise only that degree of care and cau-
tion which persons of lilie age, capacity, and
experience might be reasooably expected to nat-
urally and ordinarily use in the same situation
and under like circumstances. * * * If you
should find that the boy, Louis Edelman, al-
though 11 years and 4M» months of age, was
not of sufficient intelligence and capacity to ap-
Sredate the danger and risks of bis act, in or-
er to avoid the dan^r, then and in that case
he would not be guilty of contributory negli-
gence. * * • He was only required to exer-
cise that degree of judgment which boys of that
age and of the same intelligence and observa-
tion would be required to exercise, under the
same circumstances and conditions."
These correct instructions are all the
plaintiff could hare asked for, and they fol-
lowed what we have repeatedly said. Kehl-
er V. Schwenk, 144 Pa. 348, 22 Atl. 910, 13
U R. A. 374. 27 Am. St. Rep. 633 ; Di Meg-
llo V. Philadelphia & Reading Railway Co.,
252 Pa. 391, 9'? Atl. 476; Qerg v. Penna. R.
R. Co., 254 Pa. 316, 96 AU. 960. The assign-
ments of error need not be considered seria-
tim. It Is sufBdent to say that nothing is
to be found in any one of them calling for a
resubmission of the case to the Jury.
Judgment affirmed.
(2S7 Pa. 8t9)
BICKLEY V. PHILADELPHIA A R. RT. CO.
(Supreme Court of Pennsylvania. April 16,
1917.)
1. Cabriebs <S=»320(4) — Pebsonai, Injtjbt —
Question fob Jubt.
In an action for injury to a passenger on
the steps of a railroad car from the falling of
some object where a workman standing on the
car platform was working at the ceiling of the
■car, held, on the evidence, that whether such
workman was defendant's employ^ was for the
jury.
2. Cabbxebs «=>316(1) — Pebsohal Injxtbt —
Neolioence — Evidence.
Elvidence in such action held to raise a pre-
sumption of negligence on the part of the defend-
ant carrier which it was required to rebut.
3. Cabbiebs «s»280(1), 316(1)— Passenqebs—
Pebsonai. Injtjbt— Pbesvuftion of Neoli-
oence.
A carrier mnst exercise the highest degree
of care and an injury to a passenger caused by
a defect in the road, car, or other appliance or
by want of care on the part of the carrier or its
employes raises a presumption of negligence
which the carrier has the burden of disproving.
4. Cabbiebs €=3280(1)— Passenoebs— Enteb-
iNO Cab— Case Required.
A carrier of passengers, impliedly inviting
the public to enter its cars, must exercise the
highest degree of care in protecting them while
ascending the steps and going into the cars.
5. Cabbiebs 9=3302(2)— In jubt to Passenoeb
—Negligence.
Where the circumstances of an injury to a
passenger entering a car showed that it resulted
from carrier's failure to exercise proper care to
protect the passenger, it was immaterial that the
injury was caused by an unidentified falling ob-
ject.
6. Cabbiebs «=»347(4) — Personal Iktovt —
Contbibutobt Neolioence — Question fob
Jubt.
In an action for injury to a passenger while
ascending the steps of the car on the platform of
which a workman was working on the ceiling,
by being struck by unlmown falling object, held
on the evidence that passenger's contributory
negligence was for the jury.
7. Cabbiebs €=3328(1)— Injubt to Passenoeb
—Contbibutobt negligence.
A passenger entering a car may assume that
the carrier has performed its duty m making the
approach to the car safe.
Appeal from Court of Common Pleas, Phil-
adelphia County.
Trespass by Mary M. Bickley against the
Philadelphia & Reading Railway Company,
to recover damages for personal injury.
From an order refusing to take off a com-
pulsory nonsuit plaintiff appeals. Reversed,
with a procedendo.
Argued before MESTREZAT, POTTER,
STEWART. MOSCHZISEER, and FRAZ-
ER, JJ.
Eugene Raymond and John Martin Doyle,
both of Philadelphia, for appellant Wm.
Clarke Mason, of Philadelphia, for appellee.
MESTREZAT, J. Ttiis is an action of
trespass to recover damt^es for injuries
which the plaintiff alleges were caused by
the negligence of the defendant carrier when
she was entering one of Its coaches at the
Reading Terminal station in the dty of Phil-
adelphia. The learned trial Judge granted a
nonsuit which the court refused to remove,
and the plaintiff has appealed.
The plaintiff was the only witness exam-
ined, and from her testimony it appears that
on the morning of February 6, 1914, she
went to the Rending Terminal to take the
10:15 train for Quakertown. She had a mile-
age book, and on her arrival at the station
went directly from the first to the second or
train-shed story of the building. The gates
in the iron grating separating the train shed
from the station proper had been opened to
admit passengers to the train, and the plala-
tlff entered the gate on the east side and
passed along the station platform until she
reached the rear end of the third car from
the engine, other cars of the train standing
in the rear of it. As she approached the car,
she saw the lower part of the legs of a man
standing on the car platform. On ascending
the steps, she looked up and saw that the
man was dressed in overalls, with a cap on,
and was reaching up and doing work on the
celling of the car. When she reached the
first step below the platform, she was "struck
with a heavy blow" on the right side of her
head, and the workman said, "Oh, excuse me,
I didn't see you coming up the steps," and
took hold of her arm and put her in the
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BICKLBT y. PHILADBLFHIA 4 B. RT. CX).
655
first seat of the oar. She was stunned by
the blow, and her bead was cut; "everything
became black In front of me;" her hat pins
were bent and broken, her hair pins and a
great deal of ber hair were torn out. She
reported the accident to the conductor when
he came for her fare near Wayne Junction.
She suffered intensely from the blow, which
resulted in her permanent injury. This, in
bri^, is substantially bow the accident oc-
curred and its effect on the plaintiff.
While admitting that, at the time she was
injured, the plaintiff was lawfully on the
premises of the defendant company by its
invitation and as its passenger, and entitled
to the highest degree of care and foresight
which the law requires of a carrier for pro-
tection of its passengers, the learned court
below held that the burden of proving negli-
gence was upon the plaintiff, and that negli-
gence would not be presumed from the hap-
pening of the accident, and, further, that the
plaintiff was guilty of contributory negli-
gence in proceeding up the steps of the car in
spite of the fact that she saw some one above
her, apparently engaged in work in such a
position that something might happen to her
if she proceeded further.
The plaintiff contends that she was a pas-
senger; that if an accident resulted to her
from the instrumentalities of the defendant,
a presumption of its negligence arose; that
the blow received could not have had any
other presumptive origin than in the opera-
tions of the defendant within its train shed ;
that the workman, by Us remark, assumed
the blame for the accident, and he was pre-
sumptively an employ^ of the defendant;
that the circumstances of the injury bring
it within the rule that whoi Injury results
from the means and appliances of transi)orta-
tion, the carrier is presumed to be negligent;
and that the plaintiff was not guilty of con-
tributory negligence.
The defendant's counsel claims that there
are no facts upon the record, as disclosed by
the evidence, to show what it was that hit
the plaintiff, where it came from, who had
control over It, or that the man on the car
platform was in the employ of the defendant,
and that the plaintiff was guilty of contribu-
tory negligence
[1] It is conceded by the court below, as
well as by counsel for the appellee, as will be
observed, that the plaintiff stood in the re-
lation of passenger to the carrier when she
was injured. At the time of the accident the
plaintiff had a mileage book, and the defend-
ant had invited her to enter its train by an-
nouncing it an'd opening the gates for her
and other passengers to pass Into the train
shed. We do not agree with the defendant's
contention that the evidence was not suffi-
cient to warrant the jury in finding that the
man at work on the car platform was engag-
ed in the company's service. The testimony
of the plaintiff shows that i>ersons could not
enter the train shed from the station until
the gates in the Iron grating were opene'd for
that purpose. It is therefore a reasonable
inference that any one within the train shed
is there by permission of or on business for
the defendant The man on the car platform
was wearing overalls and a cap, and was en-
gaged in doing work on the celling of the
platform. In addition to these facts, the re-
mark made by the workman to the plaintiff
when the accident occurred tends also to
show that be was an employ^ of the defend-
ant, and, further, that his act while engaged
at the work on the platform celling caused
the Injury to the plaintiff. We think, there-
fore, that this evidence was sufficient, not
only to Justify its submission to the Jury, but
also to warrant the conclusion that the man
engaged at work on the platform celling was
an employe of the defendant. The train was
awaiting its early departure, an'd we must
assume that the trainmen, operating and In
charge of it, knew of the presence of the man
who was doing the work on the platform ceil-
ing. No other reasonable inference can be
drawn from the facts. It is not conceivable
that they would have permitted the man to
do the work unless they knew it was being
done by direction of the company. It Is com-
mon knowledge that car cleaners an'd other
workmen are frequently engaged about the
cars Immediately before the departure of the
train. We think, therefore, that the learned
court below should have submitted the evi-
dence, bearing on this question, to the jury
to determine whether or not the man work-
ing on the platform was an employ^ of the
defendant. He was there apparently by the
authority of the company, and if he was a
mere intruder or was there without authority
and was not an employ^ of the defendant,
the latter knew the fact, and could have read-
ily shown it. The evidence of the plaintiff
was sufficient to raise a presumption that the
workman was in the service of the company,
an'd defendant should have been required to
rebut it. The case of Madara et ux. v. Sha-
mokln & Mt Carmel Electric Ry. Co., 192
Pa. 542, 43 AU. 905, Is in point The plaintiff
was a passenger on a stalled electric street
car, and another car, being brought to its re-
lief, got beyond control and collided with the
stalled car. The defense was that the man la
charge of the relief car which caused the ac-
cident was a mere Intermeddler and not an
employe of the defendant This court held
that the evid^ice of the plaintiff was suffi-
cient to require the defendant to rebut the
presumption of employment The court
speaking by Mr. Justice Dean, said (192 Pa.
647. 43 Atl. 996):
"The burden is on it [the carrier] to rebut the
presumption by showing that Visfck [who was
operating the relief car] was a mere intruder up-
on the relieving car, acting wholly without au-
thority. The burden is not upon the passenger
to prove that one apparently in authority, hav-
ing access to the car barn, and the power to
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656
101 ATIiANTIO REPORTER
(Pa.
assume control of a car and ran it on the road
to the relief of the stalled car, was a servant of
the company."
A like Question was presented in Dunne v-
Penna. R. K. Ca, 249 Pa. 76, 94 Atl. 479.
and, under facta not as faTorable to tbe
plaintiff as in the case at bar, it was held
that there was sufficient evidence to send
the question to tbe Jury and to support a
finding that the person was an employ^ of
the carrier company.
[2] The plaintiff being a passenger, and as-
suming that the Jury would have found that
the workman was employed by the defendant,
we think the circumstances raised a presump-
tion of negligence on tbe part of the defend-
ant company which It was required to rebut.
[3, 4] A common carrier must exercise the
highest degree of care, vigilance, and pre-
caution in the transportation of passengers,
and a legal presumption of negligence arises,
casting upon the carrier the onus of disprov-
ing it, when an injury to a passenger is caus-
ed by a defect In the road, cars, or any other
appliance, or by a want of diligence or care
In the carrier or its employes, or by any other
thing which the carrier can and ought to con-
trol as a part of Its duty to carry passengers
safely. Tbla is the rule established by our
decisions. Meier v. Penna. R. R. Co., 64 Pa.
225, 3 Am. Rep. 681 ; NiebalsU v. Penna. R.
R. Ca, 249 Pa. 630, 94 Atl. 1097; Pern v.
Penna. R. R. Co., 260 Pa. 487, 95 Atl. 690.
Safe means and appliances which are requir-
ed to be furnished for the transportation of
passengers Include the steps, doors, plat-
form, and seats which constitute a part of
the vehicle, and a failure to keep and main-
tain them in safe condition, resulting in in-
jury to a passenger, raises a legal presump-
tion of negligence which the carrier must
rebut.
Applying this rule to the case in band, tbe
plaintiff's proof showed such an injury as
raised a presumption of negligence on the
part of the carrier. The Injury resulted from
the failure of the carrier or Its employes to
provide safe access to the body of the car.
This was a failure of duty, and ther^ore a
negligent act. The matter was entirely un-
der the control of the carrier, and tbe fail-
ure to protect the plaintiff, while entering
the car, was a failure to carry safely whidi
the law requires. It Is immaterial whether
the Injury was caused by a fall of some part
of the ceiling or by a tool or other object be-
ing used by tbe workman in doing his work
on the celling. The carrier, having impliedly
invited the plaintiff to enter the car, was re-
quired to exercise the highest degree of care
and diligence in protecting her while she was
in the act of ascending the steps and going
into the body of the car. The act which re-
sulted in the plaintiff's injury was not dis-
connected with her transportation, and there-
fore is not within the class of cases which
hoTd that the carrier is not responsible.
[6] It is immaterial that the injury was
caused by an unidentified object, as the place
and circumstances of the accident show
that it resulted from the failure to exercise
the care required of the carrier to protect
the passenger. There is no ground for a sus-
picion even that the blow received by the
plaintiff was from an object cast from out-
side the car ; on the other hand, it is obvious
that the object which caused the plaintiff's
Injury fell from the celling of the car plat-
form, or that the injury was Infiicted by a
tool or other object in the hands of tbe man
while engaged at his work. His apologetic
remark also shows that fact, and that he
knew what did strike and cause the Injury
to the plaintiff. The evidence In the case
shows that the injury was due either to a de-
fect In the car or some appliance thereof or
to something done or omitted In the conduct
and management of the business, aiM there-
fore raises a presumption of negligence cm the
part of the defendant carrier.
[8, 7] Whether or not the plaintifl was
guilty of contributory negligence was clearly
for the jury. As she approached tbe car she
saw the legs of the man standing on tbe car
platform, but, as she testifies, she did not
see that he was at work until she had reach-
ed the second step where she received her
injury. She had the right to assume that the
carrier had performed its duty in making
the approach to the car safe, but whether
the workman's presence on the car platform
was an Indication of danger and she should
have entered another car were questions to
be determined by the Jury.
The judgment is reversed, with a proce-
dendo.
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MILLS T. DAVIS
657
(M Conn. IH)
MILLS V. DAVIS et aL
(Supreme Court of Errors of Connecticut. Aug.
2, 1917.)
1. Appeal and Ebboe «=»65C(3)— Rbcobd—
Correction or Finding.
On the refusal of the trial judge to change
tho finding in a case tried before a jury, the
proper procedure was an application to the Su-
preme Court of Errors to rectify the appeal, un-
der Oen. St. 1902, § 801, authorizing such an
application, and providing that it shafl be heard
on depositions.
2. Appeal and Erbob ®=>576 — Findinos —
Maiters to be Included.
T.'nder the rules of practice of the Supreme
Court of Errors, specifying forms for findings,
the court in cases tried without a jury is re-
quired to state the facts proved by the evidence,
and in cases tried by a jury the facts which die
parties offer evidence to prove, and claim to
have proved.
3. Appeal and Ebbob €=9656(3) — Recobd —
cobbection of findino.
In causes tried to a jury, if the trial judge
on an appeal fails to insert in the record a
statement of the facta either party offered evi-
dence to prove, and claimed to have proved, or
indudea a fact as claimed to have been proved,
when there was no evidence offered to prove
it, the proper procedure is an api>lication to the
Supreme Court of Errors to rectify the appeal,
by inserting the statement in the one case or
•trildng it out in the other.
4. Afpeai. AMD Ebbob €=s>656(3) — Reoobd —
COBBBCTION OF FINDING.
If a party desires to have any fact admit-
ted by the adverse party appear upon the rec-
ord as admitted, and which the trial judge has
omitted, he should move to insert it, and, upon
the refusal of the judge to grant the motion,
apply to the .Supreme Court of Errors, under
Gen. St. 1902, § 801.
5. Appeal and Bbbob «s>576 — Findino—
FOBM.
Where statements of fact in the appellant's
draft finding were not admitted facts, and were
not proved by uncontradicted evidence, and the
trial judge stated in the finding that app^ant
offered evidence to prove facts, this was all
appellant could properly claim.
6. B'baud <S=>49— Actions fob Fraud— Evi-
dence Advissiblb undeb Pleadings.
Defendants were attorneys for plaintilf in
a suit to foredoee a mortgage, and effected a
settlement. They furnished the funds to con-
summate the settlement, and took a conveyance
from plaintiff of the mortgaged proper^ and
property on A. street. Plaintiff sued for deceit,
alleging that defendants falsely represented tiiat,
if sho did not convey the land on A. street, the
holder of the mortgage would take a deficiency
judgment, and take that property and her home-
stead also, when in fact the holder of the mort-
gage never intended to take a deficiency judg-
ment. JSeld, that evidence as to whether the
foreclosure could have been defeated by making
a defense was immaterial, unless it was part
of a plan to cheat and defraud, and under the
pleadings it was irrelevant for that purpose.
7. Appeal and Ebbob €='1056(4)— Habuless
Ebbob— Etfect of Verdict.
In an action for deceit, the exclusion of a
question asked plaintiff as to expenditures by
her in the prosecution of the action was harm-
less, where the jury found for defendants, and
never passed on the qaestion of damages.
8. JUDOMBNT «=s>708 — Admissibilitt
AOAIMST PBBSONS NOT PABTIES.
In an action against plaintiff's former at-
torneys in a foreclosure suit for deceit in con-
nection with t> settlement of such suit, the. rec-
ord of an action to which defendants wero not
parties, and of which they bad no knowledge,
was not admissible to show the value of the
mortgaged property as found in such former ac-
tion.
9. Tbial €=s280(l)— lN8TBncrnoN»— Kefubal
OF Requests Covebed bt the Chabok.
Requests to charge were properly refused,
where they were covered by the charge, so far
as they could be lawfully.
10. Tbial ig=»317— Misconduct of Jueob—
Waiver of Objections.
An objection to the misbehavior of a juror
was waived, when not called to the attention of
the court at the time.
Appeal from Court of Common Pleas,
Fairfield County; John R. Booth, Acting
Judge.
Action by Elizabeth F. Mills against Leo
Davis and another. Judgment for defend-
ants, and plalntur appeals. Affirmed.
Joseph A. Gray, of South Norwalk, for
appellant Oirl Foster, of Bridgeport, for
appellees.
SHUMWAT, J. The defendants are law-
yers. Beers was first engaged by the plain-
tiff to represent her in an action brought
to recover the sum due on a note given by
the plaintiff to one Hoyt The note was
secured by a mortgage uiion a piece of real
estate called Sound View Terrace. The note
and mortgage were held by one Hubbell, he
taking title to same by assignment LateF
Enbbell brought an action to foreclose the
mortgage, and the defendants appeared as
counsel for Mrs. Mills, this plaintiff. The
latter action was pending In the court of
common pleas In Fairfield county, and on
March 7, 1913, judgment was rendered in the
foreclosure action; the (tourt finding the
sum of $1,609.42 due. Including costs. On
the day before the judgment was rendered a
written stipulation was made between coun-
sel for Hubbell and Mrs. Mills that three
appraisers should be appointed to appraise
the property as required by statute prelimi-
nary to the rendition of a deficiency Judg-
ment. Before the appraisal was had, the
parties through their counsel made a settle-
ment, whereby the sum of $772.80 was to be
paid to Hubbell, and he was to release Mrs.
Mills from all obligation on the note and
mortgage. Mrs. Mills was not able to fur-
nish the money to pay Hubbell. The de-
fendants supplied the funds to make the pay-
ment, and thereupon' Mrs. Mills conveyed to
the defendants the Sound View Terrace prop-
erty and a piece of land called the Aiken
street property. The defendants offered evi-
dence that the value of Sound View Terrace
was $2,000, subject to a mortgage for $1,-
400. The Aiken street property was control-
led by Mrs. Mills, though she did not hold
the legal title, and she procured the neces-
sary conveyance to vest the legal title In the
defendants. The plalntifTs case Is, In snb-
tfoFor other eases see same topic and KET-NUUBBR In all Ker-Numb«red Digesto and IndexM
101 A.— 42
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€68
101 ATLANTIC RBPOUTER
(Conu.
stance, that the defendants by fraud and de-
celt induced the plaintiff to make the set-
tlement above mentioned to their profit.
The particular acts as alleged, which the
plalntlfT claims constitute fraud, are sub-
stantially these: The plaintiff met the de-
fendants on the 15th day of April, 1913,
when the defendants Insisted that the plain-
tiff convey to Hubbell the Aiken street lot
The plaintiff refused, but the defendants
falsely represented that, if she did not con-
vey the land to Hubbell, he would take a
-deficiency Judgment against her, and take
that lot and her homestead also. In fact,
HiAbell never intended to take a deficiency
Judgment, and was content to take the Sound
View Terrace in satisfaction of the mort-
gage. The defendants denied these allega-
tions, and alleged affirmatively that the
plaintiff agreed to the settlement and con-
veyed the property to them, to pay them for
the money advanced to pay Hubbell, as well
as for their fees and disbursements In the
action mentioned. The case was tried to the
Jury, and the court Instructed them that, if
they found the allegations of the plaintiff to
be true, their verdict should be In her fa-
vor. The Jury rendered a verdict for the
defendants. On appeal the plaintiff assigns
numerous errors relating to rulings on evi-
dence, the charge of the court, the court's
refusal to correct the finding, and the court's
refusal to take the case away from the Jury
for misconduct of one of the Jurymen.
[1,2] The plaintiff made a motion to the
trial Judge, which was entitled "a motion to
correct the finding." On the refusal of the
trial Judge to change the finding, the proper
procedure was an application to this court
to rectify the appeal. If the Judge had not
correctly stated the events of the trial.
Section 801 of the General Stotutes provides
how an issue of fact may be raised as to the
corrections of a statement in a finding of
what occurred upon the trial, and a way Is
provided for determining that Issue of fact.
Bemler v. Woodstock Agricultural Society,
88 Conn. 562, 92 Atl. 160. The draft finding
accompanying the plaintiff's request for flnd-
' Ing began as follows:
"The following are admissions and undisputed
evidenc* made and produced upon the trial."
In the rules of practice of the Supreme
-Court of Errors are given forms for findings
in cases tried by the Jury and in cases tried
by the court In the former the court is re-
quired to state the facts which the parties
offered evidence to prove, and claimed to
have proved, and in the latter the facts prov-
ed by the evidence. "In making up the
record the services of the trial judge will
be clerical rather than Judicial. His object
will be to state for the record snch facts and
events as may have led up to the Judgment,
nrid as are necessary to show whether the
iippellant Is right or wrong in claiming that
the law has been tran.<igressed, to his Injury,"
(luring tlie trial of the cause. He acts as an
historian. State ▼. Hunter, 73 Conn. 444, 47
Atl. 665.
[3] In causes tried to the Jury, if the trial
Judge on an appeal fails to insert in the rec-
ord a statement of the facts either party of-
fered evidence to prove, and claimed to have
proved, or if he includes in the finding a fact
as claimed to have been proved, when there
was no evidence offered to prove it the prop-
er procedure is an application to this court
to rectify tlie appeal by inserting the state-
ment in the one case or by striking it out hi
the other. McKusker v. Spier, 72 Conn. 030,
45 Atl. 1011.
[4, 5] If the plaintiff desired to have any
fact admitted by the defendants api)ear upon
the record as such, and which the trial Judge
had omitted, he should have made a motion
to insert it, and upon the refusal of the judge
to grant the motion section SOI points out the
manner by which the desired change may be
accomplished in this court. Some of the
statements of fact in the plaintiff's draft
finding were not admitted facts, nor were
they proved by uncontradicted evidence. The
trial Judge had stated in the finding that the
plaintiff offered evidence to prove them,
which is all the plaintiff can properly claim,
unless they were facts admitted by the de-
fendants. The plaintiff is not entitled to a
rectification of the appeal in this court
H] The rulings of the court upon the evi-
dence, so far as appears upon the record,
were not erroneous, so as to justify a re-
versal or setting aside of the Judgment The
fact to be proved In the plaintlfTs case,
whereby to test the relevancy of the evidence,
was the fraud and deceit, or as it is called
the quo animo, of the defendants, whereby
the plaintiff suffered injury. It appeared in
evidence, not uncontradicted, to be sure, that
the settlement made with Hubbell was a fair
and reasonable one, consented to and ap-
proved by the plaintiff. The plaintiff. In the
cross-examination of Davis, asked him if
he did not know that Mrs. Mills bad a valid
defense to the foreclosure suit brought by
Hubbell. The purpose of the question does
not appear. It may have been Intended to
elicit from Davis an admission that by mak-
ing a defense to Hubbell's action it could have
been defeated. This was immaterial, unless
it was In fact a part of a plan to cheat and
defraud ; but under the pleadings in the case
it was irrelevant for that purpose.
[7] The ruling of the court in excluding the
questions put to Mrs. Mills was not Injarlous
to her case. She was asked: "What ex-
penditures have you made in the prosecution
of this case?" Upon objection by the defend-
ants, counsel stated the purpose was to prove
damage. It does not appear that the plaintiff
was attempting to prove exemplary damages,
or that the ruling of the court was that the
evidence was not admissible for that purpose:
i but it Is left to conjecture that such was Its
I imri>oso, ns lie plaintiff cites on the l>rier
I Xoyes V. Ward, 19 Conn. 250. As the verdict
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Conn.) COHN & KOTH ELECTRIC CO. r, BRICKLAYERS', BTa, LOCAL IT. NO. 1 65*
of the jary was In favor of the defendants,
tbey were not required to consider tbe ques-
ti<Mi of damages.
[8] The pladntlfT offered in evidence the
record of an action bronght by Hoyt, the per-
son to whom the note and mortgage on
Sound View Terrace was given. The action
was brought by Hoyt against Hubbell and
one Stuart, alleging the note had been wrong-
fully converted by them. Among other facta
foond In that action was that the i5ound
View Terrace property was not worth more
than $2,200, and the plaintiff claimed this
finding of value, If not conclusive, was evi-
dence of the value of Hubbell's claim. It la
sufficient, to support the ruling of the court
In excluding the record, that nether of these
defendants were parties to that action, and so
tax as appears had no Icnowledge whatever
of the pendency of the cause.
[I] All the requests of the plaintiff to
charge were covered by the charge, so far as
could be lawfully, and the real and de<^sive
Issues in the case were fairly stated to the
Jury, and the controverted facts left for their
determination.
[10] The plaintiff also complains that the
court erred in refusing to dismiss the Jury
from further consideration of the case after
the conclusion of the argument, because dur-
ing the argument of pla'intlff's counsel one of
the jurymen was offensive and insolent. The
violation of propriety could not have been
open and flagrant, to have passed unnoticed
by the court The behavior of the juror did
not necessarily imply hostility to the plsfln-
tiff or her cause. The court could probably
see that no harm could result to the plain-
tiff's case. The occurrences noticed by coun-
sel earlier In the trial should have been call-
ed to the attention of the court at the time
they were observed ; otherwise a waiver of
objection will be presumed.
There is no error. The other Judges con-
curred.
(92 Conn. lO)
COHN & ROTH ELECTRIC CO. v. BRICK-
LAYERS', MASONS' & PLASTERERS'
LOCAL UNION NO. 1 et al.
(Supreme Court of Errors of Connecticnt.
Aug. 2, 1S17.)
i. ToBTs 9=»10 — Interfebekcb with Em-
PLOYUENT— Right to Stbike.
Individuals may work for whom tbey please,
and quit work when tbey please, providinf? they
do not violate their contract of employment.
2. ToBTB 9=»10 — Combination — Riqht to
COMBIRK
Members of unions may, by agreement, re-
fuse to woric with nonunion labor, providing
they do lo for their own interest, and not for
the primary purpose of injurini; others, and the
means used are not prohibited, nor contrary to
public policy.
3. Injunction «=»101(1) — Intebfekknck
WITH ElfPLOTMENT — PbIMA FaCIE CaSE.
Where an employer of nonunion labor is
injured by refusal of nni'>n workmen to work
on the job where nonunion men arc employed,
such injury being contemplated and intended
by defendants, he is entitled to an injunction'
against such action on their part, unless they
can show justification.
4. Tobts $s»10 — Combinations — Right to-
Combine.
Members of unions may, by agreement, re-
fuse to work with nonunion labor, where object
is strengthening of their union, and not to in-
jure the plaintiff, or nonunion men it employs,
though they are inddentaliy injured thereby.
5. Tobts ®=»1(>— Right to Stbikb— Compul-
sion.
Members of unions do not, by refusing to
work with nonunion labor, exercise compulsion
on employer of such labor, where over one-third'
of the men in that locality in all trades to which
defendants belong are nonunion men.
6. Tobts ©=10— Right to Stbike — Statute-
Intimidation.
Notification by union men to building con-
tractors and owners that they will strike in
case nonunion labor is employed on any job on
which they are engaged is lawful, if strike
would be lawful, and not within intimidation
statute (Gen. St. 1902, § 1296).
Appeal from Superior Court, Hartford.
County; Milton A. Shumway, Judge.
Action by Cohn & Roth Electric Company
against the Bricklayers', Masons' St Plaster-
ers' Local Union No. 1 and others. From.
judgment for defendants, plaintiff appeals.
Allirmed.
Suit for an injunction to restrain the de-
fendants from intimidating by strikes, threats
of strikes, boycotts, or otherwise any prop-
erty owner, builder, or contractor, for the-
purpose of Inducing the latter to cancel con-
tracts with the plaintiff, which conducted an
open shop, or for the purpose of inducing
them to refrain from thereafter employing,
or from entering into contracts with, the
plaintiff.
Ralph O. Wells, of Hartford, for appellant
Thomas J. Spcllacy, William M. Maltbie, and
Hugh M. Alcorn, all of Hartford, for appel-
lees.
WHEEILEB, J. mie plaintiff has waived
its claim for damages, and relies upon Its
claim for injunctive relief, alleging that the
defendant lalK>r unions and the members
thereof have combined for the purpose of ob-
taining a monopoly of all the employment
for the members of these local unions in the-
se veral building trades in which they are en-
gaged, and for the purpose of excluding from
such employment all who are not members.
In furtherance of this purpose and to e8>
tablish this monopoly, the defendants have-
agreed: (1) That no nonunion member shall
be employed on any building In Hartford or
its vidnity ; (2) that no open shop employer
shall be permitted to supply any labor or
materials for any such building; (.3) that
they will compel all owners, employers, and
other persons to refuse to purchase supplies
from open sliop employers ; (4) that they will
refuse to work for any owner or employer who
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660
101 ATLANTIC UEPOUTEB
(Cona
shall purchase supplies from any open shop
employer; (5) that they will boycott all non-
union members and open shop employers,
and all persons doing business with them.
In furtherance of said boycott the defend-
ants have agreed: (6) To cause all members
of defendant unions to refuse to work on
every building owned by any person who
owns any building on which any nonunion
member is employed, or on which any open
shop employer is furnishing, or has contracted
to furnish, laW)!' or materials ; (7) to refuse to
work on each i ml every job on which a gener-
al contractor may be engaged, if any non-
union member is working for such general
contractor, or If any open shop contractor
is furnishing or has contracted to furnish
any labor or materials. In furtherance of
these purposes and agreements the defend-
ants have boycotted the plaintiff and all
owners for whose buildings the plaintiff has
furnished labor or materials, and all contrac-
tors or builders by whom the plaintiff has
been employed, directly or Indirectly, and
have threatened to Institute strikes of all
these members on all work on which any of
the members were engaged for any owner or
by any contractor for whom the plaintiff has
furnished labor or materials, and the defend-
ants have Instituted strikes in accordance
with these threats in all cases where their
demands have not been promptly complied
with.
Comparing the facta found with those al-
leged in the complaint, we find a marked
dissimilarity. We can discover no finding
of the illegal purpose of these defendants
which the complaint reiterates, nor one of a
conspiracy and agreement such as Is alleged
save in one particular. That agreement Is
not specifically found, but It Is found that
the several defendant local unions have
adopted the same or analogous by-laws ob-
ligatory upon all of their members. These
by-laws prohibit members working with non-
union men under penalty for violation. They
provide that "no member shall work for any
employer who Is employing nonunion • • •
workers," nor on any Job contracted for by
any nonunion contractor, nor on any job
sublet to any contractor by any open shop or
nonunion contractor. The Hartford Build-
2ltg Trade Alliance has adopted a by-law, of
which Alliance all defendant unions are
members, and by which by-law all defendants
are bound, that "no member of this Alliance
shall work with any person working at a
trade In the Structural Building Trades Al-
liance who does not hold a working card
from the AUlance." These by-laws create an
agreement on the part of these several unions
and all of their members, binding upon them,
that their members will not work for any em-
ployer employing nonunion men on that Job,
itor for any nonunion contractor, nor on any
Job sublet to any contractor by any open
shop or nonunion contractor.- Interpreted
together, these several by-laws constitute
an agreement, which membership Imposed up-
on all members of defendant unions, that
they would not work on any job on whlcn
nonunion men or employers are at work.
All members of defendant unions have ceased
to work and refused to work on any build-
ing when the nonunion employ&s of the plain-
tiff have commenced work on such building.
In one instance the merat>ers of the defendant
unions withdrew from work on five buildings
being erected by a single general contractor
because the plalntifTs nonunion employ^
were at work on one of these buildings. The
defendants maintain their legal right to do
these acts, and threaten and intend to con-
tinue in such course, unless restrained by
injunction.
The case set up In the complaint Is not the
agreement to cease work for a contractor
If nonunion men are employed by him on any
of his jobs, and no matter where located,
upon which defendants are not at worli, and
to which they have no relation; and If the
complaint did rely upon this cause of action
the finding does not support It It recites
that, in one Instance, the members of defend-
ant unions ceased work on five buildings In
process of erection by one contractor, becanse
plaintiff's nonunion employes were at work
on one of these buildings. A single Instance
of one act done would hardly permit a hold-
ing that the trial judge had, in refusing an
injunction, exercised his' discretion Improper-
ly. It Is noticeable that the finding does
not state that these strikes were instituted
for any of the unlawful purposes so frequent-
ly reiterated in the complaint. The trial
court could not find the existence of an illegal
purpose without proof, and we cannot so
hold without a finding to that effect If the
purpose of the strikes was Illegal, they were
clear deprivations of the right of the plain-
tiff to work. State v. GUdden, 55 Conn. 47.
S Atl. 890, 3 Am. St Rep. 23. If the pur-
pose was to better the condition of the de-
fendants, a situation Is presented not here-
tofore considered by us, viz. a determina-
tion of whether an agreement to strike In a
case in which the striking worlonen are not
concerned in a trade dispute, or In which
their labor has not come In competition with
nonunion labor. Is lawfuL Its decision is
practically another phase of the question
decided In Pickett v. Walsh, 192 Mass. 582,
78 N. E. 753, 6 li. R. A. (N. S.) 1067, 116 Am.
St. Rep. 272, 7 Ann. Caa, 638, In the last point
treated In that case, and the first and second
causes of action set forth in the complaint
pages 579. 587 of the opinion. We express
no opinion upon this point, leaving its de-
cision open until It Is fairly raised In the
pleadings and in the record on appeal.
[1] The agreement of the defendant unions
and their members, that the members would
refuse to work with nonunion men, followed
by action by the members ceasing to work
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IjEslie v. citt of KEEKB
661
with the nonunion men of the plaintiff, is
the only ground of complaint which the facts
found support Individuals may work for
whom they please, and quit work when they
please, provided they do not violate their
contract of employment.
[2] ComblnationB of individuals have sim-
ilar rights, but the liability to injury from the
concerted action of numbers has placed upon
their freedom to quit work these additional
qualifications: That their action must be tak-
en for their own interest, and not for the pri-
mary purpose of injuring another or others,
and neither in end sought, nor La means adopt-
ed to secure that end, must it be prohibited by
law nor in contravention of public i>ollcy.
Connors v. OonnoUy, 86 Conn. Wl, 86 AU. 600,
45 L>. R. A. (N. S.) 564, is an example of an
agreement wliicfa we hold to be contrary to
puUlc policy. The members of a union, act-
ing upon their agreement, may refuse to
enter upon employment with nonunion labor,
or refuse to continue their employment with
nonunion labor, provided their action does
not fall within the qnallflcations of their
freedom of action already stated. Pickett v.
Walsh, 192 Mass. 572, 582, 78 N. B. 753, 6
L. B. A. (N. S.) 1067, 116 Am. St Rep. 272,
7 Ann. Cas. 638; Bumham v. Dowd, 217
Mass. 361, 356, 104 N. B. 841, 51 L. R. A.
(N. S.) 778; Grassl Contracting Co. v. Ben-
nett, 174 App. DlT. 244, 160 N. Y. Supp. 284;
Gray t. Building Trades Council, 91 Minn.
171, 186, 97 N. W. 663, 63 Ij. R. A. 753, 103
Am. St. Rep. 477, 1 Ann. Cas. 172. In State
V. Stockford, 77 Conn. 227, 237, 58 AU. 769,
107 Am. St. Rep. 28, Hall, J., thus states
our law:
"Workmen may lawfully combine to aceom-
plish their withdrawal in a body from the serv-
ice of their employers, for the purpose of ob-
taining an advance in wages, a reduction of
the hours of labor, or any other lejrftimete ad-
vantage, even thouph they may know that such
action will necessarily cause injury to the busi-
ness of their employers, provided such aban-
donment of work is not in violation of any con-
tinuing contract, and is conducted in a lawful
manner, and not under such drcumstances as
to wantonly or maliciously inflict injury to per-
son or property."
[3] The facts found show that the plain-
tiff has suffered damage in its business and
that the defendants contemplated this proba-
ble effect. A cause of action was thus made
out, entitling the plaintiff to judgment, un-
less the defendants have made out or the
facts presented disclose, that the defend-
ants were Justified in what they did. Cmi-
nors V. Connolly, 86 Conn. 641, 647, 86 Atl.
600, 45 L. B. A. (N. S.) 564. The finding
is not express upon this point, but we are of
the opinion that the necessary implication
from the subordinate facts found is a Jus-
tification for the defendants' course.
[4] The end the defendants had in view
by their by-laws was the strengthening
of their unions. That was a legitimate end.
There is no indication that the real purpose
of the defendants was injury to the plaintiff,
or the nonunion men it employed. Whatever
injury was done the plaintiff was a conse-
quence of trade competition, and an incident
to a course of conduct by the defendants, be-
gun and prosecuted for their own legitimate
interests. The means adopted were lawful;
no unlawful compulsion in act or word was
present
[S] The plaintiff had its option to employ
the defendants or not Trade conditions did
not convert this legal option into practical
compulsion, since over one-third of the men«
working in all of these trades to which the
defendants belong in this locality were non-
union men. The cessation of work was' not
intended to cause a breach of existing con-
tracts, and the cancellation of some of Its
contracts by the plaintiff is, so far as we
know, attributable to the plaintiff's act, rath-
er than to the defendants'. Certainly the
finding is too bare of detail to i>ermlt the
latter conclusion.
[6] The notification by the defendants to
the general contractors and owners of the
probability of a strike by them in case the
plaintiff was employed on any Job on which
they were engaged was no more than a no-
tice that, if nonunion labor was employed
on Jobs on which the defendant union men
were employed, the defendants would strike.
If the defendants had the right to contract
that they would not work with nonimion
labor, and If they might cease work U non-
union men were employed, as we hold in
State V. Stockford, 77 Conn. 227, 58 Atl. 769,
107 Am. St. Rep. 28, we can see no unlawful-
ness in their notice to contractors and em-
ployers of what would happen if nonunion
men were employed on Jobs on which they
were engaged. The notice was the course
of fair dealing. It did not take away the
free choice from the contractor or owner;
It possessed him of the facts which might
affect his decision. We do not think the
notice was an act fairly within the intimida-
tion statute. General Statutes, $ 1296. The
facts surrounding the giving of such a notice
might bring it within the statute; the facts
detailed in this finding do not
There is no error. The other Judges con-
curred.
PS N. H. 607)
LESUB V. CITY OF KBENB.
(Supreme Court of New Hampshire. Cheshira.
AprU 3, 1917.)
1. HiGHWATS «=>213(2) — Damaoes Whilk
Tbaveuno Dangerous Eubankuent —
QuESTioiH FOB JuBT— Statute.
Whether an embankment is dangerous, with-
in Laws 1893, c. 59, § 1, providing that towns
are liable tor damages to any person traveling
upon dangerous embankments, etc., is for the
jury; but whether there is any evidence from
fsstFoi other cases see some topic and KEY-NUMBER in all Key-Numbered Digests and Indexes
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662
101 ATLANTIC REPORTEE
(N.U.
which the conduslon can be drawn is a question
for the court.
2. HioBWATS «=3l92 — Dakaoes to Pkbson
Tbavelinq — Embankment ^ DANasBous
Slopk— Statdtk.
So far as persons traveling on foot are con-
cerned, a regular slope of one foot in six is not,
in and of itself, a dangerous embankment, with-
in Lews 1893, c. 68, $ 1.
S. Municipal Cohporations «=s>785 — Dam-
AGKs ON "Dangerous Embankment" —
Statute.
Though it might l>e possible for a traveler
to b« thrown from a path into a brook lying 13
feet from the path, the slope to the brook be-
ing regular, and the fall but one foot in six, no
reasonable man could anticipate that such was
likely to happen, so that the path was not on
a "dangerous embankment," within Laws 1893,
c. 69, I 1, to render the dty liable for death
of a dilld, who was thrown from a cart drawn
on the path by a playmate, and whose body was
later found in the brook.
[Ed. Note.— For other definitions, see Words
and Phrases, Second Series, Dangerous Embank-
ment.]
4. Municipal CoBPORATioNB*=»819(4)— Dam-
ages ON Dangerous Embankment— LiABiir
ITT OF CiTT— Statute.
Plaintitt administratrix cannot recover from
a city for death of a child, as having been in-
jured on a dangerous embankment, within Laws
1^3, c. 69, I 1, unless the child was traveling
along tiie path on the embankment when his
playmate, who was drawing him in a cart,
turned it to the right, so that the child fell oat,
and no part of the child's journey from the
path to the brook, where his body was later
found, lying 13 feet away from and below the
path, was voluntary.
Transferred from Superior Court, Cheshire
County.
Action by Mary L. Leslie, administratrix,
against the City of Eeene. Transferred on
plaintiff's exception to verdict directed for
defendant. Exception overruled.
Case for causing the death of the plain-
tiff's intestate. Trial by Jury. Verdict di-
rected for the defmdants. The intestate,
who was less than four years old, was trav-
eling on or near the east line of Damon court
toward Beaver street In a cart drawn by a
boy of five at the time the accident happen-
ed, and Just before they reached that street
the boy turned so sharply to tiie right that
the cart tipped over on one wheel and threw
the intestate out. Later liis body was found
in Beaver brook. There la no sidewalk on
the east side of the court, but those who
have occasion to use that side of the street
travel in a well-defined path very near the
east line of the court Beaver brook Is 13
feet east of this path. The bank of the
brook Is a little more than 2 feet lower than
the path, and the slope Is regular.
Benton & Pickard, of Keene, for plaintiff.
John E. Allen and William H. Watson, both
of Keene, for defendant.
YOUNG, J. [1, 2] The plaintiff's exception
must be overruled, unless It can be found
that the Intestate was traveling on a danger-
ous embankment within the meaning of Laws
1893, c. 59, § 1, at the time the accident hap-
pened. Wilder V. Concord, 72 N. H. 259, 263,
56 Atl. 193. And while it is true, as the
plaintiff contends, that the question of
whether an enbankment is dangerous, within
the meaning of this section, is for the Jury,
it Is also true that whether there is any evi-
dence from which that can be found is a
question for the court, and all fair-minded
men must agree that, in so far as persons
traveling on foot are concerned, a regular
slope of one foot in six is not in and at itself
a dangerous embankment within the meaning
of that section. If it is true, as the plaintiff
contends, that there should be a railing on
the east side of Damon court at the place
where the accident happened for the protec-
tion of those traveling on Beaver street. It
comes to nothing in so far as the questions
we are considering are concerned, for the in-
testate was traveling on Damon court — ^not
Beaver street — at the time the accident hap-
pened. Laws 1893, c. 59, { 1. If, therefore,
there is a dangerous embankment on the east
side of Damon court at and near its inter-
section with Beaver street. It is because of
the nearness of the brook to the path in
which those who have occasion to use that
side of the court traveL In other words, it
is because the path is so near the brook that
the defendants ought to have antl<dpated that
those having occasion to use the path might
fall, slip, or be thrown from It Into the
brook, for the purpose of a railing is to en-
able travelers to use the highway In safety
— not to prevent them from leaving it volun-
tarily. Robertson v. Hillsborough, 99 Atl.
1069.
[3] It Is obvious that, when the ground Is
free from Ice and snow, It is a physical im-
possibility for one using this path to slip or
fall fiom It Into the brook. While it may be
possible for a traveler to be thrown from it
into the brook, no reasonable man would
anticipate that that was likely to happoi;
for the brook is 13 feet from the path, the
slope regular, and thp fall but 1 foot in 6.
One difBcuIty with the plaintiff's contention
that that is what happened in this case is
that there is no evidence to sustain It Tbe
evidence relevant to how the accident hap-
pened is that the boy who drew the cart wm
but five years old, and while it shows that he
was running, It also shows that he was not
running very fast when he turned to the
right In other words, it shows that he was
running Just as you would expect a boy of
five, who was drawing a cart, would run, and
that the intestate simply fell from the cart
when it tipped up on one wheel. There is no
evidence that even tends to the conclusion
that he was throvm violently from the cart,
and when we consider the distance of the
brook from the path and the character of tbe
land between, it is clear that he was wt
thrown into the brook from the path.
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BOSTON & M. R. R. T. CITT OP CONCORD
663
[4] In short, U It is assumed that the boy
was In the path when he turned to the right,
it cannot be found that the intestate was
thrown from the cart into the brook; for,
while the evidence will warrant either a
finding that the cart was in the path when
the boy turned to the right, or a finding that
the intestate was thrown from the cart into
the brook, it will not warrant both of these
findings, and the plaintiff cannot recover, un-
less he shows that the intestate was travel-
ing along this path when the boy turned to
the right, and that no part of his journey
from the path to the brook was voluntary.
Plaintiff's exception overruled.
(78 N. H. 463)
BOSTON & M. R. B. v. CITY OP CONCORD.
SAME v. STATE.
(Supreme Court of New Hampshire. Merri-
mack. June 30, 1917.)
1. Taxation 4s»14i — Pbopebtt Taxabu: —
Materials Used fob Repaib— "Obdinaey
BrsiNEss"— "Stock in Tbadk"— "Mechan-
ic"—"Tbadesman."
Under Laws 1911, c. 169, J 11, providing
that every railroad shall pay to the state an
annual tax upon the value ot its property used
in its ordinary business, which would not be
•exempt from taxation if owned by a natural
person or ordinary business corporati<Nii, plain-
tiff railroad, which ordinarily carries on the
business of building and repairing its equipment,
is liable to state tax for the materials thus used ;
the term "ordinary business," as used in the
statute, being synonymous with the business a
person ordinarily carries on, and the materials
used being "stock in trade," and the plaintiff a
"mechanic^' and "tradesman," within Pub. St.
1001, c. S5, § T, subd. 6, imposing a tax on
stock employed by mechanics or tradesmen in
their trade or busmess.
[Ed. Note.— Por other definitions, see Words
and Phrases, First and Second Series, Ordinary
Business; Stock in Trade; Mechanic]
■2. Taxation ®=»494(4)— Railroad Pbopebtt
— PowEB or Courts.
In a proceeding to abate taxes assessed by
'defendant city, tho court had no jurisdiction to
value or tax the property of petitioner railroad
that escaped taxation by the tax commission ;
its only power being that given by Laws 1911,
c 169, to review such orders and findings of
•the tax commission created as come before it
on appeal.
3. Words and Phrases— "Tradesman."
Any person is a "tradesman" who carries on
-the manufacturing or repairing business for him-
self, whether he does the work with his own
hands or employs others to do it for him.
[Ed. Note.— For other definitions, see Words
and Phrases, First and Second Series, Trades-
-man.l
Transferred from Superior Court, Merri-
mack County.
Petitions by the Boston & Maine Railroad
against the City of Concord and the State to
abate taxes. Cases transferred from sujwrl-
or court, without rulings. First case sus-
tained, and tax abated ; and second case dis-
. missed. See, also, 78 N. H. 192, 98 Atl. 66.
Tax appeals. The first is an appeal from
a tax assessed by the city of Concord in 191.3
on materials used by the plaintiffs In build-
Ing and repairing equipment at their Con-
cord shops. After the opinion holding that
the property was not taxable in Concord (78
N. H. 192, 98 AU. 66) was filed, the Attorney
General intervened and asked the court to
order the plaintiffs to pay the state a tax on
the property in question for that year as the
price of a decree abating the Illegal tax.
The court found that the property would
have been taxed by the state in 1913, but for
the tax commission's mistake in thinking
that it was taxable in Concord, and that it
would be Just for the court to assess a tax
on the property in this proceeding, if it is
taxable and the court has power to tax it
The questions whether the property is taxable
under the provisions of Laws 1911, a 169,
and whether the court has power to tax it,
were transferred by Sawyer, J., without a
ruling from October term, 1916, of the su-
perior court
The second is an appeal from the tax com-
mission's assessment of the general railroad
tax assessed on the plaintiffs' property for
the year 1916. The tax commission included
the materials and supplies used in the plain-
tiffs' Concord and Keene shops at their aver-
age value for the year in the appraisal of
their taxable property; and the question of
whether these materials are taxable was
transferred by Chamberlain, O. J., without a
ruling, from the superior court
Streeter, Demond, Woodworth & Sulloway,
of Concord, and Branch & Branch, of Man-
chester, for plaintiff. James P. Tuttle, Atty.
Gen., for the State.
TOUNG, J. [1] The question whether the
materials the plaintiffs use in building and
repairing equipment are taxable by the state
is common to both appeals, for if these ma-
terials are not taxable they were not taxable
in 1913. Whether they are taxable depends
on whether the plaintiffs use them in their
ordinary business, within the meaning of
Laws 1911, a 169, for section 11 provides
that:
"Every railroad • • • shall pay to the
state an annual tax, • • • upon the actual
value of its property and estate used in its ordi-
nary business whico would not be exempt from
taxation if owned by a natural person or ordi-
nary business corporation."
The plaintiffs concede that they ordinarily
carry on the business of building and repair-
ing equipment in connection with their trans-
portation business, but contend that that is
not th^r ordinary business, within the mean-
ing of section 11. In other words, they con-
tend that the property in question is not
nsed in their ordinary business, within the
meaning of that section, and that it is not
taxable, even though it would be taxable, if
owned by an individual or ordinary business
corporation. They base this contention on
what was said in Boston & Maine R. R. v.
Franklin. 76 N. H. 459, 84 AU. 44, as to the
4b39Far other oses «m mma topic and KEY-NUMBER In aU Kej-Numbered Dlscsti and Ind«x«a
Digitized by VjOOQIC
664
101 ATIiANTIC REPORTER
(N. H.
meaning of the term "ordinary business," as
used in P. S. c. 84, { 12.
The purpose the Legislature had in mind
when It enacted section 11, as well as the
sense in which it used the term "ordinary
business," are questions of fact pure and sim-
ple, and, like all such questions, to be decid-
ed, not by rules of law, but by weight of
competent evidence. It is fair to assume
that the Legislature did not Intend, when it
enacted that section, to put railroads in a
better position, in so far as taxation Is con-
cerned, than individuals and ordinary busi-
ness corporations; but that is the effect of
section 11 if the term "ordinary business" is
given its ordinary meaning. It is true there
is a presumption that that is the sense in
which the Legislature used that term ; but it
is a presumption of fact, not law, and conse-
quently it may be rebutted by competent evi-
dence, and the fact that, If that term is
given its ordinary meaning in section 11, the
personal property railroads use only mediate-
ly in the transportation business escapes tax-
ation, notwithstanding it would be taxable if
owned by an Individual, tends very strongly
to the conclusion that that was not the sense
in which the Legislature used that term iu
that section. In other words, it is so im-
probable that the Legislature of 1911 Intend-
tjd to exempt property, when owned by a rail-
road, that would be taxable if owned by an
individual or ordinary business corporation,
as to warrant the court in holding that that
was not the purpose it had in mind when it
enacted section 11, if the terms it used are
capable of the construction that property
which is taxable under the provisions of P.
S. c. 55, when owned by an individual, is
taxable under the provisions of chapter 160
when owned by a railroad. Phillips Acad-
emy V. Exeter, 68 N. H. 306, 42 Am. Rep. 689.
The language of section 11 is fairly capa-
ble of such a construction, for "ordinary
business" is often used as synonymous with
the business a person ordinarily carries on ;
and if that term is given that meaning in
section 11 the property in question is taxa-
ble. If it would be taxable if owned by an
individual. It does not necessarily follow,
therefore, from the fact that the Legislature
used the term "ordinary business" in P. S. c
64, I 12, to describe the transportation busi-
ness, that that is the sense in which it used
that term in Laws 1911, c. 169, { 11; for,
as we have seen, whether that was the sense
in which it used it is a question of fact, and,
while the evidence In the IB^nklin Case all
traded to the conclusion that that was the
sense in which the Legislature used it in sec-
tion 12, the evidence in this case tends very
strongly to the conclusion that that term, as
used in section 11, includes any business
railroads ordinarily carry on in connection
with the transportation business. Since the
plaintitTs ordinarily carry on the business of
building and repairing equipment, the mate-
rials in question are taxable as stock in
trade, if they would be so taxable if owned
by an individual or ordinary corporation car-
rying on the same business in the way and
for the purpose the plaintiffs carry it on.
Stock in trade is defined In P. S. c. 55, i 7,
subd. 6, as the stock of mechanics and trades-
men employed in their trade or business.
Any person is a tradesman who carries on
the manufacturing or repairing business for
himself, whether he does the work with his
own hands or employs others to do It for
him; for example, a blacksmith who runs a
shop in which he shoes his neighbor's horses
and mends their tools is a tradesman within
the meaning of this section. White Mt. Fur
Co. V. Whltefleld, 77 N. H. 340, 91 Atl. 870. and
that is also true of the Amoskeag -Manufactur-
ing Co. Company v. Manchester, 70 X. II. COO.
46 Atl. 470. Since the plaintiffs ordinarily car-
ry on the business of building and repairing
equipment, tl:cy are mechanics and tradesmen
within tlie meaning of section 7, and the ma-
terials they u.se in that branch of their busi-
ness constitute property used in their ordina-
ry business within the meaning of that term
as used in section 11, and are taxable unless
the fact the only use they make of these ma-
terials is to build and repair the equipment
they use in other branches of their business
deprives them of the character of stock in
trade. In fact, the plaintilis concede that
these materials would be taxable as stock hi
trade if they used them to build and repair
equipment for others, but contend that they
arc not stock in trade within the meaning of
tills provision of the statutes, because the
only use they make of them is to build and
repair the equipment they use in the trans-
portation business. In other words, the
plaintiffs concede that they are mechanics or
tradesmen within the meaning of this provi-
sion of the statutes, but contend that the
property in question is not taxable as stock
in trade, because they do not carry on this
branch of their business for profit.
If it were conceded that this conclusion
could be drawn from the findings in the case,
it would not help the plaintiffs for the prop-
erty that is taxable as stock in trade is "stock
• • • employed in their trade or business."
The plaintiffs carry on the business of build-
ing and repairing the equipment they use-
consequently the property in question is prop-
erty they employ in tbeir trade or business.
While the plainttfCs' contention that the mate-
rials they use to build and repair equipmott
stand Just exactly the same, in so far as
taxation is concerned, as those a teamster
uses to build and repair carts, is soun^, its
application to their contention that the prop-
er^ in question is not taxable is not appar-
ent If a teamster was ordinarily engaged
in building and repairing carts, either for
him.self or others, in connection with his
teaming business, then and in that case build-
ing and repalrhig carts would be his busi-
ness within the meaning of section 7, suM. 6,
and the materials be used in that business
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ROSBXZWOG V. OOUIiD
665
would be taxable as stock in trade. If, how-
ever, the only work of this kind that he did
was occasionally to build or repair a cart, he
would not be engaged in the bnsiness of bulTd-
ing carts, and, while the materials he used
might or might not be taxable under some
other provlsloa of the statutes, th«y would
not be taxable as stock in trade, for a tax on
stodS In trade is not a tax on any specific
property, but a tax on the money a person
employs in his trade or business. So, if all
the business of this kind the plaintiffs did
was to occasionally repair a car or an en-
gine, they would not be engaged in the busi-
ness of building and repairing equipment, and
while the materials they used for that pur-
pose might be taxable, they would not be tax-
able as stock In trade. That, however, is not
this case; for the plaintiffs are engaged in
building and repairing equipment In fact,
building and repairing it is as much a busi-
ness In which they are engaged as transport-
ing frpight and passengers. It must be held,
therefore, that the materials in question are
stock in trade, within the meaning of P. S. c.
55, { 7, subd. "G, and that they were properly
taxed by the state in 1916.
[2] The only other question that will be
considered la whether the court has such Ju-
risdiction of the plaintiffs and their property
that it can value the property that escaped
taxaticm in 1013 and assess a tax on it in
this proceeding. It Is enough, in so far as
this case is concerned, to say that if the court
has power to assess a tax on the property in
question in this proceeding, it has poww to
assess a tax on it in a proceeding brought for
that purpose; for the power to make such
orders as justice requires, conferred on it by
P. S. c. 59, § 11, does not include the power
to compel the prevailing party in a tax appeal
tp pay a d«bt, that could not be otherwise
<»llected, which he owes a stranger to the suit
ns the price of a decree abating the Illegal tax,
and the court must have that power, if it is
to give the state the relief prayed for. The
power to determine what property shall be
taxeSd and by whom the tax shall be assessed
is vested In the Legislature, subject to the
limitations imposed on it by the Constitution ;
consequently the court has no Jurisdiction
either to value the plaintiffs' property or to
assess a tax on it, unless there U a statute
giving it that power.
The only statute giving the court any pow-
er. In so far as taxing the plaintiffs' property
Is concerned, is Laws 1911, c. 169 — the act
creating the tax commission. Section 8 of
this act provides that the commission shall
appraise the taxable property of railroads
and certain other corporations, and assess a
tax on them for the benefit of the state. Sec-
tions 11 and 24 delimit the property taxable
un'der the provisions of section 8. Sections
12, 13, 14, 15, 16, and 17 prescribe how the
commission shall proceed in appraising the
property, and specify certain things that it
shall consider in ascertaining the value of
the property and determining the rate at
which it shall be taxed. Section 18 fixes the
time within which the tax shall be assessed,
and provides for rehearings; and section 19
gives both parties an appeal to the court from
any order or finding of the commission by
which th^r rights may be concluded. The
court's power, therefore, In respect to both
appraising and taxing the plaintiffs' proper-
ty, Is the power to revise the commission's
findings on appeal; for that is the only pow-
er that chapter 169 confers on it In other
words, the court has no common-law juris-
diction In respect to valuing and taxing the
plaintiffs' property, and its statutory Juris-
diction is limited to revising such orders and
findings of the tax commission as come before
It on appeal. The court, therefore, has no
power to Impose a tax on the plaintiffs' prop-
erty that escaped taxation in 1913 In this
preceding. Whether it has such power, on
appeal from an order of the tax commission,
taxing or refusing to tax the property, is a
question that is not and cannot be raised in
either of these proceedings, and as to it no
opinion is intended to be expressed.
The order in the first case should be: Ap-
peal sustalneid. Tax abated. In the second :
Appeal dismissed. All concurred.
cm Md. 2oe)
ROSENZWOG v. GOULD. (No. 26.)
(Court of Appeals of Maryland. June 28, 1917.)
1. Tbdsts «=»197 — Salb on Court's Obdeb—
Title of Pubchabeb— Collatebal Attack.
Where a court having jurisdiction determin-
ed the title to a trust estate, and, on request be-
ing made by the parties in interest, directed the
trustee to sell the property and distribute the
proceeds among them, and the request was filed
and the property duly sold to plaintiff, the sale
reported, ratified, and confirmed, a distribution
of the trust estate made, and no appeal taken
from the decree, defendant, in suit tor specific
performance of a contract for the purchase from
plaintiff of a ground rent issuing out of the prop-
erty, could not attack jijlaintiff's title, since
where there was jurisdiction in a court, the er-
roneous or improvident exercise of it is not to be
corrected at the expense of a purchaser having a
right to rely on the court's order.
2. Descent and Distbibution ^=»17 — Con-
tingent Reuaindeb — Death of Remain-
DERliAN.
Where a contingent remainder is devised,
and the remainderman dies before the happening
of the contingency, his representatives or heirs
take his interest
3. WttLs ®=>700 — CoNSTBDonoN — Jubisdic-
TioN— Parties.
'Testator'^ will directed that trustees should
receive $10,000, proceeds of a life policy, invest
in ground rents, and pay from the net proceeds
for 10 years $50 to liquidate a debt of $500;
that until the debt was paid, testator's widow
should receive the balance of the returns, bat,
after full payment, she should receive the whole
of the net proceeds for life; that after her death
the trustees were to pay the same in like man-
ner to testator's daughter for life, after her death
in equal proportions to her children until the
^=»For other cases see same topic and KBT-NUMBER In all Key-Numbered Digests aod Indexes
Digitized by
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666
101 ATLANTIC KEPOBTER
(Ud.
youngest should reach 21, and that then, to such
children as should be living, the whole estate
should be given in fee simple, but that if the
widow died and the daughter left no child or
children, the trustee should pay to testator's sis-
ter $100 a year during her life, the balance of
the dividends to be added to the principal and
retained for 21 years after testator's death and
that of his wife and daughter, when the estate
should be divided equally among his brothers
and sisters, naming them. The sister given a
contingent remainder of $100 a year died several
years before testator's widow and daughter.
Held, that with the heirs of testator's deceased
brother and sisters before the court, it had juris-
diction, at suit of the executors, to decree to
whom the trust estate should go.
Appeal from Circuit Conrt No. 2 of Balti-
oiore City ; Henry Duffy, Judge.
Suit by Beryl M. Gould against Morris J.
Roseiizw(%. From a decree for plaintiff, de-
fendant appeals. Affirmed.
Argued before BOYD, C. J., and BRISCOE,
BURKE, THOMAS, PATTISON, URNBR,
STOCKBRIDUE, and CONSTABLE, JJ.
Karl A. M. Scholtz, of Baltimore, for ap-
pellant Leigh BoDsal, of Baltimore, for ap-
pellee.
CONSTABLE, J. This appeal is from a
decree passed decreeing specific performance
of a contract made by the appellant for the
purchase from the appellee of a ground rent
Issuing out of property located in Baltimore
city. The bill alleged that the appellee ac-
quired title through one James H. Corrigan,
substituted trustee of the trust estate creat-
ed by the will of Samuel Hubbell, who died
in 1836, leaving surviving him as his heirs at
law and next of liin a widow, Sarah C. Hub-
bell, who died in 18S0, and a daughter Rach-
el, who intermarried with one Barnard ; that
the daughter Rachel had one child, Kate G.
Barnard, who married one Gaspari; that
Kate G. Gaspari died in 1911, without de-
scendants and prior to the death of her
mother, the daughter of the testator, in 1915.
Shortly after the death of Rachel E. Barnard
her executors filed a petition In the equity
case, in which years prior the superior court
had assumed jurisdiction over the Samuel
Hubbell trust estate, asking the court to de-
cree as to whom the trust estate should go,
that is, to the legatees under a will left by
the said Rachel E. Barnard or to the heirs at
law of the brother and sisters of the testa-
tor, Samuel Hubbell, who had been named in
his will to receive the principal of the trust
estate in the event of the death of his daugh-
ter Rachel without descendants. To this pe-
tition all of the legatees under the will of
Rachel E. Barnard and all of the descend-
ants of the deceased brother and sisters of
Samuel Hubbell, who were entitled by descent
or otherwise to the estate of their respective
parents, filed answers. Upon submission of
the case to the court, it was decreed that the
daughter Rachel had but a life estate, and
the trustee was directed upon request being
made by the descendants of the brother and
sisters, all of whom were sui Juris, to sell
the property and distribute the proceeds
among them. Said request was filed, and the
property duly sold to the appellee and said
sale duly . reported to and ratified and con-
firmed, and a distribution of the trust estate
made in conformity to the decree, and no ap-
peal taken from the decree. The answer fil-
ed by the appellant admitted all the allega-
tions of facts contained in the bill, but al-
leged that the decree authorizing the sale
and distribution under the same was invalid,
for want of proper parties before the court
The case was then heard on bill and answer.
[1] This case plainly comes within the
thoroughly settled doctrine applicable to col-
lateral attacks upon titles obtained by par-
chasers at sales under decrees of a oourt of
equity. The rule Is well stated in Long v.
Long, 82 Md. 33, as follows:
"With respect to the jurisdiction and power of
the coun^ court to pass the decree, under wbidi
tlic sale was made, we can entertain no doubt
The clause of the will forbidding the sale or
lease of the property until the occurrence of
certain events, did not affect the Jarisdiction of
the court. The court was one of general equity
jurisdiction, and the subject-matter and the par-
ties fell within the scope and limit of that juris-
diction. The object of the application was,
in the first place, to have one trustee removed
and another appointed in his stead ; and, in the
second place, to have real property that was
held in trust sold for the interest and common
benefit of all parties concerned. These were ob-
jects clearly within the jurisdiction of the court;
and, while it may have been error to authorise
the sale, in view of the special provision of the
will, yet that was matter of construction upon
which the court was competent to pass, and for
any error committed in that respect, the proper
remedy was either by bill of review in the same
court, or an appeal to a court of review. The
general and well-settled rule of law in all such
cases is that when the proceedings are collateral-
ly brought in question, and it appears on their
face that the subject-matter was within the ju-
risdiction of this court, they were not impeach-
able for mere errors or irregularities that may
be apparent. Such errors and irregularities
must be corrected by some direct proceeding,
either in the court to set them aside, or on ap-
peal. If, however, there be a total want of ju-
risdiction, either of parties or subject-matter,
the proceedings are void and can confer no right.
and will be rejected, though the objection to
them be taken in a collateral proceeding. But
where there was jurisdiction in the court, the
erroneous or improvident exercise of it, or the ex-
ercise of it in a manner not warranted by the evi-
dence before it, whether that be in respect to the
construction of written instruments, or deduc-
tions drawn from unwritten proof, the errors,
however apparent, are not to be corrected at the
expense of a purdiaser, who had a right to rely
upon the order of the court, as an authority em-
anating from a competent jurisdiction. The
county court having jurisdiction over the subject-
matter and the partlea, it had a right to decide
every question that arose in the cause, and
whether the decision be right or wrong, it must
be respected by all other courts when coming
collaterally in qnestion. Any other principle
would unsettle and render insecure the larger
portion of the titles of the country. This court,
in common with the other appellate courts of
this country, has repeatedly asserted these prin-
ciples to their fullest extent."
See Miller's Equity, {{ 516, 517, and note.-;.
Such being the law applicable, it onlj re-
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WESTERN NAT. BANK t. JENKINS
667
mains to ascertain whether the proper par-
ties were before the court, In order that it
should have had complete Jurisdiction to
make the decree a valid one, bo far as this
attack upon Its validity is concerned. We do
not deem It necessary to set out the will of
Samuel Hnbbell verbatim, but wUl confine
ourselves to the substance thereof as perti-
nent to the question here Involved. It direct-
ed that certain trustees should receive the
sum of $10,000, the proceeds of a life Insur-
ance policy, and Invest the same, preferably,
in ground rents in Baltimore city, and pay
from the net proceeds thereof for a term of
10 years $50 to a certain Capt Godfrey or
his heits for the purpose of liquidating a
debt of $500 owing by him to Godfrey ; until
that debt was paid in full the widow was to
receive the balance of the rents and profits,
but, after the full payment, the widow was to
receive the whole of the net profits, for life.
After the death of the widow the trustees
were to pay the same, and, in like manner, to
his daughter Rachel during her natural life —
"and after her death the same and in equal pro-
portions to her children nntU the youngest of
them shall have attained the age of twenty one
years, then to auch children as shall be living
at that time the whole estate shall be given in
fee simple when said trust shall be at an end.
But in the event of the death of my said wife S.
O. Habbell, and my daughter, Rachel Eliza Hnb-
bdl, said Rachel Eliza Hubbell leaving no child
or children, then said trustees shall pay to my
tiater, Sasan Scott, one hundred dollars a year
during her natural life."
The balance of the dividends were to be
added to the principal of the estate and "re-
tained in the bands of the trustees for the
term of 21 years after the death of the testa-
tor, and his wife, 8. C. Hubbell, and his
child, Rachel Elizabeth Hubbell," at which
time the estate was to be divided equally
among his brother and sisters, each of whom
was named expressly in the wllL Susan
bcott died several years before the widow
and daughter of the testator.
[2] It is a well-settled principle of law
that when a contingent remainder Is dpvlsed,
where the person who is to take Is certain,
and that person dies before the happening of
the contingency, his representatives or heirs
take bis Interest. Buck v. Lentz, 49 Md. 439 ;
Hambleton t. Darrington, 36 Md. 434; De-
miU V. Reld, 71 Md. 175, 17 Atl, 1014. By
tbe terms of the will the sisters and brother
were to take In the event of the death of his
daughter leaving no child or children. At
the time of the daughter's death all of the
sisters and brothers were dead. The court,
in construing the will and determining the
parties entitled under its terms, took proof
as to whom were the heirs, or otherwise en-
titled, of tbe deceased brother and sisters,
and determined them, and held that, since
the wishes of the testator had been gratified
and the persons entitled were sul Juris, the
trust would be terminated upon their request
and consent.
[3] We must hold then that with these par-
ties before the court it had Jurisdiction, and
that therefore the decree passed therein is
not subject to this collateral attack.
It follows that the lower court was correct
In passing the decree from which this appeal
was taken.
Decree affirmed, with costs to the appellee.
(131 Hd. 239)
WESTERN NAT. BANK v. JENKINS et aL
(No. 42.)
(Court of Appeals of Maryland. June 28, 1917.)
1. mobtoaqes ®=>1&— fotobe anvaitcb»—
Validitt — Statutes.
Mortgages for future advances are still valid
in Maryland ; Laws 1825, c. 50, and Laws 1872,
c. 213, codified in Code Pub. Gen. Laws 1904,
art. 66, g 2, being strictly regulations, not pro-
hibitionR, of such mortgages.
2. MOBTGAQES @=>50— "MOBTOAOE TO SXCUBE
FuTUBE Advances" — Statute.
Where a mortgagee passed over to the mort-
gagor, on execution of the mortgage, the entire
consideration in money stated in the mortgage,
taking the mortgagor's promissory note for the
sum. It not being contemplated or suggested that
he should make any further loans, and the mon-
ey was turned over to a trustee, to be applied by
him in the construction of buildings for the
mortgagor, and the entire amount of tbe mort-
gage loan was so applied, the mortgage was not
a "mortgage to secure future loans or advances"
within Code Pub. Gen. Laws 1904, art. 66, S 2,
providing that no mortgage to secure future
loans and advances shall be valid, unless the
amount or amounts of the same and tbe times
when they are to be made sball be specifically
stated in tbe mortgage, and it constituted a first
lien on the mortgaged property.
Appeal from Circuit Court of Baltimore
City; H. Arthur Stump, Judge.
Suit by the Roland Realty Company and
Samuel H. Barton against Robert H. Jen-
kins, Alfred Jenkins Shriver, Individually
and as trustee, Howard C. Wilcox, trustee,
the Western National Bank, and Edwin T.
Dickerson. From the decree, the Western
National Bank appeals. Affirmed.
Argued before BOYD, C. J., and BRIS-
COE, BURKE, THOMAS, URNER, STOCK-
BRIDGE, and CONSTABLE, JJ.
Frank B. Ober and Joseph C. France, both
of Baltimore, for appellant Vernon Cook,
of Baltimore, for appellees.
BURKE, J. The Roland Realty Company,
a building corporation, hereinafter called the
Realty Company, executed and delivered a
mortgage to Alfred Jenkins Shriver on cer-
tain property described in the mortgage to
secure the payment of three negotiable
promissory notes made by the mortgagor to
the order of the mortgagee. One of these
notes was for the sum of $62,700, and payable
one year after its date; the other two be-
ing for the interest to accrue on said prin-
cipal sum, each being for the sum of $t,-
881, and payable in 6 and 12 months, re-
spectively, after date. The notes and mort-
<ts»Far other eases see same topic and KBT-NUMBBR In all K«y-Numb«r«d Digests and Indexes
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101 ATLANTIC REPORTER
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gage were dated the 1st day of August, 1911,
and tbe mortgage was recorded among tbe
land records of Baltimore dty. A second
mortgage on tbe property, bearing tbe same
date, was executed by tbe Realty Company
and delivered to Alfred Jenkins Shrlver to
secure the payment of the sum of $5,000 and
interest thereon. Tbe circumstances, brief-
ly stated, uuder which these mortgages were
made, are as follows: '
On July 11, 1911, an application was made
by the Realty Company to Alfred Jenkins
Shrlver for a mortgage loan on property lo-
cated on the north side of Thirty-Seventh
street, lii the city of Baltimore, between
Chestnut and Elm avenues. The applica-
tion stated that it was proposed to erect upon
the land a certain number of dwellings
therein described, which It was represented
In the application would cost between $2,100
and $2,200 each, and further that the actual
cost of the land to the appellant was $15,-
333.33. Certain rexiresentatlons as to im-
proved land and sales in the locality were
also made. The amount of the loan ap-
plied for was $66,000, at 6 per cent., payable
semiannually, for one year, and the appellant
agreed to give a bond of a Baltimore City
Bonding Company for tbe amount of the
mortgage for tbe completion of the buiidlugs.
It also agreed to pay a commission of 5 i)er
cent, on the amount of the mortgage loan
and a title fee, tbe amount of which was not
at that time fixed, but which was subsequent-
ly agreed to be 1 per cent, of tbe mortgage
loan. The applicant further stated that it
expected to provide tbe additional money,
over and above the mortgage loan, necessary
to complete the buildings from tbe sale of
other real estate and general credit This
application was made by Charles h. Fulton
on behalf of the Realty Company. Mr.
Shrlver brought tbe application to tbe at-
tention of Robert H. Jenliins, who agreed
to make a mortgage loan of $62,700, Instead
of $66,000, as applied for; It having been
found that the dwellings proposed to be
built could be erected for a less sum than
that stated in the application. This reduced
amount was satisfactory to the applicant,
and it agreed to accept It. The loan was
to be put through either on July 26 or Au-
gust 1, 1911. There Is some conflict in tbe
evidence upon this, but it la not of any im-
portance In this casa
The Realty Company was not able to give
the completion bond provided for In the
contract, but It gave a bond with Individ-
ual sureties. It was agreed that Mr. Jen-
kins should draw his checks to tbe order of
the mortgagor for tbe amount of the loan,
who In turn should pass the money over to
Alfred Jenkins Shrlver, as trustee, for de-
posit as a special fund In the Western Na-
tional Bank, and applied by Um to the con-
struction of the buildings in accordance with
a schedule of payments agreed upon by the
parties. The Realty Company did not have
title to the land on July 26, 1911, but It es-
pected to perfect Its title by August 11, 1911.
As Mr. Shrlver was about to leave tbe city,
the following things took place on July 26,
1911, in connection with the loan:
On that day two checks were drawn by
Robert H. Jenkins as follows:
"Baltimore, July 28, 1011.
"The Notional Bank of Baltimore:
"Pay to the order of tlie Uoland Realty Com-
pany forty-two thousand seven hundred doliara.
"$42,700.00. Robert H. Jenkins."
Tills check was indorsed as follows:
(1) "Pay to the order of Alfred J. Shriver,
trustee, in tbe matter of the Roland Realty Com-
pany, for II. II. Jenkins.
"Holand Realty Company,
"By Cliailes L. B^ulton. President."
(2) "For dejiosit to acct. of Alfred J. Shriver,
trustee, in matter of Roland Realty Company,
for R. H. Jenlcins, per Z. Bond Evans."
"Baltimore, Moryhtad, July 26tb, 1911.
"No. 6.
"Maryland Trust Company:
"Pay to the order of Roland Realty Company
twenty thousand dollars.
"Robert H. Jenkins."
Tbe indorsements on this check were as
follows:
(1) "Pay to tbe order of Alfred J. Shriver,
trustee, in the mntter of the Roland Realty Com-
pany, for R. II. Jenkin.s.
"Roland Realty Company,
"By Cli.irlps I.. Fulton, President."
(2) "For deposit to account of Alfred J. Shri-
ver, trustee, in the matter of the Roland Realty
Company, for R. H. Jenkins, per Z. Bond
Evans."
The checks were delivered to the Realty
Coniittuiy, and Z. Bond Evans, whose Indorse-
ments appear thereon, was a clerk in Mr.
Shrlver's office. These checks were deposit-
e<l In the Western National Bank under the
ntK>vc indorsoments and were paid, and the
proceeds carried to the credit of Mr. Shriv-
er, as trustee, In that bank. On the d^ioslt
book of the bank the following notation ap-
I)ears:
"Western National Bank of Baltimore, July
26. Cash $62,700. Alfred J. Shriver, trustee,
in the matter of Roland Realty Company, for R.
H. Jenkins."
The bank agreed to pay 3 per cent on the
deposits. The two mortgages were executed
on July 26, 1911, and held by direction of
Mr. Shriver until August 1, 1911, when It
was expected that the mortgagor would then
have title, and the transaction would be
finally closed. Upon the return of Mr.
Shriver to the city about September 17, 1911,
he found that the transaction had not been
put through as previously arranged. Mr.
Robert H. Jenkins became apprehensive
about the loan, and expressed a desire to
call it oft. After a number of Interviews be-
tween Alfred Jenkins Shrlver and Charles
L. Fulton, the Realty Company entered Into
the following agreement on October 4, 1911.
under which the loan was made:
"Roland Realty Company, in connection with
the construction of thirty-three houses on the
north side of Thirty-Seventh street and con-
cerning the deposit ol aixtj'-two thousand aeven
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WESTERN NAT. BANK y. JENKINS
669
hundred dollars in the Western National Bank :
"Whereas, the Roland Realty Company has
agreed to execute and deliver, for the purpose of
having the same recorded, certain mortgages, be-
ing dated the 1st day of August, 1911, to Al-
fred Jenkins Shriver, who in turn is about to
assign the mortgage for sixty-two thousand sev-
en hundred dollars to' Robert H. Jenkins; and
whereas, bonds have been executed of date of
August 1st by the said Roland Realty Company,
and certain sureties therein named to secure the
completion of thirty-three houses on Thirty-Sev-
enth street, Ijetween Chestnut and Elm avenues,
and which lots of ground are fully referred to in
said mortgage ; and whereas, it was agreed, for
the purpose of insuring the prompt construction
of said houses according to the terms of said
bond according to the plans and speciGeations
referred to in said bonds, and especially that
they should be completed within the period of
time mentioned in said bonds, that the title to
said property, subject to said mortgages, would
be transferred to Alfred J. Shriver, trustee, by
a deed duly executed and acknowledged, but to
be held by said trustee and not recorded until
some default should occur in constructing said
thirty-three houses according to the provisions
indicating the periods of time within which the
stages of construction should proceed as herein-
after set forth in the schedule attached hereto,
or that some default should occur in any of the
covenants of said mortgages.
"And it is also agreed that, should an^ such de-
fault occur, said deed shall, at the option of the
trustee, be immediately recorded, and that the
said trustee is hereby fully authorized and em-
powered to take possession of said property, and
either, in his discretion, to complete said houses
from the funds on deposit in the Western Na-
tional Bank, and should additional funds be nec-
essary he is further authorized to borrow other
funds that may be necessary to complete said
houses according to said plans and specifica-
tions, and he shall have full power to sell, lease,
morteage, or otherwise dispose of said property,
in his discretion, for the purpose of executing
all the agreements in connection therewith, and
after deducting all expenses which he may incur
for the purpose of completing said houses, in-
dnding the usual commissions to the trustees,
commissions to a builder, if it may be necessary
to employ a builder, at 10 per cent., the usual
commissions to real estate brokers for the pur-
pose of either leasing, selling, or mortgaging said
property, and he shall pay the balance, if any,
to tiie said Roland Realty Company.
"It is also agreed that the said trustee may,
on the demand of the mortgagee, return, the re-
mainder of said fund to the mortgagee, should
any su<4i default occur, or he may, at the option
of the said mortgagee, applj the same to the
completion or the construction of said houses.
Should any such default occur in the completion
or the construction ot said honsea, the trustee
shall have J. S. Downing, or some other experi-
enced builder, examine said honscs and certify
to the trustee that the work has not progressed
according to the schedules hereinafter set forth
and according to the plans and specifications and
the bond, and the period of four days shall elapse
from the time that the trustee may mail any
sncb notice to said Roland Realty Company at
its oflSce in the city of Baltimore, at 1024 Fidel-
ity Building, before the trustee shall declare a de-
fault and take possession of the property. The
trustee, may, in his discretion, for good and rea-
sonable cause shown, waive any default. And it is
further a^eed that, should any default occur, in-
terest paid by the Western National Bank shall
be paid over to the mortgagee, but the amount of
interest so paid shall be credited to the said the
Roland Realty Company on account of the in-
terest due on the mortgage. Should the interest
on the mortgage not be paid when due, the trus-
tee is hereby authorized to pay the interest and
to deduct the same from the payments due to
said Roland Realty Company for work done and
due to it for the construction of said houses.
"It is agreed that the work of constructing
said houses shall begin without any delay on the
5th day of October, and it is agreed that it shall
be completed as to the stages of completion and
within the periods of time hereinafter set forth
in the schedules attached hereto and which is
considered a part hereof.
"In testimony whereof, witness the corporate
seal of the said Roland Realty Company and the
signature of its president.
"[Seal.) Roland Realty Company.
"By Charles L. Fulton, President"
Befoi% this paper was executed Mr. Shriv-
er assigned the mortgage to Mr. Jenkins by
assignment dated October 1, 1911. Attached
to this agreement was a schedule of items,
and the periods of time within which the
houses should be completed, and the times
when the amounts Mr. Shriver, as trustee,
should pay to the Realty Company out of
the special deposit for the construction of
the houses. The work of construction be-
gan promptly, and Mr. Shriver, as trustee,
paid out of the trust fund during the course
of the work the sum of $40,42.5, and the bal-
ance of the special deposit, as will hereafter
be seen, was used in the completion of the
dwellings.
In the appllcntlon for the loan the Realty
Company stated, as we have said, that it
expected to get the additional money needed
for the completion of the dwellings from the
sale of other real estate and from general
credit. This credit It obtained at the West-
ern National Bank, which began on July 28,
1911, to make loans to the Realty Company
upon its promissory notes. Indorsed by
Charles L. Fulton and David M. Fulton. It
began these loans with no idea of a mort-
gage security, relying largely upon what it
supposed to be the financial responsibility of
David M. Fulton, and continued them until
September 19, 1912, at which time the in-
debtedness of the Realty Company to the
bank upon demand loans amounted to $35,
000. About that date the bank deemed it
advisable to get from the Realty Company
some further security. This matter was
turned over to Mr. W. Bums Trundle, its
counsel, who caused an examination of the
title of the Realty Company's property to be
made. The l)ank knew of the Jenkins and
Shriver mortgage at the time it began ad-
vancing money to the Realty Company, and
David M. Fulton testified that he told the
bank that the money deposited "covered this
piece of property, and that amount of money
was expected to build the houses, • • •
to be drawn out at certain intervals as the
houses were built" Mr. Trundle, after the
examination of the title, reported to the
bank:
"From the farts stated in connection with the
mortgage of the Roland Realty Company to Al-
fred Jenkins Shriver and the advances made by
him, Alfred Jenkins Shriver, to said company
after the date of the mortgage, that it was evi-
dently intended to be a mortgage to secure fu-
ture advances."
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101 ATLANTIC REPORTER
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With full knowledge of the two mortgages,
and after being advised by Its counsel, the
bank procured a mortgage from the Realty
Company to Edwin T. Dlckerson, who was
acting In Its behalf, for $35,000. This mort-
gage was dated September 21, 1912, and
was assigned by Mr. Dlckerson to the bank
on October 11, 1912. The bank then noti-
fied Mr. Shrlver that the Jenkins mortgage
was void, and that the Dlckerson mortgage
was the only valid Hen on the property,
and also Informed him that the bank pro-
posed to attack the mortgage. Subseauently
It was discovered that the Realty Company
owed large sunw to materialmen for build-
ing materials which had gone Into the prop-
erty, and to workmen, and the bank ad-
vanced the money to pay these obligations,
and took a fourth mortgage In the name of
Mr. Dlckerson for $10,400. This mortgage
was dated October 25, 1912. Then ensued
conferences and lengthy correspondence be-
tween Mr. Shrlver and the counsel for the
bank as to the rights of the respective mort-
gagees.
The work on the buildings had ceased, and
suggestions were made that Mr. Shrlver use
the unexpended money In bank to complete
the buildings. Default had occurred In the
mortgage covenants, and the Realty Com-
pany had defaulted under the agreement of
October 4, 1911. The bank insisted that the
Jenkins and Shrlver mortgages were Invalid,
and that it had held the only valid Hen on
the property. Mr. Shrlver Insisted that the
Jenkins and his own mortgage were valid,
and stood unmovable upon his rights and
obligations under the agreement of October
4, 1911, and refused to advance any more
money, except in conformity to the provisions
of that instrument In the meanwhile the
buildings, in their unprotected and uncomplet-
ed condition, were rapidly depreciating. Mr.
Jenkins procured a decree for the foreclosure
of his mortgage, and Howard WUcox was
appointed trustee to make the sale.
On February 12, 1913, the blU in this case
was filed by the Realty Company and Sam-
uel H. Barton, a lessee of certain of the
lots, against Robert H. Jenkins, Alfred Jen-
kins Shrlver, Alfred J. Slirlver, trustee, How-
ard C. Wilcox, trustee, the Western National
Bank, and Edwin T. Dlckerson. The prayers
of the blU were:
"(1) That a receiver may be appointed by this
court to take charge of said bouses and of the
remainder of said fund on deposit in tbe West-
em National Bank to the credit of Alfred J.
Shriver, trustee as aforesaid, and to proceed
with the completion of said houses, and for said
purpose to make use of said fund so far as the
same may be necessary. (2) That the said
Robert H. Jenkins and Alfred J. Shriver, in-
dividually and as trustee, as aforesaid, and tbe
said Howard C. Wilcox, trustee as aforesaid,
may be enjoined temporarily and permanently
from further proceeding in said foreclosure suit,
and particularly from making sale of tlie said
property under the foreclosure decree as adver-
tised or otherwise. (3) That your orators may
have such other or further relief as their cage
may require,"
AH the defendants, except Mr. Wilcox, trus-
tee, answered tbe bUI, and on the 15th day
of May, 1913, the court passed a decree by
which Alfred Jenkins Shriver was appointed
trustee to take charge of the property, and
also of the unexpended balance of the mort-
gage money remaining in the WSestern Na-
tional Bank, and to use that sum in com-
pleting the houses. He was also empowered
to seH the property. The fourth, fifth, sixth,
and seventh paragraphs of tbe decree are
here transcribed:
"(4) That in completing the houses hereinbe-
fore mentioned the said receiver sbaU first use
tbe sum of $22,475 now on deposit with the
Western National Bank above mentioned, and
tbe accrued interest tbereon, which amounts to
3 per cent, from August 1, 1912, and that in
the event that said sum and interest is insuffi-
cient to complete said bouses according to the
original plans and specifications thereof, and
to make the same salable as above stated, that
then tbe Western National Bank shall furnish
all such further sums of money as may be nec-
essary for that purpose.
"(5) That said receiver shall pay out of said
fund on deposit in tbe Western National Bank
the court's costs and expense, amounting to
about $80. incurred in connection with the fore-
closure proceedings in the case filed in this court
by Robert H. Jenkins against tbe Roland Re-
alty Company ; said amount not to be charged
against or deducted from the mortgage claim of
said Robert H. Jenkins.
"(6) Tbe said Robert H. Jenkins and West-
ern National Bank shaU be entitled to a first
lien on all the property herein mentioned; the
said Robert H. Jenkins to have such lien for
the above sum of $22,475, with tbe interest
which sball have accrued tnereon as above set
out, and said Western National Bank to have a
lieu for all such sums as may be advanced by
it under the terms of this decree — said liens to
cover said property, not only for the principal
sums above mentioned, but also for interest on
the same at the rate of 6 per cent, per annum
from the time such sums are paid to the receiver
until they are repaid by bim. And it ia further
ordered that out of the proceeds of the sale of
tbe bouses, as they shall be sold from time to
time by said receiver, there shall be paid to
the said Robert H. Jenkins tbe amount of the
deposit'in the Western National Bank, with in-
terest on the same as above set out, and, when
said sums shall have been fully paid and re-
turned to the said Robert H. Jenkins, that then
from the nroceeds of subsequent sales there
shall be paid the said Western National Bank
the amount of money that shall have been ad-
vanced by it under the terms of this decree to
tbe receiver, together with interest on tbe same,
as above set out.
"(7) That all questions of rights and prior-
ities not expressly covered herein between tbe
various parties mentioned in the pleadings in
this case are hereby reserved for the further de-
cision of this court, and tbe distribution of all
proceeds of sale over and above tbe amounts re-
quired to reimburse tbe said Robert H. Jenkins
and tbe said Western National Bank for the
sums advanced to the receiver under this decree
as above set forth, shall be held subject to the
further order of the court."
By an auditor's report filed Jannary 24,
1917, it appears that there is a balance in
cash in the hands of the receiver of $.31,362
and unsold property of the valne of $11,017.
These two amounts are not sufficient to pay
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WESTERN NAT. BAKK v. JENKINS
671
the balance dne on the Jenkins mortgage, or
the mortgages of the bank, and both mort-
gagees— Jenkins and the bank — are claiming
the fund in this case. The lower court
awarded the fund to Mr. Jenkins, and the
appeal in this case was taken by the Western
National Bank from that decree.
The sole gronnd npon which the Western
National Bank assails the Jenkins mortgage
1b that it Is alleged to be a mortgage to se-
cnre future advances or loans, and since the
amounts of the same and the times when
they were to be made are not specifically
stated In the mortgage, the mortgage Is void
under section 2, article 66, of the Code. Mr.
Jenkins acted in absolute good faith in the
transaction, and it Is not claimed that he had
in contemplation an evasion of the provision
of the Code referred to.
[1] Prior to the act of 1825 (chapter 50),
the validity of mortgages In this state to se-
cure future loans or advances was well rec-
ognized, and in the absence of statutory pro-
hibition they were so regarded wherever the
common law prevailed. Their use and con-
venience grew out of the necessities of trade
and commerce, and were availed of by mer-
chants and bankers, to provide for continu-
ous dealings and security for debts, balances,
and obligations to accrue at any future time.
Judge Story, In Leeds v. Cameron, 3 Sumn.
488, Fed. Cas. No. 8,206, said that:
"Nothing can be more clear, both upon prin-
ciple and authority, than that, at common law,
a mortgage bona fide made may be for future
advances and liabilities for the mortgagor to
the mortgagee, as well aa for present debts and
liabilities."
See, also, Wilson ▼. Russell, 13 Md. 530,
71 Am. Dea 645.
Mortgages for future advances are still
valid In this stata Neither the act of 1825
(chapter 60) nor the act of 1872 (chapter 213)
forbids them. They are statutory regula-
tions— not prohibitions — of such mortgages.
The first act was intended to limit the effect
and operation of such mortgages, by confining
the lien of the mortgage to the principal
sum or sums specified and recited In the
mortgage. The evils which this act was
Intended to remedy are fully stated In Cole
T. Albers, 1 Gill, 412, which will be present-
ly referred to. . Under the act of 1825 it was
not required that In a mortgage to secure
future loans or advances the amoimts of the
future advancements and when they should
be made should be stated In the mortgage,
but this requirement was added by the act of
1872 (chapter 213), which provides that:
"No mortgage to secure such future loans or
advances shall be valid nnless the amount or
amounts of the same and the times when they
are to be made shall be specifically stated in said
mortgages," etc.
The real questions In this case are: First,
what Is a mortgage for future. loans or ad-
vances? and, secondly. Is the Jenkins mort-
e&ge such a mortgage? These questions,
jpon the facts and circumstances In this case.
considered In connection with the law, com-
mon and statutory, upon the subject of mort-
gages for future loans and advances, appear
to us to present no real difficulty. In the
case of Maus v. McEelUp, 38 Md. 231, Judge
Robinson said:
"In the Cole v. Albers, 1 Gill, 423, the con-
struction and purposes for which the act of 1825
was passed were fully considered by this court.
In that case the mortgage was to secure the
mortgagees to the extent of $10,000. It appear-
ed in evidence that, at the time of its execu-
tion, a much less sum was due from the mort-
gagor, but that the mortgagees were responsible
for other sums on account of the mortgagor,
and that it was the intention of the mortgagor,
as shown upon the face of the mortgage, to
protect them to the amount of the $10,000, men-
tioned as the consideration. The court held the
mortgage was a valid security to the amount of
$10,000, because, that sum being mentioned in
it, no one could be deceived or prejudiced. The
design of the lawmakers,' says Judge Archer,
'in the passage of the act of 182.0 (chapter
60), was to prevent liens on property to ths
prejudice of creditors, for amounts and claims
never contemplated by the parties at the time
of its execution, and of which the deed by its
terms gave no notice, as if a deed were execut-
ed to cover a mortgagee against all future lia-
bilities of any and every description, which the
mortgagor might incur or be responsible for to
the mortgagee. • * • A practice prevailed
anterior to the act of 1825 (chapter oO) of tak-
ing mortgages for specified sums of money, great-
ly below Uie value of the mortgaged premises,
with a clause or clauses providing that the mort-
gaged premises should be held as a security for
all future liabilities or advances by the mort-
gagee to the mortgagor, by which means the
creditors of the mortgagor were defrauded, son.j-
times by fraudulent combinations between the
mortgagor and mortgagee, or by the acts of the
mortgagee alone, who, after the known insol-
vency of the mortgagor, purchased up liabilities
of the mortgagor at depreciated rates, and held
them as liens on the mortgaged premises for
their nominal amonnts. • • • Such transac-
tions the low wos designed to meet' We have
thus quoted at length the opinion of the cotirt.
because in it the construction and purposes of
the act of 1825 are fully considered. It will
thus be seen that, although the act of 1826, codi-
fied in article 64 of the Code, was directed
against any other or different principal sum or
sums of money than the principal sum or sums
that shall appear on the face of the mortgage;
that is, against new loans or debts, not contem-
plated by the parties at the time of the execu-
tion of the mortgage, but contracted subsequent-
ly and attached to the original debt by a new
and springing contract between the parties."
[2] The facts show that Mr. Jenkins pass-
ed over to the mortgagor at the time of the
execution of the mortgage the entire consid-
eration stated In the mortgage, and took th»
promissory note of the mortgagor for that
sum. It was not contemplated or suggested
that he should make any further loans. The
money was turned over to Mr. Shrlver, trus-
tee, to be held and applied by him In the
construction of the buildings under the
terms of the agreement of October 4, 1811,
and the entire amount of the mortgage loan
has been so applied. The trustee was hold-
ing the money In trust for the parties. The
use and possession and dominion over the
money had passed from Mr. Jenkins. Whose
money was It that the trustee was holding?
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672
101 ATIANTIC KEPORTER
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Certainly It did not belong to Mr. Jenkins.
That It was really the money of the Realty
Company, which It had borrowed from Mr,
Jenkins, and which the trustee was holding
for its benefit under the provisions of the
trust agreement, is shown by the fact that it
received from the trustee more than $40,000
of the fund prior to the commencement of
this litigation, and has since secured the ap-
plication of the whole balance to the com-
pletion of the bouses. Mr. Jenkins contem-
plated and entered into no scheme to evade
the law, as was done in Baltimore High
Grade Brick Co. v. Amos, 95 Md. 571, 52 Atl.
582, 53 Atl. 148, which, upon the controlling
facts, was wholly and entirely different from
the facts appearing in this record. We
therefore hold that the Jenkins mortgage is
not a mortgage to secure future loans or
advances, within the meaning of section 2,
article 66, of the Code, and that it consti-
tuted a first lien upon tlie mortgaged proper-
ty. The decree of the lower court properly
awarded the fund in the hands of the receiv-
er to Mr. Jenkins, and the decree will be
affirmed.
As to the second mortgage to Alfred Jen-
kins Shriver for $3,000, Mr. Shriver did not
appeal fi-om the decree, and, as there is no
money in the hands of the receiver to be ap-
plied to his mortgage, we do not find It neces-
sary to pass upon Its validity.
Decree aihrmed, with costs.
(ui Md. as)
CARNAGGIO v. CHAPMAN. (No. 47.)
(Court of Appeals of Maryland. Jane 28, 1017.)
1. Trial €='2i>2(8) — Instbuctions — Colli-
sion AT Stbeet Intebsection— Last Cleab
Chance.
In an action by plaintiff for personal in-
juries sustained when knocked down b^ defend-
ant's automobile near a street intersection, held,
under the evidence, that plaintiff's prayer, sub-
mitting the doctrine <^ last clear chance, was
properly refused.
2. TbIAI. «=>2.53(9)— iNSTBaOTIONS— Mislkad-
INO INSTBIJCTIONS.
An instruction that the burden is upon
plaintiff to establish by a fair preponderance of
affirmative evidence that the negligence of de-
fendant caused the accident is not objectionable
because using the word "affirmative, especial-
ly where the negligence, if any, must be found
in the affirmative evidence of plaintiff.
Appeal from Baltimore Court of Common
Pleas; Morris A. Soper, Judge.
"To be officially reported."
Action by Antonio Camagglo against
George W. Chapman. Judgment for defend-
ant, and plaintiff appeals. Affirmed, with
costs to defendant.
Argued before BOTD, O. J., and BRIS-
COE, BURKE, THOMAS, PATTISON, UR-
NRR, STOCKBRIDGE, and CONSTABLE,
JJ.
George Washington Williams, of Balti-
more (John Holt Richardson, of Baltimore,
on the brief), for appellant. R. Bayly Chap-
man, of Baltimore, for appellee.
PATTISON, J. This is an appeal from a
Judgment for the appellee in an action
brought against him by the appellant to re-
cover damages for personal injuries sustain-
ed by him, resulting from the alleged negli-
gence of the appellee in the operation of hia
automobile.
The plaintiff, Antonio Camagglo, while
crosislng Baltimore street, at or near its in-
tersection with Charles street, on July 12,
1916, was knocked down and personally in-
jured by the car or automobile of the defend-
ant driven by him. The plaintiff was cross-
ing from the north to the south side of Bal-
timore street, while the automobile of the
defendant was going west on Baltimore
street.
The testimony of the plaintiff as to the
hapi)ening of the accident is exceedingly
meager, and we will state it as it appears in
the record. It is as follows:
"That the accident happened at Charles and
Baltimore streets, to the best of his recollpption,
at between 3 and 4 o'clock. That he was about
to croRS the street; had his eyes open; saw
an automobile. That be stepped over in order
to wait for this automobile to go by. Then an
automobile came from the rear of this one, and
it struck him. That the machines were going
west. That be had not passed Baltimore street
That he had made only about two or three steps.
That he was watching the man in the front
machine all right, and be was all right, but all
at once unexpectedly, the other machine came
from the back of the one in order to pass this
and struck him. That the first machine passed
him. The socond machine did not whistle, or
sound any bell, but just struck liim. That it
tried to pass the first machine and struck him."
There was no other witness who testified
for the plaintiff as to the happening of the
accident.
The defendant testified that he was driv-
ing a runabout automobile on Baltimore
street, going west. He stopped when he
reached Charles street, and waited until sig-
naled by the semaphore in charge of the of-
ficer to proceed. He crossed Charles street
about 6 or 7 miles an hour. There was no
machine in front of him on the right-hand
side of the street between Charles and Han-
over streets. After passing Charles street he
pulled out to the right side of the street. He
was going slowly, and pulled to the right so
that if any one wanted to pass him they
could do so. A machine did pass him going
west on Baltimore street between 50 and 75
feet west of Charles street He saw it pass
him, but did not pay much attention to it.
He did not take his eyes off the street and
was going at that time about 8 or 10 miles
an hour. The other car was going probably
15 or 18 miles an hour when it passed him,
nnd was out in the car tracks. He was tJien
asked;
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CABNAGQIO ▼. CHAPMAJT
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"Did you see the plaintiff in this case before
the happening' of the accident? A. He was not
oat in the street. Q. Did you see xrhere he came
from? A. This man stepped off the curb; that
is the only way I can figure it I just had a
glimpse of him. He stepped off the footway,
and the minute he did, I put my brake on and
stopped the car."
He then testlfled that the left-hand front
wheel was on the man when be stopped.
Some one said:
" 'Back, back ; your front wheel is on the
man's leg.' I stopped that quick."
He further said "that he did not try to
pass or go around any other machine there
on Baltimore street." Upon cross-examina-
tion, he stated that when he arrived at the
east side of Charles street, there was not
any one ahead of him; that be was strad-
dling the north track of Baltimore street, or
he may have been between the tracks. When
signaled he went across Charles street and
stayed on the right side. After crossing
Charles street he drove close to the curb,
probably a foot and a half from the curb.
When the accident occurred he got out, put
the man in the machine, and rushed blm to
the bospital.
Patrick Leland, police officer stationed at
the intersectltm of Charles and Baltimore
streets, testlfled: That he recalled the occa-
sion of the accident. He saw the defendant's
machine and another going west on Balti-
more street. They stopped east of Charles
street, and awalt^l the signal for east and
west When It was given they both started.
"The defendant was on the inside, or next to
the north curb of Baltimore street, when the
other man tried to pass him, and they both
came Just together like that, on the center
of the street, at the center of Charles street.
There were both machines together. What
called my attention to It was that I was
watching to see if there was any violation of
the law, because the other machine was on
the west-bound track, and before the acci-
dent, about a second before the accident hap-
pened, this machine passed Chapman, say
about a yard on the west side of Baltimore
street." That he assumed Just a second aft-
er that machine passed, he saw Chapman's
machine stop like that, and somebody shout,
and he ran over. Q^at be did not see a
machine come around to the right of another
machine, as plaintiff testified, and strike the
plaintiff; both machines were going west,
and defendant's machine was passed by an-
other machine. The accident happened about
80 feet from the crossing. That he gave the
signal for east and west bound vehicles;
north and south bound were stopped until
they got the signal. The defendant crossed
Charles street at a speed between 6 and 8
miles an hour.
These witnesses, the defendant and Leland,
were substantially corroborated In all the
material facts to which they testlfled by John
W. Rice, who was standing on the corner of
Charles and Baltimore streets at the time
101A.-43
of the accident, and John C. Weedon, who
was riding with the defendant in the ma-
chine. We will not state their testimony' in
full, as it would unnecessarily prolong this
opinion.
At the conclusicm of the case the plaintiff
offered four prayers, designated as 1, 1%,
2 and 3. The flrst and third were grantid.
The others were rejected.
The defendant offered five prayers. The
flrst and second asked that the case he tak-
en from the jury, the first because of a want
of legally sufficient evidence, and the second
because of contributory negligence of the
plaintiff. These prayers were refused. The
third, fourth and fifth were granted.
There is but one exception In the record,
and that is to the rulings on the prayers.
The plaintiff does not concede the correct-
ness of the court In refusing its 1% prayer,
but he does not allude to it at all in his brief,
and we find no reversible error in the action
of the court in its refusal to grant it.
[1] The second prayer of the plaintiff sub-
mitted the doctrine of the last clear chance to
the Jury. There was not the slightest evi-
dence upon which this prayer could have been
based, and consequently it was properly re-
jected.
[2] The argument of the plaintiff was chief-
ly directed to the ruling of the court in grant-
ing the defendant's fifth prayer. By this
prayer the court was asked to instruct the
Jury that the mere happening of the accident
complained of raised no presumption of neg-
ligence on the part of the defendant operat-
ing the automobile referred to in the evidence,
but the burden is upon the plaintiff to es-
tablish by a fair preponderance of affirmative
evidence that negligence on the part of said
defendant caused said accident, and if the
minds of the jury are left by the evidence in
a state of even balance as to the existence
of such negligence, then the verdict of the
Jui7 must be for the defendant The ob-
jection to this prayer is to the statement
that:
"The burden is upon the i^aintifC to establish
by aiBrmative evidence that negligence on the
part of said defendant caused said accident"
It is the use of the word "affirmative" to
which the otidection is made. This objection
we think Is fuUy answered by this court
in SulUvan v. Smith, 123 Md. 558, 81 Atl.
456. There was in that case a prayer, word
for word, like the prayer here objected to,
and the same objection was there made.
Chief Judge Boyd, speaking for the court,
said:
"That is met by the case of B. & O. R. R.
Co. V. State, Use of Savington, 71 Md. 590,
on page B&» [18 Atl. 969, on page 971] where
Chief Jud|;e Alvejr said: 'It is incumtient upon
tiie plaintiff to give some affirmative evidence
of the existence of such ncRligence.' That has
been approved in RUey v. N. Y., P. & N. R. R.
Co., 90 Md. 53 [44 Aa 994] and B. & O.
R. R. Co. V. Black, 107 Md. 642 [69 Atl. 439,
72 Atl. 340]. Nor can we agree with the appel-
lant that this prayer prevented the jury from
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101 ATLANTIC REPOUTEE
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considering any evidence reflecting upon the neg-
ligence of the defendant, except that offered by
the plaintiff. The harden wai undoubtedly on
the plaintiff to establish by a preponderance of
evidence that the negligence on the part of the
chauffeur caused the accident. That might be
established by witnesses offered by the defend-
ant, but the burden was nevertheless on the
plaintiff to establish it. * * * If such an ex-
pression as that used in this prayer now under
consideration could not be used, it would be dif-
ficult to submit a proper prayer on the burden
of proof. What we have said above oueht to be
sufficient to show that the use of the expression
'affirmative evidence' does not make the prayer
objectionable. • • •"
We may also add to wbat has been said of
this prayer that. If there was any negligence
at all on the part of the defendant causing
the injury complained of, it must be found in
the affirmative evidence of the plaintiff, or
not at all; consequently the plaintiff was not
Injured by the granting of the prayer. We
also find no error in the ruling of the court
on the defendant's third and fourth prayers.
The Judgment of the lower court will there-
fore be affirmed.
Judgment affirmed, with costs to the ap-
pellee.
(Ul Hd. 228)
MAYOR AND OITX OOUNOIL OF BAI/H-
MORE V. SCOTT et al. (No. 36.)
(Court of Appeals of Maryland. June 28, 1917.)
1. Municipal Cobpobations $=>621 — Cou-
PELUNo Issuance of Buildiro Pebhit—
Fkaud or Coubt.
Petitioner for mandamus against the mayor
and city council of Baltimore to compel issu-
ance of a permit to erect a building could not
obtain the permit by mandamus to erect the
building for purposes set out in his petition, and,
after erection, use the building for other pur-
poses, without first obtaining the mayor's ap-
proval, since the action would be a fraud on the
court
2. Mdnicipai, Cobpobations €=9621— Boild-
INO PERUIT — VlOliATION— SUFFIOIEKCT OF
Evidence.
In suit by the mayor and city council of
Baltimore to enjoin the owner of a building, and
his tenants, from using the building as a
place where automobiles might be repaired, etc,
evidence held to show that the owner had vio-
lated tlie spirit which caused the court to issue
mandamus to compel plaintiffs to issue to the
owner a permit to erect a building for automo-
bile stores, not a service station authorizing the
relief aslicd.
Appeal from Circuit Court No. 2 of Balti-
more City ; Henry DufTy, Judge.
Suit by the Mayor and City Council of
Baltimore, a municipal corporation, against
Walter Scott, Firestone Tire & Rubber Com-
pany, and others, bodies corporate. UTom
an order dismissing the bill of complaint,
plaintiff appeals. Reversed, and cause re-
manded.
Argued before BOYD, C. J., and BRISCOE,
BURKE, THOMAS, PATTISON, URNER,
STOCKBRIDGE, and CONSTABLiE, JJ.
Alexander Preston, Deputy City Sol., of
Baltimore (S. S. Field, City Sol., of Balti-
more, on the brief), for appellant. Randolph
Barton, of Baltimore (James J. McGrath, ot
Baltimore, on the brief), for appellees.
CONSTABM!, J. This case is a sequel to
that of Stubbs v. Scott, reported in vn Md.
86, 95 Atl. 1060, Wherein the appellant in
that case, as inspector of buildings of Balti-
more city, was directed, by the writ of man-
damus, to issue to the appellee a permit to
erect a building as prayed for. The present
appeal Is from an order dismissing the bill
of complaint of the appellant in the present
case, praying for an injunction to restrain
the appellees from using the building, erected
under the aforesaid permit. In the manner
they are now doing.
[1] It appears from the record that Walter
Scott, one of the appellees, on the 18th day
of June, 1915, filed bis petition In the sn-
perlor court of Baltimore city, praying that
the writ of mandamus be directed to the
building inspector of Baltimore city, requir-
ing him to issue to the petitioner a permit
for a building, to which we will refer more
in detail later. The petitioner recited there-
in that:
"In or about the month of February, 1915, de-
siring to erect and conduct a salesroom and
service station for the sale of automobiles, and
for the other purposes incident to the business of
such establishments"
— he applied to the defendant for a permit
to erect a building suitable for that business,
on the lot of ground situated on the east
side of St Paul street, between Mt. Royal
avenue on the north and Preston street on
the south, having a frontage on said street of
110 feet and a depth of 122 feet and 6 inches
back to an alley running parallel with said
St. Paul street and of a width of 20 feet. It
was then recited that the said permit was not
granted, and that "subsequently your petition-
er, being still anxious to secure a location
on said lot for the sale of automobiles, aban-
doned the idea of establishing a service sta-
tion at the place named, and purchased said
lot of ground from the ovmers of the same and
now own said property," and that he again
made application to the defendant "for a per-
mit to erect on said lot four stores for general
business purposes. In accordance with the pro-
visions of the plat and specifications herewith
filed; • • • that your petitioner propos-
es to use one of said stores for the purpose of
exposing for sale and for selling automobiles;
that the other stores be proposes to rent, or,
if it proves to be expedient so to do, to sdl
them, when they will be used for such purposes
as stores so located may be profitably used."
This application was also refused. The court,
after bearing the testimony, in which the pe-
titioner fully explained the purposes for
which he intended to use the bunding under
his first application as well as under his sec-
ond application, directed the writ of manda-
mus to issue. This court on appeal affirmed
that decree. Chief Judge Boyd, in delivering
the opinion of the court on that appeal, said:
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MAYOK A CITT COUNCIIi OF BALTIMORE r. SCX3TT
675
"He (Stubbs) admitted that he was inflaenced
by the facts that the plan of the building was
susceptible of being used as a garage, and that
the second applicant was the same person as
the first applicant. He also admitted that he
discredited Mr. Scott's good faith end his state-
ment that he wanted It now for stores, • • •
As we have seen, the petitioner in this case ask-
ed for a mandamns to compel the respondent to
issue a permit 'to erect on said lot four stores
for general business purposes, in accordance
with the provisions of the plat and specifications
herewith filed.' The order of the lower court di-
rected 'that the writ of mandamus be forthwith
issued in manner and form as pra;ed in said
petition,' and we cannot admit, as understood
It to be suggested at the argument by counsel
for appellant, that the petitioner can obtain a
permit, through the aid of the court, to erect a
building for purposes set out in his petition, and
then, after he has erected the building, make use
of it for purposes such as he is not entitled to
use it for, without first obtaining the approval
of the mayor, particularly for such purposes as
his petition shows he first asked a permit for,
which was refused. That would be a fraud on
the court which granted him the relief prayed
for, and any attempt to perpetuate it could
and should promptly be checked. We are not
now called upon to pass on the validity of the
ordinance, in so far as the particular provisions
applicable to garages, etc., and numbered 5, are
concerned, inasmuch as if the petitioner desired
to attack the ordinance he could have done so,
bnt, practically conceding it to be valid, aban-
doned further effort to get that permit, and now
seeks one for another avowed purpose. Hence
we say he would not be permitted to erect a
building, under a permit obtained by the help
of the court, for the purpose stated in the peti-
tion, and then use it for other purposes which
were denied him. We do not mean to say he
cannot use a store to exhibit automobiles for
sale, as he says his intention is, but he cannot,
under the permit to be granted under this pe-
tition, use it as a garage or service station, such
as he first applied for."
All that remains for us to determine, upon
this appeal. Is whether or not there has been
such a use of the building as to evidence a
total disregard of the reasons expressed by
this court, as to why the permit should be
granted. And for this purpose, no better
method can be employed than to examine the
testimony of Scott, given during the trial of
the petition for the mandamus. In reference
as to what purpose he had intended to put
the building to when he first applied for the
permit, and what be said his Intention was
on his application for the second permit, and
to contrast that testimony with that in the
present appeal:
"Q. Did you ever apply to the authorities
fax Baltimore for a permit to erect and conduct
a salesroom and service station for the sale of
automobiles on St. Paul street? A. Yea, sir. Q.
When was that? A. That was early in the
spring, or late winter. Q. What did you con-
template having there at that time? A. A serv-
ice department. Q. What is a service station?
A. It is a service department It is a place
-where you take care of cars you sell and keep
tfaem in running order; if anything gets out of
order and needs attention, it is the place where
you give it to them ; they get attention there.
Q. You have workmen for the purpose of repair-
ing? A. Tcs, sir. Q. Some blncksmithing is
done? A. No. Q. Is not that an incident to
repairs that take place? A. It conld, but we
oon't run it that way ; most of the parts we fset
from the factory. Q. You do havQ hammermg
and noises of that kind incident to makhig re-
pairs? A. Yes, sir. Q. This peculiarity of a
service station is different from some other kind
of station, is it not? A. I don't exactly get
that. Q. A service station is where you re-
pair automobiles? A. Yes ; give them whatever
attention is required. Q. As they come in, do
you take them on storage? A. No, sir. Q.
That is not an incident of a service station?
A. We do not, but probably some other places
do. Q. Is not that one of the incidents of a
service station also taking them on storage? A.
That is optional with the man ; of course, some
do."
He then testified from the plans and speci-
fications filed as exhibits that:
The building to be erected would be a two-
story one, containing four stores on the lower
floor, each with a frontage of 27% feet, and a
depth of 122% feet; that the part of the build-
ing he intended to occupy was the front portion
of the second store from the south end of the
building, the dimensions of which were 27^ feet
at the front to a depth of 40 feet. Q. You are
going to use the first 40 feet as a storeroom; that
is, an exhibition room? A. Yes, sir. Q. What
are you going to use the balance in the rear for?
A. In the rear, I am going to rent that for any-
thing that I can use it for, anything at all, it
is for rent. Q. You are going to keep auto-
mobiles there for sale? A. Yes ; that is the
idea. Q. As a matter of fact, that in reality
is the kind of business you wish to conduct, the
kind that the Zell and the Mardel people con-
duct? A. Not exactly ; no, sir, I wish to con-
duct what I now conduct, sales agency, and to
take care of my own customers, my business has
grown, and I am not in a proper neighborhood
for the business I want to get ; I want to get
in an automobile district. I want to show my
goods where the other large dealers in Balti-
more show theirs ; that is why I want to get
down there; that is the main reason; a serv-
ice station can be added afterwards; it makes
no difference about a service station, but I want
to have the sales store there, I want to get
there so that when people go from Zell's they
will walk into my place, or from the Mardel
place, which is only a square or less than a
square further. Q. Your original plans, the
ones which were not granted, call for a service
station? A. Yes. Q. What do you mean by
service station? A. I mean a place to take
care of cars I sell, and keep them m running or-
der. Q. Keep them in repair, is that right? A.
Yes, sir. Q. Back of that salesroom, will there
be one or more rooms? A. Back of the sales-
room, on account of not getting the permit that
I wanted, I would rent for some purpose, I
would rent out, I would have to rent that out;
what I am desirous of getting is a salesroom;
in the rear of that, I cannot have a service sta-
tion, and I will rent it out for any purpose I
can rent it out for; I would fix that up to suit
some tenant I will have to get; that room will
not be any good to me there."
Could testimony have been made stronger
than this to convince the coort that Scott
bad absolutely given up all Idea of having
a service station upon the premises, and
that he had fully made up his mind to con-
fine bis efforts to a salesroom alone without
thought of doing repair work of any kind.
It Is not necessary to quibble over the tech-
nical meaning of the expressions, "public or
private service stations," or "public or pri-
vate garages," for we have In plain language,
from Scott, Just exactly the character o£
service station he sought In his first applica-
tion, and in emphatic language that he had
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101 ATLANTTIO REPORTER
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abandoned the Idea for Buch a station. It
la no wonder then that this court, with the
opinion that Scott had a legal right to erect
stores upon his lot, together with Scott's dis-
claimer, of any Idea of using the stores for
any other purpose, brushed aside the argu-
ment of the counsel for the city, based upon
no proof, that the second application was a
mere subterfuge to gain what he had lost
on the first application.
Now, let ns Inquire what was done by
Scott after the building was erected, and
what was being done by him and his tenants
at the time of the fiUng of this bill. The
building was erected according to the plans,
and was divided into four stores, on the
lower floor, of equal widths and equal depths,
the two adjoiuing stores to the north were
leased, for a period of years, to the Firestone
Tire & Rubber Ck>mpany, for the purposes, as
expressed in the lease, of carrying on "the
operation of its business as a salesroom and
other purposes pertaining to said business,
such as storing of stock, repairing and serv-
ice purposes." The lease contained the con-
dition that it would "abide by and perform
all of the requirements of law, or dty ordi-
nance touching the said premises, and any
business to be carried on, or about the same."
The store at the south end of the building
was leased for a term of years. And the
lessee covenanted that it would not "cause, or
suffer any noisy, offensive or improper use
of said premises to be made, or use any part
tliereof for any purpose more injurious than
tliat of a salesroom for automobiles, automo-
bile supplies, and accessories; nor do any-
thing, nor to permit anything to be done,
which in any way would conflict with the
laws, rules or ordinances of the city of Balti-
more." The remaining store Is occupied in
its enUrety by Scott After the filing of the
bill, the Little Giant Sales Company is al-
leged to have sold out Its Interest to the Reo
Maryland C!ompany, which company is now
occupying those premises, though the presi-
dent seems to l)e the same person. Scott has
the agency for, and sells the Marmon Pleas*
ure Car, and the Reo Maryland Company has
the agency for, and sells the Reo Truck. So
the building is occupied by three concerns,
engaged in the sale of automobiles, or their
accessories. Under our previous decision,
there could be no objection to this, bnt it is
contended, and, in our opinion, proved by
the overwhelming weight of the testimony,
that they are doing more than this. In fact,
so far as the testimony of Scott is concern-
ed, it Is admitted that he is doing more, but
It Is claimed by him that what he is doing
Is that which is necessary for the prosecution
of his business of selling automobiles. What
we refer to is that all of these concerns are
conducting service stations. According to
the proof, and the admissions, the Reo Mary-
land Company and Scott are both repairing
automobiles upon the premises In large num-
1 t>ers. Scott, In admitting this, testifies that
in making repairs he confines himself ex-
clusively to the cars which he sells and to tbe
cars of different makes which he takes lu
exchange, or part payment, of those he sells.
He testified that he employed four workmen
on the premises, but that no work was done
on any of these cars, but that character ot
work which could be done by physical labor
without the aid of machinery, such as was
pro<lucod by power. The proof shows that
the Reo Company does Its work in the same
way, with the difference that it does not
confine Itself to its own make of trucks, and
those taken In exchange, but takes In gener-
ally any car, and has a sign over Its place ot
business "Reo I^^ergency Station."
[2] Without going Into detail of the testi-
mony, we are of the c^lnlon that Scott has
flagrantly violated the spirit which caused
a permit to erect stores to t>e extended to
him, as a short extract from his testimony
in this case will show:
"Q. I am not asking you what you wanted to
do. We ail know that, and stopped you from
doing it. I am asking you now what you did
do, you got a permit to put a building there
with stores in it, did you not? A. Xes, sir.
Q. And then you added a service station op your
own account, did you not? A. On my own ac-
count? Q. Yes? A. What do you mean by my
own account? Q. You did not have a permit
for a_ service station? A. No, I did not have a
permit for a service station, I had a permit to
put a building up there, and I took it from that,
to sell automobiles, that was an incident to tbe
sale, a necessity to the sale, and as long as I
conducted tbe place as a private place, and not
aa a public place, there would not be any ob-
jection."
We need only refer to his testimony given
in the mandamus case, and quoted above by
us, to show conclusively that this Is exactly
what he had applied for in his flrst applica-
tion for a permit, and which had been aban-
doned by him upon the refusal of that per-
mit. And that is the very thing which this
court said, in its opiulon, should promptly be
checked if he attempted to da We do not
think It was possible for him to have mis-
understood this language:
"We do not mean to say be cannot use a store
to exhibit automobiles for sale, as he says his in-
tention is, but he cannot, under the permit to
be granted under this petition, use it as a
garage or service station, such as he first applied
for."
He had told the court. In tbe plainest kind
of language, what bis idea of a service sta-
tion was, and that he was not asking for a
permit for that Upon such assurance, his
permit was granted for an exhibition room
for automobiles. And yet, now, he admits
that he is doing Oie very selfsame thing that
this court had said he should not do.
The Firestone Tire & Rubber Company, as
its name implies, is a concern dealing in au-
tomobile tires. As we have pointed out
above, Scott leased two of the stores to it
for the purposes of a salesroom and other
purposes pertaining to said business, such
as storing of stock, repairing, and service
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MATOR, ETC., OP BALTIMORE ▼. CHESAPEAKE A P. TEL. CO.
677
purposes. On the day the company moved
into Its new quarters, there appeared In the
Daily Press of Baltimore, a write-up Inspir-
ed by the manager of the company of its
new quarters, and what the automobile pnb-
Hc could expect of it. The article is too
long to reproduce In this opinion, and we
will content ourselves with a few extracts
as illustrating the trend of the whole article:
"On the first floor will be a garage occupying
3,000 square feet. This will be used for motor
trucks, which can drive in from the alley in
the rear. The hydraulic press of 200 tons' ca-
pacity is in this garage, and the owner of a
truck may take hui truck to this garage and
have tires pressed on bis wheels in the quickest
time with experts. This garage is eauipped to
take care of ail the needs of a wheel oi a truck."
Again:
"The manager of the local Firestone branch
states that the new branch here is one of the
most complete in the entire country, and that
everything has been done towards rendering the
best possible service to users of Firestone tires,
whether pneumatic or solids for trucks. Spe-
cial equipment has been installed to take care
of truck tire users, and the owners of trucks
will find, says Mr. Leisure, that Firestone serv-
ice here will be nnparalleled in any part of the
entire country."
And again:
"Practically 24 hours a day service will be
Tendered truck users at the new Firestone
branch. • • • He will be told that he can
bring his trucks into the Firestone Garage late
at night and workmen will be kept there to press
on the tires when the trucks arrive.
"Service to Truck Owners.
"This new, fully equipped branch brings fao-
tory efficiency to you. Workmen with all the
ability of home-plant experts are here with com-
plete shop equipment. Depend on us to keep
yonr trucks moving. Command the .facilities
of this service station when your truck needs at-
tention. It was installed to serve yon."
The proof shows conduaiv^ that they
were doing all that their advertisement
claimed that they would do. They had in-
stalled the large hydraulic press, which from
fbe proof seems to have been in almost con-
stant use night and day, disturbing a num-
ber of the neighbors by the noises produced
by It. Trucks were coming and going and
blocking up the alley in the rear constantly.
In OUT opinion they cannot and should not
be permitted to use these stores In the man-
ner they have been doing since the first day
ot their occupancy. The service which they
are giving to the automobile public, with the
exception of the actual sale of tires, Is abso-
lutely contrary to the conditions under which
tlie bnilding permit was granted to Scott
As stated above, the Little Giant Sales
Company alleged in its answer that It sold
out Its interest in the lease to the Reo Mary-
land Company. The bill was not amended
so as to make the Reo Maryland Oompany a
party defendant, and therefore there is no
prayer against it for relief, but the prayer
aslcs for reUef only against the original de-
fendants, "and each of them, their agents
and servants," so, notwithstanding, we think
that in a proper proceeding the Reo Com-
pany should be enjoined nevertheless in this
proceeding we are not directing in remand-
ing the case, that the injunction shall issue
against it. But if there Is any disposition
shown on Its part to ignore this opinion, the
appellant should have no dilBculty in secur-
ing immediate relief for its infractions.
The Marmon & Cole Sales Company, one
of the defendants. Is not shown to have had
any connection whatever with the building,
or any of the business therein conducted, and
took no part in these proceedings, by answer
or otherwise.
For the above reasons we will reverse the
order appealed from, and remand the cause
in order that an injunction may issue as
prayed against all the defendants, with the
exception of the Marmon & Cole Sales Com-
pany.
Decree reversed and cause remanded, the
appellees to pay the costs.
(Utl Hd. 60)
MATOR AND CITY COUNCIL OF BALTI-
MORE et al. V. CHESAPEAKE & POTO-
MAC TELEPHONE CO. OF BALTIMORE
CITY. (No. eO.)
(Court of Appeals of Maryland. June 28, 1917.)
1. Taxation ©=s>466, 493(7) — Assessment —
Appeal.
Under Laws 1914, c. 841, adding section 238
to Code Pub. Civ. Laws, art. 81, creating the
state tax commission, and providing that any
taxpayer, having been assessed by the order of
the county commissioners or the appeal tax court
of Baltimore city, after a hearing, may appeal
to the state tax commission, etc., and section 244
(added), providing that appeals from any action
of the state tax commission to the city court
shall be taken, within 30 days of such action, by
petition setting forth the question or questions
of law desired to be reviewed, the state tax com-
mission had jurisdiction to entertain the appeal
of a telephone company from an assessment of
its physical structures made by the appeal tax
court of Baltimore city, and the Baltimore city
court was limited, on appeal to it from the order
of the tax commission reversing the assessment,
to consideration of the questions of law only pre-
sented by the petition, and could not review or
pass upon any questions of fact involved in the
assessment of the property by the state tax com-
mission.
2. Taxation «=:>485(2)— Absesbuent of Tax-
es—Review— Evidence.
On appeal to the state tax commission from
an assessment made by the appeal tax court of
Baltimore city of the physical structures of a
telephone company in the city^ evidence for the
telephone company of the findmgs of the public
service commission in the matter of the tele-
phone company's rate case was admissible as
part of the record of proceedings of the appeal
tax court, under Laws 1914, c. 841, adding sec-
tion 244 to Code Pub. Civ. Laws, art. 81. pro-
viding for appeals to the state tax commission.
3. Taxation ®=>493(7)— Assessment— Review
—Evidence.
Oral evidence tending to impeach the written
statement of valuation furnished the telephone
company was admissible.
»Vot otbar euei im MUne topic and KSY-NUMBBR in all Key-Numbered DIgesta and Indaxe*
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678
101 ATLANTIC REPOITER
(Mi
4. TAJtATroN «=»452— PowEES OF State Tax
Commission— Final Decision of Questions
OF Fact — Constitutionality.
It was competent for the Legislature to con-
fer on the state tax commisaion power to finally
decide questions of fact, without an appeal, ex-
cept upon questions of law.
6. Taxation «=»493(8)—As3E8smekt— Review
—Scope— Finding of Fact.
On petition of appeal to the Baltimore city
court from an order of the state tax commission
reversing an assessment made by the appeal tax
court of Baltimore city of the physical struc-
tures of a telephone company in the city, the
first prayer for ruling of the mayor and city
council of Baltimore was that, if the court found
that the state tax commission, in reducing the
assessment of the property of the telephone com-
pany from one amount to another, acted on the
assumption that the value fixed by the public
service commission for rate-making pnrposes
was the value which should be fixed by the tax
commission for purposes of taxation, etc., the
tax commission committed an error, Ueld, that
the prayer was erroneous, as requiring the court
to find a question of fact, when it was sitting
to review questions of law only, involved in the
assessment of the telephone company's property.
6. Taxation <g=493(8)— Asskssmentb— Poweb
OF State Tax Commission — Review of
Findings on Questions of Fact.
The final determination of assessments of all
property in the counties, cities, and towns of
Maryland is specially conferred by statute on the
state tax commission, and the valuation is to he
made according to its best judgment from the ev-
idence before it, and the courts are without ju-
risdiction to review its findings on questions of
fact
Appeal from Baltimore City Court; Car-
roll T. Bond, Judge.
"To be officially reported."
Proceedings to assess the physical struc-
tures of the Chesapeake & Potomac Tele-
phone Company. The state tax commission
reversed an assessment by the Appeal Tax
Court of Baltimore City, and from an order
of the Baltimore dty court, dismissing peti-
tion of appeal, the Mayor and City Council
of Baltimore and the Appeal Tax Court ap-
peal. Order affirmed.
Argued before BOTD, C. J., and BRIS-
COE, BURKE, THOMAS, PATTISON,
UBNER, STOCKBRIDGE, and CONSTA-
BLE, JJ.
S. S. Field and R. Contee Rose, both of
Baltimore, for appellants. Shirley Carter,
of Baltimore (Bernard Carter & Sons, of
Baltimore, on the brief), for appellee.
BRISOOB, J. The appeal In this case is
by the mayor and city council of Baltimore
and the appeal tax court of that dty from an
order of the Baltimore city court, dated
March 19, 1917, dismissing a petition of ap-
peal from an order of the state tax com-
mission of Maryland, dated the 16tb day of
August, 1916, reversing an assessment made
by the appeal tax court of Baltimore city
of the physical structures of the Chesapeake
& Potomac Telephone Company In the city of
Baltimore. The form of the order is as
follows:
Ordered this leth day of August, 1916, by the
state tax commission of Maryland, that the as-
sessment of $3,214,289.00 made by the appeal
tax court of Baltimore city of the poles and
fixtures, aerial cable, aerial wire, undergroinid
conduit, underground cable, submarine cable, in-
cluding appurtenances, of the Chesapeake & Po-
tomac Telephone Company of Baltimore dty, be
and the same is hereby reversed. And it is fur-
ther ordered, that the poles and fixtures, aerial
cable, aerial wire, underground conduit, under-
ground cable, submarine cable, including am)n^
tenances, of the Chesapeake & Potomac Tele-
phone Company of Baltimore city, situated and
located in the city of Baltimore, be and hereby
are assessed at the sum of $2.745358.00.
[Signed] A. P. Gorman, Jr.,
Lewin W. Wickes.
Commissioners.
It appears from the petition of appeal of
the Chesapeake & Potomac Telephone Com-
pany, set out in the record, and which was
filed on its appeal, before the state tax
commission of Maryland, that the appeal
tax court of Baltimore dty, on the 7tb of
April, 1916, assessed its physical structures
at the aggregate amount or value of $3,214,-
289; the property consisting of 6,068 poles,
498,509 feet of aerial cable, 3,023.34 miles
of aerial wire, 854,836 feet of underground
conduit, and 1,011,371 feet of underground
and submarine cable. By the second para-
graph of the petition it is alleged that, in
compliance with sections 159 and 162 of ar-
ticle 81 of the Code of Public G«ieral Laws
of Maryland of 1912, the proper officer of
the telephone company furnished to the ap-
peal lax court of Baltimore dty a true
statement of all real property owned and
possessed by it situated or located in the
city of Baltimore, state of Maryland, and
among other items were Its poles and fix-
tures, aerial cable, underground conduit, un-
derground cable, and submarine cable, with
their appurtenances. By the fourth para-
graph It Is further allegeid that the telephone
company Is advised, and therefore charges,
that the assessment made by the appeal tax
court of the items of property owned and
possessed by the company in the dty of Bal-
timore is Illegal, because more than the actu-
al cash value of the property aforesaid, not
looking to a forced sale, and because In ex-
cess of the value put upon the same items
of property when valued according to law
by public service commission of Maryland
for the purpose of fixing rates to be charg-
ed for telephone service, and Is erroneous
by reason of overvaluation, and is unequal,
in that the assessment has been made by a
higher proportion of valuation than other
real property on the tax roll by the same
officers, and that the telephone conqtany 1*
Injured, or will be, by such illegal, uneqaal.
or erroneous assessment, and prays the oom-
mlsslou to review the assessment.
On the 8th of May, 1916, a copy of the
petition was served upon the appeal tax
court, and a hearing before the tax eom-
misslon was set for June 22, 1916, at 1:30 p.
Qs»For other cases see same topic and KBT-NUM BER In aU Key-Numbered DlseaU sad InduM
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Md.)
MATOK, KTa, OF BALTIMORE ▼. CHESAPEAKE A P. TEL. CO.
679
m. At the bearing a demurrer was Inter-
posed to the petition, and the d«nurrer was
overruled ; but a demurrer to a part of para-
graph 4 of the petition was sustained — that
Is, to so much of the paragraph of the peti-
tion of appeal as refers to the Illegality of
the assessment made by the appeal tax court
of Baltimore, because the same Is In excess
of the value put upon the same items of
property when valued according to law by
the public service commission of Maryland
for the purpose of fixing rates to be charged
for telephone service, because the same Is
bad in substance and insufficient in law.
The case was then beard and fully argued on
both sides before the tax commission, and
on the 16th of August, 1916, the order here-
in recited was passed, setting aside the as-
sessment, which had been made by the appeal
tax court, and assessed the property at $2,-
765,358. The case was heard on appeal, in
the Baltimore city court, on the 16th of
March, 1917, without a jury, and the ques-
tions submitted for review and determina-
tion are stated, in the record to be as fol-
lows:
(1) The jurisdiction of the state tax commis-
sion to entertain this appeal.
(2) The admissibility of evidence for tlie tele-
phone company of the findiDgs of the public serv-
ice commission in the matter of the Chesapeake
& Potomac Telephone Company of Baltimore
City— rate case.
(3) The admissibility of oral evidence tending
to impeach the written statement of valuation
furnished said telephone company on March 1,
1916.
(4) The manner and form of said order for ac-
tion of the state tax commission, dated the IGth
day of Angust, 1916, reversing the assessment of
the appeal tax court and reassessing said prop-
erty.
(o> The method of computing the deterioration
of toe property in said appeal involved.
(6) The method of computing the constmction
of overheads in estimating the value of the prop-
erty in said appeal involved.
(7) The method of conserving the record of
proceedings at the hearing of this appeal, and
such other questions of law involved in this ap-
peal as may be raised at the bearing hereof.
[1] There can be no difficulty as to the
jurisdiction of the state tax commission to
entertain the appeal from the appeal tax
court, raised by the first question. By sec-
tion 238 of chapter 841 of the Lews of 1914,
creating a state tax commission for the state,
It is provided that:
Any taxpayer, • • • having been assessed
by the order of the county commissioners or ap-
peal tax court of Baltimore city, after a bearing
as hereinbefore provided, may appeal to the state
tax commisaon. • • •
And it is farther provided, by the same
section, that there shall be on appeal to court
on questions of law only from decisions of
tlie state tax commission, to the court in
tnat county where the property is situated,
and the state tax. commission is empowered
to participate in any procecdiug in any court
\rherein any assessment or taxation ques-
tion is involved. By section 244 of the 8am«
act it is also provided that appeals from any
action of the state tax commission to court
shall be taken within 30 days of such action
by petition setting forth the question or ques-
tions of law which it is desired by the ap-
pellant to review. All appeals to court in
Baltimore city shall be to the Baltimore
city court, and there shall be a further right
of appeal to the Court of Appeals from any '
decision of the Baltimore city court or of
the circuit courts of the several counties.
It will be thus seen that the circuit court
was limited, on the appeal, by the express
terms of the statute, to a consideration of
the questions of law only, presented by the
petition, and could not review or pass upon
any questions of fact Involved in the assess-
ment of the property by the state tax commis-
sion. The language of the act is clear and
positive that the state tax commission should
have the final determination of assessments'
of all property in all the counties and cities
of the state, subject to such review only by
the courts as was provided by the statute
itself.
[2] There was no error in the ruling of
the court in admitting the evidence embraced
in the second question, or in rejecting the
petitioner's second prayer, which prcbcnted
the same question. This prayer asked the
court to rule that the state tax coinmlsslon
committed an error of law in admitting the
proceedings of the public service commission
in evidence before the state tax commission,
and therefore the order of the state tax com-
mission of August 16, 1916, should be set
aside. This evidence was admissible as a
part of the record of proceedings of the ap-
peal tax court, under section 244 of chapter
841 of the Laws of 1014.
'But, apart from this, there was testimony,
independent of the findings of the public
service commission, as to the values of the
telephone company's property before the tax
commission, from which the values could
have been ascertained. It cannot, therefore,
be held that the findings of the tax commis-
sion in this case were based exclusively upon
the findings of the public service commission,
because It appeared in evidence from the
record of proceedings of the appeal tax court,
or that they (tax commission) adopted the
legal principle ui>on which the public serv-
ice commission acted, for the purpose of fix-
ing the rates, as the basis of the valuation
of the property for purposes' of taxation.
[3] The third and fourth propositions pre-
sented for review are without merit. The
evidence offered under the third was admis-
sible. The objection to the form and validity
of the order presented by the fourth was
properly overruled.
The fifth and sixth questions presented by
the petition are questions of fact, and not of
law, and are not open for review by the
courts. Apart from the plain provision of the
statute controlling this case, it haahe^u held .
Digitized by VjOOQ IC
680
101 ATLANTIC BEPOKTEE
(Md.
by tbls court that tbe valuation of property
for the purposes of taxation Is not a Judicial
function, and tbe Legislature could not law-
fully require this court to act as a final board
of review In the assessment of property;
that It was not the design of similar stat-
utes to require this court to review the find-
ings of fact made by the court below as to
the correctness of the assessment Balti-
more City V. Bonaparte, 93 Md. 156, 48 Atl.
735.
The seventh question relates to "the meth-
od of conserving the record of proceedings
on tbe appeal," and seems to be unimportant.
It was not pressed In tbe argument, nor
urged In the brief of counsel. Tbe record in
this proceeding appears to be regular and In
entire compliance with the provisions of the
statute.
[4] The contention of tbe appellant that It
was not competent for the Legislature to
confer the power upon the state tax commis-
sion to finally decide questions of fact with-
out an appeal, except upon questions of law,
cannot be sustained. No authority has been
cited in support of such a proposition, and
none we believe can be found. Margraft v.
Cunningham, 57 Md. 585; Shellflsh Com'rs v,
Man&ileld, 125 Md. 632, 94 AU. 207.
The remaining objections presented for our
consideration arise upon tlie rulings of the
court, upon the admissibUUy of evidence and
upon its refusal to grant the appellants' first
prayer, in the course of the trial in the Bal-
timore city court. There was no such error
In the rulings of the court in sustaining the
objections and excluding tbe offer of proof
embraced in the first, second, and third bills
of exceptions, disclosed by the record, that
would authorize a reversal In this case. The
questions and offer of proof would have pre-
sented questions of fact, and not of law,
and could not have been considered by the
court, and were therefore properly excluded.
[S] The appellants' first prayer was also
properly rejected. It Is as follows:
If tbe court finds that the state tjix commis-
sion, in its order of August 16, 1016, reducing
the assessment of the property of the Chesa-
peake & Potomac Telephone Company therein
mentioned from $3,214,289 to $2,745,258, acted
upon tbe assumption that the value fixed by the
public service commission for rate-making pur-
poses was the same value which should be fixed
by the state tax commission for the purposes of
taxation, and that the state tax commission, in
making said reduction, simply took the valuation
of the public service commission for the larger
amount of said property, then the court rules
that the state tax commission committed an er-
ror of law in makiug said reduction, and that
said order of August 16, 1916, of the state tax
commission should be set aside.
This prayer was clearly erroneous, because
it required the court to find a question of
fact, when it was sitting for the purpose of
reviewing questions of law only, involved in
the assessment of the appellee's property.
[6] The final determination of assessments
of all property in the counties, cities, and
towns of the state la specially conferred by
tbe statute upon the state tax commission It-
self, and tbe valuation is to be made accord-
ing to Its best Judgment from the evidenco
before it, and the courts are without Jurisdic-
tion to review Its findings- upon questions of
fact In Mayor & City Council of Baltimore
V. Bonaparte, 93 Md. 156, 48 Atl. Ti5, it is
said:
If the valuation of which the dty complains in
this case had been made in the city court by it
jury, instead of by tbe judge sitting without a
jury, it cannot be pretcnue*! that this court could
consider the evidence on which the verdict was
founded, with a view to overnile or vary the re-
sult reached by the jury. If this be so — and it
cannot be questioned— upon what principle can
it be said, because the finding was by a jadfe,
and not by a jury, that we may examine the evi-
dence adduced below and affirm or reverse or
modify the conclusion of fact reached by tbe
judge V
After a careful consideration of this case,
we are of opinion that the court below com-
mitted no reversible error. In Its order of
March 19, 1017, dismissing the petition on
appeal to it from the order of the state tax
commission dated the 16th of August, 191*!;
end for the reasons stated its order will be
affirmed.
Order affirmed, with costs.
(131 Md. im
AMERICAN PIANO CO. v. KNABB et aL
(No. 31.)
(Court of Appeals of Maryland. June 27, 1917.)
1. Corporations ®=>319(7) — Leases— Indi-
vidual Interest of OFFicBn—i''RAUi>— Suf-
ficiency OF Evidence.
In action by lessee against lessors, who were
also ofiicers or the plaintiff ciirporation, evi-
dence that plaintiff was originally assignee of
a lease, that the lease in suit embodied the same
terms, that the rent reserved was the Bsme
amount paid under the prior lease, and that
the lessors subsequently sold the property for «
lump sum and in addition required a portion of
the annual rent to be paid to them, held insufli-
cient to show fraud on the part of the officers.
2. Corporations <S=>319(7)— Lkasb— Ihmvid-
TTAL Intebest or Officers in Lease.
Evidence held insufBcient to show that lease
from ofiicers to corporation reserved excess rent-
al, where the corporation, as assignee of a prior
lease, had paid the same rental.
Appeal from Circuit Court No, 2 of Bal-
timore City, in Equity; Carroll T. Bond.
Judge.
"To be officially reported."
Suit by the American Piano Company
against Ernest J. Knabe, Jr., and others. De-
cree for defendants, and plaintiff appeals.
Affirmed.
Argued before BOTD, C. J., and BRISCOE,
BURKE, THOMAS, PATTISON, UBXER
and CONSTABLE, JJ.
R. E. Preece and S. S. Field, both of Bal-
timore, for appellant Chester F. Morrow
and Alfred S. Niles, both of Baltimore (C!ar-
4t=3For other case* ne nam* topic and KBT-NtlMBER In all Key-Mumberad Digeats and IndaxM
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McL)
AMERICAN PIAKO CO. ▼. KNABE
681
lyle Barton aiH Bartlett, Poe & Claggett, all
of Baltimore, on the brief), for appellees.
URNER, J. The American Piano Company
is the lessee of a lot of ground and mercan-
tile building, sitnated at the southwest comer
of F^k avenue and Fayette street. In the dty
of Baltimore, under a lease dated December
29, 1908, and executed by the appellees, Ernest
J. Enabe, Jr., and William Knabe who were at
that time the owners of the fee In the property.
The lease Is for a term of 21 years, begin-
ning January 1, 1909, and It provides for a
rental of $7,500 per annum to be paid by the
lessee. In addition to taxes, water rent, and
other assessments, and the costs of Insurance
an'd repairs. There Is a recital In the lease
that the demised property was already In the
possession of the lessee as the assignee of a
pre-existing lease from the same reversioners
to the William Knabe & Co. Manufacturing
Company, dated January 2, 1908, and that It
was the desire of the parties to the new lease
that It should be executed in substitution for
the one previously In force. The provisions
of the two leases were the same as to the rent
and other charges to be paid by the lessee,
and also as to the duration of the leasehold
terms they respectively created. At the time
of the execution of the substituted lease to
the American Piano Company, the attpellee
Ernest J. Knabe, Jr., was the president of
that corporation, and he executed the lease,
both In hla oflldal capacity on behalf of the
lessee company and In his Individual Inter-
est as one of the lessors. By a deed bearing
the same date as the new lease the leversion
In the property was conveyed by the lessors
to Mr. Theodore Marburg, In conslderutlon of
$85,000 to be paid by the grantee, and the
agreement on his part to pay to the grantors
annually $1,000 of tibe rent to be received by
him nnVler the lease. The terms of the pur-
chase were not set forth In the deed, only a
nmnlnal consideration being therein stated.
In March, 1915, the lessee corporation filed
tlie pending bill of complaint, alleging that it
bad Just learned of the agreement In refer-
ence to the payment by Mr. Marburg to Ern-
est J. Knabe, Jr., and William Knabe, of a
Ix>rtlon of the rent for which the lease pro-
vldeid, and charging in effect that, with a
▼lew to such agreement, the rent which the
company was required to pay had been fixed
at an excessive amount by the Messrs. Knabe,
while acting in the dual capacities of owners
of the leased property and president and di-
rector, respectively, of the lessee company,
and that In thns secnxlng per8<»ial profit an'd
advantage for themselves at the expense of
the corporation they practiced a fraud upon
Its rights which renders the lease void, at
least to the extent of the rent which they re-
served for their own benefit The answers
emphatically denied the allegations of fraud,
an'd asserted that th« rental, for which the
lease to the American Piano Company makes
provision, is fair and reasonable, and that
the reservation to the lessors of $1,000 of the
annual rent, as part of the consideration for
the sale of the reversion to Mr. Marburg, has
resulted in no prejudice whatever to the les-
see's Interests.
[1] Upon the evidence In the record wb
fully agree with the conclusion of the court
below that the charge of fraud has not been
sustained. There Is no dispute in the tes-
timony as to the salient facts in the ease,
and these are wholly inconsistent with the
theory that the Messrs. Knabe abused their
official relationship with the lessee corxM-
ratlon for their own advantage, or that any
fraud upon it In respect to the lease In ques-
tion was Ln fact committed. The rent which
the company agreed to pay under the sub-
stituted lease of December 28, 1908, was
the same in amount as the rent it had
been paying as the t^iant under a pri-
or lease which antedated its organization.
There Is nothing In the record to show that
the formation of the American Piano C(m-
pany was even thought of when the preoeHlng
lease was executed In January, 1908. The
Messrs. Knabe were at that time not only the
owners Individually of the leased property,
but were also in control of the William
Knabe Co. Manufacturing Company, to whldi
the lease was then made upon terras identical
with those now prevailing. There is no rea-
son to suppose that the persons who thus had
the same concern in the lease with respect
to both the contracting interests had any dis-
position to stipulate for an exorbitant rentaL
[2] According to the weight of the evidence
upon the subject, we think it is fairly well
established that the rent Is not in fact exces-
sive. It has been paid for more than six
yeans by the presMit lessee, without any sug-
gestion that the amount is not reasonable and
pr<H)er. During the greater part of that pe-
riod neither of the Messrs. Knabe has been in
a position to direct the afFatrs of the Ameri-
can Piano Company, or to interfere, if they
had been so inclined, with its right to qnes-
tlon the propriety of their action, when eenrv-
tng as its offloers, in assenting to the terms of
rental of which the company now complains.
If the reversion had not been sold, or the
Messrs. Knabe ha'd continued to sustain the
relation of lessors, we should not be Justified,
upon the evidence, in relieving the lessee of
the payment of any part of the rent on the
ground that It had been unfairly Imposed.
The execution of a new lease direct to the
American Piano Company, in substitution for
the one they held by assignment from the
Knabe Company, was due to the fact that Mr.
Marburg, who was about to purchase the re-
version from the Messrs. Knabe, desired to
take it subject to a lease under which the
tenant then in possession would be obligated
as an original party to the Instrument, and
not as a mere assignee. WhUe the substitut-
ed lease was executed for the leasee company
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682
101 ATI^ANTIC REPOKTBH
(Ml
by Ernest J. Knabe, Jr., as Its prealdenti his
act was formally ratified by Its directors by
a resolution In which the lease was expressly
approved. As tbe owners of the reversion In
the leased property, the Messrs. Knabe held
an Interest which was distinct from that of
the lessee corporation, and which they had
an undoubted right to sell and oonv«y. The
consi'deratlon for such a sale was a matter
with wlilch the lessee was not concerned, so
long as Its own interests were not affected.
It was competent for the reversioners to sell
tbelr estate for any amount upon which they
and the purchaser might agree. The price
which they proposed to Mr. Marburg was
over 1100,000 but it was finally agreed that
he should pay $85,000 outright and $1,000 of
the rent annually. If the sale had been ma'de
for a single sum equal to the aggregate
amoimts of the original and rental payments
Just mentioned, It is probable that no ques-
tion would have been raised as to the pro-
priety of the agreement. The mere fact that
part of the consideration was to be pcdd in
annual instalments, out of the rent received
t>y the grantee, could not possibly prejudice
the lessee company's Interests. Its obliga-
tions and its rights have remained wholly un-
affected.
A review of the testimony in any detail
would serve no useful purpose. The control-
ling facts have been stated, and the evidence
and arguments presented in support of the
theory upon which the suit Is based bav«
been thoroughly considered. There Is, In our
Judgment, no sufficient ground upon which
to invalidate the lease or the agreement un-
der investigation, or to doubt the propriety
of the conduct and motives of any of the par-
ties who participated in the esecutlcm of those
instruments.
Decree affirmed, with oosta.
(131 Md. IM)
HcIiAUGHLIN v. McGBB et aL (No. S2.)
(Court ot Appeals of Maryland. June 27, 1917.)
1. C0T«TS ®=>472(4)— CONFIJOTINO JUBISDIC-
TION— PSOBATK AND ClBCUIT COUBTS.
Code Pub. Civ. Laws, art 93, | 293, giv-
ing orphans' courts concurrent jurisdiction with
circait courts to authorize and direct the sale
of real estate of intestates where the appraised
value does not exceed $2,600, and section 295,
authorizing issuance by such courts of a war-
rant to appraisers, does not give an orphans'
court, having jurisdiction of an estate of a dece-
dent, iuriadictum of the surplus under a mort-
gage foreclosure decree, though the surplus is
less than $2,600, so as to deprive the circuit
court, rendering the decree of foreclosure, of ju-
risdiction to distribute such surplus.
2. COUBTS 9s»472(4)— CoNFUonRO JuBisnio-
TioN— Probate and Cibcuit Ooubtb.
'That a part of the surplus resulted from the
saie of leasehold properties could not affect the
jurisdiction of the circuit court, where it was al-
leged tbnt the deceased mortgagor had no estate,
real or personal, other than tliat covered by the
mortgages, and that there was not enough per-
sonal property to pay the debts and costs of
tulminist ration.
3. JUDOlfEKT «=>688— PKSeoKS CONCLUDEI>-
JUDGMENT AOAINST EXECUTOB.
While absolute judgments at law, obtained
by a creditor of a deceased person against Ilia
executor or administrator, generally amount to
an admission of assets, and could not, prior to
Acts 1916. a 14, be resisted by the executor or
administrator on the ground of a deficiency of
assets, yet, as between the creditors and the
heirs at law in a proceeding to subject the real
estate to the payment of the debt, the judgment
is not conclusive, and the creditor must show a
deficiency of assets.
4. EXECtJTORS AND ADMINISTBATOBS ^=»22^
Presentation of Claims— Effect.
Under Code Pub. Civ. Lows, art 16, f 218,
providing that if a decedent leaves real estate,
but does not leave personal estate sufficient to
pay his debts and costs of administration, a
court of eauity may decree a sale of so much
of the realty as may be necessary to pay his
debts, and section 219, providing that the cer-
tificate of the register of wills to the proof of
such claims or distribution shall be prima fade
evidence of the claims, and sufficient to entitle
them to distribution out of the proceeds of the
real estate, unless excepted to by some interest-
ed person, a judgment creditor of a decedent,
by filing a copy of bis decree agsinst the ex-
ecutor in the orphans' court, was not estopped
from filing his petition in a suit to foreclose a
mortgage on the decedent's land for the payment
of his debt from the surplus.
6. MOBTOAGES «=»568 — POEECLOBUBB — SXTB-
PLUS— Distbibotion— Pabtibs.
Where a judgment creditor of a deceased
mortgagor files his petition in a suit to fore-
close the mortgage for payment of his judgment
from the surplus, the mortgagor's personal rep-
resentative should be made a party, unless it
clearly appears that there was no personalty,
or that there was so little .is not to justify ad-
ministration, or that there was some other valid
reason for not requiring it
6. Equitt ®=>219—DE»njBBER— Defects Not
Apfabent on Face of Biu<.
Where the judgment creditor's petition for
payment of his debt from the surplus asked for
a subpoena against the mortgagor's executor, an
objection to proceeding further until the execu-
tor was regularly brought into court could not
be taken by demurrer, as the petition did not
disclose any defect in this respect
7. Mobtoages *=>568 — Foeeclosube — Sub-
plus— Distbibution—Pabties.
Where the trustee under the mortgage was
also the mortgagor's executor, and was in court
in his individual capacity and as trustee, his
failure to appear as executor, though not for-
mally summoned, could not delay or affect the
proceedings, since, if there was anything for the
executor to do, it was his duty to appear.
8. Appbabance «=924(1)— Effect— Waitkb or
Defects in Pbocesb.
Where interested persons appeared and de-
murred to the judgment creditor's petition, they
made themselves parties, even though there was
some defect in the prayer of the petition, or in
the proceedings seeking to have them brought be-
fore the court
9. Wills «s>7— Lapsed Leoaciss— Poweb to
Bequeath ob Devise.
Under Code Pub. Civ. Laws, art 93, S 326,
providing that a devise or bequest to one dying
before ue testator shall not lapse, but shall
have the same effect to transfer the right, es-
tate, and interest mentioned in the devise or be-
quest as if such devisee or legatee had sur-
vived the testator, a legatee dying before the
testator cannot bequeath what he would have
received under the testator's will, it he had sur-
vived him.
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McLAUaHLIN V. McG£E
683
10. WtU;B 9=>552($ — liAPSKD LBOACIKa —
PEItSORB TaKINO.
Under Code Pub. Civ. Laws, art. G3, t 326,
a legacy to one dying before testator does not
pass as assets to the legatee's executor or ad-
ministrator, but goes directly to his heirs or
next of kin,
11. MOBTOAOBS «=>.'568— FORZCLOSUEE— Stm-
FLUB — DlBTMBCTION— PABTIEfl.
On a judgment creditor's petition for pay-
ment of his judgment from the surplus on fore-
closure of a mortgage, it was not necessary to
make the administrator c. t. a. of a deceased
son of a deceased mortgagor a party ,_ where the
son died before the mortgagor, as hia adminis-
trator had no interest in the fund.
Appeal from Circuit Court of Baltimore
City; H. Arthur Stump, Judge.
From decrees sustaining demurrers and
dismissing the petition of "William D. Mc-
liaughlln against Lawrence J. McGee and
others for the paym«it of an indebtedness
due liim from tbe surplus, McLaughlin ap-
peals. Reversed and remanded.
Argued before BOYD, a J., and BRIS-
COE, BURKJ; THO.MAS, PATaiSON, UR-
NEBt and CONSTABLli^ JJ.
J. Morfit Mullen, of Baltimore, for appel-
lant. J. Royall Tippett of Baltimore (Wil-
liam Golton, of Baltimore, on the brief), for
appelleea
BOID, 0. J. This is an appeal from three
decrees of the lower court sustaining demurs
rers to and dismissing the petition of Wil-
liam D. McLaughlin, seeking to have an in-
debtedness due by Bridget McGee to him
paid out of a surplus remaining in the hands
of a trustee who, under a decree appointing
bim to sell certain real and leasehold prop-
erties which were included In a mortgage
given by Bridget McGee to Lawrence J. Mc-
Gee, trustee, sold them and the sales were
dnly ratified. The decree of sale was passed
under the Public Local Laws of Baltimore
City, and J. Royall Tlroett was appointed
trustee to make the sales. He reported sales
of two leasehold properties included In the
mortgage, amounting to $775, and of four
properties in fee simple, the proceeds of
wblcb amounted to $5,850— the total being
$6,626. The sales were excepted to by Mary
B. (yH&re, a daughter of Bridget McGee,
who bad died in 1913, but the exceptions
-were dismissed and the sales ratified on
October 20, 1916.
The petition of tbe appellant alleges tbflt
he loaned Bridget McGee $4,000 upon a mort-
gage, and on foreclosure of it there was a
deficit of $1,408.77. Lawrence J. McGee, ex-
ecutor of Bridget McGee, was duly sum-
moned, and on March 29, 1915, a decree in
personam was entered against said executor
for said sum, as authorized by section 731a
of article 4 of Public Local Laws. The ap-
I>ellant filed his claim in the orphans' court
of Baltimore City, where It was duly passed ;
but he alleges in his petition that Bridget
McGee bad no estate, real or personal, at
the time of her death, other than that in-
cluded In tbe two mortgages, and that sbe
did not have personal estate sufilclent to pay
her debts and the costs of administration.
She made a will by which she left $700 to
her daughter, Mary Ellen CHare, and the
residue of her estate to her two sons. Rev.
Joseph Francis McGee and Lawrence John
McGee. The latter she also appointed her
executor. The will was admitted to probate
on the 15th of April, 1915, and letters tes-
tamentary were Issued to' Lawrence J. Mc-
Gee the same day. Mary E. O'Hare filed a
caveat to the will on the 17th of April, 1915,
ond Lawrence J. McGee, executor, filed an
answer to It on April 30th, and since that
time nothing has been done In relation to
tbe caveat
Demurrers were filed to the petition of tbe
appellant by Lawrence J. McGee, individual-
ly and as trustee, by J. Royall Tippett, trus-
tee, and by Mary Ellen O'Hare, on the
grounds: (1) That the petition did not state
a cause of action which gave the court Ju-
risdiction ; (2) because of the lack of neces-
sary parties; (3) because tbe court was
without jurisdiction In the premises ; (4) be-
cause the Jurisdiction of tbe matters and
things alleged In the petition is exclusively
within that of the orphans' court, and not
within the circuit court of Baltimore City;
"and (5) for other reasons to be made known
at the bearing. No opinion was filed, and
hence we are not informed as to the reasons
for the action of the lower court.
[1] In the brief of the appellees It is con-
tended that as two of the properties were
leasehold the Jurisdiction of the orphans'
court over them was exclusive, and as the
other properties described In the mortgage
and reported sold, after the payment of the
mortgage debt and expenses, would leave in
the hands of the trustee less than $2,500, the
orphans' court, under article 93, section 293,
of the Code, bad concurrent Jurisdiction with
courts of equity, and its JurisdictldD should
not be disturbed. But the language of that
statute does not Justify tbe contention made.
In tbe first place, it only applies to the real
estate of Intestates, and hence is not ap-
plicable to this case; but beyond that tbe
object of the statute Is manifest It was
intended to give tbe orphans' courts Jurisdic-
tion of tbe real estate of Intestates to tbe
amount of $2,500, but not to confer general
equity powers on tbem beyond what was nec-
essary for the sales specifically authorized.
In order to give orphans' courts Jurisdiction
in tbe cases referred to In that section, the
real estate must be appraised, and in section
295 provision is made for the appointment
of the appraisers. The statute does not give
them Jurisdiction in a proceeding such as
this, and the fact that tbe surplus is less
than $2,500 can make no possible difference.
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101 ATUVNTIC REPOUTEE
^d.
[2] Thai the mere fact that $775 of the
proceeUs of sales were from leasehold prop-
erties could not afTect the Jurisdiction of the
circuit court, which already had Jurisdiction
oyer the fund in the hands of the trustee.
The petition alleges that there is not enough
personal property to pay the debts and costs
of administration — Indeed, It alleges that
Mrs. Mc(xee had no estate, real or personal,
other than the property covered by the two
mortgages. If the whole of the ?775 was
applied, it would not be much more than half
of the petitioner's claim. There could be no
valid reason for subjecting the fund, or such
part of it as might be held to be personalty,
to the commissions of the executor and other
expenses of administration, and there is no
statute or decision in this state which re-
quires that to be done in a case of this iiind.
The circuit court had jurisdiction over the
proceedings to foreclose the mortgage, and
it must not only make distribution to the
mortgage debt and expenses, but It must see
that the excess is properly disposed of. If,
then, a creditor goes into court, and makes
such allegations as are necessary to suiitaln
a creditors' bill, and sustains them by the
necessary proof, there could be no reason
for sending blm to the orphans' court, es-
I>eclally if there are no funds there.
[3, 4] There is no ground for contending,
as the appellees do, that, because the appel-
lant filed a copy of his decree against the ex-
ecutor of the estate of Bridget McGee in the
orphans' court, be is estopped from there-
after going into a court of equity. It may
be well to say in passing that, although ab-
solute Judgments at law obtained by a cred-
itor of a deceased . person against hia ex-
ecutor or administrator generally amount to
an admission of assets, and could not, prior
to chapter 14 of Acts of 1916, be resisted
by him on the ground of a deficiency of as-
sets, yet as between the creditors and the
heirs at law, in a proceeding to subject the
real estate to the payment of his debt, such
a judgment was not conclusive, and a cred-
itor must show a deficiency of assets. Gal-
ther V. Welch, 3 Gill & J. 259; Boteler ▼.
BeaU, 7 GUI & 3. 389, 397. Creditors of de-
ceased persons have the right to have their
claims passed in the orphans' court, but that
does not prevent them from proceeding In a
court of equity, by way of a creditors* bill
In case of an Insufficiency of assets. Section
218 of article 16 in terms provides that if a
{wrson leaves real estate, but does not leave
personal estate sufficient to pay his debts
and costs of administration, a court of equity
may decree a sale of so mudi thereof as may
be necessary to pay Us debts. Moreover,
section 219 of that article expressly provides
that the certificate of the register of wills
to the proof of such claims or distribution
thereto in the orphans' court shall be prima
facie evidence of the claims, and sufficient to
entitle them to distribution out of the pro-
ceeds of the real estate of the deceased debt-
or, unless excepted to by some person inter-
ested in the estate. There Is, therefore, not
only no estoppel, but the statute expressly
provides for filing the certificate of the regis-
ter of wills, which is made prima facie evi-
dence.
The case of MacglU v. Hyatt, 80 Md. 2S3,
30 Atl. 710, relied on by the appellees, was
a wholly different case. There the bill al-
leged that the debtor had real and personal
estate of great value, and it did not allege
that the personal estate was insufficient to
pay the debts. It was said by the court tliat
it was not shown that sufficient personal
property to pay all the debts had not come
into the hands of the executor, and, if it hail,
the remedy of the creditor was asninst tlie
executor's bond. Nor does the case of Wrl?ht
V. Williams. 93 Md. 66. 48 Atl. 397, also re-
lied on by the appellees, in any way prevent
the appellant from coming into a court of
equity. Of course, when two courts have
concurrent Jurisdiction, the one first takln;
Jurisdiction retains it, but there are no such
conditions here.
We did not suppose, until we heard this
case, that the right of a creditor to proceed
against a surplus In the hands of a trustee.
In a mortgage foreclosure proceeding, would
now be questioned in this state, if the neces-
sary allegations are made, and the necessary
parties are before the court The question Is
so thoroughly settled that we will only re-
fer to some of the authorities, without deem-
ing it necessary to quote from tbem. MIN
ler's Equity Proc. 458, S 377; Penwlck v.
Laughlin, 1 Bland, 474; Galther et al. v.
Welch, 3 GUI & 3. 259, 263; Griffith v. Parks, 32
Md. 1, and many other cases, might be cited.
In Griffith v. Parks, Judge Alvey, on page 5
of 32 Md., in showing that it was not neces-
sary to proceed by original bill, but that a
petition was sufficient in the case before him,
relied on the practice in cases of this kind, as
established by Fenwick v. Laughlin, and
Galther v. Welch.
[S ] It is also objected that there is a lack of
necessary parties — ^the appellees claiming that
the executor of Mrs. McGee was not made a
party. The petition expressly prayed for a
writ of subpoena against him and that the
parties to the case be required to show cause
why the relief sought should not be granted.
There seems to be some confusion as to
whether the personal representative shonld
be made a party in such a proceeding as
this, but in David v. Grahame, 2 Har. & 6.
94, Tyler v. Bowie, 4 Har. dc J. 333, and Bal-
timore v. Chase, 2 Gill & 3. on page 381, oar
predecessors held that in a proceeding for
the sale of real estate of a person dying
without leaving personal property sufficient
to pay his debts it was necessary to make
the executor or administrator a party. There
were original bills in tliose cases to sell the
real estate, under what is now section 21S of
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Mclaughlin v. mcqee
6S5
article 16 of the Code, but the reasoning of
Chief Judge Buchanan In David v. Grahame
would apply with equal force to a proceed-
ing by petition of this kind. In MacglU v.
Hyatt, on page 259 of 80 Md., on page 712
of 30 Atl., where one ground of the deci-
sion was that the failure to make the person-
al representative a party to the bill made
it demurrable, It was said that "It Is con-
ceded this is generally so where, aa here, a
creditors' bill Is filed for the sale of a deceas-
ed debtor's real and personal estate," and
Judge Fowler distinguished Hammond v.
Hammond, 2 Bland, 347, saying that In that
case It appeared that the debtor left no per-
sonal property whatever, or so little that no
one bad taken out letters of administration,
and the court declined to sanction the rule
of practice sought to be established by Tes-
sier T. Wyse, 3 Bland, S7. It was held in
MacglU V. Hyatt that the personal repre-
sentative was a proper party; but, as we
bave seen, personalty as well as real estate
was involved there.
In Jones t. Jones, 1 Bland, 443, 18 Am.
Dec 327, cited by the appellees, the fund was
in the sheriff's hands arising from an execu-
tion sale of real estate; but It was held to
have been converted into personalty, and
hence the administrator was a necessary
party, which differs from a sale of real es-
tate under a mortgage, as decided in Fenwick
V. Laughlln, where the surplus was held to
foe real estate, and that case has since been
followed. In this case, where some leasehold
and some real estate were sold, there were
both personalty and realty in the surplus,
and hence it would seem to come within Mac-
glU y. Hyatt. But, independent of that, we
think the correct practice requires the per-
sonal representative to be made a party, un-
less it clearly appears that there was no per-
sonalty, or there was so Uttle as not to Justi-
fy taking out letters of administration, or
there was some such valid reason tor not re-
quiring it.
Applying the rule, then, to this case, what
is the result? Lawrence J. McGee is the
executor of the will, and the demurrer filed
by him begins, "lyawrence J. McGee, indi-
vidually, and Lawrence J. McGee, trustee, de-
murs to the amended petition," etc. It is
signed, "J. RoyaU Tlppett, Attorney for Law-
rence J. McGee, Individually, and Lawrence
J. McGee, Blxecutor." While it is irregularly
drawn, It may well be presumed that the de-
murrer was intended to have been filed by him
as executor, as his attorney so signed it, and
as trustee he has no interest in the surplus.
The only possible Interest he could have in
that capacity would be to see that his mort-
gage was allowed in full; but his right to
have that done was not questioned, and the
petition only seeks to affect the surplus after
tbe mortgage is paid.
[S-i] As the question of the correct prac-
tice was raised, we have perhaps gone more
at length into that than the exigencies of
this case demanded. We are simply passing
on demurrers, and, as we have seen, the peti-
tion expressly asks for a subpoena against
Lawrence J. McGee, as executor. How, then,
can the demurrers reach the question? There
Is nothing In the petition to show that Law-
rence J. McGee, executor, was not made a
party — on the contrary, it shows that he was.
If he was not summoned as such, or did net
voluntarily: appear, if objection to the peti-
tioner's proceeding further untU the executor
is regularly brought into court is desired to
be made, it would bave to be done In some
way other than by demurrer to tbe petition,
as that does not disclose any defect in that
respect. But, to avoid any misapprehension
of our position on the subject, we will add
that, as this executor Is undoubtedly in court
in his individual capacity and also as trus-
tee, his faUure to aK>ear as executor, even
if he has not been formally summoned as
such, cannot delay or affect the proceedings.
If there Is anything for the executor to do,
especially as to whether the personal estate
is sufficient to pay the debts of the deceased,
it Is his duty to appear. If he has not already
done so, as he has knowledge of the proceed.
Ings. He, J. Royall Tlppett, trustee, and
Mary Ellen O'Hare, bave all appeared and
demurred, and they have made themselves
parties, even if there was any defect in the
prayer of the petition or the proceedings
seeking to have them brought before tbe
court.
It is also objected that the personal rep-
resentative of Rev. Joseph Francis McGee
was not made a party; but, if the petition
correctly states the facts, as we must as-
sume. In considering the demurrers. It does,
he died before his mother. If bis mother's
will should be set aside, in the caveat pro-
ceeding, then he did not Inherit anything,
and, if the will is sustained, the devise and
bequest to him do not lapse, but under section
326 of article 93 they "shall have the same
effect and (deration In law to transfer the
right, estate and interest In the property
mentioned in such devise or bequest, as it
such devisee or legatee had survived the tes-
tator."
[9] In the leading case of Glenn v. Belt,
7 GUI & J. 362, that provision was construed,
and questions were settled then that have
since been recognized as the established law
of this state. It was distinctly held that the
power of devising was not enlarged or affect-
ed by that statute — that a legatee who died
before the testator could not bequeath what
he would have received under the testator's
will, if he had survived him. The reason for
that Is that a testator cannot devise or be-
queath What he has no interest in at the
time of his death, when his will takes effect.
Judge Archer began his opinion in that case
by saying:
"Madam Volnmbrum's will could only operate
to pass that which by law was the subject of
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686
101 ATLANTIC REPORTER
CMd.
a deriae or bejiuest. The expectancy of a ben-
efit to be derived from the will of Clery was
bat a naked poesibilitr, and could not, under
any authority cited, be the aubject of a testa-
ment. Indeed, it haa been conceded that suc^h
la the law, unless some alteration has been
effected in it, by Acta 1810, c 34."
That act Is the original one upon which
section 326 Is founded. Madam Yolumbrum
was a legatee under Mr. Clary's will, and
she died befbre he did. The court In effect
said that she had nothing to will, when she
died, as coming through Clery's will.
[10] The next question then was. Who took
the legacy which was saved from lapsing by
the act? It was held that it went directly
to those who would have been entitled to It,
If the legatee bad survived the testator —
that it did not pass as assets to the execu-
tor or administrator of the deceased lega-
tee, but the transfer was to persons in esse,
entitled to the distribution of the legatee's
estate. It is not liable for the legatee's debts,
and goes directly to the next of Icln, and
not through the medium of an executor or
administrator of a deceased legatee, if per-
sonalty, and, If it is real estate, it goes dl-
rectly to the heirs of the devisee, subject to
the dower of a husband or wife, as decided
in Vogel V. Tumt, 110 Md. 192, 72 Atl. 661.
See, also, Wallace v. Du Bols, 66 Md. 163, 4
Atl. 402 ; Halsey v. Convention of Prot Epls.
Ch„ 75 Md. 275, 23 Atl. 781; Garrison v.
Hill, 81 Md. 200, 31 Atl. 794.
[11] So, although the petition refers to the
will of Rev. Jos. F. McOee as he died before
his mother, he could not have devised or be-
queathed any property left In her will to
him, but It went to his heirs or next of kin,
as the case may be. If his will had taken
effect on the property sold under the mort-
gage, which sales produced the surplus in
controversy, then the proceeding would have
been defective for not filing a copy of his
will; but, as he received nothing under the
will of his mother which he could will. It
was not necessary to file his will, and as his
administrator c. t a. does not take any of
this fund, and has no interest in any of the
properties, as far as appears In the record,
there is no necessity for making his adminis-
trator c. t a. a party. There Is nothing to
show that any one but Mrs. O'Hare and Law-
rence J. McGee have any interest in what
would have gone to the Rev. Jos. F. McGee,
if he had survived his mother, and, as they
are parties, are actually In court demurring
to the petition, there is nothing In the peti-
tion to show a lack of necessary parties. If
any other person has an Interest, that can
be shown in the answer; but the petition
does not disclose such Interest, and hence It Is
not demurrable on that account.
The demurrers should have been overruled,
and the parties required to answer. It fol-
lows that the decrees sustaining the demur-
rers and dismissing the petition must be re-
versed.
Decrees reversed, and case remanded fot
further proceedings; the costs In this court
to be paid by the appellees, and those below to
abide the final result
(131 Md. 176)
OWEN et aL, County Com'rs, t. WILMER
(No. 88.)
(Court of Appeals of Maryland. June 27, 1917.)
1. Appeai. and Ebrob 9=932— Jcdgments Ap-
peai.abi.e--jddoment on appeai. fbok jus-
TICE OF THE Peace.
No appeal lies to the Court of Appeals from
a judgment recovered on an appeal from a jus-
tice of the peace, if the justice renderine the
judgment and the circuit court affirming it had
juriadiction.
2. Justices of the Peace «=»57(1)— DisquaIt
iFicATioN— Constitutional Provisions.
Const, art. 4, § 7, providing that no judge
shall sit in any case wherein he may be inter-
ested, or where either of the partiea may be con-
nected with him by affinity or consanguinity
within prescribed degrees, or where he shall have
been of counsel in the case, refers only to judges
of courts of record or courts of law, and not to
a Justice of the peace, who is not considered a
court of law or of record.
3. Justices of thb Peace «s»57(1)— Disqual-
ification— Intekest as Stockholder.
There being no constitutional or statutory
provision disqualifying a justice of the peace
from entertaining an action by a corporation
in which he is a atockholder, no such diaquali-
fication exists.
4. District and Pbosecutinq Attorneys «=»
3(5)— Assistants— Oompenbation— Author-
ity of Court.
Under Code Pub. Civ. Laws, art 26, { 7.
authorizing circuit courts to appoint assistant
counsel for the state to aid in tne trial of crim-
inal or other state cases when the public inter-
est requires it, and section 8, providing that
county commissioners shall levjr and pay fur
the services so rendered, providing that the
amount shall not exceed $100, the circuit court
has authority to fix and define the compensation
nf counsel so appointed within the statutory lim-
its.
5. Judges 4=»49(Z) — DisQUAUFicATian —
Prior Decision bt Judge.
Judges of a circuit court, appointing assist-
ant counsel for the state in a criminal proceed-
ing and certifying to the county commissioners
that the fee claimed Imt such counsel is reasona-
ble and should be paid, are not thereby disquali-
fied, under Const art 4, { 7, to hear an appeal
from a justice of the peace in an action asainst
the county commissioners for the fee so allow-
ed, as the interest which disqualifies under the
constitutional provision mentioned is an inter-
est whereby the judge will gain or lose some-
thing the value of which may be estimated, and
a judge is not disqualified merely because he
has expressed his opinion aa to the case.
6. Justices of the Peace $=9l67(2)— Appeai,
—Change of Venue.
The constitutional provision pertaining to
the removal of causes gives circuit courts no
power to remove causes pending before them on
appeal from a justice of the peace.
Appeal from Circuit Court, Charles Coun-
ty; John P. Briscoe, B. Harris Camalier,
and Fillmore Beall, Judges.
Action by L. Allison Wllmer, to the use of
4=9For other cases see same to^lc and KEY-NUMBER In all Key-Numbered Digests aad lodexea
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iifd.)
OWEN V. WILMBB
687
tbe Eastern Sbore Trust Company, against
John W. Owen and others, Ck>unty Commis-
sioners for Charles County. Judgment for
plalntlfF, and defendants appeal. Appeal dis-
missed.
Argued before BOYD, C. J., and BURKE,
THOJIAS, PATnSON, URNER, STOCK-
BRIDGE, and CONSTABLE, JJ.
Adrian Posey and F. Stone Posey, both of-
La Plata, for appellants. L. A. Wilmer, of
Leonardtown, and W. Mitchell Digges, of
La Plata, for appellee.
CONSTABLE, J. [1] This appeal was
taken from a Judgment recovered upoa an
api>eal to a circuit court, from a judgment
rendered by a Justice of the peace. The
only question Inrolved before us, of course,
is a Jurisdictional one, since it is an abso-
lately settled question in this state, that no
appeal lies to this court from a Judgment re-
covered on an appeal from a Justice of the
peace, if the Justice rendering the Judgment,
and the circuit court in afflmiing it, bad
Jurisdiction of the case. Cole v. Ilynes, 46
Md. 181; Burrell v. Lamm, 67 Md. 580. 11
Atl. 56. The circuit court for Charles coun-
ty, acting under the authority conferred by
article 26, f 7, appointed the legal i)lain-
tlff assistant counsel for tbe state in a crim-
inal proceeding. At tbe conclusion of tbe
case tbe Judges certified to the county com-
missioners that the plaintitt had been so
appointed by them, and had rendered the
serrices for which he claimed compensation,
and further certified that tbe fee claimed, of
$100, was a reasonable one, and should be
paid. Tbe plaintift thereupon assigned the
claim tO| the equitable plaintlft, which upon
the connty commissioners refusing to pay.
In full, brought suit for the balance before
a justice of tbe peace. Judgment was glren
for the plaintiff, and the defendant appealed
to the circuit court
[2] Two pleas were filed by tbe appellant,
seeking to raise tbe question of Jurisdiction ;
bat demurrers Interposed to them were sus-
tained by the court 1^ the first It was al-
leged that the Justice of the peace by whom
tbe Judgment was rendered was a stock-
bolder of tbe appellee corporation, and was
therefore disqualified to hear tbe case. Tbe
contention is tbat tbe disqualification was
bronaJit about through the provision of sec-
tion 7 article 4 of the Constitution, which
reads as follows:
"No judge shall sit in any 'case wherein he
may be interested, or where either of the parties
may be connected with him by affinity or consan-
quinit^ within such degrees as now are, or may
hereafter be prescribed by law, or where he
shall have been of counsel in the case."
We cannot accede to this proposition. Tbe
dtsquallflcatlon provided for by tbe Constitu-
tion refers only to Judges of courts of rec-
ord or courts of law. The oflice of a Justice
of tbe peace has never t>een considered a
court of law or a court of record. In Welkel
y. Cate, 68 Md. 105, this court said:
'At common law, justices of the peace were
merely conservators or keepers of the peace, and
although tbe Legislature in this state bas con-
ferred on them a limited jurisdiction in civil
and criminal cases, the office itself has never
been coosidered a court of law. This, we think,
is apparent from Constitution, art 4, § 1, by
which it plainly appears, that a court of law,
within the meaning of tbe Constitution, is a
court of record."
[3] There being no constitutional provision
nor statute touching tbe disqualttlcation of a
Justice of tbe peace on tbe grounds here al-
leged, it follows tbat the Justice In this case
bad jurisdiction to bear tbe case.
[4] A very similar case, on the facts. Is
that of Worcester County v. Melvin, 89 Md.
37. 42 AtL 910. in which Chief Judge Mc-
Sbefry, In delivering the opinion of tbe
court, announced, very instruotively, tbe
meaning and effect of sections 7 and 8 of arti-
cle 26 of tbe Code, taken in connection with
section 268 of article 24 of tbe Local Code
applicable to Worcester county, by which
it was provided that no compensation should
be allowed an attorney rendering services
under the terms of sections 7 and 8. art.
26, of tbe General Code, except upon tbe
order of tbe court certifying tbe nature of
the services and tbe amount to be paid for
such services. It was held that this placed
upon tbe commissioners tbe Imperative duty
of levying for and paying the amount so
certified. Although there is no statute ap-
plicable to Charles county similar to that in
force In Worcester county, forbidding tbe
compensation to be paid unless tbe court
fixes tbe amount, yet the reasoning used In
tbe case cited is equally pertinent to this
case as to that. The court said :
"This legislation gives to the court ample au-
thority not only to assign counsel to defend an
nccusefl, but to fix and define, not exceeding a
designated moximom sum, the amount of com-
picnsation to be paid by the county commis-
sioners for such services. The General Assem-
bly has seen Bt to repose in the courts this au-
thority. It is an authority Immediately connect-
ed with the administration of instice and could
not well be lodged anywhere else without seri-
ously interfering with the very object the legis-
lation was designed to accomplish. If to the
county comnriEsioners were committed the power
to determine tbe amount of compensation to be
paid in such cases, or if, as is contended for in
this proceeding, they were clothed with a discre-
tion to allow or disallow altogether, the sum
claimed, it would embarrass the courts most
seriously In the trial of criminal causes, because
courts would then be reluctant, if not wholly un-
willing, to impose upon a member of the bar the
labor and responsibility of defending an accus-
ed, inasmuch as there would then be no certain-
ty that tbe labor when performed, though per-
formed in obedience to tne court's instructions,
would be adequately paid for, or even' paid for
at all."-
Although In several of tbe counties there
Is no prohibition upon tbe commissioners,
like tbat in Worcester county, yet tbe prac-
tice prevails In many of them of having the
courts certify to the appointment services,
and amount to he paid, thus following tbe
interpretation placed upon sections 7 and
8 of article 26 by this court
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101 ATIiANTIC BEPORTBB
vWd.
[S] The question, however, raised in the
present case under the second plea, is wheth-
er, under the Constitution, the action of
the court in certifying, as above stated, re-
sulted in their disqualification to sit in the
case. And this, of course, must be deter-
mined' upon whether their action is to be
held as bringing them within the class em-
braced within the words "In any case where-
in he may be Interested." The contention
'.nade by the appellant is that the dlsquallfl-
catlon Is caused by a sentimental, as well
as by a pecuniary. Interest; In other words,
by pride of opinion. DIsquallflcntlon by
O>nstltution8 and statutes is Imposed, not
only through the fear that Judges might act
dishonestly or with partiality, but in order
that courts might be free from all suspicion
of partiallly, and thus promote the feeling
that all litigants may feel confldent, as they
have a right to so feel, that their interests
are In the hands of fearless, fair, and im-
partial Judges. In some of the states prej-
udice and bias have been made, by statute,
the basis for disqualification ; but in those
Jurisdictions the bias and prejudice refer, not
to the subject-matter of the litigation, but
only to the mental attitude of the Judge
towards the parties. In this case the Judges,
following their practice, merely expressed
for the guidance of the commissioners that,
in their opinion, the charge was reasonable
and proper and should be allowed. While
this was an expression of their opinion on
both the law and fact, yet, In our opinion.
It could not operate so as to amount to a
disqualification because of "interest" to sit
In the case that afterwards arose.
^e Constitution or statutes of most. If
not all, of the different states contain a gen-
eral provision to the effect that a Judge shall
not act as such In a cause In which he Is
Interested; but the overwhelming weight of
authority in construing the meaning that Is
to be attached to the provision Is that, to
bring about a disqualification, the interest
must be a pecuniary or a personal right or
privilege In some way dependent upon the
result of the case, as oontradlstlngnlstaed
from every bias, partiality, or prejudice
which the Judge may entertain with refers
ence to the case. Of course, the cardinal
rule in construing all written Instruments,
where there Is any doubt apparent as to the
meaning of the language osed. Is to search
for the intention of the makers, and, when
that Is discovered, that Intention must gov-
ern. Beading the language of section 7 of
article 4, it is found that It enumerates
the only Instances In which an interest, not
necessarily pecuniary, will dlaquall^ a
Judge. These are where he has been of
connsd In the case, or where elth'er of the
parties may be connected with him by affinity
or consanguinity within a certain degree.
By naming those special cases where the
Judge's feelings may be Interested, thougji
he may not gain or lose by the event of the
suit, the law doubtless Intended to limit
all other cases of Interest to such as should
be of a pecuniary nature. The Judge must,
by the Judgment in the case, gain or lose
something, the value of which may be esti-
mated; and we cannot Ingraft urion our
Constitution that a Judge is disqunllflpd be-
cause he has expressed his opinion as to
the case. Mclnnes v. Wallace (Tex. Civ.
App.) 44 S. W. 537; King & Davidson v.
Sapp, 66 Tex. 519, 2 S. W. 673; Ex parte
State Bar Association, 92 Ala. 113, 8 South.
7eS; Foreman v. Mnrlanna, 43 Ark. 324;
Sauls V. Freeman, 24 Fla. 209, 4 South. 525.
12 Am. St. Rep. 190; Foreman v. Hun-
ter, 59 Iowa, 550, 13 N. W. 659; SJoberg
V. Nordin, 26 Minn. 501, 5 N. W. 677;
Conklin v. Squire, 4 Ohio Dec. 493; Ilnn-
gerford v. Cushion, 2 Wis. 397 ; Inhabitants
of Northampton v. Smith, 11 Mete. (Mass.)
395.
[8] The appellants, after the overnillng of
their demurrers, filed a suggestion for the
removal of the case to some other court for
trial. It is settled that the provisions of the
Constitution pertaining to the removal of
causes gave the circuit courts no power to
remove causes pending before them «i ap-
peal. Hoshall V. Hoffacker, 11 Md. 362;
CV)oke V. Cooke, 41 Md. 368; Geekle v. Har-
bourd, 52 Md. 460. Being of the opinion,
therefore, that neither the Justice of the
peace nor the Judges were disqualified from
sitting In the case, It follows that they had
Jurisdiction, and this appeal must be dis-
missed.
Aiqpieal dismissed; the appellants to pay
the costs.
cm Md. I82>
SCDLENS V. POB et al. POE et al. v.
SCniiENS. VILLAGE OP LYONS
et al. V. SAME. (Nos. 39-41.)
(Court of Appeals of Maryland. June 27, 1017.)
1. Inbusance «=»679 — Reinsurance Con-
tbact^-conbtbuction.
The U. Co. and the M. Co. entered into a
contract for a five-year period, whereby the if.
Co. was to participate in one-third of the bnd-
ness of the U. Co., share one-third of the profits,
and bear one-third expenses. The contract pro-
vided for an account to be rendered by the U.
Co. to the M. Co. within two months after the
end of each year. The account was to be eiam-
Ined within one month after its receipt, and the
amount due from either party paid immediately.
There was also a provision for an account stat-
ed at the close of the fifth or last year. B"fi
that accounts as between the companies conW
be stated upon an annual basis, which would in
effect be final, and that such accounts were not
bound to remain open until the end of the fire-
year period.
2. Rbcbivebb «=>189— Action bt BECEiVBft-
ExPENSSS or Litigation.
The litigation between the receivers of tie
U. Co. and the M. Co. involved the right of the
receivers to recover under a contract for an en-
tire period of five years. So far as recovery
AssFor otlMr oaaaa m« muim topic and KBY-NUUBER la all K«y-Number«d DIsests and leduu
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SCHLENS y. POE
689
was concerned, it wu necessary to sustain tiie
contract as a whole. One S. wu assignee of all
rights under the first two years of the contract,
and was interested in sustaining the entire con-
tract. Held, that the costs and expenses incur-
red in prosecuting the litigation against the M,
Co. to sustain the entire contract should he
borne b; S. in proportion to the amount of hia
recovery.
Appeals from Circuit Coart of Baltimore
City; Chas. W. Heolsler, Judge.
Conaolldated acrtlons by Gustav A. Schlena
against Edwin W. Poe and others, receivers,
and by Edwin W. Poe and others, receivers,
and the Village of Lyons and others, against
Gustav A. Schlens. From a decree of the
Circuit Court, three appeals were taken here.
Affirmed in part, and reversed In part, and
remanded.
Argued before BOYD, 0. J., and BRIS-
COE, BURKB, THOMAS, PATTISON, UR-
Nim, and STOOKBRIDGE, 33.
Alfred S. Niles, of Baltimore (Carlyle Bar-
ton and Chester F. Morrow, both of Balti-
more, and Morris Wolf, of Philadelphia, Pa.,
on the brief), for Schlens. Edgar Allan Poe
and J. Kemp Bartlett, both of Baltlmoie, for
receivers of United Surety Co. and Village of
L^ons and others.
STOCEBRIDGE, J. The present appeal
brings to the attention of tliis court for the
fifth time the contract entered into some 12
years ago between the United Surety Com-
pany of the City of Baltimore and the Mu-
nich Insurance Company. The previous cas-
es will be found reported, respectively, in
Munich Reinsurance Co. v. United Surety
Co., 113 Md. 200, 77 AtL CTft, Receivers of
United Surety Co. v. Munich Reinsurance
Co., 121 Md. 479, 88 AtL 271, Poe v. Munich
Reinsurance Ca, 126 Md. 620, 95 Atl. 164,
and Schlens ▼. Poe, 128 Md. 362, 97 AtL 649.
The main facts In this litigation are folly
set out In 121 Md. 479, 88 Atl. 271, and 128
Md. 352, 97 Atl. 649, and It would serve no
useful purpose to repeat them again. It
should be stated In limine that no new ques-
tion of law is now presented, or one which
has not already been considered and passed
upon. The only questions upon wbl«di any
argument Is possible arise out of the report
of the auditor, made after and for the pur-
pose of carrying Into effect the decision of
tbis court In 128 Md. 362, 97 AtL 649.
The real points now attempted to be call-
ed In question are three In number, and are
succinctly stated In the brief filed on behalf
of Mr. Schlens as follows:
"(1) What portion of the amount received by
the receivers September 30, 1913, in payment of
their daim against the Munich Reinsurance
Company, represented the interest of Mr. Schlens
therein? (2) What amount of the ezjienses in-
curred in recovering this amount is properly
chargeable to Mr. Schlens? (3) Is the Lynch
item a proper credit to be allowed the receiv-
ers?"
Upon the first of these propositions there
Is no difficulty whatever. The principles
101 A.-
which guided the auditor in his action were
those expressly announced by this court,
speaking through Judge Umer, In 121 Md.
479, 88 AtL 271. Much time and effort was
given by the counsel representing the receiv-
ers and the Bank of Lyons in an endeavor
to Induce this court to alter or modify the
conclusion heretofore reached, and on a care-
ful review of the entire litigation no suffi-
cient reason appears for so doing.
[1] The theory upon which the counsel for
the receivers apparently proceed Is that no
account as between the two companies could
be stated upon an annual basis which would
In effect be final, but that such accounts were
bound to remain open until the end of the
entire five years of the contract. The com-
plete answer to this is to be found in the
eighth and ninth articles of the contract,
which provided for the statement of accoimts
within two months after the close of eacO
year of the business of the preceding year,
and the payment by one company or the oth-
er of the balance as shown to be due by such
accounts. The account to be stated at the
close of the fifth or last year would inevita-
bly, under the provisions of the contract,
differ In certain respects from the annual
accounts of the preceding year, but that was
provided for In the agreement, as was dis<
tinctly recognized in the decision In 121 Md.
479, 88 Aa 271.
[2] The Indebtedness of the Munich Com-
pany to the United Surety Company for the
years 1906 and 1907 was an Issue directly
involved and determined In 121 Md. 479,
88 AU. 271, and that Mr. Schlens, as as-
signee of the Interest of the Messrs. Knabe,
was entitled thereto for the two years named,
was fully passed upon In 128 Md. 362, 97 AtL
649. This is, of course, subject to any prop-
er deduction for payments made for or on
account of the Interest of the Messrs. Knabe,
acquired under thdr contract vrith the
United Surety Company, and also a proper
proportion of the expenses incurred In recov-
ering the Indebtedness of the Mimlcb Cbm-
pany.
The last requires the determination of
the second question above stated. Two theo-
ries have been suggested for the ascertain-
ment of this proposition — one, that Mr.
Schlens should share In the expenses In pro-
portion to his recovery; the other, that Mr.
Schlens should be required to pay but two-
fifths of the amount of those expenses, by
reason of the fact that his interest related
only to two years out of the five for which
the contract was to run. Neither of these
will result in exact justice to all the parties
interested, but an approximation of It Is all
that can be made.
The litigation between the receivers of the
United Company and the Munich Company
Involved the right of the receivers to recover
for an entire period of five years. So far as
the recovery was concerned. It was indivis-
ible; that Is to say, the contract could not
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101 ATLA^ITIC REPOBTEB
Old.
have been sustained as to two years and held
void as to tbe other three years, and while
Mr. Schlens was entitled to a recovery only
for two years of the time of the contract,
he was nevertheless vitally Interested in sus-
taining the entire contract, as otherwise
there would have been nothing to come to
him as the result of the litigation. It would
be inequitable, therefore, to hold that Mr,
Schlens was liable only for two-fifths of the
cost and expenses Incurred In the prosecution
of the litigation against the Munich Com-
pany. In the brief filed by Mr. Schlens in
the case reported in 128 Md. 352, 97 Atl. 649,
it was said that he, through his counsel, was
willing to agree "to share the expenses in
proportion to his recovery." That proffer is
now sought to be withdrawn, and it probably
had no binding or legal effect upon Mr.
Schlens. It is also to be noted that the ex-
pression in the prior case proposing the stutr-
ing of the expense is not altogether free from
ambiguity.
What we have to deal with upon this ques-
tion is not so much a question of legal right,
as one of doing Justice and equity as be-
tween the parties, and in the view of this
court, unless there are some special circum-
stances which should control the court, the
costs and expenses should equitably be borne
by Mr. Schlens and the receivers, in the
same proportion that the amount of the In-
terest accruing to Mr. Schlens bears to the
amount which will pass to the receivers of
the total recovery from the Munich Com.
pany. The costs and expenses were of two
characters: (1) The counsel fees and costs
incurred in the contention to sustain the en-
tire contract; and (2) the counsel fees and
fees paid the Audit Company of New York
and the American Audit Company, for audit-
ing the accounts for the five years.
It is urged on behalf of Mr. Schlens that
this second element of exi)ense stands in a
somewhat different position from the first.
The endeavor to separate this portion of the
expense cannot be successfully maintained,
In view of the fact that the employment of
the auditing companies was agreed to by the
parties on the 19th of November, 1910, by
which agreement the auditing companies were
to state accounts in annual periods, not for
-certain spedfled or designated years less
than the five years embraced in the original
<x>ntract between the United Surety Company
nud the Munich Company. Mr. Schlens was
not a party to this agreement. That ag^ree-
ment was between the representatives of the
two insurance companies; but Mr. Schlens
now depends for the ascertainment of the
amount of his claim upon the accounts so
stated, and it would l>e inequitable for him
to claim an advantage resulting from the
worlc of the auditing companies, and be re-
lieved from the burden thereby entailed.
This court feels constrained to hold, there-
fore, that Mr. Schlens should share in the
expenses connected with the Munich claim
in proportion to the amount of his recovery.
In wliat is known as the Lynch claim, the
court is asked to treat as a set-off, or to
charge back against Mr. Schlens, the sum of
$1,000, being the proceeds of certain shares
of stock in an apartment house company in
Washington, which stock bad, at the time
when the United Surety Company was a go-
ing concern, been turned over to it as seca-
rity for a claim which it had against a man
by the name of L^nch, and which stock was
subsequently sold and netted the sum of $930.
In dealing with this claim the auditor re-
ported that testimony in addition to that
produced before him was proposed to be giv-
en before the court, and that without sucb
additional testimony he did not feel that be
could pass on this item intelligently. By tbe
decree of the court the $1,000, known as ttie
Lynch claim, was determined to be a proper
credit to be allowed to the receivers. With
this conclusion this court is unable to agree.
It was not imtil long after the proceedings
in this matter had been under way that any
claim whatever was set up on behalf of the
receivers for the allowance of this claim as
a charge against the interest of Mr. Schlens.
The evidence and pleadings both tend to
show timt the receivers, with full knowledge
of the facts, at first made no claim whatever
upon tills sum, and that claim was first set
up when the present counsel for the receivers
came into the case. How far it entered into
the consideration of the court in the case
reported In 128 Md. 352, 97 AtL 619, It Is hn-
possible to say, but the opinion in that case
concludes with these words:
"All the set-oSs, except the item of $1,981.16,
with interest, will be disallowed."
But It is not nece88ar,y to rest the conda-
sion upon this branch of the case either upon
the theory of estoppel or of res adjudicata.
Tba Indebtedness of Lynch was for the sum
of $2,247.10. For this a note of $3,475 was
taken, together with 86 sharea of the capital
stock of the Binney Apartment House Com-
pany. This collateral was among the assets
which were sold by the surety company to
Mr. Knabe. When the stock was sold, and
the proceeds remitted from Washington to
the receivers, they were inunediately turned
over by the receivers to the counsel for Mr.
Schlens. At the time when this occnrred tbe
receivers had been In possession of the prop-
erty for more than two years, but made no
claim that this stock or any part of It prop-
erly belonged to them as against Mr. SdiloUi
the assignee of the Messrs. Knabe. Appar-
ently the theory of the receivers or their
counsel now Is that the assignment of the
stock was for the purpose of securing ad-
vances made subsequent to the assignment,
but the whole evidence tends to discredit this
theory, and accordingly this claim of tbe re-
reivers and the Bank of Lyons will be dis-
allowed.
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HENDERSON' y. HENDERSON
691
The decree of the circalt court of Balti-
more Cltijr, from which the three appeals
were taken, and which have now been con-
sldei'ed, will be affirmed In part, and reyers-
ed In part, and the case remanded, to the
end that the said decree may be modified In
accordance with the views above expressed.
Decree affirmed In part, and reversed In
part, and case remanded; the costs to be
paid by the receivers out of the funds In
thdr hands.
(m Md. MS)
HBNDKRSON et aL ▼. HENDERSON et aL
(So. 66.)
(Court of Appeals of Maryland. Jane 28, 1917.)
1. Wills <S=>68f7(8) — Constbtjotiow — "Rk-
XAiniHe."
Testatrix created a trust In a portion of her
estate in favor of her daughter, and a separate
trust of the residue of the estate for the benefit
of her two sons during their respective lives,
and provided that "in case either of my sons
mentioned in this article of my vrill shall de-
part this life, without leaving a child or chil-
dren, or descendant or descendants thereof, liv-
ing at the time of his death, or in case he
should leave a child or children, or descendant
or descendants thereof living, at the time of
his death, and such child or children, and de-
scendant or descendants shall all subsequently
depart this life, under twenty-one years of age,
and without issue living, at the time of his, her
or their respective deaths, then in trust, that
the one moiety or half of the estate or property
in this article of my last will mentioned shall
go to and become the property of my remaining
son, and bis heirs, executors, administrators and
assigns forever." The daughter is still living.
One of the sons died without issue, and was
predecessed by the other, who left a son now
25 years old. Held, that the word "remaining,"
as used in the will, was synonymous with "sur-
viving," and not intended in the sense of "oth-
er," and that therefore the will made no provi-
sion for the contingency which happened, and
there was an intestacy aa to the remainder in
which the son last dying had an interest for
life which became equally vested In the sister
and nephew.
[Ed. Note.— For other definitions, see Words
and Phrases, First and Second Series, Remain-
ing.]
2. Wills «=344&— Constbuotiow— Avoidiho
Intestact.
While every presumption is to be msde
against intestacy where the will purports to dis-
pose of the residue of the estate, yet such pre-
sumption does not change the clear effect of the
language which the testatrix has chosen to em-
ploy.
Appeal from drcult Court of Balttoiore
City; H. Arthur Stump, Judge.
"To be officially reported."
Suit between Virginia May Henderson and
others and Catherine E. Henderson and
others. From the decree entered, the former
appeal. Reversed and remanded.
Argued before BOYD, C. J., and BRISCOE,
BURKE, PATTISON, URNER, STOCK-
BRIDGE, and CONSTABLE, JJ.
Raymond S. Williams and Arthur W.
Machen, Jr., both of Baltimore (Slinglull &
Sllngluff and A. Dana Hodeon, all of Balti-
more, on the brief), for appellants. O. Morris
Harrison, of Baltimore (Robert L. Gill, of
Baltimore, on the brief), for appellees.
URNER, J. The will of Virginia O. Hen-
derson, a resident of the city of Baltimore,
who died In the year 1892, created a trust of
a portion of her estate In favor of her daugh-
ter, Virginia M. Henderson, for life, and a
separate trust of the residue of the estate for
the equal toeneflt of her sons, Henry C. Hen-
derson and George B. Henderson for their re-
spective lives. It was provided that ujmn
the death of the daughter the estate held in
trust for her during her life should go to her
Issue living at the time of her death who
might attain the age of 21 years, but if no
such Issue should survive, then the property
should vest in her two brothers already nam-
ed as tenants In common. There Is a pro-
vision also that upon the death of either of
the two sons the half of the residuary estate
held In trust for his benefit should go to his
issue who might reach the age of 21 years.
The clause to be construed in this case then
follows:
"But in case either of my sons mentioned In
this article of my will shall depart this life,
without leaving a child or children, or descend-
ant or descendants thereof, living at the time of
his death, or in case he should leave a child or
children, or descendant or descendants thereof
living, at the time of his death, and such child
or children, and descendant or descendants shall
all subsequently depart this life, under twenty-
one years of age, and without issue living, at
the time of his, her or their respective deaths,
then in trust, that the one moiety or half of
the estate or property in this article of my last
will mentioned shall go to and become the prop-
erty of m^ remaining son, and his heirs, execu-
tors, administrators and assigns forever."
Virginia M. Henderson Is still living.
George B. Henderson died In the year 1902,
leaving a son, George Stewart Henderson^
who Is now 25 years of age. Henry 0. Hen-
derson died In March, 1916, without issue,
and the question to be determined relates to
the proper disposition of the portion of the
estate In which be had a life Interest. It Is
claimed in Its entirety by George Stewart
Henderson, as the sole surviving issue of his
deceased father, on the theory that it has
passed to him upon his uncle's death without
issue, in view of the provision of the will
that In such a contingency the property
should go to the "remaining son" of the tes-
tatrix, "and his heirs, executors, administra-
tors and assigns forever." This theory Is op-
posed by the testatrix's daughter, Virginia
M. Henderson, who asserts that, as her broth-
er George B. Henderson was not living when
the life estate of her brother Henry C. Hen-
derson expired, the former did not answer to
the description of the "remaining son" to
whom, and his heirs, executors, administra-
tors, and assigns, the estate In remainder was
devised and bequeathed, and that consequent-
ly a condition cX Intestacy exists as to that
portion of the estate, as a result of which it
4t=9por other caMS ae« same topic ana KBT-NVUBBB In all Key-Numbered Dlgecti and Indeze*
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101 ATLANTIC REPORTBB
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has vested equally In hersell and her nephew
as the decedent's only next of kin and heirs
at law.
[1] The decision of the question thus pre-
sented depends upon the effect to be given the
word "nemaininK" in the clause we have
quoted. The nephew's contention ia that it
was Intended to be understood in the sense of
"other"; while the aunt's theory la that it
was used as the equivalent of "surviving."
If the former interpretation la adopted, and
the limitation la construed as being in effect
to the "other" son upon the death of one
without issue, it la assumed and urged that
no contingency of survivorship prevented the
vesting of the remainder in tbie other son
prior to the period of his brother's death.
Bnt if the term "remaining" is interpreted
as "surviving," then the vesting of the re-
mainder in either son would depend upon his
actually surviving the son who died wlthont
issue.
The will provides that in the event Jnst in-
dicated "then" the designated portion of the
trust estate should "go to and become the
property! 'or' the "remaining son." This
strongly suggests that the vesting was to be
upon the basis of a status existing at the time
when the contingency of the death of a son
without issue occurred. The word "remain-
ing" involves the idea of continuance in the
same state or position. Century Dictionary;
Webster's New International Dictionary.
The son in whom the Interest in remainder
was intended to vest on the occurrence of the
contingency mentioned was the son then "re-
maining." A son who had previously died
could not answer to that description. The
term evidently is synonymous with "sur-
viving" in the sense in which it is here em-
ployed. This is the sense in which it has
been understood by this court in other cases
in which testamentary limitations have been
construed. In Turner t. Withers, 23 Md.
41, the court said:
"We are of opinion that by tfae words 'remain-
ing children' the testator intended those children
■who might remain alivo at the denth of the first
devisee for life— surviving children. "This is the
natural and ordinarv meaning of the words, and
we find nothine in tne will to warrant any other
interpretation.
In that case the interests devised to the
"remaining" children were for their lives, and
this in itself was conclusive as to the inten-
tion that only surviving children should be
entitled to such estates. But tiie definition
there given of the term "remaining" is equal-
ly appropriate to the will now being constru-
ed. In Wilson v. Bull, 9T Md. 128, 54 AtL
629, a devise of life estates to the testator's
children was followed by a contingent limita-
tion upon the death of one without Issue to
the testator's "surviving child or children."
'Cbia was held to mean that, "whenever one
^ his children shoul'd die leaving no child or
cbildroi surviving, then his remaining chil-
dren or bis snrvivlng dilldren should take
tbe share of the child so dying."
If in this case the remainder ba'd been lim-
ited to tbe surviving son of the testatrix, it
clearly could not be held to have vested In a
son who died before the period when the con-
tingency was to be determined. The cases
of Wilson V. Bull, supra, Anderson v. Brown,
84 Md. 201, 35 AU. 837, and Hill v. Safe De-
posit Co., 101 Md. 60, 60 AU. 446, 4 Ann. Cas.
577, are decisive of that question. No differ-
ent effect can be given to the limitation to
the "remaining" son In the present will, in
view of the meaning of tliat term as generally
understood and as Judicially accepted.
In providing for tbe disposition of her re-
sldnary estate after the death of her two
sons, the testatrix considered the contingen-
cies of the death of either with or without Is-
sue then living. If either should die leaving
issue any of whom should attain the age of
21 years, such surviving issue were to take
the share of the deceased parent On the
other hand, If either of the sons should die
without issue then Uving, or leaving issue
who should not live to become 21 years of age,
then the "remaining" son was to have the
portion of bis deceased brother. Bat the tes-
tatrix apparently did not consider tlie con-
tingency, which has happened, of tbe death
of one son wlthont leaving issue and wltbont
being survived by tbe other son.
If we should interpret the term "remainr
ing" as being synonymous with "other," and
should hold that the remainder in controvert
sy vested in the son who first died, such a
result would have to be recognized regardless
of the qnestlon as to whether the one first
dying left issue who survived to the age spec-
ified. Upon such a theory of construction the
remainder thus held to be vested In tlie pre-
deceased son would be absolute, and wonld
not be defeasible upon his death without leav-
ing issue. But in the event of his death
without issue his own original portion of tbe
trust estate would devolve upon his brother,
who had already died without surviving de-
scendants. A contingency which would re-
sult in such an interchanging devolution of
the estates in remainder was evidently not
within the contemplation of tbe testatrix
when she prepared her wUl.
Tbe limitation in remainder to the remain-
ing son "and his heirs, executors, administra-
tors and assigns forever" would simply have
had the effect of vesting an absolute estate
in the surviving son upon the deatb of the
other without issue, and it did not operate to
establish a line of heirs in whom the remain-
der should vest, upon the theory of stirpital
succession advanced In the argument In
Wilson V. Bull, supra, the limitation, Tipon
the death of a child without issue, was to the
"surviving child or children, his, her, or their
heirs, executors, administrators and assigns
absolutely." It was held that the issue of a
deceased child were not entitled to share
with the surviving children. The same con-
clusion bad been reached In tbe constroctlcn
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liOBBLEIN T. CLKM£NTS
693
of a somewhat stmllar provision in Anderson
T. BrowL, supra. In the cases just referred
to, as in tl>e one now presented, there was no
limitation over in the event of the death with-
out issue of all the children in whom the pre-
ceding estates were vested.
[2] The fact that the view we are adopttng
will produce a state of partial Intestacy la
oo reason for refoslDg to apply the terms of
the will according to their plain and ordi-
nary meaning. While every presumption is
to be made against intestacy, where the will
purports to dispose of the residue of the esr
tate, yet such presumption does not change
the clear etCect of the language which the
testatrix has chosen to employ. Id the («iin-
ion in Hill V. Safe Deposit CX>., supra, Chief
Judge McSherry said:
"It is tme there is a presumption that a tes-
tator does not intend to die intestate, especially
where there is a residnary clause in the will, and
the courts win generally strugirle a^inst adopt-
ing an interpretation whidt would lead to that
rMult; but, as already indicated in the citations
from jarman, and from the judgment in Wake
V. Varah, supra, the conseqnences ariaing from
an intestator are not considered sufficient to
indicate that the word 'survivor' was designed
by the testator to be synonymous with the word
•other.'"
According to oar construction of the wUl
before us, no provision has been made for the
contingwicy of the 'death of one of the sons
of the testatrix In the lifetime of the other,
who subsequently died without issue, and
hence there Is an intestacy as to the remain-
der in the portion of the estate in which the
son last dying had an Interest for life, which
consequently has become vested equally in
the sister and nephew of the testatrix as her
only heirs at law and next of kin.
The decree below, which was bascJd upon a
different theory of construction, will be re-
versed, and the -cause remanded to the end
that a decree may be entered giving effect to
the conclusions we have stated.
Decree reversed, and cause remanded ; the
costs to be paid out of the trust estat&
(130 ud. 637)
LOBBLEIN et al. ▼. CLEMENTS. (No. 18.)
(Court of Appeals of Maryland. June 26, 1917.)
Sai.es ig=»178(4)— Delivery and Acceptancb
— Actions foe Recovebt of PtrscHASK
Pbiobi— Unifobm Sales Act.
Where defendants purchased a granite mon-
ument, consisting of bases, die, and cap, erect-
ed same, attempted to remedv alleged defects,
and failing to do so replaced the defective parts
with others, all without the knowledge of the
seller, they cannot resist payment of the pur-
chase price ; 'Dniforni Sales Act (Code Pub.
Civ. I>aws, art. 83) S 69, providing that a buyer
is deemed to have accepted the goods when he
does any act in relation to them after delivery
which is inconsistent with ownership by the
seller.
Appeal from Circuit Court, Baltimore
County ; Allan McLene, Judge.
"To be ofllcially reported."
Suit by Charles Clemen ts against Joseph
Loebleln and another, trading as Loeblein
Bros. Judgment for plaintiff, and defend-
ants appeaL Affirmed.
Argued before BOYD, C. J., and BRIS-
COE, BURKE, THOMAS, PATTISON, UK^
NER, and CX>NSTABIJB, JJ.
O. Cl«n Oraetzd, of Baltimore, for appel-
lants. J. Purdon Wright, of Baltimore
(ArmstrMig Thomas, of Baltimore, on the
brief), for appellee.
URiNBB, J. The appellants, who are en-
gaged in the marble and granite business in
Baltimore county, ordered from the appel-
lee, who Is a granite dealer In Massachu-
setts, a monument of that material which the
purchasers had contracted to erect In a
local cemetery. The monument was to con-
sist of a bottom base, second base, die, and
cap, of spedfled dimensions, and the price
for which it was to be furnished by the ap-
pellee was $434. In due time the monument.
In crated sections, was shipped by rail to
the appellants, and was moved by them
directly from the car to the cemetery without
Inspection. When the various parts had
been placed in posttlon. It was discovered
that there were several spots on the cap and
die which the appellants regarded as de-
fects. Without waiting to give the appellee
an opportunity to replace those sections of
the monument, the appellants attempted to
remove the supposed blemishes by cutting
into the surface of the granite. Later on
they ranoved the cap and die to their place
of business, and substituted for them cor-
resimnding sections, obtained from another
source, which they erected on the bases
procured from the appellee^ This suit has
resulted from the refusal of the appellants
to pay the purchase price for the monument,
on the groimd that It did not conform to the
speclflcations. At the trial of the case a
verdict was rendered by the Jury in favor of
the plaintiff for the amount claimed under
the contract of sale. The Judgment entered
on the verdict Is the basis of this appeal.
There are three bills of exception In the
record, but they need not be separately dis-
cussed, t>ecau8e the plaintiff was clearly enti-
tled to recover, and the defendants have
therefore no legal occasion to complain of
the rulings which contributed to that result.
The testimony on both sides Is In agreement
as to the vital fact that the defendants
treated' and used the purchased property In
the manner already described, which was
wholly Incompatible with the right of rejec-
tion now asserted. According to the Uni-
form Sales Act, the buyer Is deemed to have
accepted the goods when they "have been
delivered to him, and he does any act in rela-
tion to them which Is Inconsistent with the
ownerslilp of the seller." Code, art. 83, S
69i There could not well be a plainer case
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101 ATLANTIC REPORTER
m.
than the present for the application of that
principle. The testimony was in conflict as
to whether the monument had any blemishes
of which the defendants could rightfully
complain, and as to whether they had notl-
fied'the plalntUT of such an objection within
five days after the delivery, as provided in
the agreement of purchase; but there Is no
contradiction as to the defendants having
changed the condition of the two upper sec-
tions of the monument, and as to their hav-
ing permanently appropriated the two bases
to the use for which they were intended.
That such conduct necessarily involved an
acceptance of the monument, under the indi-
visible order of purdiase. Is too plain for
argument
There was no evidence offered in support
oil a defense by way of recoupment of dam-
ages on account of the alleged defects. The
whole purpose of the defendants' proof was
to absolutely defeat a recovery, upon the
theory that the monument delivered did not
conform to the terms of the purchase. Such
a defense could not properly have been giv-
en recognition in the rulings of the court
below, in view of the undisputed and con-
clusive acts of acceptance shown by the
record.
Judgment affirmed, with oosta
(Ul Md. 47)
WII/SON V. WILMS et aL (No. 27.)
(Coart of Appeals of Maryland. Jane 27, 1917.)
1. EQtrmr «=3 141(1) — Pleadikq — Laches —
Explanation or Delat.
A bill for accounting of rents and profits
arising out of certain lands of plaintiff's deceaB-
ed hud>and, brought 22 years after the death of
her husband, is insufficient on demurrer, where
no explanation or excuse is shown for the long
delay.
2. Do WEB «=>62— Estoppel in Pais.
A woman may estop herself from setting up
a claim for dower by acts in pais.
8. DowEB «=>78— Action fob Aocottntzno—
Pleading.
In accounting by widow for rents and profits
for purpose of obtaming dower, it is not incum-
bent on plaintiff, alleging that defendants are
unlawfully in receipt of the lands, to negative
the possible ways in which defendants might be
lawfully In receipt of the land ; the issue as
to whether the land had been conveyed to de-
fendants, or whether plaintiff had by deed or
contract released her claim of dower, being mat-
ter of defense.
Appeal from Circnit Court, Talbot Coun-
ty, in Equity; Wm. H. Adkins, Jndge.
Bill for accounting by Mary EL S. Wilson
against J. McKenny Willis and another.
EYom an order sustaining a demurrer to the
bill, plainticr appeals. Affirmed and remand-
ed, with leave to amend.
Argued before BOYD, 0. J., and BRISCOE,
BURKE, THOMAS, PATTISON, URNER,
STOCKBRIDGB. and CONSTABLE, JJ.
O. L. Pendleton, of Baltimore, for appel<
lant. Joseph B. Seth and Wm. Mason She-
han, both of Easton (Seth & Shehan, of Eas-
t(xi, on the brief), for appelleea
STOGKBRIDGE, J. This case brings np
for review the correctness of an order of the
circuit court for Talbot county in sustaining
a demurrer to a bill of complaint filed for an
accounting of rents and profits arising out of
certain lands of the plaintiff's deceased hns-
band. The aUegations of the bill are exceed-
ingly meager. They set out the conveyance
of a tract of land to William O. G. Wilson on
the 17th of August, 1854, the marriage of the
plaintiff and Dr. Wilson 19 years later, in
187S, Dr. Wilson's death 21 years after,
in 1894, and that the plaintiff has donanded,
for th purpose of obtaining her dower, an
acconcting from the defendants of rents and
profits received by them, and been refused.
The plaintiff then daims $48,000, with inte^
est, and prays for an accounting.
[1] There is no statement in the blU of the
time when a demand was made, but the Ull
was filed In December, 1916, and it would
seem probable that the demand had not been
made at a much earlier date. Apparently,
therefore, the first claim that the plahitlff
made to be entitled to dower was 22 years
after the death of her husband. This long
lapse of time is unusual and called for an
explanation. It cannot be said from the al-
legations of the bill whether the doctrine
of laches may or may not be successfully in-
voked, either to the whole or some part of
the claim now made. So long a delay In as-
serting it entitled the defendants to an ex-
planation showing that the plaintiff had not
been derelict in asserting her rights to an
extent that might operate to estop her at
least to a portion of the clattn made.
[2] That a woman may estop hersdf from
setting np a claim for dower by acts in pais
is settled by a long line of authorities. 9 B.
C. I* p. 607, and cases there dted. T*e
great preponderance of authority is to the
effect, where there has been adverse posses-
sion, continued for the statutory period after
the husband's death, it will defeat the wid-
ow's right of dower. See cases collected in
9 R. C. L. p. 612. Whether such is the rule
in this state is open to question. In view of
the language used in Sellman v. Bowm, 8
Olll & J. 60, 29 Am. Dec. S24. Nor is it nec^
essary to now pass upon that question. Bat
certainly some explanation is dne to show
why no demand was made nntil 22 years
after Dr. Wilson's death.
[3] The bill farther charges that tbe de-
fendants "are now receiving the rents and
profits from the said lands wrongfully, and
have been receiving said rents and profits
for a long time." It is urged by the counsel
for the appellees that It was incumbent ufwu
the plaintiff to go further, and negative a
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LUDWIO ▼. BALTIMORE OOUNTT COM'RS
695
jiumb«r of poetdble ways In wblch tlie de-
fendants might be lawfully in receipt of the
rents. The position of the appellees in this
respect la not as well taken as upon the
ground already discussed. It Is probably
true that the bill should have set out a sei-
sin In Dr. Wilson at the time of hla marriage
to the plaintiff, or at some time during the
coverture of the plaintUC; but whether the
land had been conveyed to the defendants,
with or without the Joinder of the plaintiff,
or whether she had by deed or contract re-
leased her daUn for dower, were matters
-of defense for the Messrs. Willis to set up.
In view of the lack of allegations in the
bill of matters vital to the assertion of the
plaintiff's claim, the order appealed from,
which sustained the demurrer to the bill and
gave the plaintiff leave to amend, was cor-
rect, and will be affirmed, and case remanded,
with leave to amend the bill of complaint
Order affirmed, with costs, and case re-
manded, with leave to amend.
(ta. Md. SH)
IjTJDWIG et nx. v. BAl/TIMORE COTJNTT
COM'RS. (No. 72.)
■(Court of Appeals of Maryland. June 28, 1917.)
1. AppeaTj awd Ebrok <S=>41(1)— Judgment of
GiBCUIT COCBT OF BALTIUOBE COUNTT —
FlWALITT.
Where the circuit court of Baltimore county
acted under a special and exclusive jurisdiction
in affirming an order of the county commlssion-
-ers overruling exceptions to tlie award of ex-
aminers ia the assessment of benefits and the
award of damages in the construction of a sew-
erage system in a proceeding by the commis-
sioners under Acts 1912, c. 157; < 182ra, and
Acts 1916, c. 197, not specifically givin|; a right
of appeal to the Court of Appeals, its jadg-
ment was final and concIusiTe.
2L Appeal and Ebbos <S=>41{1)— Judgment
OF CiKCurr Court of Baltimore Countt—
Apfbal.
While the Court of /Lppeals cannot review
the action of the circuit court of Baltimore
county open appeal where that court bad juris-
diction, yet if the county commissioners from
whose order an appeal was taken to the circuit
court failed to comply with the statutes relat-
ing to sewer construction (Acts 1912, c 157, |
132m, and Acts 1916, c. 197), an appeal would
lie to the Court of Appeob from the circuit
court's action.
2w COCNTIES €=320^ — SXWEB CoHSTBnoTioir
— ^VALiorrT OF Statute.
Acts 1912, c. 157, f 132m, authorizing the
county commissioners of Baltimore county to
adopt regulationa relating to the installation of
« sewerage system, and Acts 1916, c. 197, rati-
-fying such regulations, were a valid exercise of
legisIatiTe power.
4. CoTTNTiEs fla»22 — SEWBHCowanitJonoN —
Pbocsedinos by Oovmir ComnssioiraBS—
Validitt.
Proceedings of the county commissioners of
Baltimore county in a proceeding to install a
sewerage system strictly conforming to Acts
1912, c. 157, and Acts 1916, c. 197, were not
avoided because the commissioners did not give
notice by publishing the petition of the 50 tax-
able inhabitants, because the petition was not
■igned by 50 taxable inhabitants, and because
■of alleged error in excluding evidence to show
that part of such inliabitants were not taxalde
inhabitants.
Appeal from Circuit Court, Baltimore
County; Allan McLane, Judge.
"To bo officially reported."
Proceeding by the County Commissioners
of Baltimore County against William F. Lud-
wig and Mary Ludwig, hla wife. From an
order of the circuit court of Baltimore county
affirming an order of the County Commis-
sioners overruling defendants' exceptions to
the award of examiners and the assessment
of benefits and the award of damages in the
construction of a sewerage system and con-
firming the same and dismlsslDg defendants'
appeal from such order, the defendants ap-
peal. Appeal dismissed.
Argued before BOYD, a J., and BRISCOE,
BURKE, THOMAS, PATTISON, URNER,
STOOKBRIDGB, and CONSTABLE, JJ.
A. P. Shanklin, of Towson, for appellants.
T. Scott Offutt and Edward H. Burke, both
of Towson, for appellee.
BRISCOE, J. On October 23, 1914, the
state board of health of Maryland, by virtue
of the power conferred upon It by chapter
810, Acts of 1914 of the General Assembly of
Maryland, directed the county commission-
ers of Baltimore county to Install and put in
operation a sewerage system within what
was designated as "the Arlington and vicin-
ity district," as described on a plat attached
to the order.
The Arlington area. It Is stated. Includes
a part of Baltimore county lying north and
adjacent to the city of Baltimore. Topograph-
ically It Is divided into two drainage areas
by a natural watershed. One area drains in-
to Jones B^lls, a stream taking Its rise In
the northern part of Baltimore county and
flowing into and through the dty of Balti-
more. The other drains naturally Into a
small stream' known as Peck's run, which Is
a tributary of Gwynn's Falls, which also
flows- through Baltimore dty.
The act of 1914 (chapter 810) was before
this court for consideration In Welch v. Cog-
Ian, 126 Md. 1, 94 Aa 384, and the constitu-
tionality of the act was uphdd and sustained.
The validity of a similar order, as In this
case, was passed by the etate board of health,
and the power and authority of the county
commissioners to execute and carry into ef-
fect 6uch order were passed upon and fully
recogcnized in Welch v. Coglan, supra; so
these questions are no longer open for dis-
cu.ssicn in this court
The proceedings for the purpose of pro-
viding fiinds for the construction and es-
tablishing of the sewerage system here in
quebtion were Instituted and had under and
by virtue of the power and authority vested
In the county commissioners of Baltimore
county by chapter 157 of the Acts of 1912, as
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101 AXLAKTIO REPORTER
(Ml
amended by chapter 804 of tbe Acts of 1914
and chapter 197 of the Acts of 1916. The
method and machinery adopted and pursued
by the county commissioners are set out In
full In the record, and from an order of the
county commissioners passed on the 22d day
of November, 1916, oyerrullng the defendants'
exceptions to the award of the examiners in
the assessment of beneflta and tbe award of
damages In the construction of the sewerage
system, and cooflrmlng the same, an appeal
was taken to the circuit court of Baltimore
county. It appears from the record that tbe
result of the proceedings In the circuit court
of Baltimore county was as follows:
"The motion to quash was snbmitted t« tbe
court, and was overruled. Thereafter the ap-
pellant refused to proceed further with his case,
and Mr. Offutt made a motion to dismiBS the
appeal and affirm the order of the county com-
missioners. The motion was granted ; the court
statin;; that it would pass an order affirming
the oi^er of the county commissioners."
From the judgment and order In the case,
this appeal has been taken. A motion has
been filed by the appellee to dismiss this
appeal upon the ground: First, that the ap-
pellants bave no right of appeal from tbe
Judgment of the circuit court of Baltimore
county; and, second, because this court is
without jurisdiction to review the rulings of
the circuit court on the record In this case.
By reference to the various acts of assem-
bly referred to herein it will be. seen that no
right of appeal Is specially given by the stat-
utes to tbe Court of Appeals from tbe cir-
cnlt court of Baltimore county in the pro-
ceedings provided therein.
By chapter 157 of the Acts of 1912, 1 132m,
it is provided that:
"The commissioners shall have full power and
authority to provide by regulations • • • for
the taking of an^ private property or property
rights of any kind which may reasonably be
necessary^ for any of the purposes specified in
this act, including the acquisition of property or
froperty rights for the disposition of sewage:
'rovided, however, that such regulations shall
contain appropriate provisions for notice to tiie
owner or owners of such property or rights, an
opportunity to be heard and the payment of com-
pensation for property or property rights so
taken, and also for an appeal by such owner to
the circuit court for Baltimore county, with the
right to a jury trial on issue of fact Involved
in such taking; and said commissioners shall
also have full power and authority likewise to
provide for ascertaining what amount of actual
benefit will accrue to the owner or possessors
of any ground or improvements within said coun-
ty by reason of the construction or enlargement
of such sewerage system or systems, and to pro-
vide for assessing and levying the cost of such
work in whole or in part upon the owners of
property so benefited to the extent of such ben-
efit, and for collecting the same, such assess-
ment to be made only after notice, with an op-
portunity to be heard and the right of appeal
as aforesaid, and when so made, to he a lien
upon the property of the person so assessed until
paid, and to be recoverable as county taxes are."
By chapter 197 of the Acts of 1916, pro-
viding for the construction and establish-
ment of sewers, sewerage systems, etc. In
I Baltimore county, and providing the ways
and means therefore, eta, an appeal is pro-
vided from tbe assessment or award made
by the county commissioners to the drcutt
court for Baltimore county, and upon tbe
trial of such appeal the court shall give such
judgment in the matter as may be proper,
and the assessment for benefits and the
awards for damages to the extent the order
is afllrmed shall become final and shall be
collected and shall become due and payable
as provided by the statute.
[1 ] It Is well-settled law In this state that
if the drcnit court in this case acted under
a special and exclusive jurisdiction, its Judg-
ment is final and concl«slve, unless the right
of appeal is expressly given by statute.
In Railroad Co. t. Condon, 8 GiU & J. 448,
It is said that there Is no appeal expressly
given to the Court of Appeals under the act
of assembly Investing the county courts with
the power of hearing and setting aside in-
quisitions like the present. It is a special
limited Jurisdiction given to the county
courts, from the decision of which no appeal
lies to any other tribunal. Savage Mfg. Co.
v. Owings, 3 GUI, 498; Margraff v. Cunning-
ham, 57 Md. 685; Wells v. Thomas, 72 Md.
26, 19 Atl. 118; Hull r. Southern Develop-
ment Co., 89 Md. 11, 42 AU. 943.
[J] While It is clear that this court could
not review the rulings or action of the cir-
cuit court upon appeal if that court had
Jurisdiction yet It Is also well settled that, if
the county commissioners exceeded their Ju-
risdiction conferred by the statute, and failed
to comply with the essential requirements of
the statute, an ain>eal lies to this court from
the action of the circuit court Greenland v.
County Oora'rs, 68 Md. 89, 11 Att 681;
Smith V. Goldsborough, 80 Md. 49, 30 Atl.
574 ; Cumberland B. R. Co. v. Martin, 100
Md. 165, 50 Atl. 714; Montgomfery County
V. Henderson, 122 Md. 633, 89 Atl. 858.
This brings us to a closer examination of
the statutes and the correctness of the proce-
dure adopted and followed by the county
commissioners thereunder.
The objections raised by the appellant up-
on the motloa to quash, it will be seen, upon
a careful examination of the record, appear
to be more technical than real, and, even if
they could be considered, would not bare
injured or prejudiced the rights of the ap-
pellant under the proceedings In this case.
They are as follows:
(1) Because the county commissioners did
not give notice by publishing the petition of
the 50 taxable Inhabitants as required by
statute.
(2) Because the petition was not signed
by 50 taxable Inhabitants as the statote
required.
(3) That the oonrt below committed re-
versible error In refusing to admit evidence
to show that of the 60 petitioners 11, when
they signed It, were not taxable inhabitants.
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DICUS T. WC08
697
[3] The rales and r^^atlons adopted by
tbe county commissioners of Baltimore coun-
ty relating to the Installation of t&e sewer-
age system were approved by the order of
tbe state- board of health. They were adt^t-
ed by the county omimissloners on August
6, 1914, and were passed under the authority
of chapter 157 of the Acts of 1812, and these
ordinances were subsequently ratified and
sanctioned by chapter 197 of the Acts of
1916. These acts were a valid exercise of
legislative power, and are free from any
constitutional objection urged against them.
Welch V. Coglan, 126 Md. 1, 94 Atl. 884.
And cases there dted.
[4] The proceedings of the county commlS'
sloners were conducted In strict conformity
with these statutes, and the essential re-
quirements of the statutes were In sob-
stance fully complied with, and the irregulari-
ties complained of were not such as to avoid
or to justify the court In striking down the
proceedings.
The record In the case discloses the fact
that the inoceedlngs before the commission-
ers were conducted with great care, and the
statutes followed with unusual particularity.
We have examined the record with care and
tbe various questions presented by the very
fnU and carefully prepared brief filed by
the counsel for the appellee, In so far as they
are before us on this appeal, and must de-
termine there Is nothing In the objections
urged by the appellant to render the proceed-
ings void, certainly so far as they affect any
jurisdictional questions.
There were certain exceptions taken to
tbe rulings of the court upon testimony up-
on the motions to quash the assessment, but
tbey are not presented by bills of exoepthns
and will not be considered by us.
It follows from what has been said that
tbe county commissioners and the circuit
court of Baltimore county had jurisdiction
In this case, and, the judgment of the cir-
cuit court being final under the statute, this
court is without authority or jurisdiction
to review the action of the court below.
If the appeal was properly before us, we
would have no hesitation In affirming the
ac>tlon of the circuit court and the order ap-
pealed from her^n.
Appeal dismissed, with cost&
<131 Hd. S7)
DICUS V. DICUS. (No. 63.)
{Court of Appeals of Maryland. June 28, 1917.)
1. DivoBCK €=9l30— Cbuelty— Statdtb— Bvi-
DEI7CE.
Under Code Pub. Gen. Laws lOM, art 35.
I 4, providing that no divorce shall be granted
on the testimony of the plaintiff alone, a wife's
corroborated testimony as to her husband's cruel-
ty, contradicted by him, would not sustain a de-
cree of divorce on that ground.
2. DzvoBos «B9l29(l)— AouunBT— EyiDBircK
Eividence in a wife's suit for divorce held to
establish the husband's alleged adultery.
3. DivoBCE S=>12d(9)— Adultebt— Pboof.
It is not necessary that direct evidence of
tbe fact of adultery shall be offered, and the of-
fense may be proven by circumstances which
justify the inference of guilt.
4. DivoBCE €=172 — FoEMEB Adjudication
— Conclusiveness.
A decree in a former suit for divorce on the
ground of the husband's adultery dismissing the
bill for insufficiency of proof, and from which
there was no appeal was no bar to a subsequent
suit for divorce on the ground of his subsequent
commission of the offense.
5. DiVOBCE 4s>115— ADULIEET— EVIDEIfCB.
In a wife's suit for divorce on tbe gromid
of adultery, evidence referring to circumstances
proven in her former suit for the same cause
was admissible as reflecting upon the husband's
subsequent conduct
6. DiVOBOB «B»a09— ALIIIOHT PBNDBRTB LUC
The settled rule is that a wife without ade-
quate means shall be awarded alimony pendente
lite, regardless of the merits of tbe lingation.
7. Divorce «=» 182— Costs and Counsel Fees
— JUBISDICnON.
A wife's application for an order that her
husband pay her a sufficient sum for her costs
and counsel fees in the prosecution of her ap-
peal from a decree in her divorce suit should
be made to the court below, even after the ap-
peal baa been entered.
Appeal from Circuit Court of Baltimore
City ; Walter I. Dawklns, Judge.
"Ito be officially reported."
Suit for divorce by Margaret S. Dlcus
aigalnst Jacob M. Dicus. From a decree dis-
missing the suit, plalntUF appeals. Decree
reversed, and cause remanded.
Argued before BOTD, C. J., and BRISCOE,
BURKE, THOMAS, PATTISON, URNER,
and CONSTABLBk JJ.
David Ash, of Baltimore, for appellant
Morrill N. Packard and Benjamin U Freeny,
both of Baltimore, for app^ee.
URNER, J. The appellant sued for a di-
vorce from her husband, the appellee, on
the grounds of cruelty and adultery, and this
appeal Is from a decree dismissing the bill of
complaint
[1] The only evidence in support of the
charge of cruelty was the appellant's own
testimony, and that was contradicted by
the appellee. There was no corroboration la
any form of the wife's statements as to the
mistreatment of which she complained. In a
suit for divorce a decree cannot be entered
upon the testimony of the plaintiff alone, but
corroborative proof is requisite. Code, art.
35, { 4; Tomkey v. Tomkey, 130 Md. 292, 100
Atl. 283; Marshall v. Marshall, 122 Md. 694,
91 AtL 1067; Twlgg V. Twlgg, 107 Md. 677,
69 Atl. 617. The allegation of cruelty there-
fore is not sufficiently sustained to justify
a decree of divorce on that ground.
[2, 3] With respect to the charge of adul-
tery we have reached a different conclusion.
In our opinion the proof points convincingly
to tbe husband's infidelity. It is shown and
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101 ATLANTIC REPORTER
(Vd,
admitted that be Is IlTlng In the same bouse
witb tbe troman who Is named In tbe bUl as
tbe person with whom the alleged adultery
was committed. This woman, according to
the decided weight of the testimony, has a
bad reputation for chastity. She was em-
braced and caressed by the appellant's hus-
band on a number of occasions In the pres-
ence of a caller at the house, who testified to
that effect It is proven by another disin-
terested witness that the corespondent sur-
reptitiously left the appellee's house one
aftemon by the back way, while bis wife and
family were away from home. Just before
the woman left the house, as it was testified,
the appellee went to the back gate and look-
ed up and down the alley, through which she
immediately afterwards took her departure.
They were twice alone together for the great-
er part of the day at an untenanted house of
the appellee in the country. On one of these
occasions he was heard to address a term of
endearment to her when she called to him
from an upper room to bring some water.
He was once heard to talk to the woman so
Immodestly that she protested, with the re-
mark that a visitor, before whom the lan-
guage was used, might think that she was
being kept by the appellee. His associations
with the corespondent were begun long prior
to the final separation between himself and
bis wife in October, 1913, and have continued
to the present time. He Is the only male
lodger In tbe bouse which the woman occupies
with her sister and niece. The sister's repu-
tation for chastity has also been impeached.
The proof in this case is clear as to the
existence of the disposition and opportunities
from which the commission of the adultery
changed is to be Inferred. It is not necessary,
and it is usually impossible, that direct evi-
dence of the fact of adultery shall be offered.
The offense may be proven by circumstances
which Justify the Inference of guilt Shu-
feldt V. Shufeldt, 86 Md. 529, 39 Atl. 416;
Thless V. Thiess, 124 Md. 295, 92 AU. 922;
Kremelberg v. Kremelberg, 62 Md. 663;
Rasch V. Rasch, 105 Md. 606, 66 Aa 409;
Robbins v. Robblns, 121 Md. 695, 89 Atl. Ii:i5.
The conduct of the appellee and corespondent,
as described In the testimony, their famil-
iarities and embraces, his open immodesty of
language in addressing her, their clandestine
movements when they were alone at his
house, her reputation for lack of virtue and
bis position and opportunities as an inmate
of her home, lead us irresistibly to a convic-
tion as to the adulterous nature of their re-
lations.
[4, 6] This Is the second suit by the appel-
lant for divorce from her husband on the
ground of adultery with tbe same corespond-
ent who is named In tbe present bill. Tbe
first suit was instituted Immediately after
the final separation of the parties in 1913.
That suit resulted in a decree dismissing tbe
bill for Insufllclency of proof. There was no
appeal from that decree, and It Is relied upon
as a former adjudication of the question in-
volved In the pending suit This defense Is
not sustainable. Whatever effect the former
decree mit^t be held to have In precluding a
divorce for adultery alleged to have been
committed before that decision, it certainly
cannot have the effect of shielding the appel-
lee from the legal consequences of the subse-
quent commission of such an offense^ Tbe
testimony in the case now before os relates t»
incidents whidi have occurred and coaditlons
which have existed since the prior decree
was rendered. Some of the evidence refers
to circumstances proven in the former case,
but this was admissible as reflectiiis upon
thdr later conduct Shufeldt ▼. Shufeldt,
supra. Upon tbe testimony as a whole we
are satisfied that adultery of the husband
since tbe dismissal of tbe first bill has beeo
sufficiently proved, and that the wife is there-
fiore entitled to an absolute divorce.
[6] The decree under review, in disposing
of the pending suit, refused the prayer of the
bill for an allowance of alimony pendente
lite^ although it required tbe defendant to
pay a fee for tbe plaintiff's solicitor. The
record does not disclose any reason for ex-
cepting the case from tbe settled rule that a
wdfe without adequate means should be
awarded alinLony pendente lite regardless of
the merits of the litigation. Crane v. Cranes
128 Md. 214, 97 Atl. 635 ; Buckner v. Buckner,
U8 Md. 268, 84 Aa 471.
[7] Application has been made to Oils court
for an order requiring tbe appellee to pay
the plaintiCt a sufficient sum for her costs
and counsel fee In tbe prosecution of tbe ap-
peal. This was a question over which the
court below bad Jurisdiction after tbe appeal
was entered. Crane v. Crane, supra; Oat-
law V. Outlaw, 122 Md. 696, 91 Aa 1067;
Rohrback v. Bohrback, 7S Md. 318, 23 AtL
610; Buckner v. Buckner, supra. The appli-
cation should have been made to the trial
court, and If it bad been presented there, we
have no reason to doubt that it would have
been given due consideration.
The decree will be reversed, and tbe cause
remanded for a decree of divorce a Tlncnlo
matrimonii, and for such allowance of ali-
mony, under the prayers of the bill, as tbe
court below may determine to be prttper.
Decree reversed, with costs, and cause re-
manded.
(ISlMd. MO)
GISCHELL V. BALLMAN et nz. (Na 45.)
(Court of Appeals of Maryland. June 28, 1917.)
1. Wills 9=9602(1;— Devises ir Fee.
Testator willed land to his voungest ton,
his heirs and assigns, and directed that, as the
devisee was not so well able to provide for and
take care of himself, another should look after
his interest, advise and direct him, and in case
the devisee should not marry and should die
first, such other should have and inherit one-halt
of said part of said property. Held, that the
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OISCHELL 7. BALLMAN
699
devisee, havinz married, became the owner in
fee simple of the land devised.
2. WlIiB ®=»672(1)— TbUSTS— EVIDBNCK.
The part of tlie will directing that another
shall look after the devisee's interest did not
create a trust
3. Wills <S=>601(4)— Reductiom of Peb-Sim-
PLE Estate— LiFB Estate.
A later item of a will directing that all the
land and property hereby bequeathed shall not
be sold on any account could not have the effect
-of reducing a fee simple to a life estate.
4. Wills 9s>64&— Rxstsairt on Alibnatior.
The item was a restraint on alienation, and
therefore void.
Appeal from Circuit Court, Anne Anmdel
Gonnty; Jas. R. Brashears, Judge.
Suit by Frank H. Ballman and wife against
WlUUun G. Glscbell. Decree for plaintiffs,
and defendant appeals. Affirmed, with co&ts.
Argued before B07D, C. J., and BRISCOl!:,
BUBKB. THOMAS, URNBR, STOCK-
BRIDGES, and CONSTABL.B, JJ.
Cbarles H. Buck, of Baltimore, for appel-
lant. Cbarles F. Stein, of Baltimore, for ap-
pellees.
BOYD, 0. J. This la an appeal from a
decree for spedflc performance requiring the
defendant (appellant) to pay to the plaintiffs
(appellees) the purchase money for a tract
of land In Anne Arundel county which he
agreed to purchase from them, and directing
the plaintiffs to convey said land to the de-
f^idant upon his payment of the purchase
money or bringing It Into court Q?he appel-
lant states In bia answer that he Is anxious
and willing to complete the purchase, and to
pay the purchase money, and that he will
do so In accordance with his contract U by
a true construction of the devise to Frank
Harman Ballman in the will of Henry Ball-
man the former became and Is seised of the
entire and absolute fee-simple estate In the
lands purchased.
[1] Henry Ballman, the father of Frank H.
Ballman, died on or about the Slst day of
October, 18S4, seised of a tract of land con-
taining about 60 acres, of which that In con-
troversy in this case Is a part. By his last
will and testament he devised to his daughter,
Lieara OaroUne Ballman, one-third part of
Ills home tract of land, where he then re-
sided, and to his son Christian Frederick
Ballman the north third of the home farm,
and made the following provision for bis son
Frank Harman Ballman, one of the appellees:
"Item. I will and bequeath to my youngest
son, Frank Harman, the south third of my home
tract, containing sixteen and three-quarters
acres of land, more or less, with the old dwelling
honse and the large barn nnd such buildings as
■hall fall to his third of said tract, with the
well of water and pump, but I wUl and direct
that the heirs to the several parts of my home
farm shall have equal rieht to use the well or
pump aforesaid, provided they bear equal part
of the repairs to said pump and well. And
further that each of said heirs shall have free
right of way to and from said farm, or their
parts thereof, without let or hindrance. To the
said Frank, bis heirs and aswgns. And where-
as the said Frank is not so well able to pro-
vide for and take care of himself, I direct that
Henry Frederick shall look after his interest,
advise and direct Frank as best he can, and in
case Frank shall not marry and die before the
said Henry, then the said Henry shall have and
inherit one-half of Frank's part of said property,
and I also direct that in case Frank shall die as
aforesaid, that Henry shall have him decently
baried and properly attend to him in all his
sickness in consideration of the aforesaid in-
terest."
The answer admits that after the deatli of
the testator, and under the provisions of the
vdll, Ftank H. Ballman entered into posses-
sion of the part of the tract of land devised
to him, claiming to be seised of the entire
fee-simple estate therein, and that he has
ever since remained In possession thereof, al-
ways claiming to be so seised of the raitlre
fee-simple estate, but the appellant contends
that by the true construction of the will he
did not become seised of the entire fee-simple
estate, and at best only became seised of a
defeasible estate in fee therein, to be divested
upon his marriage or death before the death
of his brother, Henry, and that, although he
Is married and alive, he is not seised of the
entire fee-simple estate^ and cannot convey
sudi estate to the appellant as was contract-
ed to be sold him.
The appellant makes no objection to the
provisions for the use of the well or pump
or the right of way provided for in the will.
It Is not easy to find such dl£3culty about
the title as Justified an appeal to this court.
The will was' evidently not drawn by one
skilled In such work, but It Is sufficiently
clear to show the Intention of the testator.
After saying that he wills and bequeaths to
his son Frank Harman the south third of
his home tract, and giving the heirs the right
to the use of the well or pump and the right
of way, the testator apparently desired to
emphasize the fact that he intended his bxxi
Frank to have the property In fee simple, as
he added In a separate sentence, "To the said
B'l-ank, his heirs and assigns." He had In
previous Items left a third of his home tract to
bis daughter, Laura Caroline, and the north
tlilrd of that farm to his son Chri&tian Fred-
erick, and In both of those Items used the
same language, except he added the word
"forever" in his gift to Charles Frederick.
[2] The part of the Item leaving the prop-
erty to Frank In which he directs that Henry
Frederick shall look after his Interest, advise
and direct him as best he can, certainly did
not create a trust. It was Just an expression
of the father of the Interest be had In the
welfare of his youngest son, calling upon
Henry to watch over him. Then when the
will says, "and In case Frank shall not
marry and die before the said Henry, then
the said Henry shall have and Inherit one-
half of Frank's part of said property," etc..
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101 ATLANTIC REPORTER
(Md.
It Is clear that Henry was only to have the
one-half It Frank did not marry and died
before him. A& it Is admitted that Frank has
married and is stUI living, clearly Henry has
no Interest In the property by reason of that
provision. The testator did not simply say,
"In case Frank diet before Henry," but "in
case Frank shall not marry and die before
the said Henry." He knew tliat if he mar-
ried he might leave a child or children, or a
widow, or both, surviving him, and he in-
dicated no intention to leave the one-half to
Henry la that event, or in any event, unless
Frank did not marry and predeceased Henry.
The concluding claia&« of the item, "and I
also direct that in case EVank shall die as
aforesaid," could have no effect unless be
did not marry and did die before Henry. It
seems to ua that that item ia too clear for
controversy.
[3] The next item in the will Is aa follows:
"Item. I will and direct that all the land and
property hereby by me bequeathed shall not be
sold on any account, but that the aforesaid heirs
may rent or lease their said parts of said land,
but shall not sell during their natnral lives."
Inasmuch as by the will the testator had
already given Frank a fee-simple interest in
the property he left to him, that item cannot
have the effect of reducing his interest to a
mere life estate. Such a construction would
be wholly contrary to the provision as to
Henry taking under the previous item the
proporty left to Frank; for, if Frank only
bad a life estate, how could Henry "have
and Inherit one^ialf of Frank's part of said
property"? But such restraints on alienation
are not favored, and are very generally held
to be contrary to public policy. In many
cases in this court the subject has been dealt
with. Amongst them are Smith v. Clark, 10
Md. 186; Warner v. Rice, 66 Md. 436, 8 Atl.
84; Stansbury v. Hubner, 73 Md. 228, 20
AU. 904, 11 L. R. A. 204, 25 Am. St Rep. 584:
Trinity M. E. Church v. Baker, 91 Md. 639,
674, 46 Atl. 1020; Blackshere v. Samuel
Ready School, 94 Md. 773, 51 Atl. 1066;
aark V. Clark, 09 Md. 356, 58 Aa 24; and
Doan V. Ascension Parish, 103 Md. 662, 64
Atl. 314, 7 L. R. A. (N. S.) 419, 115 Am. St
Rep. 379. See, also, Manierre v. WelUng, 32
R. I. 104, 78 Atl. 607, 32 U R. A. (N. S.) 695,
reported in Ann. Cas. 1912C, 1311, where there
is a note on page 1329, citing many authorities,
and Queensborough Land Co. v. Cazeauz, 136
La. 724, 67 South. 641, U R. A. 1916B, 1201,
reported in Ann. Cas. 1916D, 1248, and note
on page 1254.
[4] It is dear that this Item is such an
attempted restraint on the alienation of the
property left l^rank in fee simple (as we hold
It was left) as to be void and of no effect.
We are only concerned with Frank's interest,
and therefore say nothing as to the others,
but our silence must not be construed as in-
timating a doubt on the subject as to those
interests, as we neither express nor intimate
any opinion.
The decree will be affirmed, but we will
direct that each side pay one-half of tbe
costs in this court, and that the appellant
pay the costs below, as directed by the de-
cree of the lower court
Decree affirmed, each party to pay one-baU
of tbe costs in this court, and tbe appellant
to pay the costs below.
(in Hd.70)
HOCHSCHILD et al. v. OEOIL. (No. 52.)
(Court of Appeals of Maryland. June 28, 1917.)
1. Keolioknce iS=3l3G(22)— Jubt Cask.
In an action for injuries sustained by plain-
tiff in entering defendants' store tiirough a re-
volving door, the question of necligence keld
for tbe jury.
2. Tbial «=»295(1) — iMSTBDcnoNS — Com-
BTBUCTION ToGETnKB.
In determining the correctness of a prayer
tbe Court of Appeals must not only consider |
tbe part to which objection is made, but, in con-
nection therewith, must also consider the po^ '
tion of the prayer conceded to be correct, ai
well as the other granted prayers in the aae, is
respect to the evidence offered. ,
3. Tbiai. «=»295f8)— Instbuction.
In an action for injuries to plaintiff in en- i
tering defendants' store through a revolving door,
plaintiff's requested instruction told the jorr |
that, when the j)roprietor of a store expressly or
by implication invites others to oome upon hit {
premises for business or other purposes, it is
bis duty to be reasooably sure be is not inviting I
tbem into danger, and he must exercise ordinary
care to render tbe premises reasonably safe; |
tbat, where the owner of a store expressly or by
implication invites others to come into it, u
he permits anything of a dangerous character to
exist therein which results in injury to another
exercising ordinary care, the owner is answerable
for the consequences. Held that, though the lat-
ter part of the prayer ignored the necessity of
finding negligence on defendants' part, the neces-
sity for a finding of negligence was sufficiently
shown by the prayer as a whole, particularly in
view of an instruction contained in defendants'
prayer that plaintiff was not entitled to recover
unless the jury was satisfied that defendants
failed to exercise due care to provide a reason-
ably safe door.
4. NBOuaENOB «s»119(4)— IssOKB Airn PM«r
—Cause of Injcbt.
In an action for injuries to plaintiff in en-
tering defendants' store throu^ a revolving
door, where the negligence charged was that
defendants failed to maintain the door in a rea-
sonably safe condition, testimony offered by de-
fendants that there were no revolving doors in
general use so constructed that a person using
them could not be knocked off his feet by an-
other coming behind him and pushing with vio-
lence was properly excluded as foreign to the
issue.
Appeal from Superior Court of Baltimore
City ; Chas. W. Heuisler, Judge.
Action by Mary D. Cecil against Max
Hochschild and others, c<q)artners trading as
Hochschild, Kohn & Co. From a Judgment
for plaintiff, defendants appeal. Affirmed.
Argued before BOYD, C. J., and BRISCOE.
BURKE, THOMAS, PATTISON, T3RNER,
and CONSTABLE!, JJ.
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HOCHSCHILD v. CECIL
701
tVUIlam I<. Marbnry, of Baltimore (Mar-
bury, Oosnell & Williams, of Baltimore, ou
the brief), for appellants. I* Wethered Bar-
roll, of Baltimore (Hope H. Barrel! and Robt
J. Gill, both of Baltimore, on the brief), for
appellee.
PATTISON, J. This Is an appeal fl-om a
Judgment recovered by the appellee against
the appellants for injuries sustained by her
In entering the storehouse and premises of
the defendants through a revolving door.
The action in this case was brought upon
a declaration containing two counts. The al-
leged negligence charged against the defend-
ants In the first count causing the injury
complained of is that they neglected to dis-
charge and perform the duty of providing
for the safety of their customers "by having
proi>er friction strips attached to said door,
which strips were not properly attached, but
the said strips had been worn, so that the
door revolved with a dangerous ease and
rapidity, with which It should not have re-
volved," and in the second count they are
charged with the failure "to exercise or-
dinary and reasonable care In the control of
the operation and movement of the said
door."
The plaintiff, a woman 68 years of age^ In
stating the droumstances of the accident,
which occurred on December 4, 191B, said:
'^ went to Bochschild'a [the defendant] upon
the Howard street side, entering the first door.
As I went in, the door was apparently moving
vary slowly, and I went In my usual way. I am
always cautious, was always cautions, of tho«o
doors, and before I escaped the door there was
« sudden blow, some one, or there came .i sud-
den blow that threw me on the floor, struck me
on my right arm and side, and threw me on my
left side on the floor. It came so suddenly that
I did not realize for an instant what had hap-
pened, and after a moment, of course, they came
to me and helped me up."
She further testified that It was the door
that struck her; that she "felt the blow very
decidedly"; that partitions In the door were
of glass, and she saw no one In front of her
at the time passing through the door; what-
ever motion there was came from behind and
■he failed to see it; that she saw a colored
man standing between the doors, that Is, be-
tween the two revolving doors, one of which
she entered; sbe could not say whether the
man touched the door or not, but he did not
stop It, or it would not have struck her;
that she was a regular customer at the store,
and was acquainted with the premises and
the door through which she passed ; she had
gone through it many times. As to this par-
ticular door she said:
"Somehow I always felt it was more danjrcr-
ous. I do not know why, bnt (t always seemed to
me to be more dangerous than the others."
Sbe said:
"I did not stop in the door. I did not go very
fast, because I never do rush in those doors, but
I went my ordinary gait."
When asked how she was thrown to the
fioor, she answered:
"1 was thrown on my left side. It struck
me on my right shoulder and side, and my left
side and hip sustained the injury, the fractured
break."
There were no other witnesses offered by
the plaintiff as to the circumstances of the
happening of the accident
Joseph L^ Downes, general agent of the
Northwestern Life Insurance Company, and
brother of the plaintiff, testified that he ex-
amined the door some time between the 10th
and 15th of December, and "found the rub-
bers on the sides' that held the door in very
bad shape," and the door, if you went
through It at any ordinary speed, "would go
around four or five times"; by giving the
door "an ordinary push it would keep going
around, unless somebody else went in there
or the man caught it"; that the strips were
placed on what he "would call the back of
the arms" ; that they were worn out and did
not have the effect of retarding the speed of
the door la revolving; "they barely touched"
the well of the door. He testified that the
door in which the accident occurred differed
from the other door on Howard street In that
it had a solid top; that he did not know
whether this caused the door to go fast or
not; that he examined other revolving doors
In other department stores In the neighbor-
hood, and also one at the Calvert Bank.
"Those doors did not go anything like as
fast as the door In which the plaintiff was
injured, nor did the other door on Howard
street In the same building."
John H. Driver, engaged in the business
of supplying spedolties' to buildings, testi-
fied that he was familiar with revolving
doors; that the door In question "is what is
known as the Van Kannel door, which is the
pioneer revolving door." He described such
door by saying that, "If you can imagine a
table with one leg and fastened to the leg
four flaps or wings; this table Instead of
being fastened at the top, and supported at
the top, it runs' on an axle at the top, sup-
ported at the bottom; it works more like a
top then anything I can compare It to." He
stated that, "the speed of the door Is gov-
erned by the friction of the strips, not weath-
er strips, but side flaps that project and en-
gage the well or opening which the door is
in, BO that the door cannot run away" ; that
there is nothing about the door to prevent it
from running away except the side flaps that
brush the well; that they curve as they go
around, although they are apparently
straight; that they act as a brake; that two
of them at all times brush against the side
of the well; that they are made of hard rub-
ber and "should at least rub from a (juarter
to a half inch on this surface." Witness
further said that a door used so much as the
one in question should be inspected not less
than once a week, and the "adjusting of the
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101 ATLANTIC REPORTER
(Hd.
strips possibly once a month, and new strips
not less than once a year, because weather
conditions hurt a strip. In the summer time
It dries up." Witness then told how to ad-
Just or remoye the strips, and stated that
when properly adjusted "the door will open,
and possibly one flap will moTe about one-
third of the circumference of the door."
When the pressure Is removed,, "the door
will come back to a standstill within about
six Inches," and where the strips are proper-
ly adjusted the door is considered fairly safe.
James B. Scott, consulting engineer, when
produced by the plaintiff, testified that the
rubber strip has two or three functions; first
of all it performs the function of a weather
atrip, and In addition to that it retards the
revolution of the door "so the speed will
not become excessive without an abnormal
amount of power being exerted on the door";
that it also performs the function of a llexible
edge, so if a person should Inadvertently get
his fingers caught between the well of one
of the strips "they would meet the yielding
surface of the rubber instead of being shear-
ed off as they would be if the doors were
rigid at the edge." He further stated, how-
ever, If the rubber strip was not used, "it
would be necessary from a point of safety to
adc^t some other device to dampen the rev-
olution of the door," but the use of these
strips la "the simplest and most commou
sense way to accomplish the object," and
that they also accomplish "two or three other
objects at the same time." Witness, in speak-
ing of the Van Kannel door, said It is what
you might call an obsolete type of door ; "you
might say it was one of the original doors,
the pioneer door;" that it differs from the
modem door In that the latter has "a sta-
tionary celling," and a rubber strip at the
top and bottom which furnishes additional
friction, although the main point where the
friction is applied Is at the circumference of
the door. The principal advantage, however.
In the modem door over the other "is that
It eliminates this big flywheel top," which in
the former type revolved with the door, and
gives to Its movement a greater momentum.
There were other witnesses produced by
the plaintiff who testified as to the character
and extent of the Injuries sustained by her,
but It Is not necessary to state the evidence
of these witnesses In deciding the questions of
law presented by this appeal.
Walter Sondheim, the general manager of
the defendant firm, offered by the defendants,
testified that he did not know of any differ-
ence between the movement of the old and
new typ.e of doors, but was inclined to think
that the old type was more dlfilcult to revolve
than the new type. It revolved less fredy
than the new, and required a little more ef-
fort to push it around. The strips, as he
stated, were put there for two reasons, one
to keep out the dust and draught, and the
other to protect the fingers of persons In tak-
ing hold of the edge of the door; that the
strips were not there for the purpose in any
way of affecting the speed In the operation of
the door; he did not know how often the
rubber strips had been removed and new ones
put on; that the doors were actually used
eight months in the year, and in his opinion
the table at the top of the door tends to re-
tard Its motion.
Dent Downing, "housekeeper" at defend-
ants, who had charge of the doors, when call-
ed by the defendants, testified that he makes
a general inspection of the store several times
a day, sees that the doors are clean, that they
revolve properly, and are in proper mechani-
cal condition ; that be was familiar with the
door where the accident occurred. There Is
no difference, he states, between the old and
new type of doors so far as the speed and
operation by the public is concerned. There
is upon the doors two brass bars, with sufll-
cient space between the bars and the glass
for a handhold, which is to enable the pas-
senger to go through in safety. lie did not
know when these strips were replaced ptux
to the 4tb day of December, 1916, but was
sure they had been replaced within two
years; that they were not replaced on ac-
count of the rubber wearing out, bat because
of people tearing some parts of them away
and making them look ragged and ugly. This
was done on an average about once a year.
He never removed the rubber strips and re-
placed them "with reference to their causing
more or less friction on the doors." They
had extended the rubbers to keep out the
air, and at the same time it increases the
friction, but they were never ext«ided for
the primary purpose of increasing the fric-
tion. That had never entered his mind.
George W. Morey, chief engineer at the
store of the defendants, when offered as a wit-
ness by them, stated "that the door In ques-
tion moved as hard, tf not a little harder,
than the other doors; that they considered It
in a good condition on December 4, 1915; the
strips touched the walls of the door opening
suSlclently to keep out the air."
Mrs. Louise Robinson, an employe of the
firm of Hochschlld, Kohn & Co., and who was
In the store at the time of the accident, testi-
fied for the defendants, saying:
"I saw a frail, elderly lady walking slowly
through the door. Apparently she hesitated a
moment, then a customer came to my counter,
and I turned to the customer. Just as quickly
the lady fell, and I excused myself and went to
her assiiitnnre. When she hesitated she was
just inside the door just as she had passed
through it."
The record discloses that there were seven
exceptions noted by the defendants to the rul-
ings of the court on the evidence and one to
its rulings on the prayers.
The plaintiff offered four prayers. The
first and second were refused, and third and
fourth were granted.
The defendants offered five prayers. The
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STATE V. SHAPIRO
70S
first and flftb were refused. The second,
third, and fourth were granted.
The defendants' first prayer is as follows:
"No evidence has been introduced in this case
legally sufficient to entitle the jury to find that
the injuries to the plaintitf complained of in
the declaration were caused directly by the vio-
ladon or neglect on the part of the defendants
of any legal duty restinp upon them, as alleged
in the declaration, and therefore the verdict of
the jur^ should be for the defendants upon the
issues joined."
[1] This prayer, as we have said, was re-
fused, and, we think, properly refused, as the
evidence. In onr opinion, is legally sufficient
to taKe the case to the jury.
In Norton v. Chandler Co., Inc., 221 Mass.
99, 108 N. E. 897, the facts offered to the
Jury were very nearly the same as those
presented In this case, and in that case the
court held that:
Such facts "warranted the finding of negli-
gence on the part of the defendant: First, in
not inspecting the friction strips ; and, secondly,
in allowing the door to fall into a defective con-
dition through failure to adjust the friction
strips on their being worn down."
And we find no error in the rejection of the
defendant's fifth prayer.
The case was submitted to the jury upon
the plalntlfiTs third and fourth and the de-
fendants' second, third, and fourth prayers.
The plalntifTs third prayer instructed the
Jniy:
"That when the propiietor or owner of a store
used for the selling merchandise, expressly or
by implication invites others to come upon bis
premises, either for business or for any other
purpose, it is his duty to be reasonably sure
that he is not invitinj? them into danger, and to
that end he must exercise ordinary care and
prudence to render the premises reasonably safe
for the visit. Where the owner or proprietor of
a trtore expressly or by implication invites oth-
ers to come into the store, if he permits any-
thing of a dangerous character to exist therein
whidi results in injury to one availing herself of
tiie invitation, and who at the same time is ex-
erdsing ordinary care, such owner or proprietor
!• answerable for the consequence."
[2] In determining the correctneaa of this
prayer we must not only consider the part to
which objection is made, bat in connectl<Hi
with it we must also consider the conceded
portion of the prayer as well as the other
granted prayers In the case in respect to the
evidence offered.
[3] Itmlgbtbesaidof the part of the prayer
objected to, if standing alone, that it ig-
nores the necessity of finding negligence on
the jmrt of the defendants, and permits the
plaintiff to recover, though such negligence
be not shown, but the necessity for such
finding we think is sufficiently shown by the
prayer as a whole, when the part objected to
is considered in connection with the earlier
part of the prayer; and we think the neces-
sity for so finding would be so understood by
the Jury. That such was the meaning of the
prayer is further shown by the instruction of
the court contained in the defendants' tliird
prayer, where the Jury were instructed that:
The plaintiff was "not entitled to recover in
this case until they are satisfied from the evi-
dence that the defendants Hochschild, Kohn &
Co. failed to exerdse due care to provide for
the use of their customers a revolving door in
such condition at the time of the accident that
it conld be used with reasonable safety by per-
sons using reasonable care."
The prayer states that liability attached to
the defendant "if he permits anything of a
dangerous character to exist therein which
results In Injury to one availing herself of the
invitation," etc., but it is shown by the rec-
ord that the evidence of negligence is confined
solely to the defective door. No other thing
of a dangerous character was mentioned or
referred to. Qi!herefore it was only to the
defective door tliat the minds of the Jurors
could have been directed.
The plaintiff's fourth prayer was the nsual
damage prayer In cases of this character and
was properly granted.
[4] The court's ruling upon the first excep-
tion to the evidence was correct, as the ex-
ception came too late, and we find no error
in its ruling on the second exception. The
third, fourth, fifth, and sixth were to the re-
fusal of the court to admit testimony offered
by the defendants that there were no revolv-
ing doors in general use so constructed that
a person using it could not be knocked off
his feet by another coming behind him and
pushing with violence against one of the par-
titions of the door. The negligence charged
against the defendants was that they negli-
gently failed to maintain the door in a rea-
sonably safe condition for the use of their
customers, exercising reasonable care. There
was no evidence whatever that the fall of the
plaintiff resulting in the Injury complained of
was caused by any one passing tlirough the
door behind her and pushing one of the parti-
tions of the door, and we fail to see how the
fact sought to be proved under these excep-
tions could in any way properly aid in decid-
ing the issues presented, but such fact, we
think, would be entirely foreign to the issue,
and one that should not have been admitted ;
consequently the court was right, in our opin-
ion. In excluding this testimony.
As we find no errors committed by the court
in its rulings, the Judgment below will be
affirmed.
Judgment affirmed, with costs to the ap-
pellee.
STATE T. SHAPIRO.
031 Ud. 168)
(No. 37.)
(Court of Appeals of Maryland. June 27, 1917.)
1. Licenses ®=»7(7) — Arbitbart akd Uk-
BQUAL Tax— "Occupation Tax."
Laws 1916, c. 704, § 172, requiring junk
dealers lo take out an annual license, is not in
violation of Bill of Rights, art. 15, providing
that every person ought to contribute his pro-
portion of public taxes according to his actual
'or atlwr caaen Ma nmt t<vio and KBT-NVIIBBR la all Ke7-Numb«rsd Dlgeits and IndexM
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704
101 ATLAXXIC REPORTER
(Md.
worth in property; it being a tax upon an occu'
pation.
[FM. Note.— For otlier definitions, see Words
and Phrases, First and Second Series, Occapa-
tion Tax.]
2. Constitutional Law ®=>226(1), 25*— Due
Pbocess of XiAw— Equal Pbotection of thb
Law.
The Legislature has the right to make sepa-
rate and different provisions for distinct classes
and areas in the enactment of its license laws,
and the exercise of such power does not conflict
with the constitutional rights to the equal pro-
tection of the laws, or to due process of law,
if the regulations operate equal!;, and the limi-
tations are not clearly unreasonable.
3. LlCKNSES €=3T(5)--JUNK DzAt.EB'a LlOKNBB
— Reasonabueness— Pbesumption.
Laws 1916, c. 704, ^ 172, basing license fees
for the pri\-ilege of dealing in junk upon popula-
tion of the city or county where conducted, is
based upon an accepted theory of classification,
and will be presumed to be reasonable, in the ab-
sence of conclusive proof to the contrary.
4. Licenses €=>7(9)— Junk Deaixb'b Licbnsx
— Fees — Reasonableness.
Laws 1016, c. 704, § 172, is a revenue meas-
ure not purporting to have any relation to the
police power ; and where there is no evidence
that fees imposed upon junk dealers are exces-
sive, they will be presumed to be fair and rea-
sonable.
6. EviDE\<K <&=>20(1)— Statutes <S=>47— Un-
CEBTAiNTY— "Junk Dealbb."
Laws 1916, c. 704, g 17^ imposing a license
tax upon junk dealers, is not void for uncertain-
ty, although the term "junk dealer" is not defin-
ed, as the nature of the business is commonly
known, and may be judicially noticed; a "junk
dealer" being a person engaged in buying and
selling old iron or other metals, glass, paper,
cordage, or other waste or discarded material
<citing Words and Phrases, Junk).
Appeal from Criminal Court of Baltimore
City ; James P. Gorter, Judge.
"To be officially reported."
Jacob 8. Shapiro was Indicted for dealing
in Junk without flrst having obtained a li-
cense. From a judgment discharging defend-
ant, after his demurrer to the Indictment had
been sustained, the State appeals. Reversed,
with costs, and new trial awarded.
Argued before BOYD, C. J., and BRIS-
COE, BURKE, THOMAS, PATTISON, URN-
ER, and STOOKBRIDtiE JX
Philip B. Perlman, of Baltimore, and Al-
bert C. Ritchie, Atty. Gen. (William F. Broen-
ing, State's Atty., Lindsay C. Spencer, Asst.
State's Atty., both of Baltimore, on the brief),
for the State. Henry M. Slegel, of Balti-
more (Siegel & Slegel, of Baltimore, on the
brief), for appellee.
URNER, J. The indictment in this case
charges the defendant with unlawfully deal-
ing in Juuk In Baltimore City without flrst
Caking out a license therefor as required by
law. The statute alleged to be violated is the
Act of 1016 (chapter 704, { 172), which, under
the caption, "Junk Dealers," provides as fol-
lows:
"Each person, firm or corporation dealing in
iunk within this state shall pay for the privilege
of conducting such business by first taking out
an annual license therefor, for ntcfa plape of
business and paying the following license fee,
namely: In cities or counties of 50,000 inhabi-
tants or over, each, per annum, $30.00; in cities
or counties of 10,000 to 50,000 inhabitants, each,
per annum, $20.00 ; in cities or counties of 5,000
to 10,000 inhabitants, each, per annum, $10.00:
in Baltimore City, $250.00?
By a later section of the act a fine of $100
is directed to be imposed for the failure of
one engag^ed in the business to procure the
requisite license.
A demurrer to the Indictment disputes tbe
validity of the statute on the following
grounds: (1) That it violates the Fourteentli
Amendment of the federal Constitution, by
attempting an exercise of taxing power which
unjustly, arbitrarily, and unreasonably dis-
criminates against the defendant and all oth-
ers similarly engaged in business In Balti-
more City and in favor of other persons lo-
cated elsewhere In the state, and which de-
prives the defendant and others in like sit-
uation of their liberty, property, and busi-
ness without due process of law, and denies
them also the equal protection of the law.
(2) That the act violates the Constitution of
Maryland for the reasons just stated, and al-
so because the license required to be obtained
by the defendant for his business In Balti-
more City is an arbitrary and unequal tax
imposed contrary to the fifteenth article of
the Bill of Rights, and is not a lawful exer-
cise of the police power. (3) That the license
fee attempted to be levied upon the defend-
ant is an abuse of the police power of the
state, in that It is manifestly in excess of
any legitimate charge for supervision or reg-
ulation of the business tn which the defend-
ant is engaged. (4) That there is no defini-
tion of the term "junk dealer" in the act,
and no fixed or certain popular meaning of
the term, and hence the act is void for un-
certainty.
The appeal is by the state, and is from a
judgment discharging the defendant, after
his demurrer to tbe indictment had been sus-
tained.
[1] Tbe license fee required by the act of
1916 to t>e paid by a dealer in Junk "for the
privilege of conducting such business" is a
tax imposed upon an occupation. It Is not
a property tax to which the equality provi-
slon of article 15 of the Bill of Rlgbta ai>-
piles. It belongs to the class of taxes whlcb
that article i)ermlts to be "laid with a politi-
cal view for the good government and bene-
fit of the community." Ruggles v. State, 120
Md. 662, 87 AU. 1080; State v. Applegartta,
81 Md. 300, 31 Atl. 901, 28 Ll R. A. 812;
Rohr T. Gray, 80 Md. 276, 30 Atl. 632.
[2] The Legislature is under no constitu-
tional obligation, either federal or state, to
observe a definite rule of uniformity in the
enactment of its license laws. It is not re-
quired to establish the same license system
and regulations for all the interests and po-
litical divisions over which its authority ex-
^saVot other ease* saa sam* tople and KBY-MUMBKH in all K«f -Numbered OlgesU and Indues
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STATE T. SHAPIRO
705
tends. It has the right to make separate and
different provisions for distinct classes and
areas. The exercise of snch imwer does not
conflict with the constitutional right to the
equal protection of the laws, or to due pro-
cess of law, it the prescribed regulations op-
erate equally and uniformly upon the class
and within the area affected, and their limi-
tations are not clearly unreasonable. These
principles have been firmly settled by the de-
cisions. Ikfagoun T. Illinois Trust Co., ITO U.
S. 283, 18 Sup. Ct 594, 42 L. Ed. 1037;
Budd V. New York, 143 U. S. 617, 12 Sup. Ct
468, 36 L. Ed. 247; BarUer y. Connolly, U3
U. S. 27, 5 Sup. Ct 357, 28 K Ed. 923 ; Hol-
den V. Hardy, 169 D. S. 395, 18 Sup. Ct 383,
42 L. Ed. 780; German Alliance Ins. Oo. v.
Hale, 219 D. S. 307, 31 Sup. Ct 246, 55 Ia
Ed. 229; Bowman v. Lewis, 101 U. S. 22,
25 L. Ed. 989; L'Hote v. New Orleans, 177
U. S. 687, 20 Sup. Ct 788, 44 L, Ed. 899;
Bleld ▼. Barber Asphalt Co., 194 U. S.
618, 24 Sup. Ct 784, 48 L. Ed. 1142; Xtan-
can y. Missouri, 152 U. S. 377, 14 Sup. Ct
570, 38 L. Ed. 485; Amer. Coal Co. y. AUe-
sany Co., 128 Md. 664, 98 Atl. 143; Mt Ver-
non Go. y. Frankfort Co., Ill Md. 561, 76
Atl. 106, 134 Am. St Bep. 636 ; Clark y. Har-
ford Agr. Ass'u, 118 Md. 608, 85 AtL 603;
CrlsweU y. State, 126 Md. 103, 94 AtL 549;
Sweden v. State, 122 Md. 634, 90 Atl. 180;
State y. Broadbelt, 89 Md. 565, 43 AU. 771,
45 U R. A. 433, 73 Am. St Rep. 201; Bug-
gies y. State, 120 Md. 661, 87 AtL 1080.
[3] The statute here in question provides
different rates of license fees for the privi-
lege of dealing in Junk, according to the pop-
ulation of the county or dty where the busi-
ness is being conducted. In Baltimore City,
In which approximately one-half of the tn-
babltants of the state reside, the rate is $250,
while it ranges from $10 to $30 in the coun-
ties and other cities with their much smaller
popnlatlons. There is nothing In the terms
of the act, or in the record, to reflect upon
the propriety of such a provision. It is in
fiict based upon an accepted theory of classi-
fication for license purposes. Commonwealth
y. Danzlger, 176 Mass. 290, 57 N. E. 461;
Douglas v. People, 225 IlL 536, 80 N. E. 341,
8 I<. R. A. (N. S.) 1116, 116 Am. St Bep. 162.
It must be presumed to be reasonable, in the
absence of clear and conclusive indications
to the contrary. Bachtel v. Wilson, 204 U.
S. 86, 27 Sup. Ct 243, 61 L. £)d. 357 ; Holden
V. Hardy, supra; Mt Vernon Co. v. Frank-
port Co., supra; Ruggles v. iState, supra.
Provision might have been made by inde-
pendent local laws for the licensing of Junk
dealers in one or more of the political subdi-
visions of the state. Ttio courts would not be
Justified in declaring such statutes invalid
merely because they were of local application
or divergent in their terms. If this were a
proper ground upon which to defeat an act of
assembly, the validity of much important lo-
cal legislation might be successfully disputed.
101 A.— 46
As this court had occasion to say In Stevens
v. State, 89 Md. 674, 43 Atl. 931:
"It has long been the policy of the state of
Maryland to enact local laws affecting only cer-
tain counties, or to exempt particular counties
or localities from the operation of general laws."
This policy is not prohibited by any pro-
vision of the Constitution of Maryland or of
the United States. The fact, therefore, that
the statute now being considered does not af-
fect alike all the counties and cities to which
it applies, is not a sufficient reason for de-
claring it invalid.
[4] The contention that the annual fee re-
quired to be paid by Junk dealers in Balti-
more City is unreasonahle and excessive rests
largely upon the theory that it is imposed in
the effort to raise revenue under the guise of
an exertion of the police power of the state,
and that the amount of the fee is far beyond
the legitimate costs incident to the regulation
of the business. It is also urged that the
law is unfair and arbitrary, because it makes
no distinction in reference to the volume ot
the business conducted by the licensees. The
license provision under inquiry is plainly a
revenue measure. It Is enacted and codified
under the head of "Traders' Licensee." It
does not purport to have any relation to the
police power, although in determining the
amount of the fees to be paid by Junk deal-
ers the Legislature may properly have taken
into consideration the fact that the business
Is an appropriate object of police supervision,
especially in a large city, because of the op-
portunities It often affords for the disposi-
tion of stolen property. Duluth y. Bloom,
65 Minn. 101, 56 N. W. 580, 21 L. B. A. 689;
PeoiAe V. Rosenthal, 197 N. T. 304, 00 N. E.
991, 46 L. R. A. (N. S.) 31; City of Chicago
y. LowenthaL 242 lU. 401, 90 N. E. 287; a^
of Grand Rapids y. Braudy, 105 Mich. 670,
64 N. W. 29, 32 L. B. A. 116, 66 Am. St Rep.
472; Marmet y. State, 45 OMo St 63, 12 N.
E. 463. The court has no right to assume
that these particular license charges speclUed
in the act before us a^e unreasonable exac-
tions. Then is no evidence in the record up-
on which we can base such a conclusion.
Every presumption is to be made in support
of the theory that the General Assembly has
validly and properly exercised its powers.
It was possessed of full constitutional author-
ity to legislate upon the subject of occupation
taxes, and its action reflects Its Judgment that
the fees imposed in this instance are fair and
reasonable. Its decision of that question will
be upheld by the courts, in the absence of
clear and convincing proof that the charges
are in fact exorbitant and oppressive. Leser
V. Wagner, 120 Md. 677, 87 Atl. 1040. The
cases of Vansant v. Harlem Stage Co., 59
Md. 336, and State v. Rowe, 72 Md. 648, 20
Atl. 179, dted by the appellee, were not con-
cerned with the validity of legislative acts,
but with questions as to the right of a munici-
pality to raise revenue under a charter power
to license and regulate. This distinction was
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706
101 ATLAMTIO REPORTEB
(Md.
noted In the case of State ▼. Applegarth, 81
Md. 300. 31 Atl. 961, 28 L. R. A. 812.
[I] There Is no force in the contention that
the act Is void as to the requirement of a
license for "Junk dealers" because the mean-
ing of that term Is left indefinite and uncer-
tain. The business of dealing In junk Is a
distinct and recognized branch of commercial
enterprise. Its nature and incidents are
commonly known and may be Judldally no-
ticed. A Junk dealer Is one who is engaged
In the business of buying and selling junk,
which is defined to be:
"Old iron, or other metal, glass, paper, cord-
age, or other waste or discarded material, which
may be treated or prepared so as to be used
again in some form.^ Webster's New Interna-
tional Dictionary: Century Dictionary: 4
Words & Phrases, 3874; Commonwealth t. Kin-
gold, 182 Mass. 309, 65 N. B. 374 : City of Du-
Inth V. Bloom, 56 Minn. 97, 66 N. W. 680, 21 L.
R.A.689.
It was not necessary that the provision
as to this class of licenses should hare more
spedflcally defined the business to which It Is
Intended to apply.
None of the objections urged by the appel-
lee against the validity of the license law
under whldi he is Indicted are In our judg-
ment sustainable, and we must accordingly
bold that the demurrer should have been
overruled.
Judgment reversed, with costs, and new
trial awarded.
(in Md. 21S)
LANG et aL t. WILMBR. (Na 83.)
(Court of Appeals of Maryland. June 28, 1917.)
1. Husband and Wm «s»14(2)— Tenants bt
Entibftt.
If realty was conveyed by a third person
to husband and wife jointly, the habendum of
the deed indicating that the survivor should
take, husband and wife held the property as ten-
ants by the entireties.
2. Deeds ®=>93— Intention or Gbantob.
The intention of the grantor of a deed should
prevail unless in conflict with some settled rule
of law.
8. Executors and Aduinistkatobs $=33&—
Assets of Estate— Leasehold Pbofebty.
On the death of the owner of leasehold prop-
erty, the estate devolves upon his personal rep-
le&eutatives.
4. Judoment <g=»S70(4)— Death or Judoment
Debtob — Reviviho Judgment Against
Land.
Where defendant in a judgment dies, a sciro
facias may be sued out to revive the Judgment
against the adminigtrator alone to bind the as-
sets in his bands; but where it is desired to
revive the judgment against the land of the
deceased judgment debtor, the scire facias should
also issue against the heirs and terre-tenants.
5. Judgment <g=>870(4)— Revival or Judg-
ment Against Land — Party.
The estate a wife acquired under a deed
from her husband to himself and her was not
subject to the lien of a judgment against tho
husband, and after his death she was not, as
to her interest in the land, a proper ijarty to
scire facias to revive the Judgment against tho
land, and her title was not affected by judg-
ment of fiat.
6. Judgment «S9870(1)— RsvivAir-DECEASED
Judgment Debtob s Next of Kin— De-
scription or Pbopebtt.
Scire facias against a deceased judgment
debtor's next of kin as terre-tenants to revive
the judgment against them is a proceeding in
rem, and the judgment of fiat (Stained is not a
personal judgment against them, but one sub-
jecting the property in their possession, so that
the proceedings must specifically describe the
property.
7. Executors and Administkatobs ®=>17(6>
— Right to Appointmbnt^-Creditobs.
By Code Pub. Gen. Laws 1904, art. 93, |
30, on failure of those first entitled to adminis-
tration to apply for letters, administration may
be granted by the orphans' court to the largest
creditor applying.
8. Limitation of Actions 9=>43, 83(2)— Stat-
ute OF LiMriATioNs— Judgments.
The statute of limitations begins to run as
to judgments from the date of the judgm«it, and
is not suspended by death of the judgment debt-
or or neglect of those entitled to obtain admin-
istration.
Appeal from Circuit Court of Baltimore
City; H. Arthur Stump, Judge.
"To be officially reported."
Suit by Edwin M. Wilmer against Charles
F. Lang and others. From an order over-
ruling their demurrer, Charles F. Long and
two other defendants appeal. Decree revers-
ed, and bill dismissed as to appellants.
Argued before BOYD, C. J., and BRIS-
COE, BURKE, THOMAS, PATTISON, URK-
ER, and STOCKBRIDOE, J J.
William Li, Stuckert, of Baltimore, for
appellanta David Asb, of Baltimore, for ap-
pellee.
THOMAS, J. The bill of complaint in this
case, which was filed by the appellee, "in his
own right and on behalf of aU creditors of
the respective defendants who may come la
and share the costs of this cause," against
the appellants, Charles F. Lang and Uenil-
etta y. Lang, bis wife, Albert Lang, August
Lang, and the Ninth West Colombia Building
Association of Baltimore City, alleges: (1)
That the appellee obtained a judgment by
confession against Charles Lang for the sum
of 4<69.97 and costs, with Interest from May
31, 1901, w4ilch was duly recorded on June 2,
1901, in the superior court of Baltimore dty.
(2) "That (m or about the 3d day of Novem-
ber, 1890, a conveyance was recorded among
the land records of Baltimore city, in the
ofllce of the superior court, in Liber J B, No.
1317, folio 100, etc., of a certain leasehold
property known as No. 764 St Peters street,
from Charles Lang, grantor, to Charles Lang
and Maria Lang, his wife, grantees, said
conveyance containing these words, 'grants
unto Charles Lang and Maria Lang, his wife.
their personal representatives and assigns,
* * * to have and to hold the said de-
scribed lot of ground and premises unto and
to the use of said Charles Lang and Maria
Lang, his wife, and unto the survivor's per-
sonal representatives and assigns.' " (3)
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LANO y. WIL.MEB
707
That Charles Lang died Intestate on the 7th
of September, 1906, "leaving no real or lease-
bold property or Interest In other than his
Interest in the property referred to In para-
graph 2"; that his said widow and his next
of kin "defaulted as to an administration"
on Charles Lang's estate, but that Maria
Lang assumed possession of the "entire es-
tate" In the leasehold property. No. 764 St
Peters street, as her own property, and so
dealt with it as stated In paragraph 4 of
the bill. (4) That immediately prior to the
death of Maria Lang, on September 23, 1907,
she attempted to convey the property, by
deed dated the 19th of September, 1907, and
duly recorded among the land records, etc.,
to her son, Charles F. Lang, and Henrietta
V. Lang, his wife, "by the entireties." (5)
That on September 19, 1907, Charles F. Lang
and his wife executed a mortgage of said
leasehold property, which was duly recorded,
to the Ninth West Columbia Building Asso-
ciation of Baltimore city to secure the pay-
ment of $800. (6) That the plaintiff is ad-
vised that the conveyance to Charles Lang
and Maria Lang, his wife, "passed nothing,
or. If anything at all, only an undetermined
moiety Interest in said leasehold property to
Maria Lang, and not a survivorship in the
whole property, which, according to the terms
of said conveyance, gives the said leasehold
property to the 'survivor's personal repre-
sentatives and assigns.' " (7) That he, the
plaintiff, on the 8th of February, 1907, "recov-
ered a Judgment fiat executlo," on bis said
Judgment, "against Maria Lang, Albert Lang,
and Charles F. Lang, personal representa-
tlves of Charles Lang, deceased, and said
Judgment flat was duly recorded on or about
the 9th of April, 1907, in the superior court
of Baltimore city." ©) That, so far as the
plaintiff knows, the surviving children of
Charles Lang and Maria Lang are Charles
F. Lang, Albert Lang, and August Lang.
(10) "That your orator Is a Judgment flat
creditor of said Maria Lang, now deceased,
and of Charles F. Lang and Albert Lang, as
aforesaid; and that he is a judgment flat
creditor of August Lang in the sum of $13.05,
with interest from the 20th day of April, 1903,
and costs $2.60, and counsel fee of $10, with
waiver of all exemption and other laws,
which Judgment has been duly recorded in
the superior court of Baltimore city, in Mag-
istrate's Judgment Records, Liber S C li, No.
71, folio 550, etc.; and that he is also a Judg-
ment creditor of Henrietta V. Lang, the wife
of Oiarles F. Lang, in the sum of $32.49,
with interest from September 29, 1908, and
costs $4.23, and 25 cents recording fees, duly
recorded in the superior court of Baltimore
dty, in Magistrate's Judgment Records, Liber
SOL, No. 62, folio 306," etc. (11) "That
j-our orator's respective judgment liens afore-
said are liens upon the estate of Charles
riang, deceased, in the said leasehold proper-
ty No. 764 St. Peters street, as well as liens
upon any part or share of said property
claimed by or otherwise distributable to any
of said judgment debtors aforesaid." (12)
That the plaintiff is without an adequate
remedy at law.
The bill prayed the court (1) to decree that
said leasehold property. No. 764 St Peters
street, "is subject to the liens of the respec-
tive Judgment debts of said respective per-
sons, due to your orator, and to other credi-
tors who may come Into this cause, as afore-
said, by the priorities." (2) "That the afore-
said deed of conveyance from Charles Lang
to himself and Maria Lang, his wife, be de<
creed to be null, void, and of no effect to
pass a Joint estate nor an estate by entire-
ties." (3) That the deed of said property
from Maria Lang to Charles F. Lang and
Henrietta V. Lang, his wife, be decreed to
be null and void. (4) That the mortgage to
the Building Association be declared void,
except as to the share or interest of Charles
F. Lang in said leasehold property. (5) That
the "court take Jurisdiction of said leasehold
property, • • • and appoint a trustee to
sell" the same, "and that the proceeds be dis-
tributed under the direction of the court, to
such persons as may be entitled thereto."
Charles F. Lang and Henrietta V. Lang, his
wife, and the Building Association demurred
to the bill on the following grounds: (1) That
the plaintiff had not stated such a case as
entitled blm to any relief against them; (2)
that the plaintiff had an adequate remedy at
law ; and (3) that the Judgments referred to
in the bill were barred by the statute of
limitations. This appeal Is from the order of
the court below overruling the demurrer.
The averments of the bill are very indefi-
nite, but anmrently the theory upon which
the bill was filed is that the deed of Novem-
ber 3, 1890, from Charles Lang to Charles
Lang and Maria Lang, bis wife, was either
totally void, or was only effective to convey
to Maria Lang an undivided one-half Inter-
est in the prc^erty mentioned.
[1] The deed Is not s4t out in full In the
bill or filed as an exhibit, but. Judging from
the part of the premises and the habendum
quoted In the bill, it is clear that if the prop-
erty had been so conveyed by a third person
to Charles Lang and Henrietta V. Lang, his
wife, the grantees would have held the prop-
erty as tenants by the entireties, not only be-
cause the conveyance was to them Jointly,
but because the habendum clearly indicates
that the survivor was to take. Craft v. Wil-
cox, 4 Gill, 504; Marburg v. Cole, 40 Md.
402, 33 Am. Rep. 266; Fladnng t. Rose, 68
Md. 13.
It is said in 13 Cyc. 627:
"A person cannot convey to himself aloneu
and if be makes a conveyance to himself and
others tho latter only will take as joint tenants."
In support of the text the author cites
Cameron v. Steves, 9 New Brunsw. 141. The
same case is referred to in note 1, p. 109, oC
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708
101 ATIiANTIO REPORTBE
(Md.
vol. 9 Am. & Eng. Ency. of Law, where It Is
said:
"In Cameron T. Steves, 9 New Bning. 141, It
was held that a man cannot convey land to
himself, and therefore a deed from A. to B., C,
and himself, and their heirs, bein^; inoperative
aa to A., vested the whole estate in B. and C.
as joint tenants. Delivering the opinion of the
Court, Cater, C. J., said: It is laid down in
Perkins that a feoffment, with livery from A. to
A. and B., vcata the whole estate in B., for A.
could not make livery to himself; therefore, by
virtue of the livery to B., he became enfeoffed of
the whole. The reason of this cose would not
■eem to apply equally to statutory conveyances
where no livery is required, and it may be doubt-
ed whether a man could enfeoff another of an
undivided share of an estate to be held with the
feoffer. But there ia another principle which
would seem applicable to this case, under which
the whole estate would vest in Cameron and
Marshall. In Sheppard's Touchstone (a bodt of
very high authority), at page 82, it is laid down:
If a deed be made to one that is incapable, and
to others that are capable, in this case it shall
inure only to him that is capable. (And if they
were to be joint tenants, the person who is
capable shall take the wholo; but if they were
to be tenants in common, he shall have only
his particular share.)' "
In the case of Bassett t. Endlong, T7 Midi.
838, 48 N. W. 984, 18 Am. St Bep. 404, which
was an action of ejectment to recover cer-
tain lands, William H. Bndlong, the owner
of the fee In the property, executeld and de-
livered to his wife, Annette Budlong, a qnlt-
claim deed, by which he purported to convey
the property to her, ber heirs and assigns,
forever. Following the habendum clauae of
the deed was the following proviso :
"Provided always, and this indenture is made
(in all respects) upon these express conditiona
and reservations, that is to say: (1) It is re-
served that said party of the second part shall
not, at any time during the lifetime of the said
party of too first part, convey to any person or
persons, by deed, mortgage, or otherwise, the
whole or any part of the said premises, aa above
described, without the written assent of the said
party of the first part or his joining in such
conveyance. (2) It is further reserved that in
case of the decease or death of the said Annette
Budlong, party of the second part, at any time
before tbe decease or death of the said William
B. Budlong, party of the first part, than in such
case, and npon such fiecease, the said premises,
as above described, with all and singular here-
ditaments and appurtenances thereunto bdong-
ing or in any way appertaining, shall forthwith,
npon sach decease, revert back nnto the aaid
William H. Budlong, of the first part, and to his
assigns, forever."
Budlong's wife Oled In April, 1886, and he
died In Jnne of the same year. Previous to
his death he devised the land so conveyed to
Bertha M. Bndlong; and Bassett, a brother,
and Beeman, a nephew, of Annette Budlong,
ber only heirs at law brought the snlt The
circuit court held that the plaintiffs were en-
titled to recover, but the Michigan Supreme
Court reversed the judgment, and in the
course of Its opinion said :
"ESvoiy deed or contract in writing is suppos-
ed to express the intention of the parties exe-
cuting it, and when the object or purpose of such
deed or contract i« called in question in a court
of justice, the first inquiry is. What is the in-
tention of the parties as expressed in the writ-
ten instrument? It is very plain, upon the face
of the instrument, that Mr. Budlong did not in-
tend to convey to his wife the title to the prem-
ises in fee simple absolute. She was precluded
from conveying in any manner the premises
described without his written assent or joining
in the conveyance; and if she died before he
did, she was to have no further interest in the
land. If he died before she did, then the title
in fee simple absolute should pass and become
vested. Such is the apparent intention of the
parties as expressed in the deed. It is the duty
of the court to so construe the instrument as
to carry out the intent of the parties making it,
if no legal obstacle lies In the way. • • • We
do not think it is necessary to rosort to the
surrounding facts and circumstances in order
to discover the intent of the parties. If, how-
ever, we look to the surrounding facts and cir-
cumstances, we find them all affording evidence
of the intent expressed in the instrument.
* * * When it is considered that he was a
farmer and a householdor, and continued bis
residence upon the premises until his deatii, and
retained the use and enjoyment of his personal
property, it is evident that, by executing the
deed to his wife, he did not mtend to part with
the title to his real estate, unless the contingency
should occur of his dying before his wife died.
That event did not occur, and the estate never
vested in his wife. The condition in the deed
that his wife should not convoy or mortgage
the land without his written assent or joining
in the deed is a dear indication that the title
should not pass, because if it was the intention
that it should pass, and the estate vest in his
wife, the condition would be nugatory, and no
force or effect be given to this part of the in-
strument. To hold that the title did pass by
the absolute words of the granting clauses would
violate that rule of construction which requires
that every portion of the instrument should be
given effect according to the intention of the
parties. When we consider the intimate relation
of the parties to the instrument — that of hus-
band and wife— the effect of the arrangement
entered into was that the title of the real estate
should, in the event of the death of either, go
to the survivor. Doubtless a simpler way to ac-
complish the object would have been for them
to have united in a deed to a third party, and
for him to have conveyed to them jointly, and
then, under tho statute, the survivor would have
succeeded to the whole title and estate."
In the case of Pegg r. Pegg, 166 Mich. 228,
180 N. W. 617, 83 L. R. A. (N. 8.) 168, Ann.
Cas. 1912C, 926, Davis Pegg conveyed to his
wife, Mary C. Pegg, "an undivided one-half
interest" in and to two parcels of land. In
the deed, between the granting and haben-
dum clauses, there waa Inserted the follow-
ing clause:
"The object and purpose of this deed ia to
convey to said second party such an interest in
said land that the parties hereto will have an
estate in entirety, and that the same shall sur-
vive and vest in the survivor as the full and com-
plete estate."
Davis Pegg died, and his wife claimed the
property on the theory that she and her hus-
band owned it aa tenants by the entirety,
while the children and grandchildren of Da-
vis Pegg insisted that the grantor and gran-
tee were tenants In common, and that upon
the death of Davis Pegg hia oue-lialf Interest
in the property descended to them. In dl»-
poelng of the case the Mictiigan Supreme
Court said:
"Davis Peg^ conveyed an undivided one-halt
interest in said premises to complainant. He
retained an undivided one-half interest therein.
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LANG T. WILMER
709
After this was done, they had distinct titles, and
were therefore tenants in common. The title
remained that way until Davis Pegg died. The
qaestion is, then. What became of his undivided
half? Ordinarily it would descend to his heirs,
the defendants, and it did so descend, unless
the clause which was inserted carried it in a
different direction. Complainant contends that
it did not BO descend,- because edie and her hus-
band owned the premises as tenants by the en-
tirety, and were made such by said deed, and
that now, as survivor of her husband, she is en-
titled to the whole of said pronises. In order
to own the whole, as survivor, she would have
to be seised of the whole before his death.
Whatever vested in her as survivor must have
been owned by both her and her husband before
his death, and each must have been seised of
the whole. As neither one • * * was seised
of the whole, but both held by distinct titles,
they could not have been tenants by the entire-
ty. Neither were they tenants by entirety of
tne undivided half conveyed to her, because Da-
vis P%g reserved no interest in the undivided
half he conveyed to the complainant. The deed
as a whole cannot be construed as creating a
tenancy by entirety, because the law was not
followed in creating it. At the common law,
the unities of time, title, interest, and possession
had to be observed in creating such an estate.
• * * The common law has remained un-
changed in this respect, and is now in force.
In the attempt to create an estate by entirety,
in the case under conedderation, neither the
tmity of time nor title was observed. The estate
was not created by one and the same act;
neither did it vest in them at one and the same
time. If the clause inserted can be said to
be a part of the habendum of the deed, as is
argued, then that part of the habendum must
la3, on the ground that it seeks to enlarge an
estate in common, which is granted, into an
estate of entirety, without complying with the
rules of law for the creation of sudi an estat^
By reason of these considerations, the deed
must be read as though the 'clause' had been
omitted. The deed created a tenancy in com-
mon between complainant and husband, and
vpoD his decease his undivided one-halt of the
premises descended to his heirs."
Tte dedslan In Pegg ▼. Pegg Is critlclaed
In the editor's note, and he cites McRoberts
V. Ch^peland, 86 Tenn. 211, 2 S. W. 33, as
holding that where a husband conveys prop-
erty, and in the habendum reserves a life
estate to himself and his wife, the life estate
Inures npon the death of the grantor to the
survivor. But It Is apparent that the con-
trolling feature of Pegg v. Pegg was that the
grant to the wife was only of an undivided
one-half interest In the property, which made
the wife a tenant In conuuon, and which the
court hdd could not be enlarged by the sub-
sequent clause of the deed. Neither the
husband or wife was seised of the whole.
In the case at bar the conveyance was not
In terms of an undivided one-half interest
in the property, but a grant of the entire es-
tate to husband and wife, "their personal
representatives and assigns," and there Is no
conflict between the granting and the haben-
dum clauses of the deed.
[2] The Intoitlon of the grantor that the
whole estate should vest In the survivor Is
manifest, and that li^ntlon should prevail
unless in conflict with some settled rule of
law. Georges Creek Co. v. Detmold, 1 Md.
23& Under the Code, a married woman
may hold pre^erty acquired by her after her
marriage as her separate estate, and a mar-
ried man may convey property directly to his
wife. Code, art 46, H 1. 4 ; Trader v. Lowe,
45 Md. 1, 14. As Charles Lang did not in-
tend to convey the estate to himself and
wife as tenants in common, under the prin-
ciple announced in Cameron v. Steves, Maria
Lang would take the whole property. On
the other hand, if, contrary to the express
intention of the parties, we construe the
deed as conveying to Maria Lang only an
undivided one-hatf interest in the property,
then, under the decision in Pegg v. Pegg,
Charles Lang and his wife held the prop-
orty as tenants in common, and upon his
death his Interest passed to his personal
representatives. If, as in McKoberts v.
Copeland, we treat the deed as creating a
new estate in both of the grantees, we not
only have the common-law unities of time,
title, etc., of a tenancy by entireties, but we
give effect to the clear Intention of the par-
ties that the whole estate should vest in the
survivor, his or ho: personal representatives
and assigns.
In this case, however, we do not find it nec-
essary to construe the deed in question. In
the demurrer the appellants rely npon the
statute of limitations. The judgment against
Charles Lang was recorded on the 22d of
June, 1901, and the bill of complaint in this
case was not filed until September 6, 1916.
[8] Upon the death of an owner of lease-
hold property, the estate devolves upon bis
personal representatives. Merryman v. Long,
49 Md. 540. The blU alleges that no letters
of administration upon the estate of Charles
Lang were taken out It further alleges
that on the 8th of February 1907, the plain-
tiff "recovered a Judgment of flat executio
* • • against Maria Lang, Albert Lang,
and Charles F. Lang, personal representa-
tivea of Charles Lang, deceased." If no let-
ters of administration were taken out, as
averred in the bill, Maria Lang, Albert Lang,
and Charles F. Lang could not have been
the personal representatives of the deceased.
[4] Where the defoidant in a Judgment
dies, a scire facias may be sued out to re-
vive the Judgment against the administra-
tor alone to bind the assets in his hands;
but where it is desired to revive the Judg-
ment against the land of the deceased Judg-
ment debtor, the scire facias should also
Issue against the heirs and terre-tenants.
2 Poe, P. 4 P. 8 593; Tiers v. Oodd, 87
Md. 447, 39 Atl. 1044. In Polk v. Pendleton,
31 Md. 118, C9»ief Judge Bartol said :
"Who are terre-tenants within the meaning
of the law, whom it is necessary to make par-
ties to the scire facias? All who are in pos-
session, deriving title under the judgment debt-
or, such as heirs, devisees, or alienees, after the
judgment They are in as of the estate of the
judgment debtor, and before the judgment can
be revived and enforced by execution against
the land, so as to divest their title, it is neces-
sary to warn them by the scire facias, so that
they may have an opportunity of making tlieir
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101 ATLANTIC REPORTER
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Jcfense, and of claiming contribution from oth-
ers holding lands of the judgment debtor, bound
by the judgment. • • • But where a party
is in possession, holding by title adverse to that
of the judgment debtor, or paramount to his,
such party is not a terre-tenant, within the
meaning of the law, because his rights are in
no manner affected by the judgment. If he
have a good title, the judgment does not bind
the land, nor can a sale under the execution
affect his interest. If be have not a good title,
then he would have no right to claim contribu-
tion by reason of the land being taken to satisfy
the judgment."
[5] The estate Maria Lang acquired under
the deed In question was not subject to the
Uen of the Judgment against Charles Lang,
and she was, therefore, as to snch Interest,
not a proi>er party to the sdre facias, and her
title under the deed was not affected by the
alleged judgment of flat. 2 Freeman on
Judgments (4th Ed.) { 448; Adams v. Stake,
67 Md. 447, 10 Atl. 444.
[1] Assuming that where a Judgment debt-
or dies leaving leasehold property, the Judg-
ment may be revived by a sdre facias
against his next of kin as terre-tenants with-
out making the administrator a party, the
sdre facias against tbem is a proceeding In
rem, and the Judgment obtained Is not
a personal Judgment against them, but one
subjecting the property In their possession,
which belonged to the Judgment debtor, to
the payment of the debt, and the proceedings
must therefore contain a spedflc description
of the property against which execution is
to be awarded by the Judgment of flat 2
Poe, P. & P. J 600; Thomas v. Bank, 46
Md. 57; Bish v. Wllllar, 59 Md. 382; Tiers
V. Codd, 87 Md. 447, 39 Atl. 1044 ; Wright v.
Ryland, 92 Md. 645, 48 Atl. 163, 49 .\tl. 1009.
53 L. R. A. 702. The bill does not allege
that the Judgment against Charles Lang
was revived by a Judgment of flat against
his next of kin or those who would be en-
titled to the property as distributees of his
estate, and It does not therefore appear
from the bill that the Judgment was revived
as a Hen against the property. On the con-
trary, the bUl alleges that he recovered a
Judgment of flat against Maria Lang, Charles
F. I^ng, and Albert Lang as the personal
representatives of the deceased.
As we have said, the bill avers that no
letters of administration were taken out.
We would not be Justified In holding that
the Judgment was revived against Maria
Lang and Charles F. Lang, as administra-
tors of Charles Lang, when the bill clear-
ly shows that they were not the administra-
tors of his estate. In Wilmer v. Trumbo,
121 Md. 445, 88 Atl. 259, this court held that
execution on a Judgment of flat against one
who had been proceeded against as the per-
sonal representative of the deceased Judg-
ment debtor, but who in fact was not the
personal representative of the deceased,
should be enjoined.
[7] Upon the failure of those first entitled
to administration to apply for letters, ad-
ministration may be granted by the or-
phans' court to the largest creditor apply-
ing for the same. Code, art 93, § 30.
[8] The statute of limitations begins to
run as to Judgments from the date of the
judgment, and is not suspended by the death
of the judgment debtor, or neglect of those
entitled to obtain administration upon his
estate. See Brooks v. Preston, 106 Md. 693,
68 Atl. 294, and cases dted in the opinion
of the court.
It follows from what has been said that
the demurrer interposed in the court below
by Charles P. Lang and Henrietta V. Lang,
hla wife, and the Building Assodation, the
appellants in this court should have been
sustained, and that the decree of the court
below must therefore be reversed.
Decree reversed, with costs, and bill dis-
missed as to the appellants, Charles F. Lang
and Henrietta V. Lang, his wife, and the
Ninth West Columbia Building Assodation
of Baltimore City.
(131 Hd. 265)
SOLVUOA V. RYAN ft BEILLX CO. (No. 46.)
(Court of Appeals of Maryland. June 28, 1917.)
1. Eminent Domain ®=>2(1) — Emploteb's
Compensation Act— Takino of Pbopkbtt
Without Compensation.
Employer's Compensation Act (Laws 1914,
c. 800) is not violative of Const art 3, g 40,
prohibiting the taking of property without just
compensation agreed upon or awarded by a jury.
2. JuBT «=>35(2)— Bmploteb's Compsnsatioit
Act— JuBT Trial.
Employer's Compensation Act is not viola-
tive of Const art 15, § 6, providing for a jury
trial of all issues of fact in civil proceedings, as
the act expressly provides for a jury trial on
appeals.
3. CoNSTiTUTiONAi. Law «=>80(2) — Master
ANO Sebvant ^=»347— Emploteb's Compen-
sation Aci^— JuDrciAL Powers.
Employer's Compensation Act is not viola-
tive of Const art 4, { 1, vesting the Judicial
power of the state in named courts, or article 8
of Declaration of Rights, declaring that th«
legislative, executive, and judicial powers of the
government ought to be forever separate and
distinct, as the act did not constitute the State
Industrial Accident Commission a court
Appeal from Baltimore Court of Common
Pleas; Morris A. Soper, Judge.
"To be offldally reported."
Suit by Antonl Solvuca against the Ryan
ft Rellly Company. Judgment for defend-
ant, and plaintiff appeals. Affirmed, with
costs.
See, also, 129 Md. 235, 98 AU. 675.
Argued before BOYD, C. J., and BRIS-
COE, BURKE, THOMAS, URNEB, STOCK-
BRIDGE, and CONSTABLE, JJ.
David Ash, of Baltimore, for appellant.
Edwin W. Wells, of Baltimore, and Albert
C. Ritchie, Atty. Gen., for appellee.
THOMAS, J. This suit was brought by
the appellant to recover for injuries recelv-
tS^»FoT otber cases see same tqpic and KEY-NUMBER in all Key-Numbered DlRests and Indexe*
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SOLVUCA T. KYAN A REILI.Y 00.
711
ed wbile in the employ of the appellee, and
charged In the declaration to have been caus-
ed by Its negligence. As we said In the first
appeal (129 Md. 235, 98 AU. 675), the narr..
on its face, presents a good cause of action,
but the defendant Interposed the following
plea:
"That in conformity with the proTiaions of
chapter 800 of the Acts of 1014, generally
known as the Employer's Compensation Act,
this defendant, the Ryan & Reilly Company, ex-
ercised the option of securing compensation for
its employes engaged in hazardons employments,
as provided in section 15 and subsection 3 of
said act; that by an order of the State Indus-
trial Accident Commission passed the 28th day
of January, 1015, and which continued in ef-
fect until the 15th day of January, 1916, this
defendant was permitted to carry its compensa-
tion risli as a self-insurer, having established
its financial ability to assume the payment of the
compensation required; that on the 20th day of
February, 1015, the date of the alleged injury
to the plaintiff in this cause, said order was in
^ect, and the defendant • • • had thereby
secured compensation to this employ^ who was
injured while in a hazardous employment, and
the defendant fully complied with the provi-
sions of the Compensation Act as provided by
section 16, subsection 3, of said act."
The plaintiff demurred to this plea. It Is
not suggested that the plea Is defective in
form, but the purpose of the demurrer was
to challenge the constitutionality of the act,
which, it is claimed, contravenes the Four-
teenth Amendment and article 7 of the Con-
stitution of the United States and the Dec-
laration of Bights and Constitution of this
state.
This act, commonly caUed the Workmen's
Compensation Act, declares In its preamble
that the state —
"recognizes that the prosecution of various in-
dnstrial enterprises which must be relied up-
on to create and preserve the wealth and pros-
perity of the state involves injury to large num-
bers of workmen, resulting in their partial or
total incapacity or death, and that under the
roles of tlie common law and the provisions of
the statutes now in force an unequal burden is
cast upon its citizens, and that in determining
the responsibility of the employer on account of
injuries sustained by his workmen, great and un-
necessary cost is now incurred in litigation,
which cost is ix>me by the workmen, the em-
ployers and the taxpayers, in part, in the main-
tenance of courts and juries to determine the
question of responsibility under the law as it
now exists; and, * * * in addition thereto,
the state and its taxpayers are subjected to a
heavy burden in providing care and support for
such Injured workmen and their dependents,
which burden should, in so far as may be con-
sistent with the rights and obligations of the
people of the state, be more fairly distributed as
in uis act provided;" and that "whereas, the
common-law system governing the remedy of
workmen against employers for injuries received
in extrahazardous work is inconsistent with
modem industrial conditions, and injuries in
such work, formerly occasional, have now be-
come frequent and inevitable": Therefore "the
state of Maryland, exercising herein its police
and sovereign power, declares that all phases
of extrahazardous employments be, and they are
hereby withdrawn for private controversy, and
sure and certain relief for workmen injured in
extrahazardous employments and their families
and dependents are hereby provided for, re-
gardless of questions of fault, and to the ex-
clusion of every other remedy, except as provid-
ed in this act."
The act creates a commission to Hdmlnis-
ter the law; authorizes it, for the purjxwe
contemplated by the act, to require the at-
tendance of witnesses and the production of
books, pay rolls, documents, and testimony,
and to apply to any Judge of the supreme
bench of Baltimore city, or of the drcnlt
court of any county, for a rule on any wit-
ness refusing to testify, or to produce a book
or paper, to show cause why he should not
be committed to Jail; to adopt reastmable
and proper rules to govern Its procedure;
and provides that the commission shall not
be bound by the usual common-law or stat^
ut<n:y rules of evidence, or by any technical
or formal rule of procedure, but may make
the investigation in such manner as In its
judgment is best calculated to ascertain the
substantial rights of the parties and to carry
out Justly the spirit of the act. The com-
missicMi Is required to make annually a re-
port to the Governor of the number of
awards made by it, the causes of the acci-
dents, and a detailed statement of its ex-
penses and of the condition of the state acd-
d'«it fund (therein provided for), together with
any other matter it may deem proper to re-
port Every employer is required to pay or
provide, as required by the act, compensa-
tion, according to the schedule contained
therein, "for the disability or death of hia
employe resulting from an accidental per-
8<Mial injury sustained by the employ^ aris-
ing out of and In the course of his employ-
ment, without regard to fault as a cause of
such injury, except where the injury is oc-
casioned by the wilful Intention" of the em-
ploy6 to bring about the injury or death of
himself or of others, or where the injury re-
sults solely from the intoxication of the em-
ploye while on duty. The liability prescribed
above is exclusive, provided that, If the em-
ployer shall fail to secure the payment of
compensation as provided in the act, an in-
jured employe, or his legal representatives
in case death results from the injury, "may,
at his option, elect to claim compensation"
under the act, or to maintain an action In
the courts for damages, in which action the
defendant shall not plead as a defense that
the injury was caused by the negligence of
a fellow servant or the negligence of the em-
ploye, or that the employe assumed the risk
of the employment. The employer is requir-
ed to secure the compensation provided by
the act (1) by insuring the payment of the
same in the state accident fund; (2) by Insur-
ing the payments in any stock corporation or
mutual association authorized to transact
the business of workmen's compensation in-
surance in the state; or, (3) if be does not
voluntarily adopt one of the above methods,
by furnishing the commission with satisfac-
tory proof of his ability to pay such com-
pensation, and depositing, when required to
do so, with the commission securities in an
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712
101 ATLANTIC REPORTER
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amount to be determined by the commission,
to secure bis liability. Proylslon Is made
for the cstabUshment of a fund called the
state accident fund, to Insure employers
against liability, and payment to employes
and tbelr dependents of the compensation
spedfled. A great number of employments
are specified as extrahazardous, and the act
Is made to apply to all other extrahazardous
employments. Compensation Is allowed for
temporary and permanent and for partial
and total disability according to the schedule
contained In the act, and provision Is made for
compensation to dependents where the injury
results In the death of the employ& An ap-
peal is allowed from the decision of the com-
mission to the circuit courts or the common-
law courts of Baltimore city by an employer,
employe, beneficiary, or person feeling ag-
grleyed by such decision; and provision is
made for trial by Jury in the courts of is-
sues of fact, and for the reversal or modifica-
tion by the court of the decision of the com-
mission, in accordance with the law and
facts, and for a further appeal from the
Judgment of the circuit court or common-law
covurt of Baltimore dty to this court
All of the questions raised by the demur-
rer, except the two to which we shall here-
after refer, are so fully covered by recent de-
cisions of the Supreme Court of the United
States, and by a recent decision of this court,
that it would be useless to undertake a far-
ther discussion of them here.
We have frequently said that "the law of
the land," in the Constitution of this state,
and "due process of law," in the Constitution
of the United States, mean the same thing.
Baltimore Belt R. R. Co. v. Baltzell, 76 Md.
94, 23 Atl. T4; Public 8. Com. v. N. O. Ry.
Co., 122 Md. 356, 90 Atl. 106. In the case of
New York Central R. B. Co. v. White, 243
U. S. 188, 37 Sup. Ct 247, 61 L. Ed. 667, de-
cided March 6, 1917, Mr. Justice Pitney, in
delivering the opinion of the Supreme Court,
after reviewing the provisions of the Work-
men's Compensation Law of New York, which
are like those of our statute, said:
"The scheme of the act is so wide a de-
parture from common-law standards respecting
the responsibility of employer to employe that
doubts naturally have been raised respecting its
constitutional validity. The adverse considera-
tions urged or suggested in this case and in
kindred cases submitted at the same time are:
(a) That the employer's property is taken with-
out due process of law, because he is subjected
to a liability for compensation without regard
to any neglect or default on his part or on the
part of any other person for whom he is re-
sponsible, and in spite of the fact that the in-
jury may be solely attributable to the fault of
the employ*; (b) that the employe's rights are
interfered with, In that he is prevented from
having compensation for injuries arising from
the employer's fault commensurate with the
damages actually sustained, and is limited to
the measure of compensation prescribed by the
act; and (c) that both employer and employs
are deprived of their liberty to acquire property
by being prevented from making such agree-
ment as they choose respecting the terms of the
employment. • • •
"In considering the constitutional question,
it is necessary to view the matter from the
standpoint of the employe as well as from that
of the employer. For while plaintiff in error
is an employer, and cannot succeed without
showing that its rights as such are infringed,
• • • yet, as pointed out by the Court of Ap-
peals in the Jensen Case, 215 N. Y. 526 [109
N. El 600, L. R. A. 1916A, 403, Ann. Cas.
1916B, 276], the exemption from further lia-
bility is an essential part of the scheme, so
that the statute, if invalid as against the em-
ploy$, ig invalid as against the employer.
"The close relation of the rules governing
responsibility as between employer and employ!
to the fundamental rights of liberty and proper-
ty is, of course, recognized. But those rules,
as guides of conduct, are not beyond alteration
by legislation in the public interest. No person
has a vested interest in any rule of law enti-
tling him to insist that it shall remain un-
changed for his benefit. * • • The common
law bases the employer's liability for injuries
to the employe upon the ground of negligence;
but negligence is merely the disregard of some
duty imposed by law, and the nature and extent
of the dutjr may be modified by legislation, with
corresponding change in the test of negligence.
Indeed, liability may be imposed for the con-
sequences of a failure to comply with a stat-
utory duty, irrespective of negligence in the
ordinary sense, safety appliance acts being
a familiar instance. • • •
"The fault may be that of the employer him-
self, or — most frequently — that of another for
whose conduct he is made responsible according
to the maxim respondeat superior. In the lat-
ter case the employer may be entirely blame-
less, may have exercised the utmost human fore-
sight to safeguard the employe; yet, if the
alter ego, while acting within the scope of his
duties, be negligent— in disobedience, it may
be, of the employer's positive .and specific
command — the emplojrer Is answerable for the
consequences. It cannot be that the rule em-
bodied in the maxim is unalterable by legisla-
tion.
"The Immunity of the employer from respon-
sibility to an employe for the negligence of
a fellow employe is of comparatively recent
origin, it being the product of the judicial con-
ception that the probability of a fellow work-
man's negligence is one of the natural and
ordinary risks of the occupation, assumed by
the employe and presumably taken into ac-
count in the fixing of bis wages. * * • The
doctrine has prevailed generally throughout the
United States, but with material differences in
different jurisdictions respecting who should be
deemed a fellow servant and who a vice princi-
pal or alter ego of the master, turning some-
times upon refined distinctions as to grades and
departments in the employment. * • * It
needs no argument to show that snch a rule
is subject to modification or abrogation by a
state upon proper occasion.
"The same may be said with respect to the
general doctrine of assumption of risk. By the
common law the employe assumes the riska
normally incident to the occupation in which
he voluntarily engages; other and extraordi-
nary risks and those due to the employer's neg-
ligence he does not assume until made aware of
them, or until they become so obvious that an
ordinarily prudent man would observe and ap-
preciate them ; in either of which cases he does
assume them, if he continues in the employment
withont obtaining from the employer an assur-
ance that the matter will be remedied; but if
he receive such an assurance, then, pending
performance of the promise, the employe does
not, in ordinary cases, assume the special risk.
• • • Plainly these rules as guides of con-
duct and tests of liability are subject to chants
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SOLVUCA V. RYAK & REILLT CO.
713
in the exercise ot the sovereign authority of
the state.
"So, also with resist to contributory negli-
gence. Aside from injuries intentionally aelf-
in&icted for which the statute under considera-
tion affords no compensation, it is plain that
the rules of law upon the subject in their bear-
ing upon the employer's responsibility are sub-
ject to legislative change; for contributory
negligence again involves a default in some duty
resting in the employe and his duties are sub-
ject to modification.
"It may be added, by way of reminder, that
the entire matter of liability for death caused
by wrongful act, both within and without the
relation of employer and employ^, is a modem
statutory innovation, in which the states differ
as to who may sue, for whose benefit, and the
measure of damages.
"But it is not necessary to extend the discus-
sion. This court repeatedly has upheld the au-
thority of the states to establish by legislation
departures from the fellow-servant rule and oth-
er common-law rules affecting the employer's
liability for personal injuries to the employ^.
* * * The statute under consideration sets
aside one body of rules only to establish another
system in its place. If the employ^ is no longer
able to recover as much as before in case of be-
ing injured through the employer's negligence,
he is entitled to moderate compensation in all
cases of injury, and has a certain and speedy
remedy without the difficulty and expense of es-
tablishing neglij^ence or proving the amount of
the damages. Instead of assuming the entire
consequences of all ordinary risks of the occu-
pation, he assumes the consequences, in excess of
the sciieduled compensation, of risks ordinary
and extraordinary. On the other hand, if the
employer is left without defense respecting the
question of fault, he at the same time is assured
uat the recover^ is limited, and that it goes di-
rectly to the relief of the designated beneficiary.
And just as the employ6's assumption of ordina-
ry risks at common law presumably was taken
into account in fixing the rate of wages, so the
fixed responsibility of the employer, and the
modified assumption of risk by the employ^ un-
der the new system, presumably wiH be reflected
in the wage scale. The act evidently is intended
as a just settlement of a difficult problem, af-
fecting one of the most important of social rela-
tions, and it is to be judged in its entirety. We
have said enough to demonstrate that, in such
an adjustment, the particular rules of the com-
mon law affecting the subject-matter are not
placed by the Fourteenth Amendment beyond the
reach of the lawmaking power of the state ; and
thus ^e are brought to the question wheUier
the method of compensation that is established
■a a anbstitnte tiansc<aidB the limits of permisai-
ble state action.
"We will consider, first, the scheme of compen-
sation, deferring for the present the question of
the manner in which the employer b required
to secure payment.
"Briefly, the statnte imposes liability upon the
employer to make compensation for disability or
death of the employ^ resulting from accidental
personal Injury ari/dng out of and in the course
of the employment, without regard to fault as
a cause except where the injury or death is oc-
casioned by the employe's willful intention to
firoduce it, or where the injury results solely
rom his intoxication while on duty; it gradu-
ates the compensation for disability according to
a prescribed scale based upon the loss of earning
power, having regard to the previous wage and
the character and duration of the disability;
and measnres the death benefit according to ^e
dependency of the surviving wife, husband, or
infant children. Perhaps we should add that it
lias no retrospective effect, and applies only to
'caaea arising some months after its passage.
"Of course, we cannot ignore the question I
^rhether the new arrangement is arbitrary and'
unreasonable, from the standpoint of natural
justice. Respecting this, it is important t« be
observed that the act applies only to disabling
or fatal personal injuries received in the course
of hazardous employment in gainful occupation.
Reduced to its elements, the situation to be
dealt with is this: Employer and employ^, by
mutual consent, engage in a common operation
intended to be advantageous to both; the em-
ployg Is to contribute his personal services, and
for these is to receive wages, and, ordinarily,
nothing more; the employer is to furnish plant,
facilities, organization, capital, credit, is to con-
trol and manage the operation, paying the
wages and other expenses, disposing of the
product at such prices as he can obtain, taking
all the profits, if any there be, and of necessity
bearing the entire losses. In the nature of
things, there Is more or less of a probability
that the employe may lose his life through some
accidental injury arising out of the employment,
leaving his widow or children deprived of their
natural support, or that he may sustain an in-
jury not mortal, but resulting in his total or
partial disablement, temporary or permanent,
with corresponding impairment of earning ca-
pacity. The physical suffering must be borne
by the employe alone; the laws of nature pre-
vent this from being evaded or shifted to an-
other, and the statute makes no attempt to af-
ford an equivalent in compensation. But, he-
sides, there is the loss of earning power, a loss
of that which stands to the employe as his cap-
ital in trade. This is a loss arising out of the
business, and, however it may be charged up, is
an expense of the operation, as truly as the cost
of repairing broken machinery or any other ex-
pense that ordinarily is paid b^ the employer.
Who is to bear the charge? It is plain that, on
grounds of natural justice, it is not unreason-^
able for the state, while relieving the employer
from responsibility for damages measured by
common-law standards and payable in case
where he or those for whose conduct he is an-
swerable are found to be at fault, to require hhn
to contribute a reasonable amount, and. accord-
ing to a reasonable and definite scale, by way of
compensation for the loss of earning power in-
curred in the common enterprise, irrespective of
the question of negligence, instead of leaving the
entire loss to rest miere it may chance to fall;
that is, upon the injured employe or his de-
pendents. Nor can it be deemed arbitrary and
unreasonable, from the standpoint of the em-
ploye's interest, to supplant a system under
which he assumed the entire risk of injury in
ordinary cases, and in others had a right to re-
cover an amount more or less speculative upon
proving facts of negligence that often were diffi-
cult to prove, and substitute a system under
which in all ordinary cases of accidental injury,
he is sare_ of a definite and easily ascertainea
compensation, not being obliged to assume the
entire loss in any case, but m all cases assum-
ing any loss beyond the prescribed scale.
"Much emphasis is laid upcm the criticism
that the act creates liability without fault. Thia
is sufficiently answeied b^ what has been said,
but we ma^ add that liability without fault is not
a novelty m the law. The common-law liabili^
of the carrier, of the innkeeper, of him who em-
£loyed fire or other daiigerous agency or har-
ored a mischievous animal, was not dependent
altogether upon questions of fault or negligence.
Statutes imposiiug liability without fault have
been sustained. • • •
"We have referred to the maxim respondeat
superior. In a well-known EiDgUsh case. Hall v.
Smith, 2 Bing. 156, 160, this maxim waa said 1^
Best, C. J., to be 'bottomed on this priiuaple,
that he who expects to derive advantage from
an act which is done by another for him must an-
swer for any injury which a third person may
sustain from it.' And this view has been adopt-
ed in New lork. Cardot v. Barney, 63 N. X.
281. 287 (^ Am. Bep. 633]. The provigicn for
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101 ATLANTIC REPOKTEIK
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compulsory cumpengation, in the act under con-
sideration, cannot be deemed to be an arbitrary
and unreasonable application of the principle, so
as to amount to a deprivation of the employer's
property without due process of law. The pe-
cuniary loss resulting from the employe's death
or disablement must fall somewhere. It results
from something done in the course of an opera-
tion from which the employer expects to derive
a profit. In excluding the question of fault as a
cause of the injury, the act in effect disregards
the proximate cause and looks to one more re-
mote— the primary cause, as it may be deemed —
and that is, the employment itself. For this, both
parties are responsible, since they voluntarily en-
gage in it as coadventurers, with personal in-
Jury to the employ^ as a probable and foreseen
result. In ignoring any possible negligence of
the employs producing or contributing to the in-
jury, the lawmaker reasonabljr may have been
influenced by the belief that, in modern indus-
try, the utmost diligence in the employer's serv-
ice is in some degree inconsistent with adequate
care on the part of the employ^ for his own safe-
ty ; that the more intently he devotes himself to
the work, the less he can take precautions for
his own security. And it is evident that the con-
sequences of a disabling or fatal injury are pre-
cisely the same to the parties immediately af-
fected, and to the community, whether the proxi-
mate cause be culpable or innocent Viewing
the entire matter, it cannot be pronounced arbi-
trary and unreasonable for the state to impose
npon the employer the absolute duty of making a
moderate and definite compensation in money to
every disabled employ^, or, in case of his death,
to those who were entitled to look to him for
support, in lieu of the common-law liability con-
fined to cases of negligence. * • •
"Bat, it is Raid, the statute strikes at the
fundamentals of constitutional freedom of con-
tract ; and we are referred to two recent declara-
tions by this court. The first ia this: 'Included
in the right of personal liberty and the right of
private property — ^partaking of the nature of
each — is the right to make contracts for the ac-
quisition of property. Chief among such con-
tacts is that of personal employment, by which
labor and other services are exchanged for mon-
ey or other forms of property. If this right be
struck down or arbitrarily interfered with, there
is a substantial impairment of liberty in the
long-established constitutional sense.* Coppage
T. Kansas, 236 V. S. 1, 14 [35 Sup. Ct 240.
243 (69 L. EM. 441, L. R. A. 1915C, 960)]. And
this is the other: 'It requires no argument to
show that the fight to work for a living in the
common occupations of the community ft of the
Ter^ essence of the personal freedom and oppor-
tunity that it was the purpose of the (Four-
teenth) Amendment to secure.' Truax v. Raich,
239 U. S. 33, 41 [36 Sup. Ct. T, 10 (GO L. Bd.
131, L. B. A. 1916D, 645, Ann. Gas. 1917B,
283)].
"It is not our purpose to qualify or weaken ei-
ther of these declarations in the least. And we
recognize that the legislation under review does
measurably limit the freedom of employer and
employ^ to agree respecting the terms of em-
ployment, and that it cannot be supported ex-
cept on tne ground that it is a reasonable exer-
cise of the police power of the state. In our
opinion it Is fairly supportable upon that
ground. And for this reason: The subject-mat-
ter in respect of which freedom of contract is
restricted is the matter of compensation for hu-
man life or limb lost or disability Incurred in the
course of hazardous employment, and the public
has a direct interest in this as affecting the com-
mon welfare. 'The whole is no greater than the
sum of all the parts, and when the individual
health, safety, and welfare are sacrificed or neg-
lected, the state must suffer.' Holden v. Hardy,
169 U. S. 366, 397 [18 Sup. Ct. 383, 390 (42 U
Etl. 780)1. It cannot be doubted that the state
may pr<^ibit and ponish self-maiming and at-
tempts at suicide; it may prohibit a ntan from
bartering away his life or his personal g«curity ;
indeed, the right to these is often declared, in
bills of rights, to be 'natural and inalienable' ;
and the authority to prohibit contracts made in
derogation of a lawfully established policy of
the state respecting compensation for accidental
death or disabling personal injury is equally
clear. * • • xHig statute does not concern it-
self with measures of prevention, which presum-
ably are embraced in other laws. But the inter-
est of the public is not confined to these. One
of the grounds of its concern with the continued
life and earning power of the individual is its
interest in the prevention of pauperism, with its
concomitants of vice and crime. And, in our
opinion, laws regulating the responsibili^ of em-
ployers for the injury or death of employes,
arising out of the employment, bear so close a
relation to the protection of the lives and safety
of those concerned that they properly may be re-
garded as coming within Uie category of police
regulations. • ♦ •
"No question is made but that the procedural
provisions of the act are amply adequate to af-
ford the notice and opportunity to be heard re-
quired by the Fourteenth Amendment. » * •
"The objection under the 'equal protection'
clause is not pressed. The only apparent basis
for it is in exclusion of farm laborers and do-
mestic servants from the scheme. But, mani-
festly, this cannot be judicially declared to be
an arbitrary classification, since it reasonably
may be considered that the risks inherent in these
occupations are exceptionally patent, simple, and
familiar. • • •
"We conclude that the prescribed scheme of
compulsory compensation is not repugnant to the
provisions of the Fourteenth Amendment, and
are brought to consider, next, the manner in
which the employer is required to secure pay-
ment of the compensation. By section 50, this
may be done in one of three ways: (a) State
insurance; (b) insurance with an authorized in-
surance corporation or association ; or (c) by a
deposit of securities. • • •
The system of compulsory compensation hav-
ing been found to be within the power of the
stote, it is within the limits of i>ermissible rego-
lation, in aid of the system, to require the em-
ployer to furnish satisfactory proof of his finan-
cial ability to pay the compensation, and to de-
posit a reasonable amount of securities for that
purpose. The third clause of section 50 has not
been, and presumably will not be, construed so
as to give an unbridled discretion to the com-
mission ; nor is it to be presumed that solvent
employers will be prevented from becomins self-
insurers on reasonable terms. • • •
"This being so, it is obvious that this case
presents no question as to whether the state
might, consistently vrith the Fourteenth Amend-
ment, compel employers to effect insurance ac-
cording to either of the plans mentioned in the
first and second clsuscs. There is no such com-
pulsion, since self-insurance under the third
clause presumably is open to all employers on
reasonable terms that it is within the power of
the state to impose. Regarded as optional ai^
rangements, for acceptance or rejection by em-
ployers unwilling to comply with that dause,
the plans of insurance are unexceptionable from
the constitutional standpoint. Manifestly, the
employe is not injuriously affected in a consti-
tutional sense by the provisions giving to the
employer an option to secure payment of the
compensation in either of the modes prescribed,
for there is no presumption that either will
prove inadequate to safeguard the employe's in-
terests."
See, also, Hawkins v. Bleakly, 243 TT. S.
210, 37 S. Ct. 255, 61 L. Ed. 678; Mountniu
Timber Co. v. Washington. 243 U. S. 219. 87
S. Ct. 260. «l I.. Ed. eS5; Jensen v. South-
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SOLVUCA T. BY AN & REILLY CO.
715
em Pacific Ck)., 215 N. T, 514, 109 N. E. 600
11/. R. A. 1916A, 403, Ann. Gas. 1916B, i76];
State v. Clausen, 65 Wash. 156, 117 Pac. 1101,
37 li. R. A. (N. S.) 466; Yaple V. Creamer, 85
Ohio St. 349, 97 N. E. 602, 39 L. R. A. (N. S.)
694; Day v. State, 7 GUI, 321.
In the case of Am. Coal Co. T. Allegany
Co., 128 Md. 564, 98 Atl. 143, the act of 1910,
chapter 153, as amended by the act of 1912,
chapter 445, which provides for the creation
of a "miners' and operators' co-operative re-
lief fund" for the relief of employes Injured
In coal and day mining In Allegany a)id Gar-
rett cotmtles and the dependents of employes
injnred or killed in such mining, was at-
tadved on the several grounds mainly relied
on by the appellant In this case, bnt this
court held that the act was free from the
constitutional objections urged against it,
and well within the police power of the state.
In the course of the opinion Judge Burke
said:
"Hiere can be no doubt that the Legislature in-
tended by the act of 1910, chapter 1^, to change
the rules of the oommon law, in the classes of
industry referred to in the act, theretofore pre-
vailing in this state governing the recovery for
work accidents. It may be said that it is now
generally recognized that the application of the
old rules governing the relation of master and
servant in certain classes of occupation are un-
suitable to our changed industrial and corporate
condition. The application of the principles of
the common law to suits for personal injuries
sustained in hazardous employments resulted in
many cases in injustice to the parties concerned
as well as to the state. It filled the courts with
litigation ; it became the fruitful source of per-
jury; it engendered bitterness between employ-
er and employs; it resulted in great economic
waste; and it turned out an army of maimed
and helpless people as dependents upon the char-
ity of friends or the public. The operation of
these rules came to be regarded as 'foolish,
wasteful, inefficient, and barbarous'; and the na-
tional government and a number of the states
have now replaced them by efficient and humane
laws."
[1, 2] The appellant further insists that the
act In question violates section 40 of article
3, and section 6 of article 15, of the Consti-
tution of this state, prohibiting the taking
of pr<^)erty without just compensation agreed
upon between the parties, or awarded by a
jury, and providing for the preservation of
trial by Jury of all Issues of fact In civil pro-
ceedings. The act expressly provides for a
Jury trial on appeals from orders of the com-
mission, and in the case of Frazler v. Leas,
127 Md. 572, 96 Aa 764, this court hold that
on appeal either party bad the right to call
witnesses In support of his case, and that the
Legislature evidently Intended to secure the
party appealing the benefit of section 6, art.
15, of the Constitution, providing for trial
by Jury of aill issues of fact in dvil proceed-
ings, etc. In the case of Steuart v. Balti-
more, 7 Md. 500, the court said :
"These cases fully establish the prindple that
where a law secures the trial by jury upon an
appeal, it is no violation of a constitutional pro-
vision for guarding that right, although such law
may provide for a primary trial withuut the
intervention of a jury. This is upon the ground
that the party, if he thinks proper, can have
his case dedded by a jury before it is finally
settled"
— and In the case of Ulman v. Baltimore, 72
Md. 609, 21 Atl. 711, 11 L. R. A. 224, Judge
McSherry, speaking for the court, said:
"Had the act of 1874 gone further and em-
powered the dty to make provision by ordinance
lor giving notice to, and allowing a hearing of,
the parties to be affected by the paving of a
street, either before the dty commissioner, or
some other local tribunal, and tiien, for an ap-
peal to the city court where a trial by jury
could be had, it cannot be doubted that the pro-
ceedings would have been in accord with both
the federal and state Constitutions. Steuart v.
Baltimore. 7 Md. 500 ; Davidson v. New Or-
leans, 96 U. S. 97 [24 U Ed. 616.]"
[3] It is also urged on behalf of the ap-
pellant that the act contravenes the provi-
sion of section 1 of article 4 of the Consti-
tution of the state, which vests the judldal
power of the state In the Conrt of Appeals,
circuit court, orphans* court, and the courts
for Baltimore dty provided for In said ar-
ticle, and artide 8 of the Dedaration of
Bights, which declares that:
"The legislative, executive and judidal pow-
ers of government ought to be forever separate
and distinct from each other."
It Is said in 6 R. C. L. § 159:
"The distinction between legislative or minis-
terial functions andjndidal functions is diffi-
cult to point out. What is a judicial function
does not depend solely on the mental operation
by which it is performed or the importance of
the act. In solving this question, due regard
must be bad to the organic law of the state and
the division of powers of government. In the
discbarge of executive and legislative duties, the
exercise of discretion and judgment of the high-
est order is necessary, and matters of the great-
est weight and importance are dealt with. It
is not enough to make a function judidal that
it requires discretion, deliberation, thought, and
judgment. It must be the exercise of discretion
and judgment within the subdivision of the sov-
ereign power which belongs to the judiciary, or,
at least, which does not belong to the legislative
or executive department. If the matter, in re-
spect to which it is exerdsed, belongs to either
of the two last-named departments of govern-
ment, it is not judicial. As to what is judicial
and what is not, seems to be better indicated
by the nature of a thing than its d^nition."
In the case of Shafer v. Mumma, 17 Md.
331, 79 Am. Dec. 656, Chief Judge Le Grand
said:
"But it is said, on behalf of the plaintiffs, that
since the adoption of the present state Consti-
tution, the mayor of Hagerstown could not try
and fine under the ordinance, because the exer-
cise of such power is but tne exertion of the
judidal power, which, by the Constitution, is
confined to certain specified classes of persons,
and that the mayor of Hagerstown is not in-
duded in the enumeration.
"This argument would be entitled to great
weight, if we thought the power exercised by the
defendant was, in the sense of the Constitution,
a part of the judicial power. But we entertain
no such opinion. We regard it as but a part
of the police power, as contradistinguished from
the regular judiciary powers of the state. FVom
time immemorial, a distinction has been observ-
ed between the two, both in England and this
country. It would be next to, if not quite im-
possible, for a lorge city like Baltimore to pre-
serve order within its limits, preserve the streets
free from interruption, indeed to do most of the
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101 ATLANTIC REPORTER
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thousand things necessary to be done, to carr^
on its various and indispensable operations, if
in every case it were a necessary preliminary
that the offender should be regularly prosecuted
by presentment, Indictment, and trial. It has
always been understood that, under the police
power, persons disturUng the public peace, per-
sons guilty of a nuisance, or obstructing the
public highways, and the like offenses, may be
Bummarily arrested and fined, without any In-
fraction of that part of the Constitution which
apportions the administration of the judicial
power, strictly as such. We regard the power
conferred on the corporation of Hagerstown, to
summarily punish persons of the description the
appellant, Elmira, is admitted to have been, aa
falling directly within the definition of a police
regulation."
The same objection was urged against the
Workmen's Conipensation Law of Wisconsin,
but the Supreme Court of Wisconsin, in
Borgnia v. Falk Co., 147 Wis. 327, 133 N. W.
209, 37 L R. A. (N. S.) 489, sustained the
act, and said In reference to that objection:
"The next important contention is that the
law ia unconstitutional because it vests judicial
power in a body which is not a court and is not
composed of men elected by the people, in vio-
lation of those clauses of the state Constitu-
tion which vest the judicial power in certain
courts and provide (or the election of judges by
the people, as well as in violation of the con-
stitutional guaranties of due process of law. It
was suggested at the argument that the Indus-
trial Commission might perhaps be held to be
a court of conciliation, as authorized to be cre-
ated by section 16 of article 7 of the state Con-
stitution; but we do not find it necessary to
consider or decide this contention. We do not
consider the Industrial Commission a court, nor
do we construe the act as vesting in the commis-
sion judicial powers within the meaning of the
Constitution. It is an administrative body or
arm of the government, which in the course of
its administration of a law is empowered to
ascertain some questions of fact and apply the
existing law thereto, and in so doing acts quasi
judicially; but it is not thereby vested with ju-
dicial power in tlie constitutional sense.
"There are many such administrative bodies
or commissions, and with the increasing com-
plexity of modem government they seem likely
to increase rather than diminisE Bxamplea
mav be easily thought of. Town boards, boards
of nealth, boards of review, boards of equaliza-
tion, railroad rate commissions, and public util-
ity commissions all come within this class.
They perform very important duties in our
scheme of government, but they are not Legia-
latures of courts."
The Workmen's Compensation Law, which
was passed in the exercise of the police pow-
er of this state, creates a commission known
as the State Industrial Accident Commission
to administer the provisions of the act In
the discharge of its duties and the exertion
of its powers it is required to exercise judg-
ment and discretion, and to apply the law to
the facts in each particular case, but It is
dear that the Legislature never Intended to
constitute the commission a court, or to
confer upon It the judicial power of the
state within the meaning of the constitution-
al provisions referred to.
It follows from the views we have express-
ed that the demurrer to the plea of the de-
fendant was properly overruled, and that
the judgment of the court below must be
affirmed.
Judgment aflSrmed, with oosta.
' (ML Hi. 30)
LEE, Water Engineer, et aL v. LEITCH et sL
(No. 49.)
(Court of Appeals of Maryland. June 28, 1917.)
1. MANDAiras «=373(1) — Dtnr or Obuoa-
TION.
Rights and duties are correlative, and nnle»
there was a duty or obligation upon the water
board of a city to have installed the water in a
residence tho property owners were not entitled
to writ of mandamus against the board.
2. Municipal Cobfohationb «=3661(1)— €on-
IBOL OvEB Streets.
The Mayor and City Council of Baltimore
have full and complete control over the streets
and highways of the city, the power to maintain
and r^ulate tho use of the streets being a trust
for the benefit of the general pnblic conferred
on the dty by its charter.
3. MtTNICIFAI. CORFOSATIOHS 9=9111(1)— OB-
DINANCE8— VAUDITY.
Ordinances of the city of Baltimore giving
the water board power to mako and pass rules
and regulations for its government, the laying
and tapping of -pipes, for the protection and
preservation of the pipes, or other property and
appurtenances of the waterworks, etc., pass-
ed in pursuance of power granted by the state,
were valid local laws.
4. Waters and Water Cottrsks «=»202— Ob<
DiNANCEs—VAXiDrrT— Reasonableness.
Rule 14 of the water board of Baltimore
city, passed in 1896 as an expression of the long-
established policy of the city, providing that
whenever an application is made to the depart-
ment for the introduction of water for any prem-
ises, the street being covered with asphalt pave-
ment, etc, the department will not introduce
water untu the applicant has obtained a permit
from the city commissioner's department, in-
dorsed by the mayor, for the water department
to open the street, is not void as unreasonable.
K. Municipal Corporations <3=362 — Ordi-
nance DxixaATisa Poweb to Wateb
Board.
The grant at power to the water board to
make such rule, made by Baltimore City Code
1906, art 40, providing that the water board
shall have power to make and pass all rules
and regulations for the laying and tapping of
pipes, etc., was not an unlawihil delegation of
power to the water board.
6. Mandauub «=»7S(1)— Rioht to Warr.
In view of rule 14 of the water board of B«l-
timore city, providing that whenever an appli-
cation is made for the introduction of water
for any premises, the street being covered with
asphalt pavement, etc., the water will not bo in-
troduced until the applicant shall have obtained
a permit from the city commissioner's depart-
ment, indorsed by the mayor, applicants for the
introduction of water into their premises which
fronted on a street with an asphalt paving were
not entitled to mandamus to compel the water
board to introduce the water, the mayor having
refused to indorse tho permit pursuant to a long-
established policy of his office not to permit the
cutting up of improved paving to lay pipes.
Appeal from Baltimore City Court; John
J. Dobler, Judgre.
Petition for mandamus by Jessie S. I<eltdi
and Estelle Snow Wilcox against Walter E.
Lee, water engineer of Baltimore city, and
tKoTot other cases sea same topic and KBY-NUMBGR In all Key-Numbered Digests and Indexss
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Md.)
liEE y. LEITCH
717
Walter E. Lee and others, constitntlng the
water board of the municipal corporation
known as the Mayor and City Council of
Baltimore. From an order that writ Issue
against defendants, they appeal. Order re-
versed and petition dismissed.
Argued before BOIT), C. J., and BRISCOE,
BURKE, THOMAS, PATTISON, URNKR,
STOCKBRIDGE, and CONSTABLE. JJ.
BenJ. H. McKlndless, Asst. City Sol., of
Baltimore (S. S. Field, City Sol., of Bald-
more, on the brief), for appellants. William
Edgar Byrd and Charles Lee Merriken, both
of Baltimore (Frank M. Merriken, of Balti-
more, on the brief), for appellees.
BURKE, J. The controllbig facts of this
case, briefly stated, are these: The appellees;
Jessie S. Leltch and Estelle Snow Wilcox,
are the owners of a lot of ground on Liberty
Heights avenue, in Baltimore CII7, located
185 feet west of Carsdale avenue. They ac-
qolred title to this lot by a deed from the
Forest Park Company of Baltimore dty, dat-
ed February 7, 1916. The deed contained a
description of the property conveyed and in
it the following clause appears:
"That all right, title, and Interest In and to
the avenues, streets, roads, lanes, sidewalks,
alleys, or paths, as the same are laid out and
shown on the plat of the company's property fil-
ed among the land records of Baltimore city,
in Liber S C L, No. 2888, folio 60S, and which
may constitute one or more of the line or lines
of the lot hereby intended to be conveyed, are
hereby expressly reserved by the company, its
sacccsaors and assigns, subject, neverthdess,
to a right of way to the said grantees, the sur-
vivor uiereof, their assigns, and the heirs and
assigns of the survivor, over and upon the said
avenues, streets, roads, lanes, sidewalks, alleys,
or paths until the same shall be condemned for
pnblic nse; and that all references to or mention
-of avenues streets, roads, lanes, sidewalks, al-
leys, or paths in this deed will be and are for
the purpose of description only, and not for the
purpose of dedication."
One of the alleys referred to Is the deed
is In the rear of tiie appellees' propetty, and
mns to Carsdale avenue, which is a macad-
am street. This alley, according to the un-
derstanding of Henry W. Webb, the vice
president of the Forest Park Company, and
who had charge of the active management of
the affairs of the company, was laid out to
serve the houses fronting on Liberty Heignts
avenue. Liberty Heights avenue was paved
t>y the State Roads Commission, and tnmed
over to and accepted by the city in April,
1915. Robert M. Cooksey, the highways engi-
neer of Baltimore city, said the pavement of
Liberty Heights avenue is what is called
"sheet asphalt, vitrified brick street ; that is,
.sheet asphalt on the outward portions, out-
side of the tracks, and then vlfitled l.rick in
the railway area, and the vitrified brick cov-
ers that portion from outer rail to outer rail,
and the dnmnty space Is vitrified brick." It
Is a high-class pavement, and the avenue had
been In the control of the city about 18
months before the commencement of this suit
Section 37, art 91, of the Code, provides
that:
"No openine shall be made in any such high-
way, nor shall any structure be placed thereon,
nor shall any structure which has been placed
thereon be changed or renewed, except in ac-
cordance with a permit from the commission,
which shall exercise comi>Iete control over such
highways, except as herein otherwise provided.
No state highway shall be dug up for laying or
placing pipes, sewers, poles, wires or railways,
or for other purposes, and no trees shall be
planted or removed or obstruction placed there-
on without the written permit of the state roads
commission, or its duly authorized agent, and
then only in accordance with the regulations of
said commission; and the work shall be done
under the supervision and to the satisfaction of
said commission."
An opening was made in Liberty Heights
avenue in 1914, while the avenue was under
the Jurisdiction of the State Roads Commis-
sion, In order to Install water in the house
of Jesse Hamburger, which adjoins tue
propoty of the appellees. The precise dr-
cnmstances under which this was permitted
do not appear, bnt we will assume it was
done with the assent of the State Roads Com-
mission.
The dty water main Is located In the bed
of Liberty Heights avenue at a distance of
about seven feet from the curb, and at the
time the appellees purchased their property
they were assured by an agent of the Forest
Park Company that water connection had
been made with the dty main to the euro
line. No such representation to this effect
was made by any ofiidal or employe of the
dty, and such representation made to the
appellees was unknown to the dty. The ap-
{)ellees made no Investigation or Inquiry to
ascertain the truth of the representation. Its
falsity conid have been readily discovered by
a simple Inquiry of the water board. The
appellees began the erection of a dwelling
house upon the lot, and it was then discover-
ed that the water connection had not been
made. They applied for a permit to make
the connection with the main in the bed of
Liberty Heights avenue. The installation
involved the opening or cutting of this re-
cently laid high-dasa pavement, and the dty
authorities declined to grant the permit The
ground of thdr refusal is stated in two let-
ters of Mayor Preston to Mr. Charles Lee
Merriken, attorney for the appellees, dated,
respectively, August 19 and September 20,
1916, and in the testimony of the mayor and
that of Mr. Cooksey, the highways engineer.
Mayor Preston had been fully advised by Mr.
Merriken as to the facts attending the appli-
cation for the permit, and In bis letter of
August 19th said:
"I have your letter of August 18th. I really
am placed in a very embarrassing position abont
this case and a good many other similar ones.
I have to make a definite statement to the public
and property owners, and am compelled to live
up to it I have no doubt that the water can
l>e gotten in the back way of the property of
Mrs. Jessie S. Leltch, on the north side of Lib-
erty Heights avenue, a block and a half west of
Garrison avenue, at perhaps additional cost, hot
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do not see how we can cut the improved paving
there at this time. I have uniformly declined
to do this in hundreds of cases.
"Perhaps, if you take the matter up with Mr.
Lee. water engineer, or the construction division
of the water department, some way can be found
whereby the water can be gotten Into the house
from the rear."
On August 29th, Mr. Merriken replied
stating that It would cost $200 to Introduce
the water through the alley in the rear of the
appellees' property, and again urged the
granting of tlie permit In reply to this the
mayor wrote as follows on September 20th:
"I have your letter of September 19th. I
have no doubt that the water department will
permit Mrs. Leitcb to tap tho supply pipe of
her neighbor. I can see no objection to this
plan, provided she pay the usual water charges.
The tunneling suggested by you would involve
opening the street at tho main. I regret to have
to stand to our guns on these matters, but I
have made no exception in any case. Of course,
where there has been injury to tho surface of
the street, breaks in the mains, where sewer
lines have to bo opened, repairs have to be made,
and in these cases water is allowed to be intro-
duced, because it does not involve the independ-
ent cutting of the streets. I have not allowed
any exception to be made to this rule, and if it
baa been done it is in violation of my oiders."
On September 23, 1916, the water engineer,
Vi. Lee, wrote to Mr. Merriken that:
"The only way in which the supply can be
brought into Mrs. Leitch's new house, without
disturbing the improved paving on Liberty
Heights avenue, is by laying a service pipe in
the alley north of Liberty Heights avenue, from
Carsdale to a point on the east side of her lot."
In his testimony the mayor said:
"There is always a constant resistance on our
part to destroying pavements that have been
newly put down, except in cases where there
seems to be a necessity for it, where there has
been a break under the pavement, where the gaa
mains or sewers are broken under the paving,
and they have to go into them to repair them;
but we try not to do it if there is any possible
remedy, any possible relief, any possible way by
which it can be avoided. We found out that
this could be avoided by a little additional ex-
pense on the part of the property owners: and
we refused, in common with all other similar
cases that come under my direction, to cut the
improved paving. There is a constant battle to
prevent property owners from cutting the im-
proved paving; and if they see any improved
paving go down in front of their property, with-
«ut any regard for public interests, in practically
a week or a day afterwards they come in and
want to enlarge the water pipe, or put in sewer
connections, or water connections, so it is a
constant battle to prevent the paving from be-
ing cut; and this is one of the hundreds of cases
that we have to decline. The objection is, in the
6r8t place, what it should cost, and, in the sec-
ond place, is getting the back-fill so the pave-
ment will stand up after it is repaired. Some-
times we have to repair it once or twice or two
or three times. The tendency is that the back-
fill sinks under the pavement, and then it goes
down; and, of course, the other thing is that,
while you may be able to repair it very well,
yet, at the same time, it is not a good thing
to put down a new pavement and then go and
cut it up again. On Baltimore street you would
be surprised at the attitude of the community
on the subject. I have letters constantly call-
ing my attention to the fact that the new pave-
ment has been put down on Calver street and a
new cut was put in there. * • • Baltimore
sbreet has beoi repaved, a new street put down
on Baltimore street, and yet there have bera
Qfty cuts on Baltimore street on account of the
defective back-fill. The structures under the
street go down with the back-Sll, the sewer and
the water pipes, and electric conduit, for ex-
ample. Kow, then, ^ou go down and cut down
to repair a water pipe, and the fill goes in as
well as you can make it, as well as you can
practically make it, and the back-fill goes down
and carries with it the structures on the side, no
matter how well you make it. In other cities
they drill, or make a small hole in the middle of
the pavement and drill in. Well, we have not
been able to do that very successfully, for the
reason that our streets are so full of pipes that
have been put down under various grants of the
Legislature, gas pipes generally, and then bought
out by the Ckinsolidated, and such things, so we
cannot drill very well; I mean drill from the
side, horizontally; but we have one constant
battle. The applications for cuts in improred
pavements come over my desk with what is
known as a red flag, with a red piece of paper
attached, showing that they are cuts in im-
proved pavings, so that we can examine those
cuts promptly and classify them as far as we
can. Where we have old pavements, we are
not so careful about it, macadam, old macadam
paving, or old cobble, that does not come up at
all. It is the improved, expensive pavement that
has been put down by the property owners where
we resist the cutting process wherever we can
and exercise the best discretion we have in the
public interests. I receive a great many appli-
cations for installing pipes to the curb line, and
I constantly refuse to grant these permits.
Sometimes Uie circumstances or equities in the
case seem to direct a different discretion. For
instance, if the pavement is five or six or seven
years old, if the pavement is already cut at that
point for any purpose — suppose, for instance,
there is a broken main there, and the property
owner wants to go down into the same cut, we
let them go. It is already there. There are a
good many parallel cases that control the exer-
cise of discretion. Mr. Hubert passed on some
of them, in order to take the volume of busi-
ness, and I do generally. For the first four
years I think I took charge, and now Mr. Hu-
bert is passing on them very largely in my office
in my absence. I have never, so far as I can
recall, none that I know of, granted any per-
mits for opening improved paving where the
circumstances were such as are present in this
case. Other than the reasons which I have
stated, I can only say, I am down there at the
City Hall trying to protect the city's property
as best I can and exercising the best discretion
I can in the matter."
Mr. Cooksey said:
'The reasons which operate would cause me
to believe that it was proper to refuse this ap-
pUcaticm. They are that I was under the im-
pression that when the application was first
presented the lot had just been sold by the com-
pany or parties developing that part of the
city, and I knew, or thought I knew, they were
wdl acquainted with our regulations regarding
the tearing up of pavements, and I thought they
should have made it their business to see that
all their vacant lots which they proposed to im-
prove were properly connected up before the new
paving was laid. There has been a good deal
of new paving laid in that territory. The com-
pany I am speaking of is the Forest Park Com-
pany, which sold to Mrs. Leitch. I also con-.
sidered the reasons that apply to all permits for
cutting new pavements, the fact that you can-
not very well, at any reasonable cost, repair
a pavement so that it vrill be as good as before
it was cut. It is practically impossible to join
the asphalt around the edges of the cut. Every
effort IS made to make a bond, but it does not
actually bond. The concrete does not bond to
the old concrete base, and I think we all know
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that it is pretty hard to ram any trench so
that there will be no settlement. It may stand
up a year and it may stand up a year and a
half, but it generally settles some, which means
a depression, and which means going back and
spending the city's money again to bring that
cut up to grade. Then, of course, we cannot
always get a plant to handle the cut immedi-
ately, and therefore we have got a hole which
must be taken care of temporarily — in other
words, it is temporarjr — and that permits mois-
ture to enter and often makes it dangerous.
* * * In other words, there is always a line
in there between the old and new paving— a
line between the material that goes in to make
the patch in the original paving. This permits
moisture to get in under the i>atch. There are
times, of course, when that will seal over, but
when the seal on the top is broken there is no
bond all the way down, and if moisture gets in
there in cold weather it immediately begins to
lift the edge of the patch and it starts to disin-
tegrate, the result of which is more work on
that patch and unsatisfactory results in the
end. That is, yon cannot make a patch as good
as the original paving and you have holes or
depressions. Considering these things led to
the general policy that we should make as few
cuts in the paving as possible, and this is the
general policy of the highways engineer's office,
ao much so that I continually advise other de-
partments to explain the necessity before we
will grant them permits for their own extension
and repair work. The witness further testi-
fied that his department turns down probably
three to five hundred applications a year for
tearing up the new pavements, and the applica-
tions of the city departments are turned down
for the same reason. Some of the applications
fbr tearing up improved paving are granted, but
the applications which are granted are under
some of the following classes: Water leaks are
granted, of coarse. Generally an emergency is
given and an emergency break is given prompt
attention, because if the water leak is not re-
paired it will damage a greater and larger area
of the street, and the quicker it can be repaired
the less damage will be done. A gas leak will
always affect the asphalt in the same manner.
It seeps up and the paving will disintegrate from
eaeaping gas. The extension or enlarging of a
water service in the downtown sections where
sprinkler service is installed for fire protection.
This is granted for fire protection. The exten-
sion of the water system— that is, a main con-
nection, or an extension of the main of the
water department for better service— but they
are looked into quite well before they are
granted. Q. Now, for merely curb-line connec-
tions—that is, connections from the. main line
to the carb line — do you or not grant those?
A. We do not, unless ft is a case ot the c«nne<^
tion becoming worn out or breaking. Practical-
ly a leak or a choked connection. Q. But I am
speaking of absolutely new connections. A. We
do not grant those. Q. Now, we have been
speaking of newly laid paving. Is there any
period of time which yon have fixed in your
judgment when that no longer applies? A. Aft-
er five yeaiB."
The city was willing to permit the Intro-
duction of the water from Carsdale avenue
by the rear alley mentioned, or to allow the
appellees to connect with the supply pipe of
Hr. Hamburger, but refused, for the reasons
stated, to cnt the pavement on Liberty
Heights avenne. It does not appear that the
Forest Park Company bad any objection to
the Introduction of the water through the
rear alley, and in view of the testimony of
Hr. Webb and the representation of their
jflgent made to the appellees at the time of
their purchase, that the water connection bad
been made, it Is hardly likely it would have
objected. So far as we are Informed by the
record, the real reason why the appellees did
not secure the water in that way was because
of the additional cost Failing to obtain the
penult applied fpr, the appellees filed a peti-
tion In the Baltimore city court for a writ
of mandamus, and that court, after bearing
the testimony, by an order dated January
22, 1917, ordered the writ of mandamus to
Issue against the appellants, "constituting
the water board of the municipal corporation
known as the Mayor and City Council of Bal-
timore, commanding them to proceed forth-
with with the Installation of water from the
water main of the Mayor and City Coandl
of Baltimore, located in the bed of Liberty
Heights avenue to the kerb line in front of
the property of the petitioners." This ap-
peal was taken from that order.
The single question is, Had the court the
right, under the facts and circumstances
stated, to compel by mandamus the water
board to install the water as directed by the
order appealed from? In dealing with this
question, it la important to keep in mind
some fundamental principles governing the
issuance of the writ of mandamus. It was
said in Upshur ▼. Baltimore City, 94 Md.
743 51 AQ. 953, that:
"It must be remembered that a writ of manda-
mus is not a writ of right granted as of course,
but it is one which is allowed 'only at the dis-
cretion of the court to whom the application is
made. This discretion will not be exercised
in favor of applicants unless some just or useful
purpose may be answered by the writ.' Booze
V. Humbird, 27 Md. 4. It is also well settled
that the relator's right which is sought to be
enforced must be a clear, distinct legal right
(State ex rel. O'Neill v. Register et al., 59 Md.
287), and that it must be certain and free from
doubt. Mandamus is an extraordinary process,
'and if the right be doubtful, or the duty dis-
cretionary, or of a nature to require the exer-
cise of judgment, * * * this writ will not be
granted.' "
And In Brown t. Bragnnler, 79 Md. 234,
29 AtL 7, it was said:
'The remedy by mandamus is not one which is
accorded ex debito justitie. The writ is a pre-
rogative one ; and unless the right which the
relator seeks to enforce is clear and unequivo-
cal, and the correlative duty which the respond-
ent refuses to perform is purely ministerial,
and there be no other adequate remedy at law,
it will not be granted."
[1] Riglits and duties are correlative, and
unless there was a duty or obligation upon
the water board to have installed the water
as ordered, the appellees were not entitled,
under the authorities cited, to the writ of
mandamus. To know what its duty was un-
der the ciroumstances, It is necessary to ex-
amine certain provisions of the charter and
ordinances of the city which relate to this
subject. The installation of the water, which
the appellants were directed to make, in-
volved the opening or disturbance of the sur-
face of a newly paved street. If the appel-
lees have a right to require the opening of a
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pavement, others simnarly situated mast be
accorded the same right, and the policy adopt-
ed by the mayor for the preservation of new-
ly laid pavements will be set aside, and the
resulting injury described in the testimony,
whi(di that policy was designed to prevent,
will Inevitably ensue.
[21 It Is well settled that thie Ha.vor and
Cltj Council of Baltimore have full and com-
plete control over the streets and highways
of the city.
"This legislative authority over the streets
is sometimes classified as belonging to the police
power ; that is to say, that great power which
embraces the protection of life, umb, health,
and property, and the promotion of the public
peace and safety. It is a high conservative
power of the utmost importance to the existence
of good government." Lake Roland Elevated
R. R. Co. V. Baltimore, 77 Md. 352, 26 AtL
510, 20 U a A. 126.
The power to maintain and regulate the
use of the streets is a trust for the benefit
of the general public. This power. In express
terms, is conferred by the charter npon the
dty. By subsection 26 H, § 6, the power is
given to the dty "to regulate the opening
of street surface for the puriposes authorized
by law or ordinance." The power to control
and supervise the streets and highways of
the clt7 Is comprehended In the grant of
police power to the municipality. By sub-
sedlon 18 of section 6 of the charter (Act
of 1898, C 128) It has the power—
"to pass ordinances for preserving order, and
securing property and persons from violence,
danger and destruction, protecting the public and
dty property, rights and privileges from waste
or encroachment, and for promoting the great
interest and insuring the good government of the
dty. To have and exercise within the limits
of the dty of Baltimore all the power common-
ly known as the police power to the same extent
as the state has or could exercise said power
within said limits."-
And by subsection 31 of section 6 It Is far-
ther pnnvlded that:
"The foregoing or other enumeration of pow-
ers in this article shall not be held to limit the
power of the mayor and City Council of Balti-
more, in addition thereto to pass all ordinances
not inconsistent with the provisions of this arti-
de or the laws of the state as may be proper
in executing any of the powers, either express
or implied, enumerated In this section and else-
where in this article, as wdl as such ordinances
as it may deem expedient in maintaining the
peace, good government, health and welfare of
the dtv of Baltimore; and it may provide for
the enforcement of all such ordinances by such
penalties and imprisonments as may be pre-
scribed by ordinance; but no fine shall exceed
five hundred dollara, nor imprisonment exceed
twelve months for any offense."
In Bossberg v. State, 111 Md. 3&i, 74 Atl.
681, 134 Am. St Rep. 626, Jadge Pearce, In
discussing the police power of the dty, said:
"Broader or more comprehensive police powers
could not be conferred under any general grant
of police power, for the purposes mentioned in
section 18, than those granted in that section,
and when we consider the 'Welfare Clause' of
the charter, sec. 31, greater emphasis could not
be laid upon the implied powers of the city for
the maintenance of the peace, good government,
health, and welfare of the dty than is there laid.
That section expressly declares that, no enumer-
ation of powers in that article shall be deemed
to limit the power of the dty, in addition there-
to, to pass aill ordinances, not inconsistent with
that article or the laws of the state, as may
be proper in executing any of the enumerated
powers, express or implied, contained anywhere
in said article. * * * In the present case
the legislative grant is not merely one of power
to pass ordinances relating to spedfied police
powers, regarded as a part only of the general
police power, but the grant is of 'all the power
commonly known as tiie police power, to the
same extent as the state has or could exercise
said power within said limits.' The implication,
therefore, is a necessary one, that, notwithstand-
ing the preceding dause of that section of the
charter enumerated certain purposes for whidi
ordinances might be passed, the Legislature in-
tended the dty to have, in addition, the power
to pass ordinances for any and all purposes re-
lating to the exercise of the police power. If,
therefore, the power to pass the oindinance in
question can be considered as an implied power,
it is wdl within the definition of an implied
power given by Judge Cooley, since the whole
police power cannot be exerdsed if the exer-
dse of any part of such power is to be withheld
because such part is not expressly granted. But
we regard the power here in question as an ex-
press power, and this is so whether we look,
in the construction of the charter, either to one
or both of the sections heretofore reproduced.
The grant of all the police power is an express
grant, and every part of the whole is therefore
derived by express grant in section 18. If
there could be any doubt of this, such doubt i>
set at rest by section 31, which, as we have said,
expressly declares that the power to pass any
ordinance, not inconsistent with that artide
or with the laws of the state, shall not be lim-
ited by any enumeration of powers anywhere in
said article. We regard the legislative intent
therefore to be dear, whether the power be
viewed either as express or implied. We did not
understand the anpdlant to deny that this power
can be ddegated by the state to a muiddpal
corporation. It is true, as a general propod-
tion, that the Legislature cannot delegate its
power to make laws, bnt as expressed in 28
Cyc 603: 'After repeated challenge of mnnid-
pal authority to exerdse the poUee power, oa
the ground that it is a sovereign power, and
therefore nonddegable, the doctrine u firmly es-
tablished and now well recognised that the Leg^
islature may expressly or by implication, dde-
gate to munidpal corporations the lawful exer-
dse of police power within thdr boundaries.
* * * It may be full or partial, regular or
summary; but it is never exdnsive, as the
Legislatare has no authority to divest itself of
any of its sovereign functions or powers."
By subsection 80 of section 6 of the char-
ter, the Mayor and City Council was em-
powered "to establish, (q;>erate, maintain and
control a system of water supply for Balti-
more d(y, and to pass all ordinances nec-
essary In the premises"; and It was farther
Invested with "all • • • rights and pow-
ers necessary for the Introduction of water
Into said dty, and to enact and pass all or-
dinances, from time to time," which may "be
deemed necessary and proper to exercise the
powers and effect the objects above sped-
fled."
The vnater board, under the charter, la tbe
second sabdepartment of public Improve-
ments, and It has diarge of tbe water sapply
of the inhabitants of the dty.
By ordinance No. 26, ajvroved Mardi Q,
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1896; and codified an secticm 1, art. 40, of
tbe Baltimore City C!ode of 1906, it was or-
dained tliat:
"The water board shall bave power to make
and pass all rules and rcgalations for the gov-
eminent of the board, the laying and tapping of
pil>e8, or for the protection and preservation of
the Mid pipes, or other property and appurte-
nances of ue waterworks; and to afSx penal-
ties, and to enforce the same for any violation
of their rules and regulations; it shall also have
power to adopt all necessary regulations to
preserve the purity of the water, and to enact
and enforce such rules, regulations and penalties
as they may deem necessary, in accordance with
the provisions of this Code."
A prior ordinance is fonnd in the City Code
of 1893 (article 54, sec. 11) which authorizes
the water board —
"to make and pass rules and regulations for the
government of the board, the laying of pipes and
for tbe protection and preservation of said pipes
or other property and appurtenances of the wa-
terworks."
[3] These ordinances passed In pursuance
of power granted by the state, were valid lo-
cal laws. Gould T. Baltimore City, 120 Md.
534, 87 AtL 818.
Prior to the passage of this latter ordi-
nance, an ordinance was passed in November,
1892, prohibiting any person, persons, or cor-
porations from tearing up the streets, with-
out first having obtained a written permit
therefor from the dty commissioner, approv-
ed by tbe mayor. This ordinance was rec-
ognized as valid In State v. Latrobe, 81 Md.
233, 31 AtL 788, and acting under the au-
thority conferred upon It by the ordinance of
1893, above referred to, the water board in
October, 1895, passed the following rule:
"Rule 14. Whenever an application is made
to this department for introduction of water for
any premiae or premises wherein the city main
may lay, aaid street being covered with asphalt
pavement, asphalt block, Belgian block, or any
improved pavement, this department will not in-
trodnce the supply of water until the applicant
or applicants have obtained a permit from the
city commissioner's department and indorsed by
the mayor for this department to open the street.
And be it further understood that the appli-
cant or applicants will have to bear all the ez-
Iienses for the proper repairs and repaving of
any such street."
One of the main objects of the rule was
tbe preservation and protection of the streets
and highways of the city, and the water
board, evidently bad in mind the ordinance
of 1892 and the opinion of Otis court In State
V. Latrobe, supra, whch was filed April 4,
3895. This rule has been in force and acted
upon t^ the water board ever since its
adoption, with one single practical modifica-
tion. As the highways engineer is, with re-
spect to the issuance of the permit, the legal
successor of the dty commissioner's depart-
ment, the issuing of the permit now devolves
upon him; but it must, however, be indorsed
by tbe mayor.
[4, B] It is argued that this rule is void —
First, because it is unreasonable; and, sec-
ondly, that the grant of power to make it is
an unlawful delegation of power to the water
board. As to the first contention, it must be
apparent from what we have said that the
rule is an expression of the long-established
policy of the city and is founded upon consid-
erations of public welfare. Nor do we think
the rule "delegatus non potest delegare" ap-
plies. The corporation may act in such mat-
ters by its officers and agents. This was
recognized in State v. Latrobe, supra, and, as
said by Judge Scbmucker in Downs v. Swann,
111 Md. 5.^, 73 AO. 653, 23 L. B. A. (N. S.>
739, 134 Am. St Rep. 686:
"It has * * * been settled by numerous
decisions that the state may delegate the police
power to subordinate boards and commissions,
and that the reasonable and just exercise by
them of the delegated power will be upheld."
In this connection we may also refer to
Commissioners of Easton v. Covey, 74 Md.
262, 22 Atl. 266, and Brown v. Stubbs, 128 Md.
129, 97 AtL 227.
Judge Pearce said in Rossberg v. State,
supra, that the powers vested in the city "are
broad and sweeping, and are expressed in
terms which indicate a liberal view of tlw
need of broad powers for effective local gov-
ernment of a great city." The writ was no*
directed against the mayor, and there i»
nothing to indicate that bis objection to th»
issuance of a permit was based upon passion,
prejudice, hostility, or any unworthy motives.
He was exercising his best Judgment in the
public interests in maintaining what we think
to be a wise pubUc poUcy. It was said In
Upshur V. Baltimore, supra, that the writ of
mandamus "is based upon reasons of Justice
and public policy to preserve peace, order, and
good government" (Foe's Prac. f 708), and it
obviously, therefore, will not be granted
where those ends would be subverted or might
be frustrated.
[•] For the reasons stated we sustain the
validity of role 14 of the water board, and
it foUowB from that holding that the appel-
lees were not entitled, under the authorities
cited, to the writ of mandamus, and the order
appealed from must be reversed and the peti-
tion dismissed.
Order reversed and petition dismissed, ,wltb
costs.
(lU He. G06>
STAPLES V. EMERY et aL
(Supreme Judicial Court of Maine. Aug. 24.
1917.)
Afpkai. aro Erbob «=>92S(2)— Pbesuhptioit
— Inbteuctions.
Where no exceptions to instructions are
presented, it must be assumed that proper in-
structions were given to the jury.
On Motion from Supreme Judicial Court,
Waldo County, at Law.
Action by Sewall L. Staples against War
ren K. Emery and others. On motion for a
new trial after verdict. Motion overruled.
Argued before KING, BIRD, HALEY.
HANSON, and PHILBROOK, JJ.
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722
101 ATLAmiO REPORTER
(M&
Dunton & Morse, of Belfast, for plaintifT.
Tascns Atwood, of Auburn, for defendants.
PER CURIAM. Action to recover for serv-
ices. Defendant claimed an entire contract,
that plaintiCr was guilty of a breach thereof,
and further claimed damages in recoupment
for that breach. Plaintiff denied that the
contract was an entire one, and further
claimed that defendant, by failure to make
payments as agreed upon, was guilty of vio-
lation of the contract which did exist. No
«zceptions are presented, and it must be as-
sumed that proper Instructions were given
to the Jury. The evidence is bluntly conflict-
ing, but the Issues, under proper Instructions,
were issues of fact within the province of the
jury to determine.
After a careful examination of the testi-
mony, we are unable to say that the Jury so
manifestly erred as to require the verdict to
tie set aside.
Motion overruled.
41 1« Me. 3U)
SMITH V. TILTON.
.(Supreme Judicial Conrt of Maine. Ang. 24,
1917.)
1. Tbial ^s>251(2)— Instructions— Isbtteb to
Support.
Id an action for moDey paid to defendant
upon his fraudulent representation that an at-
torney had advised him that plaintiff might ob-
.tain an order for the sale of land, wherein de-
fendant denied the fraud and alleged that the
money was paid him as a part of the purchase
Srice of a farm convej'ed to plaintiffs son, but
id not allege plaintiff's. fraud in attempting to
obtain an order of sale, defendant's requested in-
struction that, if she placed the money in his
hands to conceal it so as to make a sale of the
land appear to be necessary, she could not re-
cover, was properly refused, as being without
the issues.
2. Monet Received «=3l2 — Defenses —
Fbaud.
In such case plaintiff's fraud, If any, in at-
-tempting to conceal the money paid to defend-
ant BO as to obtain an order for the sale of land
in which she bad a life interest with a power
of sale would not bar her recovery, where it
might enable her to live without selling the
farm, which, if unsold, would descend to her
deceased buaband's collateral heirs, whose inter-
ests were to that extent involved.
£)xceptions from Supreme Judicial Court;
Somerset County, at Law.
Action by Martha W. Smith, by conserva-
tor, against George A. Tllton. From the re-
fusal to give his requested Instruction, d«>
fendant excepts. Exceptions overruled.
Argued before KING, BIRD, HALET,
HANSON, and PHILBROOK, JJ.
Butler & Butler, of Skowhegnn, for plain-
tiff. Walton & Walton, of Skowbegan, for
■defendant.
l»HIIJ?ROOK, J. Action for money had
and received.
The plaintiff is the widow of Prescott A.
Smith, who died testate By the terms of bk
win all his personal property was bequeathed
to his widow, "the same to be hers absolutely,"
as the will states. She was also devisee of a
life estate in all his real property, with the
power to sell and dispose of the same, or any
part thereof, if necessary for her comfortable
support and maintenance. After her de-
cease, if there had been no disposal as above
provided for, the use, income, and occupa-
tion of the home farm were devised to the
only child of the testator, Harry P. Smith,
for the term of his natural life. At the de-
cease of the latter the home farm was be-
queathed to the person or persons who would
be the nearest relatives of the testator, ac-
cording to the laws of descent, other than
any and all issue of the son, Harry, and his
wife, Grace Butler Smith, which issue was
expressly excluded as beneficiaries under the
will.
When the conditions of the instrument be-
came known, the son was naturally disap-
pointed as to the provisions made for himself
and his disinherited children, and made
threats to contest the father's testament. It
is obvious from the record that the plaintiff,
with a maternal love of son and grandchil-
dren which is quite natural, sympathized
with Harry in bis disappointment. The mat-
ter became the subject of domestic discus-
sion, and members of the legal profession
were consulted with a view to ascertaining
whether the terms of the will, so far as they
affected Harry and bis children, could be
avoided. The plaintiff stated in her testi-
mony that she got her son and this identical
defendant to consult attorneys and find oat
if it could be done, saying also that if it
could be she so desired for the children's
sake and to please Harry. The necessity of
selling the real estate was clouded by the
fact that the personal property bequeathed
to the plaintiff amounted to about (2,400,
which sum included about $1,800 deposited in
a local bank, and also by the further fact
that, exclusive of this bequest, the plain-
tiff, at the time of her husband's decease,
bad about $400 of her own money on deposit
in a bank.
The defendant owned a farm wbl<^ Harry
desired to purchase. There was talk aoioag
the interested parties to the effect that if
the widow could give a good title to the home
farm then the defendant would convey hia
farm to Harry and receive In part payment
thereof the deed of the bome farm from the
plaintiff. Hence the question of necessity
of sale of the bome farm by the plaintiff
became the stumbling block which must be
removed from the pathway leading to the
power to give good title to that farm by the
plaintiff. She says that she told the de-
fendant and l>er son to ascertain, by consult-
ing a certain attorney in whom she professed
to have confidence, whether and how thcst
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SMITH ▼. TIIiTON
723
transactions conid be carried oat snccess-
fully. Finally, she soys, the defendant told
her they bad se^i this attorney and had been
advised by him that she would not be oblig-
ed to reach her lust dollar before she could
sell the home place, and that. If most of the
money was put out of sight, It would enable
the trade to be accomplished and carried
through more quickly. She says that she
relied upon this advice and the statement of
the defendant that It had been given, and
paid the defendant $600 "to get it out of
sight, so that trade could be completed quick-
er; so I would be able to sell the home
place."
She now says that she was deceived and
defrauded by the defendant, that the alleged
advice reported to her from her attorney was
in fact never given, and seeks to recover the
$600 which she paid him.
The defendant denies the deceit and fraud,
and alleges further matter of defense that
the plaintiff gave the $600 to her son to en-
able him to purchase the defendant's farm,
and that the same was received by him as a
part of the consideration for said farm
which he the same day conveyed to the son,
all being done in the presence of the plain-
tttt.
It does not appear from the record that
plaintiff ever executed a deed of the home
farm to the defendant ; her sole effort being
to recover the money paid to the defendant
under the claim already described.
[1] The defendant requested the following
instruction:
"That if the defendant falsely represented to
the plaintiff that Mr. M., her attorney, said it
would be legal for her to do so, yet if the
thereupon placed the $600 sued for in this ac-
tion in the hands of the defendant with intent
to get it ont of sight and for the purpose of giv-
ing the false impression that It was necessary
for her to sell the real estate of her deceased
husband, thereby depriving others of their
rights, and preparatory to so doing, then she
cannot recover the same back from the defend*
ant."
The presiding Justice declined to give this
instmction and allowed exceptions. The
case is before us upon these exceptions, and
upon no other ground. The requested in-
struction was evidently based upon the fa-
uilittr principle that, if a person commits a
fraud, he cannot ask the law to help him get
back his money which he fraudulently paid
away. But we have carefully examined the
declaration and brief statement, as well as
the plea and special matter of defense, and
do not find that fraud on the part of the
plaintiff was made an issue by the pleadings.
As we have already stated, the plaintlfTs
declaration raises the issue of fraud on the
part of the defendant. The defendant de-
nies this allegation and raises a further and
substantive Issue, namely, that the plaintiff
gave the $600 to her son to enable him to pur-
chase a farm of the defendant, and that the
same was received by the defendant as a
part of the consideration of said farm. The
defendant was evidently content to rest his
defense upon these pleadings, but plainly
they did not raise the issue of fraud or
fraudulent conduct on the part of the plain-
tur.
In many Jiuisdictions the law seems to be
well settled that Instructions should be con-
fined to the issues made by the pleadings.
We borrow the language from some of the
leading cases.
Instructions of the court should confine the
attention of the Jury to the Issues made by
the pleadings. Holt v. Pearson, 12 Utah, 63,
41 Pac. 560, citing as authority Terry t.
Shlvely, 64 Ind. 106 ; Ck>nlin v. Railroad Ck>.,
36 Cal. 404; Frederick v. BUnzer, 17 Neb.
366, 22 N. W. T70; Glass v. Gelvln, 80 Mo-
297, Instructions to Juries should be confin-
ed to the issues made by the pleadings.
Jacksonville Electric Oo. v. Batcbls, 54 Fla.
192, 44 South. 933, dtlng as authority Walk-
er V. Parry, 61 Fla. 344, 40 South. 68; Hl-
note V. Brlgmaa, etc., 44 Fla. 689, 33 South.
303. It is an established principle of law
that the instructions to a Jury must be based
upon and applicable to the pleadings. Klrby
V. Rainier-Grand Hotel Co., 28 Wash. 705,
69 Pac. 378. We think this principle is.
sound, workable, and in the interest of Jus-
tice in the trial of causes, and so we hold
that the refusal to give the requested in-
struction, it not being pertinent to any issue
raised by the pleadings in the case at bar,
was entirely proper.
[2] We do not overlook the contention of
the defendant that courts owe It to the pub-
lic Justice, and to their own integrity, Uh
refuse to become parties to contracts essen-
tially violating morality, or public policy,
even if objection be not made by the parties
interested. But this principle, in our minds,
does not apply here. Bights of third par-
ties, namely, the collateral heirs of the testa-
tor, were involved. The recovery of this
money by the plaintiff may enable her to live
without the necessity of sale of the real es-
tate, which, if not sold, will descend by the
will to those collateral heirs. The defend-
ant should not be allowed to keep this money
if so doing would fraudulently deprive thos»
heirs of what would rightfully be theirs.
We think this is not a case where courts
are required to interfere of their own voli-
tion in the Interests of public policy or th»
integrity of Judicial tribunals.
Exceptions overruled.
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101 ATLAMTIO BEPORTEB
(Mft
<us M*. no
KINO ▼. THOMPSON.
(Supreme Judicial Court of Maine. Aug. 28,
1917.)
1. Work akd Labob «=22— Plkadino.
General omnibus count, vith specification
that under it plaintiff will show that defendant
is indebted to her for labor according to ac-
count annexed, is count on account annexed
for work and labor, since plaintiff's right of re-
covery is limited by her specification.
2. Kefebsncx €=?99(2) — Opxration akd Ef-
fect—Findings OF Fact.
Under Rev. St. 1903, c. 84, {| 83, 85, mak-
ing auditors' reports prima facie evidence, the
«ffect of an auditor's report as prima facie evi-
dence for party offering it is not destroyed as
to uncontested findings, where she introduces
other evidence to disprove some of its findings.
8. Evidence «=>i71(22)— Opinion— Evidence
— Admissibiutt.
In an action on an account annexed for
work and labor in doing housework for wife of
defendant's intestate, objection to question what
amount of the time she was able to do her own
housework ia properly sustained as calling for
judgment of witness.
4. WoBK akd Labob «3>28(1) — Btidenob —
Weight and Sufficienct.
In action on account annexed for work and
labor, items of account must be proven by dear
•nd definite evidence.
6. WoBK AMD Labob «=>24(1) — Pleading —
Evidence Adkissiblb.
In action on account annexed for work and
labor, plaintiff can recover only for services spec-
ified in her account.
& BXFEBENCE «=>100(3) — REFOBT AB ETI-
DEHOK — Exceptions — Conclusions Based
OH IHOOMFEXENT EVIDENCE.
In view of Rev. St. 1903, c 84, t 84, no ex-
ception lies to the admission in evidence of an
auditor's report, objected to for the first time at
trial, on ground that his oondosions were based
on incompetent evidence.
Exceptions from Supreme Judicial Court,
Kennebec County, at Law.
Action by Annie B. Klngr against Herbert
Thompson, administrator of the estate of A.
Frank Pulsifer. Judgment for plaintiff, and
defendant excepts. Exceptions sustatoed,
and new trial ordered.
Argued before CORKISH, a J., and KINO,
BIRO, HALET, HANSON, and PHIL-
BROOK, JJ.
George W. Heselton, of Gardiner, for plain-
tiff. A. S. Littlefleld, of Rockland, for de-
fendant
BIRD, J. This is an action of assumpsit
originally brought against A Frank Pulsifer.
An auditor was appointed, and after hearing
before him defendant died Intestate, and hia
administrator, before trial by the Jury, be-
came the party defendant The writ Is dated
March 18, 1914,
The declaration contains two counts. The
first count Is upon account annexed for the
sum of $3,099.71, and the second is the gen-
eral omnibus couut with the specification
that under it "the plaintiff will show that the
defendant owes her for labor done between
the date of April 29, 1884, and the date of
the purchase of this writ some $3,099.71, k-
cording to the account annexed."
[1] The latter commences with a charge
under date of April 29, 1884, and ends \rith
one under date of November 22, 1913. Charg-
es are made In each of the months between
these dates, except 14. Each charge U made
under a specific date, and Is for either one
day's or one-half day's labor or work in
nursing the wife of Intestate, who was the
mother of plaintiff, or housework at the uni-
form rate of $1 per day. The second count
therefore Is substantially an account an-
nexed for work and labor. Carson v. Cal-
houn, 101 Me. 456, 458, 64 AtL 838; Gooding
v. Morgan, 37 Me. 419, 423. See, also, Pet-
tingill V. Pettinglll, 64 Me. 350, 358, 359.
Cape Elizabeth v. Lomtwrd, 70 Me. 39€, 400,
ia not authority to the contrary. Nor is the
dictiuu in Dexter Savings Bank v. Copeland,
72 Me. 220, 222. The speclflcatlcms render-
ed necessary for a valid attadiment of real
estate may be relied upon by the defradant
equally wltb that filed by plaintiff under
rule 11 (70 Atl. vlil). Primarily the former
Is for the information of creditors and piuv
chasers. Saco v. Hopkinton, 29 He. 26S,
271 ; see, also, Fairbanks t. Stanley, 18 Me.
296, 302; Jordan v. Keen, 54 Me. 417. But
obviously it cannot be held that the defend-
ant may not equally rely upon It In Car-
son V. Calhoun, supra, the specification in tbe
writ under the money count was not made
to enable a valid attachment of real estate
to be made, and yet it Is held that the claim
of the plaintiff was restricted and his rigbt
of recovery limited by his specification.
At the October term, 1914, the defendant
lileaded the general issue with brief state-
ment Invoking the statute of limitations, and
the case was sent to the auditor. It may he
inferred that tbe report of the auditor was
filed at the March term following. Tbe
cause was submitted to a Jury at the Mardi
term, 1916, and resulted In a verdict for
plaintiff in substantially the amount claimed
In the account annexed. The case Is before
this court upon exceptions and the usual mo-
tion for new triaL
In the bill of exceptions are found 13 ex-
ceptions to refusals to instruct tbe jury a^
requested, numerous exceptions to the ad"- ,
mission and exclusion of evidence, 6 excep-
tions to the charge to the jury of the presid-
ing justice, and exceptions to the admission
of substantially the whole of the report of
the auditor, as based upon Incompet^t evi-
dence.
[2] Tbe first exception to refusals to in-
struct Is:
"The plaintiff havin;; attacked the auditor's
report which was put in by her, that report no
longer makes for her a prima facie case, and she
must prove otherwise all the elements necessary
to make out her case."
The statute regarding auditors provides
that:
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KINO r. THOMFBOK
725
^eir "report la prima facie evidence upon
such matters only, as are expressly embraced
in the order." "Their report may be used as
evidence by either party, and may be disproved
by other evidence." R. S. 1903, c. 84, {{ 83, 85.
Here is found nothing to Indicate that Im-
peachment or disproof of the report la oon-
flned to the party not offering it, but rather
the contrary. So It is held in Howard v. Kim-
ball, 65 Me. 308, 326, 327, 328, 329, where the
report was offered by plaintiff and wherein
the court says:
"The defendant was at liberty to pat in the
same evidence which was before the auditor or
such other evidence pertinent to the case before
the jnry as he desired, and this right does not
seem to have been abridged. Either party baa
that right and will commonly find it necessary
to avail himself of it, as to disputed items,
whether the object be to impeach or to support
the auditor's report" without destroying the
prima facte effect of its findings unless success-
fully impeached or disproved.
To the same effect Is Kendall v. Weaver, 1
Allen '(Mass.) 277, 278, 279, where again the
report was offered by plaintiff, the court say-
ing:
"TUm party reading it may, as well as his ad-
versary, produce evidence in addition to it, and
may prove items not allowed by the auditor, or
offer proof to contradict any part of It."
See Smith t. California Ins. Co., 87 Me.
190, 195, 32 Atl. 872.
The instructions given by the justice pre-
siding were without error.
In view of the concluslcm to which the
court must come upon the exceptions dis-
cussed below, which will render a new trial
necessary, it Is deemed profitless to consider
the other exceptions to the charge of the pre-
siding Justice or to his refusal to instruct, or
other exceptions to the admission or exclu-
sion of evidence.
[3, 4] The following question was address-
ed by plaintiff to one of her witnesses, a
daughter of the plaintiff, subject to objection
and exceptions:
"Q. XVom that time down (when witness was
ten years old), what is yoar best judgment of
the amount of time your grandmother was able
to do her own housework?
"A. She was not able to do her own work one-
balf of the time, near."
The obvious Intention was to show that the
Inability of the defendant to perform work,
was proof of, or tended to prove, items of the
account annexed. Each item of the account
annexed is or may be a separate contract of
itself. Bennett v. Davis, 62 Me. 644; Tur-
geon V. Cote, 88 Me. 108, 111, 33 Atl. 787.
Vagueness and Indefiniteness of proof are
as much an objection to sustaining a count
for money had and received as they are In
other actions (Tltcomb v. Powers, 108 Me.
347, 348, 349, 80 Atl. 851) ; and we conceive
tbat clear and definite evidence is as essen-
tial In proof of the items of an account an-
nexed. The question, moreover, calls not for
a statement of fact, but for the Judgment of
tbe witness. We think the question Inad-
nsissible, and the exception Is sustained.
[S] Bxc^^ons are taken to the refusal of
the court to rule, as requested by defendant,
that:
"The plaindfF is only entitled to recover In
this action for the services specified in her ac-
count, and you are not authorized to foimd your
verdict on any other services."
It follows, we think, from our conclusions
already reached, that the Instruction request-
ed should liave been given. While It is prob-
ably true that the formal count in quantum
meruit Is no longer necessary in any case
(Lawes* PL in Assumpsit, 504), and that the
value of work and labor done may be recov-
ered under a general count in indebitatus as-
sumpsit, it should be noted that such general
count makes no attempt to set out or specify
the particular labor performed. Sudi, as we
have seen, is not the case in the present ac-
tion. The exception is sustained.
[I] Much of the confusion which has aris-
en in the case might have been avoided by
different procedure. The defendant objects
that the report of the auditor, or substantial-
ly the whole of it, is based upon illegal evi-
dence. In Briggs T. Gllman, 127 Mass. 530,
631, and cases dted, it Is correctly stated
that:
"^e object of the statute by which the courts
are authorized to refer cases to auditors and to
require their reports to be read as prima facie
evidence, although neither party may desire it,
is to simplify and elucidate the issue to be tried.
• • • If one of the findings of the auditor ap-
pears to the court, upon the facts reported by
nim, to be erroneous in matter of law, or in ex-
cess of the authority conferred by the rule of
reference, the jury may be instructed according-
ly, and so much of his report stricken out, leav-
ing the rest to have its proper wel^t and ef-
fect * * • But an objection to a portion of
the evidence upon which the auditor has based
his conclunon cannot be taken, as matter of
right, except by motion to recommit the report
to the auditor before the trial. To allow sudi
an objection to be taken for the first time, at
the trial, as a ground for rejecting the whole
report and proceeding to trial without it, would
defeat the purpose of the statute."
See, also. Silver y. Worcester, 72 Me. 322,
325; Collins r. Wlckwlre, 162 Mass. 143, 145,
38 N. B. 365 ; Harvard Brewing Co. v. KUll-
an, 222 Mass. 13, 16, 109 N. £2. 649.
And again it has been decided by the same
court that the objection that certain evidence
contained in an auditor's report was inad-
mlaslble la no ground for excluding the re-
port or for striking out those portions of It
on a motion made at the trial. Leverone ▼.
Arancio, 179 Mass. 439, 448, 61 K B. 43, and
cases cited. No exception lies to the admis-
sion In evidence of an auditor's report, ob-
jected to for the first time upon the grounds
that his conclusions were based on Incompe-
tent evidence. Winthrop y. Soule, 175 Mass.
400, 56 N. fii 675. See, also, Kendall v. May,
10 Allen (Mass.) 69; Allwright v. SkUUngs,
188 Mass. 538, 539, 540, 74 N. a 944.
The provisions of the statute under which
the decisions of the Supreme Judicial Court
of Massachusetts were reached are substan-
tially identical with our own. "Their report
may be recommitted. They may be discharg-
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726
101 ATIiANTIG REPORTER
(N.X
ed and others appointed." R. S. c. 87, { 89
(R. S. 1903, c. 84, i 84). We find nothing In
the decisions of onr own court holding other-
wise. As a new trial la ordered, application
for recommitment of the report may be made
In vacation (R. S. c. 87, f 37), or at the next
term. Phillips r. Gerry, 75 Me. 277, 279.
The motion for new trial Is not consid-
ered.
The exceptions are sustained and new trial
ordered.
(88 N. J. Bq. 81)
LAMBERT t. VARE.
(No. 42/402.)
(Court of Chancery of New Jersey. July 23,
1917.)
1. Deeds «=all2(9 — Cohstbuotion — Land
Covered.
The owner of land between a street running
parallel with the seacoaat laid the tract out in
streets, blocks, and lota, the streets running
from the existing street to the shore. Her con-
veyance of part thereof described the tract sold
as beginning at the line of the original street,
running thence southerly 275 feet ; thence east-
erly, parallel with the original street, 166 feet
to the east line of another street' thence north-
erly in the line of such street 275 feet to the
original street; thence to place of beginning.
The map referred to showed fractional lots not
numbered lying between the tract so described
and the ocean. Held, that the tract conveyed
did not extend to the ocean.
2. Covenants 9=331— Aoseeicent to Convex
—Application.
The owner of land lying between the ocean
and a street when she convoked a tract running
from the parallel street 2i5 feet toward the
water and bounded on two sides by mapped
streets laid out by her covenanted that all lands
which should thereafter be made by accretions
from the ocean or should accrue to her by
reason of a boardwalk being moved oceanward,
etc., should be subdivided into lots of the size
of those shown on the map, that the streets
shown on the map should be continued to the
high-water line of the ocean, and that all of the
restrictive building covenants should be binding
on such additional lots. Held, that the cove-
nant was not limited to accretions to that part
of the owner's tract which did not lie to seaward
of the land so sold ; the description thereof not
purporting to extend to the ocean.
8. Qttietino Title 9=944(1) — ^Aefibxativb ot
Issue of Title.
In suits to quiet title, complainant, who
must be adjudged to be in peaceable possession
before jurisdiction over the issue of title can be
assumed, is given the benefit of his peaceable
possession, and defendant assumes the burden of
the affirmative on the issue of title, and carries
the burden of establishing a title in conformity
with the specification of title which the statute
requires him to set forth in his answer.
4. Navioable Watebs 9=>44(3)— AocBxnon
—Title.
When a deed calls for the ocean as a bound-
ary, the land conveyed extends to the ocean for
all time, whether high-water mark recedes or
encroaches by natural accretions or erosions.
5. botjndabies 9=37(1)— location of hloh-
Wateb Line— Sufficiency of Evidence.
In a suit to quiet title to a tract of land
forming part of a beach, evidence held not to
justify finding that the line of ordinary high
tide of the ocean when title passed from the
common source of title to defendant's predeces-
sor was shoreward of a line 275 feet southerly
of a street running parallel with the shore, or
coincident with such line.
Suit between Archibald S. I^ambert and
Ida M. Tare. Decree advised pursuant to
the prayer of the bill.
Clarence I4. Cole, of Atlantic City, for
complainant Levis Starr, of Camden, and
Charles C. Babcock, of Atlantic City, for
defendant
LBAMINO, V. O. This suit has be«i
brought by complainant to qniet title to a
tract of land which forms a part of the
beach front at Atlantic City. At the hearing
complainant's peaceable possession was es-
tablished. No Issue at law having been
demanded, this court then proceeded to final
hearing on the issue of title.
All or nearly all of the locns in quo ap-
pears to have been below or oceanward of
the line of ordinary high tide of the ocean
at some time prior to this date. Both com-
plainant and defendant have acquired from
the state riparian leases covering the dis-
puted territory; bnt both riparian leases con-
tain the usual provision that the lease shall
be void and of no effect If the person to
whom the lease is made is not the owner
In fee of the fast land adjoining the land
in which the right of the state is conveyed.
The riparian lease to defendant contains
a further clause that it is made subject to
any rights which were acquired by Jesse
R. Turner under a former riparian lease
made to Turner by the state covering the
same territory. Complainant now enjoys
any rights acquired by Turner under that
riparian lease.
Part of the controverted territory, though
covered by the descriptions contained in
these two riparian leases, has now become
"fast land" by reason of accretions from
the ocean. The title to that part of the
locus in quo arvordingly requires no riparian
grant for its support, unless such accretions
are to be deemed artificial. The outer or
oceanward part of the locus in quo is still
probably below the line of ordinary high-
water mark, and title to that portion ap-
parently can only be claimed under the
state.
It is conceded that August 3, 1901, Hannah
E. ELelley was the owner of a large tract
of land extending from Atlantic avoine to
the ocean, and as such owner was then own-
er of the ripa. No title or rights had at
that time ever existed in any of the territory
oceanward of the Kelley tract except the
rights of the state therein. Atlantic avenue
runa parallel to the ocean and the Kelley
tract embraced the territory lying between
the ocean and Atlantic avenue from Colam-
bla avenue on the east to Tallahassee avenue
on the west.
The primary dispute at the foundation of
the present controversy arises from a deed
«=3For other ettm see some topic and KET-NDMBBR In all Key-Numbered Digasts and Ind«z«s
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LAMBERT v. VARE
727
of conveyance made by Mrs. Kelley to John
M. Hilton for a large portion of the Kelley
tract That deed described the land con-
veyed as commencing at Atlantic avenue
and extending toward the ocean to a line
parallel to Atlantic avenue and 275 feet
distant therefrom. As will hereinafter be
more folly pointed out, that deed was ob-
viously made npon the assumption on the
part of the parties thereto that the tract
conveyed did not extend to the ocean, but
left land owned by Mrs. Kelley between
the ocean and the extreme southerly bound-
ary of the tract thus conveyed. Upon that
assumption MiU Kelley subsequently (in
1903) conveyed to Jesse R. Turner and Har-
ry R. Tonng the land lying between the
southerly boundary line described in the
Hilton deed and the ocean, that deed call-
ing for the ocean as the southerly boundary
of the tract conveyed. It is under the rights
conferred by that deed that complainant
now holds.
Defendant claims that, although the deed
from Mrs. Kelley to Hilton did not purport
to extend to the ocean, It In facF did so ex-
tend, because, as It Is now alleged by de-
fendant, the ordinary high-water mark of
the ocean was at that time within 275 feet
of Atlantic avenue, and Hilton accordingly
became riparian owner by operation of that
grant. Under that assumption defendant
has acquired the benefits of a quitclaim deed
from Hilton extending from a point 236
feet south from Atlantic avenue to the
ocean.
It will thus be observed that complain-
ant claims the ownership of the ripa under
the deed from Mrs. Kelley to Young and
Tamer, whldi claim assumes that her earlier
deed to Hilton did not constitute Hilton
riparian owner, and defendant claims the
rlpa under a deed from Hilton, which claim
assumes that the deed from Mrs. Kelley
to Hilton did convey the rlpa.
Accordingly the major portion of the tes-
timony has been directed to the ascertain-
ment of the line of ordinary high tide of the
ocean at the date of the deed from Mrs.
Kelley to Hilton with a view of ascertain-
ing whether that deed constituted Hilton
the riparian owner. If it did, the subse-
quent deed from Mrs. Kelley to Turner
and Young for the territory extending from
the southerly boundary named In the Hil-
ton deed to the ocean, under which deed
complainant claims to have acquired the
rlim, would obviously convey nothing.
A proper examination of this issue neces-
sitates a more detailed statement of the
Kelley-Hllton conveyance. Its terms, and the
map with reference to which it was made.
As already stated. It is conceded that
Hannah B. Kelley prior to Aujnist 3, 1901,
owned the tract of land extending norther-
ly and southerly from Atlantic avenue to
the ocean and extending easterly and wester-
ly from Columbia avenue to Tallahassee
avenue. The legal title to a portion of the
tract was in one Henderson Synnamon, but
that circumstance is conceded to be imma-
terial.
Prior to August 8, 1901, Mrs. Kelley had
caused the tract to be laid out in streets,
blocks, and lots, and had filed in Atlantic
county clerk's oflBce a map of the tract
which delineated those physical features.
That map discloses streets extending north
and south from Atlantic avenue to the ocean
and numbered lots between the streets.
These several streets, in order, beginning
with the most easterly street, are Columbia
avenue, Bartram place, MUIidgevlUe avenue
(now called Kingston avenue), Berkley square,
and Tallahassee avenua As the land now in
controversy lies oceanward of the tier of lots
easterly of and adjacent to Berkley square,
only that portion of the map between Mil-
lidgevllle avenue and Berkley square need
be spedflcally shown. The following is a
copy of that portion of the map.
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August 3, 1901, an agreement was execut-
ed by Mrs. Kelley and John M. Hilton by the
terms of which Mrs. Kelley agreed to sell to
Hilton on terms spedflcally named certain
specified iwrtions of her tract That part
of the tract lying between MlllidgeviUe ave-
nue and Berkley square is described In that
agreement as follows:
"Also beginning at the southwest comer of At-
lantic and MillidKeville avenues and runs thence
(1) southwardly in the west line of Millidgeville
avenue two bmidred and seventy-five feet;
thence (2) eastwardly parallel with Atlantic
avenue one hundred ana sixty-five feet to the
east line of a fifty foot wide street called Berk-
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101 ATLAMTIO RBFOUTER
(N.J.
ley square; tbence (3) northwardly in the east
line of said Berldey square parallel with Mil-
lidgeville avenue two hundred and seventy-five
feet to the southerly line of Atlantic avenue;
thence (4) eaatwardly in the southerly line of At-
lantic avenue one hundred and sixty-five feet
to the place of beginning— jieinjr lots numbered
* • * 1 to 14, inclusive, in block 26 of lands
belonging to Hannah E. Kelley, situate between
Atlantic avenue and the Atlantic Ocean from
Columbia avenue to Tallahassee avenue, in At-
lantic Gity aforesaid, and duly laid out in
blocks and lots fay the said Hannah £!. Kelley, a
map or plan of which is filed in the clerk's
Dffice of the county of Atlantic at May's Land-
ing, New Jersey, and a copy of which is attach-
ed hereto and made a part hereol"
It will be observed that this description
of the land between Mlllldgevllle avenue and
Berkley square embraces 14 specific lots, and
Is a rectangular tract the southerly boundary
of which is described as parallel to Atlantic
avenue and 275 feet distant therefrom, and
further that the map, a copy of which is at-
tached to the agreement, discloses fractional
lots, not numbered, lying between the 275-
foot boundary line and the ocean as delineat-
ed on the map. It should also be here added
that the agreement of sale embraced all the
lots lying between Bartram place and MU-
Udgevllle avenue, and also those lying be-
tween Columbia avenue and Bartram place,
designated as lota 1 to 21, Inclusive, In block
24, and that the description of these lots was
In like manner to a line 275 feet south of and
parallel with Atlantic avenue, and also that
the map discloses fractional lots between the
ocean and the said lots numbered from 1 to
21.
[1] From the manner In which the land to
be conveyed Is described In this agreement
by reference to the map attached to it, It Is
entirely obvious that the parties .to the agree-
ment did not undertake to extend the land
on which the agreement operated to the
ocean, but, on the contrary, attempted to
stipulate for the sale of a tract of land to a
definite straight line distant 275 feet south-
erly from and parallel with Atlantic arenne
without Inclading land which the map dis-
posed as lying between the ocean and the
275-foot line. It Is this boundary line 275
feet southerly from AUantic avenue whldt
defendant now claims was at the date of this
agreement in fact in the ocean, and hence it
Is claimed, the conveyance made pursuant
to the agreement in fact included the ripa,
even though the parties to the agreement
may have intended and believed to the con-
trary.
The conclusion that the parties to this
agreement and the conveyance whldi fol-
lowed it did not Intend to convey to the ocean
is not only apparent from the manner in
which the land is described and the dellnea-
titma of the map annexed to the agreement,
but is also reasonably apparent from certain
covenants contained in the agreement, and
In the conveyance subsequently made pursu-
ant to the agreement, wbidi covenants re-
lated to the unsold portion of the Kelley
tract The agreement contains a series ot
restrictive building covenants subject to tbe
operation of which the contemplated convej-
ance was to be made, and also provides that
the same restrictive covenants should be in-
serted in all deeds of land thereafter made
by Mrs. Kelley of the remaining portion of
her tract, and then provides as follows:
"That all lands which shall hereafter be nad»
by accretions from the Atlantic Ocean, or which
shall accrue to her to the northward of the pres-
ent boardwalk by reason of the same being mov-
ed ocean ward or by reason of the lines of the
present Ocean Front Park being moved ocean-
ward, shall be subdivided into lots of the same
size as those shown on the map aforesaid ; that
the streets shown on the map aforesaid shall he
continued to the biph-water line of the Atlantic
Ocean; and_ that all of the following covenants
and restrictions shall he bindine and enforceable
upon such additional lots which shall accrue to
her by reason thereof."
[2] It is claimed by defendant that this
covenant has reference only to accretions to
that part of the Kelley tract which is not
southerly of the land described in the agree-
ment; but it seems Impossible to attribute
to it that restrlctea application. When it is
considered that the description of tbe land to
be sold does not purport to extend to the
ocean and that the general description of her
entire tract refers to the ocean as its south-
erly boundary, anti that the description la
made with reference to a map which shows
land between the land to be sold and the
ocean, and that the primary Interest of the
purchaser wouM necessarily be in the preser^
vation of the restrictive covenants in land to
be sold in front or oceanward of the tract
purchased, It seems impossible to conclude
that tbe stipulation above quoted was not In-
tended to bind Mrs. Kelley to observe those
restrictive covenants as to land thereafter
acquired by her through accretions in front
of the tract to be conveyed pursuant to the
agreement
The deed from Mrs. Kelley to Hilt(m, pur-
suant to the agreement already considered,
was made December 31, 1901. That deed
contains a description of the lanS in the same
language as the agreement and contains the
same covenants as the agreement Whether
that part of the covenants contained in the
agreement and deed of conveyance which con-
firmed all subsequent accretions to Mrs. Kel-
ley was operative to vest in her an equitable
tiUe to the accretions thereafter forming,
as against a person claiming the accretions
under Hilton, if the 275-foot boundary Une
Bhould now be found to have then been In fact
oceanward of high-water mark, I think it un-
necessary here to consider.
[3] In suits to quiet tiUe the complainant
who must be adjudged to be in peaceable
possession before jurisdiction over the issue
of titie can be assumed, is given the benefit
of his peaceable possession, and defenUant
then assumes the burden of the affirmative
of the issue of titie and carries the bur-
den ot establishing a titie in conformity witb
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X.AMBERT T. VARX
729
the 8p«clflcatl(m of title wUch tbe statute
requires such defendant to set fortb In his
answer. AccoiUlngly at the hearing defend-
ant assumed tbe burden of establishing that
the line of ordinary high tide of the Atlantic
Ocean was shoreward of 275 feet from Atlan-
tic avenue at the point shown as lot 14 on
the Kelley map when the title passed from
Mrs. Kelley to Hilton.
[4] The difficulty in establishing a fact of
that nature more than 16 years after the
date under investigation Is apparent from the
nature of the testimony adduced at the hear-
ing. Oonfllctlng testimony, <dne to the frailty
of memory of witnesses after so long an In-
terval of time, la inevitable In almost any
case; but the ascertainment of the location
of the line of ordinary high tide of the Atlan-
tic Ocean oa a nearly level sand beach upon
which the uninterrupted waves of the ocean
wash introduces many elements of uncertain-
ty not incident to ordinary Issues. When a
deed calls for tbe ocean as a boundary, the
boundary is certain for all time, for it ex-
tends to the ocean, whether high-water mark
of the ocean recedes or encroadies by natural
accretions or erosions. But the accurate as-
certainment of the location of the line of
ordinary high tide on our South Jersey ocean
front at a given date 16 or 17 years prior to
the period of investigation approaches the
imiMsslble. An inch of elevation may rep-
resent many feet of distance in tbe shore-
ward point to which the waves of the ocean
extend, and eacb successive wave varies in
force onU height ; and to this must be added
the circumstance that the influence of the
moon and sun causes every tide, even the two
tides of each day, to vary In height, and
there must also be recognized the additional
circumstance that winds and storms, whether
present or recent an'd whether near or far
removed, also render the tides abnormal, and
even barometric pressure materially affects
their height These and divers other circum-
stances disclose the imi)eratlve necessity for
accurate data, if certainty la to be attidned,
where the Issue Involved is whether oi'dinary
high tide of the ocean was a few feet shore-
ward or oceanward of a given point at a giv-
en time. On a fresh water river the line of
vegetation may form a reasonably accurate
guide, and on inland salt waters, especially
where steep banks exist, the water stains on
tbe coarse salt grasses afford an aid; but on
an almost level ocean washed sand beach,
where no vegetation exists either below or
above the line of high tide, the difficulties
presented in the absence of scientific data are
almost unsurmountable. Tbe mark impress-
ed upon the sands by the preceding high tide
signifies little unless the conditions surround-
ing tbat high-water mark are taken into ac-
count, and the dfibrls deiK>slted on the beach,
if any, by preceding high waters signifies lit-
tle unless it is known whether such deposit
bas been tbe result of a storm tide.
[5] In my Judgment tbe evidence in tbla
suit does not justify a finding that the line
of ordinary high tide of the ocean was shore-
ward of the line 275 feet southerly of Atlan-
tic avenue or even readied that line at tbe
time title passed from Mrs. Kelley to Hilt(Hi.
A detailed review of the testimony seems
unnecessary. Some witnesses have testified
that at what they called ordinary high tfde
tbe water did extend shoreward of at least
some parts of the line in question; others
have testified to tbe reverse. Tbe witness
for defendant whose testimony most impress-
ed me was John LeeJds. His work on the
premises was of a nature to appropriately im-
press upon bis memory the tidal conditions
there existing at tbe time his work was per-
formed, and his statement is that the Une of
ordinary high tide was 15 or 20 feet Inside
the 276-foot boundary line. Others in like
position to observe have testified to substan-
tially the same. On the contrary, witnesses
for complainant whose testimony seems en-
titled to equal weight have testified that the
line of ordinary high tide was outside or
oceanward of tbe 275-foot line. These wit-
nesses include members of the life guard who
patrolled the beach daily or twice dally for a
period of time from long before to after the
time of Inquiry.
Most of the testimony has been directed to
conditions existing in March, 1602, and sub-
sequent thereto. This arises from the fact
that in March, 1902, tbe erection of a bulk-
head was begun on the 275-foot boundary
line. This was some two or three months
after tbe deed from Mra Kelley to- Hilton
was made and over six months after the
agreement of sale which conferred the equi-
table title on Hilton. That bulkhead was be-
gun at a point easterly of the locality now In
question and was being constructed In a west-
erly direction on tbe line here in controversy.
The testlmcmy of several of the witnesses of
defendant who worked on that structure is to
the effect that when that bulkhead had been
built about one-half of its proposed length —
probably to about MUUdgeville avenue — a se-
vere storm occurred which washed away the
engine which was used in connection with the
work, and thus interrupted the work tor a
time. Mr. Bowen, who was inspector on that
work, testified that that storm washed away
the beach about 2 feet in depth at the vicinity
of Berkley square, and that prior to that
storm the tides had not Interfered with their
work, but that after the storm the tide came
15 or 20 feet inside the line of their proposed
work at Berkley square. The testimony of
other witnesses of defaidant who were em-
ployed on that work is consistent with the
view that prior to that storm the tides did
not reach tbe line of thdr work, but after
the storm it did extend beyond that line in
the vldnlty of Berkley square owing to the
washout caused by that storm. The single
fact that the stationary engine which supplied
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101 ATLANTIO BBPOSTER
(N.J.
power for the work on the bulkhead was lo-
cated 15 or 20 feet outside or ooeanward of
the line of the bulkhead up to the time of the
etorm strongly Indicates that ordinary tides
dfd not reach the line In question. The cir-
cumstance that In March or April, 1902, a
storm washed away that part of the beach
In such manner as to cause ordinary tides to
extend landward of the 275-foot line In ques-
tion Is obviously Immaterial If, in the year
1901, when the Hilton title was acquired by
him, the exterior line of his grant extended
only to a point shoreward of high-water mark.
Ocean City Ass'n v. Shrlver, 64 N. J. Law,
660, 46 Atl. 680, 51 L. R. A. 425.
I am convinced that the deed from Mrs.
Kelley to Hilton was not only designed to
extend to a line above the line of ordinary
high tide and to leave in Mrs. Kelley the title
to the land lying between that line an'd the
ocean, but also that the line thus established
was in fact above the line of ordinary high
water. •
Another claim of defendant yet remains to
he examined.
March 30, 1903, Mrs. Kelley conveyed to
Turner and Young the land lying between the
275-foot boundary line and the ocean, and
by mesne conveyances Turner became the sole
owner vmder that conveyance. The final
deed to Turner in severalty was dated April
10, 1008. In the meantime (January 20, 1908)
Hilton conveyed to Yocum lot 14 (» the Kel-
ley map. This conveyance was made by de-
scribing that lot by metes and bounds, and
did not call for the ocean as a boundary.
By mesne conveyances one Aiken became
owner of lot 14 on the Kelley map September
1, 1908. AU these deeds in the Aiken title
contain the same description as that In the
(deed from Hilton to Yocum. Defendant, Mrs.
Vare, now owns lot 14 under the Aiken title,
but the deed from Aiken to defendant, Mrs.
Vare, contains a description calling for the
ocean as a boundary. November 19, 1908,
Turner, as grantee of Mrs. Kelley of the land
outside of lot 14 extending to the ocean, ex-
ecute a deed to one R^chner for a lot ad-
jacent to and ooeanward of lot 14 and of the
same size as lot 14. That deed describes the
lot by metes and bounds, and does not call
for the ocean as a boundary, and contains
the following covenant:
"Provided however, and It Is hereby expressly
agreed and understood, that this conveyance is
for a definite tract of land, and that the said
party of the second part, his heirs or assigns, de-
rive no title to lands ooeanward of the tract
hereby conveyed by reason of the said Atlantic
Ocean at any time in the future encroaching
upon said land hereby conveyed, and upon said
ocean receding from lands hereby conveyed the
title to said lands ooeanward of said lands here-
by conveyed remains in said Jesse K. Turner,
his heirs and assigns, it is also understood and
agreed that in no case shall the said party of
the second part, his heirs or assign, have the
right to apply for a riparian grant in front of
the lands hereby conveyed, such a right being ex-
pressly reserved to the said Jesse R. Turner,
bis heirs and assigns, it is hereby agreed that
the present hi^-water line is ocean ward of the
lands hereby conveyed, which lands do not bor-
der on the Atlantic Ocean, but that lands now
owned by Jesse R. Turner in front of lands
hereby conveyed do border on Atlantic Ocean,
and that he, the said Jesse R. Tamer, his heirs
and assigns, have the exclusive right of applying
for said riparian grant under all circumstances.
Notwithstanding the above covenant, Beicb-
ner, by quitclaim deed dated August 31, 1909,
conveyed to Aiken territory embradiig lot
14 on the Kelley map and all land outside
thereof extending to the ocean. The deed
fr<xn Aiken to defendant Mrs. Vare accord-
ingly includes wiuttever rights Aiken pay
have acquired by the quitclaim deed which
be received from Relchner.
Defendant has accordingly made claim
that the deed from Turner to Relchner of
November 19, 1908, although purporting to
extend only 39 feet south from lot 14 of the
Kelley map, 1. e., from the 275-foot bound-
ary line heretofore described, and, although
containing the covenant above quoted, in
fact extended to the ocean, because the ocean
was at that time less than 39 feet southerly
of the southerly line of lot 14. In conse-
quence of that claim testimony of witnesses
has been heard touching the location of or-
dinary high tide November 19, 1908. It
should also be noted that Aiken, prior to his
conveyance to defendant, also procured quit-
claim deeds from both Hilton and Yocum
covering the territory between the northerly
line of lot 14 and the ocean.
The same or even greater difficulties have
been encountered in defendant's effort to es-
tablish that In the fall of 1908 the line of
ordinary high tide was landward of 29 feet
south of the southerly boundary of lot 14
as shown on the Kelley map. AU witnesses
appear to agree that the beach front has
gradually made out or oceanward from 1901
or prior thereto to the present time, but do
not agree as to the line of high tide in 1908,
and I am convinced that upon the whole
evidence no finding can be adequately sup-
ported to the effect that in 1908 the line of
ordinary high water was not oceanward of
the exterior boundary described in the deed
from Turner to Relchner — that is, a line dis-
tant 814 feet southerly from and parallel to
Atlantic avenue. But, should it be adequate-
ly established that at the date of the Tar-
ner-Relchner deed ordinary high tides ex*
tended shoreward of that Une, it is dllBcalt
to see how Relchner, or defendant claiming
under him, could acquire title to the accre-
tions as against Turner contrary to the cove-
nants of Reichner's deed above quoted.
My condusions are that the deed of De-
cember 30, 1901, from Mrs. Kelley to Hilton,
which deed embraced lot 14 on the Kelley
map, did not constitute Hilton a riparian
owner, but that, on the contrary, Mrs. Kelley
at that time remained the owner of "fast
land" outside or oceanward of lot 14, which
land so owned by her extended from lot 14
to the ocean, that Turner, as grantee of Mrs.
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COMMONWEALTH v. MAMATET
731
Kelley, by mesne conveyances became the
riparian owner, and that his riparian owner-
ship was not divested by the deed ot Novem-
ber 19, 1908, and that on May 11, 1914, as
such riparian owner. Turner was entitled to
receive from the state the riparian lease of
that date. It follows that complainant, as
grantee of Turner, became the owner of so
much of the locus in quo as may now be
above the ordinary line of high tide, and
lessee, under the Turner riparian lease, of
so much of the locus in quo as may at this
time be ontside or oceanward of the ordinary
line of high tide.
I will advise a decree pursuant to the
prayer of the bllL
(2ET Fa. 8»)
MA6IBB V. PHILADELPHIA & B. RT. CO.
(Supreme Court of Pennsylvania. April 16,
1917.)
Raiusoads «=9398(1) — Irjttbt or Track —
Negligence — Evidence.
In an action for damages for personal in-
jury from being struck by defendant's freight
car, evidence held not to diow defendant's neg-
ligence.
Aiq)eal from Court of Common Pleas, PliU-
adelpbla County.
Trespass by Kajman Magler against the
Philadelphia & Reeding Railway Company
to recover damages for personal injury. Ver*
diet for deffflidant by direction of the court,
and Judgment thereon, and jdalntUf appeals.
Affirmed.
AiKued before BROWN, C. J., and MES-
TBBZAT, POTTER, STEWART, and FRAZ-
BR, JJ.
Daniel O. Murphy, of Philadelphia, for ap-
pellant Wm. Clarke Mason, of Philadelphia,
for appellea
POTTER, J. In this suit to recover dam-
ages for personal injuries, the trial judge
i;ave binding Instructions in favor of defend-
ant company, upon the ground that there
was no evid^ice of negligence upon the part
ot plaintiff sufficient to justify its submission
to the jury, and for the further reason that,
even If any such Inference could be drawn
from idalntifTs testimony, it was dear that
he was guilty of contributory negligence.
We are not convinced that the court below
erred in Its conclusion, or that we should dis-
turb the judgment entered upon the verdict
directed by the court The plalntlfT in a
vague way undertook to locate the accident
at a cros.sing upon Rose street, in the bor-
ough of Tamaqua; but his story was inco-
herent He said he neither saw nor heard a
train, but that as he stepped upon the third
track he was struck by a box car. Plaintiff
did not show that the box car was operated by
the defendant company, or that there was
any shifting of cars at that time and place.
On the other hand, from the evidence of sev-
eral witnesses, it appeared that pi lor to the
accident plaintiff was so much under the in-
fluence of liquor that he did not know where
he was or where he was going. The physi-
cian, who was called to attend him after the
accident, testified that he was at that time
visibly Intoxicated. From the evidence of the
witnesses, who found him after the accident,
and picked him up and cared for him. It ap-
peared that he was found beside the railroad
track, with his foot cut off and lying against
the rail, at a point more than 1,900 feet from
any crossing. Plaintiff made no denial of the
fact that he was found after the accident at
the place indicated, nor did he attempt to
explain how he could' possibly have been at
that point with his amputated foot, bad the
accident occurred at the crossing, or at any
point other than that at which he was found.
E^roin the case as here presented by the plain-
tiff, the jury could not reasonably have
found that the defendant was negligent or
that it failed to discharge any duty whldi it
owed to the plaintiff, and a verdict In his
favor could not be permitted to stand.
The judgment on the verdict directed in fa-
vor of defendant is therefore affirmed.
(257 Pa. 327)
COMMONWEALTH ex reL ALEXOVITS
et ai V. MAMATEY et at
(Supreme Court of Pennsylvania. March 23,
1917.)
Appeax ANn EsBOB ®=>1138— AcADEinc Ques-
tion—Affismanck.
On appeal from a jadgment on a verdict for
defendants in a quo warranto proceeding to test
their right to hold offices in a corporation, where
it appeared that the terms of tneir offices bad
expired, the question was merely academic, and
the judgment of the lower court will be affirmed,
without regard to the merits.
Appeal from Court of Common Pleas, Al-
legheny County.
Quo warranto by the Commonwealth of
Pennsylvania, on relation of Leonard S. Alex-
ovlts and others, against Albert Mamatey and
others, to test the right of defendants to
hold office as directors of a corporation of the
first class. Judgment for defendants, motion
for judgment n. o. v. denied, and plaintiffs
appeal. Affirmed.
Argued before BROWN, O. J., and MES-
TREZAT, STEWART, MOSOHZISKEIt, and
rRAZER, JJ.
G. B. Prlchard, of Pittsburgh, for appel-
lants. Thos. S. Brown and R. A. & James
Ralph, all of Pittsburgh, for appellees.
P£at, CURIAM. The complaint of the ap-
pellants at the time this quo warranto pro-
ceeding was instituted was that the appel-
lees were unlawfully holding offices, and the
writ was invoked to oust them therefrom.
On January 1, 1917, the term of the office to
which each of them had been elected expired,
and, when this appeal was argued, at a later
«=sFor otber casM lae aame toolc and KEY-NUMB£R In all Key-Numberad Digest* and Indexa*
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101 ATLANTIC REPORTER
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date, tbe question Involred was purely ac-
ademlc The facts are either admitted or un-
disputed; but we could not enter Judgment
of ouster, for tbe reason stated, even if there
were merit in appellants' contention.
Judgment affirmed.
(267 Pa. MO
OLOUD, STILES & WORK, Inc., r. Wllr
LIAM8.
(Supreme Court of Pennsylvania. March 19,
1917.)
1. SET-OfP and C0UNTEBCI.AIK «=>34(1) —
Subject-Mattbr of Set-Oitf.
In an action on a written contract for the
construction of a aewei' and on verbal contract
for goods sold, defendant cannot counterclaim
an alleged wage claim, but in fact undivided
profits due him as a stockholder in the plaintiff
corporation.
2. Afpbal and Ebbob 4=3748(1) — AsaiON-
KXNTS OF EBBOB — SUFFICIZNCT.
An appeal will be quashed, where the rules
relating to assignments of error are not fol-
lowed.
Appeal from Court of Common Pleas, Del-
aware County.
Action by (3oud, Stiles & Work, Incorpo-
rated, against John J. Williams. From a
verdict for plaintiff, defendant appeals. Ap-
peal Quashed.
From the record It appeared that defend-
ant set up a claim for wages alleged to be
due him from plaintiff. It appeared that the
wage dalm was in fact a claim for defend-
ant's share of the undivided profits of the
plaintiff corporation in which he was a stock-
holder. The trial judge withdrew the coun-
terclaim from the consideration of the Jury.
Argued before BROWN, C. J., and M:ES-
TREZAT, STEWART. MOSCHZISKER, and
WALLING. JJ.
John B. McDonough, of (Chester, for ap-
pellant Klngsley Montgomery, of Chester,
for appellee;
PER CURIAM. [1, 2] There is no merit In
thla appeal, and, even if there were. It could
not be sustained, in view of the disregard of
the rule relating to assignments of error.
Appeal quashed.
(2S7 Pa. 3«»
SINKING SPRING WATER CO. v. GRINO.
(Supreme Court of Pennsylvania. March 23,
1917.)
L Judgment €=»217— "Final Jddomkwt."
No judgment or decree is final that does not
terminate the litigation between the parties to
the suit.
[Ed. Note.— For other definitions, see Words
and Phrases, iHrst and Second Series, E^al De-
cree or Judgment.
2. Appeal and Ebbob «=378(1)— Jitdgiients
Appealable— "Final Judgment."
A decree dismissing exceptions to a petition
for the appointment of viewers to assess dam-
ages for the taking of property by eminent do-
main was not final, so that an appeal therefrom
would be quashed.
Appeal from 0>urt of Common Pleas, Berks
County.
Proceeding by the Sinking Spring Water
Company against Catharine Gring. From a
decree dismissing exceptions to petition for
appointment of viewers, defendant appeals.
Appeal quashed.
Argued before BROWN, a J., and MES-
TREZAT. STEWART, MOSCHZISKER, and
FRAZEB, JJ.
Cyrus G. Derr, of Reading, for appellant
Edgar S. Richardson, of Beading, for appel-
lee.
PER, CURIAM. This appeal Is from the dis-
missal of exceptions to the petition of the
appellee for the appointment of viewers to
assess the damages, if any, sustained by the
appellant In its taking her property in the
ezerdse of an alleged right of eminent do-
main. The action of the court below Is clear-
ly not a final decree. No Judgment or decree
is final that does not terminate the litigation
between the parties to the suit Pennsyl-
vania Steel Company's App., 161 Pa. 671. 20
AtL 294. The appeal Is therefore quashed, at
appellant's costs, without prejudice to her
right to raise, in this court oa appeal from
a final decree against her In this proceeding,
or by a proper independent proceeding to be
Instituted by her, the question of the right
or franchise of the appellant to take her prop-
erty.
Appeal quashed.
aToT other easM ■•« lam* toplo and KBT-NUMBBB la all K«r-Numbar«d Dlgisti and Induw
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POWKK V. OVBRHOIiT
733
POWBJR ▼. OVEKHOI/r.
(Supreme Ooort of Pennsrlvaaia. March 19,
1»17.)
WiLta «=»38(3) — Vauditt — Ikbarx Delu-
sion.
Where a testatrix, when executing a will
leaving the bulk of her estate to one of her two
nieces, was laboring under an insane delusion
that the other waa guilty of theft from her, and
for that reason made no gift to such niece, except
the property supposed to have been stolen by
her, the will cannot be sustained.
Appeal from Coart of C(»nm(m Pleas,
Chester County.
Action by Emma McClellan Power against
Susan McClellan Overbolt. From a Judgment
for plaintiff on an issue of devisavlt vel non,
defendant appeals. Affirmed.
The facts appear in the following opinion
by Hanse, 3., anr defendant's motions for a
new trial and for judgment n. o. T.:
The verdict of the jury in favor of the plaln-
tlff determined that a certain paper writing, dat-
ed May 31, 1913, was not the valid will of Miss
Tfaomasine D. Boyer. The document was at-
tacked on two grounds : First, that Miss Boyer
lacked general mental capacity when it was
executed ; and, second, that it was the product of
an insane delusion entertained by her toward the
plaintiff, her niece. The jury announced that
thdr verdict was based upon the second ground —
that concluding that the tesUtriz was poaaexed
of general mental capacity.
Defendant's request for binding instructions
having been refused, and the verdict having
heen adverse, we are now asked to enter judg-
ment notwithstanding the verdict or to grant a
new trial— the latter request being based on
the suggestion that the verdict is against the
evidence and the weight of the evidence. It is
eameetly contended on behalf of the defendant
that the situation herej)re8ented is ruled by Mc-
Govran's Estate, 185 Pa, 208, M> AtL 816, amd
Hemingway's Estate. 196 Pa. 291, 46 Atl. 726.
78 Ant St Rep. 816, and that, in the light of
those cases, the verdict should he disregarded
and judgment entoied accordingly.
When the plaintiff attacked the document in
question, on the ground that it was the product
of an insane delusion, she assumed the burden
of satisfying the jury, not only that such de-
lusion exists, but that it was present in the
mind of the testatrix when the docnmoit was ex-
ecuted, and that it, in fact, controlled the dis-
position of her property. In McGovran s Esr-
tate, supra, the contestant whdiy failed to show
that the feding entertained by the testatrix
toward the contestant was without foundation
either in reason or fact, and that it was purely
a matter of imagination; and in Hemingway's
Estate, supra, conceding that the testatrix was
laboring under a delusion when the will was
made, there was no testimony from which a
jury could properly conclude tiat the will was
the result of the delusion. Alexander's Estate,
246 Pa. 68, 91 Aa 1042, Ann. Cas. 1916C 33,
and Kerr's Estate, 261 Pa. 223, 96 Atl. 404, are,
likewise, illustrations of lack of evidence essen-
tial to sustain a verdict against a will when
challenged on the theory of insane delusions.
"A ddnsion, which will render invalid a will
executed as the direct result of it, is an insane
Velief or a mere figment of the imagination — a
belief in the existence of something which docs
not exist and which no rational pers<m, in the
absence of evidence, would believe to exist."
Alexander's Estate, supra.
Was there, then, in the case before us, suffident
testimony frcm which, if believed, the jniy
could properly conclude that there was present
in the mind of the testatrix, when the will was
made, an insane belief— a belief that no rational
person, in the absence of evidence, would en-
tertain—that the plaintiff had, on different oe-
casions prior to the date of the will, stolen ar-
ticles of personal property from her; and was
that belief, if it existed, a controlling factor iu
the attempted disposition of her property to the
prejudice of the plaintiff? The testatrix had
made a will in 1904 by which, after some minor
bequests, she directed that the residue of her
estate riiould be equally divided between her
two nieces, the plaintiff and the defendant, and
named them as executors. In 1911, she made a
codicil to this will, merely changing two small
legacies. By the document in controversy, the
entire residue of the estate, after making other
dispositions substantially as in her former will,
is given to the defendant, and she is named as
sole e^cecutor. To the plaintiff are bequeathed
"one-hnlf dozen silver teaspoons marked 'M. E.
B.,' one-half dozen silver forks marked 'S. B.,*
and all table linen and napkins," and some other
small items of personalty.
To sustain the burden assumed by her the
iplaintiff Introduced evidence of the fact that,
shortly prior to the date of the document in con-
troversy, the testatrix, while at plaintiff's house,
charged her with having stolen her pockptbook.
whereas she had laid It in her bureau drawer
and there found it She accused her of having
stolen a bed cover, whereas she had given it to
the plaintiff years before. In the latter part of
June, 1912. she charged the plaintiff with having
taken a pair of sleeve buttons from her room at
her bonrding house in West Chester, while the
plaintiff was visiting her there, and. when the
plaintiff returned to her home in Western Penn-
sylvania, the testatrix wrote her on June 28,
1912, reiterating the chanre. and. after refer-
ring to the buttons, said, "No one has any right
to anything that belongs to me, unless I give it
to them, and has anything that belongs to me,
if not returned soon by express or some safe
way, will have trouble not profitable when a
certain time comes, for I have all my affairs
arranged some time a?o." On July 10, 1912. she
wrote again to the plaintiff on the subject, stat-
ing that she had not found the buttons, and
that she would place her trust in an "All-Wise
Providence to dbow to the one who had been
guilty of this crime," eta In April, 1913, the
testatrix viritcd the plaintiff at her home in
Brownsville, Pa., taking witii her the spoons and
forks heretofore referred to. These she gave to
the plaintiff, and the day following she stoutly
asserted that the plaintiff had stolen them— had
"snatched them out of her hands." That there
was any foundation for any of these charges
Is not pretended. That they were utterly with-
out foundation is beyond question. They were
mere figments of a mind disordered on a particu-
lar subject Tlere were no facts upon which
any sane person could reach such conclusions,
nor is it contended that there were any facts or
circumstances present upon which such charges
could rest, or from which such conclusions could
rationally follow.
Almost immediately following the charges with
reference to the spoons and forks, the testatrix
left the home of the plaintiff and visited the de-
fendant at her home in Scottdale, some two
miles distant. While there she expressed a de-
sire to have some changes made in her will.
She was taken to the office of B. A. Wirtner,
Esq., a member of the Westmoreland county
bar. She indicated to him the changes she de-
sired to make, nnd in the course of their con-
versation she "remarked that her niece [the
plaintiff] hadn't treated her properly. She
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hadn't treated ber the wa; she thought (he ought
to be treated." What she had in her mind she
did not dirulge to the scriTcner. A new will— the
paper in question — waa prepared and executed
two or three days following the visit to Wirtner.
Later the testatrix returned to West Che.^ter,
and April 15, 1S>14, took up ber home with Mrs.
Zaidce T. Ijeedom. Shortly thereafter, in con-
Tersation with Mrs. Leedom, the testatrix told
her, in substance, that "while she [the testatrix]
was there [at plaintilTa home] she [plaintiff]
had 'stolen spoons or forks,' the witness could
not recollect which, and followed the remark
with the statement. That waa all she would
tner get.' "
In the light of this testimony we cannot say
that there waa not sufficient evidence from
whidi this jury could find that the mind of
this testatrix was not controlled by an insane
delusion to the detriment of the plaintiff. That
abe believed that plaintiff had stolen from her
is beyond question under the evidence. That no
•ane mind could entertain this belief in view of
the circumstances is too clear for controversy.
That she entertained this delusion when she ex-
pressed herself about the plaintiff to the scriv-
ener is the only reasonable conclusion to be
drawn from the remark she made, especially so
when considered in connection with the threat
conUined in her letter of June 26, 1912, to the
plaintiff. That this delusion was a potent fac-
tor in her mind when she sought to dispose of her
property by the paper in question would seem to
be plain, when it is remembered that, after the
document was executed and she had returned to
West Chester, she repeated the charges to Mrs.
Leedom, specifying the articles stolen — spoons
and forks— and said, "That was all she [the
plaintiCn would ever get" She had then dis-
posed of her estate in substantially this fashion
so far as the plaintiff was concerned.
It was clearly the province of the jury, under
all the evidence to determine whether there was,
in fact, a delusion, and whether it waa present
In and operative upon the mind of the testntrix,
when the will in controversy was made. There
was sufficient evidence to sustain the verdict,
and we must therefore dismiss the rule for judg-
ment and the rule for a new trial.
Argtied before BROWN, C. J., and MES-
TREZAT, STEWART, MOSCHZISKBR, and
WALLING, JJ.
Arthnr Parke, of West Cftester, for ap-
pellant Robert 8. Gawthrop, of West Ches-
ter, for appellee.
PBR CURIAM. The Judgment In this
case la afflnned, on the opinion of the learned
court below discharging the rules for judg-
ment son obstante veredicto and tor a new
trial.
(267 Fa. 307)
MOUNTAIN CITY WATER CO. OF FRACK-
VILLB V. HARLEIGIl-BROOKWOOD
COAL CO.
(Supreme Court of Pennsylvania. March 23,
1917.)
Waters and Watbb Coukses 4s»284— Con-
tracts—Construction— I NTENT.
A water company agreed to furnish a coal
company with water to the amount of 250,000 '
gallons per day should there be that much sur- 1
plus after supplying the residents of a named i
town, and the contrnct further provided for a
minimum charge of $900 per year regardless of I
the amount of water furnished. Thereafter the '
contract was modified so as to provide for a I
greater compensation for the amount of \rater
furnished daily in excess of 60,000 gallons.
Held, that the coal company was not obligated
to receive 250,000 gallons of water per day, but
was bound only to receive water measured bj
the minimum annual rental of $900.
Appeal from Court of Common Pleas,
Schuylkill County.
Action by the Monntain City Water Com-
pany of Frackville against the Uarldgb-
Brookwood Coal Company. From a Judg-
ment for defendant, plaintiff appeals. Af-
firmed.
Assumpsit on a contract Defendant filed
an affidavit of defense which was In tfect
a demurrer to the statement of claim.
Bechtel, P. J., filed the following opinion In
the court of common pleas:
This case comes before us on plaintiff's dec-
laration and defendant's affidavit of defense,
raising the question of law that the statement of
claim is insufficient to sustain the claim made
by plaintiff. The controversy arises out of a
contract entered into between the plaintiff and
the defendant on the 24th of April, 1912, where-
in and whereby the plaintiff claims that the de-
fendant was bound to receive from him 250,000
gallons of water a day at 5 cents per thousand
gallons. This contract was to run for a period
of 10 years and continued as originally drawn un-
til the 13th of May, 1915, at which time a corre-
spondence began between plaintiff and defendant,
as the result of which it was agreed that the de-
fendant would pay to the plaintiff 10 cents per
thousand gallons for all water used over 60,000
gallons per day; all the other terms and condi-
tions of the contract to remain unchanged. This
ampjidment went into effect as of date of June
1, 1015. The plaintiff's declaration sets forth
that on December 28, 1916, it was capable of
supplying the defendant company with a daily
supply of 250.000 gallons of water, and on that
date gave notice to the defendant company of
its reodiness and willingness to supply the said
quantity of water.
The contract contains the further proviso that
if the quantity of water furnished at the meter
shall not in any one year, during the continu-
ance of this contract at the rate of five cents per
1,000 gallons, amount to $900 or more, the said
party of the second part shall nevertheless pay
to the said party of the first part the sum of
$900 for each and every year in which the quan-
tity of water furnisbe<l shall not equal or ex-
ceed the said sum of $900.
The prior obligation of the plaintiff company
to furnish the residents of Frackville with wa-
ter is also recognized in the contract, there be-
ing a proviso contained therein that the water
to be lurnished to the defendant company shall
only be furnished in the event of there being
suflficipnt left after this prior obligation of the
plaintiff has been discharged, and that In the
event that there is no water left for the defend-
ant, the nlnintiff shall not be held liable in dam-
ages therefor.
This suit Is brought to recover the snm of
$45,085.33, which is based on the calculation
of a consumption of 250,000 gallons of water
per day from January 1, 1916, to April 24,
1922. Tlie case turns on the question of wheth-
er or not the defendant is obligated by the con-
tract and the correspondence which later on
amended it to receive from the plaintiff 250.000
gallons of water per day.
It will he noted that nowhere in the contract
or the correspondence is there any clause which
obliges the detendnnt specifically to receive that
amount of water; in fact, the plaintiff is not ob-
ligated to furnish that amount of water unless
3For otber cuu sm same tople and KEY-IIVMBER In all Kw-Number«A Digests and Ind«x«a
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McMENNIMEN r. liEHIGH VXLUST COAL 00.
735
there be that much anrplaa after hia prior
obligations have been discharged. There is no
dispute of the fact that prior to January 1,
1916, defendant was receiTinx approximately
120,000 gallons of water per day, which was
all the plaintiff could fnmish. Plaintiff con-
tends that it was compelled to entail consider-
able expense in increasing its water supply in
order to comply with the demands of the de-
fendant for the famishing of 250,000 gallons of
water per day, and that therefore defendant
shoold be obliged to receive it and pay for it.
We cannot asree with this contention because
the correspondence discloses the fact that the
plaintiff wished to raise not only its rate of
water, but also the minimum rental which it
sought to increase from $900 to $3,600 per year.
Defendant refused to agree to this proposition,
and in the letter of May 27, 1915, which was
accepted by plaintiff and formed the basis of the
amended contract, appears this sentence: "Our
view is that we have an existing contract with
yon, but one with which you are not satisfied."
Tills letter makes the proposition that defendant
will pay ten cents per thousand gallons for all
water "which we take from you" in excess of
60.000 gallons per day.
It seems to ii8 too plain for argument that de-
fendant agreed to the Increased rate for its
water (nearly donble what it had been paying
before) in order to have plaintiff increase its
supply, and that plaintiff did Increase its Kupnly
in consideration of this concrasion made by the
defendant. It certainly would not appear just
to construe this contract as compelling defend-
ant to receive 250.000 gallons of water per day
when there is nothing contained therein compel-
ling plaintiff to furnish that amount It seems to
TI8 that it was intended by the parties and wag
expressed In the contract that the amount which
the defendant was obligated to receive was to be
measured by the minimum rental, to wit, $900
per year, and our conclusion in this respect is
strengthened by reason of the fact that plaintiff
attempted to increase this amount to $3,600.
What was the object of this minimum rental
proposition if it wag not to guarantee to the
plaintiff the consumption of the water represent-
ed by it?
In addition to this, plaintiff baa brought suit
against the defendant for the aum of 250.000
nllona of water per day to April 24, 1922.
Whether or not plaintiff can furnish this water
ia problematical. It says itself that the demands
upon its water supply are constantly increasing
by those who have the first claim upon it, and it
certainly does not seem to ns just to compel the
defendants to pay for water which it has no
guaranty whatever shall be delivered to it. In
addition to this, the amended contract, aa con-
tained in the letter as hereinbefore quoted, aim-
ply obligates the defendant to pay 10 cents per
tiiousand gallons for all water which "it takes"
in excess of 60,000 gallons per day. To construe
the contract as contended for by the plaintiff
would be to require the writint; into it of a pro-
'Hsioo which it does not contain, in addition to
which we do not think the obligation* would be
mutual.
We have therefore reached the conclusion that
the plaintiff's declaration filed in thia case is In-
sufficient in law to sustain the claim therein al-
leged, and have therefore entered the decree here-
tofore filed in this case.
The court entered judgment for defendant
Plaintiff appealed.
Argued before BKOWN, C. J., and MES-
TUEZAT, POTTEm, PKAZER, and WAL-
LIKG, JJ.
C. IS. Berger, of Pottsville, and James W,
Staull. of New Bloomfleld, for appellant H. S.
Drinker, Jr., and P. C. Madeira, Jr., both of
PhUadelidila, and H. M. Bcrke, of Shenan-
doah, for appellee.
PEB CURIAM. The Jadgmeat in this case
is affirmed on the (H>inion of the learned court
below directing it to be entered.
Judgment affirmed.
(267 Pa. 259)
McMENNIMEN t. LEHIGH VALLEY COAL
CO.
(Supreme Court of Pennaylyania. March 19,
1917.)
1. Master and Sbbvant «=»286(4, 27)— Injtt-
BT TO Skrvant — Tools and Appliances —
EVIDBNCK.
In an action by the widow of a deceased
employ^ to recover damages for his death on
the ground of the master's failure to furnish
reasonably safe appliances and method of work,
evidence held to sustain a judgment of compul-
sory nonsuit
2. Masteb and Skbvant 9=>219(1) — Assdup-
TioN OF Risk— Obvious Danoeb.
Where the danger attending an employe's
work is obvious, he assumes the risk.
3. Appeal and Ebbob «=>S43(2)— Action fok
Injubt— Neglioencb— VicK Principal.
Whether a track boss was the employer's
vice principal was unimportant, where the evi-
dence failed to establiah any specific act of neg-
ligence on the part of the track bosa to which
the injury could be attributed.
Appeal from Court of Common PleaSr
Schuylkill County.
Trespass by Anna McMennlmen against the
Lehigh Valley Coal Company, to recover dam-
ages for the death of her husband. From the
direction of a compulsory nonsuit which the
court subsequently refused to take off, plaln-
tUT ai4>eals. Affirmed.
Argued before BROWN, C. J., and MES-
TREBAT, POTTER, FRAZER, and WAL-
UNG, JJ.
£klward J. Maginnis, of Oirardvllle, and
William Wllhelm, of Pottsville, for appellant
Daniel W. Kaercher, of PottsvlUe, for ap-
pellee.
POTTER, 3. In this action of trespass, the
plaintiff sought to recover damages for the
death of her husband, which she charged
was due to negligence for which the defend-
ant was responsible. From the opinion ot
the court below we gather the facts, as fol-
lows: The husband of the plaintiff was em-
ployed at Packer No. 4 colliery of the Lehigh
Valley Coal Company. On the day of the
accident he was engaged in helping to replace
upon the track of an Inclined plane a coal
car which had become derailed. Small cars
were used to convey the coal to the breaker,
being hoisted up an outside plane by an end-
less chain on which were a series of hooks
slightly curved at the end, which fastened
behind the front axle of the cars. Safety
catches were provided, the first one being
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some 21 feet np the plane, with a triple safe-
ty catch at the bottom of the plane. Ex-
tending slightly over the latter, at the time
of the accident, a car was standing. Another
car jumped the track at the foot of the plane,
Jnst In front of the standing car. One Mc-
Intyre, whose official title seems to be that
of tT&ck boss, gathered some men. Including
McMennlmen, plalntlfTs hnsband, who was
the boss carpmter, and attempted to replace
the car. The men worked together at this
task, the boss using a jack and several other
appliances, but, falling in their efforts, it was
suggested, by whom It does not appear, that
if the car were drawn a short distance up
the plane the task would be easier. This
method was pursued. It was not shown who
gave the orders to the engineer to raise the
car, but, after it had been advanced some 6
feet, another attempt was made to get it on
the rails. This was done by several of the
men swinging the rear of the car, while other
men pushed at the front end, endeavoring
to swing it over the guard rail onto the
track. During this effort the axle in some un-
explained way <»me out of the hook on the
endless diain, the car ran backward the 6
feet to the bottom of the plane, collided with
the car that had been left standing over the
triple catch, and plaintiff's husband was
caught and killed.
[1, 2] Upon the trial, at the close of plain-
tiff's evidence, a compulsory nonsuit was en-
tered, and from the refusal of the court to
take it off, plaintiff has am>ealed. Her coun-
sel contend that the track boss, Mclntyre, as
the representative of defendant, "was In
idiarge of, directing and superintending the
work of replacing the car upon the track,
and that he was negligent In not securing the
car in a reasonably safe manner so that, if the
chain hook slipped, the car would not plunge
back down the plane." It apt)ears from the
evidence that there was a chain at the head
bouse which the men might have used if they
had seen prefer to do so. But plaintiff's wit-
ness, O'Donnell, testified that the men fre-
quently put cars on the track In the way they
were attempting to do It in the present in-
stance. Sometimes they used the dtaln and
levers. There was no evidence that the meth-
od now in question was unsafe. Nor was it
shown by whose orders this method was
adopted. It appears to have been done by
common consent of the workmen. "Some one
of the crowd" suggested It. The defendant
cannot be held responsible for the failure of
the men to use the chain. It was accessible.
If they bad thought its use would be helpfuL
At the time of the accident a car was stand-
ing partly over the lower safety catch. Had
this car been moved further down, the de-
scending car would have been stopped by
the safety catch and the two cars would not
have come in contact. But it is not alleged
that it was negligence to leave the lower car
where It was. Any of the men, including
plalntlfTs husband, could have moved the
car back. If It had occurred to them to do so.
There was no evidence to support the aver-
ment that the hook slipped from the axle be-
cause it had become worn. On the contrary,
plaintiff's witness, O'Boyle, testified that ho
could not explain how the hook happened
to slip out and let the car ran back. Hie
attempt to replace the car upon the trac^
was made in an ordinary way, and the slip-
ping of the hook seems to have been an ac-
cident which no one was bound to foresee.
Whatever danger may have attended the
effort was obvious to plaintiff's husband. He
was a skilled mechanic, he was familiar with
the Incline, and it was part of his duty to
Inspect it dally and to keep It in repair. He
oould see the other car standing a few feet
away, with its bumper extending over the
safety catch. He seems to have chosoi his
own position at the side and near the end of
the car.
[3] The track boss, Mclntyre, was not
changed with committing any negligent act
while he was co-operating with the other men
In attempting to get the car back upon the
track. He was charged with adopting an un-
safe method of doing the work, but the evi-
dence did not sustain the charge. Whether
Mclntyre be regarded as a vice principal or
not Is unimportant. The evidence failed to
establish any specific act of negligence on
the part of either Mclntyre or the defendant
company to which the death' of plaintiff's
husband can be justly attributed.
The motion to take off the nonsuit waa
properly refused, and the judgment Is af-
firmed.
(2S7 Pa. 442)
MANCHESTER TP. SUP'RS t. WAYNE
COUNT! COM'RS.
(Supreme Court of Pennsylvania. April 16,
1917.)
1. Statutes «=»16©— Bepeaii— Rbvivai/— Con-
BTITDTIONAI. PKOVIBIONS.
County commissioners must keep in lepair
so much of an abandoned turnpike as passes
through a township, as required by Act April
20, 1005 (P. Ia 2S7), and Act April 26. l60T
(P. L. 104), where Act May 10. 1909 (P. U
499), repealing such prior acts, was itself re-
pealed by Act March 15, 1911 (P. L. 21), since
the rule that, where a repealing statute is re-
pealed, the original statute is revived, waa not
afEected by Const, art. 3, { 6, providing that no
law shall be revived, amended, or extended by
reference to its title only, and that so much aa
is revived shall be re-enacted and published at
length.
2. STATtmEs ®=>169— Bepiai/— CoNSTinmoN-
AL Provisions— CoNSTROCTiON.
Such constitutional provision is restricted
in its application to express statutory revivals
of prior statutes, and does not abrogate the
common-law rule that, when a repealing statute
is itself repealed, the first statute is revived
without formal words, in the absence of any
contrary intention, expressly declared or necea-
sarily implied from the enactment
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MANCHESTER TP. SUP'ItS v. WAYNE COUNTY COM'RS
737
Appeal ttom Court of Comioon Pleas,
Wayne County.
Petition for mandamus by the Supervisors
of Mancbester Township against the Commis-
sioners of Wayne County. From a judgment
of mandamus, awarded on flnal hearing, de-
fendants appeal. Judgment affirmed, and ap-
peal dismissed.
Argued before BROWN, C. J., and POT-
TER, STEWART, FRAZEai, and WAL-
LING, JJ.
Charles A. McCarty and M. E. Simons,
both of Honesdale, for appellants. E. C.
Mnmford and J. O. Mumford, both of Hones-
dale, for appellees.
STEWART, J. In 1898 the county of
Wayne, by proceedings instituted under the
act of Jane 2, 1887 (P. h. 306), which pro-
vides for the taking over by counties of turn-
pike roads, or such parts of them as lay
within their respective limits, and freeing
the same from tolls, appropriated the Little
Equinunk and Union Woods turni^ke road,
which had been constructed through M:an-
<diester township in said county. From that
time to the present this turnpike roa'd has
been used and maintained as a township
road by Manchester township, free of tolls.
In 1916 the supervisors of the township pre-
sented their petition to the court of common
pleas, setting tottix the above-stated facts
and praying that a writ of mandamus issue,
(directed to the commissioners of the county,
requiring than, in rdief of the township, to
maintain and keep in repair said appropriate
«d turnpike road. An alternative writ fol-
lowed, to whidli the conunisaloners made an-
swer, admitting the facts to be as stated, but
denying the legal liability of the county for
the maintenance and repair of the road. Aft-
er a full hearing of the case, a peremptory
writ was awarded. The appeal is from the
judgment so rendered. A brief review of
the legislation touching the condemnation
and appropriation by counties of turnpike
roads is necessary to an understanding of the
real issue. The condemnation of this partic-
ular road wask as we have said, under the
general act of June 2, 1S87 (P. U 306). By
the eleventh section of this act it is provided
that:
"When any turnpike, or portion thereof, shall
have been condemned, under the provisions of
this act, for public use, free of toUa or toU-
gates, and the assessment of damages therefor
shall have been paid by the proper county, such
turnpike, or portion Uiereof, shall be properly
repaired and maintained at the expense of the
S roper city, township, or district, as other pub-
c roads or streets therein are by law repaired
and maintained."
As will be observed, by this act, the bur-
den of the maintenance of such turnpike
roa'd, after its taking over, except as to sudi
parts thereof as are within the limits of the
city, is placed upon the townships through
wUch the road iMsses. The act makes the
turnpike, when paid for, a public road, to be
101A.-47
kept and maintained as other public roads.
The law so continued until 1905, when by
the act of April 20, 1906 (P. L. 237), of that
year It was provide that:
"When any turnpike, or part thereof, lias been,
or may hereafter be, appropriated or condemned
for public use, free of tolls, under any existing
laws, and the assessment of damages therefor
shall have been paid by the proper county, such
turnpike, or part thereof, shall be properly re-
paired and maintained at the expense of the
county, city or borough in which the said turn-
pike, or part thereof, lies, or the same may be
imposed under any existing laws by the said
county, city or borough."
By ttie second section of the act, all acts
or parts of acts inconsistent with the Ijerms
of the act were repealed. One certain effect
of this act was to relieve the townships of
the burden of repair and maintenance of the
roads taken over which bad l)een imposed on
them by the earlier act This act of 1005 was
a wholly separate and independent piece of
legislation. It was not an amendment of
any act, nor did It repeal any act; it did not
pretend to do either. It did, however, super-
sede so much of any existing act as was re-
pugnant to any of its provisions. There was
but one existing act — the act of June 2, 1887,
supra — that could possibly conflict with it,
and that only in the one provision in the ear-
lier act that Imposed the expense of repair
and maintenance upon the township, whereas
the later act imposed it on the counties. It
follows that the act of June 2, 1887, remained
In full force, unaffected by the act of April
20, 1905, except In the particular mentioned.
Then followed the act of April 25, 1907, which,
as Indicated in its title was amendatory of
the act of April 20, 1905. But the amend-
ment went no further than to bring within
the provisions of the earlier act "abandoned
turnpikes and turnpikes belonging to com-
panies or associations which had been dis-
solved, or may hereafter be dissolved," leav-
ing the burden of repairing and maintenance
where the act of April 20, 1905, had placed it,
namely, on the counties except in cities and
boroughs. This amending act was without
other effect on the act of June 2, 1887. Then
came the act of May 10, 1909, which in sec-
tion 1, provided as follows :
"When any turnpike, or part thereof, has been
or may hereuter l>d appropriated, or condemned
for public use, free oi tolls, under any existing
laws, and the assessment of damages therefor
shall have been paid by the proper county, or
when any turnpike company or association has
heretofore abandoned or may hereafter abandon
its turnpike, or any part thereof, or when any
turnpike company or association, owning any
turnpike, has theretofore been dissolved, or may
hereafter be dissolved, by proceedings under any
existing laws of this commonwealth, auch turn-
pike, or part thereof, shall be properly repaired
and maintained at the expense of the township,
city, or borough in which the said turnpike, or
part thereof, lies."
By the second section of this act, the acts
of April 20, 1905, and of April 25, 1907, are
expressly repealed; so, too, "all other acts,
or parts of acts, in so far as they are incon-
sistent with the provisions of tills act" Next
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738
101 ATLANTIO RBPORTBB
(Pa.
came the act of March 15, 1911 (P. L. 21),
which In Its terms expressly repealed, with-
out more, the act of May 10, 1900, leaving the
general act of 1887 otherwise unaffected.
The effect of this act was to restore to the
original act of June 2, 1887, the eleventh sec-
tion as It had appeared in the original enact-
ment, but which had been superseded by the
act of 1905.
[1] The present proceeding was begun on
the theory that the act of May 10, 1909,
which In express terms repealed the acts of
1905 and 1907, Itself having been repealed
by the act of March 15, 1911, it necessarily
resulted that both these repealed acts were
revived and restored. If this be a correct
view of the law, it must follow that the case
was properly ruled in the court below. It is
insisted on the part of appellants that no
such effect can be given to the repealing act
of 1909, in view of the constitutional provi-
sion (section 6 of article 3 of the Constitu-
tion) which declares that:
"No law shnll be revived, amended, wr the pro-
visions thereof [be] extended, or conferred, by
reference to its title only, but ao much thereof
as is revived, • • • extended or conferred,
shall be re-enacted and published at length."
If this latter view be correct, then It must
result that with the faU of the acts of 1905
and 1907 fell also the act of June 2, 1887, as
an efficient and operative piece of legislation.
Inasmuch as the eleventh section of the lat-
ter act, as originally passed. Imposed the ex-
pense of repair and maintenance on the town-
ship, and this section having been repealed
by act of 1005, placing the burden on the
counties, except as a revival follows of one
or other of these acts upon the repealing act
of 1900, the burden of repair and mainte-
nance rests nowhere, and the act of 1887 Is
worse than Idle. Certainly it could not have
been within the legislative Intent to produce
such result. While legislative intent is prop-
erly a subject for consideration In the inter-
pretation of statutes, it counts for nothing
when the matter for consideration is the
conformity or want of conformity to consti-
tutional requirements. It is the legal conse-
quences of the repeal of the act of 1909, and
that alone, that we have here to consider.
Did the repeal of that act operate to revive
and renew the several acts which it bad re-
pealed? If this question were to be decided
on common-law principles, it would be of
simple solution, since it is a familiar rule,
governing statutory construction under the
common law, that, when a repealing statute
is itself repealed, the first statute is revived
without formal words for that purpose, in the
absence of any contrary intention, expressly
declared or necessarily to be Implied from
the enactment.
The contention on the part of appellants,
ndwever, is that the constitutional provision
above quoted has abrogated this common-
law rule, with the result that since the adop-
tloii jf the Constitution no act can be revived
or renewed, except in the manner th«e pre-
scribed. That the provision may be so read,
without doing violence to the language em-
ployed, must be admitted. This, however, is
far from conclusive, for If with equal reason
a restricted meaning can be derived from the
language employed, in the absence of any
express repeal of the common-law rule, the
presumption that none was Intended must
prevail. We say this in view of the situation
that existed previous to the adoption of the
Constitution, suggesting, as it does, the mis-
chief that the provision was manifestly In-
tended to remedy. It Is a matter of common
knowledge, at least among those whose duties
have familiarized them with the history of
legislation dn the state, that, prior to the
adoption of the present Constitution, It was
of so frequent occurrence that statutes were
revived, or amended, as the case might be,
by simple reference to the title, that it be-
came almost a settled custom to so legislate,
with the unfortunate result that much legis-
lation was enacted improvidently, without
that intelligent consideration and understand-
ing of the matters Involved which is so es-
sential to the procurement of wise and whole-
some legislation. The purpose of the provi-
sion was to put an end to this method of
iQgislatlng by requiring in every case that the
proposed revival or amendment be re-enacted
and published at length, to the end that In-
telligent action might better be secured. "In-
separable from the history of the C<«stittt-
tion and the facts surrounding its creation,
and therefore a potent elemoit in the con-
struction of its general terms, is the consid-
eration of the objects and purposes to be ac-
complished, or the mischiefs designed to be
remedied or guarded against. In the interpre-
tation of statutes, these reflections may en-
large or restrict the natural and literal sig-
niScance of the words used, and they are ap-
plicable with the same effect to the Interpre-
tation' of the CX>n8tltuaon." Endlidi on
Interp. Stat { 518.
[2] If we are correct in our statement as
to the object and Intent to be accomplished by
the constitutional provision — and this we
think cannot be questioned — ^it would seem
to follow that, notwitlistanding the general
terms employed in the constitutional provi-
sion, the plain Intent was that it should be
restricted in Its application to what may be
designated as express statutory revivals as
distinguished from revivals by oi)eration of
law, since the latter could not fall within tba
mlsclilef the provision was Intended to guard
against, nor could Its requirements as to re-
enactment and publication be at all applica-
ble where the revival was by common law.
This particular constitutional provision Is not
peculiar to our state. In one form or other
it appears in most state Constitutions adopted
in recent years. The fact that in many of
the states which have adopted the provision
a legislative enactment has followed forbid-
ding revival of statutes by the common-law
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SMITH V. PEOPLE'S NATURAL OAS CO.
739
rule shows how general Is the conception that
more Is needed to overcome the common-
law role than such a constitntlonal provision
as we are considering, because of the latter'a
susceptibility to two different constructions.
In Pennsylvania we have no such statutes.
A very well considered and entirely convinc-
ing opinion Is to be found in the case of Wal-
lace V. Bradshaw, 54 N. J. Law, 175, 23 AtL
759. The provision in the Constitution of the
state of New Jersey difFers in no material
respect from the provision in our own, and
exactly the same question we have here was
there ajdjudicated In a reversal of the lower
court In the opMon of the court, as deliver-
ed by the Chief Justice, this occurs (51 N. J.
Law, 176, 23 Atl. 758):
"The phrase that 'no law shall be revived or
amended by reference to its title alone' cannot
be forced into a signification that will compre-
hend any revival that is- not a statutory one, for
there is not, and cannot be, revival by operation
of law that can be said to ojperate on the act re-
vived 'by reference to its title alone.' The clause
obviously would have to be interpolated to im-
part to it that breadth of efficacy claimed for
m the decision before ua. Thus it would be
necessary to transmute it into some such form
as this: "No law shall be revived by operation
of law, nor shall it be revived or amended by
reference to its title alone.' And the harmony
that would exist in the sentence thus construct-
ed, and its freedom from all tautology, would
aeem to demonstrate that these methods of re-
vival are diverse and distinct things, and that
only one of tliem is embraced in this constitu-
tional expression. I cannot agree to the prop-
osition that because the people, in their Const!-'
tution, have declared that a law shall not be
revived by a statutory reference to its title, that
they have thereby likewise declared that it shall
not be revived by the operation of a well-known
rule of the common law. And this is plainly the
sense in which the provision was expounded."
What Is here stated applies with equal
force to the provision in the Constitution of
this state, since there Is no material differ-
oice lo the language employed, and our con-
clusion is the same with respect to the lati-
tude to be allowed It
The judgment is aiHrmed, and the appeal is
dismissed.
(IS7 Pa. 4B0)
STERLING TP. SUP'RS v. WAYNE
COUNTY COM'RS.
(Supreme CJourt of Pennsylvania. April 16,
1917.)
Appeal from Court of Common Pleas, Wayne
County.
Mandamus by the Supervisors of Sterling
Township against the Commissioners of Wayne
County. Mandamus awarded, and defendants
appeal. Affirmed.
Arjnied before BROWN, C. J., and POTTER,
STEWART, FRAZER, and WALLING, JJ, ,
Charles A. McCarty and M. E. Simons, both
of Honcsdale, for appellants. E. C. Mumford
and J. O. Mumford, both of Honesdale, for ap-
I)ellee.
STEWART, J. This case was heard in the
court below, and argued here on appeal, with
tlie case of Supervisors of Manchester Town-
jjliip V. Wayne County, 101 Atl. 736, in which
the opinion has just been handed down, affirming
the judgment appealed from. The facts are the
same in both cases, and the question raised is
the same in each. It follows that like disposi-
tion is to be made of this.
The assignments are overruled, and the judg-
ment is affirmed.
(267 Ptt. 396)
SMITH et aL v. PEOPLE'S NATURAL
GAS CO.
(Supreme Court of Pennsylvania. April 16,
1917.)
1. Mines and Minebalb ®=378(7)— Oil. and
Oas Lkase— Biix to Enforce Fobfeitube.
Where the lessor of an oil and gas lease
executed November 2, 1902, received a quar-
terly rental for 10 years, and the lessee, who
had not entered upon or explored the premises
as required by the lease, tendered the rent due
on September 5, 1912, which was returned be-
cause not tendered in time, with a statement
that the lessor did not care to continue the
lease, and the lessee tendered the rental for each
quarter until the rental of June 4, 1913, which
was not tendered when due and was refused, the
lessor's biU in equity to forfeit the lease for
nonpayment of rent was properly dismissed,
as the lessor's conduct admitted that the lease
was in existence and had not been rescinded.
2. Landlobd and TenaKt <s=3lll— Nonfat-
MENT OF Rent— FoBTEnsDBB}— Equity.
There is a distinction between a proceeding
to enforce a forfeiture and one asking for re-
lief from a forfeiture, and while courts of equity
will not generally relieve against a forfeiture,
except in the case of nonpayment of rent, where
full compensation can be made by decreeing the
arrears to the lessor, they will not lend their
assistance to the enforcement of a forfeiture,
but will leave parties to their legal remedies.
3. Landlobd and Tenant €=>111— Lease-
Conditions OF FOBFEITOBB.
The usual rule is that a lease must state
the conditions upon which a forfeiture can bfl
declared, or no forfeiture can bo declared.
Appeal from Court of Commoa Pleas, (Tlar-
lon Ck>unty.
Bill in equity by D. B. Smith and others
against the People's Natural Gas Company
to enforce the forfeiture of an oil and gaa
lease. From a decree dismissing the bill,
plaintiffs appeaL Decree affirmed, and bill
dismissed.
Argued before BROWN, O. J., and STEW-
ART, MOSCHZISKER, FRAZER, and WAL-
LING. JJ.
John S. Shirley, Don C Corbett and B. E.
Rugb, all of Clarion, for t^pellants. F. J.
Maffett and H. M. Rimer, both of Oarlon,
and Christy Payne, of Pittsburgh, for ai>-
peUee.
STEWART, J. The discussion of this <ase
has taken a much wider range than was nec-
essary under the pleadings. The several
questions touching the legal effect to be given
the contract out of which the contention
arises, and the reciprocal rights and obliga-
tions of the parties thereunder, all of which
were so elaborately discussed, are not In any
way Involved In the issue presented. The
one question In the case Is whether, under
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740
101 ATIiAimO REPORTER
(Pa.
the terms of the particular contract we hare
to consider, and below In part recited, wheth-
er It be a grant, or a lease, or an option, the
grantor or lessor la entitled to the interven-
tion of the court to have the estate granted
declared forfeited because of nonpayment at
the appointed time of a stipulated quarterly
installment. The facts are briefly these:
On the 2d of Noyember, 1902, the appel-
lant, with his wife, who was the owner of
the land, executed and delivered to William
Falrman, and his assigns, an Instrument un-
der seal, wherein it is recited that, in consid-
eration of $1 paid, they have granted, with
covenants of general warranty, to the said
Fairman and his assigns, all the oil and gas
In and under a certain tract of land situate
In Limestone township. Clarion county, con-
taining 65 acres. This la followed by a state-
ment of the terms on which the grant is
made in separate paragraphs. The first re-
cites that party of the second part agrees to
drill a well on said premises within four
months from the date of the instrument, or
thereafter pay to the party of the first part
^06 quarterly In advance until said well
shall be drilled, or the property or estate
granted is reconveyed or surrendered to the
party of the first part; second, that if oU be
found in paying quantities the party of the
second part shall deliver to the party of the
first part one-sixth of the oil so produced;
third, that in case gas be found in paying
quantities the consideration shall be at the
annual rate of $200 payable quarterly in ad-
vance, etc. ; the seventh redtee that the par-
ty of the second part "may at any time re-
move all its property, fixtures, etc., and may
surrender this lease and reconvey to the
party of the first part, its heirs and assigns,
the premises and estate hereby granted, and
thereafter be relieved from further liability
under this grant and Instrument" The other
terms and provisions are without signifi-
cance and need not be redted. On the 9th of
December following, Fairman assigned to the
People's Natural Gas Company, the appellee,
all his right and Interest in and under the
contract Up to the time of filing the pres-
ent bill no occupancy of the premises had
been taken by the appellee, and during this
period no attempt had been made to drill a
well thereon, but the appellee had continued
regularly to pay the stipulated quarterly
rental, as rental, of $8.06 in advance, until
September 6, 1912, a period of ten years.
On August 27, 1012, appellee sent check to
appellant for quarterly rental due on the fol-
lowing September 6th. This check appellant
returned to appellee. Inclosed in a letter from
the former's attorney in which this appears:
"Mr. Smith [appellant] does not care to con-
tinue the lease, and therefore returns the rental
you sent him in August. Ho now wants the
lease returned to him, and the purpose of this
letter is that yon return it to him promptly
at your earUest convenience."
The rental for each quarter thereafter was
traidered until June 4, 1913. The rental then
due was not tendered until June 16th, when
it too, was declined. On the following De-
cember 9th, appellant caused the following
notice to be served on appellee:
"This is to notify you that I hereby declare
forfeited the lease given by me and my wife
Ella Smith to M. H. Fairman and assigned to
your company, on 66 acres, more or less, in
Limestone township, Clarion county, Pennsyl-
vania, and that tho said lease has been void and
of no effect since June 4, 191S, for the reason
that you failed at that time to pay the rentals
dup under the terms of the lease as therein pro-
vided."
This was more than two years after the
appellant had refused the tender of rental
due September 5, 1912, and had demanded a
return of the lease.
[1] Appellant filed his bill in May, 1916, in
which, after setting forth the above facts,
he asked that the lease be declared forfeited,
void, and of no eftect and that appellee be
directed to deliver up the same. While the
failure of appellee to drill a well on the
premises within four months from the mak-
ing of the contract is a matter complained of
la the bifi, it is not made a basis for the
relief asked, as Indeed it oould not be. In
view of the fact that for the ten years fol-
lowing the agreement the appellee bad ac-
quiesced, and received the quarterly pay-
ments. The acceptance of these quarterly
payments, which both parties treated as rent-
al, Is wholly Inconsistent vrith, and fully neg-
atives, any claim that the contract had ei-
ther expired or been rescinded. Up to the
time when it is claimed that default was
made in the quarterly payments the relation
of landlord and tenant unquestionably ex-
isted, and the acceptance of the rent during
that period concludes the appellant from as-
serting anything to the contrary. Therefore
the bill of complaint suggests no other
ground for the relief asked for than the de-
fault in the quarterly payment of $8.06, and
it follows, from this, that, as we have al-
ready saltl, it is wholly imnecessary to con-
sider the several questions discussed by
counsel on one side and the other as to the
nature and character of the original contract
between the parties. For present purpose
we give the contract the construction the
parties themselves put on it The refusal by
appellant to accept the tender of September
6, 1912, is put distinctly on the ground that
the tender was not made in time. This is it-
self a clear admission that up to that time
the contract was a subsisting one, and bad
neither been rescinded nor revoked. The
learned court refused the prayer of the i>eti-
tloner and dismissed the bill. The appeal
brings before us the single question we have
above Indicated.
[2] It is to be remembered that It was af-
firmative relief that was here sought the
enforcement of a forfeiture. Our cases rec-
ognize a clear distinction between a proceed-
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Pa.)
PSBEIKS ▼. EALPBKN
741
lug tor the entorcement of a torfeltuie and
one asking for relief from forfeiture. Says
Sharswood, J., In Oil Creek R. R. Co, v.
Atlantic & Great Western R. R. Co., 67 Pa.
65, 72:
"He [the chancellor] exercisw, upon the ques-
tion presented, a sound discretion, under all the
drcnmstances of the case, for the moet part
untrammeled by rule or precedent. If the bar-
gain is 8 hard or unconscionable one, if the
terms are unequal, if the party calling for his
aid is seeking an undue advantage, he declines
to interfere. Therefore it is that, althongh a
court of equity will not in general relieve
against a forfeiture, unless it be in the case of
nonpayment of rent, where an exact and just
compeneation can be made by decreeing to the
landlord the arrears of bis rent, with interest
and costs, yet they never lend their assistance
In the enforcement of one, but leave the party
to his legal remedies."
The contract In t^e case Joat dted In ex-
press terms provides for a forfeiture In case
of failure to perform any of Its stipulations.
In the present case, as In the case of Mar-
shall y. Forest OU Co., 198 Pa. 83, 90, 47
Atl. 927, where the attempt was to forfeit a
lease for nonpayment of rental, the contract
contains no stipulation for forfeiture. It Is
there said, by the present Chief Justice:
"There is nothing in the lease providing that
it should be forfeited by the nonpayment of the
rental. The only forfeiture contemplated is that
resulting from an abandonment of the lease and
the removal of the lessee's property from the
premises; and the lessor could not have rescind-
ed the lease because the lessee failed to pay the
monthly rental. He had a right to enforce pay-
ment of the same by suit against the lessee for
each monthly default, and, upon such default,
in a short time any right of the latter in the
leased premises would have been divested in
proper proceedings by the former."
[S] The usual rule Is that a lease mnst
state the condition upon which a forfeiture
can be declared, or no forfeiture can be de-
clared. Vandevoort r. Dewey, 42 Hun (N.
T.) 68. Other authorities ml(^t readily be
dted of like totor, but these given nwke it
unnecessary to pursue the matter farther.
All we decide in the case Is that appellant
was not entitled to enforce forfeiture on the
ground set up in this bill.
It follows that no error was committed,
and the decree is therefore affirmed, and the
appeal is dismissed.
(2S7 Pa. mm
PERKINS ▼. HALPRBN et aL
(Sapreme Court of Pennsylvania. April 16,
1917.)
1- Appeal and Ebboe ®=»100S(2)— Fiumngs
OF Fact— Effect.
The findings of the court below, trying the
ease without a jury, have the effect of a ver-
dict, and will not be set aside, if there is evi-
dence to support them.
2. Saues «=9l99 — Delivibt— Sale on CBEorr.
Actual delivery and payment are not neces-
sary to transfer the title to goods sold, as goods
may be sold on credit and without delivery, if
the parties so intend.
3. Sales €=»218% — Action fob Pbice —
Tbaitsfeb of Titlk— Sufficienct of Evi-
dence.
In assumpsit for ^oods sold and delivered,
evidence held to sustain a finding tuat the title
passed to defendants when the goods were bill-
ed to them and they were permitted to with-
draw the goods from a warehouse on payment of
the duty.
Appeal from Court of Oommon Pleas, Phil-
adelphia County.
Assumpsit for goods sold and delivered by
James A. Perkins, to the use of the Bank of
Commerce, against Jacob Halpren and Harry
Mittleman, trading as Halpren & Mittleman.
Judgment for plaintiff for $2,232.27, on the
findings of the court sitting without a jury,
and defendants appeal. Afllnned.
Argued before BROWN, C. J., and STEW-
ART, MOSCHZISKER, FRAZER, and WAL-
LING, JJ.
J. B. Colahan, 3d, and Frank P. Prichard,
both of Philadelphia, for appellants. M.
Hampton Todd and Levi & Mandel, all of
Philadelphia, for appellee.
FRAZER, J. This action, by the assignee
of a book account, is for goods alleged to
have been sold and delivered by the l^al
plaintiff to defendants, who refused payment,
averring the title had not passed, nor bad
there been actual delivery made to them, but.
on the contrary, the goods were sold and de-
livered to a third person. There were two
actions depending upon the same facts, by
agreement tried together without a Jury.
The trial judge concluded the testimony am-
ple to establish a sale, and entered Judgment
for plaintiff.
Plaintiff, an importer of dress goods, en-
tered into an arrangement with defendants,
who were jobbers in the same line of mer-
chandise, by which the latter agreed for a
commission to guarantee the account of plain-
tiff at the PhlladelphU National Bank, which
institution undertook to accept drafts drawn
on E2ngland and accompanying shipments of
goods ordered by plaintiff. Conformable to
this arrangement, a letter of credit, signed
by the bank and defendants, was forwarded
to a foreign merchant, who thereupon ship-
ped the goods, attaching to the bill of lading
a draft drawn on the Philadelphia National
Bank, and, on arrival of the shipment, the
bank aco^ted and stored the goods in a
United States bonded warehou&e, in the
name of brokers, for account of plaintiff. A
written acknowledgment, termed a "trust re-
ceipt,'* was executed by plaintiff to the bank,
in which the former agreed to hold the mer-
chandise in trust as the property of the bank,
with liberty, however, to sell the same for
its account, collect the proceeds, and deliver
the amount received to the bank, to be ap-
plied against its acceptance of the draft in
favor of the foreign merchant. Plaintiff sub-
^ssror otber cum le* saaa topic and KBY-NVUBBB tn all Key -Numbered DIgmto and Indexw
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101 ATIiANTIO REPORTER
(Pa.
sefjnently forwarded to defendants Invoices
describing the character of the merchandise,
and btating the price, terms, and date of pay-
ment; the price Incladlng the duties and
carrying charges. Instead of delivering the
accounts to the Philadelphia National Bank,
in accordance with Ills agreement under the
trust receipt, plaintiff assigned same to the
Bank of Commerce, the use plaintiff, by In-
dorsing on the invoices the following mem-
orandum:
"For value received, the above claim is sold,
assigned, and transferred to Bank of Commerce,
• • • to whom it is payable when due."
No claim Is made that the Bank of Com-
merce was not a bona fide purchaser. The
money received by Perkins from the use plain-
tiff was applied toward the payment of du-
ties, minor Incidentals, drafts, and the bal-
ance turned over to the Philadelphia Nation-
al Bank. Plaintiff's account at the Philadel-
phia National Bank became In arrears,
whereupon the latter directed the warehouse-
man to hold all goods deposited there on ac-
count of plaintiff, subject to its written in-
structions. Later the goods so held, including
those billed to defendants and assigned to the
Bank of Commerce, were sold by the Phil-
adelphia National Bank, and the proceeds of
the sale applied to the credit of the plaintiff.
Defendants' refusing to pay for the goods,
these actions were brought.
There is evidence to the effect that the
method of procuring credit adopted In this
case Is the usual and customary one In the
Importing boslness. Plaintiff testified that,
before the letter of credit was procured, he
usually obtained from the defendants an or-
der for certain goods, and secured a letter of
credit covering their value, and that, in this
particular instance, he received a verbal or-
der from defendants to the extent of £3,000
of merchandise, whereupon the letter of cred-
it for that amount was procured, being prac-
tically confirmatory of the verbal order for
goods. The order, as given. Included the
price and quantity, as appears from the fol-
lowing extract from the testimony:
"By the Court: Q. It was a verbal order for
a definite kind of merchandise, to wit, poplins
and artificial silk, and was of a' quantity suffi-
cient in yards to equal £3,000 approximately?
A. Yes, sir."
Plaintiff also testified:
"All my goods were sold on the basis of that
letter of credit That practically made the
sale."
This evidence was ample to warrant the
finding of an existing order, or agreement, to
purchase the goods. The further question
remains as to whether there was such actual
or constructive delivery sufficient to pass ti-
tle to the purchaser.
The merchandise, upon reaching port, was
immediately delivered to Mui-phy & Co., and
deposited by them in the warehouse for the
account of plaintiff, who gave a trust reeeipt,
by which he was authorized to make sales of
the goods and account to the bank for the pro-
ceeds. Plaintiff immediately billed the goods
to defendants under date of June 21st and
August 9th, at stated terms, by which pay-
ment was not required until Novemb^ 1st
and December 1st, following. The status ot
the goods subsequent to June 2l8t is Indicated
by the following testimony:
"Q. What control did Halpren ft Mittlemin
have over that merchandise in the hands of Al-
exander Murphy? A. Practically absolntel;
full control. Q. Gould they go there and get
them? A. Indirectly. Q. What do yon mean
by indirectly? A. When they wanted to \fith-
draw those cases they wonld give the money for
the duty, a check made payable to Alexander
Murphy ft Co. for the withdrawal of those cases.
They were put in bond, subject to the payment
of the duty. • • • Q. Who paid the duty
on the goods? A. Halpren ft Mittleman. Q.
How often did they pay duty on goods? A.
Whenever they wanted the case. Q. To wbom
did they pay the duty? A. Alexander Murpbr
The goods were billed to Indnde duty and
hauling, and, upon defendant desiring to with-
draw a portion of the shipment, they gave
to plaintiff a sum stifflcient to cover the duty,
which amount would be credited on the bill,
and plaintiff at his expense thereupon re-
moved the goods from the warehouse to
defendants' place of business. Part of tlit
merchandise included In the shipment was de-
livered in this manner and paid for by de-
fendants.
The articles for which suit was brought
were permitted to remain in the warehouse
until September, at which time defendanta
drew a check in payment of the duty; in
the meantime, however, the bank notified
Murphy & Co. not to surrender the goods,
excei»t upon its written order. Defendants
were aware at all times that the accounts
had been assigned to the Bank of Commerce,
notwithstanding the trust agreement, since
notice of that fact was Indorsed on the face
of the invoices sent them, and no objection
was made by them to the assignment on ac-
count of their guaranty of plaintiff's account
at the Philadelphia National Bank.
[1] The court below found from the fore-
going facts that the parties intended and
did definitely complete the sale at the time
the goods were billed to defendants, and the
accounts assigned to the Bank of Commerce.
This finding has the force and effect of the
verdict of a Jury, and will not be set aside
if there Is evidence to support it. Brown,
Early & Co. v. Susquehanna Boom Co., 109
Pa. 57, 1 Atl. 156, 58 Am. Rep. 708; Com.
v. Westinghouse Electric & Mfg. Co.. 151 Pa.
265, 24 Atl. 1107, 1111. Wliether or not tlUe
passed to defendants in this specific instance
depends upon the intention of the parties as
indicated by the course of dealing with each
other.
[2] Actual delivery and payment Is not
necessary, as merchandise may be s(dd on
cre<llt and without delivery, if the parties so
intend. The rule on the subject was fully
stated In Com. v. Heaa. 148 Pa. 08, 23 AtL
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ITEXKISa V. BAI<FBXar
743
977, 17 li. B. A. 176, 3S Am. St Rep. 810,
wbtch was a proeecutioii for selling Uqaor
without a license; the question turning on
the time of sale. In that case, defendant, a
wholesale liquor dealer in the dty of Phila-
delphia, received orders at his place of busi-
ness from outside the county; upon receipt of
sudi orders the liquors were set apart and
charged to the purchaser on defendant's
books, the sale being made on credit. The
articles purchased were subsequently deliver-
ed to the purchaser by defendant, either by
wagon or railroad. The dealer was charged
with selling liquor without a license In the
comity In which the purchasers resided, and
we there held the sale was made at defend-
ant's place of business, and not in the county
of the purchaser. In discussing the legal
principles, applicable to such sales, this court
said (148 Pa. 106, 23 AtL 878, 17 U B. A 17S,
33 Am. St Bep. 810):
"As before stated, when the defendant received
the orders from his customer, the goods were
set apart for the latter, and charged to him.
Had the order been accompanied by the cash,
and the goods thus set apart, no one would con-
tend that the sale was not complete as between
the parties. Can it make any possible difference
that the liquors were charged to the purchasers
upon the books of the defendant? The giving of
a credit was as effective in passing the title as
the payment of the money when the order was
given. The acceptance of the order, in either
case, is effective to pass the title as between
vendor and vendee. In such case, the vendee has
the right of property witli the right of posses-
sion. Under all the authorities, the vendor acts
as bailee, and not owner, in carrying or deliv-
ering the goods. This is the rule, where the
rights of creditors, or bona fide purchasers with-
out notice, do not intervene. There is abundant
authority for this principle. The general mie
is that It is the contract to sell a chattel, and
not paym«it or delivery, which passes the prop-
erty. Benjamin on Sales, 357. The rule that
the contract of sale passes the property imme-
diately, before payment or change of possession,
has lieen nniversaUy recognized in the United
States. Id. 329. There may be a bar^in and
sale of goods sufficient to transfer the title, and
thus to support an action for goods bargained
and sold, without such transfer of delivery as
will amount to a transfer of possession. Fra-
Eier T. Simmons et al., 139 Mass. 531 [2 M. E.
112]. 'When the terms of sale are agreed upon,
and the bargain is struck, and everything the
seller has to do with the goods is complete, tiie
contract of sale,' says Chancellor Kent, 'be-
comes absolute as between the parties, without
actual payment or delivery, and the property,
and the risk of accident to the goods, vests in
the buyer.' "
In Cope's Estate, 191 Pa. 689, 43 Art. 473,
it was held that where a customer selected
engravings from time to time, as invoices of
such articles were received and the selec-
tions so made were set apart by the vendor
on his premises, and charged to the cus-
tomer's account, and subject to his call at
any time delivery was desired, the title to
tho articles passed at the time of their be-
ing set aside, even though bills were not ren-
dered In the course of dealing until the
prints were actually removed by the cus-
tomer. We there sadd (181 Pa. 593, 43 Att.
474):
"The conduct of appeHants [vendors] was uni-
form in treating the transaction as a sale. In
every case, the selected engravings were mark-
ed with their respective prices, separated from
the common stock, and made accessible to the
decedent and Mr. Barr [the vendor's salesman]
alone, then charged to him [the decedent], and
never thereafter carried into the general stock.
The learned auditing judge nttaebed too much
importance to the fact that the bills were not
rendered until the goods were taken away.
There is nothing in that circumstance thst is
inconsistent with an absolnte sale, especially
when we consider the uniform course of dealing,
which the decided weight of the evidence shows
the parties themselves adopted."
A case somewhat similar on Its tacts Is
Montlcello Distilling Co. v. Dannenhauer, 46
Pa. Super. Ct 485, where there was an agree-
ment to purchase whisky "In bond" from a
dlstilMng company, followed by a transfer
of warehouse receipts for the goods, and It
was held the acceptance bj the vendor of
notes of the purchaser for the price con-
stituted a complete sale, even though the
goods were subject to a payment of a federal
tax and were never actually delivered to the
vendee.
[3] Many other cases snstalnlng the same
principle might be cited. The above, bow-
ever, are sufficient to Illustrate the rule and
sustain the conclusion reached by the trial
judge on the facts In the present case. The
course of dealing between the parties, the
method of purchase, and subsequent disposi-
tion of the' merchandise on Its arrival in a
bonded warehouse, wherein It was set apart
subject to withdrawal at the pleasure of de-
fendants, and the actual withdrawal of i>art<
together with the delivery of the invoices,
all tend to support the conclusion of the trial
judge, and furnish ample foundation to sus-
tain his decision.
The fact that plaintifT failed to transfer
the proceeds of sale to the Philadelphia Na-
tional Bank, conformably to his obligation un-
der the trust receipt to deliver to the latter,
has no bearing on the present discussion.
The trust receipt authorised plaintiff to sell
the merchandise ; consequently an exercise of
the power of sale, so far as the purchaser Is
concerned, divests the title of the bank.
Canadian Bank of Commerce v. Baum &
Sons, 187 Pa. 48, 40 AtL 975. WhUe the
knowledge of defendants of the misuse of
the funds by plaintiff. In violation of the
trust agreement, might have prevented them
from claiming to be bona fide purchasers for
value. In a proceeding by the Philadelphia
National Bank to regain possession of the
goods (Canadian Bank of Commerce v. Baum
& Sons, supra), that bonk is not here mak-
ing claim to any portion of the property, and
has apparently received satisfaction of its
account.
A motion to quash the appeal was made by
plaintiffs. In view of the disposition of the
case on its merits, consideration of that mo-
tion becomes unnecessary.
The judgment of the couit below is at-
firmed.
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744
101 ATTANTIO REPORTRB
(Pa.
SOTTEXB et aL r. COATESVILLB BOILEK
WORKS et aL
(Supreme Court of Pennsylvania. April 16^
1917.)
1. CORPOBATIORB iS=308(l)— DlBEOTOBS— CoM-
FKNBiLTION.
The directors of a corporation may serve
the company in the capacity of ofBcers or em-
ployes, and receive compensation for such serv-
ices, if legally employed by the company.
2. GOBPOBATIONS «=>317(l)—DlKKCTOB8— CON-
TRACT WITH OoBPOBATioN— Compensation.
Directors may contract with agents or em-
ployes of their corporation, who arc likewise
directors; and such contracts, though subject
to close scrutiny, are not ipso facto void, but,
when fair and reasonable, will be sustained.
8. OOBPORATIONS «=S>426(7)— DlBEOTOBS— COH-
TBACT FOB CoMPENBATioN— Ratification.
A contract by the directors of a corpora-
tion with its agents or employes, looking to ad-
ditional compensation to the directors, may be
ratified and validated by acquiescence of the
•tockholdera
4. GOBFOBATIONa lS=>320(6)— DiBECTOBS— Sal-
ABIKS— Ratification— Equity.
A vote of a board of directors of excessive
salaries to certain of its members, who are also
officers or employte of the corporation, even
though subeequently ratified at a stockholders'
meeting, is reviewable by a court of equity at
the instance of minority stockholders, and the
court, if finding that salaries are exorbitant,
may determine tno value of the services rendered
and restrain the corporation from paying any
excess; but the court has no power to restrain
the payment of such salaries in future years,
when the drcumstances may chan^, though ex-
ceptional cases may arise where, m contempla-
tion of a continuance of an ascertained state of
focts, the court may determine their future
compensation.
6. Cobfobations «9320(13) — Dibectobs —
Vote fob Bxtba Compensation— Vauditt
—Injunction.
A corporation voted salaries to three of its
directors, who were also its executive officers,
and who performed special services for the com-
pany, resulting in its financial success, and
thereafter the directors, in addition to their sal-
aries, voted them 50 per cent annually of the
net gain on the stock of the company after its
regnlar dividend was set aside, which vote was
participated in by interested directors and was
ratified at a stockholders' meeting. Held, on
a bill by dissenting stockholders to restrain the
corporation from paying such additional com-
pensation to its directors, that the payment to
them for that year should be limited to the
amount found ^ the court to be reasonable, and
that the court could not enjoin payment of ex-
tra compensation to employes not parties, or
enjoin payments in future years, when the cir-
cumstances might change, though, in exception-
al cases and in contemplation of a continuance
of an ascertained state of facts, it might do so.
6. Cobfobations €=3308<3) — Compensation
OF Officebs— Contbact — Resolution.
Whero a corporation by resolution fixed ex-
tra compensation for its officers, no formal con-
tract between it and its oflicers was required to
fix the corporation's liability; bat such a reso-
lution, when acted on, was in itself sufficient
evidence of the contract
Appeal from Court of Common Pleas, Ches-
ter County.
Bill for Injunction by Frederick Setter and
others against the Coatesvllle Boiler Works
and others. From a decree awarding an in-
junction in part, plaintiffs appeaL Remit-
ted, with directions to modify the decree.
The court entered the following decree:
"The Coatesvllle Boiler Works, one of the
defendants, and all of its agencies, are restrain-
ed from making any payment under its direc-
tors' resolution of November 7, 1901, subsequent-
ly ratified by its stockholders, of any part of
its net profit of $102,456.60 for the fiscal year
ending in 1915 to Fred E. Moore; and this rnnd
will not be depicted, by virtue of the recited
resolution and its ratification, beyond the pay-
ment of one-third of 50 per cent of it to Charles
Edgerton and one-third of 50 per cent of it to
Nelson H. Genung. Annually hereafter, out of
the so-called net profits, the Coatesvllle Boiler
Works is restrained from paying to Edgerton
and Genung greater sums than, with their fixed
salaries, will give to each $12,000. It is fur-
ther directed that the Coatesville Boiler Works
shall pay the costs of this suit"
Plaintiffs appealed. Errors assigned were
in dismissing exceptions to various findings
of fact and law and the decree of the court
Argued before BROWN, C. J., and MES-
TREZAT, STEWART, MOSCHZISKBB, and
WALUNG, JJ.
Horace M. Rnmsey and J. Barton Rettew,
both of Philadelphia, and Rettew & Sproat,
of West Chester, for appellants. W. Horace
Hepburn, of Philadelphia, and A. II. Hold-
ing, of West Chester, for appelleea
MOSCHZISKER, J. October 15, 1913,
Frederick Softer filed a bill In equity, pray-
ing, inter alia, that the Coatesvllle Boiler
Works be restrained from giving certain of
its officers, named as codefendants, any com-
pensation in excess of their tegular annual
salaries; further, that these latter should
be ordered to account for all moneys thereto-
fore received by them over and above such
salaries. Subsequently two other stockhold-
ers Intervened as plaintiffs. After answer
and replication, the case came to trial. The
decree favored the defendants, and the plain-
tiffs have appealed.
The defendant company has a capital of
$100,000, divided Into 1,000 shares, at a par
value of $100. When the bill was filed, Mr.
Sotter owned 100 of these shares, and the
other two plaintiffs 81 shares between them.
The Individual defendants then held stock as
follows: Charles Edgerton, 300 shares; Nel-
son H. Genung, 208 shares; and Fred K
Moore held 18 shares in his own right, but
none as executor. In November, 1900, Edger-
ton was elected president, Genung vice pred-
dent, and Bdwln T. Moore secretary and
treasurer of the corporation; each of them
being re-elected annually till tlie death of the
latter. In September, 1913, when he was suc-
ceeded by Fred E. Moore. December 10,
1901, the board of directors fixed the salaries
of the three "executive officers" at $400 per
month each, and they received that com-
pensation until January 1, 1905; but In 1904
all of them, being dissatisfied, had threaten-
ed to resign.
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SOTTEB T. OOATESVILLE BOILKB WORKS
745
In addition to tbe rontlne duties of their
refq;)ectlve positions, IMgerton bad charge ot
the Philadelphia headquarters of the com-
pany, at the same time earning on the out-
side about $6,000 a year as a mechanical en-
gineer; Genung was in charge of the New
York office, and gave his entire time thereto;
and Moore devoted bis attention to the finan-
ces of the concern, superintending the manu-
facture of Its product and the sale thereof
from tbe GoatesvUIe office. Bdgerton and
Genung were expert engineers, and Moore
was especially valuable in Ills line; under
their direction, the company was making a
decided success.
After consultation tbe board of directors
agreed that. If these three men would remain
with the company and give their undivided
attention to its interests, they should receive
additional compensation over and above their
fixed salaries as executive officers. To carry
out this understanding, on November 7, 1904,
the following resolution was passed:
"That, in addition to their present salaricB,
the manacers of the company, compriaing
Charles Edgerton, Nelson H. Genung, and Ed-
win T. Moore, participate from year to year in
the net earnings as shown by the books at tho
close of each business year. The proportion so
distributed to be 50 per centum of the net
gain after the regular 8 per cent, dividend to
the stockholdem has been set aside, and is to
be equally divided between them. The remain-
ing 50 per centnm of profit to be proportioned
to 'wear and tear of plant and machinery,' and
to a surplus or undivided profit account, as may
be determined by the board of managers."
Thereafter all three officers gave their
whole time and attention to the duties of
their respective positions and the manage-
ment of the corporation, receiving compensa-
tion in accordance with tbe terms of this
resolution till the fiscal year ending Septem-
ber, 1914, when there was no net gain.
The board of directors consisted of seven
members, and when the resolution was pass-
ed In November, 1904, there were present the
three execntlve officers and two others. Bdg-
erton and Genung are still directors, and Ed-
win T. Moore was a member of the board un-
til his death. Although the extra comxjensa-
tlon here In question was voted ujMn by these
three personally Interested directors, yet, on
November 2, 1908, at a meeting of stockhold-
ers of the defendant corporation, the subject
of this resolution was brought up, and a mo-
tion adopted "that we ratify the action of
the board of directors * • • whereby
bonuses are being distributed to certain of
the employes and members of tbe executive
committee, based on the output and earnings
of the company" ; and, at a similar meeting
In November, 1910, the matter was again con-
sidered, a resolution being then passed "dis-
continuing the payment of bonuses to em-
ployes who are not officers of the company,"
thereby impliedly sanctioning payments to
those not Included in this prohibition.
At the last-mentioned meeting, Mr. Setter
was present and took an active part; but
not until September, 1914, did the latter com-
plain of the extra compensation received by
the officers of the company, and. In conse-
quence. May 17, 1915, a special meeting of
the stockholders was called, when a com-
plete report of the whole matter in contro-
versy was made, and this resolution passed:
"Resolved, that the action of tbe board of di-
rectors in paying to Charles Edgerton, Nelson
H. Genung, and Edwin T. Moore, as managers
of this company, a share of the profits of the
business of this company equal to 50 per cent,
of the net profits of the business at the end ol
each year from 1904 to 1914, inclusive, in ac-
cordance with the resolution of the board of
directors adopted at the meeting of November
7, 1904, which reads as follows: [Here the
resolution of 1904 is quoted in full]— be and the
same is hereby ratified and approved, and that
the method of arriving at the amount of net
Erofits by the board at the end of each year is
ereby approved."
All those present at this meeting, except- -
ing the proxy of Mr. Sotter, voted for the
resolution; 694 shares being cast in the af-
firmative, and 100 in the negative. At this
time Bdgerton and Genung together owned a
majority of tbe stock of the corporation ;
but when the ratifying resolution was passed
in 1908, even in conjunction with Edwin T.
Moore, they did not hold a controlling inter-
est PoUovring the resolution already re-
ferred to, at the meeting in May, 1915, an-
other was passed authorizing and directing
the board to enter into an agreement "with
Charles Edgerton, Nelson H. Genung, and
such other employes of the company as they
may deem proper, for the payment (in addi-
tion to their present salary) from year to
year of 60 per cent, of the net earnings
• • • after the regular 8 per cent divi-
dend to stockholders has been set aside,"
this fund to be divided, % to Edgerton, % to
Genung, and the remaining % "to such of
the employes of the company as the board
of directors may from time to time deter-
mine upon." This resolution was carried by
the same vote as tbe other one, quoted in the
preceding paragraph.
In addition to the above-redted facts, the
court below found there was no executive
committee of the directorate of the defend-
ant company; that Messrs. Bdgerton, Gen-
ung, and Moore were "the executive oSioera,
not of the board, • • • but of the cor-
poration, and as such were its working man-
agers"; that they were "recognized and
treated as the executives or managers, not
of the board of directors, but of the compa-
ny" ; that they performed service outside of
their obligations as directors, and in addition
to their respective official duties; that "the
proportion of net earnings paid yearly to
Edgerton, Genung, and Moore" was to cover
these latter services, and, each year, "tbe
technical net gain • • * was fixed after
the deduction <rf tbelr percenteges"; that
all three of these men were of "exceptional
ability in their line, and, as a result of their
efforts, the company had paid an [annual]
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101 ATLANTIC REPORTER
(Pa.
8 per cent dividend • • • and accumu-
lated a surplus of fSSS.OOO"; that "the
board of directors of said company had au-
thorized, tmder the resolution or motion of
November 7, 1901, the payment of 60 per
cent of $102,456.60, representing the net
gain • • • for the fiscal year ending Sep-
tember, 1915, as follows: To Cliarles Edger-
ton $17,076.10, to Nelson H. Genung $17,-
076.10, to Fred E. Moore $7,076.12," and to
three other employes, naming them, $2,000,
$8,000, and $5,000, respectively; that, figur-
ing the above awards, the average annual
payment to each of the three managers of
the defendant corporation. Including their
salaries as executive officers, would be ap-
proximately $12,000 for the period from 1905
to 1916, inclusive, and that this was proper
and reasonable compensation; finally, that
there was no purpose to overreach, or actual
fraud, in any of the corporate acts here in-
volved.
On, Inter alia, the findings and conclusions
as we have stated them, the court below en-
tered a final decree restraining the defend-
ant corporation, and "all of its agencies,"
from making payments out of the fund set
aside from profits of the fiscal year ending
in 1915, beyond "one-third of 50 per cent, of
it to Cbarles Edgerton, and one-third of 60
per cent, of it to Nelson H. Genung," and
ordering that "atmually hereafter • • •
the CoatesTille Boiler Works is restrained
from paying to Edgerton and Genung great-
er sums than, with their fixed salaries, will
give to each $12,000." This decree Is at-
tacked on many groiuds, most of which
need not now be discussed, for they are con-
clusively ruled against the contentions of
the appellants in Russell v. H. 0. Patterson
Ca, 232 Pa. 113, 81 Ati. 136, 36 U R. A. 0^.
S.) 199.
[1] The case Just referred to is much like
the one at bar. There, as here, certain of-
ficers of a private business corporation held
a. considerable majority of its capital stock,
and also constituted the greater number of
its directors. The latter body increased the
condensation of these officials, as president,
vice president, secretary, and treasurer ; and
this action was subsequently ratified at a
meeting of stockholders, the beneficiaries ail
voting for the ratification motion. A mi-
nority stockholder filed a bill In equity, aver>
ring, inter alia, that the salaries as raised
"were exorbitant, unreasonable, and unfair,
and that the Increase was illegal, because It
could not have been made without the votes
of • • • the Incumbents of the offices."
The trial court sustained the contentions of
the complainant, and granted relief accord-
ingly; but, on appeal, we reversed, holding
that "the directors had a right to serve
• • • in the capacity of officers or em-
ploy^ and to receive compensation for such
services, if legally employed by the company"
(Act May 14, 1«91 [P. L. 61] : Act May 20.
1891 (P. I* lOlD, and, since the chancellor
had found that the Increase of salaries was
"not more than reasonable compensation for
the services rendered," we dismissed the bilL
In the coiurse of our opinion In that case,
speaking by Mr. Justice Mestrezat, we held,
as a matter of law, that the action of the
board of directors In raising the remunera-
tion of the officers in question, who were
members of the board and voted for the in-
crease, was voidable, but not void; hence
that, in the absence of evidence showing
overreaching or acttial fraud, even though
"the voting of the salaries by the directors
constituted a technical or constructive
fraud," the action could be and was In fact
duly ratified by the stockholders, and this,
notwithstanding the majority of the stock
was held and voted by the beneficiaries of
the act approved. We also there distinguish
Schaffhauser v. Ambolt & Schaefer Brewing
Cio., 218 Pa. 298, 67 Atl. 417, 11 Ann. Gas.
772, relied upon by appellants.
In all essential particulars, save three,
the rulings in Russell v. Patterson, supra,
amply cover and govern the points raised at
bar ; and, on that authority, we dismiss most
of appellants' contentions, without further
discussion. The three material particulars,
however, wherein the present case differs
from Russell v. Patterson, are these: Here,
after determining $12,000 each per annum to
be a Just and proi>er compensation for all the
services rendered by Mr. Edgerton and Mr.
Genung, the court below awarded each of
them, for the fiscal year 1915, $21,876.10;
next, the final decree entered stipulates that
hereafter, without limit of duration, the de-
fendant company Is restrained from paying
either one of these defendants "greater sums
than, with their fixed salaries, will give to
each $12,000" per annum; finally, the In-
junction, in effect, forbids any payments over
and above fixed salaries, to the successor oC
Edwin T. Moore and tiie three other em-
ploy^ voted extra compensation by the sec-
ond resolution of May 17, 1915, although
none of the latter are included as defend-
ants, and no finding ia made by the court be-
low that their respective services did not
merit the amounts awarded them by the
board of directors of the defendant corpora-
tion, or that such sums were more than rea-
sonable compensation. These three matters
raise questions which call for further con-
sideration.
On the first of the above-suggested points,
it appears that Mr. Edgerton, Mr. Genung,
and Mr. Edwin T. Moore, from 1905 to 1913.
inclusive, together with their regular sal-
aries, each received an average compensation
of about $11,000 per annum; but in 1914
they were paid only their salaries, there be-
ing no extra profits to divide. In 1915 the
business of the boiler works was very pros-
perous, and the court below, by its decree,
allows to Mr. Edgerton and Mr. Genung, re-
spectively, $21,876.10 out of the profits of
that year; and this is donp on the theory
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SOTTKK T. COATXSVIIXS BOIL£R WORKS
747
that, when the amounts In question are
spread over the whole period Involved, In-
cluding 1914, when no bonuses were paid,
they give to each of these defendants only
$12,000 per annum, the compensation which
the chancellors found to be right and proper.
The weakness of this position, however, Is
that the resolution of 1904 expressly stipu-
lates the beneficiaries therein named shall.
In addition to their regular salaries, "par-
tldpate from year to year" In the net earn-
ings of the coriwratlon, "as shown by the
books at the close of each business year."
It appears that divisions were made from
year to year In strict accordance with the
terms of this resolution, and that the shares
awarded to Messrs. Edgerton, Genung, and
Moore were, on each occasion, accepted by
them. Under these circumstances, the ques-
tion of compensation for past years, so far
aa the recipients are concerned, was closed;
and the only Issue which the trial court prop-
erly had before it was as to the compensa-
tion proposed to foe paid them, or any of
tbaat, for the year 1915. Ab already statSed,
the finding on that score was that 112,000
per annum represented the amount earned by
each of these defendants, and since, on the
facts at bar, it was within the power of the
court to make this finding, which was un-
appealed from, that sum marked the limit of
the allowance of remuneration for the fiscal
year 1915 which should have been made to
Mr. Edgerton and Mr. Genung; hence, to
this extent, at least, the decree complained
of must be modified.
[2-4] On the question of the right of the
learned court below to fix compenisatlon for
services to be rendered tn the future, and to
restrain the defendant corporation from pay-
ing to certain designated persons more than
a stipulated sum per year for such future
services, we find no authority for the decree
as entered. It is well established that direc-
tors may contract with agents or employ^ of
Ihelr corporation, who are likewise directors,
and that, though always subject to close scru-
tiny, and voidable for fraud or overreaching,
sach contracts are not ipso facto void (Union
Pacific R. R. Co. V. Credit MoblUer of Amer-
ica, 135 Mass. 387, 376; Nye ▼. Storer, 168
Mass. 63, 65, 46 N. B. 402); that when for
compensation, and the latter Is fair an!d rea-
sonable, these contracts will be sustained
(FiUebrown v. Hayward, 190 Mass. 472, 478,
77 N. B. 45; Praker y. A. G. Hyde & Son,
135 App. Dlv. 64, 119 N. Y. Supp. 879; Waln-
wrlght ▼. P. H. & F. M. Roots Co., 176 Ind.
682, 97 N. E. 8, in Supreme Court of Indi-
ana); further, that a contract of this kind
may be ratified and ma'de valid by acquies-
cence of the stockholders (Kelley v. Newbury-
port & Amesbury Horse R. R. Co., 141 Mass.
496, 499, 6 N. E. 745); finally, that where a
board of directors votes excessive salaries
to certain of its members, who are also olB-
cers or employes of the corporation, even
though sudi acti on may subsequently be rat-
ified at a stockholders' meeting, when called
In question by a minority stockholder, the '
action of the board Is subject to review by a
court In equity, an'd. If the Qndlng of the lat-
ter tribunal is that the salaries In question
are exorbitant, it may debetrmine the value of
the services rendered by the officers or em-
ployes in question, and restrain the corpora-
tion from paying in excess thereof (Ray-
nolds V. Diamond Mills Paper Co., 69 N. J.
Bq. 299, 310, 60 Atl. 941, et seq. ; Llllard T.
Oil, Paint & Drug Co.. 70 N. J. E5q. 197, 56
Atl. 254, 58 Atl. 188; Davis v. Thomas & Da-
vis Co., 63 N. J. Eq. 572, 52 AU. 717; Wayne
Pike Co. T. Bammons, 129 Ind. 368, 379, 27
N. E. 487 ; Flllebrown v. Hayward, 190 Mass.
472, 478, 77 M. B. 45). This rule Is fully rec-
ognized by us in Russell v. Patterson, supra ;
but, of course, in such instances, orUlnarily,
there is no way of satisfactorily determining
the value of services to be rendered In the
fnture, when conditions, ex necessitate, may
be essentially different from those in the past.
Therefore, generally speaking, In cases of this
character, a court of equity may deal only
vrlth the facts presently before It and thus
determine the reasonable compensation ac-
tually earned. Exceptional cases may arise,
however, where, contemplating a continuance
of an ascertained state of facts, an'd guard-
ing their decree accordingly. Judicial tribimals
may determine compensation to be paid In the
future ; but we see nothing in the case at bar
to take it ont of the general rule.
[S] If courts may depart at wIU from the
rule Just stated, and substitute their Judg-
ments for the legally exerclscfd discretion of
the directors of private business corporations,
In determining the question of future compen-
sation to be paid to the latter's employes,
thai there Is no reasonable limit to the right
of Judicial Interference with corporate man-
agement; but, fortunately, this Is not the
law. Perhaps It may be said that the ques-
tion of the right of the ooort below to fix the
comi)ensatlon to be paid in the future to Mr.
Edgerton and Mr. Genung, is not raised by
the appellants; but since, aa already In'dlcat-
ed, we must remit the record for modification
of the decree along other lines, we deem It
proper to call attention to this feature of the
case.
The last question, as to the restraint
which the decree, in effect, places upon the
directors of the defendant corporation, in re-
spect to the payment of extra compensation
for the year 1915, to employes other than Mr.
ETdgerton and Mr. Genung, Is raised by at
least one of the assignments of error. In
reference thereto, it is sufficient to say that,
while the court below may have been fully
Justified In refusing to sanction payment of
the full amount voted to Fred E. Moore, the
successor of Edwin T. Moore, deceased, yet
we see no warrant for absolutely prohibiting
the payment of any extra compensation what-
ever to Mr. Moore and the other three em-
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748
101 ATLANTIC REPORTER
(Pa.
ployte, In no way Included as defeiMants,
to whom the directors likewise Totied bonuses
for the year 1915. On the present record,
the decree as formulated seems too compre-
hensive In this regard.
[6] At this point we take occasion to say
there is no merit in the contention that the
second resolution passed at the meeting in
May, 1916, requires a formal contract to be
entered Into with those who are to receive
extra compensation thereunder. Such a res-
olution, when acted upon, is in Itself sufficient
evidence of the fixed understanding between
the corporation and its employes. McGowan
V. Uncoln Park & Steamboat Consol. Co., 181
Pa. 55, 56, 61, 37 Aa 1119; Fraker v. A. G.
Hyde & Son, 135 App. Dlv. 64, 119 N. Y. Supp.
879; Young v. U. S. Mtge. & Trust Co., 214
N. Y. 279, 287, 108 N. E. 418. We further add
that most of the criticisms made by counsel
for the aH)elIantB upon tbe form of the ad-
judication as stated by the court below are
fully Justified. The learned chancellors fail-
ed strictly to follow our equity rules, and this
has aVlded to our labors on review; but, since
we have been able to get a workable under-
standing of all the material points Involved,
It would serve no good purpose to require
a recasting Of the adjudication.
The assignments of error which complain
of ruUngs in confiict with the viewa here ex-
pressed are sustaineid, and the record Is re-
mitted to the oonrt below, with directions to
modify its decree accordingly; the costs to
be paid by the defoidant oorporatioa.
(»7 Fa. tut
WILLIAMS V. PHILADELPHIA RAPID
TRANSIT CO.
(Supreme Court of Pennsylvania. April 9,
1917.)
1. SxJKDAT «=>19(1) — DxKOTnm Contract —
Relief.
The law will not lend its aid to enforce an
executory contract made on Sunday; but the
parties to a contract fully executes on that
day will be left where the law finds them, and
no relief given to either.
2. Sunday «=»19(1) — Exbcdted Releasb —
Validitt,
Where a release of damages for personal In-
jury was executed and delivered and the consid-
eration paid on Sunday, the contract was exe-
cuted and binding upon the parties, and, if oth-
erwise valid, discharged the party liable.
3. Evidence «s»565 — Opinion Bvidbnck —
Mentai. Capacttt.
In an action by a passenger for personal in-
jury, the admiBsion of tlie opinion of the physi-
cian, who examined plaintiff the day after his
release of damages was signed, as to his mental
condition at the signing of the release, was erro-
neous, where there was nothing to show upon
what information such opinion was based.
4. Cakbiers iS=»316(4) — Personal Injubt —
Negliqkncb— Pbesumption.
There is a prima facie presumption of negli-
gence on the part of a street railway, where a
passenger is hurt by a collision of its cars; so
that a passenger, injured in such collision and
who has not released his riglit of action, is
prima facie entitled to recover.
6. Davaoes ®=»208(2) — Pebsonai. Injubt —
Question fob Juby.
In a passenger's action for personal injury
from a collision of street cars, the nature of bis
malady and the extent to which it is referable
to the accident are questions for the jury.
6. Damages €=208(3)— Pebsokal Injury-
Pain AND SuFFEBiNCh— Question fob Jubt.
In a passenger's action for personal injury,
the submission to the ^ury of the question of
damages for future pam, suffering, and incon-
venience held not error.
7. Dakages <S=»20S(2) — Pbbsonai. Injubt—
Effect— Question fob Juby.
In a passenger's action for personal injury,
evidence of mental and nervous impairment as a
result of the accident, though improbable and
strongly contradicted, makes a question for the
jury.
Appeal from Oonrt of Common Pleas, Del-
aware County.
Trespass by Maiden S. Williams against
the Philadelphia Rapid Transit Oompaiiy tor
damages for personal Injury. Verdict f«r
plaintiff for $1,754, and Judgment thereon,
and defendant appeals. Reversed, and venire
facias de novo awarded.
Argued before BROWN, O. J., and MES-
TRBZAT, STEWART, MOSOHZISKER, and
WALLING, JJ.
William I. Schaffer and John J. Stetser,
both of Chester, for appellant William C.
Alexander, of Media, for appellee.
WALLING, J. [1] On October 16, 1915,
plaintiff, while a passenger on one of the de-
fendant's electric street railway cars, was in-
jured by a collision which occurred near the
city of Chester between the car and another
car on the same track. Plaintiff was stand-
ing in the aisle, and the collision caused him
to fall, by which he sustained some injury to
his arm and head. On the next day, Sunday,
one of the defendant's claim agents called on
plaintiff at his home In Milmont and secured
from him, for the consideration of $15, what
purports to be a full and complete release for
all damages resulting to plaintiff from the ac-
cident The release, admittedly signed by
plaintiff, was supported by the testimony of
the claim agent which was to the effect that
after some negotiations they agreed upon $15
as the amount of damages, which was iMild to
plaintiff and the release executed. The
agent and a daughter-in-law of plaintiff
signed same as witnesses. At the argument
some doubt was expressed as to the validity
of the release, because given on Sunday ; but.
If the transaction was completed by the exe-
cution and delivery of the release and pay-
ment of the consideration, it became an exe-
cuted contract and binding upon the parties.
The law will not lend its aid to enforce an
executory contract made on Sunday; but if
fully executed on that day, the law leaves the
parties where it finds them, and gives no re-
lief to either. "An executed contract Is a
contract which has been fully i)erformeil
since it was made, or which was performeO
£=>For otber oases sea same topic and KBT-NUMBBR In all Kejr-Numbered Digests and Indexes
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PaJ
WILLIAMS T. PHILADELPHIA RAPID TRANSIT CO.
749
at the time it was made, so that notblng' re-
mains to be done cm either side." 9 Qyc 244.
A Judgment entered upon a warrant of at-
torney contained in a note given on Sunday
will not be opened. McKee v. Yemer, 239
Pa. 69, 86 Atl. 646, 44 Ia 'B. A. (N. &) 727 ;
Baker v. Lnkens, 35 Pa. 146. Wbere proper-
ty is sold, delivered, and paid for on Sunday,
the transaction is vaUd. Qiestnut t. Har-
baugh et al., 78 Pa. 473. The delivery on
Sunday of a deed previously made will pass
title to the proi)erty. Shuman v. Shuman, 27
Pa. 90.
[2, 3} According to the evidence for de-
fendant, the release here in question was exe-
cuted and delivered and the consideration
paid; and, if so, nothing further remained to
be done, and the transaction was closed. Un-
der such circumstances in our opinion the
contract, although made on Sunday, is exe-
cuted and binding upon the parties, and, if
otherwise valid, discharged the defendant
from liability to the plaintiff oo account of
the matters therein stated. However, plain-
tiff seeks to avoid the effect of such release
by the averment, supported by some testi-
mony, that he was on that day mentally in-
competent to execute a release, and that as
a result of said injury to his head he became
80 dazed and mentally confused as to wholly
incapacitate tdm from doing any business,
and that such condition long continued.
Some of the medical evidence on behalf of
the plaintiff tends to show that he is still
suffering fr<Hn traumatic Iiysteria or trau-
matic neurosis. Admittedly he had prior to
the accident, and now has in a more advanc-
ed stage, arterlo-sclerosis ; and defendant's
medical evidence tends to show that his men-
tal impairment is the natural result ot that
disease. Dr. Taylor, the family physician,
was called to see plaintiff on the next day
after the release was signed. He was a wit-
ness for plaintiff, and during the course
of his examination in chief was interrogated
as follows, viz.:
"Q. Between 3 and 4 on Sunday, the 17th—
from the history of the case, as you have it, and
from the testimony of the witnesses on the
fltand, and from what you learned that day and
saw of him that day, from your examination,
was or was not Mr. Williams mentally capable
on Sunday, the 17tb, to know the contents of
a paper?
•'ByMr.Schaffer: That is objected to. • * •
"By Mr. Alexander: In your opinion, Doctor,
was Mr. Williams on the 17th of— taking into
<M>ngideration what you know about the case —
"By the Court: xou have already preceded
that with what occurred, and what he saw.
"By Mr. Alexander: And what is the testi-
mony here as to his condition — was be able to
comprehend by reading a naper, or by having
somebody read it to him, the contents, the pur-
ports of a pnper? • • •
"By the Witness: On Monday, the 18th. at
6:30, when I examined him, I should say he was
not responsible.
"By the Court: You mean he was not respon-
sible? A. He was not responsible, to know
what he would be reading or signing. I saw
him at 6:30 on Monday. Q. That is not quite
the question that is asked you. Mr. Alexander
asks you, from what yon saw of him then, ob-
serving his mental condition, and from what you
have heard of this testimony here, whether or
not you_ are able to say — express any opinion
about his capacity to understand a paper read
to him, or submitted to him to be read by him-
self. A. I should say he was not. • • •
"By Mr. Alexander: That is. you say, on the
17tb, he was not? A. In my judgment"
This examination was taken under objec-
tion and exception, and constitutes the third
assignment of error. Plalnblff's mental abil-
ity to transact business at the time he signed
the release was a vital question In the case,
and was for the jury under the evidence;
and yet, as to that, the doctor was permitted
to express an opinion under such circum-
stances as to render it Impossible to know
upon what such opinion was based. From the
course of the examination it may have been
upon information communicated to the doctor
on the day of his visit ; we do not know what,
nor by whom; it may have been upon some
evidence which he heard in court; we do
not know to what part, if any, of the evidence
he had listened; or It may have been upon his
own professional examination of the plaintiff.
A question calling for an opinion should be
BO framed as to Indicate the basis upon which
the opinion is sought, so that the court may
determine Its competency and the jury its
valua In such case, questions includdng both
competent and Incompetent sources of Infor-
mation as the basis of the opinion sought are
bad. It follows that the admission of the
opinion of Dr. Taylor, under the circum-
stances disclosed, was prejudicial error.
[4, S] The learned trial judge was right
in holding that if plaintiff was injured in
the collision, and had not released his right
of action, he was entitled to recover, as there
is a prima facie presumption of negligence
against a street railway company where a
passenger is hurt by a collision of its cars.
Madara v. Sharaokin & Mt Carmel Elect. By.
Co., 192 Pa. 542, 43 Atl. 995; Abel v. North-
ampton Traction Ca, 212 Pa. 329, 336, 61
Atl. 916. The nature of plaintiff's malady,
and to what extent, if at all, it is referable
to the accident, are questions for the jury.
Of course, under no aspect of the case can de-
fendant be held liable for the arterlo-sclerosis
with which plaintiff was afflicted before the
accident, nor for ita natural progress there-
after.
[6, 7] There WEis some evidence that tlie ac-
cident had left plaintiff in a hazy mental
condition, from which at the time of the trial
he had not recovered, and also that as a re-
sult of the accident he had the nervous trou-
ble above mentioned, and that bis prospects
for recovery were not favorable. While this
was strongly contradicted, we cannot say
that the court erred In submitting to the jury
the question of damages for future pain, suf-
fering, and inconvenience. In an actiou for
personal injuries, evidence tending to show
mental and nervous Impairment, as a result
of the accident complained of, is for the jury.
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101 ATLANTIC BEPORTBB
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although It may seem Improbable and be
Btrongly contradicted.
That part of the charge onbraced in the
eighth assignment of error, referring to the
question of damages. Is subject to criticism.
The thought In the mind of the court does not
seem to find expression In the language as
reported. However, that and any inadequacy
In the charge can be corrected on another
trial. The assignments of error, except as
herein stated, are not sustained.
The Judgment Is reversed, and a venire
facias de novo awarded.
(KT Pa. «B)
GRirifnN et aL y. DELAWARE & HUD-
SON CO.
(Supreme Court of PenncylTania. April 16,
1917.)
1. Tbbspabs 9=920(1) — Tbespabs Qttabe
Olkvovu Freqit— Possession.
At commoa law an action of trespass quare
clauBum fregit cannot be maintained b^ one nei-
ther in actual nor conatructive possession of the
land.
2. Tbespass «=>18 — Obounds or Aonoir —
Statute.
Practice Act May 25, 1887, J 3 (P. I* 271),
wroviding that certain actions ex delicto should
be brought under the one name of trespass, did
not change the fundamental grounds upon which
the right to recover rests, or give an action of
trespass where no action for the same cause
would arise at common law.
8. Mines and Minerals «=»55(8)— Adtebse
Claw to Minerals— Evidence.
An adverse claim to the minerals in free-
hold lauds must be distinctly established against
the owner of the surface, which may be done by
documents showing that the minerals had been
conveyed, excepted, or reserved, so as to vest
in the claimant.
4. Mines and Minerals ®=351(1)— Tbespass
roB Removal of Coal — Possession.
An action of trespass for the unlawful min-
ing of coal from plaintiffs land could not be
maintained, where plaintiS had never been in
actual or constructive possession of the surface,
which was in the possession of parties holding
adversely, and under whose lease defendant had
removed the underlying coal, as plaintiffs, never
having severed the coal, were not in constructive
possession there<^
Apiteal from Ck>urt of (3(Hiunon Pleas,
Lackawanna County.
Trespass by Sdmund R. Griffin and others
against the Delaware & Hudson Company for
remoTtng coal from land claimed by plain-
tiffs. From an order dismissing exceptions
to the report and supplemental report of a
referee, d^endant appeals. Reversed, and
Judgment entered for defendant
Argued before BROWN, C. J., and POT-
TER. STEWART, rRAZESt, and WAL-
LING, JJ.
James H. Torrey and C!harles H. Welles,
both of Scranton, and Walter C. Noyes, of
New York City, for appellant. Thos. F.
Wells, M. W. Stephens, and F. I* Hitchcock,
all of Scranton, for appellees.
POTTER, J. This was an action of tres-
pass brought by Edmund R. Griffin et al
against the Delaware & Hndson (Company,
to recover damages for the entry by defend-
ant on land of which plaintiffs claimed own-
ership, and for mining coal and taking It
from such land. It Is averred In plalntUTs
statement of claim that 100,000 tons of coal
were nnlawfnily removed by defendant be-
tween the year 1867 and the date of suit
The pleas were not guilty and the statnte of
limitations.
By agreement of the parties the case was
referred to Hon. R. W. Arcbbald, who, after
a full hearing, filed a report, with findings
of fact and law. In which he held that the
plaintiffs never had actual or constructive
possession of the coal in controversy, and
were not, therefore, In a position to maintain
this action, and that Judgment should be en-
tered for defendant E^xceptlons were filed to
the report, whereupon the case was opened,
additional testimony was taken, and the
findings reconsidered by the referee. He
then filed a supplemental report, with new
findings of fact and law, in which he reversed
his former ruling, and directed that Judg-
ment be entered In favor of plaintiffs for
the sum of $41,025. Exceptions were filed
l^ both parties to the suit, which were dis-
missed by the court and Judgment was en-
tered in accordance with the recommenda-
tion of the referee In his supplonental re-
port Defendant has appealed.
According to the referee's findings, the
material facts were substantially as follows:
The coal in controversy underlay a tract of
land in Providence township, Lackawanna
(formerly Luzerne) county, which is now
part of the city of Scranton, and comprised
3 acres and 66 perches of ground. This land
was included in a larger tract for which a
patent was granted, on June 15, 1828, by the
commonwealth to Thomas Griffin. Prior to
that date, on February 10, 1828, Isaac Grif-
fin, a son of the subsequent patentee, had
made and delivered to Silas B. Robinson a
general warranty deed for a portion of the
land patented by bis father, and Robinson
took possession under such deed. A year
later, on February 6, 1S29, Thomas Griffin
made and delivered to Isaac Griffin a deed
for the same land that Isaac had already
conveyed to Robinson. The deed of Isaac
Griffin to Robinson was identical with that
of Thomas Griffin to Isaac Griffin, with the
exception of the length of the north line of
the tract and It is from that difference that
the controversy In this case arises. The land
conveyed by Isaac Griffin to Robinson be-
gan at the Lackawanna river, and extended
thence northwest for a distance of 246 perch-
es, while In the deed from Thomas Griffin to
Isaac Griffin the tract was described as be-
ginning at the same point, and extending by
the same course a distance of 264^ perches.
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GRIFFIN ▼. DELAWARE A HUDSON CO.
751
beint; 18H perdies longer than the corre-
sponding line in the deed from Isaac OriflSn
to Robinson. The difference appears clearly
from the diagrams in the referee's supple-
mental report. The courses and distances
on the west and south were the same In both
deeds, but In neither one was the distance
given on the next to the final course, which
terminated at the liockawanna river.
PlalntlD's are the heirs at law of Isaac
Griffin, and claim to be the owners of the
westernmost end of the tract, which they al-
lege was not included in the deed of their
ancestor to Silas B. Robinson. The portion
which they claim, extends from a point dis-
tant 246 perches from the river to a point
264% perches distant therefrom, being 18%
by 30 perches in area, containing, as stated,
5 acres and 56 perches. In the eighteenth
finding of fact the referee found that:
"Silas B. Robincon, after the conveyance to
him by Isaac Griffin and wife, entered into the
actual possession of the 52 acres and 58 perches,
with the allowance of 3 per cent., and be and
those claiming under bim in line of title have
fenced and lived upon and occupied the said
land, using it for farming purposes, cultivating
the same, pasturini; cattle thereon, cutting tim-
ber therefrom, mining and removing coal, plot-
ted it into building lots, sold building lots cov-
ering a portion of the land in dispute, and par-
ties purchasing the said Iota have built houses
and other buildings thereon, and are now in
the actual, open, notorious possession of the
same."
In his first retort the teferee tonnd as
a fact:
"The plaintiffs bare never been in the actnal
pomession of the land in dispute and have not
severed the coal from the surface. The Robin-
sons and Griffins and Von Storchs have been in
the actual possession of tUe whole tract of land
nmning txom the Lackawanna river back 201%
rods to a point about 30 feet beyond the Keyser
Valley Brandi, and to the corner of what is
known as the Kiilip 0. Griffin tract, and, being
so in possession, leased t^e coal to the Dela-
ware & Hudson Canal Company in 1867, and
the possession of the Griffins and the Delaware
6 Hudson Company has continued from that
time to the present, and has bem open, notori-
«a», and Tisible."
In the supplemental report tills finding was
modified, so as to exclude a ranall portion of
the piece occttpied by a railroad. The de-
fendant company, under a claim of owner-
ship through leases given to them by the
successors in title of Silas B. Robinson, has
mined and removed the coal from the tract
claimed by plaintiffs, and It was to reeovn*
damages for this alleged trespass that the
present snlt was brought.
Four grounds of defense were set np: (1)
A valid paper title to the coal in question.
(2) Title by adverse possession. (3) That
plaintiffs were never in possession of the
locns in quo, and therefore were not entitled
to maintain an action of trespass quare
clausum fregit for the removal of the coal.
(4) That any right claimed by plaintiffs was
tierred by the statute of limitations. Upon
the third qjiestiou. the right of plaintiSs
to maintain the action, tlie referee reversed
himself. In his original report be said:
"On the whole case, therefore, whatever the
state of the title, the plaintiffs, as I view it, are
not in a position to maintain the action, never
having had actual or constructive possession
of the coal in controversy. This is decisive of
the case, and judgment must therefore be en-
tered for the defendant."
But in his supplemental report the referee
reached the conclusion that plaintiffs had
constructive possession of the coal, what-
ever may have been the situation as to the
surface, and that therefore they might
maintain their action.
[1] It is conceded that plaintiffs were
never in actual physical possession of the
tract of land here In question. The referee
afllrmed, without qualification, defendant's
seventh, thirty-first, and thirty-seventh re-
quests for findings of fact, which were to
that effect, and no exception was taken to
such afllrmance. It is admitted that the
common-law action of trespass quare clausum
fregit conld not be maintained by one not
In possession of the land. But it Is contend-
ed that this rule was changed by the practice
act of May 25, 1887 (P. L. 271), by which all
distinctions between actions of trespass are
said to bare been abolished.
[2] In Weisfield v. Beale, 231 Pa. 39, 42, 79
AtL 878, 879, we said:
"Under the act of May 26, 1887 (P. I* 271,
{ 3), all actions ex delicto, whether trespass,
trover, or trespass on the case, are now brought
under the one name of trespass. The distinc-
tion, therefore, between trespass quare clausum
fregit, in which actual or constructive posses-
sion in the plaintiff was necessary, and trespass
on the case, in which it was not, ia no longer of
importance."
That related, however, only to the form of
procedure. It was intended to point out
that, under the statute, recovery might be
had in an action of trespass^ where formerly
upon the facts the only remedy would have
been in an action niKin the case. But' the
fundamental requirements,, upon, which the,
right to recover rests, have not been changed.
Ttie act of 1887 "was intended to disveuse
with fonmaUty, but to insist on. matters of
substance^ indispensable to an intelligent
and just judgment between , the parties."
WinfelebUke v. Van Dyke, 161 Pa. 6, 28 AtU
937. .
In the case at bar plaintiffs claimed di-
rect damages for an onlawfifl and forcible
entry upon their premises and nemoval of
the coal therefrom. In tb^r statement they
aver that they were In possession of the
premises, and that defendant did "with force
and arms enter upon and into the said
parcel of land beneath the surface thereof
from Its own land adjoining, and did mine
a large quantity of coal therefrom ^nd con-
vert It to Its own use. If plaintiffs can re-
cover at all. It must be in an action in the
nature of quare clausum fregit. The an-
tboritles are clear that, in order to maintain
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101 ATLAMTIO RBPORTBB
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sndi an acUon, a plaintiff most have been
In possession, either actual or constructive,
at the time the trespass was committed.
Greber v. ECleckner, 2 Pa. 289; King v. Bak-
er, 25 Pa. 186; Collins v. Beatty, 148 Pa.
65, 23 Atl. 982; Wilkinson v. Connell, 158
Pa. 126, 27 Atl. 870; Bnsch y. Calhoun. 14
Pa. Super. Ct 678; VandersUce v. Donner,
26 Pa. Super. Ct 319. The referee so found
In his third finding of law. He further
found as a fact that there never had been
actual possession by plaintiffs, or any of
them. He was also of opinion that plaintlfTs
had not shown that they were at any time
in constructive possession of the surface.
But in Ills supplemental report he held that
there was constructive possession of the
coal, and on that ground he awarded damr
ages to plaintiffs. He based this conclusion
on the ground that there had been a sever-
ance 4>t the coal from the surface. He said :
"When the coal is severed from surface, and
a separate estate created in it, there ia no good
reaaon why, as to such coal, ownership of the
title should not draw to it the constructive pos-
session, BO as to protect the real owner against
any one trespassing and mining from it."
He had previously said :
"It may be that eonstructive possession of
the coal, as distinct from the surface, is not per-
mitted where coal and surface remain under one
title, and the surface is in the actual possession
of another."
In this connection the referee in hia first
report said, most convincingly;
"While by the leases in evidence there ia a
severance of the coal for mining purposes, it
is not absolnte or complete] a reversionary in-
terest, as noted above, being retained in the
lessors, contingent on the termination of the
leases for any reason. But more than that:
Having rexara to the effect given to the sever-
ance, in the rule invoked, the purpose being to
protect the mineral estate from an adverse pos-
Mssion of the surface, that which was intended
to protect that estate cannot be made the basis
of encumbering it. It is in fact no concern of
the idaintiffs as to what has been d<me with
the coal, or how it has been treated by others.
Whatever has happened to it is not of their
doing, and neither adds to nor detracts from
their rights with respect to it, nor can they predi-
cate anything up<m it."
The only severance was vniet the leases
fn>m the holders of the BoMnson title to de-
fendant, niese leases are not recognized by
plaintiffs, as affecting their rights in any
way, and they cannot be used to aid them
In establishing constructive possession of the
coal. We can see nothing In the facts to
justify the referee in changing his ccmcln-
sion In this req;>ect. Had the plaintiffs or
th^r ancestors severed the coal from the
Airface, a different situation would be pre-
sented.
[S] The only case cited by counsel for ap-
pellees upon this point is Plummer y. Hill-
side Coal ft Iron Co., 160 Pa. 483, 28 AtL
863, and there the severance was made by
the nndlspnted owner of the land from
whom both parties claimed title. In the
present case there was nothing to show any
•satrj by plaintiffs into possession of the
subsurface estate Tbe correct principle is
stated in Bainbridge on the Law of Mines
& Minerals (4th Bd.) 28, where It Is said:
"In all freehold lands an adverse claim to the
mineral must be distinctly established against
the owner of the surface. This may be effected
by the production of documents snowing tliat
the minerals liave been conveyed, excepted or
reserved, so as to have become vested in tho
claimant"
[4] Nothing of the kind was shown in
the case at bar, and, as these plaintiffs were
in neither actual nor constructive posses-
sion of the surface, they cannot be held
to have been In constructive possession of
the coal. The alleged severance was not by
any act of theirs, but the leases were made
by persons who, according to plaintiffs' con-
tention, had no title to either estate, and no
power to sever them. If plaintiffs should
concede that these leases effected a valid
severance, it would follow that defendant
thereby acquired the right to mtae the coaU
and this action of trespass could not tie-
maintained.
We think the referee very properly deter-
mined. In his first report that as plaintiffs
had neither actual nor constructive posses-
sion of the coal in dispute, they were not
in a position to maintain this action. As
this is decisive of the case, it becomes un-
necessary to consider other questions raised.
It is, however, by no means clear that under
a fair and reasonalde oonstruction of the
deed from Isaac Oriffin to Silas B. Robinson,
the defendant and its predecessors were-
without a paper title to the premises in dis-
pute. It requires a strained inference, to
say the least to support the conclusion that
Isaac Qriffln, in the year 1828^ Intended t»
retain a small piece of isolated ground, 18^
by 30 perches, at the rear of the tract he
conveyed to Robinson. All the fiicts point
strongly to the conclusion that all parties-
interested believed that Robinson acquired
all of Isaac OrUBn's interest in that particu-
lar piece of land in 1828, and that they all
acted in accordance with that belief from
that time on. All the lines and angles and
distances in the deed from Thomas to Isaac
Oriffin, and in that from the latter to Robin-
scm, are Identical, except that of the norther-
ly line; and taking into consideration the
monuments upon the ground, and the acre-
age intended to be conveyed, the longer line,
running 204)6 perdies from the river, seems
to be imperatively required to meet the con-
ditions. No reasonable explanation was of-
fered for the discrepancy in the loigth of
the northerly line as it appears in the deed
made by Isaac Oriflln to Robinson. Possibly
the length of the line was first noted by the
surveyor In figures, which afterwards were-
accidentally transposed, so that 264 perches
appeared as 246 perches. Conjecture as to-
this, however, is useless.
But leaving out of consideration the ques-
tion of paper title, and without reference
to tite additional claim that defendant and
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SHSAFXB T. WOODSIDB
753
Its predecesflon had aoqiiired title to the
coal by poeseasloii, and to tbe farther claim
tliat tbe action was barred by tbe statute of
limitations, It Is quite suflSclent to rest the
case upon the conclusion first reached by
the referee that, in the absence of actual
or constructtve possession of the coal, plain-
tiffs bad no standing to maintain this ac-
tion.
Tbe Judgment is reversed, and is here en-
tered for defendant.
(257 Pa. 276)
BHBAFEB et al. ▼. WOODSIDE et al.
(Supreme Court of Pennsylvania. March 10,
1917.)
1. Patmekt «=>66(5) — Peisuicptiow and
BuBDKN OF Paoor.
The role that after the lapse of 20 yean
debts by specialty are presumed to be paid
does not bar the debt, but is merely a rule of
evidence affecting the burden of j^roof, and with-
in that time the burden of proving payment is
on the debtor, and after that time it is upon the
creditor. The presumption is rebuttable by any
competent evidence tending to show that the
debt was not in fact paid, though it should be
dear and convincing, especially where suit is
not brought until after tne debtor's death.
2. MOBTGAGBS «=319(3) — PaTMINT — SUFFI-
OIENOT OF ETIDKNCK.
EJvidence upon a scire facias issued in Au-
gust, 1915, upon a mortgage executed in 1876,
wherein the administrator of the estate of the
last surviving mortgagor pleaded payment, and
relied upon the presumption of payment aris-
ing from the lapse of more than 20 years, Keld
sufficient to overcome the presumption of pay-
ment, so as to make payment a question for tbs
Jury.
Appeal from Oonrt of Common Ptees,
Schuylkill Gonnty.
Sdre fiidas snr mortgage by A. W. Sheafer
and another, sarvlvlag executors of tbe estate
of Peter W. Sheafer, deceased, against A. B.
Woodslde and others. Jndgmoit for defend-
ants noD obstante veredicto, and plaintiflb
appeal. Reversed, and recoiQ remitted, with
direction to enter Judgment <m the verdict
Argued before BROWN, C. X, and MES-
TREZAT, POTTER, FBAZER, and WALL-
ING. JJ.
John G. Jubjuaa, of Phlladdphla, and
Wo4Mbnry & Woodbury, of PottsvUto, for ap-
pdlanta. JV>hn Robert Jones, of Pottsville,
for appdlees.
FRAZER, J. In 1876 Mrs. A. B. Wood-
side and her three daughters, Virginia, Oer-
aldine, and Fannie, ezecnted a b<nid and
mortgatpe to Peter W. Sheafer, to aeoare the
payment of $2,660 in two years, covering
property owned by than in the borough of
Pottsville. Tbe mortgage was duly recorded
in tlie office for recording deeds in Schuylkill
county on June 24, 1876, in Mortgage Book
1 A H, page 395. Peter W. Sheafer, the mort-
gagee, died in 1891, leaving a will In which
Arthur W. Sheafer and Henry W. Sheafer
were named as executors. At the time of his
death tlie bond and mortgage above refemJd
to were found among Ills papers; the bood
having indorsed thereon, in the writing ot
Peter W. Sheafer, a payment of $56, under
date of December 22, 1877. There is no ev-
idence that demand for payment of the in-
debtedness secured by tbe mortgage was
made until after the death of the last sur-
vivor of the moitgragors, when the executors
of the estate of Peter W. Sheafer, on August
25, 1915, Issued a scire faxdas, to which the
administrator of the estate of Geraldine
Woodsfde, the last survivor, pleaded payment,
and, in support of this plea, at the trial relied
upon the presumption of payment by reason
of lajpse of time, and presented a point for
binding Instructions for defendant. The trial
Judge reserved the point, an!d submitted to
the Jury the facts presented by plalntlfT to
rebut presumption of payment. A verdict
was rendered in plaintiff's favor for the
amount of the mortgage, with interest, aggre-
gating, after deducting the payment Indorsed
on the boi^d, the sum of $8,727.87. Judgment
was subsequently entered in fkvor of d^end-
ant new obstante veredicto, whereupon plain-
tiff appealed.
A period of 36 yeats elapsed from the ma-
turity of the mortgage until the beginning of
foreclosure proceedings. Dr. O'Hara, a prac-
ticing physldan in Pottsville for 20 yieaiB,
called by plaintiff, who had been a ftunlly
physician of the Wooidsldes, although only
Fannie and Geraldine were living when he
first attended them, testlfled that in 1914,
shortly after tbe death of Fannie, Geraldine,
the survivor, spoke to Idm in reference to
the mortgage due the Sheafer estate, and,
while the witness was unable to recall the
exact language of the conversation, he stated :
"She told me she did not know what would
happen to them, or what would happen to her,
or would become of her ; I do not exactly know
the verbatim statement, but she wept, and so
forth, and she said that the Sheafers held a
mortgage, or that she was in a great debt to
them, in other words."
He testlfield furth^ she told hint :
"She did not know what would became of
them now; she did not know whether Sheafers
will push the mortgage or not, and she was in
a very nervous state, not knowing what would
beorana of her."
He also testlfled tbe family had been in
straitened financial ctrcumstances, and had
received assistance from neighbors, and fur-
ther that Geraldine requested him to speak
to the Sheafers about the mortgage, which he
snbsequmtly did by informing Lesley Sheafs
er that —
"one of those Miss Woodsides is worried to
death about what will become of her now, since
the other sister is gone ; she did not know what
will become of the place now."
I^esley Sheafer, called as witness by plain-
tiff, corroborated Dr. O'Hara's testimony as
to the conversation In relation to the Wood-
side mortgage, and testlfled to bringing the
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101 ATLAWriO EEPORTBB
(Pa.
rabject to the attention of A. W. Sheafer,
one of the ezecutore of the Sheafer estate,
who, following that conTersatloii, on Deoeta-
ber 22, 1914, wrote Miss Woodslde, as fol-
lows:
"Dear Miss Woodside: Information has come
to us throoRh Dr. O'Hara that you are worried
in regnr) to the mortgage which we hold on
your property at 219 South Center street. We
therefore take this opportunity of assuring you
that we have no intention of in any way en-
deavoring to collect this mortgage or any inter-
est thereon during your lifetime, or so long as
it remains your property. We trust, therefore,
that you will not allow this matter to trouble
you in the least. Extending to you our sym-
pathy in your recent bereavement, we are,
yours very truly, A. W. Siieafer, for the Ex-
ecutors of Estate of P. W. Siieafer, Deceased."
A copy of this letter was also sent to Dr.
O'Hara, who subsequently saw Miss Wood-
sfde, and was informed by her of baring re-
ceived the letter from Mr. Sheafer, and that
it gave her much relief.
[1] The above Is the erldence relied apon
by plaintiff to rebut the presumption of pay-
ment arising from lapse of time. The rule
that after the lapse of 20 years debts of err-
ery kind are presumed to be paid Is a rule
at coDvenlraice an'd policy, resulting from a
necessary regard for the peace and security
of society, and also for the debtor, who should
not be called upon to defend stale claims at
a time whm witnesses are dead, and papers
lost or destroyed. Foulk v. Brown, 2 Watta,
209; Kby v. Eby's Assignee, 6 Pa. 433. This
presumption does not bar the debt, bowevef.
Unlike the statute of limitations, it Is merely
a rule of evidence affecting the buiUen of
proof, and no new promise is required as the
basis Oft an action. Eby ▼. Eby's Assignee,
supra. Within 20 years the burden of prov-
ing payment is on the d^tor; after that
time it shifts to the creditor. Reed v. Reed,
46 Pa. 239. To rebut the presumption, any
competent evidence tending to show the debt
is not In fact paid will be recrived. Although
it need not be of the same quality as required
to remove the bar of the statute of limita-
tions (Gregory v. Commonwealth, 121 Pa. 811,
15 AtL 452, 6 Am. St Rep. 801; Devereuz's
Estate, 184 Pa. 429, 39 Aa 225), it should,
however, be clear and convincing, espedaUy
where suit is not brought until after the
death of the debtor, as in the present caae
(Fidelity Title & Trust Co. v. Chapman, 226
Pa. 312, 75 AtL 42^. In Foulk v. Brown, 2
Watts, 209, the rule was stated aa follows :
"Within the 20 years, the onus of proving pay-
ment lies on the defendant; after that time it
devolves on the plaintiff to show the contrary,
by such facts and circumstances as will satisfy
the minds of the jury tliat there were other rea-
sons for the delay of the prosecution of the claim
than the alleged payment. And if these facts
are sufficient satisfactorily to account for the
delay, then the presumption of payment, not be-
ing necessary to account for it, does not arise.
Slighter circumstances are sufficient to repel
the presumption than are required to take the
'.•use out of the statute of limitations — the latter
being a positive enactment of the Legislature;
the former merely an inference on which legal
belief is founded.
In Reed v. Reed, 46 Pa. 239, 242, it was
said:
"The presumption is rebutted, or, to speak
more accurately, does not arise where there is
affirmative proof, beyond that furnished by the
specialty itself, that the debt has not been paid,
or where there are circumstances that sufficient-
ly account for the delay of the creditor."
[2] Whether the proof is ample to rebut
the presumption of payment must necessarily
depend on the particular circumstances of
each case, and It is primarily for the court
to decide whether the facts, if true, are ade-
quate for the purpose for which offered, and
whether the facts relied upon are true is a
question for the Jury. Fidelity Title & Trust
Co. V. Chapman, supra. In Gregory v. Com-
monwealth, supra, the plaintiff, to rebut tlie
presumption of payment, relied upon ac-
knowledgments by the debtor, made to third
persons at various times, to the effect that
there was something between him and plain-
tiff wliich "had never been thoroughly set-
tled." It appeared, however, that the refer-
ence might have be«i to the settlement of
certain other matters concerning an estate in
which the debtor was interested, and it was
held the testimony was too uncertain and
equivocal in meaning to rebut the presump-
tion of payment; the court saying:
"Any competent evidence which tends to show
that the debt is in fact unpaid is admissible for
that purpose. The evidence may consist of the
defendant's admission made to the creditor lum-
self (Eby v. Eby's Assignee, 5 Pa. 435), or to
his agent, or even to a stranger (Morrison v.
Funk, 23 Pa. 421 ; Reed v. Reed, 46 Pa. 238) :
but au admission will not be as readily implied
from language casually addressed to a stranger,
as when addressed to the creditor in reply to
demand for a debt (Bentley's App., 99 Pa. 500).
It is of no Consequence that the admission of
nonpayment is accompanied by refusal to pay;
the action is not founded on a promise, but on
the original indebtedness: the question, as
against the presumption, is whether or not the
debt is in fbct unpaid."
In Runner's Appeal, 121. Pa. 649, 15 AtL
647, statements made by the debtor of an in-
tention to pay were held sufficient for the
purpose of rebutting the presumption of pay-
ment In Smith V. Schoenberger, 176 Pa. 95.
84 AtL 864, declarations by defendant to the
effect that the debt was not i>ald, made In
the presence of plaintiff, was held enough to
take the case to tie Juiy. In White v. White,
200 Pa. 565, !)0 Atl. 157, an admission by the
debtor, in tiie presence of a witness, that be
had no money to pay the Interest on the debt
In question, was held ample to overcome the
presumption of payment. In O'Hara v. Oorr,
210 Pa. 341, 69 AU. 1099, It was held that the
case was for the Jury, where witnesses for
the plaintiff testified that the deceased mort-
gagor stated he had purchased the mortgaged
premises, but could not pay the mortgage,
and would have to let the property go. it
has also been held that proof of the inabllity
of the debtor to pay during the whole period
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SCHMITT V. CITY OF CABBONDALB
766
of the ezifltence of the debt Is such circum-
stance as would explain tbe delay, and pre-
vent the presumption of payment arising.
For instance, in Taylor r. Megargee, 2 Pa.
225, 226, it was said that mere poverty, or
insolvency alone, was insufficient to over-
throw the presumption of payment, arising
from lapse of time, "imless it be such as to
have created an abiding inability to pay dur-
ing all tbe time"; and in Devereuz's Bstate,
supra. It was sald:
"The ability of the obligor to pay and the
pressing need of the oMigee for money have
been recognized aa circumstances which aid the
presumption of payment. Hughes v. Hughes,
54 Pa. 240. On the other hand, it was held in
Tilghman v. Fisher, 9 Watts, 441, that one of
the intervenint; circumstances which may rebut
the presumption is the inability of the debtor
to pay within 20 years, and proof of a con-
tinued inability to pay was recognized in Tay-
lor V. Megargee, 2 Pa. 225, as sufficient to rebut
the presumption. There are convincing reasons
for tbe rulmg that proof of the insolvency of
the debtor alone will not rebut tbe presumption.
An insolvent may be possessed of property or be
in receipt of an income, and have the means
of payment; but proof of positive inability to
pay is in ^ect that payment could not have
been made."
In tbe present case we have proof of a
long-continued inability of the debtors to pay;
that the surviving debtor recognized the ex-
istence of the indebtedness in 1914, stating in
effect her inability to pay, and requesting the
witness to see the creditor and ask Indul-
gence; that tbe witness complied with tbe
wishes of the mortgagor, and, as a result of
the interview, tlie debtor received the letter
in evidence, informing her that no steps to
enforce payment of the indebtedness would
be taken during her lifetime, or so long as
the property remained in her possession.
This evidence the jury accepted as true, and
was sufficient, under the decisions, to over-
come the presumption of payment arising
from lapse of time.
The Judgment is reversed, and the record
remitted, with direction that Judgment be en-
tered on the verdict.
(JB7 Pa. «t)
SCHMITT T. OITT OF OABBONDAliB et aL
(Supreme CSourt of Pennsylvania. April 16,
19170
1. Etiokrcs «=»372(11) — AnoixnT Doou-
HKNTS— Hap.
A map found in the office of a corporation,
which had conveyed land shown thereon, was
admissible as an ancient document, where it
was more than 50 years old, and appeared to be
genuine, and had been acted upon.
2. Adverse Possession «=8(1) — Enoboach-
MENT ON POBLIC PABK— EFFECT.
A citizen acquires no rights as against the
public by tbe maintenance of a fence in a public
park, as the public's rights are not lost by en-
croachment, however long continued.
3. Dedication ^=>50 — PtTBUC Pabe — Ex-
tent.
A city's acceptance and use of a park em-
braces all the land dedicated for that purpose.
although sonae parts thereof along the border
lines may not have been actually used therefor.
4. Estoppel ®=>68(5) — Eminent Douain —
Public Park.
Where a building has been erected on land
dedicated as a public park, an ordinance pro-
viding for the condemnation of the land occu-
pied by the building does not estop the munici-
pality from claiming the property, especially
where no viewers were appointed, and nothing
further was done in reference to the ordinance.
Appeal from Court of Common Pleas,
I;a(^awanna County.
Bin in equity for an injunction by W. H.
Arthur Scbmltt against the City of Caiiwn-
dale and others. From a decree on final
hearing, dismissing the bill, plaintiff appeals.
Affirmed.
Argued before BROWN, C. J., and POT-
TER, STEWART, FRAZEE, and WALr-
UNO, JJ.
A. A. Vosburg, of Scranton, and J. B. Jen-
kins, of Carbondale, for appellant. J. K
Brennan, of Carbondale, for appellees.
WAIAjING, J. This suit in equity in-
volves the question of the location of tbe line
of a public hi^way. Prior to 1843, the
Delaware & Hudson Canal Company was the
owner of a tract of land in the village (now-
city) of Carbondale, and in plotting the same
a triangulai' piece of land was left open for
public use as a park, and known as "the Pa-
rade."' It is shown, with well-defined bound-
aries, on an ancient map in the possession of
the company. Lots appear on the map,
which were conveyed bounded by the Parade.
For nearly 50 years, prior to 1890, the Pa-
rade was used generally by the public as a
passageway and for all purposes of a pub-
lic common. Meantime streets had been
opened on the borders of the Parade; Main
street <m the west. Sixth avenue on tiie
south, and Park Place <»i the northeast In
or about tbe year last mentioned the city
constructed an iron fence around that part of
the Parade inclosed by these streets, and
therein was placed a monument and a foun-
tain ; and, at about the same time, the cart-
way in Sixth av^iue was paved. Church
street extends In a northerly and southerly
direction, and is a short distance east of the
intersection of Park Place and Sixth avenue.
It is about 455 feet from Main and Church
streets, and the land facing on the south
side of the Parade (now Sixth avenue) was
subdivided into lots as a part of the origi-
nal plot.
In 1843 tbe company sold one of the lots
facing 65 feet on the Parade to James Clark-
son, a part of which by sundry conveyances
Is now owned by plaintiff, and thereon is a
two-story frame building, which stands about
one foot back from the south line of the
Parade as originally dedicated. However,
from tbe time of or shortly after the pur-
chase by Clarkson down to this time the
owners of the lot have had adverse posses-
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101 ATLANTIC REPORTEB
(Pa.
slon of a strip of land some 6 feet In width
extending In front of the lot and within the
lines of the Parade as dedicated. This strip
of land was Inclosed for many years as part
of the lot by a fence, and near the west end
thereof was formerly a well, and toward the
east end for about 30 years last past a pordi
stood thereon in front of the building, and
tome of the strip of land has been used as
a lawn and flower bed. The owners of some
of tho other lots have also made encroach-
ments upon the south side of the Parade.
The original deed to Clarkson describes bis
lot as being 130 feet In depth, from the Pa-
rade south, which It Is exclusive of said 8
feet. While there Is some controversy, yet,
taking the case as a whole, it fully warrants
the finding that plaintlfTs paper title does
not include the disputed land; and it ap-
pears with equal clearness that plaintiff and
those through whom he claims title have had
exclusive possession thereof for much more
than 21 years.
In 1897 the dty passed an ordinance pro-
viding, as we understand the facts, for the
condemnation, inter alia, of the land here at
issue, and a report was made that an agree-
ment with the property owners as to the
damages and benefits could not be had ; but
no viewers were appointed, and nothing fur-
ther done with reference thereto. In 1915
plaltttUT, in remodeling his building, was pro-
ceeding to add a new store front thereto,
which would occupy a portion of said 6 feet,
when he was prevented by the officials of the
city, and filed this bill to restrain their in-
terference. After a full hearing the court
below entered a final decree dismissing the
Mil, fr<nn which plaintlfC took this aK>eaL
[1] The record seems tree from error.
The map in the office of the Delaware ft
Hudson Canal Company was found In the
pnH)er custody, was shown to be more than 30
years old, was to all appearances genuine,
had been acted iqton, and was competent as
an ancient document Commonwealth v. Al-
burger, 1 Whart 468; Huffman & Foreman
v. McCrea, 66 Pa. 93 ; Smucker v. Penna. R.
R. Co., 188 Pa. 40, 41 Atl. 457. And see Bar-
nett ▼. Teadon Borou^, 87 Pa. Super. Ot.
97.
[2] Plaintiffs claim by adverse possession
would be well founded as against private
parties, but cannot prevail against the pub-
lic, whose rights are not lost by encroach-
ment, however long continued. Common-
wealth T. Moorehead, 118 Pa. 344, 12 Atl.
424, 4 Am. St Rep. 599; McOuire v. Wilkes-
Barre, 36 Pa. Super. Ct 418.
[3] It scarcely requires the citation of au-
thorities to support the proposition that a
citizen acquires no rights as against the pub-
lic by the maintenance of a fence or building
in a highway, and the same rule applies
to a public park. The acceptance and use
by the public of the Parade in question as a
park embraced all the land dedicated for
that purpose, although some parts thereof
along the border lines may not have been
actually used as such. It is like a dedicated
street, the acceptance of which c<»stitutes
It of the full width, although only the trav-
eled portion may be used by the public.
See State Road, 236 Pa. 141, 84 AtL 686.
The disputed land being In the Parade, the
fact that it is not within Sixth avenue as
opened on the ground is not controlling.
As plaintiff's lot In the original deed was
bounded on the north by the Parade, be la
not helped by the fact of a surplus In that
block. If he is entitled to that, or any part
of it, he must find it within the lines of
the block, and not in the public park or
street
[4] The passage of the ordinance does
not estop the dty from claiming the land In
question ; and the fact that the proceedings
thereunder were apparently abandoned would
suggest that they may have been started un-
der a misapprehension. The facts found by
the learned chancellor are In accordance
with the evidence and his legal conclusions
seem to be entirely accurate.
The assignments of error are overruled,
and the decree is affirmed, at the cost of the
appellant.
(iSr Pa. 38S)
BWALT V. DAVENHILL et aL
(Supreme Court of Pennsylvania. April 18,
1917.)
1. Tbttsts *=»9 — Spendthbut Trust — Ces-
T0IS.
A spendthrift trust may be created as weQ
for a woman as for a man.
2. Trusts ©=9— Separati Ubb Tbusts— Va-
UDmr.
A testator, dyiog in 1849 devited land to his
son J. for life, with remainder in trust for J.'s
children and their heirs, and gave J. power to
revoke such trusts by will and to create other
trusts; and J., dying in 1870, by will revoked all
such trusts, and devised the estate in trust to
pay an annuity to his wife and the balance of
the income to his son W., bom in the lifetime
of his grandfather^ and on his death the bal-
ance in trust for his children in such shares as
they would be entitled to if he had died intes-
tate, and gave W. power to appoint the shares
of his children in trust for the sole and sepa-
rate use of such children and to the issue of any
deceased child ; and W., dyin? in 1877, direct-
ed that the share of each of bis three dan^hters
be held in trust for them until they reached 21,
and created sole and separate use trusts and
spendthrift trusts for them, and directed that
on the death of any daughter ber share should
be paid to her issue during the life of the sur-
viving daughters, and if there was no issue then
to the survivors for life, and on the death of
the last survivor then to their issue. Held, that
the sole and separate use trusts were void, be-
cause the daughters were not married or in*con-
templation of marriage at the time of the crea-
tion of such trusts.
3. Powers ©=36(1) — Constuuction — Crea-
tion OF Spendthrift Trusts.
Such spendthrift trusts for the daughters
of the last testator were within the scope of the
power of appointment conferred upon him by
the will of his deceased father.
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EWALT V. DAVENHIIX
757
4. Wiixs 9=9634(9)— Vkstbd IirrxBESTS— Tnoe
or Vesting.
The interests of such laat testator's three
daughters vested apon the death of their grand-
father, the creator of the power.
6. PiEPETorriEs ®=a4(15)— Kemaindbbs— Va-
uprrr.
Such gift to the iscue of the daughters of
the last testator violated the rule against per-
petuities.
6. PEBFBTUITIEa <t=>4(22)— PAJtTIAI. Ihtaudi-
TT— Severabm Gitt.
The gifts for the lires of such last testa-
tor's daughters were severable, and were not af-
fected by the invalidity of a gift of the remain-
ders to their issue.
7. Tbtjsts «=»52— Pabtial Invaijditt— Gnr
O ve b— Ef ^ect*
Where an active tmst is created to pay the
income to onu for life, it will not be defeated
because of the failure or invalidity of the gift
over of the corpus of the estate.
& PEBPBTUmES ®=»4(3) — NATlTBa OF RlTLE.
The rule against perpetultiea is directed
acainst future contingent estatea, and has no
reference to vested estates.
Appeal from Court of Ck>inmo& Pleaa, Phil-
adelphia County.
Bill In equity for partition by Henry C.
Btwalt against Catharine M. UarenbiU and
otbers. Bill dismissed on demurrer, and
plaintiff appeals. Decree afBrmed.
Argued before BEOWN, O. J., and STBIW-
ART, MOSCHZISKBR, FRAZEIBi, and WAL-
LINU, JJ.
M. T. McManua, of Philadelphia, for appel-
lant Henry Preston Erdman, of Philadel-
phia, for appellees.
WAliUNQ, J. This case Involves the ques-
tion as to whether certain real estate situate
on the southeast comer of Seventh and Chest-
nut streets, Philadelphia, is now so held in
trust as to prevent its partition. This land
was formerly owned by William Swalm, Sr.,
who died In 1846, and by his last will devised
the property In trust for his son James for
life, and then In tmst for the latter's chil-
dren and their heirs, giving James power,
however, to revoke by will all trusts and in-
terests expressed by the testator, and to di-
rect or to appoint such new or other trusts
with respect to said property as to him might
seem proper. James Swalm died in 1870,
leaving a last will In which he referred to
the power given him In his father's will, and
In execution thereof revoked all the trusts
and Interests so created by his father, and
devised the estate in trust to pay an annuity
t» his wife for life and balance of the net in-
come to his son William Swalm, Jr., free
from the control of his creditors, and provid-
ed, further, that after the son's death the
prc^>erty should be held "in trust for the
children of the said William Swalm and the
issue of such as may be deceased. In such
parts, shares and proportions, and for such
estates as they would be entitled to, if the
said William Swalm had died intestate."
William Swalm, Jr., was then given the pow-
er by will to appoint the shares of his chil-
dren or of the children of any deceased child
to trustees, "in trust for the sole and sepa-
rate use of said dilld or Issue of said de-
ceased child, and under such limitations and
restrictions as in his discretion he may deem
best, so as to secure the same to the said
child or Issue of deceased child, for his, her
or their sole and separate use, maintenance
and enjoyment"
WiUiam Swalm, Jr., died in 1877, testate,
and left surviving him three daughters, who
at the time of tlie execution of his will were
minors, unmarried, and not in contemplation
of marriage, although they did subsequently
marry, and two of them are still living.
In his will, William Swalm, Jr., pursuant
to the power vested in him under the will of
hJs father, directed that the share of each
of his children, or the diildren of any de-
ceased child, be held in trust for them until
they readied the age of 21 years, "and as
and after each of my said dilldren respective-
ly arrive at the age of twenty-one years, to
pay her said part and share of the said rents.
Issues, profits, Income, and dividends to her
directly whether she be covert or sole, dur-
ing all the period of her natural life, for her
separate use and benefit, the said Income
to be and at all times to remain free and ex-
empt from the power and control of any
husband, and from liabilities for any debts
or engagements. The receipts of my children
for such payments to them, whether covert
or sole, shall be deemed and taken to be good
and sufficient vouchers and acquittances for
the said trustees or either of them, in the
settlement of their accounts." The will also
provided that. In the event of the death of
any of the children, her share should be
paid to her issue during the life of the sur-
viving children, or in case there should be
no Issue, then to the survivors for life, and,
upon the death of the last survivor of the
children, then to their issue, or. If no issue,
then to the persons who would be entitled un-
der the provisions of his father's will. Wil-
liam Swalm, Jr., was bom before the death
of his grandfather.
Plaintift is the owner by purchase of the
Interest of one of the daughters of William
Swalm, Jr., in the premises, and as such
filed his bill for partition la this case ; and
from the decree of the court below, sustain-
ing defendants' demurrer and dismissing the
bill, this appeal was taken.
The action of the court below was based
upon the construction previously placed upon
the wills in question by the orphans' court of
said county, where the questions were ex-
haustively and ably considered, and in our
opinion correctly decided. The trusts creat-
ed by the last will of James Swalm were un-
questionably valid as a due execution of the
power contained In the will of his father,
and created a spendthrift trust for the life
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101 AZriiANTIO BBPORTBB
(Fa.
of WUIlam Swalm, Jr., with remainder o^er
as therein provided. The real question is as
to the effect of the trust provisions in the
will of WlUlam Swalm, Jr. So far as making
a testamentary disposition of the property,
James Swalm was practically the owner in
fee; and the testamentary trusts so created
and powers so conferred by him must be
given effect.
[1] A careful reading of his will shows
tbat he conferred upon William Swadm, Jr.,
a power sufficiently broad to enable the latter
to create for his clilldrea a spendthrift trust,
as well as a separate use trust True, when
the will of James Swalm was executed, the
children of William Swalm, Jr., consisted of
three daughters, yet there was nothing to
Indicate that sons might not thereafter be
bom to him. The words of the will above
quoted, empowering his son WlUlam by his
last will to place such property "In trust for
the sole and separate use of said child or
issue of said deceased child, and under such
limitations and restrictions as in his discre-
tion he may deem ibest, so as to secure the
same to the said child or issue of deceased
child, for his, her, or thdr sole and separate
use, maintenance and enjoyment," seem to
Indicate an intent to authorize the creation
of both separate use and spendthrift trusts.
And William Swalm, Jr., fully executed such
power in his last will as above quoted. A
spendthrift trust may be created as well for
a woman as for a man. Ashburst's Appeal,
77 Pa. 464; Hugbes-Hallett v. Hn«hes-Hal-
lett, 152 Pa. 590, 594, 26 Ati. 101.
[2] While the separate use trusts were In-
effective, because the daughters were neither
married nor in contemplation of marriage,
yet by said wills spendthrift trusts were
created in favor of the daughters of William
Swalm, Jr., and valid during their lives. No
set form of words is necessary to the creation
of a spendthrift trust. Oraeff v. De Turk,
44 Pa. 527, 531; Winthrop Co, ▼. Clinton,
196 Pa. 472, 46 Atl. 435, 79 Am. St Rep. 729.
See, also, Shower's Estate, 211 Pa. 297, 60
AtL 7S9; Dunn ft Blddle's Appeal, 85 Pa.
M.
[3-6] So far as creating a trust for his own
children, or for the issue of any of his chil-
dren who may have died in his lifetime, Wil-
liam Swalm, Jr., was aoting within the
powers conferred upon him by the will of
his father ; but he went further, and attempt-
ed to continue thi trust for various uses and
purposes for an Indefinite time beyond the
lives in being at his death. To that extent
the trust so created in invalid, as transgress-
ing the rule against perpetuities, and because
no such power was vested in him by the will
of James Swalm. However, the trust so des-
ignated in the will of WilUam Swalm, Jr., Is
severable, so tbat the trust created for his
children may stand, and that attempted to
be created for others beyond fail. Whit-
man's Estate, 248 Pa. 285, 98 AtL 1062.
[7] Where an active trust is (seated to
pay the income to one for life, it will not be
defeated because of the failure or invalidity
of the gift over of the corpus of the estate.
On tbe death of WllUam Swalm, Jr., the Utle
to the property In question vested in bis
children as devisees under the will of their
grandfather, James Swalm, but their eojoy-
ment thereof was subject to the trust created
by their father's will.
[I] The rule against perpetuities is directed
against future contingent interests and has
no reference to vested estates: Johnston's
£>st, 185 Pa. 179, 39 AtL 879, 64 Am. St Bep.
621. As the children's estate vested on tbelr
father's death, and aa be was in being at tbe
death of William Swalm, Sr., so far as con-
cerns them the rule against perpetuities has
not been violated. It is the vesting of tiie
estate within tbe life in being and 21 years
thereafter that fixes its status. The fact
that when vested, it may continue beyond
that period, is not materiaL And ctHnpntlng
the time from the creation of tlie power by
the will of James Swalm, it is still more ap-
parent tbat the rule baa not been transgress-
ed. In our opinion the will of William
Swalm, Jr., creates an active trust during
the lives of his daughters, and the real estate
embraced therein cannot now be partitioned.
The assignment of error Is overruled, and
the decree is affirmed, at the cost of appellant
(B7 Vk. 468)
In re PC^CTEB'S ESTATBL
Appeal of HALLSTEAD.
(Supreme Court of Pennsylvania. April 16,
1917.)
1. Wixxs 4(=>452—DisiNBXBiTANCB— Intent.
Every doubt must be resolved in favor of
the heir at law, who cannot be disinherited ex-
cept by express words or by aeceasaiy impli-
cation.
2. WiLi« o-iliO PaEBTJMPTioit AoAnnrr Ir-
TESTAOT.
The presumption is that a testatrix intend-
ed to dispose of her residuary estate.
3. Wills «=>509— Bxtocation or BxatDVUX
Cla UBS— EirFBOT.
The revocation by codicil of a residuatr
clause in favor of a legatee, effecting a gift over
to the next of kin of the testatrix, did not pre-
clude such legatee from sharing in the gift to
the next of km of which be was one, where be
was not excluded by express language or 1)7
neceasary implication.
Appeal from Orphans' Court, Lackawanna
County.
Appeal by Jesse Wilkins Hallstead, by his
mother and next friend, Maud Hallstead,
from a decree dismissing exceptions to adju-
dication in the estate of Lucy A. Potter, de-
ceased. Reversed, and record remitted to the
court below for distribution of estate.
Argued before BROWN, C. J., and POT-
TER, STEWART, FRAZER, and WAL-
LING. JJ.
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IN RE POTTER'S ESTATB
759
J. E. Sl<^Ier and H. D. Oarey, both of
Scranton, for appellant W. L. Scbanz and
O. B. Gardnec, both of Scnmton, for ap-
pellee.
WALLING, 3. Lucy A. Potter made ber
will in 1906, and In the eighth and ninth
paragraphs gave her nephew, Erwln M. Hall-
stead, certain furniture and household ef-
fects, and the fourteenth paragraph thereof
is:
"Fonrteentb. I order and direct that after the
payment of all debts, legacies, expenses and
charges hereia mentioned, the money arising
from my estate shall be safely invested by my
cxecntor in banlc or real estate secarities, and
the income therefrom paid only annually to my
said nephew, Erwin M. Hallatead, during the
term of his natural life. Should the said Er-
win M. Hallstead die leaving children, all my
remaining estate shall go to said children, ab-
solutely, share and share alike, and should he
die leaving one child to survive him, then all
the said estate to go to said child absolutely.
Bat sbonld the said Erwin M. Hallstead die
wiUiout leaving any child to survive him, then
all toy said remaining property, and estate is
to go to, and bo divided amongst my next of
kin in accordance with the intestate laws of the
state of Pennsylvania, in same manner as thongh
I had not made any will, except that my broth-
er, C. W. Moredock, shall not participate in said
distribution, or receive any part of my estate,
as I feel that I have already helped him in
Tarions ways to as mach as be wonld be fairly
entitled to receive."
Mr. Hallstead was married In 1907, and
^ed in 1912, leaving a posthumous cbild,
Jesse Wilklna Hallstead, the appellant In
1914 Mrs. Potter made a codicil to said will,
which Is, Inter alia, aa follows:
"First My nephew, Erwin M. Hallstead, hav-
ing died since said will was executed, I hereby
revoke aU portions of the eighth, ninth and four-
teenth paragrapbs' of said will, by which any
property, or the use thereof was given or be-
Sneatbed to said Erwin M. Hallstead, or to his
bildren or child should any survive him. • • •
"Ninth. All the terms and conditions of said
wlU are to bo and remain in full force except
aa revoked or modified by this codicil."
Testatrix died childless shortly after the
execution of the codidl, leaving as her next
of kin her said brother, now deceased, two
nieces, daughters of a deceased sister of tes-
tatrix, and appellant the grandson and only
Uneal descendant of another deceased sister.
f1] Mrs. Potter's executor filed an account
•bowing a fund for distribution, no claim to
wtdCh was made on behalf of the brother or
Ills children ; and from a decree of the or-
phans' court awarding 'same to the two
nieces, to the exclusion of appellant this ap-
peal was taken on his behalf. Admittedly,
as between him and the nieces, he is en-
titled to one-half of the fund, unless exclud-
ed therefrom by the terms of the will and
-codidl. After a careful examination, we are
of the opinion that there is no such exclu-
sion, and that appellant as next of kin Is en-
titled to share In the distribution in accord-
ance with the Intestate laws. Every doubt
must be resolved In favor of the heir at law,
who cannot be disinherited excej^t by express
words or necessary implication. Bender ▼.
Dletri(^, 7 Watts & S. 2^; Brendlinger t.
Brendlinger, 26 Pa. 131; France's Estate, 75
Pa. 220; Bruckman's Estate, 195 Pa. S63, 45
AU. 1078.
[2, 3] The presiunptlon is that testatrix in-
tended to dispose of ber residuary estate,
and construing together the will and codidl,
it may fairly be determined that she did so.
The original residuary bequ^rt; to Mr. Hall-
stead and his child contained in the will was
revoked by the codidl, and thereupon the
alternative residuary bequest to the next of
kin took efTect. This thought is emphasized
by paragraph 9 of the codidl, wherein testa-
trix expressly continues in full force all of
the terms of the will except as revoked or
modified. Now the codidl revoked all por-
tions of paragraph 14 of the will, by which
any property was given or bequeathed to Mr.
Hallstead dr to his surviving child, which re-
voked all of the paragraph down to and in-
cluding the words "then all ot said estate to
go to said child absolutely," and thereby he
was deprived of the bequest as sole resid-
uary legatee. But only so mudi of the para-
graph was revoked as gave something to
Hallstead or his child. The original will
gave them nothing as next of kin ; for by Its
express terms nothing was given to the next
of kin until after the death of both Hall-
stead and his child. The codidl by its terms
revoked only what had been given In the
vrill, and did not attempt to revoke the rights
of the next of kin, which arose by virtue of
the codidl Itself and had no prior existence.
She did not revoke that which had no exist-
ence until after the revocation. Whatever
rights the next of kin have as residuary leg-
atees had their inception in the codidl, be-
cause the will gave them nothing as such
except upon a condition that never occurred,
to -wit, the death of Hallstead and bis child
during the life of testatrix. But the codidl
was a republlcat,lon of the will as modified,
and thereby the residuary estate was given
to all the next of kin as they would have
taken under the intestate laws, with the
single exception that the brother was ex-
cluded therefrom. At the time of such re-
publication Mrs. Potter undoubtedly Imew
that appellant was one of her next ot kin,
and had she desired to exdude liim could
have so stated, or, had she then intended to
give all of her residuary estate to the two
nieces, that could have been stated in the
oodldL Bnt the mere fact that testatrix re-
voked the clause making appellant sole lega-
tee, withotit more, does not preclude him
from sharing in the gift to the next of kin
of which he is one. Construing the will and
codidl by the language used, we find nothing
to prevent appellant from so sharing. He
is excluded neither by express language nor
by necessary implication: In fact, as the ex-
press e.\clusion Includes the brother only, the
implication would be the other way, as Tt
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760
101 ATIiANTIO REPORTER
(Pa,
also would because of the fact that the resid-
uary estate is giren to the next of kin as a
class and not to any particular individuals.
Because Mrs. Potter did not desire appellant
to have the entire residuary estate does not
(flange his status as next of kin or deprive
him of the right to share with the others as
such. See Hitchcock t. Hitchcock, 35 Pa.
393; Wain's Estate, Vaux's Appeal, 156 Pa.
194, 27 Atl. 59; Oorgas's Estate, Robinson's
Appeal, 166 Pa. 269, 31 Atl. 86; FuUer-s Es-
tate, 225 Pa. 626, 74 AU. 623.
The cases above cited seem to support our
conclusion although no two wills are exactly
alike.
McGovran's Estate, 190 Pa. 375, 42 AU. 705,
relied on by the court below. Is not in point,
except as applicable to the brother. There
the residuary bequest was, "The rest and
residue of my estate I direct to be distribut-
ed by my executor hereinafter named under
the Intestate laws of Pennsylvania, but in no
event is Mrs. Murdock, widow of Campbell
Murdock, or her three children, and Mrs.
Kate Johnson, or her two children, to receive
any portion of my estate in any shape or
form," and it was held that those so express-
ly excluded were not entitled to share in the
distribution; whereas in our case there is no
express exclusion of appellant
The assignments of error are sustained,
the decree is reversed at the cost of appel-
lees, and the record is remitted to the court
below that distribution may be made in ac-
cordance with this opini(»i.
(2BJ Pa. 849) '
O. a GAWTHROP CO. t. PIBRB SPE-
CIALTY CO. et al.
(Supreme Court of Pennsylvania. AprQ 9,
1917.)
1. ASSIONUKNTB FOB BENEITr OT CbBDITOIIS
«=»298— Rights of Creditors— Tike.
The rights of creditors are fixed as of the
date of an assignmeiit for the benefit of credi-
tors.
2. PamciPAi. AND SuBETT ^=>194(1) — Con-
tribution—CtAiH OF COBITBXTT.
Except as to the right and property con-
nected with the transaction, the claim of a
cosurety for contribution is no higher than that
of any other claim.
8. SUBBOOATION «=»1— Gbotjnds— EquiTT.
Subrogation, which is founded upon equity,
wQI never be granted to the prejudice of other
rights of equal or higher rank.
4. ASSIONHEKTB FOB BENEFIT OF CbKDITOBS
«=>298— Claims— Equities.
Claims against an insolvent estate existing
at the date of an assignment for the benefit of
creditors are at least as strong in equity as a
claim thereafter arising, even though the ob-
ligation out of which it arose antedated the as-
signment.
6. SUBROOATION «=»21— PAYMENT— GROUNDS.
It is not a liability to pay, but an actual
payment to the creditor, which raises the equi-
table right to be subrogated to his remedies.
6. Assignments for Benefit of Creditors
^=3215 — Status of Assionbe.
An assignee for the benefit of creditors
stands in the place of the assignor.
7. COBPORATIONS «=356e(l) — IHBOI.VKNCT -
Rights as Between Subxties — General
Creditor.
A surety on the bond of the treasurer of
the corporation loaned $5,000 to the corpora-
tion on its note, and Eubsequently made an as-
signment of his property, including the note, to
a trustee for the benefit of his creditors, and
the estate of a cosurety paid the corporation
the amount of the treasurer's default and claim-
ed subrogation to the rights of the first surety
for the amount of the dividend awarded him
against the corporation in receivership, in pref-
erence to hie general creditors whose claim*
arose before the treasurer's default Held, that
the estate was only a general creditor.
8. Appeai, and Ebbob €=>1170(12)— Decree
ON Exceptions to Auditob's Report— R&
versau
Where the lower court's decree sustains ex-
ceptions to an auditor's report, and the con-
trolling exceptions are well taken, and the decree
is properly entered, it Will not be reversed be-
cause it apparently su^^tains some minor excep-
tions not well founded, nor because of minor
inaccuracies in the opinion filed with the decree.
Appeal from Court of (Tommon Pleas, Ches-
ter County.
Proceeding by the C 6. Gawthrop Com-
pany against the Fibre Specialty Company,
George W. Taft president and J. W. Braln-
ard, secretary. E^rom a decree sustaining
exceptions to the auditor's report and direct-
ing the disposition of dividends, D. Duer
Philips and others, executors of James M.
Worrall, deceased, appeal. Affirmed.
Argued before BROWN, G. J., and MES-
TREZAT, STEWART, MOSOHZISKBR, and
WALI.ING, JJ.
Isabel Darlington and Thomas S. Butler,
both of West Chester, for appellants. A. H.
Holding, of West Chester, for appellee.
WALLING, J. This is a question of dis-
tribution In an Insolvent estate. On April
28, 1913, receivers were appointed for the
Fibre Specialty Company, a corporation.
Prior thereto, on July 23, 1912, the company
for value gave George W. Taft a demand
note for $5,000. J. W. Bralnard was of-
ficial treasurer of the company, and in 1903
gave a bond in $5,000, with Taft and James
M. Worrall (now deceased) as sureties, condi-
tioned for the faithful performance of his
duties as such treasurer. June 26, 1913, Mr.
Taft made an assignment of bis estate, spe-
dflcally Including the $5,000 note, to Harry
W. Chalfant, for benefit of creditors. In
1914 the receivers filed an account and an
auditor was appointed to make distribution
thereof, to whom the Taft note was present-
ed by the assignee, and a dividend amount-
ing to $2,157.15 awarded thereon. Mr. Braln-
ard, while treasurer of the company, made
default, by reason of which the receivers
brought suit against him and his sureties on
the bond in the court of common pleas of
Chester county, at the January term, 1915,
and recovered a verdict for $3,809.02, on
which Judgment was entered, and afflmieil
by this court in case of Marshall v. Braioenl
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SCHUTLKILL COUNTY v. WIEST
761
253 Pa. 35, 97 AtL 1057. Bralnard and Taft
being Insolvent, this Judgment was, on April
20, 1916, paid by appellants as executors of
James M. Worrall, deceased, to whom one-
IiaU ot the judgment was thereupon assigned.
After tbe award of the dividend to Chal-
fant on the Taft note, the claim against
Bralnard and his sureties on the bond hav-
ing been brought to the attention of the court
below, it was there ordered that the dividend
be retained by the receivers until the final
determination of the action on the bond,
which was done. The receivers in a subse-
quent final account charged themselves with
the $2,157.15 dividend, which the auditor
thereafter awarded appellants by way of
contribution from Taft as their cosurety.
The learned court below sustained exceptions
to the auditor's report, and by final decree
ordered the dividend paid to Ghalfant on the
Taft note ; and from that decree this appeal
was taken.
The $5,000 note was a matter entirely sep-
arate and apart from the treasurer's bond,
and had no connection with Mr. Bralnard or
his account with the company. Appellants'
right to contribution or subrogation arose
when they paid the Judgment. Then they
were equitably entitled to an assignment of
the Judgment, and also of any collateral or
other property held by the receivers to se-
cure the payment of the bond. But they
were not entitled to the dividend awarded to
the Taft note, as that was an entirely sepa-
rate matter. The note was a part of Taft's
general estate, and appellants had no special
«qulty in that Except as to matters connect-
ed with the bond, appellants are merely
creditors of Taft to one-half the amount they
paid on account of the surety bond; and they
only became such creditors when they paid
the Judgment on April 20, lOlOw Prior to that
time they had no claim against Taft See 8
Modern American Law, p. 224.
[1-t] It Is not easy to see how appellants
can secure preference over other creditors
whose claims were in existence at the time
Of the assignment, for as a general rule the
rights of creditors are fixed as of that date.
Sweatman's Appeal, 150 Pa. 360, 24 AU. 617;
Jamison & Go.'s Assigned £}state, 163 Pa. 143,
29 Atl. 1001 ; Potter v. Gilbert 177 Pa. 159,
35 Atl. 597, 35 L. R. A. 580; Chestnut StreM
Trust & Saving Fund Go.'8 Assigned Estate,
217 Pa. 151, 66 Atl. 332, 118 Am. St Kep. 909.
Except as to rights and property connected
with the transaction, the claim of a cosurety
for contribution is no higher than that of
any other claim; and subrogation, which is
founded upon equity and benevolence, will
never be granted to the prejudice of other
rights ' of equal or higher rank. Frltch v.
Citizens' Bank, 191 Pa. 283, 43 Aa 394;
Knoufs Appeal, 91 Pa. 78; Grand Council
of Penna. Boyal Arcanum v. Cornelius, 198
Pa. 46, 47 AtL 1124; Shimp's Assigned Es-
Ute, 197 Pa. 128, 46 Atl. 1037. aaims
against an insolvent estate which were in
existence at date of the assignment, would
seem at least to have as strong an equity as
one thereafter arising, even though the ob-
ligation out of which it arose antedated the as-
signment "It is not a liability to pay, but ac-
tual payment to the creditor, which raises the
equitable right to be subrogated to his reme-
dies." Kyner v. Kyner, 6 Watts, 221; Hoover
V. Epler, 52 Pa. 522; Forest Oil Company's
Appeals, 118 Pa. 138, 12 AU. 442, 4 Am. St
Rep. 584. Subrogation wUI never be enfoiced
to defeat a superior or even an equal equity.
Bobeson's Appeal, U7 Pa. 633, 12 Atl. 61. A
case quite similar to this in principle is that
of Farmers' & Drovers' Bank v. Sherley et
al., 12 Bush (75 Ky.) 304.
[•, 7] Creditors of Taft acquired no special
rights because of the transfer of the note to
Chalfant, as an assignee for b^ieflt of credi-
tors stands in the place of the assignor (Pot-
ter V. GUbert, 177 Pa. 159, 35 Atl. 597, 35
Ll B. a. 580), and not in that of a bona fide
holder for value. In Marshall ▼. Brainerd,
supra, it Is held that the Taft note could not
be interposed as a set-oS against the suit
on the treasurer's bond. Whether or not
such bond should have been set off against
the claim on the note does not seem now im-
portant; tn any event It was not so used;
and the real question here Is as to the equita-
ble rights to the fund in question between
the Worrall estate and other creditors of
Taft. The question as to the validity of the
assignment to Ghalfant la not before the
court The other assignments of error do not
seem to require special consideration.
[S] Where the lower court makes a gen-
eral decree sustaining ^ceptions to an audi-
tor's report, and the controlling exceptions
are well taken, and the right decree is en-
tered, an appellate court will not reverse be-
cause such general decree seemingly sustains
some minor exceptions that were not well
founded, nor because of minor inaccuracies
in the opinion filed with the decree. How-
ever, the opinion tn this case indicates a cor-
rect understanding of the facts and legal
principles applicable thereto.
The decree is affirmed, at the costs of ap-
pellants.
(2R Pa. 42S)
SCHmLKIIiL OOUNTT v. WIEST,
County Treasurer.
(Supreme Court of Pennsylvania. April 16,
1917.)
1. CotrNTTBS <8=»72— OOTJNTY Clbbk— Salabt
— OONSTITUTIONAI. AND SXATUTOBT PBOVI-
BI0N8.
Const art 14, § 5, providing that compen-
sation of coanty officers shall be regulated by
law, and that county officers shall pay all fees
received into the county or state treasury as
directed by law, and Act March 31, 1876 (P. L.
13) § 1, requiring county officers to receive all
fees for the use of the county, except Uiose
tCSiWot otbcr i!naes se« nine toplo and KBT-NUUBER is all Ker-Numbered Digest! and lnd«zw
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101 ATLANTIC RJEPOBTBB
(Pa.
levied by the state wUcIi shall be payable to it,
and that they abaU receive no fees for any offi-
cial services, and section 15, declaring the salary
of such officers to be in lieu of any fees and
perquisites, show a fixed intention to confine
salaried county officers to their salary as com-
pensation for all official services.
2. Counties ^s»80(2)— Countt Tkeabubeb—
Disposition of Fees— Constitutional and
Statutory Pbovisions.
Under Const art. 14, { 5, regulating the sal-
ary of county treasurers and their disposition
of fees received in their official capacity, and
Act March 31, 1876 (P. It 13), enacted to carry
such provision in effect in counties containing
over 150,000 inhabitants, the treasurer of such
a county is not entitled to retain the fees col-
lected by him for issuing hunters' licenses under
Act April 17, 1913 (P. L. 85), but is required
to pay them into the county treasury.
8. Officers ®=»94— Gokfbnsation tob Sebt-
ices— Presumption.
The presumption is that, when an officer
receives money for services rendered in his of-
ficial capacity, it is as compensation for the per-
formance of duties as such officer.
Appeal from Court of Common Pleas,
Schuylkill County.
Assumpsit for money bad and received
by the County of Schuylkill against Fred J.
Wlest, County Treasurer. Judgment for
plaintiff on the case stated, and defendant
appeals. AfSrmed.
Argued before BEOWN, C. J., and MES-
TBEZAT, POTTEai, FRAZER, and WAL-
IJNvi, JJ.
John B. McGurl, of MlnersvUle, for appel-
lant Edmund D. Smith, Sp. Counsel, C. £3.
Berger, SoL for Controller, and C. A. Snyder,
Co. SoL, all of PottsvUle, for appellee.
MESTB£ZAT. J. This la an action of as-
■umptBlt brought by the county of Scbuylkill
to recover fees collected by the defendant,
as county treasurer, for banters' licenses
issued by blm under the provisions of the
act of April 17, 1913 (P. L. 85). The treasur-
er claims that the fees belong to him per-
sonally, and that he is entitled to retain them
tor bis own use, while the county contends
that they belong to it and must be accounted
for by the treasurer. The facts were agreed
upon by the parties and submitted to the
court in a case stated. The court was of
opinion that the license fees collected by the
treasurer belong to the county, and entered
judgment against the defendant He has
taken this appeal.
The act of 1913 was passed, as Its title
shows, for the better protection of wild birds
and game within the state. It authorlEes
the county treasurer to Issue a "resident
hunter's license" granting permission to bunt
for birds and game within the state and pro-
vides penalties for a violation of Its provi-
sions. The eighth section of the statute en-
acts as follows:
"Said county treasurers are herewith author-
ized to retain for services rendered the sum of
ten cents from the amount paid by each licensee,
which amount shall be fuU compensation for
services rendered by him in each easo under the
provisions of this act, and shall remit all bal-
ances arising from this source, at least once a
month, to the state treasurer, for the purposes
otherwise provided for in this act"
11] The county of Schoylklll contains over
150.000 inhabitants, and therefore is within
section 5, art 14, of the Constitution of Penn-
sylvania, which provides. Inter alia, as fol-
lows:
"The compensation of county officers shall be
regulated by law, and all county officers who
are or may be salaried, shall pay all fees wiiich
they may be autbori2ed to receive, into the
treasury of the county or state, as may be di-
rected by law. In counties containing over one
hundred and fifty thousand inhabitanlv, all
county officers shall be paid by salary."
To carry into effect tills provisi<Hi of the
Constitution the Legislature passed the act
of March 31, 1876 (P. L. 13), section 1 of
which provides that in counties containing
over 150,000 inhabitants—
"all fees limited and appointed by law to be re-
ceived by each and every county officer • • •
or which thoy shall legally be authorized, requir-
ed or entitled to charge or receive, shall belong
to the county in and for which they are sev-
erally elected or api^inted; and it shall be the
duty of each of said officers to exact collect
and receive all such fees to and for the use of
their respective counties, except such taxes and
fees as are levied for the state, wliich shall be
to and for the use of the state; and none of
said officers shall receive for his own use. or for
any use or purpose whatever except for the
use of the proper county or for the state, as the
case may be, any fees for any official services
whatsoever."
The act Axes the salary of the treasurer
and other county officers, and then provides
in section 15 as follows:
"Tho salaries fixed and provided by the fore-
going provisions shall be In lieu of all or any
moneys, fees, perquisites or mileage which are
now or may hereafter be received by any officer
named in this act; and all said moneys, feea,
mileage or perquisites, received by any of them
as compensation, fees or perquisites, from any
source whatever, shall in all cases belong to the
county, and shall be paid into the treasury (ex-
cept where required to be paid to the state), as
provided in this act"
We think there is no dUBculty in sustain-
ing tbe Judgment entered for ttie plaintiff t>j
the learned court below. The constitutional
mandate and the legislative enactment passed
to make it effective are so explicit that tbey
do not require Judicial construction. In fad,
as was well said by Judge Thayer in Plerie
V. Philadelphia, 139 Pa. 573, 578, 21 AtL 90:
"The prohibition of the receipt of fees for
their own use, and the reflation of their com-
pensation by fixed salaries exclusively, could
hardly have been expressed in plainer language
than that which is written in the ConstituticKi.
It is impossible for any ingenuity to prevail
against it. There is nothing left for conatruc-
tion or interpretation. It mterprets itself as
plainly as any words in the English language
can do so, and there is no hook upon which to
hang a query or a doubt"
In making this assertion we are nut un-
mindful of the several attempts made by
county officers, as disclosed by the numerous
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SCHUYIiKILIi COUNTY t. WIBST
763
rases In this court, to defeat the eonstltatlon-
al and statutory enactments by appropriat-
ing to their use fees received in their official
capacity. This provision of the Constitu-
tion has never been satisfactory to county
offidala, who, by the assistance of able and
ingenious counsel, have omitted no oppor-
tunity to evade its mandatory provisions.
An analysis of the enactments, constitution-
al and legislative, will clearly show the fix-
«d intention to confine a salaried county of-
ficer to bis salary as compensation for all
services rendered in his official capacity. The
Gonstltutloa declares that he "Shall pay all
fees" which he may be authorized to receive
into the treasury of the county or stata The
first section of the act of 1876 provides that
"all fees limited anJd appointed by law" to be
received by count? officers shall be received
"to and for the use of their respective coun-
ties," and declares that "none of said [county]
officers shall receive for his own use, or for
any use or purpose whatever except for the
use of the proper county or for the state,
* * * any fees for any official servioes
whatsoever." Section 16 seeks to emphasize,
If it can be made more emphatic, the pro-
vision of section 1 by declaring that salaries
fixed by the act "shall be in lieu of all or any
moneys, fees, perquisites or mileage, which
are now or may hereafter bo received by any
officer; • • • and aU said moneys • • •
received by any of them as comi>ensatloa,
fees or perquisites, from any source whatr
ever, shall in all eases belong to the county,
and shall be itaid into the treasury (except
where required to be paid to the state), as
provfded in this act" As to this exception
and in explanation of it, Mr. Justice Dean,
q)eaklng for the court, said In Ck)mmcmwealth
V. Mann et aL, 168 Pa. 290, 290. 31 Att. 1003,
1006:
"This would have been but littlo more siKnifi-
cant if it had said 'except collateral inheritance
taxes, state tax on writs, wills, commissions and
license fees.' "
Section 9 of the act requires county of-
ficers to make monthly returns to the state
treasurer of such taxes and all fees otherwise
due the state, and pay the same quarterly
into the state treasury, and provides that:
"All commissiooa on the collection of sncli
taxes as are now or may hereafter be allowed
by law shall be deemed and taken as part of
the regular fees of the officer collecting the same,
and shall be accounted for accordingly."
The present controversy la between an in-
dividual, who Is county treasurer, an'd the
county. The state is not claiming the fees
for which this suit was brought nor is she
Interested in who gets them.
[2, 3] The county of Schuylkill has a popu-
lation of over 150,000, and the treasurer of
the county Is therefore a salaried officer. He
receives $5,000 a year for his services. It is
difficult to see, in view of the constitutional
and legislative provisions, what claim the
defendant, Wiest, county treasurer, as an In-
'dlvidual and for his own use, can have on
the fund In controversy. He, through his
counsel, contends In support of his claim that
the services performed by him In collecting
the hunters' license fees under the act of 1913
were rendered to the state, and were no part
of his duties as county treasurer, but separata
and yistlnct therefrom. This contention can-
not be sustained. The act of 1913 did not
make Wlest a state officer, as will be conced-
ed, nor did he have any functions as such to
perform in the collection of the license fees.
He dfd not receive the fees in controversy
by authority conferred on him as a state offi-
cial. The act deals with him as a county, and
not a state official, and not as an individual.
The Constitution of the state fixed his status
as a county officer. The county treasurer,
as providcfd In the act, is authorized to issue
hunters' licenses, to collect |1 from each ap-
plicant, to retain 10 cents from the amount
paid to the licensee, and remit the balance to
the state treasury. The act therefore confers
its authority on the county treasurer, and not
on the individual who happens at the time
to be the incumbent of the office. Each step
he takes to carry out the provisions of the
act la in his official capacity as county treas-
urer. The license Is issued and signed by the
county treasurer In his official, and not his
personal, capacity. By virtue of his office,
and not as an Individual, he collects the li-
cense fee and retains the amount for services
designated in the act It is true that the li-
cense fees are levied for and are to be paid
to the state, but It does not follow that the
compensation for the services rendered in
issuing the licenses and collecting the fees
therefor Is to be paid to and for the use of
the Individual who at the time is the officer
authorized in his official capacity by the stat-
ute to perform the service. On the contrary,
section 9 of the act, as will be observed, pro-
vides that the commissions for coUecting
state taxes and fees shall be deemed "part of
the regular fees of the officer collecting the
same, and shall be accounted for accordingly."
The act docs not appoint county treasurers as
agents of the commonwealth to collect the
license fees, nor does it authorize them to ap-
ply to their own use the money retained for
such services. The presumption Is that, when
an officer receives money for services render-
ed in bis official capacity, it is as compensa-
tion for the performance of duties as such of-
ficer. If Wiest had not held the office of
county treasurer, he could not have Issued
the hunters' licenses or collected the license
fees, and necessarily couTd not have retalaed
the designated fees for the services. He
therefore holds the fees, received as compen-
sation, in his official capacity as county treas-
urer, and under the constitutional and leg-
islative mandates he must account for them
to the county of Schuylkill.
In construing the act of 1876 and holding
that the prothonotary of Schuylkill county, a
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764
101 ATIiANTIC REPORTER
(Pa.
salaried officer. Is not entitled to the fees au-
thorized by the act of Clongress to be retained
by him for the naturalization of aliens, Mr.
Justice Stewart, speaking for the court in the
recent case of SchuyiklU C!ounty t. Reese,
249 Pa. 281, 286. 95 Atl. 77, 78, said:
"These fees for services in c<mnection with
naturalization proceedings, though prescribed by
federal statute, and by such statute directed to
be paid to a clerk of a state court, are quite
as clearly limited and appointed by law to be
collected by such official as any fees prescribed
by state enactment. ♦ • ♦ It was only by
virtue of bis official cbaracter, and not as an
individual, that he was authorized to collect and
receive these fees; he is not designated as an
Individual, but as an official."
The Supreme Ck>urt of the United States,
In Mulcrery & Fidelity & Deposit Oo. ▼. City
and County of San Francisco, 231 U. S. 669,
84 Sup. Ct 260, 68 L. Ed. 425, In construing
a provision of the city charter of San Fran-
cisco similar to the provision of onr act of
1876 and applying this act of Congress, came
to the same conclusion, and held that the
clerk should account to the county for the
fees received by him. Mr. Justice McKenna,
speaking for the court, said (231 U. S. 674,
34 Sup. Ct 262, 58 L. Ed. 425) :
"If it be granted that be was made an agent
of the national government, his relations to the
city were not thereby changed. He was still
its officer, receiving fees l)ecau8e bo was not
earning them otherwise, or receiving them other-
wise, but under compact with the city to pay
tbem into the city treasury."
The judgment is affirmed.
(267 Pa. Ml) -==•
KETCHAM V. LAND TITLE & TRUST CO.
(Supreme Court of Pennsylvania. April 16,
1917.)
MoRTOAOES iS=>151(3)—PBi0RrrT— Mechanics'
Liens— Demolition of Building — "Visible
Commencement upon the Gbound of toe
Work of Building."
Where it was necessary to tear down a
dwelling house before an apartment house could
be constructed upon a lot and the demolition
was performed under the same contract as the
construction, such demolition constitutes a "visi-
ble commencement upon the ^ouad of the work
of building" within Mechanic's Lien Act (Act
June 1, 1901 [P. L.l 431) | 18, defining the
priority of liens, so that a mechanic's lien filed
for work, labor, and materials in the construc-
tion dated from the commencement of such
demolition, and was prior to a mortgage execut-
ed and recorded after the demolition has been
completed.
[Kd. Note.— For other definitions, see Words
and Phrases, First and Second Series, Visible
Commencement of Work.]
Appeal from Court of (Common Pleas, Phil-
adelphia county.
Assumpsit on a policy of title Insurance
by O. W. Ketcham against the Land Title &
Trust Company. From a final order dismiss-
ing exceptions to the report of a referee,
defendant appeals. Affirmed.
Argued before BROWN, C. J., and STEW-
ART, MOSOHZISKBR, FRAZER, and WAL-
LING, JJ.
John G. Johnson, Ormond Rambo, and J.
Quincy Huusicker, Jr., all of Philadelphia,
for appellant. Alex. Simpson, Jr., and Joseph
O. Magee, both of Philadelphia, for api)elle&
BROWN, C J. On July 9, 1»12, Samuel
Shoemaker acquired title to a lot of grotmd
situated at the northeast corner of School-
house lane and Wayne avenue, Germantown,
on which there was a suburban dwelling
house. Shoemaker purchased the lot for the
purpose of erecting an apartment house upon
It on the site of the dwelling house. On
August 5, 1912, he executed a mortgage on
the premises to Frank H. Moss for $150,000,
and the money so raised was expended In
the erection of the new building. The L&nd
Title & Trust Company, the appellant, issued
its policy of insurance to Moss, the mortga-
gee, insuring the completion of the apartment
house discharged of liens. O. W. Ketcham,
the appellee, filed a mechanic's lien against
it for materials furnished to Shoemaker for
the erection of it. In proceedings on the
Moss mortgage the premises were sold at
sheriff's sale, and Ketcham, claiming that bis
mechanic's Hen had priority over the mort-
gage, took a rale on the sheriff to pay the
entire purchase price for the property, $160,-
000, Into court This rule was subsequently
abandoned by Ketcham, he and the Land.
Title & Trust Company having agreed In
writing that the question of the priority of
his lien over the mortgage should be referred
to Francis B. Bracken, Esq., under the act
of May 14, 1874 (P. L. 166). In pursuance
of the terms of this agreement, Ketcham
brought suit against the Land Title ft Trust
Company, and from the r^ort of the refereei,
confirmed by the court below, holding that
the mechani<i'8 lien had priority over the
mortgage, the present appeal was taken.
The facts in the case are not in dispute.
The amount claimed by the appellee on bis
mechanic's lien — $15,066— Is' admitted to be
correct His claim for its priority over the
mortgage is resisted solely on the ground
that the mortgage was recorded before there
was "the visible commencement" of the
apartment house within the meaning of the
Mechanic's Lien Act of June 4, 1901 (P. L.
431, { 13). The only work done on the prem-
ises prior to August 6, 1912, the date of the
execution and recording of the mortgage, in
connection with the contemplated erection of
the apartment honse, was the demolition of
the dwelling house. This work, which was
commenced on July 15th, was completed on
or about tlie third of the following month,
two days before the recording of the mort-
gage, and the question before the referee and
court below was whether Its demolition was
"the visible commencement upon the ground
of the work of building" the apartment
house.
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IK BE BKIKGHUBST'S ESTATE
765
nie demolition of ibe dwelling house was
a necessary precedent condition to the erec-
tion of the apartment bouse. The latter could
not be bnllt until the former was out of the
way. The tearing down of the old house was
more essential to the building of the new
than would hare been the digging of a cel-
lar, for the new bouse might have been built
without a cellar. The first step to be taken
for its erection was the removal of the old
dwelling which stood on the site selected for
It. The situation here presented is not that
of the removal of an old building having no
connection with the construction of a new
one, for the removal was so linked with the
work upon the new building as to become a
part of one single operation, and this con-
dusively appeared to the appellant before it
issued its policy of insurance to Moss. The
architect who designed the new building and
drew tlw speclflcatlons for it to be submitted
to contractors, included in them the follow'
Ing:
"Demolition. Bemove the buildings now on
the site together with all foandations, sidewalks
and curbing, and prepare the site to receive the
new building."
J. Willlson Smith, the manager of the
building operation department of the appel-
lant, admitted in bis testimony before the
referee that these specifications were on file
with his company before it issued its policy
to Moss, and the learned court below. In dis-
missing the exceptions to the report of the
referee, properly said:
"The defendant had actual knowledge that the
work of demolition was done for constructive
purposes, that is. as part of the work necessary
to the new building. The specifications recited
the work of demolition and construction as part
of the same contract, and it was these specifica-
tions which the defendant insured should hi
carried out. Moreover, the money to pay for
the whole was deposited with the defendant for
distribution. It therefore had knowledge of the
unity of the operation."
We' find none of the authorities dted by
learned counsel for appellant in conflict with
the correct conclusion of the learned referee
that, under the undisputed facts in the case,
the demolition work incident to the erection
ol) the apartment house on the lot of ground
subject to the mortgage Insured by the de-
fendant was a "visible commencement" of the
work of building the apartm^it house, within
the meaning of the mechanic's lien act. In
none of our own cases was the question now
before us passed upon. It Incidentally arose
In McCristal T. Cochran, 147 Pa. 226, 23 Atl.
444, and. In declining to pass apon It, Mr.
Cblef Justice Paxson said:
"Most of the items contained in the bill of par-
ticulars were for tearing down an old builrling
preparatory to the erection of the new building,
for which the claim was filed. Whether such
demolition is part of the erection of a new
building is a question which we do not find de-
cided by this court in any reported case. We
are not required to do it now, as the first item
In the bill of particulars Is sufBcient to sustain
the claim. It is not a good ground to strike
off a claim that some of the items are insuffi-
cient. If it contains one good item, which is
the subject of a Uen, it is enough."
Among the cases in other jurisdictions sus-
taining the referee are Whltford v. Newell,
2 Allen (84 Mas&) 424; Bruns v. Braun, 35
Mo. App. 337; Pratt v. Nakdimen, 99 Ark. 293,
138 S. W. 974, Ann. Cas. 1913A, 872. "Where
improvements for which a lien can properly
be obtained are made, the lien may Include
the work of tearing down old structures or
parts thereof which was a necessary part of
the making of the improvements," 27 Cyc. 36.
In Ann. Cas. 1912B, 15, there is a note on the
subject now under consideration, and, after
citing authorities which hold that, for the
removal or demolition of a building, no Hen
will be ^stained, It proceeds as follows:
"Where an old building is torn down for the
purpose of erecting a new one, obviously a dif-
ferent cajse is presented. The demolition be-
comes part of the work of erection, construction,
or repair, and the laborer is entitled to a lien.
WartI V. Crane, 118 Cal. 676. 50 Pac. 839;
Bruns v. Braun, 35 Mo. App. 337."
The assignments of error are overruled and
the judgment is aflSrmed.
(1G7 Pa. SIS)
In re BRINGHUBSrS ESTATE.
Appeal of FLANAGAN.
(Supnane Court of Pennsylvania. April 16,
1917.)
Wiixs «=3601(7)— Devise to MARann Wo-
MAW— Tbdst.
A will devising a residuary estate to a
daughter for her sole and extrusive use free from
the control of her husband, to be used by her
as if she were sole and nnmarrled, intended a
trust for her separate use, so that her petition
to vacate her appointment as trustee for her-
self, filed during the Ufetime of her husband,
was properly dismissed.
Appeal from Orphans' Court, Philadelphia
County.
Petition by Mary Brlnghurst Flanagan,
trustee, to annul and vacate a decree appoint-
ing her trustee In the estate of Alice R.
Brlnghurst, deceased, and directing the en-
try of security. From an order dismissing
the petition, petitioner appeals. Affirmed.
The facts appear from the following opin-
ion of Lamorelle, J., in the orphans' court:
This is a petition to annul and vacate a de-
cree appointmg a trustee and directing the en-
try of securityr Alice R. Brlnghurst, who died
in the year 1906, bequeathed and devised her
residuary estate unto her daughter, Mnry Brlng-
hurst Flanagan, in the language foUiiwing:
"Sixth. All the rest of residue and remainder
of my estate real and personal and mixed of
whatsoever kind and wheresoever the same may
be situate I give and devise and bequeath to
my daughter Mary Brlnghurst Flanagan to be
for her sole separate and exclusive use notwith-
standing any coverture free and clear of inter-
ruption intervention or control of her husband
or any husband she may have and without the
said property and estate shall be held and used
and enjoyed by the said Mary Brlnghurst Flana-
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IW ATLANTIC REPOllTEB
(Pa.
gan in all respects and in as full and ample a
manner notwitlistanding her coverture aa if abe
were sole and unmarried."
In 1907 Mary Bringhnrat Flanagan, the
daughter, being desirous of selling some of the
realty forming part of Uie residue of the estate,
petitioned this court for leavo to appoint her
trustee for herself to make such sale, and to
give her own bond. In due course she was ap-
pointed such trustee, her request to give her own
bond refused, and security was directed to be
entered in the sum of $12,500.
The surety on the bond is now deceased, and
the purpose of the present petition is to termi-
nate the trust, release the bondsman, and receive
from the executors of her will the sum ef some
$6,500 which he in his lifetime held aa counter
indemnity. Aa we view the will, w« cannot
grant the prayer of the petition.
At the time of the execution of the will Mary
Bringhurst Flanagan was married, and her
hnsbuid survives. It was the manifest intention
of testatrix that her daughter should hold the
estate for her sole, separate, and exclusive use,
and while the latter part of the clause wherein
and whereby the gift is made is not altogether
in harmony with the gift itself, we do not feel
that there is such a contradiction as will enable
us to ignore the legal effect of the technical lan-
^age used by the testatrix.
The loiwer court dismissed the petition.
The trustee appealed.
Argued before BROWN, C. J., and STEJW-
ARI, MOSOHZISKER, FRAZER and WAI#-
UNO, JJ.
B. Hnnn, Jr., of PhiladelpUa, for appellant
PER CURIAM. Thongb the last clause of
the sixth paragraph of the will of testatrix
Is apparently contradictory of what immedi-
ately precedes It, her main Intent that a
trust should be created for her daughter's
sole, separate, and exclusive use Is clearly
stated, and the decree is affirmed, at appel-
lant's costs, on the opinion of the court be-
low directing It to be entered.
(2ST Pa. E17)
MILLER T. WEST JERSEY & S. S. R. CO.
(Supreme Court of Pennsylvania. April 16,
1917.)
Railboads «=>327(3)— Obadx Ckossiko Acci-
dent—Cohtwbutobt NiOLIOINCK.
One who before stepping upon a track at a
grade crossing had an unobstructed view for
067 feet, and who, if he had then looked, must
have seen the approaching electric express train
by which he was struck, was negligent.
Appeal from Court of Common Pleas,
Philadelphia County.
Trespass by Elizabeth H. Miller, admin-
istratrix of the estate of Franklin C. Miller,
deceased, against the West Jersey ft Sea-
shore Railroad Company, to recover for the
death of plalntlfTs husband. Verdict for
the plalntur for $25,000, judgment for de-
fendant non obstante veredicto, and plain-
tiff appeals. Affirmed.
.\rgued before BROWN, C. J., and STEW-
ART. MOSOHZISKER, FRAZER, and WAL-
LING, JJ.
Jacob Singer, David Bortln and Emanuel
Furth, all of Philadelphia, for appellant.
Sharswood Brlnton, of Philadelphia, for ap-
pellee.
PER CURIAM. Upon a review of the evi-
dence in this case the court below conid
not have avoided the conclusion that the
carelessness of the deceased, when about to
cross the railroad trades, was responsible
for his death, and the Judgment non ob-
stante veredicto is affirmed on the follow-
ing from the opinion directing tt to be en-
tered:
"If the deceased did not see the electric train
in time to save himself, it was becaase be did
not look. Where a person fails to see that
which was plainly obvious, such person is clear-
ly guilty of contributory neglisjence. The de-
ceased must either have seen the electric train
and have taken his chances of crossing in front
of it, or he did not look. All the facts in the
case evidence that the electric train was not one
which came into view after the deceased was
committed to the act of crossing; it was in
plain view at the time that he stepped npon the
tracks. The deceased was not a stranger at
this railway crossing, as has already been
shown, and his knowledge charged him with the
necessity of exercising special care in crossing
the tracks. It was shown that at the time he
attempted to cross the train that he expected t»
take would not reach the station for some eight
minutes. Another point which would appear t«
be perfectly clear Is that for the whole length
of the picket fence which separated the middle
south-bound track from the north-bound track
there was positively no obstruction of vision.
This fence by measurement was 967 feet. When
the deceased and the witness Avis stood west of
the first outbonod track, after leaving the news
stand and before stepping upon the track, and
also when they stood in the 15 feet clear space
between the two sooth-bound tracks, they had
an admittedly perfect, unobstructed view of
the length of the fence, the 967 feet."
Judgment affirmed.
(SET Pa. 20i
COMMONWEALTH v. KEYSTONE GRAPH-
ITE CO. et aL
(Supreme CJourt of Pennsylvania. Mandt 19^
1017.)
1. JddICIAI. SaUCS «=>1 — MOBTOAGSS— Sais
— "Jddiciai. Sale."
Wlierc a corporation mortgaged its property
to a trust company to secure a bond issue, a
sale by the mortgage trnstee nnder a power of
aale contained in the mortgage to certain trna-
tees for the bondholders, made after the corpo-
ration had sold its interest in the mortgaged
premises, was not a "judicial sale."
PEM. Note. — For other definitions, see Words
and Phrases, First and Second Series, Judicial
Sale.]
2. Taxation ig=»C82— Tax Likn— Ekposck-
UENT Against Pubchaseb at MoBTOAax
FORIXLOSUBE SaUC.
Where a lieu for unpaid capital stock tax-
es WAS entered against the corporation purchas-
er of corporation property mortgaged to secnre
a bond issue, and the property was subsequently
sold by the mortgage trustee under a power of
sale contained in the mortgage to certain trus-
tees for bondholders, the tax lien was not there-
by divested, and the proceeds of the sheriCTs sale
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LAPINCO T. PHILADELPHIA A. R. RY. CO.
767
under Buch Hen were properly awarded to the
coramouwcalth, to the exclusion of the trustees
for bondholders.
Ai»penl from Court of Common Pleas, Ches-
ter County.
Scire facias to remore the Hen of a mort-
gage by the Commonwealth of Pennsylvania
against the Keystone Graphite Company,
with notice to Hiram C. Hlmes and others,
trustees for the bondholders of the New Phil-
adelphia Graphite Company, terre-tenants.
On exceptions to the report of an auditor dis-
tributing the proceeds of a sheriffs sale of
real estate. Dismissed, and defendants ap-
peal. AfBrmed.
Argued before BROWN, C. J., and MES-
TRBZAT, STBWABT, MOSOHZISKER, and
WALUNG, JJ.
Edmund Bayly Seymour, Jr., of Pblladel-
lAla and Arthur P. Reld, of West Chester,
for appellants. Isabel Darlington and Thomas
S. Butler, both of West Chester, for the Com-
monwealth.
WAIiLING, J. In 1905 the New Phila-
delphia Graphite Comptmy, a New Jersey
corporation, took title to certain real estate In
CJhester county. Pa., and at the time execut-
ed a deed of trust In the nature of a mortgage
to the Union Trust Company (now Merchants'
Union Trust Company) to secure an Issue of
bonds to the amount of $50,000. In 1907 the
Keystone Grapblte Company, a Delaware
corporation, purchased the property from the
Z^ew Philadelphia Graphite Company, subject
to the mortgage. On December 14, 1910, the
conunonwealth entered Its lien for capital
stock taxes for the years 1907 to 1910 against
the Keystone Graphite Company. On De-
cember 21, 1910, the trust company, pursuant
to authority contained In the mortgage, sold
tlie property at public auction for |5,000 to
certain parties as trustees for the bondhold-
ers. In 1912 the commonwealth Issued a scire
fadas on Its lien, and the last-named trus-
tees, being served as terre-tenants, made de-
fense on the ground that plaintiff's lien had
been divested by the public sale. Such de-
fense was held InsufBdent, and judgment was
entered for the commonwealth in the court be-
lowi, which was affirmed by this court in Com.
V. Keystone Graphite Co., 248 Pa, 844, 93
Atl. 1071. It Is there held that the sale on
the mortgage, not being a judicial sale, did
not divest the plaintllFs lien.
[1, 2] In 1915 the commonwealth Issued a
levari fadas on the judgment, by virtue of
which the sheriff sold the real estate to trus-
tees for the bondholders for $1,860. The
conrt below confirmed the auditor's report
awarding the fund, less costs, etc., to the com-
monwealth on its judgment. From thts de-
cree the trustees for the bondholders took
this appeal. The fund was rightly distribut-
ed. The public sale on the mortgage divest-
ed its lien and left that of the commonwealth
the first lien against the property. The sher-
iff sold the land as the property of the Key-
stone Graphite Company, and his deed con-
veyed whatever Interest the company had in
the land when the lien of the commonwealth
was filed; and, so far as relates to this dis-
tribution, it Is not lnq)ortant whether his
deed carried a fee or merely an equity of re-
demption. The sherifTs sale certainly did
not divest the lien of the mortgage, and hence
the holders of the bonds thereunder have no-
claim on this fund. It is res adjudicata that
the commonwealth's lien was not divested by
the sale on the mortgage, and hence the pur-
chasers of the land at that sale have no claim
here. One who buys land subject to a Hen
does not thereby become entitled to the pro-
ceeds derived from a suhsequent jndidal sale
of the same projierty on such lien.
' There Is nothing in the record to support
a claim by the purchasers at the sheriff's-
sale to recover back in this distribution the
consideration they there paid for the proper-
ty. The rule of caveat emptor applies to such
sale; and, aside from that, there is nothing
to indicate that the sherltTs vendees did not
acquire a vaUd title. In our opinion the
question of the statutory right of the com-
monwealth to enforce liens filed for such-
taxes, to the prejudice of the holders of prior
mortgages whether given for purchase money
or otherwise, is not involved in this case.
The assignment of error is overruled, andt
the order of distribution is affirmed, at the
costs of the appellant&
(257 Pa. 344)
LAPINCO V. PHILADELPHIA & B. RT. CO.
(Supreme Conrt of Pennsylvania. April 9,
1917.)
1. Bailkoads «=»346(1)— Cbossino Accident
—Negligence— EJviDEKCE.
In action against railroad for personal In-
jury when struck by locMnotive, evidence held
insufficient to overcome presumption that de-
fendant was not negligent in failing to provide
proper headlight, so that trial judge should have
directed finding that headlight was burning.
2. RAIiaOADB «=>333(1)— CKOBSIKO ACCIDBItT
— Contributory NEauoBNOE.
Where plaintiflf stopped, looked^ and listened
at a track next to the one on which the train
which struck him approached, and did not see
the engine, though he had an unobstructed view
for 160 feet, and immediately started across the
track, and wa» struck, he was contributoiily
negligent.
Appeal from Court of Common Pleas, Phil-
adelphia County.
Trespass by Jachim Lapinco against the
Philadelphia & Reading Railway Company to
recover damages for personal Injury. Ver-
dict for plaintiff for $4,500, and judgment
thereon, and defendant appeals. Reversed,
and judgment entered for defendant.
Argued before BROWN. C. J., and MES-
TREZAT, POTTER, STEWART, and FRAZ-
ER, JJ.
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101 ATLANTIC REPORTEB
CPa.
William Clarke Mason, of Philadelphia, for
appellant William T. Connor and John R.
K. Sicott, both ot Philadelphia, for appellee.
BROWN, a J. The plaintiff was struck
by an engine of the defendant on November
29, 1613, about 5 o'clock In the afternoon, at
what Che jury found was a permissible cross- 1
ing in the city of Coatesvllle. For the inju-
ries sustained he recovered a verdict; the
Jury having found that the defendant had
negligently operated its engine at the point
where he was hurt, and that he had exercised
due care in attempting to cross the track.
On this appeal from the judgment on the ver-
dict the contention of the appellant is that
Its motion for a nonsuit ought to have pre-
vailed, or a Terdlct should have been direct-
ed in its favor, as BO negligence on its part
had been shown, and the contributory negli-
gence of the plaintiff was so clear that the
trial Judge should hare declared it to be a
bar to his right to recover.
[1,2] Alongside the track on which the
plaintiff was struck there are two sidings.
After crossing over the first, he stepped on
the second and looked up and dovni the
main track. It was dark, but lights were
burning, and the plaintiff testified he could
aee a distance of 160 feet in the direction
from which the engine was coming. He
stated distinctly that there was nothing to
obstruct his view down the track for that
distance. According to the testimony of vrtt-
nesses called by the defendant, the distance
of the unobstructed Tlew, from actual meas-
urements on the ground, was much greater.
With the unobstructed view of at least 160
feet before him, the plaintiff started toward
the third or main track, and the instant be
put his foot on the first rail the engine ran
over It He testified that from the time he
started from the siding or second track he
kept on looking and listening, but neither
beard nor saw the approaching engine. On
the testimony which he submitted as to its
speed and the failure to give notice of its ap-
proach, by bell or whistle, it may be conced-
ed that the question of the defendant's neg-
ligence was for the Jury ; but, as the plaintiff
was bound not only to listen, but to look, the
only rational oonduslon dedudble from all
the testimony in the case is that he failed to
look as be approached the track on which he
was struck. If be had looked, he most have
seen the engine coming towards him. Ne-
ther he nor either of his two witnesses who
saw the accident testified that there was not
a headlight burning on the locomotive. Nei-
ther of them said anything about a head-
light, and their testimony, given Its full ef-
fect, was merely that they had not seen the
engine. There was no presumption that the
defendant had failed to have a burning head-
light on it and the burden of showing negli-
gence in this respect was upon the plaintiff.
Hanna y. Philadelphia & Reading Ry. Co., 213
Pa. 157, 62 Atl. 643, 4 Ia R. A. (N. S.) 344.
The negative testimony of plaintiff and his
witnesses, to which we have referred, was
not sufficient to make out a charge of negli-
gence as to the headlight, and a finding by
the Jury that one was not burning on the en-
gine at the time of the accident was not only
without evidence on the part of the plaintiff
to sustain It, but was in the teeth of an-
impeeched evidence submitted by the defend-
ant that the engine was equipped with a
proper light Nalln, the engineer, testified
that there was a burning headlight on his en-
gine, in front of a reflector; Gray, his fire-
man, said the headlight was burning bright-
ly; and Thompson, the conductor, said he
saw it burning. Tte testimony of these three
witnesses was unequivocally corroborated by
Hamlsh, Blvans, and Williams, three of de-
femdant's brakemea These six witnesses
were In a position to see, and did see, and, in
view of their positive and aftirmatlve testi-
mony that the headlight was burning, with
no proof offered by the plaintiff to rebut the
presumption that the defendant was not neg-
ligent as to this, the trial Judge should have
directed the Jury to find that It was burning.
Knox V. Philadelphia & Reading By. Co., 202
Pa. 604, 62 Att. 90; Keiser v. Lehigh Valley
R. R. Co., 212 Pa. 409, 61 AtL 903,
108 Am. St Rep. 872; Anspach v. Philadel-
phia & Reading Ry. Co., 225 Pa. 628, 74 AtL
373, 28 L. R. A. (N. 8.) 382; Charles ▼. Le-
high VaUey R. R. Co.. 245 Pa. 496v 91 AU.
890; Leader v. Northern Central Ry. Co., 246
Pa. 452, 92 Aa 696.
Under Carroll r. Penna. R. R. Co., 12
Wkly. Notes. Cas. 348, and the long line of
cases following It down to Stoker v Philadel-
phia & Reading Ry. Co., 254 Pa. 494, 98 AtL
28, it was the clear duty of the court below
to enter Judgment for the defendant non ob-
stante veredicto.
The fourth assignment of error is sustain-
ed, and Judgment is here entered for the de-
fendant
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BAKER y. BUSHFOAD
769
<S1 Vt 4K)
BAKER T. BUSHFOBD et aL
(Supreme Court of Vermont.
Sept 4, 1917.)
Franklin.
1. INSUBANCB «=»580(1) — VltNDOB AND PCB-
CHA8EB— Bights of Pabtibs — Insukanck
Monet.
Where premigea were sold, title to be trans-
ferred on tbe making of certain payments and a
contemporaneous mortgage to the vendor to se-
cure tbe balance of the consideration, tbe rights
of the parties in respect to insurance money
accruing from destruction by fire of a building
on tbe premises were tbe same as they would
have been if the fire had occurred after convey-
ance, the buyer being in possession and having
performed aU his obligations under the contract
to date.
2. Vbndob and Pubchaseb «=954 — EsTAiEa
OF Vbndob and Vendex.
An executory contract for the sale of land
left the legal estate in the vendor, but, except for
his interest in the property as security, the ven-
dor held the title in trust for the vendee, re-
garded by equity as the owner.
8. Vendob and Pubchaseb €=>54— Riohtb or
Pabties ajtbb Tbansfbb of TrruB.
After title to land was sold under an ex-
ecutory contract, the vendee before he broke
any condition of the contract was holder of the
legal title and estate, and the vendor had his
security in the form ix a mortgage given him.
4. Vendob and Pubohabeb ^=3 182— Payment
of Pbice — Time— Option of Vendee.
Where installments of the purchase price of
land were all payable on or before the dates spec-
ified, the entire indebtedness was payable at
once at the vendee's option.
5. Insubance ^s>680(1)—Pbocsej>s— Vendob
AND Pubcbaseb- Retention of Secubitt—
Chanok in Fosm.
Where a farm and personal property were
sold, the vendee giving the vendor a chattel
mortgage on all the personalty to secure pay-
ment of tbe first $1,50U of the price, the contract
providing that when such payment was com-
pleted and all conditions perfoi-med the vendor
should give the vendee a warranty deed of the
land, and receive a mortgage for the balance,
payable on or before specified dates, the vendee
to keep the buildings and coutenta insured for
lfl,400 for benefit of the vendor, the insurance
money arising from loss by fire stood in the
place of the property destroyed, to be held for
application by the vendor which would complete
payment of the debt, and the vendee could not
require application thereof to the discharge of
the chattel mortgage.
Appeal In Chancery, Franklin County ; Im
P. Slack, Chancellor.
Suit by David Baker against Calvin Bush-
ford and Ella Kushford. From a decree for
plaintiff, defendants appeal. Decree revers-
ed, and cause remanded, with direction tliat
tbe complaint be dismissed.
Argued before MUNSON, C. J., and WAT-
SON, HAZKM^ON, POWERS, and TAX-
liOB, JJ.
P. H. Coleman, of Montgomery, and A. B.
Rowley, of Richford, for appellants. Gay-
lord F. Ladd, of Bidiford, for appellee.
MUNSON, O. J. The defendants are the
vendors, and the plaintiff the assignee of
the vendee, of a farm and personal property,
the sale of which was evidenced by a writ-
ten contract, dated July 10, 1311. The price
was $3,000 ; $200 of which was to be paid on
or before July 10, 1912, and $200 on or before
the 10th of July in ea<d]i year thereafter until
all was paid. At the date of the contract,
the vendee, Mary Martin, gave tbe defendant
Calvin a chattel mortgage of all tbe personal
property described In the contract, to secure
the payment of the first $1,600 of the pur-
chase price. When this payment was com-
pleted, and aU conditions performed, the ven-
dors were to give the vendee a warranty
deed of the land and premises, and receive a
mortgage deed of the same to secure the bal-
ance of the annual payments, and tbe other
conditions of tbe contract. By tbe terms of
the contract the vendee was to pay aU taxes
afterwards assessed on tbe property, and
keep the buildings and contents insured for
$1,400 in a specified company for tbe benefit
of tbe vendors. Tbe vendee and her husband
took possession of the property soon after
the execution of tbe contract, and remained
in possession until October 14, 1912, on
which day they assigned their Interest In tbe
contract to tbe plaUitiff, who thereupon took
possession. The dwelling bouse on tbe prem-
ises was destroyed by fire February 21, 1915,
without the faidt of either party. It was in-
sured in tbe required company for $1,000^
by a policy procured by tbe plaintiff and
made payable to tbe plaintiff and the de-
fendant Calvin ; and on tbe 20tb of March
tbe loss was adjusted at $990, and covered
by a check made payable to both tbe insured.
The plaintiff indorsed tbe check and deliver-
ed it to Calvin, who deposited it in a bank
in bis name as trustee, where it has since re-
mained. There was nothing due under tbe
contract at tbe time of tbe fire, and $95 bad
been paid on tbe installment next to become
due; and all tax assessments had been paid.
It would cost betwe^ $1,500 and $1,800 to
replace the buUdlng. Each party has refused
to take the money and rebuild. Tbe value
of the land without the building is $800. On
tbe 25th of March, 1915, tbe plaintiff gave
the defendants written directions to make
an immediate application of tbe insurance
money on tbe iiayments to become due under
tbe contract. Tbe biU prays to have tbe
money so applied, and the defendants ordered
to make conveyance of the premises and dis-
charge the chattel mortgage. The defend-
ants have filed a cross-bill, praying that the
plaintiff be foreclosed of bis equity in the
premises. The decree below is for the plain-
tiff. It was held in Thorp v. Croto, 79 Vt
390, 65 AU. 562, 10 L. R. A. (N. S.) 1166, 118
Am. St Rep. 061, 9 Ann. Cas. 58, on the facts
there presented, that the mortgagee should
bold tbe insurance money and apply it to ex-
tinguish tbe mortgage debt, including inter-
est, as fast as tbe same became due. The
plaintiff claims that this decision is conclu-
sive In his favor. The defendant does not
^saFor other cases see same topic and KSY-NTJMBBR In all Key-Numbered Dlgeata and Indexes
101 A.— 18
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101 ATLANTIC RBPORCTB
(Vt
question the correctness of the decision, but
contends that the two cases are dearly dis-
tinguishable.
[1-3] The relations of these parties at the
time of the fire were those of vendor and
vendee, under a contract of sale which pro-
vided for a subsequent transfer of the title
ou the making of certain payments, and a
contemporaneous mortgage of the premises to
the vendor to secure the balance of the consid-
eration. But the rights of the parties are the
same as they would have heen if the fire had
occurred after the conveyance; other condi-
tions remaining the same. This was in law
an executory contract, which left the legal
estate in the vendor; but, except for his in-
terest In the property as security, the vendor
held the title in trust for the vendee, whom
equity regards as the owner. But after the
transfers, and before condition broken, the
vendee would be the holder of the legal title
and estate, and the vendor would have his se-
curity in the form of a mortgage. So the
case is not distinguished from Thorp v.
Croto by the fact that the latter was a suit
between mortgagor and mortgagee.
But there are obvious differences between
the case at bar and Thorp v. Croto. The
facts presented in the Thorp Case disclose
nothing as to the adequacy or inadequacy of
the security, and no question as to the suffi-
ciency of the security seems to have been
raised. Nothing Is said in either the major-
ity or the minority opinion regarding the
question of adequacy as a matter bearing
upon the decision rendered. Here, the de-
fendants refer to the facts reported as show-
ing an inadequacy of security, and claim that
this inadequacy distinguishes the case from
the Thorp Case.
[4] The defendants say further of the
Thorp Case that "both the mortgagor and
mortgagee were willing that the money should
be applied as payment, and the court treated
it as the parties did." But the dissent was
put upon the ground that the mortgagee was
entitled to hold the insurance money In place
of the property destroyed ; so this aspect of
the subject must have entered into the
court's consideration of the case. The cases
are alike in that no part of the debt was due
when the insurance money was received, but
they differ as to the terms of payment. In
the Thorp Case there was no provision en-
abling the mortgagor to regulre an accept-
ance of payment in advance of its becoming
due. Here the installments of the purchase
money were all payable on or before the
dates specified, so that the entire indebted-
ness was payable at once at the option of
the vendee; and the vendors were directed
"to Immediately apply said sum • • •
upon the payments to become due under said
contract."
There Is another difference to be consid-
ered in connection with the vendee's option.
In the Tborp Ctise there was no intermediate
condition on the fulfillment of which the debt-
or was entitled to a change in the form and
substance of the security. Under this con-
tract, the payment of $1,500 of the purchase
price would entitle the vendee to a discharge
of the mortgage on the chattels, and to a
conveyance of the title to the realty upon his
giving a mortgage of the same to secure the
balance of the debt So tltis provision for an
exercise of the vendee's option divides the
principal into two parts, as to which the
rights of the vendor touching the security'
are not identical.
[5] In the absence of an agreement for a
release of some part of the security on the
payment of a portion of the debt secured, the
creditor is entitled to retain the entire secu-
rity until the debt is fully paid. If the in-
surance money stands in place of the proper-
ty destroyed it goes with the land, and re-
tains in equity the quality of indivisibility;
and the creditor is entitled to retain the en-
tire security notwithstanding the change in
form of a part of it. This would require
that the Insurance money be held for an ap-
plication which would complete the payment
of the debt. The question then arises wheth-
er the vendee's right to a transfer of the ti-
tle and discharge of the chattel mortgage on
the payment of a sum less than the entire
debt, in connection with his privilege of pay-
ing a part or all of the notes at any time be-
fore their maturity, entitles him to use the
Insurance money to complete such partial
payment We think not A part of the notes
could not be paid by a tender of funds which
the creditor was entitled to hold as security
for the payment of all the notes. This view
accords with the terms and nature of the
provision regarding insurance. The vendee
Is to keep the buildings insured for the bene-
fit of the vendor. The Insurance is for the
benefit of both parties, but Is primarily for
the benefit of the vendor as security holder
of the property insured, and inures to the
benefit of the vendee through the reduction
of his debt. The vendee cannot require an
application of it which would give him the
primary benefit and leave the vendor inade-
quately secured. The application must be
such as will preserve the equities of the ven-
dor or mortgagee in the given case. Our
disposition of the question presented here is
not inconsistent with the decision in Thorp
V. Csoto as limited by the facts of that caae ;
and It accords with the court's view, else-
where expressed, that the proceeds of a policy
of insurance on mortgaged property are to l>e
substituted for the property destroyed. Pow-
ers V. N. B. Fire Ins. Co., 69 Vt 494, 38 AtL
148.
Decree reversed and cause remanded, with
direction that the complaint be dismissed.
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OASTEB y. SUBURBAN WATER <X).
771
an ua. u)
CARTEB T. SUBURBAN WATBE CO.
(No. 66.)
(Court of Appeals of Maryland. June 28, 1917.)
1. Waters and Water Covbses <S=9203(13) —
Shutting off Watsr Supply — Injunc-
tion.
An injunction is the proper remedy to pre-
Tent tlie shutting oS of water by a water com-
pany where the consumer denies in good faith
the amount of the charge.
2. Waters and Water Courses ©=»203(13)—
Water Company— Right to Shut off Wa-
ter.
Although a wa'ier company may adopt a
nde that water may be abut off for nonpayment
therefor, it cannot arbitrarily shut oS the
consumer's supply where the amount claimed
is a matter of just dispute.
3. Waters and Water Coubsjes <S=>208(e)—
Water Companies— Pubuo Service Com-
missions—Jurisdiction.
The Public Service Commission, under Acts
1910, c. 180, is not invested with power to
determine controversies between defendant wa-
ter company and plaintiff consumer a* to cor-
rectness of the bills rendered.
4. Waters and Water Courses «=»203(13)—
Refusal to Supply Water— Jurisdiction.
Although it be conceded that the Public
Service Commission has jurisdiction in esses in-
volving the correctness of charges for water, it
could not deprive a court of equity of its orig-
inal jurisdiction to grant an injunction for re-
fusal to supply water.
Appeal from Circuit Ctourt of Baltimore
City ; H. Arthur Stump, Judge.
BUI by John F. Carter against the Sub-
nrban Water Company. EYom an order dis-
missing plaintiff's bill and dissolving the in-
Jiuictlon Issued, he appeals. Reversed, with
costs, and cause remanded.
Argued before BOYD, C. J., and BRISCOE,
burke; pa'jctison, uhner, stocic-
BRIDGB, and CONSTABLE, JJ.
Robert Biggs, of Baltimore, for appellant
Daniel R. Randall, of Baltimore (R. E. Lee
Marshall, of Baltimore, on the brief), for ap-
pellee.
BURKE, J. John F. Carter, the appellant,
is the owner of 71 dwelling houses, which are
located In West Arlington, Baltimore county,
Md., on certain avenues and roads mentioned
in the bill filed in this case. The appellee
is a public service conx>ratlon, having its
principal ottlce in Baltimore city, and is en-
gaged in the bu&lness of furnishing water to
the appellant and many other property own-
ers in and at>out West Arlington. The 71
bouses of the appellant are connected with
tbe water iqalns of the. appellee, a^d secure
theix supply of water for drinking and house-
bold purposes from them, and have no other
source of supply from which water for drink-
ing and bou^ebold purposes may be secured.
During tbe quarter ending October, 30, 1916,
tbe defendant repeatedly failed to supply
said houses with a suitable quantity of water,
and the appellant was subjected to damage
and loss as the result of the irregular sup-
ply of water furnished by tbe appellee to
said bouses. On the 1st day of October, 1910,
tbe appellee furnished the appellant a bUl,
amounting to |29L42, for water furnished
said housies. The appellant disputed tbe bllL
and claimed the legal right to deduct there-
from the los6e8 sustained by him as the re-
sult of the failure of the appellee to furnish
an adequate supply of water for drinking
and household purposes —
"but expressed his willingness to adjust the
said accounts with the defendant and to pay it
such sum of money as would reasonably and
fairly represent the proper charges for the serv-
ices rendered by the defendant; that the said
defendant, however, positively refused even to
consider the claim of your orator, and also
notified your orator that unless the said bills
as rendered are paid on or before 10 o'clock on
Tuesday the 10th day of October, 1916, it
would cut off the supply from all the said
houses, and leave them and the tenants therein
without any supply of water for any puri>ose
whatever."
Tbe appellee is insolvent.
The bill In this case was Sled on October
9, 1916, and set out substantially the facts
above stated, and prayed for an Injunction
against the appellee, Its officers, agents; and
servants, restraining them from cutting off
the supply of water from the houses or any
of them, and for other and further relief.
An injunction was Issued on October 0, 1916,
as prayed; tho appellant flrst having tiled an
approved bond in tbe penalty of $2,000 as
required by tbe order of court. On December
2, 1916, tbe defendant demurred to tbe blU
upon the ground that tbe plaintiff "has a
plain, adequate, and complete remedy at law."
On tbe 6tb day of February, 1917, tbe court
passed an order dismissing the bill and dis-
solving tbe injunction, and from that order
this appeal was taken. The appellant filed
an approved appeal bond which operated to
suspend the effect of tbe order.
[1] Tbe single question presented by the
appeal is this: Upon the facts stated in tbe
bill, was tbe plaintiff' entitled to the injunc-
tion prayed for? It is to be observed that
this Is' not a simple, and perhaps a common
case, where a water company shuts off or
threatens to shut off tbe supply of water
from a consumer for nonpayment of tbe
amount due for water supplied^
[2] It is now well settled that a water
company may adopt, as a 'reasonable regula-
tion for the conduct of its business, a rule
providing that the water supplied to a cus-
tooaer may be shut off for nonpayment there-
for. City of Mansfield v. Humphreys Mfg. Co.,
82 Ohio St. 216, 92 N. R, 238, 31 L. R. A. (N.
S.) 301, 19 Ann. Gas. 842 ; Shlras v. EWing, 48
Kan. 170, 29 Pac. 820; McDaniel v. Spring-
field Waterworks Co., 48 Mo. App. 273;
Turner v. Revere Water Co., 171 Mass. 329,
50 N. B. 634, 40 L,. R. A. 657, 68 Am. St. Rep.
432. But it is a case of dispute aa t» the
^sFor otber cases see ram* topio out KBT-NTTUBER In all Ker>MamiMred DlgMt* and iBdszM
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772
101 AOXiANTIO REPOUTEB
(Md.
amount dne, wbere tbe appellant bad ex-
pressed hlmseU ready and willing to adjust
and pay the amount for which he Is liable,
and where the company declines to accept
anything less than the amounts of the blUs
rendered, and threatens to shut off the water
<Hi a certain day unless the bills are paid.
The courts appear to be quite uniform In
holding that a water company cannot ar-
bitrarily shut off the consumer's supply when
the amount claimed is a matter of Just dis-
pute. Cox T. aty of Cynthlana, 123 Ky. 36.3,
96 S. W. 456; Wood v. City of Auburn, 87
Me. 28T, 32 Atl. 906, 29 L. R. A. 376; Turner
V. Revere Water Co., 171 Mass. 329, 50 N. £.
634, 40 Li. R. A. 667, 68 Am. St Rep. 432.
In Poole V. Paris Mountain Water Co., 81
S. 0. 438, 62 S. S. 874, 128 Am. St Rep. 923.
the court said:
"While a public service water company has
the right to cut off a consumer's water supply
for nonpayment of recent and just bills for wa-
ter rents, and may refuse to engage to furnish
further supply imtil said bills are paid, the
right cannot be exercised so as to coerce the
consumer into paying a bill which is unjust or
which the consumer in good faith and with
show of reason disputes, by denying him such
a prime necessity of liiEe as water, when he
offers to comply with the reasonable rules of
the company aa to such supply for the current
term."
The same principle Is announced In Wash-
ington r. Washington Water Co., 70 N. J.
Bq. 264, 62 Atl. 390. That an injunction is
the proper remedy to prevent the shutting off
of the water in cases where the consumer
denies in good faith either his liability or
the amount of the charge appears to be well
established by the authorities. Edwards v.
MllledgevlUe Water Co., 116 Ga. 201, 42 S.
El 417; McEntee v. Kingston Water Ca, 16.5
N, Y. 27, 68 N. B. 785; American Conduit
Co. V. Kensington Water Co., 234 Pa. 208,
83 Atl. 70.
The occupants of these houses mu&t have
water dally and hourly. It Is a prime ne-
cessity of comfort and health, and to suddenly
shut off the water in order to coerce the own-
er to pay an unjust or a disputed bill would
be not only a violation of his legal rights,
but would subject bliu to serious Injury, and
sndi Injury as the owner would likely sus-
tain before he could be compensated In au
action at law even against a solvent corpora-
tion is sufficient to furnish the equity for an
application for an injunction. In Sickles v.
Manhattan Oas light Ca, 64 How. Prac.
(N. Y.) 33, It appears that Gen. Sickles ap-
plied for an Injunction to restrain the de-
fendant from cutting off the supply of gas
from his residence. He alleged that an Im-
proper bill had been presented to him, and
that he had offered to pay for the gas con-
sumed, but that the company refused to ac-
cept and threatened to remove the meter and
shut off the gas. Upon these facts the court
held that he was entitled to a preliminary
injunction.
[3, 4] It is contended that the PabUc Serv-
ice Commission, under Acts 1910, c. 180, has
exclusive Jurisdiction over the subject-mat-
ter of this suit, and has the power to grant
the plaintiff full and complete relief. We do
not find that the Public Service Commission
is invested with the power to hear and de-
termine the controversy between the parties
as to the correctness of the bills rendered, or
to determine what amount the plaintiff owes.
But if that power be conceded, the court of
equity would not for that reason be deprived
of its original Jurisdiction to grant the in-
JunctloD. It has been long since settled that,
where a court of equity has original Juris-
diction, and a statute confers upon the com-
mon-law courts a similar power, the Jurisdic-
tion of equity is not thereby ousted. Barnes
V. Compton, 8 Gill, 398; Shryock v. Morris,
76 Md. 72, 23 Atl. 68.
Order reversed, with costs, and cause re-
manded.
HUBBARD V. HUBBARD.
aa UA. ao
(No. 48.)
(Court of Appeals of Maryland. June 28,
19170
1. HnsBANn AND Wife «=»297— Action fob
Alimony— Evidence— SurnciENCT.
In a suit for alimony, held, under the ev-
idence, that after the dismissal of a prior bill
for divorce there was at least a partial recon-
ciliation followed by the husband's leaving and
not returning.
2. Husband and Wifb «s3288 — Smr fob
Alimont — Defense.
That the wife had her husband arrested, and
when they were before the magistrate had ask-
ed, in anticipation of the husband's returning
to their home, to l>e afforded police protection,
would not justify a total failure to make any
provision for the support of the wife barring
her suit for alimony.
3. Husband and Wife «=>298(3)— EIxcbsbivb
Allowance or Alimont.
Where a husband had a weeldy drawing
account as salary of $20 a week, an allowance
to the wife of $3 a week permanent alimony
cannot be said to be unreasonable.
Appeal from Circuit Court of Baltimor*
City; Walter I. Dawklns, Judge.
Bill by Florence Hubbard against WilUam
J. Hubbard, Sr. Decree for plaintiff, and de-
fendant appeals. Affirmed, with costs.
Argued before BOYD, C. J., and BRIS-
COE, BURKE, THOMAS, PATTISON, UB-
NBR, STOCKBRIDGE, and CONSTABLE,
JJ.
Harry 0. Kalben and David Ash, both of
Baltimore, for appellant James Fluegel. of
Baltimore, for appellee.
STOCKBRIDGE, J. On the 27th of May,
1915, a decree was passed In a case between
the same parties as those who are parties to
this record, upon a bill filed originally as a
bill for alimony, and subsequently by amend-
sVar otter cum m* nn* topio and KBT-IfDItBEB In all K«j-Numb«rt4 DtgnU and ladUM
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HOBBARD ▼. HUBBABXI
773
ment converted Into a bill for divorce a men-
sa et tboro. Three days after the entry of
the decree In that case an appeal was taken
to this court, and, the case having been heard
here, the decree of the circuit court No. it
of Baltimore dty was affirmed on January
21, 1916.
Shortly following the decree of the circuit
court No. 2 of Baltimore city, to wblch ref-
erence has Just been made, namely, on July
1, 1915, Mrs. Hubbard swore out a warrant
for the arrest of her husband, charging de-
sertion and nonsupport. Mr. Hubbard was
absent from the dty at the time, and did
not return to Baltimore until about the mid-
dle of that month. Immediately upon hla
return he surrendered himself, and the case
was set for a bearing on the 19th or 20th of
July. When the matter was taken up be-
fore the magistrate there appears to have
been some discussion relative to a possible
reconciliation between the parties, and with-
out final action there, either upon the theory
of a lack of Jurisdiction on the part of the
magistrate or for some other reason, the
case was sent to the grand Jury, which sub-
sequently found an Indictment. The crimi-
nal proceeding does not appear to have been
pushed to a conclusion, but was settled by
the state's attorney without prejudice to the
assertion of the rights of the parties In an
equity court
On September 28, 1916, the bUl of com-/
plaint In this case was filed. It contains
three prayers: The first, for alimony pen-
dente lite and permanent alimony; the sec-
ond, for an injunction to restrain Mr. Hub-
terd from disposing of certain household ef-
fects and furniture; and, third, the general
prayer for relief.
The evidence consists largely of the testi-
mony of the parties to this suit, and Is con-
tradictory on material points. It would be
idle to attempt to reconcile their stories, or
account for the discrepandes by any suppos-
ed lapse of memory. The alleged foundation
for Mrs. Hubbard's suit Is this: That some
-time during the month of July, 1915, or ap-
proximately two months after the dismissal
of her former bill for a divorce, and after
the hearing before the magistrate of the pro-
ceeding Instituted because of the nonsupport,
Mr. Hubbard did return to the house on
Madison avenue, which belonged to the par-
ties, and although not occupying the same
room with bis wife, did during some week
or ten days take his meals or some of them
with his wife and others who were staying
at the bouse, thereby effecting at least a par-
tial reconciliation of the parties.
Mr. Hubbard, on the other hand, denies
most emphatically that he ever took a meal
at the bouse or stayed In the house over
nlgbt, and Insists that the various witnesses
who testified to his presence there were mis-
taken In their estimates of time by at least
one year. He does admit that he paid a
brief visit to the bouse for the purpose of
getting some of his clothing, but Insists that
that was all, and that the total length of
time that he was so In the house was very
brief.
In the course of the examination It was
admitted (record, page 28) by the counsel for
Mr. Hubbard that there was nothing to pre-
vent him from going home. Of the conflict-
ing statements made by Mr. and Mrs. Hub-
bard, there Is no corroboration of Mr Hub-
bard's version. On the other hand, Mrs.
Hubbard Is supported by the testimony of
the son ^f the parties, though apparentlv
some anlmuH existed between the father and
son.
There is further corroboration from three
apparently disinterested witnesses, a Mrs.
Overley, who spent a considerable length of
time in the house in 1915, and who details
with particularity the events and actions of
Mr. Hubbard in the house during that week
or ten days, at the expiration of which he
left and did not thereafter return.
Mr. and Mrs. Haas were neighbors, living
on Madison avenue. Their testimony Is to
the effect that, while neither of them saw
Mr. Hubbard In the house, yet Mrs. Haas
saw him entering the house, and Mr. Haas
saw him In the Immediate neighborhood and
bad a short conversation with him.
[1] The preponderance of testimony there-
fore is to the effect that after the dismissal
of the prior bill there was at least a partial
recondllation of the parties, followed by Mr.
Hubbard's leaving the home, and that he
has not since returned to It
Upon one point the evidence of the parties
to the case is In entire accord, namely, that
since the decree of May 27, 1915, Mr. Hub-
bard has contributed nothing whatever to
the support or maintenance of his wife.
The right of a wife to look to her husband
for support and to maintain a bill In equity
therefor, where the parties are not living
together, and that through no fault of the
wife. Is too firmly established tn the law of
this state to call at this time for any dis-
cussion or extended dtation of authorities.
Wallingsford v. Walllngsford, 6 Har. & J.
485; McCuriey v. McCurley, 60 Md. 185, 45
Am. Rep. 717.
[2] The only pretext upon which Mr. Hub-
bard relied tn his testimony to Justify his
failure to rettum to his wife, or to fall to
provide her with a proper allowance for her
support was that she had had him arrested,
and that when the parties were before the
magistrate she had asked In anticipation of
his returning to their home to be afforded
police protection, but such reasons, however
galling they may have been to the husband's
pride, cannot be relied upon as Justifying a
total failure to make any provision what-
ever for the support of the wife.
[3] A large amount of the testimony taken
at the trial of this case was dlreded to the
capadty of the husband to support his wife,
and the details of bis business and the
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101 ATLANTIC REPORTHSE
^d.
amoitnt received by him from it were gone
into at great length. The facts upon the un-
contracted evidence of this branch of the
case show that he was conducting a relatfve-
ly small business in the shipping and selling
of oysters, and that the profits at the close
of the year were trifling In amount In
reaching this result there were deducted a!!
a part of the expenses of the business week-
ly payments to the defendant as salary of
$20, to his bookkeeper of $18, a foreman, $15,
and a driver, $11. Without stopping to con-
sider or discuss whether this weekly salary
list was or was not out of proportion to the
amount of business done, the important fact
is that Mr. Hubbard had a weekly drawing
accotmt as salary of $20.
The decree from which this appeal was
taken awards Mrs. Hubbard the sum of $3
per week as permanent alimony, less than
one-fourth of the earning capacity of the
husband, as shown by the salary whldi he
was drawing. Such an allowance of alimony
cannot be said to be unreasonable iRlcketts
V. Rlcketts, 4 Gill, 105; Harding v. Hard-
ing, 22 Md. 337); and since an allowance for
alimony Is subject to be Increased or di-
minished by the court making It, according
to the altered condition of the parties as they
may from time to time exist, no reason is
apparent for disturbing the decree of the cir-
cuit court for Baltimore dty, and that de-
cree will accordingly be affirmed.
Decree affirmed, with costs.
(131 Md. no)
BRADFX>RD et al. v. MACKENZIE! et al.
(No. 70.)
(Court of Appeals of Maryland. Jnoe 28, 1917.)
1. Wills (^35!)7(1)— Constbtjction— Pee.
Under a will devising the residue of testa-
tor's property equally among his wife and his
seven surviving children, "their heirs, execu-
tors and assigns." share and share alike, the
use of such words was not controlling as to
whether the devisees took a fee simple.
2. Wills ©=>622— Remaindeks — Peecedent
Estate— Pkk.
A remainder cannot be limited upon a fee
simple.
3. Wills ®=5<>25— Executobt Devise— Pee-
CEDENT Estate.
An executory devise can be limited after a
fee simple.
4. Wills «=»54S— Constbuction- Executobt
Devise.
Under a will devising a residue to testator's
wife and his seven surviving children, their
heirs, executors, and essigns, and on the death
of any child intpstate and without living issue
devising his share over to the surviving devisees,
the share of a son bo dying vested iu the testa-
tor's surviving children, to the exclusion of the
children of a daughter dying intestate before the
son.
Appeal from Circuit (3ourt, Baltimore
County; Frank I. Duncan, Judge.
Bill by Thomas Mackenzie, committee, and
others against Samuel W. Bradford and oth-
ers. Decree for plalntlfCs, and defendants
appeal. Decree reversed, and cause re-
manded.
Argued before BOYD, C. J., and BRISCOE,
BURKE, THOMAS, PATTISON, URNER,
STOCKBRIDGE, and CONSTABIJJ, JJ.
Harry S. Carver, of Bel Air, for appel-
lants. Ralph Robinson, of Baltimore, and
Edward H. Burke, of Towson, for appellee
children of Mrs. McElderry. Gerald F. K(h;>p,
of Baltimore, for Emeline K. Bradford.
Thomas Mackenzie, of Baltimore, for com-
mittee and trustee.
BOYD, C. J. The main question involv-
ed In this case Is the proper construction of
the residuary clause of the will of the late
Augustus W. Bradford, a former Governor
of this state. That clause is as follows:
"A. I give and bequeath all the rest and resi-
due of my property, real, personal and mixed,
after the payment of any debts I may be owing
at the time of mv death, to be equally divided
among m^ wife aforesaid and my said seven sur-
viving children, to wit: Emetine K. Bradford,
Jane B. Bradford, Augustus W. Bradford, J«m-
ior, Charles H. Bradford, Elizabeth Bradford,
Thomas Kell Bradford and Samuel Webster
Bradford, their heirs, executors and assigns
share and share alike.
"B. I do hereby further direct and declare
that BO far as concerns the female devisees
above mentioned the portions so devised to them
respectively shall be for the sole and separate
use of each of them and absolutely free and
discharged from any interest or estate therein
lof any husband whom either of them may here-
after marry and in no way subject to his di-
rcction or control or liable for hu debts or en-
gagements.
"C. I do further will and declare that should
either of my said seven children incladed in the
aforesaid devises die intestate, whether in my
lifetime or afterwards, and leaving no issue
living at the time of their death, or should my
wife die intestate, then the share or portion of
the one so dying shall survive to and vest in the
surviving devisees aforesaid share and share
alike."
For conrenienoe of reference we hav<!
marked those paragraphs In the residuary
clause A, B, and C, although those letters
do not appear in the wUl. By prior provl-
sions In his will the testator had left to his
wife his house and lot on Eutaw place In the
city of Baltimore, together with all the
household furniture, linen, pictures, and
plate therein contained (excepting a set or
plate described) for life, and after her death
to pass into the residue of his estate and be
with that residue equally divided as direct-
ed. He then naade bequests to three of bis
sons of personal property and $50 to each of
his three daughters and the same amount to
his son Charles H.
Gov. Bradford died March 1, 1881, learlng
a widow and the seven children named in the
residuary clause. Mrs. Bradford (the wid-
ow) died December 27, 18d4, leaving a last
will and testament Jane B. Bradford died
unmarried and without Issue on February 27.
1905, but left a will. Thomas Kell Brad-
ford died July 14, 1906, Intestate, unmar-
^s>For other canes •«« same topic anfi KEY-NUMBER Id all Ker-Numt>ered Dlgesta and Indezu
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BRADFORD t. MACKRKSIB
775
rled, and wltboat Issue; Elizabeth Brad-
ford married Thomas McElderry, who pre-
deceased his wife, and she died June 9, 1915,
intestate, and leaving four clilldren, all of
whom are of age except Sarah, and are par-
ties to this bill. Charles H. Bradford died
January 6, 1916, Intestate, unmarried, and
without issue. Augustus W. Bradford, Jr.,
and Emeline K. Bradford are still living, and
both are unmarried, and Samuel W. Brad-
ford is still living, but is married and has
living issue. The three living children of
the testator claim the estate left by Charles
H. Bradford, while the children of Mrs. Mc-
Elderry claim they are entitled to a fourth
Interest in It
If paragraph A stood alone, it could not
be doubted that the wife and seven children
took the real estate in the residuary clause
in fee simple and the entire personalty.
Paragraph B tends to confirm that construc-
tion. The controversy arises by reason of
paragraph G. As Charles H. Bradford died
Intestate and left no issue, it becomes neces-
sary to ascertain the effect, if any, of para-
graph 0 on paragraph A.
Paragraph C was only Intended to take ef-
fect In case of a child of the testator dying
Intestate and leaving no issue. In determin-
ing the effect of that paragraph, it must be
borne in mind that it is clear that the testa-
tor intended to connect it and paragraph B
vrlth paragraph A. Indeed, paragraph B is
relied on by Uie appellees in support of their
contention. It begins, "I do hereby further
direct and declare," etc., and then paragraph
C, which immediately follows, begins, "I do
further will and declare," etc It was evi-
dently Intended to be something more than
a mere expression of a wish, desire, or direc-
tion, such as is spoken of as precatory lan-
guage. All of those paragraphs were in-
tended to be taken together in reference to
the residuary devises and bequests, and, as
we have seen, were not separated by the let-
ters A, B, and C.
[1] It may be well to recall that the use of
the words "their heirs, executors and as-
signs" in paragraph A Is not controlling.
In Devecmon v. Shaw, 70 Md. 219, 225, 16
Atl. 645, 647, Judge Alvey referred to what
is section 327 of article 93 of Annotated Code
to show that the daughter took a fee simple
In the real estate without the use of the
words "to her and her heirs or to her In fee
simple,'' and he said she also took the en-
tire Interest in the personalty, but, as we
will see later, held that the fee simple was
defeasible and the interest in the personalty
was subject to the contingencies sped&ed.
So In Anderson y. Brown, 84 Md. 261, 35 Atl.
937, also referred to later, the devise was,
"To them and their heirs and assigns for-
ever."
[2, 3] What effect, then, did paragraph C
have on the devise and bequest given Charles
H. Bradford by paragraph A? It is clear
that there was no remainder, as a remain-
der cannot be limited after a fee simple (HIU
V. Hill. 5 Gill. & J. 87; 40 Cyc. 641; 24 Am.
& Eng. Ency. of Law, 380), but that Is not
80 with an executory devise, and hence we
must determine whether paragraph C was
a valid executory devise, or made the estato
given by paragraph A defeasible upon the
happening of the contingencies specified.
[4] In 11 R. C. L., under the article "Ex-
ecutory Interests," the subject is discussed
under different heads. Section 16 of that
article on page 476 Is on "Liroitation Repug-
nant to Gift veith Absolute Power of Dla-
posaL" It is there said:
"Indestructibility is an essential element of
executory limitation, and an nnlimited power of
disposition in the firet taker is clearly incongru-
ous with this idea, bein^ ipso facto a destruc-
tion of the execntory limitation, whether tho
power is exercised or not In this construc-
tion no distinction is made between goods and
land, but if the primary fift vests in the first
taker an absolute interest in personal, or an ab-
solute fee simple in real, property, it exhausts
the entire estate, so that there can be no valid
remainder. Thus where, an absolute gift to a
person is followed in the same instrument by a
gift over in case of that person dying intestate,
or without having disposed of the property, the
gift over is said to be repugnant and is void.
When there is an absolute or unlimited devise
or bequest of property, a subsequent clause ex-
pressing a wish, desire or direction for its dis-
position after the death of the devisee or legatee
will not defeat the devise or bequest nor limit
the estate or interest in the property to the
right to possess and use during the life of the
devisee or legatee. The absolute devise or be-
quest stands, and the other clause is to be re-
garded as presenting precatory language. The
will must be interpreted to invest in the devisee
or legatee the fee-simple title of the land, and
the absolute property in the subject of the be-
quest. In the case of executory devises, the
question whether the primary gift is in fee, so
as to exhaust the entire estate, is in each caso
to be decided on a careful examination of the
entire will, aided by legitimate extrinsic evi-
dence, to ascertain the actual intent of the testa-
tor, which intent, when so discovered and made
obvious, is controlling."
Section 17 of that article Is on "Limitation
Over After Life Estate with Power of Dis-
posal." Section 18 is In reference to "Lim-
itations tending to Create Perpetuities Gen-
erally," and section 19 as to "Limitations
over on Failure of Issue." In the case of
Benesch v. Clark, 49 Md. 497, relied on by
the lower court, it was held that Mrs. Bram-
ble only took a life estate in the Monument
street tots, vitb the power of disposition, and
that the power was effectually executed by a
deed of assignment That case turned on
the question -whether there was a valid ex-
ecution of the power. While It Is true that
the language of the power there was that tho
lots were to be disposed of as the life tenant
might see fit at his decease, and the court
held that the execution of the power was not
limited to a last will and testament, but the
assignment of the leasehold property was
valid, the court did not hold that the power
to dispose of the property by will necessarily
Includes the power to dispose of It by deed.
As shown by the dl&xmsslon of the cases cited
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776
101 ATLANTIC REPORTBB
(Md.
by Judge Alvey, tt depends largely upon the
language of the donor of the power. We do
not understand the rule to be as announced
In the ophiloD of the lower court that "a gen-
uine poiver to dispose of an estate by will
includes also a power to dispose of it by
deed," although such a power may be so
worded as to Include a power or disposition
by deed. But this is not a case of whether a
power has been validly exercised, but wheth-
er the limitation sought to be imposed is
valid. There is not even an express power
given to dispose of the property by will, al-
though, as one of the Limitations is d,ring in-
testate, it must be Inferred that the testa-
tor intended that the devisees could dispose
of their Interests by wUl, but it would ba
difficult to construe this language into a pow-
er to dispose of the property by deed. Of
course If he left the real properly in fee aud
the personalty absolutely, without any valid
limitations, the devisees could convey the
property by deed, or as they saw proper, but
that is not the question we are now consider-
ing.
Section 10 of R. C. L., already referred to,
begins by announcing a rule, which seems to
be a very geuernl one, that:
"It is well settled that while an executory
limitation to take effect on a de6nite failure of
issue in the first taker is valid, yet a limitation
to take effect on a general or indefinite failure
of issue is void."
Most of the rest of the section is taken up
with the discussion of what Is a definite or
indefluite failure of issue, but there can be
DO such question in this case. The will it-
self says, "leaving no Issue living at the tl)nos
of their death," and the act of 18C2, chapter
lAl, now section 332 of article 03 ol the Ck>de,
provides that expressions such as "die with-
out is6iue," etc., "sliuU be construed to mean
a want or failure of issue in the lifetime, or
at the death of such person, and not an in-
definite failure of bis issue, uuleiis a contrary
intention shall appear by the wllL" A sim-
ilar provlsloi In reference to deeds is now in
section 90 of article 21. Combs v. Combs,
67 Md. 11, 8 AU. 737, 1 Am. St Rep. 359, is
one of the casus cited in the note to section
19 of 11 R. C. li., above referred to, to show
that In some states statutes have been passed.
That case is relied on by the appellees to
show that paragraph C was invalid to alTect
paragraph A, but there the property was de-
vised to the devisees with full authority —
"to sell and convey the same in his lifetime, or
to dispose of the same by last will and testa-
ment; but should he die without issue of the
body lawfully begotten, and without having dis-
posed of the same by sale, or by last will and
testament, either in whole or in part, then I
give and devise my said estate, both real and
personal, or the part remaining as above undis-
posed of, to my cousins," etc
Of course, that limitation was held to be
void, as the gift to the first taker was ab-
solute and unqualified. It was there said
that an executory devise may be limited aft-
er a fee simple, but in such case, the former
must be made determinable on some contin-
gent event In this- case there was a fee, bnt
it was determinable on the contingency of
dying intestate and leaving no issue living at
the time of the death of the devisee, "the
share or portion of the one so dying shall
survive to and vest in the surviving devisees
aforesaid share and share alike."
In the case of Anderson v. Brown, Si. Md.
261, 36 AtL 937, the testator left real esUte
to his wife 80 long as she should live or re-
main a widow, and at her death or marriage
he left to his eight children named —
"the aforesaid real estate to them and their
heirs and assigns forever, and in case of the
death of any one of them without issue living at
the time of his or her death, I do give and de-
vise his or her share to the survivor or surviv-
ors, and this principle of survivorship I do di-
rect to apply to any and all accumulations by
survivorship, not only to the original shares,
but to all accretions by survivorship until the
death of any and all of such children as may die
without issue at the time of his or her death."
It was there held, quoting from the sylla-
bus for convenience:
"First. That the devisees took estates in fee,
as tenants in common, defeasible as to each
upon his or her death without issue, in which
event the share of the person so dying passed
to the survivors, so that the last survivor took
his estate, including that which survived to him
in fee, absolutely. Second. That it was not
the intention of the testator that in the case of
the death of one child without issue, his share
should go in part to the issue of pre-decea.sed
children, but nothing could pass to the issue
of a pre-deceased child except that which the
parent was entitled to at the time of his death.
Third. That the word 'survivor* as used in the
will meant the survivors of the children named
as devisees, and did not include the issue of a
deceased child as a surviving line of heira"
That case is as nearly analogous to this
as we could expect to find.
In Devecmon v. Shaw et al., 70 Md. 219,
16 Atl. 645, the opinion of Judge Alvey filed
in the lower court was adopted by this court.
•Phe testator after providing for his wife, and
after making certain devises and bequests to
his daughter without limitations or restric-
tions, added the provision:
"But in case my said daughter should die
without leaving any child or children at the time
of her death, or if leaving such child or chil-
dren, such child or all such children should die
before arriving at the age of twenty-one years,
then all the real estate and personal estate
devised to my said daughter shall go to my sis-
ter," etc.
It was held that:
"The daughter [of the testator] took a ftee-
simple estate in the realty, and the entire inter-
est in the personalty, defeasible as to both real-
ty and '>ersonaI^ on her dying without leaving
a child, or, if she left child or children, upon
their all dying before attaining the age of 21
years; and upon the happening of such contin-
gencies the ultimate devisees and legatees would
take by way of executory devise and beqaest,
and not by way of contingent remainder."
Judge Alvey said in his opinion:
"Upon consideration of the whole context of
the will, I can entertain no doubt of the opim-
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ABTHUB A BOTLS t. MOBKOW BBOS.
777
ion that the daughter was intended to take,
and that she does by fair constnietion take, an
estate in fee in the realty, and the entire interest
in the personalty, defeasible as to both realty
and personalty, upon the banneninc of the con-
tingencies apeafied."
There are a nnmber of other cases decided
by this court to the same effect, and we are
forced to the conclusion that under this wUl
the ctilldren of Mrs. McElderry took no in-
terest in the share of Charles H. Bradford
left to him by his father's wilL
It was said at the argument tbat in prior
matters concerning tbe estate of Gov. Brad-
ford the appellants had concorred in the
-views now taken tqr the appellees, and pro-
ceeds of properties bad been disposed of ac-
cordingly, but there is nothing in the record
which would Justify us for that reason in
making the distribution sow before ns c<»-
trary to what we are of opinion the will and
authorities require. We will, however, di-
rect that the costs l>e paid out of the estate
of Cbarleet H. Bradford.
Decree reversed, and cause remanded for
further proceedings in accordance with this
opinion, the costs to l>e paid out of the es-
tate of Charles H. Bradford.
1131 HO. a)
AKTHUB & BOTLB v. MOBBOW BBOS.
(No. 61.)
(Court of Appeals of Maryland. June 28, 1917.)
1. Beleabe «=»57(1) — EviDEMCK — SuCTI-
CIENCT.
In an attachment issued against a general
contractor on a judgment against the subcon-
tractor for work done by plaintiSs, held, under
the evidence, that a release under seal executed
by the subcontractor to the general contractor
-was not a release of the debt attached.
2. BVIDKnOB «=976— PRKSUMPTIOR— FAII.UBK
OF Pabtt to Testify.
That neither of the garnishees took the stand
raises a presumption against them.
3. F1tAi;DT7I.ENT CONVETANCKS ^S>229— L]Oi>
bilit; of Gbartek— GABRismiKKT.
If a creditor has fraudulently conveyed prop-
erty to another, the grantee may be charged as
garnishee.
4. Fkaudi]i:.eht Convetanoss 4s>4S— Voi.-
UNTABT BSLEABE BT CBEDITOB.
The voluntary release of his debtor, by a
creditor not having the means to pay debts is
void as to the creditors of the latter.
5. FBAVDnLENT Conveyances «=927S— VoIi-
UNTABY BEI.EAaB— PbESUMFTIOK.
If the necessary effect and operation of a
voluntary release of a debtor was to hinder, de-
lay, or defraud creditors, the legal presumption
is tilat it was made for that purpose.
e. Fbaudxhjsnt CoNysTAKCES 9s>2&— Voi.-
UNTABY Beueasb ot Dbbtob— Inbtbuvekt
VRDEB SeAX.
If the release had its origin in fraud, or
what dte law deems fraud, it would make no
difference that it was under seal.
Appeal from Superior Court of Baltimore
City; Bobert F. Stanton, Judge.
Suit by Arthur & Boyle, for the nse of
lielder C. Sllngluff and another, trustees,
flgnlnst James O. Parlett On the judgment
for plaintiffs, an attachment was issued
against Morrow Bros., garnishees. BVom the
judgment against the garnishees, plaintiffs
appeal Beversed, and new trial awarded.
Argued before BOYD, C. J., and BBISOOB,
BUBKE, THOMAS, PATTISON, UBNEB,
STOCKBBIDGB, and CONSTABLE, JJ.
Albert R. Stuart and Stuart S. Janney,
both of Baltimore (Ritchie & Janney, A.
Dana Hodgon, and Fielder C. Slingluff, all
of Baltimore, on the brief), for appellants.
Carville D. Benson and John D. Nock, both
ot Baltimore (Benson & Karr, of Baltimore,
on the brief), for appellees.
BOYD, C. J. The appellees were the gen-
eral contractors for the State Normal School
building near Towson, and made In writing
a subcontract with James G. Parlett to do
certain work in connection with its construc-
tion. The contract is not in the record, but
a memorandum of agreement filed in the
case shows that it was for grading and land-
scaping. Parlett made a subcontract wltb
Carozza Bros, ft Co., who in turn entered in-
to a subcontract with Arthur & Boyle, the
appellants.
While that work was going on, Charles
Morrow, one of the appellees, called Frank
J. Boyle, one of the appellants, to where be
and Parlett were standing, and asked him
if he would make some tunnels which were to
be constructed under the building, and be
replied that he would If he got his price, and
that he could start the next morning. After
some conversation about tbe price. Morrow
turned to Parlett and said:
" 'Parlett, get them in right away,' and also
said to me, 'You had better get your shovel up
there and get to work on them and get them
out, as we can't start this building until these
tunnels are taken out.' Q. And he said to Mr.
Parlett, 'You get them out right away*? A.
Yes."
That Is substantially all in the record In
reference to the contract for the tunnels,
but it is corroborated by Parlett
The appellants did the work, and received
a payment of $1,890 on account of it B^ank
J. Boyle testified that the amount was paid
to him by Parlett, who received the money
from Morrow Bros., at their office, in bis
presence, and turned it over to him. Later
the appellants sued the appellees for the
balance they claimed to be due on account
of the work on the tunnels, but the case was
decided against them. Afterwards they sued
Parlett and recovered a Judgment against
him for $4,409.06, with interest and costs.
On that Judgment an attadiment was Issued,
and laid In the hands of Morrow Bros. They
first filed a plea of nulla bona, but subse-
quently filed an additional plea in which
they admitted taaving $250 In hand due Par-
lett, but alleged that they had no other goods,
chattels, or credits of Parlett In their hands.
The $250 was for the balaBce due <« the
A=»For other cues ie« lune topic and KBT-NUUBBR In all Key-Nnmberad Digests and Indon
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778
101 ATIiANTIC REPOnTEE
(Md,
contract for grading and landscaping. The
trial In this case resulted In tbe appellants
obtaining a verdict for only $250 against
Morrow Bros., the garnishees, and they ap-
pealed from the Judgment thereon.
There are only two bills of exception la the
record, the first being to the admission of an
"agreement and release," a "memoratidum of
agreement," and a receipt which were offered
by the garnishees, and the second presents
the rulings on the prayers. The plaintiffs
offered five prayers, all of which were re-
jected, and the garnishees offered three, the
second of which was granted, and the others
rejected. We do not find in the record a
copy of the Judgment on which the attach-
ment was issued, but the evidence of Mr.
Boyle shows that they recovered Judgment
for $4,409.05, with interest from May 9, 1916,
and apparently that was the date of the
judgment. Nor is there anything lo show
when the suit against Ftirlett was instituted.
The appellees rely on the agreement and re-
lease referred to, while the theory of the
appellants is that Morrow Bros, owe Par-
lett a balance for the work on the tunnels,
which they claim is the amount of the Judg-
ment they recovered against Parlett, and (1)
that Parlett never did release this claim,
and (2) that, even if he did, the release was
without consideration, void and of no effect
as to them, by reason of the British statute
(15 Elizabeth, c. 5) known as the statute
against fraudulent conveyances, in force in
this state.
[1] 1. We find no error in admitting the
papers referred to, notwithstanding our con-
clusion to be hereafter stated as to the ef-
fect of the release. The meinortindum of
agreement was dated March 16, 1916, and was
executed by Morrow Bros., parties of the
first jpart, James G. Parlett, party of the
. second part, and Oarozza Bros. & Co., parties
of the third part, the ludividual members of
the two firms being also named. Its recitals
. are as follows:
"Whereas, the parties of the first part entered
into a contract with the party of the second part
jor tho grading and landscaping [italics ours]
at the Maiyland State Normal School, and the
parties of the third part claim to have an aasicn-
ment of said contract from the party of the sec-
ond part; and whereas, a dispute has arisen in
regard to the state of accounts between them,
and the parties hereto liave arrived at a com-
promise settlement of their differences: Where-
fore, now this agreement witnesseth: That in
consideration of the sum of one ($1.00) dollar
by each of the parties hereto to the other paid,
and in fnrtiier consideration of certain mutual
concessions by the parties hereto, it is afp^eed by
the parties hereto and each of them that the to-
tal nmount due by the parties of the first part
in connection with and as a result of the matters
and things hereinhefore referred to [italics ours]
is- eleven thousand five hundred dollars ($11,-
500), and no more."
On the same day what is called an "agree-
ment and release" was executed by Parlett,
pnrfy of the first part, and the Carozza Bros.
& Co., parties of the second part, to the
Morrow Bros., parties of the third part, the
individual ' members of the firms being also
named. It recites:
That, "whereas, certain differences and dis-
putes have arisen between * • * [naming the
parties! regarding certain contracts entered into
by the parties of the first and third parts re-
garding certain work to be done at and on the
Maryland State Normal School, for the erection
of which sdiool the parties of the third part were
the general contractors, and whereas said dif-
ferences and disputes have been adjusted to the
satisfaction of the parties hereto," and that for
and in consideration of the sum of $10,500 in
band paid to the parties of the first and second
parts by the parties of the third part, the re-
ceipt of which is acknowledged, and the further
payment of $1,000 when the state of Maryland
makes final payment to Morrow Bros., and of
other good and valuable considerations, Parlett
and Carozza Bros. & Co. and each of them, re-
mise, release, and forever discharge Morrow
Bros, "from all and all manner of action and ac-
tions, cause and causes of action, suits, debts,
dues, sums of money, accounts, reckonings,
bonds, covenants, contracts, agreements, prom-
isee, damages, claims, and demands whatsoever
in law or in equity which against the said Wil-
liam H. Morrow and Charles A. Morrow, or ei-
ther of them, they ever had, now have, or which
their respective heirs, personal representatives,
or assigns hereafter can, shall, or may have, for,
upon, or by reason of any manner or cause or
thing whatsoever from the beginning of the
world to the day of the date of these presents;
the said parties of the first and second parts,
and each of them, liereby declaring themselves
fully paid and satisfied.
"And the said parties of the first and secoad
parts do hereby covenant and warrant that any
and all claims of any other subcontractors or oth-
er persons for labor and material done or fur-
nished in, about, or in connection with the con-
struction of the State Normal School in Balti-
more county, or in or about the site of said
State Normal School bnilding, are paid in full,
and that they and each of them will assume and
pay any and all such claims as may arise or t>e
presented."
The receipt refer»ed to is as follows:
"Baltimore, 3/16/191«.
"Bec^ved of Morrow Bros, two thousand dol-
lars in full settlement of Normal School con-
traot, except the sum of $1,000, which is to be
paid when work is finally completed and accept-
ed, to be paid as follows: Parlett, $250.00:
Carozza, $750.00."
That is signed by PaWett and Garona Bros.
It would )>e dlfilcnlt to use more words in a
release than in the one above set out, bat
there are some significant facts which can-
not be overlooked. In the first place, tt would
have been so easy to mention the contract
for tiinneling if that was intended. Then the
"memorandum of agreement" and the "agree-
ment and release" were executed the same
day, and the former specifically refers to
the contract for grading and landscaping and
to no other contract. It cannot be contended
that it relates to that for tunneling. It Is
there agreed "that the total amount due by
the parties of the first part [Morrow Bios.]
in connection with and as a result of the mat-
ters and things hereinbefore referred to, i»
eleven thousand five hundred ($11,500) dollars,
and no nxae." The only things "hereinbefore
referred to" are the grading and landscaplns-
Tlie $ll,-500 is the precise sum named as the
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ARTHUR A BOYLE v. MORROW BROS.
779
consideration In the agreement and release,
tbere being $10,500 In band paid, and the
sum of $1,000 to be paid wben the state made
Its final payment It Is therefore afBrmatlve-
ly and clearly shown that no part of the $11,-
500 was paid for the tunneling, but that the
whole of that sum was due by Morrow Bros,
to Parlett and Carozza Bros. Company for
grading and tunneling.
But beyond that It is stated in the opinion
of the learned Judge below, and we so un-
derstand from the record, that the contract
for the grading and landscaping was made
between the Morrow Bros, who were the gen-
eral contractors, and Parlett Then Parlett
made a subcontract with Carozza Bros. & Co.
for that work, which, according to the mem-
orandum of agreement, the latter claim
amounted to an assignment of It and that
firm made a subcontract with Arthur &
Boyle for that work. We find nothing in the
record to suggest that the Carozza Company
had any Interest whatever in the contract for
tunneling. It was therefore proper to Join
the Carozza Company in the memorandum of
agreemmit and for them to unite in the re-
lease, and to require that company and Par-
lett to discharge Morrow Bros, from all
claims they were Jointly Interested in or con-
nected with, but why should it have been in-
tended hy that Instrument to release Morrow
Bros, from a claim of Parlett with which
the Carozza Company had no connection?
If it had been so intended, the natural and
proper thing to do was to specifically recite in
the release the claim for tunneling, as the
Carozza Company had nothing to do with it,
but were parties to the release. It is clear
that the release was only intended to affect
the contract or contracts with which Parlett
and the Carozza Bros. & Co. were both con-
nected, and not the one to which the latter
were In no wise parties.
Then when we come to the oral evidence,
which was admitted without objection so far
as the record discloses, and, we think, prop-
erly admitted under the Issues, it is alto-
gether on the one side. Neither of the Mor-
rows testified, nor did they call a witness,
notwithstanding Parlett had sworn that the
tunnel work was not Included, and not intend-
ed to be included. As the record stands,
lionow Bros, have only paid $1,890 for
"six^ some hundred dollars" of work, with-
out an iota of evidence to contradict that
statement by Parlett and if the appellees'
construction of the release is correct they
were released from the payment of over $^-
000 without one penny's consideration; for,
as we have shown, the consideration named
in the release is exactly what all of the par-
ties agreed under seal was due for the grad-
ing and landscaping.
But that it not alL Morrow Bros, not only
knew that Arthur & Boyle were doing the
tunneling, but according to the uncontradicted
evidence Charles Morrow told Parlett in
Boyle's presence to get them to work right
away, and Parlett gave them a rAttea order
to do the work, which work U is not denied
they did. The $1,890 which they did pay
was paid to Parlett In Boyle's presence, and
then turned over to him In Morrow Bros.'
offlc& Parlett was criticized at the argument
for making in thdd case statements con-
tradictory to and Inconsistent with hla evi-
dence in the suit which Arthur & Boyle
brought against Morrow Bros, for the balance
due for the tunneling work, but It cannot
properly be said that his explanation is an un-
reasonable one. He testified In the other case
that the money was due to Arthur & Boyle;
and not to him, and he said at this trial thai
he then thought it did. They did the work,
and under the facts about their employment
shown by the record he might well have be-
lieved that they were entitled to the money.
As Arthur & Boyle did the work, If their
charges for it amounted to all that Morrow
Bros, were to pay for it, the proper thing
for Parlett to do was to treat it as their
money, and not his. When the court deter-
mined that Arthur & Boyle could not recover
from Morrow Bros, and that Parlett was re-
sponsible to them, he then very properly
concluded that the money was due him. It
certainly was not intended by the court or
any one else, that it should not be paid to
some one. It was due either to Arthur Ik
Boyle directly, or to Parlett for their bene-
fit He admits that he made a memorandum
in his book of the amount and sent Morrow
Bros, a notice of it bat he says that his idea
was that be was to collect It and pay it to
Arthur & Boyle. As be bad given the written
order to Arthur & Boyle to proceed with the
work, it was perfectly proper for him to
make and keep a memorandum of It, but the
only money that has been paid he paid over
at once to Arthur & Boyle in the presence
of Mr. Morrow.
[2] The fact that neither of the Morrows
went on the stand Is significant and raises
a presumption against them. Dawson v.
Waltemeyer, 91 Md. 328, 46 Atl. 994. Their
claim that they are released from the sum
due is simply based on the fact that the re-
lease is under seal, and not even on a con-
tention that they have paid the money. We
are therefore of the opinion that under the
evidence the release did not apply to the
contract for tunneling, and hence the fact
that it was under seal can make no differ-
ence.
That being so, no reason appears from the
record why Parlett cannot sue Morrow Bros.,
and there can be no application of the gen-
eral principle referred to in the opinion of
tbe lower court and in the authorities cited
by tbe appellees, that ordinarily the test of
tbe liability of a garnishee is whether be
bad property, funds, or credits in his hands
for which the debtor can sue him. That gen-
eral principle Is clearly and thoroughly es-
tablished by 2 Poe on PI. & Pr. § 531, B. &
O. R. It Co. V. Wheeler, 18 Md. 372, Myer v.
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780
101 ATLANTIC REPORTBE
(Md.
Insurance Co., 40 Md. 695, and many other
authorities which could be dted, if there was
any doubt about It.
[8] But there are well-recognlaed excep-
tions to the general rule, one of which Is
that. If a creditor has fraudulently conveyed
property to another, the grantee may be
charged as garnishee. Odend'hal v. Devlin,
48 Md. 439; Farley v. Colver, 118 Md. 379,
386, 77 AU. 589; Hodge & McLane on At-
tachments, i 148. If he has conveyed It
contrary to the Statute of ESlzabeth, It comes
within the exception.
[4-1] But if the release had included this
fund, then it would have been null and void
and of no effect as against the appellants
or other creditors of Parlett He testified
that he had no means with which to pay this
Judgment, and It was In effect conceded at
the argument that he was Insolvent. If a
debtor and creditor can discharge an indebt-
edness simply by having the creditor execute
an instrument like this under seal, and the
creditor has no other means with whldi he
can pay Us debts, then Indeed might it be
properly charged that the law encourages
fraud and protects fraudulent transactions.
Instead of protecting honest and Innocent
people from attempts to defraud them. We
do not mean to say that there was Intention-
al fraud In this matter, but if It was In-
tended to get rid of this Indebtedness for no
suf&clent consideration, and thereby put It
beyond the reach of the creditors of Parlett,
It was certainly what the law condemns.
Parlett swears positively that it was not in-
tended to release this claim. The Morrows
are silent The Statute of 13 Bllz. (chapter
6) has frequently been before this court. A
voluntary conveyance Is prima fade Invalid
as against existing creditors of the grantor
who has no sufficient means to pay bis debts,
Independent of that conveyed, without regard
to his actual intent or to that of the grantee.
Christopher v. Christopher, 64 Md. 583, 588,
3 AtL 296; Cone v. Cross, 72 Md. 102, 105,
19 Atl. 391. The burden is on the party
claiming under the conveyance to prove that
a debtor had sufBclent property with which
to pay his debts, exclusive of that conveyed
away. It Is not necessary in order to bring
a conveyance within the statute that there
shall be an actual Intent on the part of the
grantee to perpetrate a fraud. If the neces-
sary effect and operation be to hinder, delay,
or defraud creditors, the legal presumption
is that it was made for that purpose. Schu-
man v. Peddlcord, 60 Md. 560, 563 ; Riley v.
Carter, 76 Md. 681, 600, 25 Atl. 667, 19 I*
R. A. 489, 36 Am. St. Rep. 443; 1 Alex. Br.
Stat. (Coe's BXL) 507, note 21. If the release
had its origin in fraud, or what the law
deems fraud. It would make no difference
that It was under seal. Schaferman y. O'Bri-
en, 28 Md. 565, 575, 92 Am. Dec. 708; Youngs
V. Trustees of PubUc Schools, 31 N. J. Eq. 290.
Hie statute Is applicable to release of
debts, Blgelow on Fraud. Con. 132; May
on Fraudulent and Voluntary Dls. of Prop.
(3d Ed.) 15, 16, 20, 21; Moore on Fraud. Con.
p. 60, I 19; Hanser v. King, 76 Va. 731, 737;
12 R. O. U 507, J 36; 20 Cye. 354, 406.
It follows from what we have said that
there was error in granting the garnishee's
second prayer and rejecting the plalntifTs
prayers. In this state the practice Iiss been
and is to permit a creditor to resort in such
cases to either of two remedies, that of
attachment or by bill in equity (Stockbridge
V. Fahnestock, 87 Md. 127, 136, 39 AtL OS.
and cases there cited) ; and hence we have
not thought It necessary to refer to the Juris-
diction of a law court, as it Is well estab-
lished.
Judgmrat reversed, and new trial award-
ed ; the appellees to pay the costs, above and
below.
(Ul Md. Z9«)
SOULSBT et al. v. AMEJRICAN COLONIZA-
TION SOC. et aL (No. 54.)
(Court of Appeals of Maryland. June 28, 1917.)
Appeal and Fbbob «=>1203(5)— Mandatb —
DiSUISSAI..
In a suit by the residuary legatees of the
prantor of tlie trust to declare it void, a juds^
meat of tbe Court of Appeals on a former ap-
Seal that the trustees' adversary possession of
le trust property for more than 20 years prior
to the suit was a bar to its recovery by the peti-
tioners, notwithstanding a statement in the opin-
ion that the trust was void because conflicting
with the rule against perpetuities, was a deter-
mination that the petinoners had no right of ac-
tion, BO that, after mandate, the lower court's
decree dismissing the petition was correct.
Appeal from Circuit Court of Baltimore
City; Walter L DawMns, Judge.
Suit by Robert Soulsby and others against
the American Oolonizatloa Society, Ferdi-
nand C. Latrobe, and another, trustees. r>e-
cree sustaining the demurrers to the petition
and dismissing the petition, and petitioners
appeal. Decree affirmed.
Argued before BOYD, C. J., and BRIS-
C»E, BURKE, PATTISON, URNER, STOCK-
BRIDGE, and CONSTABLE, JJ.
Leigh Bonsai, of Baltimore, for appellants.
William O. Johnson, of Washington, D. C.
and D. E. Este Fisher, of Baltimore, tor ap-
pellee American Colonization Soc. Chari«>s
F. Stein, Eugene O'Dunne, and Donald B.
Creecy, all of Baltimore, for appellees Ferdi-
nand C. Latrobe and James W. Harvey, trus-
tees.
CONSTABLE, J. This appeal arises from
a misunderstanding of the meaning and ef-
fect of the mandate togetho- with the opin-
ion of this court in the case of the American
Colonization Sodel7 v. Robert Soulsby et al.,
129 Md. 605, 99 Atl. 944, L^ B. A. 1917C.
937.
We need only refer briefly to the fkcts ot
£=>F0T otlker cases sm same topic and KE7-NUUBBR la all K«7-Numbared Dlsasti and Indazw
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Md.)
SOULSBT ▼. AMERICAN COLONIZATION SOa
781
the lldgatlon, for ihey were set ont very
fully In the careful and comprehenslye opin-
ion prepared by Judge Pattlson on the for-
mer appeal. Caroline Donovan In 18S0 ex-
ecuted a declaration of trust. In which she
provided that after her death certain enum-
erated real property should be held by sped-
fled trustees, and the net Income paid over
to the Ajnerlcan Colonization Society for
the transportation annnally to LlBerla of
such colored persons as might desire to emi-
grate to that country, with the further pro-
vision that. If In any one year the cost of
transportation for that year should not re-
quire the whole of the net income for that
year, the Income, or any balance, should be
used by the said society for the maintenance
■of public schools for the education of col-
ored children in Liberia. It was provided
that the trust was to be under the supervi-
sion of a court of equity; so therefore at
the death of Caroline Donovan, in March,
1890, the circuit court of Baltimore city as-
sumed Jurisdiction of the trust; and from
that time to the present the trustees have
collected the rents from the properties and
paid the net Income over to the society.
The American Colonization Society is a
Maryland corporation incorporated in the
year 1831, and was empowered under a new
charter, passed in 1837, to purchase, have,
and enjoy any lands by the gift, bargain,
sale, devise, or otherwise, of any person, to
take and receive any sums of money, goods,
or chattels that should be given to It In any
manner, and to occupy, use, and enjoy, sell,
transfer, or otherwise dispose of the same
as It should "determine to be most conducive
to the colonization, with their own consent
In Africa, of the free people of color re-
aiding In the United States."
The appellants and petitioners, who are
the lielrs at law and residuary legatees of
<riaroline Donovan, filed their petition In this
■cause, praying that the trust properties
might be delivered over them, upon the
-ground that the trust was void. The reasons
assigned for Its invalidity were twofold, of
In the alternative. They contended. In the
first place, that the declaration of trust was
Told as contravening the rule against per-
petuities and for Indeflnlteness, and again
that, even though It should be found that for
tiiose reasons it was not void ab Initio, yet
nevertheless It had since become Inoperative
and void, because the objects and purposes
for ■n-hich it had been created could no long-
er be accomplished.
Demurrers were filed to the petition on
various grounds, Including the ground that
adversary possession for several years more
than the statutory period completely barred
nil recognition of the petitioner's claim. The
lower court overruled the demurrers, and
the trustees and the society appealed to this
court. This court. In disposing of the ap-
peals, entered the order as follows: "Order
i«versed, and cases remanded; the appel-
lees to pay the costs." After the mandate
was received below, the petitioners asked
leave to amend the petition, but this the
court refused to permit, and entered a de-
cree sustaining the said demurrers and dis-
missing the petition. From this decree the
petitioners have takoi the present appeal.
As we said in the beginning of this opinion,
this appeal arises from a misconception of
the effect of the order on the first appeal.
The appellants have laid hold of certain
passages In the oidnion the meaning of
which, when considered with the whole of
the text, gives no aid to the appellants'
pres«it contentions, and were not intended
to do so when adopted by us. From the
passages they argue that, when this court
rerversed the previous decree and remanded
the cause. It must have intended that the
petitioners were to be allowed to amend.
The fact is that this court Intended exactly
what it has intended In a great number of
cases where similar orders have been passed,
where, by the opinion filed, It appenred that
the complainants' or petitioners' contentions
had been ruled against, that is, to have the
lower court enter the decree of dismissal.
As stated above, the petitioners had two
contentions — one that the trust was void ab
Initio; the other, that although the courts
should find that the trust was not void ab
initio, yet it must be found that it was void
now, for the reason that the purposes for
which It had been created were no longer
available. Judge Pattlson in delivering the
opinion of the court first dealt with the
former contention, and, after reviewing sev-
eral of our leading cases treating of the
rule against perpetuities, announced our con-
clusion in the following plain and unequivo-
cal language :
"Whatever may be the law dsewhere, we, fol-
lowing the decisions of this court, must hold the
trust in this case to be void because it is a per-
pefaiity. in that it attempts to create an active
trust which is required to continue Iwyond the
period limited by the rule, but, although the
trust is void for the reason stated, the petition-
ers are liarred from recovery upon the ground
of its invalidity, resulting from such cause, be-
cause of the adversary possession of the trustees
of the trust property for a period of more thaij
20 years prior to the institution of these pro-
ceedings."
And In support of the latter part of the
above Needles v. ^artln, 33 Md. 618, was
cited and quoted from with several cita-
tions of authorities to the same effect.
This, then, became the law of the case,
and the correct law, as we then thought and
now think. In oiur opinion, when we held
that the adversary possession by the trustee
of the trast property was a bar to its recov-
ery by the petitioners, we intended to say
Just what the words, in their ordinary mean-
ing. Import; that is, that whatever rights
the petitioners might have had at one time
had been lost because others had acquired
them through operation of law. This abso-
lutely settled the case. In so far as the petl-
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782
101 ATLANTIO RKPORTEB
OKd.
tlonera vera concerned, without the neces-
sity of adverting to the other contention of
the petitioners, based upon the theory thnt
the trust, at the time of its creation, was
a valid one, but had since become void
through the Impossibility of carrj'lnjf out
its objects. But it was thought proper, and
perhaps helpful as a matter of pleading, to
point out why the allegations of the peti-
tion that the grantor's objects and purposes
were not being carried out were insufficient,
and the demurrers thereto would have had
to be sustained, if a dlCTerent view had been
taken of the question of adverse possession.
The lower court by its order dismissing
the petition correctly expressed the man-
dates of this court.
Decree affirmed ; the appellants to pay the
sosts.
(130 Md. 6M)
H0E3N V, KIDD.
(No. 69.)
(Court of Appeals of Maryland. June 28, 1917.)
Bkokkbs «=s>8S(1)— Couuission— Recovert—
Jury Qxtestion.
In an action for commissions on the sole of
timber, held that the case was properly submit-
ted to the jury : the evidence as to die agree-
ment that defendant was to be the judge wheth-
er plaintiff actually made the sale being contra-
dictory.
Appeal from Circuit Court, Baltimore Coun-
ty; Frank I. Duncan, Judge.
Action by Frank B. Kldd against Frank N.
Eoen. Jud^nent for plaintiff, and defendant
appeals. Affirmed.
Argued before BOYD, C. J., and BURKE,
THOMAS, PATTISON, URNER, and STOCK-
BRIDGE, JJ.
Elmer J. Cook, of Towson (Frank J. Hora
and Willis & Willis, all of Baltimore, on the
brief), for appellant T. Scott Offutt, of Tow-
son, for appellee.
STOCKBRTDGK, J. This appeal is from a
Judgment for |170, rendered in the circuit
court for Baltimore county in a suit to re-
cover commissions on a sale of timber grow-
ing on some land belonging to the appellant.
There is but one bill of exceptions. That
was reserved to the action of the trial court
upon tlie prayers. The first instruction asked
for by the defendant was that there was no
evidence legally sufilclent to entitle the plain-
tur to recover, and that the verdict must be
for the defendant. It is upon tlie rejection
«f this prayer that the appellant lays the
most stress, and it is to this that considera-
tion must first be given.
In the early part of September, 1915, Mr.
Kldd, a real estate broker, called on Mr.
Frank H. Hoen relative to a sale of the tim-
ber on some 200 acres of land belonging to
the latter in Baltimore county. He produced
a contract which Mr. Hoen refused to sign.
Mr. Kldd got up to leave, saying :
" 1 can't do any business with yon? and I
said, 'No, sir: none at all;' and be started oat
the door, and then he came back and he said,
'Now, Mr. Hoen, suppose I could procure a
purchaser for this tract of timber; you woald
not object to paying me the commission?' and I
said, 'No; if I could know you were able to sell
it and actually did it, I would not object to
paying yon the commission, but under no cir-
cumstances would I give you the order or com-
mission you to act for me in the premises at all;
I would have to be the judge as to wfaeUier yon
actually made the sale or not ;' he said, "That is
perfectly satisfactory to me; you are responsi-
ble; that is perfectly satisfactory;' and with
that he went out."
This is the account of the first Interview
as given by Mr. Hoen. Mr. Kldd'a version
is much shorter. He denies positively the
statement that Mr. Hoen was to be the judge
whether Mr. Kldd made the sale or not, and
described the Interview In this way :
"I told him I was in the real estate business
and sold farms and also sold timber, and Mr.
Hoen said that if I would bring or send a man
I would get five per cent, commissions, and
he asked, first, who paid the commissions and
I snid, the man selling it, and I told him T sold
farms too, and I think I left him a form — I for-
get what you call it— « form where yon fill oat
a blank form."
Mr. Kldd went to Natwldi & Co. to en-
deavor to Induce them to purchase the timber,
and on September 14th this firm wrote to Mr.
Eoen, looking to a possible purchase. This
letter was followed up by a call on Mr. Hoen
by Mr. Natwick on October Slst The prog-
ress was slow, and the deal not finally con-
summated until January 26, 1916, but negoti-
ations do not seem to have been ever definite-
ly broken off, and on frequent occasions,
either by calls or conversations over the tele-
phone, Mr. Kldd continued to pr^ the com-
pletion of the sale.
At some time during this period a Mr. Sny-
der appears upon the scene, and it Is sug-
gested that he was or might have been the
efficient cause In consummating the transac-
tion. Mr. Natwlck's testimony In relation
to Snyder makes It seem as though his call
was of a social rather than business nature.
The case as presented, therefore, cannot be
said to have been so entirely devoid of evi-
dence as to warrant the court in withdrawing
It from the consideration of the jury. On
one material point there was a direct contra-
diction between the plaintiff and defendant
and; it was for a jury, not the oouit, to any
which was the correct version.
The subject of real estate brokers commis-
sions has been a most fruitful occasion for
litigation, and decisions defining the law
governing them can be found in every state
in this country. Nowhere have the prin-
ciples controlling such controversies been
more clearly stated than In Maryland. Sach
cases as Keener v. Harrod, 2 Md. 70, 56 Am.
Dec. 706; Martlen v. Baltimore, 109 Md. 260,
71 Atl. 966; Walker v. Baldwin, 106 Md.
C32, 68 Att. 25; Slagle v. Russell, 114 Md.
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BECKEB Y. FSEDEBtCK W. U?PS CO.
783
418, 80 A(L 164; Way r. Turner, 127 Md.
327, 96 AtL 676, and Daniels t. Iglohart,
dedded at the present term (no opinion
filed), have fnlly covered every principle In-
volved in tUs case, and a mere repetition of
what was said in these cases would be super-
fluous.
Objection to the other prayers was not
strenuously Insisted on, and, even U It had
been, no reversible error is apparent in any
of them ; and, as the plaintiff produced suffl-
deat evidence to require the submission of
the case to a lury, the Judgment appealed
from will be affirmed.
Judgment affirmed.
cm Md. 301)
BECKER V. FREDERICK W. LIPPS CO.
(No. 57.)
(Court of Appeals of Maryland. June 28, 1917.)
1. EouiTT <g=34a— Legal Remkdy.
Where plaintiff's rlgbt of action is not de-
pendent upon or based upon some equitable mat-
ter, such as fraud, mistake, accident, trust, ac-
counting, or the like, and the legal remedy would
be complete, adequate, and certain, courts of
equity nave no concurrent jurisdiction, and will
not interpose.
2. Account $=»12 — Surr poe Accountiro —
Bnx.
Bill in equity brought by the purchaser of a
year's output of empty barrels from a manufac-
turer of confections, which bill alleged that the
confectioner failed to deliver empty sngar bar-
rels, and that plaintiff had no way to ascertain
what number constituted the entire output of
sugar barrels for the year, and prayed for a
discovery and accounting and damages, could
not be maintained as a suit for an accounting.
3. DiSCOVEBT «C>6— ADXIUART REHEDT.
Discovery In equity to support an. action at
law or as auxiliary to the maintenance of a
suit contemplated to be brought can be resorted
to only where the discovery Is essential and
absolutely nccessarv to the establishment of
elalntifi*8 rights, and the information caanot
e otherwise obtained. .
4. DiscovBBY <S=>3 — Bill — PossiBiLrrr of
Discovery at I,aw— Statutb.
Bill by nnrehaser of a year's output of empty
sugar barrels from a confectioner, which alleged
oondelivery, and prt^yed discovery, and a judg-
' ment for uamagos, was not maintainable Ss a
bill for discovery, so that the court would pro-
ceed to detenoine the whole matter in contro-
versy, as the discovery prayed for would have
been avoilable to plaintiff under Code Pub. Gen.
Laws 1904, art. 75, H 99 and 100, providing
mode of procuring production of books, papers,
and testimony in a court of law.
Appeal from (Ml-cult Court of Baltimore
City ; H. Arthur Stump. Judge.
"To be bfHdflUy reportedi"
Salt by WUUam Becker, trading as Wil-
liam Becker &■ Co., against the Frederick W.
Llpps Company, a body corporate. From an
order sastainlng demurrer and dlsmlssUig the
bill, plaintiff appeals. Order affirmed.
Argued t)efore BOYD, C. J., and BRISCOE,
BURKE, THOMAS, PATTISON, TJRNER,
STOCKBRIDQB, and CONSTABLE, JJ.
Louis S. Ashman and George Weems Wil-
liams, both of Baltimore (Lucius Q. C. Ia-
mt^r, of BfUtimoie, on the brief), for appellant.
Laurie H. Rlggs, of Baltimore (C. R. Watten-
Scheldt, of Baltimore, On the brief), for ap-
pellee.
BRISCOE, J. The questions for decision
in this case are raised upon a demurrer to
a bill in equity which was sustained by the
circuit court of Baltimore city. The bill
was accordingly dismissed, and leave of the
plaintiff to amend was denied.
The principal defense made on the demur-
rer and relied upon in argument is that the
circuit court of Baltimore dty has no juris-
diction of the subject-matter of the suit, be-
cause the cause of action and relief demand-
ed are fully legal in their nature and prop-
erty cognizable in a court of law.
'The facts of the case out of which the con-
troversy arose and upon whidi the decision
of the case must turn are stated and ap-
pear from the averments of the bill and are
admitted by the demurrer to be true. They
are these:
The plaintiff is engaged in Che cooperage
business in the city of Baltimore, and in the
conduct of the business and in connection
therewith buys and sella empty barrels of
various kinds. The defendant Is engaged in
the manufacture and selling of chocolate and
confections in the city of Baltimore, and in
connection with its business has on hand a
large' number of empty- barrels of different
kinds for sale. On August 8, 1916, the plain-
tiff agreed to purchase and the detendant
agreed to sell all of defendant's output of
empty barrels for the period of one year
from the 15th of July, 1015, to the IGth of
July, 1016, upon the telrms, eosdltloils, and
prices provided by a contract between the
parties, which will awre fuUy appear from
the averments of the bill disclosed by the
record now - before vs. The contract was
signed in duplicate. Is filed with the bill, as
Plaintiffs Exhibit No. 4, and is as foUows:
"Baltimoie, Md., 7/15/15.
"This agreement made thia 15th day of July,
1915, between Wm. Becker & Co., parties of the
first part, and the Frederick W. Lippg Company,
parties of the second part, all Of Baltimore city:
"Parties of the first part agree to purehaae
and parties of the second .part agree. to soil all
of their entire output of empty barrels, as they
run, no deductions to, be made for damaged
barrels, unless by mutual consent, prices as fol-
lows: • •'
CondenMd milk oak barrelai ; .'..... (1.00
Soft wood oDDdessed milk b«rr*U 60
Olucoso barrels 90
Headdown glucose barrels .75
Bingrle bead glacose barrels .60
Qraln- alcohol and spirit barrela. 1.00
Olive oil and cotton seed barrels 1.00
Engine, cylinder, dynamo oil barrels 8E>
Double head sugar barrels .20
Damaged and single bead sugar barrels IS
Cocoaout, originally augar barrela....... IS
"And all other empty packages not mentioned
above to be accepted at the ruling market prices.
"The parties of the first part guarantee the
above prices for one year from date, and agree
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to promptly remore oil barrels when notified by j
the partiei of the second part.
"Witness the signature of the parties of the
first part and the parties of the second part
duly authorized to sign this agreement.
"Terms: Cash on delivery.
"Accepted August 5, 1915.
"The Frederick W. Lipps Oa, [SeaL]
"By Frederick W. Lipps, Pres."
The bill alleges that the defendant failed
to deliver to him the entire output of empty
sugar barrels, as under the contract It was
required to do, but has at all times refused
to deliver any of said barrels, although often
demanded so to do; that the defendant has
broken the contract, and as a result thereof
the plaintiff has suffered a very substantial
loss and damage therefrom.
The bill then alleges that the plaintiff has
no way or means of ascertaining what num-
ber In fact constituted the defendant's en*
tire output of sugar barrels for the period
of one year mentioned in the contract be-
cause the facts and the means of ascertaining
them are in the exclusive keeping and pos-
session of the defendant
The prayer of the bill is, in substance,
that a court of equity decree a discovery, an
accounting, and the defendant also be de-
creed to pay the sum ascertained to be due
the plaintiff as damages for a bread) of the
contract, and such other and further relief
as the ca;ae may rcQuire.
It is contended upon the part of the de-
fendant in support of the demorrer that the
plaintiff's relief or remedy. If any, is an ac-
tion at law for the recovery of damages for a
breach of contract ; that a court of equity is
witbont Jurisdiction to entertain this bill, and
the plaintiff ought to be left to his remedy at
law.
On the other liand. It Is urged by the
plaintiff that the Mil is one for an account-
ing and a discovery, and that a court of eq-
uity has concurrent Jurisdiction to hear and
determine the case under the averments of
the Idll. The doctrine is well settled in this
state that, where a party has a certain, com-
plete, and adequate remedy at law, he can-
not sue in equity. The cause of action in
this cases it will be seen, is clearly and pri-
marily a legal one, arising from the nonper-
formance of a contract to deliver sugar bar-
rels, and for the breach of which damages
are sought to be recovered by the plaintiff
from the defendant
[1] In such cases, where the right of ac-
tion is not dependent upon or based upon
some equitable matter such as fraud, mistake,
accident, trust, accounting, or the like, and
the legal remedy would be complete, sufiB-
dent, and certain, courts of equity have no
concurrent Jurisdiction, and will not inter-
pose. 1 Pomeroy, Bq. Jurisprudence, |i 17S-
236; Price v. Tyson, 3 Bland, 399, 22 Am.
Dec. 2T9; Powles v. Dllley, 9 Gill, 238;
Taylor v. Ferguson, 4 Har. & J. 46.
In Oliver v. Palmer. 11 GUI & J. 444, It
is said, U In a case like the present, where
the dalm asserted Is stilctly legal In lt»
form and substance, where the remedy at
law Is expeditious and ample, you grant to
the court of equity the power ascribed to It
upon the principles upon which it is daimedr
there Is scarcely a case resting in contract
and now cognizable in a court of law whidt
may not be drawn into the vortex of chan-
cery Jurisdiction.
[2] It is quite certain that the bill In this
case cannot be sustained or maintained as a
suit in equity for an aocoanting. Its alle-
gations are not audi as to bring It vitbln
that class of cases where a court of equity
will take Jurisdiction for an account Mil>
ler's Equity, | 721, p. 823; 1 Pomeroy, Eq-
uity Jurisprudence, { 230; Taylor v. Fergu-
son, 4 Har. & J. 46. But It Is insisted on the
part of the appellant that the bill is framed
for discovery, as well as for relief, and the
court, being righUy in possession of the
cause, will proceed to determine the whole
matter In controversy.
[3] There are cases where a discovery may
be had not only to support an action at law,
but as auxiliary to the maintenance of a
suit contemplated to be brought but they are
cases where the discovery is essential and
absolutdy necessary to the establishment of
the plaintltTs rights, and the information
cannot be otherwise attained. Wolf ▼. Wolf,
2 Har. & J. 382, 18 Am. Dec. 313; Parrott ▼.
Ohestertown Bank, 88 Md. 615, 41 AtL 1067 ;
Heinz v. German Bldg. Ass'n, 95 Md. 160, 51
AtL 951 ; Union Passenger Railway Co. v. M^
& C. C, 71 Md. 238, 17 AtL 933.
The general principle is stated in Russell
V. Clark, 7 Crancfa, 90, 3 L. Ed. 271, as fol-
lows:
"It la true that, if certain facts essential to-
the merits of a claim purely legal be exclusively
within the knowledge of the party against whom
that daim is asserted, he may be required in
a court of chancery to disdose those facta, and
the court being tnus rightly in poBsession of
the cause, will proceed to determine the whole
matter in controversy."
In Phelps' Juridical Equity, 169, it is said
that not much stress is now laid npon the
auxiliary Jurisdiction of courts of equity,,
meaning the power to compel discovery, pro-
duce docnments, etc, since those powers
have been by statute conferred upon the
courts of law, and the necessity for the aux-
iliary Jurisdiction may be said to be prac-
tically almost entirely superseded, although
still occasionally resorted ta 1 Pomeroy.
Bq. Jur. ii 83, 124, 143. 215: artide 75. tf
98, 90, and 100, Code P. O. Laws.
In the present case the discovery son^t
by the bill was a detailed statement of the
number of sngar barrels constituting defend-
ant's entire ou^nt for the year beginnings
July 16, 1915, and ending July 15, 1916, and
that the defendant be required by decree of
this court to pay the plaintiff the sum as-
certained to be due.
[4] It is clear that the discovery prayed
for in the bill would have been aTallable to
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WIIiHELK Y. MITCHBLL
785
the plaintiff, under article 75, |{ 99 and 100,
of tbe Code In a court of law, where tbe
mode of procuring the production of books,
papers, and testimony Is provided for In as
ample a manner as In a court of equity, and
where there Is an adequate, complete, and
anffldent remedy pointed out by law, courts
of equity will not Interpose.
For the reasons which we have stated, we
do not think the appellant has made out such
a case as entitles him to relief In a court of
equity, but that his case Is properly cogniza-
ble in a court of law.
The order of the court below sustaining
the demurrer and dismissing the bill will be
affirmed.
Order affirmed, with costs.
(131 Hd. 868)
WILHEI/M T. MITOHBLIi, (No. 22.)
(Court of Appeals of Maryland. Aug- 11> 1917.)
CODBTS «=>184— COtJNTT COTJBTB— SUFTICIBN-
CT OF Declabatioit.
Under section 18g of the "Speedy Judgment
Act" for Baltimore comity (Acts 1894, c. 631,
as amended by Acte 1912, c. 385, AcU 1914, c.
817, and Acto 1916, c 184), providing that
plaintiff shall not be entitled to judgment un-
lesa in an action founded upon an implied ccm-
tract he state - the particulars of the indebted-
ness, a declaration on the common counts for
a physician's services, two of the items being,
"To amount of account rendered August 31,
1907, $183," "to amount of account rendered
May 6, 1908, $29," without disclosing to whom
tbe accounts were rendered or the nature of the
indebtedness or when it was incurred, gave the
court no jarisdiction to enter judgment thereon.
Appeal from Circuit Court, Baltimore
County; Frank I. Duncan, Judge.
Action by Dr. A. B. Mitchell against Clar-
ence M. Wllhelm, administrator of Mary J.
Wllhelm, deceased. From an order of the
circuit court for Baltimore county overruling
a motion to strike out a Judgment in favor
of the plaintiff, defendant appeals. Beversed,
and new trial awarded.
Argued before BOYD, a X, and BUBKB,
THOMAS, PATTISON, URNKB, and
STOOKBRIDGB, JJ.
O. Parker Baker, of Baltimore, for appel-
lant. T. Scott Offutt, of Towson (John Mays
Little, of Towson, on the brief), for appellee.
PATTISON, J, This is an appeal from an
order of the circuit court for Baltimore coun-
ty, overruling a motion to strike out a Judg-
ment entered in favor of the appellee against
the appellant.
The siiit in which the Judgment sought to
be stricken out was rendered, was brought
on May 26. 1916. under what is known as
"the Speedy Judgment Act" for Baltimore
county, chapter 631 of the Acts of 1894, as
amended by Chapter 385 of the Acts of 1912,
chapter 817 of tbe Acts of 1914, and chapter
184 of the Acts of 1916.
The declaration contained the common
counts only, and with it was filed the follow-
ing account or cause of action verified by the
affidavit of the plaintiff:
Monkt<m, Md., March 27, 1916.
Estate of Mrs. Mary J. Wilhelm, to Dr. A. R.
Mitchell, Dr.
To amt of acct. rendered Aug. 81,
1907 $183 00
To amt of acct. rendered May 6,
1908 28 00
To subsequmt attention as fed-
lows:
1908, May &
1912, May 28.
1915. Feb. 15. Feb. 26, Feb. 27,
fS. 28 8 25
$219 45
$10 00
10 00
8 00
25 00
Credito:
1909, June 21, cash
Oct. 28, cash
1910, Aug. 2, cash
Aug. 29, cash
Balance $166 46 $53 00
1916 Feb. 23 by check on account 53 00
The defendant being duly summoned, but
falling to appear and plead to the declara-
tion within the time prescribed by the stat-
ute, the plaintiff filed his motion in writing,
as provided by the act, asking "the court to
enter a Judgment by default against the de-
fendant for want of proper plea, affidavit,
and certificate, as required by the statute
in such case made and provided and • • •
to extend said Judgment." Upon this mo-
tion a Judgment was entered by order of the
court. Thereafter the defendant filed his mo-
tion to strike out the Judgment so entered,
assigning as one of the reasons therefor the
insufficiency of the account under the provi-
sion of the act, under which the action was
brought and the Judgment rendered. This
motion was overruled, and it is from the ac-
tion of the conrt in overruling it that this
appeal is taken. The act provides (chapter
631, i 18g, of the Acts of 1894), that the
plaintiff shall not be entitled to Judgment
under the provisions of said act, "unless at
the time of bringing his action, he shall file
bis declaration, with an affidavit, or affirma-
tion, • • • stating the true amount the
defendant is indebted to him over and above
all discounts, and • • • if the action be
formed upon a verbal or implied contract
shall ffle his statement of the particulars of
the defendant's indebtedness thereunder."
Tbe account, as stated above, is the only
cause of acticm that was filed In the case,
and should it be found that it does not meet
the requirements of the statute, in that it
fails to give a statement of the particulars of
the defendant's indebtedness, tbe plaintiff
was not entitled to Judgment by default un-
der the aforesaid statute, and the court was
without Jurisdlctioa to enter the Judgment,
and its Irregular entry could in no way aid
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did.
or supply that want of Jurisdiction. ThlU-
man v. Shadricfc, 69 Md. 530, 16 Atl. 138. As
stated In Adler t. Crook, 68 Md. 494, 13 AtL
153:
"The object of the act was, in cases to which
it applied, to obtain from both plaintiff and
defendant a definite and sworn statement of both
the claim and the defense (if any) so that the
parties might know exactly wherein they dif-
fered and shape their actions accordingly."
It will be seen from an examlnntion of
the account which Is dated March 27, 1915,
that It contains but three debit Items,
amounting In all to $219.25. Two of these
Items aggregate |211, and are stated as fol-
lows:
To amt. of acct rendered Aae. 31, 1907 $183.00
To amt of acct. rendered May 6, 1908 28.00
It appears from these items that two sep-
arate accounts were rendered to some one,
but to whom they do not disclose, nine and
eight years, respectively, before the Institu-
tion of this suit. It is not shown by the
account filed what these accounts so render-
«d contained, and there Is nothing in the
Items themselves showing the nature and
character of the alleged indebtedness or
when the same was Incurredi, To us It Is
clear that the account as filed does not set
forth the partlcnlars of such alleged indebt-
ednesa as required by the statute, and there-
fore the Judgment was, in our opinion,
wrongfully entered under the statute, and
should have been stricken out under the mo-
tion filed.
It Is contended by the appellee that as the
defendant was regularly summoned and fail-
ed to file his plea, the plaintiff, irrespective
of the statue, was, at the time of the entry
of the Judgment, entitled, under the rules of
the court, to a Judgment by default for want
of such plea, and therefore should it be held
that the Judgment could not have been prop-
erly entered under the statute, for the rea-
son here assigned, its entry was proper under
the rule of the drouit court, because of the
failure of the defendant to file his idea.
The rules of the court below are not be-
fore us, but whatever may be said of the
pialntUTs rights thereunder to a Judgment by
default for want of a plea. It is clearly
shown by the record that the Judgment was
not entered under such rule of the court, but
was entered under the statute (chapter 631
of the Acts of 1894), as amended by the sub-
sequent acts named above and as we have
said was wrongfully entered thereunder.
Holding as we do that the court. was In
error in Its' refusal to strike out the Judg-
ment, Its rulings will be reversed and fl new
trial awarded so that the Judgment wrong- '
fully entered may be stricken out and an
opportunity given to the defendant to present
his defense upon the merits.
Judgment reversed, and new trial awarded. ■
cm Ud. 31S)
BOABD OF POIiICEl OOMR8 ▼. McCLENE-
HAN. (No«u 58 to 67.)
(Court of Appeals of Maryland. Jane 28, 1917.)
1. Statutes «=»76(2)— Local Laws— Atpu-
CABIUTY OF EXISTINQ LAWS.
Acts 1914, c. 600, Acte 1906, c. 63, Acts
1900, c. 5(50, Acts 1908, cc. 92, 192. Acta 1902,
c. 280, Acta 1914, c. 493, Acts 1906, c. 335,
Acts 1914, c. 486, Acts 1904, c. 682, and Acts
1916, c. 212, directing the board of police com-
missioners of Baltimore to pension a retired
matron of the station house, tue widow of a de-
ceased member, and certain ex members of the
police force, are not in ciKifiict with Const, art.
3, i 33, prohibiting the passage of any special
law where provision has been made by eustiug
law; such pensions not being payable under
the pension laws existing at the tune the several
acta were enacted.
2. MUNICIFAI. COBPORATIONS «=»187 — PKK-
sioNs— Statutii>-Discbetion.
Although Acte 1906, c. 63, authorizing the
police commissioners of Baltimore to pension
a former policeman, was discretionary, and not
mandatory, where the matter had been acted
upon by the board then in office, subsequent
boards could not revoke it.
Appeals from Superior Court of Baltimore
City ; James M. Ambler, Judge.
Ten petitions fon mandamus by E. £L Mc-
Cleuehan and nine others against the Board
of Police Commissioners. The court ordered
a writ of mandamus to issue in each case,
and the B«ard appeals. Order affirmed in
each case.
Argued before BOYD, C. J., and BBJS-
COB, BUBKB, THOMAS, PATTISON,
UltNER. STOCEBBIUGE, and CONSTA-
BLE, JJ.
Ogle Marbury, Asst. Atty. Oen., and Al-
bert C. Ritchie, Atty. Gen., for appelant.
Isaac Lobe Straus, of Baltimore, for appel-
lees.
BOYD, O. J. Ten cases were by agree-
ment of the parties and with the consent of
the court bound in one record, the main ques-
tions being involved In all of them. Each of
the ten appellees filed a petition for a man-
damus against the board of police commis-
sioners of Baltimore dty to require that
board to obey the provlMons and directions
of one or more acts of the General Assembly
of Maryland named in the petition, and to
pay the petitioner the sum named In such
act or acts. The main defense relied on in
the answers was that the acts were special
laws prohibited by article 3, { 33, of the
state Constitiition, and were therefore un-
constitutional and void. Agreed statements
of facts were filed in the cases, and the low-
er court ordered a writ of mandamus to is-
sue in each case, and gave Judgment for the
petitioner for costs. Appeals from those sev-
eral orders and Judgment are now before us.
Chapter 459 of the Acts of 1886, being sec-
tion 755 9f article 4 of the Local Code of
1888, provided that:
"All sums of money which are now in, or
which may hereafter come into the hands of
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BOARD OX" POLICE COM'BS v. MoCLENEHAN
787
the lioard of poUc« ccnmnusioiiers for the dtr
of Baltimore, onder and by virtue of the provi-
sions of existing laws, except such sums as
may come into their bands under and by virtue
of the provisions of section 728 shall constitute
a fund to be known and accounted for as the
special fund."
Tbat l8 section 776 of the new charter, and
is under subtitle "Special Tund." Section
728 (747 of revised charter of ldl5) referred
to money received from taxes, and In case of
a deficiency the board was authorized to Is-
sue certificates and raise therefrom a sum
not exceeding $50,000 to meet the exigency.
The board has large powers. Including the
appointment of the police force, detectives,
matrons, etc.
Section 756 of article 4, being Acts 1886,
c. 458, as amended by Acts 1888, c. 306, pro-
vided that, in addition to the sums of mon-
ey authorized by law to be paid out of the
special fund, the board, whenever in their
opinion the efficiency of the service required
it, were authorized to retire any officer of
police, policeman, detective, clerk, or turnkey
appointed by them, and pay him out of said
fund, in monthly installments a sum not to
exceed one-third of the amount monthly paid
to him at his retirement, provided be had
served faithfully not less than 16 years, or
shall have been permanently disabled In the
discharge of his duties, and the board was re-
quired to procure and file among their rec-
ords a certificate of a competent and reputa-
ble physician that the person proposed to be
retired had been thoroughly examined by
him and was incapable of . performing active
police duty, etc. That section was amended
by several acts, so that as it is now in the
revised charter of 1915 it provides for pay-
ment of a sum equal to one-half of that
paid at retirement, provided he had sensed
for not less tlian 20 years, and some other
changes were made. That section (75^ in
the new charter of 1S9S is on a different sub-
ject, and section 777 is the number of the
one relating to retirement of officers of police,
policemen, detectives, clerks, and turnkeys,
but both sections 756 and 777 are in the revis-
ed charter. Section 756 in the revised char-
ter requires those retired to perform such
X>olice duties as the board requires, not to
exceed seven days during any year, for which
service no compensation is to be paid by the
board. Section 756A (revised charter), added
by Acts 1012, c 189, authorizes the board to
retire any officer of police, policemen, detec-
tive, clerk, or turnkey appointed by them
who may be Ineligible In the way of length
of service to retirement on pay for life as
provided by section 756, and who has served
faithfully and has become permanently in-
capacitated from active duty, and to pay
him out of the special fund a sum not ex-
ceeding one year's salary allowed by law to
him at the time of Ids retirement, provided a
certificate is obtained trosn a majority of the
police physicians of Baltimore city tbat he
has been examined by them and tliat he is
incapable of performing active duty.
Section 776 in the revised charter is the
same as section 755 quoted above from article
4 of the Code of 1888. Section 776A (Acts
19(X), c. 266) makes the board of police com<
missioners trustees of the special fund. Sec*
tlon 776C states in detail what the special
fund shall consist of — amongst other things,
of 2 per cent of the salary or pay of the
police force entitled to participate in the spe-
cial fund. It provides that it shall be op-
tional with any member of the police force to
contribute the 2 per cent, but that no mem-
ber shall x>srticipatB in the special fund un-
less he does so contribute. The confusion
arising from having two sections of the char-
ter as much alike as 756 and 777 seems to
have begun in 1886. The new charter la
chapter 123 of the acts of that session, and
in that what was section 756 of article 4
in Code of 1888 was made section 777, but
chapter 494 of the Acts of 1888, evidently
drawn before the new charter was passed.
In amending the provision for retirement re-
ferred to it as section 756. Then chapter 233
of Acts of 1900, chapter 81 of Acts of 1902.
chapter 391 of Acts of 1910, and chapter 189
of Acts of 1912 continued to refer to it as
section 756. Then chapter 667 of Acts of
1912, 'which is the last act signed, referred to
the fact that chapter 391 of Acts of 1910 had
erroneously stated the section to be 756 in
lieu of 777, the correct number Intended to be
amended, and repealed and re-enacted as 777.
It would seem therefore to be clear that sec-
tion 777 as amended by chapter 567 of Acts
of 1912 is now the statute in force on the
subject, and, in so far as there is any Con-
flict between it and what was called section
75G In above statute, section 777 must pre-
vail. It could not have been Intended to have
two such sections in the charter. We need
not therefore trouble ourselves with section
756, although there is not in the main much
di (Terence between them so far as can apply
to this case excepting as to the time of serv-
ice.
Section 777A (being Acts 1906, c. 456) In-
cludes superintendent of matrons and ma-
trons of station houses within the provisions
of section 777, so that they may enjoy the
same rights and privileges and benefits, sub-
ject to the same limitations and conditions,
as those conferred for the retiring of mem-
bers of the police force, provided they pay
to the special fund $10 per annum for three
years, in addition to the regular percentage
required "under the special pension act"
Section 777B Included the secretary and as-
sistant secretary of the board within the
provisions of section 777, provided the secre-
tary paid $300 and the assistant secretary
$150 in three equal Installments to the "spe-
cial fund." Section 777Ba (Acts 1900, c 263)
directed the mayor, etc., of Baltimore, upon
the request of the board, to appropriate an-
nually a sum of money foe the relief of dis-
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101 AXLAin?IO BEPORTBB
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abled and superannuated members of tbe
police force, and for the relief of widows
and children of policemen killed In the dis-
charge of duty, when the special fund was not
sufficient for the payments authorized by the
act of the General Assembly heretofore pass-
ed. Proyislons under the subtitle "Special
Fund" are made in sections 776 to 780, In-
cluslve, but we will not refer to the others.
Having thus referred to what tbe appellant
calls general laws on the subject, without
deeming It necessary to enter upon a discus-
sion as to whether they are general or spe-
cial, and for the purposes of these cases as-
suming th«n to be general, we will now con-
sider the several statutes passed for the
benefit of the appellees.
1. Mrs. B. B. McClenehan.
[1] The first case In the record Is that of
Mrs. McClenehan. She was appointed ma-
tron on January 28, 1900, and continued in
that capacity until the 9th day of July,
1912, when she was dismissed by the board,
aftef an examination of physicians, who
said she had Bright's disease and rheuma-
tism, without any provision for future pay.
She paid $30, being for the three years as
required by section 777A, and the 2 per
cent of her salary from the year 1906 .(when
matrons were Included) until she was dis-
missed. Chapter 600 of Acts of 1914, after
stating in the preamble that she had con-
tributed to the pension fund and was ob-
liged to retire on account of serious illness,
whereby she had been incapacitated from
work and from earning a livelihood, direct-
ed the board to pay her $7.50 a week dur-
ing her life out of the special fund. She
had not been in service for 16 years, as re-
quired by section 777. It is contended by
the appellant that section 756A governs her
case, and leaves it discretionary with the
board, but It would seem clear that that
section does not apply. That was passed in
1912, six years after matrons were given
the privileges of section 777, but expressly
limits the relief to "any officer of police,
policeman, detective, clerk or turnkey," aind
does not Include matrons. There was then
no general law in existence when the act
of 1914 was passed which Included Mrs. Mc-
Clenehan.
The question then is whether such an
act was in conflict with article 3, 8 33, of
the Constitution. It provides that:
"Tbe General Assembljr shall pass no special
law for any case for which provision has been
made by an existing general law."
It seems to us clear that the board had
no power under the "general laws" in the
charter to pension Mrs. McClenehan. As
then they were not authorized to allow her
a pension under those laws, It cannot be
said that the constitutional provision above
quoted prohibits the passage of such a stat-
ute as tbe one passed tor her benefit. It
may be that the Legislature was not willing
to pass a general law allowing the board
to pension matrons who left the service by
reason of Ul health, but were not permanent-
ly disabled in the discharge of their dut7,
and had not served the time required by
section 777 — ^16 years. Indeed, section 756A
Indicates that it deemed it proiter to permit
tbe board to retire an "officer of police, po-
liceman, detective^ clerk or turnkey" ap-
pointed by them who was ineligible in the
way of length of service to retirement on
pay for life under the requirements of sec-
tion 756, and had served faithfully and had
become permanently Incapacitated from ac-
tive duty, but it was not willing to Include
matrons, and hence did not provide for
their retirement by reason of sickness. It
did not give them the benefit of the special
fund at aU nntU 1906.
There are many decisions of this court
which Indicate that such a special provi-
sion for a particular person named as is
made by this act does not come witliln the
prohibition. If there had been no such
statute as section 756 or 777, we can see
no reason why this act could not have been
passed, and if we are correct in the conclu-
sion that neither of those statutes embrac-
ed her case. Is It not Just as if there was no
such statute? In Pumphrey v. Baltimore.
47 Md. 145, 28 Am. Rep. 446, Acts 1676, c.
220, required the mayor and dty council oC
Baltimore to take charge of and maintain as
a public highway a bridge known as "Har-
man's Bridge." On their refusal to do so
Pumphrey filed a petition for a mandamus
to compel them to do so. Amongst other de-
fenses this provision of the Constitutioa
was relied on. Tills court said, through
Chief Judge Bartol:
"In the public local laws relating to Balti-
more city no provisicm is made for the acquisi-
tion of the bridge in question, and the ascer-
tainment of the amount to be paid to the own-
ers in the manner contemplated and directed
by" former acts referred to.
It was held that the act was constitu-
tional and valid. In O'Brlan & Ca v. Coun-
ty Com'rs of Baltimore County, 51 Md. 15.
the Legislature passed a special act In ref-
erence to the opening of Wllkens avenue.
The defense was taken that the General
Laws provided a mode for the opening of
any new road, or tbe widening, straighten-
ing, altering, or closing up an old road. Tba
court said:
"As recited in the preamble, there were spe-
cial circumstances in the case of Wilkens ave-
nue requiring special legislation in regard there-
to;' and as the purposes of the act could not
he accomplished under any existing general law,
its enactment was, of course, not within tbe
prohibition contained in the Constitution (arti-
cle 3, i 33)."
In Hodges ▼. Bait Pass. Ry. Ca, 58 Md.
603, It was held that as there was no gen-
eral law conferring the rights and prescrib-
ing the terms and conditions on which the
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BOARD OP POLICE COM'KS v. MoOLENBHAK
789
defendant was to constnict and operate Its
raflway on certain streets in the dty ot
Baltimore, the act then In question was not
in conflict with this section of the Constitu-
tion. In Gana v. Carter, 77 Md. 1, 25 AU.
663, it was cMitended ttiat the powers giv-
en to the Fidelity & Deposit Company to be-
come sole surety in all -cases where two or
more sureties were required, etc^ was a
special law, within the meaning ot this
section, but this court held that, as there
was no general law providing for corporate
security in such cases, the act was valid.
See, also, Revell v. Annapolis, 81 Md. 1, 31
Aa 695, Baltimore v. United Ry. & E. Co.,
126 Md. 39, 94 Atl. 378, and other cases
where this provision of the Constitution has
been passed on. The cases relied on by the
appellant are clearly distinguishable from
this. In Prince George's County v. B. & O.
R. K. Co., 113 Md. 179, 77 AU. 433, there
was a general law clearly covering the cross-
ings involved. So in the case of Baltimore
V. Starr Church, 106 Md. 281, 67 Aa 261,
the exemption was invalid because the stat-
ute was within this provision of the Con-
stitution, and for other reasons.
It is true that there are a number of sec-
tions in the charter which relate to pen-
sions for policemen and others, but they are
only allowed on certain conditions. If a
worthy person does not come within those
provisions, it cannot be properly said that
an act cannot be passed to provide for his
or her case, any more than it can be suc-
cessfully contended that the great amount
of legislation which has been passed con-
ferring special powers on corporations which
are not granted by the general laws are
invattd. That has been done over and over
again, without a suggestion that they were
not valid. The General Corporation Laws of
1868 provided that:
"No corporation shall possess or exercise any
corporate powers, except such as are conferred
by law, and such as snail be necessary to the
exercise of the powers so acquired." Article 23,
i 56, of Code of 1888; article 23, f 64, ot Code
of 1004. .
And it was oftentimes exceedingly doubt-
ful whether a corporation had under the
general laws some special power It desired
to exercise, and hence numerous acts were
passed to confer such powers. Sections 756
and 777 empower, but do not require, the
board to retire those provided for in them.
It would be carrying the meaning of sec-
ti(m 33 of article 8 of the Constitution very
far to say that by reason of such sections
the Legislature could not pass an act re-
quiring the board to retire on pay a certain
person or persons which the Legislature
thought should be retired. The Legislature
never Intended to abandmi all control over
the board in such matters, as is shown by
the many statutes on the subject Of course,
when there is a general statute covering the
particular case, another question may arise.
but we are satlsfled that there is no dUBcul-
ty In this case.
2. William P. Gerwig.
The next case Is that ot William F. Ger-
wig. He was appointed on the police force
October 21, 1899, and appointed a regular
patrolman December 7, 1900. In January,
1904, whilst in the discharge of his duty, he
sustained a fall, striking his spine on his
revolver In his hip pocket On September
6, 1904, he was dropped from the police
force because of his Injury and disability.
It appeared to the board then in office that
the incapacity was produced by spinal trou-
ble of long standing, and not from an in-
Jury occurring in the performance of his
duty. By Acts 1906, a 63, it was provided:
"That if the police commissioners of Balti-
more city, after a careful examination, are sat-
isfied It is proper, they are hereby authorized
and empowered to pay Mr. William Frederidc
GerwiE, a former policeman of the police force
of Baltimore city, out of the funds in their pos-
session or subject to their control, a weekly
pension of nine dollars ($9.00), payable on the
last day of each week."
It is agreed that from and after the pas-
sage of that act the board regulaf'ly and
continuously paid to him the sum of $9 a
week imtil he received the letter of the sec-
retary of the board dated September 8, 1916,
notifying him that the board considered the
act unccmstitutlonal, and therefore would
make no further payments to him. It Is
clear that there was no general law which
covered his case.
[2] It is contended, however, that the act
itself was not mandatory, but was in the
discretion of the board. While that is cor-
rect, the board did exercise its discretion,
presumably after careful examination as the
act provides. There is nothing in the act
to indicate that the intention of the Legisla-
ture was to leave It to the discretion of
each board from time to time, but, having
been acted on by the board then in office,
It was not longer in the power of subse-
quent boards to revoke it, merely as an ex-
ercise of their discretion. If that were so
in reference to what we speak of as the
"special acts," it would likewise be so under
section 777 and section 756, if that is still
of any force. They leave it to the determi-
nation of the board in the first place, "when-
ever, in their opinion the efficiency of the
service may require it to retire any officer
of police, policeman," ete., and they state
the grounds upon wUch they may suspend
payment or dismiss the party. It seems
clear to us that it was left to the existing
board, and was not intended to leave It to
the discretion of each succeeding board as
to whether the pay should be continued.
Moreover, the action of the bo&rd, as shown
by the letter ot the secretary, was upon
the ground that the act was unconstitution-
al, and' it was not pretended that It was
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101 ATIiANTIG REPORTER
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done nnder a dalm of discretion In the
board.
8. Manno A. Behrens.
Behrens was appointed a patrolman up-
on the police force In 1S79. It Is admitted
that he would have testified "that upon the
21st day of August, 1899, the petitioner was
virtually dismissed for partisan political
reasons • • • without any provision for
a pension or any other allowance." By
chapter 560 of the Acts of 1900 the board
was authorized and directed to pay ijenslons
to the three persons named (including Behi^
ens) "who were permanently disabled in the
discbarge of their duty as such policemen"
out of the funds in their hands known and
accounted for as the "special fund" the sum
of $9 during the term of their respective
lives. Then by Acts 1916, cb. 212, the board
was directed to pay Behrens for the rest
of bis life out of the "special fund" a week-
ly pension equal to one-half of the weekly
pay of a regular patrolman, in lieu of any
pension now being paid him under any law
theretofore enacted. The board having dis-
missed the petitioner, he was not a member
of the force, and hence the board could not
place him on the pension list He bad serv-
ed 20 years, faithfully as he claims, and
was dismissed for "partisan political rea-
sons," as shown by the agreed statement
There was no general law In force author-
izing his reinstatement, and the Acts of
1900 and 1916 cannot therefore be said to
be contrary to article 3, { 33, of the Constitu-
tion.
4. George A. Grimes.
Grimes was a police officer from April 14,
1884, until November 11, 1906, when he was
dismissed for being off his post and in an
eating saloon for ten minutes. He had regu-
larly paid the 2 per cent of the salary re-
ceived by him. By Acts 1908, ch. 192, the
board was directed to pay him a weekly
pension of $9. That was paid until Sep-
tember, 1916, when he received the notice
from the secretary that it would not Ion*
ger be paid. There was no general law cov-
ering his case.
5. Edward F. Meehan.
He was appointed a patrolman in 1881,
sergeant in 1886, and in January, 1896, a
round sergeant On July 12, 1897, be was
dismissed by the l)oard without any provi-
sion for pension. It was contended by tdm
that he was Innocent of the charges and was
dismissed tor partisan political i-easons. By
Acts 1908, ch. 92, the board was directed
to pay him fl2 per week for life. It paid
him regularly until September, 1916, when
he was notified by the secretary that it
would no longer be paid. We are informed
by the appellees' brief that he has died since
ibe decision below, ai)d of course ills rep- '
resentative will only be entitled to the
amount due from the time fhe payments
ceased until his death. No proceedings were
taken to make his persmal representative a
party to this case, but we assume that will
not be required by the appellant
6. Loiois V. Faff.
He went on the police force June 1, 1888,
and was employed as a driver of a patrol
wagon. In July, 1890, he was run over by
the patrol wagon and seriously injured. He
suffered, but continued to woric from time
to time until finally he became in such con-
dition that he resigned. The tmard accept-
ed his resignation on May 10, 1898, without
providing for any compensation. By Acts
1902, ch. 280, the board was authorized in
their discretion to pay him $9 per week, and
by Acts 1914, ch. 493, they were directed to
pay him $10 per week. It is alleged that
the first act was discretionary. That is
true, but the board regularly paid him, un-
til September, 1916, and what we have said
above is sufficient as to that Indeed, be-
fore he applied for the first act he notified
the board of his intention to do so, and the
secretary replied that the board bad made
inquiry as to his injuries and believed his
was a worthy case and would do nothing to
oppose legislation to put him on the retired
list with pay. Apparently they only wanted
the power widcb they thought they ddd not
have.
7. Louis F. Norris.
He was appidnted a patrolman August 25,
187S, and he continued in service until Fel>-
ruary 2, 1887, when he was dismissed for
being found asleep in a chair at 3:10 a. m.
in a hotel upon his beat On January 10.
1SS6, he fell on the ice while patroling hia
beat and dislocated his left arm at the ti-
bow, since which time he was crippled. He
was included in chapter S60 of the Act of
1900, referred to in the case of Manno A.
Behrens. After that act he was regnlariy
paid $9 a week until September, 1916. Hav-
ing been dismissed, there was no provisloD
in the General Laws for reinstating Mm, ao
as to get the benefit of the pension, and he
had not served the regular time.
8. Kate Spitznagle.
She is the widow of Charles Spitznagle,
who was appointed on the police fbrce on
January 1, 1893. He died suddenly Decem-
ber 25, 1906, after a loag chase of a viola-
tor of the law, made in the performance of
his duties, either from a strcAe of paral-
ysis or heart failure, as a result of the
chase and arrest of the party. The recm^
of the police board show that he died ot
paralysis. The petitioner did not make a
formal request for an allowance, but Acts
1906, c. 335, authorized the board, in th^r
discretion, to pay her $9 per week during
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SUSQUEHANNA TRANSMISSION CO. OP MARTI/AND T. MURPHT 791
ber life That was paid her regnlarly nntn
September, 1918. The only general law
which could be claimed to cover her case
Is section 776D. That gives the board power
In Its discretion to pay to the widow of a
member of the police force who was killed
while In the actual performance of duty, or
who died In consequence of Injuries receiv-
ed while In the discbarge of duty, an al-
lowance until she remarried. It Is not nec-
essary to determine whether It could be
said that Mr. Spltznagle's death came with-
in the Intention and meaning of either of
those grounds. It might well be questioned
whether It did, but the board paid the
amount named In the act regularly from
the time of Its passage, and does not ob-
ject to the amount now, so far as the re<^
ord discloses, but relies on the constitution-
al objection referred to in the other cases.
Nor Is It necessary to consider whether the
fact that the special act pro^-ides for paying
during her life, and section 776B only until
she remarries. She Is still unmarried, so far
as the record shows. The t)oard in a worthy
case should not be supposed to rely on
purely technical reasons for granting or re-
fusing such allowances. The object of the
provision Is to make the service more effi-
cient, and if It be admitted that the board
had the discretion to allow a pension under
section 7760, and as the record, shows the
board did on April 23, 1906, grant her an
allowance of $9 a week, it may well be said
that it did so, acting within its discretion,
and, of course. If that section does not ap-
ply, there can be no valid objectiou to the
act of 1906, from what we have already
said.
9. Peter J. Patterson.
He served from September 12, 1S96, to
the 19th of February, 1913, when he was
dismissed on the charge of having entered
a saloon on other than police business, and
remaining there 12 minutes, and while there
drinking Intoxicating liquor. He denies
that he drank intoxicating liquor, but he was
dismissed vrlthout ^n. allowance or pension.
He paid tb«( 2 per cent, regularly while he
was in service. By Acts 1014, cli. 4S6. the
board was directed to pay him a weekly
pension of $11 per week, which was regu-
iarly paid untU September, 1916. There was
no general law covering his case, and what
-we have said in the other cases la sufficient
to Indicate our views.
' 10. Joseph J. Gilbert
He was appointed as a patrolman Janu-
ary 27, 1881, as sergeant August 5, 1884, round
sergeant April 19. 1894, lieutenant January
13, 1896, and on January 14, 1896, was ap-
(lointed captain. He was dismissed as he
claims, for partisan" political reasons, on
.Tuly 12, 1897, without ' any provision for
pension. By Acts 1904, c. 632, the board
was authorized to allow him a weekly pen-
sion of $15. That was paid regularly until
September, 1916. We find no provision for
allowing pensions when the board dismiss-
es, and hence there was no general law ap-
plicable.
We have thus gone at some length into
these ten cases, and, as we have above point-
ed out, we do not Bnd any "general law"
which can properly be said to Interfere with
the "special acts" referred to. We have
already explained that we did not deem it
necessary to discuss the point raised by the
appellees that these acts codlfled in the
Local Code on this subject are not "general
laws" within the meaning of article 3, g 33,
because, if they are admitted to be so, we
find none of what we have spoken of as
"special acts" coming within the prohibition
of that section of the CMistitntion.
We are not called upon to speak of the
wisdom of the Legislature in passing such
acts, although some of them would seem to
be peculiarly meritorious and Just. The par-
ties had paid regularly into the special fund,
which was intended for pulsions and some
other purposes. From the. view we take
of the article of the Ck>nstitutlon relied on
by the appellant, it becomes unuecessar}- to
discuss any of the other questions raised.
We will affirm all of the orders passed, in-
dndii^ the Meehan Case, as we have no
record of his death of which we can take
notice, and we assume that that will be ad-
Justed without making his representative
a party. If necessary, of course, that can be
done.
Order affirmed In eaxA of the ten cases;
the appellant to pay the cost& .
■ (la Md. MO)
SUSQUEHANNA TRANSMISSION CO. OP
MARYLAND v. >IURPHY et al.
(No. 71.)
(Court of Appeals of Maryland. June 28, 1917.)
1. Apfkai. awd Ebsok €=>836— Review —
Limitations.
The power of this court is limited to an ex-
amination of the record and a decision upon the
question whether the court committed any in-
jurious error of law in any of the rulings to
which defendant reserved exceptions.
2. Ni:ai,ioENCR ®s3l21(5) — Oohcubbehob
WITH Injury.
Where negligence is the basis of the action,
it is essential that plaintiff show that the neg-
ligence alleged and the iojuriea suffered eoncnr-
red.
•8. Tbiai, <8=>134— Questions fob Jubt.
It is the exclnsivp province of the Jury to
decide questions of fact.
4. Ei.EcTBiciTY «=»19(6)— Damaok fbov Fire
— PBOxntATE Cause — Kvidbwcb — Svtfi-
CIENCT.-
In an action against defendant electric pow-
er corporation for damages, held, tinder evidence,
that questions of its negligence in burning on
right of way and whether fire was the proximate
cause of the burning of plaintiff's timber and
fencing were for jury.
«=9For otber casu aee same topic and KEY-NUMBER in all Key-Numbered Olgesta and IndexA
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101 ATIAm'IO REPORTER
Qia.
5. Appeai. AiTD Ebbob 4=b971(2)— Evidence
«=>546— Qualification- or Expebts— Rk-
VIBW.
The amotmt of knowledge a witness must
possess before he can be allowed to testify as
an expert is largely for the trial court, and its
rulings will not be disturbed unless dearly er-
roneous.
6. EVIDENCB «=>643(3)— BZFEBTS— QUAUnOA-
TIONS.
Parties who had been engaged in the timber
business for about three years and were fa-
miliar with the prices of timber were competent
to testify to the value of the timber before and
after the fire.
7. Appeal asd Bbbob «s»1026— HABMLsas
Erhob.
Errors which are without injury will not
justify a reversal on appeaL
Appeal from Circuit Court, Baltimore Coun-
ty; Hon. Frank I. Duncan, Judge.
"To be officially reported."
AcUon by Thomas F. Murphy and another
against the Susquehanna Transmission Com-
pany of Maryland. Judgment for plalntifts,
and defendant appeals. Affirmed, with costs.
Argued <before BOYD, C. J., and BURKE,
THOMAS, PATTISON, DRNER, and STOCK-
BRIDGE, JJ.
T. Scott Offutt, of Towson, for appellant.
Elmer J. Cook, of Towson, and Thomas H.
Robinson, of Bel Air, for appellees.
BURKE, J. This Is an appeal by the de-
fendant below from a Judgment of $500 en-
tered against It In the circuit court for Balti-
more county. The defendant Is a corpora-
tion, and owns a right of way about 100 feet
wide through Harford and Baltimore coun-
ties to the city of Baltimore. Upon this right
of way are erected towers to which wires
and other mechanical devices are attached,
and used, for the transmission of electric
iwwer generated by a power plant located at
McCall's Ferry in the state of Pennsylvania.
The plaintiffs are the owners of land situated
In Harford county at a distance of about
2,000 feet from the defendant's right of way.
Up<A this land was a tract of timber In-
closed by a fence. Between their property
and the defendant's right of way, at the
location spoken of in the testimony, there
is located the land of Mrs. Streett and Albert
Berry, which land adjoins the plaintiffs'
property. Then intervenes some land, which
at the time of the injury complained of was
occupied by a man named Ayres. A part of
this land, adjoining that of Streett and Ber-
ry, was planted in corn, and the balance, cov-
ered with grass and weeds, was contiguous
to what Is spoken of by the witnesses as
Campbell's and Slade's woods. These woods
lay along and near the defendant's right of
way. In Slade's woods there was a pile of
rails between 300 and 400 in number and
some posts which belonged to a man named
Harmon. The evidence shows that Slade's
woods was rery much elevated above the
plaintiffs' land.
The declaration alleged:
"That on or about the 2d day of May, in the
year 1914, the servants, agents, and employes
of the defendant negligently set fire to dried
grass and weeds and bush^ Uiat were negli-
gently suffered by the defendant- to be and re-
main on its said right of way, for the purpose
of burning the same, at a time when a high
wind was blowing, and that the fire so negli-
gently started on said right of way was thence
communicated to the plaintiffs' timber and fenc-
ing, whereby and in consequence thereof a large
part of said timber was burnt and injured."
The defendant pleaded the general issue
pleas, and the case was tried before the
court and a Jury upon the Issues Joined upon
these pleas.
[1] During the progress of the trial the
defendant reserved 23 exceptions. Nineteen
of these were taken to the ruliogs of the
court upon questions of evidence, one to the
rulings on the prayers, and three to certain
statements made by the counsel for the plain-
tiffs in their arguments before the Jury. A.
motion for a new trial was made by the de-
fendant, which the court denied, and whilst
the counsel for the defendant complains that
the verdict was grossly excessive, he concedes
that this court has no power to grant him
relief on that ground. Our power is limited
to an examination of the record and a de-
dsloa upon the question as to whether the
court below committed any Injurious error
of law in any of its rulings. Before consid-
ering the exertions. It may be well to state
some matters about whidi there does not at^
pear to be any dispute. It is shown that the
plaintiffs were the owners of the property
mentioned in the declaration, and that on May
2, 1914, a Are broke out in the plaintiffs'
woods, burned over about 5 acres of their
land, injured the timber thereon, and de-
stroyed a large portion of the fencing which
inclosed the tract It Is also shown that
about noon on that day James Q. Parker, the
line superintendent of the defendant, directed
Csesar Hawkins and Walter Winder, two
men In the employ of the defendant and
over whom Parker had authority, to gather
Into plies and bum certain debris whidi was
laying upon the right of way of the defend-
ant and near to Oampb^'s and Slade's
woods. These men gathered up the dttrls
into piles, about 3 feet high and 5 feet wide
and about 6 feet apart, along the ri^t of
way and set them on fire. The Are from
these burning piles was communicated first
to Campbell's and then to Slade's woods, and
It destroyed the rails of Harmon, to which
we have referred, and for which loss the de-
fendant compensated him.
The disputed questions of foct were:
First, as to the character of the timber on
the plaintiffs' land, the extent of the injury
to the timber, and Its value before and after
the fire ; and, secondly, the extent of the fire
In Slade's woods, the direction and Tdodty
of the wind at the time of the fire; and,
thirdly, a question of law, raised by the de>
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SUSQUEHANNA TRANSMISSION 00. OF MABTLAND T. MURPHT
793
fondant's first, second, and third prayers,
■which sought to withdraw the case from the
Jnry, as to whether there was any testimony
■offered legally sufficient to show any negli-
gence on the part of the defendant, or any
legal connection between the fire started on
the defendant's right of way and the injury
suffered by the plaintiffs.
[2] As negligence is the basis of the action.
It was essential for the plaintiffs to offer ey-
Idence legally sufficient to show the negli-
gence alleged, and that the injuries sued for
bore the relation of cause and effect The
concurrence of both and the nexus between
them must be shown to exist to constitute
a right to recover. Benedict v. Potts, 88 Md.
66, 40 AU. 1067, 41 L. R. A. 47&
[3] It is not the provlnoe of this cotirt to
decide any question of fact That was the
exclusive province of the Jury. Eight wit-
nesses were called on behalf of the plain-
tiffs, viz.: W. Elijah SomervlUe, a surveyor,
Thomas F. Murphy, James G. Parker, Cor-
nelius F. Murphy, Albert Berry, Albert Ber-
ry, Jr., Edward I* Oldfield, and Benjamin
Garber.
A brief synopsis of the material portions
of the evidence of these witnesses bearing up-
on the questions presented by this appeal is
here given:
Mr. Somervllle-made a plat of the location
of the transmission line with reference to the
property of the plaintiffs, and made measure-
ments of the distance from the transmission
line to the Murphy property and of the tract
burned. He said the fire extended over a
little more than S% acres of the timber land,
and that the distance from Blade's woods to
the Berry and Streett land, which as we
bave said, adjoined the Murphy land, was
1,968 feet and that the distance from the
Slade land where this line of 1,968 feet was
measured to the defendant's right of way
was probably about 125 feet He testified
that the land slopes towards the Streett
property, and that at about the center of the
Slade land the elevation is from 50 to 75
feet above the Streett tract.
Thomas F. Murphy testified: That he
first noticed the fire about 2 o'clock p. m.
That it was "a terrible windy day."
"The wind sounded like a train of cars. It
was blowing from the west" That the fire
burned more than 5 acres of his woodland.
That he saw the smoke coming from the
Slade woods — coming from the west, direct
to his property. That the fence on the Berry
and Streett lines was; entirely destroyed.
That the timber on his tract was prlndpally
oak, white oak, and the very best of chest-
nnt ; thickly wooded, a splendid piece of tim-
ber. That the fire continued in his woods
nntll 6 o'clock, and killed the timber and the
young growth. That the timber was large
and marketable. He testified:
That he owned about 400 acres of land in that
neighborhood, and had been engaged in farming
for a nnmber of years, and that he had had ex-
perience in buying and selling timber and timber
land for over two years. "In Harford county
we bought 200 acres in the northern part of the
county near wliat is known as Oarea, and we
Imught 85 acres near the Roclu recently, and
we have been buying telegraph poles in all the
northern part of the country. He had been in
the timber business a little over three years.
Prior to that he had bonght several pieces of
land for himself with timber on it Tluit he
made bis own estimate of the lumber on a tract
They bought the timber for marketing it, cut-
ting it into different things, railroad cross-ties,
crossing planks, telegraph poles, bridge timber,
wagon wood, whatever we can market it in best
They furnish the county with considerable bridge
timber. In making the purchases of timber they
bought just the timber; the wood leave we call
it He inspected it before he bought it"
He further said he knew of sales of wood-
land in that vicinity. That be knew of sales
there. That he bad bought the timber on the
Wright property, which was about 8 miles
from his own. That be was familiar with
the prices 'of tlml>er, and that he had been
engaged in the timber business for the last
two or three years. That the day of the fire
was a windy day and very dry, and had been
dry for several daya
James G. Parker, the line superintendent
was caUed by the plaintiffs, and testified
that he ordered the men, Hawldns and Wind-
er, to bum the d6bris, but was not present
when the fire started in the Campbell and
Slade woods; that he gave the order about
11 or 11:30 a. m., and that at that time he
said the wind was blowing from the north-
east.
Cornelius F. Murphy testified that he re-
called the fire which occurred on May 2,
1914. He first noticed it about 1:30 or 2
o'clock; that it was a clear day, but very
windy. The wind was blowing at a high
gale. It was blowing a gale from Slade's
woods to the plaintiffs' woods. He could see
the smoke. The Slade land was higher than
bis own. His evldoice as to the kind and
character, quantity, and marketability of the
timber on the tract burned was corroborative
of Thomas F. Murphy. He said he had been
engaged in the timber business; that he
bought tracts, cat off the timber, operated a
sawmill, and sold the lumber; that be had
bought timber rights in the upper section of
Harford county, and that the effect of the
fire on the timber in question was to destroy
it; that it killed the trees.
Albert Berry said be was at his home
when he first saw the fire between 1 and
2 o'clock; that it was a very windy day;
tliat be saw an "awful smoke" in the corner
of the Slade property; that the wind was
blowing directly from Slade's woods, and
that there was a fire in that woods ; that the
fire was burning on the street property,
which was much lower than the Slade woods,
and spread to the Murphy tract; that it
burned fencing on his and the Murphy tract,
and spread into the Murphy land.
Albert Berry, Jr., said he saw the fire la
Slade's woods between 12:30 and 1 O'clock-
and testified that:
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794
101 ATIAMTIO RBPORl'KR
(Md.
"That is the woods np by the Susquehimna
Tranamiasion line. He saw the fire burning
there; saw the blaze. He supposed he was
about a couple of hundred feet from his father's
house. There was then a very high gale of
northwestern wind blowing. It was a clear day.
The wind was blowing from the west. He saw
a fire when it went in Mr. Streett'a woods. He
did not suppose it was any more than a half
hour after he saw the fire in Slade's woods
that he saw fire in Streett'a woods. He was
eating his dinner. When he saw it in Mr.
Slade^s woods he went in to eat his dinner.
When he saw it in Mr. Streett'a woods his father
called his attention, and be went to help put
it out. When he got down there the fire was
burning in Mrs. Streett's woods. He stayed
there until it was completed about 6 o'clock.
The fire got over to bis father's land sometime
later after they tried to put it out in Mr. Mur-
phy's tract. When he went down on Mr.
Streett's property the wind was blowing again
westward. The Strectt property and his prop-
erty and the Murphy property is considerable
sight lower than Slade's."
Mr. Oldfield saw the timber bef6re and In
February after the Are. The general effect
of his evidence was that before the fire It
was a fine piece of timber, and tbat it bad
been seriously injured by the fire.
Benjamin Oarber testified: That he saw
the fire between 1 and 2 o'clock. That there
was a "terrible smoke" coming down the hol-
low, and that he went over to Murphy's and
found the whole woods on fire. That the
smoke was coming down over Slade's woods
towards Murphy's woods. It was a dry day
and the wind was blowing very hard, and he
never saw It blow much harder than It did
that day. That It was blowing direct from
the west, and It was blowing smoke over Mr.
Ayres' field down over the Murphy woods.
Testimony on the part of the defendant
was offered tending to show that the plain-
tiffs' Injury was much leas than they testi-
fied to; that they had misstated the charac-
ter and value of the timber; that the Are
could not have been caused by any act of the
defendant because the wind was moderate
and was not blowing In the direction of the
Murphy tract ; and because there was no evi-
dence of fire or burning of the dried grass or
weeds In that part of the Intervening field,
above mentioned, which was In the posses-
sion of Ayres, who, however, when called as
a witness for the defendant, testified that the
fire had burned the fencing between him and
Albert Berry. Berry's land was located be-
yond this Intervening field and adjoined the
land of Murphy.
We now pass to the consideration of the
legal questions presented by the rulings on
prayers. The only error which It is claim-
ed the court made in this respect was in re-
jecting the defendant's first, second, and
third prayers, which asserted that there was
no legally sufficient evidence offered to enti-
tle the plaintiffs to recover, and in overrul-
ing the special exception filed to the plain-
tiffs' first prayer, whldi declared tbat there
was no legally sufficient evidence in the case
to support the following hypotbesia of tbe
prayer, to wit:
"That the fire started b^ the defendant on its
right of way was communicated from the wood-
land of one Slade, referred to in said prayer, to
the woodland of one Streett, referred to in said
prayer."
[4] By these prayers and under tbe special
exception tbe court was asked to declare, as
a matter of law, first, that the defendant
was not guilty of negligence In starting tbe
fires on Its right of way under the circum-
stances stated in the evidence; and, second-
ly, that said fires were not the proximate
cause of the injury sued for. Both of these
questions are ordinarily questions to be pass-
ed on by the Jury under the facts and circum-
stances of tbe particular case, and assuming,
as we must, tbe plaintiffs' evidence aa to the
weather conditions and especially as to tbe
velocity of the wind to be true, there can be
no doubt of the defendant's negligence. Du-
ties and responsibilities arise out of existing
facts and conditions, and no reasonably pru-
dent and cautious man would have fired tbe
piles of debris under the conditions described
by the evidence offered on behalf of the
plaintiffs. Tbe true rule of liability Is stated
in Miller v. Neale, 18T Wis. 426, 119 N. W.
94, 129 Am. St Rep. 1077, aa foUows:
"A man may lawfully bam rubbish or brush
upon his own land, if he exercises that prudence
in the starting of the fire and the management
of it after it is started which the rules of ordi-
nary care demand. He is u^ng a dangeroua
agent, and when there is much inflammable ma-
terial on the ground, and the wind is strong in
tbe direction of his neighbor's lands, he may
well be charged with negligence if he sets a
fire, or if, having set it, he does not exerciae
that care to keep it under control which ordi-
nary prudence dictates."
This rule is In accord with practically the
unanimous decisions upon the subject, among
which are Black v. Obrlst Church Finance
Co., App. Caa. [1894] 48; McVay v. Central
California Invest. Co., 6 Cal. App. 184. 91
Pac. 745; Richard v. Schleusener, 41 Mlnii.
49, 42 N. W. 599.
Tbe question whether tbe Injury suffered
by the plaintiffs was the natural and prox-
imate cause of the fires set by tbe defend-
ant was properly submitted to the Jury. The
general principles upon this snbject were
stated In State, use of Scott, v. W. B. & A.
Electric R. B. Co., 101 AtL 546, and need not
be here restated. In the recent case of the
Western Md. R. R. Co. v. Jacques, 129 Md.
400, 99 Aa 649, we said:
"Tbe rule long in force is that where fire baa
not been directly communicated to the plaintiff's
property by sparks, or other burning matter
from the engine, but has been communicated
across other property, the question to be sub-
mitted to the jurv, to determine from all tbe
facts, is whether toe injury complained of is the
natural consequence of the defendant's negli-
gence, or whether it has been caused by some
mtervening cause. Tbe record shows tbat this
question was properly submitted. A. & E. B.
R. Co. V. Gantt, 39 Md. 115; P. W. & B. R. K.
V. Constable, 39 Md. 149; Green Ridge R. B.
V. Brinkman, 04 Md. 62 [20 Atl. 1024, 54 Am.
Rep. 765]; Carter v. Md. & Pa. B. R., 112
Md. S89 [77 Aa 301]."
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W.H.)
OliARK V. BOSTON A M. B. H.
795
As to ihe twenty-first, twenty^second, and
twenty-third bills of exceptions, wMch were
taken to the statements made by the counsel
In argument, we find nothing sufficient to
<anse a reversal after a careful examination
ot the record, and of the principles by which
the courts are guided in passing upon sudi
objections. We said in Esterllne t. State,
105 Md. 629, 66 Atl. 260:
"It is the duty of counsel to confine himself
in argument to the facts in evidence, and he
should not be permitted by the court, over prop-
er objection, to state and comment upon facts
not in evidence, or to state what be could have
proven. Persistence in this course of conduct
may furnish good groands for a new trial. The
conduct of the trial must of necessity rest large-
ly in the control and discretion of the presiding
judge, and the appellate court should in no case
interfere with the judgment, unless there be an
abuse of discretion by the trial judge of a char-
acter likely to have injured the complaining
party. • • • The observations of Mr. Jus-
tice Brown upon this subject in Dunlop v. Unit-
ed States, 165 U. S. 486 [17 Sup. Ct 876,
41 L. Ed. 799] may well be applied to the facts
embraced in this exception: "There is no doubt
that in the heat of argument, counsel do occa-
sionally make remarks that are not justified by
the testimony and which are or may be prejudl-
<rial to the accused. In such cases, however, if
the court interfere, and counsel promptly with-
draw the remark, the error will generally be
deemed to be cured. If every remark made by
counsel outside of the testimony were ground for
a reversal, comparatively few verdicts would
stand, since in the ardor of advocacy, and in the
excitement of trial, even the most experienced
counsel are occasionally carried away by this
temptation.' "
[5,6] There remains for consideration the
19 bills of exceptions taken to rulings on evi-
dence. The only really Important ones are
the second, third, eighth, ninth, and tenth,
which relate to the qualifications of Thomas
F. Murphy and Cornelius F. Murphy, to
speak as to tlie value of the timber before
and after the fire with a view of establishing
the damages. Belt K. R. Co. v. Sattler, 100
Md. 333, 59 Atl. 65:1 ; Western Md. R. R. Co.
V. Jacques, supra. In Chateaugay Ore &
Iron Co. V. Blake, 144 U. S. 476, 12 Sup. Ct
731, 36 L. Ed. 510, the court said that how
jnuch knowledge a witness must possess be-
fore he can be allowed to give his opinion as
an expert must in the nature of things be
left largely to the trial court, and its rulings
will not be disturbed unless clearly erro-
neous. We think these witnesses were qual-
ified to speak upon the subject of value.
[7] There was technical error in some of
the rulings embraced in some of the other
exceptions, but some of the evidence admitted
was of no Importance, and as to the other
rulings the record shows that substantially
tbe same evidence was admitted without ob-
jection ^ther before or after the rulings.
There must be a. concurrence of error and
Injury, and after a careful examination of
the whole record we find no error which
would justify us in reversing the judgment
Judgment afiirmed, with costs.
m N. B. 438)
CIABK V. BOSTON ft M. R. B.
(Supreme Court of New Hampshire. Merri-
mack. June 5, 1917.)
1. BAUiBOAnS €=»470 — LlABIUTT FOB IWJU-
BiEs Caused bt B"iee— Statute.
Pub. St 1901, c. 159, S 29, making a rafi-
road liable for damages to person or property
from fires set by its locomotives, has oo applica-
tion to the case of a fireman, employed by a
municipality to extinguish fires, and injured in
attempting to extinguish a fire set by a railroad's
locomotive ; the act applying only to those so
situated that as to them the operation of the
road constitutes an extra fire hazard.
2. BAII.BOADS <S=»470— Sbxtino FiKB— Liabil-
ity TO Fireman.
A railroad, apart from the contract of em-
ployment of a mnnidpality's fireman, stood in
no legal relations, however remote, to such fire-
man, and owed no duty toward mm to refrain
from setting a fire.
3. Action $=34— Infbinokioint or Code of
MOSAXS.
Courts cannot give relief in damages for a
mere infraction of a code of morals.
4. Bailboads €=)470— Setting Fibk— Liabil-
ITT FOB Injubies to Fireman.
A railroad was not liable for injuries to 4
fireman employed by a municipality because o(
his public employment while endeavoring to ex-
tinguish a fire set by its locomotive; there be
ing no breach of any duty owed the fireman b)
the road.
Transferred from Superior Court, Merri-
mack County; Sawyer, Judge.
Action by Clarence L. Clark against thi
Boston & Maine Railroad. On transfer from
the superior court on defendant's demurrer.
Demurrer sustained.
Case for Injuries alleged to have beexi
caused to the plaintiff by a fire set by ttus
defendant's locomotive. There is a general
count for negligence and one setting out that
the plaintUf was a member of the Concord
fire department and received his Injurlea
whUe acting in that capacity attempting to
extinguish the fire. A specification filed later
shows that the first count Is for the same al-
leged wrong. There Is also a count alleging
a right of recovery under the statute Impos-
ing liability upon railroads for damages caus-
ed by fires set by locomotives.
Robert W. Upton, of Concord, for plaintiff.
Streeter, Demond, Woodworth & SuUoway,
and Jonathan Piper, all of Concord, for de-
fendant
PEASLEE, J. The declaration, and the
spedflcatlon of facts applicable to the first
count, show that the plaintiff's claim i«sts
upon the theory that a fireman employed by
a municipality to extinguish fires may recov-
er from the party whose act caused the fire.
It is not necessary to consider whether a re-
covery might be had if the fire had been de-
signedly set, with the Intent to Injure the
plaintiff, for his claim Is based upon the statu-
tory liability of railroads, or upon negligence.
[1] The statute making a railroad liable
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796
101 ATIANTIC REPOBTBB
(N.H.
for damage to person or property from Area
set by its locomoUres (P. S. c. 159, { 29) has
no application to tlie present case. Tliat act
at^lies only to those so situated tbat as to
them the operation of the railroad constitutes
an extra fire hazard. If the act is broad
enough In its terms so that it could have
be«i construed to Include all damage that
oould in any sense be deemed to be "caused"
by the defendant, it is settled that such was
not the legislative intent. Welch t. Railroad,
68 N. H. 206, 44 Atl. 304, is conclusive on
this issue. If the statute covered the present
case the plaintiff in that case would have re-
covered. The loss there was caused by a Are
set by the defendant; but because the plain-
tiff's property was in the cnstody of the de-
fendant as a bailee, It was held not to be
within the class contemplated by the Legis-
lature. While this conclusion rests in part
upon the language of the act giving the rail-
road "an Insurable interest In all property
situate on the line of such road, exposed to
such damage" (G. L. c. 162, f 9; P. S. c. 150,
I 30), the reasoning is not inapplicable in
determining the meaning of the related pro-
vision as to "damages to any person." The
declaration of liability is in no way differen-
tiated. There was occasion to express the
understood limitation as to one class, and It
is not to be presumed that the unexpressed
intent was different as to the other class.
The statute applies to persona and property
exposed to damage along the line of the road.
It does not apply to firemen or fire engines
whose exposure results from an attempt to
extinguish the fire. As the statute has no ap-
plication, the rights of the partl<« are deter-
mined by the common-law rules governing
actions to recover for negligence.
Authorities holding that a volunteer res-
cuer of persons or property may recover
from a third person whose negligence caused
the situation inducing the volunteer to act are
relied upon by the plaintiff. It is also con-
tended that his contract of employment as a
city fireman gives hlni a standing more favor-
able to him than that of the volunteer.
[2] The case has been largely argued upon
the issue of proximate cause. In furtherance
of the first of these claims. But that Question
docs not arise unless tho defendant's act bore
some legal relation to such a volunteer. The
question here is not one of proximate or re-
mote cause, but whether the defendant owed
any duty at all to the plaintiff — whether,
apart from his contract of employment. It
stood in any legal relationship to Urn, how-
ever remote. It seems to us tbat It did not
Neither the plaintiff nor his property was In
a position to be injured by a fire set by the
defendant. His connection with the fire arose
solely from his own act tn coming into con-
tact with It after it was set.
It Is the law of this state that as to snch
interveners the defendant who created the
situation owed no anticipatory duty. McUlll
T. Granite Co., 70 N. H. 125, 46 Atl. 684, 85
Am. St. B^. 618. The situation Is much lUce
that of the land owner and a licensee. So
long as no Intimtional injury is done, and no
negligent act after the licensee is present,
there Is no liability. HobI>s r. Company, 75
N. H. 73, 70 Aa 1082, 18 I* B. A. (N. S.) 939.
The cases from other Jurisdictions holding
that there is a legal liability in such a esse
rest upon the ground tliat the intervener
had a moral right, if not a moral duty, to
make the attempt to save life or property;
and because it may be assumed that meo
will do their moral duty, it Is argued that the
defendant Is bound to consider the prohahlli-
tles as to their subsequent and morally In-
duced conduct. The defect in this reasoning
is that it substitutes mornl rights and duties
for those recognized and regulated by law.
As to the Intervener the defendant's previ-
ous conduct is wrong only in the sense tliat
it is a wrong to society at large. It may
be a moral wrong and may be punishable
on behalf of the public; but It is not a pri-
vate legal wrong to individual members of
the public, who of their own motion under-
take to lessen the evil effects of the defend-
ant's dereliction from duty. The Good
Samaritan could not recover from the thieves
the value of the oil and wine wltlch he
poured into the wounds of the man at Jer-
icho. His recompense is the same to-day
that it always has been.
[S] Unless it be true tbat courts can give
relief In damages for a mere infraction of a
code of morals, the plaintlfTs argument Bas
no weight Tbat courts are not empowered
tQ so act in this Jurisdiction is too well
settled to require discussion. Frost v. Rall-
rond, 64 N. H. 220, 9 Atl. 790, 10 Ant St
Bep. 396 ; Buch v. Amory Co., 69 N. H. 257,
44 Ati. 809, 76 Am. St. Bep. 163. If legal
liability is to be extended so as to cover this
new field, the change must be made by the
Legislature.
The plaintiff's argument tbat the test laid
down in Garland v. Ballroad, 76 N. n. 556,
86 Atl. 141, 46 Ia B. A. (N. S.) 338, Ann. Gn&
1Q13B, 024, Is applicable in his favor falls
In an essential element It Is not true that,
apart from bis contract with the city, the
defendant ought to liave known that the
plaintiff would be in a position to be Injured
toy what it did. He was not in such position.
He does not so state In his declaration.
What be did whs to put himself in such posi-
tion after the defendant ceased to be an
actor, and because a fire was in progress.
He did not oome upon the fire accidentally,
or in the course of Independent and lawi^Il
conduct nor did the flre come upon hint
while he was so circumstanced. Such rlg^t
as he had to be an actor in this matter grew
out of the fact that there was a flre. It was
not a right whose exercise the flre interfered
with.
While in a certain sense the flre may be
said to be a cause of the plaintiff's injury.
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OEISSLEK V. BEADING TRUST CO.
797
It does not follow tliat therefore tbe defend-
ant's negligence was a breadi of any duty
the defendant owed to him. "The tortious
natuVe of the defendant's conduct and the
can satire effect of that conduct are entirely
distinct matters; and what is a requisite
element as to the first subject is not neces-
sarily so as to the second." Jeremiah Smith
In 25 Harv. Law Rev. 245. In Garland v.
Railroad, supra, the defendant's act un-
doubtedly caused the Injury, yet it was
no breach of a duty owed to the party who
was injured.
The discussion In Kambour ▼. Railroad, 77
N. H. 33, 86 AU. 624, 45 L. R. A. (N. S.) 1188.
touching the rights of certain classes of
people who encounter known danger, is not
germane to the present case. That discus-
sion relates to the acts of a plaintiff to
whom a duty is owed, who knows the duty
lias been violated by the defendant. It is
not authority for the proposition that fault
as to one party constitutes a wrong to a third
person who knows of the wrong and Tolun-
tnrlly secXs to remedy it. The citation there
of cases permitting volunteer rescuers to re-
cover was only for the purpose of showing
that the maxim, "Volenti non fit injuria"
was not generally considered to be a rule of
universal application In the law of negli-
gence. The question whether these cases
were good law was not involved, and there
was no attempt to pass upon It. Nor is it
necessaiy to now consider this aspect of
them. It is enough for the present case to
say that even if the voluntary character
of the act does not amount to an assent to
the result, su<A act is not of a character
to raise an anticipatory duty on the part of
those not otherwise related to the actor to
take care to avoid furnishing him an opiKir-
tunity to act.
[4] The other claim suggested is that t>e-
cause the plaintiff was employed to extin-
guish fires he stands differently from a vol-
unteer and may recover when a volunteer
could not. But if it be assumed that his
contract of employment brought him into a
legal relation to the defendant and to its
conduct In setting the fire, he is no better
off. If his contract with the public created
a relation to the individual member thereof,
the relation created is such as the parties
contemplated. It appeared to the public de-
sirable to reduce the fire losses of its mem-
bers by providing for the extinguishment of
fires. The contract with the fireman is for
the benefit of those who would be damaged
by the fire. The agreement so made differs
In no respect essential to this case from the
ordlnar.v contmct of Insurance. That is,
the plaintiff has agreed to undertake to less-
en the fire damage which would otherwise
fall upon the defendant It is argued that
this relation exists only as between the fire-
man and the party whose property is in
danger of being consumed by the fire. But
this is much too narrow a view. If a rela-
tion arises at all, it is one to all members
of the public whose interests or liability
are Involved by the fire. This is the com-
mon-sense view of the situation. The plain-
tiff, knowing that fires will occur from vari-
ous causes, some culpable and some not, un-
dertakes the work of extinguishing all fires
without reference to how they were caused.
The chance of injury in doing such work is
necessarily assumed by him. This assump-
tion arises from the nature and terms of
the contract he made. He agreed to fight
all such fires as should occur. There is in
his contract no distinction as to how the
fires originated. If his contract has any
bearing at all upon the relation of the paiv
ties, It establishes an express assumption of
the risk here involved, and bars any recovery
therefor.
The rule that one may not contract against
the consequences of his own future negligence
has no application. This is merely an under-
taking of one not otherwise related to the
situation to bear for the defendant the con-
sequences of Its fault The defendant Is
not thereby released from any liability im-
posed upon It by law. The agreement is
like any Insurance contract, and Its validity
is not open to question.
Whether, then, the plaintiff is treated as a
volunteer or as one whose contract of em-
ployment brought him into a legal relation
to the defendant, the result is the same. In
neither case was there a breach of any duty
owed to him by the defendant
Demurrer sustained. All concur.
(KT Pa. s»>
GEISSLER et al. v. BEADING TRUST CO.
(Supreme Court of Pennsylvania. March 2S,
1917.)
1. PKRPKTnmEs ®=>1— Natubb of Rttlb.
"Perpetuities" are grants of property wliere-
in the vesting of an estate or interest is unlaw-
fully postponed.
[Ed. Note.— For other definitions, see Words
and Phrases, First and Second Series, Perpe-
tuity.)
2. Wills ^=>630(2) — Vestkd ob Continobnt
Estate— Legacies.
The rule is that, where a legacy is given to
a person to be paid at a future time, it vests im-
mediately, but that, when not given until a cer-
tain future time, it does not vest until that time.
3. WiLt* «:»634(14) — Constbuction— VESTEn
OB CONTINOENT REUAINDEB.
A devise of property in trust, limiting the in-
cone to the testator's children by name for life
and after their death to their children as a class,
and after the death of the surviving grandchild
the corpus to vest in testator's great-grandchil-
dren per capita, created a contingent remain-
der, to vest in the great-grandchildren as a
class after the death of the testator's last
grandchild.
4. Pebpetuitcss ®=>4(&) — Testahentabt
Tbust.
Such devise offended the rale against perpe-
tuities, and was void, and the testator's hdrs
4t=9'orot]Mr oases ne same toploand KBY-NUMBER Is ill Key-Numbered DlgesU and lodexw
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798
101 ATLANTIC REPORTER
(Pa.
might compel the trustee to convey the property
to them absolutely.
Appeal from Court of Common Pleas,
Berks County.
BUI by Henry C. Geissler and others, heirs,
to annul a testamentary trust and for recon-
veyance, against the Reading Trust Com-
pany, trustee under the will of Henry C.
Geissler, deceased, and others. From a de-
cree for plaintiffs, defendants appeal. Af-
firmed.
Testator's will provided in part aa follows:
(7) "Item— I give, devise and bequeath to my
three sons, Henry 0. Geissler. Jr.. Samuel K.
Geissler and Robert Franklin Geissler, the
above-mentioned properties contained in pur-
?arta numbered 1 and 2, to wit: 727, 729 and
31 Penn street and all buildings appertaining
thereto and 726 and 728 Court street and 720
Coart street, marble works and stable, all in
the said city of Beading, said county and state,
same to be held by them in common, to use, oc-
cupy and enjoy the rents, issues and profits
thereof, as long as they shall live. The same
shall not be sold so long as any one of the said
RODS shall live. Should the said sons ngree to
dissolve partnership now existing between them,
all to discontinue the business now engaged in,
to wit: The tin and stove trade and tile and
mantle works — and all engage in some other line
of trade, the said premises to be used by all —
or, should they engage in different enterprises,
the said premises not used by any, then, the
same shall be rented, and proceeds, after taxes,
water rents and necessary repairs shall be paid,
to be divided among the three sons, their heirs,
share and share alike. After all the said three
sons shall bave died, then the said premises
may be sold, if deemed advisable by my herein-
after named executor, a good and su0icient price
secured therefor, the profeeds therefrom to be
invested and the income thereof to be distribut-
ed to the children of my deceased sous, share
and share alike, if of age and properly behaved
and conducting themselves well, if not — then
the same to be expended in their keep and main-
tenance— and, after all such grandchildren shall
bave died, then the principai sums so created
shall be divided among all the children of my
grandchildren, share and share alike, 'per capi-
ta' and not 'per stirpes' — the mortgage, now a
lien upon said premises, to be paid and lien disK
charged, if not alreaily so discharged at my
death, as soon after my death as can be done,
provision to be so made by sale of such securi-
ties as may be necessary, good and fair price
being received for same,"
(8) "Item— I give, devise and bequeath unto
my daughter, Rosa M. Burg, widow of the Inte
Edward C. Berg, deceased, the two dwelling
bouses and lots or pieces of ground upon which
the same are erected, situate on North Fifth
street, beyond Battonwood street, Nnmber 408
and 410 North Fifth street, in said city of
Reading, county and state aforesaid, which I
have appraised at the sum of five thousand ($5,-
000) dollars per dwelling, aggregating ten thou-
sand ($10,000) dollars, for and during the term
of her natural life, sne to enjoy the rents, is-
sues and proSts of the same, after all taxes and
necessary repairs shall have been made, as long
as she shall live. And I direct that additional
real estate, free from all incumbrances, or first
class mortgage security, or securities be provid-
ed for her, which, together with the above two
dwellings valued at ten thousand ($10,000) dol-
lars, as above contained, shall aggregate the sum
of nineteen thousand three hundred and sixty-
one and ($19,3(tl.08) o"/ioo dollars, same being
an equivalent for what has been given to the
three sons as above contained in purparts Nos.
1 and 2, and the material, wares and equipment
contained in the two branches of btisiness, to
wit, the tin and stove trade and the tile and
mantle business, whicli I gave the said three
sons, when I retired from business and Installed
my said sons into the said branch of business,
August 1, 1908,— same to be invested and held
in the name of my estate, the income from the
dwellings and that from the additional invest-
ment to be paid to her, for her sole and sepa-
rate use as long as she shall live, said income to
be paid to her, and to her alone, her receipt
alone to be in payment of same, such income
not to be subject to any bills or liabilities which
may be contracted, nor be liable to attachment
nor in any manner, menace nor liable for any
debt or loss sustained by said daughter, Rosa
M. Berg. After the death of my daughter,
Rosa M. Berg, if in the judgment of my here-
inafter named execntor, a good and sufficient
price be secured for same, the real estate so set
aside for her as above contained, or, that may
be bought f(H: her use and enjoyment, may be
sold and the proceeds reinvested in otlier good
premises same continued in my estate, or in
good first mortgage security or securities, in my
estate, the income whereof shall be distributed
to my grandchildren, children of my said daugh-
ter, Rosa M. Berg, share and share alike, if
of age and properly behaved and conducting
themselves well, if not— then the same to be
expended for such so misbehaving for their main-
tenance and keep. This extra provision extend-
ing to my grandchildren is made in considera-
tion of the fact that my good deceased wife and
I have always had the grandchildren around
us, in our home, and are very warmly attached
to them, and, hence this provision."
(9) "Item — I direct that the additional earn
of two thousand five hundred and fifty-five and
■Vioo ($2,555.69) dollars be invested by my
hereinafter named executor, which sum, together
with the real estate hereinbefore disposed of,
and the amount of stock as per inventory, giv-
en to the boys, when the two branches of busi-
ness were transferred to them, August 1, 1908, to
wit, 'eight thousand eighty-three and ^Vito
($8,083.23) dollars, with the additional amount
to make tne share of Rosa M. Berg equal to the
share of one of my sons, will make a grand to-
tal of eighty thousand dollars — the income of
nhich said sum of two thousand five hundred
and fifty-five and *Vioo dollars shall be divided
iuto four equal shares and be paid to the said
Henry C. Geissler, Jr., Samuel K. Geissler, and
Robert Franklin Geissler and Rosa M. Berg,
and to their children, the children Of any de-
ceased child or children, throughout this testa-
ment, to take the share of such dec^Med parent,
share and share alike.'
(10) "Item— After the death of all my children
and their children (my grandchildren), then I
direct that the above-mentioned investments
(real estate and securities), aggregating the sum
of eighty thousand ($80,000) dollars less the
amount as contained in inventory of stock, to
wit, the sum of eight thousand eighty-three and
*Vioo ($8,083.23) doUars, or the sum of seven-
ty-two thousand four hundred rfzteen and
'Vioo ($72,41&77) dollars, together with what-
ever increase of principal, by reason of higher
values received for real estate sold, as herein-
before set aside to the uses of the sons and
daughter, and whatever other increase of real
estate and securities, together with interest
which shall have accrued, shall be divided among
all my great-grandchildren, grandchildren of my
sons, Henry C. Geissler, Jr., Samuel K. Geissler,
Robert Franklin Geissler, and my daughter,
Rosa M. Berg, all share and share alike, same
taking per capita and not per stirpes."
Other facts appear In the opinion of "Wag-
ner, J., In the common pleas, sur defendaafa
demurrer to plaintiff's bill:
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OKISSIiEB T. BEADIKO TRUST CO.
79»
The plaintiffs havo filed a bill in equity where-
in they eet forth certain prorisions in the will
o{ Henr7 C. Geissler, deceased, and allege that
the scheme of the trust attempted to be estab-
lished by these provisions is repugnant to the
rule against perpetuities, and void for remote-
ness. They therefore pray the conrt to enter a
decree d.eclaring said trust null and void, and
directing the defendant to convey and quit-
claim udto the plaintiffs the real and personal
property comprising the said trust estate. To
this bill defendant demurred.
Item 7 of the will gives to Henry C. Geissler.
Jr., Samuel K. Geissler, and Robert Franklin
Geissler, 727, 729, and 781 Penn street, 726, 728,
and 720 Court street, to he held by them in com-
mon to use and enjoy the rents, etc, as long as
they live, same not to be sold as long as any
one of the sons shall live. It further ■directs
that, after the three sons shall have died, then
the premises may be sold by his exocutor, if
deemed advisable, the proceeds therefrom tx> be
invested and the income thereof to be distribut-
ed to the children of his deceased sons, share and
share alike, if of age and properly behaved and
conducting themselves well, and, after all such
grandchildren shall have died, then the princi-
pal sum so created shall be divided among all
the children of his grandchildren, share and
share alike, ;>er capita and not per stirpes.
Section 8 gives to Bnsa M. Berg, his daughter
and only other child, 408 and 410 North Rfth
street, as long as she lives, and directs that ad-
ditional real estate free from all incumbrances
be provided for her, so that the aggregate value
shall amount to $19,361.08; the income from
the dwellings and additional investment to bo
paid to her as long as she shall live. After
her death the real estate may be sold by the
executor, and the proceeds invested in any other
good premises or in first mortgage sncurity or
securities, tho income to be distributed to his
grandchildren, the children of his daughter, Hosa
M. Berg, share and share alike.
Item 10 provides that, after the death of all
his children and their children Oiis grandchil-
dren), then the above trust estate (real estato
and securities), aggregating the sum of $72,410.-
77, together with increase of principal, shall be
divided among all bis great-grandchildren, grand-
children of his sons, Henry C. Geis-^ler, Jr.,
Samuel K. Geissler, Robert Franklin Geissler,
and his daughter, Rosa M. Berg, all share and
share alike: same taking per capita, and not
per stirpes.
[I. 21 Perpetuities, as stated in City of Phila-
delphia V. Girard's Heirs, 45 Pa. 9, 26, 84 Am.
Dec. 470, are '"grants of property, wherein the
vesting of an estate or interest is unlawfully
postponed." When, then, does the estate in or
interest to the principal of this contemplated
trust fund vest? That is, do his great grand-
children take a vested or a contingent interest?
In Sternbergh's Estate, 250 Pa. 167, 171, 95 AtL
404, 406, we have: "In Smith's Estate, 226 Pa.
304, 307, 306 [75 Atl. 425, 426], this court said:
'As Chief Justice Tilghman said in I'atterison
V. Hawthorn, 12 Ser^. & R. 112: "The rule is
that, where a legacy is given to a person to be
paid at a future time, it vests immediately.
But when it is not given until a certain future
time, it does not ve.st until that time; and if
the legatee dies before, it is lost." ' • » •
The statement of the rule by Chief Justice (iib-
son, in Bloore v. Smith, 9 Watts, 403. 408. has
always been accepted; it is that: 'The legacy
shall be deemed vested or contingent just as
the time shall appear to have been annexed to
the gift or the payment of it.' " In the case at
bar the time is manifestly annexed to the gift,
not merely to its payment. If any of the mem-
bers of the class die before the time fixed for
distribution they get nothing.
[3] 'z will be noticed that in this will a life
ertate is first given to his children, mentioning
them by name. After their death we again havs
a life estate to their children (grandchildren of
testator) as a class, the names of no particular
individuals being designated. These are to take
per capita. It is clear that the quantum of this
life estate is measured by the number of grand-
children living at the time of death of the last
of testator's children. Then only after the
last of these, the grandchildren, shall have died
shall the trust estate then vest in the great-
grandchildren of the testator, per capita. Here
again the quantum of the principal of the trust
estate to be eventually received by each of the
great-grandchildren is determined by the number
of great-grandchildren in being at tho time of
the death of the last grandchild. That is, the
estate vests, not presently in designated per-
sons, but only after the death of the last grand-
child of the testator, in his then great-grandcfail'
dren as a class per capita. We bare here clear-
ly a contingent and not a vested interest.
[4] Is, then, this vesting unlawfully post-
poned? "The law allows the vesting of an es-
tate or interest, or the power of alienation, to
be postponed • • • for the period of lives
in being, and 21 years and 9 months thereafter,
and all restraint.*! upon the vesting, that may
suspend it beyond that period, are treated as
perpetual restraints, and therefore as void,
and consequently the estates or interests depend-
ent on them are void." City of Philadelphia ▼.
Girard's Heirs, 45 Pa. 26, supra. By the terms
of the will the principal will not vest in the
great-grandchildren nntil after the death of all
the grandchildren, whether now born or to. be
hereafter bom; that is, in the natural course of
events, for a period of from 50 to 80 or more
years after the period of lives in being. This
period ie too remote, and offends the rule of per-
petuities. The antecedent estate thus falls, and
the heirs at law of this testator are entitled to
immediate possession. Johnston's E2state, 185
Pa. 179, 39 AU. 879, 64 Am. St Rep. 6*^11;
Gerber's Folate, 196 Pa. 366, 46 AtL 497;
Kountz's Estate (No. 1), 213 Pa. 390, 62 Atl.
1103, 3 L. B. A. (N. S.) 639, 6 Ann. Gas. 427;
In re Kountz's Trust, 251 Pa. 582, 96 AU. 1097.
Findings of Law.
1. The interest of the great-grandchildren of
Henry C. Geissler, the decedent, in the trust
estato of $72,729.31, attempted to be created
by the testator, Henry C. Geissler, in his will,
is not a vested interest.
2. The devise of tho principal of the property
contained in the attempted trust is one wherein
the vesting thereof is postponed for a longer
period than the period of lives in beln^ and 21
years and 9 months thereafter, is void under
the rule against perpetuities, and the plaintiffs,
the heirs at law of Henry C. Geissler, deceased,
are entitled to immediate possession of the said
principal.
3. The plaintiffs are entitled to a decree de-
claring the aforesaid trust, aggregating in value
the sum of $72,729.31, null and void, and that
the Reading Trust Company, defendant, be di-
rected to convey a quitclaim unto the plaintiffs,
Henry C. Geissler, Jr., Samuel K. Geissler, Rob-
ert Franklin Geissler, and Rosa M. Berg, of
the real estate and j>ersonal property described
in the will as comprising the said trust estate.
4. "The costs of the proceeding shall be paid
by the defendant.
The court below entered the following de-
cree:
1. That tho demurrer be and la hereby over-
ruled.
2. That the devise of the beneficial estate or
interests in the six several purparts of real
estate mentioned and described in the third
paragraph of ' the plaintiff's bill, contained in
the seventh clause of the last will of Henry C.
Geissler, deceased, the several purparts contain-
ed in the eighth clause of said will, and the di-
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101 ATLiANTIO RGPOBTER
(Pa.
reetion to provide additional real estate in the
same danse, and the bequest of S2,656.(f9 in the
ninth clause of said will, is wholly and entirely
void, and that to the extent of said beneficial es-
tates and interests in said purparts of real es-
tate and said sum of money the said Henry O.
Geissler died intestate.
3. That the power of sale by the said. will of
the said Henry O. Geissler granted to the execu-
tor relating to the aforesaid several purparts is
invalid and yiA(L
4. That the said defendant do malce, execute
and deliver to the plaintiSs, the heirs at law of
the said Henry C. Geissler, deceased, proper
and sufficient deeds, conveyances, and quit-
claims as executor and trustee, conveying and
quitclaiming to the said plaintiff tho legal title
to the said several purparts of real estate de-
scribed and specified in the third paragraph of
the plaintiff's bilL
Argued before BKOWN, C. J., and MBJS-
TREZAT, STEJWART, MOSCHZISKEH, and
PBAZER, JJ.
Walter B. Craig, of Reading, for appellant
Jefferson Snyder and U. Robert Mays, both
of Reading, for appellees.
PER CURIAM. The decree in this case Is
affirmed, at the costs of the appellant, on the
opinion of the learned court below, directing
It to be entered.
(267 Pa. 341)
REYNOLDSVILLE WATER CO. v. FAK-
MERS' & MINERS' TRUST CO.
(Supreme Court of Pennsylvania. March 23,
1917.)
CoBPOBATioNS ®=»479— Bonds— Trust Deed
— Delivery or Bonds— Liabilitt for Neo-
LIOBNCB.
The trustee under a mortgage to secure a
water company's bond issue providing that the
bonds be executed by ita president and secretary
and for their delivery to the trustee, to be cer-
tified and afterwards returned to the company's
treasurer, which received the treasurer's receipt
for certain of the bonds, together with the bonds
from the company's presidentj with directions
to send them to a bank for delivery to him, and
which, in reliance on such receipt, sent the
bonds to such bank, from which the president
obtained and embezzled them, was not liable to
the company for their value.
Appeal from Court of Common Pleas, Jef-
ferson County.
Trespass by the Reynoldsvllle Water Com-
pany against the Farmers' ft Miners' Trust
Company for alleged negligent disposal of
bonds. From a Judgment refusing to take ott
a compulsory nonsuit, plaintiff api>eal8. Af-
firmed.
From the record It appeared that certain
mortgage bonds of the Reynoldsvllle Water
Company were executed In Its behalf by A.
Grant Richwlne, as president, and W. Dale
Shaffer, as secretary. The bonds provided
that after execution by the president and
secretary, they should be sent to the Farm-
ers' & Miners' Trust Company, trustee, for
certification by It and that they should then
be delivered to the treasurer of the water
company. After their execution by the presi-
dent and secretaiy, Blcbwlne suggested that
Shatter, as treasurer, send a receipt along
with the bonds, which were to be forthwith
certified and delivered. Such receipt was
prepared, and, together with the bonds, was
handed by Shaffer to Richwlne, who sent
both receipt and. bonds to. the trust company,
with directions to send the bonds, when certi-
fied, to a certain bank for delivery by said
bank to Richwlne. The trust company, rely-
ing up<xi the treasurer's receipt, sent the
bonds to the bank as directed, and Richwlne
subsequently procured same and embezzled
them. The lower court entered a compulsory
nonsuit, which It subsequently refused to
take off. Plaintiff appealed.
Argued before BROWN, a J., and MES-
TBEZAT, POTTER, FRAZER, and WAMv-
ING, JJ.
John W. Reed, of BrookvlUe, and H. H.
Mercer, of Mechanlcsburg, for appellant
Cadmus Z. Gordon and Raymond B. Brown,
both of Brookvllle, and I/ex N. Mltdiell, of
Punxsutawney, for appellee.
PER CURIAM. The following Is the first
condition of the mortgage under which the
bonds in controversy were Issued:
"The bonds to be issued under and secnred
thereby shall be executed on behalf of the Rey-
noldsvllle Water Company, by its president and
secretary, and shall be delivered to the trustee,
to be certified by it, and of the bonds so ezecot-
ed and delivered the trustee shall forthwith cer-
tify and deliver to the treasurer of the company
ninotv thousand ($00,000) dollars worth of
said bonds, to be used for property, real and
personal, already acquired by it, and ten thou-
sand ($10,000) dollars for making additional im-
provements and extensions, to the plant of said
company."
On November 17, 1913, the treasurer of
the water company acknowledged In writing:
"The receipt of $100,000 of the Reynoldsvllle
Water Company bonds ; $90,000 for the proper-
ty, real and personal, already acquired by it,
and $10,000 for the making of additional im-
provements and extensions to the plant of said
company."
Upon the delivery of this receipt by the
president of the water company to the Farm-
ers' & Miners' Trust (Company, the appellee,
it was fully warranted In what It subsequent-
ly did with the bonds, and the judgment of
the court below Is affirmed, on the following
from Its <vlnl<Hi refusing to take off the non-
suit:
"The receipt, prepared and signed by W. Dale
Shaffer, treasurer, and sent to the trust com-
pany, defendant acknowledging the receipt of
$1<X),<X)0 of tbe Reynoldsville Water Company
bonds, was clearly designed and intended by the
treasurer of the company to l>e his official and
final aclmowledgment of the receipt of that
amount of the bonds from the trust company,
after it shonld have certified them, and was so
regarded by the trust company. Sliaffer sent no
request and gave no direction, in connection
with the receipt to the latter. • • • The
man who sent the receipt to the defendant and
requested that the bonds be sent to him, and who
got them, was the president of the water com-
^saToT other rasM ra* lam* topic soil KUT-NUMBBR In all Kaj-Numbared DiseBta and IndaxM
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IN BE CROZER'S ESTA13:
801
pany, and also a director. These men (the
president and treaanrer), chosen b; its stock-
holders, were the ezecutive officers of the water
companr, who for it executed the bonds and
mortgage, and who at the time of this transac-
tion were deemed worthy of trust and confidence,
and unsuspected of any motive but the interest
of the company, at whose bead they stood."
Judgment affirmed.
(2S7 Pa. za)
In re CROZER'S ESTATR
(Supreme Court of Pennsylrania. March 19,
1917.)
1. Wiixs ^»523— CoNSTKUonoN of Leoact—
Repbbskrtatiok .
Where testator, dying without issue after the
death of two of his brothers, one of whom left
issue, gave an undivided part of certain furni-
ture to bis three brothers and two sisters, and
the residue of his estate to his two sisters and
three brothers absolutely, the gift was not to a
class, but to individuals, and the issue of the de-
ceased brother were entitled to his share.
2. WlI.I-8 «=»441— CONSTBDCTION— INTBNT.
The testator's intention as gathered from the
language of his vriU with the aid of his sur-
rounding circumstances is the object sought in
the construction of a wUL
8. WiLUB «=»449— CoNsiBnonoN— Atoidakcb
OF Intestact.
A construction resulting in Intestacy aa to
the residue of an estate is most strongly to be
avoided.
4. WllXS «=>437— CONSTBUCTIOW— IKTEHTION
—Tact
The testator's legal intention is to be gath-
ered from the state <n the law at the date jf the
will, regardless of what it was at the date of
his death.
5. Wnx8 «=98!i&— Lapsed Lboaoiss— Rk-er-
ACTMBNT or Statute.
Act July 12, 1897 (P. L. 256), relating to
lapsed legacies, does not repeal, but re-enacts.
Act May 6, 1844 (P. L. 565) § 2, providing that
no legacy to a brother or sister by one not leav-
ing any lineal descendants shall lapse by rea-
son of the decease of the legatee in the testator's
lifetime, if the legatee leaves issue surviving the
testator.
Appeal from Orphans' Court, Delaware
County.
George K (Trozer and others appeal from
a decree dismissing exceptions to the report
of Josiab Smith, Esq., auditor, In the estate
of Robert U. Crozer, deceased. Appeals dis-
missed, and decree affirmed.
The following Is the opinion of Johnson,
P. J., dismissing the exceptions:
The testator, by his will, after giving sundry
legacies to his three brothers and two sisters,
nairing them, and after bequeathing in the fol-
lowing words : "I give and bequeath to my
three brothers and two sisters, my one-sixth nn-
divided part of the furniture, etc., at my home
in Upland, which I received from my mother's
estate, and which I own in common with them"
—disposes of the residue of his estate in the
following words: "All the rest, residue and
remainder of my estate, I give and bequeath to
my two sisters and three brothers absolutely."
The question has arisen in the distribution of
the estate whether by these clauses the gifts
are to testator's three brothers and two sisters
individually or as a class. The auditor has de-
cided that the gifts are to them individually
and made distribution accordingly, and excep-
tions have been filed to this conclusion.
If these gifts are to the three brothers and
two dsters as a class, the auditor's distribution
is wrong. If, on the oUier hand, these gifts
are to them as individuals, there arises a sec-
ond question: Was the second section of the
act of May 6, 1844 (P. L. 565), repealed by
the act of July 12, 1897 (P. L. 2o6 ; Stewart's
Purdon, vol. 4, page 5143, pL 22)? If it was
so repealed, then the auditor's distribution is
wrong; otherwise, it is correct. To sustain the
auditor requires an affirmative answer to the
following two propositions: (1) The gifts to
the three hrothers and two sisters of the tes-
tator were to them as individuals. (2) The act
of 1897 did not repeal the act of 1844. The
auditor has addressed to the solution of these
questions a great deal of painstaking labor and
research, and fortified his conclusion by an ex-
haustive citation of the authorities. Agreeing
as we do with his conclusions, it is unnecessary
for us to review his report with any great
degree of detail.
[i-4] The object to he obtained is the ascer-
tainment of the intent of the testator, to l>e
gathered from the language of his will, with the
aid of his surrounding circumstances. He was
a very wealthy man, and a bachelor. He exe-
cuted his will in 1888, with a codicil in 1893,
and died in 1914, 73 years of age. At the date
of his will his parents were dead. At that time,
and also at the date of the codicil, he had three
living brothers and two sisters. One of these
brothers, J. Lewis Crozer, died in 1897, with-
out children. Another brother, Samuel A. Croz-
er, died in 1910, leaving children. His other
brother, George K. Crozer, and his two sisters,
Elizabeth C. Griffith and Emma C. Knowles,
survived him. By his will he gave legacies of
110,000 each to his brothers, Samuel A. and
J. Lewis, naming them, and then, conscious that
he was about to give munificent legacies to his
sister, Elizabeth C, and her children, and to
his brother, George K., and his children, and to
his sister, Emma C, and her children, he takes
occasion to say in his will that these legacies
of $10,000 are comparatively small, that is to
say, compared with those about to be given to
the others, and that they are made thus com-
paratively small for reasons which he states,
and then, to avoid an inference that the distinc-
tion is attributable to any difference in regard
for them, he says: "My love for all my broth-
ers and sisters is strong and deep." He then
gives to his sister, Elizabeth C, naming her,
and her children, legacies amounting to $250,-
000; also to his brother, George K., naming him
and his children, a like sum ; and also to his sis-
ter, Emma C, naming her and her cbildren, a
like sum. Then after a number of legacies
come these two clauses, which have been refer-
red to, and which produce this controversy:
"Item. I give and bequeath to my three broth-
ers and two sisters my one-sixth undivided part
of the furniture, etc., at my home at Upland,
which I received from my mother's estate and
which I own in common with them."
"Item. All the rest, residue and remainder of
my estate I give and bequeath to my two sis-
ters and three brothers absolutely."
Did the testator intend these gifts to the
donees to be to them as a class or as individ-
uals? It would scarcely occur to the average
mind that these gifts were otherwise than the
ordinary gifts to them aa individuals. What
did the testator intend in 1888, when the will
was executed? Did he have them in mind as a
class? If be had in mind to treat them as a
class, then he intended that only those who
survived him should take, and the cbildren of
those who predeceased him should be excluded;
but he said that his love for all of them was
deep and strong. Moreover, if a class were
^EsFor other oanas sea sama topic «nd KICY-NUMBBB In all Key-Numbered Digests and Indexes
101 A.-fil
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101 ATLANTIC REPOBTBB
(Pa.
althou^ It may seem improliable aad be
strongly contradicted.
That part of the charge embraced In the
eighth assigiinient of error, referring to the
question of damages, is subject to criticism.
The thought in the mind of the court does not
seem to find expression In the language as
reported. Howerer, that and any Inadequacy
in the charge can be corrected on another
trial. The assignments of error, except as
herein stated, are not sustained.
The judgment Is reversed, and a Teolre
facias de novo awarded.
067 Pa. 43»
GRIFb^N «t at ▼. DBLAWAKS & HUD-
SON CO.
(Supreme Court «t PennBylvania. April 10,
1917.)
1. TBBaPASs 4s»20(l) — Tkespass Qxtabe
Olkobvu Fbboit— Possession.
At common law an action of trespass quare
dausum fregit cannot be maintained by one nei-
ther in actual nor constructive possession of the
land.
2. Tbebpass «s>18 — Obounds or Aonoif —
Statute.
Practice Act Mav 25, 1887, { 3 (P. L. 271),
vororidinf: that certain actions ex delicto should
be brought under the one name of trespass, did
not change the fundamental grounds upon which
the right to recover rests, or give an action of
trespass where no action for the same cause
would arise at common law.
8. Minks and Minkralb €=355(8)— Advebsb
Claim to Minerals— Evidkncb.
An adverse claim to the minerals in free-
hold lands must be distinctly established against
the owner of the surface, which may be done by
documents showine that the minerals had been
conveyed, ezoepted, or reserved, so as to vest
in the claimant.
4. Mines and Minkrals <S=>51(1)— Trespass
roB Removal or Coal— Possession.
An action of trespass for the unlawful min-
ing of coal from plaintiff's land could not be
maintained, where plaintiff had never been in
actual or constructive possession of the surface,
which was in the possession of parties holding
adversely, and under whose lease defendant had
removed the underlying coal, as plaintiffs, never
having severed the coal, were not in constructive
possession thereof.
Appeal from Court of Common Pleas,
Lackawanna County.
Trespaas by TOdmund R. Orlffin and others
against the Delaware & Hudson Company for
removing coal from land claimed by plain-
tiffs. From an order dismissing exceptions
to the report and supplemental report of a
referee, defendant appeals. Beversed, and
Judgment entered for defendant
Argued before BROWN, C. J., and POT-
TER, STEWART, VRAZWR, and WAI/-
LING, JJ.
James H. Torrey and Charles H. Welles,
both of Scranton, and Walter C. Noyes, of
New York City, for appellant. Thos. F.
Wells, M. W. Stephens, and F. I*. Hitchcock,
all of Scranton, for appellees.
POTTBK, J. This was an action of tres-
pass brought by Eldmund R. Orlffin et aL
against the Delaware & Hudson Company,
to recover damages for the entry by defend-
ant on land of which plaintiffs claimed ovm-
ershlp, and for mining coal and taking It
from such land. It Is averred in plaintiff's
statement of claim that 100,000 tons of coal
were nnlawfolly removed by defendant be-
tween the year 1867 and the date of suit
The pleas were not guilty and the statute of
limitations.
By agreement of the parties the case was
referred to Hon. R. W. Arcbbald, who, after
a fnll hearing, filed a report, with findings
of fact and law. In which he held that the
plaintiffs never had actual or constructlTe
possession of the coal in controversy, and
were not, therefore, In a position to maintain
this action, and that Judgment should be en-
tered for defendant. Exceptions were filed to
the report, whereupon the case was evened,
additional testimony was taken, and the
findings reconsidered by the referee. He
then filed a supplemental report, with new
findings of fact and law, in which he reversed
his former ruling, and directed that judg-
ment be entered In favor of plaintiffs fbr
the sum of 141,025. Exceptions were filed
by both parties to the suit, which were dis-
missed by the court, and judgment was en-
tered in accordance with the recommenda-
tion of the referee in tats supplemental re-
port. Defendant has appealed.
According to the referee's findings, the
material facts were substantially as follows:
The coal in controversy underlay a tract of
land in Providence township, Lackawanna
(formerly Luzerne) county, which is now
part of the city of Scranton, and comprised
3 acres and 60 perches of ground. This land
was Included in a larger tract for which a
patent was granted, on June 15, 1828, by the
commonwealth to Thomas Griffin. Prior to
that date, <m February 10, 1828, Isaac Grif-
fin, a son of the subsequent patentee, had
made and delivered to Silas B. Robinson a
general warranty deed for a portion of the
land patented by his father, and Robinson
took possession under such deed. A year
later, on February 6, 1S29, Thomas GrifBn
made and delivered to Isaac Griffin a deed
for the same land that Isaac had already
conveyed to Bobinson. The deed of Isaac
Griffin to Bobinson was identical with that
of Thomas Griffin to Isaac Griffin, vrlth the
exception of the length of the north line of
the tract, and it is from that difference that
the controversy in this case arises. The land
conveyed by Isaac Griffin to Robinson be-
gan at the Lackawanna river, and extended
thence northwest for a distance of 246 perch-
es, while In the deed from Thomas Griffin to
Isaac Griffin the tract was described as be-
ginning at the same point, and extending by
the same course a distance of 264^ perches.
«s>For other cases see same toplo and KBT-NUMBBR In all Key-Numbered Digests and Indexes
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GRIFFIN V. DELAWARE A HUDSON CO.
751
being 18^ perches longer than the corre-
sponding line In the deed from Isaac Orlffln
to Robinson. ^Fhe dUTerence appears clearly
from tbe diagrams in the referee's supple-
mental report. The courses and distances
on the west and south were the same in both
deeds, but in neither oae was the distance
given on the next to the final course, which
terminated at the Lackawanna river.
Plaintln's are the heirs at law of Isaac
Griffin, and claim to be the owners of the
westernmost end of the tract, which they al-
lege was not included in the deed of their
ancestor to Silas B. Robinson. The portion
which they claim, extends from a point dis-
tant 246 perches from the river to a point
264% perches distant therefrom, being 18%
by 30 perches in area, containing, as stated,
3 acres and 56 perches. In the eighteenth
finding of fact the referee found that:
"Silas B. Robincon, after the conveyance to
him by Isaac Giiflin and wife, entered into the
actual possession of the 52 acres and 58 perches,
with the allowance of 3 per cent., and he and
those claiming under him in line of title have
fenced and lived upon and occupied the said
land, using it for farming purposes, cultivating
the same, pasturinf; cattle thereon, cutting tim-
ber therefrom, mining and removing coal, plot-
ted it into building lots, sold building lots cov-
ering a portion of the land in dispute, and par-
ties purchasing the said lots have built hooses
and other buildings thereon, and are now in
the actual, open, notorious possession of the
same."
In bla fltBt retort the referee lonnd as
a fact:
""nie plaintiffs have never been in the actual
possession of the land in dispute and have not
severed the coal from the surface. The Robin-
sons and Griffins and Von Storcbs have been in
the actual possession of the whole tract of land
nmning from the Lackawanna river back 201%
rods to a point about 30 feet beyond the-Keyser
Valley Branch, and to the corner of what is
known as the Philip C. Griffin tract, and, being
so in possession, leased the coal to the Dela-
ware & Hudson Canal Company in 1867, and
the possession of the Grifiins and the Delaware
& Hudson Company lias continued from that
time to the present, and has been open, notori-
ona, and visible."
In the supplemental report this finding was
modified, so as to exclude a small portion of
the piece occupied . by a railroad. The de-
fendant company, nnder a claim of owner-
ship through leases given to them by the
anccessors in title of Silas B. Robinson, has
Diined and removed the coal from the tract
claimed by plaintlSs, and it was to recover
damages for this alleged trespass that the
present salt was brought
Four grounds of defense were set up: (1)
A valid paper title to the coal in question.
(2) Title by adverse possession. (3) That
plaintiffs were never in possession of the
locus in qno, and therefore were not entitled
to maintain an action of trespass quare
clausum f regit for the removal of the coal.
<4) That any right claimed by plaintiffs was
barred by the statute of limitations. Upon
the third qnestion, the right of plalntifCs
to maintain the action, 'the referee reversed
himself. In his original report he said :
"On the whole case, therefore, whatever the
state of the title, the plaintiffs, as I view it, are
not in a position to maintain the action, never
having had actual or constructive possession
of the coal in controversy. Tliis is decisive of
the case, and judgment must therefore be en-
tered for the defendant."
But in his supplemental report the referee
reached the conclusion that plaintiffs had
constructive possession of the coal, what-
ever may have been the situation as to the
surface, and that therefore they might
maintain their action.
[1] It is conceded that plaintiffs were
never In actual physical possession of the
tract of land here in question. The referee
afflrmed, without qualification, defendant's
seventh, tbirty-flrst, and thirty-seventh re-
quests for findings of fact, which were to
that effect, and no exception was taken to
such affirmance. It is admitted that the
common-law action of trespass quare clausum
fregit could not be maintained by one not
in possession of the land. But it is contend-
ed that this rule was changed by the practice
act of May 25, 1887 (P. L. 271), by which all
distinctions between actions of trespass are
said to have been abolished.
[2] In Welsfleld v. Beale, 231 Pa. 39, 42, 79
Atl. 878, 879, we said:
"Under the act of May 26, 1887 (P. I* 271,
( 3), all actions ex delicto, whether trespass,
trover, or trespass on the case, are now brought
under the one name of trespass. The distinc-
tion, therefore, between trespass quare clausum
fregit, in which actual or constructive posses-
sion in the plaintiff waa necessary, and trespass
on the case, in which it was not, is no Iwger of
importance."
That related, however, only to the form of
procedure. It was Intended 'to i)oint out
that, under the statute, recovery might be
had ia an action of trespass^ where formerly
upon the facts the only remedy would have
been in an action upon the case. But' the
fundamental requirements,, upon, which the
right to recover rests, have not been changed.
The act of 18S7 "was intended to dispense
with focmality, hot to insist on matters of
aubstance, indispensable to an intelligent
and Just Judgment between . the parties."
Wlnklehhike t. Van Dyke, 161 Pa. 6, 28 AtL
937. .
In the case at bar plaintifts claimed di-
rect damages for an tmlawfid and forcible
entry upon their premises and removal of
the coal therefrom. In their statement they
aver that they were in possession of the
premises, and that defendant did "with force
and arms enter upon and into the said
parcel of land beneath the surface thereof
from its own land adjoining, and did mine
a large quantity of coal therefrom and con-
vert it to its own use. If plaintiffs can re-
co\'er at all, it must be in an action in the
nature of quare clausum fregit. The au-
thorities are deer that, in order to maintain
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752
101 ATLANTIC RBPORTEB
(Pa.
such an action, a plaintiff mnst bare been
In possession, eitber actual or constructive,
at tbe time the trespass was conuuitted.
Gfreber v. Kleckner, 2 Pa. 289; King t. Bak-
er, 25 Pa. 186; Collins v. Beatty, 148 Pa.
65, 23 Atl. 882; Wilkinson v. Connell, 158
Pa. 126, 27 Atl. 870; Bnsch v. Calhoun, 14
Pa. Super. Ct 578; Vandersllce t. Donner,
26 Pa. Super. Ct 319. Tbe referee so found
In his third finding of law. He further
found as a fact that there never had been
actual possession by plaintiffs, or any of
tbem. He was also of opinion that plaintiffs
bad not shown that tbey were at any. time
in constructive possession of the surface.
But in his supplemental report be held that
there was constructive possession of the
coal, and on that ground be awarded damn
ages to plaintiffs. He based this conclusion
on tbe ground that there had been a sever-
ance Af the coal from the surface. He said :
"When the coal is severed from surface, and
a separate estate created in it, there is no good
reason why, aa to such coal, ownership of the
title should not draw to it the constructive pos-
session, so as to protect the real owner against
any one trespassing and mining from it."
He had previously said :
"It may be that constructive possession of
the coal, as distinct from the surface, is not per-
mitted where coal and sutface remain under one
title, and the surface is in the actual possession
of another."
In this connection the referee in bis first
report said, most convincingly:
"While by the leases in evidence there is a
severance of the coal for mining purposes, it
is not ab8<^ute or complete; a reversionary in-
terest, as noted above, being retained in the
lessors, contingent on the termination of the
leases for anv reason. But more than that:
Having regard to the effect given to the sever-
ance, in the rule Invoked, the purpose being to
protect the mineral estate from an adverse pos-
session of the surface, that which was intended
to protect that estate cannot be made the basis
of encumbering it It is in fact no concern of
the plaintiffs as to what has been done with
the coal, or how it has been treated by others.
Whatever has happened to it is not of their
doing, and neither adds to nor detracts from
their rights with respect to it, nor can tliey predi-
cate anything upon it."
Tlie only severance was tinder the leases
trma the holders of the Robinson title to de-
fendant These leases are not recognized by
plaintiffs, as affecting their rights in any
way, and they cannot be used to aid them
in establishing constructive possession of the
coal. We can see nothing in the facts to
Ratify the referee In changing bis conclu-
sion in this reject Had the plaintiffs or
their ancestors severed the coal from the
durf&oe, a different situation would be pre-
sented.
[t] Tbe only case cited by counsel for ap-
pellees upon this point Is Plummer r. Hill-
side Coal dc Iron Co., 160 Pa. 483, 28 AtL
863, and there tbe severance was made by
the undisputed owner of tbe land from
whom both parties claimed title. In the
present case there was nothing to show any
enti7 by plaintiffs into possession of tbe
subsurface estate, nie correct principle is
stated In Bainbrldge on the Law of Mines
&. Minerals (4th Bd.) 28, where it is said:
"In all freehold lands an adverse claim to the
mineral must be distinctly established againit
tbe owner of the surface. This may I>e effected
by the production of documents snowing th&t
the minerals have been conveyed, excepted or
reserved, so aa to have become vested io the
claimant"
[4] Nothing of the kind was shown to
the case at bar, and, as these plaintiffs weie
in neither actual nor constructive posses-
sion of the surface, tbey cannot be hdd
to have been in constructive possession of
the coal. The alleged severance was hot by
any act of theirs, but the leases were made
by persons who, according to plaintiffs' con-
tention, had no title to either estate, and no
power to sever them. If plaintiffs should
concede that these leases effected a valid
severance, it would follow that defendant
thereby acquired the right to mine the coal,
and this action of trespass could not be
maintained.
We think the referee very properly deter-
mined, in his first report, that, as plaintiffs
bad neither actual nor constructive XKtsses-
sion of tbe coal in dispute, tbey were not
in a position to maintain this action. At
this la decisive of the case, it becomes un-
necessary to consider other questions raised.
It is, however, by no means clear that, under
a fair and reasonable oonstruction of tli»
deed from Isaac OrifBn to Silas B. Robinson,
the defendant and Its predecessors wer»
without a paper title to tbe premises in dis-
pute. It requires a strained Inference, to
say tbe least, to support the conclusion that
Isaac Griffin, in the year 1828^ Intended to
retain a small piece of Isolated ground, ISVi
by 80 perches, at the rear of the tract be
conveyed to Robinson. All the facts point
strongly to the conclusion that all parties
interested believed that Robinson acquired
all of Isaac Grtflln's interest In that particu-
lar piece of land In 1828, and that they all
acted in accordance with that belief from
that time on. All the lines and angles and
distances tn the deed from Thomas to Isaac
Griffin, and in that from the latter to Robln-
s<»i, are Identical, except that of the norther-
ly line ; and taking Into consideration tbe
monuments upon the groimd, and the acre-
age intended to be conveyed, the longer line,
running 204% perdies from the river, seems
to be Imperatively required to meet the con-
ditions. No reasonable explanation was of-
fered for the discrepancy in tbe length of
the northerly line as it appears in the deed
made by Isaac Griffin to Robinson. Possibly
the length of the line was first noted by the
surveyor in figures, which afterwards were
accidentally transposed, so that 264 perches
appeared as 246 perches. Conjecture as to
this, however. Is useless.
But, leaving out of consideration the ques-
tion of paper title, and without reference
to tbe additional dalm that defendant and
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SHEAFEB T. WOOSSIDB
763
its predeceeaora had acquired titte to tlie
coal by possessioii, and to the farther dalm
tliat the actlOTi was barred by the statute of
llmltatloiis, it is quite sufficient to rest the
case upon the conduslon first reached by
the referee that, in the absence of actual
or constructiTe possession of the coal, plain-
tiffs bad no standing to maintain this ac-
tion.
The Judgment is reversed, and is here en-
tered for defendant
(2»7 Fa. 27S)
SHEAFER et al. v. WOODSIDB et aL
(Supreme Court of Pennsylvania. March 19,
1917.)
1. Patmekt «=366<:9 — Pbesttmption awd
BUBDKN OT PEOOF.
The rtde that after the lapse of 20 years
debts by specialty are presumed to be paid
does not bar the debt, but is merely a rule of
evidence affecting the burden of t>root, and with-
in that time the burden of proving payment is
on the debtor, and after that time it is upon the
creditor. The presumption is rebuttable by any
competent evidence tending to show that the
debt was not in fact paid, though it should be
clear and convincing, especially where suit is
sot brought until after the debtor's death.
2. MoBTOAGis @=»319(S) — Payment — Sum-
CiENOT OP Evidence.
Bvidence upon a scire fadaa issued in Au-
gust, 1915, upon a mortgage executed in 1876,
wherein the administrator of the estate of the
last surviving mortgagor pleaded payment, and
relied upon the presumption oi payment aris-
ing from the lapse of more than 20 years, Keld
sufficient to overcome the presumption of pay-
ment, so as to make payment a question for the
Jury.
Appeal from Court of Common Fleas,
Schuylkill County.
Sdre fiidas sur mortgage by A. W. Sheafer
and another, surviving executors of the estate
of Peter W. Sbeafer, deceased, against A. B.
Woodside and others. Judgment for defend-
ants non obstante veredicto, and plaintiffs
appeal. Reversed, and record remitted, with
direction to enter Judgment on the verdict.
Argued before BROWN, C. J., and MES-
TREZAT, PtXTTEB, FBAZEB, and WAU/-
mo, JJ,
John O. JMmscm, of Philadelphia, and
Woddbnry & Woodbury, of Pottsvllle, for ap-
pellants. John Robert Jones, of Pottsvllle,
for appelleeB.
FRAZER, J. In 1876 Mrs. A. B. Wood-
side and her three daughters, Virginia, Qer-
aldine, and Fannie, executed a bond and
mortgage to Peter W. Sbeafer, to secnre the
payment of |2,660 in two years, covering
property owned by them in the borough of
Pottsvllle. The mortgage was duly recorded
in the office for recording deeds in Schuylkill
county on June 24, 1876, in Mortgage Book
1 A H, page 395. Peter W. Sbeafer, the mort-
gagee, died in 1891, leaving a wUl in whidi
Arthur W. Sheafer and Henry W. Sheefer
were named as executors. At the time of his
death the bond and mortgage above ref erreid
to were found among his papers; the bond
having indorsed therewi. In the writing of
Peter W. Sheafer, a payment of $56, under
date of December 22, 1877. There is no ev-
idence that 'demand for payment of the in-
debtedness secured by the mortgage was
made untU after the death of the last sur-
vivor of the mortgagors, when the executors
of the estate of Peter W. Sheafer, on August
25, 1915, Issued a scire facias, to which the
administrator of the estate of Geraldine
Woodsi'de, the last survivor, pleaded payment,
and, In support of this plea, at the trial relied
upon the presumption of payment by reason
of lapse of time, and presented a i>olnt for
binding Instructions for defendant The trial
Judge reserved the point, anfd submitted to
the Jury the facts presented by plaintiff to
rebut presumption of payment. A verdict
was rendered in plainUfra favor for the
amount of the mortgage, with interest, aggre-
gating, after deducting the payment indorsed
on the bon'd, the sum of $8,727.87. Judgment
was subsequently entered ia ftivor of defend-
ant non obstante veredicto, whereupon plain-
tiff appealed.
A period of 36 years elapsed from the ma-
turity of the mortgage until the beginning of
foreclosure proceedings. Dr. O'Hara, a prac-
ticing physidan in Pottsvllle for 20 years,
called by plaintiff, who had been a family
physidan of the Wooldsides, although only
Fannie and Geraldine were living when he
first attended them, testified that la 1914,
shortly after the death of Fannie, Geraldine,
the survivor, spoke to him in reference to
the mortgage due the Sbeafer estate, and,
while the witness was unable to recall the
exact language of the conversation, he stated :
"She told me she did not know what would
happen to them, or what would happen to her,
or would become of her ; I do not exactly know
the verbatim statement, but she wept, and so
forth, and she said that the Sheafers held a
mortgage, or that she waa in a great debt to
them, in other words."
He testifleJd further she told him :
"She did not know what would become of
them now; she did not know whether Sheafers
will push the mortgage or not, and she was in
a very nervous state, not knowing what would
bectxne of her."
He also testified the family had been in
straitened financial circumstances, and had
received assistance from neighbors, and fur-
ther that Geraldine requested him to speak
to the Sheafers about the mortgage, which he
subsequently dfd by informing Lesley Sheafs
er that —
"one of those Miss Woodsides ia worried to
death about what will become of her now, since
the other sister is gone; she did not know what
will become of the place now."
Lesley Sheafer, called as witness by plain-
tiff, corroborated Dr. O'Hara's testimony as
to the conversation in relation to the Wood-
side mortgage, and testified to bringing the
4tSS>Vor oUier easM mo sam* topic and KET-NUMBER In all Ker-Numb«rad Dlgasts and ladexai
101A.-48
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754
101 ATLANTIC REPORTER
(Pa.
subject to the «.ttentlon of A. W. Sheafer,
one of the ezecutora of the Sheafer estate,
who, following that conversation, on Decem-
ber 22, 1914, wrote Miss WoodUAde, as fed-
lows:
"Dedr Miss Woodside: Information has come
to us through Dr. O'Hara that you are worried
in regarl to the mortgage which we hold on
your property nt 219 South Center street. We
therefore take this opportunity of assuring yon
that we have no intention of in any wa^ en-
deavoring to collect this mortgage or any inter-
est thereon during your lifetime, or so long as
it remains your property. We trust, therefore,
that you will not allow this matter to trouble
you in the least. Extending to you our sym-
pathy in your recent bereavement, we are,
yours very truly. A- W. Sheafer, for the Ex-
ecutors of Estate of P. W. Sheafer, Deceased."
A copy of tbis letter was also sent to Dr.
O'Hara, who snbseqnently saw Miss Wood-
sfde, and was informed by ber of baring re-
ceived the letter from Mr. Sheafer, and that
it gave ber much relief.
[1] The above is the evideince relied upon
by plaintiff to rebut the presumption of pay-
ment arising from lapse of time. The rule
that after the lapse of 20 years debts of ev-
ery kind are presumed to be paid is a rule
at convenience an'd policy, resulting from a
necessary regard for tbe peace and security
of society, and also for the debtor, who should
not be called upon to defend stale claims at
a time when witnesses are dead, and papers
lost or destroyed. Foulk v. Brown, 2 Watts,
209; Eby v. Eby'a Assignee, 5 Pa. 435. This
presumption does not bar tbe debt, howevef.
Dnlike the statute of limitations, it is merely
a rule of evidence affecting tbe burtlen of
proof, and no new promise la required as tbe
basis of an action. Eby ▼. Shy's Assignee,
supra. Within 20 years tbe burden of prov-
ing payment Is on the debtor; after that
time it shifts to tbe creditor. Reed t. Re6d,
46 Pa. 239. To rebut tbe presumption, any
competent evidence tending to show the debt
Is not In fact paid will be received. Although
It need not be of tbe same quality as required
to remove the bar of tbe statute of limlta-
tlona (Gregory ▼. Commonwealth, 121 Pa. 611,
15 Atl. 452, 6 Am. St Itep. 804 ; Devereuz's
EsUte, 184 Pa. 429, 39 Atl. 225), it should,
however, be clear and convincing, espedally
where suit la not brought until after the
death of tbe debtor, as in tbe present case
(FWeUty TiUe dc Trust Co. v. Chapman, 226
Pa. 312, 75 AtL 42^. In Foulk v. Brown, 2
Watts, 209, tbe rule was stated as follows :
"Within the 20 years, the onus of proving pay-
ment lies on the defendant; after that time it
devolves on the plaintiff to show the contrary,
by such facts and circumstances as will satisfy
the minds of the jury that there were other rea-
sons for the delay of the prosecution of the claim
than the alleged payment. And if these facts
are sufficient satisfactorily to account for the
delay, then the presumption of payment, not be-
ing necessary to account for it, does not arise.
Slighter circumstances are sufficient to repel
the presumption than are required to take the
case out of the statute of limitations — the latter
being a positive enactment, ol the Xicgislature i
the former merely an Inferenee oa which legal
belief is founded."
In Reed r. Reed, 46 Pa. 238, 242, It was
said:
"The presumption is rebutted, or, to speak
more aocurately, does not arise where there a
affirmative proof, beyond that furnished by the
specialty itself, that tbe debt has not been ^aid,
or where there are circumstances that sufficient-
ly account for the delay of tbe creditor."
[2] Whether tbe proof Is ample to rebut
the presumption of payment must necessarily
depend on tbe particular circumstnaces of
each case, and it is primarily for tbe court
to decide wbetber tbe facts. If true, are ade-
quate for the purpose for which offered, and
whether tbe facts relied upon are true is a
question for the Jury. Fidelity Title 4 Trust
Co. V. Chapman, supra. In Gregory v. Com-
monwealth, supra, tbe plaintiff, to rebut the
presumption of payment, relied upon ac-
knowledgments by the debtor, made to third
persons at various times, to tbe effect that
there was something between him and plain-
tiff which "bad never been thoroughly set-
tled." It appeared, however, that tbe refer-
ence might have been to the settlement of
certain other matters concerning an estate in
which the debtor was interested, and it was
held tbe testimony was too uncertain and
eq'Ulvocal in meaning to rebut the presump-
tion of paj'ment ; the court saying:
"Any competent evidence which tends to show
that the debt is in fact unpaid is admissiUe for
that purpose. The evidence may consist of tbe
defendant's admission made to the creditor him-
self (Eby V. Eby's Assignee, 5 Pa. 435), or to
his agent, or even to a stranger (Morrison v.
Funk, 23 Pa. 421 ; Reed v. Reed, 46 Pa. 239) J
but an admission will not be as readily implied
from language casually addressed to a stranger,
as when addressed to the creditor in reply to
demand for a debt (Bentley's App., 99 Pa. 50O).
It is of no consequence that the admissioD of
nonpayment is accompanied by refusal to pay;
the action is not founded on a promise, but on
tbe original indebtedness; the question, as
against the presumption, is whether or not the
debt is in fact unpaid,"
In Runner's Appeal, 121. Pa. 649, 15 AtL
647, statements made by tbe debtor of an In-
tention to pay were held sufficient for tbe
purpose of rebutting the presumption of pay-
ment. In Smith V. Schoenberger, 176 Pa. %,
84 AtL 864, dedaratlOQS by defendant to the
effect that the debt was not paid, made in
the presence of plaintiff, was held enough to
take tbe case to the Jury. In White v. White,
200 Pa. 565, 50 AtL 157, an admission by the
debtor, in tbe presence of a witness, that he
had no money to pay the interest on the debt
in question, was held ample to overcome the
presumption of payment. In O'Hara v. Oorr,
210 Pa. 341, 69 Atl. 1009, It was held that the
case was for the Jury, where witnesses for
the plaintiff testified that the deceased mort-
gagor stated he had purchased the mortgaged
premises, but could not pay the mortgage,
and would have to let the property go. It
has also been held that proof of the Inability
of tbe debtor to pay during the whole period
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6CHMITT T. CITY OF CARBONDAL.E
755
of the existence of tbe debt Is sndi drcnm-
stance as would explain tbe delay, and pre-
vent the presumption of payment arising.
For instance, in Taylor ▼. Megargee, 2 Pa.
225, 226, It was said that mere poverty, or
insolvency alone, was Insufficient to over-
tlirow the presumption of payment, arising
from lapse of time, "unless It be such as to
have created an abiding inability to pay dur-
ing all the time"; and In Devereux's Estate,
EiDpra, it was sald:
"The Bbilit? of the obligor to pay and the
pressing need of the obligee for money have
been recognized u circumstances which aid the
g resumption of payment. Hughes v. Hughes,
i Pa. 240. On the other hand, it was held in
Tilghmau v. Fisher, 9 Watts, 441, that one of
the intervening circumstances wliich may rebut
the presumption is the inability of the debtor
to pay within 20 years, and proof of a con-
tinued inability to pay was recognized in Tay-
lor V. Megargee, 2 Pa. 225, as sufficient to rebut
the presumptitm. There are convincing reasons
for the rulmg that proof of the insolvency of
the debtor alone will not rebut the presumption.
An insolvent may be possessed of property or be
in receipt of an income, and have the means
of payment; but proof of positive inability to
Eay is in effect that payment could not have
een made."
In the present case we have proof of a
long-contlnned laabllity of the debtors to pay;
that the surviving debtor recognized tbe ex-
istence of the indebtedness In 1914, stating In
effect her Inability to pay, and requesting tbe
witness to see the creditor and ask Indul-
gence; that the witness compiled with tbe
wishes of the mortgagor, and, as a result of
the Interview, the debtor received the letter
In evidence. Informing her that no steps to
enforce payment of the indebtedness would
be talten during her lifetime, or so long as
tbe property remained In her possession.
This evidence tlie jury accepted as true, and
was sufficient, under the decisions, to over-
come the presumption of payment arising
from lapse of time.
The Judgment is reversed, and the record
remitted, with direction that Judgment be en-
tered on the verdict.
(aw Pa. tfi)
SOHMITT V. cm OF GABBONDALB et aL
(Supreme Court of Pennsylvania. April 16,
1917.)
1. Evinxncx ^=9372(11) — Aitoient Dootn
MKirre— Map.
A map found In the office of a corporation,
which had conveyed land shown thereon, was
admissible as an ancient document, where it
was more than 60 years old, and appeared to be
genuine, and had been acted upon.
2. AovBRSK Possession 9=38(1) — Encboach-
MXNT on Public Pabk— Eftect.
A citizen acquires no rights as against the
public by tbe mamtenance of a fence in a public
park, as the public's rights are not lost by en-
croachment, however long continued.
3. Dedication «=>50 — Public Pabe — Ex-
TKRT.
A city's acceptance and use of a paric em-
braces all the land dedicated for that purpose.
' although some parts thereof along the border
lines may not have been actually used therefor.
4. Estoppel ®=>68(5) — Bminbmt Douain —
Public Park.
Where a building has been erected on land
dedicated as a public park, an ordinance pro-
viding for tbe condemnation of the land occu-
pied by the building does not estop the munici-
pality from claiming the property, especially
where no viewers were appointed, and nothing
further was done in reference to the ordinance.
Appeal from Court of Common Pleas,
Lackawanna County.
Bill in equity for an Injunction by W. H.
Arthur Schmitt against the City of Carbon-
dale and others. F'rom a decree on final
hearing, dismisaing the bill, plaintiff appeals.
Affirmed.
Argued before BROWN, O. J., and POT-
TER, STEWART, FBAZER, and WAI,-
UNG, JJ.
A. A. Vosburg, of Scranton, and J. B. Jen-
kins, of Carbondale, for appellant J. E.
Brennan, of Oarbondale, for appellees.
WAIiLING, J. This suit In equity In-
volves the question of the location of the line
of a public highway. Prior to 1843, the
Delaware & Hudson Canal Company was the
owner of a tract of land in the village (now
dty) of Carbondale, and in plotting the same
a triangulai* piece of land was left open for
public use as a park, and known as "the Pa-
rade."' It is shown, with well -defined bound-
aries, on an ancient map in the possession of
the company. Iiots appear on the map,
which were conveyed l)ounded by the Parade.
For nearly 50 years, prior to 1890, the Pa-
rade was used generally by the public as a
passageway and for all purposes of a puit^
He conunon. Meantime streets bad been
<^ened on tbe borders of the Parade; Main
street on the west. Sixth avmue on the
south, and Park Place <m the northeast In
or about the year last mentioned the elty
constructed an Iron fence around that part of
the Parade inclosed by these streets, and
therein was placed a m<mument and a foun-
tain ; and, at about the same time, the cart-
way In Sixth avenue was paved. Oiurch
street extends In a northerly and southerly
direction, and Is a short distance east of the
intersection of Park Place and Sixth avenue.
It Is about 465 feet from Main and Chur«^
streets, and the land facing on the aonth
side of the Parade (now Sixth avaiue) was
subdivided Into lots as a part of the origi-
nal idot
In 1843 the company sold one of the lots
facing 65 feet on the Parade to James Clark-
son, a part of which by sundry conveyances
Is now owned by plaintiff, and thereon is a
two-story frame building, which stands about
one foot back from tbe south llue of the
Parade as originally dedicated. However,
from the time of or shortly after the pur-
chase by Clarkson down to this time the
owners of the lot have had adverse posses-
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101 ATLANTIO REPORTEB
(Pa.
slon of a strip of land some 6 feet In width
extending In front of the lot and within the
lines of the Parade as dedicated. This strip
of land was inclosed for many years as part
of the lot by a fence, and near the west end
thereof was formerly a well, and toward the
east end for about 30 years last past a porch
stood thereon in front of the buUdlng, and
vome of the strip of land has been used as
a lawn and flower bed. The owners of some
of the other lots have also made encroach-
ments upon the south side of the Parade.
The original deed to Clorkson describes his
lot as being 130 feet In depth, from the Pa-
rade south, which it is exclusive of said 5
feet. While there la some controversy, yet,
taking the case as a whole, it fully warrants
the finding that plaintiffs paper title does
not Include the diluted land; and It ap-
pears with equal deamess that plaintiff and
those through whom he claims title have had
exclusive possession thereof for much more
than 21 years.
In 1897 the dty passed an ordinance pro-
viding, as we imderstand the facts, for the
condemnation, inter alia, of the land here at
Issue, and a report was made that an agree-
ment with the property owners as to the
damages and benefits could not be bad ; but
no viewers were appointed, and nothing fur-
ther done with reference thereto. In 1915
plaintiff, in remodeling bis building, was pro-
ceeding to add a new store front thereto,
which would occupy a portion of said 5 feet,
when be was prevented by the officials of the
dty, and filed this bill to restrain their in-
terference. After a full bearing the court
below entered a final decree dismissing the
Ull, from which plaintiff took this ai^eaL
[1] The record seems free from error.
The map in the office of the Delaware &
Hudson Canal Ckimpany was found in the
pr(H)er custody, was shown to be more than 30
years old, was to all appearances genuine,
had been acted upon, and was competent as
an andent document Commonwealth v. Al-
burger, 1 Whart. 469; Huffman & Foreman
V. McCrea, 66 Pa. 96 ; Smucker v. Penna. R.
a. Co., 188 Pa. 40, 41 AtL 457. And see Bar-
nett T. Yeadon Borough, 37 Pa. Super. Ot.
97.
[2] Plalntifrs claim by adverse possession
would be well founded as against private
parties, but cannot prevail against the pub-
lic, whose rights are not lost by encroach-
ment, however long continued. Common-
wealth V. Moorehead, 118 Pa. 344, 12 Atl.
424, 4 Am. St Rep. 599 ; McGuire v. Wllkes-
Barre, 36 Pa. Super. Ct 418.
[3] It scarcely requires the dtatlon of au-
thorities to support the proposition that a
dtlzen acquires no rights as against the pub-
lic by the maintenance of a fence or building
in a highway, and the same rule applies
to a public park. The acceptance and use
by the public of the Parade in question as a
park embraced all the land dedicated for
that purpose, although some parts th«%of
along the border lines may not have been
actually used as sudL It is like a dedicated
street, the acceptance of which constitutes
It of the full width, although only the trav-
eled portion may be used by the public.
See State Road, 236 Pa. 141. 84 Atl. 686.
The disputed land being in the Parade, the
fact that It is not within Sixth avenne as
opened on the ground Is not controlling.
As plaintiff's lot in the original deed was
bounded on the north by the Parade, he Is
not helped by the fact of a surplus in that
blodt If he Is entitled to that, or any part
of it, he must find it within the lines of
the block, and not in the public park or
street.
[4] The passage of the ordinance does
not estop the dty from daiming the land in
question ; and the fact that the proceedings
thereunder were apparently abandoned would
suggest that they may bare been started nn-
der a misapprehension. The facts found by
the learned chancellor are in accordance
with the evidence and his legal conduslons
seem to be entirely accurate.
The assignments of error are overruled,
and the decree Is afllrmed, at the cost of the
appellant.
(ST Pa. sss)
EWALT V. DAVENHILIi et aL
(Supreme Court of Pennsylvania. April 16,
1917.)
1. Trusts «=s9 — Spendthbift Trust — Cbs-
TUIS.
A spendthrift trust may be created as well
for a woman as for a man.
2. Trusts «=»9— Separate TJsk Trusts— Va-
LIDITT.
A testator, dying in 1S46 devi>ed land to his
son J. for life, with remainder in trust for J.'s
children and their heirs, and gave J. power to
revoke such trnsta by will and to create other
trusts; and J., dying in 1870, by will revoked all
such trusts, and devised the estate in triut to
pay an annuity to his wife and the balance of
the income to his son W., bom in the lifetime
of his grandfather, and on hia death the bal-
ance in trust for his children in such shares as
they would be entitled to if be had died intes-
tate, and gave W. power to appoint the sbarta
of his children in trust tor- the sole aad sepa-
rate use of such children and to the issue of any
deceased child; and W., dying in 1877, direct-
ed that the share of each of his three daughters
be held in trust for them until they reached 2h
and created sole and separate use trusts and
spendthrift trusts for them, and directed that
on the death of any daughter her share should
be paid to her issue during the life of the sat-
viving daughters, and if there was no issue then
to the survivors for life, and on the death of
the last survivor then to their issue. Bold, that
the sole and separate use trusts were void, be-
cause the daughters were not married or in 'con-
templation of marriage at the time of the crea-
tion of such trusts.
3. Powers <s=36(1) — Consteuction — Cbea-
TioN OF Spendthrift Tbubis.
Such spendthrift trusts tor the danghtera
of the last testator were witliin the scope of the
power of appointment conferred upon him by
the will of his deceased father.
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EWAL.T T. DAVSNHIIilt
757
4. Wills «=>634(9)— Vestkd Iittebbsts— Tdoc
OF Vestino.
The interests of such last testator's three
daughters vested upon the death of their grand-
father, the creator of the power.
6. Pkrpetdities «=»4(15)—Remaindeb8— Va-
lidity.
Such gift to the issue of the daughters of
the last testator violated the rule against per-
petuities.
6. Pebpetuities «=>4(22)— Pabtiai. Irtaudi-
TT— Severable Gift.
The gifts for the lives of such last testa-
tor's daughters were severable, and were not af-
fected by the invalidity of a gift of the remain-
ders to their issue.
7. Tetjsts ^=)52— Partial Invalidity— Gift
OVE»— EFrECT.
Where an active trust is created to pay the
income to one for life, it will not be defeated
because of the failure or invalidity of the gift
over of the corpus of the estate.
8. Pebpetcities ®=»4(3)— Natttbe of Rule.
The rule against perpetuities is directed
against future contingent estates, and has no
reference to vested estates.
Appeal from Coart of Common Pleas, Pbll-
adelpbla County.
BUI In equity for partition by Heniy C.
BwBlt against Catharine M. DarenhiU and
otbera. Bin dismissed on denmrrer, and
plaintiff appeals. Decree affirmed.
Argued before BROWN, O. J., and STEJW-
ART, MOSGHZISKKR, FBAZBR, and WAIr
IiI^U, J J.
M. T. McManua, of Philadelphia, for appel-
lant Henry Preston Krdman, of Phlladel-
pbia, for appellees.
WaJjUNQ, J. This case Involves the ques-
tion as to whether certain real estate situate
on the southeast comer of Seventh and Chest-
nut streets, Philadelphia, is now so held In
trust as to prevent Its partition. This land
was formerly owned by William Swalm, Sr.,
who died in 1846, and by his last will devised
the proper^ in trust for his son James for
life, and then in trust for the latter's cbU>
dren and their heirs, giving James power,
however, to revoke by will all trusts and in-
terests expressed by the testator, and to di-
rect or to appoint such new or other trusts
with respect to said property as to him might
seem proper. James Swahn died In 1870,
leaving a last will In which he referred to
the power given him in his father's will, and
In execution thereof revoked all the trusts
and Interests so created by his father, and
devised the estate In trust to pay an annuity
te his wife for life and balance of the net In-
come to his son William Swalm, Jr., free
from the control of bis creditors, and provid-
ed, further, that after the son's death the
proi)erty should be held "In trust for the
children of the said William Swalm and the
Issue of eadi as may be deceased, In such
parts, shares and proportions, and tor such
estates as they would be entitled to. If the
said WlUlam Swalm had died Intestate."
William Swalm, Jr., was then given the pow-
er by will to appoint the shares of hla chil-
dren or of the children of any deceased child
to trustees, "In trust for the sole and 8epa>
rate use of said dilld or issue of said de-
ceased child, and under such limitations and
restrictions as In his discretion he may deem
best, so as to secure the same to the said
child or Issue of deceased child, for bis, her
or their sole and separate use, maintenance
and enjoyment"
WlUiam Swalm, Jr., died In 1877, testate,
and left surviving him three daught^s, who
at the time of the execution of his will were
minors, unmarried, and not In contemplation
of marriage, although they did subsequently
marry, and two of them are still living.
In his will, William Swalm, Jr., pursuant
to the power vested In him under the will of
Ws father, directed that the share of each
of his children, or the dilldren of any de-
ceased child, be held In trust ft>r them until
they reached the age of 21 years, "and as
and after each of my said children respective-
ly arrive at the age of twenty-one years, to
pay her said part and share of the said rents,
Issues, profits. Income, and dividends to her
directly whether she be covert or sole, dur-
ing all the period of her natural life, for her
separate use and benefit, the said Income
to be and at all times to remain free and ez>
empt from the power and control of any
husband, and from liabilities for any debts
or engagements. The receipts of my children
for such payments to them, whether covert
or sole, shall be deemed and taken to be good
and sufficient vouchers and acquittances for
the said trustees or either of them, In the
settlement of their accounts." OThe will also
provided that. In the event of the death of
any of the dilldren, her share should be
paid to her Issue during the life of the sur-
viving children, or In case there should be
no Issue, then to the survivors for life, and,
upon the death of the last survivor of the
children, then to their Issue, or, if no Issue,
then to the persons who would be entitled un-
der the provisions of his father's wilL Wil-
liam Swalm, Jr., was born before the death
of his grandfather.
Plaintiff Is the owner by purchase of the
Interest of one of the daughters of William
Swalm, Jr., In the premises, and as such
filed his bill for partition In this case; and
from the decree of the court below, sustain-
ing defendants' demurrer and dismissing the
bin, this appeal was taken.
The action of the court below was based
upon the construction previously placed upon
the wills In question by the orphans' court of
said county, where the questions were ex-
haustively and ably considered, and In our
opinion correctly decided. The trusts creat-
ed by the last will of James Swalm were un-
questionably valid as a due execution of the
power contained In the will of his father,
and created a spendthrift trust for the life
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768
101 ATLANTIC REPORTBR
(Pa.
of WilUam Swalm, Jr., wltb remainder over
as therein provided. The real question Is as
to the effect of the trust provisions In the
will of William Swalm, Jr. So far as making
a testamentary disposition <rf the property,
James Swalm was practically the ovmer In
fee; and the testamentary trusts so created
and powers so conferred by him mnst be
given effect.
[1] A careful reading of his will shows
that he conferred upon WUIlam Swsdm, Jr.,
a power saflSclently broad to enable the latter
to create for his children a spendthrift trust,
as well as a separate use trust True, when
the will of James Swalm was executed, the
children of William Swalm, Jr., consisted of
three daughters, yet there was nothing to
Indicate that sons might not thereafter be
bom to him. The words of the will above
quoted, empowering his son William by his
last will to place such property "in trust for
the sole and separate use of said child or
Issue of said deceased child, and under such
limitations and restrictions as In his discre-
tion he may deem best, so as to secure the
same to the said child or issue of deceased
child, for his, her, or their sole and separate
use, maintenance and enjoyment," seem to
indicate an intent to authorize the creation
of both separate use and spendthrift trusts.
And William Swalm, Jr., fully executed such
power In his last will as alxive quoted. A
spendthrift trust may be created as well for
a woman as for a man. Ashhurst's Appeal,
77 Pa. 464; Hughes- Hallett v. Hughes-Hal-
lett, 152 Pa. 690, 594, 20 Atl. 101.
[2] While the separate use trusts were In-
effective, because the daughters were neither
married nor in contemplation of marriage,
yet by said wills spendthrift trusts were
created In favor of the daughters of William
Swalm, Jr., and valid during their lives. No
set form of words is necessary to the creation
of a spendthrift trust Graeff v. De Turk,
44 Pa. 527, 531; Winthrop C!o. v. Qinton,
196 Pa. 472, 46 Atl. 435, 79 Am. St Rep. 729.
See, also, Shower's Estate, 211 Pa. 297, 60
Aa 789; Dunn & Riddle's Appeal. 85 Pa.
M.
[3-1] So far as creating a trust for his own
children, or for the issue of any of his chil-
dren who may have died in his lifetime, Wil-
liam Swalm, iJr., was acting within the
powers conferred upon him by the will of
his father; but he went further, and attempt-
ed to continue the trust for various uses and
purposes f<Hr an Indefinite time beyond the
lives In being at his death. To that extent
the trust so created in invalid, as transgress-
ing the rule against perpetuities, and because
no such power was vested in him by the will
of James Swalm. However, the trust so des-
ignated in the will of William Swalm, Jr., Is
severable, so that the trust created for his
children may stand, and that attempted to
be created for others beyond fall. Whit-
man's Estate, 248 Pa. 285, 93 Atl. 1062.
[7] Where an active trust la created to
pay the income to one for life, it will not be
defeated because of the failure or invalidity
of the gift over of the corpus of the estate.
On the death of WlUiam Swaim, Jr., the title
to the property In question vested in Ills
children as devisees under the will of their
grandfather, James Swaim, but their enjOf-
ment thereof was subject to the trust created
by their father's will.
[t] The rule against perpetuities la directed
against future contingent interests and baa
no reference to vested estates: Johnston's
E^t, 186 Pa. 179. 39 Atl. 879. 64 Am. St Sep.
621. As the children's estate vested on th^r
father's death, and as he was in being at the
death of William Swalm, Sr., so far as con-
cerns them the rule against perpetuities has
not been violated. It ds the vesting of tiie
estate within the life in being and 21 yean
thereafter that fixes its status. Ttie fact
that whoi vested, It may continue beyond
that period, is not materiaL And ctnnpntlDg
the time from the creation of tlte power by
the will of James Swalm, It is still more ap-
parent that the rule has not been transgress-
ed. In our opinloa the will of WlUiam
Swaim, Jr., creates an active trust during
the lives of his daughters, and the real estate
embraced therein cannot now be partitioned.
The assignment of error is overruled, and
the decree is affirmed, at the cost of appellant
(£7 Fa. «i)
In n POTTER'S ESTATE.
Appeal of HALLSTKAD.
(Supreme Court of Pennsylvania.
1917.)
AprU 16,
1. Wills 4=9452— DisiNHBsrrAKOB—lNTBRT.
Every doubt must be resolved in favor of
the beir at law, who cannot be disinherited ac-
cept by express words or by necessary impli-
cation.
Z. Wills iH-.jIIO Pbmumptiow AoAinerr In-
nSSTAOT.
The presumption is that a testatrix intad-
ed to dispose of her residuary estate.
8. Wills «=9509— Revocation or RxsiDCAKr
Ola U8B— ErrxcT.
The revocation by codicil of a residuarj
clause in favor of a legatee, effecting a gift over
to the next of kin of the testatrix, did not pre-
clude such lep;atee from sharing in the gift to
the next of km of which he was one, wbcia he
was not excluded by express language or by
necessary implication.
Appeal from Orphans' Court, Ladiawanna
County.
Appeal by Jesse Wilkins Hallstead, by his
mother and next friend, Maud Hallstead,
from a decree dismissing exceptions to adju-
dication in the estate of Lucy A. Potter, de-
ceased. Reversed, and record remitted to the
court below for distribution of estate.
Argued before BROWN, C. J., and POT-
TER, STEWART, FRAZER. and WAL-
LING. JJ.
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IN KB POTTER'S ESTATB
759
J. E. Slcbler and H. D. Oarey, both of
Scranton, for appellant. W. L. Scbanz and
a. B. Gaxdnec. botb of Scianton, for ap-
pellee.
WAIiLINO, J. Lacy A. Potter made her
will In 1906, and in tbe eighth and ninth
paragraphs gave her nephew, Erwin M. Hall-
stead, certain furniture and household ef-
fects, and the fourteenth paragraph thereof
Is:
"Fourteenth. I order and direct that after the
payment of all debts, legacies, expense* and
charges herein mentioned, the money arising
from my estate shall be safely invested by my
cxecator in bank or real estate securities, and
the income therefrom paird only annually to my
said nephew, Erwin M. Hallstead, during the
term of his natural life. Should the said Kr-
win M. Hallstead die leaving children, all my
remaining estate shall go to said children, ab-
solutely, share and share alike, and should he
die leaving one child to survive him, then all
the said estate to go to said child absolutely.
But shonld the said Erwin M. Hallstead die
without leaving any child to survive him, then
all niy said remaining property, and estate is
to go to, and bo divided amongst my next of
kin in accordance with the intestate laws of the
state of Pennsylvania, in same manner as though
I had not made any will, except that my broth-
er, C. W. Moredock, shall not participate in said
distribution, or receive any part of my estate,
as I feel tiiat I have already helped him in
-varioos ways to as mach as he woom be fairly
entitled to receive."
Mr. Hallstead was married in 1907, and
died in 1912, leaving a posthumous child.
Jesse WUklns Hallstead. the appellant In
1914 Mrs. Potter made a codicil to said will,
which Is, inter alia, as follows:
"IFIrst. My nephew, Erwin M. Hallstead, hav-
ing died since said will was executed, I hereby
revoke all portions of the eighth, ninth and four-
teenth paragraphs' of said will, by which any
property, or the nse thereof was given or be-
Sneathed to said Erwin M. Uallstead, or to his
bOdren or child should any survive him. • • •
"Ninth. All the terms and conditions of said
will are to bo and remain in full force except
as revoked or modified by this codiciL"
Testatrix died childless shortly after the
execution of the codldl, leaving as her next
of kin her said brother, now deceased, two
nieces, daughters of a deceased sister of tes-
tatrix, and appellant, the grandson and only
lineal descendant of another deceased sister.
[1] Mrs. Potter's executor filed an account
showing a fund for distribution, no claim to
^^diicb was made on behalf of the brother or
his children; and from a decree of the or-
phans' court awarding 'same to the two
nieces, to the exclusion of appellant, this ap-
peal was taken on bis behalf. Admittedly,
as between him and the nieces, he Is en-
titled to one-half of the fund, unless exclud-
ed therefrom by the terms of the will and
<»dicil. After a careful examination, we are
of the opinion that there is no such exclu-
sion, and that appellant as next of kin is en-
titled to share in the distribution In accord-
ance with the intestate laws. Every doubt
must be resolved in favor of the heir at law,
who cannot be disinherited except by express
words or necessary Implication. Bender v.
Dietrich, 7 Watts & S. 281; Brendllnger y.
Brendllnger, 26 Pa. 131; France's E>state, 75
Pa. 220; Bruckman's Estate, 196 Pa. 363, 45
AU. 107a
[2, 3] The presiunptlon Is that testatrix In-
tended to dispose of her residuary estate,
and construing together the will and codicil,
it may fairly be determined that she did so.
The original residuary bequest to Mr. Hall-
stead and his child contained in the will was
revoked by the codldl, and thereupon the
alternative residuary bequest to the next of
kin took effect. This thought is emphasized
by paragraph 9 of the codicil, wherein testa-
trix expressly continues in full force all of
the terms of the will except as revoked or
modified. Now the codicil revoked all por-
tions of paragraph 14 of the will, by which
any property was given or bequeathed to Mr.
Hallstead dr to his surviving child, whldi re-
voked all of the paragraph down to and in-
cluding the words "then all of said estate to
go to said child absolutely," and thereby ho
was deprived of the bequest as sole resid-
uary legatee. But only so much of the para-
graph was revoked as gave something to
Hallstead or his child. The original will
gave them nothing as next of kin ; for by its
express terms nothing was given to the next
of kin until after the death of both HaU-
stead and his child. The codldl by its terms
revoked only what had been given in the
will, and did not att«npt to revoke the rights
of the next of kin, which arose by virtue of
the codicil Itself and had no prior existence.
She did not revoke that which had no exist-
ence until after the revocation. Whatever
rights the next of kin have as residuary leg-
atees had their inception in the codldl, be-
cause the will gave them nothing as such
except upon a condition that never occurred,
to \vit, the death of Hallstead and his child
during the life of testatrix. But the codldl
was a republlcat;ion of the will as modified.
and thereby the residuary estate was given
to all the next of kin as they would have
taken under the intestate laws, with the
single exception that the brother was ex-
cluded therefrom. At the time of such re-
publication Mrs. Potter undoubtedly knew
that appellant was one of her next of kin,
and had she dedred to exdude him could
have so stated, or, had she then Intended to
give all of her residuary estate to the two
nieces, that could have been stated in the
codldl. But the mere fact that testatrix re-
voked the clause making appellant sole lega-
tee, without more, does not predude him
from sharing in the gift to the next of kin
of which he is one. Construing the will and
codicil by the language used, we find nothing
to prevent appellant from so sharing. He
is excluded neither by express language nor
by necessary implication: In fact, as the ex-
press exclu.sion Includes the brother only, the
implication wou)d be the other way, as It
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760
101 ATIiANTIO REPORTER
(Pa.
also would becanse of the fact tbat the resid-
uary estate Is given to the next of kin as a
class and not to any particular individuals.
Because Mrs. Potter did not desire appellant
to have the entire residuary estate does not
diange his status as next of kin or deprive
him of the right to share with the others as
such. See Hitchcock t. Hitchcock, 35 Pa.
393; Wain's Estate, Vaux's Appeal, 156 Pa.
194, 27 AtL 59; Gorgas's Estate, Robinson's
Appeal, 166 Pa. 269, 31 AU. 86; FuUer's Es-
tate, 225 Pa. 626, 74 Atl. 623.
The cases above dted seem to support our
conclusion although no two wills are exactly
alike.
McGovran's Estate, 190 Pa. 375, 42 AtL 705,
relied on by the court below. Is not in point,
except as applicable to the brother. There
the residuary bequest was, "The rest and
residue of my estate I direct to be distribute
ed by my executor hereinafter named under
the Intestate laws of Pennsylvania, but in no
event is Mrs. Mordock, widow of Campbell
Murdock, or her three children, and Mrs.
Kate Johnson, or her two children, to receive
any portion of my estate in any shape or
form," and It was held that those so express-
ly excluded were not entitled to share in the
distribution; whereas In our case there Is no
express exclusion of appellant.
The assignments of error are sustained,
the decree is reversed at the cost of appel-
lees, and the record Is remitted to the court
below that distribution may be made in ac-
cordance with this opinion.
(ZCT Pa. M») '
a G. QAWTHROP CO. t. riBRB SPE-
CIALTY CO. et al
(Supreme (?ourt of Pennsylvania. April 9,
1917.)
1. AssionKENTS FOB Beitkitt OT CREOrrOBS
^»298— RiOHTfl OF Ceeditoks— TlMK.
The rights of creditors are fixed aa of the
date of an assignment for the benefit of credi-
tors.
2. Pbircifal and Subett $=»194(1) — Con-
TRiBtmoN— Claim of Cobubett.
Except as to the right and property con-
nected with the transaction, the claim of a
cosurety for contribution is no higher than that
of any other claim,
8. Stjbbooation «=»1— Gbottndb— EQurrr.
Subrogation, which k founded upon equity,
will never be granted to the prejudice of other
rights of equal or higher rank.
4. Assionmbntb fob Benefit or C!bbditobs
«=B298—CLAncB— Equities.
CSaims against an insolvent estate existing
at the date of an assignment for the benefit of
creditors are at least as strong In equity as a
claim thereafter arising, even though the ob-
ligation out of which it arose antedated the as-
signment
6. SrBBOOATiON «=»21— Payment— Gbottnds.
It is not a liability to pay, but an actual
payment to the creditor, whicli raises the equi-
table right to be subrogated to his remedies.
6. Assignments for Benefit of Cbeditobs
4s>215— Status of Abbionee.
Aa assignee for the benefit of creditors
stands in the place of the assignor.
7. OOBPOBATIOKS ^=oS6R(l) — iNSOrVENCT —
Rights as Between Subxties — Gknebal
Cbeditob.
A surety on the bond of the treasurer of
the corporation loaned $5,000 to the corpora-
tion on its note, and subsequently made an as-
signment of his property, including the note, to
a trustee for the benefit of his creditors, and
the estate of a cosurety paid the corporation
the amount of the treasurer's default and claim-
ed subrogation to the rights of the first surety
for the amount of the dividend awarded him
against the corporation In receivership, in pref-
erence to his general creditors whose claims
arose before the treasarer's default BM, that
the estate was only a general creditor.
8. Appeal and Erbob €=>1170(12)— Decbee
ON E2XCBPTI0NS TO AUDITOB'fl REPOBI^RB-
VEB8AL.
Where the lower court's decree sustains ex-
ceptions to an auditor's report, and the con-
trolling exceptions are well taken, and the decree
is properly entered, it Will not be reversed be-
cause it apparently su^tainfi some minor excep-
tions not well founded, nor because of minor
inaccuraoies in the opinion filed with the decree.
Appeal from Court of Conunon Pleas, Ches-
ter County.
Proceeding by the CL G. Gawthr<H) Com-
pany against the Fibre Specialty Company,
George W. Taft, president, and J. W. Brain-
ard, secretary. Prom a decree sustaining
exceptions to the auditor's report and direct-
ing the disposition of dividends, D. Duer
Philips and others, executors of James li.
Worrall, deceased, appeal. Affirmed.
Argued before BROWN, C. J., and MES-
TREZAT, STEWART, MOSCHZISKBR, and
WALIyING, JJ.
Isabel Darlington and Thomas S. Butler,
both of West Chester, for appellants. A. M.
Holding, of West Chester, for appellee.
WAIiUNG, J. This Is & question of dl»-
tributlon In an Insolvent estate. On April
28, 1913, receivers were appointed for the
Fibre Specialty Company, a corporation.
Prior thereto, on July 23, 1J912, the company
for value gave George W. Taft a demand
note for $5,000. J. W. Bralnard was of-
ficial treasurer of the cmnpany, and in 1903
gave a bond in $5,000, with Taft and James
M. Worrall (now deceased) aa sureties, condi-
tioned for the faithful performance of his
duties as such treasurer. June 26, 1913, Mr.
Taft made an assignment of his estate, spe-
cifically including the $5,000 note, to Harry
W. Chalfant, for benefit of creditors. In
1914 the receivers filed an account, and an
auditor was appointed to make distribution
thereof, to whom the Taft note was present-
ed by the assignee, and a dividend amount-
ing to $2,157.15 awarded thereon. Mr. Braln-
ard, while treasurer of the company, made
default, by reason of which the receivers
brought suit against him and his sureties on
the bond in the court of common pleas of
Chester county, at the January term, 1915,
and recovered a verdict for $3,809.02, on
which Judgment was entered, and affirmed
by this court in case of Marshall v. Bralnerd
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SCHUTI.KILL COUNTY ▼. WIEST
76t
2S3 Pa. 35, 97 AtL 1057. Bralnard and Taft
being insolvent, this judgment was, on April
20, 1916, paid by appellants as executors of
James M. Worrall, deceased, to whom one-
half of the Judgment was thereupon assigned.
After the award of the dividend to Chal-
fant on the Taft note, the claim against
Bralnard and his sureties on the bond hav-
ing been brought to the attention of the court
below, it was there orderad that the dividend
be retained by the receivers until the final
determination of the action on the bond,
whicdi was done. The receivers in a subse-
quent final account charged themselves with
the $2,157.15 dividend, which the auditor
thereafter awarded appellants by way of
contribution firom Taft as their cosurety.
The learned court below sustained exceptions
to the auditor's report, and by final decree
ordered the dividend paid to Ghalfant on the
Taft note ; and from that decree this appeal
was taken.
The $5,000 note was a matter entirely sep-
arate and apart from the treasurer's bond,
and had no connection with Mr. Bralnard or
his account with the company. Appellants'
right to contribution or subrogation arose
when they paid the Judgment Then they
were equitably entitled to an assignment of
the judgment, and also of any collateral or
other property held by the receivers to se-
cure the payment of the bond. But they
were not entitled to the dividend awarded to
the Taft note, as that was an entirely sepa-
rate matter. The note was a part of Taft's
general estate, and appellants had no special
equity In that Except as to matters connect-
ed with the bond, appellants are merely
creditors of Taft to one-half the amount they
paid on account of the surety bond; and they
only became such creditors when they paid
the Judgment on April 20, 1916. Prior to that
time they had no claim against Taft See 8
Modem American Iiaw, p. 224.
[1-S] It is not easy to see how appellants
can secure preference over other creditors
whose claims were in existence at the time
of the assignment, for as a general rule the
rights of creditors are fixed as of that date.
Sweatman's Appeal, 150 Pa. 369, 24 Atl. 617;
Jamison & Co.'s Assigned Estate, 163 Pa. 143,
29 Atl. 1001 ; Potter v. Gilbert 177 Pa. 159,
35 Atl. 697, 35 L. R. A. 580; Chestnut Street
Trust & Saving Fund Co.'s Assigned Estate,
217 Pa. 151, 66 Atl. 332, 118 Am. St Rep. 909.
Except as to rights and property connected
with the transaction, the claim of a cosurety
for contribution is no higher than that of
any other claim; and subrogation, which is
founded upon equity and benevolence, will
never be granted to the prejudice of other
rights ' of equal or higher rank. Fritch v.
Citizens' Bank, 191 Pa. 283, 43 Atl. 394;
Knours Appeal, 91 Pa. 78; Grand Council
of Penna. Royal Arcanum v. Cornelius, 198
Fa. 46, 47 AtL 1124; Shlmp's Assigned Has-
tate, 107 Pa. 128. 46 AtL 1037. Claims
against an insolvent estate which were in
existence at date of the assignment, would
seem at least to have as strong an equity as
one thereafter arising, even though the ob-
ligation out of which it arose antedated the as-
signment "It is not a liability to pay, but ac-
tual payment to the creditor, which raises the
equitable right to be subrogated to his reme-
dies." Kyner v. Kyner, 6 Watts, 221; Hoover
V. E|>ler, 52 Pa. 522; Forest Oil Company's
Appeals, 118 Pa. 138, 12 Ati. 442, 4 Am. St
Rep. 584. Subrogation will never be enforced
to defeat a superior or even an equal equity.
Robeson's Appeal, 117 Pa. 633, 12 AU. 51. A
case quite similar to this in principle is that
of Farmers' & Drovers' Bank v. Sherley et
aL, 12 Bush (75 Ky.) 304.
[I, 7] Creditors of Taft acquired no special
rights because of the transfer of the note to
Ghalfant as an assignee for benefit of credi-
tors stands in the place of the assignor (Pot-
ter V. Gilbert, 177 Pa. 159, 35 Atl. 597, 35
Ll R. a. 580), and not in that of a bona fide
holder for value. In Marshall v. Bralnerd,
supra, it is held that the Taft note could not
be Interposed as a set-oCt against the suit
on the treasurer's bond. Whether or not
such bond should have been set oS against
the claim on the note does not seem now im-
portant; in any event it was not so used;
and the real question here is as to the equita-
ble rights to the fund in question between
the Worrall estate and other creditors of
Taft. The queStiMi as to the validity of the
assignment to Ghalfant is not before the
court The other assignments of error do not
seem to require special consideration.
[I] Where the lower court makes a gen-
eral decree sustaining exceptions to an audi-
tor's report and the controlling exceptions
are well taken, and the right decree is en-
tered, an appellate court will not reverse be-
cause such general decree seemingly sustains
some minor exceptions that were not well
foimded, nor because of minor inaccuracies
in the opinion filed with the decree. How-
ever, the opinion in this case indicates a cor-
rect understanding of the facts and legal
principles applicable thereto.
The decree is affirmed, at the costs of ap-
pellants.
(Wr Pa. 41S)
SCHUXLKILL OOtTNTT t. WIBST,
County Treasurer.
(Supreme Court of Pennsylvania. April 16,
1917.)
1. Cowirmts «=a72— County Clkbk— Salary
— OONBTITUTIONAI, AMD STATUTOBT PROVI-
SIONS.
Const art 14, i 5, providing that compen-
sation of county officers shall be regrulated by
law, and that county officers shall pay all fees
received Into the county or state treasury as
directed by law, and Act March 31, 1876 (P. L.
13) § 1, requiring county officers to receive all
fees for the use of the county, excopi those
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762
101 ATLANTIC RBPORTBB
(Pa.
levied by the state which shall be payable to It,
and that they shall receive no fees for any offi-
cial services, and section 16, declaring the salary
of such officers to be in lieu of any fees and
perquisites, show a fixed intention to confine
salaried county officers to their salary as com>
pensation for Al official services,
2. Counties «=>80(2)— County Tbeasureb—
Disposition of Fees— Constitutional and
Statutoby Pbovisions.
Under Const art 14, | 5, regulating the sal-
ary of county treasurers and their disposition
of fees received in their official capacity, and
Act March 31, 1876 (P. I* 13), enacted to carry
such provision in effect In counties containing
OTer 150,000 inhabitants, the treasurer of such
a county is not entitled to retain the fees col-
lected by him for issuing hunters' licenses under
Act AprU 17, 1013 (P. L. 86), but is required
to pay them into the county treasury.
8. OincEBS ®=>94— Compensation fob Sbbt-
ICES— Pbescmption.
The presumption is that, when an officer
receives money for services rendered in his of-
ficial capacity, it is as compensation for the per^
formance of duties as such officer.
Appeal from Court of Common Pleas,
Schuylldll County.
Assumpsit for money had and received
by the County of Schuyllilll against Fred J.
Wlest, County Treasurer. Judgment for
plaintiff on the case stated, and defendant
appeals. Affirmed.
Argued before BROWN, C. J., and MES-
TBEZAT, P0TTE3B, FRAZER, and WAL-
UNvi, JJ.
John B. McGurl, of MlnersvUle, for appel-
lant. Edmund D. Smith, Sp. Counsel, C. E
Berger, Sol. for Controller, and C. A. Snyder,
Co. Sol., all of PottsTille, for appellee.
MESTR£2AT, J. Thla Is an action of aa-
snmpslt brought by tbe county of Sdiuylklll
to recover fees collected by the defendant,
as county treasorer, for lionters' licenses
issoed by him under the prorislons of tbe
act of April 17, 1913 (P. L. 85). The treasur-
er claims that the fees belong to him per-
sonally, and that he Is entitled to retain them
for his own use, while the county contends
that they belong to It and mnst be accounted
for by the treasurer. Tbe facts were agreed
upon by the parties and submitted to the
court Id a case stated. The court was of
opinion tttat the license fees collected by the
treasurer belong to the county, and entered
Judgment against the defendant He has
taken this appeal.
The act of 1013 was passed, as its title
shows, for the better protection of wild birds
and game within the state. It authorizes
the county treasurer to Issue a "resident
hunter's license" granting permission to hunt
for birds and game within the state and pro-
vides penalties for a Tlolation of its provi-
sions. The eighth section of the statute en-
acts as follows:
"Said county treasurers are herewith author-
ized to retain for services rendered the sum of
ten cents from the amount paid by each licensee,
which amount shall be full compensation for
services rendered by him In eadi easo under the
provisions of this act, and shall remit all bal-
ances arising from this source, at least once a
month, to the state treasurer, for the parposes
otherwise provided for in this act"
11] The county of SchnylltiU contains over
150.000 inhabitants, and therefore is within
section 5, art 14, of the Constitution of Penn-
sylvania, which provides. Inter alia, as fol-
lows:
"The compensation of county officers shall be
regulated by law, and all county officers who
are or may be salaried, shall pay all fees which
they may be authorized to receive, into the
treasury of the county or state, as may be di-
rected by law. In counties containing over ono
hundred and fifty thousand inhabitanta, all
county officers shall be paid by salary."
To carry Into effect this provision of the
Constitution the Leg^lslature passed the act
of March 31, 1876 (P. L. 13), section 1 of
which provides that in counties containing
over 160,000 inhabitants—
"all fees limited and appointed by law to be re-
ceived by each and every county officer • • •
or which they shall legally be authorized, requir-
ed or entitled to charge or receive, shall belong
to the county in and for which they are sev-
erally elected or appointed; and it shall be tbe
duty of each of said officers to exact, collect
and receive all such fees to and for the use of
their respective counties, except such taxes and
fees as are levied for the state, which shall be
to and for the use of the state; and none of
said officers shall receive for his own use, or for
any use or purpose whatever except for the
use of the proper county or for the state, as the
case may be, any fees for any offidal services
whatsoever."
The act Axes the salaiy of the treasurer
and other county ofBcers, and then provides
in section 16 as follows:
"Tbo salaries fixed and provided by the fore-
going provisions shall be in Ueu of all or any
moneys, fees, perquisites or mileage which are
now or may hereafter be received by any officer
named in this act; and all said moneys, fees,
mileage or perquisites, received b^ any of them
as compensation, fees or perquisites, from any
source whatever, shall in all cases belong to the
county, and shall be paid into the treasury (ex-
cept where leaolred to be paid to the state), as
provided in this act"
W« think there is no difficult In sustain-
ing the Judgment entered for the plaintiff by
the learned court below. The oonstitutlMial
mandate and the legislative enactment passed
to make it effective are so explicit that they
do not require Judicial construction. In fact,
as was well said by Judge Thayer in Pierle
V. Philadelphia, 139 Pa. 673, 578, 21 AtL 90:
"The prohibition of tho receipt of fees for
their own use, and the regulation of their com-
pensation by fixed salaries exclusively, could
hardly have been expressed in plainer language
than that which is written in the Constitutiim.
It is impossible for any ingenuity to prevail
against it. There is nothing left for construc-
tion or interpretation. It interprets itself as
plainly as any words in the English language
can do so, and there is no hook upon which to
hang a query or a doubt."
In making this assertion we are not un-
mindful of the several attempts made by
county officers, as disclosed by the numerous
^»ror other cue* aee nm« topic >d4 KBT-NDMBER In all Key-Nnmbered DlsesU and Ind«XM
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Pa.)
SCHUYLKILiL COUNTY y. WIEST
763
r«se8 Id this court, to defeat tbe constitution-
al and statutory enactments by appropriat-
ing to tbelr use fees received in tbeir official
capacity. Tbls provision of thft Constitu-
tion bas never been satisfactory to county
officials, who, by the assistance of able and
Ingenious counsel, have omitted no oppor-
tonity to evade its mandatory provisions.
An analysis of the enactments, constitution-
al and legislative, will clearly shov the fix-
ed intention to confine a salaried county of-
ficer to his salary as compensatioa for all
services rendered in his official capacity. The
Constltntioa declares that he "shall pay all
fees" wliich he may be antliorized to receive
into the treasury of the county or state. The
first section of the act of 1876 provides tbat
"all fees limited anQ appointed by law" to be
lecdved by coun^ officers shall be received
"to and for tbe use of their respective coun-
ties," and declares that "none of said [county]
officers shall receive for bis own use, or for
any use or purpose wliatever except for the
use of tbe proper county or for the state,
• * • any fees for any official servloes
whatsoever." Section 15 seeks to emphasize.
If it can be made more emphatic, tbe pro-
vision of section 1 by declaring that salaries
fixed by the act "shall be in lieu of all or any
moneys, fees, perquisites or mileage, which
are now or may hereafter bo received by any
officer; • • • and all said moneys • • •
received by any of them as compensation,
fees or perquisites, from any source what-
ever, sball in all cases belong to tbe county,
and shall be paid into the treasury (exc^t
where required to be paid to the state), as
provided in this act" As to this exception
and in explanation of it, Mr. Justice Dean,
speaking for the court, said In Ck)mmonwealth
V. Mann et aL, 168 Pa. 290, 299, 31 AtL 1003,
1006:
"This would have been but little more signifi-
cant if it had said 'except collateral inheritance
taxes, state tax on writs, wills, commiasiona and
license fees.' "
Section 9 of the act requires county of-
ficers to make monthly returns to the state
treasurer of such taxes and ail fees otlterwise
due tbe state, and pay tbe same quarterly
Into the state treasury, and provides ttiat:
"All commissions on the collection of nudx
taxes as are now or may hereafter be allowed
by law shall be deemed and taken as part of
the regular fees of the officer ooUectlng the same,
«nd shall be accounted for accordingly."
The present controversy is between an in-
dividual, who is county treasurer, and the
county. Tbe state Is not claiming the fees
for which this suit was brought nor is she
interested in who gets them.
[J, 3] The county of Schuylkill bas a popu-
lation of over 150,000, and the treasurer of
the county is therefore a salaried officer. He
receives $5,000 a year for his services. It is
difficult to see, in view of the constitutional
and l^slatlve provisions, what claim the
defendant, Wiest, county treasurer, as an in-
dividual and for his own use, can have on
the fund In controversy. He, through bis
counsel, contends In support of his claim that
the services performed by him in collecting
the hunters' license fees under the act of 1013
were rendered to the state, and were no part
of bis duties as county treasurer, but separate
and 'distinct therefrom. This contention can-
not be sustained. The act of 1913 did not
make Wiest a state officer, as will be conced-
ed, nor did he have any functions as such to
perform In the collection of the license fees.
He did not receive the fees in controversy
by authority conferred on him as a state offi-
cial. The act deals with him as a county, and
not a state official, and not as an individual.
The Constitution of the state fixed bis status
as a county officer. The county treasurer,
as provided In the act, is authorized to issue
hunters' licenses, to collect $1 from each ap-
plicant, to netaln 10 cents from tbe amount
paid to tbe licensee, and remit the balance to
the state treasury. The act therefore confers
its authority on the county treasurer, and not
on the individual who happens at the time
to be the Incumbent of the office. Each st^
be takes to carry out the provisions of the
act is in his official capacity as county treas-
urer. The license is issued and signed by the
county treasurer in his official, and not his
personal, capacity. By virtue of his office,
and not as an individual, he collects the li-
cense fee and retains the amount for services
designated in the act. It Is true that the li-
cense fees are levied for and are to be paid
to the state, but it does not follow that the
compensation for the services rendered In
Issuing the licenses and collecting the fees
therefor Is to be paid to and for tbe use of
the Individual who at the time is the officer
authorized in liis official capacity by the stat>
ute to perform the service. On the contrary,
section 0 of the act, as will be observed, pro-
vides tliat the commissions for collecting
state taxes and fees shall be deemed "part of
the regular fees of the officer collecting the
same, and shall be accounted for accordingly."
The act does not appoint county treasurers as
agents of the commonwealth to collect the
license fees, nor does it authorize them to ap-
ply to their own use the money retained for
such services. The presumption is that, whoi
an officer receives money for services render-
ed in his official capacity, it is as compensa-
tion for the performance of duties as such of-
ficer. If Wiest had not held the office of
county treasurer, he could not have issued
the hunters' licenses or collected tbe license
fees, and necessarily could not have retained
the designated fees for the services. He
therefore holds the fees, received as compen-
sation, in bis official capacity as county treas-
urer, and under the constitutional and leg-
islative mandates he must account for them
to the county of Schuylkill.
In construing the act of 1876 and holding
tbat the prothonotary of Schuylkill county, a
Digitized by
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764
101 ATLANTIC REPORTBB
(fa.
salaried officer. Is not entitled to the fees au-
thorized by the act of CJongress to be retained
by him for the naturalization of aliens, Mr.
Justice Stewart, speaking for the court In the
recent case of Schuylkill C!oanty ▼. Reese,
249 Pa. 281, 286, 95 Atl. 77, 78, said:
"These fees for services is connection with
naturalization proceedings, though prescribed by
federal statute, and by such statute directed to
be paid to a clerk of a state court, are quite
as clearly limited and appointed by law to be
collected by such official as any fees prescribed
by state enactment. • * * It was only by
virtue of his official character, and not as an
individual, that be was authorized to collect and
receive these fees; he is not designated as an
individual, but as an official,"
The Supreme Court of the United States,
in Mulcrevy & Fidelity & Deposit Co. r. City
and County of San Francisco, 231 U. S. 669,
84 Sup. Ct 260, 68 L. Ed. 428, in construing
a provision of the dty charter of San Fran-
cisco similar to the provision of our act of
1876 aitd applying this act of Congress, came
to the same conclusion, and held that the
clerk sliould account to the county for the
fees received by liim. Mr. Justloe McKenna,
n)eaking for the court, said (231 U. S. 674,
34 Sup. Ct 262, 68 L. Ed. 425) :
"If it be granted that he was made an agent
of the national government, his relations to the
city were not thereby changed. He was still
its officer, receiving fees because ho was not
earning them otherwise, or receiving them other-
wise, bat under compact with the city to pay
them into tho city treasury."
The Judgment is affirmed.
(2S7 Pa. m) «==
KETOHAM V. LAND TITLE & TRUST CO.
(Supreme Court of Pennsylvania. April 16,
1917.)
MoRTOAOES «=>151(3)— Pbiobitt— Mecraitics'
Liens— Demoution of Buildino — "Visibi-e
COKMENCEMENT UPON THE GBOTTND OF THE
WoEK 01 Building."
Where It was necessary to tear down a
dwelling house before an apartment house could
he constructed upon a lot and the demolition
was performed under the same contract as the
construction, such demolition constitutes a "visi-
ble commencement upon the grouad of the work
of building" within Mechanic's Lien Art (Art
June 1, 1901 [P. L.l 431) { 13, deBning the
priority of liens, so that a mechanic's lien filed
for work, labor, and materials in the construc-
tion dated from the commencement of such
demolition, and was prior to a mortgage execut-
ed and recorded after the demolition has been
completed.
[Ed. Note.— For other definitions, see Words
and Phrases, First and Second Series, Visible
Commencement of Work.]
Appeal from Court of Ommon Pleas, Pliil-
adelphla County.
Assumpsit on a policy of title insurance
by O. W. Ketcham against the Land Title *
Trust Company. From a final order dismiss-
ing exceptions to the report of a referee,
defendant appeals. AfiSrmed.
Argued before BROWN, C. J., and STEW-
ART, MOSCDHZISKBR, FRAZER, and WAL-
LING, JJ.
John G. Johnson, Ormond Rambo, and J.
Quincy Huuslcker, Jr., all of Philadelphia,
for appellant. Alex. Simpson, Jr., and Joseph
G. Magee, both of Plilladelphia, for appellee
BROWN, C J. On July 9, 1912, Samuel
Shoemaker acquired title to a lot of ground
situated at the northeast comer of School-
house lane and Wayne avenue, Germantown,
on which there was a suburban dwelling
house. Shoemaker purchased the lot for the
purpose of erecting an apartm«)t house upon
it on the site of the dwelling house. On
August 5, 1912, he executed a mortgage on
the premises to Frank H. Moss for $150,000,
and the money so raised was expended hi
the erection of the new building. The lAnd
Title & Trust Company, the appellant, issued
its policy of insurance to Moss, the mortga-
gee, insuring the completion of the apartment
house discharged of liens. O. W. Ketcham,
the appellee, filed a mechanic's li«i Against
it for materials furnished to Shoemaker for
the erection of it. In proceedings on the
Moss mortgage the premises were sold at
sheriff's sale, and Ketcham, claiming that his
mechanic's lien had priority over the mort-
gage, took a rule on the sheriff to pay the
entire purchase price for the property, $150,-
000, into court This' rule was subsequently
abandoned by Ketcham, he and the Land.
Title & Trust Company having agreed In
writing that the question of the priority of
his lien over the mortgage should be referred
to SYancls B. Bracken, E3sq., under the act
of May 14, 1874 (P. L. 166). In pursuance
of the terms of this agreement, Ketcham
brought suit against the Land Title & Trust
Company, and from the r^ort of the referee,
confirmed by the court below, holding that
the mechanic's lien had priority over the
mortgage, the present appeal was taken.
The facts in the case are not in dispute.
The amount claimed by the appellee on his
mechanic's lien — $15,056 — ^is' admitted to be
correct His dalm for its priority over the
mortgage is resisted solely on the ground
tliat tlie mortgage was recorded before there
was "the visible commencement" of the
apartment house within the meaning of the
Mechanic's Lien Act of June 4, 1901 (P. L.
431, 1 13). The only work done on the prem-
ises prior to August 6, 1912, the date of the
execution and recording of the mortgage, in
connection with the contemplated erection of
the apartment bouse, was the demolition of
the dwelling house. This work, which was
commenced on July IStli, was- completed on
or about tlie third of the following month,
two days before the recording of the mort-
gage, and the question before the referee and
court below was whether its demolition was
"the visible commencement upon the ground
of the work of building" the apartment
house.
>For other cum ■«• nm* toplo «nd KBT-NUHBER in all Key-Numbered DIseeU and IndexM
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m BE BBINOHU3RST'S ESTATE
765
The demoUUon of tbe dweUing house was
a necessary precedent condition to the erec-
tion of the apartment bouse. The latter could
not be built nntll the former was out of the
way. The tearing down of the old house was
more essential to the building of the new
than would have been the digging of a cel-
lar, for the new bouse might have been built
without a cellar. The first step to be taken
for Its erection was the removal of the old
dwelling which stood on the site selected for
it. The situation here presented Is not that
of the removal of an old building having no
connection with the construction of a new
one, for the removal was so linked with the
work upon the new building as to become a
part of one single operation, and this con-
cliuslrely appeared to the appellant before It
issued Its policy of insurance to Moss. The
architect who designed the new building and
drew tie specifications for It to be submitted
to contractors, Included in them the follow-
ing:
"Demolition. Bemove tiie buildings now on
the site together with all foundations, sidewalks
and curbing, and prepare the site to receive the
new building."
J. WilUson Smith, the manager of the
buUding operation department of the appel-
lant, admitted In his testimony before the
referee that these spedflcatlons were on file
with his company before it Issued Its policy
to Moss, and the learned court below, in dis-
missing the exceptions to the report of the
referee, properly said:
"The defendant had actual knowledge that the
work of demolition was done for constructive
purposes, that is, as part of the work necessary
to Uie new bnildiuK. The specifications recited
the work of demolition and construction as part
of the same contract, and it was these specifica-
tions which the defendant insured should hi
carried out. Moreover, the money to pay for
the whole was deposited with the defendant for
distribution. It therefore liad knowledge of the
unity of the operation."
We- find none of the authorities dted by
learned counsel for appellant in conflict with
the correct conclusion of the learned referee
that, under the undisputed facts lu the case,
tbe demolition work incid«it to the erection
ol) the apartment house on the lot of ground
subject to the mortgage Insured by the de-
fendant was a "risible commencement" of the
work of building the apartment house, witliin
tbe meaning of the mechanic's Hen act In
none of our own cases was the question now
before us passed upon. It incidentally arose
in McCrlBtal v. Cochran, 147 Pa. 226, 23 AU.
444, and, in declining to pass apon it, Mr.
Chief Justice Faxson said:
"Most of tbe items contained in the bill of par-
ticulars were for tearing down an old building
preparatory to the erection of the new building,
for which the claim was filed. Whether such
demolition is part of the erection of a new
building is a question which we do not find de-
cided by this court in any reported case. We
are not required to do it now, as the first item
in the bill of particulars is sufiScient to sustain
the claim. It is not a good ground to strike
oB a claim that some of the items are insuffi-
cient. If it contains one good item, which is
the subject of a lien, it is enough."
Among the cases in other jurisdictions sus-
taining the referee are Whltford v. Newell,
2 Allen (84 Mass.) 424; Bruns v. Braun, 35
Mo. App. 337; Pratt v. Nakdimen, 99 Ark. 293,
138 S. W. 974, Ann. Cas. 1913A, 872. "Where
improvements for which a lien can properly
be obtained are made, the lien may include
the work of tearing down old structures or
parts thereof which was a necessary part of
the mailing of the improvements," 27 Cya 36.
In Ann. Cas. 1912B, 15, there is a note on tho
subject now under consideration, and, after
citing authorities which hold that, for tbe
removal or demolition of a building, no lien
wUl be sustained, It proceeds as follows:
"Where an old building is torn down for the
purpose of erecting a new one, obviously a dif-
ferent case is presented. The demolition he-
comes part of the work of erection, construction,
or repair, and the laborer is entitled to a lien.
Ward V. Crane, 118 Cal. 676. 50 Pac. 839;
Bruns v. Brann, 35 Mo. App. 337."
The assignments of error are overruled and
the judgment is affirmed.
(XT Fa. Ofi)
In re BBINGHURST'S ESTATE.
Appeal of FLANAGAN.
(Supreme Court of Pennsylvania. April 16,
1917.)
WrtLS <8=»601(7)— Devise to Mabbixd Wo-
man—Tbust.
A will devising a residuary estate to a
daughter for her sole and exclusive use free from
the control of her husband, to be used by her
as if she were sole and unmarried, intended a
trust for her separate use, so that her petition
to vacate her appointment as trustee for her-
self, filed during the lifetime of her husband,
was properly dismissed.
Appeal from Orphans' Court, Philadelphia
County.
Petition by Mary Bringburst Flanagan,
trustee, to annul and vacate a decree appoint-
ing her trustee in the estate of Alice B.
Bringburst, deceased, and directing the en-
try of security. From an order dismissing
the petition, petitioner appeals. Affirmed.
Tbe facts appear from the following opin-
ion of Lamorelle, J., in tbe orphans' court:
This is a petition to annul and vacate a de-
cree appointmg a trustee and directing the en-
try of security? Alice B. Bringburst, who died
in the year 1906, bequeathed and devised her
residuary estate unto her daughter, Mary Bring-
burst Flanagan, in the language following:
"Sixth. All the rest of residue and remainder
of my estate real and personal and mixed of
whatsoever kind and wheresoever the same may
be situate I give and devise and bequeath to
my daughter Mary Bringburst Flanagan to be
for her sole separate and exclusive use notwith-
standing any coverture free and clear of inter-
ruption intervention or control of her husband
or any husband she may have and without the
said property and estate shall be held and used
and enjoyed by the said Mary Bringburst Flana-
'or oUwr cbsm sea tame topic and KBY-NUMBBB In all Key-N>amber«d Olaests aud Indexm
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766
in ATIANTIC REFORTEiB
(Pa.
gan in all respects and in as fall and ample a
manner notwithstanding her coverture as if she
were sole and iinmarri^."
In 1907 Mary Bringhiirat Flanagan, the
daughter, being desirous of selling some of the
realty forming part of the residue of the estate,
petitioned this court for leave to appoint her
trustee for herself to make auch sale, and to
give her oivn bond. In due course she was ap-
pointed such trustee, her request to give her own
bond refused, and security was directed to be
entered in the sum of $12,500.
The surety on the bond is now deceased, and
the purpose of the present petition is to termi-
nate the trust, release the bondsman, and receive
from the executors of her will the sum «f some
$6,600 which he in his lifetime held as counter
indemnity. As wc view the will, we cannot
grant the prayer of the petition.
At the time of the execution of the will Hary
Bringhurst Flanagan was married, and her
husband Barvives. It was the manifest intention
of testatrix that her daughter should bold the
estate for her sole, separate, and exclusive use,
and while the latter part of the clause wherein
and whereby the gift is made is not altogether
<n harmony with the gift itself, we do not feel
that there is such a contradiction as will enable
us to ignore the legal effect of the technical lan-
gnage used by the testatrix.
Tb» lower court dlsmiaaed the petition.
The trustee appealed.
Argued before BROWN, C. J., and STE3W-
ART. MOSOHZISKER, FRAZER and WAL-
UNO, JJ.
B. Hnnn, Jr., of Philadelphia, for appellant
PER CURIAM. Though the lagt clause of
the sixth paragraph of the will of testatrix
Is apparently contradictory of what immedi-
ately precedes it, her main intent that a
trust should be created for her daughter's
flole^ separate, and exclusive use Is clearly
stated, and the decree Is affirmed, at appel-
lant's costs, on the opinion of the court be-
low directing it to be entered.
(287 Pa. 517)
MILI/ER V. WEST JERSEY & S. 8. R. CO.
(Supreme Court of Pennsylvania. April 16,
1917.)
Railboads «=»327(3)— Oradk Grobbirg Acci-
dent— CONTRIBTTTORT NBOLIOENCK.
One who before stepping upon a track at a
§rade crossing had an unobstructed view for
67 feet, and who, if he had then looked, must
have seen the approaching electric express train
by which he was atrack, was negligent.
Appeal from Court o£ Common Pleaa,
Philadelphia County.
Trespass by Elizabeth H. Miller, admin-
istratrix of the estate of Franklin 0. Miller,
deceased, against the West Jersey & Sea-
shore Railroad Company, to recover for the
death of plaintiff's husband. Verdict for
the plaintiff for $25,000, Judgment for de-
fendant non obstante veredicto, and plain-
tiff appeals. Affirmed.
Argued before BROWN, C. J., and STEW-
ART, MOSOHZISKER, FRAZER, and WAL-
MNG, JJ.
Jacob Singer, David Bortln and Emanuel
Furth, all of Philadelphia, for appellant.
Sharswood Brlnton, of Philadelphia, for ap-
pellee.
PER ODRIAM. Upon a review of the evi-
dence in this case the court below could
not have avoided the conclusion that the
carelessness of the deceased, when about to
cross the railroad tracks, was resijonslble
for his death, and the Judgment non ob-
stante veredicto Is affirmed on the follow-
ing from the opinion directing it to be en-
tered:
"If the deceased did not see the electric train
in time to save himself, it was because he did
not look. Where a person fails to see that
which was plainly obvious, such person is clear-
ly guilty of contributory neglisjence. The de-
ceased must either have seen the electric train
and have taken his chances of crossing in front
of it, or he did not look. All the facts in the
esse evidence that the electric train was not one
which came into view after the deceased was
committed to the act of crossing; it was in
plain view at the time that he stepped upon the
tracks. The deceased was not a stranger at
this railway crossing, as has already been
shown, and his knowledge charged him with the
necessity of exercising special care in crossing
the tnicke. It was shown that at the time he
attempted to crom the train that he expected ta
take would not reach the station for some eight
minutes. Another point which would appear t«
be perfectly clear u that for the whole lentth
of the picket fence which separated the middle
south-bound track from the north-bound track
there was positively no obstruction of vision.
This fence by measurement was 967 feet. When
the deceased and the witness Avis stood west of
the first outbound track, after leaving the news
stand and before stepping upon the track, and
also when they stood in the 15 feet clear space
between the two south-bound tracks, they had
an admittedly perfect, unobstructed view of
the length of the fence, the 967 feet."
Judgment affirmed.
(157 Fa. tOI
COMMONWEAI/rn V. KEYSTONE GRAPH-
ITE CO. et aL
(Supreme Court of Pennsylvania. Maidi 19.
1917.)
1. JUDICIAI, Saues «==>! — Mobtoaoks — Sau
— "JoDiciAL Sale."
Where a corporation mortgaged Its property
to a trust company to secure a bond issue, a
sale by the mortgage trustee nnder a power of
sale contained in the mortgage to certain troa-
tees for the bondholders, made after the corpo-
ration had sold its interest in the mortgaged
premises, was not a "judicial sale."
[Ed. Note. — For other definitions, see Words
and Phrases, First and Sacond Series. Jadidal
Sale.]
2. Taxation «=»682— Tax Libn— Ehfomb-
MENT Against PuBcnASEB at Mobtoaob
FoBKCLOSrRE SALE.
Where a lien for unpaid capital stock tax-
es was entered against the corporation purchas-
er of corporation property mortgaged to secure
a bond issue, and the property was subsequently
sold by the mortgage trustee under a power of
sale contained in tlie mortgage to certain trus-
tees for bondholders, the tax lien was not there-
by divested, and the proceeds of the sheriff's sale
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Pa.)
LAPINCO V. PHILADELPHIA & R. RT. CO.
767
under such Ken were properly awarded to the
oommouwcalth, to the exclusion of the trusteea
for bondholders.
App»»nl from Court of Common Pleas, Ches-
ter County.
Scire facias to remove the lien of a mort-
gage by the Commonwealth of Pennsylvania
against the Keystone Graphite Company,
with notice to Hiram C. Hlmes and others,
trustees for the bondholders of the New Phil-
adelphia Graphite C(»npany, terre-tenants.
On exceptions to the report of an auditor dis-
tributing the proceeds of a sberlfTs sale of
real estate. Dismissed, and defendants ap-
peal. AfHrmed.
Argued before BBOWN, C. J., and MES-
TRBZAT, STEWAUT, MOSOHZISKER, and
WALLING, JJ.
Ednrand Bayly Seymour, Jr., of Philadel-
phia and Arthur P. Reld, of West Chester,
for appellants. Isabel Darlington and Thomas
S. Butler, both of West Chester, for the Com-
monwealth.
WALLINa J. In 1905 the New Phila-
delphia Graphite Company, a New Jersey
corporation, took title to certain real estate In
Chester county. Pa., and at the time execut-
ed a deed of trust In the nature of a mortgage
to the Union Trust Company (now Merchants'
Union Trust Company) to secure an Issue of
bonds to the amount of $50,000. In 1907 tha
Keystone Graphite Company, a Delaware
coriwration, purchased the property from the
New Philadelphia Graphite Company, subject
to the mortgage. On December 14, 1910, the
commonwealth entered Its lien for capital
stock taxes for the years 1907 to 1910 against
the Keystone Graphite Company. On De-
cember 21, 1910, the trust company, pursuant
to authority contained In the mortgage, sold
the pr<H)erty at public auction for $5,000 to
certain parties as trustees for the bondhold-
ers. In 1912 the commonwealth Issued a scire
facias on Its lien, and the last-named trus-
tees, being served as terre-tenants, made de-
fense on the ground that plalntliTs lien had
been divested by the public sale. Such de-
fense was held Insufficient, and Judgment was
entered for the commonwealth in the court be-
lowi, which was affirmed by this court In Com. -
V. Keystone Graphite Co., 248 Pa. 844, 93
AtL 1071. It Is there held that the sale on
the mor^^age, not being a Judicial sale> did
not divest the plaintifTs lien.
[1,2] In 1915 the commonwealth issued a
levari facias on the Judgment, by virtue of
which the sheriff sold the real estate to trus-
tees for the bondholders for |1,860. The
court below confirmed the auditor's report
awarding the fund, less costs, etc., to the com-
monwealth on its judgment. From this de-
cree the trustees for the bondholders , took
this appeal. The fund was rightly distribut-
ed. The public sale on the mortgage divest-
ed its lien and left that of the commonwealth
the first lien against the property. The sher-
iff sold the land as the property of the Key-
stone Graphite Company, and his deed con-
veyed whatever interest the company had in
the land when the Hen of the commonwealth
was filed; and, so far as relates to this dis-
tribution, it is not Important whether his
deed carried a fee or merely an equity of re-
demption. The sherifTs sale certainly did
not divest the lien of the mortgage, and hence
the holders of the bonds thereunder have no
claim on this fund. It is res adjudlcata that
the commonwealth's lien was not divested by
the sale on the mortgage, and hence the pur-
chasers of the land at that sale have no claim
here. One who buys land subject to a lien
does not thereby become entitled to the pro-
ceeds derived from a subsequent Judicial sale
of the same property on such lien.
There is nothing in the record to support
a <daim by the purchasers at the sheriff's
sale to recover back in this distribution the-
consideration they there paid for the proper-
ty. The rule of caveat emptor applies to such
sale; and, aside from that there is nothing
to indicate that the sheriff's vendees did not
acquire a valid title. In our opinion the
question of the statutory right of the com-
monwealth to enforce liens filed for such
taxes, to the prejudice of the holders of prior
mortgages whether given tor purchase money
or otherwise, is not involved in this case.
The assignment of error Is overruled, andi
the order of distribution is affirmed, at the
costs of the appellants.
(25T Pa. 344)
LAPINCO V. PHILADELPHIA & R. RT. CO.
(Supreme Court of Pennsylvania. April 9.
1917.)
1. Railboads <S=»34e(l)— Cbossiwg Accident
—Negligence— Evidence.
In action against railroad for personal in-
jury when struck by locomotive, evidence held
insufficient to overcome presumption tliat de-
fendant was not negligent in failing to provide
proper headlight, so that trial judge should have
directed finding that headlight was burning.
2. RAII.BOAD8 «s»333(l)— Caossina AcciDKirt
—Contributory Nkouobnob.
Where plaintiff stopped, looked, and listened
at a track next to the one on which the train
which struck him approached, and did not see
the engine, though he bad an unobstructed view
for 160 feet, and immediately started across the-
track, and wa» struck, he was contributorily
negligent.
Appeal from Court of Common Pleas, Phil-
adelphia County.
Trespass by Jacbim Lapinco against the
Philadelphia & Reading Railway Company to
recover damages for personal Injury. Ver-
dict for plaintiff for f4,500, and Judgment
thereon, and defendant appeals. Reversed,
and Judgment entered for defendant.
Argued before BROWN. C. J., and MES-
TREZAT, potter, STEWART, and FRAZ-
ER, JJ.
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7G8
101 ATLANTIC REPOETER
(Pa.
William Clarke Mason, of Philadelphia, for
appellant William T. Connor and John R.
K. Scott, both of Philadelphia, for appellee.
BROWN, O. J. The plaintiff was struck
by an engine of the defendant on November
29, 1913, abont 5 o'clock In the afternoon, at
what the Jury found was a permissible cross-
ing In the dty of CoatesvlUe. For the injn
rles sustained he recovered a verdict; the
Jnry having found that the defendant had
negligently operated its engine at the jmint
where he was hurt, and that he had exercised
dae care in attempting to cross the track.
On this appeal from the Judgment on the ver-
dict the contention of the appellant is that
its motion for a nonsuit ought to have pre-
vailed, or a verdict should have been direct-
ed in its favor, as ao negligence on Its part
had been shown, and the contributory negli-
gence of the plaintiff was so clear that the
trial Judge should have declared it to be a
bar to his right to recover.
[1,2] Alongside the track on which the
plaintiff was struck there are two sidings.
After crossing over the first, he stepped on
the second and looked up and down the
main track. It was dark, but lights were
bnmlng, and the plaintiff testified he could
see a distance of 160 feet in the direction
from which the «igine was coming. He
stated distinctly that there was nothing to
obstruct his view down the track for that
distance. According to the testimony of wit-
nesses called by the defendant, the distance
of the unobstructed view, from actual meas-
urements <m the ground, was much greater.
With the unobstructed view of at least 160
feet before him, the plaintiff started toward
the third or main track, and the instant he
put his foot on the first raU the engine ran
over it He testified that from the time he
started from the siding or second track he
kei>t on looking and listening, but neither
heard nor saw the approaching engine. On
the testimony which he submitted as to its
speed and the failure to give notice of Its ap-
proach, by bell or whistle, it may be conced-
ed tliat the question of the defendant's neg-
ligence was for the jury ; but as the plaintiff
was bound not only to listen, but to look, the
only rational conclusion dedudble from ali
the testimony in the case is that he failed to
look as he approached the track on which be
was struck. If be had looked, he must have
seen the engine coming towards him. Ne-
ther be nor either of his two witnesses who
saw the acddrat testified that there was not
a headlight burning on the locomotive. Nei-
ther of them said anything about a head-
light, and their testimony, given its full ef-
fect, was merely that they had not seen the
engine. There was no presumption that the
defendant had failed to have a burning head-
light on it and the burden of showing negli-
gence in this respect was upon the plaintiff.
Hanna v. Philadelphia & Reading Ry. Co., 213
Pa. 157, 62 Atl. 643, 4 I* R. A, (N. S.) 344.
The negative testimony of plaintiff and his
witnesses, to which we have referred, was
not sufficient to make out a charge of negli-
gence as to the headUght, and a finding by
the Jury that one was not burning on the en-
gine at the time of the accident was not only
without evidence on the part of the plaintiff
to sustain it, but was in the teeth of nn-
Impeached evidence submitted by the defend-
ant that the engine was equipped with a
proper light Nalin, the engineer, testified
that there was a burning headlight on his en-
gine, In front of a reflector; Gray, his fire-
man, said the headlight was burning bright-
ly; and Thompson, the conductor, said he
saw It burning. The testimony of these three
witnesses was unequivocally corroborated by
Hamish, Blvans, and Williams, three of d»-
fandant's brakem^i. These six witnesses
were In a position to see, and did see, and. in,
view of their positive and afnrmatlve testi-
mony that the headlight was burning, witlx
no proof offered by the plaintiff to rebut the
presumption that the defendant was not neg-
ligent as to this, the trial Judge should have
directed the Jury to find that It was burning.
Knox V. Philadelphia & Reading By. Co., 202
Pa. 604, 62 Atl. 90; Keiser v. Lehigh Valley
R. R. Co., 212 Pa. 409, 61 AtL 903,
108 Am. St Rep. 872; Anspach v. Philadel-
phia & Reading Ry. Co., 225 Pa. 528, 74 AtL
373, 28 L. R. A. (N. S.) 382 ; Charles ▼. Le-
high Valley R. R. Co., 245 Pa. 496, 91 AtL
890; Leader v. Northern Central Ry. Co., 246
Pa. 452, 92 Aa 690.
Under Oarroll v. Penna. R. R. Oa, 12
Wkly. Notes. Cas. 348, and the long line of
cases following it down to Stoker v Philadel-
phia & Reading Ry. Co., 254 Pa. 494, 99 AU.
28, it was the clear duty of the court below
to enter Judgment for the defoidant non ob>
stante veredicto.
The fourth assignment of error is sustain-
ed, and Judgment is here entered for the de-
fendant
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BAKJBB ▼. BUSHJTOBI)
769
<S1 Vt «Q
BAKEB V. BUSHFOBD et al.
(Supreme Court of Vermoiit FranUin.
Sept 4. 1917.)
1. Irsubance ©=580(1) — Vkndob and Ptjb-
CHA8EB — RiOBTB OF PaBTIES — INBUBANOK
MONCZ.
Where premises vere sold, title to be trans-
ferred on tne making of certain payments and a
contemporaneous mortgage to the vendor to se-
cure the balance of the consideration, the rights
of the parties in respect to insurance money
accruing from destruction by fire of a building
on the premises were the same as they would
have been if the fire had occurred after ccmvey-
ance, the buyer bein|: in possession and having
performed all his obligations under the contract
to date.
2. VBNDOB and PtJBCHABEB «=>54 — ESTATES
OF Vendob and Vendee.
An executory contract for the sale of land
left the legal estate in the vendor, but, except for
his interest in the i>roperty as security, the ven-
dor held the title in trust for the vendee, re-
garded by equity as the owner.
S. Vendob and Pubceaser <3=>54— RiaHTS or
Pabtieb afteb Tbansfeb of Title.
After title to land was sold under an «x-
ectttory contract, the vendee before he broke
any condition of the contract was holder of the
legal title and estate, and the vendor had his
security in the form <k a mortgage given him.
4. Vendob and Pxibchabeb «=> 182— Payment
OF Pbiob— Time— Option of Vendee.
Where installments of the purchase price of
land were all payable on or before the dates spec-
ified, the entire indebtedness was payable at
once at the vendee's option.
5. INSDBANOE ®=>580(1)— PbOCBEDS— VENOOB
AND PUBCBASEB— Retention of Secubitt—
Change in Fobm.
Where a farm and personal property were
aold, the vendee giving the vendor a chattel
mortgage on all the personalty to secure pay-
ment of the first $1,500 of the price, the contract
providing that when such payment was com-
pleted and all conditions performed the vendor
should give the vendee a warranty deed of the
land, and receive a mortgage for the balance,
payable on or before specified dates, the vendee
to keep the buildings and contents insured for
$1,400 for benefit of the vendor, the insurance
money arising from loss by fire stood in the
place of the property destruyed, to be held for
appUcatiou by the vendor which would complete
payment of the debt, and the vendee could not
require application thereof to the discharge of
the chattel mortgage.
Appeal in Chancery, Franklin County; U
F. Slack, Cbancellor.
Suit by David Baker against Calvin Bush-
ford and BUa Rushford. From a decree for
plaintiff, defendants appeaL Decree revers-
ed, and cause remanded, with direction that
the complaint be dismissed.
Argued before MUNSON, C. J., and WAX-
SON, HAZKI/rON, POWERS, and TAX-
UOB. JJ.
P. H. Coleman, of Montgomery, and A. B.
Rowley, of Blchford, for appellants. Gay-
lord F. Ladd, of liichford, for appellee.
MUNSON, 0. J. The defendants are the
vendors, and the plaintiff the assignee of
tie vendee, of a farm and personal property,
the sale of which was evidenced by a writ-
ten contract, dated July 10, 1911. The price
was $3,000 ; $200 of which was to be paid on
or before July 10, 1912, and $200 on or before
the 10th of July in ea<di year thereafter until
all was paid. At the date of the contract,
the vendee, Mary Martin, gave the defendant
Calvin a chattel mortgage of all tlie personal
property described in the contract, to secure
the payment of the first $1,500 of the pur-
chase price. When this payment was com-
pleted, and all conditions performed, the ven-
dors were to give the vendee a warranty
deed of the land and premises, and receive a
mortgage deed of the same to secure the bal-
ance of the annual payments, and the other
OHiditions of the contract. By the terms of
the contract the vendee was to pay all taxes
afterwards assessed on the property, and
keep the buildings and contents insured for
$1,400 in a specified company for the benefit
of the vendors. The vendee and her husband
took possession of the property soon after
the execution of the contract, and remained
in possession untU October 14, 1912, on
which day they assigned their interest in the
contract to the plaintiff, who thereupon took
possession. The dwelling bouse on the prem-
ises was destroyed by fire February 21, 1915,
without the fault of either party. It was in-
sured in the required company for $1,000,
by a policy procured by the plaintiff and
made payable to the plaintiff and the de-
fendant Calvin; and on the 20th of March
the loss was adjusted at $990, and covered
by a check made payable to both the Insured.
The plaintiff Indorsed the check and deliver-
ed it to Calvin, who deposited it In a bank
in his name as trustee, where it lias since re-
mained. There was nothing due under the
contract at the time of the fire, and $95 had
been paid on the installment next to become
due; and all tax assessments had been paid.
It would cost between $1,600 and |1,800 to
replace the building. Bach party has refused
to take the money and rebuild. The value
of the land without the building is $800. On
the 25th of March, 1916, the plainUS gave
the defendants written directions to make
an immediate application of the Insurance
money <mi the jmyments to become due under
the contract The bill prays to have the
money so applied, and the defendants ordered
to make conveyance of the premises and dis-
charge the chattel mortgage. The defend-
ants have filed a cross-bill, praying that the
plaintiff be foredoeed of his equity in the
premises. The decree below is for the plain-
tiff. It was held in Thorp v. Oroto, 79 Vt
390, 65 AU. 662, 10 U B. A. (N. S.) 1166, 118
Am. St Bep. 961, 9 Ann. Cas. 58, on the facta
there presented, that the mortgagee should
hold the insurance money and apply it to ex-
tinguish the mortgage debt, including Inter-
est, as fast as the same became due. The
plaintiff claims that this decision is conclu-
sive in Ids favor. The defendant does not
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101 A.— 19
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101 ATLANTIC RBPOBTBB
(Vt
question tbe correctness of the decision, but
contends that the trro cases are dearly dis-
tinguishable.
[1-S] The relations of these parties at the
time of the fire were those of vendor and
vendee, under a contract of sale which pro-
vided for a subsequent transfer of the title
on the making of certain payments, and a
contemporaneous mortgage of the premises to
the vendor to secure the balance of the oousld-
eration. But the rights of the parties are the
same as they would have been if the fire had
occurred after the conveyance; other condi-
tions remaining tbe same. This was in law
an executory contract, which left the legal
estate In the vendor; but, except for his in-
terest In the property as security, the vendor
held the title in trust for the vendee, whom
equity regards as the owner. But after the
transfers, and before condition broken, the
vendee would be the holder of the legal title
and estate, and the vendor would have his se-
curity In the form of a mortgage. So the
case is not distinguished from Thorp v.
Croto by the fact that the latter was a suit
between mortgagor and mortgagee.
But there are obvious differences between
the case at bar and Thorp v. Croto. The
facts presented In the Thorp Case disclose
nothing as to the adequacy or Inadequacy of
tlie security, and no question as to the suffi-
ciency of the security seems to have been
raised. Nothing is said in either the major-
ity or the minority opinion regarding tbe
question of adequacy as a matter bearing
upon the decision rendered. Here, the de-
fendants refer to the facts reported as show-
ing an inadequacy of security, and claim that
this Inadequacy distinguishes the case from
the Thorp Case.
[4] The defendants say further of the
Thorp Case that "both the mortgagor and
mortgagee were billing that the money should
be applied as payment, and the court treated
it as the parties did." But the dissent was
put upon the ground that the mortgagee was
entitled to hold the insurance money In place
of the property destroyed; so this aspect of
the subject must have entered into the
court's consideration of the case. Tbe cases
are alike in that no part of tbe debt was due
when the Insurance money was received, but
they differ as to the terms of payment In
the Thorp Case there was no provision en-
abling the mortgagor to reguire an accept-
ance of payment In advance of its becoming
dua Here the installments of the purchase
money were all payable on or before the
dates specified, so that the entire Indebted-
ness was payable at once at tbe option of
the vendee; and the vendors were directed
"to immediately apply said sum • • •
upon the payments to become due under said
contract."
There is another difference to be consid-
ered In connection with the vendee's option.
In the Thorp Case there wasno intermediate
condition on the fulfillment of which the debt-
or was entitled to a change in the form and
substance of the security. Under this con-
tract, the payment of $1,500 of the purchase
price would entitle the vendee to a discharge
of the mortgage on the chattels, and to »
conveyance of the title to the realty upon bis
giving a mortgage of the same to secure the
balance of the debt So this provision for an
exercise of the vendee's option divides the
principal Into two parts, as to which the
rights of the vendor touching the securlt}-
are not Identical.
[5] In the absence of an agreement ft>r a
release of some part of the security on the
payment of a portion of the debt secured, the
creditor is entitled to retain the entire secu-
rity until the debt Is fully paid. If the in-
surance money stands In place of the proper-
ty destroyed It goes with the land, and re-
tains in equity the quality of Indivisibility ;
and the creditor Is entitled to retain the en-
tire security notwithstanding the change in
form of a part of it This would require
that the insurance money be held for an ap-
plication which would complete the payment
of the debt The question thai arises wheth-
er the vendee's right to a transfer of the ti-
tle and discharge of the chattel mortgage on
the payment of a sum less than the entire
debt, in connection with his privilege of pay-
ing a part or all of the notes at any time be-
fore their maturity, entitles him to use the
insurance money to complete such i>artliU
payment We think not A part of the notes
could not be paid by a tender of funds which
the creditor was entitled to hold as security
for the payment of all the notes. This view
accords with the terms and nature of tbe
provision regarding insurance. The vendee
is to keep the buildings insured for the bene-
fit of the vendor. The insurance is for tbe
benefit of both parties, but is primarily for
the benefit of the vendor as security bolder
of tbe property insured, and inures to tbe
benefit of the vendee through the reduction
of bis debt. The vendee cannot require au
application of it which would give him tbe
primary benefit and leave the vendor Inade-
quately secured. The application must be
such as vrill preserve the equities of the ven-
dor or mortgagee In the given case. Our
disposition of the question presented here Is
not Inconsistent with the decision In Thorp
V. Croto as limited by the facts of that case ;
and It accords with the court's view, else-
where expressed, that the proceeds of a policy
of insurance on mortgaged property are to be
substituted for the property destroyed. Pow-
ers V. N. B. Fire Ins. Co., 69 Vt 404, 38 AU.
148.
Decree reversed and cause remanded, with
direction that the complaint be dismissed.
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OAB.TER V. SUBURBAN WATER CO.
771
on Md. ti)
CARTER T. SUBURBAN WATER CO.
(No. 66.)
(Court of Appeals of Maryland. June 28, 1917.)
1. Waters and Water Coubses €=3203(13) —
Shutting off Watsb Supply — Ijunwe-
TION.
An injunction is the proper remedy to pre-
vent the abutting off of water by a water com-
pany where the consumer denies in good faith
the amount of the charge.
2. Watebs and Wateb Coitbses «=3203(13)—
Wateb Compahy— Right to Shut oft Wa-
teb.
Although a water company may adopt a
rule that water may be shut off for nonpayment
therefor, it cannot arbitrarily shut off the
consumer's supply where the amount claimed
ia a matter of just dispute.
3. Watebs and Water Cotjbses «=>203(6)—
Watkb Companies— P0BUO Sebvick Com-
laSSIONS— JUBISDICTION.
The Public Service Commission, under Acts
1910, c. 180, is not invested with ' power to
determine controversies between defendant wa-
ter company and plaintiff consumer as to cor-
rectness of the bills rendered.
4. Waters and Water Courses i8=>203(13)—
Refusal to Supply Water— Jurisdiction.
Although it be conceded that the Public
Service Commission has jurisdiction in cases in-
volving the correctness of charges for water, it
could not deprive a court of equity of its orig-
inal jurisdiction to grant an injunction for re-
fusal to supply water.
Appeal from Circuit Court of Baltimore
City ; H. Arthur Stump, Ju4ge.
Bin by John F. Carter against the Sub-
urban Water Company. Prom an order dis-
missing plaintiff's bill and dissolving the in-
junction Issued, he appeals. Reversed, with
costs, and cause remanded.
Argued before BOYD, C. J., and BRISCOE,
BURKE, PATTISON, UllNER, STOCK-
BRIDGE, and CONSTABLE, JJ.
Robert Biggs, of Baltimore, for appellant.
Daniel R. Randall, of Baltimore (U. E. liCe
Marshall, of Baltimore, on the brief), for ap-
pellee.
BURKE, J. John F. Carter, the appellant,
is the owner of 71 dwelling houses, which are
located In West Arlington, Baltimore county,
Md., on certain avenues and roads mentioned
In the bill filed tn this case. The appellee
Is a public service corporation, having its
principal olUce In Baltimore city, and ia en-
gaged in the business of furnishing water to
the appellant and many other property own-
ers In and about West Arlington. The 71
lionses of the appellant are connected with
the water mains of the. appellee, and secure
tbejlr supply of water for drinking and house-
liold purposes from them, and have no other
source of supply from which water for drink-
ing and household purposes may be secured-
Dnring tt»e quarter ending October 30, 1916,
tbe defendant- repeatedly failed to supply
said boui&«s with a suitable quantity of water,
and the appellant was subjected to damage
and loss as the result of the irregular sup-
ply of water furnished by the appellee to
said houses. On the 1st day of October, 1910,
the appellee furnished the appellant a bill,
amounting to $291.42, for water furnished
said houses. The appellant disputed the bill,
and claimed tlie legal right to deduct there-
from the losses sustained by him as the re-
sult of the failure of the appellee to furnish
an adequate supply of water for drlnldug
and household purposes —
"but expressed his willingness to adjust the
said accounts with the defendant and to pay it
such sum of money as would reasonably and
fairly represent the proper charges for the serv-
ices rendered by the defendant; that the said
defendant, however, positively refused even to
consider the claim of your orator, and also
notified your orator that unless the said bills
as rendered are paid on or before 10 o'clook on
Tuesday the 10th day of October, 1916, it
would cut off the supply from all the said
houses, and leave them and the tenants therein
without any supply of water for any purpose
whatever."
The appellee Is insolTcnt
The bill in this case was filed on October
9, 1916, and set out substantially tbe facts
above stated, and prayed for an Injunction
against the appellee, Its officers, agents, and
servants, restraining them from cutting off
the supply of water from the houses or any
of them, and for other and further relief.
An injunction was issued on October 9, 1916,
as prayed; the appellant first having filed an
approved bond in the penalty of $2,000 as
required by the order of court. On December
2, 1916, tbe defendant demurred to the biU
upon the groimd that the plaintiff "has a
plain, adequate, and complete remedy at law."
On the 6th day of February, 1017, the court
passed an order dismissing the bill and dis-
solving the Injunction, and from that order
this appeal was taken. The appellant filed
an approved appeal bond which operated to
suspend the effect of the order.
[1] The single question presented by the
appeal Is this: Upon the facts stated in the
bill, was the plaintiff' entitled to the injunc-
tion prayed for? It is to be observed that
this is' not a simple, and perhaps a common
case, where a water company shuts off or
threatens to shut off the supply of water
from a consumer for nonpayment of the
amount due for water supplied^
[2] It is now well settled that a water
company may adopt, as a 'reasonable regula-
tion for the conduct of its business, a rule
providing that the water supplied to a cus-
todier may be shut off for nonpayment there-
for. City of Mansfield r. Humphreys Mfg. Co.,
82 Ohio St 216, 92 N. B. 238, 31 U R. A. (N.
S.) 301, 19 Ann. Cas. 842 ; Shirais v. Eiwlng, 48
Kan. 170, 29 Pac. 820; McDanlel v. Spring-
field Waterworks Co., 48 Mo. App. 273;
Turner v. Revere Water Co., 171 Mass. 329,
50 N. E. 634, 40 L. R. A. 657, 68 Am. St Rep.
432. But it is a case of dispute as to the
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101 AXLiANTIC REPOUTBB
(Ud.
amotint dne, where the appellant had ex-
pressed himself ready and willing to adjust
and pay the amount for which he Is liable,
and where the company declines to accept
anything less than the amounts of the blUs
rendered, and threatens to shut off the water
oa a certain day unless the bills are paid.
The courts appear to be quite uniform in
holding that a water oompany cannot ar-
bitrarily shut off the consumer's supply when
the amount claimed Is a matter of Just dis-
pute. Cox T. aty of Cynthlana, 123 Ky. 363,
96 S. W. 456; Wood v. City of Auburn, 87
Me. 287, 32 Aa 906, 29 L. K. A. 376 ; Turner
V. Revere Water Co., 171 Mass. 329, 50 N. B.
634, 40 Ia R. A. 667, 68 Am. St Rep. 432.
In Poole V. Paris Mountain Water Co., 81
& C. 438, 62 S. E. 874, 128 Am. St B«p. 923.
the court said:
"While a public serrice water company has
the right to cut off a consumer'a water supply
for nonpayment of recent and just bills for wa-
ter rents, and may refuse to engage to furnish
further supply until said bills are paid, the
right cannot be exercised so as to coerce the
consumer into paying a bill which is unjust or
which the consumer in good faith and with
show of reason disputes, by denying him such
a prime necessity of life as water, when he
offers to comply with the reasonable rules of
the company as to such supply for the current
term."
The same principle Is announced in Wash-
ington v. Washington Water Co., 70 N. J.
Bq. 254, 62 Atl. 390. That an injunction Is
the proper remedy to prevent the shutting off
of the water In cases where the consumer
denies in good faith either his liability or
the amount of the charge appears to be well
established by the authorities. Edwards v.
MilledgevlUe Water Co., 116 Ga. 201, 42 S.
B. 417; McBntee v. Kingston Water Co., 1&5
N. Y. 27, 58 N. E. 785; American Conduit
Co. V. Kensington Water Ca, 234 Pa. 20S,
83 Atl. 70.
The occupants of these houses must have
water dally and hourly. It Is a prime ne-
cessity of comfort and health, and to suddenly
shut off the water in order to coerce the own-
er to pay an unjust or a disputed bill would
be not only a violation of his legal rights,
but would subject hliu to serious injury, and
audi injury as the owner would likely sus-
tain before he oould be compensated In an
action at law even against a solvent corpora-
tion is snffident to furnish the equity for an
application for on injunction. In Sickles v.
Manhattan Oaa light Co., 64 How. Prac.
(N. Y.) S3, it appears that Gen. Sickles ap-
plied for an injunctl(m to restrain the de-
fendant from cutting off the supply of gas
from his residence. He alleged that an im-
proper bill had been presented to him, and
that be bad offered to pay for the gas con-
sumed, but that the company refused to ac-
cept and threatened to remove the meter and
shut off the gas. Upon these facts the court
held that he was entitled to a preliminary
Injunction.
[3, 4] It la contended that the Fiublic Serv-
ice Commission, under Acts 1910, c. 180, has
exclusive jurisdiction over the subject-mat-
ter of this suit, and has the power to grant
the plaintiff full and complete relief. We do
not find that the Public Service Commission
is Invested with the power to bear and de-
termine the controversy between the parties
as to the correctness of the bills rendered, or
to determine what amount the plaintiff owes.
But if that power be conceded, the court of
equity would not for that reason be deprived
of its original jurisdiction to grant tbe in-
junction. It has been long since settled that,
where a court of equity has original juris-
diction, and a statute confers upon the com-
mon-law courts a similar power, the jurisdic-
tion of equity is not thereby ousted. Barnes
V. Compton, 8 GiU, 398; Sliryock v. Morris,
76 Md. 72, 23 Aa 68.
Order reversed, wltb costs, and cause re-
manded.
cm Hd. Ml)
HUBBARD V. HUBBARD. (No. 48.)
(Court of Appeals of Maryland. June 28,
19170
1. Husband and Wipe €=>297— Action fob
Alimony— Evidence— SumoiBNCT.
In a suit for alimony, held, under the ev-
idence, that after tbe dismissal of a prior bill
for divorce there was at least a partial recon-
ciliation followed by the husband's leaving and
not returning.
2. Husband and Whs «s»288 — Smr fob
AxiuoNT — Defense.
That the wife bad her husband arrested, and
when they were before the magistrate had ask-
ed, in anticipation of the husband's returning
to their borne, to be afforded police protection,
would not justify a total failure to make any
provision for the support of the wife barring
her suit for alimony.
3. Husband and Wife ^=>298(8)— Bkcbssivx
AixowANCE or Alimony.
Where a husband bad a weekly drawing
account as salary of $20 a week, an allowance
to the wife of $3 a week permanent alimony
cannot be said to be unreasonable.
Appeal from Circuit Court of Baltimore
City; Walter I. Dawkins, Judge.
Bill by Florence Hubbard against William
J. Hubbard, Sr. Decree for plaintiff, and de-
fendant appeals. AfBrmed, with costs.
Argued before BOYD, C. J., and BRIS-
COE, BURKE, THOMAS, PATTISON, UB-
NER, STOCKBRIDOE, and CONSTABLE,
JJ.
Harry O. Kalben and David Ash, both of
Baltimore, for appellant James Flaegel, of
Baltimore, for appellee.
STOCKBRIDGB, J. On the 27th of May,
1915, a decree was passed in a case between
the same parties as those who are parties ti>
this record, upon a bill filed originally as a
bill for alimony, and subsequently by amend-
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HUBBARD V. HUBBARD
773
ment converted Into a bill for divorce a men-
sa et there. Three days after the entry of
the decree In that case an appeal was taken
to this court, and, the case having been heard
here, the decree of the circuit court No. 2
of Baltimore dty was affirmed on January
21, 1916.
Shortly following the decree of the circuit
court No. 2 of Baltimore city, to which ref-
erence has Just been made, namely, on July
1, 1915, Mrs. Hubbard swore out a warrant
for the arrest of her husband, charging de-
sertion and nonsupport. Mr. Hubbard was
absent from the city at the time, and did
not return to Baltimore until about the mid-
dle of that month. Immediately upon his
return he surrendered himself, and the case
was set for a hearing on the 19th or 20th of
July. When the matter was taken up be-
fore the magistrate there appears to have
been some discussion relative to a possible
reconciliation between the parties, and with-
out final action there, either upon the theory
of a lack of jurisdiction on the part of the
magistrate or for some ether reason, the
case was sent to the grand jury, which sub-
sequently found an indictment. The crimi-
nal proceeding does not appear to have been
pushed to a conclusion, but was settled by
the state's attorney without prejudice to the
assertion of the rights of the parties in an
equity court.
On September 28, 1916, the bill of comv
plaint in this case was filed. It contains
three prayers: The first, for alimony pen-
dente lite and permanent alimony; the sec-
ond, for an injunction to restrain Mr. Hub-
bard from disposing of certain household ef-
fects and furniture; and, third, the general
prayer for relief.
The evidence consists largely of the testi-
mony of the parties to this suit, and is con-
tradictory on material points. It would be
idle to attempt to reconcile their stories, or
account for the discrepancies by any suppos-
ed lapse of memory. The alleged foundation
for Mrs. Hubbard's suit is this: That some
-time during the month of July, 1915, or ap-
proximately two months after the dismissal
of her former bill for a divorce, and after
the hearing before the magistrate of the pro-
ceeding Instituted because of the nonsupport,
Mr. Hubbard did return to the house on
Madison avenue, which belonged to the par-
ties, and although not occupying the same
room with his wife, did during some week
or ten days take his meals or some of them
with his wife and others who were staying
at the house, thereby effecting at least a par-
tial reconciliation of the parties.
Mr. Hubbard, on the other hand, denies
most emphatically that he ever took a meal
at the house or stayed in the house over
night, and insists that the various witnesses
who testified to his presence there were mis-
taken in their estimates of time by at least
one year. He does admit that he paid a
brief visit to the house for the purpose of
getting some of his clothing, but Insists that
that waB all, and that the total length of
time that he was so in the house was very
brief.
In the course of the examination it was
admitted (record, page 28) by the counsel for
Mr. Hubbard that there was nothing to pre-
vent him from going heme. Of the conflict-
ing statements made by Mr. and Mrs. Hub-
bard, there is no corroboration of Mr. Hub-
bard's version. On the other hand, Mrs.
Hubbard is supported by the testimony of
the son of the parties, though apparently
some anImuH existed between the father and
son.
There Is further corroboration from three
apparently disinterested witnesses, a Mrs.
Overley, who spent a considerable length of
time in the house In 1915, and who details
with particularity the events and actions of
Mr. Hubbard In the house during that week
or ten days, at the expiration of which ho
left and did not thereafter return.
Mr. and Mrs. Haas were neighbors, living
on Madison avenue. Their testimony is to
the effect that, while neither of them saw
Mr. Hubbard In the house, yet Mrs. Haas
saw him entering the house, and Mr. Haas
saw him in the immediate neighborhood and
had a short conversation with him.
[1] The preponderance of testimony there-
fore is to the effect that after the dismissal
of the prior bill there was at least a partial
reconciliation of the patties, followed by Mr.
Hubbard's leaving the home, and that he
has not since returned to It
Upon one point the evidence of the parties
to the case is in entire accord, namely, that
since the decree of May 27, 1915, Mr. Hub-
bard has contributed nothing whatever to
the support or maintenance of his wife.
The right of a wife to look to her hushand
for support, and to maintain a bill in equity
therefor, where the parties are not living
together, and that through no fault of the
wife, is too firmly established In the law of
this state to call at this time for any dis-
cussion or extended citation of authorities.
WaUlngsford v. Wallingsford, 6 Har. & J.
485; McOurley v. McCurley, 60 Md. 185, 46
Am. Bep. 717.
[2] The only pretext upon which Mr. Hub-
bard relied in b\a testimony to justify his
failure to return to his wife, or to fail to
provide her with a proper allowance for her
support, was that she had had him arrested,
and that when the parties were before the
magistrate she had asked in anticipation of
his returning to their home to be afforded
police protection, but such reasons, however
galling they may have been to the husband's
pride, cannot be relied upon as justifying a
total failure to make any provision what-
ever for the support of the wife.
[3] A large amount of the testimony taken
at the trial of this case was directed to the
capacity of the husband to support his wife,
and the details of his business and the
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774
101 ATLANTIC REPORTER
amount received by him from It were gone
into at great lengtli. The facts upon the un-
contracted evidence of this branch of the
case show that he was conducting a relatTve-
\y small business In the shipping and selling
of oysters, and that the profits at the close
of the year were trifling in amount In
reaching this result there were deducted as
a part of the expenses of the business week-
ly payments to the defendant as salary of
$20, to his bookkeeper of $18, a foreman, $15,
and a driver, $11. Without stopping to con-
sider or discuss whether this weekly salary
list was or was not out of proportion to the
amount of business done, the important fact
Is that Mr. Hubbard had a weekly drawing
account as salary of $20.
The decree from which this appeal was
taken awards Mrs. Hubbard the sum of $3
per week as permanent alimony, less than
one-fourth of the earning capacity of the
hnsband, as shown by the salary which he
was drawing. Such an allowance of alimony
caimot be said to be unreasonable (Ricketts
v. Ricketts, 4 Gill, 105; Harding v. Hard-
ing, 22 Md. 337); and since an allowance for
alimony is subject to be increased or di-
minished by the court making it, according
to the altered condition of the parties as they
may from time to time exist, no reason is
apparent for disturbing the decree of the cir-
cuit court for Baltimore city, and that de-
cree will accordingly be affirmed.
Decree affirmed, with costs.
(131 Hd. SU)
BRADFORD et al. v. MACKENZIB et aL
(No. 70.)
(Court of Appeals of Maryland. Jane 28, 1017.)
1. Wills ®=»S07(1)— Constbuction— Fee.
Under a will devising the resiilue of testa-
tor's property equally among his wife and his
seven surviving children, "their heirs, execu-
tors and assigns," share and share alike, the
use nf such words was not controlling as to
whether the devisees took a fee simple.
2. Wills €=>622 — REMAisnERS — Precedent
Estate— Pee.
A remainder cannot be limited upon a fee
simple.
3. Wills iS=><5K— Executobt Devise— Pbe-
CEDENT Estate.
An executory devise can be limited after a
fee simple.
4. Wills «=a54S— Constbuction- Executobt
Devise.
Under a will devising a residue to testator's
wife and his seven surviving children, their
heirs, executors, and assiKns, and on the death
of any child intestate and without living issue
devising his share over to the survivini: devisees,
the share of a son so dying vested in the testa-
tor's surviving children, to the exclusion of the
children of a daughter dying intestate before the
son.
Appeal from Circuit Court, Baltimore
County; Frank I. Duncan, Judge.
Bill by Thomas Mackenzie, committee, and
others against Samuel W. Bradford and oth-
ers. Decree for plaintiffs, and defendants
appeal. Decree reversed, and cause re-
manded.
Argued before BOYD, C. J., and BRISCOE,
BURKE, THOMAS, PATTISON, URNER,
STOCKBRIDGE, and CONSTABLE, JJ.
Harry S. Carver, of Bel Air, for appel-
lants. Ralph Robinsoo, of Baltimore, and
Edward H. Burke, of Towson, for appellee
children of Mrs. McElderry. Gerald F. Kc^p,
of Baltimore, for Emeline K. Bradford.
Thomas Mackenzie, of Baltimore, for com-
mittee and trustee.
BOYD, C. J. The main quesUon involv-
ed in this case is the proper construction of
the residuary clause of the will of ttie late
Augustus W. Bradford, a former Governor
of this state. That clause Is as follows :
"A. I give and bequeath ail the rest and resi-
due of my property, real, personal and mixed,
after the payment of any debts I may be owing
at the time of my death, to be equally divided
among my wife aforesaid and my said seven sur-
viving children, to wit: Emeline K. Bradford,
Jane B. Bradford, Augustus W. Bradford, Jun-
ior, Charles H. Bradford, Elizabeth Bradford,
Thomas Kell Bradford and Samuel Webster
Bradford, their heirs, executors and assigns
share and share aUke.
"B. I do hereby further direct and declare
that so far as concerns the female devisees
above mentioned the portions so devised to them
respectively shall be for the sole and separate
use of each of tbem and absolutely free and
discharged from any interest or estate therein
lof any husband whom either of them may here-
after marry and in no way subject to his di-
rnctioQ or control or liable for his debts or en-
gagements.
"C. I do further will and declare that should
either of my said seven children included in the
aforesaid devises die intestate, whether in my
lifetime or afterwards, and leaving no issue
living at the time of their death, or should my
wife die intestate, then the share or portion of
the one so dying shall survive to and vest in the
surviving devisees aforesaid share and share
alike."
For convenience of reference we havo
marked those paragraphs in the residuary
clause A, B, and C, although those letters
do not appear tn the will. By prior provi-
sions in his will the testator had left to his
wife liis house and lot on Eutaw place in the
city of Baltimore, together with all the
household furniture, linen, pictures, and
plate therein contained (excepting a set or
plate described) for life, and after her death
to pass into the residue of his estate and be
with that residue equally divided as direct-
ed. He then made bequests to three of Us
sons of personal property and $50 to eadi of
his three daughters and the same amount to
his son Charles H.
Gov. Bradford died March 1, 1881, leariag
a widow and the seven children named in the
residuary clause. Mrs. Bradford (the wid-
ow) died December 27, 1894, leaving a last
will and testament Jane B. Bradford died
unmarried and without issue on February 2T.
1905, but left a will. Thomas Kell Brad-
ford died July 14, 1906, Intestate, unmar-
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BRADFORD t. MACEEKZia
775
rled, and witboot Issue. Elizabeth Brad-
ford married Thomas McElderry, who pre-
deceased bis wife, and she died June 9, 1915,
intestate, and leaving four children, all of
whom are of age except Sarah, and are par-
ties to this bill. Charles H. Bradford died
January 6, 1916, Intestate, unmarried, and
without issue. Augustus W. Bradford, Jr.,
and Emellne K. Bradford are still living, and
both are unmarried, and Samuel W. Brad-
ford Is still living, but is married and has
living issue. The three living children of
the testator claim the estate left by Charles
H. Bradford, while the children of Mrs. Mc-
Elderry claim they are entitled to a fourth
interest in it.
If paragraph A stood alone, it could not
be doubted that the wife and seven children
took the real estate In the residuary clause
in fee simple and the entire personalty.
Paragraph B tends to confirm that construc-
tion. The controversy arises by reason of
paragraph 0. As Charles H. Bradford died
Intestate and left no Issue, it becomes neces-
sary to ascertain the effect, if any, of para-
graph C on paragraph A.
Paragraph C was only intended to take ef-
fect in case of a child of the testator dying
Intestate and leaving no issue. In determin-
ing the effect of that paragraph. It must be
borne in mind that it is clear that the testa-
tor intended to connect It and paragraph B
with paragraph A Indeed, paragraph B is
relied on by the appellees in support of their
contention. It begins, "I do hereby further
direct and declare," etc., and then paragraph
C, which immediately follows, begins, "I do
further will and declare," etc. It was evi-
dently intended to be something more than
a mere expression of a wish, desire, or direc-
tion, such as is spoken of as precatory lan-
guage. All of those paragraphs were in-
tended to be taken together in reference to
the residuary devises and bequests, and, as
we have seen, were not separated by the let-
ters A, B, and C.
[1] It may be well to recall that the use of
the words "their heirs, executors and as-
signs" in paragraph A is not controlling.
In Devecmon v. Shaw, 70 Md. 219, 225, 16
Atl. 645, 647, Judge Alvey referred to what
Is section 327 of article 93 of Annotated Code
to show that the daughter took a fee simple
in the Teal estate without the use of the
words "to her and her heirs or to her In fee
simple,*' and he said she also took the en-
tire interest in the personalty, but, as we
will see later, held that the fee simple was
defeasible and the interest in the personalty
was subject to the contingencies specified.
So in Anderson ▼. Brown, 84 Md. 261, 35 Atl.
937, also referred to later, the devise was,
"To them and their heirs and assigns for-
ever."
[2, 8] What effect, then, did paragraph C
have on the devise and bequest given Charles
H. Bradford by paragraph AT it is clear
that there was no remainder, as a remain-
der cannot be limited after a fee simple (Bill
V. Hill, 6 Gill. 4 J. 87; 40 Cyc. 641; 24 Am.
& Eng. Ency. of Law, 380), but thst is not
so with an executory devise, and hence we
must determine whether paragraph C was
a valid executory devise, or made the estat>)
given by paragraph A defeasible upon the
happening of the contingencies specified.
[4] In 11 R. C. L., under the arUcle "Ex-
ecutory Interests," the subject is discussed
under different heads. Section 16 of that
article on page 476 is on "Limitation Repug-
nant to Gift with Absolute Power of Dia-
posaL" It is there said:
"Indestractibility is an essential element of
executory limitation, and an unlimited power of
disposition in the first taker is clearly incongru-
oaa with this idea, bcin^ ipso facto a destruc-
tion of the executor; limitation, whether the
power is exercised or not lo this constme-
tion no distinction is made between goods and
land, but if the primary gift vests in the first
taker an absolute interest In personal, or an ab-
solute fee simple in real, property, it exhausts
the entire estate, so that there can be uo valid
remainder. Thus where, an absolute gift to a
person is followed in the same instrumeut by a
gift over in case of that person dying intestate,
or without having disposed of the property, the
gift over is said to be repugnant, and is void.
When thnre is an absolute or unlimited devise
or bequest of property, a subsequent clause ex-
pressing a wish, desire or direction for its dis-
position after the death of the devisee or legatee
will not defeat the devise or bequest, nor limit
the estate or interest in the property to the
right to possess and use during the life of the
devisee or legatee. The absolute devise or be-
quest stands, and the other clause is to l>e re-
garded as presenting precatory language. The
will must be interpreted to invest in the devisee
or legatee the fee-simple title of the land, and
the absolute property in the subject of the l)e-
qnest. In the case of executory devisee, the
question whether the primary gift is in fee, so
as to exhaust the entire estate, is in each case
to he decided on a careful examination of the
entire will, aided by legitimate extrinsic evi-
dence, to ascertain the actual intent of the testa-
tor, which intent, when so discovered and made
obvious, is controlling."
Section 17 of that article is on "Limitation
Over After Life Estate with Power of Dis-
posal." Section 18 Is in reference to "Lim-
itations tending to Create Perpetuities Gen-
erally," and section 19 as to "Limitations
over on Failure of Issue." In the case of
Benesch y. Clark, 49 Md. 497, relied on by
the lower court, it was held that Mrs. Bram-
ble only took a life estate in the Monument
street lota, vlth the power of disposition, and
that the power was effectually executed by a
deed of assignment That case turned on
the question whether there was a valid ex-
ecution of the power. While it is true that
the language of the power there was that the
lots were to be disposed of as the life tenant
might see fit at his decease, and the court
held that the execution of the power was not
limited to a last will and testament, but the
assignment of the leasehold property was
valid, the court did not hold that the power
to dispose of the property by will necessarily
Includes the power to dispose of It by deed.
As shown by the dlsxTusslon of the cases dted
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776
101 ATIiiJmO REPORTBB
(Md.
by Judge Alvey, It depends largely npon the
language of the donor of the power. We do
not understand the rule to be as announced
In the opinion of the lower court that "a gen-
uine poiver to dispose of an estate by will
includes also a power to dispose of it by
deed," although such a power may be so
worded as to include a power or disposition
by deed. But this is not a case of whether a
power has been validly exercised, but wheth-
er the limitation sought to be imposed is
valid. There is not even an express power
given to dispose of the property by will, al-
though, as one of the JJinitatlons is (].vlng in-
testate, it must be inferred that the testa-
tor Intended that the devisees could dispose
of their interests by will, but it would be
diflScult to construe this language into a pow-
er to dispose of the property by deed. Of
course if he left the real property in fee and
the personalty absolutely, without any valid
limitations, the devisees could convey the
property by deed, or as they saw proper, but
that is not the question we are now consider-
ing.
Section 10 of R. O. L., already referred to,
begiju by announcing a rule, which seems to
be a very geuenil one, that:
"It is well settled that while an executory
limitation to take effect on a de6nite failure of
issue in the first taker is valid, yet a limitation
to take effect on a general or indefinite failure
of issue is void."
Most of the rest of the section la taken up
with the discussion of what is a definite or
Indchuite failure of issue, but tliere can be
no such question in this case. Tbe will it-
self says, "leaving no issue living at the times
of their death," and the act of 18C2, chapter
Iftl, now section 332 of article 93 oi the Code,
provides that expressions such as "die with-
out issiue," etc., "shall be construed to mean
a want or failure of issue m the lifetime, or
at the death of such perscm, and not an in-
definite failure of ills isiiue, uulci^s a contrary
intention shall appear by the will." A sim-
ilar provisioa in reference to deeds la now in
section 90 of article 21. Combs v. Combs,
67 Md. 11, 8 AU. 757, 1 Am. St Rep. 359, is
one of tbe cases' cited in the note to section
19 of 11 R. C. U, above referred to, to show
that in some states statutes have been passed,
^niat ca&e is relied on by the appellees to
show that paragraph C was invalid to alTect
paragraph A, but there the property was de-
vised to the devisees with full authority —
"to sell and convey the same in bis lifetime, or
to dispose of tbe same by lost will and testa-
ment; but should he die without issue of the
body lawfully beg^>tteD, and without havlni; dis-
posed of the same by sale, or by last will and
testament, either in whole or in part, then I
give and devise my said estate, both real and
personal, or the part remaining as above undis-
posed of, to my cousins," etc.
Of course, that limitation was held to be
void, as the gift to the first taker was ab-
solute and unqualified. It was there said
that an executory devise may be limited aft-
er a tee simple, but In such case, the former
must be made determinable on some contin-
gent event In this- case there was a fee, but
it was determinable on tbe contingency of
dying intestate and leaving no issue living at
the time of the death of the devisee, "the
share or portion of the one so dying shall
survive to and vest in the surviving devisees
aforesaid share and share alike."
In the case of Anderson v. Brown, 81 Md.
261, 35 Aa 937, the testator left real estate
to his wife so long as she should live or re-
main a widow, and at her death or marriage
he left to his eight children named —
"the aforesaid real estate to them and their
heirs and assigns forever, and in case of the
death of any one of them without issue living at
the time of his or her death, I do give and de-
vise his or her share to the survivor or surviv-
ors, and this principle of survivorship I do di-
rect to apply to any and all accumulations by
survivorship, not only to the original shares,
but to all accretions by survivorsmp until the
death of any and all of such children as may die
without issue at tbe time of his or her death."
It was there held, quoting from the sylla-
bus for convenience:
"First. That the devisees took estates in fee.
as tenants in common, defeasible as to each
upon his or her death without issue, in which
event the share of the person so dying passed
to tbe survivors, so that the last survivor took
his estate, including that which survived to him
in fee, atwolutely. Second. That it was not
the intention of the testator that in the case of
the death of one child without issue, his share
should go in part to the issue of pre-deceased
children, but nothing could pass to tbe issue
of a pre-deceased child except that which the
parent was entitled to at the time of his death.
Third. That the word 'survivor' as used in the
will meant the survivors of the children named
as devisees, and did not include the issue of a
deceased child as a surviving line of heirs."
That case is as nearly analogous to this
as we could expect to find.
In Devecmon v. Shaw et al., 70 Md. 219.
16 Atl. 645, tbe opinion of Judge Alvey filed
In the lower court was adopted by thi& court.
The testator after providing for his ^v^fe, and
after making certain devises and bequests to
his daughter without limitations or restric-
tions, added the provision:
"But in case my said daughter should die
without leaving any child or children at the time
of her death, or if leaving such child or chil-
dren, such child or all such children should die
before arriving at the age of twenty-one years,
then all the real estate and peraonal estate
devised to my said daughter shall go to my sis-
ter," etc
It was held tliat:
"The daughter (of the testator] took a ffeo-
simple estate in the realty, and tbe entire inter-
est in the personalty, defeasible as to both real-
ty and 'lersonalty on her dying without leavinic
a child, or, if she left child or children, upon
their all dying before attaining the age of 21
years; and upon the happening of such contin-
froncies the ultimate devisees and legatees would
take by way of executory devise and bequest,
and not by way of contingent remainder."
Judge Alvey said in his opinion:
"Upon consideration of the whole context ot
the will, I can entertain no doubt of the opia-
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ABTHUB A BOTM! v. MOBROW BRO&
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ion that the dauchtcr was inteDded to take,
and that rfie does by fair construction take, an
estate in fee in the realty, and the entire interest
in the personalty, defeasiblo as to both realty
and personalty, upon the hannening of the con-
tingencies specified."
There are a number of other cases decided
by this court to the same effect, and we are
forced to the conclosion that wider this will
the children of Mrs. McMderry took no In-
terest In the share of Charles H. Bradford
left to talm by his father's will.
It was said at the argument that in prior
matters concerning the estate of Got. Brad-
ford the appellants had concurred tn the
views now taken by the appellees, and pro-
ceeds of properties liad been disposed of ac-
cordingly, but there Is nothing in the record
which would Justify us for that reason in
making the distribution now before as om-
trary to what we are of opinion the will and
anthorlties require. We will, however, di-
rect that the costs be paid out of the estate
of Qiarleer H. Bradford.
Decree reversed, and cause remanded for
farther proceedings in accordance with this
opinion, the costs to be paid out of the es-
tate of Charles H. Bradford.
(131 MO. Et)
ARTHUR & B0YU3 v. MORROW BROS.
(No. 61.)
(Court of Appeals of Maryland. June 28, 1917.)
1. BXLEABK 0S»57(1) — BVIDENCB — SUFIT-
CIENCT.
In an attachment issued apinst a general
contractor on a judgment against the subcon-
tractor for work done by plalntiSs, h«ld, under
the evidence, that a release under seal executed
by the subcontractor to the general contractor
was not a release of the debt attached.
2. EVIDKNCE «=>7&— Prbsui(ftior— Failubx
OF Pabtt to Testify.
That neither of the garnishees took the stand
raises a presumption against them.
3. FBAnDin.ENT CONVETANCES «S>22&— LlA-
BiuTT or Gbaniee— Gasnishmert.
If a creditor has fraudulently conveyed prop-
erty to another, the grantee may be diarged as
garnishee.
4. FBAnDUI.EKT OoBVETANOSa 4=>48— VOL-
UNTABY Release by Cbxoitob.
The voluntary release of his debtor, by a
creditor not havinp; the means to pay debts is
void as to the creditors of the latter.
5. FBAUDUiiCNT Conveyances «s>273— Voi<-
VNTABY BEIXASE— PbESUUPTXOR.
If the necessary eSect and operation of a
voluntary release of a debtor was to hinder, de-
lay, or defraud creditors, the legal presumption
is tiiat it was made for that purpose.
6. Fbaudtjuint Convxyances «5»23— Yoi.-
UNTABY RbIAASB OF DSBTOB— IRBTBITMENT
UN DEB Seal.
If the release had its origin in fraud, or
what the law deems fraud, it would make no
difference that it was under seal.
Appeal from Superior Court of Baltimore
City; Robert F. Stanton, Judge.
Suit by Arthar & Boyle, for the use of
Fielder G. Slingluff and another, trustees,
ngnlnst James G. Parlett. On the Judgment
for plaintiffs, an attachment was issued
against Morrow Bros., garnishees. From the
Judgment against the garnishees, plaintiffs
appeaL Reversed, and new trial awarded.
Argued before BOYD, C. J., and BRISCOE,
BURKE, THOMAS, PATTISON, URNHR,
STOCKBRIDGE, and CONSTABLE, JJ.
Albert R. Stuart and Stuart S. Janney,
both of Baltimore (Ritchie & Janney, A.
Dana Hodgon, and Fielder C. Slingluff, all
of Baltimore, on the brief), for appellants.
CarvlUe D. Benson and John D. Nock, both
of Baltimore (Benson & Karr, of Baltimore,
on the brief), for appellees.
BOYD, O. J. The appellees were the gen-
eral contractors for the State Normal School
building near Towson, and made in writing
a subcontract with James G. Parlett to do
certain work in connection with its construc-
tion. The contract is not in the record, but
a memorandum of agreement filed in the
case shows that it was for grading and land-
scaping. Parlett made a subcontract with
Carozza Bros, ft Co., who in turn entered in-
to a subcontract with Artbur & Boyle, the
appellants.
While that work was going on, (Charles
Morrow, one of the appellees, called Frank
J. Boyle, one of the appellants, to where be
and Parlett were standing, and asked blm
If he would make some tunnels which were to
be constructed under the building, and he
replied that he would if he got his price, and
that be could start the next morning. After
some c<Hiversation about the price. Morrow
turned to Parlett and said:
" 'Parlett, get them in right away,' and also
said to me, 'You had better get your shovel up
there and get to work on them and get them
out, as we can't start this building until these
tunnels are taken out' Q. And he said to Mr.
Parlett, 'You get them out right away'? A.
Yes."
That is substanttally all in the record in
reference to the contract for the tunnels,
but it is corroborated by Parlett
The appellants did the work, and received
a payment of $1,890 on account of it. Frank
J. Boyle testitled that the amount was paid
to blm by Parlett, who received the money
from Morrow Bros., at their office, in his
presence, and turned It over to him. Later
the appellants sued the appellees for the
balance they claimed to be due on account
of the work on the tunnels, bnt the case was
decided against them. Afterwards they sued
Parlett and recovered a Judgment against
him for $4,409.06, with Interest and costs.
On that Judgment an attachment was issued,
and laid in the hands of Morrow Bros. They
first filed a plea of nulla bona, but subse-
quently filed an additional plea in which
they admitted having $250 in hand due Par-
lett, but alleged that they bad no other goods,
chattels, or credits of Parlett in their hands.
The $250 was for the balance due oa the
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contract tor grading and landscaping. The
trial In this case resulted In tbe appellants
obtaining a verdict tor only $250 against
Morrow Bros., the garnisbees, and they ap-
pealed from the Judgment thereon.
There are only two bills of exception Ijq the
record, the first b«ing to the admission of an
"agreement and release," a "memoratidum of
agreement," and a receipt which were offered
by the garnishees, and the second presents
the rulings on the prayers. The plaintiffs
offered five prayers, all of which were re-
jected, and the garnisbees offered three, the
second of which was granted, and the others
rejected. We do not find In the record a
copy of the Judgment on which the attach-
ment was Issued, bat the evidence of Mr.
Boyle shows that they recovered Judgment
for $4,409.05, with Interest from May 9, 1916,
and apparently that was the date of the
Judgment. Nor is there anything to show
when the suit against Pbrlett was Instituted.
The appellees rely on the agreement and re-
lease referred to, while the theory of the
appellants Is that Morrow Bros, owe Par-
lett a balance for the work on the tunnels,
which they claim Is the amount of the Judg-
ment they recovered against Parlett, and (1)
that Parlett never did release this claim,
and (2) that, even If be did, the release was
without consideration, void and of no effect
as to them, by reason of the British statute
(15 Elizabeth, c. 5) known as the statute
against fraudulent conveyances, in force in
this state.
[1] 1. We find no error In admitting the
papers referred to, notwithstanding our con-
clusion to be hereafter stated as to the ef-
fect of the release. The memorandum of
agreement was dated March 16, 1916, and was
executed by Morrow Bros., parties of the
first part, James G. Parlett, party of the
second part, and Carozza Bros. & Co., parties
of the third part, the individual members of
the two firms being also named. Its recitals
are as follows:
"Whereas, the parties of the first part entered
into a contract with the party of the second part
]or tho grading and latuUcaping [italics ours]
at the &fai-yland State Normal School, and the
parties of the third part claim to have an aasicn-
ment of said contract from the party of tlie sec-
ond port ; and whereas, a dispute has arisen in
regard to the state of accounts between them,
and the parties hereto have arrived at a com-
promise settlement of their differences: Where-
fore, now this agreement witnesseth: That in
consideration of the sum of one ($1.00) dollar
by each of the parties hereto to the other paid,
and in turthtr consideration of certain mntual
concessions by the parties hereto, it is agreed by
the parties hereto and each of them that the to-
tal amount due by the parties of the first part
in connection with and as a result of the matters
and Ihingi hereinhefore referred to [italics ours]
is- eleven thousand five hundred dollars ($11,-
5O0), and no more."
On the same day what Is called an "agree-
ment and release" was executed by Parlett,
party of the first part, and the Cnrozza Bros.
it Co., i)artles of the second part, to the
Morrow Bros., parties of the third part the
individual ' members of the firms being also
named. It recites:
That, "whereas, certain differences and i»
pntes have arisen between • • • [naming the
parties] regarding certain contracts entered into
by the parties of the first and third parts re-
garding certain work to be done at and on the
Maryland State Normal School, for the erection
of which school the parties of the third part vere
the general contractors, and whereas said dif-
ferences and disputes have been adjusted to the
satisfaction of the parties hereto," and that for
and in consideration of the sum of $10,500 in
hand paid to the parties of the first and second
parts by the parties of the third part, the re-
ceipt of which is aclcnowledged, and the further
payment of $1,000 when the state of Maryland
malies final payment to Morrow Bros., and of
other good and valuable considerations, Parlett
and Carozza Bros. & C>o. and each of them, re-
mise, release, and forever discbarge Morrow
Bros, "from all and all manner of action and ac-
tions, cause and causes of action, suits, debts,
dues, sums of money, accounts, reckoniniis,
lx)nd8, covenants, contracts, agreements, prom-
ises, damages, claims, and demands whatsot-ver
in law or in equity which against the said Wil-
liam H. Morrow and Charles A. Morrow, or ei-
ther of them, they ever had, now have, or which
their respective heirs, personal representatives,
or assigns hereafter can, shall, or may have^ for,
upon, or by reason of any manner or cause or
thing whatsoever from the beginning of the
world to the day of the date of these presents',
the said parties of the first and second parts,
and each of them, liereby declaring themselvea
fully paid and satisfied.
"And the said parties of the first and second
parts do hereby covenant and warrant that any
and all claims of any other subcontractors or oth-
er persons for latx>r and material done or tat-
nished in, about, or in connection with the con-
struction of the State Normal School in Balti-
more county, or in or about the site of said
State Normal School building, are paid in full,
and that they and each of them will assume and
pay any and all such claims as may arise or be
presented."
The receipt referred to Is as follows:
"Baltimore, 3A6/19ie.
"Recrived of Morrow Bros, two thousand dd-
lars in full settlement of Normal School con-
tract, except the sum of $1,000, which is to bs
paid when work is finally completed and accept-
ed, to be paid as follows: Parlett, $250.00:
Carozza, $750.00."
That Is signed by Parlett and Carozsa Bros.
It would be aifflcutt to use more words In a
release than In the one above set out, bot
there are some significant facts whldi can-
not be overlooked. In the first place, it would
have been so easy to mention the contract
for tunneling if that was intended. Then the
"memorandum of agreement" and the "agree-
ment and release" were executed the sane
day, and the former spedflcally refers to
the contract for grading and landscaping and
to no other contract. It cannot be contended
that It reUtes to that for tuaaeling. It is
there agreed "that the total amount due by
the parties of the first part [Morrow Bros.]
in connection With and as a result of the mat-
ters and things hereinbefore referred to, is
eleven thousand five hundred ($11,000) dollars,
and no more." The only things "hereinbefore
referred to" are the grading and landscaping-
The $11,500 Is the precise sum named ss the
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ARTHUR A BOTLE y. MORROW BROS.
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consideration In the agreement and release,
tbere being $10,500 In hand paid, and the
sum of $1,000 to be paid wlien tbe state made
its final payment It Is therefore afflrmative-
ly and clearly shown that no part of the $11,-
500 was paid for the tunneling, but that the
whole of that sum was due by Morrow Bros,
to Parlett and Carozza Bros. Company for
grading and tunneling.
But beyond that it is stated in the opinion
of the learned Judge below, and we so un-
derstand from the record, that the contract
for the grading and landscaping was made
between the Morrow Bros, who were the gen-
eral contractors, and Parlett Then Parlett
made a subcontract with Carozza Bros. & Co.
for that work, which, according to the mem-
orandum of agreement, the latter claim
amounted to an assignment of it, and that
firm made a subcontract with Arthur &
Boyle for that work. We find nothing in the
record to suggest that the Carozza Company
had any Interest whatever in the contract for
tunneling. It was therefore proper to join
the Carozza Company in the memorandum of
agreement and for them to unite In the re-
lease, and to require that company and Par-
lett to discharge Morrow Bros, from all
claims they were Jointly interested in or con-
nected with, but why should it have been in-
tended by that instrument to release Morrow
Bros, from a claim of Parlett with whidi
the Carozza Company had no connection?
If it had been so intended, the natural and
IHTOper thing to do was to specifically recite in
the release the claim for tunneling, as the
Carozza Company had nothing to do with it,
but were parties to the release. It is clear
that the release was only intended to affect
the contract or contracts with which Parlett
and the Carozza Bros. & Co. were both con-
nected, and not the one to which the latter
were In no wise parties.
Then when we come to the oral evidence,
which was admitted without objection so far
as the record discloses, and, we think, prop-
erly admitted under the issues, it is alto-
gether on the one side. Neither of the Mor-
rows testified, nor did they call a witness,
notwithstanding Parlett had sworn that the
tunnel work was not included, and not intend-
ed to be included. As the record stands.
Morrow Bros, have only paid $1,890 for
"sixty some hundred dollars" of work, with-
out an iota of evidence to contradict that
statement by Parlett and if the appellees'
constmctlon of the release la correct they
were released from the payment of over $4,-
000 without one penny's consideration; for,
as we have shown, the consideration named
in the release is exactly what all of the par-
ties agreed under seal was due for the grad-
ing and landscaping.
But that it not all. Morrow Bros, not only
knew that Arthur & Boyle were doing the
tunneling, but according to the uncontradicted
evidence Charles Morrow told Parlett In
Boyle's presence to get them to work right
away, and Parlett ga^e tlKou a ^irltten order
to do the work, which work U Is not denied
they did. The $1,800 which they did pay
was paid to Parlett in Boyle's presence, and
then turned over to blm in Morrow Bros.'
office. Parlett was criticized at the argument
for making in thda case statements con-
tradictory to and inconsistent with his evi-
dence In the suit which Arthur & Boyle
brought against Morrow Bros, for the balance
due for the tunneling work, but it cannot
properly be said that his explanation is an un-
reasonable one. He testified in the other case
that the money was due to Arthur & Boyle;
and not to him, and he said at this trial thai
he then thought it did. They did the work,
and under the facts about their employment
shown by the record he might well have be-
lieved that they were entitled to the money.
As Arthur & Boyle did the work, if their
charges for It amounted to all that Morrow
Bros, were to pay for it, the pn^er thing
for Parlett to do was to treat It as their
money, and not his. When the court deter-
mined that Arthur & Boyle could not recover
from Morrow Bros, and that Parlett was re-
sponsible to them, he then very properly
concluded that the money was due him. It
certainly was not intended by the court, or
any one else, that it should not be paid to
some one. It was due either to Arthur &
Boyle directly, or to Parlett for their bene-
fit. He admits that he made a memorandum
in his book of the amount and sent Morrow
Bros, a notice of it, bat he says that his idea
was that he was to collect it and pay it to
Arthur & Boyle. As be had given the written
order to Arthur & Boyle to proceed with the
work, it was perfectly proper for him to
make and keep a memorandum of it, but the
only money that has been paid he paid over
at once to Arthur & Boyle in the presence
of Mr. Morrow.
[2] The fact that neither of the Morrows
went on the stand is significant and raises
a presumption against them. Dawson v.
Waltemeyer, 91 Md. 328, 46 Atl. 904. Their
claim that they are released from the sum
due is simply based on the fact that the re-
lease is under seal, and not even on a con-
tention that they have paid the money. We
are therefore of the opinion that under the
evidence the release did not apply to the
contract for tunneling, and hence the fact
that it was under seal can make no differ-
ence.
That being so, no reason appears from the
record why Parlett cannot sue Morrow Bros.,
and there can be no application of the gen-
eral principle referred to in the opinion of
the lower court, and In the authorities cited
by the apiwllees, that ordinarily the test of
the liability of a garnishee is whether he
had property, funds, or credits in his hands
for which the debtor can sue him. That gen-
eral principle is clearly and thoroughly es-
tablished by 2 Poe on PI. & Pr. g 531, B. &
O. R.IU Co. V. Wheeler, 18 Md. 372, Myer v.
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(Ud.
Insurance Co., 40 Md. 695, and many otber
authorities which could be dteU, If there was
any doubt about It.
[3] But there are well-recognized excep-
tions to the general nile, one of which Is
that, If a creditor has fraudulently conveyed
property to another, the grantee may be
charged as garnishee. Odend*hal v. Devlin,
48 Md. 439; Farley v. Colver, 113 Md. 379,
386, 7T AtL 589; Hodge & McLane on At-
tachments, i 148. If he has conveyed it
contrary to the Statute of ESizabeth, it comes
within the exception.
[4-6] But if the release had included this
fund, then it would have been null and void
and of DO efTect as against the appellants
or other creditors of Pariett He testified
that he had no means with which to pay this
Judgment, and it was in effect conceded at
the argument that he was Insolvent If a
debtor and creditor can discharge an indebt-
edness simply by having the creditor execute
an Instrument like this under seal, and the
creditor has no other means with which he
can pay his debts, then indeed might it be
properly charged that the law encourages
fraud and protects fraudulent transactions,
instead of protecting honest and innocent
people from attempts to defraud them. We
do not mean to say that there was intention-
al fraud in this matter, but If It was in-
tended to get rid of this indebtedness for no
sufficient consideration, and thereby put it
beyond the reach of the creditors of Pariett,
it was certainly what the law condemns.
Pariett swears positively that it was not in-
tended to release this claim. The Morrows
are silent The Statute of 13 Eliz. (chapter
6) has frequently been before this court. A
voluntary conveyance is prima fade invalid
as against existing creditors of the grantor
who has no suffident means to pay his debts.
Independent of that conveyed, without regard
to his actual intent or to that of the grantee.
Christopher v. Christopher, 64 Md. 583, 588,
3 Atl. 296; Cone v. Cross, 72 Md. 102, 105,
19 Atl. 391. The burden is on the party
daiming under the conveyance to prove that
a debtor bad sufficient property with which
to pay his debts, exclusive of that conveyed
away. It is not necessary in order to bring
a conveyance within the statute that there
shall be an actual Intent on the part of the
grantee to perpetrate a fraud. If the neces-
sary effect and operation be to hinder, delay,
or defraud creditors, the legal presumption
is that it was made for that purpose. Schu-
man v. Peddlcord, 50 Md. 560, 563; Riley v.
Carter, 76 Md. 581, 600, 25 Atl. 667, 19 I*
R. A. 489, 35 Am. St. Rep. 443; 1 Alex. Br.
Stat (Coe's Ed.) 507, note 21. If the release
had its origin in fraud, or what the law
deems fraud, it would make no difference
that it was under seal. Schaferman v. O'Bri-
en, 28 Md. 565, 676, 92 Am. Dec. 708 ; Younss
V. Trustees of PubUc Schools, 31 N. J. Eq. 290.
The statute Is aiipUcable to release of
debta Blgelow on BYaud. Con. 132; May
on Fraudulent and Voluntary Dis. of Prop.
(3d Ed.) 15, 16, 20, 21; Moore on Fraud. Con.
p. eO, I 19; Hanser v. King, 76 Va. 731, 737;
12 R. O. L. 507, f 36; 20 Cya 364, 406.
It follows from what we have said that
there was error in granting the garnishee's
second prayer and rejecting the plaintiff's
prayers. In this state the practice uas been
and is to permit a creditor to resort in such
cases to either of two remedies, that of
attachment or by bill in equity (Stockbrldge
V. Fahnestock, 87 Md. 127, 136, 39 AtL 95.
and cases there dted); and hence we have
not thought It necessary to refer to the Juris-
diction of a law court, as it is well estab-
lished.
Judgment reversed, and new trial award-
ed ; the appellees to pay the costs, above and
below.
(131 Md. 29<)
SOULSBY et al. v. AMERICAN COLONIZA-
TION SOC. et al. (No. 54.)
(Court of Appeals of Maryland. June 28, 1917.)
Appeal and £rbob «=>1203(5)— Mandate-
DlSUISSAI..
In a suit by the residuary legatees of the
grantor of the trust to declare it void, a judg-
ment of the Court of Appeals on a former ap-
peal that the trustees' adversary possession of
the trust property for more than 20 years prior
to the suit was a bar to its recovery by the peti-
tioners, notwithstanding a statement in the opin-
ion that the trust was void because conflicting
with the rule against perpetnitiea, was a deter-
mination that the petiUoners bad no right of ac-
tion, so that, after mandate, the lower court's
decree dlBmissing the petition was correct
Appeal from Circuit Court of Baltimore
City; Walter I. Dawkios, Judge.
Suit by Robert Soulsby and others against
the American Colonization Sodety, Ferdi-
nand C. Latrobe, and another, trustees. De-
cree sustaining the demurrers to the petition
and dismissing the petition, and petitionera
appeal. Decree affirmed.
Argued before BOYD, C. J., and BRIS-
COE, BURKE, PATTISON, URNBB, STOCK-
BRIDGE, and CONSTABLE, JJ.
Leigh Bonsai, of Baltimore, for appellants.
William O. Johnson, of Washington, D. (X.
and D. K. Este Fisher, of Baltimore, for ap-
pellee American Colonization Soc. ChariM
F. Stein, Eugene O'Dunne, and Donald B.
Creecy, all of Baltimore, for appellees Ferdi-
nand C. Latrobe and James W. Harvefi trus-
tees.
CONSTABLE, J. This appeal arises from
a misunderstanding of the meaning and ef-
fect of the mandate together with the opin-
ion of this court In the case of the American
Colonization Sodety v. Robert Soulsby et al.,
129 Md. 605, 99 Atl. 844, L. R. A. 1917a
937.
We need only refer briefly to the facts of
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SOXJIiSBY V. AMERICAN" COLONIZATION SOa
781
the litigation, tor thfey were set out very
fully In the careful and comprehensive opin-
ion prepared by Judge Pattlson on the for-
mer appeal. Caroline Donovan In 1886 ex-
ecuted a declaration of trust, In which she
provided that after her death certain enum-
emted real property should be held by speci-
fied trustees, and the net income paid over
to the American Colonization Society for
the transportation annually to LlBeria of
such colored persons as might desire to emi-
grate to that country, with the further pro-
vision that, if in any one year the cost of
transportation for that year should not re-
quire the whole of the net Income for that
year, the Income, or any balance, should be
used by the said society for the maintenance
of public schools for the education of col-
ored children In liberla. It was provided
that the trust was to be under the supervi-
sion of a court of equity; so therefore at
the death of Caroline Donovan, in March,
1890, the circuit court of Baltimore dty as-
sumed Jurisdiction of the trust; and from
that time to the present the trustees have
collected ttae rents from the properties and
paid the net Income over to the society.
The American Colonization Society is a
Maryland corporation incorporated in the
year 1831, and was empowered under a new
charter, passed In 1837, to purchase, have,
and enjoy any lands by the gift, bargain,
sale, devise, or otherwise of any person, to
take and receive any sums of money, goods,
or chattels that should be given to It in any
manner, and to occupy, use, and enjoy, sell,
transfer, or otherwise dispose of the same
as it should "determine to be most conducive
to the colonization, with their own consent
In Africa, of the free people of color re-
siding in the United States."
The appellants and petitioners, who are
the lieirs at law and residuary legatees of
Caroline Donovan, fl'ed their petition in this
cause, praying that the trust properties
might be delivered over them, upon the
ground that the trust was void. The reasons
assigned for Its invalidity were twofold, or
In the alternative. They contended, in the
first place, that the declaration of trust was
void as contravening the rule against per-
petuities and for Indeflnlteness, and again
that, even though it should be found that for
those reasons It was not void ab Initio, yet
nevertheless It had since become inoperative
and void, because the objects and purposes
for which It had been created could no long-
er be accomplished.
Demurrers were filed to the petition on
various grounds, including the ground that
adversary possession for several years more
than the statutory period completely barred
all recognition of the petitioner's claim. The
lower court overruled the demurrers, and
the trustees and the society appealed to this
court. This court, in disposing of the ap-
peals, entered the order as follows: "Order
l«Tersed, and cases remanded; the appel-
lees to pay the costs." After the mandate
was received below, the petitioners asked
leave to amend the petition, but this the
court refused to permit, and entered a de-
cree sustaining the said demurrers and dis-
missing the petition. B^m this decree the
petitioners have takoi the present appeal.
As we said In the beginning of this opinion,
this appeal arises from a misconception of
the effect of the order on the first appeal.
The appellants have laid hold of certain
pessages In the opinion the meaning of
which, when considered with the whole of
the text, gives no aid to the appellants'
present contentions, and were not intended
to do so when adopted by us. From the
passages they argue that, when this court
reversed the previous decree and remanded
the cause, It must have Intended that the
petitioners were to be allowed to amend.
The fact Is that this court intended exactly
what it has Intended In a great nnmber of
cases where similar orders have been passed,
where, by the opinion filed, It appeared that
the complainants' or petitioners' contentions
had been ruled against, that is, to have the
lower court enter the decree of dismissal.
As stated above, the petitioners had two
contentions — one that the trust was void ab
initio; the other, that although the courts
should find that the trust was not void ab
initio, yet It must be found that it was void
now, for the reas<m that the purposes for
which It had been created were no longer
available. Judge Pattlson in delivering the
opinion of the court first dealt with the
former contention, and, after reviewing sev-
eral of our leading cases treating of the
rule against perpetuities, announced our con-
clusion in the following plain and unequivo-
cal language:
"Whatever may be the law elsewhere, we, fol-
lowing the decisions of this court, must hold the
trust in this case to be void because it is a per-
petuity, in that it attempts to create an active
trust which is required to continue beyond the
period limited by the rule, but, although the
trust is void for the reason stated, the petition-
ers are havred from recovery upon the ground
of its invalidity, resulting from tmch cause, be-
cause of the adversary possession of the trustees
of the trust property for a period of more thaa
20 yeai-s prior to the institution of these pro-
ceedings."
And in support of the latter part of the
above Needles v. Martin, 33 Md. 618, was
cited and quoted from with several cita-
tions of authorities to the same effect
This, then, became the law of the case,
and the correct law, as we then thought and
now think. In our opinion, when we held
that the adversary possession by the trustee
of the trjst property was a bar to Its recov;
ery by the petitioners, we Intended to say
Just what the words. In their ordinnry mean-
ing, import; that Is, that whatever rights
the petitioners might have had at one time
had been lost because others had acquired
them through operation of law. This abso-
lutely settled the case, in so far as the peti-
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101 ATLANTIO REFOBTSB
(Md.
tloners were concerned, without the neces-
sity of adverting to the other contention of
the petitioners, based upon the theory thac
the trust, at the time of its creation, was
a Talld one, but had since become void
through the Impossibility of carr>'ing out
Its objects. But It was thought proper, and
perhaps helpful as a matter of pleading, to
point out why the allegations of the peti-
tion that the grantor's objects and purposes
were not being carried out were insufficient,
and the demurrers thereto would have had
to be sustained. If a different view bad been
taken of the question of adverse possession.
The lower court by Its order dismissing
the petition correctly expressed the man-
dates of this court.
Decree affirmed ; the appellants to pay the
!<OSt8.
(130 Md. ett)
HOEW V. KIDD.
(No. 69.)
(Court of Appeals of Maryland. June 28, 1917.)
Brokkbs <S=»88(1)— ComiissiON— Recovkey—
JUBY QcEsnoR.
In an action for connnissions on the snle of
timber, held that the case was properly submit-
ted to the jury ; the evidence as to the agree-
ment that defendant was to be the judge wheth-
er plaintiff actually made the sale being contra-
dictory.
Appeal from Circuit Court, Baltimore Coun-
ty; Prank I. Duncan, Judge.
Action by Frank B. Kidd against Frank N.
Hoen. Judgment for plaintiff, and defendant
appeals. Affirmed.
Argued before BOYD, C. J., and BURKE,
THOMAS, PATTISON, DBNER, and STOCK-
BRIDGE, JJ.
Elmer J. Cook, of Towson (Prank J. Hoen
and Willis & Willis, all of Baltimore, on the
brief), for appellant. T. Scott Offutt, of Tow-
son, for appellee.
STOOKBRTDQR, J. This appeal Is from a
Judgment for $170, rendereSfl In the circuit
court for Baltimore county in a suit to re-
cover commissions on a sale of timber grow-
ing on some land belonging to the appellant.
There is but (me bill of exceptions. That
was reserved to the action of the trial court
upon tlie prayers. The first instruction asked
for by the defendant was that there was no
evidence legally sufficient to entitle the plain-
tiff to recover, and tliat the verdict must be
for the defendant. It is upon the rejection
«f this prayer that the appellant lays the
most stress, and it is to this that considera-
tion must first be given.
In the early part of September, 1915, Mr.
Kldd, a real estate broker, called on Mr.
Prank H. Hoen relative to a sale of the tim-
ber on some 200 acres of land belonging to
the latter in Baltimore county. He produced
• contract which Mr. Hoen refused to sign.
Mr. Kidd got up to leave, saying :
" 1 can't do any bnsiness with yon 7* and I
said, 'No, sir; none at all;' and he started out
the door, and then he came back and he said,
'Now, Mr. Hoen, suppose I could procure a
purchaser for this tract of timber; you would
not object to paying me the comicission?' and I
said. 'No; if I could know you were able to sell
it and actually did it, I would not object to
paying you the commission, but under no cir-
cumstances would I give ^ ou the order or com-
mission you to act for me in the premises at all;
I would have to be the judge as to whether you
actually made the sale or not ;' he said, That is
perfectly satisfactory to me; you are responsi-
ble; that is perfectly satisfactory;' and with
that he went out"
Tills Is the account of the first Interview
as given by Mr. Hoen. Mr. Kidd's version
is much shorter. He denies positively the
statement that Mr. Hoen was to be the judge
whether Mr. Kidd made the sale or not, and
described the interview In this way :
"t told him I was in the real estate business
and sold farms and also sold timber, and Mr.
Hoen said that if I would bring or send a man
I would get five per cent commissions, and
he asked, first, who paid the commissions and
1 s.i!d, the man selling it, and I told him I sold
farms too, and I think I left him a form — I for-
get what yon call it—* form where yon fill oat
a blank form."
Mr. Kldd went to Natwlck & Co. to en-
deavor to induce them to pnrcliase the tlmbw.
and on September 14th this firm wrote to Mr.
Hoen, looking to a i)0ssible purchase. This
letter was followed up by a call on Mr. Hom
by Mr. Natwick on October 31st The prog-
ress was slow, and the deal not finally con-
summated until January 26, 1916, but negoti-
ations do not seem to have been ever definite-
ly broken off, and on frequent occasions,
either by calls or conversations over the tele-
phone, Mr. Kldd continued to press the com-
pletion of the sale.
At some time during this period a Mr. Sny-
der appears upon the scene, and it Is sug-
gested that he was or might have been the
eUlcient cause in coasumraatlng the transac-
tion. Mr. Natwick's testimony in relation
to Snyder makes It seem as though his call
was of a social rather than business nature.
The case as presented, therefore, cannot be
said to have been so entirely devoid of evi-
dence as to warrant the court in withdrawing
it from the consideration of the Jury. On
one material point there was a direct contra-
diction between the plaintiff and defendant
and it was for a Jury, not the court to say
which was the correct version.
The subject of real estate brokers commis-
sions has t>een a most fruitful occasion for
litigation, and decisions defining the law
governing them can be found in every state
in this country. Nowhere have the prin-
ciples controlling such controversies been
more clearly stated than in Maryland. Snch
cases as Keener v. Harrod, 2 Md. 70, 66 Am.
Dec. 706; Martlen v. Baltimore, 109 Md 260.
71 AO. 966; Walker v. Baldwin, 106 Md.
632, 68 Atl. 25; Slagle v. RusseU, U4 Md.
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BECKER r. FAEDERICK W. UPPS CO.
788
418, 80 Aa 164; Way v. Ttumer, 127 Md.
327, 96 Aa 676, aad DanieOs t. Iglehart,
decided at the present term (no opinion
filed), bare fuUy covered every principle in-
volved In this case, and a mere repetition of
what was said in these cases would be super-
flaons.
Objection ta the other prayers was not
strenuously Insisted on, and, even if It had
been, no reversible error is apparent in any
of them ; and, as the plaintiff produced suffi-
cient evidence to require the submission of
the case to a Jury, the Judgment appealed
from will be affirmed.
Judgment affirmed.
(m Md. 301)
BECKE3R V. FREDERICK W. UPPS CO.
(No. 57.)
(Court of Appeals of Maryland. June 28, 1917.)
1. BooiTT <S=»43— Legal Reiocdt.
Where plaintiff's right of action is not de-
pendent upon or based upon some equitable mat-
ter, such OS fraud, mistake, accident, trust, ac-
counting, or the like, and tlie legal remedy would
be complete, adequate, and certain, courts of
equity liavc no concurrent jurisdiction, and will
not interpose.
2. Account $=3l2 — Surr fob AcconNTiNO —
BiLu
Bill in equity brought by the purchaser of a
year's output of empty barrels from a manufac-
turer of confections, which bill alleged that the
confectioner failed to deliver empty sngar bar-
rels, and that plaintiff bad no way to ascertain
what number constituted the entire output of
sugar barrels for the year, and prayed for a
discovery and accounting and damages, could
not be maintained as a suit for an accounting.
3. DlSCOVKBT «C=>6— ADXILUBT REMEDY.
IMscovery in equity to support an action at
law or as auxiliary to the maintenance of a
anit contemplated to be brought can be resorted
to only where the discovery is essential and
absolutely nocessarr to the establishment of
plaintiff's rights, ' and the information cannot
be otherwise obtained. .
4. DiscovEBY «=»3 — BiLt, — Possibility of
DiSCOVEBY AT TAW— StATUTB,
Bill by pnrehnser of a year's output of empty
sugar barrels from a confectioner, which alleged
nondelivery, and prayed discovery, and a judg-
' ment for damages, > was not maintainable as a
bill for discovery, so that the court would pro-
ceed to determine the whole matter in contro-
versy, as the discovery prayed for would have
been available to plaintiff under Code Pub. Gen.
T^ws 1904, art. 75, H 99 and 100, providing
mode of procuring prodootion of books, papers,
and testimony in a court of law.
Appeal fnnn Oircnlt Court of Baltimore
City ; ' H. Arthur Stump, Judge.
rPo be bffldaliy reported*"
Suit by William Becker, trading as Wil-
liam Becker & Co., against the Frederick W.
Liipps Company, a body corporate. From an
order sttstainlng demurrer and dismissing the
bill, plaintiff appeals. Order affirmed.
Argued before BOYD, O. J., and BRISCOE,
BURKE, THOMAS, PATTISON, URNER,
STOCKBRIDGB, and CONSTABLE, JJ.
Louis S. Ashman and George Weems Wil-
liams, both of Baltimore (Lucius Q. C. Ia-
mar, of Baltimore, on the brief), for appellant.
Laurie H. Riggs, of Baltimore (C. R. Watten-
Scheldt, of Baltimore, on the brief), for ap-
pellee.
BRISCOE, J. The questions for decision
in this case are raised upon a demurrer to
a bill In equity whidi was sustained by the
circuit court of Baltimore city. The bill
was accordingly dismissed, and leave of the
plaintiff to amend was denied.
The principal defense made on the demur-
rer and relied upon in argument Is that the
circuit court of Baltimore city haa no Juris-
diction of the subject-matter of the suit, be-
cause the cause of action and relief demand-
ed are fully legal in their nature and prop-
erly cognizable in a court of law.
The facts of the case out of whidi the con-
troversy arose and upon which the decision
of the case must turn are stated and ap-
pear from the averments of the bill and are
admitted by the demurrer to be true. They
are these:
The plaintiff is engaged In the cooperage
business In the city of Baltimore, and in the
conduct of the business and In connection
therewith buys and sells empty barrels of
various kinds. The defendant is engaged in
the manufacture and selling of chocolate and
confections In the dty of Baltimore, and In
connection with its business has on hand a
large' number of empty barrels of diffa«nt
kinds for sale. On August 6, 1916, the plain-
tiff agreed to purchase and the defendant
agreed to sell all of defendant's output of
empty barrels for the period of one year
from the 15th of July, 1915, to the 15th of
July, 1916, upon the terms, conditions, and
prices provided by a contract between the
parties, which will more fully appear from
the averments of the bill disclosed by the
record now - before !!& The contract was
signed in duplicate, is filed with the bill, as
Plaintiffs fhchlbit No. 4, and is as follows:
"Baltimore. Md., 7/16/15.
"This agreement made this 15th day of July,
1915, between Wm, Becker & Co., parties of the
first part, and the Frederick W. Lapps Company,
parties of the second part, all of Baltimore city:
"Parties of the first part agree to purchase
and parties of the second part agree to sell all
of their entire output of empty barrels, as they
run, no deductions to. be made for damaged
barrels, unless by mutual consent, prices as fol-
lows:
CondenMd milk oak twrrela: (1.00
Soft wood oondeased mUk barrels .80
Glucose barrels ,90
Headdown glucose barrels 1... .75
Single head glucose barrels .60
Grain alcobol and spirit barrels. 1.00
Olive oil and cotton seed barrels..., I.0O
Engine, cylinder, dynamo oil barrels 8&
Double head sugar barrels 20
Damaged and single head sugar barrel* .1!!
Cocoanut, originally auga^ barrels.... Jfi
"And all other empty packages not mentioned
above to be accepted at the ruling market prices.
"The parties of the first part guarantee the
above prices for one year from date, and agree
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101 ATLANTIO REPORTER
(fli.
to promptly remove all barrels wben notified by ]
the parties of the second part.
"Witness the signature of the parties of the
first part and the parties of the second part
duly authorized to sign this agreement.
"Terms: Cash on delivery.
"Accepted August 5, 1915.
"The BYederick W. Lipps Co., [Seal.]
"By Frederick W. Lipps, Pres."
The bill alleges that the defendant tailed
to deliver to bim the entire output of empty
sugar barrels, as under the contract it was
required to do, but has at all times refnsed
to deliver any of said barrels, although often
demanded so to do; that tbe defendant has
broken the contract, and as a result thereof
tbe plaintiff has suffered a very substantial
loss and damage therefrom.
The bill tben alleges tbat the plaintiff has
no way or means of ascertaining what num-
ber In fact constituted tbe defendant's en-
tire output of sugar barreU for the period
of one year mentioned In the contract be-
cause the facts and the means of ascertaining
them are in tbe exdusive keeping and pos-
session of the defendant.
The prayer of the bill Is, in substance,
that a court of equity decree a discovery, an
accounting, and the defendant also be de-
creed to pay the sum ascertained to be due
tbe plaintiff as damages for a breach of the
contract, and such other and further relief
as the case may require.
It Is contended upon the part of the de-
fendant In support of the demurrer that tbe
plaintiff's relief or remedy, if any, is an ac-
tion at law for the recovery of damages for a
breach of contract ; (hat a court of equity Is
without Jurisdiction to entertain this bill, and
the plaintiff ought to be left to his remedy at
law.
On the other hand. It is urged by tbe
plaintiff tbat the bill is one for an account-
ing and a dis(»very, and that a court of eq-
uity has concurrent jurisdiction to hear and
determine the case under tbe averments of
the bill. The doctrine is well settled in this
state that, where a party has a certain, com-
plete, and adequate remedy at law, he can-
not sue In equity. Tbe cause of action in
this case, it will be seen, is clearly and pri-
marily a legal one, arising from tbe nonper-
formance of a contract to deliver sugar bar-
rels, and for the breach of which damages
are sought to be recovered by the plaintifl
from the defendant
[1] In such cases, where the ri^t of ac-
tion Is not dependent upon or based upon
some equitable matter such as fraud, mistake,
actddent, trust, accounting, or the like, and
the legal remedy would be complete, suffi-
cient, and certain, courts of equity have no
concurrent Jurisdiction, and will not inter-
pose. 1 Pomeroy, EX]. Jurisprudence, H 17^
236; Price v. Tyson, 3 Bland, 399, 22 Am.
Dec. 279; Powles v. Dllley, 9 Gill, 239;
Taylor v. Ferguson, 4 Har. & J. 46.
In OUver v. Palmer. 11 OUl &. 3. 444, It
Is said, if In a case like the present, where
the dalm asserted Is strictly legal In Its
form and substance, where the remedf at
law is exi>editious and ample, you grant to
the court of equity the power ascribed to it
upon the principles upon which It is claimed,
there is scarcely a case resting in contract
and now cognizable in a court of law wbldi
may not be drawn into the vortex of chan-
cery Jurisdiction.
[2] It la quite certain that the bill in this
case cannot be sustained or maintained as a
suit in equity for an accounting. Its alle-
gations are not such as to bring it within
tliat dass of cases where a court of equity
will take Jurisdiction for an aocoont UU-
ler-s EJqulty, { 721, p. 823; 1 Pomeroy, Eq-
uity Jurisprudence, S 230; Taylor v. Fergu-
son, 4 Har. & J. 46. But it is insisted on tbe
part of the appellant that the bill is framed
for discovery, as well as for relief, and the
court, being rightly in possession of the
cause, will proceed to determine the whole
matter in controversy.
[3] There are cases where a discovery may
be had not only to support an action at lav,
but as auxiliary to the maintenance of i
suit contemplated to be brought, but they are
cases where the discovery Is essential and
absolutely necessary to the establishment of
the plaintiff's rights, and the InformatlOD
cannot be otherwise attained. Wolf v. Wolf,
2 Har. & J. 382, 18 Am. Dec. 313; Panott v.
Ohestertown Bank, 88 Md. S15, 41 AtL 1067;
Heinz y. German Bldg. Ass'n, 95 Md. 160, 51
Atl. 951 ; Union Passenger Railway Co. v. M.
& O. 0., 71 Md. 238, 17 AtL 933.
The general principle is stated In Russell
T. Clark, 7 Crandi, 90, 8 L. Ed. 271, as fol-
lows:
"It is true tbat, if certain facts essential to
the merits of a claim purely legal be ezdasiTel;
within tbe knowledge of the party against whom
that daim is asserted, he may be required in
a court of chancery to disdose those facts, and
tho court, being tous rightly in possession of
the cause, will proceed to determine the whole
matter in controversy."
In Phelps' Juridical Equity, ISO, it U said
that not much stress is now laid upon tbe
auxiliary jurisdiction of courts of equity,
meaning the power to compel discovery, pro-
duce docnments, etc since those powers
have been by statute conferred upon tbe
courts of law, and the necessity for the anx-
lUary jurisdiction may be said to be prac-
tically almost entirely superseded, althongh i
still occasionally resorted to. 1 Pomeroy,
Eq. Jur. ii 83, 124, 143, 215 ; arUde 75, U
98, 99, and 100, Code P. O. Laws.
In the present case the discovery sought
by the Mil was a detailed statement of tbe
number of sugar barrels constituting defend-
ant's entire output for the year begtnnbig
July 15, 1915, and ending July 15. 1916, and
that the defendant be required by decree of
this court to pay the plaintiff the sum as-
certained to be due.
[4] It is clear that the discovery p«ir«<J
for in the bill would have been Available to
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WIIjHXXilf V. MZTCHELIi
785
the plaintiff, under article 75, |i 99 and 100,
of tlie Code In a conrt of law, where the
mode of procnrlng tbe production of books,
papers, and testimony Is provided for in as
ample a manner as In a conrt of equity, and
where there Is an adequate, complete, and
suffldent remedy pointed out by law, courts
of equity will not Interpose.
For the reasons which we have stated, we
do not think the appellant has made out such
a case as entitles him to relief In a conrt of
equity, but that his case Is properly cogniza-
ble in a court of law.
The Older of the court below sustaining
the demurrer and dismissing the bill will be
affirmed.
Order afltoned, with costs.
(131 Hd. 868)
WII^HELM V. MITCHELI/. (No. 22.)
(Court of Appeals of Maryland. Aug. 11, 1917.)
COUBTS €=>184— OOTJNTT COUBTS— SUTTICIEN-
CT OF DECLABATION.
Under section 18g of the "Speedy Judgment
Act" for Baltimore cotinty (Acts 1894, c. 631,
as amended by Acts 1012, c. 386, Acts 1914, c
817, and Acts 1916, c. 184), providing that
plaintiff shall not be entitled to judgment an-
lesa in an action founded upon an implied con-
tract he state - the particulars of the indebted-
ness, a declaration on the common counts for
a phygician's services, two of the items being,
"To amount of account rendered August 31,
1007, $188," "to amount of account rendered
May 6, 1006, $29," without disclosing to whom
the accounts were rendered or the nature of the
indebtedness or when it was incurred, gave the
court no jurisdiction to enter judgment thereon.
Appeal from Circuit C<ourt, Baltimore
County; Frank L Duncan, Judge.
Action by Dr. A. R. Mitchell against Clar-
ence M. Wllhelm, administrator of Mary J.
Wilhelm, deceased. From an order of the
circuit court for Baltimore county overruling
a motion to strike out a judgment In favor
of the plaintiff, defendant appeals. Reversed,
and new trial awarded.
Argued before BOYD, O. X, and BURKE,
THOMAS, PATTISON, URNBR, and
STOCKBRIDOS. JJ.
O. Parker Baker, of Baltimore, for appel-
lant. T. Scott Offutt, of Towson (John Mays
Little, of Towson, on tbe brief), for appellee.
PATTISON, J. This Is an appeal from an
order of the circuit court for Baltimore coun-
ty, overruling a motion to strike out a judg-
ment entered In favor of the appellee against
the appellant.
The suit in which the judgment sought to
be stricken out was rendered, was brought
on May 26. 1916. \inder what Is known as
"the Speedy Judgment Act" for Baltimore
county, chapter 631 of the Acts of 1894, as
amended by chapter 385 of the Acts of 1912,
chapter 817 of the Acts of 1914, and chapter
184 of the Acts of 1916.
The declaration contained the common
counts only, and with it was filed the follow-
ing account or cause of action verified by the
affidavit of the plaintiff:
Monkton, Md., Blarch 27, 191B.
Estate of Mrs. Mary J. Wilhelm, to Dr. A. B.
Mitchell, Dr.
To amt of acct rendered Aug. 31,
1907 $183 00
To amt of acct. rendered May 6,
1808 28 00
To subsequent attention as fol-
lows:
1908, May 8.
1912, May 28
1915. Feb. 16, Feb. 26, Feb. 27,
Fet. 28..... 8 25
$219 46
$10 00
10 00
8 00
25 00
Credits:
1909, June 21, cash
Oct. 28, cash
1810, Aug. 2, cash
Aug. 29, cash
Balance $166 46 $53 00
1916 Feb. 23 by check on account 53 00
The defendant being duly summoned, but
falling to appear and plead to the declara-
tion within the time prescribe by the stat-
I ute, the plaintiff filed his motion In writing,
' as provided by tbe act, asking "the court to
I enter a judgment by default against the de-
! fendant for want of proper plea, affidavit,
< and certificate, as required by the statute
{ In such case made and provided and • • •
to extend said judgment." Upon this mo-
tion a judgment was entered by order of the
court. Thereafter the defendant filed his mo-
tion to strike out the judgment so entered,
assigning as one of the reasons therefor the
insufficiency of the account under the provi-
sion of the act, under which the action was
brought and the judgment rendered. This
motion was overruled, and It Is from the ac-
tion of the court in overruling It that this
appeal Is taken. The act provides (chapter
631, i 18g, of the Acts of 1894), that the
plaintiff shall not be entitled to Judgment
under the provisions of said act, "unless at
the time of bringing his action, he shall file
his dedaratlon, with an affidavit, or affirma-
tion, • * • stating the true amount the
defendant is Indebted to him over and above
all discounts, and • • • if the action be
formed ui>on a verbal or Implied contract
shall file his statemeat of the particulars of
the defendant's Indebtedness thereunder."
The account, as stated above, Is the only
cause of action that was filed In the case,
and should It be found that It does not meet
the requirements of the statute, In that It
falls to give a statement of the particulars of
the defendiant's Indebtedness, the plaintiff
was not entitled to judgment by default un-
der the aforesaid statute, and the court was
without Jurisdiction to enter the judgment,
and its Irregular entry could in no way aid
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101 ATLAMTIO REPOBTEB
OU.
or supply that want of Jurisdiction. Thlll-
man t. Sbadrlck, 69 Md. 630, 16 Atl. 138. As
stated In Adier ▼. Crook, 68 Md. 491, 13 AtL
153:
"The object of the act was, in cases to which
it applied, to obtain from both plaiotiff and
defendant a definite and sworn Etatement of both
the claim and the defense (if any) so that the
parties might know exactly wherein they dif-
fered and shape their actions accordingly."
It will be seen from an examination of
the account which is dated March 27, 1915,
that It contains but three debit items,
amounting in all to $219.25. Two of these
Items aggregate $211, and are stated as fol-
lows:
To amt. of acct rendered Ang. 31, 1907 $183.00
To amt. of acct rendered May 6, 1908 28.00
It appears from these Items that two sep-
arate accounts were rendered to some one,
but to whom they do not disclose, nine and
«lgbt years, respectively, before the Institu-
tion of this suit. It is not shown by the
account filed what these accounts so render-
«d contained, and there is nothing in the
Items themselves showing the nature and
-diaracter of the alleged indebtedness or
when the same was incurredt, To us it is
dear that the account as filed does not set
forth the particulars of such alleged iudebt-
. edness as required by the statute, and there-
fore the judgment was, in our opinion,
wrongfully entered under the statute, and
should have been stricken out under the mo-
tion filed.
It is contended by the appellee that as the
defendant was regularly summoned and fail-
ed to file his plea, the plaintiff, irrespective
of the statue, was, at the time of the entry
of the judgment, entitled, under the rules of
the court, to a judgment by default for want
of such plea, and therefore should it be held
that the judgment could not have been prop-
erly entered under the statute, for the rea-
son here assigned, its entry was proper under
the rule of the drouit court, l>ecause of the
failure of the defendant to file his plea.
The rules of the court below are not be-
fore us, but whatever may be said of the
plaintiff's rights thereunder to a judgment by
default for want of a plea, it is clearly
shown by the record that the judgment was
not entered under such rule of the court, but
was entered under the statute (chapter 631
of the Acts of 1894), as amended by the sub-
sequent acts named above and as we have
sdid was wrongfully entered thereunder.
Holding as we do that the court was in
error in its' refusal to strike out the judg-
ment, its rulings will be reversed and a new
trial awarded so that the judgment wrong-
fully entered may be stricken out hnd an
opportunity given to the defendant to present
his defense upon the merits.
Judgment reversed, and new trial awarded.
CUl UA. SIB)
BOABD OP POUCB CXJM'RS v. McCLENE-
HAN. (Noa. 58 to 67.)
(Court of Appeals of Maryland. Jmie 28, 1917.)
1. Statutes «=>76(2)— Local Laws— Appu-
eabilitt os eixistino laws.
Acts 1914, c. 600, Acts 1906, c. 63, Acta
1900, c. 560, Acts 1908, cc. 92, 192, Acts 1902,
c. 280, Acta 1914, c. 493, Acts 1906, c. 335,
Acts 1914, c 486, Acts 1904, c. 632, and AcU
1916, c. 2l2, directing the board of i)olice com-
missioners of Baltimore to pension a retired
matron of the station house, the widow of a de-
ceased member, and certain ex members of the
police force, are not in conflict with Const, art.
3, i 33, prohibiting the passage of any special
law where provision has been made by existing
law; such pensions not being payable under
the pension laws existing at the tmie the several
acts were enacted.
2. Municipal Cobfobations «=9l87 — Pbn-
SIONS — STATUTKt— DiSCBETION.
Although Acts 1906, c. 63,- authorizing the
police commissioners of Baltimore to pension
a former policeman, was discretionary, and not
mandatory, where the matter bad been acted
upon by the board then in office, subsequ^it
boards could not revoke it.
Appeals from Superior Court of Baltimore
City ; James M. Ambler, Judge.
Ten petitions fon mandamus by E. El Mc-
Clenehan and nine others against the Board
of Police Commissioners. The court ordered
a writ of mandamus to issue in each case,
and the Board appeals. Order affirmed in
each case.
Argued before BOYD, C. J., and BBIS-
COE, BUKKB. THOMAS, PATTISON,
UltNER, STOCKBRID6B, and CONSTA-
BLE, JJ.
Ogle Marbury, Asst. Atty. Gen., and Al-
bert C. Ritchie, Atty. Gen., for appellant.
Isaac Lobe Straus, of Baltimore, for appel-
lees.
BOYD, O. J. Ten cases were by agree-
ment of the parties and with the consent of
tlie court boimd in one record, the main ques-
tions being involved in all of them. Each of
the ten appellees filed a petltlciB for a man-
damus against tjie board of police commis-
sioners of Baltimore dty to req.ulre that
board to obey the provisions and directions
of one or more acts of the General Assembly
of Maryland named in the petition, and to
pay the petitioner the sum named in sucb
act or acts. The main defense relied on in
the answers was that the acts were special
laws prohibited by article 3, i 33, of the
state Constitution, and were therefore un-
constitutional and void. Agreed statements
of facts were filed in the cases, and the low-
er court ordered a writ o£ mandamus to la-
sue in each case, and gave judgment for the
petitioner for costs. Appeals from those sev-
eral orders and judgment are now before us.
(Chapter 459 of the A^ts of 1886, behig sec-
tion 755 pf article 4 of the Local Code of
1888, provided that:
"All sums of money which are now in, or
which may hereafter come into the hands of
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BOAKD OF POIICXi COM'BS v. MoCLENEHAIT
787
the board of polks eommiaaioners for the dtr
of Baltimore, ander and by virtue of the pron-
siona of eziatine laws, except such sums as
may come into tneir hands under and hy virtue
of the provisions of section 728 shall constitute
a fund to be known and accounted for as the
8pe<aal fund."
That is section 776 of the new charter, and
is nnder subtitle "Special ¥Hind." Section
728 (747 Of revised charter of 1915) referred
to money received from taxes, and in case of
a deficiency the board was authorized to Is-
sue certificates and raise therefrom a sum
not exceeding $50,000 to meet the exigency.
The board has large powers, including the
appointment of the police force, detectives,
matrons, eta
SecUon 756 of article 4, being Acts 1886.
c. 458, as amended by Acts 1888, c. 306, pro-
vided that, in addition to the sums of mon-
ey authorized by law to be paid out of the
special fund, the board, whenever in their
opinion the eflSdency of the service required
it, were antborlzed to retire any ofiBcer of
police, policeman, detective, clerk, or turnkey
appointed by them, and pay him out of said
fund, In monthly installments a sum not to
exceed one-third of the amount monthly paid
to him at his retirement, provided he had
served faithfully not less than 16 years, or
shall have been permanently disabled in the
discharge of his duties, and the board was re-
quired to procure and file among their rec-
ords a certificate of a competent and reputa-
ble physician that the person proposed to be
retired had been thoroughly examined by
him and was incapable of. performing active
police duty, etc. That section was amended
by several acts, so that as It is now in the
revised charter of 1915 it provides for pay-
ment of a snm equal to one-half of that
paid at retirement, provided be had served
for not less than 20 years, and some other
changes were made. That section (756) in
the new charter of 1S98 is on a different sub-
ject, and section 777 is the number of the
one relating to retirement of officers of police,
policemen, detectives, clerks, and turnkeys,
but both sections 756 and 777 are in the revis-
ed charter. Section 750 in the revised char-
ter requires those retired to perform such
police duties as the board requires, not to
exceed seven days during any year, for which
service no compensation Is to be paid by the
board. Section 756A (revised charter), added
by Acts 1912, c. 189, authorizes the board to
retire any officer of police, policemen, detec-
tive, clerk, or turnkey appointed by them
who may be ineligible in the way of length
of service to retirement on pay for life as
provided by section 756, and who has served
faithfully and has become permanently In-
capacitated from active duty, and to pay
him out of the special fund a sum not ex-
ceeding one year's salary allowed by law to
him at the time of his retirement, provided a
certificate is obtained from a majority of the
pcUce physicians of Baltimore city that be
has been examined by them and that he Is
incapable of performing active duty.
Section 776 In the revised charter is the
same as section 755 quoted above frcnn article
4 of the Code of 1888. Section 776A (Acts
1900, c. 266) makes the board of police com-
missioners trustees of the special fund. Sec-
tion 776C states in detail what the special
fund shall consist of — amongst other things,
of 2 per cent of the salary or pay of the
police force entitled to participate in the spe-
dal fund. It provide that it shall be op-
tional with any member of the poUce force to
contribute the 2 per cent, but that no mem-
ber shall participate in the special fund un-
less he does so contribute. The confusion
arising from having two sections of the diar-
ter as much alike as 756 and 777 seems to
have begim in 1888. The new charter is
chapter 123 of the acts of that session, and
in that what was section 756 of article 4
In Code of 1888 was made section 777, but
chapter 494 of the Acts of 1888, evidently
drawn before the new charter was passed,
in amending the provision for retirement re-
ferred to it as section 756. Then chapter 233
of Acts of 1900, chapter 81 of Acts of 1902,
chapter 391 of Acts of 1910, and chapter 189
of Acts of 1912 continued to refer to it as
section 756. Then chapter 667 of Acts of
1912, which is the last act signed, referred to
the fact that chapter 391 of Acts of 1910 had
erroneously stated the section to be 756 in
lieu of 777, the correct number intended to be
amended, and repealed and re-enacted as 777.
It would seem therefore to be clear thot sec-
tion 777 as amended by chapter 567 of Acts
of 1912 is now the statute In force on the
subject, and. In so far as there is any Con-
flict between It and what was called section
750 In above statute, section 777 must pre-
vail. It could not have been Intended to have
two such sections in the charter. We need
not therefore trouble ourselves with section
756, although there is not in the main much
difference between them so far as can apply
to this case excepting as to the time of serv-
ice.
Section 777A (being Acts 1906, c. 456) in-
cludes superintendent of matrons and ma-
trons of station houses within the provisions
of section 777, so that they may enjoy the
same rights and privileges and benefits, sub-
ject to the same limitations and conditions,
as those conferred for the retiring of mem-
bers of the police force, provided they pAy
to the special fund 110 per aimum for three
years, in addltlcm to the regular percentage
required "under the special pension act."
Section 777B Included the secretary and as-
sistant secretary of the board within the
provisions of section 777, provided the secre-
tary paid 1300 and the assistant secretary
$150 in three equal Installments to the "^te-
dal fund." Section 777Ba (Acte 1900, c. 263)
directed the mayor, etc., of Baltimore, upon
the request of the board, to appropriate an-
nually a sum of money foe the relief of dls-
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788
101 ATLAJSTIO EEPORTBB
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abled and superannuated members of the
police force, and for the relief of widows
and children of policemen killed in the dls-
diarge of duty, when the special fund was not
sufficient for the payments authorized by the
act of the General Assembly heretofore pass-
ed. Provisions under the subtitle "Special
Fund" are made in sections 776 to 780, in-
clusive, but we will not refer to the others.
Having thus referred to what the appellant
calls general laws on the subject, without
deeming it necessary to enter upon a discus-
sion as to whether they are general or spe-
cial, and for the purposes of these cases as-
suming them to be general, we will now con-
sider the several statutes passed for the
benefit of the appellees.
1. Mrs. B. E. McCIenehan.
[1] The first case In the record Is that of
Mrs. MoCleneban. She was appointed ma-
tron on January 28, 1900, and continued in
that capacity until the 9th day of July,
1912, when she was dismissed by the board,
after an examination of physicians, who
said she had Brlght's disease and rheuma-
tism, without any provision for future pay.
She paid $30, being for the three years as
required by section 777A, and the 2 per
cent of her salary from the year 1906 .(when
matrons were included) until she was dis-
missed. C!hapter 600 of Acts of 1914, after
stating in the preamble that she had con-
tributed to the pension fund and was ob-
liged to retire on account of serious illness,
whereby she had been incapacitated from
work and from earning a livelihood, direct-
ed the board to pay her $7.50 a week dur-
ing her life out of the special fund. She
liad not been in service for 16 years, as re-
quired by section 777. It Is contended by
the appellant that section 7(>6A governs her
case, and leaves it discretionary with the
board, but it would seem clear that that
section does not apply. That was passed in
1912, six years after matrons were given
the privileges of section 777, but expressly
limits the relief to "any officer of poUce,
policeman, detective, clerk or turnkey," and
does not include matrons. There was then
no general law in existence when the act
of 1914 was passed which included Mrs. Mc-
CIenehan.
The question then is whether such an
act was In conflict with artide 3, { 33, of
the CJonstltution. It provides that:
"The General Assembljr shall pass no ^tecial
law for any case for which provision has been
made by an existing general law."
It seems to us clear that the board bad
no power under the "general laws" in the
diarter to pension Mrs. McCIenehan. As
then they were not authorized to allow her
a pension under those laws, It cannot be
said that the constitutional provision above
quoted prohibits the passage of such a stat-
ute as the one passed for her benefit. It
may be that the LegLslature was not willing
to pass a general law allowing the board
to pension matrons who left the service by
reason of ill health, but were not permanent-
ly disabled in the discharge of their duty,
and had not served the time required by
section 777 — ^16 years. Indeed, section 756A
Indicates that it deemed it proper to permit
the board to retire an "officer of police, po-
liceman, detective^ clerk or turnkey" ap-
pointed by them who was ineligible in the
way of length of service to retirement on
pay for life under the requirements of sec-
tion 756, and had served faithfully and had
become permanently incapacitated from ac-
tive duty, but It was not willing to include
matrons, and hence did not provide for
their retirement by reason of sickness. It
did not give them the benefit of the special
fund at aU until 1906.
^Riere are many decisions of this court
which indicate that such a special provi-
sion for a particular person named as is
made by this act does not come within the
prohibition. If there had been no such
statute as section 766 or 777, we can see
no reason why this act could not have been
passed, and if we are correct in the conclu-
sion that neither of those statutes embrac-
ed her case, is it not just as if there was no
such statute? In Pumphrey y. Baltimore,
' 47 Md. 145, 28 Am. Rep. 446, Acts 1876, a
220, required the mayor and city council of
Baltimore to take charge of and maintain as
a public highway a bridge known as "Bar-
man's Bridge." On their refusal to do so
Pumphrey filed a petition for a mandamus
to compel them to do so. Amongst other de-
fenses this provision of the Constitution
was relied on. This court said, through
Chief Judge Bartol:
"In the public local laws relating to Balti-
more city no provision is made for the acquisi-
tion of the bridge in question, and the ascer-
tainment of the amount to be paid to the own-
ers in the manner contemplated and directed
by" former acts referred to.
It was held that the act was constitu-
tional and valid. In O'Brian & Co. t. Coun-
ty Com'rs of Baltimore County, 61 Md. 15,
the Legislature passed a special act in ref-
erence to the opettiag of Wilkens avenue.
The defense was taken that the General
tiaws provided a mode for the opening of
any new road, or the widening, straighten-
ing, altering, or closing up an old road. The
court said:
"As recited in the preamble, there were spe-
cial circumstances in the case of Wilkens ave-
nue requiring special legislation in regard there-
to;' and as the purposes of the act could not
be accomplished under any existing general law,
its enactment was, of course, not within the
prohibition contained in the Constitution (arti-
cle 8. S S3)."
In Hodges v. Bait Pa^sa. By. Co., 68 Md.
603, It was held that as there was no gen-
eral law conferring the rights and prescrib-
ing the terms and oondltious on which Uw
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BOARD OF POIilCE COM'RS y. McOLElTEHAN
789
defendant was to OHistract and operate Its
railway on certain streets In the city of
Baltimore, the act then In question was not
In conflict with this section of the Constitn-
tlon. In Gans v. Carter, 77 Md. 1, 25 AtL
663, it was contended that the powers giv-
en to the Fidelity & Deposit Company to be-
come sole snrety in all xases where two or
more sureties were required, eta, was a
special law, within the meaning of this
section, but this court held that, as there
was no general law providing for corporate
security in such cases, the act was valid.
See, also, Revell v. Annapolis, 81 Md. 1, 31
AU. 695, Baltimore v. United Ry. & E. Co.,
126 Md. 39, 94 Atl. 378, and other cases
where this provision of the Constitution has
been passed on. The cases relied on by the
appellant are clearly distinguishable from
this. la Prince George's County v, B. & O.
R. R. Co., 113 Md. 179, 77 Atl. 433, there
was a general law clearly covering the cross-
ings involved. So in the case of Baltimore
V. Starr Church, 106 Md. 281, 67 AtL 261,
the exemption was Invalid because the stat-
ute was within this provision of the Con-
stitution, and for other reasons.
It Is true that there are a number of sec-
tions in the charter which relate to pen-
sions for policemen and others, but they are
only allowed on certain conditions. If a
worthy person does not come within those
provisions, it cannot be properly said that
an act cannot be passed to provide for his
or her case, any more than it can be suc-
cessfully contended that the great amount
of legislation which has been passed con-
ferring special powers on corporations which
are not granted by the general laws are
invalid. That has been done over and over
again, without a suggestion that they were
not valid. The General Corporation Laws of
3.868 provided that:
"Xo corporation shall possess or exercise any
corporate powers, except such as are conferred
by law, and snch as saall be necessary to the
exercise of the powers so acquired." Article 23,
S 66, ef Code of 1888; article 23, f 64, ot Code
of 1904.,
And it was oftentimes exceedingly doubt-
ful whether a corporation had under the
general laws some special power it desired
to exercise, and hence numerous acts were
passed to confer such powers. Sections 756
and 777 empower, but do not require, the
board to retire those provided for in them.
It would be carrying the meaning of sec-
tion 33 of article 8 of the Constitution very
far to say that by reason of such sections
the Legislature could not pass an act re-
quiring the board to retire on pay a certain
person or persons which the Legislature
thought should be retired. The Legislature
never intended to abandon all control over
the board in snch matters, as Is shown by
the many statutes on the subject. Of course,
when there Is a general statute covering the
particular case^ another question may arise,
but we are satisfied that there is no dlffioil-
ty in this case.
2. William r. Oerwlg.
The next case la that of WlUiam F. Ger-
wig. Ho was appointed on the police force
October 21, 1899, and appointed a regular
patrolman December 7, 1900. In January,
1904, whilst in the discharge of his duty, he
sustained a fall, striking his spine on bis
revolver In his hip pocket On September
6, 1904, he was dropped from the police
force because of his Injury and disability.
It appeared to the board then in office that
the incapacity was produced by spinal trou-
ble of long standing, and not from an in-
Jury occurring in the performance of his
duty. By Acts 1906, c. 63, It was provided:
"That if the police commissioners of Balti-
more city, after a careful examination, are sat-
isfied it is proper, they are hereby authorized
and empowered to pay Mr. WiUiam Frederick
Gerwig, a former policeman of the police force
of Baltimore city, out of the funds in their pos-
session or subject to their control, a weekly
pension of nine dollars ($9.00), payable on the
last day of each week."
It Is agreed that from and after the pas-
sage of that act the board regularly and
continuously paid to him the sum of |9 a
week until he received the letter of the sec-
retary of the board dated September 8, 1916,
notifying him that the board considered the
act unconstitutional, and therefore would
make no further payments to him. It is
clear that there was no general law which
covered his case.
[2] It is contended, however, that the act
itself was not mandatory, but was in the
discretion of the board. While that Is cor-
rect, the board did exercise its discretion,
presumably after careful examination as the
act provides. There Is nothing In the act
to indicate that the intention of the Legisla-
ture was to leave It to the discretion of
each board from time to time, but, having
been acted on by the board then in office,
It was not longer in the power of subse-
quent boards to revoke it, merely as an ex-
ercise of their discretion. If that were so
In reference to what we speak of as the
"special acts," it would likewise be so under
section 777 and section 756, if that is still
of any force. They leave It to the determi-
nation of the board in the first place, "when-
ever, In their opinion the efficiency of the
service may require It, to retire any oflicer
<rf police, policeman," etc., and they state
the grounds upon which they may suspend
payment or dismiss the party. It seems
clear to us that It was left to the existing
board, and was not intended to leave it to
the discretion of each succeeding board as
to whether the pay should be continued.
Moreover, the action of the bo&rd, as shown
by the letter of the secretary, was upon
the ground that the act was unconstitution-
al, and' it was not pretended that It waa
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101 ATIiANTIO BBPOBTBB
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done nnder a dalm of dlscretltMi In the
board.
3. Manno A. Behrens.
Behrens was appointed a patrolman up-
on the police force in 1879. It is admitted
that he would have testified "that upon the
21st day of August, 1899, the petitioner was
virtually dismissed for partisan political
reasons • • • without any provision for
a pension or any other allowance." By
chapter 560 of the Acts of 1000 the board
was authorized and directed to pay pensions
to the three persons named (including Behr-
ens) "who were permanently disabled in the
discharge of tbelr duty as such policemen"
out of the funds in their hands known and
accounted for as the "special fund" the sum
of $0 during the term of their respective
lives. Then by Acts 1916, ch. 212, the board
was directed to pay Behrens for the rest
of bis life out of the "special fund" a wedc-
ly pension equal to one-half of the weekly
pay of a regular patrolman. In lieu of any
pension now being paid blm under any law
theretofore enacted. The board having dis-
missed the petitioner, be was not a member
of the force, and hence the board could not
place him on the pension list. He had serv-
ed 20 years, faithfully as be claims, and
was dismissed for "partisan political rea-
sons," as shown by the agreed statement.
There was no general law In force author-
izing his reinstatement, and the Acts of
1900 and 1916 cannot tlierefore be said to
be contrary to article 3, { 33, of the Constitu-
tion.
4. George A. Grimes.
Grimes was a police officer from April 14,
1884, until November 11, 1906, when be was
dismissed for being off his post and in an
eating saloon for ten minutes. He had regu-
larly paid the 2 per cent, of the salary re-
ceived by him. By Acts 1908, ch. 192, the
board was directed to pay him a weekly
I>ension of $9. That was paid until Sei>-
tember, 1916, when he received the notice
from the secretary that it would not lon-
ger be paid. There was no general law cov-
ering bils case.
5. Edward F. Meehan.
He was appointed a patrolman In 1881,
sergeant In 1886, and in January, 1896, a
round sergeant On July 12, 1897, he was
dismissed by the board without any provi-
sion for pension. It was contended by him
that he was innocent of the charges and was
dismissed for partisan political reasons. By
Acts 1908, <^. 92, the board was directed
ta pay him $12 per week for life. It paid
him regularly until September, 1916, when
he was notified by the secretary that it
would no longer be paid. We are informed
Sy the appellees' brief that he has died since
the decision below, ai)d of coarse his rep-
resentative will only be entitled to the
amount due from the time the payments
ceased until bis death. No proceedings were
taken to make his personal representative a
party to this case, but we assume that will
not be required by the appellant
6. Louis V. Pair.
He went on the police force June 1, 1888,
and was employed as a driver of a patnri
wagon. In July, 1890, he was run over by
the patrol wag(« and Seriously injured. He
suffered, but continued to work from time
to time until finally he became In such con-
dition that he resigned. The board accept-
ed his resignation on May 10, 1898, without
providing for any compensation. By Acts
1902, ch. 280, the board was authorised in
their discretion to pay him $9 per week, and
by Acta 1914, ch. 493, they were directed to
pay him $10 per week. It Is alleged that
the first act was discretionary. That is
true, but the board regularly paid him, un-
til September, 1916, and what we have said
above is sufficient as to that Indeed, be-
fore he applied for the first act he notified
the board of his intention to do so, and the
secretary replied that the board had made
inquiry as to his injuries and believed his
was a worthy case and would do nothing to
oppose legislation to put blm on the retired
list with pay. Apparently they only wanted
the power which they thought they did not
have.
7. Louis F. Norrls.
He was appointed a patrolman August 25,
1875, and he continued in service until Feb-
ruary 2, 1887, when he was dismissed for
being found asleep in a chair at 3:10 a. m.
In a hotel upon his beat On January 10.
18S6, he fell on the Ice while patroUng his
beat and dislocated his left arm at the el-
bow, since which time he was crippled. He
was Included in chapter (560 of the Act of
1900, referred to In the case of Manno A.
Behrens. After that act be was regularly
paid $9 a week until September, 1916. Hav-
ing been dismissed, there was no provlaloa
in the General Laws for reinstating him, ao
as to get the benefit of the pension, and he
had not served the regular time.
8. Kate Spitcnasle.
She is the widow of Charles Spltznagle,
who was appointed on the police force on
January 1, 1893. He died suddenly Decem-
ber 25, 1906, after a long chase of a viola-
tor of the law, made in the performance of
bis duties, either from a strtrice of paral-
ysis or heart failure, as a result of the
diase and arrest of the party. The records
of the police board show that he died of
paralysis. The petitioner did not make a
formal request for an allowance, but Acts
1906, c. 335, authorized the board, In th^r
discretion, to pay her $9 per week during
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SUSQUEHANNA TKANSMISSION CO. OP KARTI/AND r. MUBPHT
791
ber life. That was paid her regularly until
September, 1918. The only general law
which could be claimed to cover her case
Is section 776D. That gives the board power
In its discretion to pay to the widow of a
member of the police force who was killed
while In the actual performance of duty, or
who died in consequence of injuries rec^v-
ed while in the discharge of duty, an al-
lowance until she remarried. It is not nec-
essary to determine whether it could be
said that Mr. Spltznagle's death came with-
in the intention and meaning of either of
those grounds. It might well be questioned
whether It did, but the board paid the
amount named In the act regularly from
the time of its passage, and does not ob-
ject to the amount now, so far as the rec-
ord discloses, but relies on the constitution-
al objection referred to in the other cases.
Nor Is It necessary to consider whether the
fact that the special act provides for paying
during her life, and section 776B only until
she remarries. She is still unmarried, so far
as the record shows. The board in a worthy
case should not be supposed to rely on
purely technical reasons for granting or re-
fusing such allowances. The object of the
provision Is to make the service more effl-
deut, and if it be admitted that the board
bad the discretion to allow a pension under
section 776U, and as the record shows the
board did on April 23, l&Od, grant her an
allowance of $9 a week, it may well be said
that it did 80, acting within its discretion,
and, of course, if that section does not ap-
ply, there can be no valid objection to the
act of 1906, from what we have already
said.
9. Peter J. Patterson.
He served from September 12, 1S96, to
the 19th of February, 1913, when he was
dismissed on the charge of having entered
a saloon on other titan police business, and
remaining there 12 minutes, and while there
drinking intoxicating liquor. He denies
that be drank intoxicating liquor, but he was
dismissed without an allowance or pension.
He paid thei 2 per cent, regularly whUe he
was in service. By Acts 1914, di. 48t>, the
board was directed to pay him a weekly
pension of $11 per week, which was regu-
larly paid until September, 1916. There was
no general law covering his case, and what
we have said in the other cases is sufficient
to indicate our views.
' 10. Joseph J, Gilbert
He was appcrinted as a patrolman Janu-
ary 27, 1881, as sergeant August 5, 1884, round
.sergeant April 19, 1894, lieutenant Jnnuary
13, 1896, and on January 14, 1896, was ap-
pointed captain. He was dismissed as he
<;laims. for partisan' political reasons, on
.Tuly 12, 1897, without ' any provision for
pension. By Acts 1904, c. 632, the board
was authorized to allow him a weekly pen-
sion of $16. That was paid regularly until
September, 1916. We And no provision for
allowing pensions when the board dismiss-
es, and hence there was no general law ap-
plicable.
We have thus gone at some length into
these ten cases, and, as we have above point-
ed out, we do not find any "general law"
which can properly be said to interfere with
the "special acts" referred to. We have
already explained that we did not deem it
necessary to discuss the point raised by the
appellees that these acts codified in the
Local Code on this subject are not "general
laws" within the meaning of article S, ! 33,
because, if they are admitted to be so, we
find none of what we have spoken of as
"special acts" coming within the prohibition
of that section of the Constitution.
We are not called upon to speak of the
wisdom of the I/egislature in passing such
acts, although some of them would seem to
be peculiarly meritorious and Just The par-
ties had paid regularly Into the special fund,
which was intended. for pensions and some
other purposes. From the. view we take
of the article of the Constitution relied on
by the appellant it becomes unnecessary to
discuss any of the other questions raised.
We vrtll affirm all of the orders passed, in
eluding the Meehan Case, as we have no
record of his death of which we can take
notice, and we assume that that will be ad-
Justed without making his representative
a party. If necessary, of course, that can be
done.
Order affirmed in eadt of the ten cases:
the app^ant to pay the costs. .
' (181 Md. »40)
SUSQUEHANNA TRANSMISSION CO. OP
MARYLAND v. MURPHY et al.
(No. 71.)
(Court of Appeals of Maryland. June 28, 1917.)
1. Appeal ktud Ebbob #=983&— Review —
Limitations.
The power of this court is limited to an ex-
amination of the record and a decision upon the
question whether the court committed any in-
jurious error of law in any of the rulings to
which defendant reserved exceptions.
2. Neoliobncb 9s>121(5) — Oohcubbxnob
WITH Injury.
Where negligence is the basis of the action,
it is essential that plaintiff show that the neg-
ligence alleged and the Injuries suffered concor-
i«d.
3. Tbial 4s»134— Questions fob Jubt.
It is the exclusive province of the jury to
decide questions of fact
4. Blectbicity ^=9l9(6)— Dahaob tbou Fikb
— PBOxntATB Cause — Eviobrck — Sum-
CIENCY.
In an action against defendant electric pow-
er corporation for damages, held. Under evidence,
that questions of its negligence in burning on
right of way and whether fire was the proximate
cause of the burning of plaintiff's timber and
fencing were for jury.
■II — ■"'"'• otber cases am same topic and KEY-NUMBS<ft in all Key-Number«d Digests and Indezjb
Digitized by VjOOQ IC
792
101 ATLAMTIO BEPORTBB
(Hd.
6. Apfeai. AifD Ebbob ^=9971^— Evidekob
«=>546— Qualification' of Expebts— Rb-
VIBW.
The amount of luiowIeciRe a witneaa must
possess before he can be allowed to testify as
an expert is largely for the trial court, ana its
rulings will not be disturbed unless clearly er-
roneous.
6. E>TIDENCB ^=3643(3)— BXPERTfr-QlTAUnOA'
TIONS.
Parties who had been engaged in the timber
business for about three years and were fa-
miliar with the prices of timber were competent
to testify to the value of the timber before and
after the fire.
7. Appeai. and Bbbob «s>1026 — Habmlebs
Ebrob.
Errors which are without injury will not
justify a reversal on appeaL
Appeal from (Xrcult Court, Baltimore Coun-
ty; Hon. Frank I. Duncan, Judge.
"To be officially r^wrted."
Action by ThomaB F. Murphy and another
against the Susquehanna Transmission Com-
pany of Maryland. Judgment for plaintiffs,
and defendant appeals. Affirmed, with costs.
Argued toefore BOYD, C. J., and BUBICE,
THOMAS, PATTISON, DRNEE, and STOCK-
BBIDGE, JJ.
T. Scott Otfutt, of Towson, for appellant.
Elmer J. Cook, of Towson, and Thomas H.
Robinson, of Bel Air, for appellees.
BUBKB, J. This is an appeal by the de-
fendant below from a Judgment of |500 en-
tered against It In the circuit court for Balti-
more county. The defendant is a corpora-
tion, and owns a right of way about 100 feet
wide through Harford and Baltimore coun-
ties to the city of Baltimore. Upon this right
of way are erected towers to which wires
and other mechanical devices are attached,
and used, f<»^ the tranamlaslon of electric
power generated by a power plant located at
McCall's Ferry in the state of Pennsylvania.
The plaintiffs are the owners of land sitaated
In Harford county at a distance of about
2,000 feet from the defendant's right of way.
Upon this land was a tract of timber In-
closed by a fence. Between their property
and the defendant's right of way, at the
location spokrai of in the testimony, there
is located the land of Mrs. Streett and Albert
Berry, which land adjoins the plaintiffs'
property. Then Intervenes some land, which
at the time of the Injury complained of was
occupied by a man named Ayres. A part of
this land, adjoining that of Streett and Ber-
ry, was planted in corn, and the balance, cov-
ered with grass and weeds, was contiguous
to what Is spoken of by the witnesses as
Campbell's and Slade's woods. These woods
lay along and near the defendant's right of
way. In Slade's woods there was a pile of
rails between 300 and 400 In number and
some posts which belonged to a man uamed
Harmon. The evidence shows that Slade's
woods was very much elevated above the
plaintiffs' land.
The declaration alleged:
"That on or obout the 2d day of May, in the
year 1914 the servants, acents, and employes
of the defendant neKligently set fire to dried
grass and weeds and bushes that were negli-
gently suffered by the defendant- to be and re-
main on its said right of way, for the purpose
of burning the same, at a time when a nigh
wind was blowing, and that the fire so negli-
gently started on said right of way was thence
communicated to the plaintiffs' timber and fenc-
ing, whereby and in consequence thereof a large
part of said timber was burnt and injured."
The defendant pleaded the general iasae
pleas, and the case was tried before the
court and a Jury upon the issues Joined apon
these pleas.
[1] During the progress of the trial the
defendant reserved 23 exceptions. Nineteen
of these were taken to the rulings of the
court upon questions of evidence, one to the
rulings on the prayers, and three to certain
statements made by the counsel for the plain-
tiffs in their arguments before the Jury. A
motion for a new trial was made by the de-
fendant, which the court denied, and whilst
the counsel for the defendant complains that
the verdict was grossly excessive, he concedes
that this court has no power to grant him
relief on that ground. Our power la limited
to an examination of the record and a de-
dsioa upon the question as to whether the
court below committed any Injarlous error
of law In any of Its rulings. Before consid-
ering the exceptions, it may be well to state
some matters about whldi there does not ai>-
pear to be any dispute. It Is shown that the
plaintiffs were the owners of the property
mentioned in the declaration, and that on May
2, 1914, a fire broke out in the plaintiffs'
woods, burned ovw about 6 acres of their
land. Injured the timber thereon, and de-
stroyed a large portion of the fencing which
inclosed the tract It is also shown that
about noon on that day James G. Parker, the
line superintendent of the defendant, directed
Caesar Hawkins and Walter Winder, two
men in the employ of the defendant and
over whom Parker had authority, to gather
Into piles and bum certain debris which was
laying upon the right of way of the defend-
ant and near to Campbell's and Slade's
woods. These m«i gathered np the d£bris
into piles, about 3 feet high and 6 feet wide
and about 5 feet apart, along -the right of
way and set them on fire. The fire from
these burning piles was communicated first
to Campb^'s and then to Slade's woods, and
it destroyed the rails of Harmon, to whlcb
we have referred, and for which loss the de-
fendant compensated him.
The dismited qaeetlona of fkict were:
First, as to the character of the timber on
the plaintiffs' land, the extent of the lojnry
to the timber, and Its value before and after
the fire ; and, secondly, the extent of the Ore
in Slade's woods, the direction and velocity
of the wind at the time of the fire; and,
thirdly, a question of law, raised by the de-
4(S3For other cuw ■•• ume tootc and KEY-NUMBER in »Xl Ke7-Numbv«d I>lge«U and ladexet
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SUSQUBHANKA TRANSMISSION OO. OF MARTLAND y. MURPHT
793
fendant's first, second, and third prayers,
wblcb songht to wltbdratr the case from the
Jury, as to whether there was any testimony
offered legally sufficient to show any negli-
gence on the part of the defendant, or any
legal connection between the fire started on
the defendant's right of way and the injury
suflTered by the plaintiffs.
[2] As negligence Is the basis of the action,
it was essential for the plaintiffs to offer ev-
idence legally sufficient to show the negli-
gence alleged, and that the injuries sued for
bore the relation of cause and effect. The
concurrence of both and the nexus between
them must be shown to exist to constitute
a right to recover. Benedict v. Potts, 88 Md.
65, 40 AU. 1067, 41 L. R. A. 47a
[S] It is not the province of this cdtirt to
decide any question of fact That was the
exclusive province of the Jury. Eight wit-
nesses were called on behalf of the plain-
tiffs, viz.: W. Elijah SomervlUe, a surveyor,
Thomas F. Murphy, James G. Parker, Cor-
nelius F. Murphy, Albert Berry, Albert Ber-
ry, Jr., Edward I* Oldfleld, and Benjamin
Garber.
A brief synopsis of the material portions
of the evidence of these witnesses bearing up-
on the questions presented by this appeal is
here given:
Mr. SomervlUe- made a plat of the location
of the transmission line with reference to the
property of the plaintiffs, and made measure-
ments of the distance from the transmission
line to the Murphy property and of the tract
burned. He said the fire extended over a
little more than 6% acres of the timber land,
and that the distance from Slade's woods to
the Berry and Streett land, which as we
have said, adjoined the Murphy land, was
1,968 feet, and that the distance from the
Slade land where this line of 1,968 feet was
measured to the defendant's right of way
was probably about 12S feet He testified
that the land slopes towards the Streett
property, and that at about the center of the
Slade land the elevation is from 60 to 75
feet above the Streett tract
Thomas F. Murphy testified: That lie
first noticed the fire about 2 o'clock p. m.
That It was "a terrible windy day."
"The wind sounded like a train of cars. It
was blowing from the west" That the fire
burned more than 6 acres of his woodland.
That he saw the smoke coming from the
Slade woods — coming from the west, direct
to Ids property. That the fence on the Berry
and Streett lines was; entirely destroyed.
That the timber on Ids tract was principally
oak, white oak, and the very best of chest-
nut ; thickly wooded, a splendid piece of tim-
ber. That the fire continued in his woods
until 6 o'clock, and killed the timber and the
young growth. That the timber was large
and marketable. He testified:
That he owned about 400 acres of land in that
neighborhood, and had been engaged in fanning
for a nnmber of years, and that he had had ex-
perience in buying and selling timber and timb^
land for over two years. "In Harford connty
we bought 200 acres in the northern part of the
county near what is known as Carea, and we
bought S5 acres near the Rocks recently, and
we have been buying telegraph poles in all the
northern part of the country. He had been in
the timber business a little over three years.
Prior to that he had bought several pieces of
land for himself with timber on it That he
made his own estimate of the lumber on a tract
They bought the timber for marketing it, cut-
ting it into different things, railroad cross-ties,
crossing planks, telegraph poles, bridge timber,
wagon wood, whatever we can market it in best
They furnish the county with considerable bridge
timber. In making the purchases of timber they
bought just the timber; the wood leave we call
it He inspected it lielore he bought it"
He further said he knew of sales of wood-
land in that vicinity. That be knew of sales
there. That he had bought the timber on the
Wright property, which was about 8 mUes
from his own. That he was familiar with
the prices 'of timber, and that he had been
engaged in the timber business for the last
two or three years. That the day of the fire
was a windy day and very dry, and had been
dry for several days.
James G. Parker, the line superintendent
was called by the plaintiffs, and testified
that he ordered the men, Hawkins and Wind-
er, to burn the d6tois, but was not present
when the fire started in the Campbell and
Slade woods; that he gave the order about
11 or 11:30 a. m., and that at that time he
said the wind was blowing from the north-
east.
Cornelius F. Murphy testified that he re-
called the fire which occurred on May 2,
1914. He first noticed it about 1:30 or 2
o'clock; that it was a clear day, but very
windy. The wind was blowing at a high
gale. It was blowing a gale from Slade's
woods to the plaintiffs' woods. He could see
the smoke. The Slade land was higher than
his own. His evidence as to the kind and
character, quantity, and marketability of the
timber on the tract burned was corroborative
of Thomas F. Muiphy. He said be had been
engaged in the timber business; that he
bought tracts, cut off the timber, operated a
sawmill, and sold the lumber; that he had
bought timber rights in the upper section of
Harford county, and that the effect of the
fire on the timber in question was to destioy
it ; that it killed the treea
Albert Berry said he was at his home
when he first saw the fire between 1 and
2 o'clock; that it was a very windy day;
that he saw an "awful smoke" in the comer
of the Slade prc^orty; that the wind was
blowing directly from Slade's woods, and
that there was a fire in that woods ; that the
fire was burning on the street property,
which was much lower than the Slade woods,
and spread to the Murphy tract; that it
burned fencing on his and the Murphy tract,
and spread Into the Murphy land.
Albert Berry, Jr., said he saw the fire lu
Slade's woods between 12:30 and 1 o^clock.
and testified that:
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794
101 ATIxAJITIC BBPORl'KR
(Md.
"That is tlie woods np by the Susquehanna
Transmission line. He saw the fire burning
there; saw the blaze. He' supposed he was
about a couple of hundred feet from his father's
house. There was then a very high gale of
northwestern wind blowing. It was a clear day.
The wind was blowing from the west. He saw
a fire when it went in Mr. Streett's woods. He
did not suppose it was any more than a half
hour after he saw the fire in Slade's woods
that he saw fire in Streett's woods. He was
eating his dinner. When b« saw it in Mr.
Slade's woods he went in to eat his dinner.
When he saw it in Mr. Streett's woods bis father
called his attention, and he went to help put
it out When he got down there the fire was
burning in Mrs. Streett's woods. He stayed
there until it was completed about 6 o'clock.
The fire got over to his father's land sometime
later after they tried to pot it out in Mr. Mur-
ghy's tract. When he went down on Mr.
treett's property the wind was blowing again
westward. The Streett property and his prop-
erty and the Murphy property is considerable
sight lower than Slade's."
Mr. Oldfleld saw the timber bef6re and In
February after the fire. The general effect
of Ms evidence was that before the Are it
was a fine piece of timber, and that It had
been seriously Injured by the fire.
Benjamin Oarber testified: That he saw
the fire between 1 and 2 o'clock. That there
was a "terrible smoke" coming down the hol-
low, and that he went over to Murphy's and
found the whole woods on flre. That the
smoke was coming down over Slade's woods
towards Murphy's woods. It was a dry day
and the wind was blowing very bard, and he
never saw it blow much harder than It did
that day. That It was blowing direct from
the west, and It was blowing smoke over Mr.
Ayres' field down over the Murphy woods.
Testimony on the part of the defendant
was offered tending to show that the plain-
tiffs' Injury was much less than they testi-
fied to; that they had misstated the charac-
ter and value of the timber; that the fire
could not have been caused by any act of the
defendant becaufie the wind was moderate
and was not blowing In the direction of the
Murphy tract ; and because there was no evi-
dence of fire or burning of the dried grass or
weeds In that part of the Intervening field,
above mentioned, which was In the posses-
sion of Ayres, who, however, when called as
a witness for the defendant, testified that the
flre had burned the fencing between him and
Albert Berry. Berry's land was located be-
yond this Intervening field and adjoined the
land of Murphy.
We now pass to the consideration of the
legal questions presented by the rulings on
prayers. The only error which it Is claim-
ed the court made In this respect was In re-
jecting the defendant's first, second, and
third prayers, which asserted that there was
no legally sufficient evidence offered to enti-
tle the plaintiffs to recover, and In overrul-
ing the special excepticm filed to the plain-
tiffs' first prayer, which declared that there
was no legally sufficient evidence In the case
to support the following hypothesis of the
prayer, to wit:
"That the fire started bcf th« defendant on its
right of way was communicated from the wood-
land of one Slade, referred to in said prayer, to
the woodland of one Streett, referred to in said
prayer."
[4] By these prayers and under the special
exception the court was asked to declare, as
a matter of law, first, that the defendant
was not guilty of negligence in starting the
fires on Its right of way under the circum-
stances stated In the evidence ; and, second-
ly, that said fires were not the proximate
cause of the Injury sued for. Both of these
questions are ordinarily questions to be pass-
ed on by the jury under the facts and circum-
stances of the particular case, and assuming,
as we must, the plaintiffs' evidence a^ to the
weather conditions and especially as to tbe
velocity of the wind to be true, there can be
no doubt of the defendant's negligence. Du-
ties and responsibilities arise out of existing
facts and conditions, and no reasonably pru-
dent and cautious man would bave Bred the
piles of debris under tbe conditions described
by the evidence offered on behalf of the
plaintiffs. The true rule of liabiUty is stated
in Miller v. Neale, 137 Wis. 426, 119 N. W.
W, 129 Am. St Bjep. 1077, as follows:
"A man mav lawfully bum rubbish or bmdi
upon his own land, if he exercises that prudenc«
in tbe starting of the fire and the management
of it after it is started which the rules of ordi-
nary care demand. He is using a dangerous
agent, and when there is much inflammable ma-
terial on the ground, and the wind is strong in
tbe direction of his neighbor's lands, he may
well be charged with negligence if be sets a
fire, or if, having set it, he does not exerdaa
that care to keep it under ctmtrol which <vdi-
nary prudence dictates."
This rale la In accord with practically the
unanimous decisions upon the subject, among
which are Black v. Christ Church Finance
Co., App. Cas. [1894] 48; McVay v. Central
California Invest Co., 6 Cal. App. 184, 91
Pac. 745; Richard ▼. Schleusener, 41 Minn.
49, 42 N. W. 689.
The question whether the injury suffered
by tbe plaintiffs was the natural and prox-
imate cause of the fires set by the defend-
ant was properly submitted to Uie jury. The
general principles upon this subject were
stated In State, use of Scott v. W. B. & A.
Electric R. R. Co., 101 Atl. 546, and need not
be here restated. In the recent case of tbe
Western Md. R. R. Co. v. Jacqnes, 129 Md.
400, 99 Aa 549, we said:
"The rule long in force is that where fire has
not been directly communicated to the plaintiff's
property by sparks, or other burning matter
from the engine, but baa been communicated
across other property, the questioa to be sab-
mitted to the jury, to determine from all the
facts, is whether the injury complained of is the
natural consequence of the defendant's negli-
gence, or whether it has been caused by some
intervening cause. The record shows that thia
question was properly submitted. A. & E. It.
R. Co. V. Gantt, 39 Md. 115; P. W. * B. B. Bt,
V. Constable, 39 Md. 149; Qreen Ridge R K.
V. Brinkman, 64 Md. 52 [20 Atl. 1024, 64 Anx.
Rep. 755]; Carter v. Md. & Pa. R. R., 112
Mi 689 177 Atl. 301]."
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OLARK ▼. BOSTON <tr K. R. B.
795
Ab to tbe twentr-flrst, twenty-second, and
twenty-third bills of exceptions, which were
taken to the statements made by the connsel
In argument, we find nothing sufficient to
cause a reversal after a careful examination
■of the record, and of the principles by which
tbe courts are guided in passing upon sudi
-objections. We said In Esterllne ▼. State,
106 Md. 629, 60 Aa 26»:
"It is the duty of counsel to confine himself
in argament to the facts in evidence, and he
should not be permitted by the court, over prop-
er objection, to state and conuueiit upon facts
not in evidence, or to state what be could have
proven. Persistence in this course of conduct
may furnish good grounds for a new trial. The
conduct of the trial must of necessity rest large-
ly in the control and discretion of the presiding
judge, and the appellate court should in no case
interfere with the judgment, unless there be an
abuse of discretion by the trial judge of a char-
acter likely to have injured ue complaining
party. • * • The observations of Mr. Jus-
tice Brown npon this subject in Dunlop v. Unit-
ed States, 165 U. S. 488 [17 Sup. Ct. 875,
41 Xj. Ed. 799] may well be applied to tbe facte
embraced in this exception: 'There is no doubt
that in the heat of argument, counsel do occa-
sionally make remarks that are not justified by
the testimony and which are or may be prejudi-
cial to the accused. In such cases, however, if
the court interfere, and counsel promptly with-
draw the remark, the error will generally be
deemed to be cured. If every remark made by
counsel outside of the testimony were ground for
a reversal, comparatively few verdicts would
stand, since in the ardor of advocacy, and in the
excitement of trial, even the most experienced
counsel are occasionaUy carried away by this
temptation.' "
[S,6] There remains for consideration the
10 bills of exceptions taken to mlings on evi-
dence. Tbe only really Important ones are
tbe second, third, eighth, ninth, and tenth,
which relate to tbe qoallflcations of Thomas
F. Mnrphy and Cornelius F. Murphy, to
speak as to the value of the timber before
and after the fire with a view of establishing
the damages. Belt K. R. Co. T. Sattler, 100
Md. 33.3, 59 Atl. C54 ; Western Md. R. R. Co.
T. Jacques, supra. In Chateaugay Ore 4
Iron Co. V. Blake, 1« U. S. 476, 12 Sup. Ct
731, 36 L. Kd. 510. the court said that how
much knowledge a witness must possess be-
fore he can be allowed to give his opinion as
an expert must In tbe nature of things be
left largely' to the trial court, and Its rulings
will not be disturbed unless clearly erro-
neous. We think these witnesses were qual-
ified to speak upon the subject of value.
[71 There was technical error In some of
the rulings embraced In some of tbe other
exceptions, but some of the evidence admitted
was of no Imxmrtance, and as to the other
rulings the record shows that substantially
the same evidence was admitted without ob-
jection eUhet before or after the rulings.
There must be a concurrence of error and
Injury, and after a careful examination of
tbe whole record we find no error which
would Justify us in reversing the Judgment.
Judgment afiirmed, with costa
(78 N. B. 428)
CLARK y. BOSTFON & M. R. B.
(Supreme Court of New Hampshire. Merri-
mack. June 5, 1917.)
1. Railroads €=>470 — Liabiutt fob Inju-
BiEs Caused by Fibe— Statute.
Pub. St. 1901, c. 159, § 29, making a rail-
road liable for damages to person or property
from fires set by its locomotives, has no applica-
tion _ to the case of a fireman, employed by a
municipality to extinguish fires, and injured in
attempting to extinguish a fire set by a railroad's
locomotive; the act applying only to those so
situated that as to them the operati<» of the
road constitutes an extra fire hazard.
2. Railboads ®=3470— Settino Fibb— Liabu,-
ITT to Fibeuan.
A railroad, apart from the contract of em-
ployment of a municipality's fireman, stood in
no legal relations, however remote, to such fire-
man, and owed no duty toward him to refrain
from setting a fire.
3. Action «=>4— Intbinoeiobnt or Codk or
MOBALS.
Courts cannot give relief in damages for a
mere infraction of a code of morals.
4. Railboadb ®==470— Settino Fibb— Liabii,-
rrr fob Injubies to Fibeman.
A railroad was not liable for injuries to i
fireman employed by a municipality because ol
bis public employment while endeavoring to ex-
tinguish a fire set by its locomotive; there be
ing no breach of any duty owed the fireman b)
the road.
Transferred from Superior Court, Merri-
mack County; Sawyer, Judge.
Action by Clarence h. Clark against th*
Boston & Maine Railroad. On transfer from
the superior court on defendant's demurrer.
Demurrer sustained.
Case for injuries alleged to have been
caused to the plalntift by a fire set by ttus
defendant's locomotive. There Is a general
count for negligence and one setting out that
the plalntift was a member of the Concord
fire department and received his Injuries
while acting In that capacity attempting to
extinguish the fire. A specification filed later
shows that the first count Is for the same al-
leged wrong. There Is also a count alleging
a right of recovery under the statute Impos-
ing liability upon railroads for damages caus-
ed by fires set by locomotives.
Robert W. Upton, of Concord, for plaintiff.
Streeter, Demond, Woodworth & Sulloway,
and Jonathan Piper, all of Concord, for de-
fendant
PEASIiEG, J. The declaration, and the
specification of facts applicable to tbe first
count, show that the plaintlfTs claim rests
upon the theory that a fireman employed, by
a municipality to extinguish fires may recov-
er from the party whose act caused the fire.
It is not necessary to consider whether a re-
covery might be had if the fire had been de-
signedly set, with tbe Intent to Injure the
plaintifT, for his claim is based upon the statu-
tory liability of railroads, or upon negligence.
[1] The statute making a railroad liable
^tBtPot other cases M« «am« topic and KBT-KUUBBR la all Key-Nnmbtrid Digests and ladszai
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101 ATLANTIC REPOBTEiB
(N.H.
tor damage to person or property from Area
set by Its locomotives (P. S. c. 159, ! 29) bas
no application to the present case. That act
applies only to those so situated that as to
them the operation of the railroad constitutes
an extra fire hazard. If the act is broad
enough in its terms so that it oould have
heea construed to include all damage that
oould In any sense be deemed to be "caused"
by the defendant It is settled that such was
not the legislative intent Welch v. Railroad,
68 N. H. 206, 44 Atl. 304, is conclusive on
this Issue. If the statute covered the present
case the plaintiff in that case would have re-
covered. The loss there was caused by a fire
set by the defendant; but because the plain-
tUTs pri(H>erty was in the costody of the de-
fendant as a bailee, it was held not to be
within the class contemplated by the Legis-
lature. While this conclusion rests in part
ui>on the language of the act giving the rail-
road "an Insurable interest In aU property
situate on the line of such road, expossed to
such damage" (O. L. c 162, { 9 ; P. S. c. 159,
I 30), the reasoning is not inappUcaUe In
determining the meaning of the related pro-
vision as to "damages to any person." The
declaration of liability is in no way differen-
tiated. There was occasion to express the
understood limitation as to one class, and it
Is not to be presumed that the unexpressed
Intent was different as to the other class.
The statute applies to persona and property
exposed to damage along the line of the road.
It doea not apply to firemen or fire engines
whose exposure results from an attempt to
extinguish the fire. As the statute has no ap-
plication, the rights of the partite are deter-
mined by the common-law rules governing
actions to recover for negligence.
Authorities holding that a volunteer res-
cuer of persons or property may recover
from a third person whose negligence caused
the situation inducing the volunteer to act are
relied upon by the plaintiff. It is also con-
tended that his contract of employment as a
city fireman gives him a standing more favor-
able to him than that of the volunteer.
[2] l%e case has been largely argued upon
the issue of proximate cause, in furtherance
of the first of these claims. Bat that question
docs not arise unless tbo defendant's act bore
some legal relation to ouch a volunteer. The
question here Is not one of proximate or re-
mote cause, but whether the defendant owed
any duty at all to the plaintiff — ^whether,
apart from his contract of employment it
stood in any legal relationship to him, how-
ever r«note. It seems to us that it did not
Neither the plaintiff nor bis property was In
a position to be injured by a fire set by the
defendant His connection with the fire arose
solely from his own act in coming Into con-
tact with It after it was set
It is the law of this state that as to such,
interveners the defendant who created the
situation owed no anticipatory duty. McGiU
T. Granite Co., 70 N. H. 126, 46 Afl. 684, 85
Am. St. Rep. 618. The situatioa is much like
that of the land owner and a licensee. So
long as no intentional injury is done, and no
negligent act after the licensee is present
there Is no liability. Hobbs v. Company, 75
N. H. 73, 70 Aa 1082, 18 L. R. A. (N. S.) 039.
The cases from other Jurisdictions holdincr
that there is a legal liability in such a case
rest upon the ground that the intervene
bad a moral right if not a moral duty, to
malce the attempt to save life or property;
and because it may be assumed that meo
win do their moral duty, It is argued tliat the
defendant is boiond to consider the probabili-
ties as to their subsequent and morally in-
duced conduct. The defect in tUs reasoning
is that it substitutes moral rights and duties
for those recogniised and regulated by law.
As to the intervener the defendant's prevl-
oofl conduct is wrong only In the sense that
it is a wrong to society at large. It may
be a moral wrong and may be punishable
on behalf of the public; but It is not a pri-
vate legal wrong to individual members of
the public, who of their own motion undw-
take to lessen the evil effects of the defend-
ant's dereliction from duty. The Good
Samaritan could not recover from the thieves
the value of the oil and wine which he
poured into the wounds of the man at Jer-
icho. His recompense is the same to-day
that It always has been.
[3] Unless It be true that courts can give
relief In damages for a mere infraction of a
code of morals, the plaintiff's argument fias
no weight That courts are not empowered
tQ so act In this Jurisdiction is too well
settled to require discussion. Frost v. Rall-
rond, 64 N. H. 220, 9 Atl. 790, 10 Ant St
Rep. .306 ; Buch v. Amory Co., 69 N. H. 257,
44 AU. 809, 76 Am. St. Rep. 163. If legal
liability is to be extended so as to cover this
new field, the change must be made by the
Legislature.
The plaintiff's argument that the test laid
down in Garland v. Railroad, 76 N. 11. 556.
86 Atl. 141, 46 L. B. A. (N. S.) 338, Ann. CaS.
1Q13B, 924, is applicable in his favor fails
in an essential element It Is not true that,
apart from his contract with the city, the
defendant ought to have known that th«»
plaintiff would be In a position to be injured
iby what it did. He was not In such position.
He does not so state In his declaration.
What he did was to put himself in such posi-
tion after the defendant ceased to be an
actor, and because a fire was in progress.
He did not oome upon the fire accidentally,
or in the course of Independent and lawfnl
conduct nor did the fire come upon htm
while he was so circumstanced. Buch rlgtat
as he had to be an actor in this matter grew
out of the fact that there was a fire. It was
not a right whose exercise the fire Interfered
with.
While in a certain sense the fire may be
said to be a cause of the plaintiff's injary ,
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OKISBLER ▼. READING TRUST CO.
797
It does not follow that therefore the defend-
ant's negligence was a breach of any doty
the defendant owed to him. "The tortious
natuVe of the defendant's conduct and the
causative effect of that conduct are entirely
distinct matters; and what la a requisite
element as to the first subject Is not neces-
sarily so as to the second." Jeremiah Smith
In 25 Harr. Law Rev. 245. In Garland t.
Railroad, supra, the defendant's act un-
doubtedly caused the Injury, yet it was
no breach of a duty owed to the party who
was injured.
The discussion in Kambonr v. R.-jllroad, 77
N. H. 33, 86 AtL 624, 45 Ll R. A. (N. S.) 1188,
touching the rights of certain classes of
people who encounter known danger, Is not
germane to the present case. That discus-
sion relates to the acts of a plalntUT to
whom a duty is owed, who Icnows the duty
has been violated by the defendant. It is
not authority for the proposition that fault
as to one party constitutes a wrong to a third
person who knows of the wrong and volun-
tarily seeks to remedy It The citation there
of cases permitting volunteer rescuers to re-
cover was only for the purpose of stiowing
that the maxim, "Volenti non fit injuria"
was not generally considered to be a rule of
universal application In the law of negli-
gence. The question whether these cases
were good law was not involved, and there
was no attempt to pass upon it. Nor is it
necessary to now consider this aspect of
them. It is enough for the present case to
say that even If the voluntary character
of the act does not amount to an assent to
the result, such act is not of a character
to raise an anticipatory duty on the part of
those not otherwise related to the actor to
take care to avoid fumisbing him an oppor-
tunity to act.
[4] The other claim suggested is that be-
cause the plaintiff was employed to extin-
guish fires he stands differently from a vol-
unteer and may recover when a volunteer
could not. But if it be assumed that his
contract of employment brought him into a
legal relation to the defendant and to its
conduct in setting the fire, be is no l>etter
off. If Ills contract with the public created
a relation to the individual member thereof,
the relation created is such as the parties
contemplated. It appeared to the puUic de-
sirable to reduce the fire losses of Its mem-
bers by providing for the extinguishment of
fires. The contract with the fireman is for
the benefit of those who would be damaged
by the fire. The agreement so made differs
In no respect essential to this case from the
ordinary contract of insurance. That is,
the plaintiff has agreed to tmdertake to less-
en the fire damage which would otherwise
fall upon the defendant It Is argued that
this relation exists only as between the fire-
man and the party whose property is in
danger of being consumed by the fire. But
this is much too narrow a view. If a rela-
tion arises at all, it is one to all members
of the public whose interests or liability
are involved by the fire. This is the com-
mon-sense view of the situation. The plain-
tiff, knowing that fires will occur from vari-
ous causes, some culpable and some not, un-
dertakes the work of extinguishing all fires
without reference to how they were caused.
The chance of Injury in doing such work is
necessarily assumed by him. Tills assump-
tion arises from the nature and terms of
the contract he made. He agreed to fight
all such fires as should occur. There is in
his contract no distinction as to how the
fires originated. If his contract has any
bearing at all upon the relation of the par-
ties, it establishes an express assumption of
the risk here Involved, and bars any recovery
therefor.
The rule that one may not contract against
the consequences of his own future negligence
has no application. This is merely an under-
taking of one not otherwise related to the
situation to bear for the defendant the con-
sequences of Its fault The defendant is
not thereby released from any liability im-
posed upon It by law. The agreement is
like any Insurance contract, and its validity
is not open to question.
Whether, then, the plaintiff is treated as a
volunteer or as one whose contract of em-
ployment brought him into a legal relation
to the defendant, the result Is the same. In
neither case was there a breach of any duty
owed to him by the defendant
Demurrer sustained. AU concur.
OBI Pa. S2»>
GEISSLEB et aL v. READING TRUST CO.
(Supreme Court of Pennsylvania. March 23,
1917.)
1. PEKPBTUITIKS €=>1— NATtTBE OT RUTB.
"Perpetuities" are grants of property where-
in the Testing of an estate or interest is anlaw-
fully postponed.
[Ed. Note.— For other definitions, see Words
and Phrases, First and Second Series, Perpe-
tuity,]
2. Wnxs «ss>630(2) — Vsstbd ob CJontinoent
Ebtats — Legacies.
The rule is that, where a legacy is given to
a person to be paid at a future time, it vests im-
mediately, but that, when not given until a cer-
tain future time, it does not vest until that time.
8. Wnxs <S=»634(14)— CoNSTBUCTiON— VasTsn
OB CONTINOBNT REUAINDES.
A devise of property in trust, limiting the in-
come to the testator's children by name for life
and after their death to their children as a class,
and after the death of the sarviving grandchild
the corpus to vest in testator's great-grandchil-
dren per capita, created a contingent remain-
der, to vest in the great-grandchildren as a
class after the death of the testator's last
grandchild.
4. PEBPETtrrnEs «=»4(9) — Testaioentabt
Tbtjst.
Such devise offended the rule against perpe-
tuities, and was void, and the testator's heira
ttsoVoT othar cases see (am* toplo and KBT-NUMBER In all Key-Numbered Digests and Indezu
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798
101 ATIiANTIO REPORTBE
(Pa,
mi^ht compel the tmrtee to convey the property
to tbem absolutely.
Appeal from Court of ComnMm Pleas,
Berks County.
BUI by Henry 0. Gelssler and others, heirs,
to annul a testamentary trust and for recon-
veyance, against the Reading Trust Com-
pany, trustee under the will of Henry C.
Gelssler, deceased, and others. From a de-
cree for plaintiffs, defendants appeal. Af-
firmed.
Testator's will provided in part as follows:
(7) "Item — I give, devise and bequeath to my
three sons, Henry 0. Gpissler. Jr., Samuel IC.
Geissler and Robert Franklin Gcissler, the
above-mentioned properties contained in pur-
parts numbered 1 and 2, to wit: 727, 729 and
731 Penn street and all buildings appertaining
thereto and 726 and 728 Court street and 720
Court street, marble works and stable, all in
the said city of Reading, said county and state,
same to be held by them in common, to use, oc-
cupy and enjoy the rents, issues and profits
thereof, as long as they shall live. The same
shall not be sold so long as any one of the said
sons shall live. Should the said sons agree to
dissolve partnership now existing between them,
all to disrnntinue tbe business now engaged in,
to wit: The tin and stove trade and tile and
mantle works — and all engage in some other line
of trade, tbe said premises to be used by all —
or, should they engage in different enterprises,
the said premises not used by any, then, the
same shall be rented, and proceeds, after taxes,
water rents and necessary repairs shall be paid,
to be divided among the three sons, their heirs,
share and share alike. After all the said three
sons shall have died, then the said premises
may be sold, if deemed advisable by my herein-
after named executor, a good and sufficient price
secured therefor, the proceeds therefrom to be
invested and the income thereof to be distribut-
ed to the children of my deceased sons, share
and share alike, if of age and properly behaved
and conducting themselves well, if not — then
the same to be expended in their keep and main-
tenance— and. after all such grandchildren shall
have died, then the principal sums so created
shall be divided among all the children of my
grandchildren, share and share alike, 'per capi-
ta' and not 'per stirpes' — the mortgage, now a
lien upon said premises, to be paid and lien dis-
charged, if not already so discharged at my
death, as soon after my death as can be done,
provision to be so made by sale of such securi-
ties as may be necessary, good and fair price
being received for same."
(8) "Item — I give, devise and bequeath unto
my daughter, Kosa M. Berg, widow of the Inte
Edward C. Berg, deceased, the two dwelling
houses and lots or pieces of ground upon which
the same are erected, situate on North Fifth
street, beyond Buttonwood street. Number 408
and 410 North Fifth street, in said city of
Reading, county and state aforesaid, which I
have appraised at the sum of five thousand ($5,-
000) dollars per dwelling, aggregating ten thou-
sand ($10,00(^ dollars, for and during the term
of her natural life, she to enjoy the rents, is-
sues and profits of the same, after all taxes and
necessary repairs shall have been made, as long
as she shall live. And X direct that additional
real estate, free from all incumbrances, or first
class mortgagesecurity, or securities be provid-
ed for her, which, together with the above two
dwellings valued at ten thousand ($10,000) dol-
lars, as above contained, shall aggregate the sum
of nineteen thousand three hundred and sixty-
one and ($19,361.08) <>«/ioo dollars, same being
an equivalent for what has been given to the
Uiree sons as above contained in purparts Nos.
1 and 2, and the material, wares and equipment
contained in the two branches of business, to
wit, the tin and stove trade and the tile and
mantle business, whicji I gave the said three
sons, when I retired from business and installed
my said sons into the said branch of business,
August 1, 1908,— same to be invested and held
in the name of my estate, tbe income from the
dwellings and that from the additional invest-
ment to be paid to her. for her sole and sepa-
rate use as long as she shall live, said income to
be paid to her, and to her alone, her receipt
alone to be in payment of same, such income
not to be subject to any bills or liabilities which
may be contracted, nor be liable to attachment
nor in any manner, menace nor liable for any
debt or loss sustained by said daughter, Rosa
M. Berg. After the death of my daughter,
Rosa M. Berg, if in the judgment of my here-
inafter named executor, a good and sufficient
price be secured for same, the real estate so set
aside for her as above contained, or, that may
be bought for her use and enjoyment, may be
sold and the proceeds reinvested in other good
premises same continued in my estate, or in
good first mortgage security or securities, in my
estate, the income whereof shall be distributed
to my grandchildren, children of my said daugh-
ter, Kosa M. Berg, share and share alike, if
of age and properly behaved and conducting
themselves well, if not— then the same to be
expended for such so misbehaving for their main-
tenance and keep. This extra provision extend-
ing to my grandchildren is made in considera-
tion of the fact that my good deceased wife and
I have always had the grandchildren around
us, in our home, and are very warmly attached
to them, and, hence this provision."
(9) "Item — I direct that the additional sum
of two thousand five hundred and fifty-five and
**/iao ($2,555.69) dollars be invested by my
hereinafter named executor, which sum, together
with tbe real estate hereinbefore disposed of,
and the amount of stock as per inventory, giv-
en to the boys, when the two branches of busi-
ness were transferred to them, August 1, 1908, to
wit, 'eight thousand eighty-three and *Vi«o
($8,083.23) dollars, with the additional amount
to make the share of Rosa M. Berg equal to the
share of one of my sons, will make a grand to-
tal of eighty thousand dollars — the income of
which said sum of two thousand five hundred
and fifty-five and *s/ioo dollars shall be divided
into four equal shares and be paid to the said
Henry C. Geissler, Jr., Samuel K, Geissler, and
Robert Franklin Geissler and Rosa M. Berg,
and to their children, the children Of any de-
ceased child or children, throughout this testa-
ment, to take the share of such deceased parent,
share and share alike.'
(10) "Item— After tlie death of all my children
and their children (my grandchildren), then I
direct that the above-mentioned investments
(real estate and securities), aggregating tbe sum
of eighty thousand ($80,000) dollars less the
amount as contained in inventory of stock, to
wit, the sum of eight thousand eighty-three and
"/ino ($8,083.23) dollars, or the sum of seven-
ty-two thousand four hundred ^teen and
'•/loo (972,41(X77) dollars, together with what-
ever increase of principal, by reason of higher
values received for real estate sold, as herein-
before set aside to the uses of the sons and
daughter, and whatever other increase of real
estate and securities, together with interest
which shall have accrued, shall be divided among
all my great-grandchildren, grandchildren of my
sons, Henry C. Geissler, Jr., Samuel K. Geissler,
Robert Franklin Geissler, and my daughter,
Rosa M. Bergf all share and share alike, same
taking per capita and not per stirpes."
Other facts appear In the opinion of Wag-
ner, J., in the common pleas, sur defendanf a
demurrer to plaintiff's bill:
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Pa.)
OEIS8L.ER ▼. READINa TBDST CO.
799
The plaindCFs have filed a bill in equity where-
in they set forth certain proTlsionB in the will
of Heiit7 C. Geissler, deceased, and allege that
the scheme of the trust attempted to be estab-
lished b^ these provisions is repugnant to the
rule against perpetuities, and void for remote-
ness. They therefore pray the court to enter a
decree declaring said trust null and void, and
directing the defendant to convey and quit-
claim unto the plaintiffs the real and personal
proi>erty comprising the said trust estate. To
this biU defendant demurred.
Item 7 of the will gives to Henry C. Geissler,
Jr., Samuel K. Geissler, and Kobert Franklin
Geissler, 727, 729, and 731 Penn street, TC6, 728,
and 720 Court street, to be held by them in com-
mon to use and enjoy the rents, etc, as long as
they live, same not to be sold as long as any
one of the sons shall live. It furtlier -directs
that, after the three sons shall have died, then
the premises may be sold by his executor, if
deemed advisable, the proceeds therefrom to be
invested and the income thereof to be distribut-
ed to the children of his deceased sons, share and
share alike, if of age and properly behaved and
conducting themselves well, and, after all such
grandchildren shall have died, then the princi-
pal snm so created shall l>e divided among all
the children of his grandchildren, share and
share alilce, ;>er capita and not per stirpes.
Section 8 gives to Hosa M. Berg, his daughter
and only other child, 408 and 410 North Fifth
street, as long as she lives, and directs that ad-
ditional real estate free from all incumbrances
be provided for her, so that the aggregate value
shall amount to $19,361.08; the income from
the dwdlinga and additional investment to bo
paid to her as long as she shall live. After
her death the real estate may be sold by the
executor, and tho i^roceeds invested in any other
good premises or in first mortgage security or
securities, tho income to he distributed to his
grandchildren, the children of his daughter, Hosa
M. Berg, share and share alike.
Item 10 provides that, after the death of all
bis children and their children (his grandchil-
dren), then the above trust estate (real estate
and securities), aggregating the sum of $72,416.-
77, together with increase of principal, sliall be
divided among all his great-grandchildren, grand-
children of his sons, Henry C. Geissler, Jr.,
Samuel K. Geissler, Robert Franklin Geissler,
and his daughter, Rosa M. Berg, all share and
share alike: same taking per capita, and not
per stirpes.
[I. 2] Perpetuities, as stated in City of Phila-
delphia V. Girard's Heirs, 45 Pa. 9, 26, S4 Am.
Dec. 470, are "grants of property, wherein the
vesting of an estate or interest is unlawfully
postponed." When, then, does the estate in or
interest to the principal of this contemplated
trust fund vest? That is, do his great grand-
children take a vested or a contingent interest?
In Sternbcrgh's EsUte, 250 Pa. 167, 171, 95 AtL
404, 406, we have: "In Smith's Estate, 226 Pa.
304, 307, 306 [76 Atl. 425, 426], this court said:
'Aa Chief Justice Tilghman said in l'atterM>n
V. Hawthorn, 12 Serg. & R. 112: "The rule is
that, where a legacy is given to a person to be
paid at a future time, it vests immediately.
But when it is not given until a certain future
time, it does not ve.st until that time; and if
the legatee dies before, it is lost." ' • • •
The statement of the rule by Chief Justice (iib-
son, in Moore T. Smith, 9 Watts, 403. 4(^ has
always been accepted; it is that: 'The legacy
shall be deemed vested or contingent just as
the time shall appear to have been annexed to
the gift or the payment of it.' " In the case at
bar the time is manifestly annexed to the gift,
not merely to its payment. If any of the mem-
bers of the class die t>efore the time fixed for
di8tribu^>on they get nothing.
[3] '.t will be noticed that in this will a life
efftate is first given to his children, mentioning
tbem by name. After their death we again have
a life estate to their children (grandchildren of
testator) as a class, the names of no particular
individuals being designated. These are to take
per capita. It is clear that the quantum of this
life estate is measured by the number of grand-
children living at the time of death of the last
of testator's children. Then only after the
last of these, the grandchildren, shall have died
shall the tmst estate then vest in the great-
grandchildren of the testator, per capita. Here
again the quantum of the principal of the trust
estate to be eventually received by each of the
great-grandchildren is determined by the number
of great-grandchildren in bein*; at tho time of
the death of the last grandchild. That is, the
estate vests, not presently in designated per-
sons, but only after the death of tho last grand-
child of the testator, in his then great-grandcbil'
dren as a class per capita. We have here clear-
ly a contingent and not a vested interest.
[4] Is, then, this vesting unlawfully post-
poned? "The law allows the vesting of an es-
tate or interest, or the power of alienation, to
be postponed * • • for the period of lives
in being, and 21 years and 9 months thereafter,
and all restraints upon the vesting, that may
suspend it beyond that period, are treated as
perpetual restraints, and therefore as void,
and consequently the estates or interests depend-
ent on them are void." (Sty of Philadelphia v.
Girard's Heirs, 45 Pa. 26, supra. By the terms
of the vrill the principal will not vest in the
great-grandchildren until after the death of all
the grandchildren, whether now bom or to. be
hereafter bom; that is, in the natural course of
events, for a period of from 50 to 80 or more
years after the period of lives in being. This
period is too remote, and offends the rule of per-
petuities. The antecedent estate thus falls, and
the heirs at law of this testator are entitled to
immediate possession. Johnston's Estate, 185
Pa. 179, 3D Aa. 879, 64 Am. St. Kep. 6:il;
Gerber's Estate, 196 Pa. 366, 46 Atl. 497;
Kountz's Estate (No. 1), 213 Pa. 390, 62 Atl.
1103, 3 L. R. A. (N. S.) 639, 5 Ann. Cas. 427;
In re Kountz's Trust, 251 Pa. 582, 96 Atl. 1067.
Findings of I>aw.
1. The interest of the great-grandchildren of
Henry C. Geissler, the decedent, in the trust
estato of $72,729.31, attempted to be created
by the testator, Henry C. Geissler, in his will,
is not a vested interest.
2. The devise of the principal of the property
contained in the attempted trust is one wherein
the vesting thereof is postponed for a longer
period than the period of lives in bein^ and 21
years and 9 months thereafter, is void under
the rule against perpetuities, and the plaintiffs,
the heirs at law of Henry C. Geissler, deceased,
are entitled to immediate possession of the said
principal.
3. The plaintiffs are entiUed to a decree de-
claring the aforesaid trust, aggregating in value
the sum of $72,729.31, null and void, and that
the Reading Trust Company, defendant, be di-
rected to convey a quitclaim unto the plaintiffs,
Henry C. Geissler, Jr., Samuel K. (Teissier, Rob-
ert Franklin Geissler, and Rosa M. Berg, of
the real estate and personal property described
in the will as comprising the said trust estate.
4. The costs of the proceeding shall be paid
by the defendant.
The court below entered tlie following de-
cree:
1. That tho demurrer be and is hereby over-
ruled.
2. That the devise of the beneficial estate or
interests in the six several purparts of real
estate mentioned and described in the third
paragraph of ■ the plaintifTs bill, contained in
the seventh clause of the last will of Henry C.
Geissler, deceased, the several purparts contain-
ed in the eighth clause of said will, and the di-
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101 ATEiANTIC REPQKTBE
(Pa.
rcction to proride additional real estate in the
same clanse, and the bequest of $2,655.60 in the
ninth clause of said will, is wholly and entirely
void, and that to the extent of said beneficial es-
tates and interest! in said purparts of real es-
tate and said sum of money the said Henry O.
Geisskr died intestate.
3. That the power of sale by the said .will- of
the said Henry G. Geissler granted to the execu-
tor relating to the aforesaid several purparts is
invalid and void.
4. That the said defendant do make, execub^
and deliver to the plaintiffs, the heirs at law of
the said Henry C. Geissler, deceased, proper
and sufficient deeds, conveyances, and quit-
claims as executor and trustee, conveying and
quitclaiming to the said plaintiff tho legal title
to the said several purparts of real estate de-
scribed and specified in the third paragraph of
the plaintiff's bill.
Argued before BROWN, a J., and MES-
TREZAT, STEWAKT, MOSCHZISKEE, and
FKAZBR, JJ.
Walter B. Craig, of Reading, for appellant
Jefferson Snyder and H. Robert Mays, both
of Reading, for appellees.
PER CURIAM. The decree In this case Is
affirmed, at the costs of the appellant, on the
opinion of the learned court below, direetlng
it to be entered.
(257 Pa. 341)
BEYNOLDSVILLE WATER CO. r. FAB-
MEHS' & MINERS' TRUST CO.
(Supreme Court of Pennsylvania. March 23,
1917.)
COBFOBATIONS ^=479— BONDS— TbUST DEED
— Delivebt OF Bonds— LiABUJTT fob Neo-
LIOENCB.
The trustee under a mortgage to secure a
water company's bond issue providing that the
bonds be executed by its president and secretary
and for their delivery to the trustee, to be cer-
tified and afterwards returned to the company's
treasurer, which received the treasurer's receipt
for certain of the bonds, together with the bonds
from the company's president, with directions
to send them to a bank for delivery to him, and
which, in reliance on euch receipt, sent the
bonds to such bank, from which the president
obtained and embezzled them, was not liable to
the company for their value.
Appeal from Court of Common Pleas, Jef-
ferson County.
Trespass by the Reynoldsvllle Water Com-
pany against the SVirmers' & Miners' Trust
Company for alleged negligent disposal of
bonds. From a judgment refusing to take off
a compulsory nonsuit, plaintiff appeals. Af-
firmed.
From the record It appeared that certain
mortgage bonds of the Reynoldsvllle Water
Company were executed in its behalf by A.
Grant Rlchwine, as president, and W. Dale
Shaffer, as secretary. The bonds provided
that after execution by the president and
secretary, they should be sent to the Farm-
ers' & Miners' Trust Company, trustee, for
certification by it and that they should then
be delivered to the treasurer of the water
company. After their execution by the presi-
dent and secretary, Rlchwine suggested that
Shaffer, as treasurer, send a receipt along
with the bonds, which were to be fbrthwitb
certified and delivered. Such receipt was
prepared, and, together with the bcmds, was
handed by Shaffer to Rlchwine, who sent
both receipt and bonds to the trust company,
with directions to send the bonds, when certi-
fied, to a certain bank for delivery by said
bank to Rlchwine. The trust company, rely-
ing up<Mi the treasurer's receipt, sent the
bonds to the bank as directed, and Rlchwine
subsequently procured same and embezzled
them. The lower court entered a compulsory
nonsuit, which it subsequently refused to
take off. Plaintiff appealed.
Argued before BROWN, a J., and MES-
TREZAT, POTTER, FRAZER, and WAIJ^
ING, JJ.
John W. Reed, of BrookviUe, and H. H.
Mercer, of Mechanicsburg, for appellant
Cadmus Z. Gordon and Raymond B. Brown,
both of Brookville, and Lex N. MltcheU, of
Punxsutawney, for appellee.
PER CURIAM. The following Is the Ihrst
condition of the mortgage under which the
bonds in controversy were issued:
"The bonds to be issued under and secured
thereby shall be executed on behalf of the Rey-
noldsvllle Water Company, by its president and
secretary, and shall be delivered to the trustee,
to be certified by it, and of the bonds so execut-
ed and delivered the trustee shall forthwith cer-
tify and deliver to the treasurer of the company
ninety thousand ($00,000) dollars worth of
said bonds, to be used for property, real and
personal, already acquired by it, and ten thou-
sand ($10,000) dollars for making additional im-
provements and extensions, to the plant of said
company."
On November 17, 1913, the treasurer of
the water company acknowledged in writing:
"The receipt of $100,000 of the Reynoldsvllle
Water Oimpany bonds ; $90,000 for the proper-
ty, real and personal, already acquired by it,
and $10,0(X) tor the making of additional im-
provements and extensions to the plant of said
company,"
Upon the delivery of this receipt by the
president of the water company to the Farm-
ers' & Miners' Trust Company, the appellee,
it was fully warranted in what it subsequent-
ly did with the bonds, and the Judgment of
the court below is afllrmed, on the following
from its «q?lnion refusing to take off the non-
suit:
"The receipt, prepared and signed by W. Dale
Shaffer, treasurer, and sent to the trust com-
pany, defendant, acknowledging the receipt of
$100,000 of the Reynoldsville Water Company
bonds, was clearly designed and intended by the
treasurer of the company to be his official and
final acknowledgment of the receipt of that
amount of the bonds from the trust company,
after it should have certified them, and was so
regarded by the trust company. Shaffer sent no
request and gave no direction, in connection
with the receipt to the latter. • • * The
man who sent the receipt to the defendant and
requested that the bonds be sent to him, and who
got them, was the president of the water com-
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IN BB CBOZBR'S ESTATXS
801
pany, and also a director. These men (the
president and treasurer}, chosen by its stock-
nolders, were the executive ofScers of the water
company, who for it executed the bonds and
mortgage, and who at the time of this transac-
tion were deemed worthy of trust and confidence,
and unsuspected of any motive but the interest
of the company, at whose bead they stood."
Judgment aflSrmed.
(267 Pa. Ml)
In re CBOZER'S ESTATE.
(Supreme Court of Pennsylvania. March 19,
1917.)
1. WlIXB «S9523— CONBTBUOnOR OF Lkoaot—
Refbkbentation .
Where testator, dying without issue after the
death of two of his brothers, one of whom left
issue, gave an undivided part of certain furni-
ture to his three brothers and two sisters, and
the residue of his estate to his two sisters and
three brothers absolutely, the gift was not to a
dass, but to individuals, and the issue of the de-
ceased brother were entitled to his share.
2. WrLI,8 «=s>441— CoNSTB0CTIOt»— iNTBIfT.
The testator's intention as gathered from the
language of his will with the aid of his sur-
rounding circumstances is the object sought in
the construction of a wUL
3. Wills €=>449— Oonstbuotion— Avoidanck
OP Intestacy.
A construction resulting in intestacy as to
the residue of an estate is most stionf^ to be
avoided.
4. Wilis <s»437—CoNSTEUCTioN— Intention
— TniB.
The testator's legal intention is to be gath-
ered from the state of the law at the date jf the
will, regardless of what it was at the date of
his death.
6. WlIXS 9=>6!iO—hAPSED LiEQAOIKS— KX-KR-
ACTMBNT or StATUTB.
Act Jul^ 12. 1897 (P. L. 256), relating to
lapsed legacies, does not repeal, but re-enacts.
Act May 6, 1844 (P. L. 665) i 2, providing that
no legacy to a brother or sister by one not leav^
ing any lineal descendants shall lapse by rea-
son of the decease of the legatee in the testator's
lifetime, if the legatee leaves issue surviTing the
testator.
Appeal from Oiphans' CSoort, Delaware
County.
George K. Crozer and others appeal from
a decree dismissing exceptions to the report
of Joslah Smith, Esq., auditor. In the estate
of Robert U. Crozer, deceased. Appeals dis-
missed, and decree affirmed.
Tbe following is the opinion of Johnson,
P. J., dismissing the exceptions:
The testator, by his will, after giving sundry
legacies to his three brothers and two sisters,
nairing them, and after bequeathing in the fol-
lowing words: "I give and bequeath to my
three brothers and two sisters, my one-sixth un-
divided part of the furniture, etc., at my home
in Tpland, which I received from my mother's
estate, and which I own in common with them"
— disposes of the residue of his estate in the
following words: "All the rest, residue and
remainder of my estate, I give and bequeath to
mr two sisters and three brothers absolutely."
The question has arisen in the distribution of
the estate whether by these clauses the gifts
are to testator's three brothers and two sisters
individually or as a class. The auditor has de-
cided that the gifts are to them individually i
and made distribntion accordingly, and excep-
tions have been filed to this conclusion.
If these gifts are to the three brothers and
two sisters as a class, the auditor's distribution
is wrong. If, on the other hand, these gifts
are to them as individuals, there arises a sec-
ond question: Was the second section of the
so repealed, then the auditor's distribution is
wrong; otherwise, it is correct. To sustain the
auditor requires an affirmative answer to the
following two propositions: (1) The gifts to
the three brothers and two sisters of the tes-
tator were to them as individuals. (2) "The act
of 1S97 did not repeal the act of 1844. The
auditor has addressed to the solution of these
questions a great deal of painstaking labor and
research, and fortified his conclusion by an ex-
haustive citation of the authorities. Agreeing
as we do with his conclusions, it is unnecessary
for us to review his report with any great
degree of detail.
[1-4] The object to be obtained is the ascer-
tainment of the intent of the testator, to be
gathered from the language of his will, with tbe
aid of his surrounding circumstances. He was
a very wealthy man and a bachelor. He exe-
cuted his will in 1888, with a codicil in 1893,
and died in 1914, 73 years of age. At the date
of his will his parents were dead^ At that time,
and also at the date of the codicil, he bad three
living brothers and two sisters. One of these
brothers, J. Lewis Crozer, died in 1897, with-
out children. Another brother, Samuel A Croz-
er, died in 1910, leaving children. His other
brother, George K. Crozer, and his two sisters,
Elizabeth C. Griffith and Emma C. Knowles,
survived him. By his will he gave legacies of
$10,000 each to his brothers, Samuel A and
J. Lewis, naming them, and then, conscious that
he was about to give munificent legacies to bis
sister, Elizabeth C., and her children, and to
his brother, George K., and his children, and to
his sister, Emma C, and her children, he takes
occasion to say in his will that these legacies
of $10,000 are comparatively small, that is to
say, compared with those about to be given to
the others, and that they are made thns com-
paratively small for reasons which he states,
and then, to avoid an inference that the distinc-
tion is attributable to any difference in regard
for them, he says: "My love for all my broth-
ers and sisters is strong and deep." He then
gives to his sister Elizabeth C, naming her,
and her children, legacies amounting to $250,-
000; also to his brother, George K., naming bim
and his children, a like sum ; and also to his sis-
ter, Emma C, naming her and her cbildren, a
like sum. Then after a number of legacies
come these two clauses, which have been refer-
red to, and which produce this controversy:
"Item. I give and bequeath to my three broth-
ers and two sisters my one-sixth undivided part
of tbe furniture, etc., at my home at Upland,
which I received from my mother's estate and
which I own in common with them."
"Item. AH the rest, residue and remainder of
my estate I give and bequeath to my two sis-
ters and three brothers absolutely."
Did the testator intend these glt'ts to the
donees to be to them as a class or as individ-
uals? It would scarcely occur to the average
mind that these gifts were otherwise than the
ordinary gifts to them as individuals. What
did the testator intend in 1888, when the will
was executed? Did be have them in mind as a
class? If he had in mind to treat them as a
class, then he intended that only those who
survived him should take, and the children of
those who predeceased him should be excluded ;
but he said that his love for all of them was
deep and strong. Moreover, if a class were
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intended, it waa not known in 18S8 bat diat
J. Lewia (>ozer might be the only one of the
cljiag to anrvive him, and he had been childlega
for many years. What he might do with the
testator's estate would be quite uncertain. This
would provoke a critical commentary upon the
testator's expression of equality of love for all
of his brothers and sisters. And that is not
all, for if the whole class should predecease
him, then he would die intestate as to the res-
idue of his estate, a conclusion of construction
most strongly to be avoided, a cardinal canon
of construction.
A class is indeterminate in number at the
date of the will, which may be enlarged or
diminished, and finally determined at the death
of the testator. We have here the definite num-
ber, five, incapable of enlargement. True, the
number may be decreased by death. But the
number of uiares remain the same, if those dy-
ing leave children. If those dying should not
leave children, there would be an intestacy to
that extent. But such intestacy as to a possible
share or shares is not so serious as a possibil-
ity of an intestacy of the entire residue above
alluded to. Gross' Xlstate, 10 Pa. 360, has been
in the limelight of tiie argument of counsel.
But that is quite a different case from this.
There the gift was to brothers' and sisters'
children, which could not be definitely fixed un-
til testator's death. Hence the children of a
deceased brother and sister, dying before the
testator, although living at the date of the will
were excluded.
A testator's legal intention is to be gathered
from the state of the law at the date of the
will, regardless of what it was at the date of
his death. Martindale v. Warner, 15 Pa. 471;
Hood V. Penna. Society to Protect Children
from Cruelty, 221 Pa. 474, 70 AU. 845, Ann.
Gas. 1913 A, 1290. note. If these were not
class gifts, then this testator legally intended
under the act of May 6, 1844, that if any of bis
brothers and sisters should die in bis lifetime
leaving children they should take their parent's
share, and that such was not his actual intent
there can be no tenable question. He had them
in mind as individuals; he names them in his
will ; he states their number ; they were all
the brothers and sisters he had or could have;
he individualizes them by sex; they were all
personally near to him. It was not that sisters
should take if the brothers were dead, nor that
brothers should take if tbe sisters were dead,
but it was sisters and brothers who were to
take; it was not that one sister was to take
if tbe other were dead, nor that one or two
brothers were to take if one or two were dead,
but it was his two sisters and three brothers
who were to take.
It is true that, where there is a general gift
to brothers and sisters, the child of a sister who
was dead at the date of the will is not entitled.
Guentber's Appeal, 4 Weekly Notes Cases, 41.
But the reasoning of Judge Penrose in Rey-
nold's Estate, 11 Pa. DisL R. 387, is quite con-
vincing that, where the gift is to brothers and
sisters, the parents being dead, it is a gift to
them as individuals. Tbe same reasoning was
applied by the same judge to the brothers and
sisters of a legatee for life. (Wenzel's Estate,
12 Pa. Dist. R. 63); and again to nephews
and nieces, where the number is incapable of
enlargement in Cooper's Elstate, 29 Pa. Co. Ct
425. We have therefore concluded that the au-
ditor's conclusion that these gifts were to the
donees as individuals, and not as a class, is cor-
rect
[5J It only remains to refer briefly to the con-
tention that the act of May 6, 1844, has been
repealed by the act of July 12, 1897. We are
only concerned with the provision respecting
tbe lapse of the legacy to Samuel A. Crozer.
There has never been a moment of time since
tSaj 6, 1S44, to the present time, when it has
not been the law that a legacy by a testator
without lineal descendants to a brother dying
during testator's life, leaving issue surviving the
testator does not lapse, but enures to such is-
sue. The act of 1897 re-enacts the act of 1S44
in this respect. How can it be that the re-en-
actment of the law repeals it, and this by im-
plication? The question echoes the answer.
Tbe auditor was correct in holding that there
was no such repeal.
Argued before BROWN, G. J., and MES-
TRJ!;ZAT, STEWART, MOSCHZISKER, and
WAli-ING, JJ.
William I. Schaffer and E. Wallace Chad-
wick, both of Chester, for api)ellant Crozer.
Maurice Bower Saul and Jesse S. Shepard,
both of Philadelphia, for appellant Knowles.
Garnett Penuieton, of Chester, for appellant
Griffltb. Benjamin H. Ludlow, of Philadel-
phia, for appellees Hilprecht, John Price
Crozer, and Page. Harold Evans and B. Gor^
don Bromley, both of Philadelphia, for appel-
lee Samuel A. Crozer, 3d. Wm. M. Stewart,
Jr., of Philadelphia, for appellee Fox. Jo-
seph H. Uinkson and J. DeUaven Ledward,
both of Chester, for appellee Eklward Crozer.
PER CURIAM. These appeals are dis-
missed, and the decree affirmed, at appel-
lants' costs, on tbe opinion of the learned
president judge of the court below, dismiss-
ing the exceptions to the report of tbe au-
ditor.
(267 Fa. GO)
LEOm T. PHIIiADEU?HIA MACARONI
CO.
(Supreme Court of Pennsylvania. April 23,
19170
1. Masteb and Sbbvakt «s>278(12)— Nbqu-
GENCE — Evidence.
In a servant's action for injury from the de-
scent of an elevator without warning while be
was working in the elevator pit, evidence h«U
to sustain a finding of negligence.
2. Tbial *=>91— Statement or Pabtt— Mo-
tion TO Stbike.
Where a servant, suing for personal injory,
while being cross-examined on a former trial as
to inconsistencies between his testimony and his
statement of claim, denied the genuineness of
his signature to such statement, apparently
thinking that tbe examiner was attempting to
entrap him, a motion at a subsequent trial to
strike out the statement for such reason was
properly dismissed, where defendant's counsei
objected to the examination of plaintiff as to tbe
genuineness of his signature as being imma-
terial.
3. Master and Servant «=»291(4)— Action
FOB Injury— Instbuction.
In a servant's action for injury from the de-
scent of an elevator without warning, the re-
fusal of defendant's requested charge that, if
plaintiS went into the elevator pit knowing tbat
his safety depended upon the elevator bmg
locked, and after trying the lock, waa satisfied
that it was locked, and was thereafter injured
because not attentive or because mistaken _u>
thinking that it was locked, without requiriMT
the jury to believe that plaintiff did not rely aP-
on the assurance of safety given by defendanrs
engineer, was properly refused, where plaintiff
had testified that the engineer had promised to
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IiEOTTI T. PHIIiADELPHIA MACAKONI 00.
803
put some one on the first floor to see that it was
not lowered.
4. Teial ®=»146— Statement of CounseI/—
iNSTBtJCnONB TO lONORB — WITHDRAWAL OV
Jttbob.
In a servant's action for personal injury, the
trial judge properly refused to order the witb>
drawal of a juror because of a statement of his
counsel that the case had been tried before, and
that plaintiff had told the same story at the last
trial, where prior reference had been made to the
fact of the former trial, and where the state-
ment was withdrawn on objection with an in-
struction to ignore it and determine the case on
the evidence.
Appeal from Court of Common Pleas, Phil-
adelphia County.
Trespasa by Joseph Leottl against the
Philadelphia Macaroni Company to recorer
damages for personal injury. Verdict for
plaintiff for $11,000, and judgment there(m,
and defendant appeals. AfBrmed.
Argued before BROWN, C. J., and STEW-
ART, MOSCHZISKER. FEAZEE, and WAD-
UM6, JJ.
Ralph B. Evans, Frank P. Prlchard, and
W. W. Smlthers, all of Philadelphia, for ap-
pellant J. W. Wescott, of PbUadelpbla, for
appellee.
MOSCHZISKER, J. The plaintiff, a car-
penter, was injured while performing services
In the employ of the defendant company. He
sued in trespass, alleging negligence, and re-
covered a verdict, upon which Judgment was
entered. Defendant has appealed.
[1] The following facts may be stated as
determined by the Jury: On the date of the
accident, November 4, 1915, the plaintiff,
Joseph Leottl, was about 40 years of age,
and a vigorous, healthy man, with a substan-
tial earning capacity. He was Instructed by
the engineer of the defendant company, who
bad authority to give the order lu question,
to go Into an elevator pit. In the cellar of the
defendant's premises, for the purpose of
repairing the gates of the elevator. Where-
upon plaintiff said to the engineer, "Will you
guarantee that you will not allow this eleva-
tor to come down on me?" and the latter re-
plied, "Yes; I will station a man at the
first floor, to see that It will not come any
lower than that." Belying upon this assur-
ance, Leottl entered the pit, and, while he
was engaged at work, the. elevator, in charge
of another employ^, who had not been In-
formed of the plaintiff's whereabouts, de-
scended upon him, so injuring his back that
he will be a hopeless cripple the rest of bis
life.
While appellant admitted the plaintiff was
told to repair the elevator gates, yet it denied
he had been given any promise whatever
that precautions would be taken to insure
bis safety. In fitct, one witness for de-
fendant went so far as to state that at the
time the instructions for the work were giv-
en the engineer left plaintifTs side. In or-
der to get some materials for use In connec-
tion with the repairs about to be made, and,
as he did so, expressly told the latter not
to go near the elevator until he, the engineer,
should come back, adding, "I will operate the
elevator and you will work, you will be saf-
er." This was the answer on the main
branch of the case. There was no pretense
that any precautions had been taken to in-
sure the safety of plaintiff; the theory of
the defense l>elng that neither the engineer
nor any one else In authority knew, or had
an opportunity to know, that the Injured
man had placed himself in a position of dan-
ger, and therefore that he did so at his own
risk. It is evident, however, that the Jury
disbelieved the testimony and rejected the
theory of the defendant, accepting that of
the plaintiff: and, under the circumstances,
they reasonably could draw the conclusion
that the former had been guilty of negligence
toward the latter in permitting the elevator
to descend upon him without warning. Pow-
ell V. a. Morgan Smith Oo„ 237 Pa. 272, 85
Atl. 416.
[2] AU the issues involved were submit-
ted to the Jury in a careful, comprehensive
charge, wlildi was eminently fair to both
sides; but the appellant complains of sev-
eral rulings of the learned court below, which
call for consideration. This case was tried
once before, but, for some unexplained rea-
son, the former verdict in appellee's favor
was set aside. The plaintiff testified through
an Interpreter. At the other trial, when un-
der cross-examination, counsel for the de-
fendant, holding in bis hand the statement of
claim, proceeded to question plaintiff as to
certain alleged inconsistencies between the
averments thereof and the latter's testimony,
whereupon the witness, no doubt thinking
the examiner was endeavoring to trap him,
denied the genuineness of Ills own signature
upon the written statement. Prior to the
trial now under review a rule was taken,
based upon this Incident, to strike the state-
ment of claim from the record ; but this rule
was discharged. When the present trial
opened, the defendant again moved, on the
same ground, that the statement should be
stricken from the record, and, when its mo-
tion was overruled, it secured an exception,
whicli forms the basis of an assignment of
error. At the second trial counsel for the
plaintiff placed before him the original state-
ment of claim, and proceeded to inquire as
to the genuhieness of bis signature, with the
evident purpose of clearing up the confusion
on that point; whereupon counsel for de-
fendant objected to the Inquiry as "Imma-
terial," stating that "there is no objection
now." We have read the stenographer's
notes with care, and so far as they throw
light upon the subject in hand. It appears
clear to us that whatever objection had for-
merly been entered to the statement of claim
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was "withdrawn" at the second trial. It
may be well to note at this point, however,
that both the attorney who drew the state-
ment and the notary who took plaintUTs af-
fidavit, testified to the genuineness of the
latter's slgnatnre; further, that certain tes-
timony from the first trial, printed in ap-
pellee's paper book shows the plaintifr himself
stated he had signed and sworn to a state-
ment for these men, when he was at the
hospital after the accident. Under the cir-
cumstances, we feel there can be no reason-
able doubt that the statement of claim re-
lied upon by plaintiff was prepared, signed,
and sworn to in the usual way.
[3] It is strongly contended that the trial
Judge erred in refusing a point for charge
submitted by defendant, as follows:
"If you find that when plaintiff went into the
elevator pit be knew his safety depended upon
the elevator being locked above, tried to lock it
himself, wag satisfied that it was already locked,
and that he was subsequently hurt because he
was not watchful or was mistaken in his belief
that the elevator was lodced, then your verdict
should be for the defendant."
It appears from plaintifrs testimony that,
when he went into the pit, be looked up and
saw the elevator standing at the fifth fioor;
that be tried the cord and found the vehicle
was already locked at the indicated station ;
that, "it being locked there," he "could not
lock it" where he was about to work, as he
otherwise might have done. He was then
asked the question, "When you found it was
locked at the fifth fioor, yon let it alone and
started to work. Is that the idea?" and re-
plied, "Yes; because the engineer had as-
sured me that he would place a person on
the first fioor to see that it would not be low-
ered." As drawn, the point was properly re-
fused. Had the defendant added to his re-
quest, after the last use of the word "locked,"
something to the effect that, if the Jury fur-
ther believed the plaintiff did not in fact rely
upon the alleged guaranty or assurance giv-
en him by the engineer, then the point would
properly have covered the theory of the de-
fense, and might have called for an affirm-
ance.
[4] There Is but one other assignment which
requires discussion, and that concerns the
refusal to withdraw a Juror on motion of
defendant, When senior counsel for plain-
tiff was summing up, he said:
"This case was tried once before, and plaintiff
went on the witness stand and told his story;
he told identically the same story before you."
At this point counsel for defendant object-
ed and made the motion which we are now
considering. C!ounsel for plaintiff withdrew
the remark; whereupon the trial Judge in-
structed the Jury they were to ignore the in-
cident and determine the case exclusively up-
on the evidence presented before them. The
notes of testimony show that during the ex-
amination of the witnesses several references
had been made, without objection from any
one, to the circumstance that the case had
been tried once before; hence the Jurors must
have been fully aware of that fact, and we
do not feel it is at all probable the entirely
inadvertent remark of counsel prejudiced
the cause of the defendant O'Malley v.
Public Ledger Co., 257 Pa. 17, 101 AtL 94.
The assignments of error are all overruled,
and the Judgment is affirmed.
(WPa. S3T>
In n DISSTON'S ESTATEl
(Supreme Court of Pennsylvania. April IS,
1917.)
1. Wills <8=»802(2) — Dkvibe to Widow —
Election to Takk Aoainst Will— Effect.
Devises or bequests, subordinate to a life
estate in a widow and contingent upon ber
death, or payment of which is postponed until
then, becomes presently payable upon her elec-
tion to take under the intestate laws, which as
to claims under the will, ia equivalent to her
death.
2. Wills *=9802(2)—Tbust— Widow's Elec-
tion TO Takk UifOEB Will— Acceuiratior
OF Remainder.
Where testator devised his residuary estate
in trust, and, after providing an annuity for his
sister-in-law, directed that the remaining in-
come, and, on the annuitant's death, all the in-
come, be divided equally between bis widow, bis
son, and a daughter, and that at the widow's
death the son and daughter should each receive
one-half of the principal, and, on the deaUi of
either before her, devised remainders over of
such deceased chUd'a share of the income, the
widow's election to take against the will termi-
nated the trust as though she had died, and ac-
celerated the son's interest, his share of so much
of the principal as remained after the widow had
been paid her share under the intestate laws,
subject to the annuity.
3. Wills €=»439— Constbuction— Intekt.
In the construction of a will the effort ia to
find and carry out the testator's chief intent
with a minimum disturbance of the general plan
of the will.
4. Wills «=s»802(2)— Effect of Widow's
Election— pREStniPTiON of Testator's
Knowledqe,
A teetator is presumed to know that a wid-
ow's statutory rights are paramount, and that
she may take against his will, that her election
to do so is equivalent to her death for the pur-
poses of distribntion and that, unless hia will
plainly indicates a contraij intent, the remain-
ders are thereby accelerated.
5. Wills €=9802<2)— Rekahtdbbs— Accxleb-
ATioN— Intent.
An intent that there shall be no acceleration
may be shown by inevitable implication, &s
where the will itseu fixes a definite time for dii»-
tribution independently of the life tenant's
deatli, or mokes express provision as to the ef-
fect of her refusal to take under the will, or
where a trust is created, not to guard the life in-
terest, but for the benefit of a person other than
the life tenant or remaindermen, or where durinc
the life estate the whole income is given to the
life tenant and to another, whom, for apparent
reasons, the testator would specially desire to
enjoy his bounty to its full extent, or where tfa«
contmgency upon which the remaindermen are
to take is such that the persons entitled can only
be ascertained on the life tenant's death.
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IN RE DISSTOK'S ESTATE
805
61. WiLl* «=s»485— CoNSTBUOnON— IWTINT —
Dkpabtdbk.
The literal provisionB of a will ma; be de-
parted from so as to carry out what appears to
be a gaperior or preferred intent, but where that
is d<me, the object is always to approximate as
nearly as possible to the testator's scheme,
which has failed by reason of intervening rights
or circumstances.
7. WrUiS «=9802(2)— Rkuaindebs— AccELZB-
ATION.
Where a widow was to receive part of the
income of an estate for life, and the balance dur-
ing her life was given to testator's children, with
remainders of principal to them at her death,
her election to take under the intestate laws ter-
minated a trust created to hold the estate intact
for her benefit, and accelerated the estates of the
children as effectually as though she was to en-
joy the entire income for life ; and the fact that
the remainders are contingent, or that alternate
remainders are created in the event of the death
of such children in her lifetime, will not make
an exception to the rule if such alternate re-
mainders appear to be only substitutionary.
Appeal from Orphans' Court, Philadelphia
County.
William Dunlop Disston appeals from a
decree dismissing exceptions to adjudication
in the estate of William Disston, deceased.
Reversed, and record remitted for distribu-
tion.
Argued before BROWN, C. J., and STEW-
ART, MOSCHZISKEiR, FRAZER, and WAL-
LING, JJ.
Joseph Gllflllan, of Philadelphia, for ap-
pellant.
MOSCHZISKER, J. The question in this
case is whether or not a certain Interest In
remainder has been accelerated by the elec-
tion of a widow to take against her husband's
wlU. The court below held in the negative,
and William Dunlop Disston, the remainder-
man in question, has appealed.
The testator, William Disston, died April
6, 1915, lea^-lng a will wherein he devised his
residuary estate in trust to keep the princi-
pal invested, collect the Income, and pay
therefrom to Estelle M. Dunlop, a sister-in-
law, $10,000 per annum during the term of
her natural life ; the remaining income, and,
after the death of the annuitant, all Income,
to be divided equally between the testator's
wife, his son (the appellant), and a daughter,
Pauline Disston, the share of the latter being
placed in trust. The testator then provided
that In the event of the death of either his
son or daughter, leaving issue, during the
lifetime of his widow, the share of income of
the one so dying should be paid to his or her
issue; that should either of his children die
without issue during the lifetime of bis
widow, the Income of the one so dying should
be paid in equal shares to the widow and
surviving child so long as the former lived;
further, that upon the death of such surviv-
ing child without Issue, during the lifetime
of his or her mother, all income, subject to
the payment of the before-mentioned annuity, I
should go to the testator's wife. As to the
principal, subject to the annuity, at the death
of his widow, the testator gave one-half of his
residuary estate to his son, providing, how-
ever, that should the son tbai be deceased,
the share in question should go to the latter's
issue. The other half he directed should be
retained by the trustees named in his will,
the Income therefrom to be paid to his
(laughter for life, with remainder to her is-
sue. He then provided that, if either of his
children should be dead, without issue, at the
decease of his widow, the share of the one so
dying should be paid to or held for the sur-
vivor. Finally, should both children be so
deceased, he gave the principal of his residu-
ary estate to his nephews and nieces or their
issue living at the time.
The testator's widow elected to take
against his will, and, at the audit of the ex-
ecutors' account in the orphans' court, the
son claimed one-half of so much of the prin-
cipal of the estate as remained after his
mother had been paid her share under the In-
testate laws; but he conceded that a sum
sufficient to meet the annuity should be set
aside for that purpose. The court below de-
termined, however, that the son's share must
remain In trust so long as the widow lived,
in order to prevent him from controlling the
principal during that period, and to permit
the alternate gifts in remainder to become
effective should he die in his mother's life-
time. The appellant claims this was error;
tliat both his and his sister's shares of the
principal of the testator's estate were accel-
erated by their mother's election to take
against her husband's will; and that, after
a sufficient sum is set aside to assure the
payment of the annuity, he Is entitled to an
absolute award of one-half the residue.
[1] The relevant rules of law are well set-
tled with u& In Ferguson's Estate, 138 Pa.
208, 219, 20 AtL 946, 910, speaking by Mr.
Justice Mitchell, we state the cardinal prin-
ciple thus:
"Devises or bequests, subordinate to a life es-
tate in the widow and contingent upon her death,
or payment of which is postponed antil then, be-
come presently payable upon her election to take
under the intestate laws. As to its effect upon
all claims under the willj her election is equiva-
lent to her death. This is the general rule, and
if there are any exceptions, they must depend on
the expression or unavoidable implication of a
contrary intent of the testator."
In Vance's Estate, 141 Pa. 201, 213, 21 AtL
643, 645 (12 L. R. A. 227, 23 Am. St. Rep.
267), we said:
"Law must have a settled and uniform rule,
and it is that as to the provisions in a will for
l^des subordinate to a life interest in the
widow and contingent upon her death, or pay-
ment of which is postponed till then, her elec-
tion to take against the will is equivalent to her
death."
In Woodbum's Estate, 151 Pa. 586, 589,
25 Atl. 145, we determined that this cardinal
rule governed where, as in the case at bar.
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the testator gaTe hia widow, for life, "not
the Income of one-third, but one-tbird of the
Income of the whole" of his estate. We
there said;
"To ascertain and secure such third, the whole
estate had to be kept together, and such was un-
doubtedly the testator's intention."
[2] The language last quoted Is applicabie
here. It is apparent from a reading of the
will that the testator's paramount intention
was to create a trust during the life of his
widow, so that she might enjoy the income
from, not one-third of his estate, but one-
tlilrd of the income from his whole estate,
and that, after thus providing for his wife,
the primary object he had in view was to
benefit his children. In other words, the tes-
tator intended to leave his residuary estate,
subject only to his slater-in-law's annuity,
for the benefit of his wife and children, the
former to receive one-third of the income for
her life, and each of the latter a like propor-
Uon for the same period. When his widow's
Interest should terminate, he intended his
two children to take the whole principal, the
son's share being absolute, and the daughter's
continuing In trust; and It seems evident
that he postponed this distribution until his
widow's death for the reason that be desired
the entire estate held Intact, to secure her
one-third of the income therefrom, rather
than to set aside one-third of the principal
for her benefit. Finally, the alternate re-
mainders, after the devises to his wife and
children, are substitutionary In character,
and Inserted to prevent the occurrence of a
lapse should either or both of the children
die during the continuance of the trust cre-
ated for the purpose Just Indicated. This
being the evident scheme of the will, and the
plan having been interfered with by the wid-
ow's election to take her share under the in-
testate laws, the acceleration of the remain-
der interests given to testator's dilldren
would carry out his principal Intent, and also
adhere to hia general plan better than con-
tinuing the trust so tliat the secondary ob-
jects of his bounty might be afforded an op-
portunity to derive a possible benefit In the
future.
[3,4] In a case like the one before us the
effort must be to find and carry out the tes-
tator's chief intent with a minimum disturt>-
ance of the general plan of the wilL After
hl» wife, the testator's children were the nat-
ural and primary objects of his bounty, not
their issue, still less nephews and nieces or
their issue, and the alternate provisions for
others, after the testator's children, were un-
doubtedly Intended as substitutionary, in
case the latter died during the life of their
mother, should ehe take under the will ; but,
as said by Mr. Justice Mitchell, in Vance's
Estate, supra, 141 Pa. p. 209, 21 Atl. 643. 12
Ia R. A. 227, 23 Am. St Rep. 267, a testator
Is presumed to know that a widow's statutory
rights are paramount, and that she may take
against his will ; to which we now add that
a testator Is presumed to know also the gen-
eral rule that the election of a widow to take
under the intestate laws is equivalent to her
death, and that, unless his will plainly Indi-
cates a contrary intent, remainders are ac-
celerated accordingly.
[t] Of course, an intent that there shall
be no acceleration may be shown by inevita-
ble implication, as, for Instance, where the
will itself fixes a definite time for dlstribu-
tlon independently of the widow's death or
expressly provides as to the effect of her re-
fusal to take thereunder (Relgliard's Estate,
253 Pa. 43, 53, 97 Atl. 1(M4)-, or where a
trust is created not simply to guard the wid-
ow's life interest, but also for the benefit of
a third party other tlian dther the widow or
remaindermen (Young's Appeal, 108 Pa. 17.
22): or, again, where during the life of a
widow the whole income is given to her and
another, the latter of whom, for appareut
reasons, the testator would specially desire
to enjoy his Imunty to the full extent indicat-
ed— a mother, for example — and, after the
life estate of the wife, remainders are Un-
ited to others In addition to the mother, so
that, in case of acceleration, the income in-
tended for the latter would be materially
diminished during, In all probability, an ap-
preciable period of time (Portuoudo's Estate,
185 Pa. 472, 39 Aa 1105) ; or where the con-
tingency upon which the remaindermen are
to take is such that, in the nature of things,
the persons entitled can be ascertained only
by the physical death of the widow; and
perhaps other instances might be died
Some of these exceptions and the Pennsyl-
vania cases dealing therewith are well (un-
sidered by Judge Porter, of the Superior
Court, in a recent opinion handed down In
Wyllner's Estate, 65 Pa. Super. Ct 396, a
case much like the present; and Interesting
discussion by that eminent Jurist the late
Judge Penrose upon the general subject now
before us may be found in Key's Estate, 4
Pa. Dlst R. 134.
[8] To sum up our concluslona on the law
and facts here involved: In a case such as
the one at bar, the literal provisions of a will
may be departed from so as to carry oat
what appears to be a superior or preferred
Intent ; but, when this is done, the object in
view must always be "to approximate as
closely as jjosslble to the scheme of the testa-
tor which has failed by reastxi of Intervening
rights or circumstances." Ferguson's Estate,
138 Pa. 208, 220, 20 Atl. 945, 94&
[7] Where the widow, so long as she lives,
is to receive a part of the income of the whole
estate, and the balance of income, during her
life, la given to testator's children, with re*
malnders of principal to the same children at
the widow's death, her election to take under
the intestate laws will terminate a trust crea-
ted for the purpose of holding the estate in-
tact for lier benefit, and accelerate the estates
of the children Just as effectually as though
the provision for the widow were that she was
to enjoy the entire Income during her life
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m RE McOINIJSY'S ESTATB
807
(Woodbam'8 Estate, mpra); and the fact
that the remainders glren to the children
may be contingent (CooTer's Appeal, 74 Pa.
143, 147), or that alternate remainders may
be provided for In the event of the decease of
such children In the lifetime of the widow
(Wyllner's Estate, supra), will not take a case
out of the operation of the general rule. If,
on a view of the whole will, or the particu-
lar part In question, such alternate remain-
ders appear to be merely secondary or sub-
stitutionary In character. See other cases
supra. As already Indicated, we are of opin-
ion that the trust created by the present tes-
tator was not intended to continue until the
actual death of his widow, but only so long
as she might have an interest In the estate
passing under his will. When she elected to
take against that instrument, the testator's
full intent could not be carried out, and the
trust came to an end to the same extent as
though the widow had physically died.
Hence the ai^pellant's Interest was acceler-
ated, and the learned court bdow should
have so held.
The decree Is reversed, and the record re-
mitted for distribution in accordance with
the views herein expressed.
(257 P». 478)
In re McGINr..EY'S ESTATE.
Appeal of TRACEY et al.
(Supreme Court of Pennsylvania. April 16,
1917.)
1. Wttus «=»316(1) — Contest — Issue — Du-
VI8AVIT VEI. son— RlOIFT TO SUBMSISION.
In determining ttie right to an issue devisa-
vit vel non, the test is whether, after a review of
the whole testimony, tiie trial judge would sus-
tain a verdict against the will ns in accord with
the manifest weight of the evidence.
2. Wills <S=»316(2)— Mental Capacitt— Evi-
dence.
Evidence held insufficient to authorize an is-
sne devisarit vel non on the ground of the tes-
tatrix's unsoundness of mind.
3. Wills €=»316(3)— Undue Influence— Evi-
dence.
E>ndence held insufficient to authorize an is-
sue of devisavit vel non on the ground of undue
influence.
4. Wills ®=>316(1) — Evidence — Mutual
Wills.
Evidence in a will contest held to authorize
an issue as to whether the testatrix and her
husband had entered into an agreement between
themselves and contestants to make mutual and
reciprocal wills, devising their property to con-
testants in consideration that contestants would
take care of them during their lives.
5. Wills «=>58(1)— Contbaot to Devise—
Validity.
One may enter into a valid contract to dis-
pose of his real or personal property by will in
a particular way.
6. SpEcinc Pebfobmance «=s>86— Contract
TO Devise.
A contract to dispose of real or personal
property by will in a particular way may be
specifically enforced.
7. Fbauds, Statute or «=s7S— Pabol Coh-
TRACT TO Devise— Execution.
When a valid contract to dispose of proper-
ty by will in a particular way has been proved,
the will becomes a writing containing the terms
of the agreement and satisfying the statute of
frauds.
Appeal from Orphans' Court, Berks County.
Catherine T. Tracey and another appeal
from a decree of the orphans' court dismiss-
ing appeal from decree of register of wills,
in estate of Susan McGinley, deceased, admit-
ting decedent's will to probate. Reversed
and an issue awarded.
Argued before BROWN, C. J., and MES-
THEZAT, STEWART, MOSCHZISKER, and
FRAZER, JJ.
Cyrus G. Derr and Walter B. Freed, both of
Reading, for appellants. Ira G. Kutz, of
Reading, for appellees.
MESTREZAT, 3. Catherine T. Tracey and
Rose M. Rehrer, nieces of Susan McGinley,
deceased, who survived her husband, Stephen
McGinley, presented their petition to the or-
phans'- court of Berks county, averring, inter
alia, that Stephen McGinley and Susjiu Mc-
Ginley had, in pursuance of a contract be-
tween themselves and the petitioners, made
mutual and reciprocal wills on May 22, 1914,
In which they had devised their property to
the petitioners in consideration that the lat-
ter would take care of them during life;
that the register of wills bad admitted to
probate, against their objection, a paper writ-
ing purporting to be the last will and testa-
ment of Susan McGinley, dated April 6, 1915 ;
that petitioners had filed their appeal from
the decision of the register admitting the pa-
per to probate; and prayed the court to
award a citation to the legatees named in
the alleged will of April 6, 1915, to show
cause why said will should not be adjudged
void, and why a precept should not be issued
to the court of common pleas directing that
an issue be framed to determine whether
Susan McGinley was the victim of hallucina-
tions and delusions, was of sound and dispos-
ing mind, whether the execution of the will
was procured by fraud or undue influence,
and "whether the paper writing dated May
22, 1914, signed by the said Susan McGinley,
is such a mutual and reciprocal will as to
prevent the said Susan McGinley from revok-
ing the same after the death of the said
Stephen McGinley." A citation was awarded
to which an answer was filed denying the
mental Incapacity of Susan McGinley, that
she had hallucinations and delusions, and
that the will was void, and also denying
the alleged facts averred in support of the
allegation that the will was void. The or-
phans' court refused to issue devisavit vel
non, and the contestants have appealed.
We have carefully examined the evidence,
and agree with the learned Judge of the oonrt
below that It is insufficient to Justify a ver-
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diet that at the date of the wUl, April 6,
1915, the decedent .was of unsound mind or
was subject to hallucinations and delusions
concerning the contestants, or that the will
was procured by fraud or undue Influence.
[1] In determining the right to an Issue,
the test is whether, after a review of the
whole testimony, the trial Judge would sus-
tain a Terdict against the will as being in ac-
cord with the manifest weight of the evidence,
[2, 3] The subscribing witnesses, one of
whom wrote the will, the physician of the
decedent, the alderman of the ward who had
transacted her business for years, and anoth-
er reputable witness testified that her mental
condition was good at the time she executed
the will. It appears from this testimony that
the decedent furnished the data to the scrive-
ner for preparing the will, and he testlfled
he read the will to her, and her conversation
was clear and natural, her hearing and sight
were good, and she knew what she was doing,
what property she possessed, and to whom
her estate was to go. The contestants intro-
duced testimony to show tliat on one occasion
the decedent had In, an excited manner, or-
dered the name of one of the contestants to
be taken off the books of a trust company, and
on several occasions had made remarks In an-
swer to greetings of friends on the street
which Indicated a weak Intellect and a loss
of memory. Several other Incidents were
shown .which are of little or no weight In
establishing mental infirmity in the decedent.
A Jury would not be permitted to find men-
tal Incompetency or undue influence from
such testimony, and the court was right in
refusing the Issue for such reason.
[4-7] We cannot assent to the learned
Judge's conclusion that the oral evidence sub-
mitted in conjunction with the wills of May
22, 1914, was insufliclent to Justify the court
in granting an is.sue to determine whether
the parties entered Into the agreement as
alleged by the contestants. This, as will be
observed, was one of the questions which was
raised by the pleadings, and was considered
by the court in determining whether an issue
should be sent to the common pleas. Susan
McGlnley, the decedent, and Stephen McGln-
ley, her husband, each made a will on May
22, 1914, by which they gave all their prop-
erty, after the death of the survivor of them,
to Mrs. McGinley's two nieces, the contestants
In this proceeding. These wills were written
by the same scrivener, executed at the same
time, witnessed by the same parties, and are
identical in form and efltect, the name of the
principal beneficiary in each being the only
difference. The contestants Introduced evi-
dence to show that the two wills were execut-
ed, mutually and reciprocally. In pursuance
of an agreement between the McGlnleys and
their nieces that, if the latter continued, as
formerly, to care for their uncle and aunt as
long as both lived, they were to have all the
property of the McGlnleys after the death of
the survivor, and that the nieces performed
their part of the contract, having taken care
of Stephen McGlnley until his death on Sep-
tember 9, 1914, and of Susan McGlnley until
within three weeks of her death, when she
left the home of the nieces without cause and
without their consent or agreement It is
therefore claimed that Mrs. McGlnley vio-
lated her contract with her husband and her
nieces, and, after his death, attempted to
revoke her will of May 22, 1914, by making
another wUl on April 6, 1915, the subject of
this contest, by which she excluded her niec-
es and gave to strangers the estate which she
owned in her own right and that which she
received by her husband's will
It is well settled that one may enter Into a
valid contract to dispose by will of his prop-
erty, real or personal, in a particular way.
and that such will is Irrevocable and the con-
tract will be specifically enforced. There are
many examples of the recognition of this
doctrine in this state and other states. Caw-
ley's Est, 136 Pa. 628, 20 Atl. 567. 10 L. R.
A. 93; Smith V. Tult, 127 Pa. 341, 17 Atl.
995, 14 Am. St Rep. 851 ; Wright's Est. 155
Pa. 64, 25 Atl. 877; Shroyer v. Smith, 204
Pa. 310, 54 Atl. 24; Lewallen's Est, 27 Pa.
Super. Ct 320; Park v. Park. 39 Pa. Super.
Ct 212; Frazler et aL v. Patterson et al.,
243 111. 80, 90 N. E. 216, 27 L. R. A. (N. S.)
508, 17 Ann. Cas. 1003, and notes. In Thomp-
son on Wills, { 28, the learned author says:
"Mutual wills — that is, where two persons exe-
cute wills reciprocal in their provisiong, but
separate instruments— may or may not be rev-
ocable at the pleasure of either party, ac-
cording to the circumstances and understanding
upon which they were executed. To deprive
either party of die right to revoke such mutual
wills, ft is necessary to prove such wills were
executed in pursuance of a contract or a com-
pact between the parties and that each is the
consideration for the other."
When such contract has been proved, the
will becomes a writing containing the terms
of the agreement, and satisfies the statute of
frauds. Shroyer v. Smith, 204 Pa. 310, 54
Atl. 24.
We think the evidence submitted to and
considered by the court was sufficient to
send the case to a Jury to determine the ex-
istence of the alleged contract between the
McGlnleys and the contestants, and whether
the latter performed their part of the agree-
ment The court concedes that the wills of
May 22, 1914, put In evidence, have the ear-
marks of mutual wills. The contestants in-
troduced parol evidence in support of the
contract One of the witnesses was Fletcher
E. Nyce, asaUtant treasurer of the Pennsyl-
vania Trust Company of Reading, and for
many years the financial adviser of the Mc-
Glnleys. He testified, inter alia, as foUows:
"About the middle of July, 1914, I was down
to see Mr. and Mrs. McGlnley: and at that
time Mr. McGlnley told me. He said, 'Mr.
Nyce,' he said, 'Susan and I have agreed to
make wills, and we went out to see Pat Breen,
and we had him draw the wills.' He said,
'Mrs. Rehrer'— he called her Roeie— 'you go op
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ZENZIL V. DELAWARE, L. & W. R. CO.
809
and get them and let Mr. Nyce see them.' And
Mrs. Rehrer went upstairs, and in a little while
she came down with the two papers. I looked
at them and read them both, and I said, 'Well,
Mr. McGinley, this Is fine; this is fine.' He
said, '^es, the girls have left their homes and
came to us to take care of us. You see, there
is Susan, she can't do anything, she is help-
less, and I haven't been able to do anything
for quite a long time, and Susan and I have
agreed to give the girls everything that was left
if they would stay with us and take care of
us until we are gone; the girls have been
kind to us.' And he said^^'Isn't that right,
Susan?' And she said, 'Yes, papa; that's
right,' she said ; 'The girls are to have all, if
only they will stay witii us, and we promised
them if they would stay with us we would give
them all we had when we are gone.' "
Be ftirtber testified that Mrs. McGinley
and Mrs. Rebrer were present during the
conversation, and that the former repeated
the words of her husband three or four
times. Two or three days after Mr. McGln-
ley's death, Mr. Nyce saw Mrs. McGinley
again, and she said:
"Mr. Nyce, poor Steve, he couldn't last any
longer. Now. I am going to the hospital, and
these girls will be here to have everything aft-
er my death."
He Identlfled the wills of May 22, 1914, as
the two papers shown him on the occasion of
his visit to the McGinleys In Jtdy, 1914. The
McGlnleys owned property of the value of
about $4,000 and were childless. In the lat-
er years of their lives Mr. McGinley was af-
flicted with cancer of the face and Mrs.
McGinley suffered a paralytic stroke. It ap-
pears that Mrs. McGinley went to a hospital
in September, 1014, and returned to her niec-
es early in October, and remained there un-
til the following April, when she went to re-
side with Mr. and Mrs. Babb, to whom she
devised the greater part of her estate by the
will of April, 1915. The contestants offered
proof that they performed their part of the
contract by taking care of Mr. McGinley un-
til his death in September, 1914, and of Mrs.
McGinley until she left them, without any
reason or cause, about three weeks prior to
her death.
This and other testimony and circumstanc-
es in the case tend, as the contestants claim,
to show the existence of the alleged con-
tract, and that the wills of 1914 were made
by the McGinleys to carry into effect the
agreement made between them and their
nieces. Nyce's testimony, if believed, diows,
not a promise by the McGinleys to make
wills in the future, but that "Susan and I
have agreed to make wills, and we went out
to see Pat Breen and we had him draw the
wills." The wills were produced and Mr.
Nyce read them. Mr. McGinley repeated the
contract which had been made, and gave the
reasons for making it, saying:
"The girls have left their homes and came to
OS to take care of us. Tou see, there ia Susan,
she can't do anything, she is helpless, and I
haven't been able to do anything for quite a
long time, and Susan and I have agreed to
give th(> girls everything that was left, if they
would stay with us and take care of us until
we are gone ; the girls have been kind to ua"
This statement by McGinley would justify
the Jury in finding that the nieces had
agreed to the terms of the contract and had
then left their home^ and were performing
their part of It. The conversation was in the
presence of Mrs. McGinley, who consented to
what was said by her husband and repeated
the terms of the contract three or four times.
Mrs. Rehrer, one of the nieces, was also pres-
ent at this interview, acquiesced in the con-
tract as stated by the McGinleys, and, at
Mr. McGlnley's suggestion, went upstairs
and got the wills for Mr. Nyce, showing that
she knew of the wills and had them in her
possession or knew where they were kept.
Mrs. McGinley, after the death of her hus-
band, confirmed the existence and terms of
the contract by admitting, shortly before her
death, that the nieces would have everything
after she was dead.
This proceeding was conducted by the par-
ties, and the question as to the validity of
the alleged contract was determined by the
court below, on the theory that the contract,
if valid, could be set up to defeat the pro-
bate of the will of 1915. In conformity with
our practice, we have disposed of the appeal
in like manner, and hence it Is sufficient to
say that we think the evidence Justifies
awarding an Issue to determine whether an
Irrevocable contract was made between the
parties as alleged by the contestants. The
competency of the witnesses and of the tes-
timony offered in the court below is not rais-
ed upon this record, and we express no opin-
ion in regard to it, whether on the applica-
tion for or on the trial of the issue.
BV>r the reasons stated, the decree is re-
versed and an issue is awarded.
(»7 Pa. 473)
ZBNZIL et al. v. DELAWARE, L. ft W. R.
CO.
(Supreme Court of Pennsylvania. April 16,
1917.)
1. Railboadb 4=933S<6) — Nkouqerok — Sio-
NAI.8.
The object of signals Is to give notice that
a train ia about to occupy the track, and a
failure to give such signals is immaterial where
one in daylight walks into a train after the en-
gine has passed.
2. RAII.BOADS e=s>346(l)— AOOIDERT AT CKOBS-
IRG— BUBDEN OF PbOOV.
Plaintiff in an action for injury from a train
at a permissive crossing had the burden of show-
ing that the accident happened at such crossing.
S. Raii,boadb 18=3350(1)— Accideht—Pbbicis-
SIVK CBOSSINO— EVIDENOB.
In such case, where plaintiff's contradictory
and conflicting testimony presented no question
as to whether the injury occurred at such per-
missive crossing, so that a nonsuit was prop-
erly granted.
4. Neouoencb ^=>136(7) — C!ontbibutobt
Negligence— QuEsnoK roa Jubt.
Where the burden of proving plaintiff's neg-
ligence is upon defendant, it is the province of
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101 ATI.ANTIO REPORTBB
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the jury to pass upon the conflictiDg statements
in plaintiff's own testimony.
6b RAII.B0AD8 «=a350(14)— Oito8siNO»— GAsa
AS TO CHILDBEN.
In an action for personal injury to a boy
nine years of age fron\ defendant's train, his
contribatory negligence was, by reason of his
age, a question for tiie jury.
Appeal from Court of Gcniimon Pleas,
Lacliawanna County.
Trespass by Stephen Zenzll, a minor, by
bl3 father and next friend, Peter Zenzll, and
by Peter Zenzll, In his own right, against
the Delaware, Lackawanna & Western Rail-
road Company, to recover damages for per-
sonal injury. From an order refusing to take
off a compulsory nonsuit, plaintiffs appeal.
Order afSrmed.
Argued before BROWN, C. J., and POT-
TER, STEWART, FRAZEOt, and WAIj-
UNG, JJ.
Thomas P. Duffy and Joseph F. Gllroy,
both of Scranton, for appellants. J. H. Oli-
ver, D. R. Reese, and Warren, Kuapp, O'Mal-
ley ft Hill, all of Scranton, for appellee.
WALLING, J. This suit is for injuries
caused to a <dmd by a freight train.
Defendant's double track railway extends
in a northerly and southerly direction through
Dalton borough in Lackawanna county. The
station is on the east side of the easterly or
north-bound track; opposite It, on the west
side of the westerly or south-bound track,
a side track branches therefrom and extends
southerly toward Scranton, so that to the
south of the station there are three parallel
tracks. A short distance to the west there
is a residence street, parallel with the rail-
way, the lots on the east side of which ex-
tend back to the right of way. One of the
lots, known as the Von Storcb lot, is about
300 feet south of the station, and adjoining
this lot on the north is the Ives lot At the
time in question there was a path leading
from said street diagonally across the Von
Storch lot to the right of way at the south-
east comer of the Ives lot, where there was
a board across the railroad ditch and there
pedestrians were accustomed to cross the
tracks, as a short cut In going to and from
the station. It appears to have been so used
sufficiently to be regarded as a permissive
crossing. The Ives lot being higher than the
tr&dta, was graded down in the form of a
terrace, and there, about 25 or 30 feet north
of the Von Storch lot, steps led down to the
right of way, but the evidence failed to show
that people were in the habit of crossing the
tra<^ at that point. In other words, the
evidence did not tend to show two permissive
crossings. Peter Zenzll was In defendant's
<>mploy as a track hand and lived near the
station on the east side of the tracks. On
August 13, 1913, his son, the plaintiff, then
nine years of age, was out with three other
boys Utghtly older than himself, and early in
the afternoon they were on the west side,
where for a time they watched a ball game
and then came to the railroad. The evidence
is not clear whether they came by the path
or by the public road to the station. At
any event they then went up on the rear
end of the Ives lot where a man was cutting
or trimming a tree; and the boys played tag
there and possibly on the right of way as
there was no fence between. It was then
after 1:30 p. m., and a north-bound passenger
train came and stopped at the station. The
evidence tends to show that the boys were
then on or near the side track waiting for
the train to move so they could cross the
tracks In the direction of plaintiff's home,
when a long freight train, with an engine at
each end, came up the grade from the north
on the west main track, and as it was pass-
ing plaintiff's clothes were caught by one of
the cars and he was thrown so that his left
foot was seriously Injured, seemingly under a
car wheel. His testimony Is that he was
standing on the ends of the ties of the sid-
ing next to said track, and was hit by the
train, and that as he states "it pulled me
down a little ways." He does not say nor
seem to remember what part of the train
struck him ; but William Doggett, one of the
boys with plaintiff, and the only other wit-
ness of the accident who was called, says
in substance that there were 50 to 60 cars in
the freight train, and all the boys were play-
ing on the bank until about one-third of the
train had gone by, and that the accident hap-
pened after about 20 cars had passed. He
also locates the place of the accident a con-
siderable distance, probably 60 to 100 feet,
north of the so-called permissive crossing.
One part of plaintlfTs own testimony would
indicate that he was hurt at or near audi
crossing, while other parts of his evidence
locate the place of accident at points to the
north thereof. And his testimony is con-
fused and contradictory. There is negative
evldenoe that no warning was given of the
approach of the freight train, except that it
made some noise coming up the grade. The
only evidence of defendant's negligence is
that tending to show absence of due warning
of the train's approach.
This appeal waa taken from an order of
the trial court discharging the rule to tako
off the compulsory nonsuit that had been
granted at the conclusion of plaintUTs tes-
timony. An examination of the record falls
to disclose sufficient evidence to sustain a
verdict against the defendant.
[1-8] The evidence of William Doggett,
that part of the train had passed before tbe
accident, finds support in the circumstances
and is not contradicted. If true it Is diS-
cult to see bow the alleged lack of wamlss
contributed to the accident. The object of
signals is to give notice that the train Is
about to occupy the track; bat when the en-
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WOOD T. CARSON
811
gine has passed and the cars are following
one after another It is the best possible evi-
dence that the company is occupying its
track. The alleged lack of formal signals is
not material in the case of one who in day-
light walks into a train that is and for some
time has been passing before him. And
aside from that the evidence would not sus-
tain a finding that plaintiff was hurt at the
permissive crossing. His own evidence as to
that being conflicting and that of his own wit-
ness being directly to the contrary, the court
was not bound to submit the question to the
jury. This principle is stated and the au-
thorities in support thereof cited in the opin-
ion of Mr. Justice Potter, filed at the present
term of this court, in the case of Magier v.
Philadelphia ft Reading Railway Co., 101
Atl. 731.
In our case the burden of proof was upon
the plaintiff to establish, inter alia, the fact
that the accident happened at the i)ermls-
slve crossing, and, as his own testimony on
that question was so contradictory and con-
flicting as to present to the Jury no basis for
a finding, except a mere guess, the nonsuit
was properly granted. See Mulligan v. !«-
high Traction Co., 241 Pa. 139, 88 Aa 318,
and Cawl^ v. Balto. & Ohio R. R. Co., 44
Pa. Super. Ct. 340.
[4] In certain cases it is the province of
the Jury to pass upon conflicting statements
in plaintiff's own testimony. Ely v. Pitts-
burgh, Cincinnati, Chicago & St. Louis Ry.,
158 Pa. 233, 27 Atl. 970; Strnder v. Monroe
County, 202 Pa. 626, 51 AU. 1100; Sloan v.
Philadelphia & Reading Ry. Co., 225 Pa. 52,
73 Atl. 1069. But in those cases the conflict-
ing statements were on the question of con-
tributory negligence where the burden of
proof was on the defendant. In Ely v. Pitts-
burgh, Cincinnati, Chicago & St. Louis Ry.,
158 Pa. 238. 27 Ati. 971, supra, Mr. Justice
Mitchell in delivering the opinion of this
court says:
"Had the testimony referred to a subject as
to which the burden of proof was on the plain-
tiff, the resnlt might have been different, for the
court ia not entitled to submit evidence which
will merely enable a jury to guess at a fact in
favor of a party who is bound to prove it."
((] This case is not ruled by Piepke t.
Philadelphia & Beading Ry. Co., 242 Pa.
321, 89 Atl. 124; there an engine and tender
were running backward upon a public street,
at or near a crossing where small children
were standing upon the track, and no sig-
nal was given of the approach of the engine
or effort made to avoid the accident, and this
court held that the case was for the jury.
Of course children are entitled to greater
protection than adults, and it is the duty of
those in charge of trains to avoid wanton or
reckless injury even to trespassers, yet there
is no allegation or evidence of such injury
in this case, and it is not shown that those
in charge of the train saw the boy before the
unfortunate accident On account of plain-
tilTs age the question of contributory negli-
gence would be for the jury.
The assignment of error ia overruled, and
the order discharging the rule to take off"
the nonsuit is affirmed.
(S7 Pa. 'M)
WOOD V. CARSON.
(Supreme Court of Pennsylvania. April 10,
1017.)
1. LANDLOSn ARO TENANT 4=s»231(8)— AonON
FOR Bent— Directed Verdict.
In an action for rent, defended on the
ground of the lessor's breach of a contemporane-
ous parol agreement to make certain repairs,
and that the premises contained certain wells,
held, on the evidence, that a verdict for plaintiff
was properly directed.
2. Landlord and Tenant «=>231(2)— Lcasx
— bvidencb.
Where the lessee, when sued for rent, failed
to establish the lessor's alleged contemporaneous
contract for repair and his representations of a
proper water supply, the exclusion of evidence
as to the consequences of the alleged breadi was
proper.
3. Landlord and Tenant «=»150(1)— Be-
PAiBs— Implied Covenant.
Without an express agreement there is no
implied obligation on the landlord to repair the
demised premises.
4. Landlord and Tenant ^=9125(2)— Im-
plied Covenants— Fitness for Use.
Without an express agreement the lessor
does not impliedly undertake that the premises
are fit for the purposes for which they are leased.
Appeal from Court of Common Pleas, Phil-
adelphia County.
Assumpsit for rent by John S. Wood
against John W. Carson. Directed verdict
for plaintiff for $1,877.60 and judgment there-
on, and defendant appeals. Affirmed.
Argued before BBOWN, C. J., and STEW-
ART, MOSCHZISKER, FRAZER, and WAL-
LING, JJ.
Robert Malr, Wayne P. Rambo, and Or-
mon!d Rambo, all of Philadelphia, for appel-
lant. Frank B. Shattuck, of Philadelphia, for
appellee.
MOSCHZISKER, J. May 13, 1899, plain-
tiff and defendant entered into a written con-
tract whereby the latter leased from the for-
mer a lot of ground with the buildings there-
oa for a term of five years from June 1, 1899,
at an annual rent of $1,600, payable in equal
monthly installments. Defendant remained
in possession of the demised premises until
August 31, 1901, when, having paid in full
to that date, he removed therefrom. The
property remained untenanted for about
eight months, and the present action was
brought to recover the rent which accrued
during that period. At trial binding instruc-
tions were given for plaintiff, who recovered
a verdict for $1,877.60. Judgment was enter-
ed accordingly, and the tenant has appealed.
[1] Defendant, who is in the dye business,
alleges that, prior to and contemporaneously
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101 ATLANTIC RBPORTEB
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with tbe execDtlon of the lease sued upon, he
and the plaintiff entered Into a verbal con-
tract, whereby tbe latter agreed to make
certain repairs to the demised property, so as
to render It soitable for use as a dyebouse;
farther tbat plaintiff represented to him
tbere were five good wells of water on the
premises, whlcb would furnish a supply am-
ple for the neeMs and requirements of defend-
ant's business; that the agreement and rep-
resentations In question Induced defendant
to sign the lease, but tbat the plaintiff failed
to make the promised repairs, and, Instead of
five good wells of water, there was but one,
which did not meet defendant's needs and
requirements; finally, that, after repeated
demands upon plaintiff, the latter refused
either to make the repairs called for in the
prior and contemporaneous parol agreement,
or to do anything toward furnishing tbe quan-
tity of water necessary for defendant's dye-
house; and that, for these reasons, be was
obliged to and did remoye from the leased
premises.
At trial, however, the defendant faileid to
prove the grounds upon whldi he relied. In
the first place, he admitted that the lease
was drafted by him, and not by the plnintlff ;
but he gave no explanation as to why the
alleged parol agreement ha'd been omitted
therefrom, the only mention of repairs in the
written contract being an express provision
that the lessee sbould keep the property in
good OMidltlan, and so deliver it to the lessor
at tbe end of the term, "reasonable wear and
tear excepted." Next, while the defendant
produced testimony to show that weeks pri-
or to the execution of the lease, on an occa-
sion wlien he viewed the buildings, there had
been some conversation concerning the re-
pairs which be desired, should be rent the
property, yet he falleU to show that any con-
tract to make these repairs was entered into
either at tbat time or when the lease was
subsequently executed and delivered. As to
what took place at the latter date, the tes-
timony Is not only too vague and indefinite
to prove a contract to make any certain re-
pairs, but defendant 'did not even offer to
prove that the plaintiff, John S. Wood (then
alive, but now deceased), was actually pres-
ent at tbe time; furthermore, be failed to show
tbat the plaintiff's son, James L. Wood, who
he testified brought the lease to him already
executed by the lessor, was duly authorized
to enter into a parol contract such as the
one alleged, on behalf of his father.
When we come to consider the subject of
the water supply, the defendant's case is
even weaker; for it appears that, while there
was more or less prior talk concerning the
wdls, yet at the time of tbe execution and
delivery of the lease all that was said upon
tbe matter was this : Tbe defendant mentlon-
efd to the plaintiff's son, "He [the lessor] as-
sures us that we are getting a good plenty
of water," and James I* Wood replied. "Yes,
sir; tbere are five wells of good water here,
and yon will have a sufficiency." The lease
contains no mention of the water supply, and
there was no testimcmy to show that the de-
fendant at any time informed tbe plaintiff
how much he required for bis business, or
that tbe latter ever in any manner represent-
ed or contracted to give him any fixed quan-
tity.
James L. Wood, who appeared as a wit-
ness for the plaintiff, admitted that his father
bad agreed to certain enumerated repairs, but
stated all these had been made, and we find
no contradiction of this testimony; more-
over, Mr. Wood did not say tbere had been a
contract for any repairs whatever, but he
designated tbe result of tbe varlons conver-
sations on tbat subject simply as an "under-
standing." In addition we find nothing in
this witness' testimony from which It appears
that be was authorized by bis father to enter
into contracts on the latter's behalf; nor
are there any other proofs in tbe case which
would Justify a finding to that effect.
[2] Under all tbe circumstances, the trial
Judge committed no error in refusing to i)ep-
mlt testimony concerning the consequences of
the nonfulfillment of tbe alleged contem-
poraneous contract for repairs or of the lack
of a proper water supply, nor did he err In
striking out evidence concerning conversa-
tions on these subjects alleged to have been
held some weeks prior to the execution and
delivery of the lease or months subsequent
to that date. We have, however, considered
all the printed testimony, stricken out or oth-
erwise, and also the offers refused ; and, aft-
er so doing, we see no reversible error In
the ultimate conclusion reached by the court
below.
The authorities relied upon by the defend-
ant in no sense rule here. Wolfe v. Arrott,
109 Pa. 473, 477, 1 Atl. 333, stands on its own
facts. There the landlord not only assured
the tenant that certain conditions existed,
but "guaranteed" such to be tbe case, and.
"in consideration of these assurances and
guaranty," the tenant signed tbe lease.
Then again in that case it was not held that
the lessee was entitled to remove from the
premises and stop paying rent, but only that
he bad a right to deduct from the rent due
tbe amount which, after demands upon the
landlord to make good his guaranty, he bad
been obliged to pay out in order to render
the leased premises habitable. The only sub-
sequent report In which we find Wolfe v. Ar-
rott mentioned is Moore v. Gardiner, 161 Pa.
175, 177, 28 AU. 1018, where tbe former case
is distinguished. In the latter we affirmed a
judgment for the plaintiff under circumstanc-
es somewhat like those at bar, saying that
it was not of "any avail to allege certain ver-
bal communications between the parties pri-
or to and at the time of the execution of the
lease," since "they were not Incorporated
Into the lease, and tbere are no facts In evl-
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STONE T. DELAWARE, L. & W. R. CO.
813
dence which would Justify the alteration of
the lease so as to include them."
In Smith t. Harvey, 4 Pa. Saper. Ct 377,
380, relied npon by the appellant, the ten-
ant had actually refused to sign the lease,
on the ground that there was no provision
contained therein as to the certainty of the
water supply ; whereupon the landlord said,
"We will consider it the same as though it
was in there, and I promise you that any
shortage of water shall be remedied at once,"
which assurance and promise then and there
induced the defendant to sign.
[3, 4] There is no sufficient evidence at bar
to take the present case out of the general
rule stated by Mr. Justice Sharswood In
Moore v. Weber, 71 Pa. 429, 432, 10 Am. R^.
708, that:
"The lessee's eyes are his bargain ; he is bound
to examine the premises he rents, and secure
himself by covenants to repair."
Or, as further stated by President Judge
Rice, In Itavis v. Pierce, 52 Pa. Super. Ct.
«15, 617:
"In the absence of an express agreement, there
is no implied obligation on the landlord to re-
pair demised premises, nor does he impliedly un-
dertake that they are fit for the purposes for
which they are rented."
The assignments of error are all overruled,
And the Judgment Is affirmed.
<2ST Pa. tBfi
STONE V. DELAWARE, L. & W. R. CO.
(Sapreme Court of Pennsylvania. April 16,
1917.)
1. Eminent Dovair €=3l34 — Mbasubk of
Damaoes— Pbospectivk Use.
In an action for damages for land condemn-
ed, the jury, in ascertaining the measure of
damages, may consider not only the present use
.and condition of the property, but that to which
it was adapted at the time of the talcing, and its
present value for any future use that could rea-
sonably be anticipated, excluding speculative
values.
2. Eminent Domain «=»222(5) — DAMAOEa—
Chabgh
A charge that the juiy might consider differ-
ent elements of damages in respect to the land
condemned, such as inconvenience in getting
from one part of the farm to another, the de-
struction of a spring, damage to an orchard,
and the cutting off of the view, and so add a
total of the entire amount of damages to the
farm as a whole, was not objectionable as per-
mitting the jury to fix the specific sum for each
element of damage separately, and to aggregate
the several amounts in their verdict.
S. Emikent Domain ®=» 141(1) — Damages —
EV1DE^•CE.
Such several elements were admissible as af-
fecting the market value of the land, and not
otherwise.
4. Eminent Domain €=»255— Damages— In -
STBCCTioN— Appeal.
Where defendant did not request a more ex-
tended charge as to the elements of damages for
plaintiffs condemned land, or submit points for
specific instructions, it could not complain of a
failure to give an adequate instruction.
S. Eminent Domain «=3222(1) — Damages —
Adequacy of Instbtjction.
Where the court enumerated the contentions
and summarized the testimony of experts on the
question of damages, its instruction for the jury
to find damages to the plaintiff's farm in its en-
tirety at the time of the taking, and referring to
the credibility of the witnesses, leaving the de-
termination of the amount of the verdict to th«
jury, was not, as a whole, inadequate.
0. Eminent Domain 9s>203(4) — Damages —
Rental Value.
While the rental value of property may be
considered in forming an opinion as to its mar-
ket value, where it is adaptable only for a cer-
tain purpose, evidence as to its rental value is
inadmissible where it is adaptable for a number
of purposes.
7. Eminent Domain <8=>203(4)— Evidence—
Cboss-Examination— Rental Value.
Where plaintiff and another testified that the
value of condemned property for farming pur-
poses did not represent its actual value, and
that it had a greater value for other purposes
beyond that of the ordinary farm, the refusal
to permit defendant on cross-examination to
question the witnesses as to the rental value
of the property if used exclusively for farming
purposes was not reversible error.
8. Trial i3=>64r— Evidence in Reply— Scope
—Value— Sales and Selling Pbices.
Where defendant was permitted without ob-
jection to cross-examine plaintiff's witnesses as
to other sales of land In the vicinity of plaintiffs
condemned land, plaintiff was properly allowed
on redirect examination of bis witnesses and <h>
cross-examination of defendant's witnesses to
ask for the selling prices of other similar land
in the vicinity.
9. Evidence «=:»155(1)— Entibe Transaction.
Where a witness testifies to part of a trans-
action, the opposing party may insist upon the
complete transaction being shown, even though
such evidence be otherwise inadmissible.
Appeal from Court of Common Pleas,
Lackawanna County.
Action by John L. Stone against the Dela-
ware, Lackawanna & Western Railroad Com-
pany. Verdict for plaintiff for $13,865, and
judgment thereon, and defendant appeals.
Affirmed.
Argued before BROWN, O. J., and POT-
TER, STEWART, FRAZER, and WAL-
LING, JJ.
J. H. Oliver, H. A. Knapp, and D. R. Reese,
all of Scranton, for appellant. John P. Kel-
ly and A. D. Dean, botli of Scranton, for ap-
pellefe
FRAZER, J. Defendant appeals from the
Judgment of the court of common pleas en-
tered on a verdict for plaintiff awarding the
sum of $13,865 damages for land taken, or in-
jured, by the relocation, straightening, and
widening of defendant's right of way. The
errors assigned are to the charge of the court,
and various rulings on the admission and
rejection of testimony touching the question
of damages.
[1] The first assignment of error complains
that the portion of the charge quoted was
erroueous in that it permitted the Jury to fix
the damages not upon the value of the
property for the purposes for which it was
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101 ATLANTIC EEPOBTEB
(Pa.
actually available at tbe time of the appropri-
ation, but upon the value Incident to the
possible future growth of the community.
The trial Judge stated In part that:
"The witnesses gave their reasons for arriving
at the conclusion that this was not only a very
valuable piece of land as a farm; that it was
available for town lots or plots in larger or
■mailer tracts; that within the last 25 or SO
years a good many plots of land have been
laid out and have been sold at various prices,
and basing their opinions upon the sale of lands
thereabouts and of the possible future growth
of the community, they arrived »t the figures to
which they have testified. This is a proper way
of arriving at a conclusion under the facts of
this ease, and it is for you to take into consid-
eration their accuracy and whether their opin-
ions are entitled to the weight plaintiff asks to
be given to them."
The Jurors, In our opinion, were not mis-
led by this instruction. The rule In ascer-
taining the measure of damages is that the
Jury may consider not only the present use
and condition of the property, but such use
to which It was then adapted, and prospec-
tive advantage at the time attaching to it a
present value, or any purpose to which it
could reasonably be anticipated the land
would In the future be applied, excluding,
however, speculative values. Marine Coal
Co. V. Pittsburgh, McKeesport 4 Xoughio-
gheny R. R. Co., 246 Pa. 478, 92 Atl. «t>8.
The instmcOon quoted is not open to defend-
ant's objection that the Jury was permitted
to find speculative damages. Plaintiff's land
was suburban property and, as stated in the
charge, a number of similar tracts in the
neighborhood had been recently plotted and
sold as building lots. The possibility of
utilizing the land in question for this pur-
pose was not therefore merely remote and
speculative, but a legitimate prospect for
consideration by the witnesses and the Jury
in forming their opinion as to its present
value.
[2,3] The second assignment compla^s of
that part of the charge which permitted the
Jury, in fixing the damages to the land as of
the time of the taking, to consider the "dif-
ferent elements that enter into the damages,
such as the Inconvenience In getting from
one part of the farm to the other, the de-
struction of the living spring, the damage to
the orchard, the cutting off of the view, the
use of the old road as compared with the
new one whidi was put in by the defendant
company, and in this way to add a total, as
It were, of the entire amount of damage
caused to the farm taken as a whole." This
Instruction defendant contends authorized
the jury to ascertain these various Items of
damage separately, and arrive at a total by
adding them together. No claim is made
that the enumerated elements were not prop-
er for the consideration of the Jurors In
forming their estimate of the damages, but
that the Instruction permitted the fixing of
a specific simi for each element separately,
and by aggregating the several amounts
reach a verdict As separate items the evi-
dence would be Improper. The several ele-
ments were admissible, however, as affect^
ing the market value of the land, and not
otherwise. Parry v. Cambria & Indiana R.
R. Co., 247 Pa. 169, 93 Atl. 336. WhUe the
latter portion of the excerpt standing alone
Is misleading, the trial Judge begins this part
of the charge by instructing the Jury to find
the damage to the farm in its entirety as it
was at the time of the taking, and that in ar-
riving at the extent of the injury they might
"take into consideration the different ele-
ments that enter into the damages," follow-
ing this statement with a reference to the
items quoted above. In view of the intro-
ductory statement the clause as a whole is
not open to criticism.
[4, 6] The third assignment allies the
charge as a whole to be inadequate. The
court's instructions were quite brief consid-
ering the amount of testimony taken; no re-
quest, however, was made by defendant for
a more extended charge, nor were points sub-
mitted asking for specific instructions. Con-
sequently defendant is not In a position to
complain of what' was not said to the Jury ;
and this court will not reverse a lower court,
under such circumstances, unless the tend-
ency of the charge as a whole was to the
prejudice of the party against whom a ver-
dict was returned, and was not, in expres-
sion or tone, a fair and unbiased Judicial
presentation of the case. To what extent
the trial Judge will go Into details in discuss-
ing the evidence Is necessarily largely within
his discretion. BNjwler, Executrix, v. Smith,
153 Pa. «td, 25 AtL 744 ; Ensminger v. Hess,
192 Pa. 432, 43 AU. 1001. The court gave a
brief outline of the case, enumerated the con-
tentions of each party, and the substance of
the testimony of the expert witnesses relat-
ing to the question of damages, instructed
the jurors they were to find the damage to
the farm in its entirety as It was at the time
of the taking, and referred briefly to the
question of credibility of witnesses, leaving
to the jury to determine the amount of the
verdict. A careful consideration of the
charge as a whole falls to show such inade-
quacy as to require the granting of a new
trial.
[6, 7] The fourth and ninth assignments
are to the refusal of the court to permit de-
fendant, on cross-examination of plaintiff
and one of his witnesses, to ask the rental
value of plaintiffs farm. Both witnesses
testified the value of the property for farm-
ing purposes did not represent the actual val-
ue of tiie land ; that it had a greater value
for other purposes, such as a country estate
for a person living in the dty desiring a sub-
urban residence, or for building .sites, and
that its value was beyond the ordinary farm
Intended exclusively for agricultural pur-
poses. One witness testified he was nnable
to fix the value as farming land, and did not
consider it from that point of view. The
witnesses generally were asked the rental
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8T0NB ▼. DELAWABE, L,. A Wi R. 00.
816
value, or tbe amount received as rent from
the place for farming purposes. Wblle the
rental value might be a proper element to
consider In forming an opinion of tbe mar-
ket value of a property under certain condi-
tions, or In a case where Its use was for agri-
cultural purposes exclusively, yet the facts
of this case and tbe testimony all tends to
show the property was adaptable for other
purposes, and possessed a much higher value
for such purposes than If used for general
farming. In fact it appears land was too
valuable In that locality to be a paying In-
vestment from the standpoint of a farmer.
To take an extreme Illustration, the rental
value for farming purposes of a piece of land
In the heart of a dty would be of little value
as a standard for fixlnsf the market value of
the property. In fact the Income from rents
never can constitute an exclusive standard
for that purpose. Forster v. Rogers Bros.,
247 Pa. 64, 93 Atl. 26. In view of the testi-
mony in the present case the action of the
trial judge is not ground for reversal.
[Jl The fifth to the eighth assignments, In-
clusive, refer to the action of the trial Judge
In allowing plaintlfF, on redirect examination
of his own witnesses, to ask them to state
the selling prices of other similar properties
In the neighborhood. The eleventh to tbe
eighteenth assignments, inclusive, complain
of the action of the court in permitting plain-
tiff, on cross-examination of defendant's wit-
nesses, to show the prices received for par-
ticular sales of real estate In tbe nelgbbor-
bood. These assignments raise substantially
tbe flame question and can be considered to-
gether. Tbe court below, In its opinion dis-
charging tbe rule for a new trial, gave as a
reason for its action in admitting such testi-
mony, that defendant first introduced the
snbject-matter by proving prices obtained
for other properties in the neighborhood, and
having brought out tbe prices paid for par-
ticular pri^ertles, plaintiff was entitled to
follow that line of examination by shovring
additional sales, and thus place before the
Jury tbe entire Information upon which the
witness based his opinion. The question as
to when, and under what circumstances, evi-
dence of the prices obtained for other prop-
erties in tbe neighborhood Is admissible we
have considered in numerous cases, and def-
initely settled. The most recent expression
of opinion on the subject will be found in
Rea ▼. Pittsburg & ConnellsvlUe R. R. Co.,
229 Pa. 106, 78 Atl. 73, 140 Am. St. Rep, 721,
Roberts v. Philadelphia, 239 Pa. 3.^9, 86 Atl.
026, Girard Trust Co. v. Philadelphia, 248
Pa. 179, 93 Atl. 947, and Llewellyn v. Sunny.
side Coal Co., 255 Pa. 291, 09 Atl. 869.
In tbe first case cited, following the gen-
eral rule that while. a' consideration of par-
ticular sales in tbe neighborhood will not be
allowed to be offered in chief, we said ques-
tions regarding such- sales are proper in
cross-examination to test the accuracy of tbe
witness, and tbe extent of bis knowledge;
and, following the principle laid down in
Davis v. Penna. R. R. Co., 215 Pa. 581, 64
AtL 774, 7 Ann. Cas. 681, to the effect that
the largest latitude should be allowed on
cross-examination in cases of this class,
state:
"In fact, any and every pertinent question may
be put to him on cross-examination which will
enable tbe jury to place a fair estimate upon
bis testimony as to tbe damages sustained" by
the improvement or taking.
In the Roberts Case we held that witness-
es testifying on behalf of plaintiff to values
could not be cross-examined as to prices at
which other properties sold for in the neigh-
borhood, or at which other properties were
held for sale, and said:
"It is admissible on cross-examination of a
witness to inquire wlicther he knew of certain
sales made of properties in the neighborhood,
only because the value of th« opinion be has ex-
pressed depends in a large degree upon his fa-
miliarity with ruling prices. Except as he have
such knowledge he is not qualified to testify ;
the greater that knowledge tne better is he qual-
ified to speak, and the greater the weight of his
opinion. To introduce tbe prices, however, at
which the properties sold is to suggest to the
jury a comparison which they are unable to
make in order to determine what credit they are
to give the witness. No warrant can be found
in any of our cases for such practice."
The defendant relies on the Roberts Case
as establishing a different rule from that laid
down in the case of Rea v. Pittsburgh & Con-
nellsviUe R. R. Co., supra. This contention
Is without foundation, however, as appears
from the case of Girard Trust Co. v. Phila-
delphia, flupra. In that ease this court held
that an expert who bases bis estimates of
value of property upon prices obtained on
sales of similarly located land in the neigh-
borhood may be cross-examined to test bis
accuracy and knowledge as to the conditions
of these sales, including the prices. It Is
there stated:
"There is nothing in the opinion in the Rob-
erts Case which, in any manner, or to any de-
gree, altered or was intended to change the es-
tablished rules relating to the examination of
expert witnesses; • • • but, generally speak-
ing, even on cross-examination, such a witness
cannot in the first instance be interrogated con-
cerning the prices brought at sales not relied
upon by him in making his original estimate of
value, although, if he has relied on some sales
In the neighborhood, he may be asked, without
mention of prices, if he knew of other sales of
properties similaHy located and whether he con-
sidered them, and, if not, why not. The course
which the investigation may take after that de-
pendi largely upon the dtscl^tion of the trial
judge, constantly keeping in mind tbe fact that
the cross-examination is merely to test the good
faith and accuracy of knowledge of the witness,
and that prices paid at particular sales of other
properties are not, in themselves, evidence of the
market value of the land in controversy."
Probably tbe last case on the subject Is
Llewellyn ▼. Coal Co., supra, where we said
(255 Pa. 296, 99 Atl. 871):
"The rule as established by our cases is that,
while a party cannot bring out on cross-exam-
ination evidence of the price paid for other prop-
erty,' unless the witness has already testified^that
his opinion is based on his knowledge of the
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101 ATLANTIC REPOBTBE
(Pa.
Bales of snch property, yet, if he has so testi-
fied, he may be cross-examined as to prices, for
the purpose of testing his good faith and cred-
ibility."
In the present case defendant was permit-
ted, without objection, to cross-examine wit-
nesses for plalntlfT concerning other sales of
realty, and the prices obtained therefor. In
otTering testimony of this kind it is but nat-
nral that the party should use sales least
favorable to his opponent, and the result of
the cross-examination to test the credibility
and extent of knowledge of the witness as
to such sales might leave the Jury in pos-
session of only a part of the facts forming
the ba^s of the witness' opinion. Additional
facts, such as the prices of other properties
in the neighbortiood similarly situated, may
also have been considered as the basis of the
opinion given, and unless these matters are
placed before the Jurors they are in no posi-
tion accurately to gauge the value of the
testimony. Under such circumstances when
defendant questions the witness regarding
other sales the door for the admission of
such testimony Is open. To what extent the
investigation along this line should be car-
ried is a matter within the sound discretion
of the trial Judge, as was stated in Glrard
Trust Co. V. Philadelphia, supra.
[I] A fSmUiar rule of evidence is that
where a witness testifies to part of a transac-
tion, the opposing party may insist upon the
complete transaction being shown, even
though sudi evidence he otherwise Inadmis-
sible (Postens V. Postens, 8 Watts & S. 127 ;
Hamsber v. Kline, 57 Pa. 397) ; and we see
no reason why that rule should not be ap-
plied in cases of this class. McElheny et al.
V. Pitteburgh, Va. & Charleston Ry. Co., 147
Pa. 1, 6, 23 Atl. 392, relied upon by the trial
Judge was a proceeding to assess damages
for the appropriation of plaintifTs land by
defendant company. In that case in a i>er
curiam opinion It is said:
"The single assignment of error is to the ad-
mission of evidence as to the location and height
of the highway bridge. It is sufficient to say, in
answer to this objection, that ths subject was
introduced by the appellant (defendant) upon
the cioss-examination of the plaintiffs' witness.
If we concede that it would not liave been com-
petent evidence in duef on the part of plain-
tiffs, the defendant having brought it out, the
plaintiSB were clearly entitled to follow it up
by the questions referred to."
In the recent case of Penna. B. E. 0& t.
IHty of Beading, 249 Pa. 19, 94 Ati. 445, the
«ame rule was applied. In proceedings for
the assessment of damages for the taking
of land, a witness called by defendant to
testify to market values, on cross-examina-
tion, was asked whether he had previously
demanded more than a stated sum for dam-
ages to his property, and admitted having
asked a greater amount, and we there held
the court was not chargeable with error in
permitting him, on redirect examination, to
state he recovered a less amount than he had
previously demanded.
While the scope of the testimony in this
case went beyond the confines of former rul-
ings of this court in the admission of testi-
mony relating to prices paid for other prop-
erties similarly situated, the trial Judge did
not abuse his discretion in permitting the
introduction of evidence of prices of sales
In the community other than those brought
out by defendant in cross-examination.
The special instances referred to by defend-
ant might well be cases where the consid-
eration, for reasons with which we are not
concerned, was much less than the market
value of the property. Other elements not
known to the Jury may have entered Into the
transactions and affected the prices. The
rule which excludes evidence of specific val-
ue should therefore require the admission of
testimony showing the prices of all sales in
the immediate neighborhood relied upon by
the witness if the opposite party so wishes,
In order that the real basis of the knowledge
upon which the witness testifies may be laid
before the Jury.
The Judgment Is affirmed.
(inPa.U»
BOLDEN T. OREER.
(Supreme Court of Pennsylvania. April 19,
1917.)
Mabteb and Szbvant «=>417(3%) — Work-
men's ColfPENBATION PBOOBBOINO— PASTOSS
jj^ PPEA L.
Under Act June 2, 1915 (P. L. 754) { 425,
giving an implied right of appeal to any party
interested in a proceeding under the act, an in-
surer claiming to be interested in the proceed-
ing should make itself a party to the record by
seeking to intervene, and where it did not do so,
and the record did not show its interest in the
proceeding, though it had filed an answer for
the employer, its appeal from the award, taken
for the employer, will be quashed.
Appeal from Court of Comm<m Pleas;
Philadelphia County.
Proceeding by Mahala Bolden against Aus-
tin G. Greer, Jr., for compensation under the
Workmen's O>mpen8ation Act. From a Judg-
ment affirming an award by the Wbrkmen's
Compensation Board, the Fidelity & Casualty
Company of New York, Insurer, appeals.
Appeal quashed.
Argued before BROWN, a J., and STEW-
ART, MOSOHZISKBR, FRAZBR, and WAIi-
LING, JJ.
William G. Wright, of Philadelphia, for
appellant A. S. Ashbrldge, Jr„ and Andrew
R. McCown, both of Philadelphia, for appel-
lee.
BROWN, O. J. This appeal Is by the Fidel-
ity & Casualty Company of New York from
the action of the court bdow afflnning an
award by the Workmen's Compensation Board
to an injured employ& If this company bas
any standing aa an appellant. Its right to ap-
«sFor othar ««••■ im ua* topic and KKT-NUMBER In all K*7-NumlMrod DlgmU and IndfXM
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IN BE LOUOBRAK'S ESTATE
817
peal mnst be found In section 425 of tbe act
of June 2, 1915 (P. L. 7S4). By that section
an Implied right to appeal is given to any
party interested in a proceeding instituted
under the act, but it must affirmatively ap-
pear from the record that the party appeal-
ing is so interested. At no stage of this pro-
ceeding did appellant ask to be allowed to
intervene as an interested party. True, it
filed an answer for the employer to the peti-
tion of employ^ for an award of compensa-
tion, and appealed for the employer from the
award; but nowhere in the proceeding, ei-
ther before the referee, the c<Hnpensatlon
board, or the court below, does it appear
that it was an insurance carrier, carrying in-
surance covering the case of the appellee.
Orderly procedure requires that a party
claiming to be interested in a proceeding con-
ducted under the Workmen's Compensation
Act shall make himself a party to the rec-
ord by asking to intervene, unless It affirma-
tively appears from the record itself that he
is actually a party in interest. As the rec-
ord in the case before us discloses no right
of appeal in the appellant, appellee's conten-
tion that its appeal be quashed must prevail.
Appeal quashed.
(267 Pk. EM)
In re LOUGHRAN'S ESTATE.
Appeal of HOUSE OF GOOD SHEPHERD
IN CITY OF PHILADELPHIA et al.
(Supreme Court of Pennsylvania. April 16,
1917.)
EXECUTOBS AND Administbatobs «=9225<8)—
PSKSENTATIOW OF CLAIMS— TlMK.
Claims against an estate for loss resulting
from decedent's breach of trust in misappropri-
ating the proceeds of a mortgage received from
her husband's estate, of which she was life ten-
ant and trustee, not presented until 24 years
after such breach, 9 years after the appointment
of an administrator pendente lite of the trustee's
estate, and 2 years after the appointment of an
administrator d. b. n. c. t. a., were properly dis-
allowed.
Appeal from Orphans' Court, Philadelphia
County.
Appeals by the House of the Good Shep-
herd in the City of Philadelphia and others,
from a decree dismissing exceptions to adju-
dication in the estate of Bridget Lougliran,
deceased. Appeals dismissed.
The facts appear in the following opinion
by Anderson, J., in the orphans' court, sur
exceptions to the adjudication :
Admitting for the sake of the argument that
the laches of the claimants in this case did not
begin until the death of the testatrix, March 20,
1902, ^et the fact remains that at her death
the claimants became at once entitled to an ac-
counting of whatever remained in her hands of
the estate of her husband, and, if they bad been
so inclined, notwithstanding the contest over her
will they could after his appointment on April
25, 1902, have cited the administrator pendente
lite to file an account. Webb's Estate, 20 Wkly.
Notes Cas. 275. For, although it has been held
that an administrator pendente lite cannot dis-
tribute the estate of his decedent, that being
the duty of the executor under the will or the
administrator d. b. n. c. t. a., yet the very pur-
pose of such an appointment is not only to
gather together the assets of the estate, but also
to protect the creditors as well as distributees
and legatees. Park v. Marshall, 4 Watts, 382 ;
Logan's Estate, 21 Pa. Co. Ct. R, 455; Win-
penny's Estate, 11 Phila. 20. Otherwise cred-
itors of a perfectly solvent estate might be kept
out of their just claims for years, awaiting the
determination of litigation over a will in which
they are not interested. The claim of the estate
of John Loughran was not a claim for distribu-
tion, as in Fow's Estate, 20 Phila. 128, but was
the claim of a creditor of Bridget Loughran.
The claimants, however, rested quiescent until
some time in 1911, 9 years after the death of
the testatrix and appointment of the adminis-
trator pendente lite, and 2 years after the ap-
S ointment of the administrator d. b. n. c. t. a.
teanwhile witnesses acquainted with the testa-
trix and her affairs and who could have been
called to testify what she had done with the as-
sets of the trust estate may have died, and the
facts forgotten by those who are still living. It
is for this very reason that the statute of limita-
tions prevents the collection of claims unless
an action is begun within 6 years from the time
they accrue; and that statute, or a rule analo-
fous to it, is enforced in the orphans' court,
ork's Appeal, 110 Pa. 69, 1 Atl. 162, 2 AO.
66 ; Higgins's Estate, 22 Pa. Dist. R. 179, and
cases cited. And while it is true that in an
injunction affidavit sworn to by the testatrix
stated tbat she bad conveyed this mortgage <^
l$6,000 to Terrence Loughran without considera-
tion and for the purpose of securing possession
of the estate, it is also true that a demurrer to
the bill was sustained and the bill subsequently
dismissed with the consent of the plaintiff.
The abandonment of the suit raises the infer-
ence either that the testatrix was mistaken in
her allegation, or that she was repaid the value
of the mortgage. And the fact that at her death
she left no personal property of any Idnd raises
the presumption that that wtiich she had ac-
auir^ from her husband was used by her un-
er the ample powers given her by her husband's
will.
It seems to the court therefore, that it is too
late now, 24 years, alter the occurrence and
many years after her death, to ask to charge her
estate with a mortgage received from her hus-
band's estate simply because in a suit begun
by her 21 years ago she declared that she had
passed it away without consideration, an allega-
tion which according to the record she failea to
substantiate. The claimants have rested on
their rights too long, and the policy of the law
prevents us or the evidence produced from find-
ing the fact tbat Bridget Loughran did not prop-
erly expend the proceeds of the mortgage which
passed to her as life tenant under her husband's
will.
The court dismissed the exceptions. The
exceptants appealed.
Argued before BROWN, C. J., and STEW-
ART, MOSCHZISKKJtt, FRAZER, and WAL-
LING, JJ.
E. Spencer Miller, James Fltzpatrlck, and
A. A. Hirst, all of Philadelphia, for appel-
lants. Henry A. Hoefler and Michael Fran-
cis Doyle, both of Philadelphia, for appellees.
PER CURIAM. These appeals are dis-
missed, at the costs of appellants, on the
opinion of the learned court below dismissing
the exceptions to the adjudication of the ac-
count by the auditing Judge.
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101 AILAKTIO BBPORTBB
(Pa.
<ST Pia. 487)
WILLS et aL t. FISHER.
(Supreme Court of Pennsylvania. April 16,
1917.)
Vendob and Phbchaseb <s=130(8)— Titlk of
VENDOB — PURCnASEB FBOU EXECUTORS.
Where the owner of half of a lot erecting a
huilding upon bis own half and the adjoining
half, and the executors of the owner of the other
half, having power to sell realty, charged them-
selves on their account with cash from the first
owner as proceeds of the house and lot, a find-
ing of a conveyance by the executors was war
ranted, although there was no deed upon record,
so that a party claiming under the first owner
could convey marketable title.
Appeal from Court of Common Pleas, Lan-
caster County.
Assumpsit by Samuel R. Wills and anoth-
er, executors of the will of Mary L. Baer, de-
ceased, against J. Fred F'lsher, to recover the
purchase price of real estate. Judgment
for plaintiffs for $14,579.90, and defendant
appeals. Affirmed.
Argued before BROWN, C. J., and MES-
TREZAT, STEWART, MOSCHZISKER.
and FRAZER, JJ.
T. Roberts Appel, of Lancaster, submitted
for appellant
BROWN, C. J. Under testamentary pow-
er given them, the executors of Mary L. Baer
agreed to sell to appellant property known
as 141 East Orange street, in the city of Lan-
caster, and to give him a good and market-
able title for the same. This lot of ground
has a frontage of 64 feet 4>^ inches. On De-
cember 31, 1828, John Baer acquired an un-
questionable title to the western half of it,
and on the same day John Ehler acquired a
similar title to the eastern half. Mary L.
Baer was the widow of Reuben A. Baer, In
whom there was vested at the time of his
death a recorded title to the western half of
the lot, formerly owned by the said John
Baer, his father. Some years before Reuben
A. Baer's death he erected a large dwelling
bouse <m the lot, which extended over the
eastern as well as tlie western half of it By
bis will he devised all of his real estate to
his widow. In this action, brought to re-
cover the purchase money for the lot sold
to appellant, tds defense in the court below
was that Reuben A. Baer had not acquired a
good title to the eastern half of It, formerly
owned by John Ehler. The title to the oth-
er lialf is not questioned. The learned
judges of the court below, before whom the
case was tried without a jury, held that the
title of Baer to the Ehler part of the lot was
good and marketable, and on this appeal
from the Judgment entered against the pur-
chaser, the sole question is Baer's title to
that part of the lot
No deed could be found from John Ehler
or his executors to Reuben A. Baer for the
eastern half of the lot. Ehler died, leaving
n win dated March 31, 1860. By its terms
he directed that bis wife should have the
rent and income for' life from his "one-sto-
ried brick dwelling bouse and other buildings
and lot or piece of ground belonging there-
to, on the north side of the said Orange
street, between Duke and Lime streets,
bounded on the east by property of E. C.
Relgart, Esq., on the west by property of
John Baer, on the north by a public alley."
This is undoubtedly the property known In
the present controversy as the eastern half
of the Baer lot Ehler directed that, upon
the death of bis widow, it should be sold by
his executors, and by their account, filed in
the orphans' court of the county on Novem-
ber 20, 1869, they charged themselves as fol-
lows, under date of October 3, 1868: "Cash
from R. A. Baer, proceeds of sale one-story
house and lot on Orange St., $2,750." The
court below found as a fact that this charge
"without doubt" related to the eastern half
of the Baer lot, or the property Involved in
this controversy, and this finding has not
been assigned as error. The purchase mon-
ey for Ebler's lot, received by his executors
from R. A. Baer, was included in the bal-
ance shown to be in their bands by their ac-
count, and by the report of an auditor, duly
confirmed, this was distributed, in accord-
ance with the terms of Ebler's will, among
his three sons, whom be had named as hfs
executors. In view of this, no one of theni.
if living, could make any claim to the prop-
erty, and no one making claim under them
can set up any sort of title to it As legatees
under their father's will, the sons received
the proceeds of the sale of the lot, ard com-
mon honesty and the law alike forbid that a
party may have the price of land sold and
the land itself. Johnson v. Fritz, 44 Pa. 449;
Maple V. Kussart, 53 Pa. 348, 91 Am. Dec.
214.
Judgment affirmed.
iSffl Po. 52S>
In re BUDDY'S ESTATE.
Appeal of MOORE.
(Supreme Court of Pennsylvania. AprS 16,
1917.)
WnXS «=5>647 — CONBTBUCTION — EISTATE Db-
VISED.
Under a will bequeathing an estate in trust
to a niece for life, and on her death to pay the
income, in eqaal shares to her five children and
to the children of any of her children that
bad died, such children to take their parent's
share until the death of the last of such niece's
children, and then for distribution between her
grandchildren and the issue of any deceased
grandchild per stirpes, the interest of one of the
niece's children dying in ber mother's lifetime
without issue terminated, and ber executor was
not entitled to her share of the income accruing
between her death and the period of final dis-
tribution.
Appeal from Superior Court
Appeal by Edwin H. Moore, surviving ex-
ecutor of Helen W. Fagan Moore, deceased,
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IN RE BUDDY'S ESTATE
819
from a decree of the Snperior Court, reversing
a decree of the orphan's court, dlamlsslng ex-
ceptions to adjudication In tbe estate of
Henry Huddy, deceased. Decree affirmed,
and appeal dismissed.
From the record it appeared that Henry
Huddy, the testator, died on April 24, 1904,
leaving a will by which he provided, inter
alia, as follows.
"Third — I give and bequeath the following
legacies free of collateral inheritance tax to wit :
"To the five children of my niece, Eliza M.
Tagan, to wit: Emma, Clara, Helen, Edgar
and Benjamin Fagan, each the sum of three
thousand dollars ($3,000).
"Fourth. All the rest, residue and remainder
of my estate, real, personal and mixed, what-
soever and wheresoever situate, I give, devise
and bequeath unto tbe £^deUty Insurance,
Trust and Safe Deposit Company, in trust, to
hold and invest the same^ and to keep the same
invested in such securities as I may leave or
in such other securities as they may deem for
the best interests of my estate, and to collect
the income thereof, and to pay the same unto
my niece, Eliza M. Fagan, for and during all
the term of her natural life. B>om and imme-
diately after her decease, then to pay the said
income in equal shares to her children as above
set forth and to the children of any of her said
children who may be deceased, such children
to take their parents' share, until the death
of the last of my said niece's children. When
that occurs, I direct that the principal of my
estate shall be divided in equal shares between
my said niece's grandchildren and the issue of
any grandchildren who may be deceased, per
stirpes. It is my will that the income so to
be paid to my niece and her children shall be
paid quarterly, and shall not be subject to as-
signment, anticipation, or alienation, nor to the
debts of any of the beneficiaries, but that the
same shall be held to be applied for their main-
tenance and support."
Helen Fagan married Edwin H. Moore, and
died without issue on April 6, 1910, leaving
a will by which she appointed as executor
ber husband, Edwin H. Moore. Eliza M. Fa-
gan, the testator's niece, died on December
27, 1912. The trustee thereupon filed an ac-
count, by the final adjudication of which it
was decreed that the executor of Helen W.
Moore was entitled to one-flfth of the Income
derived from the estate.
The lower court dismissed the exceptions
to the adjudication. Clara H. Fagan ap-
pealed.
Further facts appear in Huddy's Estate,
63 Pa. Super. Ct 34, and in the following
opinion of the superior court by Kephart, J.:
The question raised on this appeal relates to
the nature and distribution of the estate to
which the children of Eliza M. Fagan were en-
titled under the will of Henry Huddy. The
testator gave his estate to the Fidelity Insur-
ance, Trust & Safe Deposit Company to hold
and invest "and to collect the income thereof
and to pay the same unto my niece, Eliza M.
Fagan, for and during all the term of her nat-
ural life. From and immediately after her de-
cease, then to pay the said income in equal
shares to her children as above set forth and
to the children of any of her said children who
may be deceased such children to take their
parent's share, until the death of the last of
my said niece's children. When that occurs, I
direct that the principal of my estate shall be
divided in equal shares between my said niece's
frandchildren and tbe issue of any grandchil-
ren who may be deceased, per stirpes. It is
my will that the income so to be paid to my
niece and her children shall be paid quarterly,
and shall not be subject to assignment, antici-
pation or alienation, nor to the debts of any
of the beneficiaries, but that the same shall he
held to be applied for their maintenance and
support" One of the children of Mrs. Fagan,
Edgar Fagan, died in the lifetime of the tes-
tator. Another child, Helen, who was married
to EMwin H. Moore, died without issue April
6, 1910, after having made a will in which she
appointed her husband an executor. Eliza M.
Fajran, the testator's niece, died December 27,
1912. Tbe contest here arises over tbe dis-
tribution of the income bequeathed to Helen
Fagan Moore. The conclusion of the orphans'
court was that the interest bequeathed to her
was an estate pur autre vie ; that it was vest-
ed and that it continues until the death of the
survivor of the grandchildren of Eliza M. Fa-
gan, and that the case is within tbe interpreta-
tion applied in little's Appeal, 81 Pa. 190,
Leech's Estate, 228 Pa. 311, 77 Atl. 555. and
Hamed's Estate, 54 Pa. Super. Ct 47. It
was held that as the bequests to tbe children of
Mrs. Fagan were "to her children as above set
forth," that is, nominatim, there was no right
of survivorship and that as there was a pre-
sumption against intestacy the gift was absolute
to Mrs. Moore during the life of the sur-
vivor of her nephews and nieces. The view pre-
sented by the appellant is that tbe will ex-
hibits an intention on the part of the testator
to preserve the estate for the grandchildren of
Eliza M. Fagan and their issue until the death
of the survivor of the grandchildren of Mrs.
Fagan when division is to be made per stirpes ;
and in the meantime to provide for tbe support
of his niece and her children for their lives and
that the case is not controlled by any presump-
tion of intent or affected by the doctrine of
survivorship but should be disposed of in the
same manner as was done in Rowland's Es-
tate, 141 Pa. 553, 21 Atl. 735, in which it was
held that the administrator of a deceased son
of tbe testator to whom was bequeathed a
proportionate share of the income of the estate
and who died without issue was not entitled to
the share bequeathed to that son; that the
provision for payment to the testator's chil-
dren or the issue of any who may have died
created two classes: Children of the testator,
and issue of deceased children; and that as tbe
son died without issue he fell out of the first
class and was not represented in the second.
The cases relied on by the court below were all
determined on the ground that no intention of
the testator was disclosed to give any other
effect to the bequest than that of an absolute
gift. It is contended here, however, that there
is a definite expression of an intention incon-
sistent with tbe conclusion that any other per-
son than the niece or her children or the is-
sue of her children can take under the will.
A comparison of this will with that in Row-
land's Estate shows a very close resemblance.
In the latter there was a direction to divide
annually the net balance of income equally per
stirpes and not per capita between the testa-
tor's children and the issue of his children that
may at any time have died leaving issue, until
the death of the survivor of said children, the
principal of the estate to be held until the death
of every one of the testator's children and at
the death of the last of them to be divided equal-
ly per stirpes between the issue then living of
the testator's children. In the pending case the
will provided for the payment of the income in
equal shares to the testator's children who had
been named in a preceding part of the will and
the children of any who may be deceased, such
children to take their parents' share. Payment
was to be made quarterly the fund not to be
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101 ATLANTIC RBPOBTEB
(Pa.
subject to assignment, anticipation and aliena-
tion, nor to the debts of any of tlie beneficiaries,
but was to be held to be applied for tlieir main-
tenance and support No distinction is appar-
ent in the two cases which leads us to a con-
clusion that Rowland's Elstate should not
control the one which we are called on to decide.
The situation of the son in the former case is
identical with that of the appellee here, and
the evidence of intention is indeed stronger in
this case than in the other, for the bequest is
not only protected by a spendthrift's trust, but
is especially appropriated to the maintenance
and support of the legatee. The "beneficiaries"
referred to in the will are no others than the
niece. Mrs. Fagan, ber children, and her grand-
children. These are the persons for whose ben-
efit the property is set apart and the purpose
of the testator is apparent to so control its
destination as to result in their benefit and
advantage exclusively. The other view of the
case diverts it to strangers and subjects it to
possible liability for the debts of those who
are alien to the testator's blood and strangers
to his bounty. If the distributees are treated
as two classes, viz. the children of Mrs. Fagan
and her grandchildren, as was done in Row-
land's Estate, no question of survivorship aris-
es, nor is there an intestacy. The deceased
legatee bad a vested interest in the income for
her own life. The distinction sought' to be
drawn between Rowland's Estate and this case,
because in the former there was provision for
an annual division of the income per stirpes,
is not convincing in view of the fact that a
quarterly division was provided for by the tes-
tator here and it was directed that the grand-
children should take their parents' share, which
is as clearly an arrangement for distribution
per stirpes as if a technical phrase had been
used for that purpose. The fact that payment
was to be made in one case annually and in
the other every three months is not a con-
trolling consideration. In Little's Appeal, su-
pra, there were no words in the will to show
an intent to limit the gift of the income to the
legatee for her own life. There was no gift
over of the income on the death of Mrs. Little,
nor was there anything in the will showing an
intention to provide otherwise than that the
estate should pass to ber legal representatives
at her death. The absence of a gift over and
of an expressed intention as to the use and
enjoyment of the income gave support to the
determination of the court that the gift was
absolute in the first taker pur autre vie. Of
like import is Hildebrant v. Ilildebrant, 42 Pa.
Super. Ct. 190. In Leech's Estate, supra, there
was express provision for payment to the wid-
ow of either of the testator's sons as such son
might by his last will direct and appoint, and
there was no feature of the whole will which
suggested an intention to give less than a full
and absolute estate in the income to the lega-
tees. All of the cases following Little's Ap-
peal are distinguished by the absence of any
purpose of the testator to appropriate the es-
tate exclusively to a class oi legatees, and in
that respect this case belongs to the class of
which Rowland's Appeal and Babcock's f>i-
tate, 18 Pa. Dist. R. 453, are illustrations.
Our conclusion is that by the terms of the tes-
tator's will the distribution was limited to the
children of Eliza M. Fagan and their issue for
the purpose stated in the will and that the
interest of Helen Fagan Moore in the income
terminated with her death. It follows, there-
fore, that the decree should be reversed, and
distribution made accordingly.
Edwin H. Moore, surviving executor of
Helen W. Fagan Moore, deceased, appealed
from the decree of the superior court.
Argued before BROWN, OL 3., and STB5W-
ART, MOSCHZISKEK, FBAZEB, and WAIi-
LING, JJ.
John D. AfcMulUn, of Philadelphia, for ap-
pellant A. H. Wintersteen, of Philadelphia,
for appellee.
PEB CURIAM. The clearly expressed in-
tention of the testator confines the distribu-
tion of the income from his estate to the
children of his deceased niece, Eliza M.
Fagan, and their Issue. This was the cor-
rect conclusion of the Superior Court. Bud-
dy's Estate, 63 Pa. Super. Ct 34. Helen
E^gan Moore, a grandniece, having died with-
out issue, her interest In the Income termi-
nated with her death. Rowland's Estate, 141
Pa. 553, 21 AO. 735.
Appeal dismissed, and decree of superior
court affirmed at appellant's costs.
(m Pa. 503)
TOEK V. MARSHALL.
(Supreme Court of Pennsylvania. April 16,
1917.)
1. Bbplevin «=>4— Seizuhk bt Pubmc Offi-
cial—Quashing Writ.
Under Act AprU 3, 1779 (1 Smith's Laws, p.
470) I 2, a writ of replevin to recover property
seized by a public oiScial is unauthorized, and,
where issued will, on motion, be quashed.
2. Replevin (S=»4 — Seizuxb or Pebsonai.
Property— Bemedt.
Where the state veterinarian, acting on
behalf of the state live stock sanitary board,
seized plaintiff's cattle and established a special
quarantine on plaintiff's land in order to make a
tuberculin test, as directed by Act July 22, 1913
(P. L. 928), and thereafter, without plaintiffa
consent, broke into the field and removed the
cattle to another quarantine station, plaintiffs
remedy, if any, was by an action of triespaas, and
not by a writ of replevin.
Appeal from Court of Common Pleas.
Bradford County.
Replevin by David B. York for cattle seis-
ed by C. J. Marshall, State Veterinarian.
From an order quashing the writ, plaintiff
appeals. AfiQrmed.
Argued before BROWN, C. J., and ME3-
TBEZAT, POTTER, FRAZER, and WAI.,-
LINQ, JJ.
H. K. Mitchell, of Troy, and Harold M.
McClure, of Lewisburg, for appellant David
J. Fanning, Dlst Atty., of Troy, Horace W.
Davis, Deputy Atty. Gen., and Francis Shunk
Brown, Atty. Gen., for ai^ellee.
MESTRBZAT, J. Certain cattle belons-
Ing to the plaintiff being suspected of hav-
ing tuberculosis, defendant, the state veter-
inarian, acting for and on behalf of the state
live stock sanitary board of Pennsylvania,
seized them on July 27, 1916, and established
a special quarantine of the cattle for 60 days
in a field on lands In possession of the plain-
tifT, for the purpose of making a tuberculin
test, as directed by the act of July 22, 1913
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TORE y. MARSHAIJi
821
(P. Ij. 928). On September 4, 1916, the de-
fendant, without the consent or knowledge
of the plaintiff, broke the lock on the gate
leading Into the field In which the cattle
were originally quarantined, and removed
them from the plaintiff's premises to the
stable of one C. W. Mitchell, and there es-
tablished another special quarantine for 4
days, for the purpose of testing the cattle.
The plaintiff, claiming that the defendant
was acting without lawful authority In tak-
ing and retaining the cattle, Issued this writ
of replevin, September 6, 1916, while the cat-
tle were under the second quarantine, and
they were delivered to him by the sheriff.
The Attorney General of the common-
wealth presented a petition to the court be-
low setting forth at length the action of the
defendant In seizing and detaining the plain-
tiff's cattle and the alleged legal authority
therefor, and averring, inter alia, that the
defendant was a state ofllcer, that he was
acting under the authority of the state, and
the cattle were lawfully in his custody, and
that the acts of the plaintiff and offldala in
issuing and serving the writ of replevin were
irregular, improper, and unlawful, and mov-
ed the court to quash the writ, award treble
costs to the defendant, and to grant a rule
on the prothonotary to show cause why an
attachment should not issue against him for
having issued the writ, knowing the same to
be for goods and chattels seized by a public
officer acting under the authority of the
state. The rule on the prothonotary was en-
tered and he filed an answer averring that
there was nothing in the pleadings or the
writ to show and he had no knowledge, that
the suit was being brought against the state
of Pennsylvania or any officer in his official
capacity. The plaintUTs answer denied the
authority of the defendant to remove the
cattle from plaintifTs field and take them in-
to defendant's custody, or to administer tu-
berculin to the cattle for the purpose of test-
ing them, and averred that the writ of re-
plevin would lie against the defendant, al-
though an officer of the commonwealth, as
the defendant bad exceeded bis lawful au-
thority in taking the cattle into his posses-
sion.
The court below declined to award treble
costs to defendant, discharged the rule on
the prothonotary, and quashed the writ.
The learned Judge filed an elaborate opinion
In which he not only assigned bis ' reasons
for refusing treble costs and discharging the
rule and quashing the writ, but also discus-
sed the powers and duties of the state veter-
inarian and of the state live stock sanitary
board under the legislation of the state. The
plaintiff has appealed.
We think the learned court was right in
quashing the writ. Whether the defendant
exceeded or abused the powers conferred up-
on him as state veterinarian Is not an Issue
In this suit, and therefore we express no
opinion on the subject In an appropriate
action, it can be Judicially determined wheth-
er the defendant, as such official, was Justi-
fied under the laws of the commonwealth in
taking and retaining possession of the plain-
tiff's property.
[1] Section 2 of the act of April 3, 1779
(1 Smith's Laws 470; 4 Pnrd. [ISth Ed.]
4136), provides as follows:
"All writs of replevin granted or Issued for
any owner or owners of any goods or chattels,
levied, seized or taken in execution, or by dis-
tress, or otherwise, by any sheriff, naval ofiieer,
lieutenant or sublieutenant of the city of Phil-
adelphia, or of any county, constable, collector of
the public taxes, or other officer, acting in their
several offices under the authority of the state,
are irregular, erroneous and void; and all such
writs may and shall, at any time after tlie serv-
ice, be quashed (upon motion) by the court to
which they are returnable, the said court being
ascertained of the truth of the fact, by affidavit
or otherwise."
The third section of the act provides :
"The court, besides quashing the said writs,
may and shall award treble costs to the defend-
ant or defendants in such writs; and also, ac-
cording to their discretion, order an attachment
against any prothonotary or clerk, who shall
make out or grant any such writ, knowing the
same to be for goods or chattels taken in execu-
tion, or seized as aforesaid."
[2] It is clear that the plaintiff, as the
owner of the cattle in question, was prohibit-
ed from issuing the writ of replevin against
the defendant who seized and held the cat-
tle in his official capacity as state veteri-
narian. The plaintiff does not deny that the
defendant is state veterinarian, and, as such,
is a state officer. It is conceded that in tak-
ing possession of plaintifTs cattle, the de-
fendant was acting in his official capacity,
and hence "under the authority of the state,"
and therefore the writ was "irregular, er-
roneous, and void," and was properly quash-
ed. But it is contended by the plaintiff that
the defendant seized the property without
process issued by any court and without
legal authority, and that he cannot take ref-
uge behind bis office and title to prevent the
recovery of the property in an action of re-
plevin. This contention Is wholly untenable,
either on principle or precedent The ap-
propriate remedy, as is well settled, for an
Illegal or unauthorized act committed by an
officer acting In his official capacity, is an
action of trespass, unless a special remedy
is given by statute. If, as the plaintiff al-
leges, the defendant was without authority
or transcended his authority under the act
of 1913, he was a trespasser; but the plain-
tiff must seek redress for the Injury in an
appropriate action. He cannot set up the
illegality or irregularity of the seizure of his
property in this action; the remedy is tres-
pass. Stiles T. Oriffitti, 3 Teates, 82; Pott
v. Oldwine, 7 Watts, 173; Elklns v. Gries-
emer, 2 Penny. 62; McJunkln v. Mathers, 15S
Pa. 137, 27 Atl. 873.
For the reasons stated, the order quash-
ing the writ of replevin la a firmed.
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822
101 ATIiAMTIO REPORTER
(Pa.
(2S7 P&. SOI)
STANTON et bL T. CITT OF PITTSBURGH.
(Sapreme Court of PennsylTania. April 16,
1917.)
1. Mttnicipai. Gospobations «s>22S(4)— Rxo-
ULATION OF'MaBKJCT HoUBES— AcTS OF AD-
IIINIBTRATITE OfFICEB— EMTECT.
Act March 7, 1901 (P. L. 20), giving cities
of the second class the power to provide and en-
force suitable market regulations as the council
may prescribe places the exclusive custody of
market house property in the council, and the
use and regulation thereof can be effected only
by the corporate act of the council and the
mayor by a duly enacted ordinance, so that the
unauthorized acts of the city's administrative
officers in appropriating to other use real estate
conveyed to it for public market uses on condi-
tion that should it cease to be continued in such
use it should revert to the grantor, could not
divest it of title.
2. Dbeds «s>168— Condition Subbeqiheniv—
FORrEITUBE.
Plaintiffs claiming a forfeiture for breach of
& condition subsequent contained in a convey-
ance of land to a municipality must clearly and
strictly establish the breach, as courts of law
lean against a forfeiture, and as forfeitures
are so odious in equity that they will be en-
forced only in a dear case, and never in a
doubtful case.
8. EJJKCTMKNT ^=>10d— BBEACH OF CONDITION
Subsequent— Vebdict.
In ejectment for land conveyed to a mu-
nicipality on condition that it should use it for
public market purposes, and that if it should
be appropriated to any other use the estate
should revert to the grantor and his heirs,
where it appeared that the property had been
temporarily used as a public playgrounds, with
the permission of the city's administrative offi-
cers, but it did not appear that the city council,
as sole1.v empowered thereto by Act March 7,
1901 (I*. Ia 20), had ever autliorized its an^ro-
priation to such use or ever had notice that It
was being put to such use, a verdict was prop-
erly directed for the defendant city.
Appeal from Court of Common Pleas, Alle-
gheny County.
Ejectment by Lewis Stanton and others
against the City of Pittsburgh for a parcel of
land situated In that city. Verdict for de-
fendant by direction of the court, and Judg-
ment thereon, and plaintiffs appeal. Af-
firmed.
Argued before BROWN, C. J., and MES-
TREZAT, MOSCHZISKER, PRAZER, and
WALLING, JJ.
Asa Lt. Carter, J. Boyd Duff, and Richard
Townsend, all of Pittsburgh, for an;>ellants.
Charles A. O'Brien and B. J. Jarrett, both of
Pittsburgh, for appellee.
BROWN, C. J. James Adams, by deed dat-
ed May 1, 1833, and duly recorded, conveyed
to a municipal corporation known as the
"Burgess and Council of the North Liberties
of Pittsburgh" certain real estate, the title
to which Is involved in this ejectment. The
borough of North Liberties was consolidated
' with the city of Pittsburgh by act of assem-
bly approved April 1, 1837 (P. L. 132). The
grant of the land had annexed to it the fol-
lowing condltioi) subsequent:
"Provided always nevertheless, and It is ex-
pressly covenanted and agreed by the said par'
ties of the second part (the borough) for them-
selves and their succeasois to and with the said
parties of the first part (James Adams and his
wife), their heirs, executors and administrators,
and it is hereby declared to be one of the ex-
press provisions and conditions of this grant
that they, the said parties of the second part,
and their successors, shall and will hold, occupy,
use, possess and enjoy the said described lots
and pieces of ground hereby granted or intended
so to be, with the appurtenances, aa a market
place and for the purposes of a public market,
for the use of the citizens of the borough afore-
said, and the same is hereby appropriated solely
and exclusively for that purpose, aud for no
other purpose whatever: Provided, that the said
parties of the second part arc hereby permitted
to dig and excavate cellars under and for the
use of stalls in the said market, and build, pat
op and erect, over part of Uie market house
hereinafter mentioned to be built and erected on
the lots aforesaid, a suitable and convenient
council chamber for the meetings and the use
of the burgess and council aforesaid, and for
no other purpose whatever, the said chamber to
be constructed so as not to obstruct the free
use and enjoyment of the market place afore-
said; and it is hereby covenanted and agreed
by the said parties of the second part, for them-
selves and their successors, to and with the said
parties of the first part, their heirs, executors
and administrators, and it is hereby expressly
declared to be a further provision and condi-
tion of this grant that the said parties of the
second part will and shall immediately build and
erect a suitable and convenient market house
on the lots aforesaid, to be used as a public
market house, as aforesaid, and that they, the
said parties of the second part, or their succes-
sors, shall and will not bargain, sell, convey,
lease, di-spose of, or appropriate any of the said
described lots hereby granted or any part there-
of to or for any otiier purpose than that of a
public market and the purposes specified, as
aforesaid; and it is hereby covenanted and
agreed, and it is hereby expressly declared to
be another condition of this grant, that if the
said parties of the second part or their succes-
sors sholl at any time hereafter bargain, sell,
convey, lease, dispose of or appropriate the said
described lots hereby granted or any part there-
of, or the buildings thereon erected or intended
so to be, to any person whatsoever or for any
other purpose than that specified, as aforesaid.
then and in such event this indenture and the
estate hereby granted shall cease and become
null and void and of no effect, and the said es-
tate and lots and pieces of eround hereby grant-
ed, with the appurtenances, shall instantly re-
vert to the donor and his heirs. • • • "
The plalntlffa, as heirs of James Adams,
base their right to recover on the ground that
the city of Pittsburgh has committed a breach
of the foregoing condition, in that the land,
has been used for other than market house
purposes, (1) part of It by the Plttsburgji
Playground Association, (2) another part of It,
under lease, for the sale of meats, etc. The
defendant ofTered no testimony, and, at the
close of much evidence produced on the part
of the plalntltTs, the conrt directed a verdict
for defendant by affirming its point asking for
the same. This was followed by Jadgment on
the verdict
[11 No evidence was offered by plaintiffs
showing that the mayor or councils of the
city of Pittsburgh, by any affirmative or
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823
formal act, ever authorized the use of the
land for any other than market house pur-
poses. In strict accordance with the condi-
tions of the deed from Adams, and our review
of the evidence and of the otTers made by
the platntUFs. which were rejected, has led us
to the conclusion of the learned court below,
that the duly constituted municipal author-
ities have done nothing in relation to the
pnqperty in controversy that would work a
forfeiture of the title to it. Nothing more
appears from the evidence than that certain
administrative officers of the city bad permit-
ted the temporary use of part of the proper-
ty by the playground association for play-
ground purposes. But this was not suffi-
cient for recovery by the plaintiffs. The
defendant Is a city of the second class, gov-
erned by the act of March 7, 1001 (P. U 20),
which provides that It shall have the power
to lease, sell, and convey Its real property,
to make all contracts In relation thereto, to
provide and enforce suitable general market
regulations, to contract with any person or
Iiersons, or association of persons, companies
or corporations, for the erection and regula-
tion of market houses and market places, on
such terms and conditions, and in such man-
ner as councils may prescribe. ThU legisla-
tion places the custody of market house prop-
erty in the exclusive control of councils, and
the disposition, regulation, and use of the
same can be effected only by the corporate
act of councils and the mayor, by an ordi-
nance duly enacted. There is no proof what-
ever that the councils authorized the acts
upon which the plaintiffs rely for recovery,
either directly or by any delegation of power
to an administrative officer ; and it cannot be
successfully contended that the unauthorized
act of an administrative officer of a municipal-
ity can divest its title to valuable property.
[2] As plaintiffs are claiming a forfeiture,
they must clearly and strictly establish It.
Courts of law lean against it, and it is so
odious in equity that it will be enforced only
in ft clear case, and never in a doubtful one.
Newman v. Ruttcr, 8 Watts, 51; McKIssick
V. Pickle, 16 Pa. 140; Pickle v. McKIssick,
21 Pa. 232; Wick r. Bredln, 180 Pa. 83, 42
Atl. 17; Moss V. Pittsburgh, 203 Fed. 247,
121 C. C. A. 445.
[3] By the terms of the condition in the
grant a forfeiture can be declared only If the
dty of Pittsburgh shall "bargain, sell, con-
vey, lease, dispose of, or appropriate the said
described lots hereby granted, or any part
thereof, or the buildings thereon erected or
intended so to be, to any person whatsoever,
or for any other purpose than that specified
as aforesaid." As already stated, nothing is
to be found in the evidence submitted by
the plaintiff showing that the city of Pitts-
burgh had violated the foregoing condition,
and no rejected offer of the plaintiff would
have shown that It had done so. Though
the record is voluminous and the assignmentt
of error very numerous, the whole situation Is
thus well briefly summarized by the learned
court below In its opinion denying the mo-
tions for a new trial and for Judgment jion
obstante veredicto:
"The plaintiffs' case then rests en an attempt
to show that the councils and mayor had notice
of and ratified the temporary and nnauthorizod
use, and thereby committed a breach of the con-
dition of the deed and a forfeiture of the title.
Much latitude was given in the reception of evi-
dence in order to show notice, if any, to cooncil
and the mayor or of any affirmative act on the
part of the proper constituted authority of the
city that would show any ratification of the
temporary use of the land for playground pur-
poses. The evidence shows that no notice of
any kind was given to or received by council
for the use of the land for playground pur-
poses or that any action was ever taken in re-
lation to the use of the land for other purposes
than those of a market house. The only amrma-
tive act of the council which had any indirect
twnring on the issue involved was that council
made general appropriations in quite large
amounts for recreation grounds or recreation
purposes: for example, in the year 1010 the
sum of $65,610 was an item in the general ap-
propriation bill for recreation grounds. No ap-
propriation was ever made bf council to any
playground association. The city had a number
of recreation grounds and they were located in
many different places within the city limits.
The only specific act in relation to the matter
of appropriations and to the playground asso-
ciation is the drawing of small amounts on re-
quest of the playgroand association that the con-
troller considered, and that actually was, a
trespasser on the city property. There is no
evidence in the case that council had any knowl-
edge when the appropriations were made that
any part of the Adams market property was be-
ing used for playground purposes. The burden
was on the plaintiff to snow that this particu-
lar playground was induded as one of the par-
ticular subjects of the appropriation for. recrea-
tion grounds. The city defendant cannot be
l)ound by an unauthorized act of the dty con-
troller or his interpretation of his authonty In
paying out money on a question affecting the
city's right to its real estate which would cause
a forfeiture thereof. The condition of the deed
is 'that if the said parties of the second part
or their successors shall at any time hereafter
bargain, sell, convey, lease, dispose of or ap-
propriate said described lots, or any part there-
of, to any other person or for any other purpose
than specified. * * *' The plaintiffs are
seelting to enforce a forfeiture for a breach of
the above conditions. We find no evidence or
exclusion of offers of evidence, if received, that
would canse a submisRion to a Jury, or that
would or ought to sustain a verdict for plain-
tiffs."
Judgment affirmed.
(1B7 P«. 607)
STAMFORD ROLLING MILLS CO. t. KRIB
R. CO.
(Supreme Court of Pennsylvania. April 16,
1017.)
1. Affeai. and Bbbob «=>99— Dscisions Rk-
viswABLK — Dissolution or Fobbioh At-
tachment.
An appeal from an order dissolving a for-
eign attachment will be entertained where tiie
facts are not in dispute and the question pre-
sented is purely one of law.
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101 ATLANTIC RJBPORTBE
(Pa.
2. Attachment «=»47(2)— Bubden of Pboof—
Requisite Facts.
The burden of proof is upon an attaching
c;:editor to establish the facts necessary to main-
tain the attachment.
3. Attacrubnt €=363 — Goods in Tbansit —
Statute.
Where goods have been shipped under a ne-
gotiable bill of lading, they are not subject to
foreign attachment while in transit, or after
their stoppage in transit, whether the carrier
continues to hold them as carrier, or as a ware-
hoDSpman or bailee, as Act March 11, 1909 (P.
Ii. 24) $ 25. relating to warehouse receipts, and
Act May 19, 1915 (P. L. 654) t 39, relating to
the sale of goods, are identical in effect with
Act June 0, 1911 (P. L. 843) | 24, expressly pro-
tecting such goods from attachment, unless the
bill of lading has been surrendered or its nego-
tiation enjoined.
4. CoMUEBCE ®=»81"— Attachment— Goods in
Iktebstatb Commerce— State Laws.
Act June 9, 1911 (P. L. 843) | 24, providing
that where goods are delivered to a carrier and
a negotiable bill of lading is issued they cannot
thereafter be attached while in the carrier's
possession by garnishment or otherwise, unless
the bill is first surrendered to the carrier or its
negotiation enjoined, docs not interfere with in-
terstate commerce in respect to the attachment
of cars within the state, though engaged in in-
terstate commerce.
Appeal from Cotirt of Common Pleas, Sus-
quehanna County.
Action by the Stamford Boiling Mills Com-
pany against Jacob L. Lipton, doing business
under the name of the Acme Iron & Steel
Company, with writ of foreign attachment
against the Erie Kallroad Company, gar-
nishee. From an order dissolving the at-
tachment, plaintiff appeals. Affirmed.
Argued before BBOWN, C. J., and MES-
TREZAT, POTTEJB, FBAZER, and WAL-
LING, JJ.
R. W. Archbald, of Scranton, J. T. Brinton,
of Philadelphia, and E. R. W. Searle, of
Montrose, for appellant William A. Skinner,
of Susquehanna, for appellee.
POTTER, J. The Stamford Rolling MUs
Company, a corporation of the state of Dela-
ware, issued a writ of foreign attachment In
the court of common pleas of Susquehanna
county. Pa., against Jacob L. Lipton, doing
business as the Acme Iron & Steel Company,
defendant, and the Erie Railroad Company,
as garnishee. It appears that on May 23,
1916, the Acme Iron & Steel Company shipped
from Cleveland, Ohio, over the New York,
Chicago & St. Louis Ballway and Its connect-
ing lUies a carload of "copper scrap," consign-
ed to Its own order at Sprlngdale, Conn.,
directing that notice be given to plaintiff at
Its New York office. The railroad delivered
to the shipper what is known as an order bill
of lading for the contents of the car. The
bill of lading, with a sight draft attadied,
was presented to plaintiff on May 25, 1916,
but payment was refused. Thereupon de-
fendant directed the carrier to stop the ship-
ment in transit, and on or about June 10,
1916, the car was stopped at Susquehanna,
Pa., while In possession of the Erie Railroad
Company. On June 2S, 1916, the present
writ of foreign attachment was Issued to at-
tach the contents of the car, and the railroad
company was summoned as garnishee. Upon
petition of the latter, a rule to show cause
why the attachment should not be dissolved
was granted, an answer ffied and depositions
taken, and an order made dissolving the at-
tachment on the ground that the bill of lad-
ing was negotiable, and that, as the bill had
not been surrendered to the carrier or its
negotiation enjoined, the goods coold not be
attached.
[1] Plaintiff has appealed, and counsel for
appellee has filed a motion to quash the ap-
peal on the ground that it does not He to an
order dissolving a writ of foreign attachment.
If It were necessary to review the decision
of the court below upon any question of fact,
this appeal would not be entertained. But
the fifth assignment of error brings before
us the entire proceeding and shows the basis
of the court's action in dissolving the at-
tachment. There Is no conflict as to evi-
dence, no question as to credibility of wit-
nesses, no fiicts in dispute. The question
presented Is purely one of law, and as sucb
it may be reviewed. By plaintiff's answer
it Is expressly admitted that the bill of lad-
ing was a negotiable Instrument Being
negotiable, section 24 of the act of June 9,
1911 (P. L. 843), protects the goods which it
represents from attachment or garnishment,
"unless the bill be first surrendered to tlie
carrier or its negotiation enjoined." Tbe
garnishee avers In Its petlUon that the bill
has not been surrendered to it and that its
negotiation has not been enjoined. Tlila
averment is not denied by the answer, and
there is neither allegation nor proof that it
has been surrendered or that Its negotiation
has been enjoined. The burden of proof was
upon the attaching creditor to establish the
facts necessary to maintain the attachment
[2, 3] Whether the garnishee, after the
stoppage in transit of the goods, continued to
hold them as carrier, or was then to be re-
garded as a warehouseman or mere bailee,
the result Is the same. The act of March 11,
1909 (P. L. 24) S 25, relating to warehouse re-
ceipts, and the act of May 19, 1915 (P. L. 654)
I 39, relating to the sale of goods, both con-
tain provisions on the subject under discus-
sion which are identical with the provision
of the act of 1911. The language of tbe
statutes Is plain, and leaves no room for con-
struction. Unless the bill of lading has been
surrendered or its negotiation enjoined, the
goods are not subject to attachment The
court below was therefore entirely right In
dissolving the attachment
[4] There Is no merit In the suggestion that,
as this was an Interstate shipment the effect
to be given to the bill of lading is a question
of general law. Even If this were so, we do
not know that It would make any difference.
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^5
In tbe absence of a atatnte protecting the
carrier under such circumstances, plain
'Common sense would prerent the surrender ot
the goods under attachment while a negotia-
ble bill of lading for them was outstanding,
which might convey title to the goods to a
third party. But the plaintiff In this case
«ought the aid of a state court, in pursuance
■of a purely statutory remedy, and is bound
by the terms of the state law. As a matter
of fact, no federal statute has been cited
which gives to a creditor the right to a writ
■of foreign attachment. Moreover, our act
■of Idll in no way Interferes with interstate
■commerce. On the contrary, its ^ect is to
prevent interference which might otherwise
be attempted by attachment of goods In
transit. In Penna. R. R. Co. v. Hughes, 191
U. S. 477, 488, 24 Sup. Ct 132, 135 (48 U Ed.
^268), Mr. Justice Day said:
"It is well settled tbat the state may make val-
id enactments in the exercise of its legislative
power to promote the welfare and convenience
■of its citizens, although in their operation they
may have an effect upon interstate traffic."
In Davis v. Cleveland, Clndnnatt, Chicago
A St Louis Ry. Co., 217 U. S. 167, 177, 30
Sup. Ct 463, 469 (54 L. Ed. 708, 27 L. R. A.
[N. 8.] 823, 18 Ann. Cas. 907), It was ex-
pressly held that cars engaged In interstate
commerce may be attached under state laws.
Mr. Justice McEenna said:
"It is very certain that when Congress en-
acted tbe Intel-state Commerce Law (Act Feb.
4, 1887, e. 104, 24 Stat 379) it did not intend
to abrogate the attachment laws of the states."
Counsel for appellant also argues that tbe
restriction applies only to goods In transit,
and tbat if stopped, as they were In this case,
tbe protection ceases, and they become liable
to attachment The statute, however, ap-
plies so long as the goods are in the posses-
sion of the carrier. The language is:
"If goods are delivered to a carrier by the
■owner, • • • and a negotiable bill is issued
for them, they cannot thereafter, while in the
possession of the carrier, be attached by gar-
nishment or otherwise."
Aside from this, as previously stated herein,
even if the capacity in which the carrier
holds tbe goods be changed, by tbe stoppage
In transit to tbat of warehouseman, or of
bailee generally, the acts of March 11, 1909,
and May 19, 1915, above cited, would continue
tbe exemption.
The assignments of error are overruled,
and tbe Judgment is affirmed.
{in Pa. si»
UcOINLET et aL V. PHILADELPHIA ft R.
RT, CO.
<Snpreme Court of Pennsylvania. April 16.
1917.)
1. Railboaos <S=>282(11) — Neouoenck —
Shoohno of Tbespasseb— Evidence.
In an action against a railroad for injury to
a boy negligently shot by defendant's special of-
ficer while stealing a ride on a freight train,
case held for the jtury.
2. Daiiaoxs «=»99— Isjuxt to iNrAira Son—
Amount.
The father of the injured boy, suing jointly
with the son, was entitled to recover compensa-
tion for the loss of the son's wa^es between the
time of the injury and his majority.
3. Dauaoes <3=326, 172(1)— Pkbsonai. Iitjubt
— Fbtubb Eabninob.
A minor suing for personal injury may re-
cover for future loss of earnings, in determining
the amount of which tbe jury may consider what
he had earned after the accident and before his
disability became permanent
4. Tbial «=»27^lNsTBuoTiONs — Objection.
Counsel must call the court's attention to an
erroneous reference to any fact stated in its
charge, so that it may be corrected before the
jury retires, and otherwise it cannot be taken
advantage of.
Appeal from Court of Common Pleas, Phil-
adelphia County.
Trespass by James M. McGinley, by his
father and next friend, Neil McGinley, and
by Neil McGinley, against the Philadelphia
& Reading Railway Company, to recover
for personal injury. Judgment for plain-
tiffs, and defendant appeals. Affirmed.
From tbe record It appeared that on Sep-
tember 16, 1914, three boys decided to go
to Tamaqua to seek work. They planned to
ride a certain freight train without paying
their fares. Tbey entered tbe train yard by
tbe street entrance, passed the railroad
watchman, asked him about the train, walk-
ed to a nearby point in tbe yard and awaited
tbe train. Tbey boarded It while moving,
and tbe train did not stop until halted a few
minutes later to take off the boys. Their
intention to board the train or their presence
on it were known at once. The railroad of-
ficers were notified by telephone that the
boys were on it, and were ordered to take
them off. The man who did the shooting
boarded the train at or about the same time
they did. When the train stopped a few
minutes later, the boys were found on tbe
bumpers between different cars some distance
apart Upon seeing one of tbe boys the of-
ficer who did the shooting drew his revolver
and told that boy to come down. He did so.
In company with the second officer he walk-
ed that boy forward, and, seeing the plaintiff
between the two cars, said, "Here is another
fellow," and without further word pointed
his revolver at tbe plaintiff and sbot him as
he turned to get off the car on the opposite
side. There was no felony, either comir.it-
ted or Intended, nor any evidence of suspi-
cion of one. Tbe charge preferred by the offi-
cers tnunediately afterwards was train
riding as to one and as to the plaintiff carry-
ing concealed weapons. The bullet Altered
the boy's hip joint Operation failed to re-
move It, and he was maimed for life. He
was 19 years old at the date of the accident
His earning capacity was almost totally de-
stroyed. The trial Judge charged the Jury
in part as follows:
If there is to l>e a verdict against the defend-
ant the father is entitled to receive such a sum
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Un ATLANTIC REPORTEK
(H.
of money as vill make np to him for the 1o«m of
such wages as his son probably would have made
between the time of the accident and his twen-
ty-first birthday, November 18, 1916. If there
is to be a verdict against the defendant, you
may, besides giving the young man compensa-
tion for the pain and suffering up to the present
endured, and such as may come on him in the fu-
ture, make allowance in respect to diminution of
his earning power ; that is, you may compensate
him for his future loss of earnings. As to what
those will be the case is not very clear. He may
live to be an old man ; be may be cut down in
his prime; he may die young. Just what be
would earn as a machinist's helper — I think that
was his original occupation — I cannot say. You
have heard what the witnesses have said on that
point and will take it into account.
Verdict for plaintiff, James M. McGlnley,
for 110,000 and for Nell McGlnley for $1,-
000 and Judgment thereon.
Argued before BROWN, C. J., and STEW-
ART, MOSCHZISKBR, FRAZER, and WAIr-
LING, JJ.
William Clarke Mason, of Philadelphia, for
appellant J. Morris Xeakle, of Philadel-
phia, for appellees.
PER CURIAM. [1-4] This case was for
the Jury, and the learned trial Judge would
have erred if be had afflrmed defendant's
point asking that a verdict be directed in Its
favor. Complaint is made of certain por-
tions of the charge as inaccurately referring
to the testimony. If any fact was Inaccu-
rately or erroneously stated In the instruc-
tions to the Jury, it was the duty of counsel
for defendant to call the trial Judge's atten-
tion to bis inadvertence, that the same might
be corrected before the Jury retired. Nowlla
T. Hurwltz, 232 Pa. 154, 81 Atl. 143. We
discover no error In the trial Judge's com-
ment on the testimony, as he left it to the
Jury to freely determine what the real facts
were, and to return their verdict in accord-
ance therewith. While there was no evi-
dence of what the plaintiff bad earned be-
fore he was injured, there was testimony
that after the accident, and before his disa-
bility became permanent, he was earning $8
per week. That was sufficient for the in-
structions which are the subject of the
fourth and fifth assignments of error. The
Jury could well have found that the plain-
twrs earning capacity before he was crippled
was at least equal to what it was after-
wards.
The assignments of error are overruled,
and the Judgment is afflrmed.
(267 Pa. 547)
PRENDERGAST et aL v. WALLS et aL
(Supreme Court of Pennsylvania. April 16,
1917.)
NtriSANOB «s>61 — Gakaob is Rbbidbmtial
DisTBicT— Injunction.
The operation of a public service garage will
be enjoined where it appears that the district
was exclusively residential, that the garage was
within a short distance of large church edifices.
a parochial school and modem houses, that it
will necessarily create noisn, odors, and dan-
gers, interfere with church services, reduce the
values of surrounding property, increase the in-
surance rate, and tend to ue removal of jiersons
living in the neighborhood.
Appeal from Court of Common Pleas, Phil-
adelphia County.
Bill in equity by Edmond F. Prendergast
and others against Walter Walls and others
to enjoin the erection and maintenance of a
garage. From a decree for plaintiffs, defend-
ants appeal. Appeal dismissed, and decree
affirmed.
It appeared by the record that the defend-
ants proposed to erect a one-story building
for automobile garage purposes at the south-
west comer of Thirty-Eighth and Chestnut
streets. In the dty of Philadelphia. The
complainants were the owners of property In
the neighborhood.
The essential facts appear in the six-
teenth, twenty-first, twenty-second, api
twenty-third findings of fact by the chancel-
lor as follows :
"16. The neighborhood immediately surround-
ing the place where the proposed garage is to
be erected is exclusively residential in charac-
ter. It is exceptionally quiet, well adapted for
persons desiring homes of modest size and with-
m comparatively short distance from the central
portion of the city. Each of the said churches
are imposing edifices of magnificent proportions
and represent the expenditure of much labor and
wealth. Nearly all of the houses in the region
are modem in congtructi(Hi, some of them with
extensive lawns, large and architecturally beau-
tiful. There are no manufactories or factories
in the immediate vicinity. The general condi-
tions were aptly described by Mr. Carson whoi
be testified that it was a 'serene, peaceful, and
delightful region for residences of people wish-
ing to be near to the center of the city who have
a dislike for railroad trains or long rides on the
elevated.' The sentiments inspired by their
homes and their religious associations, the desire
to preserve and protect their dear ones and those
under their charge in the enjoyment of the peace
and safety which they presently possess alone
actuate theplaintiSs in the conduct of these pro-
ceedings. The defendants' motives do not appear
of record. There are many less expensive loca-
tions in that vicinity on the market which could
be used as a public service garage without con-
stituting a nuisance and without injury to oth-
ers."
"21. If this garage is erected and operated
according to the plans and specifications, there
will necessarily be noises, odors, and dangers.
Automobiles will be passing in and out of the
said garage intermittently during the entire day
and night ; there will be pounding upon metals :
testing of the engines at varying rates of speed
to which will be incident the continuooa ex-
plosions of gasoline in the motors of varied in-
tensity; speeding and racing of motors. These
noises will occur during the day and the night
and would be heard for various distances, de-
pending upon the then existing conditions ; the
odors from the gasoline and oils will be dis-
agreeable and offensive; smoke will be emitted
from the motors of the automobiles in varied
quantities depending upon the kind of machines,
the skill of the operator, the atmospheric and
other conditions, all of which would be taon
or less noticeable In the immediate neigfalxuv
hood and unpleasant to the persons with whom
it came in contact. The entrance and exit of
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the aatomobiles over the Thirty-Bishth street
pavement into the garage during the daj and
night 'wili be dangerous to the pedestrians (es-
pecially the children) passing along those streets.
It will ex necessitate (particularly in winter) the
more or less continuous sounding of horns, noise,
and confusion. All of these matters would seri-
ously and i>ernianently interfere with the peace-
ful _ enjoyment of the plaintiffs' homes and the
residences of the tenants of the properties be-
longing to th« plaintiff Penfield; the lives and
safety of the children attending the parochial
schools would be endangered ; the worshipping
in the several churches hereinbefore specifically
mentioned, more particularly the St. James
Church, would be seriously interfered with ; the
beauty of the services marred. The conduct of
the garage would result in the congregating of
a number of persons In and about the property.
tntis would nave a pernicious effect upon the
-children who pass and repass the garage. The
storage of SOCT gallons of gasoline in the ground
(the top of the tank being two feet below the
ground), the storage of the automobiles, the
keeping of the qnantities of oUs necessary for
the operation and lubrication of the automo-
biles, smoking by attendants and others, the use
of electric current near the gasoline and oils, the
adjusting of carburetors, replacing of tires, mov-
ing and washing of the cars at night, back-fire
of motor cars, explosions of gasoline, will all
result in added danger from conflagration. All
of which will have the effect of reducing the
values of the properties surrounding the garage
and will tend to the removal of the tenants pres-
ently living in the neighborhood. It will in-
crease the rates of insurance, will impose addi-
tional burdens upon the surrounding properties,
and will decrease the net return therefrom.
"22. Defendants were duly notified that the
erection and maintenance of a garage upon the
premises mentioned would be objected to, and
that proceedings would be instituted to restrain
anch erection.
"23. The maintenance of a public service ga-
rage at the southwest comer of Thirty-Eighth
and Chestnut streets will be a nuisance, dis-
tinctly prejudicial to the welfare, comfort, safe-
ty, and peace of the persons residing in the
immediate vicinity, to those attending the schools
and to those worshipping in the said churches."
Tbe chancellor reached the following con-
clusions of law:
1. Plaintiffs are entitled to the free use and
enjoyment of their respective properties without
ondue interference by the defendants. To the ex-
tent to which sucli use is denied or interfered
with by the defi'iidants, they create a nuisance
against which plaintiffs are entitled to equitable
relief.
2. Tbe maintenance of a public service gtaeago
at the southwest corner of Thirty-Eightn and
Chestnut streets will unreasonably and unduly
interfere with the use and enjoyment by the
plaintiffs of the properties respectively owned
and leased by them.
3. Plaintiffs are entitled to an injunction per-
petually restraining the defendants from main-
taining a public service garage at the southwest
corner of Thirty-Eighth and Chestnut streets,
in the city of Philadelphia.
The lower court entered a decree perpet-
nally restraining defendants from maintain-
ing or conducting a public service garage at
the locality in question, and placed the costs
of tbe proceeding upon the defendants. De-
fendants appealed.
Error a.sslgned, among others, was the de-
cree of the court i
Argned before BROWN, C. J., and STEW-
ART. MOSOHZISKER, FRAZER, and WAL-
LING, JJ.
James W. Laws, Elton J. Buckley, and
Frederick J. Geiger, all of Philadelphia, for
appellants. Thomas Raebom White, Hamp-
ton L. CarBon, A. A. Hi]:st, Joseph Carson,
John P. Connelly, Meredith Hanna, Fred-
erick C. Newbourg, Jr., and William B. Bo-
dine, Jr., all of Philadelphia, for appellees.
PER CURIAM. This appeal is dismissed
and the decree affirmed, at appellants' costs,
on the sixteenth, twenty-first, twenty-second,
and twenty-third facts found by the learned
chancellor below, which were followed by
three correct legal conclusions.
(S7 Fa. rm
In K McGAULEX'S ESTATEL
Appeal of LOVE.
(Supreme <3onrt of Pennsylvania. April 10,
1M7.)
1. Wrixs <S=>634(9) — Constbuctiow of De-
vise— VESTEn Remaindeb.
Under a will bequeathing a life interest to
his widow and directing that on her death the
balance be converted into money and divided
into three equal parts and bequeathing one of
such parts to a sister if living, or, if deceased,
then in equal parts to her children and to the is-
sue of such of them as were then deceased, such
issue to take such part as their parent would
have taken if living, and where the sister died
during the lifetime of Uie life tenant leaving two
children, the one who predeceased the life ten-
ant took a vested interest.
2. Wills «=s>030(1)— Constbuctiow or Leq-
ACT— Vested Rkicainder.
Where a legacy is payable at a future time
certain to arrive and not subject to conditions
precedent, it is vested where there is a person in
esse at the testator's death capable of taking
when the time of payment arrives, although his
interest is liable to be defeated by his own death.
3. Wills €=>630(1)— Bequest to a Class-
Contingent oB Vested Reuaindeb.
Where the bequest is to a class, tbe vesting
is not postponed because of an uncertainty as to
who may constitute the class at the time fixed
for the enjoyment of it; and, if there is a pres-
ent right to a future possession which may be
defeated by a future event contingent or certain,
there is a vested estate.
Appeal from Orphans* Coart, Philadelphia
(bounty.
Robert J. Love administrator of the estate
of Rebecca N. Love, deceased, appeals from
a decree dismissing exceptions to adjudica-
tion in the estate of John McCauley, de-
ceased. Reversed, with order for distrlba-
tlon.
Argued before MESTRBZAT, POTTEHl,
STEWART, MOSCHZISKER, and FRA-
ZER, JJ.
Thomas F. McMahon, of Philadelphia, for
appellant. Bayard Henry and Thomas
Stokes, both of Philadelphia, for appellee.
STE:warT, J. [1] The appeal in this case
raises the single question whether under the
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828
101 ATLANTIC REPOKTEB
(Pa.
will to be considered the gli?t to the children
of testator's niece, Anna Jane White, consti-
tuted a vested or contingent remainder. The
orphans' court held it to be contingent, and
made distribution accordingly. The appel-
lant insists this was error. The portion of
the will that gtves rise to the controversy is
found in the latter part of the sixth section,
wherein testator makes disposition of a third
part of his residuary estate not previously
disposed of in the will, and which reads as
follows:
"And the remaining third part or share of the
proceeds of my residuary estate I give and be-
qneath to my sister, Anna Jane White, if liv-
ing, or her children if she be then deceased, in
equal parts or shares, and to the issue of such
of them as may then be deceased, such issue tak-
ing, however, such part or shares as his, her or
their parent or parents would have taken if liv-
ing."
By a previous clause In this same section
of the will, testator had given his wife a life
interest in his entire estate, and had direct-
ed that upon her death the entire balance
then remaining of his estate should be con-
verted into money, and divided into three
equal parts. He then proceeds to dispose of
these parte or shares separately. We are
concerned here only with the third given to
Mrs. White or her children.
The testator died In 1897. The widow, the
life tenant, died in 1915. Mrs. Anna J.
White, the sister to whom, if living, was
given the entire one-third, died in Novem-
ber, 1809, leaving to survive her two chil-
dren, Elizabeth W. Weaver and Rebecca N.
Love, the latter of whom. Intermarried with
Robert J. Love, died August 24, 1903, Intes-
tate, without issue, leaving to survive her a
husband, Robert J. Ix)ve, to whom letters of
administration on the estate of his deceased
wife were granted. On this state of facts
the learned auditing Judge held that Mrs.
Love's right to take was contingent on her
surviving the life tenant, and that, having
predeceased the life tenant, the latter having
survived until 1915, she took nothing under
the will. In this conclusion we cannot con-
cur. It is In effect importing into the gift
to the children, without any warrant what-
ever, a condition which the testator attached
to and made Inteparable from the gift to the
mother, namely, that she was to take at the
termination of the life estate If she was then
living. What reason can there be for Infer-
ring that It was testator's intent to subject
this alternative gift over to the children to
a like condition; that is, survivorship at the
expiration of the life tenancy? To do so
would be in defiance of accepted rules of
construction and make another will for the
testator than that he himself published and
declared. The testator here attached such
condition to the gift to the mother in un-
mistakable terms, showing that he knew
how to effect his purpose where that purpose
was to make the gift contingent upon sur-
vivorship. The fact that he coupled no such
condition as "if then living," to the gift over
to the children is quite as conclusive that he
did not intend to subject It to similar con-
tingency. Besides, the gift to the children
was as substantive and Independent as the
gift to the mother which failed, and there-
fore it Is to stand unaffected by the restric-
tion or contingency that attached to the for-
mer. 2 Jarman on Wills, | 447. The gift to
the parent having failed because of her
death during the continuance of the life es-
tate, this feature of the will calls for no
further consideration, and we may pass at
once to a consideration of the alternative
gift "to her children, in equal parts or
shares, and to the issue of such of them as
may then be deceased, such issue taking,
however, such part or shares as his, her, or
their parent or parents would Iiave taken If
living." It is upon the words "if living" and
"if she be then deceased" that the appellee
relies as showing that it was the testator's
intention to restrict the class of children to
such as might be living at the determination
of the life estate, and sndi issue of any de-
ceased child as might then be living. Inas-
much as Mrs. Love died during the continu-
ance of the life estate, and without Issue
surviving, it is argued that the gift to her,
as one of a class, was Intended by the testa-
tor to be contingent upon her living at the
period of distribution, or upon her having
left issue who liad survived such period.
However Ingenious the argument that would
derive from the words especially urged upon
our notice an intention to make the gift to
the issue contingent, it must fiill of its pur^
pose when it is considered that what Is re-
quired in such case is not that the words of
the will admit of a possible or even a rea-
sonable inference that the testator Intended
a contingent remainder, but that such inten-
tion should appear plainly, manifestly, and
indisputably. Certainly it cannot be con-
tended that the words here employed, in the
connection in which they appear, are so de-
monstrative of a purpose to make the gift to
the children contingent upon their survival,
as to exclude necessarily a contrary purpose,
especially in view of the fact that testator
knew how to make such a gift contingent In
an indisputable way, as is shown by the gift
that failed, the gift to the mother "if Uv-
ing," and failed to attach any such provlsloo
in the gift to the children; and In view of
the further fact that if such construction is
to prevail, it necessarily results that testa-
tor died intestate as to such interest as Mrs.
Love would have taken had she survived,
seeing that there is no gift over should she
not survive to take, and no disposition is
made of that share. There is no suggestion
that Intestacy was Intended. WhUe It is
true that the law always seeks to give ef-
fect to a testator's purix>se, and insists tliat
such purpose is to be derived from the lan-
guage he has employed, it is no less true
that the law favors vested remainders, so
much so that it vrill presume such was tbe
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MoCOAOH ▼. SHEEHAN
829
Intention of the testator, except as the lan-
guage shows Indisputably the contrary In-
tent. It necessarily follows that, even grant-
ing the contention of appellee so far as to
admit that the language of the testator Is
not Inconsistent with the purpose to make
the gift to the children contingent. It Is, nev-
ertheless, because of what we have Indicated
as sufficient. If not conclusive, reason for de-
riving a contrary Intention, the real effect Is
to be determined by applying the established
rules of construction. So familiar are these
rules to the professional mind that It would
lengthen this opinion to no purpose to dte
support for the authority of such as we shall
state, and which we regard as controlling
here.
[2] Where a legacy Is made payable at a
future time, certain to arrive, and not sub-
ject to condltlwi precedent. It Is vested
where there is a person In esse at the time
ot the testator's death capable of taking
when the time arrives, although his Interest
be liable to be defeated altogether by his
own death.
[3] Where a bequest Is to a class, the vest-
ing Is not postponed because of uncertainty
as to who. If any, may be the constituents
of the class at the time fixed for the enjoy-
ment of it.
If there Is a present right to a future pos-
session, though that right may be defeated
by some future event, contingent or certain,
there Is nevertheless a vested estate.
These rules are applicable to and must
govern this case. They have been applied In
cases almost without number, and while In
some of the cases there may be apparent de-
parture from one or more, certainly In none
of those dted by the appellee have any of
them been disregarded or their authority
questioned In any way. The cases which
have been supposed at variance, or so distin-
guished on their facts as to be outside the
operation of these rules, including all those
cases relied upon by the appellee here, are
all reviewed and discussed at length In the
recent case of Neel's Est., 262 Pa. 394, 97
Atl. 502, and In Rau's Est., 264 Pa. 464, 98
Atl. 1068, and we feel that nothing can prof-
itably be added to what Is said In those
cases.
Our conclusion Is that under the will of
John McCauley the gift to the children of
testator's niece, payable at the latter's death,
was vested In such of her children as were
living at the death of the testator. If this
be correct. It must follow that the share of
Hrs. Rebecca N. Love, one of said children,
was not divested by reason of her death be-
fore that ot her mother, and that distribu-
tion of her Interest or share should have
been made to her legal representative, this
appellant. The judgment of the court below
Is accordingly reversed, and distribution Is
ordered to be made in accordance with the
view here expressed.
(iST Pa. 6<0)
LAND TITLE & TRUST CO. v. Mc-
GARBITT.
(Sapreme Court of Pennsylvania. April 16,
1917.)
LiuiTATioN OF Actions €=925(6) — Monkt
Lent.
An action for money loaned by plaintiff's
decedent in 1897, not brought until 1910, eight
years after decedent's death, was barred by the
statute of limitations.
Appeal from Court of Common Pleas, Phil-
adelphia County.
Assumpsit by the Land Title & Trust Com-
pany, administrator d. b. n. c. t. a. of the Es-
tate of Bridget Lougbran, deceased, substi-
tuted plaintiff, against Joseph McGarrlty to
recover money loaned. From a judgment re-
fusing to take off a compulsory nonsuit,
plaintiff appeals. Affirmed.
Argued before BROWN, C. J., and
MOSCHZISKER, FB.A.ZER, and WALLING,
JJ.
Henry A. Hoefler and Michael Francis
Doyle, both of Philadelphia, for appellant.
WiUIam A. Gray, of Philadelphia, for appel-
lee.
PER CURIAM. This action was brought
upon a writing of which the following Is a
copy: "Received of Mrs. Bridget Lougbran
6000, payable at the pleasure of Joseph Mc-
Garrlty." The paper was executed by the
defendant and given to Mrs. Lougbran some
time In 1897. He got the money from her
the year before. He was the only witness In
the case, having been called by the plaintiff
as under cross-examination. According to
his testimony, the money was a gift to him
by his aunt, but, even If this were not so, the
action on the writing was barred by the stat-
ute of limitations. Mrs. Lougbran died In
1902, and this action was not brought until
1910.
The nonsuit was properly entered, and the
judgment la affirmed.
(267 Pa. 546)
McCOACH, Comity Treasurer, y. SHBEHAN,
Register of Wills.
(Supreme Ck>nrt of Pennsylvania. April 16,
1917.)
1. CouNTiKS «=>7S(%)— CooWTT Officeks —
The fees and commissions of a county regis-
ter of wills payable, under Act July 21, 1913
(P. L. 878), to the county treasurer, are not so
payable for his benefit in his private or official
capacity, but are paid into the treasury because
they belong to the coimty.
2. Counties <s=»218— Actions — Coumty Or-
FICEBS.
An action for money due a county should
be brought in its name, and not in the name of
its treasurer, and the treasurer's appeal from
an unsuccessful action brought in his own name
would be dismissed, without prejudice to the
county's action.
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830
101 ATLANTIC REPOROBB
(Pa.
Appeal from Conrt of Common Pleas, Phil-'
adelphia County.
Assumpsit for commlsslonB by William Mc-
Coach, Treasurer of the County of Philadel-
phia, against James B. Sheehan, Register of
Wills of Philadelphia County. Judgment for
defendant, and plaintiff appeals. Appeal dis-
missed.
Argued before BROWN, C. J., and STEW-
ART, MOSCHZISKEIR, FRAZER, and WAL-
LING, JJ.
David McCoach, of Philadelphia, for ap-
pellant. Joseph Ollfillan and Samuel M.
Clement, Jr., both of Philadelphia, for appel-
lee.
PER CURIAM. If James B. Sheehan, reg-
ister of wills of Philadelphia county, has no
right to retain the commissions allowed him
by the commonwealth on collateral Inherftr
ance tax collected by him for Its use, but
must pay the same to the county, under the
act of July 21, 1913 (P. L. 878), it Is the only
party to compel him to pay. The learned
president Judge of the court below recog-
nized this in saying:
"The judgment here entered cannot bind
the county of Philadelphia. The fees and coiu-
missions of the register are, by the act of July
21, 1913 (P. L. 878), made payable into the
county treasurer. They are not, however, to
be paid into it for the benefit of the treasurer,
either in liis private or bis official capacity.
They are to be paid into its treasury because
they belong to the county. In Pennsylvania
the county is a juridical person. Section 3 of
the act of April 15, 1834 (P. L. 538), declares
that it shall have capacity as a body corporate,
to sue and be sued by its corporate name, nnd
to take and hold real estate and personal prop-
«rty. By section 5 of the same act it is provid-
-ed that 'all suits by a county shall be brought
and conducted by the commissioners thereof,
and in all suits against a count,r, process shall
be served upon and defense made by the oom-
missioners.' An action for the recovery of mon-
'Cy due to a county should therefore bo brought
in the name of the county itself, and not in
Utat of one of its ofBcers, and should be in-
stituted in its name by its commissioners, and
not by its treasurer. The latter has no greater
right to sue for money payable to him for the
use of the county, whether he is mentioned in
the prsecipe for the writ by his own name alone,
or described by the addition thereto of his of-
-ficial title, than he would have while treasurer
of a private corporation to initiate an action
in his own name for the recovery of money
due to it. The proper practice in cases of this
■character is exemplified in the case of Allegheny
County V. Stengel, 213 Pa. 493, 63 Atl. 58.
It is to be regretted that the precedent afforded
by the proceedings there was not followed in
this case, since, unless our views on the subjects
above discussed commend themselves to the
proper county authorities, the whole matter
must be litigated again."
In view of this correct conclusion, the
court should have gone further and declined
to determine the questions raised by the case
stated as not being properly before It.
Those questions are not now properly before
us, and we cannot pass upon them until they
Are brought up on an appeal from a Judg-
ment In a case to whldi proper parties are
litigants. Appeal dismissed without preju-
dice to any right the coimty of Philadelphia
may have to recover the commissions which
wer« the subject of the case stated.
""^^^ (jCT p^ 495)
MUTUAL LOAN & SAVINGS ASS'N OF
OHAMBERSBURG v. NATIONAL
SURETY CO.
(Supreme Court of Pennsylvania. April 16,
1917.)
Insubance ®=9285— Fidelttt Bond— Misrbp-
resentations — llabilitt.
A surety company imuing a fidelity bond in-
demnifying a loan and savings association
against loss by its treasurer's misappropriation
of funds, based upon the false material decla-
rations of the association's president that a cer-
tain character of audit had been held on the
treasurer's books and accounts, which would
have indicated his dishonesty, and that it had
shown favorable results, was not liable on the
bond for the treasurer's shortage.
Appeal from Cknirt of Common Pleas,
Franklin County.
Assumpsit on a surety bond by the Mntaal
Loan & Savings Association of C!hamber»-
burg against the National Surety Company.
Verdict for plaintiff for $5,988.30, and Judg-
ment thereon, and defendant appeals. Re-
versed, and judgment entered for defendant.
See. also, 253 Pa. 351, 98 AU. 600.
Argued before MESTREZAT, POTTER,
MOSCHZISKER, FRAZER, and WAL-
LING, JJ.
Donald Tbompewn, of Pittsburg, Charles
Walter and J. A. Strlte, both of Chambera-
bnrg, Arthur J. Stobbart, of New York City,
and George Calvert, of Pittsburgh, for appel-
lant. W. K. Sbarpe, O. O. Bowers, and Wil-
liam S. Hoemer, all of Ghambersburg, for
appellees,
MOSCHZISKER. J. In February, 1912. the
defendant company executed and delivered to
the Mutual Loan & Savings Association of
Ghambersburg a fidelity bond In the sum of
$5,000, indemnifying the latter for one year
against pecuniary loss by reason dt any mla-
approprlatloD of funds which might be com-
mitted by its treasurer, Isaac Stlne. This
obligation was renewed and In force on
March 3, 1913, on which date Stlne died, a
defaulter, owing over $8,000 to the associa-
tion. Shortly thereafter William S. Hoemer.
the plaintiff's attorney, notified the defendant
of the shortage on Mr. Stine's account The
surety company denied liability; suit was
brought om the bond ; the case came to trial,
and the verdict favored the plaintiff ; defend-
ant has appealed.
The plaintiff la a local building and loan
association. Incorporated under the laws (tf
Pennsylvania; its constitution stipulates tihe
following o£ScerB: A president, vice president,
secretary, treasurer, board of directors, and
an attorney. In addition, the by-laws pro-
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MUTUAL U>AN A SAVINGS ASS'K y. KATIONAL SUBETT OO.
831
vide that a "general manager" who "shall
have general charge and managonent of the
bnslness," shall be appointed by the board;
that the president shall jierfomi "such dntles
as usually appertain to that office"; that
the secretary shall be the custodian of the
papers and securities of the association,
keep Its records, receipt to the members for
moneys paid by them, turning the same over
to the treasurer at least once in each week,
make reports of the "finances and business
of the association"; and. finally, that, "In
the absence or disability of the general man-
ager, he [the secretary] may act in his stead."
The treasurer Is required to "deposit all mon-
eys received by him in the name of the asso-
ciation in some good and solvent bank," to
keep accounts, subject to lnsi)ectlon by "the
auditing committee" of the association, and
to give a bond for the faithful performance
of his duties. The attorney is required to
give legal advice and to "attend to all legal
matters In which the association is interest-
ed," with express "authority to enter the ap-
pearance of the association in any proceed-
ing." The by-laws further provide that an-
nually the prefsldcnt shall appoint three com-
petent stockholders to act as an auditing com-
mittee.
The trial Judge,' without objection, permit-
ted the defendant to call Mr. Hoomer, the
attorney of the assodatlou, "as under cross-
examination," and from bis testimony it ap-
pears that in December, 1912, Miss Bassett,
Its secretary, received, from the bank where
Mr. Stlne kept his treasurer's accotmt, no-
tice to the effect that interest was due on a
loan which, some time previous thereto, the
latter was supposed to have paid off with
funds specially appropriated for that pur-
pose. The secretary took this notice to Mr.
Hoemer, as the attorney for the association,
and he bad an interview with one of the of-
ficers of the twnk, who Informed him that the
obligation In questlmi was still due and unr
paid. This evidently oiade Mr. Hoemer sus-
picious, for he inquired as to the treasurer's
bank balance, which information was refus-
ed. The attorney then called upon Mr. Stlne,
who confessed that he had not paid Uie note,
and that his failure In this respect "was due to
bis not having • • • enough funds In
bank to pay it"
It appears that the plaintiff association had
no general manager; that Miss Bassett, the
secretary, was in diarge of Its ofBce, which
adjoined the private law o&ee of Mr. Hoem-
er; and, so far as the evidence Indicates,
these two looked after the daily routine af-
fairs of the concern. Although the secretary
had the knowledge already Indicated of the
treasurer's default, and turned the matter
over to the association's attorney for further
Investigation, yet the other officers and di-
rectors of the institution were not officially
Informed upon the subject until after Mr.
Stlne's decease.
The bond in suit provides. Inter alia, "that.
If the employer or any officer becomes aware
of the employs • • • committing any
• • • unlawful act, the surety shall be Im-
mediately notified"; further, that "upon be-
comlhg aware of any act whidi may be made
the basis of a claim hereunder, the employer
shall give immediate notice thereof to the
surety." As already stated, no notice was
given to the defendant company by the plain-
tiff assoclatlmi of Its treasurer's default un-
til after the tatter's death. It appears that
Mr. Stlne, who enjoyed good standing and
financial credit la life, died Insolvent ; hence
the defendant claimed there had been a ma-
terial departure to its prejudice from the
terms of the bond; but the trial Judge In-
stracted that, <m the facts at bar, the plain-
tiff was not "in default with respect to cither
of said [previously quoted] conditions," and
this Is complained of in several assignments
of error. It is not necessary to pass upon the
complaints in question, however, for we are
convinced that binding instructions should
have been given for the defendant on another
point that rules the case as a whole. This
we shall next consider.
When the t>ond In suit was applied for, the
plaintUTs president made these written state-
ments: (a) That a thorough examination of
the books and accounts of the assodatiou .
would take place, and all "cash, securities^
etc., be counted, compared, and verified" In
August of each year ; (b) that such an exam-
ination had in fact been made in the prior
August, by the auditors of the association,
and the books and accounts were then found
correct in every particular. At the trial the
men who made the audit in question were
called, and admitted that, although they had
served the association In this capacity for
many years, they did not at any time either
count the ca^ and securities oa hand, look
at the bank book, or make inquiry at the de-
pository as to the balance in the treasurer's
account, contenting themselves by simply In-
quiring of Mr. Stlne whether he had sufficient
cash In bank or on hand to cover the balanc-
es shown by the books, aind accepting his
reply as a verity. liikewlse it appeared
that, hod tha auditors examined Mr. Stiue's-
bank account or made proper inquiry, they
would have discovered an apparent deficit
existing at the time of the application for
the surety bond, and Bubeequent audits would
have shown an Increase in the amount of this
shortage. With these facts established by
either documentary evidence or uncontested
and undi£^uted testimony, the trial Judge-
instructed the Jury that, unHess they found
the statements contained in the application
for the bond "knowingly false and fraudu-
lent" and made "with an Intent to deceive"
(as to which there was no evidence), their
falsity in fact would not defeat a recovery.
This instruction, which is directly contrary
to the law as laid down by ua In National
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101 ATLANTIC BEPORTBB
(Pa.
Bank of Taretitnm v. Bqnltable Trost Go.
of Pittsburg, 223 Pa. 328, 72 AU. 794, Is c<Hii>-
plalned of in several assignments of error,
the appellant contending that, under the es-
tablished law, on the material facts relevant
to this branch of the case. It was entitled to
the verdict without regard to the question of
plaintiff's intent, the ooly material issue be-
ing as to the substantial truth or falsity of
tlie statements in question.
In the Tarentum Case, the defendant exe-
cuted a fidelity bond on a bookkeeper employ-
ed by the plalntifT bank. For the purpose of
obtaining this bond, an officer of the latter In-
stitution certified that the books and accounts
of its employ^ had been examined and found
accurate la every respect The bookkeeper
proved dishonest, and, in a suit against the
surety company to compel the latter to make
good the amount of the former's speculations,
it was shown that he had been systematically
stealing from his employer for some time
past The evidence indicated that, "hod an
effective audit • • • been made by the
bank," prior to the application for the bond,
in all probability the fraudulent practices of
the bookkeeper would have been discovered,
and this would have "prevented the issue of
any such certificate as was given to the de-
fendant company." The trial Judge submit-
ted to the Jury the questions whether the
statements contained In the certificate accom-
panying the application for the bond "were
untrue or substantially true," with instruc-
tions that, if they found the latter to be the
case, then there was no defense to the action
and the plaintiff ou^t to have a verdict;
but adding that If they found such state-
ments were "not substantially true and were
misleading in regard to the examination of
his [the bookkeeper's] accounts," then the
verdict ought to be for the defendant. The
verdict accorded with this last instruction,
and we sustained the Judgment entered there-
on for the defendant, saying, "The informa-
tion asked for by the trust oMnpany was en-
tirely proper for its guidance in the trans-
action"; that "^vlthout doubt," the bond
was given "upon the faith of tlie statements
contained in the certificate"; and that un-
der such circumstances, "the bank cannot be
heard In disavowal of the representations
made by its executive officer, which led the
defendant company to agree to continue its
responsibility."
In the case at bar, the plaintiff did not at-
tempt to show that any such examination of
its books, as stated by its president when
he applied for the bond in suit had, in fact
been made. On the cmitrary, as to this, It
simply contended that the def«idant had
failed to prove the statements, with refer-
ence to the last prior audit to have been
fraudul^itly made with an intent to deceive^
In all essential particulars, the false state-
ments in the present case are Identical with
tlioee in the Tarentum Case. In each in-
stance the surety company was misled by
material written declarations, to the effect
that a certain character of audit had been
held upon the books and accounts of the per-
son whose honesty was to be underwritten,
and that sudi audit had shown certain favor-
able results, whereas, in point of fact there
had been no such audit as certified, and,
had It been held, the dishonesty of the per-
son about to be bonded would undoubtedly
have been indicated. Tlie two cases, how-
ever, are sought to be distinguished by the
court below on, the ground that in the one
cited by appellant the plaintiff certified
that its employe's boolis, etc., had \)eea exam-
ined by "us," while the certificate at bar
states the examination had been made by
auditors. We do not see any force in this
attempted distinction. The plaintiffs in both
instances t)eing corporations, of course. In
making their examinations, they bad to act
through individual representatives, be they
auditors or otherwise. It. was the duty of
the president of the plaintiff association to
ascertain the nature of the audit inquired
about and depended upon by the defendant
before certifying its character to the possible
prejudice of the latter.
We have examined the authorities relied
upon by counsel for the appellee, holding that
for certain purposes bonds sudti as the one
in suit are viewed in the law as insurance
contracts; but none of them either expressly
or Impliedly overrules the Tarentum Case,
which governs here. The material facts, that
bring the presea* controversy within the
principle of the authority Just olted, are es-
tablished by documentary evidence, and not
only uncontested but undisputed testimony,
given in most part by officers or members of
the plaintiff association ; the verity of theee
facts Is not attacked, only their suffldency
in law ; and, finally, the inferences and con-
clusions to be drawn therefrom are certain
and inevitable. Under the drcomstancea,
the learned couit below should have given
binding instructions for tlie defendant.
Marks V. Anchor Savings Bank, 252 Pa. 304,
310, 311, 97 AtL 399, U R. A. 1916E, 906.
The fourteenth assignment which complatna
of the refusal so to do, is sustained.
Judgment reversed and bete entered Cor
defendant
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MAINE MILL SUPPLY (XK ▼. FINKELMAN
883
(U( M*. an
RAKKIN T. TAKRAND.
(Snoreme Jndicial Court of Maine. Sept. 18,
1917.)
Appeal a»d Bbbob «=»100G(1)— Fikdingb or
JUBTICIC— KaviBw. .
Findings of a justice in equity suit nave tne
force of a verdict, and will not be reversed un-
less manifestly contrary to the evidence.
Appeal from Supreme Judicial Court, Knox
County, in Equity.
Bill by Edward E. Rankin, trustee, against
Helen Farrand. Bill dismissed, and plaintiff
appeals. Appeal dismissed, and bill dismiss-
ed, with costs.
Argued before CORNISH, C. J., and
SPEAR, BIRD, HANSON, and MADIGAN,
JJ.
A. 8. Litttefldd, of Rockland, for appel-
lant. Edward K. Oould, of Rockland, for ap-
pellee.
PER CURIAM. Tbig bill In equity was
brought by a trustee in bankruptcy to set
aside two conveyances made to the defend-
ant by her husband who was declared an
Involuntary bankrupt nine months thereafter.
The plaintiff sets up two grounds for re-
lief: First, that the conveyances were with-
out consideration and therefore void as to
existing creditors; and, second, that they
were made for an Inadequate consideration
and for the purpose of hindering, delaying,
and defrauding creditors; the defendant par-
ticipating In the fraud.
The sitting Justice, after hearing the cause
and fully considering the evidence, found
that the proof was "not suflSdent to sustain
the essential allegations of the bill necessary,
to be established to entitle the plaintiff to
the relief prayed for." He therefore ordered
the bill to be dismissed.
This finding has the force of a verdict of
a jury, and is not to be reversed unless It
Is manifestly contrary to the weight of the
evidence. After carefully considering the
record and the arguments of counsel, the
court is of opinion that the finding of the
sitting justice was fully justified on both
branches of the case, but we think the de-
fendant is entitled to costs.
The entry vtIII therefore be:
Appeal dismissed.
Bill dismissed, with coeta.
(US He. EOS)
MAINE MILL SUPPLY CO. ▼.
FINKELMAN.
(Supreme Judicial Court of Maine. Sept. 20,
1917.)
1. Apfbai. and Ebbob «=>1002 — Review —
Vebdict.
Where there are sharp contradictions on
many points, the appellate court will not set
aside a verdict not manifestly wrong and grant
a new trial, although the witnesses for the un-
successful party outnumber those of the success-
ful party.
2. Appeal and Ebbob «=>28S(1)— Pbesbbva-
TION OF ObOUNDS of REVIEW.
Where plaintiff did not call the court's at-
tention to the misstatement of defendant's claim
before the jury retired or request additional in-
structions, exceptions to the charge will not be
sustained.
3. Appeal and Ebbob ®=»1064(1)— Tnstbuc-
TIONS— COtnOENTS ON EVIDENCIi— HABULES8
Ebbob.
Any statement in the charge as to the na-
tionality of the parties was harmless, where the
parties and the witnesses on both sides were of
the same nationality.
Exceptions from Supreme Judicial Court,
Androscoggin County, at Law.
Assumpsit by the Maine Mill Supply Com-
pany against D. Finkelman. Verdict for de-
fendant, and plaintiff brings exceptions. Mo-
tion and exceptions overruled.
Argued before CORNISH, C. J., and KING,
BIRD, HANSON, and MADIGAN, JJ,
Benjamin L. Berman, of Lewiston, and
Jacob H. Berman, of Portland, for plaintiff.
Robert M. Pennell, of Portland, for defend-
ant.
PER CURIAM. This is an action of as-
sumpsit on a check for $200 dated January
17, 1916, drawn by the defendant and made
payable to the order of the plaintiff. Pay-
ment upon the check was seasonably stopped
The vital point at issue was one of fact name;
ly, whether, as the plaintiff claimed, the
check was given in payment of merchandise
purchased and of other agreed items; or
as the defendant contended, was given with-
out consideration, and as a personal loan to
one Alpren, one of the parties interested in
the plaintiff corporation. The jury found in
favor of the defendant.
[1] Upon plaintUTs motion for a new trial
It Is sufiicient to say that a careful study of
the evidence does not warrant the setting
aside of the verdict. There are sharp con-
tradictions on many points, and whUe the
witnesses for the plaintiff outnumber those
for the defendant, we are unaUe to say that
in the light of all the circumstances the true
weight of the evidence was so manifestly on
the side of the plaintiff as to compel the re-
jection of the verdict
[2, 3] Nor can the plalntitTs exceptions to
a porti<Hi of the charge of the presiding jus-
tice be sustained. No error in law is claimed.
The court was simply summarizing, as was
his duty, the contentions of the parties. If,
In so doing, any misstatement was made as
to the defendant's claims, attention should
have been called to the specific fact, so that
the error could be corrected before the Jury
retired. If the court failed to fully state the
claims of the plaintiff, additional instructions
should have been requested. Neither was
done. Any statement as to the nationality of
£=»For other cases see same topio and KSY-NUMBBR In all Ker-Niunbered Dlsesta and Indexes
101A.-53
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834
101 ATLANTIO REPORTER
(0<mD.
the parties was barmle&s, as the parties and
witnesses on both sides were of the same na-
tionality, as abundantly appears.
Motion and exceptions overruled.
(«2 Conn. ») ^"^^^^
CORBIN, Tux Com'r, y. BAIJ)WIN et aL
BALDWIN et at v. CORBIN, Tax Com'r.
(Supreme Court of Errors of Connecticut.
Aug. 2, 1917.)
1. Taxation «=»85C— "iNHEBrrAuc* Tax"—
Nature.
Inheritance or succession taxes are not taxes
laid upon persons or property, or, strictly speak-
ing, taxes at all, but raUier death duties, levied
as exactions of the state in the course of the
settlement of estates, as an incident to the devo-
lution of title by force of its laws.
[Ed. Note.— For other definitions, see Words
and Phrases, First and Second Series, Inher-
itance Tax.]
2. Taxation «=5»876(1)— Inheritancb Tax-
Exemptions — Institdtionb Rkceivino
Within Pui). Acts 1915, c. 332, { 3, exempt-
ing from inheritance taxes all property passing
to or in trust for the benefit of any corpora-
tion or institution located in the state which re-
ceives state aid, educational, charitable, and oth-
er corporations which are granted exemptions
from general taxation, in recognition of the de-
votion of their property to public purposes, are
institutions receiving state aid, and are entitled
to exemption, since the word "aid," in its ordi-
nary significance, has a broad and compre-
hensive meaning, and includes help and as-
sistance of whatever kind and by whatever
means or method provided, and there is nothing
in the conditions and circumstances under which
the statute was enacted, the subject-matter, the
context, related legislation, or antecedent leg-
islative history to restrict it)B meaning.
[Ed. Note.— For other definitions, see Words
and Phrases, Second Series, State Aid.]
3. Statutes ©=»188— Consteuction— Mkan-
INO OF Lanquaoe Used.
The presumption is that the words of a stat-
ute are used in their ordinary signification.
4. Taxation €=»860 — Inhebitanck Tax —
Statutoby Provisions — Constkuction.
An intention to impose inheritance taxes on
property devised or bequeathed to public charita-
ble uses, and thereby divert some portion of the
estate to some other public use than that with-
in the mind or purpose of the testator, will
not be deduced from language not clearly ^-
pressing or indicating such intention.
B. Taxation «=>860 — Inhbbitancb Tax —
Statutory Peovision— Consibuction.
The rule that a portion of a statute exempt-
ing something from the operation of the general
rule prescribed by the statute should receive a
strict construction is subject to limitations, and
does not apply to the construction of Pub. Acts
1915, c. 332, I 8, exempting property passing to
corporations or institutions receiving state aid
from the inheritance tax imposed by that act
6. Taxation <s=»895(7)— Inhkbitance Tax-
Deductions. . , . .^
In computing the amount of an inheritance
tax, there should be deducted, from tlie total
amount of the appraisal local taxes paid to
the tax collector, inheritance taxes paid in an-
other state and an income tax paid to the United
States internal revenue collector.
7 Taxation <S=»886% — I»H«BiTANat Tax —
Kate of Taxation. .
It was error to assess an inheritance tax on
property not exempt at the rate of 8 per cent.
instead of 5 per cent, on $49,000, 6 per cent, on
the next $200,000, and 7 per cent, on the bal-
ance.
Wheeler and Roraback, JJ., dissenting.
Case reserved from Superior Court, New
Haven County ; Donald T. Warner, Judge.
Proceeding to assess an Inheritance tax
on the estate of Justus S. Hotchkiss deceased.
Prom an order and decree of the probate
court determining the amount of the tax,
William H. Corbin, tax commissioner, and
Simeon E2. Baldwin and others, executors,
appealed to the superior court, which re-
sen-ed the appeals for the advice of the Su-
preme Court of Errors upon the demurrers
filed by the tax commissioner to the answers
to the reasons of appeal on the executors' ap-
peal, aod the demurrers to the reasons of ap-
peal on the tax commissioner's appeaL Judg-
ment advised.
Justus S. Hotchkiss, late of New Haven,
died possessed of an estate appraised in the
inventory thereof at approximately $2,000,000.
By his will he made bequests and devises to
various persons and corporations. Among
them were the Blrst Ecclesiastical Society of
New Haven, the General Hospital Society of
ConnecUcut, the New Haven City Burial As-
sociation, the Home for the Friendless, the
Lowell House, and Yale University, the latter
being the residuary legatee and devisee. In
the course of the administration of the es-
tate, the court passed an order and decree
adjudging (1) that the gifts to the first Ec-
clesiastical Society, the General Hospital So-
ciety, the New Haven City Burial Association,
and Yale University were exempt from the
payment of an inheritance tax; (2) that those
In favor of the Home for the Friendless and
the Lowell House were subject to such tax;
and (3) that the amount of tax due the state
was $58,082.80, the same being figured at 8
per cent. From so much of this order and
decree as established the above exemptions
the tax commissioner appealed, his appeal be-
ing the flrst-named of the above-entitled cases.
E>om that portion which subjected the gifts
in favor of the Home tor the Friendless and
the Lowell House to the tax the executors
appealed, their appeal being the second of the
two cases. The appeal by the executors also
embodied reasons of appeal alleging that the
court erred in failing to make certain deduc-
tions from the total amount of the appraisal
of the estate and the gains to be added there-
to, and in computing the amount of tax i>ay-
able at the uniform rate of 8 instead of a
graduated rate of 5, 8, and 7 per cent
George E. Hinman, Atty. Gen., and Charles
W. Cramer, of Hartford, for Tax Com'r.
Henry Stoddard, J. Dwight Dana, and John
W. Bristol, all of New Haven, for executors.
PRENTICE, C. J. (after stating the facts
as above). By the will of Mr. Hotchkiss, six
corporations were made the beneficiaries of
$=9For other cases we same topic and KBT-NUMBBR in all Key-Numb*i«d Dlgeati and IndaxM
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Conn.)
CORBIN V. BALDWIN
835
gifts. One of these gifts, to wit, that to the [
General Hospital Society of Connecticnt, con-
fessedly Is not subject to the payment of an
Inheritance tax. The tax commissioner con-
tends that the other five are. Their bene-
ficiaries, on the other hand, assert that they
are exempt from such payment These con-
flicting claims form the principal subject of
these appeals.
These five beneficiaries include Tale Uni-
versity, a corporation chartered for educa-
tional purposes; the Home for the Friendless,
and the Lowell House, the first chartered to
carry on a benevolent and charitable work,
and the second organized under the general
law for a similar purpose; the First Ec-
clesiastical Society of New Haven, an eccle-
siastical and religious corporation; and the
Proprietors of the New Haven Burial Ground,
designated in the will as the New Haven City
Burial Association, incorporated for the pur*
poee of maintaining a burial ground, and hav-
ing as its sole property land exclusively used
for such purpose. All of them enjoy at the
bands of the state exemptions from taxation.
The record makes it clear that, if the gifts
to these beneficiaries are to pass to them
free from an Inheritance tax, it must be by
force of that provision of the statute which
exempts "all property passing to or in trust
for the benefit of any corporation or institu-
tion located in this state which receives
state aid." Public Acts of 1915, c. 332, { 3.
It also makes it equally clear that the sole
claim to exemption by virtue of this statutory
provision, which any of the corporations in-
TOired can successfully assert, is one found-
ed upon the tax exemptions with which they
are and for years have been favored at the
hands of the state. In making this statement
we do not Ignore certain facts recited in the
answer of Yale University demurred to, and
thus presented by it in aid of its position, but
they are at best of minor importance, and do
not impress us as adding materially, if at
all, to the strength of its position. Its claim
to exemption must, therefore, rest for its
support upon the proposition which it, in
common with the other l)cneficlaries l)efore
the court, advances that the gift to it is one
wMcb it is entitled to receive without diminu-
tion by reason of the imposition of a succes-
sion tax, for the reason that it is a corpora-
tion in receipt of state aid through the medi-
um of exemptions from taxation conferred
upon it at the hands of the state.
[11 The claim thus made by the five cor-
porations Is not, it is to be borne in mind,
that they are entitled to receive the gifts in
tbeir favor free from succession tax through
tbe direct operation of statutes prescribing
tax exemptions in their favor. Their claim,
on the other luind, gives fall recognition to
the well-established law of this Jurisdiction,
that so-called inheritance or succession taxes
&re not taxes laid upon either persons or
property, or, strictly speaking, taxes at all,
bat rather death duties, levied as exactions of
tbe state in tlie course of the settlement of
estates, as an Incident to the devolution of ti-
tle by force of its laws. Hopkins' Appeal, 77
Conn. 644, 649, 60 AtL 657; Warner v. Cor-
bln, 91 Conn. 632, 100 Atl. 354. It concedes
that, if the gifts to them are to escape these
death duties, it must be not for the reason
that they are taxes in the ordinary sense, but
for the reason that the so-called inheritance
tax law specifically excludes them from its
operation as having been made to corpora-
tions in receipt of state aid through the me-
dium of tax exemptions.
[2] The question at issue thus becomes
narrowed to one of statutory construction.
The law provides tliat property owned by a
resident of this state at ills decease, which
shall pass by will or the general law of dis-
tributions to corporations or institutions in
receipt of state aid, shall so pass inheritance
tax free. Public Acts of 1915, c. 332, |
3. The tax commissioner contends that the
corporations and institutions receiving state
aid, within the true meaning and intent of
this provision, are limited to those receiving
pecuniary assistance by direct state appro-
priation, and that those corporations and
Institutions otherwise aided and assisted by
the state's action are not included. His
counsel urge that this portion of the act is
to be interpreted as though it contained the
qualifying words "by appropriations" or lan-
guage of similar purport, so that It read
"state aid by appropriations" or equivalent
language. The beneficiaries of the gifts as-
sert, on the other hand, that all those cor-
porations and institutions aided or assisted
financially in whatever way, and whether by
direct appropriation of state funds, or by the
provision of material agencies for the con-
duct of their work, or by the enhancement
of their financial resources by excusing them
from the payment of taxes, are to t>e re-
garded as recipients of "state aid" as that
term is employed in the statute.
In Beach v. Bradstreet, 85 Conn. 344, 353,
82 Atl. 1030, 1033, Ann. Cas. 1913B, 946, we
said that "the ordinary definition of 'aid' is
help, support, or assistance," and that "state
aid is support or assistance furnished by the
state." The qualifying word "state" is of no
importance, save as indicating the source
from which the aid comes. "Aid" is the
word which possesses significance for our
present inquiry, and that word, as its defini-
tion clearly discloses. Is one whose ordinary
meaning is broad and comprehensive, and
inclusive of help and assistance of whatever
kind and by whatever means or method pro-
vided. There are various means and meth-
ods which may be resorted to by individuals
in furnishing aid and assistance. The same
is equally true of the state. It may, of
course, make direct appropriations or pay-
ments by which the treasury of the recipient
is replenished. If, instead, it excuses a cor-
poration or institution from the payment of
taxes, it gives aid, assistance, and support
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836
101 ATLANTIC REPORTBE
(Comv
to such corporation or Institution Just as
much and Just as eflSdently as it would by
the appropriation of an amount equal to the
taxes the cori)oratlon or Institution would
be required to pay were there no exemption.
The result in either case, although accom-
plished by different means, Is precisely the
same. The difference la one of method, and
not of kind or degree of aid furnished. In
the one case the money la peM over and
paid back; In the other, no money passes.
In both the result, as reflected by the treas-
ury of each of the parties, Is the same. If
the language of the statute Is to be accord-
ed Its ordinary and natural meaning, our
conclusion must, therefore, be that state aid
embraces aid given by means of exemptions
from taxation as well as by other means, as,
for example, by appropriations.
[3] While this Is true, and the presump-
tion Is that the words of the statute were
used In their ordinary signification. It does
not necessarily follow that the term "state
aid" was not used therein In some less com-
prehensive sense, or in the qualified and re-
stricted sense for which the tax commission-
er contends. His claim, therefore, calls for
our inquiry as to the legislative intent. In-
volving a consideration of the language used,
its context, pertinent antecedent legislative
history, related legislation, the subject-mat-
ter with which the language deals, its oper-
ation as it may be Interpreted, the conditions
and circumstances under which It was enact-
ed, and all other matters calculated to throw
light upon the subject of Inquiry.
First and foremost we have the language
of the statute. The natural and ordinary
meaning of the term which Is the subject of
consideration does not, as we have already
had occasion to observe, harmonize with the
interpretation the tax commissioner would
have us put upon It, and its context throws
no additional light upon the sense In which
it was employed.
Counsel for the tax commissioner. In aid
of their contention, point to the use of the
term in the Indices of the Revision and Ses-
sion Laws and in the body of Statutes. Our
examination of the indices referred to, as
well as others, discloses that under the head-
ing of "State Aid" references are repeatedly
made to statutes providing for the payment
of moneys In aid of various objects. Such
references are so made with undoubted pro-
priety, since such payments are unquestion-
ably state aid. It also reveals that In nearly
as many Instances statutes providing aid and
assistance by other means than the payment
of money to the objects to be benefited are
referred to under that head. References of
the two kinds are Indiscriminately Intermin-
gled. This Is noticeably so In the Revision,
where the majority are to statutes of the
latter character. As for the statutes them-
selves, there are two Instances which have
some under our observation in which the
term "state aid," Judging by the context,
was used in the limited sense of aid by ap-
propriations or direct payment. Rev. Stat
iS 183, 136& Our attention has not been
called to others of that character. Scant
proof, surely, is thus furnished of an accept-
ed, customary, or common statutory use of
the term in the narrow sense contended for.
Far more suggestive of the meaning in which
It was employed in the statute of 1915 Is the
fact that in the opinion In West Hartford v.
Connecticut Fair Asso., 88 Conn. 627, 630, 92
Atl. 432, handed down only a few months
before its enactment, we characterized tax
exemptions as state aid.
Looking outside of legislation to the condi-
tions and circumstances under which the act
of 1915 was enacted, the subject-matter with
which it deals, and Its operation, there are
several matters of large significance as bear-
ing upon both the rule of interpretation
which should be employed and the interpreta-
tion which should be given to the language
in controversy.
Foremost of these Is the public service
character of tax-exempted corporations and
institutions, and the public service performed
by them whldi furnishes the sole reason for
the existence of their exemption. While It
may be true, and doubtless Is, that tax ex-
emptions have at times been granted with too
great liberality and with scant regard for
their fundamental reason, such is not the
case in the vast majority of Instances, and
manifestly is not in the case of any of the
parties before the court
It Is to be borne In mind that exemptions
are made and can be made lawfully only in
recognition of a public service performed by
the beneficiary of the exemption. They are
not bestowed, as Is too often unthinkingly
supposed, as a matter of grace or favor. If
lawfully granted, as most are, and as we for
present purposes are bound to assume that
all are, they are granted in aid of the accom-
plishment of a public benefit and for the ad-
vancement of the public Interest. It is in
recognition of their position as an agency in
the doing of things which the public. In the
performance of its governmental duties,
would otherwise be called upon to do at its
own expense, or which ought to be done In
the public Interest and without private Inter-
vention would remain undone. Tale Univer-
sity V. New Haven, 71 Conn. 316, 332, 42 Atl.
87, 43 L. R. A. 490. In the fullest sense of
the word, the exemptions are given for the
assistance and help of the private endeavor
la its enort to advance the pubUc interest or
to perform some share of the public govern-
mental duty.
This is true not only theorettcally bnt prac-
tically. The extent of the public service, and
of that service within the range of govern-
mental duty, which is performed by private
beneficiaries operating through the medium
of tax-exempted institutions and corporations
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Is enormous, and the Importance and value of
It In Its purely public aspects Incalculable.
The amount of taxes which are lost to the
state and Its political subdivisions by reason
of exemptions are of trifling consequence as
compared with the sums coming from private
sources which are spent for the public weal.
They are trifling as compared with those
spent for purposes governmental In their
character, and which but for the private ex-
penditure would become a charge upon the
public treasury if the governmental duty
of an enlightened modem state Is to be per-
formed.
The history and service of Yale University,
one of the present benefldarles having the
largest Interest under the will before us,
furnishes a forcible Illustration of the truth
of the foregoing observations. The numerous
charitable institutions of the state, among
which are two of the institutions before the
court, fumlsb other Incidents as striking.
But we may well take as a single example
the typical one afforded by Tale.
It had Its origin In a profound conviction
on tin* part of the leaders of the Infant col-
ony that the public welfare demanded the
establishment within Its borders of a school
of higher education, where young men might
be prepared and trained to render the best
public service to the community and state.
The task of providing such a school In those
days was no small one, but the urgency of the
need, if the colony was to prosper and main-
tain the necessary standard of Intelligent
and capable leadership, was so keenly felt
and appreciated that, in spite of the difficul-
ties, the longed-for institution came into Its
first modest existence. Its charter expressed
the feeling of the time as to the place it was
intended It should occupy as a public agency
when it characterized the purpose of the
projected school as one wherein "youth may
be Instructed in the arts and sciences, who,
through the blessing of Almighty God, may
be fitted for public employment both In
church and dvll state." The history of the
Institution thus founded need not be followed
through the succeeding years further than to
observe that from the first It has enjoyed ex-
emption from taxation, and not Infrequently
was made the recipient from the state of
direct financial help.
Can any one, who reads the story of Tale's
beginning and development, doubt that our
fathers in founding It did so to provide what
they thought to be a much needed agency of
public service, that the colony, and subse-
quently the state. In making direct gifts and
tax exemptions In Its favor, were actuated
by the same high purpose, and that the tax
exemptions early made and through the years
since maintained was made for the conscious
purpose of giving substantial aid to the un-
dertaking whose work It was felt was and
would continue to be fraught with great
public benefit to community and state?
The same appreciation of the public service
rendered by Institutions of higher education
has led many of our sister states to make
large expenditures from the public treasury
In the establishment and maintenance of such
institutions. The Eastern states have, for
the most part, been spared the necessity of
making these expenditures by reason of the
willingness of private benevolence to assume
the task elsewhere shouldered by the state.
In this way Connecticut has been favored.
Its Instl^tlons and colleges are able to rely
for their support upon private contributions
and endowments, with only such state assist-
ance as results from exemptions from taxa-
tion. The assistance gained through these
exemptions has been of no small help in the
conduct of their work and of no small pro-
portions. But that from private sources has
been far greater. The latter fact should not
be allowed to obscure the public character
of the work carried on by them. Neither
should the former be forgotten when credit
for the support of that work is being given
to those who have furnished substantial aid.
The public policy of this state and of the
colonial government which preceded it has,
from its early days, been governed by a rec-
ognition of the public character deserving of
public assistance and support of not only
Tale's work, but also of that of other educa-
tional and diarltable institutions and relat-
ed institntions generally. In 1684 it was pro-
vided "for the Incouragement of learning antt
promoatlng of publlque concernments" that
all houses or lands given or held for "the
mayntenance of the ministry or schooles or
pooref" should remain to the uses for which
they were given and be exempted out of the
list of estates and be rate free. 3 Col. Rec.
158. In 1702 this act was succeeded by a
broader one, furnishing the basis of our pres-
ent statute of charitable uses (Hevlsed Stat-
utes, i 4026), which embraced within Its pro-
visions land, tenements, hereditaments, and
other estate given by colony, town, village,
or persons for the maintenance of the min-
istry of the gospel, schools of learning, re-
lief of poor people, or any other charitable
use. Acts and Laws of the Colony 1702, p.
64. This act ccotalned the general exemption
provision, and continued In force untU 1821.
At that time the exemption clause was drop-
ped from it, and since then the general pol-
icy of exemption indicated has been followed
by general and spednl legislation to the ex-
tent, at least, of substantial, if not total, ex-
emption. Rev. 1821, title 66, chap. 1, | 8.
This l^Islatlve history has no present Im-
portance save as It shows the long-time con-
sistent policy of the colony and state In not
violating the ordained sanctity of property
dedicated by gift of its owner to public char-
itable usee by depleting ita amount or ^ec-
tlveness for the purpose of Its dedication,
through the levy of a tax or the Imposition
o£ other state burdoi upon It If now it la
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101 ATLANTIC REPORTEE
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proposed to reach oat and take toll of sncb
gifts in the process of the deTolutlon of title,
It marks a new and radical departure in pol-
icy In striking contrast with that which here-
tofore has characterized our governmental
history. Such a departure Is one which a
court will be slow to And to be within the
legislative intent, unless indicated by dear
and unambiguous language.
Every dollar which Tale University has re-
ceived or may receive, by gift or otherwise,
is irrevocably deidlcated to a publlfc <*arlta-
tde use. Rev. Stat { 4026; Connecticut Col-
lege V. Calvert, 87 C<mn. 421, 428, 435, 88 Aa
633, 48 L. R. A. (N. S.) 485. When the title to
property vests in the University, that property
"passes out of the domain of private proper-
ty," and becomes devoted forever to a pub-
lic charitable purpose. Tale University v.
New Haven, 71 Conn. 316, 333, 42 AU. 87, 43
L. R. A. 490. The same is true of the funds
held or received by the other beneflclHrtes in
court. A generous public spirit prompted Mr.
Hotchklss to withdraw a large portion of
bis large estate from the domain of private
property, capable of use for private enjoy-
ment of profit, and to devote it to the public
diarltable uses represented by it and them.
(4) It is doubtless within the power of the
state, by means of succession taxes so-called,
to appropriate to itself some portion of the
estate so undertaken to be devoted, and there-
by divert it to some other public use not
within the mind or purpose of the testator,
but its intentloa to do that thing will not
be deduced from language not clearly ex-
pressing or indicating such Intention. Ever-
green Cemetery Asso. v. New Haven, 43
Conn. 234, 242, 21 Am. Rep. 643.
[6] The claim of counsel for the tax com-
mlssdoner that, since that portion of the act
under consideration embodies an exemption
from the operation of the general rule pre-
scribed by the act, it should receive a strict
construction, is nc^ well made. The rule of
construction thus appealed to is one which
has its limitations, as Is clearly pointed out
in Tale University v. New Haven, 71 Conn.
316, 329, 42 Aa 87, 43 L. R. A. 490, and the
present situation Is one which comes well
within them.
Turning now to the history of inheritance
tax legislation in this state for light which
It may throw on the subject of inquiry, we
find that the first legislative attempt in that
direction was made in 1889, when a statute
was enacted laying such taxes, but spedflc-
ally exempting property passing to or for
some charitable purpose defined as including
"gifts to any educational, benevolent, eccle-
siastical or missionary corporation, associa-
tion or object" Public Acts of 1889, chap.
180, i 1. In the matter of exemption, the
law remained unchanged until 1897, when, in
reframing the act nothing was said upon that
subject. Public Acts of 1897, chap. 201. This
silence, incomprehensible as it may appear
In view of the traditional policy of the state.
continued until 1911, save for the passage in
1909 (Public Acts of 1909, chap. 218) of an act
exempting "gifts of paintings, pictures, books,
engravings, bronzes, curios, bric-a-brac, arms
and armor, and collections of articles of
beauty or interest made by wUl to any cot-
poration or institution located in this state
for free exhibition and preservation for pnt>-
lie benefit" At the session In 1911 an act,
consisting of seven lines only, was passed
which provided for the exemption of all gifts
thereafter made by will to or for the benefit
of any corporation or institution located In
the state "which receives state aid by appro-
priations provided for by the General Stat-
utes," and further providing that the exemp-
tion should extend to all like gifts thereto-
fore made to or for the b«iefit of such corpo-
rations or institutions on which a succession
tax had not been paid. Public Acts of 1911,
chap. 148. In 1013 the succession tax law
was extensively revised, and In that revisioa
all property passing in trust for any chari-
table purpose to be carried out within tbe
limits of this state, or to or for the use ot
municipal corporations of the state tea pub-
lic purposes, and gifts of the kind covered
by the amendment of 1909 were exempted
from the tax imposed by the act Public
Acta of 1913, chap. 231, { 2. Then followed
tlte act of 1916, again remodeling and elab-
orating the law, and containing the provision
under consideration in tbe place of that em-
bodied in the act of 1913.
This history, with its frequently recurring
changes, is barren of indication aa to the
intended meaning of the phrase under con-
sideration, except such as may be derived
from the legislation of 1911 and subsequent
years.
EYom tbe latter legislation it would appear
that the General Assembly had become awak-
ened, in some degree at least to the lade of
wisdom shown in the act of 1897, In that
the state was made to take toll of all pri-
vate benefactions coming within the juris-
diction of courts of probate, whether or
not they were made in favor of organized
agencies engaged in the performance of a
work in the interest of the public welfare.
How full that awakening was, as shown by
the amendment of 1911, is not altogether ap-
parent It is curiously phrased, in that It
in terms limits tbe state aid by appropria-
tions to appropriations by general statutes.
Whether tbe inclusion of that quallflcatlon
was Inadvertent or intentional we have no
means of knowing. If the latter was the
case, the act was one of very narrow ap-
plication, since appropriations by general
statute are very exceptional. If the for-
mer, and the Intention was to confine the
exempted corporations and Institutions to
those receiving state aid through appn^ria-
tions, it was Intended to be what counsel ft>r
the tax commissioner say that tbe act of 1916
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CORBIN y. BAIiDWIN
839
proTldes in tbe absence of any qualUying
vrords at all.
Wbatever the legislative Intent was which
the amendment of 1911 attempted to express,
that embodied in the act of 1913 is unmis-
takable. Apparently the General Assembly
had come to realize that a sonnd pnbUc pol-
icy dictated that the state should not ap-
propriate to itself for use for its public pur-
poses generally property, or any portion of
property, which had been dedicated by its
late owner to public charitable uses, and that
consistency of state action demanded that
such appropriation should not be made where,
for a similar rea&on, taxation was foregone.
At any rate, and for some reason it regard-
ed as sufficient, it provided broadly that all
property passing in trust for a charitable
purpose should be exempt from the payment
of toheritance taxes, thus going back to and
adopting the policy embodied in the original
act of 1889.
Our legislation having thus, after a wide
departure and sundry experiments:, come
back to where It begun, and to a policy con-
sistent with tliat which has marked our tra-
ditional attitude toward corporations and in-
stitutions engaged in service for the public
weal, in harmony vrlth our treatment of the
property of such corporations and institu-
tions in other respects, and supported, as we
have seen, by dictates of sound reason, did
the General Assembly of 1915 Intend to de-
part again and take a step back from the po-
sition assumed in 19137 If it did, the way
was open for it to accomplish that result by
the use of plain and simple language — some
such language, for instance, as that which
the amendment of 1911 suggests. It would
have been the simplest thing in the world to
have expressed it in unmistakable language,
and it is little short of inconceivable that if
it was the legislative purpose to limit the
exemption to gifts to corporations and in-
stitutions in receipt of state aid through the
medium of appropriations, that it did not say
so unequivocally, and not leave the desired
limitation to be supplied by Interpretation.
The tax commissioner's claim asks us to sup-
ply such unexpressed qualification. It asks
us to say that when the General Assembly
used the term "state aid" — a term of com-
prehensive meaning, as we have seen — It
meant such aid furnished by a particular
means and in a particular method. We are
unable to see any valid reason for so limit-
ing the language It used, and thus supplying
by implication the words without wlilch the
desired qualification isr not suggested.
Certainly no inference that the term "state
aid" In the 1915 act was intended to be un-
derstood with the qualification that the aid
should be by state appropriation or direct
payment from the treasury can reasonably be
drawn from the fact that the same words
"state aid" appear in the 1911 act, accom-
panied with tbe qualification that tbe aid
should be by appropriations. Rattier is the
omission of the qualifying words once used
confining the aid to tliat by appropriations
suggestive of an intentional omission of them.
Neither does the fact that ditferent lan-
guage was used in tbe act of 1915 from that
of the act of 1913 furnish a substantial basis
for an inference that a radical departure
from the rule prescribed in the former law
was intended, much less the particular de-
parture claimed by the tax commissioner. It
might well be that tbe change of language
was prompted by a desire to supply a defi-
nite and precise t«Bt in place of one less pre-
cise, and to confine the benefits of the ex-
emption to corporations and institutions
whose public service character had received
legislative certification by grants of aid ei-
ther directly or by exemption from taxation.
But whether so or not, and whatsoever other
inferences may fairly be drawn from anteced-
ent legislation, the fact remains that the
General Assembly of 1915 did not use lan-
guage indicating, with any reasonable degree
of certainty, its purpose to impose succession
taxes upon property passing, upon the death
of its owners, to corporations and institu-
tions which, by reason of their character as
corporations and institutions receiving, hold-
lug, and administering property solely In the
interest of the public welfare, were in the
enjoyment of the aid of the state by way of
exemptions from taxation.
[6, 7] The court of probate, In making its
computations for the purpose of determln
ing tbe amount of tax to be paid by the exec
utors, and In framing its order and decree,
made, as the tax commissioner concedes, two
errors. One of these was in omitting from
its deductions from the total amount of tbe
appraisal of the Inventory and the gains to
be added thereto to obtain the net estate
passing to beneficiaries the following items,
to wit: (1) 19,017.97 paid by the executors
to the state of New Jersey as inheritance
taxes; (2) $1,399.90 paid by them to the tax
collector of New Haven as taxes; and (3)
$703.09 paid by them to the United States
Internal revenue collector as an income tax.
By reason of these omissions, which total
$11,126.86, the total amount passing to bene-
ficiaries, as ascertained, was too large to
that extent. This error is one which re-
quires a modification of the decree in sev-
eral placed, and renders Incorrect the court's
final determination and adjudication as to
the amount of tax due. The other error
arose from the computation of the tax to be
paid at 8 per cent upon the net estate not
exempt, whereas it should have been figured
at 5 per cent on $49,500, 6 per cent on $200,-
000, and 7 per cent on the balance. Correc-
tions, as to which the parties are agreed
should be made in the decree wherever these
errors or their results appear.
The superior court is advised to render ita
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101 ATLAiniC BEPOBTBB
(CODD.
judgment (1) affirming so mucb of the order
and decree ot the coort of probate as ad-
judged that the gifts to Yale University, the
Elrst iJccleslastlcal Society of New Haven,
and the New Haven City Burial Association
ere exempt from the payment of an inherit-
ance tax; (2) modifying said order and decree
so that It shall declare that the legacies to
the Home for the Friendless and the Lowell
House are likewise exempt; (3) amending It
by incorporating therein the corrections out-
lined In the paragraph of the opinion imme-
diately preceding this rescript ; and (4) mak-
ing such other incidental changes in It as
may be necessary in order that It may cor-
rectly state the results flowing from the mod-
ification, amendments, and corrections thus
made.
No costs will be taxed In favor of any of
the parties in this court.
SHUMWAY and TUXTLB, JJ., concurred.
WHEELBB, J. (dissenting). Five benefi-
ciaries under Mr. Hotchkiss' will claim ex-
emption from the payment of the succession
tax by virtue of the statute which exempts
"all property passing to or in trust for the
bene&t of any corporation or Institution lo-
cated in this state which receives state aid."
The question for decision is whether each of
these beneficiaries Is "a corporation or Insti-
tution which receives state aid," P. A. 1915,
chap. 332.
Each of these beneficiaries has been receiv-
ing from the state an exemption from or-
dinary taxation. The only basis upon which
their claim is supiwrted In the majority opin-
ion is that the exemption from ordinary tax-
ation accorded tbem is the receipt by them
of state aid. The issue is thus a narrow one,
Does the term "state aid," as used in the
succession tax law of 1915, include aid ren-
dered by way of exemption of property from
taxation?
The court relies for Its conclusion upon (1)
the ordinary meaning of "state aid," (2) our
Judicial definition of the term; (3) the ab-
sence of anything In our statutes indicating
ttiat the use of this term is other than Its
ordinary one; (4) the history of our succes-
sion tax; (5) the existence of a public policy
in favor of the exemption of these institu-
tions and corporations from the succession
tax.
We will take up these points^in order.
The court quotes our definition of "state
aid" from Beach v. Bradstreet, 85 Conn. 344,
333, 82 Aa 1030, Ann. Cas. 1913B, 946,
"State aid Is support or assistance furnished
by the state," and says that the qualifying
word "state" Is of no significance save as
indicating the source of the aid. Hence It
is argued any form of support or assistance
furnished by the state, whether by money
grant, or by excusing corporation or institu-
tion from the payment of taxes, falls within
the ordinary and natural use of language
under the term "state aid."
As It seems to us, the word "state" in tlie
term "state aid," and in the definition of
Beach v. Bradstreet, is all-Important, for
there can be no state aid unless the state
furnishes the support or assistance.
The opinion quotes a part of our defini-
tion in Beach v. Bradstreet We shall get a
clearer view of the definition if we have it
before us entire:
'The ordinary definition of 'aid' is help, snp-
port, or assistance. 'State aid' is support or as-
sistance furnished by the state to its institu-
tions, organizations, or individuals for a pub-
lic purpose. It is a term of our statutes ap-
plied to pecimiary assistance furnished by the
state to towns, schools, etc., and for internal
improvements— all recognized public purposes."
Our definition called for (1) support or
assistance, (2) furnished by the state, ©) for
a public purjwse.
To "furnish" Is to provide for, to give. It
presupposes the giving of pecuniary assist-
ance or support directly. One would not in
the natural use of language, speak of fa^
nlstaing assistance to A. when what was
done was not to give A. something, but to
relieve A. fi-om paying a public obligation
due the state. Affirmative, and not merely
negative, action is required.
The definition In Beach v. Bradstreet was
Intended to Include aid furuisbed by the
state, either in a pecuniary way, or by way
of support furnished through appropriations
made to that end. This becomes doubly
clear when we read this definition in con-
nection with the statute there under con-
sideration.
Since the state cannot furnish either pe-
cuniary assistance or support unless there
be an existing appropriation under law for
a particular purpose, the furnishing of sup-
port is in reality the furnishing of pecuniary
assistanca The definition of Beach v. Brad-
street does not include as "state aid" the
indirect assistance afforded one by relief
from the payment of taxes. When that opin-
ion was rendered no such claim was made
before tbe court and the court had no
thought of It
The majority opinion meets the contention
of the tax commissioner that the use of the
term "state aid" in our statutes is in the
sense of pecuniary assistance, or support,
by the statement that It finds scant proof
of such an accepted statutory use of this
term from Its use In the Indices of our stat-
ute and in the two sections of the statutes
to which It alludes in the opinion. If these
Instances were all that the statutes revealed,
certainly their conclusive character could
not be maintained. The contention of the
tax commissioner rests upon a much broader
base than this.
We shall not attempt an exhaustive re-
view of our statutes, but will point out the
use of this term in the body and title of
our statutes, in the beading and marginal
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CORBIIT y. BALDWIN
841
notes, and In the Indices of our statutes,
suflSdently to establish that the recognized
statutory use of this term conforms to our
rlew of Its meaning.
In the Bevlslon of 1902 we find four ref-
erences to state aid In the body of statutes.
Sections 3019, 183, 184, and 1368.
In PubUc Acts 1913, chap. 25, P. A. 1911,
chap. 187, and P. A. 1903, chap. 161, refer-
ences to state aid are made In the body of
the statutfe In all of these Instances In
which this term appears In the body of the
statute it refers to pecuniary assistance.
The term Is used in the beading of sec-
tions 3019, 2889, and 2242 of the General
Statutefi, and in each Instance it refers to
pecuniary assistance.
This term is found in the UUe of Public
Acts 1913, chap. 172; P. A. 1913, chap. 25; P.
A. 1911, chap. 183; P. A. 1909, chap. 82;
P. A. 1907, chap. 232; and P. A. 1905. d>ap.
226. In each of these instances the statutes
refer to pecuniary assistance.
The marginal notes to the following stat-
utes contain this term and the statutes refer
to pecuniary assistance: Public Acts 1916,
chap. 335; PubUc Acts 1913, chaps. 167, 172;
PubUc Acts 1911, chap. 187; PubUc Acta
1907, chap. 216 ; and Public Acta 1903, chap.
102.
In the Index to the Revision of 1902, un-
der the term "state aid," one-half of the
references are to direct pecuniary aid, and
one-half to support fumUibed by the state
through appropriations made to that end.
Id the indices of Public Acta of 1913, 1911,
and 1907, this term is used In reference to
statutes affording direct pecuniary aid.
Neither In the Revision of 1902, nor In any
pnbllc act thereafter, is the term "state aid"
used in the sense of an exemption from taxa-
tion. We have made an examination of the
statutes preceding 1902, but necessarily it
has not been a completely exhaustive one,
and in no single Instance have we found
that "state aid" was used in the statutes in
the sense In which my Brethren use it No
Instance of sach a statutory use was point-
ed out to us by counsel for the baiefldarles
and none has been found by the oonrt Un-
der these circumstances, no conclusion is
permissible but that the nse of the term
"state aid" In the PubUc Acta of 1915 was
that which had always obtained In our
statntes, viz. assistance furnished by the
state by direct pecuniary grant, or support
famished by the state through an appro-
priation duly made.
Our Private Acta show that the property
of many corporations and Institutions devot-
ed to charitable purposes are by their diar-
ter exempt from taxation in whole or in
part, while the property of many other cor-
porations devoted alike to charitable pur-
poses is not exempt. Under the court's in-
terpretation of "state aid," bequesto and
devises to all of these institutions and cor-
porations which are not exempt from taxa-
tion, and which do not receive from the state
assistance either in money grant or support,
are subject to the succession tax. So that
under our law not every corporation or
Institution devoted to charitable ends Is ex-
empt from the payment of ordinary taxes
as the court assumes, nor from the pay-
ment of the succession tax. This Inequality
which the court finds so glaring an Injustice
is not relieved by the court's extension of
the meaning of "state aid" to exemptions
from taxation.
Again some of these corporations and in-
stitutions are exempt in whole and some In
part indicating differences In legislative pol-
icy towards these institutions and corpora-
tion. By the court's interpretation of "state
aid" these differences are Ignored and the
least exemption from taxation carries with
it complete exemption from the payment of
the succession tax. The court ignores a
settled legislative public policy and recog-
nizes a public policy which has never ex-
isted. Again some of these Institutions are
made exempt from taxation provided the
town of their domicile so votes. These in-
equalities and inconsistencies consequent up-
on the court's interpretation would be avoid-
ed tf "state aid" Is accorded Ita settled
statutory meaning. If it is held to Include
exemptions from taxation these will be per-
petuated.
Is it likely that the General Assembly in-
tended that corporations and institutions to
which it had accorded a partial exemption
from taxation should, by reason of this ex-
emption, receive complete exemption from
the payment of any and aU succession taxes
upon bequeste and devises to it, no matter
how large? The history of exemption In our
succession tax legislation, far from support-
ing the theory that a tax exempUon is state
aid, is persuasive that "state aid," as used
in the succession tax act of 1915, was not
Intended to Include aid by way of a tax ex-
emption. Our first succession tax act made
all property within the jurisdiction of the
state subject to this tax, other than proi>erty
passing by will or by the intestate law to or
for the use of some charitable purpose, or
purpose strictly public within the state. Pub-
Uc Act, 1889, chap. 180, } L
PubUc Act 1897, chap. 201, repealed the
act of 1889, and enacted a succession tax
act which omitted this exception. Under this
act aU property devoted to a charitable pur-
pose was subject to the succession tax. So
the law remained untU the passage of PubUc
Act 1911, chap. 148, which provided that aU
glfto by wlU to or for the benefit of any
corporation or institution located in this
state, "whlcdi receives state aid by appropria-
tions provided for by the General Statutes,
• « • shaU be exempt from the payment
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101 AXLAienC REPORTEB
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of any succession tax." For the first time
In the history of our succession tax acts the
receipt of state aid was made a condition of
exemption. When the act of 1911 was pass-
ed, state aid was glren to some 17 hospi-
tals through appropriations made by public
act Public Acts 1900, chap. 118, and sec-
tion 2852. In the session of 1911, these
grants to hospitals were made through the
Si)eclal Laws, and these aK>roprlatlons to
our hospitals comprised then, as now, the
greater part of all state aid by way of ap-
proprlaticms by direct gift or by support fur-
nished. It would be futile to claim that state
aid by appropriations Includes aid by way of
exemption from taxation.
In Public Act 1913, chap. 231, the act of
1911 was repealed, and it was provided that
any property passing by will or Inheritance
in trust for any cliaritable purpose shall be
exempt from the succession tax. There has
thus been nothing up to this time to indi-
cate that the receipt of an exemption from
taxation was state aid, or that It weis Intend-
ed in any of these acts to Include within Qie
exemption from the succession tax property
exempt from ordinary taxes. The act of
1913 Indicates a return to the early policy of
exemption of the 1889 act
PubUc Act 1915, chap. 332, recast the suc-
cession tax law, repealed the act of 1913, and
re-enacted the act of 1911, except that It
omitted the words, "by appropriations pro-
vided for by the General Statutes." The rea-
son for the omission is apparent Dp to the
passage of this act It must be conceded that
there were only two forms of state aid known
to our statute law, viz. one by direct gift and
one by the furnishing of support by means
of an appropriation made for that purpose.
State aid by way of an exemption from tax-
ation was unknown to our law. Prior to the
session of 1911, state aid, as we have point-
ed out, had been furnished certain designated
hospitals by direct appropriation, and with
the session of 1911, and thereafter, these
appropriations were made in the Special
Laws. A re-enactment in 1916 of the act of
1911 would have omitted from Its benefits the
very- institutions to whom state aid had been
the most generously extended. At this time
It was understood that, while the majority of
the appropriations for state aid were made in
the Special Laws, some also were made by
the Public Acts, and some aid was extended
by way of support made through appropria-
tions of public moneys for that purpose.
Under these circumstances, the General As-
sembly, desiring that all corporations and
institutions receiving state aid should be
exempt from the payment of the succession
tax, could not limit the beneficiaries to those
receiving state aid by appropriations, other-
wise those receiving state aid by way of sup-
port would have been excluded, but by mak-
ing the receipt of state aid the condition of
(>xeni];>tlon it would include the two -classes
which bad, up to that time, been the sole re-
cipients of state aid. The reason supporting
this form of exemption is found in the fact
that increased payments by the state will
be avoided by the exemption to institutions
receiving state aid, but in the case of in-
stitutions and corporations to whom the state
makes no payment or furnishes no support no
such reason exists for making the exemption.
We do not think it Is of any practical im-
portance whether the rule of strict or liberal
construction of this act is adopted, since
with either construction the result must be
the same. Since the court has adopted the
liberal rule of construction, it Is well to in-
stance the rule which the authorities make
applicable to a case where an exemption is
claimed from a general scheme of taxation.
"Such exemptions are neither presumed nor
allowed, unless there appears from the lan-
guage of the statute or charter to be a clear
intention on the part of the Legislature to
make an exception to the general rule." Coo-
ley on Taxation (2d Ed.) 204 ; Ford r. DelU
& Pine Land Ca, 164 U. S. 663, 17 Sup. Gt
230, 41 L. Ed. 690; In re Hlckok's Estate, 78
Vt 259, 62 Atl. 724, 6 Ann. Gas. 578. "Stat-
utes purporting to grant exemptions from
general taxation are to be strictly construed."
Cooley on Taxation, 205. We agree with the
Attorney General when he says, "If the Gen-
eral Assembly had intended to exempt all
property passing to corporatl<m8 or Institu-
tions exempt from taxation, it Is fair to as-
sume that it would have expressed that In-
tent by express language, as in the New York
statute and in the laws of Vermont" My
Brethren say that it Is inconceivable that
the General Assembly did not In words Umlt
the meaning of "state aid" If sudi was its
Intent Until the passage of the act of
1915, "state aid," as used In our statutes,
had a recognised meaning, and its use In oth-
er statutes will be presumed to be with a
similar meaning unless the contrary appears.
There Is nothing in the act of 1015 which
tends to show that it was Intended by dte use
of "state aid" in thU act to add to its statu-
tory meaning assistance resulting from a tax
exemption.
The Special Commlasioa on Taxation In Its
report to the General AssemMy In 1917 de-
scribed the tax laws enacted in 1915 as
"greater both In number and importance than
the General Assembly bad ever before made
at a single session." Among the 16 principal
changes enumerated was "the whole inheri-
tance tax law was recast • • ♦ The ex-
emptions of trusts for diaritable purposes
within the state, other than gifts to munic-
ipal corporations of this state for public pur-
posea, were repealed." If this committee had
thought that corporations and Institatlons
which were tax exempt were not subject to
the succession tax it cannot be doubted that
it would bare pointed out that. In spite of
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OOBBIN T. BALDWIN
843
tbe repeal of ttie IdlS proTlslon, the greater
number of trusts for charitable puipoaes
were not effected by this repeal
UnqnestloDably the committee were of the
opinion that, under the act of 1915, all such
trusts, except those receiving aid In the way
of money or support, were by the act made
subject to the succession tax. The commit-
tee further reported: "We recommend the
exemption from suocession taxes of all testa-
mentary gifts to corporations created under
the laws of Connecticut for charitable pur-
poses." Would It have so reported if It had
been of the opinion that all corporations ex-
empt from taxation were in receipt of state
aid? The significance 'of the conclusion of
the committee is the greater from the fact
that its chairman was former Chief Justice
Baldwin.
Contempomneons construction of this act
Is of great weight. So far as we can learn,
tbe claim that tax exemption Is state aid has
never before been raised In any proceeding,
and no official has ever acted in the view
that a charitable trust which was tax exempt
was for that reason in receipt of state aid.
nie majority opinion finds in the legisla-
tive history of the exemption from ordinary
taxes of pn^perty dedicated by gift to public
charitable uses a policy of colony and state
that no part of such gifts shall be depleted
through the levy of a tax or the imposition
of other state burden upon it And the court
finds in a present proposal to. make any of
these gifts subject to the successi(m tax "a
new and radical departure in policy in strik-
ing contrast with that which heretofore has
characterized our governmental history."
We fear the strong sympathy of the court
with the charitable purposes of these cor-
porations and institutions which claim an
exemption from the payment of the succes-
sion tax has momentarily caused it to forget
that between 1897 and 1911 such gifts were
subject to the suocession tax, and between
1911 and 1913 tli^ were so subject unless the
corporations or institutions to which they
were glV«i were the recipients of state aid
through appropriations under tbe General
Statutes. There was no "new and radical
departure" — merely a return to a former
policy of taxation.
We refrain- from expressing our view upon
the wisdom ot imposing a succession tax up-
on any corporations or institutions devoted
to charitable purposes. We regard that de-
cision as within tbe legislative function. The
General Assembly enact statutes, the Judi-
ciary do not
That Connecticut had, as a rule, exempted
corporations and institutions devoted to char-
itable purposes from the payment of ordi-
nary taxes indicated a public policy as to
this class of exemptions. It did not indicate
a public policy as to a totally different form
of raising revenue by means of death charges.
Our first succession tax law was passed in
1888; necessarily our puUic policy as to
succession taxes originated after this date.
It was no part of a policy originating long
before the succession tax law was passed.
We have held itbat succession taxes are
death duties, charges upon the right or privi-
lege of devolution, and not taxes upon prop-
erty or person. Nettleton's Appeal, 76 Conn.
235, 56 Atl. 565; Gallup's Appeal, 76 Conn.
617, 67 AH. 699; Warner v. Corbin, 100 Atl.
354. Since suocession taxes are a totally
different concept from tbe ordinary tax, it
follows that a public policy concerning the
ordinary tax has no relation to a successloa
tax. The history of our succession tax laws
furnishes an unanswerable argument to the
contention that the puMlc policy of the state
has been and is apilnst making all gifts to
coriwrations and Institutions devoted to pub-
lic purposes subject to the succession tax.
After an experience of 10 years exempting
from the payment of the succession tax all
property of sudi corporations and institu-
tions devoted to charitable purposes, tbe ex-
emptioQ was repealed and so remained for
14 years. This change In oar policy was
taken with deliberation.
The General Assembly enacted the 1897
statute through its knowledge that the liv-
ing often failed to pay their Just share of the
cost of government, and that it was Justice
to the state that in the final settlement of the
estate of the dead tbe debt of the deceased to
the state should, at least in part, be paid be-
fore payments should be made to the objects
of his bounty, even though these were chari-
table trusts. We have approved of this as a
legitimate reason for succession taxes, and
so have the United States Supreme Court
Hopkins' Appeal, 77 Conn. 644, 640, 60 AtL
657; Plumber v. Coler, 178 U. S. 115, 20 Sup.
Ct 829, 44 li. Ed. 998.
That the Geujeral Assembly of 1807 intend-
ed an entire reversal of the early policy is
perfectly clear from a reading of the acts of
1889 and of 1897. The fact that all corpora-
tions and institutions devoted to charitable
purposes were, under the act of 1897, for 14
years subject to tbe succession tax, is con-
clusive of the existence during that time of a
public policy favorable to the imposition of a
succession tax ui)on charitable trusts of this
character. The change in 1911, exempting
only those corporations and Institutions
which receive state aid "by appropriations
provided for by the General Statutes," indi-
cated a change in public policy to the end
that such of these corporations and institu-
tions as received state aid by appropriations
through the General Statutes should be ex-
empt from the payment of succession taxes.
The change in 1913 indicated a reversal to the
early i)ollcy exempting aU instltntlons and
corporations devoted to charitable puiiioses.
The change in 1915 indicated a partial re-
versal of the policy of exemption of 1013.
There was no indication in the language used
or In the title or history of this act that it
was the pubUc policy to moke evory corpora-
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101 ATLANTIO BBPORIEB
(P*.
tion and Institution which was exempt from
taxation free from the payment of the sac-
cession tax.
The tax commission report to which we
have referred accompanied Its recommenda-
tion that all charitable trusts be made free
from the succession tax by a bill carrying out
this recommendation. The General Assembly
of 1917 «iacted several of the recommenda-
tions of this commission, but re-enacted the
pert relating to the exemption of corpora-
tions and institutions receiving state aid Just
as It appeared in the act of 1915. The Gen-
eral Assembly thus refused to foUow the rec-
ommendaton of the commission, and exempt
from the succession tax "all property passing
to or In trust for the benefit of any corpora-
tion Incorporated under the laws of this state
solely for charitable purposes." So that the
latest expression at the public policy of the
state Is a refusal to adopt the policy which
the majority opinion holds to be the estab-
lished public policy of the state.
Under the court's ruling, every corporation
or institution which is exempt from ordinary
taxation, in whole or in part, is free from the
succession tax. And this holds whether the
corporation or institution be devoted to chari-
table purposes or not. Surely the General
Assembly never intended to exempt business
Corporations from the succession tax, al-
though they might be exempt from the pay-
ment of ordinary taxes. Under the court's
construction of Uiis act, its effect. Instead of
restricting the exemptions of 1013, would en-
large them beyond those luiown in any of our
succession tax laws.
The General Assembly which passed the
1916 act faced a serious financial situation.
The expenses of the state for outran its reve-
nue. The Governor of the state recommended,
and the General Assembly passed, much taxa-
tion legislation enlarging the old and discover-
ing new sources of revenue. In that crisis it
would Indeed have been strange had Govern-
or and General Assembly intentionally have
released from the operation of the succession
tax charitable trusts which are tax exempt,
but do not receive state aid, when the amount
Involved was a very substantial sum. The
Tax Commlssicm of 1917 reported as their
estimate from their recommendation that
Connecticut diarltable corporations be made
exempt from the payment of succession taxes
the following: "Keductlon of succession tax-
es charged to Connecticut charitable corpora-
tions, probably on the average about $200,-
000." This is state history, and it tends
strongly to show that the General Assembly
did not intend, by the act of 1915, to include
under state aid tax exemptions granted cor-
porations and insUtutions.
We concur in the decisions upon the other
points involved in these appeals.
RORABACK, J., concurred.
(2S7 Fa. K2)
WRIGHT ▼. BRISTOL PATESIT LEATHEB
CO.
(Supreme Court of Pennffrlvania. April 16,
1917.)
1. Tbiai. «s>180— Jddoment on the Vkbdict
— Statutb.
Where a jury has disagreed, a party who Iiaa
submitted a point for binding instructions in his
favor has the right to move the court for judg-
ment on the record under authority of the Act
of AprU 20, 19U (P. U 70).
2. CONTKACTS «=>176(1) — CoNSTBUonoN —
Question fob Jubt.
Where there is nothing doubtful or ambigu-
ous as to the intention of the parties a^ dis-
closed by their contract, its construction is a
question of law for the oourt.
3. CoNTBACTS $s>271—Rbsci8SION— Notice.
A notice for the rescisuon of a contract must
be clear and unambiguous and convey an un-
mistakable purpose to insist on the rescission.
4. CONTBACTB ^=>264 — RESCISSION— METHOD.
Where a contract reserves to one party th«
right to rescind it, and prescribes the mode in
which it may be done, or makes the doing of
certain acts a condition to the right to reacbd,
such party cannot rescind in any other way, nor
without complying with the conditions.
5. Sales «=124, 127— Rescission— Noticb-
Restobation.
A party having a right to rescind a contract
of sale and who electa to do so must give no-
tice to the seller and offer to return the thing
sold before suing to recover back his money, un-
less tlie consideration is entirely worthless.
6. Saxes «=»124—Fbaui>— Rescission— Res-
toration.
Rescission <m the ground of fraud and fail-
ure of consideration, etc., is a right in equity
to a restoration of the consideration, and the
party claiming the restoration must return the
property or reconvey the title.
7. Saum «=»124 — Rescission— Sufficienot.
Under a contract for the sale of a secret
formula, executed September 1, 1913, providing
that the buyer should have tiie right at any
time after the first payment to discontinue the
use of the formula, and that on notice of dis-
contimiance and the return of the formula by
rcKisterod mail he should be relieved from lia-
WUty for further payment, a failure to return
the formula until April 10, 1914, did not effect
a rescission so as to relieve the buyer from, pay-
ments to that date, notwithstanding his claim
that the formula was worthless, and that, as he
had memorized it, its return was unnteessaiy.
Appeal from Oourt of Common Pleas, Phil-
adelphia County.
Assumpsit by Lucy W. Wright against the
Bristol Patent Leather Company. Judgment
for plalntlfF, and defendant appeals. Af-
firmed.
The facts appear in the following opinion
by Rodgers, J., in the court of common pleas:
This is an action in assimipsit to recover the
balance due upon five installment payments on
the total sum of $5,000, under a contract for
the absolute sale of the use of a certain secret
formula to prepare patent leather without sun
drying. Defendant reserves to itself a special
right to rescind at any time before final pay-
ment, upon compliance with certain conditions.
[I] The case was tried before a jury on Jan-
uary 4 and 5, 1917. Plaintiff presented a point
for binding instructions in her favor for |1,500.
with interest, which was refused. The jury dis-
«S3lV>r other cases ••• aam* toplo and KBT-NUUBSB In all Kay-MuinlMied Olgeatt and Iad«z«
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WRIGHT V. BRISTOL PATENT LEATHER CO.
845
agreed and was discharged. Plaintiff now moyea
for judgment in her favor in accordance with
the provisions of the act of April 20. l&tl (P.
L. 70). That the plaintiff, having aabmitted a
point for binding direction in her favor has
the right to move the court for judgment, in ac-
cordance with the act of April 20, 1»11 (P. L.
70), has been decided in the ease of Fanners' &
Breeders' Mutual Reserve Fund Lave Stock In-
surance (>. v. Curran, 65 Pa. Super. Ct. 352,
in nn opinion by Kephart, J.
The material facts proven upon the trial arc
mibstantiallv as follows: The contract is dated
the 15th day of September, 1913. For a period
of about six months prior to the date of the con-
tract for the sale and purchase of the formula in
question the defendant company had been car-
rying on experiments with a fluid mixture fur-
nished them by the plaintiff to enable it to test
the merits and value of the process for use in
its business, before committiDg itself to the con-
tract-
Section 3 of the contract provides the method
bv which the defendant might terminate or re-
scind the contract, and thereby relieve itself of
the payment of the various installments fixed
therein. The portion of said section important
in this cause is as follows: "The party of the
first part shall have the right at any time after
the first nayment has been made to discontinue
the use of such formula or process and method
of treatment and upon said discontinuance, no-
tice of which has been sent by the party of the
first part to the party of the second part by reg-
istered mail to the last-known address of the
party of the second part, together with the re-
turn of said formula, the party of the first part
shall not be reouired to make any further pay-
ments and all liability on the part of the party
of the first part of any kind whatsoever under
this contract shall cease and terminate abso-
lutely," etc.
Defendant failed to return the paper contain-
ing the formula by registered mail, as providod
for in this section of the contract, until April
10, 1914. Plaintiff claims, therefore, that under
its terms she is entitled to a payment of $500,
which became due Jnnunry 1. 1914, nnd a pay-
ment of $1,000, due March 1, 1914. The defend-
ant claims that it is entitled to have a jury pass
upon the following questions:
(a) Was the formula worthless to the defend-
ant in its business, and therefore was there a
■fiiilurp of consideration?
(b) Was the plaintiff guilty of fraud and mls-
Teprei^entation as to her formula or process as
a means of inducing defendant to make the con-
tract?
M IMd defendant in letters dated December
16. 1913. Decpmber 18. 1913, and December 24,
1913, substantinlly perform the contract, even
though its performance was not according to the
terms set forth in the agreement?
Accepting its position in its strongest sense
in the letter of Dncemhcr 24. 191.^. to plaintiff,
wherein defendant claims it substantinlly re-
scinded the contract, we find inter alia," this
language : "As written you, we can do nothing
as regards to sticking until spring, and if you
will peruse our letters of the 16th and 18th, you
win note that our reasons are ample. When we
again nm into warm weather, we may take the
subleot un again with .vou, at which time we
■will resume our payments as per our agreement.
We fire sorry that our experiments wore not suc-
cessful enoush to warrant our making further
payments and the cost of further experiments."
In connection with this letter the president of
the defendant company admitted in his testi-
mony at the trial that it was the intention of
the defendant to resume experiments with the
process at some future time. Therefore de-
fendant appears to have held out the suggestion
to plaintiff that payment under the contract
would be renewed or resumed in the summer sea-
son. In this attitude of defendant probably may
be found the reason for its failure to return the
formula to plaintiff by registered mail. The
president of defendant company testified that
the failure to return the paper containing the
formula was due to the fact that he considered it
worthless; that he had memorized its contents,
placed it in his safe, and had forgotten it en-
tirely.
[2] In our opinion, the case hinges upon the
question as to whether the defendant, in order
to be released from further payments under the
contract, was not bound to return the paper con-
taining the formula to plaintiff by registered
mail, as provided in the contract. Here tiie par-
ties themselves, after about six months of ne-
gotiating and experimenting with this process
for treatment of patent leather, have provided
the terms on which the contract they finally
entered into should be abrogated. It is undis-
puted that defendant did not pursue the method
of rescission provided therein. We are persuad-
ed that neither plaintiff nor defendant can dis-
pense with such manner of cancellation or re-
scission without the consent of the other. Where
there is nothing doubtful or ambiguous as to the
parties' intentions as disclosed in the contract,
the effect of them is for the court to decide as
a question of law.
[3] In Black on Resdssion of Contracts, voL
2, § 574 (1916), the general rule is hiid down
as follows: "To be effective, a notice for the
rescission or termination of a contract must be
clear and unambiguous, conveying an unques-
tionable purpose to insist on the rescission. And
where the conduct of one having the right to re-
scind a contract is amMguous, and it is not dear
whether he has rescinded it or not, be will be
deemed not to have done so."
[4] And again in the same work (volume 2, $
613 [1916]) the rule is held to be that : "Where
a contract reserves to one of the parties the
right to rescind it, and also prescribes the mode
in which such right shall be exercised, or pro-
vides that certain specified acta shall be done h(y
that party as a condition upon his right to re-
scind, it must be strictly followed, and the par-
ty cannot rescind in any other mode nor without
complying with the conditions." To the same
effect is the doctrine in Ruling Case Law, vol. 6,
p. 922.
[5, 61 The principle in Pennsylvania is well
settled that, where a party has a right to re-
scind a contract, and elects to do so. he must
give notice to the vendor and offer to return the
thing sold before suit to recover back his money,
unless the thing which was the consideration
of the contract be entirely worthless ; also that
rescission on the groiud of fraud, failure of con-
sideration, etc, is a right in equity to a restora-
tion of the consideration, and the party claiming
the restoration must return the property attain-
ed or reconvey the title. Babcock v. Chise, 61
Po. 427, 100 Am. Dec. 654; Beetem's Admin-
istrators V. Burkholder, 69 Pa. 249; Howard
V. Turner, 155 Pa. 349, 26 AtL 753, 35 Am. St.
Rep. 883.
In Rumsey v. Shaw, 212 Pa. 576, 679, 61 Atl.
1109, 1110, it was held that: "When a party
relies upon a rescission of a contract, he must
show that he elected to rescind with reasonable
promptness upon the discovery of the fraud, and
must tender a return of the property or security
which was the subject-matter of the contract
Cornelius v. Lincobi National Bank, 15 Pa.
Super. Ct 82."
Butler et al. v. School District of the Bor-
ough of Leighton, 149 Pa. 351, 24 AU. 308, was
an action for the price of furnaces furnished to
schoolhonses under a written contract A pe-
riod was fixed within which the test of the fur-
naces was to be made, which period was to be
extended for two months if desired in writing
before the first limit was reached. The directors
failed to give notice to the plaintiff on or before
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101 ATLANTIC REPOBTBK
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the date agreed upon, that the furnaces did not
meet the requirements of the contract. There
was some evidence that the secretary met plain-
tiff accidentally and told him that there was
comnlaint concerning the heaters. The court be-
low left it to the jury to say whether or not the
conversation amounted to notice. On appeal the
court below reversed, and the Supreme Court
held (149 Pa. 355, 24 Atl. 3081 : "Where there
is a sale upon trial, with a time fixed by the
partiest a failure to return the goods or give
notice in accordance with the agreement makes
the sale absolute."
In Southwark Mills Co. ▼. Slepin, 46 Pa.
Super. Ot 296, it was held that: "Provisions
in a contract of sale that cancellation of orders
can only be made for breach of contract, and
then only within five days after delivery of the
goods, and that the purchaser is not entitled to
allowance for defects unless claimed within ten
days after delivery, are proper and reasonable,
and will be enforced % the courts according to
their terms."
Morrow v. Campbell. 7 Port. (Ala.) 41, 31 Am.
Dec. 704, is a case similar in its facts to the
case under consideration. There the plaintiff
sned on an agreement in which be sold defendant
a patent right for land in Arkansas. By its pro-
visions defendant agreed to pay $500 unless the
contract was rescinded on or before October 1,
1833, by return of the deed of sale of said right
to the plaintiff. On or before that day plaintiff
was informed that the deed of sale was lost and
that defendant abandoned the contract. Ver-
dict for defendant. Held on appeal. Judgment
reversed. Collier, C. J., said (7 Port [Ala.] 44,
31 Am. Dec. 706) : "It has, however, been urged
that, as the deed could subserve no purpose
in the hands of the plaintiff, there could be no
necessity for requiring its return before the re-
scission of the contract. Would not its retention
place it in the power of the defendant to sell
patent rights to the prejudice of the plaintiff's
interests? Be this as it ma.v, the parties them-
selves have provided the terms on which their
contract shall be abrogated, and neither can dis-
pense with them, without the consent of the
other."
[7] We are of opinion that the construction of
the contract and the various letters which were
offered in evidence were for the trial judge ; that
the defendant has interposed no legal defense,
and that plaintiff was entitled to an affirmance of
her point for binding instructions; that the
return of the paper containing the formula, by
registered mail, to plaintiff, was a condition pre-
cedent that the defendant was otAiged to com-
ply with before it could relieve itself of liability
to pay the installments as they fell due under
the contract. There was no definite and un-
ambiguous notice of rescission given plaintiff
by defendant until April 10, 1914. This was
a letter from defendant's attorneys to plaintiff,
in which the formula was returned to her. Hav-
ing failed to return the formula until after two
installments had fallen due under the contract,
the defendant became liable to plaintiff for the
inBtallmenta of $500 which fell due January 1,
1914, and of $1,000 due March 1, 1914, with
interest thereon from their respective due dates.
We, therefore, sustain the plaintiff's motion,
and now enter iudgment in her favor and against
the defendant for the sum of $1,766.24, being the
plaintiff's claim of $1,500 (the two installments
above mentioned), with interest to into.
On the trial the jury disagreed, and the
ivurt thereafter entered Judgment for the
plaintiff on the record In the sum of $1,766.24,
being the amount of the claim with Interest.
Defendant appealed.
Argued before BROWN, C. J., and STEW-
ART, MOSCHZISKBE, FRAZE5R, and WAI^
LING, JJ.
Blton 3. Buckley, of Philadelphia, for ap-
pellant Grover C. Ledner and Charles I.
Cronin, both of PhUadelphia, for appeUee.
PER CURIAM. Tlila judgment is affirmed.
on the opinion of the learned court below di-
recting it to be entered.
(2S7 Fa. sa)
JOSEPH V. NATLOR.
(Supreme Court of Pennsylvania. April 18,
1917.)
1. Daiuoes «=»151— Pleading— ExiCMPLABT
Dauaoes.
As a general rule of pleading. It is not neces-
sary to claim exemplary damages by name;
It bemg sufficient it the facts alleged and the
proofs be such as to warrant their assessment
2. Husband and Wrra «s»349— Drbauchino
Wife— Punitive Dakaqes.
A husband may recover punitive damages
for the debauching of his wife,- not only by
way of compensation, but as punishment, as,
when a wrongful act is done intentionally, with-
out just cause or excuse, malice is presumed.
3. Husband and Wife <8=326, 334(1)— Aukw-
ATiON OF Affections— Damages.
_ The fact that husband and wife may not be
living together harmoniously when the wife's
affections are alienated does not affect the hus-
band's right to recover therefor, although the
circumstance may be considered in mitigation of
damages.
4. Tbiax «=>146— Withdrawai. or Jubob —
Ibrelevant Remarks— Objection.
In an action to recover for debauching plais-
titTs wife and for the alienation of her affec-
tions, the refusal to withdraw a juror on defend-
ant's motion because of her immaterial and ir-
relevant remarks while testifying was not re-
versible error, where no objection thereto was
made until she stopped a long tirade, and where
the irrelevant testimony was stricken out, and
there was no exception to the court's refusal to
withdraw a juror,
5. Tbial ^=>146 — Withdbawal of Jtjbob —
Irrelevant Remabks.
In such case, where defendant admitted his
illicit relations with plaintiff's wife, but de-
nied that he was afflicted with a venereal dis-
ease or communicated it to her, as alleged, the
trial judge did not abuse his discretion in re-
fusing defendant's motion for the withdrawal of
a juror because of her remarks while on the
stand that she had seriously wronged her hus-
band "for something [meaning the defendant]
that is half rotten," and "all I ask the court is
to compel him to remove the bandages from his
legs, and that will show you he is rotten."
where, prior to such remarks, the defendant's
condition had been so fully discussed that they
could have had no prejudicial effect upon the
jury, especially where his counsel had made no
objection to the first admission of evidence as to
his physical condition.
Appeal from Common Pleas, PhUadelphia
County.
Trespass by Luther Joseph against Mor-
ris Naylor to recover damages for the de-
bauching of plaintiff's wife and for the alien-
ation of her affections. Verdict for plaln-
Cs^For oilMr cases sm mubs topic and KBT-NUMBBR in all Ker-Numberad Dlgsiu sad Indtxss
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Pa.)
JOSEPH V. ITATIiOB
847
till for 13,000, and Judgment thereon, and de-
fendant appeals. Affirmed.
Argued before BROWN, 0. J., and STEW-
ART, MOSCHZISKQB, FRAZEB, and WAL-
LING, JJ.
Henry J. Scott, of Philadelphia, for appel-
lant John Reynolds, of Philadelphia, for ap-
pellee.
MOSCHZISKER, J, Plaintiff, Luther Jo-
seph, sued in trespass to recover damages for
debauching his wife and alienating her af-
fections. He obtained a verdict for $3,000,
apon which judgment was entered, and the
defendant has appealed.
We shall not go into the nasty details of
the evidence further than to outline the facts
essential to a proper consideration of the
questions brought before us for determina-
tion. Plaintiff was married in 1891, and liv-
ed with his .wife, in comparative happiness,
for nearly 20 years. The latter met the de-
fendant about F^ruary, 1911, and almost
Immediately they entered upon a course of
marital infidelity. The wife thereupon be-
came indifferent to her husband and treated
him accordingly. Although plaintiff's work
took him away from the city for considerable
periods, yet he always supported his spoude
by generous allowances from his wages, and
upon returning to his home, from time to
time, occupied the same room with her. On
these occasions, however, after becoming ac-
quainted with the defendant, Mrs. Joseph fail-
ed to show affectlob for her husband, and
persistently refused him the rights of that
relation. Finally,, in 1915, plaintiff discover-
ed that hts wife was suffering from a loath-
some and destructive venereal disease, which
she had contracted from the defendant, and
forthwith left her, subsequently commencing
the present action.
At trial the defendant did not deny his il-
licit relations with plalntifTs wife, but con-
tented himself with a denial of the allegatiota
that he was afflicted with a venereal disease
and was responsible for the unclean condi-
tion of the latter. The several assignments
of error are summarized in appellant's state-
ment of the qtiefltlons Involved under three
beads: (1) Since punitive damages were not
specially claimed and no express malice
against the plaintiff was shown, was It prop-
er to submit the question of such damages to
the Jnry? (2) Did the court below err In re-
fusing to withdraw a Jnror when the wife
of the plaintiff, as a witness interjected "ir^
relevant, immaterial matter and objectionable
remarks") (3) Was like error committed
when plaintiff's wife, "after a vituperative
attack on defendant, fainted on the witness
stand and was removed therefrom by a nurse
and doctor"?
[1-3] As a general rule of pleading, "it Is
not necessary to claim exemplary damages by
name ; it being sufficient if the facts alleged
and the proofs he snch as to warrant their
assessment." 8 R. C. L. { 168, p. 626. It is
the settled rule in this state that a husband
may recover punitive damages for the de-
bauching of his wife, not only by way of com-
pensation to the plaintiff, but as punishment
of the defendant (Cornelius v. Hambay, 150
Pa. 359, 24 Atl. 515; Matheis v. Mazet. 164
Pa. 580, 30 Atl. 434) ; for, when a wrongful
act is done intentionally, without Just cause
or excuse, malice is presumed (Barr v. Moore,
87 Pa. 385, 30 Am. Rep. 367). See, also, Wirs-
ing V. Smith, 222 Pa. 8, 16, 70 Aa 906. The
fact that a husband and .wife may not be
living in perfect harmony when the latter's
affections are alienated does not affect the
right of the former to recover in an action
such as the one at bar, although the circum-
stance may be considered in mitigation of
damages. Burning v. Hastings, 183 Pa. 210,
38 Atl. 627. The authorities Just cited are
more than sufficient to dispose of appellant's
first complaint; we may add, however, that
all the issues properly Involved in this case
were submitted to the Jury in a fair and cor-
rect charge.
[4] The first assignment of error, covering
the matters set forth in the second question
involved, might well be dismissed by the mere
statement that defendant took no exception
to the ruling there brought into question;
but it is only fair to note that no objection
was entered to the "irrelevant, immaterial
matter and objectionable remarks" now com-
plained of, nntil the witness reached the end
of a long tirade, whereas the trial judge
states he would have stopped the testimony,
had counsel asked him so to do, at any ob-
jectionable point Moreover, it appears that
a ruling was in fact made, striking from the'
record all the irrelevant and hearsay evidence
referred to in the assigntnent now under con-
sideration.
[{] As to the- complaints covered by the-
third question Involved, the only matter
therein which requires serious consideration
Is the further improper remark made by the
plaintiff's wife, when upon the stand, to the.
effect that she had seriously wronged her bus-
band "for something [meaning the defendant]
that is half rotten," adding:
"All I ask the court is to compel him [de-
fendant] to remove the bandages from his legs,
and that will rhow you be U rotten,"
At argument we were impressed that this
was ^uch a serious breach it must have prov-
ed, prejudicial to the defendant and that the
incident Imperatively called for the with-
drawal of a juror. A careful reading of the
entire body of the evidence, however, shows
that prior to the offensive utterances just
quoted the case was so thoroughly impregnat-
ed with the allegation that the defendant was
and had for years been a diseased man, whose
legs were sore with syphilis, that we do not
now feel it at all likely the remarks in ques-
tion had any material prejudicial effect upon
the Jury. The notra pf testimony show that
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848
101 ATLANTIC RBPORTJ5B
(Pa.
tbia element in the case— Mr. Naylor's al-
leged physical rottenness — was first Intro-
duced, ^thont objection on the part of the
latter, when connsel for the plaintiff proved
by Mrs. Joseph her own diseased condition
and that this was due to Intercourse with the
defendant At that time this whole subject
was gone Into ad nauseam, and the witness
testified that defendant had said she was not
the first woman who accused him of giving
her syphlUs; that he also informed her of
the fact that he had serious trouble with his
legs, due to that disease. The trial had been
on for some time, and the plaintiff's .wife
made the objectionable remarks now before
us when she was overwrought by a long, skill-
fully conducted cross-examination, which
likewise may account for her condition when
she left the stand; but, however that may
be, under the peculiar circumstances at bar,
we are not convinced the trial judge abused
his discretion when he refused to withdraw a
juror and continue the case.
The assignments of error are overruled,
and the judgment la affirmed.
(267 Pa. 489)
NAZABBTH rOTTNDRT & MAOH. CO. v,
MABSHAIjL et al-
(Supreme Court of Pennsylvania. April 16,
1917.)
1. dibmissai, and nonsutt 4=381(2)— rule to
Taex off Nowstjit — Statutk,
Under Act March 11, 1876 (P. I* 6), pro.
Tiding for nonsuit with leave to move the court
in banc to set the same aside, a rule to take off
a nonsuit must be considered and disposed of
by the court in banc, and not by the trial judge
alone.
2. Appeal and ESbbob •=»106 — Obdebs Ap-
pealable—Nonsuit.
No appeal lies to the entry of a nonsuit, but
only to the refusal to take it off.
8. Pbincipal and Sdrett «=9S1— Constbtto-
TION OF Bond— Satisfaction.
Under a bond given after the obligee had
sold to the principal obligor two engines which
were in turn sold by the obligor to two paper
companies, providing that if after trial and after
the obligor nad used everv effort to make them
satisfactory to the punuiasers they were re-
jected by the purchasers and promptly returned
to the obligee in good condition, except for rea-
sonable wear, the penal sum of $S,000 should
be reduced by the sum lyt $1,400 on return of
one engine, and $2,000 on the return of the
other eneine, the payment of the full amount of
the purchase money or the return of both en-
gines in good order would satisfy t^e bond, and
on the return of one engine in bad order the
obligor would be liable for the expense of re-
storing it to as good condition as when shipped.
4. EVIDINCE «=>131<-00NDITI0IT OF BnOINEt—
Rblxvanct.
In such action, testimony of a witness, who
was familiar with the kind of engine and its
construction, as to the condition of the engine
a wedc before the trial, was admissible, where
there was other evidence that it waa in the
same condition when returned.
Appeal from Court of Common Pleas,
Northampton County.
Assumpsit on a bond by the Nazareth Foun-
dry & Machine (ISompany against Frank J.
Marshall and others. From a final order re-
fusing to take off a compulsory nonsuit,
plaintiff appeals. Reversed with a proce-
dendo.
Argued before MB5STREZAT, POTTER,
MOSCHZISKBR, FRAZER, and WAL-
LING, JJ.
W. H. Kirkpatrl(&, ot Baston, for appel-
lant Edw. J. Fox, Jas. W. Fox, and F. B.
McAlee, all of Baston, for appellees.
POTTER, J. Thte was an action of as-
sumpsit brought to recover upon a bond giv-
en by defendants to plaintiff, dated July 24,
1013, for the sum of |6,800. The bond con-
tains a redtal that the Marshall Machinery
& Supply Company is indebted to plaintiff
In a sum of about $1,800 in addition to the
cost of construction of two Marshall paper-
making engines, and that it is deemed advis-
able by all parties Interested that the for-
mer company furnish a good and sufficient
bond to plaintiff, conditioned for the prompt
payment of the purdiase price of the two
engines. The condition of the bond is that
the Marshall Machinery & Supply Company
should pay or cause to be paid to plaintiff
company the sum of $1,400 within three days
after one engine should be received from the
Cylinder Paper C!ompany, and also the snm
of $2,000 within three days after the other
engine should be received from the John
Lang Paper Company. It was furth« made
part of the condition that:
"If after due trial, and after Mr. Marshal)
has used every effort to make the above-men-
tioned engines satisfactory to the purchastaa,
and the said engines or either of them are re-
jected by the said purchasers, and promptly re-
turned to the Nazareth Foundry & Machine
Company in as good a condition as when ship-
ped, reasonable wear and tear excepted, that
then and in any such case, the penal sum pay-
able under this bond shall be reduced by the sum
of $1,400 if the machine shipped to the Cylinder
Paper Company ia returned, and $2,000 if the
engine to be shipped to the John Lang Paper
Company ia returned."
In plaintiff's statemoit of claim it is ad-
mitted that the engine shipped to the Cylin-
der Paper Company had been accepted and
paid for by the purchaser, and that the price,
$1,400, had been received by plaintiff, but It
is averred that the purchase price of the oth-
er engine had not been paid, and that the
engine had not been returned to plaintiff in
good condition. Plaintiff claimed to recover
on the bond $2,205.97, with interest In the
answer and counterclaim of defendants it i»
averred that the Marshall Machinery & Sup-
ply Company had paid Its entire Indebtedness
to plaintiff, and that, In accordance with the
terms of the bond. Mr. Marshall had used
every effort to make the engine which had
been returned satisfactory to the purchaser.,
but that the same had been rejected and re-
^s>ToT othar cum ••• nam* topli and KBT-NXWBBB la all Kay-Numbuad Dlgasts and Indazas
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KAZAKETH FOU17DRT A HACH. CO. y. MARSHALL
849
turned to plaintiff In as good condltlom as
when shipped, reasonable wear and tear ex-
cepted. Upon the trial, after plalntUTs tes-
timony was c<mcluded, defoidants' connsel
moved for Judgment of compolsory nonsuit
on the grotind dilefly that no proof had been
made that the Marshall Machinery & Supply
Company had erer received from the John
Lang Paper Company the sum of $2,000, the
price of the machine shipped to that com-
pany. The trial Judge granted the motion,
whereupon plalntlfCs counsel moved for a
rule to strike off the nonsuit, which was de-
nied, as was a motion to strike off the non-
suit. Plaintiff has appealed.
[1, 2] The first and second assignments al-
lege error in the refusal of a rule, and of a
motion to take off the nonsuit The motions
were made immediately after the nonsuit
was entered, and they were at once denied
by the trial Judge. This was not in com-
pliance with the statute which authorizes the
entry of compulsory nonsuits. Act March 11,
1875 (P. L. 6) I 1, provides that a Judg-
ment of nonsuit may be entered "with leave,
nevertheless, to move the court in banc to
set aside such Judgment of nonsuit," and a
writ of error (now appeal) is given only to
the refusal of the court in banc to set aside
the nonsuit. No appeal lies to the entry of
the nonsuit, but only to the refusal to take
It off. Bausbach v. Beiff, 237 Pa. 482, 488, 85
AtL 762. In that case it was said:
"The act of 1876, above referred to, provides
expressly that such rule [to take off the nonsuit]
shall be considered and disposed of by the
court in banc, not by the trial judge alone. The
act contemplates consideration of tbe qnestions
Involved by the court in banc. This they did not
receive in the present case."
Tbe same Udng may be said of the case at
bar. The trial Judge himself refused the mo-
tion to strike off the nonsuit, and the ques-
tions involved did not receive the considera-
tion of the court in banc, as is contemplated
by the act of assembly.
No opinion was filed, and we can gather
tbe reasons, for the entry of the nonsuit
only by reference to those stated by counsel
for defendants in their motion. The prin-
cipal one was that the plaintiff did not prove
that the Marshall Machinery ft Snm>ly Com-
pany had received from the John Lang Paper
Company the price of the engine, being the
sum of $2,000. To relieve the obligors, it
must appear, either that the Marshall Ma-
chinery ft Supply Company had paid to plain-
tiff the respective sums of |1,4U0 and $2,000
within three days after the receipt of those
sums from the purchasers of the engine, or
that, after due trial. and after Marshall had
used every effort to make tbe engines satis-
factory to the purchasers, the engines had
been promptly returned to plaintiff in as
good condition as when shipped, reasonable
wear and tear ^cepted. There was ample
evidence at tbe trial to show that the engine
was not returned in the condition required to
101 A.— 64
comply with the terms of tbe bond. If this
was the case, the defendants were not relieved
of their obligation upon the bond. The non-
snit was therefore improperly entered, and
the refusal to take It off was error.
[3] The argument of counsel for appellant
that the bond should \)e construed as a pri-
mary and principal obligation "to pay the
whole Indebtedness of the Marshall Com-
pany" Is not sound. Tbe bond is merely one
for the pajrment of money, to be discharged
on the performance of certain conditlona
The only question to be determined is whether
those conditions have been performed or not
We are unable to find In the bond any agree-
ment on the part of the obligors "to pay the
overdue account" Reference to that account
appears to have been made only to show the
reason for requiring the full purchase price
of the engines to be paid to plaintiff. There
is an express recital that the bond is to be
conditioned "for the prompt payment of the
purchase price of the two engines," and an al-
ternative condition that the return of the
large engine in good condition shall entitle
the defendants to a credit upon the bond of
$2,000. The amount named in the bond, $6,-
800, was clearly a penal sum, as there is no
pretense that the real debt exceeded $3,400.
Had the full amount of the purchase money
been paid, the bond would have been satisfied,
or if both engines had been returned in good
order, reasonable wear and tear excepted, a
credit equal to the amount of the purchase
money mnst have been allowed. Under the
evidence of plaintiff, the engine Intended for
the John Lang Paper Company was returned
In a damaged condition. For whatever
amount was necessary to restore that engine
to as good a condition as when shipped, rea-
sonable wear and tear excepted, the plaintiff
was entitled to recover from the defendants
in this action.
[4] The third assignment la to the action of
tbe trial Judge in sustadning an objection to
tbe offer of plaintiff's counsel to show by the
witness Firth, who was familiar with the
kind of engine in question and .Its construc-
tion, that he had examined the engine a week
before the trial, and tbe condition in which
be found It at that time, the preceding wit-
ness. Fry, having testified that at the time
of tbe trial the engine was in Just the same
condition, with the exception of rust as when
it was returned. The testimony of this wit-
ness was admissible, and it was error to sus-
tain the objection.
In the fourth assignment complaint is made
of the action of the court below In sustaining
defendants' objection to the admission in
evidence of four letters written by plaintiff
to the Marshall Machinery ft Supply Com-
pany. The letters were offered for the pur-
pose of showing that plaintiff bad refused to
accept the return of the engine in relief of de-
fendants' bond. This question is unimpor-
tant, as both sides agree that, under the
terms of the bond, tbe question of the ac-
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101 ATLANTIC EEFORTEB
(Pa.
oeptance of tlie engine by plalntUT Is imma-
terial to the decision of the case.
The first, second, and tblnd assignments of
error are snstained, and the Judgment is re-
versed with a procedendo.
<267 Pa. E66)
HAXE3 T. ARCADE REAL ESTATE CO.
(Supreme Court of Pennsylvania. April 23,
1917.)
1. Appeal and Ebbok «=alO10(l)— Review—
FiNDiNQs OF Fact.
Pindings of fact of the lower court support-
ed by evidence will not be interfered with by
the bupreme Court in the absence of clear error,
2. Pabty Walls «=10— Injumctioh— Fisd-
inos— evidew ck.
In a BUit to compel an adjoining landowner
to remove such part of an underpinning wall
aa encroached on plaintiff's land more than al-
lowed by Act May 7, 1S55 (P. L. i&i), and to
compel the closing of certain openings and win-
dows in the new part of the wall, evidence Jield
to sustain findings that the underpinning wall
was necessary to support the party wall and
protect plaintiff's building; that it had been
constructed according to the best practice ; that
it encroached no more than was actually neces-
sary to support the building and the lateral
pressure; and that it was not used above the
surface in connection with a new building con-
structed entirely on defendant's land.
a. Pabty Walls <S=8(3)— Latekal Suppobt.
An adjoining owner who made no use of a
party wall to support his building and who was
obliged to underpin the party wall by reason of
excavations on his own land was required to
furnish lateral support sufficient to sustain the
surface in its original condition and to do the
excavation on hia own land in a proper and
careful manner.
4. Pabit Walls €=98(4)— Brcboachhknt—
lBjun(7noN.
In a suit to compel an adjoining owner to
remove a part of an underpinning wall en-
croaching on plaintiff's land more than allowed
by Act May 7, 1855 (P. U 464), where it ap-
peared that the work was done openly and in
accordance with plans on file in tiie bureau of
building inspection, plaintiff, who had made no
comj^lalnt of an encroachment of the under-
pinning wall until 14 years after the completion
of defendant's building, would not be permitted
to question the necessity of the encroachment,
where, at most, it was only a technical trespass
not the sabject of equitable interference.
6. Pabty Walls «=32— UNDjEBPiMNiNa Waix
—Rights of Pabtiss.
Where neither a party wall nor an under-
pinning wall necessitated in the construction of
a building was used for its support, and where
the entire party wall to the bottom of the un-
derpinning wall might be removed without affect-
ing the stability of the building, the mere physL
ou attachment between the buildings and the
attachment of girders to the party wall was not
sufficient to make the party wall and the under-
pinning wall, as a whole, a party wall, and
subject the builder to the liabilities and restric-
tions as to the use of a party wall.
Appeal from Court of Common Pleas, Pblla-
delpbia Ck>unty.
Bill for Injunction by William A. Hayes,
surviving executor and trustee under the will
of Joseph Grandon, deceased, against the
Arcade Iteal liSstate (Company. From a de-
cree on final hearing dlamlsshig the .I>1U.
plaintia amteals. Ailirmed.
Argued before BROWN, G. J, and STEW-
ART, M08CHZISKEB, FRAZER, and WAL-
laNQ, JJ.
Alex. Simpson, Jr., and Joseph G. Magee,
both of Philadelphia, for appellant. John
Hampton Barnes, of Philadelphia, for appel-
lee.
FRAZER, J. PlaintUTs biU was to com-
pel defendant, an adjoining owner, to remove
such portion of an underpinning party wall,
constructed by defendant and alleged to en-
croach on the land of plaintlGT, to a greater
extent than ten inches allowed by the Act of
May 7, 1855 (P. L. 464) and to compel defend-
ant to close certain openings and windows In
a new portion of the party wall constructed
by defendant. The bUl was dismissed, and
plaintiff appealed.
The material facts of the case are not dis-
puted. The parties are owners of adjoining
lots on Market street, Philadelphia, being
Nos. 1432 and 1434, resipectively. On these
lots about 50 years ago were constructed two
buildings, each 3 stories In height, with a
party wall consisting of an 18-luch stone
foundation extending 7 feet below the sur-
face, and a brick wall 9 Inches thick, ex-
tending from the surface of the ground to the
roof.
[1] Plaintiff made alterations in premises
1432 Market street for the purpose of fitting
the property for use as a saloon, and in do-
ing so constructed a lining wall on his lot
against the foundation wall to afford addi-
tional support to the Interior construction,
making the part of the wall on plalntitra
property approximately 13 Inches In thick-
ness. In 1901 defendant removed the old
building at No. 1434, and began the erection
of a 13-story office stmctdre, known as the
Commercial Trust Butlding. The plan of the
building contemplated a construction resting
on its own foundations, without depending
for support upon the party wall, which
defendant considered to be of InsufBdent
strength to sustain the new structure. In
excavating for foundations defendant was
obliged to go considerably below the founda-
tion of the old party wall, and In the course
of the work was required to provide for Its
support. For this purpose defendant shored
up the wall temporarily, made the excavation
for the foundation, which extended 30 feet
below the surface, and constructed on this
foundation Immediately under the party wall
a subfoundatlon, or underpinning wall, 4S
Inches thick, which extended 18^ inches on
plaintiff's ground, and 29V& inches on defend-
ant's property. Upon completion of the un-
derpinning to within a foot of the bottom of
the old party wall, the two were connected
by filling the remaining space with bricks
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HATES V. ARCADE REAL ESTATE CO.
851
until the party wall rested on the eubfonnda-
tlon. The added underpinning, when com-
pleted, extended 4 or 6 Inches further on
plalnttfTs property than the old wall as It
existed prevloua to that time. Baring pro-
vided for the safety of the party wall, de-
fendant next proceeded to construct the
foundation for Its building. The work was
begun with concrete foundations, known as
"footings," 0 feet long and laid perpendicu-
lar to the i)arty wall and extending into the
underpinning wall in recesses cut for that
purpose until they practically reached the
party line. After the footings were In place
the spaces In the underpinning wall were
closed with cement Upon the footings are
placed columns supporting a cantilever steel
construction on whidi rest the upright steel
columns of the boUding, running to the top
and supporting the girders at each floor, thus
creating a foi-m of construction used for the
purpose of distributing weight over a large
area of surface. The end of the construction
extended Into the 4-foot wall to within about
6 Inches of the property line. The beams
when in place were Inbedded in concrete, thus
making the foundation a solid mass of steel
and concrete resting -on footings entirely
within the line of defendant's property. Inde-
pendent of the party wall, and connected
therewith only because of the concrete fllllng
between the two walls. On this foundation
the steel columns of the building rested.
In putting the cross-girders in place a cut
Into the party wall of about 4 inches became
necessary, and when in place the beams ex-
tended into the wall a distance of 1>^ inches,
the remaining space being filled with con-
crete. Following the completion of the steel
structure, a lining wall, supported by the
steel frame, was constructed against the
party wall and extended upward, receding
outward at the top of the underpinning wall,
and following the line of the old wall until
the top was reached, at which point it was
built over for a distance approaching 4^
Inches to the party line. From this point the
wall known as a "curtain wall" extends up-
ward to the roof of defendant's building,
within the line of defendant's property, and
is Independent of the party wall, though in
contact with it, by reason of the use of con-
crete filling in the cracks at the Joints. The
removal of the old wall would not in the
slightest degree affect the stability of the
new.
[2,3] The court below found the under-
pinning wall necessary to support the party
wall and protect plaintiff's building; that
the work was done by competent contrac-
tors in accordance with the best practice
and usage in the business ; that it oicroach-
ed on plaintiff's premises no further than
actually necessary to support the building
and lateral pressure of th« ground; and,
further, that no use was made by defendant
of either It or the party wall above the sur^
face In connection with Its building, which
was constructed independently of such wall,
and rested entirely on its own foundation,
laid on defendant's ground. The court also
reached the conclusion that the channeling of
the party wall for the purpose of setting the
girders, the contact of the curtain wall of de-
fendant's building with the party wall, the
extension of the curtain waU over the party
wall at the top of the latter, and the cement-
ing of the cracks to make the party wall
weathertlght, without using it as support for
defendant's wall, was not such use of the
party wall as entitled plaintiff to have his
bill sustained. So fftr as the findings of fact
are concerned, they are fully supported by
the evidence, and present no cause for inter-
ference by this court Anthracite Lumber
Co. V. Lucas, 249 Pa. 517, 95 Atl. 80; Law
v. First Mat Bk. of Pittsburgh, 247 Pa. 493,
08 AtL 635 ; Duffey v. Jennings, 247 Pa. 888,
93 Atl. 508; Mt Oliver Boro. v. Goldbach,
244 Pa. 56, 90 Atl. 435. There remains to be
considered only the correctness of the legal
conclusion, based on the court's findings.
As to the construction of the underpinning
wall, the case of Sharpies v. Boldt 218 Pa.
372, 67 Atl. 652, sustains the conclusion of
the trial Judge. Since defendant has made
no use of the wall or foundation to support
the building, and as the necessity for the
underpinning arose by reason of excavations
on defendant's land, the duty of defendant
Involved lateral support; consequently the
case does not fall within the provisions of
the statutes relating to the construction of
party walls. Defendant's duty to provide
lateral support was merely to sustain the
surface in its original condition, and exca-
vate on its land in a proper and careful
manner and without negligence. The prac-
tical ditUcnltles in the way of a determina-
tion of the precise extent of this resi)onsibll-
Ity, and whether the duty has been performed
In a given case, make necessary and advis-
able. In actual practice, for the abutting own-
er in excavating to take the precautions nec-
essary to assure absolute protection to the
adjoining building by underpinning to the
depth of the new excavations. In addition,
the municipality, under its police power to
safeguard the public, usually requires such
action to be taken. It was in the discharge
of this duty with reference to lateral support
and In compliance with the requirements of
the bureau of building inspection, that this
underpinning wall was constructed, and this
brings the situation directiy within Sharpless
V. Boldt, supra, where it was said (218 Pa.
p. 879, 67 Ati. 654):
"If plaintiffs had built first in such way as
to require the additional thickness of wall,
tbe^ must have pat all but ten inches of it on
their own land. But the additional thickness in
this case was altogether for plaintiff's benefit,
appellant not using the wall at oU, and having
no necessity for such thickness. _ The building
inspector in ordering such additional thickness
of wall as he deemed proper for public safety
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852
101 ATIiANTIC REPORTER
(Pa.
did not specify on which land it should be lo-
cated, and the appellant assumed that it was
to be on plaintiffs'. As it was for plaintiffs'
benefit, and appellant could not be compelled
to put it on hia own land, he was entitled to as-
sume that it was to be on plaintiffs'."
[4] The trial Judge further found the work
vr&a done openly and in accordance with
plans on file in the bureau of building in-
spection, and that no complaint was made by
plaintiff of the encroachment until 14 years
after the completion of defendant's building.
Under the drcumatances, plaintiff might read-
ily have discoyered the manner of construe-
tioQ at the time the .work was being done,
and should not be permitted at this late date
to question the necessity of the encroachment,
which, at most, is only a technical trespass,
not the subject of equitable Interference, and
not even entitling plaintiff to nominal dam-
ages. Sbarpless v. Boldt, supra.
[I] The remaining question Is whether the
fact of the absence of an actual line of sep-
aration between the underpinning and the
party wall and defendant's wall, though the
latter was self-supporting and Independent
of the continued existence of the party wall.
Is sufficient to fasten upon the whole the char-
acter of a party wall and subject defendant
to liabilities and restrictions goveming the
use of such wall. The cases relied upon by
plaintiff to establish the affirmative of this
proposition have been examined, and do not
go to that extent, as the following discussion
will show:
Milne's Appeal, 81 Pa. 54, merely decided
that a landowner .who starts the foundation
as a party wall upon the property line, and
uses it as a support for bis wall, cannot es-
cape the burden incident to the use of such
wall by constructing the upper part entirely
within the line of his property. There it
was not denied that the party wall founda-
tion was used for the support of the defend-
ant's Tiew wall, and the lower court said, in
an opinion affirmed on appeal (81 Pa. p. 56):
"The character of the wall must be determin-
ed in part from its foundation. If the builder
starts the latter upon the line, and thus takes
the land of the adjoining owner, be must carry
it up strictly as a part; wall, or at least in
such manner as to give the adjoining owner aU
the benefits of such a wall. Otherwise the land
of the latter would be taken without any cor-
responding benefit"
In Western National Bank's Ai^eal, 102
Pa. 171, a party wall had been constructed
and used for many years. Changes were
made in both buildings. The owner of one
built an additional lining .wall, which was
bolted to the old wall, for the purpose of sus-
taining the lateral pressure from the ad-
joining building. Subsequently the owner of
the latter building removed the lining wall
and erected a new and higher one, also con-
structing an additional lining wall against
the old, until it reached the top of the latter,
over which it extended, treating it as a par-
ty waU. A bill was filed by the adjoining
owner to restrain such use of the structure,
alleging the wall was not originally con-
structed equally on the lots of both parties.
The court dismissed the bill, stating (102 Pa.
p. 182):
"There is no evidence to repel the natural in-
ference from the acts of the parties that they
intended it for a party walL It has been so
used ever since."
And it was held that the mistake as to the
location of the line did not change the result.
In Pennsylvania Co. for Ins. on Lives and
Granting Annuities v. Odd Fellows, 50 Pa.
Super. Gt 255, the wall in question .was con-
ceded to be a party wall, and the only ques-
tion was, as here, whether defendants made
use of It In the erection of their building,
and the court fouud the facts sufficient to
warrant a finding of such Use.
In the present case the evidence amply sus-
tains the conclusion of the trial Judge that
defendant made no use of the party wall, or
the foundation thereunder, either for the
purpose of support or for the purpose of
protection. The testimony shows the en-
tire porty wall, from the roof of plaintiff's
building to the bottom of the underpinning of
the foundation wall, 'can be removed at any
time without in the slightest manner affect-
ing the stability of the Commercial Trust
Building. A physical attachment between
the buildings, due to the filling of the space
between the party wall and plaintUTs new
.wall with cement and to the fact that one
girder appears to have protruded nearly two
inches Into the party wall, is conceded. If,
however, mere physical contact alone were
made the criterion for determining the ex-
istence of a party wall, two entirely distinct
and separate brick walls could not be con-
structed adjoining each other on the proper-
ty line without combining the two as a party
wall, unless a clear unused vacant space la
permitted to remain between them, as other-
wise the mortar used in laying the bricks
must necessarily adhere to and to some ex-
tait attach the two walls together. While
the grillage .work of the foundations of de-
fendant's building was recessed into the four-
foot underpinning wall, and upon completion
of the work the empty spaces filled with con-
crete, making the whole a solid mass when
hardened, the latter wall was not necessary
to or a part of the support of defendant's
building. Its presence was due entirely to
the necessity for support of plaintifTs build-
ing. As the wall extended thirty inches on
defendant's lot. it would, but for this, have
had the use of the land, and the only alterna-
tive would have been to build the excess
width solely on plaintifTs land, as might prc^
erly have been done. Sharpless t. Boldt, su-
pra.
Decree affirmed, and appeal dismissed at
appellant's costs.
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CAVENT V. OURTIS
853
(267 Pa. B75)
CAVENT T, CTIRTIS et aL
(Supreme Court of PennsylTania. April 23,
1917.)
1. Tbnanct in Comuor «s>39 — Riohts or
COTENANT— AOBEKKENT MB TO UB* OF PBOP-
■BTT.
One tenant In common is withont authority
to bind his cotenanta by an agreement concern-
ing the use or control or affecting the title of
the joint property.
2. Evidence «=>44i(ef) — Parol Evidbnot —
Wbitten Contbaot— Fbatjd ob Mistake.
A written contract of agency for the sale
of land cannot be varied by an agent's parol
agreement, where there is no allegation that
anything was omitted therefrom by iraud, acci-
dent, or mistake, or that such jiarol matter was
the inducement for the execution of a contract
to purchase.
5. Eqoity ®=3326— Plxadino ard Pboov.
Plaintiff in equity does not recover on proof*
alone, but on bis pleadings and proof, and must
aver all matters necessary to his recovery, and
Implied allegations or proof of matters not al-
leged are no basis for equitable relief.
4. VKRDOB and PT7BCHABEB ®=»83— MEBGEB
07 Pbiob AsBEEifENTS— Independent Covk-
WANTB.
The general rule that preliminary agree-
ments relating to the sale of land become merged
in the deed does not apply to independent cove-
nants or provisions in an agreement of sale not
intended by the parties to be incorporated in
the deed, in whicn case a delivery of the deed
is a part performance of the contract, which re-
mains binding as to its further provisions.
6. Injunction «=9ll4fl)— Pabtiks.
A bill to restrain defendants from conveying
land to & third person without incorporating in
the conveyance certain restrictions as to use
of the property on the ground that plaintiff had
purchased property from defendants subject to
certain restrictions, and that at the time of the
conveyance it was agreed between himself and
defendants' agent that the adjoining property
should be sold subject to the same restricaons,
was defective for want of parties, where such
third person was not made a pari? to the bill.
6w Cocbts «=>480(2)— Injunction— Jcbisdio-
TioN of ComioN Pix&s Coubt.
The common pleas court sitting in equity has
DO power to restrain a conveyance of realty in
which minors are interested, where the sale has
been approved by the orphans' court under Acts
March 29, 1832 (P. U 190). and Act June 16,
1836 (P. L. 682), and where the injunction would
modify the decree of the orphans' court.
Appeal from Court of Common Fleas,
Montgomery County.
Bill In equity for an injunction by William
Bl Caveny against H. Agnes Curtis and
others. From a decree dismissing the bill,
plaintiff appeals. Affirmed.
Argued before BROWN. C. J., and MES-
TREZAT, POTTEOt^ FRAZER, and WAL-
I/IN6, JJ.
Nicholas H. Lerzelere, Charles Townley
Liarzelere, and FrankUn I* Wright, all of
Philadelphia, for appellant. Williams H.
Peace and William Drayton, both of Phil-
adelphia, and Montgomery Evans, of Norrls-
town, for api)ellee8.
FRAZER, J. Plaintiff appeals from a de-
cree of the conrt of common pleas of Mont-
gomery county, dismissing a bill in equity
brought to restrain a conveyance of realty
made without inserting in the deed certain
restrictions forbidding the use of the prop-
erty for offensive purposes.
Defendants were tenants in common of a
tract of land containing about S2 acres, and,
desiring to sell the same, written authority
was given to a real estate dealer, Maurice 3.
Hoover, to dispose of the property; the agree-
ment stipulating the minimum price for
which various parts of the land might be
sold, and also containing the following pro-
vlsionfi-:
"All land on the Mill Road to have rcstric-
tions as to cost of buildings and position of
houses with reference to the road with the ad-
joining properties. All lands to be sold with
restrictions as to offensive occupations. The
sale of the minors' interest to be approved by
the orphans' court."
The Interest of the minors was represent-
ed by the Montgomery Trust Company, one
of the defendants, their duly appointed guard-
ian, which company, with the other parties
In Interest, signed the agency agreement with
Hoover. On August 29, 1911, Hoover entered
into an agreement of sale with plaintiff, by
which he agreed to sell to the latter a part
of the tract consisting of three acres —
"subject to the following restrictions: That at
no tuie hereafter forever shall said premises,
or any part thereof, be used or occupied for the
manufacture, brewing, distilling or sale of spir-
ituous or maJt liquors, nor shall said premises or
any part thereof or any building erected there-
on at any time hereafter be used or occupied
as a tavern, drinking saloon, bone boiling es-
tablishment, tannery, slaughterhouse, glue, soap,
candle, starch or gunpowder manufactory, or
other offensive or dangerous purposes; and
that at no time hereafter forever shall more
than one dwelling be erected on said premises,
and that the cost of said dwelling shall not be
less than five thousand dollars; also that no
dwelling shall be erected nearer than forty
feet to the line of Waverly Road and further
that any stable or garage that may hereafter be
erected shall be built on the rear of said lot and
not nearer than five feet to any i»arty line."
The agreement also contained this clause:
"The sale is made subject to the approval of
the orphans' court"
Plaintiff testified that at the time the
agreement of sale was made there was ex-
hibited to him the agency agreement, and a
typewritten paper setting out the restrictions
he was told by Hoover would be incorporated
in the deeds for all other lands In the tract,
and that these restrictions were practically
the same as those contained in the agree-
ment of sale. A deed to plaintiff, restricting
the use of the property as above indicated,
was prepared, and the sale duly approved by
the orphans' court. At the time of the set-
tlement, November 28, 1911, plaintiff made in-
quiry concerning the restrictions intended to
be incorporated in deeds for other properties
sold out of the tract, whereupon counsel for
defendant dictated the following paper:
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854
101 ATLANTIC REPORTEB
(Pa.
'^t la hereby tfreti and understood that the
landa now belonging to H. Agnea Curtis and D.
Foster Hewett and the Montgomery Trust Com-
pany, guardian, which adjoin the land conveyed
to William E. Cavcny by deed dated November
6, lAll, on the northeast, southwest and north-
west, shall b« sold subject to the restrictions as
they appear of record, in said deed, which is
now lodged for record in Norristown.
This paper was signed by H. Agnes Curtis
and W. Drayton, "Attorney for Montgomery
Trust Company, Quardlan." D. Foster
Hewett, the other defendant, was not present
at the time, and did not sign the agreement,
nor was It signed by the husband of H. Agnes
Curtis, nor by the guardian of the minor de-
fendants', except through its attorney, Mr.
Drayton. Subsequently, on December 9, 1912,
Hoover entered Into an agreement for sale
of 7 acres of the tract to Oeorge H. Lori-
mer, "dear of incumbrance and easements,
• • • subject to the approval of the or-
phans' court." Upon the court's approval of
the sale, plaintifl! filed the present bill to re-
strain the carrying out of the contract, al-
leging a violation of the agreement made
with plaintiff concerning the imposing of
restrictions on the entire tract. Demurrers
to the bill were overruled, answers filed, and,
after hearing, a decree nisi was entered, re-
straining the conveyance to Lorimer without
inserting restrictions against offensive occu-
pations, it appearing that the tract sold was
not so situated as to be within the clause pro-
hibiting the erection of buildings costing less
than $5,000. Subsequently exceptions filed to
the decree were sustained and the bill dis-
missed.
Defendants denied the existence of a type-
written paper showing the restrictions to
be placed on other properties, which paper
plaintiff testified bad been exhibited to him
at the time of executing bis agreement to
purchase a portion of the tract. The court,
however, found the transaction to be as de-
scribed by plaintiff, and that plaintiff at
that time was shown either the original or
a copy of a previous deed for part of the same
tract to Charles Sinkler, which, with cer-
tain exceptions mentioned by the court, con-
tained the restrictions subsequently Inserted
in plaintiff's deed. The court also found
that defendants adopted no general plan or
building scheme for tie Improvement of the
tract from which an intent to impose simi-
lar restrictions upon all parts conveyed
might be inferred; hence the case must be
considered solely from the standpoint of the
oral and written agreements between the
parties.
[1] We deem unnecessary a consideration
of the question whether or not the act of
the attorney for the guardian In signing the
agreement of November 28, 1911, was with-
in the scope of his authority or was ratified
by the guardian, or whether Mrs. Curtis bad
power to create a restriction upon her prop-
erty without the consent of her husbaad.
because one of the tenants in common did
not sign the agreement or authorize it to
be signed for him, and therefore, so far as
the right to ^edflc performance of the con-
tract is concerned, the bill was properly dis-
missed. One tenant in common is without
authority to bind his cotenants by an agree-
ment concerning the use or control, or affect-
ing tbe title, of the Joint property. McKln-
ley V. Peters, 111 Pa. 283, 3 AtL 27. "Under
ordinary circumstances neither tenant in
common can bind the estate or person of the
other by any act in relation to tbe common
property, not previously authorized or sub-
sequently ratified, for cotenants do not sus-
tain the relation of principal and agent to
eacb other, nor are tbey partners. • * •
A contract by one teiytnt In common in rela-
tion to the whole estate being voidable at
tbe election of his cotenants not joining in
said contract" 38 Cyc. 101, 104. This prin-
ciple is sustained by tbe citation of a large
number of cases In various Jurisdictions.
[2, 3] Another question for determination
la the effect of the parol agreement as to re-
strictions on other parts of the property,
which the court found was made by Hoover,
the agent, viewed In the light of the written
authority of the latter, providing for "all
lands to be sold with restrictions as to offen-
sive occupations." While this left the exact
nature of the restrictions an open question,
and apparently within the discretion of the
agent, there can be no doubt the requirement
itself Is mandatory, and the verbal agree-
ment by the agent to put restrictions in all
other deeds was merely his act in following
out the provisions of his written authority
to sell. As was pointed out by the court be-
low, the bill does not aver the parol agree-
ment was omitted from tbe writing by fraud.
accident, or mistake, or that It was tbe
Inducement for the execution of the contract
of purchase by plaintiff. A plaintiff in equity
does not recover on proofs alone, but on his
pleadings and proofs. He must aver In bis
bill all matters essential to entitle him to
recover, and neither Implied allegations nor
proof of matters not alleged can be made die
basis for equitable relief. Thompson's Ap-
peal, 126 Pa. 367, 17 AU. 643 ; Luther v.
Luther, 216 Pa. 1, 64 AU. 868; Frey v. Stipp,
224 Pa. 390, 73 Atl. 460.
[4] The general rule is that preliminary
agreements and understandings relating to
the sale of land become merged in the deed.
This rule, however, does not apply to inde-
pendent covenants or provisions in an agree-
ment of sale not Intended by tbe parties
to be incorporated in the deed. In such
case the delivery of the conveyance is mere-
ly a part performance of the contraft, which
remains binding as to Its further provisions.
Selden v. Williams, 9 Watts, 9: Walker v.
France, 112 Pa. 203, 6 Atl. 208; Close v.
ZeU, 141 Pa. 390, 21 AtL 770. 23 Am. St.
Rep. 296. The present is an illustration of
this exception to the general rule. There
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HAMMOND ▼. HAMMOND
856
was apparently no InteDtlon that the prori-
alon as to the prohibition in deeds for oth«r
parts of the same tract should be Inserted
in the deed to plaintiff. His conveyance la
-complete as it stands, and there is no ques-
tion of altering its provisions by the inser-
tion of a clause omitted by fraud, accident,
or mistake. The mistake, if any, was in
falling to Insert the provision In the agree-
ment of sale. No averment to that effect
Is found in the bill, however. Neither is
there an averment to the effect that the
promise formed the inducement for the ex-
ecution of the agreement of sale. In fact,
that agreement is not mentioned. That re-
strictions were to be Inserted in all deeds
is conclusively shown in the written au-
thority of the agent, and that the parol
promise was made to Insert in all deeds pro-
hibitions similar to those in plaintiff's deed
Is found by the court below and supported
l^ the evidence. It is equally clear, how-
ever, that plaintifTs bill contains no aver-
ments entitling him to the relief asked.
[6] The bill is also defective for want of
necessary parties. It asks the court to re-
strain defendants from making conveyance
to Lorlmer without including therein the
clause forbidding the use of the property
for the purposes specified. Lorlmer would
be directly affected by such decree, and is
entitled to be heard; consequently be is a
necessary party to the bill. Monessen Boro.
V. Monessen Water Co., 243 Fa. S3, 89 Atl.
829.
[() Assuming the defects mentioned above
were corrected by amendment, a further
question remains, involving the right of a
court of equity to enter a decree which in
effect modifies the decree of the orphans'
court. Two of the co-owners of the land are
minors, and their interests are represented
by a guardian, a party defendant. The
acts of the guardian with respect to the
property of the minors are necessarily un-
der the sni)ervi8ion of the orphans' court.
Furthermore, the agreement to convey In
each case stipulated the sale was made sub-
ject to the approval of the orphans' court,
which was duly obtained. Upon application
for leave to sell to plaintiff, that court was
without knowledge of the additional agree-
ment to impose restrictions on the remain-
ing land, and, so far as is known, was not
asked to pass on the question of the advlsa-
ttlllty of the guardian entering Into such
agreement. Should a decree be entered in
this proceeding restraining the sale to Lorl-
mer without incorporating the restrictions
as to the use of the property, the effect will
be to modify the decree of the orphans'
court approving the sale, and thus permit
the action of that court to be attacked in a
collateral proceeding.
Jurisdiction of guardians and their ac-
counts was given to the orphans' court by
the Acts of March 29. 1832 (P. L. 190), and
June 18, 1836 (P. L. 682), and In reco^tion
of this Jurisdiction the parties expressly
stipulated that each sale was made condi-
tional upon the approval of that court. lo
the exercise of its discretion, that court was
entitled to have before it all facts relating
to each sale for which approval was asked,
having either a bearing or Influence in the
dl^osltlon of the matter. The Jurisdiction
of that court, by statute and by act of the
parties, became exclusive in this controversy
(Johnstone v. Fritz, 159 Pa. 378, 28 Ati. 148),
and an application which tends to affect in
any manner its decree heretofore entered
must be made direct to it.
The decree of the court below in dismiss-
ing the bill is afilrmed, without prejudice,
however, to the right of plaintiff to aw)ly
to the orphans' court for amendment of its
decree in conformity with the agreement and
Intention of the parties, if it appears the
sale to Lorlmer has not been consummated
by payment of the purchase money, and final
return made of the sale.
'™°'°°" (258 Pa. 51)
HAMMOND T. HAMMOND.
(Supreme Court of Pennsylvania. May 7, 1917.)
1. Deeds €=»93— Grants — Constbuction.
The words of a grant are to receive a rea-
sonable construction in accord with the inten-
tion of the parties.
2. Eabeiients €=354— Scope or Grant— Coh-
8TBTJCTI0N.
That the grantee of a right of way over the
land of another for 20 years used it without
constructing a bridge over a stream in line of
bis easement, using a ford during that time, does
not thereafter preclude him from erecting a
bridge.
3. Babbxentb «s»12(D — Conbtkuoiion.~
Gbant.
A grant of an easement is to be construed
In favor of the grantee, and includes whatever
la reasonably necessary to the enjoyment of the
thing granted.
4. Watkbs and Water Goxniscs «=sl71(l)—
Injuries from Plow age — Construction of
Bbidok— Right or Grantee.
Defendant was granted a right of way over
the lands of plaintiff, and the way crossed a
stream. For 20 years defendant used a ford for
crossing, and after the erection of a bridge an
extraordinary flood, which could not have been
foreseen, occurred. The bridge cansed the wa-
ters to h&dk up and flood part of plaintiffs land.
Held that, as one having a right of way over
the land of another may substitute a bridge for
a ford as a means of crossing a stream, where
the method of crossing has not been designated,
provided the bridge is constructed so as to cause
the least practical damage to the owner, and
ample room is left for the natural flow of wa-
ter, even in case of ordinary flood, defendant
was not liable for the flooding of plaintiff's
land ; the bridge being constructed with plain-
tiff's knowledge and acquiescence and in such a
manner as to furnish ample room for the natu-
ral flow of water, even in case of ordinary floods.
6. Appeai. and Error «=s751— Review—
Questions Presented.
Assignments of error, not embraced in the
questions involved, cannot be considered on ap-
peal. ,
1t»9»t oUmt <«■•■ u« SUM topio uat KST-NVUBSR la all Kay-Nnaibared tncmU and tndezm
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856
101 ATLANTIC REPORTBR
(Pa.
Appeal from Court of Common Fleas,
Franklin County.
Action by Martin F. Hammond against
Philip A. Hammond. From a Judgment for
defendant, plaintiff appeaU. Affirmed.
Argued before MESTREZAT, POTTER,
MOSCHZISKBtB, FRAZSB, and WAIiLING,
JJ.
John W. Hoke^ of Caiambersborg, for ap-
pellant Irrln C. BIder and Walter E.
Sharpe, both of Chambersburg, for appellee.
WALUNG, 3, This action of trespass in-
volves the authority of one having a right
of way over the land of another to substi-
tute a bridge for a ford a& a means of cross-
ing a creek, where the method of such cross-
ing was not designated In the original grant.
In 1893, Martin P. Hammond, the owner of
a large farm In Fannett township, FrankUn
county, conveyed a part thereof to his son,
Philip A. Hammond, the defendant; and as
the premises so conveyed did not extend to
the public highway, the deed provides that:
"It is further agreed that the said Philip A.
Hammond, his heirs and assigtis, is to have the
free and uninterrupted use, liberty, and priri-
lege of a road 20 feet in breadth from the said
premises across the creek to the public road,
now, hereafter, and forever."
The creek is known as "Spring Run," and
at the place in question extends parallel with
and a short distance from the highway. De-
fendant and his family bad occupied the
premises so conveyed to him for about 4 years
prior to 1883, and such occupancy has con-
tinued to the present time, and the only
practical means of access thereto is Uie right
of way included in the deed. At the time of
the conveyance, for many years prior thereto,
and for over 21 year&' thereafter, the only
means of crossing the creek at this point wad
a ford, except a log on which pedestrians
could walk. In times of high water it was
difficult, and occasionally for 2 or 3 days at
a time impossible, to ford the stream. Some-
times, in order to keep out of the water, the
occupants of a buggy had to sit on the back
of the seat, and sometimes It could only be
forded on horseback. On various occasions
Ice in the creek rendered the ford unsafe.
This method of crossing the creek was espe-
cially objectionable on accoimt of defendant's
children going to and from schooL In 1914,
to obviate the difficulties above mentioned,
and that the private road might be the bet-
ter fitted for the purpose for which it was
granted, defendant built therein a bridge
across the creek of the width of 10^ feet.
This was done by the construction of a stone
abutment on each side and two stone piers
in the bed of the creek, on which a wooden
bridge was placed. The cost of this improve-
ment waa $184. Prior to the building of the
bridge^ to wit in 1906, Martin P. Hammond
bad deeded the balance of the farm to hla
son, Martin F. Hammond, the plalntlfl herein.
who since that time has been In possession
of the same; his farm buildings being on the
other side of the public road, nearly opposite
the end of this bridge. The center of the
creek is the boundary line between plaintiff
and defendant Plaintiff had full knowledge
of the building of the bridge, made no obJec>
tion thereto, and in fact on one or two oc-
casions assisted in the work. There was no
negligepce shown in the manner in which the
bridge was constructed; but on August 21,
1915, a flood greater than ever known before
came down this valley, carried away the
bridge at the public road crossing Just above
and also the wooden part of defendant's
bridge, which was landed on plaintiff's land,
and which the latter permitted to be placed
back In [Msitlon without objection. This
flood overflowed the public road and extended
to plaintiff's dwelling bouse and to some ex-
tent Into bis cellar; the amount of damage
done thereby, however. Is not shown. It is
a fair conclusion that defendant's bridge at
that time obstructed the flow of water to
some extent and increased the amount that
reached plaintiff's premises, but such effect
would not result from an ordinary flood.
The learned trial Judge charged the Jury
that defendant might lawfully build the
bridge, if reasonably necessary to afford him-
self and family a safe passage over the right
of way in question, provided the bridge was
so constructed as to cause plaintiff no ap-
preciable damage under ordinary circum-
stances. The Jury found for the defendant,
which was in accordance with the evidencu^
and we discover no reversible error in the
record.
[1-3] The manifest intent of the grant was
to afford the occupants of the farm conveyed
to defendant a safe and convenient passage
to the public road at all times, in wet weath-
er as well as dry weather. We cannot im-
pute to the grantor the Intent of affording
access to and from the farm in question only
In times of low water. He might have limit-
ed the grant to the ford only but he did not.
The words of a g^rant are to receive a rea-
sonable construction In accord with the in-
tention of the parties. Mercantile library
Company of Philadelphia v. Fidelity Trust
Co., 235 Pa. 6, 83 AU. 692. The fact that
the defendant did not proceed immediately
to buUd the bridge does not prove that the
parties construed the grant as precluding
blm from that right; and the fact that there
was then no bridge at that point Is not con-
trolling; neither is the fact that for 21 years
thereafter defendant and his family managed
to exist there without a bridge. As defend-
ant bad possession of the private road dur-
ing all that time, he lost no right by failing
to improve It A grant is to be construed in
favor of the grantee, and Includes whatever
Is reasonably necessary to an enjoyment of
the thing granted. "The grantee of a defined
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IN KE WATMOUGH'S ESTATE
857
way has the right to do whatsoever Is nec>
easary to make It passable or usable for the
purpoees named In the grant." Senhonse t.
Christian et al., 1 Term Rep. 560, 570. See,
also, Nichols ▼. Peck, 70 Conn. 439, 39 AtL
803, 40 U R. A. 81, 66 Am. St. Rep. 122, and
White T. Eagle & Phcenlx Hotel Co., 68 N.
H. 38, 34 Aa 672.
[4,1] The grantee of the free and nnln-
termpted use of a private road may Improve
It In such manner as to make It fit for the
parpose expressed In the grant, and In so
doing may oonstmct a bridge over a ravine
or creek, if it be done In such way as to cause
the least practicable damage to the owner of
the servient tenement; however, ample room
mnst be left for the natural flow of the water,
even in time of flood, except it be so great as
to be beyond ordinary hitman experience,
when it Is regarded as an act of God, for
which man cannot be held responsible. The
flood in Angost, 1915, seems to have been of
that nature. As the bridge in question had
been built and rebuilt v^ith the full knowl-
edge and acquiescence of the plaintiff, we are
not prepared to hold that the court below er-
red in saying that the burden was on him to
show that defendant had a safe and conven-
ient way to travel before the bridge was
built; in any event, that matter Is not em-
braced in the statement of the questions In-
volved. Considering all the evidence admit-
ted, as to the trouble about the wood lot, it
did plaintiff no possible harm, and affords no
ground for disturbing the Judgment. It does
not seem necessary to refer in detail to all
of the assignments of error, for in our opin-
ion the entire evidence would not sustain a
verdict for plaintiff, even for nominal dam-
ages.
The assignments of error are overruled,
and the Judgment is affirmed.
(OS Fa. 22)
In re WATMOUQH'S ESTATBw
(Supreme Court of Pennsylvania. May 7, 1917.)
X. Wills ^=»21— Testahbktabt Incafacitt
— Inquibt.
Where a will is attacked on ground of
testamentary incapacity, the inquiry must relate
to the period of time during the testator's life
when the will was executed, published, and de-
clared.
2. Wills ie=s>55(l)— Testamentabt Incapao-
rrr — Submission' of Issue — Evidenck to
Wabbakt.
An issue devigavit vd non, requested on the
ground of testator's testamentary incapacity,
held properly refused; all testimony, save that
of a physician as to testator's visions of red
devils, showing that testator was competent.
8. Wills «s»163(3) — Undus Iiuxuenck —
Mebetricious Relations.
Where testator, who had no near relatives,
his next of kin being s nephew, devised and be-
queathed the bulk of his estate to a man and
wife, the fact that testator entertained meretri-
dons relations with the wife does not raise a
presumptiMi that the will was the result of her
undue influence, bat such influence mnst be
proven as any other independent fact.
4. Wills «=s>166(S) — Undue Influence —
Submission of Issue — Evidence — Suf-
ficienot.
Where a will was attacked, and an issue
devisavit vel non requested, it appearing that
the testator disinherited his next of kin, who
was his nephew, and devised and bequeathed
tho bulk of his fortune to a man and wife, held,
that evidence of undue influence was insufficient
to warrant the issue devisavit vel non, despite
claims that testator sustained meretricious re-
lations with the wife.
Appeal from Orphans' Court, Philadelphia
County.
In the matter of the estate of John O. Wat-
mough, deceased. From a decree of the
orphans' court, affirming a decree of the
register of wills, admitting to probate a pa-
per purporting to be the last will of deceas-
ed, William Watmough Grler and another,
who petitioned for issue devisavit vel non,
appeal. Affirmed.
Argued before BROWN, 0. J., and ME5S-
TREZAT, potter, STEWART, and FRA-
ZER, JJ.
William Clarke Mason, Howard S. Baker,
and Franklin S. Edmonds, all of Philadel-
phia, for appellants. Maurice Bower Saul,
of Philadelphia, and Buckman & Buckman,
of Langhome, for appellees.
STEWART, J. The appeal is from the de-
cree of the orphans' court of Philadelphia
county, affirming the action of the register
of wills in admitting to probate a paper pur-
porting to be the last wUl of John G. Wat-
mough, deceased, and in refusing to award
an Issue devisavit vel non with respect to
the same. The paper Is assailed on two
grounds — want of testamentary capacity and
undue influence.
[1, 1] With this appeal comes an appendix
of nearly 1,600 pages of testimony. If our
review of the case should seem dispropor-
tioned to this v(riume of testimony, we would
not have it supposed that because of this
fact any of the testimony has been over-
looked. Much of it sheds but little light on
the real controversy, and that which relates
to those features of the case which under
our rules of law are dominating can t>e pre-
sented and discussed within reasonable lim-
its. For illustration: In considering the
flrst ground of attack, namely, wont of testa-
mentary capacity, the Inquiry must relate to
that period of time when the will was execut-
ed, published, and declared. This is true,
especially in this case, for the reason that
there is nowhere even a suggestion that the
person who executed the paper as his last
will, in his seventy-seventh year at the time,
bad ever in his long life been lacking in men-
tal vigor, If we except the brief period of 14
days when, 45 years before, he was restrain-
ed of his freedom because of excessive drink.
When considering the question of testamen-
«s9ror othar case* sm Mina topic and KBT-NUMBER to all Key-Numbared DlgesU and IndaxM
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858
101 ATIjAJNTIC rxportob
(Pa,
tary capacity, we may therefore eliminate
from consideration as mucb of the testimony
as relates to his temperament, personal hab-
its, and disposition, prior to the March pre-
ceding the execution of the will, when, for
the first time, his personal and family physi-
cian, called on behalf of contestants, testi-
fies that be discovered symptoms of mental
decline. It is upon the testimony of this wit-
ness, Dr. Roussel, the contestants place their
main, if not entire, reliance, to sustain their
allegation of want of testamentary capacity.
Aside from this witness' testimony, there is
absolutely nothing in the evidence to raise
even a suspicion of mental unsoundness In
the testator. As we read his testimony, it
admits of no other deduction than that, with
exceptional opportunities for knowing and
judging his mental state, extending over 8
years next prior to the death of the testator,
be never observed anything In his conversa-
tion or conduct that led him to suspect men-
tal decline in any degree until the 17tb of
March next preceding the 6th of June, when
the will in question was executed. During
all these years he was the medical attendant
upon Mr. Watmough, who was a sufferer
from hardening of the arteries, a mild cardi-
ac degeneration, and sclerotic kidneys, the
latter of which, while at first not strongly
evidenced, became toward the latter part of
bis life more pronounced. In January pre-
ceding bis death, an attack of acute inflam-
mation of the gall bladder developed. The
witness having thus defined the physical
aliments for whlcb he was treating his pa-
tient, his attention was then directed to the
attendance be gave bim during the months
of October, 'November, and December, 1912.
Daring these months he visited the patient
at his home about every other day, Increas-
ing his visits to three and four times a day
as bis illness progressed. These visits he tes-
tified were made generally in the evening,
and they averaged in length from an hour to
an hour and a half, not that so much time
was employed in administering professional
relief, or In the study of the patient's con-
dition, but because the witness enjoyed con-
versing with the patient, who, as he admits,
was a man of superior attainments, of wide
experience, extensive travel, and an intelli-
gent and capable disputant In these con-
versations they discussed current events,
public men and policies, and whatever there
was of general interest.
We refer to these facts to confirm what
we have said as to this witness' opportuni-
ties to know the mental condition of Mr.
Watmough, and emphasize the further fact
that during this period of time, down to
Mardi 17, 1913, the witness calls to mind not
a single irrational word or deed on the part of
the patient, nothing In bis speech or behavior
that led him to suspect that he was not men-
tally sound. Indeed, he admits that he bad
no such suqtidon until an occurrence on the
17th of March, when during an evening vlsitr
after his patient had had a sleepless nl^t
before, because of the Intense pain he bad
endured, the patient said to the doctor, **I
am all right now; I am welL" To this tbe
doctor replied, "Oh, the pains are much bet-
ter, are they?" "Well yes," tbe patient re-
plied, "they are better; I still have them, but
the three red devils told me this morning, or
during the night, that they were about U>
leave me." To this witness replied, "lou
are speaking figuratively of the pains."
"Nonsense," said the patient, "you do not
understand what X tell you." Asked by the
witness what be meant, be replied, "Simply
that they stood on my belly and on tbe bed.
and said they were going to leave me, and
told me I was going to improve." The wit-
ness testified that this was the first thing
that attracted bis attention to a change in
tbe mental condition of the patient; and
this be defined as a visional hallucination,
associating it with what he defined as an
auditory hallucination, referring to a state-
ment made by the patient that he bad beard
a call during the night which liad caused
him to go out to the yard in tbe middle of
the night. When further Interrogated as
to these hallucinations, the witness replied:
"A call which excited his attention and caus-
ed him to go to the yard in the middle of the
night. Now, this may or may not have been.
There might have been, for example, a call
from the yard. That may or may not have been
an evidence of auditory delusion. The absolute
strong points are the questions of these visual
evidences of red devils, even with forked tails
detailed that they told him certain things, the
fact that he had seen them."
In the same connection be testified that he
could recall nothing that the patient ever
told him that be had heard from the red
devils other tban what related to his person-
al health. Solely because of this visual bal-
luclnatlon, as the witness denominated it,
with respect to seeing red devils, and its oc-
casional recurrence, and because be bad
reached the conclusion, based on this fact
alone, that his patient was a victim of senile
dementia, and no opportunity had been of-
forded him at tbe particular hour of the day
when the will was executed to examine blm
to see whether at that particular hour be was
free from the delusion with respect to the red
devils. It remained with blm a dlqratable
question whether the testator bad at tbat
time testamentary capacity, lie admitted
time and again tbat there were days during
the month of June, 1913, when he was entire-
ly free from the delusion and entirely clear
in his mind, when be knew his relatives, had
an intelligent understanding of the value of
his estate, knew how much income he derived
therefrom, and knew as well the persons he
intended to make tbe objects of his bounty.
To this extent tbe vritness went, but no fur-
ther ; and yet he visited his patient tbe eve-
ning of the day the will was executed, and
learned from him, not only that ue had made
bis will that day, but lajsta relative to tne
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IN BE WATHOTTOH'S ESTATE
859
-disposition he had made of his property. If,
upon being told that the patient had that day
-executed a last will, and that by the will he
had given to the maid, who had virtaally
teen his housekeeper, the mnnlflcent gift of
$100,000, any question arose in tne witness'
mind as to the competency of the patient to
make a will, it Is at least surprising that he
shoald have overlooked such fact In his
lengthy examination. An undisputed fact in
the case Is that 2V^ months after the execu-
tion of the will, during which time, according
to the witness, the patient was steadily de-
clining In vigor, without hesitation on his
part, or any question as to the patient's sanity
and the ability to dispose intelligently of his
property, so far as we are permitted to know,
the witness accepted from his patient a free
gift of $2,000 with which to buy for himself
an automobile.
Against this uncertain and inconclusive
testimony — and we include the medical ex-
perts' testimony as well, to which we have
made no special reference — there is the tes-
timony of the two witnesses to the execution
of the will, one of whom had drafted it, and
both of whom were entirely reputable gentle-
men, had long know Mr. Watmough, one of
them having sustained professional relations
with him, who say that when the will was
executed the testator was in possession of
his faculties, that he had himself dictated the
provisions in the will, had been fully inform-
ed with respcet to all it contained, and that
the will had been executed with no one pres-
ent excepting the testator and themselves,
supplemented by the testimony of a great
number of witnesses, among them gentlemen
of high professional standing, with large ex-
perience in deahng with questions of this
cbaractOT, and who — some of them at least,
notably the late John G. Johnson, Esq., speak-
ing from observation and conversation with
the testator within a very few days of the
date of the will — with one voice attest the
testator's mental soundness. Granting the
delusion testified to by Dr. Roussel, it is
manifest that it was not such a delusion as
was incompatible with the retention of the
general powers and faculties of the mind;
nor IS there the slightest Indication that it
exerted any influence whatever in the dis-
position made by the testator of his estate.
The evidence, as we read It, not only affords
no ground to support a finding of testamentary
incapacity, but it abundantly sustains a find-
ing to the contrary.
Turning now to the second ground of as-
sault, a somewhat fuller statement of facts
Is here required to comprehend the signifi-
cance of the evidence produced by one side
and the other. The testator, at the time of
the execution of the will, was in his seventy-
seventh year. He was then childless and a
widower; his wife, between whom and him-
self there had always been the closest con-
fidence and endearment, had died May 27,
1911. He himself died October 10, 1913, leav-
ing as his next of kin a half-brother, James
H.Watmough, the children of a deceased half-
brother, the children of a deceased half-sis-
ter, and William W. Grier, son of a deceased
sister, who Is an appellant here. The testa-
tor was a man of large estate, exceeding a
half million dollars in value, which he had
always managed himself, and, so far as ap-
pears, with intelligent Judgment He had
resided for many years at 2114 Walnut street,
Philadelphia, and continued his residence
there after his wife's death. Following the
death of his wife, he retained in his service
his wife's maid, Zalie Faget, whom ha in-
stalled as his general housekeeper, to whom
he gave exclusive charge of Ills household
affairs, employing at the same time other
domestic employ&i and servants. He lived
in a manner corresponding to his estate; he
was a man of education and culture, and of
refined tastes; he had few Intimates, and
still fewer confidential friends; he had but
little intercourse with his kindred, and dur-
ing the later years of bis life none; he fre-
quently expressed indifference toward them,
in return for what he regarded their indif-
ference towards him; he had withdrawn
from active business years before, and was
living in retirement; he found his enjoy-
ment in wide travel and in indulging his
taste in acquiring a large collection of curios
and such bric-a-brac as appealed to him. In
the latter he had invested a large sum of
money, and his collection of them was valu-
able. It was this fondness for rare articles
of virtue that brought lilm into relation with
one Ferdinand KeUer, who was a dealer in
such articles, at first In a small way. This
was as early as 1881, when Keller's store
was on Ridge avenue. There the testator oc-
casionally visited him until in 1883, upon tes-
tator's advice, KeUer moved his place of
business, as well as his residence, to 216
South Ninth street This latter property had
been purchased by the testator and was by
him, in 1888, conveyed — his wife Joining in
the deed — to Keller's wife, for a nominal
consideration. Meanwhile the acquaintance
between Keller and the testator, begun In
1881, ripened into an intimacy which develop-
ed into a confirmed and avowed friendship
and mutual trustfulness, which continued un-
abated during all the remaining years of tes-
tator's life. It included as well the individual
members of Keller's family, which consisted
of his wife and three children. During all
these years, except during such periods as
the testator was absent from the city, he was
almost a dally visitor to Keller's place of
business, where he was accustomed to spend
several hours on each occasion, occupying for
the most part a room back of the store which
was used by KeUer as a repair room. In
this room he met frequently Mrs. Keller,
who assisted her husband in his business, and
their children, and would occasionally there
Join with them at lunch. Certain it is Uiat
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101 ATIiANTIO REPORTER
(Pa.
this association between tbe testator and the
Keller family, and bis fondness for eacb
member of the family, was well known to
the testator's wife, for during her lifetime
she freqaently accompanied her husband to
Keller's store, sometimes with a view to
make purdiases, at times for no other pur-
pose than to meet and talk with the differ-
ent members of the family. That she held
them In high esteem, particularly Mrs. Keller,
Is evidenced by the consideration she showed
the latter by visiting her, inviting her to
her own home, and tbe letters written to her,
in which she always addresses her in most
familiar and affectionate terms; some In-
viting her to come to her home to tea and to
bring with her the "dear children" and Kel-
ler, and others expressing her appreciation
of kindness shown her by Mrs. Keller. These
letters fuUy attest her affectionate regard for
the Kellers as a family. Letters from tes-
tator to Keller, covering the same period,
1886 to 1911, some from Europe, others from
distant parts of this country, and others
from his home, some on business, others of
purely friendly and social character, all
abound In expressions of deepest concern, not
only for Keller, but for Mrs. Keller and the
Individual members of his family, concluding
with, "God bless and prosper you all and
reunite us again," "With much love to all,"
"Love to dear Mrs. Keller, yourself, dear Mi-
lie and Janet, your devoted friend," "Ever
your devoted friend," and like affectionate
expressions.
Testator bought a great part of his col-
lection of curios, which he valued so high-
ly, from or through Keller. That the latter
derived much advantage through his patron-
age, not only In trade, but through his gen-
erosity as well, cannot be doubted; but,
whatever may have been Keller's or Mrs.
Keller's motive in extending to the testator
the many acts of kindness shown him, it
is too manifest to admit of question that bis
feeling for the Kellers was that of sincere af-
fection. By will made In March, 1907, after
making a few pecuniary bequests, he left his
entire remaining estate to his wife for life,
with remainder to the Kellers. In April,
1911, be executed another will, prepared by
J. H. Buckman, Esq., whereby he gave all
to bis wife for life, except certain bequests,
and what he called his "collection," to Kel-
ler, telling Mr. Buckman at the time that
Keller was bis dearest friend — the best he
ever had, the only friend who had stuck to
him through thick and thin. In a later will
of December, 1912, eight months after the
death of his wife, drawn by the late John G.
Johnson, Esq., be made the following be-
quests: One of $10,000 to William W. Grler,
one of tbe contestants and next of kin,
which, as there stated, was fixed in that
amount because the legatee was possessed of
an Independent fortune of his own and sel-
dom visited or communicated with tbe testa-
tor; one of $20,000 to Zaile Faget; another
aggregating $50,000 to the three children of
Ferdinand and Matilda Keller; another to
Ferdinand Keller, whom he describes as bis
good friend, of $15,000, with a like sum to
Mrs. Keller, the wife; another to the wife
of testator's half-brother, James H. Wat-
mough, of $50,000. Following some minor
bequests and a specific devise, he gave the
entire balance of his estate to Keller and
his wife, or tbe survivor of them. By codi-
cil to this will, dated January 6, 1912, with-
out changing in other respects the terms of
this earlier will of December 12th in any
other regard, be substituted as executors of
the win John O. Johnson, Esq., and Ferdi-
nand Keller.
We refer to these wills as showing the
mental attitude of the testator towards the
Kellers, both during the lifetime of his wife
and following upon ber death, as well his
attitude toward his kindred. They show
unmistakably a set purpose on his part of
long standing to make Keller and his family
his principal beneficiaries. This was the
condition of affairs upon the death of Mrs.
Wutmongh and immediately following. The
testator's manner of life was much the same
after as before. As age was creeping on, his
physical infirmities Increased, and he became
tbe victim of disease, often painful in the
extreme, and Increasing in virulence, until
the summer of 1913, when the will, the sub-
ject of this controversy, was executed. Four
mouths thereafter he died. During this peri-
od of Invalidism be required much personal
attention. The only person from whom he
seems to have received any was Zalle Faget,
she who had been his wife's maid, and whom
he retained In his employ as general house-
keeper, and tbe Kellers, whom he visited at
their store with the same frequency as be-
fore, so long as he was able. His sodal in-
tercourse was apparently limited to tbe Kel-
ler family. His Intimacy with them and
his fondness for them may seem strange,
when tbe difference In station and rank Is
considered ; but tbe evidence puts it beyond
question that somehow or other they had be-
come the chief objects of bis beneficent con-
cern.
[3,4] This brings us to the will whidi la
the subject of tbe present controversy, exe-
cuted June 6, 1913. This will was drafted
at the direction of the testator by Charles
J. McDermott, Esq., at the office of John O.
Johnson, Esq., and executed at testator's own
home, in the presence of Mr. McDermott and
Maurice Bower Saul, Esq., both of whom
testify that no one but themselves and the
testator were present at the time. The first
item in this will gives to Zalle Faget, "now
in my employ, and who was maid to my dear
wife, Caroline Drexel Watmough, in her life-
time," the sum of $100,000, "in apprecia-
tion of her kindness to my beloved wife."
Separate bequests, one only amounting to aa
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IN KE WATMOUGH'S ESTATE
861
much as $1,000, were made to his servants,
conditioned on tbelr being In his employ at
the time of his death; then follows this
direction:
"All the rest, residue and remainder of my
estate I ^ve, devise and bequeath to my frienda,
Ferdinand Keller, Sr., and Matilda Keller, his
wife, in equal parts, or in case only one of
them shall Burvlve me, then to the laryiTor of
them."
Of this will he appointed his "two friends"
— ^he so speaks of them — John O. Johnson,
Esq., and Ferdinand Keller, Sr., executors.
Upon the facts and circumstances before
stated, and upon testimony yet to be referred
to, the appellants rest their contention that
the will was a product of an ondne influence
operating upon the mind of the testator at
the time of its execution, which substituted
another's will for his own. It is not pre-
tended that the testator was subjected to
physical coercion of any kind; the sole con-
tention being that, because of criminal rela-
tions he Is alleged to have sustained to-
wards Mrs. Keller, the wife of Ferdinand, he
was subjected to a moral constraint which
so entered into the making of the will as to
make it the expression of another's desires
rather than hla own ; in other words, that he
was no longer a free agent At this point,
the young woman, Miss Faget, to whom is
given a legacy of $100,000, may drop out of
the case. It is only fair to her to say here
that there is not a particle of evidence in the
case that would support a finding that either
alone or In combinatloa with others she con-
tributed in any way to the procurement of
the will, not even to the extent of solicita-
tion that she should be a beneficiary there-
under. The argument in support of the gen-
eral charge assumes that the will is inoffl-
dous, in that it denies to those upon whom
the law would cast the inheritance in the
absence of a will all participation in the
estate, and then proceeds to derive from the
evidence, in explanation, a meretricious rela-
tion with one of the chief beneficiaries under
the will, from the influence of which testator
could not and did not escape, but which was
operative In his mind and controlling when
the will was executed.
Unquestionably, within the literal mean-
ing of the term, the will was Inofficious. The
weight to be given this circumstance de-
pends upon the degree of kinship in which
the party disinherited stands toward the tes-
tator. A will disinheriting a child or chil-
dren dependent, and substituting in their
stead, as beneficiary, one with whom the tes-
tator sustained Illicit relations, would be
not only Inoffldons, but unnatural, and a
strong presumption would arise in sudi case
that the testator, even though of testamen-
tary capacity, was nevertheless in thraldom
of some kind Inconsistent with free agency.
The more remote the degree of kinship, the
feebler becomes the presumption, until it
reaches the point where it becomes negligi-
ble. The nearest of kin in this case was a
nephew, the son of a deceased sister, and
here the contestant To this nephew by a
former wUl was given a legacy of $10,000.
It was the belief of the testator that he was
a person of independent fortune. This lega-
cy was omitted from the last will ; the tes-
tator assigning as a reason for the omis-
sion that the nephew seldom visited him or
had any communication with him. What-
ever the presumption in such case, it was
more than met and overcome by the evidence
showing the reasons testator gave for dis-
inheriting the nephew; this evidence being
unchallenged and no attempt having been
made to show that the reasons on which
testator relied rested on any mistake of
fact. Certainly the fact that the will was
Inofficious can l>e of minor significance In
such a case. It in no wise conflicts with
contestant's theory that a meretricious rela-
tion with Mrs. Keller produced the will; nev-
ertheless It adds little, If anything. In sup-
port of such contention.
We do not stop to Inquire into the disput-
ed question of fact for the reason that It
has not the significance that has been at-
tached to It throughout tills case. Gront-
Ing the impr<q;»er relation charged, such cir-
cumstance In itself would not make the will
illegal. A testator, so long as he Is a free
agent has a right to give his property to
whom he pleases; nor does the fact that
with the chief beneQclary in the will he sus-
tained improper relations raise any presump-
tion that the will was made under a con-
straining Influence exerted by the paramour.
Such Influence, If alleged, must be proven,
as any other Independent fact by adducing
such additional evidence as would warrant
no otlier reasonable Inference than that the
influence of the relation not only produced
the will by actual or moral constraint to a
degree that the testator was unable to resist.
We find no such evidence to the case; noth-
ing that even indicates anxiety or concern
on the part of the Kellers as to the will, im-
portunity by either that the testator make a
will, much less that he make them benefid-
aries thereunder, or that they or either of
them were taken into testator's confidence
with respect to the will about which we are
Inquiring. No combination or conspiracy is
shown to delude, deceive, or by artifice of
any kind to accomplish the execution of the
will. There Is nothing In the evidence to
show that testator was not at perfect freedom
to express Ids own desires. Independent of
the wishes of any other. The Impression left
upon an impartial mind, after reading the
evidence In the case, must be that in making
the will he was master of himself, and that
in disposing of his estate, acting with entire
freedom of choice, he gave It to beneficiaries
who, though not related by kinship, yet stood
higher in his affectionate regard tlian those
who were so related, in consequence of long
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101 ATLANTIO RBPORTEB
(Pa.
continued asaodatlon and Intimacy, wbldbi
ripened, as we hare said, Into closest friend-
ship, with mutual trust and confidence. We
do not deem It necessary to enter Into any
discussion to vindicate the legal roles and
principles which we have applied In consid-
ering the case. Our Reports abound in cases
where they have been explained and applied
with Judicial sanction and approval, to an
extent that further effort to that end would
be unprofitable, espedally in view of the
very careful and exhaustive review of the
authorities bearing on the subject by our
Brother, Von Moschzlsker, in the recent case
of Phillips' Estate. 244 Pa. SS, 00 AtL 4S7.
We are of opinion, upon a careful examina-
tion of all the evidence in the present case,
that a verdict against this will could not
properly be snstalned.
The decree of the court refusing an issue
is accordingly affirmed, at the costs of the
appellants.
(2S8 Pk 70)
In i« SHOVER'S ESTATE.
(Supreme Court of Pennsylvania. May 7.
1017.)
Wnxs «3sl40— NxmouFATivc Wills— Vaud-
rrr.
A nuncupative will, made by testatrix while
suffering from blood poisoning resulting from
bee sting, cannot be sustained, where for at
least 36 hours after mailing the will she could
have dictated a will, had a scrivener been se-
cured, as might readily have been done, and
such will cannot be upheld on the ground that
she could not with her own hand have signed
the will, because of blood poisoning, for she
might hare made her mark, or authorized some
one to sign her name.
Appeal from Orphans' (^onrt, Northamp-
ton County.
In the matter of the estate of Mary Alice
Shover, deceaaeU. From a decree setting
aside probate of a nuncupative will, and
refusing an issue devisavlt vel non. Otto
Shover, administrator c t, a., and others, ap-
peal. Affirmed.
Argued before MBSTREZAT, POTTER,
MOSCHZISKER, FRAZER, and WAL-
LING, JJ.
H. M. Hagerman, of Bangor, for appel-
lants. Everett Kent, of Bangor, for appel-
lees.
WALLING, J. Mary Alice Shover, a wid-
ow residing on a farm in Northampton coun-
ty, died July 25, 1015, at the age of about 48
years. For some months she had been af-
flicted with kidney trouble, apparently not
serious, when, on or about July 4, 1015, she
was stung on the left arm by a bee, bloo'd
poisoning resulted, and she was confined to
her bed on and after July 13th. Proponents'
evidence tends to show that on Monday morn-
ing, July 10th, Mrs. Shover, in the presence
of witnesses called by her for that purpose,
made parol testamentary disposition of her
estate^ consisting of personal property
amounting to about |4,000, and bequeathed
same to the i^oponents, two of whom were
her stepchildren and the thiiVl a member of
her household, to the exdusion of contestant,
who was her father and next of kin. Thia
so-called nuncupative will, having been reduc-
ed to writing, was admitted to probate by the
register of wills, from which contestant took
an appeal to the orphans' court, where, after
full bearing and an exhaustive ccmsideration,
a decree was entered setting aside the pro-
bate of said alleged will, and also refusing
an issue on the grouiM tliat no substantial
dispute bad arisen upon a material question
of fact
We have examined the record and agree
with that conclusion. A nuncupative will
can be sustained only when made during the
last sickness of the testator, and in sudi ex-
tremity thereof as precluded a written wllL
See Mellor v. Smyth, 220 Pa. 160, 60 Atl. 502.
The orphans' court found on abundant ev-
idence that Mrs. Shover could have made a
written will when she made the allegeW oral
will and for at least 36 hours thereafter;
that is, up until Tuesday evening. There is
some dispute as to her condition on Wednes-
day and Thursday, and admittedly she was
unconscious from Thursday night until her
death on Sunday morning. In fact, all the
evidence is to the effect that she was in
sound an'd disposing mind during the entire
day Monday. True, she was suffering, and
her arms and hands were badly swollen,
from the effect of the blood poisoning; but
she was Just as capable of dictating a writ-
ten as an unwritten will, and had ample time
to do so. The circumstance that she might
not have been able to sign the will with h«
own band is of no moment, she could have
made her mark or authorized some one to
sign her name. The use of a telephone or
automobile would have brought a scrlvaierto
her befdside any time within an hour. And
yet during that entire day and evening no
effort was made to secure the preparation or
execution of a written will, or any valid rea-
son given why it was not done, and the court
below found that the same condition existed
during the following day, and all that time
Mrs. Shover made no request for a scrivener,
and did nothing looking to the making of a
written will, although accortllng to the evi-
dence she realized the serious nature of her
illness, and her mind was on the subject of a
testamentary disposition of her property
early Monday morning. Under such circum-
stances it Is vain to argue that she whs pre-
cluded from making a written will by the ex-
tremity of her last sickness. A mudi less
opportunity to make a written will has often
been held sufficient to prevent the probate of
one not written. Porter's Appeal, 10 Pa. 254 ;
BuUer's Estate, 223 Pa. 252, 72 Atl. 508:
Munhall's Estate, 234 Pa. 160, 83 AU. 66.
^EQFor oUiar emsas ■•• wm* toplo and KET-NUMBER la all K«r-Numb«raa Dls«sto and laduw
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COMMONWEALTH y. KOONTZ
863
Mrs. Sliorer bad ample opportttnlty to
make a written will on Monday, and bence
the evidence as to how an attempt on her
part to do 80 later in the week might hare
affected her physical condition was unim-
portant, as wag that seeking' to show ez-
presBlons of hostlUty by her against the con-
testant As she was manifestly not precltAl-
ed from making a written wUl by the extrem-
ity of her last sickness, the other questions
in the case are not Important
The assignments of error are overraled,
and the deciee is affirmed, at the ooet of ap-
pellants;
(258 Pa. M)
COMMONWEALTH v. KOONTZ et •!
(Supreme CSoort of PemuiylTania. May 7, 1917.)
1. Abandonment «=>2— What CJoNSTrrcmss.
The characteristic element of abandonment
is the voluntary relinquishment of ownership,
whereby the thing so dealt with ceases to be the
proper^ of any person, and becomes the sub-
ject of appropriation by the first taker; it being
in that respect distinguished from all other
modes by whiicb ownership may be divested.
[Ed. Note. — For other definitions, see Words
and Phrases, first and Second Series, Abandon-
ment]
2. TimNPIKEB AND TOIX RoADS «=»29 —
Bight of Way — "AnANDONKBNT" — What
C6NaTlTDTE€^— Saub.
A deed conveying land for right of way, as
well as a house and lot, to a turnpike company,
provided that, in case the turnpike should be
abandoned, the house and lot should revert to the
Santor, his heirs and assigns. Subsequently
e turnpike company conveyed its road to the
commonwealth for a consideration. Held that,
as a sale is not an "abandonment," the charac-
teristic of which is a voluntary relinquishment
of ownership, and, as that word has a definite
meaning, the transfer of the turnpike to the
state was not an abandonment, entitling the
grantor or his heirs to retake the house and lot
Appeal from Court of Common Pleas,
Franklin County.
Ejectment by the Commonwealth of Penn-
eylvania against Mary C. Koontz and Levi
li. Horst From a judgment for plaintiff,
defendants appeal. Affirmed.
Argued before MESTREZAT, POTTER,
HOSCHZISKER, FRAZER, and WALUNG,
JJ.
J. A. Strlte and Edwin D. Strite, both of
Chambersburg, for appellants. William H.
Keller, First Deputy Atty. Gen., and Prands
Shunk Brown, Atty. Gen., for the Common-
wealth.
WALLING, J. In 1863, the Harrisburg,
Carlisle & Chambersburg Turnpike Road
Company bought the land here at i&sue, com-
prising 80 perches, of Alex. K. McClure, as a
tollgate house property. It was a part of
Mr. McClure's farm, and situate in Franklin
county, on the turnpike between Chambers-
burg and Shlppensburg. The deed therefor
contains a provision as follows, viz.:
"That, if the said turnpike company shall at
any time remove said gate house from the said
g remises, then the said Alex. K. McCIure, his
eirs or assigns, shall have the first right to pur-
chase said house and lot at an appraisal to be
fixed by the appraisers, two to be chosen by the
parties hereto and the two so chosen to select a
third, and, in ease tbe said turnpike road shall
be abandoned by said turnpike company, then
the house and lot hereby conveyed shall revert to
said Alex. K. McClure, his heirs and assigns."
In 1867, Mr. McClure sold the balance of
the form to Levi Horst, the deed for which
contains the following reservation, viz.:
"The house known as the tollgate house with
80 perches of ground having been conveyed by
the said party of tbe first part to the Chambers-
burg & Carlisle Turnpike Road Company, to
use and enjoy the same so long as said prop-
erty shall be uaeA as a tollgate b^ said company,
this conveyance to said Horst is made subject
to the rights of said turnpike company, and
when said toll^ite property shall be abandoned
as a tollgate by said company it shall pass to
said party of the second part his heirs and
assigns, in fee."
By sundry conveyances, etc, Horst's title
became vested in the defendants. The half
acre was used as a tollhouse property until
1915, when by amicable agreement the turn-
pike company sold and conveyed the said
turnpike road to the commonwealth of Penn-
sylvania for $25,000, which sale embraced all
of said company's property used in connec-
tion with the said road or appurtenant there-
to, including bridges, tollhouses, and other
structures, and all road materials and equip-
ment on hand, etc., and especially Indnding
the half acre here at issue, with the buildings
and appurtenances, together with all rights
and easements embraced in the McClure deed
therefor. The state highway commissioner act-
ed for the commonwealth in the acquisltioB
of the turnpike road, whidi at once became
a state highway free from tolls. The pur-
chase of the road did not include the fran-
chise of the turnpike company.
[1,2] In our opinion the trial court was
right in holding that the sale to the common-
wealth was not an abandonment of the land
in question whether it be considered as real
or personal property.
"The characteristic element of abandonment
is tbe voluntary relinquishment of ownership,
whereby tbe thing so dealt with ceases to be the
property of any person, and becomes the sub-
ject of appropriation by the first taker. In this
respect it is distinguishable from all other modes
by which ownership may be divested. Thus it is
in the matter of the cessation of ownership that
abandonment is distinguished from a transfer by
sale or gift; but it the title be continued in
another by any of the modes known to the law
for the transfer of property, it has been no
abandonment, because the right first acquired
still exists and the continuity of possession re-
mains unbroken." 1 Ruling Case Law, 2.
"A sale or conveyance of a property is not an
abandonment, within the meaning of a clause in
a deed that the property shall revert to tbe
grantor upon its abandonment by the grantee.
The word 'abandonment' has a well-defined
meaning in the law, which does not embrace a
sale of conveyance of the property. It is the
AssFor other cmMs an urn* topic and KEf-NUMBBR tn all Ker-Numbarad DlBests and IndazM
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^01 iLiiiA2«mo r£e;obxeb
(Pa.
giving up of a thine absolutely, without refer-
ence to any partlcniar person or purpose, and
includes both the intention to relinquish all claim
to and dominion over the property and the ex-
ternal act by which this intention is executed;
80 that it may be appropriated by the next com-
er." St Peter's Church v. Bragaw, 144 N. C.
120, 56 S. B. 688, 10 L. R. A. (N. S.) 633, 636.
"There can be no such thing as abandonment
in favor of a particular individual or for a con-
sideration. Such act would be a gift or sale.
An abandonment is 'the relingnisoment of a
right, the giving up of something to which we
are entitled.' * * * If it were made for a
consideration, it would be a sale or barter; and
If without consideration, but with an intention
that some other person should become the posses-
sor, it wonld be a gift" Stq>hena t. Mansfield,
11 OaL 863, 866.
The above and other authorities dted for
appellee sustain the contention that a trans-
fer of property from one party to another for
a consideration Is not an abandonment And
In that respect we see no controlling differ-
ence between the sale of a turnpike road and
that of other property. In this case It Is
the abandonment of the turnpike road, and
not of the franchise, that under the proviso
In the original deed gives rise to the rever-
sion. In West Philadelphia Pass. Ry. Co. v.
Philadelphia & West Chester Turnpike Road
Co., 186 Pa. 459, 40 Atl. 787, the defendant,
having the right to maintain and operate a
street railway in the western end of Market
street, Philadelphia, expressly and by stat-
utory authority, released to the city all its
rights, privileges, franchises, etc.. In said
street, and over 20 years later attempted to
build a street railway therein, but was en-
joined on the ground that defendant had re-
linquished and In fact abandoned aU Its
rights in the street However, the question
whether a sale of property constitutes an
abandonment was not before the court in that
cas& In Black t. Blkhom Mining Co., 163
V. S. 446, 16 Sup. Ct. 1101, 41 U Ed. 221, a
locator of an undivided interest in a mining
claim, who had neither bought nor paid for
the same, sold his interest and left the prop-
erty; and it is' there held that he had no
sudi vested interest in the mining claim aa,
after his death, would entitle his widow, who
had not joined in sadi sale, to a dower In-
terest therein. The locator is there referred
to as having abandoned his dalm, but the
question as to the sale of the property con-
btituting an abandonment was not necessarily
involved in the decision of the ca8&
A grant Is In general construed against the
grantor; and here the rights of the parties
were fixed by the deed to the turnpike com-
pany, and were not affected by the stipula-
tions in the later deed to Levi Horst As the
former deed was to the turnpike company,
its successors' and assigns, the company was
within Its rights in making the sale to the
commonwealth. There is nothing to Justify
the conclusion that a sale of the turnpike
road caused a forfeiture of the title to the
half acre ; nor any provision in the first deed
that the property should revert to the grantor
when the turnpike ceased to t>e a toll road.
The clau&e giving Mr. McClure the first right
to purchase on the removal of the gatehouse
might seem to negative such an intent; and
as the gatehouse has never been removed,
the right to that option has not arisen. The
law will not imply a different agreement from
that which the parties have made. Aye v.
Philadelphia Co., 198 Pa. 451, 44 Atl. 565, 74
Am. St. Rep. 696. Mr. McClure might have
provided that the house and lot should revert
upon a sale of the turnpike road; but, as he
did not we must construe the deed afi it Is
written.
The assignments of errar ore overruled,
and the Judgment is affirmed.
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Dd.)
IN BE WHEEL.£B'S ESTATE
865
(U Del. Cb. IMS)
MESSICK T. JOHNSON et aL
(Coort of Chancerr of Delaware. Sept 26,
1917.)
SxxctmoN *=»171(4)—Sai,k8— Injunction.
Where defendant, who was seeking to have
land claimed by complainant sold to satisfy a
i'udgmcnt obtained against a former owner, who
lad conveyed to complainant's grantor before
rendition of the judgment, offered no evidence to
show fraad in complainant's title, sale will be
enjoined, for otherwise complainant's title would
be clouded, though complainant would have no
opportunity to attack the validity of defendant's
Judgment.
BlU for injunction by WllUam R. Messlck
against Ella S. Johnson and Jacob West,
Sheriff. Defendants enjoined.
Injunction bill. By the bill the complain-
ant seeks to enjoin a sale by the sheriff un-
der a writ of venditioni exponas issued on a
Judgment obtained by EHia S. Johnson, one
of the defendants, in the Superior Court in
and for Sussex County. The facts appear in
tlte opinion previously filed in this cause, re-
ported in 98 Atl. 218.
Woodburn Martin, of Georgetown, for com-
plainant Robert C. White, of Georgetown,
for defendants.
THE CHANCELLOR. In the opinion filed
with the order overrnUng the demurrer to
the UU the material fact^ alleged in the biU
were stated. Afterwards the defendant, Ella
S. Johnson, filed an answer admitting sub-
stantially all the allegations of the bill and
denying the title of the complainant, which
she said was fraudulent and therefore null
and void. She also filed a cross-biU setting
out the diaracter of the fraud, and asked
that the deed evidencing the title of the com-
plainant be annulled. Testimony on both
sides was taken by depositions before an ex-
aminer. The complainant put in evidence his
paper title, and the defendant, Ella S. John-
son, only offered evidence as to the refusal
of the Deputy Register of Wills to accept the
resignation of Everett M. Barr as adminis-
trator of HetUe A. S. KoUock. At the final
hearing the cross-bill was on motion of the
complainant therein, Ella S. Johnscm, the de-
fendant in the original cause, dismissed.
There was, therefore, no change in the facts
to be considered, except evidence that the
resignation of Barr as administrator had
been refused.
Inasmuch as all of the material questions
raised were passed on in the opinion on the
demurrer, and the defendant, Ella & John-
son, did not offer any evidence as to the
fraud with which she charged the title of the
complainant to be tainted, but on the con-
trary withdrew the cross-bill, and as I ad-
here to the views expressed in the opinion
heretofore filed In this cause, which were
based largely on decisions of the courts of
Delaware, including the Court of Errors and
Appeals, the complainant wiU be awarded a
final decree for a permanent injunction en-
Joining the defendants from selling the prem-
ises of the complainant for the payment of
the Judgment recovered against the adminis-
trator of Hettie A. S. Kollock.
The case of Hall v. Greenly, 1 Del. Oh. 274,
cited by the solicitor for the defendant does
not conflict with this view taken. In the cit-
ed case Chancellor Ridgely refused to set
aside a voluntary deed made by a father to
his two minor sons, the land having been sold
by the sheriff in execution of Judgments
against the father recovered subsequently to
the deed but contracted prior to it, and left
the complainant to take his more effective
remedy in an action at law. There were also
other reasons assigned. In the case before
this court the equity of the bill is to prevent
the cloud on the title which would otherwise
arise in case the sale is made.
It is not necessary to decide whether that
Judgment was Irregular and invalid by reason
of the resignation of the administrator be-
fore the institution of the action on which
the Judgment was entered, for the result
would be the same even if the Judgment be
valid.
The complainant as the owner of land may,
though he be not in possession thereof, en-
Join a sale thereof to collect a Judgment ob-
tained agralnst a prior owner who before re-
covery of the judgment had conveyed the
land to one under whom the complainant
took title, and the basis of the Jurisdiction is
the prevention of the creation of a cloud on
the title of the complainant which would re-
sult from such sale, where the complainant
could not attack the validity of the Judgment
The costs of all parties will be Imposed on
the defendant, EHia S. Johnson.
Let a decree be entered accordingly.
(U Del. Cb. *si
In re WHEELER'S ESTATE.
(Orphans' Court of Delaware. New Caatl«.
Aug. 1, 1917.)
1. Trusts <3=»198— Saxxs of Tbust Pbofbbtx
— PUBCHASE BY TKUSTKB — VALIDITT.
When a trustee or other fiduciary purchases
at his own sale, the transaction is not void, but
voidable, and until it is rendered void, or his
liability is fixed, be takes and holds tne legal
title.
2. ExEctrroES and Adkinisteatobb «=>372 —
Sat.es fob Payuent of Debts — CoiiPZ.EriON
OF Bid.
A judgment was recovered against a mar-
ried woman in her lifetime, and after her death
her husband, as administrator, became a party
to an amicable action on the judgment pursuant
to which the property was sold. The husband,
who had a statutory right to one-half of the land
for life after the payment of her debts, became
the purchaser for the amount of the judgment,
costs, and taxes. Bright years later, and after
the husband's death, the property was sold for
the payment of his debts. Beld, that the pur-
chaser would not be relieved from the completion
of the purchase, as there was no irregularity in
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101 ATLAMTIC REPORTER
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the husband becoming • party to tbe amicable
action, and he was not required to bid more
than sufficient to protect himself; and the court
will not relieve a bidder, when the legal title
would pass subject to some alleged outstanding
equities, which might or might not exist or be
enforceable.
s. exectttoiia and a dministbatobs <s=>329(1)
— Sales fob Payment of Debts — Pbopkbty
Subject to Sale.
The record facts did not constitute notice to
the husband's creditors, or put them on inquiry
as to any defect in or cloud upon bis title, and
they were entitled to have toe land sold for
their benefit.
4. Executobs and Aduinistbatobs $=>3S8(4)
—Sales fob Patiosnt of Debts— Repbksen-
tatiors as to Title.
A purchaser of land sold for the payment of
a decedent's debts under an order of the orphans'
court is not entitled to rely on any representa-
tion as to the title made by the administrator or
his counsel.
6> EZXCUTOBS AND Administbatobs «=»388(4)
—Sales fob Payment of Debts — Caveat
Emptor.
Where land sold for the payment of a dece-
dent's debts under an order of the orphans' court
had been purchased by the decedent at a sale un-
der a judgment against his deceased wife at a
time when he was her administrator and also
life tenant, the principle of caveat emptor, which
is peculiarly applicable to judicial sales, mixht
be invoked.
Proceeding for the sale of real estate of
George E. Wheeler, deceased. On application
by the administrator for forfeiture of a de-
posit by the purchaser. Purchaser directed
to pay the balance of the purchase money or
forfeit tbe deposit
Statement of the Case.
Lend of a decedent, George E. Wbeeler,
was sold by order of the orphans' court for
the payment of his debts; his personal es-
tate being Insufficient for the purpose. At
the sale the purchaser paid part of the pur-
chase money and having failed to pay the
balance before tbe date for tbe return of tbe
sale, tbe administrator asked that the de-
posit be forfeited. Thereupon tlie purchaser
filed bis reasons for decliuing to take tbe
title and pay the balance of the purchase
money.
It was alleged that tbe property was pur-
chased in 1908 by Lemira Wheeler, the wife
of George R Wheeler, tbe decedent, and the
consideration in tbe deed to her was $1,750.
In 1887 a Judgment was recovered against
Lemira Wheeler, and was revived in her
lifetime. After her death in 1907, without
having had children by George E. Wheeler,
her husband became her administrator and
in 1908 became as administrator a party to
an amicable action in tbe Superior Court on
tbe judgment, pursuant to which the prop-
erty was sold nn a venditioni exponas tg the.
January term, 1900, to George E. Wheeler
for a sum just sufficient to pay that Judg-
ment, costs and taxes, and on confirmation of
the sale a deed was made to him by the sber-
iir on January 26, 1009, since which time and
until he died he has been in pocsession of
the property.
After his deatli tbe administrate of
George E. Wbeeler by petition to the oiptums'
court setting forth the debts of George E.
Wbeeler and the insufficiency of bis personal
estate to pay them, obtained an order for
sale as above stated.
The objections were heard upon tbe facts
stated by the purchaser in bis statement of
reasons respecting tbe title by Cbanoellor
Curtis, sitting as presiding Judge.
Artemas Smith, of Wilmington, for ad-
ministrator. Walter J. Willis, of Wilming-
ton, for purdiaser.
CURTIS, P. J. The limitations on tbe con-
duct of a fiduciary respecting tbe purchase
of tbe property in bis control are established
in Delaware as strictly as anywhere else.
No person is permitted to purchase an in-
terest in property and tuM it for bis own
benefit, where he has a duty to perform la
relation to such property which Is inconsist-
ent with tbe character of a purcbaser on his
own account and for bis individual use.
In Van Dyke v. Johns, 1 Del. Cb. 83, 12
Am. Dec. 76, an administrator at a sale by
him in 1789 of land of bis decedent for the
payment of debts purchased the property
through another person to whom on con-
firmation of tbe sale by tbe orphans' court
the land was conveyed, and by him reooo-
veyed to the administrator. In 1817 die
heirs at law filed a bill against tbe admin-
istrator to have him, who still owned the
property, declared a trustee for them. Hie
court recognized tbe principle Invoked as
being "a general rule of public policy de-
pending, not upon tbe drcnmstances of the
case, but upon general principles, that bow-
ever honest the circumstances of any indi-
vidual case may be, tbe general Interests of
Justice require tbe purctiase to be avoided
In every case." In that cited ca&e the conrt
refused relief on two grounds: (1) Nearly
thirty years' delay and acquiescence; and ^
tbe conclusiveness of tbe title by coufirmt-
tlon of the sale by the orphans' court (ex-
cept on appeal) as that court had complete
power to inquire into tbe matter.
Tbe same strict rule was stated and ap-
plied in Downs v. Rlckards, 4 Del. Ch. 416.
There Rlckards, who had been appointed
guardian of minors after un order had been
made by tbe orphans' court appointing an-
other person trustee to sell land of the mi-
nors, purchased through some one else the
minors' land. The sale was confirmed, Bid-
ards being then the guardian, and a deed
was made. Subsequently the minors by bill
sought to establish a trust for their benefit,
based on actual and constructive trust to
exist, first because independent of actual
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IN B£ WHEELEB'S ESTATE
867
fraud U was within the role which prohibits
a trustee to purchase land held by him as
trustee, and second because there was also
legal fraud. The disability of a trustee ex-
tends to sales conducted by others as to
those conducted by himself. "The principle
is," as Chancellor Bates expressed it, "that
one shall not act for himself in any matter
with respect to which he has duties to per-
form or interests to protect for another.
• • * The principle loolis, not merely to
prevent fraud in the management of the salu,
but to the broader object of relieving trus-
tees from any possible conflict between duty
and self interest." Its application is of the
widest and Includes all persons holding fidu-
ciary confidential relations with others re-
specting property, and fairness and adequacy
of the price are ImmaterlaL The court also
held that the confirmation of the sale was
not a bar to the equitable relief.
In the case of Gberhardt et al. v. Chris-
tiana Window Glass Co. et al., 9 Del. Ch. 284,
81 AtL 774, the same principle was applied to
a purchase of property of the company by a
director of the company.
It was also urged as an objection to the
title, that because George A. Wheeler was
a life tenant of the property owned by bis
wife his purchase of the remainder at the
sheriff's sale inured to the benefit of the ten-
ants in remainder, the heirs at law of his
wife. Under some circumstances a tenant
for life who acquires the title under a Judi-
cial sale made to collect the debt of a prior
owner, holds it for the benefit of the re-
maindermen as well as for his own benefit
Co. Utt i 453, 267; Washburn on Real
Property (5th Ed.) 120; Allen v. De Groodt,
98 Mo. 159, 11 S. W. 240, 14 Am. St. Rep. 626.
But it is not necessary to so hold under the
facts in this case.
Assuming, however, that these principles
would have been applied to a timely action
by the heirs at law of Lemlra Wheeler, wife
of George B. Wheeler, against George B.
Wheeler, and a trust set up for the benefit
of the heirs at law, the question still remains
whether at this time, and under the circum-
stances here present, the purchaser at the
sale held by the administrator of George E.
Wheeler can rightly refuse to take the title
to the land which be bought.
[1,2] When a trustee, or other fiduciary,
purchases at his own sale he takes the legal
title and holds it until the transaction is ren-
dered void or his liability is fixed. In other
words, the transaction is not void, but void-
able. 18 Cyc. 771. Many circumstances may
exist which would bar the heirs at law of
Lemlra 'Wheeler from a right to hold George
El Wheeler to be a trustee for their benefit,
such as an actual acquiescence. Again,
George E. Wheeler had an Interest in the
land when sold by the sheriff. He had a
statutory right to hold one-half of the real
estate of his wife for Ufe after the payment
of her debts. There was no irregularity In
his becoming a party to an amicable action
upon the Judgment held by McCann against
lemlra Wheeler, for if the debt was due and
unpaid the administrator rightly co-operated
with the creditor to save costs in the proce-
dure for the collection of the del)t. Neither
does it appear that there was any Irregulari-
ty on the part of the administrator in the
settlement of the personal property of his
deceased wife.
The only evidence of fraud suggested here
is the inadequacy of the price for which
George E. Wheeler bid In the property. But
that is not shown, for he was buying land
in which he had a life estate, and the value
of that interest does not appear. He did
not do wrong In not bidding more than was
necessary to pay the encumbrance which was
ahead of his Interest. He had a right to
bid to protect himself, and was not bound to
bid more, and was certainly under no legal
or equitable duty to bid up to the value of
the property, if that had been in excess of
the value of his own Interest
[3] Since the purchase of the land by
Wheeler the rights of third persons hav« in-
tervened, viz. his creditors, for whose benefit
the last sale was made. They, or some at
least of them, are not necessarily chargea-
ble with notice of any defect In or cloud up-
on the title which he had. The record facts
do not constitute such notice, or put them on
inquiry. As the personal estate of George E.
Wheeler is Insufficient to pay his debts, his
creditors may have it sold for their benefit
The equities of the heirs at law of Lemlra
Wheeler, if any there be, in the proceeds of
sale needed for the payment of the debts of
the decedent may be adjusted even after the
title has passed to the purchaser at the sale
by the administrator,
[4] The purchaser at the sale is not enti-
tled to rely on any representation made as
to the title by the administrator, or his coun-
sel. In re Estate of Donaghy, 9 Del. Ch.
441, 80 AU. 721 ; 11 Ruling Case Law, 414.
While a court which authorized a Judicial
sale may feel Justified in relieving a bidder
from compliance with the terms of sale
where it is clear that title to the property
sold would not pass to the purchaser, still
the court would not be Justified in so doing
when clearly the legal title would pass sub-
ject to some alleged outstanding eqxiltles
which might or might not exist, or be en-
forceable. This present case is of the latter
class. Lap.se of about eight years should al-
so be taken into consideration in this pres-
ent matter.
[5] it is also quite Just in this case to in
voKe the principle of caveat emptor, whidi It
peculiarly applicable to Judicial sales. II
Ruling Case Law, § 414. In Smith v. Wild-
man, 178 Pa. 245, 35 Ati. 1047, 36 L. R. A, 8*1,
56 Am. St Rep. 760, the court said that the
disapi)ointment in the title to be acquired
by the sale is not ground to relieve the pir-
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101 ATLANTIC REPORTER
CDeL
chaser from compliance with the terms of
sale.
Therefore, chiefly for the reason that the
sale is made for the benefit of creditors of
George B. Wheeler, the other considerations
being also given weight, the purchaser should
be required to pay the balance of the pur-
chase money or forfeit the amount deposit-
ed at the time of the sale.
(U Del. Ch. 877) «=^=
WOLOOTT, Atty. Gen., ex rel. MALONEY
et al. ▼. DOREaiUS et al.
(Court of Chancery of Delaware. April 30,
1917.)
1. NUISANCK €=»61— PUBUO NUISANCK— IN-
JDNCTION— Crimes.
An act interfering with public rights, by
affecting public health or safety, or interfering
with use of public property, though indictable,
may be enjoined as a pubhc nuisance.
2. Nuisance ©ssTS— Public Nuibancb— Ik-
junction— Evidence.
That an act may be enjoined as a public nui-
sance, the evidence must be clear and convinc-
ing, and it being conflicting, and injury to the
public being doubtful, injunctim should not is-
sue.
8. noisahci 4s>61 — pubijo nmsanck —
Noises.
It is the effect on persons of average sensi-
bilities or animals of normal temperament which
determines whether a noise is a public nuisance.
4. Nuisance ®=>61 — Public Nuisance —
Noises.
The effect of a noise on a person of average
sensibility, necessary to render the noise a pub-
lic nuisance, must be real, actual, physical dis-
comfort
5. Nuisance 9=361 — Public Nuisance —
Noises.
The effect of a noise on a horse of normal
temperament traveling on a highway, to make
the noise a public nuisance, as rendering the
highway unsafe, must be to injure or frighten it.
6. Nuisance ®=»75— Injunction — Costs.
Defendants must pay the costs of an action
to enjoin a public nuisance, where it existed
at the time bill was filed, though abated by their
acta before final hearing.
Action by Josiah O. Wolcott, Attorney
General, on the relation of Michael W. Ma-
loney and another, against Thomas E. Dore-
mus and others, as officers and members of
an unincorporated association. Preliminary
injunction dissolved.
See, also, 85 AtL 904.
Infonaati(»i in the nature of an Injunc-
tion bill to restrain the shooting at targets
on the grounds occupied by the Dn Pont
Trapshootlng Club. The cause was beard
on the Information, answer, testimony of
witnesses produced before and heard orally
by the Chancellor and exhibits. ^I%e facts
sufficiently appear in the opinion of the
Ohancelor.
Robert Penlngton, of Wllmlnsttm, for the
rehttora WUllam S. Hllles and J. P. lAlfey,
both of Wilmington, for the d^endants.
THE CHANCELLOR. The cause is an
information In the nature of a bill filed by
the Attorney General on the relation of two
citizens to perpetually enjoin the members
of a trapshootlng club from continuing a pub-
lic nuisance^ After answer filed an ai^U-
cation for a preliminary injunction was
heard on the Information, answer, ex parte
affidavits and exhibits. It having been
proved that shot from guns used in the trap-
shooting fell into the public road on which
the premises of the club abutted, and that
the safety of persons using the highway
was seriously endangered thereby, an In-
junction was awarded enjoining the shoot-
ing from all the traps of the club until the
further order of the Chancellor. Afterwards
the defendants filed a motion to dissolve the
preliminary injunction, based largely on al-
legations that since the granting of the in-
junction the location of all of the traps and
the direction in which the shots were fired
were so changed as that it was impossible for
shot to reach the highway. Testimony of
many witnesses was heard in the cause in
January, 1914, and in lieu of oral arguments
briefs of counsel were filed March 12, 1917.
In the opinion filed when the preliminary
injunction was granted the general fiicts
were fully stated, and it is not necessary to
review them here, except as to the new mat-
ters shown. It was shown that travtiera
along the road cannot be struck by shot
fired from guns by persons using the traps
as now arranged. But these traps were all
moved much closer to the public road, and
the gunners would now stand in handicap
contests at firing points in the traps wbldi
are about 45, 55, 105, 165 and 205 feet from
the public road. The traps as newly arrang-
ed have not in fact been used, the rearrange-
ment thereof being made after the prelimi-
nary injunction had been issued against
shooting from any of the traps. Under the
old location of the traps the one closest to
the road was about 183 feet distant there-
from. It is clear, therefore, that danger to
the users of the highway from shot from the
guns fired from the traps as now located Is
now eliminated from the case as a ground
for relief, but that the traps are all much
closer to the road. There was ao allegation
of disorder, breaches of the peace, or other
improprieties at the dub.
[1, 2] In order to determine whether a pub-
lic nuisance will result from a further ope^
ation of the dub under the changed condi-
tlcms, two questions of fact must be found
as to the effect of noises from the firing of the
guns: (1) Wliether animals traveling in the
public road will be frightened or injurioiuly
affected thereby ; and (2) whether the health
or comfort of tbe community has been, or
will be, injuriously affected thereby.
The jurisdiction of the court in such cases
Is not In dispute, and Is the same whether
the acts complained of are also Indictable
or not, for the fact that the Iceeping of a
nuisance is a crime does not deprive the
Court of Chancery of power to enjoin the
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WOLCOTT V. DOREMUS
8C9
nuisance. The same Is true whether, or not,
It is by statute made a misdemeanor for the
club to keep and use the trapsbootlng con-
veniences within 300 yards of the public
road. The criminality of the act will nei-
ther give or oust Jurisdiction which otherwise
attaches.
As a general proposition a court of equity
cannot enjoin the commission of crime, for
Its powers relate to cItII rights. Where, how-
erer, the rights of the public are Interfered
with, the court has Jurisdiction to enjoin the
wrongful acts. 4 Pomeroy on Equity Juris-
prudence, i 1043; 2 Morawetz on Private
Corporations, i§ 921-923; 1 Wood on Nui-
sances, { 14. The Jurisdiction attaches where
the public health or safety is aftected, or the
use of public property Interfered with. The
use made of their property by persons owning
land abutting a highway may be a public
nuisance If the highway be made unsafe for
travel thereon, and a Court of Chancery will
prevent the Injury though It cannot punish
the offenlder.
In two Delaware cases the power of the
Court of Chancery to enjoin as a public nui-
sance an act Interfering with public rights
was recognized, though not applied. Harlan,
etc., Co. V. Posehall, 5 Del. Ch. 435, 470;
Gray v. Baynard, 5 Del. Ch. 499. In Murden
▼. Lewes (Del.) 96 Atl. 606, which concerned a
physical obstruction of a highway, it was
said that "a nuisance is public when It affects
rights to whldi every citizen is entitled,"
and It follows, of course, that a nuisance
which affects the right of travelers on a pub-
lic highway, or the health of the community.
Is a public nuisance. Joyce on Nuisance, 8
5, p. 11. To give the Court of Chancery Ju-
risdiction to enjoin a public nuisance, the
evidence must be clear and convincing. If
the evidence is conflicting and the injury to
the public Is doubtful, the Chancellor should
not act 4 Pomeroy on Kqulty Jurispru-
dence, I 1439; Harlan, etc., Co. v. Paschall,
6 Del. Ch. 435, 470. Each case presented to
the court must me tested by its own drcum-
fltances. Gray v. Baynard, supra.
[3-5] Of course, noises alone may consti-
tute a nuisance. Whether a particular kind
or volume of noise in a particular locality Is,
or Is not, a publio nuisance, depends up<m the
effect thereof on persons of normal nerves
and sensibilities, and of ordinary tastes, hab-
its and modes of living, and not on persons
who are delicate bodily and abnormally ner-
vous, or ill. nie effect produced must be a
real, actual, physical discomfort produced
upon a person of average sensibilities. These
principles are so well established and so rea-
sonable that It Is not deemed necessary to cite
authorities on the point. Indeed, the solici-
tor for the relators in his brief does not dis-
pute the principle, and makes the test of hab-
its to be substantial discomfort to persons of
ordinary sensibilities. So, also, to render
the highway unsafe, the effect of noises on
horses, or other animals passing along the
highway, must be such as to injure or fright-
en a horse of normal temperament, or as is
frequently held, horses of "oi'dlnary gentle-
ness." Joyce on Nuisances, { 256; Wood on
Nuisances, p. 402 ; Wabash, etc., Co. v. Far-
ver. 111 Ind. 195, 12 N. E. 296, 297, 60 Am.
Bep. 696; Stone v. Langworthy, 20 B. I. 602,
40 Atl. 832, 833 ; Patton, etc., Co. v. Drennon,
104 Tex. 62, 133 S. W. 871.
The character of the noises will not be al-
tered by moving the traps closer to the pub-
lic road. As to the character of the noises
It was shown that the club had a large mem-
bership, was used not only by members but
also by visitors who were made welcome,
and the traps were used for large tourna-
ments, which lasted several days. It was
claimed for It that the club was, or would be
made, very prominent In that kind of sport,
and was in fact the largest of Its kind In the
world. On some days at least 5,000 shots
were fired. In one year 250,000 targets were
nsed on 104 days of shooting. The effect
of from 10 to 25 persons shooting together,
though not simultaneously, was described as
a fusillade of explosive noises, as a bombard-
ment, and the like.
(1) Has the highway been rendered unsafe
because noises from the firing of the guns
win frighten or injuriously affect the horses
and other animals being used by travelers on
it? There was evWence that certain horses
passing along the highway while trapsboot-
lng was in progress at the traps as original-
ly arranged were in fact frightened, and at
least one became uncontrollable and ran
away. But it was not clear In all cases that
horses were actually struck by shot and so
were not frightened by the noises only, and
the fair inference from the testimony Is that
they were hit by shot. The effect of moving
the traps nearer to the public road has not
been tried. Of course the character of the
noise was not altered by the change of loca-
tion of the traps. It is clear, however, that
the volume would be greatly increased by the
use of all the traps so much closer to the
road. An effort was made by the defendants
to show that the volume of sound reaching
the roa'd would be less than formerly, be-
cause the guns from the traps nearest the
road would be pointed away from and not
towards the road; but the effort was sden-
tiflcally unsound and the theory Is rejected.
The testimony, both theoretical and experi-
mental, as to the effect of the peculiar noises
made by the trapsbootlng on the premises is
conflicting in some respects. With respect to
almost every horse which has been struck by
shot, it Is clear that an Injury would be done
to it. An animal would ordinarily be made
what is called "gun shy," or peculiarly nerv-
ous on hearing a similar sound elsewhere,
and by associating the occurrence with the
place would be made especially nervous in the
same locality. But this special objection does
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670
101 ATLANTIC REPORTER
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not now exist, for by the new arrangement
of the traps shot cannot reach the public road.
Almost all of the cases where according to
the testimony horses have been frightened to
such an extent as to cause them to get be-
yond control were those where the animals
were struck by shot, or were temperamental-
ly ahnorraally nervous.
It has been diflicult to determine the ef-
fect of the nobiv.s only on horses In the road.
The opinions of exi)ert and other witnesses
%'ary greatly. One thing is quite certain ; the
movement of the traps closer to the road will
increase the probability of injurious effect on
animals in the road. While the weight of
testimony of persons of experience with
borsee was that tlie peculiar noises made by
trapshooters on the premises of the club
were such as to alarm and frighten normally
tempered horses, and to that extent injure
them and increase the danger to their driv-
ers, still inasmuch as there was reliable testi-
mony to the contrary, and there was an ab-
sence of testimony that any normally tem-
pered horse had been so affected by the
noises only during the i>erlod of five years in
which the shooting was done. It does not
seem just or equitable, or within the limita-
tions of the discretion of this court, to pro-
hibit all shooting on the premises of the club.
The evidence of the state is not "clear and
convincing," as is required and is in fact con-
flicting. In case of serious doubt arising from
conflicting testiuiony, the court should leave
the matter to ibe settled by another tribunal,
where the fact of the injury to the public
rights could be ascertained by a Jury.
Inasmuch, . then, as the evidence on this
point is really conflicting and the injury to
the paUic doubtful, that alone constitutes
here a proper ground for withholding the in-
terposition of the extraordinary power of
this court asked for.
(2) Has the health or comfort of the com-
munity been really affected by the noises
made by the club ? Without reviewing the tes-
timony it is dear that it was not shown either
theoretically by experts, or practically by
particular Instances, that actual physidal
discomfort was produced upon persons of
normal health and sensibilities. The disturb-
ance of the rest of two normally healthy
night worl-.ers in the community does not just-
ify the relief sought The testimony of the
complainants on this branch of the case does
not come up to the requirements to obtain in-
junctive relief, and there were many witness-
es living in the vicinity who testified to the
absence of material annoyance by the day
shooting. In this connection it should be not-
ed that an entirely different problem would
probably arise In case the practice of shooting
at night was resiuiied. But inasmuch as the
practice had ceased at the time the informa-
tion was filed, it cannot now be a ground for
present relief.
Upon neither of the two grounds, therefore,
should the court by injunction prevent the
use of the premises by the club for the pur-
pose of shooting at targets from the traps
as now arranged.
II] Inasmuch, however, as there was am-
ple evidence that at the time the bill was fil-
ed the shot fired by gunners from the traps
fell into the public road, rendering it unsafe
to travelers using it, and a public nuisance
was thereby created, the defendants must pay
all the costs of the cause.
Let a decree be entered accordingly.
(u Del. Ch. tO)
ILLINOIS FINANCE CO. v. INTERSTATE!
RURAL CREDIT ASS'N.
(Court of Chancery of Delaware. Aug. 7, 1917J
1. ASBIONHENTS ®=>121— SdIT BT ASSIOMia—
RioHT TO Sub in His Own Name.
Rev. Code 1915, { 2627, making all bonds,
specialties, and notes in writing, payable to any
person, or order, or assigns, assignable, and
authorizing the assignees or indorsees to soe
thereon in their own names, does not apply to
a contract giving plaintiff's assignor an exclu-
sive agency for tiie sale of stock in the defend-
ant company.
2. Assignments «=»121— Suit bt Absiqnee—
RiOHT TO Sub in His Own Name.
An assignee of an unassignable contract can
sue in equity in his own name, but at law must
sue in the name of his assignor.
3. Equity 9=>46 — Actions bt Absiokbes—
Remedt at Law.
1 hough generally a court of chancery is not
ousted of its jurisdiction simply because conrta
of law extend their jurisdiction, the jurisdictiiHi
of suits by assignees of unassignable choses in
action, formerly exclusive in equity, is not now
recognized as even concurrent with law courts,
unless adequate relief is not afforded at law.
4. Assignments $=>127 — Actions bt As-
signees—Jubisdiction OF EguiTT.
In an action for unliquidated damages for
breach of a contract giving plaintiff's assignor
an exclusive agency; for the sale of stock in the
defendant corporation, though the bill stated
facts upon which the damages could be assessed
without difficulty, if complainant's theory was
correct in law, it was not sufficient to sustain
the jurisdiction of equity that complainant sued
as the assignee of a chose in action.
5. Equitt $=11— Fraud — Actions by As-
signees—Jurisdiction OF Equitt.
The relief sought being damages for the
breach of the contract, allegations of fraud and
collusion between defendant and complainant's
assignor could not confer jurisdiction oa a court
of equity.
6. Assignments $s>]27 — Actions bt As-
signees—Jurisdiction OF EQXnTY.
That the bill sought a declaration of com-
plainant's rights under the contract, a cancella-
tion of a subsequent assignment by bis assignor,
or a reinstatement of the contract, did not give
jurisdiction, as be did not need any such declara-
tion, cancellation, or reinstatement in order to
obtain damages at law.
7. Discovery ®=>3— Leoai. Rbmxdt— Juris-
diction OF Equity.
Oeneral interrogatories, attached to the bill
making inquiry as to what documents defendant
hud relating to the matters set forth in the
hill, did not authorize equity to assume jaris-
diction, as discovery of such documents conld
bo had at law, under Rev. Code 1915, | 422S,
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lUilNOIS FINANCE CO. v. INTERSTATE RURAL CREDIT ASS'N
871
authorising the court, in actions at law, to or-
der the production of boolca or writings contain-
ing pertuent evidence.
& ASSIQNMENTS ^=>127 — ACTIONS BT AS-
SIONEEft— JUBISDICTION OF EQUITY.
A prayer for an accounting did not give
jurisdiction to equity, in the absence of any
allegation that it was a mutual or complicated
account, or even that there were numerous items.
9. Account ^=>14r- Actions foe Accoontinq
— JuBisDicnoN OP Equity.
The jurisdiction of a court of equity respect-
ing accounts, except between fiduciary and ben-
eficiary, or where discovery is requisite to the
relief sought, does not exist, where the items are
all on one side.
Salt by the Illinois Finance Company
against the Interstate Rural Credit Associa-
tion. On demurrer to the bill. Demurrer
sustained.
Statement of the Casa
In substance the bill shows that E. H.
Watson had made a contract with the de-
fendant company, by which he was given
an exclusive agency to sell shares of stock
of the defendant company, collect from the
purchasers payments for the stock, pay all
the expenses of making the sales, such as
agents' commissions, office expenses, etc.,
and retain from the proceeds as his com-
pensation a fixed percentage thereof of any
sales made by him, or otherwise made. It
was agreed that the contract could be as-
signed by Watson. The capital stock of the
company of one million dollars had not then
been sold. This contract was afterwards
assigned to the complainant, with the knowl-
edge of the defendant company. Thereafter
the complainant company sold a large
amount of stock of the defendant company,
and received certain moneys therefor. Later
the defendant company denied that the com-
plainant company had any interest In the
contract, and prevented the further perform-
ance by the complainant of it, though the
specific nature of this claim was unknown to
the complainant. It was alleged that over
$750,000 par value of the stock of the de-
fendant company was unsold, and that the
complainant had a right to sell all of this
stock and, retain commissions amounting to
at least $500,000, but that the defendant
company deprived the complainant of the
profits which would have accrued to it un-
der the contract, and has refused to pay the
same to the complainant, and owed the com-
plainant at least $50,000 more for sales made
by the complainant, making the aggregate
of the claim of the complainant against the
defendant $560,000.
The prayers of the bill were (1) to ascer-
tain and establish the rights of the com-
plainant in and to the contract; (2) to can-
cel a supposed subsequent assignment of
the contract by Watson to the defendant
company; and (3) that the defendant ac-
count for and pay over to the complainant
all sums due under the contract.
Attached to the bill were general inter-
rogatories as to what contracts, assignments
and other papers relating to the matters
contained in the bill are In the possession of
the defendant company or any agent, offi-
cer or other person subject to the control
of the company.
To this bill the defendant demurred (1)
for want of Jurisdiction, there being a rem-
edy at law; (2) because Watson Is a neces-
sary party; and (3) there is no ground for
equitable relief.
Marvel, Marvel, Wolcott & Layton, of Wil-
mington, for complainant Robert H. Rich-
ards and James I. Boyce, both of Wilming-
ton, for defendant
THE CHANCELLOR. [1] The complato-
ant is the assignee of a contract, by Its
terms made assignable, and the other party
to the contract had notice of the assign-
ment Cboses in action are not assignable
at common law, and the statute whiuU
makes assignable certain kinds of evidences
of Indebtedness otherwise not assignable and
gives to the assignee a right to sue there-
on In his own name, does not apply to the
contract under consideration. Revised Code
of 1915, ! 2627, p. 1271.
[2] An assignee of an unassignable con-
tract can sue In equity on the contract in his
own name, but at law must sue in the name
of his assignor. Whether the provision of
the contract making it assignable gave to the
assignee thereof a right to sue thereon at
law in his own name need not be consid-
ered in view of the conclusions reached.
[3] Courts of equity have taken Jurisdic-
tion to grant relief to the assignee of a
chose in action, because he could there bring
the suit in his own name. It Is also true
that in general the Court of Chancery la not
ousted of its Jurisdiction simply, as Lord
Eldon puts it, "because a court of law hap-
pens to fall in love with the same or a simi-
lar Jurisdiction." An interesting and ex-
haustive statement of this point is to be
found in 1 Whitehouse on Equity Practice,
SS 21-24, and the author's conclusions are
supported in Story's Equity Jurisprudence, (
80, and Pomeroy's Equity Jurisprudence, {{
17a-18».
The Jurisdiction of suits by assignees of
unassignable choses in action, formerly ex-
elusive In equity, is not now recognized as
even concurrent with law courts, unless It
be shown that adequate relief is not afforded
at law. 1 Whitehouse on Equity Practice,
H IS, 22 ; 1 Pomeroy's Equity Jurisprudence,
{ 281; 2 Story's Equity Jurisprudence, f
1057b; Ontario Bank v. Mumford, 2 Barb.
Ch. (N. Y.) 596; Walker v. Brooks, 125 Mass.
241. In 4 Cyc. 95, 90, and 5 C. J. 203, other
authorities are cited. The court in Walker
V. Brooks, supra, comments on a passage in
an early edition of Story's Equity Juris-
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872
101 ATLANTIC REPORTER
(Dd.
prudence at section 1057(a) In opposition to
the doctrine above stated, and In the later
editions a different statement is made. See
i 1057(b) of 13th Bd.
Pomeroy (9 Equity Jurisprudence, i 281) re-
fers to the practical abandonment by equi-
ty courts of jurisdiction over suits by the
assignee of choses In action as a striking il-
lustration of the change which has taken
place, where courts of law have assumed
the power to grant a simple, certain and per-
fectly efficient remedy. The author also
says this:
"As a general rule a court of equity will not
now entertain a suit brought by the assignee
of a debt or of a chose in action which is a
mere legal demand."
The point seems to have been passed on
by Chancellor Johns In the case of Cochran
V. Cochran, 2 DeL Ch. 17. There the as-
signee of a judgment filed a bill against the
heirs at law of the defendant In the Judg-
ment to collect the amount claimed to be due
thereon, and the court held that the only
ground urged to show Jurisdiction, the fact
that there was no personal representative of
the deceased defendant, was not sufficient,
as there was a sufficient remedy at law. The
Chancellor evidently found that as the legal
remedies were sufficient the fact that the
assignee of the Judgment must use the name
of the original plaintiff did not of Itself Jus-
tify the court in taking jurisdiction, and the
ground urged being Inadequate, dismissed the
MIL In the later case of State v. Wilming-
ton Bridge Co., 2 Del. Ch. 58, the same Chan-
cellor found such other need of equitable re-
lief even for the recovery of a legal demand,
viz., a right of a principal to an account
from the agent and a need for discovery
from the defendant.
[4] In the case under consideration the
main relief sought Is damages for breadi of
a contract for service, and the amount Is
unliquidated, though the bill states the facts
upon which an assessment of the damages
could be made without difficulty if the com-
plainant's theory on the subject be correct
In law. Therefore, if no other ground for
equitable relief exists, it is not enough to
sustain the jurisdiction of the court that the
complainant brings his suit as the assignee
of a chose in action. The complainant rec-
ognizing this principle nrges that this court
has Juflsdlctlon because of tha discovery
sought and because an account is sought.
[5,B] The fraud which the complainant
says Watson perpetrated, and the assumed
though not alleged collusion between Wat-
son and the defendant, cannot confer juris-
diction, for the relief sought is damages for
the alleged breach of the contract. Neither
does the complainant need any declaration
of its rights or a cancellation of the second
assigtunent to the defendant, or a reinstate-
ment of the contract in order to obtain dam-
ages at law. Indeed, it is claimed that be-
cause of the defendant's notice of the com-
plainant's rights the complainant Is entitled
to damages notwithstanding the collusive
acts between Watson and the defendant
company by way of re-asslgnment, surrender,
or otherwise, and Ix>rd Hardwick is cited
as authority, in Le Neve v. Le Neve, Amb.
430; and also Pomeroy's Equity Jurispru-
dence, § 501, though no authority would seem
necessary to support such an obviously tme
proposition.
[7] Does this court have Jurisdiction be-
cause of the interrogatories which the com-
plainant has attached to the bill? These in-
terrogatories are very general, being inquir-
ies as to what dociuuents the defendant has
relating to the matters set forth in the bllL
Assuming that they are proper In form, tbe
complainant may in an action at law for
damages for breach of the contract obtain at
any time pending the cause discovery of
such documents as fully as it could In this
court Revised Code of 1915, { 4228. Dis-
covery is not In this case a ground for as-
suming jurisdiction.
[1,9] An accounting is prayed for, but
there is no allegation that It is a mutual or
complicated account, or even that there
would be numerous items in it The juris-
diction of a court of equity respecting ac-
counts, except between fiduciary and the
beneficiary, or where discovery is requisite
to the relief sought, does not exist where
the items are all on one side. 1 Story's
Equity Jurisprudence, §§ 458, 459. Indeed,
if the complainant should sue at law for
breach of the contract, the complainant
would need no account of sales made of
shares or of the exi>enses Incurred in so do-
ing, for this would be the defendant's proof
to lessen the amount of the damages recov-
ered upon proof made of the contract the
assignment of it to the complainant and the
refusal of the defendant to permit p^form-
ance, and the consequent loss. It Is not,
therefore, a case where equity has Jurisdio-
tlon to order an account
In view of the conclusions here reached,
it Is not necessary to decide whether Wat-
son was a necessary party.
For these several reasons the Jurisdiction
of this court is not established, and the de-
murrer to the bill should be sustained.
liet an order be entered accordingly.
(U DeL Ch. 283)
ELLIOTT T. JONES.
(Court of Chancery of Delaware.
1917.)
May 10.
1. Specific Pebfobmanoe €=»6S— CHATntt*—
Decree
Specific performance of a contract respecting
personal property may be decreed, althoagb it is
limited to personal property peculiar and indi-
vidual in character, such as a patent, or which
has a special value on account of associations
connected therewith.
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Del.)
ELLIOTT V. JONES
873
2. Specifio Pebfobmancb *=>79 — Fxbsorai.
Pbopkbty— Right to.
Specific performance of a contract between
complainant and defendant to purchase and
train a horse, which they thought would become
valuable as a race horse, may be decreed, where
defendant purchased the horse and refused to
allow complainant to participate, even though
specific performance of the partnership agree-
ment should not be decreed.
8. Specific Pebfobmance ®=9l08 — Prblimi-
NABT Injunction.
Where a court of equity had jurisdiction to
decree specific performance of that part of a con-
tract which entitled complainant to acquire a
half interest in a horse, he and defendant having
agreed to purchase the horse jointly, and defend-
ant having purchased it and refused _ to allow
complainant to participate, a preliminary In-
junction restraining defendant from disposing of
the animal prior to trial is properly granted,
though specific perfomuince of some of the fea-
tures of the contract could not be granted.
BUI for specific perfonnanoe by Edward J.
EUllott against Erasmus Jonea. On mle re-
qnirtng defaidant to show cause why he
should not be restrained from disposing of a
horse pending final hearing. Preliminary in-
junction awarded.
Daniel J. Layton, Jr., of Georgetown, tor
complainant Charles W. Cnllen and Robert
H. Ricbards, both of Georgetown, and James
I. Boyce, of Wilmington, for defendant.
THK CHANCELLOR. The complainant
and defendant agreed to Join In buying and
training a particular horse, which by train-
ing could be developed into a valuable race
borae, &usti to furnish half of the money for
purchasing and training the animal, and to
share equally in the profits of using and sell-
ing it The horse was bought by the defend-
ant who has possession of it, and denies the
rights of the complainant, and refuses to ac-
cept payment of the complainant's share of
the purdiase money. A decree for specific
performance is sought to enforce the defend-
ant to transfer to the complainant an undi-
vided one-half Interest In the horse; and on
allegatlona that the defendant threatens to
dispose of the animal prays for a preHminnry
injunction pending the cause and a restrain-
ing order. On filing the bill a restraining or-
der was granted, and a rule for a prelimi-
nary injunction issued. The hearing is <mi
the rule for preUadnary injunction on bill
and ex parte affidavits.
By his affidavits the defendant did not
deny the material allegations of the bill, but
questioned the Jurisdiction of the court.
[t, 2J While a court of equity wUl not de-
cree ^ledflc performance of an agreement to
form a partnership, which being at will is
terminable by either party immediately, it
wUl secure to a partner his Interest in prt^
erty to which by the partn«^lp agreement
he is entitled. Somerby t. Buntln, 118 Mass.
279, 287, 19 Am. R^. 459. The power of a
Court of Chancery to decree specific per-
formance of contracts respecting personal
property Is not denied. It Is limited, bow- i
ever, to personal proi)erty peculiar and in'
dividual In character, such as a patent, or
which has especial value on account of asso-
ciations connected therewith, sudi as b^r-
looms, or where for some other cause its val-
ue is not measurable by a money value rea-
sonably ascertainable as damages In an ac-
tion at law. Inadequacy of the remedy at
law is the basis of the jurisdiction.
fnie nearest Illustration of the Jurisdiction
Is its application to contracts respecting
slaves. In days, happily' long since past
when slaves were property, the question was
litigated in several cases. In Virginia, South
Carolina, North Carolina, Tennessee and
Mississippi it was decided that a court of
equity had Jurisdiction to enforce specific
performance of a contract for the sale and
delivery of a specific slave as distinct from
one or several slaves as articles of commerce.
See the case of Summers v. Bean, 13 Grat
(Va.) 404 (1856), where the authorities are
referred to and discussed. In Georgia the
rule was not so broad, and the peculiar value
of the slave must be alleged and shown, aa
that they were skilled as house servants,
blacksmiths, carpenters, and the like. Mal-
lery v. Dudley, 4 Ga. 66.
Suppose a slave possessed mental or phys-
ical powers which Indicated that with op-
portunity for training he could become ac-
complished In some of the arts and sciences,
he would surely have such peculiar value,
present or prospective, as that ills present
value could not be ascertained, and a con-
tract respecting him would have been spe-
dflcally enforced.
By analogy with these cases a particular
horse with unique or peculiar traits and
Qualities different from horses in general,
and which has promises of development by
training so as to become valuable for speed
in racing contests, has a prospective but
now unascertainable value, and, therefore, a
contract respecting it is properly a subject
for a decree for specific performance, because
of the inadequacy of legal remedies.
in Kane v. Luckman (C. C.) 131 Fed. 609,
the court refused to decree specifically an
agreement to sell to the complainant a cer-
tain number of cows in the absence of evi-
dence that they were endowed with any
unique or peculiar traits or qualities that
would render their value Incapable or even
difficult of being ascertained In money, and
by inference held that if these elements had
existed the relief would have been granted.
[3] At this preliminary stage of the cause
the preliminary' Injunction to maintain in
statu quo the rights of the parties to the
pr(q>erty in question should not be denied,
because of lack of Jurisdiction of the sub-
ject-matter where the facts upon which the
Injunction dep^ids are not denied. At this
stage of the case it need only be declared
that under the allegations of the bill, if tbey
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874
101 ATLANTIC REPOBTER
(DeL
be proved, some part of the relief sought may
be granted.
A preliminary injanction will be awarded
upon the giving of an Injunction bond with
soffldait surety.
(U Dal. Cb. 34S)
ELLIOTT T. JONES.
(Court of Chancery of Delaware. June 28,
191T.)
Specific Pebfoemanck ®=5>79 — Dibectiow —
Chattels.
Where complainant and defendant, believing
that an animal would make a valuable race horse
agreed to join in purchasing it and to share
equally the expense of training it and the profits
of using and selling il^ and defendant bougnt the
horse but refused to accept from complainant
payment of his share of the purchase money or
to recognize complainant's ownership, specific
performance may be decreed to the extent of re-
quiring defendant to convey to complainant by
bill <^ sale an undivided interest in the animal,
and enjoining defendant from disposing of it
without complainant's consent, though the court
could not by its decree require the parties to
eontinne the partnership longer than they de-
sired.
BUI by EJdward J. Elliott against Erasmus
Jones. Decree for complainant.
BlU for specific performance of an agree-
ment between the complainant and defendant
to pnrchase a particular horse. The cause
was heard on bill, answer, testimony of wit-
nesses heard orally by the Chancellor and ex-
hibits. The facts are sufficiently stated In
the opinion.
Daniel J. Layton, Jr., of Georgetown, for
comi^alnant Charles W. CuUen, of George-
town, for defendant
THE OHANOHLLOR. This was a bill for
the specific performance of an agreement be-
tween the cwnplalnant and defendant by
which they agreed to Join in buying a particu-
lar horse possessing, as they believed, quali-
ties whldi when developed would malse the
animal valuable as a race horse. They were
to share equally the expense of training the
horse, and to share equally the profits of us-
ing and selling It The defendant bought the
horse and has possession of it and denies the
rights of the complainant and refuses to ac-
cept from the complainant payment of his
share of the purchase money and the train-
ing, notwithstanding tenders by the complain-
ant of performance on his part.
A hearing was had upon the Mil and ex
parte affidavits upon the motion for a prelim-
inary injunction pending the final hearing of
the cause, and for reasons then stated a pre-
liminary injunction was awarded. There-
after the defendant filed an answer denying
the agreement as set forth in the bill, and
setting up a similar contract to buy two cer-
tain horses, and alleging that the defendant
bad bought the other hoi-se and refused to
recogni7.e the rights ot the defendant thereto,
and denied the jurisdiction of the oonrt to en-
force specific performance of the contract
The testimony at the trial showed that the
contract was made as claimed by the oom-
plalnant, and not as alleged bf the defend-
ant, and related to the bay mare alone, and
the tender by the complainant of $125, one-
half of the purchase money, and ofTers by the
complainant to perform on his part were also
proved.
For the reasons set forth In the opinioo
heretofore filed when the preliminary Injunc-
tion was awarded, and which it Is not neces-
sary to Tepe&t, it is held that this court has
Jurisdiction to enforce the contract respecting
the mare.
It Is clear, also, that the complainant la en-
titled to a decree declaring his rights respect-
ing the mare under the contract even though
this court has not the light to require per-
formance by the parties of all of the terms of
It, and even though either party may at any
time terminate the contract.
In the case of Satterthwalt v. Marshall. 4
Del. Ch. 337, Marshall, the Inventor of a pab-
mt, and the complainant formed a partner-
ship to use the patent, and the defendant
agreed to assign to the complainant an intei^
est In the patent A bill for specific pof onn-
ance of the partnership agreement and to re-
quire the defendant to assign to the comi^ain-
ant an Interest in the patent was filed, and
Chancellor Bales held the right to the assign-
ment was absolute, and was not dependoit
upon the subsequent contingency of forming
and prosecuting the partnership; that tlM
court had jurisdiction to decree spedflc per-
formance of an agreement for an assignment
of an interest In a patent, because "a suffi-
ciently certain and adequate redress cannot
be afforded by a suit at law"; and that
though the conrt "will not undertake to com-
pel unwilling parties to act in the rtiatioo of
partnere," still "the inability of the oonrt to
compel these parties to become or oontlnne
copartners under the articles is no objection
to a decree for the si)eclfic performance of the
covenant to assign the shares of the patent"
The principles here announced are appli-
cable In full degree to the case under con-
sideration, and justify a decree for the oom-
plalnant at least to such extent as this court
went In the case dted.
It was shewn that both parties believed
that the mare had desirable qualities, and
was capable of development by training Into
a race horse of value, and that its value
present or prospective could not be now fair-
ly fixed because of the xinoertainties In tbe
results of her training.
In this case the court can do no more than
require the defendant to convey to the oom-
plainunt by a Mil of sale an undivided Inter-
est In said mare, declare that It shall be held
by the complainant and defendant as tenants
In common subject to the contract so long ita
It shall remain in force, and enjolnli^ the
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EQUITABLE TKUBT CO. t. KENT
875
defendant from disposing of it during tbe ex-
istence of the contract witboat tbe consent
of his co-owner.
This court cannot require the parties to
continue as partners ; or to continue the con-
tract in force for a d^nite or indefinite peri-
od, or for any longer period than either one
desires. Neither can this court impose any
commands ooncernlng the duties of tbe par-
ties in performing the contract beyond the
declaration of the general terms thereof.
A decree will be entered requiring the de-
fendant to transfer to the complainant an un-
divided Interest in the bay mare to be there-
after owned by tbe complainant and defend-
ant In equal shares, subject to tbe terms of
the contract. Tbe defendant will also be en-
Joined from selling, or otherwise disposing of
tbe mare, so long as tbe contract respecting
ber shall continue in force. Tbe costs will
be put on the defendant.
(U DeL Ch. 834)
EQUITABLE TRUST CO. r. KENT et aL
(CVmrt of Chancery of Delaware. June 27,
1917.)
(SvHabut ly the Court.)
TBxrsra «=»272(2) — Pbincipal and Ikcoke —
Rights of Beneficiabies.
Where a testator gave pecuniary legacies
and tbe rasidae to a trustee in trust for his wid-
ow and son for life, with remainder over and
gave to the executor power to sell real estate,
and the ezecntor sold productive and nnprodnc-
tive real and personal estate, collected income
consisting of rents, interest and dividends, and
paid debts and legacies of the decedent, held, tliat
the life beneficiaries were entitled to have equi-
table income for the first year after the death of
the teatator; that said income was to be ascer-
tained by determining what sum, if it had been
invested from the death of the testator for one
year at the rate of 4% per centum per annum
would with the interest amount to the sum of
money received by the trustee, the larger sum
being principal for the remainderman and the
smaller one income for the life tenant.
Bill by the E>quitable Trust Company, a
OMporatlon, trustee under the will of Llnd-
ley €. Kent, deceased, against Roland O.
Kent and otbnv. In tbe nature of an inter-
pleader, and for instructions. Trustee in-
■tructed.
Bill in tbe natare of a bill of interpleader
and for instructions to a testamentary trus-
tee. Tbe case was beard on bill and answer,
and tbe facts appear in tbe <H>lnion of tbe
Ohanoellor.
Blchard S. Rodney, of Wilmington, for
oon^lalnant Hugh M. Morris, of Wilming-
ton, for life beneficiaries.
THE CHANCHLLOR. Undley O. Kent,
wbo died February 12, 1916, by his will, aft-
er making sundry specific and pecuniary be-
quests (all of which have been paid), dispos-
ed of bis residuary estate in four equal
parts. One part was given to a trustee to
invest tbe same and pay tbe income for tbe
support of a minor son of tbe testator until
he reaches a certain age, on arrival of which
be is entitled to the principal, with a provi-
sion that if be dies before that time tbe
trust estate held for blm is to be divided be-
tween tbe testator's widow and remaining
children, and tbe issue of any child of tbe
testator then dead. Another part was given
to the same trustee to pay tbe Income to tbe
testator's widow for ber life, and at ber
death to divide tbe principal between ber
children then living and tbe issue of deceas-
ed children. Tbe same corporation was ap-
pointed executor and trustee, and tbe testa-
tor authorized his executor to sell and ow-
vey real estate of tbe testator.
On AprU 3, 1917, the executor filed a first
account showing payment of debts and the
sum remaining for distribution as residue
$97,5S6.94, partly in cash and partly in se-
curities. Also that the net Income received
since the death of the testator to tbe date ot
tbe account vras $5,470.59. The trustee being
entitled to two-fourths of tbe residue has le-
ceived from itself as executor $48,793.47, on
account thereof. Of this sum $2,735.30 was
income which had accrued prior to tbe date
of the account, and Included rent, Interest
and dividends. In other words, the trustee
has received as part of the residuary devise
and bequest a sum of money which includes
what Is clearly principal and what is clearly
income when and as received by tbe exec-
utor.
It further appears by tbe account that tbe
executor pursuant to testamentary authority
sold from time to time real estate of the tes-
tator and received $17,325 therefrom, and no
Income was received by the executor thereon.
This stmt was included in the sum of $97,-
586.91, from which the sum of $48,793.47 was
paid to tbe trustee as above stated, so that
of that latter sum $8,662.50, being two-
fourths of $17,325, was proceeds of sale of
real estate. The proceeds of sale of the real
estate was mingled by the executor with tbe
personal estate, and debts and legacies were
paid from tbe general fund. The sum re-
ceived by the trustee was part of this com-
mingled fund. Part of the real estate and
part of tbe personal property have not yet
been converted into money by the executor.
Tbe testator had three children, and they
and his wife sorvlved him and are stUl
living.
A bill bas been filed by tbe trustee, the Bkt-
ultable Trust Company, for instructions, tbe
widow individually and as guardian for tbe
minor son of the testator, and the other two
children of the testator (wbo are adults) be-
ing parties defendant All of the defendantsi
have appeared, and admitted tbe allegations
of the bill.
It appears, therefor, that all the persons
interested both presently and in remainder
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876
101 ATIANTIC REPORTEE
(Del.
are parties, unless Ihe minor son dies before
the age fixed by the will and one or lx>th of
the other children of the testator also die be-
fore that time leaN-lng Issue, whereby the is-
sue (perhaps now unborn) would be substitut-
ed for parents. But in any event those now
Interested, including those with vested re-
mainders in the shares held in trust for the
widow and minor son, are parties, and the
trustee is now entitled to instructions.
The questions which arise and were dis-
cussed at the argument were these: (1) Is
the sum of $2,735.30 received by the trustee
as part of the larger sum, and which repre-
sents tnoome when and as received by the ex-
ecutor, to be treated by the trustee as prin-
cipal or income, and If Income whether all or
part only of It be paid to the beneficiaries
as income? Or, more succinctly, are the life
beneficiaries entitled to the money received
by the executor as Income on the dear resi-
due computed from the time of the death of
the testator as ascertainable by the accounts
of the executor? (2) Is the whole sum re-
ceived by the trustee, which Includes what
was principal at the testator's death and in-
come received thereon since, to be treated as
principal? (3) Are the life beneficiaries enti-
tled to equitable. Instead of actual Income,
that is to say, to have Income sudi sum as at
a fixed rate of Interest would have been pro-
duced had the total fund received been In-
vested at that rate from the death of the
testator?
When by will successive Interests are giv-
en, whether by direct gifts or to trustees for
beneficiaries in succession, the problem as to
the right to the first year's Income arises In
the absence of testamentary intention. When
the gift relates to specific property, real or
personal, the product or Interest therefrom
follows the corpus from the death of the tes-
tator and belongs to the life tenant: provid-
ed, of course, the property Is not needed in a
proper case for the payment of debts of the
decedent Custls v. Potter, 1 Houst. 382, 68
Am. Dec. 422; Klnmouth r. Brlgham, 87
Mass. 270.
Unquestionably the established rule in Del-
aware is that a gift of a residuary estate, or
a part thereof, in trust for the widow or
ciilld of the testator for life, carries income
from the death of the testator, and not from
a year thereafter. The Court of EJrrors and
Appeals, in 1857, In the case of Cnstis v. Pot-
ter's Adm'r, 1 Houst. 382, 68 Am. Dec. 422,
where general pecuniary legacies had l>een
^ven to nephews and nieces of the testator
payable at certain ages, and whldi ages they
attained more than a year after the death
of the testator, decided that the legatees
were not entitled to Interest from the death
of the testator, or until they had attained
the fixed age. The court said a different
rule prevailed when the legatee was a child
of the testator; or was a perscm to whom
the testator stood In loco parentis, and no
ttther provision for it was made. It was
also declared that specific bequests, or be-
quests of the corpus carried their product or
Interest from the testator's death, unless a
testamentary Intention to the contrary be
shown. The court also referred to gifts of
the residue as a further exception to the
general rule that general legacies draw in-
terest from the time they are payable; but It
was an obiter dictum in this case.
In the case of FUnn v. Fllnn, 4 Del. Oh. 44
(1868), a share of the residuary estate was
given to the testator's children to be held by
the executor at five per centum per annum,
and "to be paid to them as they severally ar-
rive at twenty-one years," with limitation
over as to shares of any child who did not at-
tain that age. No other provlsicm was made
in the wUI for the children who were In-
fants. Qiancellor Bates, after stating the es-
tablished rule that legacies to infant chil-
dren carry interest from the death of the tes-
tator and not from a year after, allowed out
of the annual interest on their respective
shares a sum deemed suflldent for the sup-
port of the legatees. Custls t. Potter was
not cited.
Chancellor Nicholson In Baker ▼. Fooks, 8
Del. at. 84, 67 Atl. 969 (1896), dealt with the
case where a sum of money was bequeathed
to a trustee to be invested and the Income
paid to the widow of the testator for life
and at her death to become part <tf the resid-
uary estate of the testator. The trustee
filed a bill for Instructiius, alleging that
he had by authority of the Chancellor tak-
en certain investment securities owned by
the testator at his death and bad received
interest and Income thereon, the amount
thereof varying from year to year. A decree
was made giving to the widow for life inter-
est at six per cent, on the legacy to be com-
puted from the death of the testator, but
there was in the report of the case no opin-
ion, and therefore the reasons do not appear.
In the case of Equitable, etc., Oo. v. Mo-
Curdy (1916) 98 Atl. 220, there was a gift
of part of the residuary estate to a trustee
to Invest and pay the income to the daughter
of the testatrix for life, and the trustee re-
ceived from the executor In payment of ttie
gift Investment securities held by the tes-
tatrix at her death, and also income whlcb
had accrued on these specific securities since
the death of the testatrix. This accrued in-
come was awarded to the life beneficiary.
In Delaware the cases seem to limit the ap-
plication of the rule to the widow or chil-
dren of the donor, or to some one as to whom
he stood in loco parentis, though as stated
In Equitable, etc., Ooi v. McCurdy, the rule
has been elsewhere applied to coses where
the relationship did not exist The prearaat
case was a gift of residue in trust for a
daughter of the testator, so it la not here nee-
essary to extend the rule, though it secius
clearly to go beyond children, or those to
whom the testator stood in loco parentis, and
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Del.)
EQUITABLE TRUST CO. v, KENT
877
applies to all gifts of residue to one tor life
with remainder over. Green v. Green, 30 N.
J. Eq. 451.
When the subject-matter of the gift is resr
idue, or an aliquot part of It, then it must
be determined what share of it belongs to
the life tenant and what to the remainder-
man. The executor who is given a year in
which to settle the estate receives the assets
of the decedent In various forma When
and as received some of the estate is clearly
principal and some clearly income. In gen-
eral all of It, after it comes into Ids hands
is principal. From the moneys so received
he pays debts, administration expenses, pe-
cuniary legacies, if any, and has a balance
which constitutes the residue. He may, or
may not have so kept his account as to be
able to show what part of the sum remaining
was income when and as it came to him. It
Is manifestly impossible to say that the debts
and administration expmses were paid out
«f what was principal and what was in-
cmne, for they were commingled, and equally
'difficult to show whether tbey were paid from
the personalty of the decedent, or from the
proceeds of the sale of the real estate. Even
if the executor has so k^t his account that
he can say what portion of the residuary
balance was income when be received it,
there is always Bome part of the assets of
the testator which did not yield Income. It
is manifestly difficult, therefore, even in the
ordinary case to adjust the rights of the life
tenant and remaindermen by determining
what was actual income, when and as receiv-
ed. There are cases where it is inequitable
or Impossible to follow that principle, viz. :
Where the testator had money Invested in
wasting securities, or in bott(Hnry bonds
where the principal and income are paid as
one sum, and other like cases. There may
be delays beyond the year in conversion of
assets, or for other reasons the executor may
not at the end of the year be able to pay to
the trustee the residuary estate. If there be
found some equitable general rule to give
to the life tenant what Is equitably to be con-
sidered income from the death of the tes-
tator without regard to actual income, it
should be adopted.
In Hill on Trustees, the learned author
says there are four possible solutions, and
that the decisions of very eminent Judges
may be urged in support of each. His classl-
flcations, omitting his citations, are these:
(1) The tenant for life may be entitled to
nothing until the expiration of the twelve
months from the testator's death, the in-
come In the meantime being added to and
forms a part of the capital of the residue.
<2) ^nie beneficiary for life during the first
year after the testator's death will take the
income of such parts of the estate as are
properly invested at the testator's death, or
as may become so invested during that year.
&) The life beneficiary may be entitled to
the income arising from the property in its
existing state during the first year from the
testator's death. (4) The life tenant t»'111
take, not the interest actually arising from
the property during the first year after the
testator's death, but the amount of the inter-
est at three per cent, on such sum as would
have been produced at the end of the year by
the conversion of the property, 1. e. add the
income actually received to the principal re-
ceived, and divide the aggregate by 103, and
so obtain equitable in the place of actual
interest or Income. The last-mentioned so-
lution Is that which according to the learned
author has the greatest authority in its fa-
vor.
It has been held that when it Is shown
what portion of the residue which came to
the trustee was received by the executor as
income and what as principal, then the rights
of the life tenant and remainderman are'
thereby fixed,. the former taking that ■vrtiich
was Income when and as received by the
executor and the remainder was principal
to be held for further income and ultimately
for the remainderman. Lovering v. Minot,
68 Mass. 151, 156; Sargent v. Sargent, 103
Mass. 297; Ayer v. Ayer, 128 Masa 575, 597;
Gushing V. Barrel!, 137 Mass. 25; Green v.
Green, 30 N. J. Eq. 451; Hewitt v. Morris,
1 Turner & RusseU, 241 ; Allhausen v. Whlt-
tell, 4 Eq. 295; Wethered v. Safety, etc., CJo.,
79 Md. 153, 28 AU. 812 (where the couit c<Mt-
sidered that debts of the testator as hav-
ing been paid from capital and not income).
Where it appears that the trustee received
the proceeds of unproductive property an ap-
portionment is made between the life tenant
and remainderman so that the former re-
ceived interest at the usual rate obtained
from trust investments from the death of the
testator. This is done by ascertaining what
sum, if it had been Invested from the death
of the testator at an arbitrarily fixed rate,
to the time of payment to the trustees, would
with Interest amount to the sum so received
by. the trustee, and treat that sum as prin-
cipal to be thereafter held by the trustee for
the benefit of the life tenant and then for the
remainderman, and give the balance to the
life tenant as income. Allhausen v. Whittell,
4 Eq. 295 ; Lawrence v. Llttlefleld, 215 N. Y.
561, 109 N. E. 611 (1915) ; Edwards v. Ed-
wards, 183 Mass. 581, 67 N. E. 658.
The same principle was applied where the
testator had an Interest in a partnership and
the executor received therefrom profits In the
settlement of the partnership affairs. Kin-
mouth V. Brigham, 87 Mass. (5 Allen) 270;
Westcott V. Nickerson, 120 Mass. 410.
The simplest, most practicable and equita-
ble rule is that which Hill on Trustees says
has the weightiest authority, and which is
adopted in Lorlng's Trustees' Handbook at
page 122 (3d Ed.), viz. equitable instead of
actual Income — that is to say, the sum which
the life beneficiary would have received at
the end of a year after the death of the tes-
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878
101 ATIANTIC BEPOaTBB
(Del
tator If the trust fund had been invested at
a certain selected rate of interest from the
death of the testator. To illustrate, If the
fund was $10,000 and the interest rate be
fixed at five per cent, then If that sum be
divided by 105 the result, $9,523.80 will rep-
resent principal and the balance, $476.20 will
represent income for one year. This latter
sum being five per cent, of the former. This
method is the simplest because It is based on
simple terms in the calculation thereof; Is
not dependent on the classifications of the es-
tate by the executor; and disregards the
sources from which the fund is produced. It
is equitable because it Is applicable to produc-
tive and improduetlve assets; Includes pro-
ceeds of real estate as well as personalty;
disregards proportions of productivity of in-
come; includes all kinds of income such as
rents, interest, dividends and accretions:
and, which is highly important, gives to the
life benefldary income for the first year un-
affected by the delays of executors in ad-
ministering the estate of the decedent, or in
paying over and delivering the trust fund.
It would be applicable whether there was,
or was not, an equitable conversion of realty
Into personalty. It should also be applied
In cases where the trustee by authority of
the Court of Chancery takes In specie in pay-
ment of a legacy property of the decedent,
and in this respect the principle adopted with
reB];>ect to the Pennypa(^er will in the case
of £}qultable, etc., Co. v. McCurdy, above cit-
ed, should not be followed.
The rate of Interest should be such as a
trustee by careful, conservative Investment
in suitable trust Investments could reason-
ably realize as Interest or income, and should
not be the legal rate of Interest fixed by law
as between debtor and creditor. Edwards v.
Edwards, 183 Mass. 581, 67 N. B. 858 ; Law-
rence V. Uttlefleld, 215 N. Y. 561, 109 N. E.
611 (1915). In England the rate was In
early times based on the Income from govern-
ment securities, and was about three per
cent In this country and community, and
at this time, a large rate Is so obtained and a
rate of four and one-half per cent Is, In my
opinion, a just and fair rate. When a clear
testamentary intention to the contrary ap-
pears, the rule Is Inapplicable. It is equally
inapplicable, as above stated, to specific gifts
for successive beneficiaries. The rule Is ap-
plicable to a gift to trustees for successive
holders as well as to direct gifts of successive
Interests. Green v. Green, 30 N. J. Eq. 451 ;
Wethered v. Safety, etc., Co., 79 Md. 153,
28 Atl. 812.
This principle will be applied here, even
though in this particular case it Is accurate-
ly ascertainable from the accounts as kept
by the executor of Lindley C. Kent what por-
tion of the trust fund now payable to the
trustee was income when and as received by
the executor.
Applying the rule to the facts here, it ap-
pears that the trustee has received $48,793.47
on account of the residue one-half of whlcb
is $24396.73 is held In trust for the widow
for life and the other half for the son until
he reaches a certain age. By dividing $24,-
396.73 by 1.045, the result $23,346.15 consti-
tutes the principal of the trust estate, wbldi
is hereafter to be held in trust for Rosamond
C. Kent the widow of the testator ; and the
balance, $1,050.58, is income for the flrsft
year from the death of the testator, and Is
payable to said widow. The same applies to
the other sum of $24,396.78 for the benefit of
Lindley C. Kent Jr., the son of the testatM'.
Let a decree lie entered accordingly.
(U D«L Cb. 346)
BUPP V. KLEITZ et aL
(Court of Chancery of Delaware. Jane 80^
1917.)
1. Justices of tbb Pback «=>136(4) — Br-
JOINIRS EXXCUTION— Rkmxdt bt Gebtio-
As the writ of certiorari does not under Rev.
Code 1915, { 4083, effect a stay of proceedings,
such writ does not, where irrefrularities in a
judgment rendered by a justice did not appear
on the face of the record, afford an adequate
remedy at law, preventing a proceeding to en-
join enforcement of the judgment, even though
the irregularities might have been brongbt into
the record bv some auxiliary proceeding.
2. Justices of the Peace «=3i35(4) — Bhf-
JoiNiNQ Execution — Qbounos.
The omission of the return day from a writ
of summons issued by a justice of the peace is
no ground for enjoining the enforcement of the
judgment rendered by the justice, though the
writ was irregular, for the purpose of the writ
of summons is to give notice to the defendant
of the time and place of hearing, and defendant
had such notice; the date being filled in by th«
constable at the time of the service of the writ
3. Justices of the Peace «=9l35(4) — Bsr-
JOININO EXEonxioN— Obounds.
As Rev. Code 1915, S 40O0, allowing a de-
fendant in justice court one adjournment does
not apply to the summary remedy given land-
lords against holding over tenants, and section
4075 merely declares that a justice may grant
an adjournment, the refusal of a justice to grant
defendant in summary proceedings an adjourn-
ment does not warrant the enjoining of hia judg-
ment
4. Justices of the Peace «a>135(4) — Bbv-
joiNiso Execution— Q-BOURDS.
That the constable, after serving one writ
of summons, served another writ specifying a
later return day, does not warrant the enjoining
of a judgment of a justice based on the first writ
upon the ground of confusion or mistake, for
service of the second did not relieve defendant
of the duty to appear according to the com-
mand of the first
Bill by Oirtls G. Bupp against Bernard
Kleitz and others. On rule to show cause
why preliminary injunction should be award-
ed. Rule discharged.
Robert Adair, of WUmingtcHi, for com-
plainant William T. Lynam, of Wilmington,
for defendants.
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D«L)
JOHN W. COONEY CO. y. ARUINaxOH HOTEL 00.
879
TKB CBANOELUXBL The complainant
relies on several informalities to entitle him
to an injunction to restrain further proceed-
ings on the Judgment against him obtained
before the Justice of the peace in the action
bronght by the defendants, Bernard and
George Eleitz, to recover possession as a
holding-over tenant. (1) The writ of sum-
mons when and as Issued by the justice of
the peace did not contain a statement of the
return day thereof, the date and hour, but
not the day of the month being filled In by
the constable at the time of the service
thereof. (2) The justice of the peace refused
to grant an adjournment (m the day and at
the hour fixed by the summons. (3) On the
day following the service of the summons
another summons for the same cause of ac-
tion was served on the complainant, return-
able at a later date than the first summons,
the ccntstable stating that there was an ir-
regularity in the prior writ as the reason for
issuing the later one.
There was no dispute as to the foregoing
facts at the hearing for a preliminary in-
junction. The complainant urged confusion,
sorprlse and legal fraud arising from the
duplication of writs of summons and pro-
ceedings, and that he had a legal defense to
the action In that by a written agreement
between him and the defendants be was enti-
tled to possession as tenant for a term which
had not expired.
It appeared by the bill that two days be-
fore the date fixed In the first summons the
solicitor for the complainant, who appeared
for the complainant at the trial, had receiv-
ed from the attorney for the defendants In
this cause, and who appeared for them at
the trial before the Justice of the peace, no-
tice that he would insist upon trial at the
date and hour fixed in the first summons.
[1] None of the matters above referred to
appear In the record of the justice of the
peace, which is apparently regular in show-
ing jurisdiction of parties and the cause, ap-
pearance of the parties, a jury trial, verdict
and judgment Therefore the alleged Irreg-
ularities, If fatal, are not curable by certio-
rari And even if they could be gotten Into
the record by some aaxiliary proceeding,
still by the statute the Issue of the writ of
certiorari does not effect a stay of proceed-
ings. Revised Code of 1915, i 4063. The
proceeding against the tenant Is statutory
and summary, and no appeal is allowed.
The <H»ly effective remedy available for the
complainant, therefore, is In this court, tf
there be any here.
It is not necessary to consider In this case
a question not discussed, viz. whether or not
this court has jurisdicti<Hi to restrain a pro-
ceeding taken by a landlord against- a hold-
ing-over tenant, for upon the undisputed
facts the complainant Is not entitled to re-
lief if the court has jurisdiction. In Jlurvel
v. Ortlip, 3 Del. Ch. 9, the question of Juris-
diction was raised, but not decided, and in
Olongh V. Cook, 87 Atl. 1017, this court re-
cently enjoined the further prosecution of
such a proceeding because this court had
theretofore taken jurisdiction of the mat-
ter by a bill filed by the tenant against the
landlord to enforce a covenant for renewal
of the lease.
[2] The omission from the writ of the re-
turn day when issued by the Justice of the
peace Is not a suffldcnt ground here to enjoin
the proceedings before the justice of the
peace. However irregular it may have been
in this respect technically (as to which no
opinion is expressed) the purpose of the writ
was to give notice to the party defendant of
the time and place of the hearing, and this
notice the defendant had.
[3] There was no ground for equitable re-
lief based on the refusal to grant an adjourn-
ment. By the statute the justice of the
peace "may" grant an adjournment. Revis-
ed Code of 1915, § 4075. His exercise of dis-
cretion if reviewable at all In this court, Is
not a ground for relief in this case where the
defendant knew that his landlord wonld In-
sist on hearing at the particular time. The
defendant was not entitled to an adjourn-
ment as of course. The provision of the gen-
eral statute (Revised Code of 1915, { 4009)
as to the Jurisdiction and procedure of the
Justice of the peace allowing to the defend-
ant one adjournment does not apply to the
summary remedy given to landlords against
holding-over tenants, the latter being enact-
ed as a separate chapter with different pro-
cedure and with a distinct puri)ose to avoid
all delays of administration.
[4] Neither did the Issuance of the second
summons properly lead to confusion or mis-
take, nor did it relieve the tenant of the duty
to appear according to the command of the
first summons.
In considering all these matters It has
been noted that the complainant had from the
start of the case the benefit of legal advice.
It being clear that no cause was shown
why the preliminary Injunction should b<
awarded, the rule Is discharged, and my
views on the points raised haVe been stated
because of the consequences to the complain-
ant of a denial of Injunctive relief at this
dme^
Let an order be entered accordlhgly.
(U Dal. Ch. 286)
JOHN W. COONEY CO. v. ARLINGTON
HOTEL CO.
(Court of Chancery of Delaware. May 25,
1017. Supplemental Opinion as to Form
of Decree, Aug. 4, 1917.)
1. COBPOBATIONS ^=»502(2) — Stockroldbbs—
Liability— Proceedings to Enfobce.
General Corporation Law (22 Del. Laws, c.
394), § 20, provides that when the assets of a
corporation are insufficient to pay its creditors
and the whole capital stock has not been paid in,
SsaFoT other cases see same topic and KEY-NtlMB^R In all Key-Numbered Digests and Indexes
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880
101 ATLAigriC BEPORTEK
(Dd.
each stockholder shall be bonnd to pay on each
share held by him the sum necessary to com-
plete the amount of the par value of each share,
or such proportion as shall be required to sat-
isfy the debts of the company, and further pro-
Tides that the sum unpaid may be recovered as
provided in section 49, after an execution has
been returned nnsatistied, as provided for In
section 51. Section 21 authorizes the corpora-
tion to obtain subscri-ptions to stock when the
whole capital has not been paid or subscribed,
and section 22 provides for enforcing the pay-
ment of subscriptions by the directors. Section
49 provides that when the stockholders of a cor-
poration are liable to pay the debts oi. the com-
gany, any person to whom they are liable may
ave an action at law against any one or more
of the stockholders, or may have his remedy by
bill in chancery, while section 51 declares that
no suit may be brought against a stockholder
for any debt of the corporation until judgment
be obtained against such corporation and execu-
tion returned unsatisfied. On bill bv a creditor,
a corporation was adjudicated insolvent and a
receiver appointed. Held, that though some of
the provisions for enforcing the liability of
stockholders on unpaid sulMcnptions are applica-
ble to a going concern, nevertheless, a court of
equi^ has jurisdiction, on petition of the re-
ceivers, to estimate the claims against the cor-
poration, and provide for an assessment against
tiiose stockholders who had not paid for their
■hares or whose subscriptions were unpaid.
% oobfoblitions «=>562(1)— stockholders—
Debts.
The contingent liability of stodcholders for
the debts of the corporation In the amount to
which they are indebted for their shares is an
equitable aaset which vests in the receivers, or at
least is enforceable by such receivers for the ben-
efit of all creditors who come into the case.
8. COBPORATIONB <S=>562(1) — CaPITAI/— DEBT.
Independent of statute, the unpaid capital
doe from stockholders is a part of the assets of
the corporation, and so belongs to it and not to
the creditors.
4. RECEiysBS «=>210— AuTHowTr.
Under Act Gen. Assem. March 19, 1913 (27
DeL Laws, c. 194; Rev. Code 1915, { 3884), in
effect making a receiver a quasi assignee, a Del-
aware receiver of a corporation may maintain
without the territorial limits of the jurisdiction
■uit to enforce an assessment against share-
holders.
6. COBPOBATIOnS «s»606(2) — Reokitebs —
Cbeditobb.
Where a receiver of an insolvent corpora-
tion proceeds to enforce the liability of stock-
holders indebted for their shares, a creditor may
have his claim paid from the unpaid balance,
even though he has not obtained a judgment
against the corporation on which execution was
returned unsatisfied ; the jprovisions in Gen-
eral Corporation Law, K 49, 51, providing for
■uit by a creditor in such contingency, not ap-
plying to a proceeding by the receiver.
& GOBFORATIONS «=»228— Stockhou>ess— Iil>
ABIUTY.
Corporate stock issued and outstanding and
not paid for is a fund for the benefit of credi-
tors, and, in general, all who hold stock not paid
for are liable to creditors for the amount so un-
paid.
7. COBPOBATIORB 4=>229 — GONTBACTB— StTB-
BC&IFTION CONTEACTS.
A Delaware corporation cannot make a sub-
aeription contract which will free the subscrib-
er from the liability to pay for his shares impos-
ed by the General Corporation Law on stockhold-
ers for benefit of creditors ; the principle being
that shares of stock in a corporation are a sut^
stitute for the personal liability of partners.
8. COBFOKATIONS $=9243(1) — Stockholdbbs—
LlABlXITT.
Those acquiring corporate stock without •
formal subscription take it subject to the stat-
utory liability to make payment in full U
necessary for the benefit of creditors.
9. CoRPOBAnoRB 4=»243(1)— Stockhou>ebb-
Cbeditobs.
As to creditors, there is no difference between
the liability of holders of stock and subscrib-
ers to stock to pay the par value of shares if
necessary for payment of corporate debts.
10. Cokpobations «=»99(2) — Stock — Pat-
MENT— "Work Done."
Under General (Corporation Law, { 14, and
C!onst. art 9, { 3, providing for the issuance
of corporate stock for "work done," the ex-
pression does not include promotion services per-
formed before incorporation, and when the in-
terest of creditors is affected, it should not in-
clude prospective labor or work already doue
and labor to be done.
11. Cobpobations «=>232(3) — Stock — lasD*
ANCE.
While under General (Corporation Lew, { 14,
and Const, art. 9, { 3, allowing corporate stock
to be issued for work done, the judgment of di-
rectors as to the value of such services is con-
clu:9ive in the absence of fraud, an issue of near-
ly $3,000,000 worth of common stodc in a cor-
poration for promotion services and services
rendered in disposing of preferred atoek is
fraudulent, and may be attacked by stockholden;
there being no atbmifit even to show that the
services were of a value corresponding to ths
stock issued.
12. Cobpobationb S=>244(7) — Stockholdbbs
— Shakes.
Where the directors for incorporation serv-
ices and services to be performed issued corpo-
rate stock of a value greatiy in excess of the
value of such services, an innocent purchaser for
value who took the shares is exempt from lia-
bility to pay any part of their par value-
13. CORPOBATIONB «=>243(6) — Tbostb — VOT-
INO Trusts.
Common stock given aa a b<mtu to purchas-
ers of preferred stock was deposited in a voting
trust, the purchasers taking trust certificates,
and the trustees holding the legal titie to the
stock for the purpose of voting it. Held, that
persons to whom voting trust certificates were
issued were the beneficial owners of the stock,
and were liable to corporate creditora for the
amount unpaid thereon, even though (he legal ti-
tie was in trustees.
14. Cobpobations €=9243(0) — Stookholdebs
— LlABIUTr.
In such case, all purchasers of the preferred
stock who received voting trust certificates for
common stock took them as a bonus, there beinf
no intention on the part of the c(Ri>oratioo that
payment should be made, and hence, notwith-
standing the recitals in the certificates of com-
mon stock that they were fully paid, they were
charged with notice of nonpayment, and were
l>ound to respond if necessary to protect cor-
porate creditors to amounts unpaid on the com-
mon stock.
15. Cobpobations #=s>232(2) — AoBEEJcsKTa^
Stock.
An agreement between a corporation and its
■tockholders that corporate stock should be
issued otherwise than for money paid or the
statutory equivalent is void; hence an Sfrw
ment that common stock should be issued as a
bonus to purchasers of preferred stock a in-
valid.
16. corpobatiqnb «=»262(2) — stookholons
— Peefebbed Shabeholdebs.
Purchasers of the preferred stock of a cor-
poration who received common stock as a bonus
«ss»For oOier cases see same tonic and KBY-NUMBBR la all Ker-Numbered DIgeiU and Indexes
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JOHN W. COONKY CO. ▼. AEIilNOTON HOTEL CXJ.
88]
cannot escape liabilit; for amonnts unpaid on
their preferred shares on the ground that such
shares could not have been lawfully issued under
General Corporation Law, { 13, declaring that
at no time shall the total amoont of the pre-
ferred stock exceed two-thirds of the actual
capital paid in cash or property, for when they
acquired the preferred stock, knowing that the
common stock was issued as a bonus, they must
have known that the only source from which
the corporation could obtain capital was from
the preferred stock, while creditors might not
bave known that fact.
17. CoBPORATiONs €=»262(2) — Stockholdkbs
— Pbefebbed Shareholders.
In such case, purchasers of preferred stock
who received voting trust certificates for com-
mon stock issued as a bonus are in the same
position as purchasers who received the actual
shares, for they were put on Inquiry, and an in-
quiry would have shown that all of the com-
mon stock was ordered issued for promotion
services, etc., and bonus purposes at the first
meeting of the directors and the voting trust was
then arranged.
18. CoRPORATiONB «=>262(2>— Stock— Pbefer-
jtxD Stock.
Where a corporation had power to issue pre-
ferred stock, but exercised such power inef-
fectually or informally, stockholders taking the
stock are, as against creditors, estopped from
urging the invalidity of the issue to escape pay-
ment.
19. CORFOBATIONS «=3243(4)— STOCK— Pbefbb-
BED Stock.
The provision of General Corporation Law,
I 13, that in no event shall a holder of prefer-
red stock be personally liable for the debts of
the corporation does not exempt holders of pre-
ferred stock from calls or assessments up to the
par value for creditors, but merely exempts
them from liability beyond that imposed by
section 20.
20. CoRFORATioNB «=>262(2)— Stock— Pbkkeb-
BED Stock— "Cafitai,."
Though General Corporation Law, S 13, de-
clares that at no time shall the total amount of
preferred stock exceed two-thirds of the actual
capital paid in cash or property, and the word
"capital as distinguished from capital stock
means the property of the corporation, holdera
of preferred stock cannot defeat the issue on
the ground that the only corporate assets were
those derived from the sale of the preferred
shares for the amount of capital paid in cash
or property fluctuates, and creditors who are
entitled to look to the amounts unpaid oa the
corporate stock for their protection cannot be
required to determine whether the statutory pro-
portion v;as preserved when the preferred stock
via.B issued.
[Ed. Note. — For other definitions, see Words
and Phrases, E^rst and Second Series, CapitaL]
21. CoBPOBAnoRS 4S9228 — 8tockhoi.debs —
LlABIUTY.
In case of insolvency of a corporation, all
the moneys due from stockholders who have not
paid for their stock constitute a trust fund for
creditors, and there is no difference between the
preferred stockholders and common stockholders.
22. OoBPORATioNB «=3243(6) — Stockholdebs
— LlABIUTT.
Though creditors of a corporation knew at
the time of extending credit that its common
stock was issued as a bonus, holders of such com-
mon stock may be required to pay the par value
thereof for the benefit of such creditors.
23. Cobpobatiokb 9=3249(1) — Stookholdebs
— Riobts as Cbsditobs.
Stockholders liable to assessment for
amounts unpaid on their shares, who are also
creditors, cannot set off the amount which they
will be assessed against the debts due them, but
must pay their assessment and share in the
fund when realized.
24. OoBPOBATiONS *=»B64 — Stookholdebs —
Obeditobs.
Stockholders who took stock with notice
of irregiilarities in the issue thereof and who
extended credit to a corporation are not, because
of their knowledge, estopped from participating
as creditors after they have paid the assess-
ment levied for amounts due on their shares.
25. Corporations e=>562(2)— Stock— Assebs-
UENTS.
That a corporation itself made a call on
stockholders to pay the amounts due on shares
subscribed for does not, after insolvency, prevent
the court from making a call or assessment for
the protection of creditors.
26. Cobporationb (3=3562(2) — Stockholdebs
— Liabiuty — Abbesbmentb.
Where a corporate receiver had been appoint-
ed and an assessment against the stockholders
who had not fully paid for their shares was nec-
essary, such assessment should not be levied
against a stockholder who had been adjudicated
a bankrupt, but in the absence of evidence no
stockholders will be excluded on the ground of
financial irresponsibility.
27. Cobporationb «=9562(2) — Stockholdebs
— Assessments.
Where the stockholders of a corporation were
delinquent in paying for tJieir shares and on in-
solvency an assessment waa necessary, the whole
assessment may be made against delinquent
stockholders within the jurisdiction of the state
wherein the corporation was organized and the
receiver appointed, such stockholders having
paid being entitled to enforce contributions from
other stocliholders, and for that purpose to use
the decree m^ing the assessment.
28. Cobpobationb «=3662(2) — Inbolvewot—
Abbebsuknt aoainbt Stockholders.
Where receivers of an insolvent corporation
petitioned that its debts be estimated and an
assessment levied against stockholders who had
not fully paid for their shares, the defense of
limitations on the ground of a previous call for
payment by corporate directors will not be dis-
posed of, being one which can be raised by in-
dividual stockholders when suit is brought to
enforce their liability.
29. CORFOBATIONB 9=»273— Gbeditobs— Irteb-
EST.
While ordinarily creditors of an insolvent
corporation whose a&sets are being administered
by a receiver are not allowed interest beyond
the date of the appointment except on liens
which bear interest, creditors of a corporation
are, where the amounts due from shareholders
on unpaid shares exceed the amount of the
claims, entitled to have interest calculated on
their daims.
30. CoKPORATioKS €=>562(2) — Stockholdebs
— Absebsments.
Where a corporation is adjudicated Insolvent,
and the receivers appointed petition that the
liabilities be estimated and an assessment levied
against those shareholders who have not paid
the par value of their shares su£Scient to satisfy
the corporate debts and costs of receivership,
etc., the stockholders, though not parties, are so
far an integral part of the corporation that
they are deemed privy to the proceedings, and
for that reason cannot question the propriety
of the assessment when made, though it de-
pends in part on estimates.
31. CORPOBATIONB «=s»562(2)— Pboceedirgs —
Assessment.
In a proceeding on petition of receivers to
levy an assessment against those shareholders
4t=9For other cases see same topie and KEY-NUMBER In all Key-Numbered Digest* and Indexes
101 A.-66
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882
101 ATIiANTIC BEPORTEB
(Dd.
who had not fully paid for their shares, proof
that the corporate books show one to be the
owner of specified shares and to be indebted
therefor makes out a prima facie case on which
the court will fix the liability to be imposed on
each share of stock, so that the receivers can
test by suit the status of persons supposed to be
stockholders and their liability for tae amount
assessed against them.
32. Corporations <S=.562(2) — Stockuoujeks
— LiABiuTT — Questions fob Detebuima-
TION.
Jn a proceeding by receivers to levy an as-
sessment against those stockholders who had
not fully paid for their shares, contentions that
a particular shareholder was excused from
liability because of notations made on his sub-
scription, or because of a release by the board
of directors, or because of the bar of limitations
are personal defenses which will only be dis-
posed of in a direct proceeding against the
shareholder.
83. COBPOBATIONS <3=>562(2) — STOCKHOLDERS
— Liability — Questions foe Detekmina-
TION.
In a proceeding by corporate receivers to
levy an assessment against shareholders who
had not paid for their shares, the court will not
pass on the defense of one appearing on the
books to be a shareholder, and who was a direc-
tor, which was to the effect that a certificate
made out in his name, but assigned, bad been
exhibited to him to qualify him for a director,
and that he had never held the shares appearing
in his name which were marked fully paid, but
will, for purposes of the assessment, treat him
aa a shareholder.
84. cobpobationb «=»273 — btockholders—
Assessments.
Where onlv one stockholder was a resident
of the state wherein the corporation was or-
ganized and a receiver appointed, and not only
was he financially reanonsible, but the amount
due from him on his unpaid shares was sufii-
cient to discharge all obligations, the receivers,
it no other way proves feasible, may, the pro-
ceeding being one for the benefit of creditors,
b« authorized, in a proceeding to levy an assess-
ment against stockholders on their unpaid shares,
to collect the entire amount necessary from the
resident stockholder, such stockholder to be
subrogated to the rights of receivers and cre<U-
tors against other stockboldprs whose liability
would be fixed by the proceeding.
Sopplemental Opinion as to Form of Decree.
85. OORPORATIONB 9=>562(2) — Stookholdess
— IvIABIUTT.
Where receivers of an insolvent corporation
petitioned for the levy of an assessment against
shareholders who had not fully paid for their
shares, those stockholders who had made pay-
ments on their stock in excess of their proportion
of the amount necessary to be levied should be
excluded, and those stockholders who had made
payments on account of their shares should be
given credit therefor; some of the stockholders
having paid nothing.
Bill by tbe Jobn W. Cooney Company
against the Arlington Hotel Company, In
which receivers were appointed. On petition
of receivers, creditors of the defendant com-
pany were notified to flle their claims, notice
was given to all persmns, including stockliold-
urs, of their right to except, and an usscss-
uieut was levied agnlu.«t delluquout stock-
holders.
Statement of tbe Case.
The matter under consideration is the pe-
tition of receivers of an insolvent Delaware
corporation for authority to collect from
stockholders of the company the money not
paid on their shares of stock In order that
the receivers may pay the debts of the com-
pany remaining unpaid after applying there-
to the assets of the company which have
come Into their hands.
On October 28, 191-1, a blU was filed In this
court against the defendant, the Arlington
Hotel Company, by John W. Cooney Com-
pany for Itself and on behalf of all other
creditors of the company for the appoint-
ment of a receiver, and therein the complain-
ant alleged that as a creditor It had obtained
a Judgment against the defendant company;
that an execution thereon had been returned
nulla bona ; that the defendant company was
Insolvent; and that the assets of the de-
fendant company consist for the most part
of unpaid subscriptions to Its capital stock.
A receiver was prayed for. Later a decree
pro confesso was entered, and the defendant
was adjudged to be Insolvent, and receivers
were appointed to wind up Its affairs.
Afterwards this present proceeding was In-
stituted by petition of the receivers, setting
forth matters whldi are of record In the
cause, viz. : That creditors of the defendant
company had been notified to file their claims
and notice given to all persons Interested,
Including stockholders, of their right to ex-
cept to any claims so filed, and that claims
of creditors filed and allowed aggregated
$466,7.39.42. A list, or schedule, of holders
of outstanding stock, preferred and common,
was annexed with the dates and history of
the Issue of the shares, and It was alleged
that no payments had been made thereon ex-
cept as specifically stated in the schedule;
and further, that no call had been made fbr
the payment of the subscriptions. And fur-
ther, that T. Coleman du Pont also called
Coleman du Pont, one of the stockholders on
the list was the only stockholder who rs-
slded In Delaware. The cost of the receiver
ship and expenses of collecting from the
stockholders their stock unpaid for was esti-
mated at $100,000.00.
The prayer of the petition was that the
court levy an assessment requiring paymoit
by stockholders of such amounts aa may be
found necessary to pay the debts of the com-
pany and the expenses, with leave to bring
actions to recover the assessments.
On this petition an order was made re-
quiring the stodcholders named in the sdied-
ule to appear and show cause, and for notice
to them by registered letter. Proof was
made of the sending of the notices, and ae-
knowledgnients of the receipt thereof by near-
ly all of the addressees.
Several of the stockholders have appeared
to the petition, viz.: Murray A. Cobb, ap-
»Kor oib«r cum im mid* topic aixl KBY-NUMBBR In all K*]r-Numb«r«d DtfMU and Indus*
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JOHN W. COONKY CO. v. ARLINGTOK HOTEL C».
883
parently the bolder of ten sbares of common
stock, wherein he denied being a stockholder
and denying liability. Z. D. Blacklstone,
stated In the schedule to be the holder of
preferred stock and no common stock, or
voting trust certificates, who among other
things denied the power and right of the com-
pany to Issue any preferred sto<^, because
no actual capital had been paid to the com-
pany In cash or property. Albert L. Stavely,
stated in the schedule to be the bolder of
preferred stock and also the holder of a cer-
tificate under the yotlng trust, and who had
paid In full for his preferred stock. He ad-
mits that he subscribed and paid tor sliares
of preferred stock, but never bad any com-
mon stock or any voting trust certificates.
William H. Fenn, stated in the schedule to
be the bidder of common stock. T. Ooleman
du Pont, stated in the schedule to be the
bolder of both preferred and common stock.
Subsequently a hearing was bad upon the
petition and the answers thereto, and testi-
mony of witnesses was heard orally by the
Chancellor and exhibits and records intro-
duced in evidence.
So far as pertinent to the matters now de-
cided, it appeared that the company was
created pursuant to a certificate of incorpo-
ration recorded January 28, 1911, under the
General Corporation Law of Delaware. By
it the authorized capital was fixed at $5,500,-
000.00, divided into fifty-five thousand sbares
of par value of one hundred dollars, of
which twenty-five thousand shares were to
be preferred stock and thirty thousand
sbares to be common stock, with the follow-
ing statement : "The common stock shall be
nonassessable, full paid." The three Incor-
porators subscribed for shares aggregating
one hundred. On January 28, 1911, the In-
cori)orators met, organized, adopted by-laws,
elected directors and took other formal or-
ganization steps, but no- other business was
transacted.
On February 28, 1911, the first meeOng of
the directors was held, at which five of the
nine persons who had been elected directors
were present: Coleman du Pont, Frank M.
Andrews, George Howard, Murray Cobb and
Frederick E. Chapln, and officers were elect-
ed. The following resolution was adopted at
tliat meeting:
"Upon motion duly made and seconded, and by
the affirmative vote of aU present, the following
resolution was adopted:
" 'Resolved, that as the success of the enterprise
will depend largely upon the energy, ability, and
integrity of George Howard, Frank M. Andrews
and James F. J. Archibald in securing options
on the property, promoting, financing and manag-
ing the same, and inasmuch as it is desired to
offer additional inducements to snbscribers of
the preferred stock and to remucerate the said
George Howard, Frank M. Andrews and James
P. .T. Archibald for services rendered and to be
rendered by them, and by others, therefore shall
it be, and hereby is, assigned and transferred to
the aforesaid persons the entire issiic of the com-
raon stock, to be used by them for the purposes
named, with the distinct uiderstanding that tlie
holders of the common stock shall agree to trans-
fer the same to a voting trust consisting of the
aforesaid persons, and to receive in lien thereof
trustee certificates, for the purpose of vesting in
them the right to vote thereon for a period of
five years from the date of the Incorporation,
such voting trust being created for the purpose
of carrying out the purposes aforesaid and the
articles of incorporation uninterruptedly during
that period.' "
Afterwards printed subscription blanks
were used to obtain subscriptions to prefer-
red stock. Sbares of nil of the common stock
were Issued, and the plan for a voting trust
as to the common stock was carried out.
Pursuant to the plan of distributing com-
mon stock to subscribers to preferred stock,
authorized by the directors at their first meet-
ing on February 28, 1911. Howard and An-
drews, having in their names as trustees nine-
teen thousand, eight hundred shares of com-
mon stock, made two agreements with the
company in the form of declarations of trust,
one of December 12, 1911, and the other of
September 25, 1911, by which the shares to
be so issued as nonassessable and fuU paid
should be held by them as trustees for those
to whom the bonus stock was given, tbe trus-
tees to have a right to vote the sbares for a
period of years, and to issue to the benefi-
ciaries certificates called "Voting Trust Cer-
tificates" representing the several holdings of
common stock. These beneficiaries could
transfer the certificates, and the trustees
undertook to keep books to register these
certificates. The forms of these trust agree-
ments are substantially the same and differ
as to the time for which they were to run.
Accordingly Howard and Andrews issued
under the first of these trust agreements
seventeen voting trust certificates, and un-
der tbe second agreement twenty such certif-
icates, aggregating three thousand, seven hun-
dred and forty-seven and one-half shares, by
the agreement with the company these re-
maining shares for wUch voting trust cer-
tificates were not issued are the property of
Howard and Andrews as holders of common
stock not paid for.
Some of the subscribers to tbe preferred
stock being in default, the directors on July
T, 1913, made a call for payment of all unpaid
subscriptions. Subsequently the enterprise
failed, almost all of the property of the com-
pany was sold by lien creditors, and receivers
appointed in the District of Colnmbhi realized
on some assets and paid creditors in part. A
bill was then filed in this court, as stated
above. The other pertinent facts are stated
in the opinion of the Chancellor.
The Important provisions of the Constitu-
tion and statute referred to in the opinion are
these:
Section 3 of article 9 of the Constitution
is, as follows:
"No corporation shall issue stock, except for
money paid, labor done or personal property, or
real estate or leases thereof actually acquired
by such corporation."
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884
101 ATLANTIC EEPORTEE
(Dd.
Section 13 of chapter 65 of the Revised
Code of 1915, paragraph 1927, authorizes the
creation of classes of stock, and then provides,
as follows:
"• * ♦ But at no time shall the total
amount of the preferred stock exceed two-thirds
of the actual capital paid in cash or property."
Sections 20, 49 and 51 of chapter 65 of the
Rorlsed Code of 1915, paragraphs 1034. 1903,
and 1965 are, as follows:
"See. 20. StorJcholdcra LiaUliti( for Part Paid
for Stocfe.— When the whole capital stock of a
corporation shall not have been paid in, and the
assets shall be insufficient to satisfy the claims
of its creditors, each stockholder shall be bound
to pay on each share held by him the sum neces-
sary to complete the amount of the par vaUie of
such share as fixed by the charter of the com-
pany or its certificate of incorporation, or such
proportion of that sum as shall be required to
satisfy the debts of the company, which said sum
or proportion thereof may be recovered as pro-
vided for in section 49 of this chapter, after a
writ of execution against the corporation has
been retnmed unsatisfied, as provided for in seC"
tion 51 of this chapter."
"Sec. 49. Liahility of Offioert, etc.; Action*
for. — When the officers, directors or stockhold-
ers of any corporation organized under this chap-
ter shall be liable by the provisions of this chap-
ter to pay the debts of the corporation, or any
part thereof, any person to whom they are lia-
ble may have an action on the case against any
one or more of them, and the declaration shall
state the claim against the corporation, and the
(round on which the plaintiff expects to charge
the defendants personally; or the person to
whom they are liable may have bis remedy by
bill in chancery."
"Sec. 51. Xo Suit oi/aitut Director or Stock'
holder Until Judgment against Corporation.— Ho
suit shall be brought against any director or
stockholder for any debt of a corporation or-
ganized as aforesaid, of which he is such direc-
tor or stockholder, until judgment be obtained
therefor against such corporation and execution
thereon returned unsatisfied."
John R. Nicbolsvn, of Wilmington, and H.
H. (Jlassle, of Washington, D. C, for re-
ceivers. Andrew O. Gray, of Wilmington, and
H. Preston Gatley, of Washington, D. C,
for Albert h. Stavely. Hugh M. Morris, of
Wilmington, and Hugh H. O'Bear, of Wash-
ington, V. C, for Z. D. Blackistone. Robert
H. Richards, of WUmington, for William H.
Fenn. Thomas F. Bayard, of Wilmington,
and Samuel E. Swayze, of Washington, D. C,
for Murray A. Cobb. William S. HlUes and
Robert H. Richards, both of WUmington, for
T. Coleman du Pont
THE CHANCELLOR. The Arlington Hotel
Company has' been adjudged by this court to
be insolvent, receivers have been appointed
for it, the creditors of the company have
proved In this court their claims, and they
have been allowed, all the stockholders hav-
ing had notice of the filing of the claims and
been given an opportunity to contest them
by exceptions to be taken thereto. It appears
as a fact proven in the case that the aggre-
gate of the debts and the estimated cost of
administration of the receivership, including
the cost of litigation with stockholders to re-
cover from them moneys due and unpaid on
shares of stock held by them, exceeds the
amounts claimed to be due upon the shares
of preferred stock, and Is less than the
amount claimed to be unpaid upon the shares
of common stock, and is, of course, less than
the amount claimed to be unpaid on shares of
preferred and common stock taken together.
By their petition representing, among other
things, these facts and the names of holders
of the two classes of stocli, as they appear on
the books of the company, the receivers ask
the court to authorize .an assessment on
shareholders of both classes for the payment
of the creditors. Of this petition notice was
I given to ail stockholders and some have ap-
peared and filed answers, and the rest have
done neither.
[1] The first question to be considered la
the one raised as to the Jurisdiction of the
court respecting the proceeding against the
shareholders. It is contended for the share-
holders, that even assuming that there is an
unpaid balance due from them on their stock
up to the par value thereof (which is- denied),
their liability Is to the creditors and not to
the company, or its receiver; and that It
cannot be enforced by the receivers at all;
and if at all, then in no other way than by
the method of procedure prescribed l>y the
statute which imposed the liability, though
counsel are not more specific as to the method
of procedure.
In general the Delaware Incorporation Act
authorizes the corporation to obtain subscrip-
tions to stock when the whole capital stock
has not been subscribed (section 21); and
provides to the directors remedies for en-
forcing i)aymeut of the subscriptions (sectioa
22). These sections are applicable to a cor-
poration while It is a going concern and seem
to have no bearing on the questions here
raised.
Wlien the assets of the corporation are In-
sufficient to pay its creditors, and the whole
capital stock of the company has not been
paid in, then by section 20 it is declared that
each stockholder shall be bound to pay on
each share held by him the sum necessaiT
to complete the amount of the par value of
such share, or such proportion of that sum as
shall be required to satisfy the debts of the
company. It is not declared in the act to
whom this liability Is due, and certainly It is
not declared that the liability is to creditors
only to the exclusion of the corporation, or to
a receiver therefor appointed either before
or after dissolution to wind up Its affairs.
This section goes on to provide that the sum
unpaid on the stock, or the proportion there-
of, required to satisfy the debts of the com-
pany, may be recovered as provided in sec-
tion 49 after an execution against the com-
pany has been returned unsatisfied, as pro-
vided for in section 51. By section 49 when
the stockholders of a corporation are liable
under the act to pay the debts of the com-
pany, any person to whom they are liable
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JOHN W. COONEY CO. v. ARLINGTON HOTEL CO.
885
may hare an action at law against any one
or more of the stockholders, oi* "may have
his remedy by bill In chancery." By section
51 no suit may be brought against a stock-
holder for any debt of the company "until
judgment be obtained therefor against such
corporation and execution thereon returned
unsatisfied."
There are other sections in the act which
relate to the powers and duties of recelrers,
or trustees, of corporations, and the method
of winding up the affairs of 'the company, in-
cluding the filing and allowance of claims of
creditors and distribution of moneys of the
company by the receivers. But these have
generally been considered to refer not to the
receivers appointed by the court on the
ground of insolvency, or for any other rea-
son than the dissolution of the company, re-
ceivers after dissolution being substituted for
directors, who upon dissolution become trus-
tees to wind up the affairs of the company.
These provisions are unimportant in this
case. In order to ensure uniformity of pro-
cedure in the administrative details in liqui-
dations it Is enacted In the rules of the Court
of Chancery, adopted pursuant, as is believ-
ed, to legislative authority, the rules are
made applicable to all receivers of corpora-
tions whether dissolved or not.
Y?hen a corporation becomes insolvent the
liability of stockholder to pay for his stodc
Is either fixed by sectlOTi 20, or that section
states a liability existing independent of the
statute, and it is not now necessary to de-
clare whether they are substantially the
same, or what the differences between them
are If they are not the same. Obviously the
purpose, and the only purpose, of these re-
quirements of the statute is to furnish proof
that the debt is due and that the company is
insolvent, as the basis of further proceedings
against stockholders. A choice of remedies is
given to such a creditor ; he may either sue
a stockholder at law, or may have a remedy
by bill in chancery. If he elects to proceed
in chancery, he probably would file his bill
against one or more of the stockholders,
either separately or jointly, and might be
given relief in that way, though such a pro-
ceeding would be entirely novel in Delaware
and would be a distinct and undesirable de-
imrture in this court, for it would be using an
equity court to enforce the payment of a debt
—a thing which could be done as well, if not
better, in a court of law. A creditor of a
company who has obtained a judgment
against it, and whose execution has been re-
turned unsatisfied, may also file a bill
against the corporation alone, obtain therein
a decree appointing receivers, and in that
cause have the claims of all creditors of the
company ascertained and allowed, and their
priorities and preferences determined. After
the assets of the company have been collected
the deficiency of assets to meet the ascer-
tained liabilities is established. The receiv-
ers may then on behalf of the complainant
creditor, and of all other creditors who may
come in by proving their claims in the cause,
Including creditors who have not theretofore
obtained, or do not thereafter obtain a judg-
ment against the corporation for the claims
due them from the company, proceed to re-
cover from one or more delinquent stock-
holders, or all of them the sum or sums un-
paid on their stock, or whatever part thereof
it is necessary to collect In Order to pay the
claims of all of the creditors. As a step in
such proceeding the court is asked to author-
ize or direct a levy, call or assessment on the
stockholders, and for this purpose to ascer-
tain who the stockholders are, the number of
shares held by them, and whether by the
records of the company the stock is paid for
and the pro rata sum which each should pay
to make up the deficiency of assets, and some
other matters which will be considered here-
inafter. Having fixed these preliminary fea-
tures, the receivers may be authorized to
collect by separate suits at law against the
stockholders wherever they are, or their
property is found, the amounts due from
them, and In such suits the individual de-
fenses of each stockholder are available to
them.
In this particular case It is not necessary
to decide whether the liability of delinquent
stockholders of this comi>any for their iin-
pald subscriptions to capital stock can be en-
forced through a receiver only after a judg-
ment has been recovered against the corpora-
tion and an execution thereon returned un-
satisfied, for the complainant is a creditor
of the company, has obtained sudi judgment
and an execution thereon has been returned
unsatisfied.
The conclusions as stated above are not In
confiict with either the letter or spirit of the
statute, and on the contrary are clearly in
accord with the spirit thereof. That they are
based on the peculiar functions and powers of
a Court of Chancery is too obvious to need
enlargement. But as the question of Juris-
diction is here raised for the first time, the
reasons may be amplified.
Clearly section Ii9 provides alternative
remedies of either a direct action at law
by a creditor against a stockholder, or a rem-
edy by bill in chancery, for that is the ex-
press language of the section. There is,
moreover, a good reason for providing alter-
native remedies. A direct action may not be
only an efficient but a just remedy, as, for in-
stance, if but one stockholder was delinquent
in paying for his stock and there be but one
creditor of the company whose debt was un-
paid. In that case only the two persons
would be Interested, and there would be no
need to adjust liabilities among several in
proportion to the number of shares held, or
other equities between several classes of de-
linquent stockholders. On the other hand,
if there are several creditors and several
stockholders, the adjustment of benefits and
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101 ATI<ANTIG REPORTER
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liabilities between them Is properly cogni-
zable In a Court of Chancery, which has suit-
able machinery to bring before it all parties
interested on both sides of, or having an in-
terest in the cause, and secure to each his
advantage and Justly apportion his liability
to pay.
There is no requirement that the remedy
of the creditor by bill shall be directly
against the stockholders, for it Is not pre-
scribed against whom or even by whom it be
filed. The language of the act Is broad and
general enough to include a bill for the ap-
pointment of a receiver of a corporation
wherein its insolvency is adjudicated. Ob-
▼loasly it is the suitable court adapted to de-
termine Insolvency of the ccmipany, collect
its assets, ascertain and adjudicate the claims
against it and the priorities thereof, as repre-
senting both creditors and stockholders ; and
having power to conclude both stockholders
and creditors in such an adjudication the
court can finally and conclusively determine
the amount needed from all the stockholders
and the proportionate part thereof which
each must pay, and so fix the liability of
stockholders without as well as of those
within the Jurisdiction by a rule uniform as
toaU.
[2, 3] Furthermore, this contingent liabil-
ity of stockholders for debts of the company
is an equitable asset which vests in the re-
ceivers, or at least is enforcible by such re-
ceivers for the benefit of all creditors of the
company who come into the cause. Besides,
independent of the statute, the unpaid cap-
ital due from stockholders always was and
la a part of the assets of the company, and so
belongs to the company and not to the cred-
itors. In Sanger v. Upton, 91 U. S. 66, 61, 23
I* Ed. 220, the court said :
"Unpaid stock is as much a part of this
pledge, and as much part of the assets of the
company, as the cash which has been paid in
upon It. Creditors have the same right to look
to it as to anything else, and the same right
to insist upon its payment as upon the payment
of any other debt due to the company. As
regards creditors, there Is no distinction as be-
tween such a demand and any other asset which
form a part of the property and effects of the
corporation."
Judge Bradford in Irvine v. Elliott (D. O.)
203 Fed. 82, 104, pointed out the diffo^nce
in this regard between the statutory double
liability of stockholders and the liability for
unpaid subscriptions to stock.
(4] Furthermore, this liability is more ef-
fectively enforced through a receiver, for a
Delaware receiver may now sue anywhere
to mforce an assessment when made. This
is surely a consequence of the act of 1013
(27 Del. Laws, p. 479; Revised Code, par.
38S4), which in effect makes a receiver a qua-
si assignee and so removes the limitation of
an ordinary receiver to the territorial limits
of the Jurisdiction wherein he was appointed.
Bemheimer v. Converse, 206 U. S. 516, 531,
534, 27 Sup. Ct 755, 51 I* Ed. 1163, followed
by Converse v. Hamilton, 224 U. S. 243, 82-
Sup. Ct 415, 56 I/. Ed. 749, Ann. Cas. 1913D.
1292.
Not <mly is the present method of giving to-
the creditors their statutory right against
stockholders who have not paid in full for
their stock the most efficient way so far as-
creditors are concerned and the most Just-
way so for as the stockholders are concern-
ed; but It is also the way permitted by the
statute. One creditor may file the biU, or one
or more or all creditors may join in one bill,
or one may act for all of them. So here, one-
creditor as a step to enforce the stockholders'
liability to him has filed a bill in his own and
their behalf established Insolvency, had re-
ceivers appointed, and he and the other cred-
itors have established their claims against
the company. The liability wlU be ascertain-
ed by this assessment, iJadivldual defenses
of a limited character excepted, and the li-
ability when established is binding on all
stockholders, and enforcible by the receivers
wherever the stockholders and their property
may be reached.
[S] It is not a reasonable Interpretation of
the statute to hold that no creditor can have
his debt paid from the unpaid balance due on
shares of stock unless he has obtained a
Judgment against the company and an execu-
tion thereon has been returned unsatisfied.
Obviously the only purpose of the Judgment
against the company and the execution on It
is to determine that the debt is owing and
that there is no property of the company
from which it can be collected, or in other
words, that the company is insolvent. Both
of these elements may be determined In
a Court of Chancery by a bill brought by one
or more creditors, or as here by a Judgment
creditor, and the claims of all other creditors
allowed, and their priorities, if any, deter-
mined, the assets collected and the deficien-
cy of assets over liabilities determined (whidi
has in fact already been done in this caa^,
as well as determining in a proceeding like
that of the pending petition the pnnwrtlonate
liability of all stockholders to meet such de-
ficiency in such way as to bind both crediton
and stockholders here and elsewhere.
In Cook V. Carpenter, 212 Pa. 165, 61 Aa
799, 1 L. R. A. (N. S.) 900, 108 Am. St. Rep.
854, 4 Ann. Gas. 723, a court of equity sus-
tained its Jurisdiction of a bill by aaslgneee
of an insolvent company to collect fOr the
benefit of creditors of the company unpaid
capital because it was a trust fund for all
creditors, who were numerous, whether the
proceeding originates in the name of one,
or several, or of all creditors.
This present method of enforcing ddin-
quent stockholders' liability to creditors is
perfectly fair, because they have notice of
every step taken in It. It is equally benefi-
cial to them, because it consolidates proceed-
ings, saves costs and expenses, and glvei
each a right to contest every step including
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JOHN W. COONBT C». r. ARIillTaTOK HOTEL OO.
887
the rights of creditors and the liabilities of
the other stockholders.
The Jurisdiction of this cpurt to determine
In this method the matters raised by the pe-
tition of the receivers Is therefore upheM.
In reaching conclusions as to the other
qaestlons In the case, great weight has been
given to the decisions of the courts of New
Jersey, because of the practical Identity of
the language of the statutes In the two
states, and It is not necessary to go so far as
to hold that they are binding as authorita-
tive Interpretations of a statute adopted by
this state from New Jersey. True by the
New Jersey statute in insolvency the remedy
against delinquent stockholders on behalf
of creditors is expressly given to the receiv-
er, and there is no statement there as to the
form of the remedy to be used. But as here-
in pointed out, a receiver of a Delaware
corporation has the same right inferentially,
and the form of the remed.v mentioned in
the Delaware statute Is like that used in
New Jersey without express statutory au-
thority. Interpretations of the New Jersey
statute and practice under it are cogent to
Influence the Delaware courts in like cases.
Having determined that the present pro-
ceeding is a proper one, and that the court
has power to make or authorize the assess-
ment on delinquent stockholders for the
benefit of stockholders, it is desirable to
state the general theory of the character
of the liability of such stockholders as dis-
tinct from the procedure to enforce it.
If there were no statute on the subject it
might be Important to consider the sevemi
theories which have been advocated and
adopted as to the origin, nature and extent
of the liability of stockholders to creditors,
as for instance whether the holding out the-
ory or the trust fund theory is the correct
one, and if pertinent differences of impor-
tance result then to adopt one theory rather
than the other. Inasmuch as there is a stat-
ute which Imposes such a liability, that is
a su£Bcient source of liability for the pur-
poses of this proceeding.
[t] All doubts as to the character and basis
of stockholders' liability to creditors under
the law of New Jersey are finally settled In
Holcombe v. Trenton, etc., Co., 80 N. J. Eq.
122, 82 Atl. 618 (which was afflrmed by the
Court of Errors and Appeals). There the
court considered the case of Donald v. Amer-
ican, etc., Co., 62 N. J. Eq. 729, 48 Atl. 771,
1116, and the remarks there of Judge Dixon,
which were so much discussed by counsel,
and said this as the final words:
"The doctrine that corporate stock issued,
outstanding and unpaid for is a trust fund for
the benefit of creditors, is a hard and fast rule
imbedded in the decisions of the courts of this
and other states, and is never relaxed. In
this state [New Jersey], however, the stock-
holder's liability to creditors no longer depends
alone upon the trust fund theory, but is held
to be statutory. Easton, etc.. Bonk v. Amer>
ican, etc., Co.. 70 N. J. Eq. 732 [64 Atl. 917,
I* B. A. <N. S.) 271. 10 Ann. Cas. 84]."
Indeed in an earUer case the Court ct Er-
rors and Appeals in New Jersey had held
the same thing, viz.: Easton, etc., Bank v.
American, etc., Co., where the court said:
"But in this state the stockholders' liability
to creditors does not depend alone or chiefly up-
on the theory of 'holding out.' It depends upon
the stockholders' voluntary acceptance, for con-
sideration touching his own interest, of a statu-
tory scheme to which watered stock, under
whatever device issued, is absolutely a lien,
and which requires stock subscriptions to be
made good for the benefit of creditors of insol-
vent companies, without distinction between
prior and sutMequent creditors, or between cred-
itors who had notice and those who had none."
The same view was taken by the United
States District Court of Connecticut in a
case where the liability of stockholders nn-
der a statute of Connecticut similar to that
of New Jersey was being enforced. Rosoff
V. Gilbert, etc., Co. (D. C.) 221 Fed. 972 (1915).
With such convincing authority respecting
statutes similar to the Delaware statute this
court is amply Justified in adopting the same
view as to stockholders of a corporation cre-
ated under the laws of Delaware. Corporate
stock Issued, outstanding and not paid for Is
a fund for the benefit of creditors, and In
general all who hold stock not paid for are
liable to creditors for the amount so unpaid.
Both the Constitution and statute define
what is payment
[7-1] A Delaware corporation cannot make
a subscription contract which will free the
subscriber from the statutory liability, for
that statute Is notice to all who make such
contracts and is read into and becomes a
part of every stock subscription contract.
The fundamental principle Is that shares of
stock in a corporation are a substitute for
the personal liability of partners, and the
liability to pay for stock taken np to the par
value thereof is a fund for the benefit of
creditors of the company, and whoever takes
shares of stock of a Delaware corporation
assumes that liability for the benefit of
creditors in case of insolvency of the com-
pany.
Upon holders of preferred stock, who took
the shares pursuant to a subscription con-
tract, and upon those who acquired shares
of common stock without a formal subscrip-
tion, the statutory liability is of course im-
posed. However acquired the constitution-
al and statutory provisions as to what con-
stitutes payment for stock are part of the
contract, express or implied, respecting both
kinds of stock. As to creditors, there is no
difference between the liability of holders
of stock and subscribers to stock, for both
are liable^
"In equity and as against creditors, the ac-
ceptance of stock without paying for it places
the acceptor in the position of a subscriber."
See v. Heppenheimer, 69 N. J. Eq. 36, 78,
61 Aa. 843, 860 (1905).
[19,11] Inasmuch as there is a question
common to all the holders of shares of com-
mon stock, whether holders of certificates of
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101 ATIiAMTIO REPORTER
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stock or of certiflcates of the voting trust,
that question should be determined in this
present proceeding. The question is, Was
the total Issue of common stock rightly is-
sued as full paid and uonassessahle stock so
as to exempt all of it, however held, from
assessment for creditors? "Work done" is
an equivalent for money, and in the absence
of actual fraud the Judgment of the directors
as to the value of such labor is conclusive.
See section 14 of the act
None of the common stock was paid for
In money, and it Is not so claimed by any
bolder thereof. But It is claimed that they
were issued for services, or rather that they
were paid for by services rendered and to be
rendered, and as there is no proof as to the
value of the services which were rendered, the
stock must be treated as full paid, as it was
stated to be on its face when issued by the
company. It may be true, as between the
corporation and a stockholder, that shares
may be Issued for services to be performed,
though even that Is doubtful. Yineland, etc.,
Co. V. Chandler, 80 N. J. Eq. 437, 85 AU.
213, Ann. Cas. 1914A, 679; Vogeler v. Punch,
206 Mo. 558, 103 S. W. 1001; Shannon v.
Stevenson, 173 Pa. 417, 34 Atl. 218. Contra,
Stevens v. Episcc^al, etc., Co., 140 App. DIv.
670, 125 N. T. Snpp. 573. "Work done" does
not include promotion services performed be-
fore incorporation. Herbert v. Duryea, 34
AK). IMv. 478, 54 N. Y. Supp. 311, affirmed
164 N. Y. 696, 58 N. E. 1088. But when the
Interests of creditors are afTected "work
done" should not include prospective labor
as an equivalent for money in exchange for
shares of stock. By a strict construction
"work done" does not Include work to be
done, or work done and to be done.
Whether it be moral, legal or actual fraud,
or not fraudulent at all, the obvious purpose
In issuing all the common stock to Howard,
Andrews and Arclilbald, as set forth in the
resolution of the directors at their first meet-
ing on February 27, 1911, was to give them
the stock without their having given the le-
gal equivalent therefor. The most that could
be claimed for it was that it was Issued for
services rendered and to l>e rendered, with-
out stating what part of the $2,900,000.00 of
common stock was issued for past services
rendered and what for future services to be
rendered. Furthermore the action as to the
common stock was taken In the earliest stage
of corporate life, viz.: at the first directors'
meeting after the formal organization meet-
ing, and at the first time when any business
was done by the corporation, or any of its
officers as such. When the incorporators
met on January 28, 1911, for organization no
business was transacted except to elect di-
rectors, and the issue of common stock was
voted at the first meeting of directors on
February 27, 1911, at which meeting officers
were elected. With such scanty opportunity
for heving done work for the corporation
after its organization, and In the absence of
any statement of the character or value of
such services theretofore rendered, or evi-
dence of any valuation thereof by tiie direc-
tors, the issuing of $2,900,000.00 worth of
stock for services rendered and to be ren-
dered was of Itself palpably indicative of an
intention to avoid the statute and Constitu-
tion, without reference to the other features
of the resolution.
In Ellis V. Penn Beef Co., 9 Del. Ch. 213,
80 Atl. 666, this court refused to regard as
payment for stock the alleged delivery by
the stockholders to the company of personal
property when It appeared as a fact that
though the property had been delivered It
had not been paid for, but was in fact paid
for by moneys of the company derived from
other sources. It was a case of failure of
consideration.
In Holcombe t. Trenton, etc., Co., 80 N. I.
Eq. 122, 82 Atl. 618, stock was issued in fact
for services for promoters, and inasmuch as
there was not of record any actual appraise-
ment of the value of such services they were
not regarded as payment in full, and the
stock so issued was still subject to assess-
ment for creditors as not full paid. But in
fixing the liability of such stockholders, the
court would have allowed them as credit on
the par value of the stock the reasonable
compensation for services rendered, if such
proof had been made.
[12] In the present case there was no val-
uation by the directors of the services of the
promoters, and there has been no proof offer-
ed as to the value of the services which had
been rendered by Howard, Andrews and Aw*-
Ibald at the time of the issue of the com-
mon stock to them, though opportunity to do
80 was open to the stockholders. It is read-
ily seen that $3,000,000.00 of stock was sudi
a gross and, therefore, unlawful overvalua-
tion that counsel did not pretend that there
was any appraisement by the directors, or it
they had made snch a valuation that any
sensible person would have accepted their
Judgment In the absence of such proof it
is now open to this court to say that the di-
rectors have not determined that three mil-
lion of stock was issued for work done, and
that no value was given by the stockholders
to the company for the common stock. Of
course, it Is obvious that the stock was to
be bonus stock, issued without value. There-
fore, it Is Impossible to escape the conclusion
that the shares of common stock have not
been paid for in whole or part In the hands
of the original takers, Howard, Archibald
and Andrews, they were liable to assessment
for creditors after the enterprise failed, and
the corporation became insolvent "Holders
of bonus stock are always required to pay for
their shares to satisfy the claims of cred-
itors." Holcombe v. Trenton, etc., Co. (1912)
80 N. J. Eq. 122, 82 Atl. 618, affirmed with-
out opinion in 82 N. J. Eq. 364, 91 Aa 1069-
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JOHN W. COQNEY CO. v. ARLIMOTON HOTEL CO.
An innocent purchaser for value who took
these shares, would have been exempt from
liability to pay any part of the par value
thereof.
[13, 14] Are any of the holders of common
Stock who have appeared In the proceeding
Innocent purchasers for value without no-
tice? Coleman du Pont Is not, for he was
present as a director at the meeting when the
resolution as to the issue of the stock was
adopted, and voted for it Almost all the
holders of preferred stock had notice that
the comipon stock bad not been paid for, be-
cause they received voting trust certificates
for bonus stock, and bonus stock means stock
Issued gratuitously and without payment
therefor being made or expected. All to
whom the voting trust certificates were is-
sued are for the purposes of this proceeding
liable as though shares of common stock to
which they were entitled under the terms of
the trust were actually Issued to them and
stood in their names. The beneficial owner
of the stock held by the voting trustees are
holders of the voting trust certificates and
no Interest In the stock is held by the trus-
tees except such as are necessary to enable
them to execute their trust. O'Grady v. U.
B. etc., Co. (N. J.) 71 AU. 1040, 21 U B. A.
(N. S.) 732, 734, 735.
In the case Just dted the holder of a vot-
ing trust certificate was regarded as the ben-
eficial owner of the stock represented by it
in the hands of the voting trustees, and was
therefore entitled to file a bill for a receiver
of the company as a stockholder thereof,
though the legal title be in the trustees. If
he lias the right of a stodcholder, except to
vote, he is subject to the liabilities thereof
to creditors in case of Its insolvency.
[1 5] Here all who took voting trust certifi-
cates were put on inquiry respecting the
common stock, and were not entitled to rely
upon a statement therein that It was full
paid. They did not purchase their stodc in
the market, but were subscribers to stock of
a new enterprise and took with their pre-
ferred stock some common stock, the prima
fade evidence being that thereby they knew
it was bonus stock, L e., stock for which no
legal equivalent was given. There was in
the resolution of the directors authorizing
the voting trust evidence that the common
stock was to be given as a bonus to sub-
scribers to preferred stock. The statement
on the certificate of shares of common stock
that they were full paid and nonassessable
does not relieve from liability to pay there-
for any holder or taker thereof, except those
without notice of the fact. An agreement
between a corporation and its stockholders
that corporate stock shall be Issued other-
wise than for money paid, or other statutory
equivalent, is void. Easton, eta. Bank v.
American Brick Co., 70 N. J. Eq. 732, 64 Atl.
917, 8 L. R. A. (N. S.) 271, 10 Ann. Cas. 84;
Holcombe v. Trenton, etc., Co., 80 N. J. Eg.
122, 141, 82 AQ. 618; Rosoff v. Gilbert Trans-
portation Co. (D. C.) 221 Fed. 972.
To establish the liability of holders of
common stock it Is not necessary to allude
to the suspicion as to the good faith in the
transaction which arises when directors of
a company make for the company contracts
with themselves as promoters or otherwise,
for the transaction is clearly shown to be an
attempt to Issue and distribute bonus stock.
It is held, therefore, that the common
stock was not rightly issued as full paid
stock, but was Issued without value given,
and still remains unpaid, notwithstanding
the statement on the face thereof to the
contrary; and further, that all the original
takers of the stock and holders of voting
trust certificates are prima fade liable as
holders of common stock, subject to such in-
dividual defenses as properly exist.
Furthermore^ there is evidence that the
common stock was Intended from the first to
be bonus stock. In the certificate of incor-
poration it was declared that it should be
nonassessable and full paid. At the first
meeting of the directors, and before any-
thing had been done by the corporation ex-
cept the most formal organization acts, and
before any payments could have been made
on any stock, it was voted that the certifi-
cates of common stock when printed should
state that they were nonassessable and full
paid. The form of subscriptions received for
the preferred stock referred to the plan fot
floating the new enterprise was by preferred
and common, the latter to be nonassessable.
All this was quite consistent with the plan
to issue common stodc which could not be as-
sessed for the purposes of the company, and
as to which the directors could not make
calls for payment in installments or other-
wise. In other words, it was to be honus
stock. The conduct of the directors in issu-
ing all the stock, nearly three million dollars
of it as full paid and nonassessable for serr-
ices performed and to be performed, is all
consistent with this theory of the purpose of
the promoters of the CMnpeny respecting the
common stock. The law of Delaware dedar^
ed that purpose to be Impossible of executioa>
All who took certificates for common stodc
were put on inquiry and notice of its char-
acter.
[16-29] It has been claimed that the com-
pany bad no right to issue preferred stock.
One of the subscribers to ten shares of pre-
ferred stodt, Z. D. Blackistone, who paid one
hundred and fifty dollars on account there-
of, claims that he Is not liable to pay the
balance of his subscription, on the ground
that the company had no power to accept
subscriptions for or issue preferred stock.
This contention is based on section 13 of the
act, which provides a way by which shares
of stock could be classified into common and
preferred stock with a proviso that "at no
time shall the total amount of the preferred
stock exceed two-thirds of the actual capital
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paid In cash or property." It is claimed that
no actual capital was paid to the company
In cash or property, all the common stoek
having been issued for services rendered and
to be rendered, and none of It actually paid
for. All of the preferred stock, it is claimed,
is overissued stock, spurious, illegal and void,
and there can be no estoppel even in favor
of creditors. Blackistone was not the holder
of common stock, and did not receive any
voting trust certificates.
Tills defense is certainly not available to
any holder of or subscriber for preferred
gtock who received common stock as a bonus,
or who received voting trust certificates with
their preferred stock. If one subscribes to
preferred stock under a plan by which sul>-
scribera for preferred stock are given shares
of common stock as a bonus, and so knew
that no value was given for the common
stock. It would t>e grossly inequitable to deny
creditors of the company after It becomes
insolvent a right to hold preferred stock-
holders liable on their subscriptions to or
holdings of preferred stock for whatever re-
mains unpaid thereon. By taking the bonus
Bto<^ they know that the only source from
which the company may obtain caidtal is
from the preferred stock. They know this
and the creditors may or may not, and the
latter are entitled to rely on the amount un-
paid on the preferred stock up to the par
thereof as a fund for the payment of their
claims against the company.
Those holders of preferred stock who took
voting trust certificates are In the same
position, for they are put on inquiry, and
an Inquiry would have shown that the issue
of all of the common stock was ordered at
the first meeting of the directors, and the
voting trust was also arranged for at that
meeting.
By use of the word "capital" instead of
the words "capital stock," the section does
more than fix the proportion between com-
mon and preferred stock. "Capital" means
property and "capital stock" means the ag-
gregate of the interests of the stockholders
In the property of the company after its debts
are paid.
In Person, etc., Co. v. Llpps, 219 Pa. 99, 67
Atl. 1081, where a company incorporated un-
der the laws of New Jersey had sued a sub-
scriber for preferred stock, and the defense
was that made by Blackistone, the court add-
ed into the appraised value of the property
of the company the par value of the common
stock Issued to the defendant Llpps and
another, in order to ascertain whether the
requirements of the statute were complied
with, though it did not appear that the com-
mon stodt had been paid for. The corpora-
tion in this case was a New Jersey company,
where the provision in question was at the
time the same as the Delaware statute, and
Is the only one dted or found to be interpre-
tative of the act. So far as it goes the case
dted is opposed to the contention made for
Blackistone. The basis of the contention
must necessarily have been that the corpora-
tion was absolutely without power to issue
any preferred stock, for If it had power to
do so and exercised it InefTectively or Infor-
mally, then the stockholders taking the stock
would be estopped as against a creditor.
This principle Is recognized In Loredo, etc.,
Co. r. Stevenson, 66 Fed. 633, 13 C. O. A. 661,
cited by counsel for Blackistone.
Cases of overissue of stock were dted to
sui^iort the contention. In such cases the
courts say creditors may know when stock
is overissued, and so cannot daim to have
been deceived. For the same reason credi-
tors have a right to assume that all the com-
mon stock Issued was paid in cash or prop-
erty, and so had a right to assume that the
proper proportion between common and pre-
ferred stock was thereby maintained. TlM
provision In section 13 that "in no event
shall a holder of preferred stock be personal-
ly liable for the debts of the corporation,"
does not exempt holders of preferred stodc
from calls or assessments up to the par val-
ue for creditors, but was Intended to exempt
them only from liability beyond the par value
for the needs of creditors in insolvency as
stated in section 20, which relates to all
shareholders without regard to classes.
The amount of capital paid in cash or prop-
erty fiuctuates and the proportion of classes
of stock fluctuates accordingly. It is im-
posing on creditors too great a burden to
expect them to know whether the proportion
has been always maintained. If sometimes
not maintained, then is all common stock
before or thereafter issued void? A strict
interpretation of the statute involves possible
entanglements of Interests. A safer rule is
to permit creditors to look to subacrlptlons
or holdings of common stock as equal to pay-
ment in cash or property for the purposes
of determining the proportion to be observed
between common and preferred stock.
[21] It is contended by some of the stock-
holders that subscribers to the preferred
stock must be required to pay the balance
of their subscriptions before the holders of
common stock can be called on to pay any-
thing, and this is based <« the statemoit
that the amount due on the subscriptions
arises from a contract with the company and
is therefore an asset of the company whldi
must be collected before the statutory con-
tingent liability is enforced. But there Is
no foundation for the contention. In case of
insolvency all the money due from all kinds
of stockholders constitute the trust fund for
creditors, and the statute makes no differ-
ence between the several kinds of stock. The
liability arises from the relationship of the
stockholder, whether It be created by con-
tract or be implied from ownership of shares.
[22] It is contended for some of the stodc-
holders that the assossment cannot be made
for the benefit of those creditors who at the
time of extending credit to the company
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JOHN W. COONEY CO. v. ARLINGTON HOTEL 00.
891
knew the drciimstances as to the Issue of the
common stock, tIz.: That it was issued in
payment for services rendered and to be ren-
dered, and as full paid. There was evidence
ottered to show such knowledge on the part
of some of the creditors who have filed
claims, and who will be benefited by an as-
sessment when made and collected.
This may not be the time to ascertain the
facts as to such knowledge, for those credi-
tors are not directly present In this proceed-
ing. They are here represented by the re-
ceivers, and have had no notice of the
contention against them, or opportunity to
defend themselves against it. Furthermore,
it may be that these matters may better be
passed on when the fund for creditors has
been gathered in and its distribution is open
to adjustment This seems to be the view
of the court in the case cited by the solicitor
tor the receivers. Sellg v. Hamilton, 234 U.
8. 652, 666, 34 Sup. Ct. 026, 68 L. Ed. 1618,
Ann. Cas. 1917A, 104.
Bnt inasmuch as the right of such credi-
tors to look to the stockholders for payment
of their claims has been much discussed, and
the determination of the question probably
has an important bearing on the rate of as-
sessment to be made (if any be made) it will
be considered now.
In New Jersey it is settled beyond contro-
versy that creditors having at the time of
giving credit notice that shares of stock were
issued as full paid when In fact not paid for,
or who are otherwise aware of the drcnm-
stances under which bonus stock was issued,
may still look to all holders of such stock
(except innocent holders thereof) for pay-
ment of debts due from the company to such
creditors.
It was so held by the Court of Errors and
Appeals in the case of Easton, etc.. Bank
V. American Brick, etc., Co., 70 N. J. Eq.
732, 64 AtL 917, 8 L. R. A- (N. S.) 271, 10
Ann. Cas. 84 (1905), after considering many
cases in other Jurisdictions in many of which
states the liability of delinquent stockhold-
ers was not statutory. The court relied on
the fact that liability in New Jersey was
statutory. It was also intimated that inde-
pendent of the statute creditors with notice
of the irregularity might still be Justified In
regarding the stockholders' liability as an as-
set of the company for the purpose of satis-
fying creditors. There is much in this con-
tention, and it may well be a proper basis
for a decision on the point But the New
Jersey court did not rely on it entirely. This
same rule was held in Holcombe v. Trenton,
etc., Co. (1912) 80 N. J. Eq. 122, 82 Atl. 618,
a later case in the Court of Chancery, which
was aflBrmed without an opinion by the Court
of Errors and Appeals, 82 N. J. Eq. 364, 91
Atl. 1069.
The same point was decided by the United
States District Court in Connecticut In a
case respecting a Connecticut corporation,
the statute of Connecticut being "quite simi-
lar," as the court said, to the New Jersey
statute, viz.: In Rosoff v. Gilbert Transporta-
tion C!o. (D. C.) 221 Fed. 972 (1915):
"There is no suggestion [in the statute] that
certain creditors can enforce this liability and
that certain other creditors cannot. The stat-
ute clearly contemplates that all creditors are
entitled to be paid, and that stockholders are
bound to pay them if the stock held by them
has not been paid • ♦ ♦ in fuU."
In GlUet V. Chicago, etc, Co., 230 lU. 373,
82 N. E. 891, which followed Sprague v. Na-
tional Bank of America, 172 IlL 149, 50 N.
B. 19, 42 L. R. A. 606, 64 Am. St Rep. 17, the
same view was taken of the Illinois statute,
similar to New Jersey and Delaware, which
gave the right to creditors, against unpaid
stock.
[2S, 24] Another question affects the rate of
the assessment. Some of the stockholders
who are liable to assessment are also credi-
tors of the company. Have they a right to
set off the amount with which they will be
assessed against the debts due them from the
company? This, too, is settled In New Jet^
sey. They will be required to pay the as-
sessment and share in the fund when real-
ized. See V. Heppenheimer, supra; Hol-
combe V. Trenton, etc., Co., supra ; and other
cases in New Jersey. So also stockholdera
who took stock with notice of the irregulari-
ties as to the issue thereof and who are also
creditors of the company are not estopped
from participating as creditors, after they
have paid the assessment against their shares.
Easton, eta. Bank t. American BAck, etc.,
Co., supra.
[2S] In July, 1913, the company made a call
upon holders of preferred stock to pay the
amounts due on the shares subscribed for.
Does this, of itself, bar this court from mak-
ing a call or assessment in this case in this
proceeding? In the case of Brown v. Alle-
bach (C. C.) 166 Fed. 488, 406, it was held
that a receiver may collect amotmts due on
unpaid stock even though a call had been
levied by the directors of the company whUe
it was a going concern, and even though
suits by the company to enforce the call were
still pending. This view is manlfesOy a
sound one.
[26] Should the assessment be made
against all delinquent stockholders, whether
solvent or insolvent, and whether residents
of Delaware, or not?
There Is ample authority, as well as good
reason, for excluding the Insolvent stock-
holders, and the reasons are obvious. Rosoff
V. Gilbert Transportation Co. (D. C.) 221 Fed.
972. In this particular proceeding It is not
an important matter, for there ia no clear
and satisfactory proof that any of those de-
faulting shareholders on the list submitted by
the receivers are insolvent, except one J. Wil-
liam Henry, a subscriber to shares of pre-
ferred stock of par value of $2,250, and who
was proved to have been adjudicated a bank-
rupt since making the subscription. None
of the stockholders of either class will be ex-
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892
101 ATLANTIC REPORTER
(Del.
eluded from the assessment on account of
flnaucial Inability to respond thereto, except
J. WllUam Henry.
[27] There is ample authority for the prop-
osition that under a statute Identical with
the Delaware statute the whole assessment
may be made against delinquent stockholders
within the Jurisdiction, with a right to those
who pay to enforce contribution from other
stockholders, and for ttiia latter purpose to
use the proceeding in which the assessment
Is made. See v. Heppenheimer, 69 N. J. Eq.
36, 61 Atl. 843; Holcombe t. Trenton, etc.,
C!o.. 80 N. J. Eq. 122, 82 Atl. 618; Wolcott t.
Waldstein (1916) 83 N. J. Eq. 63, 97 Atl. 951.
It Is said that the liability of stockholders to
creditors is analogous to that of joint gran-
tors, and therefore the above stated principle
applies. The application of this principle to
this case will be considered later.
[28] The defense of the statute of limita-
tions is also raised so far as the liability of
holders of preferred stock is concerned. It
is claimed tliat on July 15, 1913, the holders
of preferred stock were called on by vote of
the directors to pay the balance of their
subscriptions on or before September 15,
1913, and that the statute then began to run,
and if it be a bar against the corporation it
Is also a bar against the receivers acting on
belialf of the corporation's creditors. This
defense is dearly one to be raised when suits
are brought against the stockholders after
the assessment and It seems to be so settled
in such cases. Therefore no oi)inion is ex-
pressed on this point.
[29] Should the creditors of the company
who have proved their claims be allowed in
addition thereto interest as against the stock-
holders? Aa against the assets of an insol-
vent company when its affairs are being ad-
ministered by a chancery receiver, interest
is not allowed beyond the date of the ap-
pointment of the receiver, except on liens
wlilch bear interest. This Is the practice in
this court, as fixed by the rules of court. In
a sense the contingent statutory liability of
stockholders to oori>oration creditors is
analogous to other assets of the company.
But I am Inclined to the view that the
stockholders' liability has elements which
Justify charging them with a duty to con-
tribute enough to pay Interest to creditors.
Interest is denied by the rules of court as an
administrative measure, because If there is
not enough of assets to pay all the principal
the addition of interest does not increase the
dividends. In case the assets should turil
out to be sufficient to pay Interest, as well as
the principal of claims, there is good reason
why creditors should have it.
Therefore, as against stockholders, cred-
itors are entitled to have Interest calculated
on their claims. This is the prevailing prac-
tice in other Jurisdictions, though no reason
seems to have been given by the courts else-
where for allowing it.
Without undertaking to calculate the exact
amount of interest on eacb claim to a fixed
date, it is sufficient for the present purposes
to estimate the aggregate of interest If in-
terest for five years be allowed, it will ap-
proximately be sufficient for alL Interest at
six per cent on $466,739.42 for Ave years is
about $140,000.00. That sum is therefore to
be added to the principal, and estimated ex-
penses, and makes the grand total to be as-
sessed i.706,739.42.
[30, SI ] The general theory as to what
should be determined by the court in a pro-
ceeding such as this is well settled. It is
there determined that an assessment is nec-
essary, which involves a judicial determina-
tion of the exhaustion of the assets of the
company, the adjudication of the claims of
the creditors and the aggregate of the
amounts due to them. To this is added the
costs of the receivership in collecting the as-
sessment including counsel fees and legal
expenses in suits against stockholders, and
compensation to the receivers. These latter
items are necessarily estimated, and are liable
to reduction according to the conduct oC
stockholders in resisting payment As to all
these matters, and perhaps others, 8to<&-
holders are so far an integral part of the cor-
poration that in the view of the law they are
to tliat extent privy to proceedings by a re-
ceiver of an insolvent company on behalf of
Its creditors to enforce payment for stock
not paid for, and cannot question the propri-
ety of the assessment when mad& Cumler-
land, etc.. Co. v. Clinton, 57 N. 3. Eq. 627,
42 Atl. 585; s. c., 64 N. J. E]q. 517, 64 AtL
450; Oilson v. Appleby, 79 N. J. Eq. 690. 81
AtL 925; Wolcott V. Waldstein (1916) 83
N. J. Eq. 63, 97 AtL 951. This Is true
whether the stockholders have or have not
had notice of the proceeding (Brown v. Alle-
bech [C. C] 156 Fed. 697), though that Is
not important in this case.
This court having ascertained the amount
necessary to be raised must also ascertain
who the delinquent shareholders are, the
number of shares held by them respectively,
and the balance due from each up to the par
value of the stock held by them. It is not
quite clear as to the Imgth to which the
court should go in this latter respect, or as
to the character of the tndividoal defenses
whidi a stockholder may set up when sued
by the receivers for the assessment madtt
against him. If the receivers show from tbe
books of the company the above facts, they
have made out a case wltlch enables the
court to fix the liability to be imposed on
each stiare of rtock, so that the receivers are
entitled to test by suit the status of persons
supposed to be stodcholders and thdr liabil-
ity for the particular amount assessed
against them pursuant to the rate as fixed
by the court This is the view stated in
Cumberiand, etc., Co. v. Clinton, etc., Co., G4
N. J. Eq. 517, 54 Atl. 450 (1903).
Having disposed of all the questions rais-
ed which relate to all of the creditom or to the
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JOHN W, COONET CO. v. ARLINGTON HOTEL CO.
893
stockholders as a class or to classes thereof,
It will be necessary to consider some Bpeclal
defenses which have been raised.
[32] Ooleman dn Pont, who was a subscrib-
er to preferred stoct and In whose nEune
shares of common stock stand as the owner
thereof, by his answer to the petition claims
a credit on the preferred stock of $101,650.00
paid thereon, and that the common stock in
his name was not acquired from the compa-
By, but was assigned to him for a valnable
consideration and upon representation by
the company that the same was full paid and
nonassessable. He also says that on July
15, 1913, a call for $103,350.00, the balance
of his subscription to preferred stock, was
made by the company, and that any claim
now made by the receivers for such balanco
is barred by the statute of limitations.
There were other defenses set up in the an-
swer, wMch are applicable to all holders of
both kinds of stock, and these general de-
fenses have already been disposed of.
It was also shown at the hearing that on
bis subscription In wrlUng to the $480,000.00
of preferred stock a notation made by him,
the efTect of which was to release him 'roiu
an obligation to pay the amount subscribed
for in case the money received from the sub-
scriptions made by other pers<His amounted
to $125,000.00, and that as this event happen-
ed, he was under no further liability on his
snbBcrlptlon. And also that by a subsequent
resolution of the directors of the Arlington
Hotel Company he was released from that
obligation.
As has been stated above, the defense of
the statute of limitations is not passed on In
this proceeding. Notwithstanding the fact
that some testimony, Including some produc-
ed on behalf of Mr. du Pont, was heard on
these several individual defenses, and how-
ever desirable It be to have the liability of
this particular holder of a large number of
shares of both kinds of stock determined be-
fore an assessment Is made by this court,
or pursuant to its authority, and to have dis-
posed of all questions affecting such liability,
still all of these defenses particularly assert-
ed by and on behalf of Mr. du Pont come
within the class of defenses which by the
settled practice are not properly adjudicat-
ed In this proceeding, but are available as
defenses to suits brought by the receivers In
case an assessment is authorized. Further-
more, these personal defenses were not only
not set np by his answer to the petition of the
receivers, but were expressly reserved therein
In general terms.
Therefore, and for these reasons, no opin-
ion Is expressed as to the particular defenses
above mentioned. It Is found that Coleman
du Pont subscribed for $480,000.00 of prefer-
red stock, and on the books Is the holder of
$971,000.00 of common stock; and that as ad-
mitted by the receivers, there Is a credit on
the subscription to preferred stock of $75,-
000.00. Whether he paid, or was entitled
to any further credits thereon, or whether
the other Individual defenses mentioned were
good, Is not decided.
[33] William H. Fenn, in addition to some
defenses open to all holders of common stodk,
sets out some special grounds of defense,
which are personal to him and will not
therefore be considered. Under the latter
head Is the representation In his answer that
In order to qualify him as director a cer-
tlflcate for one hundred shares of common
stock, marked as full paid was Issued, exhib-
ited to him, and an assignment thereof was
endorsed thereon ; that he had not and never
had the certificate In his possession; and
did not and does not know whether or not
they were in fact full paid, except as It was
so endorsed. This defense, or these defenses,
are available to him when sued for the as-
sessment when made, and are not here de-
cided.
It may be well to here call attention to
the view of the present Chancellor In an-
other case, which Indicates that Mr. Fenn
did not relieve himself of liability In this
present proceeding by assigning the shares
of common stock which had been transferred
to him to qualify htm to be a director of
the company.
Recently this court has announced the view
that when one takes shares of stock of a
corporation In order to qualify him to be a
director of the company, he thereby holds
himself out as being the owner of the stock
In his own right, and cannot escape liability
as the record owner of the stock for an as-
sessment made thereon for the benefit of
creditors of the company by showing that he
never had a beneficial interest in the stock,
but held It as the agent for another, to
whom he had delivered the certificate for
the shares of stock with a transfer thereof
endorsed thereon. This was so decided in a
proceeding by the receiver of Securities Com-
pany of North America, a dissolved corpora-
tion, to enforce for the benefit of creditors
the liability of stockholders to pay In full for
their shares of stock where the question
arose respecting stock standing on the books
of the company In the name of William M.
Pyle, a director of the company. Fell v.
Securities Co. of North America, Court of
Chancery, New Castle County, 1917, 100 Atl.
788, not yet officially reported.
As Mr. Fenn Is the record owner of the
stock not paid for, the receivers have made
out such a case as to Justify the court In In-
cluding his name as one of the stockholders
liable to assessment, leaving his spedal de-
fenses to be settled in the suit to be brought
by the receivers.
Albert I* Stavely does not set up any de-
fense not already considered, and denies all
allegations as to the common stock, and has
paid in full for his subscription to preferred
stock. His answer does not at this time re-
quire further particular consideration by
this court.
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101 ATIiANTIO REPORTER
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Murray A. Cobb denies being a stockhold-
er, though he served as director for a while
and then resigned, or attempted to resign.
But he appears of record to be a holder of
ten shares of common stock not paid for, and
his particular defense will not be passed on
here, but will be available to him elsewhere,
and probably the same principles applicable
to Mr. Fenn's liability would apply to that
of Mr. Cobb, both of whom took shares to
qualify them as directors.
For the purposes of making this assess-
ment, the following conclusioDS have been
reached:
(1) That the company is insolvent; that
Its debts whldi are unpaid aggregate $466,-
739.42; that the interest to whidi creditors
will be entitled will probably aggregate $140.-
000.00; that the costs and exi>ense8 of the
receivership and of collecting the assessment,
including compensation to the receivers and
their legal counsel, may be estimated at
1100,000.00; and that the aggregate to be
assessed apon and collected from the stock-
holders who are liable therefor is $706,-
739.42.
(2) That those liable to assessment as sub-
acrlbers to preferred stock, and the amounts
on which they are liable to assessment ag-
gregating $479,210.00, are as follows (J. Wil-
liam Henry, the bankrupt, being omitted
therefrom): [List of holders of preferred
stock.]
(3) That those liable to assessment as hold-
ers of common stodt. Including those hold-
ing voting trust certificates, and the amounts
to which they are liable to assessment, ag-
gregating $3,000,000.00, are as follows:
[Ust of holders of common stock.]
Upon whom and in what proportions
should the assessment be made? The amount
to be raised being thus fixed, and the names
of the delinquent stockholders and the
amounts due from them severally having
been thus settled, it remains to be decided as
to who of them shall now be called on to bear
the burden and the proportions in which it
shall be borne. This is not an easy problem,
and there seems to be no precedent to guide
the court
There are eight distinct groups Into which
the stockholders may be arranged, viz.:
(1) Subscribers to preferred stodc who
have paid in full for that stock and who also
hold bonus common stock through the voting
trust
(2} Subscribers to preferred stock who
have paid in part for that stock and who owe
balances in varying proportions, and who
also hold bonus common stock through the
voting trust or otherwise.
(3) Subscribers to preferred stock who
have paid nothing, and who hold bonus com-
mon stock.
(4i) Subscribers to preferred stock who
have paid nothing and who do not hold com-
mon stock.
(6!) Subscribers to preferred stock who
have paid in part only for that stock, and
who do not hold common stock.
(6) Subscribers to preferred stock who paid
in full and who hold common stock not by
the voting trust
(7) Holders of common stock only.
(8) Holders of common stock and holders
of voting trust certificates, and who had paid
nothing on either kind of stodt The only
person in this class is Charles P. Taft, who
holds $1,000.00 of common stock and $50,-
000.00 of voting trust certificates.
One simple method of assessm^it is this:
The total to be raised being about $706,000.00.
and the aggregate of the liabilities of both
preferred and common stockholders being
about $3,479,000.00 (J. William Henry the
bankrupt holder of $2,250.00 of preferred
stock being omitted), an assessment of twenty
per cent on that aggregate liability will raiae
nearly $700,000.00.
But some of the holders of preferred stock
have paid in whole or in part for their
shares, and the holders of common stock have
paid nothing. Should there not be some pre-
liminary equalization of payments exacted
from the holders of common stock before the
holders of preferred stock are called on?
Other puzzling questions arise to vex one, in
endeavoring to adjust equitably and propor-
tionately the burden of the liability.
There is one very simple, direct and ef-
fective way, and that is to impose the whole
burden on the resident stockholder. As
hereinabove stated there is ample authority
for so doing. So far as the records and
proofs are concerned, there is but one stock-
holder shown to be a resident of Delaware
and who has been identified and located, viz.:
Coleman du Pont He has filed on answer to
the petition, subscribed for preferred stodc;
was a promoter of the company before its
organization ; was one of the first board of
directors; was shown by the record to be
cognizant of and an active participant in the
management of its affairs throughout the
early stages of its development; voted for
the issue of common stock and the voting
trust plan ; took ten thousand shares of com-
mon stock knowing its history and purpose;
and still holds nine thousand, seven hundred
shares, which are subject to assessment, and
as to bis liability thereon to creditors there
is no special individual defense set up by
him. Furthermore, there is unpaid on his
shares of common stock $971,000.00, which is
more than sufiicient to pay all the creditors
and expenses.
Furthermore, If he pays the creditors ha
will be given the right to use the present pro-
ceedings to enforce contribution from his
fellow stockholders, and can do it as effec-
tively as the receivers can. In this proceed.-
ing the Uatdllty of the other stockholders Is
determined, subject to their individual de-
fenses, and this determination would be for
his benefit in place of the receivers, to whose
rights he would be subrogated by order of
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JOHN W. OOONEY OO. y. ARLINGTON HOTEL CO.
895
^Ma court Frntherinore, In addition he ap-
parently owes $205,000.00 unpaid on his sub-
acriptions to preferred stock, which liability
he denies. Furthermore, no question has
been raised as to his financial ability to pay
the demand.
[34) The advantage to the creditors would
be great and are obvious, and this proceeding
is solely for their benefit If no other clearly
equitable way to fix a rate applicable fairly
to all of the various classes of stockholders.
Is found practicable, the receivers will be
authorized to collect from Coleman du Pont
the whole sum necessary to pay the debts
and expenses, and when payment is made he
will by a decree of this court be subrogated
to the rights of the recovers and creditors
against other stockholders whose liability Is
also fixed by the court
This conclusion is reached with great re-
luctance, because it may be considered that
the burden should be distributed among all
delinquent stockholders ratably. But on the
other hand the statute of Delaware Imposes
on each stockholder the obligation to pay the
whole par value of his stock if that much is
needed to pay creditors of the company in
case the assets of the company are insu£9-
dent for the purpose, and by the method
above stated the creditors will be given their
remedy most quickly and effectively.
Inasmuch as the question upon whom and
In what proportions the assessment should
be made, was not discussed by counsel, the
court will, if It be desirable, hear counsel on
the point before a decree is entered.
Supplemental Opinion as to Form of Decree.
THE CHANCELLOR. After the filing of
the opinion a hearing was had as to stock-
holders, or classes of stockholders upon
whom the assessments should be laid prima-
rily, the amount to be assessed, and the de-
tails of the substance and form of the de-
cree.
[35] I am clear that there should be no
distinction between tho delinquent holders
of common and preferred stock, but that
they should be treated as one class. Also
that all «tockholders who had made pay-
ments on their stock in excess of their pro-
IMrtiou of the amount due the creditors
should be excluded, and that those stock-
taoldera who have made payments on ac-
count of their shares should be given credit
therefor.
There are outstanding not paid for in full
5852 shares of preferred stock, aod excluding
the amount unpaid on the fifty shares of
J. William Henry, the bankrupt, 5S02 shares
of preferred and 30,000 shares of common, a
total of 35,802, with a par valuation of $3,-
580,200.00. An assessment of twenty per
c«it on the par would raise a sum about
equal to the debts and expenses. Stockhold-
ers of the company who have paid In more
than twenty per cent of the par value of
their stock should in equity be excluded
from assessment. There are two holders of
preferred stock who are in that class, John
F. Wilkins, a subscriber for two himdred
and fifty shares, and John Auen, Jr., a sub-
scriber of one thousand shares. Therefore
they should equitably be excluded from the
list of stockholders held liable to assessment,
and the aggregate of tbe shares unpaid for
being 4552 shares of preferred and 30,000
shares of common stock, a total of 34,552
shares.
If an assessment of $20.52 be made upon
each of 34,552, and those holders of preferred
stock who have paid in part for their stock,
and less than twenty per cent thereof, be
credited with the amounts so paid by them
thereon, then a sum will be raised which is
Just a trifle more than the aggregate of
the debts; but as some of the items making
up the aggregate sum to be raised are esti-
mated, there is no real inequality or un-
fairness in fixing that amount of tbe assess-
ment at that figure.
There is authority for allowing to those
stockholders who pay promptly the amounts
for which they are liable a credit thereon
to the extent of the payment <Scovill v. Thay-
er, 105 U. S. 143, 26 L. Kd. 968) and this la
equitable.
A decree will be entered in accordance
with this and the earlier opinion.
In accordance with the foregoing opin-
ions the following decree was entered:
On this fourth day of Annat, A. D. 1917, tbe
petition of James Frank Ball, Aulick Palmer
and Peyton Gordon, receivers appointed by this
court for the said Arlington Hotel Company,
praying, among other things, that this court levy
an assessment on the stockholders of the said
company requiring them to severally pay such
amount of their several and unpaid subscriptions
to the capital stock of the said company as the
court shall ascertain to be necessary to pay the
debts of the said corporation with interest, and
the expenses incident to the winding up of said
corporation's affairs by said receivers, having
been filed in this cause on the thirtieth day m
October, A. D. 1016, and on said date the Chan-
cellor having made an order directing that a
rule of this court be issued directed to the stock-
holders of said company whose names appear on
the list thereof attached to said petition to ap-
pear at a time in said order fixed, and show
cause, if any they have, why the said assessment
should not be made, and further directing that
said rule and order with a copy of said petition,
excluding the exhibits attached thereto, be serv-
ed on those stockholders of said company who
were residents of the state of Delaware and that
the register in chancery give to all other stock-
holders of said company whose names appear on
said list notice of said petition and of the rule
and order by sending a copy thereof to each of
said stockholders by registered letter addressed
to his last known residence, or place of business,
and mailed within six days from tbe date of said
Older:
And due proof having been made before the
Chancellor that service and notice of said rule
and order had been made and given in compli-
ance with said order;
And answers to said petition having been filed
by Murray A. Cobb. Z. U. Blackistone, Albert L.
Stavely, William H. Fenn and T. Coleman do
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101 ATLANXIU REPORTER
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Pont, whose names appear on said list aa stock-
holders of said company, and no other stockhold-
ers of said company havinp appeared to said pe-
tition or rule, or filed any plea or answer thereto,
or shown or averred any cause why the aaid as-
sessment should not be made;
And the said petition and rule and the several
answers thereto having come on to be beard by
the Chancellor upon testimony presented and
taken orally in open court before the Chancel-
lor, and upon records and exhibits there pro-
duced, and the cause having been argued by the
respective solicitors for said receivers and for
said stockholders who had answered said peti-
tion, and the same having been duly considered
and held under advisement until the date of this
decree;
And it appearing to and being found by the
Chancellor from the record, proceedings and evi-
dence in said cause and upon said petition and
answers thereto, that the proof so taken together
with the record of said cause, constitute full and
complete evidence and proof of all of the findings
of fact and fully support for all the findings of
law and for the orders of the court in this de-
cree contained;
And further, that the said Arlington Hotel
Company is a corporation of the state of Dela-
ware, and has been duly adjudged by this court
in this cause to be insolvent ■ and that the said
Jamea Frank Ball, Aulick Palmer and Peyton
Gordon have been duly appointed by this court
and qualified as receivers of said company;
And further, that after due notice given to all
of the cre<litors and stockholders of said compa-
ny and after exceptions taken to certain claims
filed in said cause by creditors of said company
had been adjudicated, and the amount due the
said creditors on their respective claims fixed
and determined by the Chancellor as being the
debts due by said company, the dividends allow-
ed and decreed upon claims of said creditors in
the suits in which receivers were appointed in
the District of Columbia having been deducted
from said claims, and that the following are the
claims of creditors of the said company filed in
this cause which have been so allowed by the
Chancellor as the debts due by said company in
the amounts hereinafter stated, viz.: [Here was
inserted a list of the creditors of the company
and the amounts due them respectively, aggre-
gating $466,739.42.]
And further, that there are no funds or prop-
erty of said corporation with which to pay the
debts and claims, or any part thereof, except the
moneys due to said corporation from the stock-
holders of the said corporation who have not
paid in full for their shares of stock, and that
an assessment or call should be made against
said subscribers or holders of unpaid shares of
stock of the said corporation to pay said debts
and the expenses of the receivership;
And further, that the debts of said company
which are unpaid as aforesaid aggregate the sum
of four hundred and sixty-six thousand seven
hundred and thirty-nine dollars and forty-two
cents ($466,739.42) ; that the interest to which
creditors will be entitled will probably aggre-
gate one hundred and forty thousand dollars
($140,000.00); that the costs and expenses of the
receivership and of collecting the assessment, in-
cluding compensation for the receivers and their
legal counsel, are estimated at one hundred
thousand dollars ($100,000.00); and that, there-
fore, the aggregate sum necessary to satisfy the
debts of said corporation and to be assessed upon
and collected from the stockholders who are lia-
ble therefor is seven hundred and six thousand
seven hundred and thirty-nine dollars and forty-
two cents ($706,739.42) ;
And furtner, that the said creditors are enti-
tled to have their said claims and demands
against said company paid by an assessment to
be made upon the shares of preferred and com-
mon stock of said company, and upon the hold-
ers thereof, notwithstanding that the said cred-
itors, or some of them, had at the time of giv-
ing credit to said company notice of the circum-
stances under which the shares of common stock
were issued by said company as full paid and
nonassessable;
And further, that the following is a list of the
subscribers to the preferred stock of said com-
pany, who have not paid in full therefor, show-
ing the number of shares subscribed for by them
respectively, the aggregate of the payments mada
by any of them respectively, and the amounts
unpaid thereon respectively (the name of J. Wil-
liam Henry, a subscriber for fift? [50] shares,
found to be a bankrupt, being omitted there-
from), and the aggregate of the amounts so
stated as unpaid on said 5,802 shares of prefer-
red stock being four hundred and seventy-nine
thousand two hundred and ten dollars ($479,-
210.00): (Here was inserted "Schedule A,**
showing the subscribers to preferred stock, num-
ber of shares, amount subscribed) amount paid
and balance due.]
And further, that all of the authorized com-
mon stock of said company, aggregating three
million dollars ($3,(X)0,000.00) bad been issued
without value given therefor, and that the
amount remaining unpaid upon the common
stock of said corporation is three million dollars
($3,000,000.00), and that the persons liable to
assessment as holders of such common stock, in>
eluding those holding trust certificates for shares
of said common stock, and the amounts, aggre-
gating three million dollars ($3,000,000.00), nec-
essary to complete the amount of tJie par value
of their shares and on which they are liable to
assessment, are, respectively, as follows: [Here
was inserted "Schedule B, showing the sub-
scribers to common stock, number of shares,
amount subscribed and amount due.]
And further, that an assessment of twenty
per cent. (20%) upon all holders of shares of
stock of said company, both preferred and com-
mon, not paid for in full, being 5,802 shares ot
preferred and 30,0(X) shares of common stock,
ag^'rogating 35,802 shares, would equal about
the said sum of seven hundred and six thousand
seven hundred and thirty-nine dollars and forty-
two cents ($706,739.42), estimated to be neces-
sary for the payment of the debts of said com-
pany, with interest and tlie expenses of the re-
ceivership; that two of said persons named ia
Schedule A have paid more than twenty per
cent, of their subscriptions to said stock, viz.:
John F. Wilkins, a subscriber for two hun-
dred and fifty shares, and John Anen, Jr., a
subscriber for one thousand shares; and that
therefore the said John F. Wilkins and John
Auen, Jr., should not at this time be required
to mako further payments on account of their
respective subscriptions to said preferred stock ;
that after deducting the shares of the said Jolm
F. Wilkins and John Auen, Jr., aggregating
twelve hundred and fifty, the aggregate of said
shares held by the subscribers mentioned in
Schedule A is four thousand five hundred and
fifty-two (4,552), and the aggregate of the shares
of common stock is thirty thousand (30,000)
shares; and that the aggregate of both kinds
of said stock liable for said assessment for pa^
ment of said debts and receivership expenses is
thirty-four thousand five hundred and fifty-two
(34,552) shares;
And further, that said assessment should be
equalized as near as may be between those
stockholders who have paid in part for their
shares and to the extent thereof, and those who
have paid nothing therefor; and for this pui^
pose that an assessment of twenty dollars and
fifty-two cents (.$20.52) should be made on each
of said thirty-four thousand five hundred and
fifty-two shares ; and those persons named in
Scliedule A who have made payments on ac-
count ot their shares be credited with the
nraouuts so paid by them, as against the amount
which would otherwise be assessed against
them aa above stated;
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JOHN W. COONEY CO. ▼. ABWNOTON HOTEL CO.
897
And further, that the followins. Schedule C,
la a list of the persons who as holders of shares
«t stock of said company, both preferred and
common, are liable to said assessment ; that
the said schedule shows the number of shares
held by them respectively, as shown by the
books, records and papers of said company and
by the testimony in this cause ; and the amount
due and payable from each of them by an as-
sessment of twenty dollars and fifty-two cents
($20.52) upon each share of stock held by them
respectively, a deduction, or credit, having
been given to such stockholdera who have made
payments on their stock of the amounts so paid
by them respectively, as shown by the above
mentioned Schedule A: [Here was inserted
"Schedule C," showing the subscribers to pre-
ferred and common stock, number of shares of
each, and amount of assessment.]
It is, therefore, adjudged, ordered and decreed
by the court, as follows:
1. That the amount necessary to be raised
to pay the principal of the claims of the cred-
itors of the said Arlington Hotel Company
found and allowed as aforesaid is four hundred
and sixty-six thousand seven hundred and thir-
ty-nine dollara and forty-two cents ($466,739.-
42), and the estimated interest thereon to the
date of payment is the sum of one hundred and
forty thousand dollars ($140,000.00), and the es-
timated costs and expenses of the receivership,
including the collection of the assessments here-
inafter levied for the payment of said claims,
amount to the sum of one hundred thousand
dollars ($100,000.00), and the total amount nec-
essary to satisfy the debts of the said corpo-
ration and said costs and expenses is the sum
of seven hundred and six thousand seven hun-
dred and thirty-nine dollars and forty-two cents
($706,739.42) ;
2. And further, that It is necessary to assess
the said last mentioned sum upon the shares
of stock of said company which have not been
paid for in full, and upon the holders thereof,
or upon the legal representatives of such of
them as may be dead; that for said iiurpose
the said sum is hereby assessed and levied up-
on said shares of stock and upon the holders
thereof, or the legal representatives of such of
them as may be dead ; that for the said pur-
pose an assessment of twenty dollars and fifty-
two cents ($20.52) is hereby levied on each of
said shares of stock, preferred and common, ex-
cept the shares of preferred stock held by John
F. Wilkins and John Auen, Jr., as hereinabove
etated; that the holders of shares of preferred
stock who have made payments on account
thereof be credited as a(;ainst said assessment
with the amounts so paid thereon respectively
as shown by Schedule A.
3. And further, that the foregoing list, call-
ed Schedule C, contains the names of the hold-
ers of said shares, preferred and common, the
number of shares held by them respectively,
and the amounts so assessed against them as
aforesaid, the holders of shares of preferred
stock who have made payments on account
thereof having been duly credited therewith as
against said assessment ;
4. And further, that the said persons men-
tioned in said Schedule C, or the legal repre-
sentatives of such of them as may be dead, pay
to said receivers the said sums so assessed as
stated in said Schedule C, within the time to
be fixed herein ;
Provided, that with the consent of the receiv-
ers, or their solicitors, each and every stock-
bolder liable under said assessment and levy
who shall pay the amount assessed against him
or them upon demand, or within the limit of
time as hereinafter prescribed, shall be allow-
ed a credit on the amount due as aforesaid of
three per cent (3%) upon his proportion of
the amount so assessed and paid, which credit
it is estimated would equal the proportionate
■hare payable by each stockholder of the total
101 A.-61
amount of the estimated costs, and expenses of
the receivership, and the collection oic the as-
sessment, including compensation for the re-
ceivers and their legal counsel, and also for ac-
cruing interest.
5. And further, that the said receivers be and
they are hereby authorized and directed to send
within ten (10) days from the date of this de-
cree by registered postpaid letter, addressed
to each of the holders of shares of stock of said
company as shown in said Schedule C, or to
their Itfal representatives, a copy of this de-
cree, with a demand for the payment on or
before the seventeenth day of September, A D,
1917, of the amounts severally due from them as
shown by said Schedule C.
6. And further, that in the event that any
person or corporation liable as shareholders of
the company, or the legal representative of any
of them that may be dead, shall fail to pay the
amount hereby assessed upon or against the
share or shares of said stock, preferred or com-
mon, owned or held by him, or upon or on ac-
count of which he is liable, within the time here-
inbefore specified, said receivers are hereby
authorized and empowered to institute and pros-
ecute such suit or suits, action or actions, or
other proceedings against such person or per-
sons, corporation or corporations, party or par-
ties so liable, in any court having jurisdiction,
whether in this state or elsewhere, as said
receivers shall deem necessary or proper for
the collection of the whole amount due from
such persons or corporations, under the terms
of this decree ; and for the purpose of carrying
on said suits, the receivers are hereby author-
ized and directed to employ soch counsel in
other jurisdictions and make such expenditures
for costs in any of said suits as may reasonably
be found to be necessary.
7. And further, that the title to said sums
severally assessed as aforesaid against said
shares of stock and against said stockholders,
or their legal representatives, and the right to
sue therefor, is in the said receivers of said
company.
And it appearing to and being found by the
court that T. Coleman du Pont is the only
stockholder of said company resident in the
state of Delaware,
It is further adjudged, ordered and decreed
that in the event that at the end of the period
of time hereinbefore specified, the whole or any
part of the said sum of seven hundred and six
thousand seven hundred and thirty-nine dol-
lars and forty-two cents ($706,739.42), remains
unpaid by reason of the failure of any person
or corporation liable as shareholder of the Ar-
lington Hotel Company to pay within said
specified time the amount hereoy assessed upon
or against the share or shares of said stock,
preferred or common, owned or held by him,
or upon or on account of which he is liable,
said receivers are hereby authorized, empower-
ed and directed to give to the said T. Coleman
du Pont written notice of that fact, and of
the amount so remaining unpaid, and to demand
and require the said T. Coleman du Pont to
pay to said receivers in addition to the amount
hereinbefore assessed against him on account
of the shares held by him, the balance of the to-
tal sum of seven hundred and six thousand
seven hundred and thirty-nine dollars and forty-
two cents ($706,739.42), or so much thereof as
then remains unpaid by reason of such failurf
on the part of said other stockholders, which
said sum of seven hundred and six thousand
seven hundred and thirty-nine dollars and forty-'
two cents ($706,739.42), or so much thereof as
shall then remain unpaid, the said T. Coleman
du Pont is hereby ordered and decreed to pay
to the said receivers; and in default thereof
for the period of thirty (30) days, the said re-
ceivers shall proceed to collect the same from
the said T. Cbleman du Pont hy suit, or other-
wise, as they may deem proper.
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101 ATIANTIO KEPORTBB
a)eL
And farther, that the said T. Coleman du
Pont, upon payment of the said 8nm so remain-
ing unpaid, snail (except as to the amount as-
sessed against him) be subrogated to the rights
of the said receivers, to hare and recover, by
way of contribution, from the persons or cor-
porations liable for or on account of said shares
of preferred and common stock, the sums re-
spectively assessed upon and due from each of
them under the assessment hereinbefore made
and levied ; and shall also have the right to
institute and prosecute at his own expense,
in the name of said receivers, but to his own
use, any suit, action or proceeding for the re-
covery or collection of said sums so assessed
as aforesaid, including any suit, action or pro-
ceedings brought by said receivers for said pur-
pose, and shall be entitled to have any order
of thia court necessary to effectuate such pur-
pose; and all sums, if any, that may suDse-
quent to such payment b^ said T. Coleman dn
Pont, be received by said receivers from any
such person or corporation, for or on account
of such liability, shall be held subject to the
further order of the court, and for the use of
said T. Coleman du Pont.
9. And it is further adjudged, ordered and
decreed, that said receivers be and th^ are
hereby directed to bold all amounts couected
under the terms of this decree snbject to the
further order of the Chancellor herein.
[Signed] Chas. M. Curtis, Chancellor.
(11 Del. Ch. 268)
KINGSTON et al. t. HOME LIFE INS. CO.
OF AMERICA et al.
(Court of Chancery of Delaware. April 19,
1917.)
1. OoBPOBATiONS «=9l68 — Stocilholdkbb —
SuBSCBipnoN TO New Srabes.
The right of shareholders to subscribe for
new shares issued by a corporation as an in-
crease of its capital stock in preference to out-
siders is well established, being known as a
shareholder's pre-emptive right, although it may
be ditlicult to determine whether the stock it-
sue is an issue of new stock,
2. CoBPORATiONS «=>G0— Stock— iBSCAifCB or
Sbares.
New shares of corporate stock cannot be
issued for an improper purpose, as to maintain
control of a corporation.
8. CoRPORATioNB «=»15&— Stock— COKTRACTS
— Validitt.
A contract between a corporation and an
outsider, giving the latter the exclusive right
to take at par a large number of shares of
corporate stock without regard to time, being
valid as between the corporation and the out-
sider, cannot be attacked by those acquiring
their stock subsequent to the execution of the
contract, for it does not infringe on the pre-
emptive right of such shareholders.
4. CoBPOBATioNB «=»158— Stock— CoNTBAOTS
— VAi-iDrrr.
That those subsequently adquiring their
•tock did not know of the contract does not au-
thorize them to attack it.
6. cobpobatiors «=72— stock— cowtbacts—
Validitt.
Where a contract between an insurance com-
pany and an outsider, authorizing him to take
at par, without limitation as to time, certain
corporate stock to be thereafter issued, was
assigned to defendant, which made loans to en-
able the company to extend its businpss, and
such loans were very beneficial, the contract
cannot be overthrown, on the ground that it
was oppressive, because the stock of the com-
pany Buld above par.
6. Pkbpetuities «3»7(1) — CokThacts— Ih-
rBINOElOENT.
A contract between a private oor^ration
and a third person, authorizing the third per-
son to take, without limitation as to time, cer-
tain corporate stock thereafter to be issued,
does not infringe the rule against perpetuities,
which was intended to prevent undue restraint
on the alienation of land, the source of all
wealth, for the rule should not be extended to
the stock of a private business corporation.
7. INSUBANCK «=>36— iNStTRANCB Cdmpahiis
—CoNTRAcre— Validity.
A contract whereby defendant wa« to fur-
nish insurance company, engaged in writing
industrial policies, with fundis to secure new
business, is not illegal or unfair as to the in-
surance company, which was a new corpora-
tion, and which needed such funds, as it could
not legally use its capital stock for working
capital, as a working surplus would be slowly
built up, and as the contract provided that re-
payment should be made only out of the aurplui
of the company above a fixed amount, unless
it should be disaolvedj when payment should bs
made out of the capital stock ; this being so,
though the status of the loans was misrepre-
sent^ on the books of the insurance companf
and defendant.
8. CoBPOBATions «s»162 — DiTiDKNDs — Pay-
ment.
Where it waa estimated that the value of
land purchased with the capital of an insurance
company had enhanced, and it was shown that
an ofiScer, authorized to purchase land for a
fixed amount, acquired it for less, such enhance-
ment in the value of the land and the saving
effected were not profits out of which dividenda,
that can only be paid out of surplus or net
profits arising from the business, could be de-
clared.
9. CORPORATIOIfS «=9351 — OinCEBS — Diri-
DEN D — LiAfiiLrrr .
The statutory liability of officers who im-
properly declare a dividend cannot be enforced
in an action against the corporation and anoth-
er oompanjr to annul contracts, enjoin piy-
ments of dividends, etc. ; the officers not being
parties.
10. INSDBANCK «=>60 — CoBPOBATIORS — Rl-
CBITEBS— APPOIMTUBNT.
As the only purpose of a receivership for so
insurance company would be a liquidation of
the bnainesE, as a receiver could not carrjr it
on indefinitely, a receiver will not be appoint-
ed because dividends may have been illegally
declared, where liquidation was not desired,
even though an injunction against declaration
of future illegal dividends must be generaL
U. Inburancb ®=»50— Cobpobations — Im-
FAIBMXNT OF CAPITAL.
As the insurance commissioner has exten-
sive powers with respect to the conduct of an
insurance com[>any's business, particularly with
respect to the impairment of capital, a receiver
of on insurance company vrill not be appointed
because the capital may be somewhat impaired,
when the real property of the company is coi^
rectly valued ; this being particularly true
where there was testimony that, if liquidated,
the net value of the stock of the company would
exceed its par value.
12. Insurance <s»60 — Cobpokations— Rb-
ceivebs— Appointmknt.
Where a contract by which the preddent of
an insurance company, who personally assumed
at its face value a worthless account, was to re-
ceive commissions on insurance written, was not
oppressive or fraudulent, a receiver wiU not
be appointed, though the president, in making
bis report to the insurance commissioner, mis-
stated the facts as to payment of premiums to
him.
CssFor other cases see same topic and KEY-NUMBER in alt Key-Numbored Digests and InduMs
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KINGSTON V. HOME L.IFE INS. CO. OF AMERICA
899
Bill by Thomas Elngstdn and others, as
shareholders, against the Home Life Insur-
ance Company of America, a corporation, and
another. Decree for defendants.
Bill by shareholders of an insurance com-
pany to annul contracts made by the com-
pany and to correct irregularities and unlaw-
ful acts of officers and directors. The cause
was heard on bill, the Joint answer of the
two defendants and testimony and exhibits.
The facts appear in th« opinion of the Chan-
cellor.
Caleb S. Leyton, of Wilmington, and Thom-
as Raebnm White, of Philadelphia, Fa., for
complainants. Charles F. Curley, of Wil-
mington, and John P. Connelly, of Philadel-
phia, Pa., for defendants.
THE CHANCELLOR. The six complain-
ants, all stockholders- of the Home Life In-
surance Company of America, a Delaware
corporation, have filed their bill against that
company and the Home Protective Company,
also a Delaware corporation, on behalf of
themselves and of other stockholders. It
appears that the officers of the two defend-
ant companies are, and for more than nine
years and during the transactions complained
of, have been the same persons, and during
the same period a majority of the directors
of the Insurance Company were also directors
of the Protective Company. Dp to 1907 the
Protective Company owned practically all the
outstanding shares of the In&iirance Company
and therefore controlled it Afterwards, and
until the latter part of 1913, the Protective
Company sold shares of the Insurance Com-
pany at prices about double the par value.
The shares so sold were sold largely in connec-
tion with policies of insurance negotiated by
agents of the Insurance Company, the per-
sons insured being given a right to take such
shares. Some at least of the shares so dis-
posed of, and others afterwards acquired by
the Protective Company, were Issued pur-
suant to an option given by the Insurance
Company and acquired by the Protective
Company. This option had its origin in the
action of the directors of the Insurance Com-
pany at a meeting on October 29, 1906, where-
by It gave to Paul Bright the exclusive right
to purchase one hundred thousand dollars
worth of stock at par, which was then one
hundred dollars per share and which was
afterwards reduced to ten dollars per share.
At this time one hundred thousand dollars
of stock had been issued out of an authorized
capital of two hundred and fifty thousand
dollars. By an agreement dated April 15,
1S07, the Protective Company purchased from
Bright the entire good will and business- uf
the Insurance Company and the entire out-
standing stock, amounting to one hundretl
thousand dollars, at par ten dollars, for the
total consideration of one hundred and flfty-
flve thousand dollars, and lator Bright aa-
signed to the Protective Company the option
which he had to substarlbe for stock of the
Insurance Company. At a meeting of the
stockholders of the Insurance Company held
January 21, 1908, it was by motlou duly car-
ried agreed that tlie surplus earnings, if any,
be paid to the Protective Company "for fi-
nancing the Home Life Insurance Company of
America," and authority was given to the
directors to increase the authorized capital
from two hundred and fifty thousand dollars
to not exceeding one million dollars, con
templatlng, of course, that proper legal steps
would be taken for the purpose. At a meet-
ing of the stockholders of the Insurauce Com-
pany held February 16, 1909, a resolution re-
citing tlie givbDg of the option to Bright, the
assignment thereof to the Protective Com-
pany and the proposed increase of capital,
and also reciting that the Protective Com-
pany had contributed or advanced to the In-
surance Company moneys and securities to
enable It to maintain its legal reserve and
build up its business, and stating that the
contributions or advances would continue a!>
needed by the Insurance Company and be re-
turned out of surplus earnings, and extending
the option to include the entire capital stock,
was adopted by the stockholders.
In explanation of the advances or con-
tributions made by the Protective Company
to the Insurance Company it was stated in
the answer and shown that the moneys were
needed to acquire new business either
through soliciting agents or by reinsuring
the risks of other insurance companies, and
under the insurance laws the usual Income
of the company could not be used for such
purpose. It was explained also that to grow-
rapidly it was necessary for a newly organ-
ized Insurance company to make large ex-
penditures in excess of the premiums collect-
ed by It In order to pay soliciting agents, and
that after the business increased to large
proportions the receipts will exceed such ex-
penses. In other words. It costs a new com-
pany more to place insurance than Is re-
ceived from those insured. To enable the
Home Life Insurance Company to so grow
rapidly the Protective Company paid to the
Insurance Company at various times sums of
money.
Finally, at the annual meeting of the
stockholders of the Insurance Company, held
February 19, 1916, a resolution was adopted
reciting the action of the meeting of January
21, 1908; and that about four hundred and
seventy thousand dollars had been received
from the Protective Company by the Insur-
ance Company, of which about eighty-one
thousand dollars had been re-paid; and au-
thorizing the execution of obligations for the
sums so contributed and advanced and those
to be contributed and advanced, with inter-
est at six per centum, the obUgatlMis to be
made payable only out of surplus In excess
of ten thousand dollars while the Insurance
Company should continue in active business
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101 ATIiANTIO REPORTEB
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and the obligations should not be considered
a lien or debt against the Insurance Com-
pany, or be due or payable, except In the
event of dissolution or retirement of the com-
pany.
Up to 1912 the Protective Ckmipany actual-
ly held a majority of all the stock of the In-
surance Company, and after that time
though it bad not control as a majority stock-
holder, It had and still has power to secure
control by exercising the option to take stock.
The Protective Company now holds about sis
thousand shares of the Insurance Company
out of about sixteen thousand outstanding.
About elgbty-five hundred shares remain un-
issued, and the Protective Company has the
right to take at par these unissued shares to
the exclusion of the other stockholders.
Between 1907 and the latter part of 1913
the Protective Company took under its op-
tion shares of the Insurance Company at par
and sold them in connection with Insurance
policies at from two to three times the par
value, and from 1913 to 1916 took none. But
In June, 1916^ after some of the stockholders
of the company had expressed dissatisfaction
with its course, and threatened to take legal
proceedings, the Protective Company took at
par thirty-seven hundred shares of the In-
surance Company under the option. Up to
a very recent date the officers and directors
of the Insurance Company held very few of
its shares, and were large holders of shares
of the Protective Company, of which thoy
were also officers and directors.
By the bill the complainants allege that
the plan of financing the Insurance Compa-
ny by the Protective Company was fraudu-
lent both Inherently and by the method of
carrying it out The plan briefly stated was
and is (and as to this there is no dispute)
that the Protective Company should furnish
to the Insurance Company money to acquire
new business for the latter, and in return
therefor the Protective Company was given
a perpetual and exclusive right to subscribe
to the stock of the Insurance Company at
par, the Insurance Company being liable to
return all the money advanced, with Interest,
only out of surplus in excess of ten thousand
dollars, or in case of liquidation out of the
assets of the company.
It is alleged and shown that there were
certain deceptions practiced by the officers
of the two companies, who were the same
persons, and particularly in the entries in
the books of the Insurance Company and in
Its reports, official statements, which were
misleading and evidence of a fraudulent pur-
pose.
It is also alleged that dividends were paid
otherwise than from earnings, and that the
■capital of the company had been Impaired.
[1,2] But Independent of these and some
other considerations. It should be first deter-
mined whether this agreement or optl<Mi to
purchase was vaUd, or invalid. If invalid,
then what relief should be granted? For the
complainants it Is urged that the stock op-
tion was in itself Ulegal and void, (1) because
it violates the fundamental right of stock-
holders to share equally in the distrlbutloa
of unissued stock, or to purchase the same
upon equal terms and to maintain the same
proportion of the control of the company as
existed prior to such issue; and (2) because
it is in violatl(»i of the rule against perpetu-
ities.
Was the option contract Invalid because
It destroyed the pTe-emx>tlve right of stock-
holders to take the shares? The risJit of
shareholders to subscribe for new shares Is-
sued by a corporation as an increase of its
capital stock in preference to outsiders is
well established, and is called a shareholder's
pre-emptive right 1 Machen on Corpora-
tions, S 608; 7 Ruling Case Lew, 176 r 1
Cook on Corporations (7tb Ed.) |{ 70, 286.
614, 663. In some cases it has been held that
the right does not exist as to the original
authorized capital, but only as to an increase
of authorized capitaL 1 Machen on Corpora-
tions, i 61& But this is not clear, and It is
difficult In particular cases to detennlne
what can rightly be called a new issue of
stock, as for instance, where the authorized
capital stock was not increased by authority
of law, and the new issue of shares were
part of the capital stock as originally au-
thorized, but Issued after a substantially
long period subsequent to the original issue
of shares. New shares cannot be issued for
an improper purpose, as for instance, to
maintain control of the corporation. These
principles are stated in 2 Cook on Corpora-
tions (7th Ed.) i 614.
[3] But these principles have no applica-
tion to this case. In 1906 Paul Bright was
given the exclusive right to take at par one
hundred thousand dollars of shares of the
company without limit of time. At that time
the legally authorized capital stock of the
company was and still is two hundred and
fifty thousand dollars, and one hundred thou-
sand dollars of it had then been Issued and
was then outstanding. Those who then bdd
shares of stock of the company could proba-
bly have asserted their rights In opposition
to this grant to Bright. Whether they can
still do so need not now be considered, for
none of them are complainants in this case.
All of the complainants acquired their stock
subsequent to the original and the later
action of the company granting and confirm-
ing the option, and subsequent to the meet-
ing of the stockholders thereof held lu 190d.
at which meeting the action of the board of
directors in giving the original aptXoti and
in extending it to any shares to be issued
after the capital stock had been increased be-
yond two hundred and fifty thousand dol-
lars was oonflrmed by the stodiholdefK.
None of the complainants, except Maginnis,
are shown to have had knowledge of the a^
tlon prior to acquiring their shares. Magin.
nis when he bought his shares knew of tbe
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KINGSTON V. HOME LIFE INS. CO. OP AMEUICA
901
affairs of the company fully, and presumably
knew of this option.
One who acquires shares of stock of a
corporation after the corporation by action
of its officers, directors and stockholders has
given to a stranger an exclusive right to take
and pay for at par all of the unissued shares
of the company, cannot assert as against the
company, or the holder of the option, the
general pre-emptive right of shareholders of
a corporation. No authority was cited or
found for or against the above proposition,
but it is clearly sound and based on funda-
mental considerations. As between the cor-
poration and the holder of the option such a
contract is valid, and can be held Invalid
only at the Instance and for the benefit of a
stockholder who asserts his right to take the
stock, and whose right has been impaired by
the giving of the option. If, however, before
a particular person became a shareholder an-
other person has acQulred an option incon-
sistent with the pre-emptive right, then the
latter Is subservient to the former right
When the original contract was made be-
tween Bright and the company, it might
have been Invalid for lack of consideration ;
but when later the stockholders at the meet-
ing in 1909 ratified it and extended Its scope,
there was then consideration based on the
advances or other financial assistance given
and continued to the company by the holder
of the option.
Did the extension of the option so as to
make it include shares to be thereafter Is-
sued by the company when the capital stock
should be Increased by law Invalidate the
agreement, or give the complainants a right
to have it declared inoperative in so far as
It limits their rights as stockholders? Prob-
ably not, for reasons hereinabove stated.
Bnt inasmuch as the limit of authorized capi-
tal stock has not yet been increased, the
question is not now a vital one fbr the
present solution.
[4, S] It is Immaterial that some of the
complainants bad no tcnowledge or notice of
the existence of the option before acquiring
their shares, for there was no representation
by the company, or the holder of the option,
respecting unissued shares upon wMcb the
complainants relied to their detriment or dis-
advantage. The right to take at par stock
which was salable at more than par did not
necessarily Invalidate the option; that
would depend on circumstances. It might be
80 inequitable, oppressive, or unjust as to
shock the conscience of the court, or be
fraudulent or without consideration. But It
Is not clear that this contract may be so
characterized. While Bright held the option
it may not have been advantageous to the
Insurance Ciompany. But after it bad been
acquired by the Protective Company and that
company had made large advances of money
to the Insurance Company to enlarge Its busi-
ness and Increase Its profits and stability. It
was not and is not so glaringly inequitable
as to call for Its annulment by this court,
particularly If, as the complainants urged,
the advances were contributions, made with-
out expectation of repayment.
For these reasons, then, the complainants
are not entitled to have the option contract
set aside or affected in so far as It relates to
the stock, of the company as originally au>
thorized, without deciding upon their rights
with respect to shares In case -the capital
stock of the company be increased.
[6] Does the contract made by the Insur-
ance CJompany with Bright, and subsequently
assigned to the Protective Company, violate
the rule against perpetuities? Is a contract
by which one corporation gives an option to
take and pay for at a fixed price all of the
unissued shares of Its capital stock invalid
because it violates the rule against perpe-
tuities? According to the authorities dted
by the complainants, an unlimited option to
purchase land is a contract in restraint of
alienation of land and against public policy,
and therefore void. Barton v. Thaw, 246
Pa. 348, 92 AtL 312, Ann. Cas. 1916D, 570;
London, etc., Co. v. Gomm, 20 Ch. Div. 562.
In general the rule against remoteness in
the time of vesting future interests applies
to personalty as well as realty. Lewis on
Perpetuities; Gray on Perpetuities, { 202.
But almost all of the cases in which the rule
has been applied to personalty the Instru-
ment by which the future right was created
related to land, such as leaseholds or chattels
real. In three Maryland cases cited the rule
was applied to bequests of future interests in
slaves. Johnson v. Llsh, 4 Har. & J. (Md.)
441; Matthews v. Daniel, 3 N. C. 346; Hat-
ton V. Weems, 12 Gill & J. (Md.) 83.
However, the real purpose of the rule was
to prevent inalienability of land, 1. e., to
prevent Its being tied up for an unreasonably
long period whereby it was kept out of com-
merce. Public policy was the reason for the
rule. This was peculiarly applicable to land
and Interests In land.
Has It any relation to contracts as to
shares of stock of a private business corpora-
tion? There is no principle of public policy
involved. It can make no diiference to the
general public, or to any one other than
stockholders of that particular company. To
tie up land, which is the source of all wealth.
Is quite a different thing from giving an un-
limited option to buy all unissued shares of a
corporation doing a private business. No
case has been produced or found which so
extends the rule respecting real estate and
Interests In real estate, however sound,
wholesome and well established the rule be
with respect to land, and I do not feel jus-
tified in extending it to the stock option, and,
therefore, cannot hold the option contract
entirely Invalid for either of the reasons
urged.
[7] Was the plan by which financial assist-
ance was given to the Insurance Company by
the Protective Company Illegal or unfair to
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101 ATLAJJTIO RBPOBTBR
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the Insurance Company? It was clearly
sbown that free working cash capital was
very important to the rapid development and
success of the business of a life insurance
company, and particularly where it is issu-
ing policlea called industrial insurance. An
important element in such success is the size,
or number, of policies issued. Where the
company is a new one the coat of getting new
business for a time exceeds the premiums re-
ceived from holders of the policies. The
capital stock of the company cannot under
the laws of this State be used for such work-
ing capital, for it must be maintained intact
The working capital is secured by accumu-
lating, or acquiring surplus funds for the
purpose, and this surplus may be obtained
by contributions thereto by stockholders as
a part of their subscriptions to ehares of
stock, or from a group of stockholders. Of
course, surplus earnings may be used for
such working capital. An insurance compa-
ny may make earnings from several sources,
e. g. (1) by gains on mortality ; (2) excess in-
terest earnings; (3) margins on surrenders
and lapses, each of which have a technical
meaning, and may be calculated with rea-
sonable certainty. These earnings must be
reported to the Insurance Commissioner,
and In a 8toc4c company issuing such policies
as the Home Life Insurance Company of
America belong to the shareholders, and may
be used to acquire new business. But as stat-
ed above, these sources do not provide suffi-
cient money to obtain a rapid growth, and
additional money is necessary and is usual-
ly obtainable by contributions or advances.
The Protective Company was organized as
a holding company and to supply such sur-
plus to the Insurance Company and did make
contributions or advances from time to time
aggregating about four hundred and seven-
ty thousand dollars, of which about eighty
thousand dollars had been repaid. In return
for this financial help the Protective Compa-
ny had an exclusive right to take at par the
unissued stock of the Insurance Company
and the stockholders of the Insurance Com-
pany at the meeting in January, 1908, voted
that all of its surplus be paid to the Protec-
tive Company for such ''financing." Later
the repayments were to be made only out of
surplus in excess of ten thousand dollars, or
in case of dissolution out of the assets of the
Insurance Company as a debt.
In substance, then, the Insurance Company
obtained from the Protective Company money
with which to acquire new business under an
agreement to repay the money only from
its surplus In excess of ten thousand dollars,
except In case of its dissolution, when the
moneys furnished were to be treated as a
debt due from the Insurance Company to the
Protective Company. Was this unlawful or
unfair?
In simple terms, the question is whether
an Insurance company may lawfully make a
contract by whidt It Iwrrows money to be
spent in acquiring new business and agree to
repay the money only out of Its surplus earn-
ings, unless the company be dissolved, and
then the money borrowed Is to be treated as
other debts of the company are treated?
More broadly stated the question is, wheth-
er it is wrong for an Insurance company to
borrow money to be spent to acquire new
business? There Is but one rational answer
to that query. It being shown that such a
use of money by an insurance company was
evidence of good business management, was
like sowing seed for a future sure harvest,
and there being no evidence of inefficiency in
the expenditure of the money, it is not wrong
for this insurance company to borrow money
for such purpose. If properly spent the
money brings in a crop of good business, and
until the new business comes in the value of
the company is increased by the expenditure
which will bring in the profitable new busi-
ness. It certainly Is not wrong to borrow
money for such purpose, if the borrower is
not obliged to repay it except from the profit
he makes in the use of it Sudi a Iwrrower
cannot be made insolvent because of the bor-
rowing of the money, for he cannot be made
to repay it unless he makes, a profit from the
use of it The capital of the Insurance Com-
pany could not have been impaired by bor-
rowing money for such purposes In sndi
manner. As explained qbove, it could never
be impaired if the debt is payable from sur-
plus, which is net profit, or earnings. Nei-
ther would it be impaired if payable gener-
ally, because for every dollar so spent for
new business the value of the business wonld
be increased to that extent so that the vol-
ume of new business obtained from the use
of the money so borrowed would be an asset
and so balance the liability arising from tlie
loan of the money. This seems a funda-
mentally sound and common sense proposi-
tion. Fiirthermore, the soundness of the
proposition was apparently shown by the
calculations as to the present liquidating val-
ue of the business of the company based oa
prices usually paid on sales of such a busi-
ness. See Schedule O of Defendants' Exhibit
No. 23 and statement and testimony of Hog-
gins in relation thereto.
Therefore, if the above principles are
sound, and they seem to be so, the plan b;
which the Protective Company advanced or
loaned money to the Insurance Company to
be used for the acquisition of new business
and to be repaid with interest, only from
surplus, or according to the later arrange-
ment, only from surplus acquired by the
Insurance Company in excess of ten thou-
sand dollars, and not to be treated as a lien
or debt due by the Insurance Company, ex-
cept in case of its dissolution, was not in-
valid, fraudulent, oppressive, unfair, nnrea-
sonable, unwise, or objectionable in any way.
so far as the Insurance Company and its
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KINOSTOK ▼. HOME LIFE INS. OO. OF AM£JEII0A
903
(tocUtoIdeiB «ere concerned. It wonld not
have been objectionable If the money had
been loaned to the Insurance Company by
Its president, or by its officers, or by its of-
ficers and directors, or by any of its stock-
holders. Nor would ' It be objectionable If
made by another corporatioo the officers and
directors of which are also tbe officers and
directors of the Insurance Company, even
if the lending company owned a majority of
the shares of stock of the Insurance Com-
pany, for the contract itself being unobjec-
tionable it is quite nnimportant as to the
Boorce from which the money is borrowed.
Indeed, it would be more likely to be bene-
ficial to the Insurance Company, and so to
Its stockholders, if the money was advanced
by persons having an interest in it as stock-
holder or officer, for obviously the probability
of its being used most efficiently and profit-
ably is Increased thereby.
In this case, then, the complainants cannot
base any relief on the fact that the Protective
Company advanced money to the Insurance
Company to be used to acquire new business
under a plan by which the Insurance Com-
pany agreed to repay the loans only out of
its surplus In excess of ten thousand dollars
and under an agreement that the moneys
should not be treated as a debt except In case
the Insuitince Company be dissolved. Nor
would the result be held different because the
Protective Company had been given by the
Insurance Company the exclusive right to
take and pay for its unissued shares of stock
at par, and so had secured a permanent iiow-
er to control the Insurance Company. Nei-
ther the plan by which the Insurance Compa-
ny was assisted financially, nor the method of
executing it, was unfair or illegal, except as
to the misrepresentationa and concealments
to be considered later.
It is contended strongly for the complain-
ants that the plan of the Protective Company
for financing the Insurance Company must
have been unfair and unlawful because so
many of the dealings between the two compa-
nies were misrepresented and concealed in
the books of the Insurance Company and in
its reports to the Insurance Commissioners,
the books of the Insurance Company being
kept by or under the direction of the same
person or persons who kept the books of the
Protective Company. It was shown that un-
til 1913 advances were charged on the books
of the Protective Company to the profit and
loss account, which means that they were not
considered as assets, or as debts to be repaid
to the Protective Company. The books of the
Insarance Company show no liability what-
ever, contingent or otherwise, to repay the
moneys advanced, although they are shown
on the books of the Protective Company
since 1013 as an asset. In the reports to the
Insurance Commissioners the advances were
not stated as liabilities, although the Insur-
ance Company was called upon to state in
the report all its liabilities. There were ac-
tual misrepresentations in these reports as
to the source from which the advances were
received, they being called "bonus on stock."
Also misrepresentations as to the expendi-
tures of the moneys so advanced, payments of
interest being entered as cost of business pur-
chased, or agents' balances and otherwise.
These misrepresentations, concealments
and irregularities of stating the dealings oT
the two corporatlcms cannot be Justified. If
the plan of cooperation was considered fair
and right, why conceal or misrepresent the
transactions? The complainants insist that
the purpose was fraud on the stockholders
who were solicited to take shares. But this
does not get very tar if the plan be in fact
innocent in its scope and purpose, and not
unfair or unlawfuL The deceptions, there-
fore do not give the complainants any right
to relief, which is the only question before
the court Stockholders' rights are not af-
fected by reason of the deceptions and this
court need not act for the Insurance Commis-
sioner, unless requested to do so. It is quite
Immaterial, though Interesting, that until
the litigation started the officers and directors
of the Insurance Company held few of its
shares, while the same people were large
holders of shares of the Protective Company.
There con be no real doubt that there is
now a binding obligation by the Insurance
Company to repay to the Protective Company
the advances from surplus in excess of ten
thousand dollars. Even if prior to 1915 the
moneys received from the Protective Compa-
ny by the Insurance Company were contribu-
tions or gifts, and so not to be repaid, and
were advances or loans to be repaid, still
after the action of the stockholders at the
meeting held that year there was no doubt
but that they constituted a debt to be repaid
in the manner agreed upon.
Has the investment of the stockholders
been Jeopardized by the illegal payment of
dividends and by an impairment of the cap-
ital stock? Each of these charges is grave
and involves serious consequences if suatain-
ed by the evidence.
[II The prayer of the bill on the subject is
for an injunction to prevent the officers of
the Insurance Company from declaring or
paying any dividend upon its stock except out
of actual earnings. This may be granted
without much consideration of the facts, be-
cause it would be but a declaration of tho
statute law of the State which i)ermlts divi-
dends to be paid only out of surplus or net
profits arising from the business of the com-
pany.
It is extremely difficult for anyone who
has not had large experience in the prac-
tices and iHJok-keeplng theories of life insur-
ance companies, or as an expert actuarial ac-
countant, to decide what in a given case con-
stitutes the surplus or net profits of the
business of an insurance company. Some
things seem clear even to me, and one is that
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101 ATIiANTIC RBPOBTEB
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an estimated Increase In the value of the
building owned by the Insurance Company
and occulted by Its officers and employees,
however accurately the increase be estimated,
la not a net profit arising from the business
of the company. If it la an Investment of
capital of the company its increased value
when realized by a sale may perhaps be
treated as a profit, but tmtll realized it Is
surely unwise. Inaccurate and wrong to so
regard It and pay out money based on such
an estimate, for it is only a guess, and if a
correct one it may become Incorrect inter
when the conditions which produced the esti-
mated Increase of value change.
Again, a profit of the business of fifteen
thousand dollars is not made if an officer of
the company authorized to buy for the com-
pany with its money real estate for sixty
thousand dollars buys it for forty-five thou-
sand dollars. The assets of the company are
not increased, and the saving is not a profit
of the business which can be paid out in
money as dividends.
The defendants undertook to show by an
actuarial insurance expert that all the divi-
dends declared were earned, and for this
purpose a schfidule with complicated calcula-
tions made for the purpose was submitted to
prove the fact The data of Schedule B of
Defendants' Exhibit No. 23 were taken from
the books of the two companies, but the basis
of a very important part of the calculation
was arbitrarily selected by the expert, and
as there would be differences of opinion as
to this selection, the whole calculation had
little probative value. Taking the funda-
m«>tal fact as shown by the schedule and not
disputed, the income was less than disburse-
ments, and the attempt to explain the result-
ant deficit was not convincing.
[1, 10] Assuming, then, that dividends were
paid otherwise than out of the surplus or net
profits of the business of the Insurance Com-
pany, what power has this court to give re-
lief In this case by reason thereof? The
statutory liability of those officers who de-
clare the dividend could not be enforced
against them in this cause, for they are not
parties to it. An injunction against future
unlawful payments would, of course, be made
In general terms. But that was hardly the
purpose of the bill. The illegal payment of
dividends would not of itself justify the ap-
pointment of a receiver. Such payments may
be part of an unlawful plan, or be evidence of
such gross incapacity, recklessness and fraud
as to justify this court in taking the control
and management of the company from its
officers and directors for some useful purpose.
But in this case the only purpose of a receiv-
ership would be a winding up and liquida-
tion, for a receivership to carry on Indefinite-
ly the business of the company would be an
Intolerable suggestion, as was found by the
court in Carson v. AUegliany Window Glass
Co. (0. C.) 189 Fed. 791, 799.
If the complainants desire to porane this
branch of the case further by amendments
to the prayers of the bill, it will probably
be necessary to refer this branch of the case
to an insurance expert as Master to ocmsider
the evidence and report thereon whether dlv*
Idends have been declared otherwise than
from the surplus or profits of the business
of the Insurance Company. An opportonity
will be given to counsel to be heard on tbli
point before entering a decree.
[11] Has there been an lmpairm«it of the
capital of the Insurance Cmnpany? As evi-
dence of the impairment of capital it is urged
by the complainants that the value of the
real estate in Philadelphia owned by the In-
surance Company, and whidi is stated in
its reports to be one hundred and eighty-
three thousand dollars, is much exaggerated
and should not be in excess of one hundred
thousand dollars; that on December 31, 191S,
the surplus as shown by the last report of
the company made to the Insurance Commis-
sioner was about twenty thousand dollars;
that If the real estate was overvalued more
than twenty thousand dollars, the capital
was impaired; and that if the advances by
the Protective Company to the Insurance
Company, aggregating about three hundred
and sixty thousand dollars, constitute a debt,
then the capital of the Insurance Company
is entirely wiped out.
From the testimony It Is quite clear that
the contention of the complainants on this
point is correct The value of the real es-
tate was much too high as reported in the
statements of the Insurance Company. Dif-
ficult as it is to estimate values even of real
estate, it is surely unwise to value this
property at one hundred and eighty-three
thousand dollars, and it is certainly worth at
least twenty thousand dollars less than that
sum and nearer one bundled thousand dol-
lars than one hundred and eighty-three thou-
sand dollars. The extent of the impair-
ment of capital is not important here. But
it does not follow that this court should
for that reason now wind up the affairs of
the company by a receivership. The stat-
utes of the State give to the Insurance Com-
missioner large powers and impose upon
him Important duties respecting the conduct
of business of insurance companies doing
business here. The question of the impair-
ment of capital is peculiarly for his consid-
eration, as also would it be his duty to de-
cide what the consequences thereof would be,
and this court should not act so as to inter-
fere with his official disposition of the facta
— «ertalnly not in advance of his acting or
refusing to act There Is, however, no in-
tention of disclaiming the jurisdiction of this
court by declining at this time to exercise it
It is a notable fact, apparently established
by the testimony of the actuarial expert, that
the liquidating value of the business of the
Insurance Company la sufficient to repay the
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WILLIAMS T. BELTZ
905
ProtectlTe Company all their adrances and
still make the net value of each share of the
lusnrance Company from about twenty-two
dollars to twenty-four dollars per share, the
par value being ten dollars. See Schedule O
of Defendant's Exhibit Na 23. There are
other signs that the connection of the two
companies has been beneficial rather than
detrimental. This may not of Itself be an an-
swer to all the charges made in the bill, but
may fairly Influence judicial discretion as
to remedies.
[12] Should the Walsh contract be an-
nulled? It was claimed by the complainants
that Basil S. Walsh, the president of the
company, obtained from the company in 190S
a contract concerning commissions whidi
was anfalr to the company, and that in the
report to the Insurance Commissioner this
was concealed. It Is true that when called
upon to state In the report whether any of
the officers of the company were paid com^
missions, Walsh under oath answered no.
His explanation is that the contract had so
far been unprofitable and for that reason
be thought he was answering correctly. But
this is not a satisfactory explanation. He
assumed as worth its face value a certain
worthless account owing to the Insurance
Company, and by reason thereof the company
was able to make a better showing in its
reports to the Insurance Commissioner. In
consideration of the assumption of the worth-
less account Walsh receives a very large
part of the premiums on commissions. It
does not appear that the company is any
better oflT by reason of the contract, and on
the other hand it does not seem so grossly
tmfair to the company as to Justly action
by this court to annul it, if the court has a
right to do so. Mr. Walsh has in his testi-
mony offered to surrender his contract if it
Is considered unfair. But his deceptive state-
ment in the report is apparently the worst
feature of the matter. By the testimony he
did not vote on the motion when the board
of directors decided to accept his prtq)osi-
tion, and there appears to be no breach of
the trust arising from bis official position in
bis dealings with the company. Certainly
the making of the contract does not Justify
the appointment of a receiver of the com-
pany for any purpose, and there is no spe-
cial prayer for relief as to the contract
On the whole, then, notwithstanding the
deceptions, concealments and misstatements
In the book-keeping and reports to the In-
surance Commissioner, and though dividends
may have been declared other than from
surplus or net profits of the business of the
company, and even though the capital of the
company may In a sense have been impaired,
still neither one nor all of these misdeeds,
indefensible and as reprehensible as they
are, Justify this court in taking action
against the company, such as is sought, or
I any other. Some of the ills are righted by
exposure, others may be righted by the In-
surance Commissioner, and all of them to-
gether do not warrant a court in taking the
administration of the affairs of the company
from the hands of its officers.
Having determined that the stock option
was not invalid, and that the arrangement
by which the Protective Company advanced
money to the Insurance Company was not
Illegal or nnfalr, there is no relief which
this court can grant to the complainants, ex-
cept an injunction against declaring divi-
dends except out of surplus or net profits.
It should be commented that the books
and papers of both defendant companies
have been voluntarily laid open to full in-
spection by the complainants.
Unless, therefore, the complainants be giv-
en some relief based on the payment of divl^
dends, the dismissal of the biU would fol-
low.
Inasmuch as the concealments and decep-
tions in the reports made by the Insurance
Comiwny were probably largely responsible
for litigation, a part at least of the costs
should be put on the two defendants, for the
identity of their managers imposes on eadi
of them a responsibility for the situation.
WILLIAMS V.
« Boyce, EC4)
BELTZ et aL
(Superior Court of Delaware. New Castle.
June 4, 1917.)
1. GoKPOBATiORs «=s>116— Sam of Stock—
Wbat Law Govesnb.
An action to recover damages for alleged
fraudulent misrepresentations by defendant with
rMpect to sale of stock in a mining company,
where the sole and the circumstances of the
sale oecnrred in Pennsylvania, was governed by
the law of that state in so far as applicable to
the facts in the case.
2. CoBPOBAnoNs «=3ll6 — Satx of S-rooK—
FBAtrDtTLENT RePBEBXI«TATI0N9— VaI.UK OF
MtNiRo Stock.
A representation by defoidant, on Ute sale
of stock in a mining company, that its liabili-
ties then amounted to |1,6CI0, and a fUlare to
disclose the existence of defendant's contract
with the company, capitalized at $25,000, where-
by be was to receive $36,000 out of the com-
pany's net profits in payment of money previ-
ously spent by him in its development, was a
misrepresentaaon of a fact affecting the value
of its stock.
On. Motion for New Trial and Arrest of Jndf-
ment.
3. COBPOBATIONB «=> 121(7)— SaXK OF STOOK—
Meabube OF Dauaoes.
The measure of damages for a false represen-
tation of a material fact affecting the value of
mining stock is the difference between the real
value of the stock at the time of the purchase
and what the purchaser was induced to pay
by reason of the misrepresentation.
Action of deceit, begun by foreign attach-
ment, by Henry L. Williams against John
Beltz and Francis E. McGUUck. Directed
^s>For otbar case* see
mme toplo and KKT-NUMBBR In all Ker-Numbered DtgMtai and Indaza*
Digitized by LjOOQ IC
906
101 ATLANTIC BBPOETER
CDd.
verdict for defendants. Motion for new trial
and in arrest of Judgment denied.
Argned before BICE and HBISESU 33-
Daniel O. Hastings, of Wilmington, and
James Balpb, of PJttsbnrg, Pa., for plain-
tiff. Edward G. Bradford, Jr., of Wilming-
ton, and Tbomas Watson, of Pittsburg, Pa.,
for defendants.
The plaintiff seeks to recover damages
from the defendants, for alleged fraudulent
misrepresentation by the defendants with
respect to the sale of stock in a mining com-
pany to the plaintiff.
The plaintiff claims that J<An BeltB, one
of the defendants, owned the mining inter-
ests in, and was engaged in the development
of, a lead mine In Galena, Illinois; that
Beltz was In need of money for developing
the mine and made arrangements with one
Garrison, in Pittsburg, Pennsylvania, to se-
cure for him the necessary money. The
plaintiff in October, 1912, through Garrison,
became Interested, wltb the idea of investing
money in the venture. The plaintiff went
to Galena with Beltz to inspect the mine;
while on the trip be made inquiries of Beltz
about the liabilities of the mining company,
which had been organized, and he was at
the time informed by Beltz that the com-
pany's liablUtles amounted to about $1,600.
The plaintiff in April, 1913, invested ?1,000
in the company, for which he received 20
shares of the company's stock. The capital
stock of the company amounted to $10,000.
It was Increased to $26,000 in September fol-
lowing, and at that time the plaintiff In-
vested an additional $1,000, and $1,000 more
in November, for which he received 40 more
shares of stock In the company. A little
In excess of $24,000 worth of the stock was
sold and the plaintiff owned approximately
one^elghth of the stock of the company. In
the latter part of November, 1913, the plain-
tiff first learned of the existence of a con-
tract between Beltz, who was a director In
the company, and certain other directors and
stockholders under the terms of which Beltz
was to receive 50 per cent, of the net profits
of the company until the sum of $36,000,
which he had previously expended in the
development of the mine, had been paid to
him. Belte In November, 1914, brought suit
In the Pennsylvania courts against Samuel
Garrison, F. E. McGilUck (one of the de-
fendants herein), George H. Futch, J.- R
McGlnnls, and William I. N. Lofland for the
enforcement of the contract, the Pennsyl-
vania courts held the contract to be bind-
ing and enforceable against the . company,
and Belts was paid the $36,000, which was
to be paid to him, under the terms of the
contract, out of the net profits of the com-
pany. The plaintiff further claims tliat by
reason of the payment of the $30,00() to Beltz
the shares of stock held by the plaintiff In
the company have greatly decreased in value.
The sJc'tendauts deny that.thei". wore guilty
of any ftandnlent misrepresentation whatever
with respect to the sale of stock to the plain-
tiff and contend that the iasnea In the pres-
ent case were determined in the form» snlt
in the Pmnsylvania courts, in which suit
Henry L. Williams the plaintiff in the pres-
ent action upon his own petition was made
<Hie of the defendants. The def«idants far-
ther contend that the plaintiff did not snf-
fer damages for the reason that the com-
pany paid dividends to Williams to the ex-
tent of 365 per cent, on his investment
The plaintiff at the trial introduced evi-
dence to show the allied fraudulent mis-
representation, and the circumstances sor-
rounding it; the amount of capital stock Is-
sued by the company and the proportionate
share owned by Williams; the terms of the
contract and the decree of the courts of
Pennsylvania with respect to it and the pay-
ment by the company of the $36,000 to Belts
under the terms of the contract.
BICE, J., after stating the facts as alMve,
delivered the opinion of the court.
[1] The seventeenth prayer of the defend-
ants is In the following language:
"That under all the evidence in this case It
is the duty of the court to direct the jury to
find a verdict for the defendants."
As a preliminary statement, we will say
that it is admitted by counsel for the plaintiff
and defendants that, as the alleged fraudu-
lent concealment of the liabilities of the com-
pany, the sale of the stock and the drcom-
stances surrounding the same, took place In
the state of Pennsylvania, the law of that
state in so far as the same may be applicable
to the tacts In this case, should control this
court in the consideration and determina-
tion of the questions of law here raised.
With respect to the defendant Francis E.
McGilUck, we now say that there is no evi-
dence In the case to support the plaintiff's
allegation of fraud against McGliiick, aod
therefore it is our duty to direct the jury to
find a verdict for the defendant McGUlicb.
Counsel for the defendants oont«id tbat
the court should direct the Jury to find a ver-
dict for the defendant John Belts, for the
reason that the rule of the Pennsylvania
courts with respect to damages in an ac-
tion of viecett for fraud, in the sale of stodc
In corporations, is the differwice between
what the plaintiff paid for ttie stock and its
actual value at the time it was purchased
and that there is no evidence in tills case to
show that at the time of the purchase the val-
ue of the stock, was any less by reason of the
alleged misrepresentation than the plaintiff
paid for it In support of this contention he
dtes the recent case of Curtis v. Buzard, 254
Pa. 61, 98 AtL 777. The plaintiff on the
other hand argues that the court should not
give binding instructions in favor of tlie de-
fendant Beltz, for the reasons assigned by
the defendant, and contends that in this case
Q» plaintiff is entitled to such damases as
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WILUAMB V. BELTZ
907
were the nataral and necessary result of the
false mlsrepjesentation, the measnre being
the amount the plaintiff wouM have received
of the 136,000, which the company paid to
John Belts, the defendant, on that part of
plaintiff's stock purchased before the alleged
fraad wax discovered.
In support. of Ills contmtioa, counsel for
the plaintiff dted the following cases, many
of the cases being Pennsylvania ones : Smith
on the Law of Fraud, ( 28»; 20 Cyc. pp. 136,
140; Sutherland on Damages, I 1171; Veor
nock T. TUford, 17 Pa. 466; Thompson t.
Burgey, 36 Pa. 403; Stetson v. Croskey, 62
Pa. 230; Seigworth v. Leffel, 76 Pa. 478;
Bice T. Olln, 79 Pa. 391; Gufley v. Clever,
146 Pa. 648, 23 Atl. 161; High v. Berret, 148
Pa. 261, 23 Atl. 1004; Lukens v. Aiken, 174
Pa. 152, 34 AtL 675; Weaver v. Cone, 174 Pa.
104, 34 Atl. 551 ; Drenning & Long v. Wesley,
189 Pa. 160, 42 AU. 13; West Homeetead v.
Erbedc, 239 Pa. 192, 86 Atl. 773; Curtis v.
Bnzard, 264 Pa. 61, 98 AtL 777; Medbnry v.
Watson, 6 Mete. (Mass.) 246, 39 Am. Dec. 726;
Morse v. Hntchlns. 102 Mass. 439; Thomson
V. Pentecost, 210 Mass. 223, 96 N. £]. 335;
Whitney v. Allaire, 1 N. Y. 305; Benedict v.
Trust Co., 91 App. DIv. 108-107, 86 N. Y.
Sn]n>. 370; Murray v. Jennings, 42 Conn.
9. 19 Am. Bep. 527 ; Gustaf son v. Rustemeyer,
70 C<mn. 125, 39 AU. 104, 39 L. R. A. 644, 66
Am. St Bep. 92 ; Shanks v. Whitney, 66 Vt
405, 29 Atl. 367; Nysewander v. Lowraan,
124 Ind. 684, 24 N. E. 355 ; Chapman v. Bible,
171 Mich. 663, 137 N. W. 633, 43 L. B. A.
(N. a) 378 ; Kendrlck v. Byus, 225 Mo. 150,
125 S. W. 937, 135 Am. St. B^. 685; Drake
V. Holbrook (Ky.) 66 a. W. 512.
It appears from an examination of these
cases that the courts of Pennsylvania, as
well as many other courts, recognize the rule
of damages In actions of deceit for fraud-
ulent misrepresentations affecting the value
of the property whether real or personal, to
be the difference between the price paid and
what the value would have been if it had been
as represented.
[2] Before considering the question whether
^tber rule, and, if so, wliich one, should ob-
tain In this case, it is necessary for us to
first determine whether the alleged fraudu-
lent mlsTepresentation on the part of the de-
fendant was one affecting the value of the
stock purchased, or whether it was of such
a nature that it would not affect the value of
the stock purchased. If it was of the class
which would affect the value of the stock
purchased, then one of the rules of damages/
recognized by the Supreme Court of Penn-
sylvania should obtain; if it should prove to
be of the other class, then neither rule would
aiiply and in the at)8<>nce of Pennsylvania de-
cisions, it would be necessary for uis under
such circumstances to ascertain the true
measure of damages.
The misrepresentation alleged was the fail-
ure of the defendant Beltz, when the plain-
tiff inquired about the IlabilltleK of the com-
pany, to disclose to the plaintiff the existence
of a contract Belts had with the company
whereby he, Beltz, was to receive from the
company the sum of $36,000, to be paid out of
the net profits of the company. While those
interested in the company, and those who
later became interested, undoubtedly had
great expectations of profits, it is admitted
by all that for more than a year there were
no profits. At the time the plaintiff made his
first Investment the authorized stock of the
company amounted to $10,000. The amount
of stock was increased ffom time to time
until it reached the sum of $25,000, and as the
Increases of stock were made, the plaintiff
purchased additional stock until he had pur-
chased $3,000 worth of stock before he knew
of the existence of the outstanding contract
of the company with Beltz.
The existence of a contract for the payment
of $36,000 out of the net profits of a company
with authorized stock to the amount of $10,-
000, or even $25,000, is surely a matter for a
I)ersOn contemplating the purchase of stock
in the company, to consider before investing
in the company notwithstanding the profits
were of a purely speculative character. It
is such a matter as would probably make the
stock worth less than if the contract had not
existed. We therefore are of the opinion that
the alleged misrepresentation wok of a fact
affecting the value of stock of the company.
The plaintiff has not introduced evidence
to show that the value of the stock was at
the time of purchase or at any time there-
after affected by reason of the alleged mis-
representation. However he does claim that
he would not have invested in the stock of
the company if he had had knowledge of the
contract Beltz had with the company. While
this may be true, yet the fact remains that
the alleged misrepresentation was one in our
opinion, within the class of those affecting
the value of the stock, therefore he is bound
by the decision of the Pennsylvania courts
with respect to the measure of damages iu
su«di cases.
As in our opinion the alleged misrepresen-
tation comes within the class of cases affect-
ing the value of the propeity purchased, we
will now consider whether the plaintiff suf-
fered pecuniary loss or damage under the
rules enforced in the Pennsylvania courts,
with respect to the measure of damages in
snch cases.
In the case of Curtis v. Buzard, supra, the
court below in considering the measure of
damages in actions of deceit for fraud iu
the sale of stock used the following language:
"We are still of the opinion that the true
rule as to the measure of damages in an actioD
of deceit for fraud in the sale of stock is
• * * the difference between what the plain-
tiff was induced to pay for the stock and its
actual value at the tiae of the purchase."
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908
101 ATLAJNTIO REPOETEB
(Dd.
nils decision was affirmed bj tbe Supreme
Court of Pennsylvania.
It this Is the rule of the measure of dam-
ages In such cases In the courts of Pennsyl-
vanla, and we should adopt the rule here, it
would be decisive in this case and it would
be our duty to Instruct the jury to And a ver-
dict for the defendant.
However, without passing upon the ques-
tion as to the applicability of this rule in the
present case, we will pass to a consideration
of whether the other rule of the measure of
damages In actions of deceit for fraudulent
misrepresentations, recognized by the Penn-
sylvania court, in connectl<Hi with the facts
of this case and determine whether under
that measure of damages the plaintiff here
Is entitled to damages.
The measure of damages in such cases un-
der this rule is the difference between the
purchase price of the property and its value
if it had been as represented.
This brings us to the question of what un-
der tbe evidence in this case would have been
the value of the stock if it had been as rep-
resented. The evidence is: That the plaintiff
up to the time he learned of the existence of
the contract of Beltz, had purchased 60 shares
of stock at its par value of $50 per share.
Tliat some time thereafter Beltz brought
suit against the company to collect the $36,-
000 due him, out of the profits of the com-
pany under the terms of his contract, and
secured judgment. This judgment was paid
by the company. The payment of this sum
of money to Beltz might well have made tbe
stock of less value at the time, and if the
value of the stock had been decreased by
reason of Beltz being paid the $36,000, then
under the measure of damages in the rule
under consideration, the plaintiff would have
been entitled to damages to the extent of any
depreciation in value by reason thereof. If
there has been a fraudulent misrepresenta-
tion as charged. But there is no evidence
before us to show by reason of the payment
of the money by the company to Beltz, that
the stock of the company was depreciated in
value, at that or any other time.
Thus whether we apply to the facts of this
case the rule of Supreme Ck)urt of Pennsyl-
vania with respect to the measure of dam-
ages In action of deceit in the sale of stock
or the other rule recognized by that court
with respect to actions of deceit for fraud In
the sale of other property, the plaintiff is not
entitled to damages in this case for the rea-
son that there Is no evidence to show that he
suffered pecuniary loss by reason of the al-
leged fraudulent misrepresentation.
For the reasons assigned we are of the
opinion that it is our duty to instruct the
Jury to find a verdict for the defendants, and
we so instruct them.
Verdict for defendants.
Thereupon tbe plaintiff made a motion
for a new trial and arrest of judgment
RICB, J., delivering tlie opinion of tbe
court: In support of the motion for a new
trial, counsel for the plaintiff made an oral
argument and brlete in support of their con-
tentions were filed respectively by oonnsd
for plaintiff and defendant.
At the trial the court gave binding instruct
tlons to the jury to find in favor of the de-
fendant, for the reason that It had not been
proved that the plaintiff had suffered pecu-
niary loss as a natural and probable result
of the defendant's alleged misrepresentation.
And the court held at the time, whether the
measure of damages which should obtain in
this case, was the difference between what
the plaintiff was induced to pay for his stock
and its actual value at tbe time of purchase,
or was the difference between what he was
Induced to pay and what the Bto<!k woold
have been worth if it had been as represent-
ed, tbe evidence did not show that tbe plain-
tiff had suffered pecuniary damages.
[3] After a further consideration of tbe
facts of the case, the court are of the opSn-
ion that we probably were In error in some
of the reasons given by us In bidding that
under the second measure of damages the
plaintiff had not suffered pecuniary loss.
However, we are now of the opinion that the
true and reasonable measure of damages In
the present case is that laid down by the
Supreme C!ourt of Pennsylvania In the two
cases of High v. Berrett, 148 Pa. 203, 23 AtL
1004, and Curtis v. Bnzard, 254 Pa. 61, 9S
Atl. 777, to be the difference between the
real value Of tbe stock at the time of pur-
chase and what be was induced to pay by
reason of the false misrepresentation. This
api)ear8 to be the measure of damages recog-
nized by the Supreme Court of the United
States in the case of Smith v. Belles, 132 U.
S. 126, 10 Sup. Ct 39, 33 U Ed. 279, and
also by the English courts in the case of
Peek V. Derry, 37 law Reps., CSianoery Divi-
sion, 541.
The motion for a new trial is denied.
(U Del. Ch. <S6)
SCULIiT et aL v. AUTOMOBIO! riNANCB
CO. et aL
(Court of Chancery of Delaware.
1917.)
Sept 22,
1. CoRPOBA-noNS ^=»99(2)— Sale or Stock—
Insuiticibnt Conbioebation.
An issue of common stock, which alone haJ
voting power, by a corporation to an associated
corporation composed of the organizera of the
first company, in consideration of a transfer
of a valueless business idea, not salable or trans-
ferable, violated the Constitution and statutes,
such transaction being an actual fraud, and uo
pretended exercise of business judsment by di-
rectors could validate it.
^sFoT other casM ■«• mum tople and KBT-NUMBBR In all Ker-NumlMrad Diswta and InduM
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SC3ULLT V. AUTOMOBILE FINANCE CO.
909
2. Corporations <S=5>189(!^ — Acnow by
StOCKHOLDEBS — CANCEIiATION OF STOCK.
Preferred stockholders, acting for themselves
and other stockholders, and not for creditors,
may brini suit to cancel shares of common stock
illegally issued in consideration of a valueless
business idea, such action not being prohibited
by Constitution or statutes, although in the case
of a proceeding against delinquent stockholders
by or for creditors in case of insolvency, an ac-
tion at law is appropriate.
8. CoRPOKATioNS ^=90(1)— Stock Isbi^bd as
Fully Paid — Constitdtion and STATtrras.
Constitutional and statutory prohibitions re-
apecting issue of stock, except for property, do
not prohibit the issue of stock as partly paid for ;
Buch provisions meaning that stock cannot be
Issued as fully paid, so as to relieve the holder
from liability, until the transaction has been
paid for in money or other property.
4. CoEPOBATiONs «=>188(13) — Action by
Stockhoij>eb — Cancellation or Stock —
Relief.
lo a preferred stockholders' snit to cancel
■hares of common stock issued for a valueless
consideration, terms to protect and enforce all
stockholders' and creditors' rights may be im-
IK>8ed in granting relief.
8. CoEPOEATioNB <S=»189(5) — AonoN by
Stockholdeb — Cancellation of Stock-
Time OF Acquisino Stock.
Preferred stockholders could not be denied
relief in suit to cancel common stock issued for
a valueless consideration, because they acquired
their stock subsequent to the unlawful issue;
they being then ignorant of its unlawful char-
acter, and there being nothing to show their con-
sent, nor conduct cutting tihem off from such
remedy.
6. CoBPOBATioNS «=»189<5) — Prefebred
Stogkholdebs' Riohts— Issue of Coumon
Stock— IjEgality.
Preferred stockholders have a right to ques-
tion the legality of the issue of common stock,
particularly where the control of the company
IS in the holders of common stock, who alone
possess voting powers.
Bill by Cbarles Y. Scully and others
against the Aatomoblle Finance Oompany
and another. Demurrers to bill overruled.
H. H. Ward, of Wilmington, for complain-
ants. Martin E. Smith, of Wilmington, and
George J. Edwards, of Philadelphia, Pa.,
for defendants.
THE CHANOEIXOR. A demurrer has
been filed by each of the two defendants to
the bill. By the bill It appears that a group
of men organized two corporations under
the laws of Delaware, corporation A, with
an authorized capital of $400,000, one-half
preferred stock with no right to vote and
one-half common stock with voting power,
and corporation B, with $5,000 capital. Cor-
poration A was organized chiefly to loan
money to persons desiring to purchase auto-
mobiles, title to the cars to be taken as se-
curity for advances. The purpose was that
B should be and was a holding company and
A the active company. By an arrangement
between the two companies A sold and trans-
ferred to B all Its $200,000 of common stock
for a theory of carrying on the business of
A, which Idea had been used by other corpo-
rations and which had no commercial value,
or Indeed any appreciable value. Afterwards
a contract was made by A with two of the
group whereby the group undertook the
sale of the preferred stock of A and were to
give one share of ccHiunon stodt as bonus
for each two shares of preferred stock sold.
The complainants each purchased shares of
preferred stock of A and became owners of
common stock, and are directors of company
A and are not owners of stock of B. At the
time of acquiring the stock they were Igno-
rant of the transactions between the two cor-
porationa After finding out the facts In
general, the complainants, believing that the.
arrangement was fraudulent and illegal, ap-
pealed to the officers and directors of A to
take steps to undo the wrong, and obtaining
no help filed a bill against both corporations,
asking, among other things, that the transfer
of the shares of conunon stock of A to B be
adjudged illegal and that they be returned to
the company for cancellation.
In brief, company A sold and transferred
to ccNnpany B all of Its common stock, which
alone had voting power, for something which
obviously had no value, and which was not
salable or transferable, vis. a business Idea
which others had used and which any one
could use freely, and stockholders of A who
acquired their shares subsequent to the trans-
fer being unsuccessful In moving the officers
of the company to act, have taken steps to
have the transfer annulled because Illegal
under the laws of Delaware, and done for a
fraudulent purpose.
For the defendants It la urged that there
was no fraud, and that the stock was lawful-
ly held ; that at most the holders of the stock
were liable to pay therefor under the pro-
visions of the General Incorporation Act,
and so there was an adequate remedy at law ;
also that the complainants and company A
were estopped to deny the legality of the or-
ganization of the company, or to seek a re-
turn of the stock; also that the complain-
ants had no standing because they had ac-
quired stock subsequent to the transaction,
and In fact acquired some of it from com-
pany B.
[1] Beyond question there was no consid-
eration for the shares Issued to the Finance
Company. The business idea was not salable
or transferable, and had no commercial value,
and was not property In any sense. No pre-
tended exerr^Ise of business Judgment by the
directors of the selling company could give
any value to that which in fact was not prop-
erty or rights in and to property, or validate
a transaction bared on there being value In
that which was the subject of the dealings.
The transaction violated the Constitution and
statutes of the state. In some of the other
states the statutes declare void shares of
stock Issued under audi dreumstances. Such
a transaction Is actual fraud and the effect
$=3For other cases see same topic and KEY-NUUBER In all Key-Numbared Digests and indexes
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910
101 ATIiAimO KEPORTESH
(Pel.
Is the same. Ellis t. Penn Beef Co., 8 Dei.
Gh. 213, 80 Atl. 666 ; Tooker t. National, etc.,
Oa, 80 N. J. Bq. SOS, 84 AU. 10 (1912).
[2] nie defendants say tbat the only rem-
edy Is to enforce payment for the shares as
authorized by the statute, and that the court
cannot annul this Issuance thereof or compel
a return thereof. If a proceeding against
delinquent stockholders Is for or by creditors
of the company In case of insolvency an ac-
tion at law Is appropriate. But when It Is
not for creditors, but by stockholders acting
for thonselTes and other stockholders to mi-
force a right of the corporation whldi the
officers of the company will not enforce, then
it may turn out that cancellation of the ille-
gally Issued shares Is the appropriate remedy.
The case of Yetter v. Delaware, etc., Co.,
206 Pa. 485, 56 AU. 67, cited by the defend-
ants to show that stockholders of a corpora-
tion cannot maintain a bill such as this one,
does not so hold; but on the contrary the
court expressly declined to pass on that
question. The right was denied because the
Pennsylvania statute gave to the Attorney
General the remedy to enforce a provision of
the Pennsylvania Constitution and statute
substantially like the Constitution and stat-
ute of Delaware. There la nothing in the
Constitution or statutes oi Delaware, or in
the decisions of the courts of Delaware, or
elsewhere, which si)eaklng generally excludes
stockholders from obtaining proper relief
for the corporation, themselves and other
stockholders where the prohibition of the
Constitution and statutes have been violated
by the issue of shares of stock for no value.
On the contrary that right of the stockhold-
ers was found in Ellis v. Penn Beef Co., 9
Del. Ch. 213, 80 AtL 666. On a re-examina-
tion of the general question I am convinced
that the principle there stated is sound.
Brahm v. M. O. Gehl Co. et al., 132 Wis.
674, 112 N. W. 1097 ; Cuba, eta, Co. T. Klrby,
149 BUch. 453, 112 N. W. 1133.
[3] It 1b further urged by the defendants
that inasmuch as the prohibitions of the Con-
stitution and statute respecting the issue of
stock except for property are In the past
tense no stock can be Issued imtll fully paid
for and that the provisions of the statute
respecting the liability of holders of shares
not paid for (sections 20, 21 and 22) are in
conflict therewith. These sections simply
provide that shareholders are liable to the
full extent of the par value of the shares,
and that either the corporation or its cred-
itors can enforce the liability. All tbat the
Constitution means is that stock cannot be
issued as fully paid so as to relieve the bold-
er thereof from such liability until it tias
been paid for in money or other form of
property. There is no prohibition against the
issue of stock as partly paid for. The Con-
stitution is violated If shares wholly or in
part tmpaid for are issued as fully paid for.
In administering the affairs of the Arling-
ton Hotel Company, an insolvent corpora-
tion, this court found that the Constitution
had been violated and for the benefit of credi-
tors of that company ordered the receivers
of the corporation to enforce that liability.
In Ellis V. Penn Beef Co., 9 DeL Ch. 213, 80
Atl. 666, this same court had recognized tliat
same liability at the instance of a stocldiold-
er, though the only relief there granted on
the preliminary application was the appoint-
ment of a receiver of the company in order
to conserve the property and business pend-
ing the lltlgatloD.
There is no conflict between the two deci-
sions of this court In each the prohibition
of the Constitution was enforced to suit the
facts of each case, in one favoring the grant-
ing to stockholders appropriate relief as to
stock issued without any value given there-
for, and in the other reqiiiring holders of
stock who had not paid therefor to do so for
the benefit of creditors of the company, whi(&
was then insolvent.
In the case of Tooker ▼. National Sugar
Keflning Co., 80 N. J. Eq. 306, 84 AU. 10, a
decision by Vice Chancellor Stevens in 1912,
and which does not appear to have been re-
versed, the court found that there had been
a conscious overvaluation by the directors
of pr<4)erty taken in payment for shares of
stock, which was actual fraud and rendered
the stock void because the statute as to
what can be taken as payment for snares was
thereby violated. Where creditors were con-
cerned the shares were stUl liable to as-
sessment. Being bound by decisions of the
Cotu-t of Appeals of New Jersey, the Vice
Chancellor felt he could not cancel the stock
because the statutes of New Jersey provided
a method for retiring stock, and not being
sure of the propriety or Justice of the other
relief asked for and discussed in the opinion,
the court said that it would in the decree give
the holders of the unlawfully issued stock a
right to vote to retire the stodc in accordance
with the statute. Howard v. National Tele-
phone Co. et al. (C. O.) 182 Fed. 215.
[4] In the case at bar it is proper to apply
the principle approved of in Ellis v. Penn
Beef Co., for the bill i» properly brought by
and for stockholders to effect a cancellation
of shares issued for a business idea which
was not property and was not brought bjr
or for creditors of the company to enforce
payment for the shares in order to protect
creditors, there being no allegation in the bill
respecting them. If it should later appear
that they need protection or relief the decree
could so provide. Indeed, terms to protect
and enforce all rights may be imposed in
granting relief to the complainants and other
stockholders if they are finally found enti-
tled to relief. Even If the validity of the or-
ganization of the company is affected by hold-
ing the issue of shares of common stock in-
valid, some way will be found to meet that
situation. The exact form of the relief to
be granted is not here material on the anes-
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MALfir V. PKNNSYLVANIA R. 00.
911
tion of jtirtsdictlon and power raised by the
demurrer.
[6] Are the complainants to I>e denied re-
lief because they acquired their stock sub-
sequent to the unlawful Issue of stock, being
then Ignorant of the unlawful character
thereof?
In fails T. Penn Beef Ca, 0 Del. Ch. 213,
80 Atl. 666, this court held otherwise under
the peculiar facts of that case. The court
In Pollltz V. Gould, 202 N. Y. 11, W N. E.
1088, 38 L. R. A. (N. S.) 988, Ann. Gas.
1912D, 1098, after stating the contrariety of
decisions In other states, and considering the
question as a new one in New Xork, sus-
tained that right to a stockholder in the ab-
sence of special circumstances, such as the
consent of the prior holder of the sto<^ or
something connected with the acquisition of
stock by the complaining stockholder as
would render It inequitable for him to seek
relief. The court reasoned that the right to
aTold an unlawful Issue was in the company,
and when the officers of the company refused
to take action, the right was In the stock-
holders acting for the company and this
right of action passed with the cransfer of
stock.
There Is nothing to show that the com-
plainants in the case at bar have as holders
of shares of preferred stock consented, or
because of any conduct personal to them cut
themselves ofF from the remedy of stock-
holders in general
[6] Inasmuch as there does not now appear
to be groimd for denying to these particular
complainants the right of objection which in
general such stockholders have, they should
not at this time be denied a right to main-
tain their bill. Furthermore, the complain-
ants as holders of preferred stpck have a
right to q^iestion the legality of the issue
of common stock. Howard t. National Tele-
phone Ck>., supra. Particularly is this true
In this case where, the control of the com-
pany Is in .the holders of common stock, to
which alone voting powers are given.
It is not profitable at this time to consid-
er the effect of sustaining the bill on the le-
gality of the organization of the company
and Its corporate existence, which was dis-
cussed In one of the briefs for the defend-
ants.
On the allegations of the bill the com-
plainants are entitled to some relief, and the
demurrers will, therefore, be overruled-
Let an order be entered accordingly.
(268 Pa. Tt)
MAIiET T. PESNNSXIiVANIA B. CO.
(Supreme Court of Pennsylvania. May 7, 1917.)
1. EXECCTOBS AND Administbatobs «=>9 —
Obphanb' Court— JuBisDicTioN.
Atft June 24, 1885 (P. L. 155), providing
for tlie granting of letters of administration
by tbe orphana' court on the estates of per-
sons presumed to be dead, does not Indicate an
intention on the part of the Legislature to con-
fer on such court exclusive Jurisdiction of tbe
determination of the fact of death by reason
of absence, for that question frequently arises
in collateral proceedings where the object is
not to distribute the estate of the absentee.
2. Judgment <3=>688— Pebsons Conci.uded— •
Absentee Pbesumed Dead.
Where a railroad employe who made depos-
its in a savings fund named his three children
as l>eneficiaries, or, in case they were not living,
directed that tbe fnnd should be paid to bis
legal representatives, and two of the three chil-
dren departed and were not heard from for
over seven years, a judgment directing the rail-
road company to pay the fund to the employe's
executrix, the other beneficiary having assign-
ed her interest to the executrix, protects the
company, for the rights of the absentees could
be preserved in proceedings for the distribution
of the decedent's estate.
3. Death «=>2(1) — Pbesumptions — "Ab-
sence."
A presnmption of death is raised by the ab-
sence of a person from his domicile unheard
from for seven years, "absence" in such con-
nection meaning that the person is not at the
place of his domicile, and that his actual resi-
dence is unknown, but removal is not sufficient,
and disappearance from his domicile and from
the knowledge of those with whom he would nat-
urally communicate is necessary.
[Ed. Note. — For other definitions, see Words
and Phrases, First and Second Series, Ab-
sence.]
4. Dkath «=5»2(1)— Pbesumption— Absknch
Where an absentee's possible destination
was known when he left, reasonable search
should be made at the place where he was last
known to live before a presumption of death
can arise by reason of seven years' absence
unheard from.
5. Death ig=>4— Evidence— Findino.
In an action by the executrix of a railroad
employ^ to recover deposits made in an em-
ployes' savings fund by the decedent, where it
appeared that oqe of the three beneficiaries had
assigned her interest to the executrix, evidence
held to warrant a finding that the other two
beneficiaries who had been absent unheard from
for over seven years had died.
Appeal from Court of Common Pleas,
Bradford County.
Action by Margaret Malay, executrix of
the last will and testament of Martin Malay,
deceased, against the Pennsylvania Railroad
Company. From a Judgment for plaintiff,
defendant appeals. Affirmed.
Argued before BROWN, O. J., and MES-
TBEiiAT, POTTER, FEAZEE, and WAI.-
UNO, JJ.
Benjamin Enykendall, of Towauda, and
Guy H. Dayles, of Harrlsburg, for appellant
T. S. Hlckok and James W. Burke, both of
Canton, for appellee.
FRAZER, J. Martin Malay died, in 1913,
leaving a will In which, after giving certain
specific legacies, he left his residuary estate
to his wife, plaintiff In this {Hroceedlug, and
appointed her executrix. Deceased bad been
an employ^ of the Pennsylvania Railroad
Company, the defendant, and had, since 1893,
made deposits in tbe employte' saving fund
of the company, and, at the' time of his
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101 ATIiANTIC REPORTER
(Pa.
deatb, tbere was standing to his credit In
that fund the sum of $1,774.25, the subject-
matter of this litigation. In his application
for membership deceased provided that, in
event of his death, the amount due blm
should be paid to bis three children, Jerry,
Daniel, and Mary, or, In case they were not
living, to his legal representatives. The reg-
ulations governing payment of the saving
fund provided that:
"Upon the presentation to the superintendent
of the fund of satisfactory proof of the death
of a depositor, the money belongring to him shall
be paid only to the beneficiary designated, in
accordance with these regulations, to receive
the same; or, if the beneficiary so designated
shall not be then living, said fund shall be paid
either to the heirs or legal representatives of
the deceased depositor, as the board, or super-
intendent, may determine."
Daniel and Jerry Malay left borne shortly
after the father became a depositor to this
fund, and have not since been heard from.
After the death of Martin Maley, Mary as-
signed her interest In the fund to her moth-
er, the executrix, who tben brought this ac-
tion to recover the entire fund as the person-
al representative of decedent, basing her
claim to the shares of Jerry and Daniel on
the presumption of their death, arising from
absence unheard of for a period of 21 and
18 years, respectively, at the time of bring-
ing this action. The court below left to the
Jury the question whether the absent sons
were dead, and a verdict for plaintiff was
rendered on which the court, after discharg-
ing rules for a new trial and Judgment non
obstante veredicto, entered Judgment, and
defendant appealed.
[1] The second assignment of error ques-
tions the Jurisdiction of the court of common
pleas to adjudicate the fact of the death of
the two sons. Defendant contends that ex-
clusive Jurisdiction of this question is vested
In the orphans' court, and that an applica-
tion should first have been made to that
court by plaintiff for letters of administra-
tion on the estates of the absentees, in ac-
cordance with the provision of the act of
June 24, 1885 (P. L. 155). Previous to the
passage of this act the practice of the reg-
ister of wills had been to grant letters of ad-
ministration on the estates of persons pre-
sumed to be dead because of seven years' ab-
sence, on the production of sufficient evi-
dence before him. In the case of Devlin v.
Commonwealth, to Use, 101 Pa. 273, 47 Am.
Rep. 710, this court held the grant of let-
ters of administration by the register in such
case to tie absolutely void if afterwards the
absent person was found to be alive. The
act of June 24, 1885 (P. L. 155), followed, ap-
parently for the purpose of establishing a
uniform practice conclusive upon all parties.
The act begins by providing that:
"Whenever, hereafter, letters of administra-
tion, on the estate of any person supposed to
be dead on account of absence for seven or more
years from the place of his last domicile within
this commonwealth, shall be applied for, it shall
be the daty of the register of wills, to whom the
application shall be made, to certifv the same
forthwith to the orphans' court of the county."
Other sections designated the procedure to
be taken by the orphans' court, the publica-
tion of notice, the evidence which may be
offered at the bearing, the giving of a re-
funding bond for the recovery of property
distributed, with power in the court to re-
voke the letters upon it being made to ap-
pear that the supposed decedent is In fact
alive, also providing that all acts done by
the administrator to the time of revocation
of the letters shall remain as valid as if
the letters were unrevoked, subject to the
right of recovery of the property from the
distributees. This act provides a complete
system for distribution of estates of sup-
posed decedents, with a view to protect and
safeguard the rights of ail parties concerned.
We find nothing in tbe act, however, indicat-
ing an intention on the part of the liCgisla-
ture to confer upon the orphans' court ex-
clusive Jurisdiction of the determination of
the fact of death by reason of absence. This
question may, and frequently does, arise in
collateral proceedings where the object is not
to distribute tbe estate of the absentee, and
where the court has complete Jurisdiction of
the subject-matter, as In the present case.
In such cases no necessity exists for taking
out letters of administration on the estates
of tbe al>sentees, and no adequate reason ap-
pears for holding that a court of competent
Jurisdiction should delay matters pending be-
fore it for the purpose of awaiting an appli-
cation for appointment of an administrator
by the orphans' court, merely to determine
whether or not certain facts warrant a pre-
sumption of death of the absentee, who may
in fact have no estate to administer, at least
so far as the pending proceeding in the com-
mon pleas is concerned. True there is noth-
ing in the act of 1885 to indicate a prerequi-
site to taking Jurisdiction by the orphans'
court Is ownership of property by the sup-
posed decedent within the state of Pennsyl-
vania, or elsewhere. The conditions, so far
as the provisions of the act are concerned,
are that the application for letters shall be
made by the proper person, and evidence pro-
duced sufficient to satisfy the court tliat the
presumption of death has arisen. The act,
however, contains no Indication of an at-
tempt upon the part of the Liegislatnre to
confer on the orphans' court exclusive Jaris-
dlctlon and to take from the common pleaa
Jurisdiction to determine all questions of
fact arising In a proceeding pending before
that court, and over which its Jurisdiction is
undoubted, and Jurisdiction of the subject-
matter carries with it Jurisdiction to decide
evei7 incidental question necessarily involv-
ed. Wllhelm's Appeal, 79 Pa. 120, 141. The
court is not asked to administer the estate of
a person presumed to be dead, nor would this
be the direct or Indirect effect of Judgment
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MAUET V. PENNSYLVANIA B. 00.
913
rendered in the proceeding. Under a Terdlct
for defendant the fund In question must re-
main In its hands until claimed by the absent
owners, or until an administration of their
estate Is duly made by proceedings brought
under the act of 1885.
The courts hare frequently, since the pas-
sage of the act of 1885, assumed Jurisdiction
to pass on the question of presumption of
death without the formality of applying for
letters of administration pursuant to that
act For instance, in Re Petition of Mutual
Benefit Co. of Penna. for Dissolution, Schon-
eman's Appeal, 174 Pa. 1, 34 Atl. 283, 52 Am.
St. Rep. 814, the common pleas decided the
question- in a proceeding to distribute the
estate of a mutual benefit association. In
Francis t. Francis & Beale, 180 Pa. 644, 37
Atl. 120, 67 Am. St. Rep. 668, proof of death
of an absentee was received in the common
pleas in an issue devisaTlt vel non on the
will of another person, the court not deeming
It necessary to await a determination of the
death of the absentee under the provisions of
the act of 1885. In Baker v. Fidelity TiOe &
Trust Ck>., 55 Pa. Super. Ct. 15, the question
was raised in a bill in equity for partition
and an account of rents. In that case the
court said (page 21):
rrhe act of June 24, 1885, relates to the
granting of letters of administration on the
estate of persons presumed to be dead by rea-
son of long absence from their former domicile.
It provides a mode of administration of such
property as would come into the hands of an
administrator, but the proceeding now under
consideration is not for the collection or con-
servation or administration of Baker's estate;
it is a i^roceeding to partition his estate, and
that which the appellee is demanding Is her
property, and never was a part of the estate
of Baker. It came Into being after he died.
When the presumpticoi of death arose, the rights
of hie widow took effect, and as no appeal is
taken from the decree in partition by the widow
or the heir, it does not appear that the inter-
ests of the appellant are in any wise prejudiced.
The contention that It may hereafter be dis-
covered that Frank Baker is alive is one which
might be made with propriety after an account-
ing when the money is to be paid over, but until
that time the accountant incurs no risk and is
not subjected to any prejudice. The action is
not against the estate of the missing husband,
but against the heir at law for Uie settlement of
a property right, and is in its general features
a proceeding in rem as to which the Jurisdic-
tion of the court is unquestioned."
A verdict and judgment for plaintiff does
not amount to a distribution of the estate
ot the absentees, for the reason that, when
the fact of their death, before that of de-
ceased testator, Is established, the fund does
iM^ pass to plaintiff through them, but
passes directly to the personal repres^ata-
tive of deceased under the agreement for
disposition of the benefit fund, and also as
part of the estate of the deceased father.
The presumption of death from absence is
as effective as direct proof of the fact of
death, the rule being tliat property such
person would have inherited does not vest
in blm, but passes directly to others entitled
101A,r-68
thereto. Esterly's Appeal, 109 Pa. 222. In
that case It was held, where a son was, by
reason of absence, presumed to be dead, the
share of his father's estate he would have
Inherited went directly to the grandchUdren,
and not through the son, and, therefore,
creditors of the latter were without right to
participate In a distribution of the estate.
In the opinion the court says (page 231) :
"If it now appeared, by positive and direct
proof, that Joseph H. Gery bad, in fact, died
on the day he disappeared, it certainly cannot
be doubted that we would distribute this fund,
so held in trust and awaiting adjudication, to
those upon whom the estate devolved ; and as
the presumption of death after the lapse of seven
years is as eEfective as direct proof of the fact,
we cannot see how any doubt can exist as to the
parties entitled here."
Under this authority, the shares of the
sons passed directly to the executrix who
represents the estate of decedent, and
through her to those entitled. CJonsequently
this action Is In no sense one against the es-
tates of the missing sons, requiring the
raising of administration thereon, and the
court below properly sustained Its Jurisdic-
tion to .determine the questions raised.
[2] Defendant cannot be Injured by a
Judgment In favor of the plaintiff for the
amount in its hands. It admits the amount
Is due, and merely desires to be protected
in making payment to the proper person.
This protection Is fully given by the judg-
ment of the court In the present proceeding.
In Devlin v. Commonwealth, to Use, 101 Pa.
273, this court held a voluntary payment to
the administrator, appointed on the estate
of a person on the strength of the presump-
tion of death before the act of 1885, was not
a defense to a subsequent action by the
supposed decedent, but said (page 278 of
101 Pa., 47 Am. Rep. 710):
"Had John F. Devlin been compelled, by a
court of competent jurisdiction, to have paid
to the administrator the money in controversy,
his case wonld have been very different"
In Miller et el. v. Beates et al, 3 Serg.
& R. 490, 8 Am. Dec. 658, it was said In
answer to a similar contention (page 494) :
"As to the injurv which might arise to John
O. Schlosser, by uiis presumption, in case he
should be alive, I think it ought not be re-
garded. He would have his action against those
to whom the money will be paid ; and although
he might lose by their insolvency, yet that wotud
not be a greater evil than would arise from the
establishment of a principle that the life of a
man ought to be presumed, under circumstances
which usually attend deoth, merely because pos-
itive proof of death could not be obtained. I
am bound to mention, in justice to the defend-
ants, in this cause, that they have no wish to
reap any benefit from the detention of the mon-
ey In question. Their object is safety; they
are willing to pay to the persons who are au-
thorized by law to receive; and, considering
the circumstances of the case, I think they were
prudent in withholding the money, till the plain-
tiffs established their right by legal adjudica-
tion."
The question as to the amount and suffi-
ciency of the security that should be re-
quired to be entered by the distributees en-
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101 ATIANTIO REPORTER
ff*.
titled to the fund Is not before us, and may
properly be considered when tbe account of
the administratrix comes before the court
for distribution.
[3-6] Tbe remaining question Is whether
the eTldence Is sufficient to warrant the
jury in finding the fact of death of tbe two
sons. Jerry Maley left home in 1894 when
under 20 years of age. Daniel Maley left
In 1S97, when about the same age. They
lived at home with their father In the small
village of Grover, containing about 150 In-
habitants. The fact of their leaving was,
without doubt, generally known in the com-
munity, especially as their father had been
a resident there for many years, and the
family was well known. After the depar-
ture of the sons the father continued to re-
side in Grover until bis death In 1913. Dur-
ing the period of 20 years whidi elapsed since
the departure of the eldest son no word was
received from either of them, or reason
shown for their going away, or their possible
destination, except the testimony of a wit-
ness, who employed Jerry, to the effect that
tbe latter indicated an Inteutlon of "going
West" The father at one time stated to a
witness that If Jerry were alive he thought
be was on the sea. Defendant contends
that something more than the mere fact of
the boys not returning home or writing their
father was necessary to give rise to the pre-
sumption of death, and that an effort to lo-
cate the absentees must appear. Just what
form such inquiry should take, in view of
the facts of this case, we are unable to com-
prehend. There was nothing to indicate to
the father the possible destination of his
SODS ; had such fact been known to him
reasonable search should be required to be
made at the place where the boys were last
known to live. As matters stood, however,
the last-known residence was the home of
their father, and the proof of their absence
unheard of from that place for a long peri-
od of years was without contradiction. In
fact their presence, or even news at them,
in a small community would soon become a
matter of common knowledge; consequently
the making of specific search or inquiry
would be a needless proceeding. The pre-
sumption of death from several years' ab-
sence is founded on the Bnglish Statute of
19 Car. II, c. 6. (3 Eng. Stat. 813), which
provides:
"That any person or persons, for whose lives
estates are granted, absent tliemselves for sev-
en years together, and do evident proof be made
of their being living, in any action commenced
by the lessors or reversiooets for recovery of the
premises shall be counted as dead."
In Miller et al. v. Beates et al., supra, the
supposed decedent went abroad, and when
last heard from was in France, and con-
templated taking passage to America. Un-
successful inquiry was made in France con-
cerning him. The court said (page 493 of
B Serg. & R^ 8 Am. Deo. 658):
"Although a person who has gone from Phil-
adelphia to France may be presuned to be liv-
ing, although he be not heard of for several
years, because such things commonly happen ;
yet when many years have elapsed without hear-
ing from him, and no circumstance is shown by
which this may be reasonably accounted for.
it is so contrary to general experience that
he should be living that the jury may, and ought
to, presume his death. Bor. in such cases, what
is to be done? Tbe jury must find the fact one
way_ or the other. They are not to Rive a
verdict by caprice, but upon principle. Tlicre-
fore, when a man's being alive is inconsistent
with the other fact proved in tbe cause, accord-
ing to eeneral experience, it ought to be pre-
sumed that he is not alive. I find it laid down
in 2 Peake's Law of Evid. 356, that where one
has not been heard of for many years, this is
prima facie evidence to presume his death with-
out issue, until the contrary be proved. This
appears to me to be quite reasonable, Itlanv
years* is an indefinite expression, I am not
for fixing, at present, any precise period, after
which a presumption of death arises. But I
think mysi'If safe in saying that, in the present
instance, considering that 14 years and 9 months
had elapsed between John G. Solilosser's be-
ine last heard of and the commencement of this
action; that when last heard of, he was at a
place between which and the city of Phila-
delphia there was a free communication, and
it was then his intent to return • * ♦ to
Philadelphia; his being now in life, would be
contrary to the usual course of things ; that
the jury might, and ought to, presume bis death,
and if tbe case were to come to another trial,
the court would so direct them."
It was also further said (page 485 of 3
Serg. & R., 8 Am. St Rep. 658):
"If he has not been heard of for many years,
this in every case is prima facie evidence, suf-
ficient to presume his death without issue, un-
til tbe contrary is proved."
The question as to the evidence required
to raise the presumption of death was again
discussed in Innls et al. v. Campbell, 1
Rawle, 373, 375, as follows:
"A person, proved to have been alive at a par-
ticular time 18 presumed to be so still ; and
the onus of proof is on him who alleges the con-
trary. But In addition to lapse of time, proof
that he has not been heard of for 7 years is
sufficient to rebut the presumption of life ; and,
was it shown that Mrs. Wallace had not been
heard of for that period, there would clearly
be sufficient to warrant a presumption of her
death. 2 Stark, Ev. 458. But the question
is whether the lapse of 24 years, without proof
of inquiry, or other circumstance, be not of it-
self, sufficient to warrant such a presumption;
and, although I know of no authority in point,
I am of opinion that it is."
In tbe case of Francis ▼. Francis ft Beale,
180 Pa. 644, 046, 37 Aa 130. 5T Am. St.
Rep.' 668, the supposed deceased bad gene
with others to settle la Patagonia, and was
a member of that colony when last heard
from. The contention was that a presump-
tion of his death existed, as no word had
been received from him toi a period of ov«-
7 years. Tfa« trial judge affirmed a point
that "the presumption of death arising firom
the absence of tbe person tor 1 years un-
heard from stands as competent and satis-
factory proof untii it is suocesafnUy rebut-
ted by competent evideuce to the coutraiy,"
with 'the qualification that if a party left
hla home "without sayiikg where he was go-
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CHEW V. CaTT OP PHILADELPHIA
916
ing, or tf he bad left his home on a business
trip or a pleasure trip, and nothing had been
heard of him for a period of 7 years, then
the presumption would arise that he was
dead. But if he went away for the pur-
pose of establishing a permanent home some-
where else, and he was known to be alive
there, then the presumption would not arise
until he would be absent from that home
and unheard of there." The Jury found the
absentee was alive, and this court affirmed
the judgment, saying the Instmction to the
Jury was correct, and that:
"A presumption of death is raised by the ab-
sence of a person from his domicile unheard of
for 7 years. Absence in this connection means
that a person is not at the place of bis domi-
cile and that his actual residence is unknown.
It is for this reason that bis existence is doubt-
ful, and that after 7 years of such absence bis
death is presumed. But removal alone is not
enough. The further fact that he has disap-
peared from his domicile and from the knowl-
edge of those with whom he would naturally
communicate, so that his whereabouts have
been unknown for 7 years or upwards, is nec-
essary in order to raise the presumption."
Had the sons In this case announced
their destination upon departing, or had
knowledge of their destination been subse-
quently acquired, from which it appeared the
two boys left home with the Intention of
establlsbing their permanent residence at an-
other place, absence from such place unheard
of for a period of 7 years would become
necessary to raise the presumption of death.
Bat under the drcumstancea of their depar-
ture, and in view of their failure to com-
municate vfith their father, with whom they
would naturally be expected to Impart In-
formation, to prove their destination was un-
known, and that they had not been heard
from for the period of time which had
elapsed, was sufficient to raise a presump-
tion of death, and must stand as proof until
rebutted by evidence to the contrary.
The Judgment Is affirmed.
(267 Pa. 589)
CHBW et al. v. CITY OF PHILADELPHIA
et al.
(Supreme Court of Pennsylvania. April SO,
1917.)
1. Mttnicipai, Corporations ®=9lOOO(l) —
Public Imfbovehents — Injunction —
Laches.
A city will not be enjoined from carrying
out a contract for extensive municipal improve-
ments on the ground that the contract Increased
the municipality's indebtedness - beyond its bor-
rowing capacity, where the bill was not filed un-
til part of the money bad been actually raised,
and a loan of the balance bad been arranged,
and where a large part of it had been actually
expended.
2. MXJNICIPAI, COBPOBATIONS «=5>1000(1) —
Taxpatebs' BiLir— Laches.
The rule of laches applies to either a tax-
payers' or to property owners' bill to enjoin a
municipaUty from carrying out a contract in-
volving a public improvement about to be con-
structeid without legal authority.
3. Injunction 9=937— Public Iupbovkmehts
— juwsdiction.
The chancery powers of the courts of the
county of Philadelphia to enjoin the erection or
use of public works is materially modified by
Act April 8, 1S46 (P. L. 272), prohibiting the
exercise of such power until the questions of
title and damages are finally decided by a com-
mon-law court
4. Railboads (S=>99(7)— Abolition op Gbadk
Crossings— NECEssrrr and Extent of Tak-
ing.
Where a city and several railroads, acting
under Act March 17, 1869 (P. L. 12), and Act
June 9, 1874 (P. I* 282), entered into a con-
tract for the appropriation of land for yards to
relocate the railroads, to elevate their tracks so
as to abolish grade crossings and to unite the
railroad tracks and provide sites for municipal
piers and docks and other extensive improve-
ments to meet present and future needs, a court
will not interfere with the judgment of the con-
tracting parties as to the necessity and extent
of taking property, without strong and conclu-
sive evidence that the taking was arbitrary, and
not for legitimate railroad purposes.
Appeal from Court of Conmion Pleas, Phil-
adelphia County.
Bill for liidunctlon by Mary J. B. Chew and
others against the City of Philadelphia and
others. From a decree dismissing the bill,
plaintiffs appeal. Affirmed.
Argued before BROWN, O. J., and STEW-
AKT, MOSCUZISKEB, FKAZER, and WAI,-
LING, JJ.
Francis B. Bracken and Samuel B. Scott,
both of Philadelphia, for appellants. John
P. Connelly, City Sol., Joseph G. Magee and
Ernest Loiwengrund, Aast. City Sols., and
Gill & Ldnn, Graham & Gllfillan, B'rancls I.
Gowen, and John O. Johnson, all of Phila-
delphia, for appellees.
MOSOHZISKER, J. The bill In this case
was flled by seven individuals and one cor-
poration, as property owners and taxpayers
for themselves and sudi others as might be-
come parties thereto. Before hearing the
Greenwldi Terminal Company, a corporation,
having acquired the real estate of all the orig-
inal complainants, asked and received per-
mission to intervene as an additional plain-
tiff, "for the protection of Its interests in tbe
premises," being certain tracts of land in
the aotttbem section of the dty of Philadel-
phia, condemned for frelghtyard purposes,
as hereinafter more particularly set forth.
The other parties remained upon the record,
however, as taxpayers; the last-named cor-
poration not having asked to Intervene in
that capacity. Suit was commenced May
22, 1916. Plaintiffs did not press tor a
preliminary injunction, and the case came
to trial September 26, 1916. On November 6,
1916, the chancellor flled his findings of fact
and conclusions of law, with a decree nisi.
December 14, 1916, exceptions thereto were
disposed of and the bill dismissed upon. Inter
alia, tbe ground of laches. Plaintiffs have
appealed.
A=3f or other cases see same topic and KBT-NUtlBBB In all Key-Numbered Digests and Indexes
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916
101 ATLANTIO RBPOBTEB
(Pa.
To Indicate the material contentions Insist-
ed upon bs the appellants. It la necessarj-
to note only the following averments and
prayers of their bill: Briefly stated, the
plaintiffs allege that, In pursuance of an or-
dinance of the dty councils, dated February
14, 1014, a contract authorized therein was ex-
ecuted on March 23, 1914, between the city of
Philadelphia and the several railroad compa-
ies nauied with it as codefendauts; that this
contract is illegal and void: First, because
the city is therein obligated to expend ap-
proximately $10,000,000, whlcli at the date of
the ordinance, constituted an Increase in the
municipal debt beyond the then legal borrow-
ing capacity; and, next, because no sufficient
prior appropriation was made to meet the
obligations thereby incurred; finally, that
the lauds which the railroads intend to take
for freightyards, in carrying out the plans
contemplated by the ordinance, are greatly
in excess of their needs "both at present and
for many years to come," such lands em-
bracing properties of the complainants,
which the latter desire to retain for indus-
trial uses. They pray: (1) That the ordi-
nance and contract be declared void ; (2) that
the dty and the railroads be enjoined from
spending any money or otherwise proceeding
thereunder; (3) that the railroads be espec-
ially restrained from "taking any lands under
condemnation proceedings, in pursuance of
said illegal ordinance or contract"
On this appeal the plaintiffs state the fol-
lowing questions involved: (1) Did the con-
tract and ordinance under consideration im-
pose such a liability upon the dty as to in-
crease its debt within the meaning of the
Oonstltution? (2) "Was aw appropriation by
councils to cover the liability of the dty un-
der the contract essential to its valid-
ity?" (3) "When a railroad company propos-
es to condemn land under its power of emi-
nent domain, is the owner precluded from
having a Judldal inquiry whether or not
the taking is arbitrary, or for legitimate rail-
road purposes?" (4) Should the plaintiffs'
bill have been "dismissed on the ground of
laches"?
As said by the learned court below:
"The project for the improvement of the south-
ern section of Philadelphia involved in this lit-
igation is the most considerable single develop-
ment in the city's history."
And its purposes are well set forth In
the following excerpt from a paragraph of
the dty's answer, which was In no wise Im-
peached at trial;
"The abolition of railroad crossings at grade
in that section has engaged the attention of the
municipal authorities and the public for many
years. • • • Wide publicity was given to the
plans, and, through the newspaper press and
otherwise, the attention of the entire commu-
nity was invited thereto. The method tboiieht
best adapted to the advancement and upbuilding
of that locality, as finally evolved, was embodied
In this ordinance. • • • It has in view
three principal objects: First, the abolition of
the grade crossings which have held bade the
growth of the lower portion of Qie city ever since
they have existed, • * • to be accomplished
by elevating most of the railroad trackage trav-
ersing that section, and incorporating into one
system • • • gouth of the traveled territory
all the remaining tracks, so eliminating existing
srade crossings to the number of 53, together
with 73 other grade crossings which would re-
sult from the opening of streets under the plan,
being a total of 126 such surface crossings, or
substantially all of them; * • • second, lo-
cation of well-situated sites for great municipal
piers and docks, to be built at such points as
to enable their use to enhance the dty's commer-
cial and port resources, • * • to be effected
by taking over from the Pennsylvania Railroad
Company and its associates a part of their prop-
erties, • • • and from the Baltimore and
Ohio Railroad Company and its associates their
pier [locating it], * • • placing the piers of
the railroad companies at the southeastern ex-
tremity of the city, and providing adequate stor-
age, yardage, and shifting area in lieu of that
taken by the city ; • • • third, the unifying
and improving of the belt line railroad in the
southwestern and southern part of the city, and
its operation in conjunction with the tracks of
the various railroad companies in that locality,
• * • together with provision for the joint
use upon equitable terms not only of the belt
line tracks, but also of those of the other rail-
roads, by any additional railroads which may
in the future seek entrance into the city."
These plans, as Incorporated In the ordi-
nance and contract now before us, were duly
submitted to the Pennsylvania State Util-
ities Commission and approved by that iKxly,
before the present) proceedings were com-
menced.
[1,2] As to the first question InTOlved, the
injunction was not applied for until the ex-
piration of two years and tliree months
from the date of the ordinance. At that
time $2,000,000 had been actually raised, ap-
propriated, and a large part of it spent by
the dty; and a loan for the balance of the
estimated cost to the munidpality of all
the improvements outlined in the ordinance,
amounting to $8,940,120, had been authorized
by coundls and approved by the people at
a spedal election. Thus it may be seen that
the funds required by the dty had been ei-
ther actually appropriated or specially dedi-
cated to the purposes of the contract and
ordinance before the municipality's right to
borrow the money was questioned in this
action. Moreover, the legality of these loans
has never been attacked either directly or
indirectly in any other proceeding; that is
to say, while the plaintiffs dallied, the dty
proceeded to raise the necessary funds, and
a substantial part of the money had actual-
ly been spent, in accordance with the terms
of the ordinance, before the present proceed-
ing was instituted.
The dty controller gave testimony tending
to show that at the date of the ordinance the
municipality had a margin of legal credit, or
borrowing capadty, beyond the esthnated
cost to it of the Improvements in question;
but the chancellor refused certain other tes-
timony offered by plaintiffs to prove ttiat
the controller had not taken Into account
some Items of charge which, U allowed to
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CHEW v. CITT OP PHILADELPHIA
917
figure, would reduce this margin to such an
extent as to preclude the floating of loans
sufficient for the purposes of the present or-
dinance and contract. It is not necessary,
and we shall not go Into the question of the
propriety of the chancellor's finding to the ef-
fect that the municipal credit was more than
adequate to cover the full amoimt of the
estimate, or of the correctness of his ruling
in refusing the testimony offered to supple-
ment the evidence given by the controller ; for,
after delaying their complaint till all the
money had been either actually or in effect
raised by the city, the plaintiffs cannot be
beard to say that the contract and ordinance
under ccmsideration was invalid because of
an alleged Insufficient borrowing capacity.
To permit such belated, collateral attacks
upon the validity of duly authorized munici-
pal loans would prove highly prejudicial to
the public interests.
Under the circumstances at bar, the sec-
ond question stated for our consideration by
tbe appellants, as to the necessity of prior
appropriations by councils sufilclent to meet
tbe full amount of the estimated cost of the
contract to the dty. Is no more controlling of
tbe present case than the one mentioned
above. As already indicated, the agreement
between tbe municipality and the raUroads is
very comprehensive in character, and there-
imder, perhaps, the former may in the end be
found to have assumed obligations to a total
of $10,940,120, according to the estimate of the
proper city authorities (Schuldlce v. Pitts-
burgh, 251 Pa. 28, 33, 95 AU. 938) : only $1,-
000,000 of this amount being appropriated in
the ordinance now under attack. The ordi-
nance in question is carefully drawn to avoid
legal pitfalls, particularly the prohibition ot
tbe third section of the act of June 11, 1879
(P. L. 130), reUed upon by appellants, which
calls for previous appropriations whenever
municipal contracts requiring the expendi-
ture of money are made. The plaintiffs
contend that the present case falls within
this act; while the defendants claim other-
wise. The court below decided, however,
that the agreement did not impose an im-
mediate obligation upon the city to the ex-
tent of the total estimated expenditures
which the latter eventually might make
thereunder, but that, according to its terms,
tbe obligations of the municipality, beyond
tbe $1,000,000 presently appropriated, would
arise only from time to time, as other ap-
propriations were actually made to carry
on tbe work and perfect tbe purchases re-
ferred to in the ordinance.
After outlining in great detail the work to
be done, tbe properties to be acquired, and
tbe proportionate cost thereof to be borne by
tbe dty and railroads respectively, tbe ordi-
pance provides that the entire improvement
shall be completed within five years, but
that, in event of delay by "tbe dty In mak-
ing sufficient appropriations," this time lim-
it sball be extended. It also provides:
That the work "shall be divided into sections;
• • * that one or more sections shall be exe-
cuted at a time, as and when appropriations
therefor shall be made by the city;" that the
railroads "shall not be required to undertake
and contribute to the cost of any section of the
work unless the city shall have first appropriated
a sum sufficient to meet its share of the estimat-
ed cost of such section"; finally, that "the ac-
quisition of property and tbe work of construc-
tion • • • authorized in this ordinance shall
be carried on, from time to time, as councils
shall provide the necessary funds, and the rail-
road companies shall provide their proportion of
the cost whenever they shall be notified to do so
by ordinance of councils: • • • Provided,
that every contract for public improvements au-
thorized by this ordinance shall contain a clause
that it is subject to tbe proviaons of the act of
JTune 1, 1885 (P. L. 37), and the liabihty of the
city thereunder shall be limited by the amounts
which shall have been or may be from time to
time appropriated for the same."
Much may bo said both for and against
the . view of tbe court below, that this or-
dinance represents a mere program of im-
provements laid out and agreed to between
the municipality and the railroads, to be
executed in convenient blocks, or sections,
when and as appropriations may at its op-
tion be made by the foemer to cover tbe
city's proiH>rtion ot the cost of tbe particular
section about to be undertaken, and that
obligations in the nature of indebtedness
would arise thereunder only from time to
time, when and as the dty thus committed
itself to a particular section of tbe Improve-
ment by making an appropriation to cover
its proportion of the cost thereof; but, ow-
ing to the laches of the complainants, we do
not feel called upon to determine this point
Here the plaintiffs waited for more than two
years before filing their bill, and in the
meantime vast sums of money had been
raised and spent under the ordinance; so
that to stop tbe undertaking at this time
would work a great public evil. It may be
noted that tbe present appeal was not made
a supersedeas, and hence the Improvement
has now been in course of completion for
about three years.
Tbe original plaintiffs sued as taxpayers,
as well as property owners ; but, as previous-
ly stated, they subsequently disposed of their
property holdings to the intervening plaintiff,
and now appear simply as taxpayers. Ck>un-
sel for the appellants well says, '*The bill
might, perhaps, have been Objected to on
tbe ground of multlfarlousnetiSj" since it
endeavors to have determined at one and the
same time tbe separate rights of taxpayers
and property owners. While we shall not
stop to discuss the matter, yet tn passing,
we note it Is apparent that the bill was filed
to protect tbe particular, individual property
rights of the plaintiffs, rather than thdr
general rights as taxpayers. Tbe rule of
laches applies, however, from whichever
point tbe proceedings may be viewed, wheth-
er as a taxpayers' or proi)erty owners' bill;
and, when the facts call for Its application,
tbe rule may control even In a case where
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918
101 ATLANTIC REPORTEB
(Pa.
there is tcTolved a public Improvement con-
structed witboub lawful autborlty (wblcb
we do not hold to be the fact in the present
case). Becker v. Lebanon & Myerstown St.
Ry. Co., 188 Pa. 484, 493, 496, 41 Atl. 612;
Keeling v. Pittsburg, Va. & Charleston By.
Co., 206 Pa. 31, 34, 54 Atl. 485; Condron t.
Penna. R. R. Co., 233 Pa. 197, 82 Atl. 64.
[3] Moreover, the power to Issue Injunc-
tions In cases such as the one before us Is
much restricted by the act of April 8, 1846
(P. L. 272), entitled, "An act relating to the
Chancery powers of courts in the dty and
coimty of Philadelphia," which provides:
"That no courta within the city and county of
Philadelphia shall exercise the powers of a
coart of chancery, in granting or continuing in-
janctions against the erection or use of any pub-
lic works of any kind, erected or in progress of
erection, under the auUiority of an act of the
Legislature, until the queations of title and dam-
ages shall be submitted, and finally decided by a
common-law court.**
This act was discussed, sustained, and ap-
pUed in Wolbert v. Philadelphia, 48 Pa. 439
(property owner's bill), Wheeler v. Philadel-
phia, 77 Pa. 338, 344, and Wheeler v. Rice,
83 Pa. 232, Id., 4 Brewst. 129 (taxpayers'
bills). Also see opinion by Sharswood, J., In
Flanagan v. Philadelphia, 8 Phlla. 110, 111,
and by Paxson, J., in Philadelphia & Reading
B> R. Co. T. Philadelphia, 8 PhUa. 284.
[4] We have already sufficiently disposed
of the last of the four questions stated by
the appellants for our consideration, and the
only one remaining is the third, which involv-
es the right of the defendant railroads to
condemn certain lands for frelghtyard pur-
poses. The agreement incorporated la the
ordinance provides that two of the railroads
are to surrender and the dty Is to purchase
the former's present yards, when the latter
makes appropriations suflBdent for that pur-
pose, these properties to be used for and in
oonnectlcHi with new and much-needed pub-
lic docks and piers to be constructed and
maintained by the dty. It also provides that
lands for 'yard fadlltles equal to those aban-
doned by these railroads shall be taken up by
them In a designated section on the line
of the Improvement, the cost thereof to be
borne equally by the dty and the commra-
tlons In question, but any additional real
estate needed for yard purposes to be paid
for solely by the latter. The map prepared
by the dty and Introduced in evidence by
IflalntUIs shows two large tracts of land, one
marked "Space required for Pennsylvania
Railroad terminal yard," and the other, im-
mediately south thereof, designated "Space
required for Baltimore & Ohio Railroad ter-
minal yard." These are the tracts owned by
the plaintiffs. It Is plain from this last-men-
tioned piece of evidence, and other proofs in
the case, that the railroads and the dty
agreed between themselves that the condem-
nation of this land for railroad yards was a
necessary and essential part of the general
ImprovMnent contemplated by the ordinance.
iWhlle, in their statement of the third
"question involved," the appellants set forth
a broad, goieral subject for our oonsidera-
tlon, yet, when the record covering this
branch of the case is looked at critically, as
It must be in a matter of sudi grave pid>Uc
importance, it will be seen that the real
points thereby presented are: (1) Under the
drcnmstances at bar, do the railroads possess
a legal right to condemn any of the lands
here in controversy? (2) If so, then can they
lawfully take therefrom an acreage greater
than required for tbdr iMresent needs? The
prayer of the bill is :
"T%at aaid defendant railroads, and each of
them, be restrained • • • from taking any
lands under condemnation proceedings, in porsn-
ance of said illegal ordinance or contract.
When the case came to trial, however, the
plaintiffs seem to have assumed the position
that the corporations which were required to
surrender thdr ivresent frelghtyards ml^t
lawfully condemn other lands to take the
place of those given up, but only such as
are necessary for their "actual needs" ; far-
ther, that it was the province and duty of
the chancier to determine whether the rail-
roads were about to "take and ctmdemn [for
frelghtyard purposes] any of the plalntUTs
said lands arbitrarily and without regard to
thdr [the railroads'] actual needs." The
court below held that, the dty and railroad
authorities having acted in the matter, it
would not overrule their Judgment
At trial there was no real effort to go into
the question of the future frelghtyard re-
quirements of any of the defendant compa-
nies. A witness was placed upoo the stand
by plaintiffs, and the following tender of evi-
dence was made:
"If it pleaae the coart, the • • • railroad
company, as is conceded in this proceeding, pro-
poses to condemn for railroad purposes acme 200
and odd acres of land indicated on this map
[being the map previously referred to in this
opinion]. I offer to prove by this witness the
extent of its [the railroad's] busineas now being
carried on, * * * as a step in the proof that
the taking of this approximate mile of river
front in lien of the front to be abandoned,
* • • is an arbitrary taking, and in no wise
necessary for railroad purposes in connection
with the present plan of abolishing grades in
South Philadelphia or otherwise."
The overruling of this offer forms the basis
of the principal assignment of error In sup-
port of the "question involved" now under
consideration.
It will be noticed that the (rfler just quoted
was to show the business "now being carried
on," and, although this was stated to be "a.
step In the proof," yet there was no other
proposal, either then or afterwards, to show
that the lands about to be appropriated were
not essential to meet the future require-
ments of the railroads. It is well established
that, in cases of this character, "a liberal
consideration for future as well as existing
necessities" is the test Pittsburgh Junction
R. R. Ca's Appeal, 122 Pa. 511, 530, 6 Atl.
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McEENKA r. YERNON
919
SM, e Am. St B«p. 1^: Pittsburgh, Ft.
Wayne & GbUxgo Ry. Co. t. Peet. 1S2 Pa.
488, 494, 26 AtL 612. 19 Ia R. A. 467. More-
orer, this ooDtract was expressly entered lo-
to onder and by virtue of authority granted
by the act of June 8, 1874 (P. U 282), which
provides that the proper municipal author-
ities are empowered to make contracts with
railroad companies whose lines run within
the limits of tlielr cities, "whereby the said
'Companies may relocate, change or elevate
their raUroads within aald limits • • *
tn such manner as in the Judgment of such
authorities * * * may be best adapted
to secure the safety of lives and property,
and promote the'lnterests of said dty," and
"for that purpose the dty authorities shall
have power to do all such acts as may be
necessary and proper to effectually carry out
such contracts." This act has beea liberally
• 'Construed whenever before the courts. West-
«m Penna. R. K. Co.'s Appeal, 99 Pa. 165,
162-163 ; Biyner v. Xongblogheny Bridge Co.,
190 Pa. 617, 627, 42 AU. 1100. Also see the
■opinion of that eminent Jurist the late Judge
Hare In Duncan t. Penna. R. R. Co., 7 Wkly.
Notes Cas. S51, 654. And in conjunction with
the act of March 17, 1869 (P. U 12), confer-
ring the right of eminent domain upon rail-
roads "to straightenv widen, deepen, enlarge
And otherwise Improve" their lines (Wilson v.
Pittsburg & Lake Erie R. R. Co., 222 Fa. S41,
044-646, 72 AtL 236), the legislation In ques-
tion not only affords support to the contract
bere In controversy, but confers «uch broad
porwera upon munlci'ial and railroad author-
ities that it would take strong and conclusive
evidence to Justify a court's interference, tO'
any degree, with their combined Judgment,
'exercised thereunder, when dealing with the
matter of yard or other facilities required to
meet present and future needs created by a
g«ieral scheme for railroad relocation, ele-
vation, and improvement of the magAltude of
the one at bar. The record under review
shows no evidence, either produced, offered,
-or suggested to warrant such Interference in
this case.
When the subject in hand was under dts-
•cossion at trial, the learned chanoelior well
remarked that, so far as the dty of Philadel-
i»bia and the raUroads are concerned, "this
Is aa Improvement for the next century, or
two centuries to come" ; and, since the appel-
lants assert their lands to be the only ones
la tlte locality tn question available and. suit-
able for frelgbtyard purposes, if this asser-
tion be true, and the general scheme of re-
k>oati<Ht is to prove a permanent success, it
may readily be seen how necessary It was
for file dty and railroads to look far Into
the future, in planning for and providing
jrard fadlities.
Plaitatiffs, of course, have a full and ample
remedy At law to recover damages suffered
by them as propertjr owners; but, on the
assignments now before ns, we are not con-
vinced dther of reversible trial error or that
the court below would have been warranted
in granting any part of the relief prayed for
in the bill.
Hie decree is affirmed at tbe cost of ap-
pellants.
(» Pa. U)
McKENNA ▼. VERNON.
(Supreme Court of Pennsylvania. 'May 7,
1917.)
CoNTBACTB «=»a90 — Building CowraAor —
Conditions as to Payment.
Where the provision in a building contract
that payments ^ould be made only on certificate
of the architect had been repeatedly disregard-
ed, and the architect was satisfied with the
work, deviations having been made at his di-
rection, a verdict for the contractor for a bal-
ance duo was warranted, the owner having al-
most daily supervised the work, and made no
complaint as to the deviations, and hence the
court properly refused to enter judgment for
defendant notwithstanding the verdict.
Appeal from Court of Common Pleas, Phil-
adelphia County.
Assumpsit by Bernard J. McEenna, trading
as John McKenna & Son, against William J.
Vernon. From a Judgment for plaintiff, de-
fendant appeals. Affirmed.
Argued before BROWN, O. J., and MES-
TKEZAT, STEWART, FRAZBR, and WAL-
LING, JJ.
Stanley W. Root, of Philadelphia, for ap-
pellant Barry 8. Mesirov and James J.
Breen, both of Philadelphia, for am>eUee.
STEWART, J. Tbls was an action to re-
cover a balance alleged to be due on a build-
ing contract By written agreement under
date. of January 20, 1914, the plaintiff under-
took the erection and completion of a moving
picture theater at 1626-28 Cumberland street
in the dty of Fbiladelphla, agreeably to cer-
tain plans and spedfications whldi accom-
panied and were made part of the agreement
he to receive therefor, in full compensation,
the sum of $7,760, to be paid by the owner
to the contractor wb<rily upon certificates of
the architect as follows: Eighty per cent, ot
the work set In place as the work proceeds,
tbe first payment within 30 days after tiie
completion of tbe work; all payments to be
due when certificates of the same shall have
been Issued by the architect; the building to
be completed by April 20, 1914, and tbe work
to be done under the dlreotlon of the ardii-
tect A supplemental agreement was entered
into by the parties March 24, 1914, which
provided for an enlargement of tbe theater
building, for which the contractor was to
receive an additional $1,000. The main pro-
visions of this agreement were similar to
those contained in the earlier. By the later
agreement the work was to be completed on
or before tbe 11th of May, 1914. From time
«=3Por otb«r casM M« nm*.toplc and KKY-NUMEBR Id all Key-Numbared Ditwta and IndazM.-
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101 ▲TLAm'IC REPORTBB
(Pa.
to time, as the work progressed, tbe owner
made several payments on account, amount-
ing in all to $6,000. Suit was brought, August
28, 1014, to recover the balance of $2,750,
with Interest from June 30, 1014. Defense
was made on several grounds: Failure of
contractor to erect and complete the building
In accordance with the plans and spedflca-
tions, the substituting of inferior and cheaper
materials, and Inferior workmanship through-
out, entaUing, for the supply and correction of
the same, if attempted, a large expenditure.
Further, defendant claimed that the building
was not completed within the time allowed by
the contract, and demanded as a set-off a pen-
alty of $2S3.35. The trial resulted in a verdict
for the plaintiff for $2,iK)0. At the conclu-
sion of the evidence, the defendant asked for
a compulsory nonsuit, which was refused.
The several assignments of error, in one
form and another, relate directly or indirect-
ly to this one feature of the case, and are all
based on the theory that, In the absence of a
certificate from the architect of the final
completion of the building in accordance
with plans and specifications, no right of
action existed. Not only is there no express
provision to this effect in the contract, but
the contract itself shows that no distinction
Is there made between final payment and the
payments on account of the 80 per cent, of
work in place. All payments were to be made
only on certificate of the architect, and yet
vtritb a single exception each of the seven
payments made as the work progressed was
made without a certificate being asked for.
With such constant and repeated disregard
on the part of the owner to exact compliance
with this provision in the contract, it is too
late now for him to insist that failure on the
part of the plaintiff to secure such certifi-
cate before suit defeats his right of action.
Furthermore, on the trial, the architect, call-
ed as a witness, testified that the plaintiff
had performed substantial compliance with
all the requirements of the contract, that he
had not given the certificate to this effect
only because it bad not been asked tor, and
that whatever variations there were from
the spedflcatioDs were authorized and di-
rected by him. The provision in the contract
for written certificates from the architect is
for tbe benefit and protection of the owner.
If he waived It repeatedly, as he did here,
during the progress of the work, be cannot
complain if he be held to have waived it
when he seeks to defend against a final pay-
ment for work shown to have been honestly
and substantially performed, especially when
almost daUy he has had the work under his
own observation, without remonstrance or
complaint at any time with respect to either
the work done or materials employed. This
being the situation, the court was entirely
right In refusing the nonsuit.
For like reason, there was no error In re-
fusing to give binding Instructions for the
defendant If the court was right in these
rulings, the other assignments of error neo-
essarily fall.
The Judgment Is affirmed.
(tss Pa. U)
In re MANIATAKIS' ESTATE.
(Supreme Court of Pennsylvania. April 80.
1917J
1. LnoTATioN or Acrrows «s»160(l)— Ruif-
KiNO OP Statute— Acknowledgment.
A clear, distinct, and unequivocal acknowl-
edgment of a debt as an existing obligation, such
as is consistent with a promise to pay, is suffi-
cient to toll the statute of limitations: but
there must be no tmcertainty, either in the ac-
knowledgment or in the identification of the
debt, and a mere expression of willingness or de-
sire to pay is insufficient.
2. LnciTATiON OF Actions ®=>167(1)— Toll-
ing OF Statuts — Payment.
Payment on account of a debt will stop tbe
running of limitations.
8. Limitation of Actionb ®=»157(1) — Pat-
MKNT— TENDEB.
A tender of payment on account of a debt,
though not accepted by the creditor, is a suffi-
cient acknowledgment by the debtor to toll tbe
statute of limitations; hence, where decedent,
within the period of limitation, on tbe creditor's
demand, tendered a small payment, which was
refused, such tender stopped the running of lim-
itations.
Appeal from Orphans' Ooart, Allej^eny
C!ounty.
In the matter of the estate of Andros
Manlatakds, deceased. From a decree award-
ing the entire fund In the hands of the ex-
ecutor to George P. Calogera, on account oC
a claim against a partnership of which de-
ceased had been a member, JTames Pappas
and others appeal. Affirmed.
Argued before SHOWN, C. J., and MES-
TRE3ZAT, STEWAfiT, MOSCHZISKER. and
rRA2EB> JJ.
Saul Schein, of Plttsbnrgh, for appellants.
W. D. N. Rogers and O. S. Richardson, uotb
of Pittsburgh, for appellee.
FRAZER, J. This appeal Is by legatees
under the will of Andros Maniatakis from the
decree of the orphans' court, awarding the en-
tire fund in the hands of the executor to
George P. Calogera, on account of a claim of
the latter against a partnership of which
deceased had been a member. There was no
dispute as to the amount of the claim, $5,411.-
27, or at least that the amount was sufficient
to cover the entire balance for distribution,
and the only question involved la whether
there was sufficient evidence of acknowledg-
ment of the debt and promise to pay to toll
the statute of limitations.
In 1908, and previous thereto, decedent
was a partner with one Carooglanls in the
retail grocery business In Pittsburg, and
claimant a wholesale grocer In Mew Tork,
»For otbtr caaM »•• wm« toslc ud KBY-MUIIBBR In all KwNnmberad DlgaaU aod ladaxM
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Ur KB MANIAXAKIS' SSTA.TX:
921
trom whom the partnership purcfaaaed xaer-
chandiae. An account remained unpaid
which amounted to the claim presented, and
further credit was refused. In November,
1900, claimant visited Pittsburgh to either col-
lect or secure payment of the Indebtedness.
The firm, however, being unable to pay at the
time, by agreement of the parties the ac-
count was placed for collection In the hands
of John Andrews, a mutual friend. In an In-
terview with the partners In December, 1909,
Andrews Informed them of having received
orders from Calogera to close their store, but
preferred not to do so, whereupon payment of
part of the dalm "after Christmas" was
promised. No payment was made, though
frequent assurances were given, and later the
firm property was seized and sold by the
landlord under a distress for rent All de-
mands by Andrews for payment were met
with substantially the same response — ^that
the debtors were willing to pay, but were
without funds to do so. In tiie summer of
1911, deceased, having acquired a half In-
terest In another business, informed Andrews
be owed for the purchase of his Interest, and
as soon as that Indebtedness was jiald he
would make payments on the Calogera ac-
count, "maybe half share, or maybe the full
amount." Later deceased disposed of this
Interest In the business referred to, but mnde
no payment to Andrews. The last Interview
took place three weeks before decedent was
removed to the hospital, which was shortly
before his death. The date of this Interview
does not clearly appear, but, according to the
testimony of Andrews, it was not earlier than
1912. Another witness fixed the time as in
1914. The account was audited In September,
1916; consequently the exact date Is imma-
terial, since the conversation was had at
least within the statutory period. Andrews
testified that at this interview decedent ten-
dered him $50 in part payment of the Indebt-
edness, which amount he reused to accept on
account of a debt of over $&,uOO, saying,
"Keep it to buy stamps." Hla version of the
conversation was given as follows, on cross-
examination:
"He offered me $60, and I said, 'Andy, think
for me, you got viha.t you got the last time ;' and
■o he offered me $50, snd as soon as he got the
money [from the man who bought his interest]
to give me gome more, and I said, 'You keep it.
I was ripping mad. I don't want to lose my
temper. I said, 'Too better buy stamps; I
don't think Calogera needs that' • • • I
said, 'After you owe $5,000, you give me $50
to send it.' Q. He denied that? A. No; he
•aid, 'As soon as I get the money I send it.' "
This testimony was corroborated by two
witnesses. One testified to the offer of $90
and the refusal of Andrews to receive that
amount, for the reason the payment was too
small, considering the amount of the account
He admitted, however, not having actually
seen the money. The other witness testified
to having seen decedent take —
"out of his pocket two $20 bills and one $10
bill and give to Andrews, and he says, 'Why did
you give me that money, mereyr-lor five' thoo-
sapd dollars, you try to give me fifty dollars.'
Q. What else did he say? A. Then I left him
there, because I had to go to work. I don't
know what they done afterwards. What I
hear is that 'Ton take this $50, and later on
I give you some more.' ♦ • * Q. And you
saw that there were two $20 blllB and one $10
bill? A. He take a roll of money out of his
pocket, and I saw he was trying to give liim two
$20 and one $10."
[1,2] A clear, distinct, and unequivocal ac-
knowledgment of a debt as an existing obliga-
tion, such as is consistent with a promise to
pay, \s suffldeut to toll the Btatote^ Palmer
V. OUlespie, 95 Pa. 340, 40 Am. Oep. 657;
Wells V. Wilson, 140 Pa. 616, 21 AtL 445.
There must, however, be no uncertaiat7> ei-
ther la the acknowledgment or in the identl-
flcaUon of the debt (Landis v. Both, 109 Pa.
621, 1 AU. 49, 58 Am. Rep. 747); and the ac-
knowledgment must be plainly referable to
the very debt upon which the action is based
(Burr V. Burr, 26 Pa. 284 ; Clark v. Magulre,
35 Fa. 259), and also must be cousistent with
a promise to pay on demand and not accom-
panied by other expressions indicating a
mere willingness to pay at a future time
(Keener v. Zartman, 144 Pa. 179, 22 Atl. 889).
A mere declaration of an intention to dis-
charge an obligation is not the equivalent of
a promise to pay, but Is more in the nature of
a desire to do so, from which there Is no
implication of a promise.
"To be constatent with a promise to pay the
debt, the acknowledgment must be such as indi-
cates an intention to pay the debt existing at
the time of the acknowledgment The time of
payment need not be immediat&bnt the inten-
tion to pay most be present Hence any lan-
guage inconsistent with this present intention
must be inconsistent with a new promise.
* * * An acknowledgment is less in force
than a promise, and hence the necessity of
scrutinizing closely the extent of meaning the
language of the acknowledgment has." Sense-
man et aL V. Hershman & Houser, 82 Pa. 83,
85.
In Miller v. Baschore, 83 Pa. 356, 24 Am.
Bep. 187, a letter from the debtor to the
creditor, acknowledging the existence of the
debt, but not stating the amount and con-
cluding with a promise after other persons
to whom the debtor owed money were paid,
as follows:
"I will pay you all I owe you, and if I can
do anything for you before that time I will do
so ; you need not trouble yourself about me that
I will not pay you, for I expect to pay all I
owe"
— was held to be Insufficient to toll tbc stat-
ute for the reasoi^ as stated:
"There is nothing specific or definite, for it la
not stated what note is referred to, neither is
the amount of the balance indicated; * • •
the defendant promises to pay a balance of a
note, but neither note nor balance is stated;
he promises to pay what he owes, but whether
that is much or little we are not informed;
there is, in fact, neither the required certainty
nor perspicuity in the evidence produced to
break down the defense."
In the present case the various promises
made by deceased to pay when able seem in-
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922
101 ATIiANTIO BSPOKTEB
(ftu
(nfflclent to remove the bar of the statute
under the rules of law established by the
cases abOYe referred to. There Is no doubt,
however, as to the ideutlflcatioD of the debt
Itself. There was but one account between
the parties, and the amount bad been de-
termined upon, and was not any time denied
or disputed in their various conversations.
To establish an acknowledgment of the debt
or promise to pay, claimant relies upon what
took place at the last interview between
Andrews and deceased, and offers as a substi-
tute for payment, or part payment, the ten-
der of $50, on account of the debt, the amount
of which was spedflcally referred to by the
parties in the interview. A iMiyment on ac-
count of the debt Is sufficient recognition of
the Indebtedness to toll the statute.
"There can be no more unequivocable acknowl-
edgment of a present existing debt tban a pay-
ment on account of It, and, according to all the
authorities, that is all that is requirpd to take
a case out of the statute of liniitations. But
then it must plainly appear, and not be a mat-
ter of conjecture merely, that the payment wu
made on account of the very debt wliich is in
dispute." Barclay's Appeal, 64 Pa. 69.
In Tyers v. Kahn, 62 Pa. Super. Ct. 24. 28,
the above language was quoted, and that
court held a payment of $50, accompanied
by a letter in whl(di defendant said:
"I do not know of my own knowledge what
I owe you, but I have no doubt you have it
correct. • • • I'll send you some from time
to time as I can untU it is paid"
—was sufficient to toll the statute, where a
statement of the balance had been previously
sent by defendant to plaintiff, and there was
evidence of no other debt to which the pay-
ment could be applied.
[S] In our case the tender of payment on ac-
count was not In fact accepted by the creditor,
and the question arises whether sudi tender Is
equivalent to payment, in so far as evidence of
acknowledgment of the existence of the debt is
concerned. Ordinarily a tender of money does
not operate as a satisfaction of the debt, or
a part of it, as the case may be, and does
not bar an action thereon. 88 Cyc 162. But
to the extent of a recognition or acknowledg-
ment of the existence of an indebtedness it
is unconditional, and where there Is a ten-
der of a part of the debt only, accompanied
by a distinct acknowledgment of the exist-
ence of the remainder, we see no reason in
principle for holding its effect as admission
must depend upon whether or not the amount
tendered was actually accepted by the cred-
itor.
As a rule the refusal of a tender is found-
ed on different grounds from those on which
the partial payment was declined in this
case, and, consequently, gives rise to the ques-
tion as to whether the tender was sufficient,
and should have been accepted by the party
to whom made. The' refusal of an offer of
payment on account for the reason appearing
here Is unusual, and audi refusal, for the
reason stated can have no effect on the legal
question involved in the transaction. As an
acknowledgment of the debt the tender must
be given the same effect as if payment had
been accepted by the creditor.
Counsel for appellants relies upon Huff v.
Richardson, 19 Pa. S88, as authority for
their contention that an unaccepted tender
is not sufficient acknowledgment of the debt
to toll the statute. In that case the decision
was based on an Insufficient acknowledgment
of the amount of the balance due, in that the
promise to pay the balance was without basis
from which the amount of the debt was as-
certainable. True the court stated (page 390) :
"Equally vague and unsatisfactory was the
evidence of acknowledgment derived from the de-
fendant's offering the plaintiff a horse on ac-
count, which did not suit the plaintiff. Part
payment of a debt is acknowled^ent ; but the
offer of a horse, not accepted, is not."
This language does not necessarily indicate
that an offer to pay a debt In part, whether
in cash or in property, is not a sufficient ac-
knowledgment of the Indebtedness. It mere-
ly slgulfles that an offer of property, not ac-
cepted, is not a valid tender, and is consist-
ent with the general rule of law that pay-
ment on a contract cannot be made other
than in money, unless the creditor coiksents
thereto or aoquiesces therein. 80 Cyc. 1187.
In the case cited, inatmd of there being a
consent to the tender of payment, the cred-
itor expressly dissented, stating, "The horse
did not suit him." It la, therefore, not fw-
thority for the proposition that a legal ten-
der of cash on account of a recognized daim
is insufficient, under any circumstances, to
show such acknowledgment of the existence
of the debt as will toll the statuta
The Judgment is affirmed.
(Kg Pa. 57)
BURGESS AND TOWN COUNCIL OF
CHAMBERSBURG BOROUGH v. CHAM-
BERSBURG & G. ELECTRIC KT. CO.
(Supreme Court of Pennsylvania. May 7, 1917.)
1. STBBBT RAXIiROADS «=»38— DuTT or Stbkr
Railboad Comfaitt— Cask or Stbkkts.
A street railway oompany is under the com-
mon-law duty to keep the portions of a street
occupied by its right of way in good oonditioa
and repair.
2. Stbbkt Railboadb ^sSS — w»»ath or
Strbbts— DtJTT OP RxFi:.ACuaBirr.
While a street railway, under its oonunon-
law duty to repair portions of street occupied
by its nght of way, need not tear up a sound
pavement of antiquated style and replace it with
a different and better one, yet if necessity for
repair arises after an improved pavement has
been laid in the remainder of the street by the
city, the dty may require the company to re-
place the antiquated pavement with a new and
unproved one.
3. Stbext Railboaos «=>24(10)— Fkamchise—
oonstbuction.
A mnnicipal ordinance granting a city rail-
way the right to maintain trades in a pablie
street, b«ng a grant of a spedal privilege ia
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I*a4 GHAMBERSBnBG BOItOTXOH t. CHAICBERSBURG A O. ELBO. BT. 00. 923
'derogation of tbi right of- the public to the ful]
and unobstructed use of the street, must be
construed against the grantee and in favor of
the public, and no privileges or exemptions will
be deemed to have passed, unless' givoi in dear
and explicit terms.
4. Speoifio Pebfobmarcb €=»74— CJontbacts
— Enfobcement.
A court of equity may decree specific per-
formance of a contract between a street railway
company and a municipality, whereby the com-
I>any was to keen a portion of the streets oc-
cupied by its rignt of way in proper repair.
6. SPKCinO PEETOBMANClt €=»74 — Paviro
STBEETS— PERFOBMANClt OF CONTBACT.
An ordinance granting the defendant street
railway company the right to use the streets
as a right of way provided that it should be re-
quired at the time of the construction of the
railway to pave the streets between its tracks
and for a dutance of 24 Inches outside of each
rail with material or pavement similar to that
now in use or which may in the future be used
or adopted by the municipality, and keep and
maintain the same in good condition, so that
driving on, off, or across the tracks should be
safe. At the time of construction of the road
the municipality's streets were macadamized,
and defendant macadamized the streets between
its tracks. Thereafter the municipality ordered
repaving of certain streets with vitrified brick,
and defendant thereupon paved its portion of
such streets with the same materiaL Subse-
qnently the municipality ordered the paving of
other Btreeta with vitrified brick, and notified
defendant to pave its portion. Defendant re-
fused, on account of its financial condition.
Held that, as the streets were in need of con-
struction and repair, specific performance of the
contract was properly directed.
Appeal from Court of CommoD Pleas,
BVanklln County.
Suit by the Burgess and Town Council of
tbe Borough of Chambersburg against the
Chambersborg & Gettysburg Electric Rail-
way Company. From a decree directing
spedflc performance of a contract, the de-
fendant apiieals. Affirmed.
Argued before MESTREZAT, POTTER,
HOSCHZISKER, FRAZEB, and WAL-
I/IN6, JJ.
Walter K. Sharpe, O. G. Bowers, and Irvin
G. Elder, all of Oiambersburg, for appellant
Charles Walter, Borough SoL, and Arthur W.
<3illan, both of Chambersburg, for appellee.
FBAZKR, J. Defendant appeals from a de-
cree of' the court of common picas, directing
specific perfonnance of a contract by It to
pave certain streets In the borough of Cbam-
IieTBbnrg, between and adjoining its tracks,
with material similar to that used by the
borough In paving the remainder of the high-
vray. Q^e validity of the decree depends
upon the construction of section 3 of an ordi-
nance of the municipality, adopted June 23,
1902, granting to defendant the right to con*
Btmct and operate a street railway upon a
number of the streets of the borough, subject
to the conditlcws anid restrlctlona therein
mentioned. The section referred to iMX>vlde8,
inter alia, that :
"The said company shall be required, at the
time of construction of said railway, between
Its trades and for a distance of twen^-fenr
inches outside of each rail, to pave with material
or pavements similar to that now in use, or
which may in the future be used or adopted by
said borough, and keep and maintain toe same
in good condition, so that driving on, off or
across said track or tracks shall l>e safe and
not inconvenient, and be constructed so as not
to impede traveL"
Section 17 of the ordinance provides that:
In case of violation of any of its provisions
by the street railway company "the borough re-
serves the right to terminate and cease all rights
and privileges granted."
Hie facts are not In dlsimte. They were
found by the conrt below, and were not ex-
cepted to. At the time defendant constructed
its road, the streets of the borough were ma-
cadamised; and defendant accordingly ma-
cadamized the space between and along its
tracks, and maintained that part in substan-
tially the same condition as the borough
maintained the remaining portion of the
street In 1913 an ordinance was adopted
providing for the repaving, with rltrlfled
brick, of certain streets of the borough, in-
cluding several on which defendant's tracks
were laid, whereupon defendant proceeded to
repave its portion of each street with the
same material, in accordance with plaintiff's
construction of section 3 of the ordinance of
1902. In 1916 a second ordinance was adopt-
ed, providing for the paving of other streets
with vitrified brick, which streets the court
finds were "in need of reconstruction and
repair." Defendant however, on receiving
notice to pave its portion of the highways
to be improved, addressed a letter to the
borough council, stating Its inability to com-
ply with the provisions of the ordinance, ow-
ing to "the present financial condition" of
the company. The borough thereupon insti-
tuted the present proceeding in equity, ask-
ing that defendant be required to pave be-
tween and along its tracks, In accordance
with the provlsioDS of the ordinance granting
it the right to use the streets of the munici-
pality. Defendant contends that, having par-
ed Its part of the street with the kind of
material then used by the borough at the
time its tracks were laid, and having main-
tained such paving in good condition, Its
whole duty in the matter was performed, and
no further obligation rests upon it to repave
with a different material.
[1, 2] Aside from the question of c(»itrao-
tual obligation, 'defendant was under a com-
mon-law duty to keep the portions of the
street occupied by its right of way in good
condition and repair. Reading v. United
Traction Co., 202 Pa. 571, 52 Atl. 106; Bead-
ing V. United TracUon Co., 215 Pa. 250, 64
Atl. 446, 7 Ann. Cas. 380. In the former
case it la held the railway company's duty
to repair tavolves something more than the
mere preservation of the condition in which
the street was found when first occupied by
It In that case the conrt below, in an opin-
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924
101 ATLANTIC REPOBTEB
(Fk.
ion adopted by this eonrt. In quoting from
Philadelphia v. Thirteenth & Fifteenth Sts.
Pass. Ey. Ca of Phlla'delphla, 160 Pa. 269,
33 AtL 126, said (202 Pa. 574, 52 Atl. 106):
"The duty to repair, where it exists, extends
to the replacement of an old pavement by a new
one of a different and improved kind. • • *
The company la bound to keep pace with the
progress of the age in which it continues to ex-
ercise its corporate functions."
And further, referring to Elliott on Roads
and Streets, pp. 594, 595 :
"The doctrine is laid down as the one dedud-
ble from the authorities, that a railway com-
pany, in respect to the condition of its right of
way upon the streets of a city, is bound to re-
pair but not to improve, but that the duty of
making repairs requires them to be made in
such manner and with such materials as will
correspond with the general condition of the
street at the time the repairs are needed; so
that, whilst the company is not compellable to
tear up a sound pavement of antiquated style
and replace it with a different and better one,
yet if a necessity for repairing the pavement
within the right of way arises after an improved
pavement has been laid in the remainder of the
street by the city, the latter may require the
company reasonably to confirm [conform] with
such improved pavement. And it is pertinently
observed [202 Pa. at p. 574, 52 AU. 106]: 'If
it be true that the company is not bound under
the continuing duty to make repairs to corre-
spond with the improved or changed condition
of the street, then the practical result would be
that it would be entirely released from its duty,
since it is quite clear that repairs of any other
character would be without value or service to
the public.'"
The common-law duty on the part of street
railways Is referred to because of Its bearing
on the intention of the parties in their deal-
ings with each other in the present case.
The arjfuraent of defendant that it is bound
to keep in repair only macadam pavement,
regardless of the character of the remainder
of the street, practically amounts to a con-
tention that the company's liability Is limit-
ed to an extent less than its common-law
duty, and that no higher obligation than that
claimed Is Imposed upon It by the ordinance
In question. The word "future," as used In
the ordinance. Is unlimited as to time, unless
the natural meaning of the word is restrict-
ed by other provisions of the ordinance. Al-
though the words "at the time of construc-
tion of said railway" may tend to Indicate
a limitation of the word "future," yet to so
confine Its meaning practically disregards
the clause concerning the similarity of pave-
ment "which may In the future be used or
adopted." The words requiring paving "at
the time of oonstmctlon" of the railway are
not rendered nugatory by giving the word
"future" Its natural meaning, as they may
readily be construed as a wise precaution to
prevent the company from delaying Its part
of the work, so important to the public, for
an unreasonable time beyond the period al-
lowed for construction of the road, and thus
render "driving on, oft or across said tracks"
inconvenient and unsafe. The ordinance re-
quired the entire work to be complete and in
operation within ei^ht months from date of
defendant's 'acc^>tanoe of Its provisions In
writing, which was to be made within ten
days from its passage. It is not reasonable
to suppose a provision requiring the company
to pave with material similar to that which
may in the future be used or accepted by
the borough was Inserted merely for the pur-
pose of covering possible changes in the short
time elapsing between the date of the passage
of the ordinance and the actual coiistructl<m
of the work.
As a further Indication of the Intent of the
borough in granting the franchise, section 15
of the ordinance provides that:
"Nothing contained in this ordinance shall bo
taken or construed to limit or restrict the bor-
ough of Chambersbui^ in making and enforcing
in the future any additional regulations, respect-
ing the construction, maintenance or operation
of the said companv s raUway within the limits
of the said borough, and the said liorough re-
serves the right to require, by ordinance or reso-
lution of its council, the adoption and enforce-
ment of such regulations, at any time_ hereafter,
and removing and replacing of the rails, tracks,
ties, poles, cables, wires or other appliances, at
any time located or erected by the said com-
pany, within the said borough, whenever, within
the judgment of said council, the public inter-
ests shall require it."
[S-6] The ordinance In question Is a grant
of a special privilege affecting the general
public Interests, and In derogation of the
right of the public to the full and unobstruct-
ed use of the streets. Its provisions must
therefore be construed strictly against the
grantee and liberally in favor of the public,
and no privileges or exemptions will be deem-
ed to have passed unless given in clear and
explicit terms. 19 Cya 1459; 28 Cyc. 883.
Tested by these principles, the conclusion
reached by the court below Is correct The
ordinance contemplated the use or adoption
of a different method of paving, consistent
with the growth of the munldpnllty. and the
need Incident to Increased traffic In the fu-
ture generally, and did not limit that term
to the period fixed for completing the work.
This construction of the contract Is farth»
supported by the acts of the parties. Under
the earlier ordinance, defendant, pursuant to
notice from the borough repaved the portion
of the street within Its control and supervi-
sion. With the contract and this constmo-
tlon of its provisions before them, the ordi-
nance of 1916 was passed, and, upoa defend-
ant receiving notice to repave under the later
ordinance. It declined to comply vrlth the re-
quest solely on the ground of Its "present
financial condition." While d^endant at
this time offers an excuse for not having de-
sired to enter into a controversy with the
borough at the time the earlier ordinance was
adopted, the weight to be given such reason
was properly for the consideration of the
court below. We see no valid reason for
changing the conclusion readied in the conrt
below.
The Jurisdiction of the court to spedflcally
enforce a contract of this kind, in lieu of
leaving the borough to its remedy by doing
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Pa.) PENNSYLVANIA CENTRAIi BRBWINa C!0. t. ANTHRACITE B. <X).
925
the work and suing at law for the cost. Is
amply supported by the case of Patton Town-
ship V. Monongahela St Ry. Co., 226 Pa. 872.
76 Aa B8».
The decree of the lower conrt Is affirmed.
(2S8 Pa 46)
PENNSYLVANIA CENTRAL BREWING
CO. ▼. ANTHRACITE BEER CO.
(Supreme Court of Pennsylvania. May 7,
1917.)
1. Tbadx-Mabks and Tbade-Namts «=a6&—
Unfaib Competition.
Where defendant's conduct Is calculated to
pass off his goods as those of another, he is
guilty of actionable unfair competition, and his
freedom from &audalent intent is no defense.
2. Tkadk-Marks and Tbadb-Nameb 18=968—
Unfaib Competition.
A dealer, coming into a field already occu-
Sied by a rival of established reputation, mast
o nothing which will unnecessarily create or in-
crease confusion between his goods and those
of bis rival.
8. TaADE-MARKS AND Tbade-Names «=»75 —
Unfaib Competition — What Constitutes.
Regardless of trade-mark, a manufacturer
has no right to so dress his goods as to deceive
purchasers or dealers into the belief that they
are the goods of another.
4. Tbade-Marks and Tbade-Names €=995(4)
— Unfair Competition— Injunction.
Plaintiff, whose brewing business had been
established for 40 years, distinctively marked
its beer containers by a red band at one end and
a blue band at the other, while chimes and a
ring adjoining on each end were also painted in
colors like the band. E>efendant, who had been
engaged in the manufacture and sale of beer in
a small way for 15 years, and bad previously
marked its barrels with yellow bands, repainted
its containers in all respects practically like
the containers of plaintiff, so that the casual ob-
server would mistake the one for the other. As
a result, plaintiff was caused inconvenience and
delay in collecting its kegs, and plaintiffs cus-
tomers, who could not read English, were unable
to distinguish plaintiff's containers from those
of defendant Held that, though defendant dis-
claimed any fraudulent intent in repainting its
harrels like plaintiff's, and alleged that it did so
because its customers objected to yellow, and it
had a quantity of red paint in stock, defendant
was properly enjoined from continuing to paint
its containers in such a manner as to deceive
plaintiffs trade.
Appeal from Court of Common Pleas,
Lackawanna County.
Suit by the Pennsylvania Central Brew-
ing Company against the Anthracite Beer
Company. From a decree awarding an In-
junction, defendant appeals. Affirmed.
Argued before BROWN, C. J., and POT-
TER, STEWART, FRAZSSt, and WAL-
LING, JJ.
R. W. Archbald, John B. Jordan, and Da-
vid J. Reedy, all of Scranton, for appellant.
M. J. Martin and H. A. Knapp, both of
Scranton, for appellee.
WALLING, J. The bill was filed to re-
strain alleged unfair trade competition. The
E. Robinson's Sons Brewery, for the manu-
facture of lager beer, was established at
Scranton in 1870, and has continued in the
business to this time. In 1897 it became, and
since has been, a branch of the plaintiff
corporation. Its product has always been
sold in containers, to wit, barrels and kegs,
of the customary ' sizes, which for over 40
years Iiave been distinctively marked by a
red band painted around each container be-
tween the first and second hoops at one
end and a blue band similarly painted at the
other. The chimes and a ring adjoining on
each end were also painted in colors like the
bands. For many years the Robinson brew-
ery has done and is doing an increasing
business In Lackawanna county, where its
beer is regarded as of a superior quality
and is largely known among dealers and
consumers by the marking on the barrels
and kegs as above mentioned. There are
many other breweries In the county, each
of which has its containers marked by bands,
rings, etc., painted thereon, but as a rule not
so as to conflict with the markings used by
any other brewery. In all cases the name
of the owner is branded on the beads of the
barrels and kegs.
The Anthracite Beer Company, defendant,
is also located la the same county, where it
has been engaged in the manufacture and
sale of beer In a comparatively small way
for over 15 years. Prior to the summer of
1910 its containers were marked by painted
bands, etc., in which yellow was a prominent
color; but then its barrels and kegs were
repainted, in color, form, and manner. In all
respects practically like those of the plain-
tiff, so that the casual observer would mis-
take the one for the other. As both parties
were doing business in the same locality and,
in many instances, with the same retail
dealers, it at once resulted in confusion from
which plaintiff suffered inconvenience and
damage. While the beer of each was large-
ly sold on credit, it was sometimes sold for
cash, when the similarity of markings would
naturally cause plaintiff damage because of
its larger business and the greater reputa-
tion of its product It caused inconvenience
to retail dealers, who handled both, because
of the liability to tap the wrong keg in the
dimly lifted cellars. It caused trouble and
delay to plaintiff in the collection of its
empty kegs in such cellars and elsewhere.
It caused dissatisfaction to consumers, es-
pecially those unable to read English, and
who recognized plaintiff's product by the
markings on the kegs. Prior to the defend-
ant's change of markings In 1916, no beer
kegs in that county bad been marked like
plaintiff's, except the Bartels Company, do-
ing an inconsiderable business, had used the
red and blue bands, but without the end
markings. Defendant's officers, while per-
sisting in such imitation and Insisting on the
right to continue the same, disclaimed any
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iOl ATIiANTIC REPOETBa
(Pa.
fraudulent Intent and gave as reasons for
adopting colors, etc^ similar to those of
plaintiff, that they had the red paint In
stock, that blue was a more staple color
than yellow, and that there was some senti-
raental prejudice among certain customers
against the last named color ; also that their
red and blue were of a shade different from
plaintltTs. The reasons, however, are not
convincing. The court below found the facta
in favor of plaintiff, and enj(rined defendant
from such Imitation, from which we have
this appeaL
[1-4] In our opinion the principle here in-
volved Is one of unfair trade competition.
As the result of 40 years' business plaintiff's
product was so well known and highly re-
garded as to be In general demand, and rec-
ognized in part by the distinctively marked
containers. In the minds of many custom-
ers, the peculiarly marked kegs of red and
blue naturally suggested the Robinson beer,
and the use of kegs so marked by defend-
ant, whose product was comparatively un-
known, naturally woAed to its advantage
and to plaintiff's loss. It Is not a case of a
trade-mark, technically so called, but of un-
fair competition. In which defendant, by Im-
itating plaintiff's cmitalners, secures to some
extent the benefit of the high standing of
plaintifTs product The similarity of the
containers is such as to naturally cause some
customers to buy the Anthracite beer under
the belief that they were getting the Robin-
eon beer; and also to enable retailers, who
handle both, to substitute the one for the
other. True, the evidence shows that as a
general rule the kegs are kept In the retail-
er's cellar, where they are not seen by the
customer at the time of his purchase; never-
theless it affords some opportunity for de-
ception. The Imitation here would seem to
be likely to deceive the ordinary customer,
and. If so. It should b«> enjoined. Heinz v.
Lutss. 14« Pa. 592, 23 Atl. 814; Juan F. Portn-
ondo Cigar Manufacturing Co. v. Vicente
Portuondo Cigar Manufacturing Co., 222 Pa.
116, 70 Atl. 068. It need not be a literal
copy. "The test is whether the label or mark
is calculated to deceive the public, and lead
them to suppose they are purchasing an ar-
ticle manufactured by a person other than
the one offering it for sale." Scranton Stove
Works v. Clark et al., 255 Pa. 23, 99 Atl.
170. See, also, Pratt's Appeal, 117 Pa. 401,
11 Atl. 878, 2 Am. St Rep. 676. "And It
may be stated broadly that any conduct,
the natural and probable tendency and effect
of which Is to deceive the public, so as to
pass off the goods or business of one person
as and for that of another, constitutes action-
able unfair competition." 38 Cyc. 756. If
the effect be to injure plaintiff, the fact that
defendant bad no fraudulent Intent Is no
defense. Suburban Press V. Philadelphia
Suburban Publishing Co., 227 Pa. 148, 75 Atl.
1037; Amer. Clay Mfg. Co. v. Amer. Clay
Mfg. Co. of N. J., 108 Pa, 189, 47 AtL 936;
RT.FralmixtckCo.v. Shlmer, 43 Pa. Super.
Ct. 221. "A dealer, coming Into a field al-
ready occupied by a rival of established
reputation, must do nothing which will un-
necessarily create or Increase confusion be-
tween his goods or business and the goods
or business of his rival." 38 Cyc. 794. Ir-
respective of the question of trade-mark, a
manufacturer has no right to inclose his
product In packages so like those of a rival
mannfiactarer as to decdve a purchaser, or
to enable a dealer to do so. See Holeproof
Hosiery Co. v. Wallach Brothers (0. C.) 167
Fed. 373; New England Awl & Needle Ca v.
Marlborough Awl & Needle Co., 168 Mass.
164, 46 N. E. 386, 60 Am. St Rep. 377; Coats
V. Merrick Thread Co., 149 U. S. 562, 13
Sup. Ct. 966, 37 L. Ed. 847; Anheuser-Busch
Brewing Ass'n v. Clarke (C. C.) 28 Fed. 410.
In view of the authorities above referred
to, and many more of like Import we are
clearly satisfied that this case was rightly
decided by the court below. It was not nec-
essary for defendant to Imitate plalntUTs
containers; and the fact that the Bartles
Company, which did a nominal business in
the territory, had red and blue bands on Its
kegs, was no Justification for defendant
The painUng on plaintiff's containers, when
considered In Its entirety, constituted sach
a distinctive marking aa defendant had no
right to Imitate.
The assignments of error are overruled,
and the decree Is afllrmed, at the cost of ap-
pellant
(KB Ps. 98)
WEINSCHBNK v. PHILADELPHIA HOMI>-
MADE BREAD CO.
(Supreme Court of Pennsylvania. May 7, 1917.)
1. Masteb and Sebvant ^=278(12)— Acnow
FOB Injuby — Unquaxdkd BJucvatob— Sny-
FiciENCY OF Evidence.
, .^". JS" action for damages for the death of
plaintiflTs husband, killed by fan down an ele-
vator shaft in the bakery where he was em-
ployed, brought on the ground of an unsafe
condition of the premises at the time of the ac-
cident, evidence held to sustain a verdict for
plaintiff.
2. Mastise and Sebvant «=>288(2)— PKBSOifiX
iNJUwr— AsstnipnoN of Risk.
If the employer was negligent in permittiiiK
an unsafe condition of the premises, it could
not be said as a matter of law that the employs
assumed the risks thereof, where the condition
was constantly subject to change, and where
the danger, though always present was not al-
ways imminent
8. Mastbb and Sbbvant «=>270(3)— Aonow
fob Injuby— Evidbnob— Obdinawce.
In such case, the admission of an ordinance
regulating or relating to the maintenance of
freight elevators, offered, not to take away aoy
defense, but merely to prove negligence, was not
error, where the trial court instructed that proot
of the violation of such ordinance was not proof
of the negligence charged, and that it should
be considered merely as evidence tending to
show defendant's negligence.
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WSnrSOHENK T. PHILAIXBZiFHIA H!0MX>>1CADE BREAD CO.
MT
*. ilLunta ARS BxBVAirr «=9258(11)— Aonost
, FOB InjUBT — NBOUaENCE— FUSADDrO JlND
PBOor.
In mich c&se, where the negligence relied
npon was not the maintenance of an improper
and unsafe instrument, but the unaafe condi-
tion of the premises at the time of the accident,
it was not necessary for plaintiff to plead or
proTe that the elevator was more dangerous than
tlioae of the kind generally used.
6. Death «=»g0(4)— Excessiyb DAiCAaxs.
A verdict of $5,616 for the death of a bakery
enaploy^, 45 years of age and in good health, and
who left a widow and aix children, was not ez-
cessiTe.
Appeal from Court of Common Pleas,
Pblladelplila County.
Trespass by Sophie K. Weinscbenk against
the Philadelphia Home-Made Bread Compa-
ny to recover damages for tbe deatb of her
busband. Verdict for plaintiff for $5,616,
and judgment tbereon, and defendant ap-
peals. Affirmed.
Argued before BROWN, O. J., and STEW-
ART, MOSCHZISKEB, FRAZBR, and WAI/-
UNO, JJ.
William H. Peace, of Pbiladelpbia, for ap-
pellant Ruby B. Vale and J. Edgar Wil-
kinson, both of Pbiladepbia, for appellee.
MOSCHZISKER, J. The plalntllTs hus-
band died as a result of Injuries received
while engaged In the service of the defend-
ant company; the wife sued, alleging negli-
gence, and recovered a verdict upon which
judgment was entered. The defendant has
ajqpealed.
[1] Frank P. Weinscbenk was employed as
a dough mixer in defendant's bread bakery,
where he had worked for about eight years
prior to January 22, 1912, the date of the
accident which caused his death; his duties
were performed at night, and tbe fatality
occurred between 4:80 and S a. m. ; the room
-wherein he labored is a large apartment on
the second floor of bis employer's establish-
ment, about 80 feet l<mg and 46 feet wide;
a freight elevator, which ran from the first
to the third story, was located In the north-
-west comer of tbte room; <» the floor In
question, the elevator shaft was solidly in-
closed on three sides, and it could be entered
only when approaching from tbe east; on
the latter side were two gates, one a solid
wooden structure, extending from floor to
ceiling, operated on rollers, which, when
pushed aside by band, exposed a slat gate,
or guard, about five feet high, that moved
vertically by pulleys and weights, and which,
at the time of the accident, also bad to be
operated by hand; on tbe third floor a like
guard worked automatically, so that, when
tbe elevator either ascended or descended,
this gate became locked in place, effectually
barring an entrance into the shaft; original-
ly the gate on the second floor was operated
In the same manner, but It had become out
of order to such an extent that It could be
worked only by hand ; it remained In Oiis de-
fective condition for at least one year prior
to January 22, 1912, and possibly longer, al-
though, "a couple of months before the acci-
dent," the president of the defendant 0001-
pany had been notified by an employe tbat^
if tbe defect were not remedied, somebody
would probably fall down the shaft; "right
after tbe accident" this gate was found upr
and "tbe floor dose to the elevator" wa»
then seen to be "smeary" and "slippery";
there was also other testimony to tbe ef-
fect that this floor was often in a "very slip-
pery" condition, "especially around the ele-
vator"; tbe plaintiff's busband was obliged
to use the elevator from time to time, in tbe
course of his usual employment; he worked
at a dough-mixing machine, located on the
north side of this second-floor room, about 40'
feet east of tbe shaft, with a post between
him and It; the room was Illuminated by
gaslights, with "ordinary plain little burn-
ers," one being on this post, but on the side-
farthest from tbe shaft; two other lights-
were In front and one in the rear of the mix-
ing machine ; tbe testlm(xiy seems to indicate-
additional gas burners on the second floor,
but, so far as we can understand tbe situa-
tion, these Were located on the south side of
the shaft, and ordinarily were not used;
there was no artificial light in the shaft it-
self, and, while tbe plaintiff probably had
sufficient light to observe the location of thi»
inclosure, yet the strong indications are that,
at nighttime, under tbe surrounding condi-
tions, a person on the second floor would
have difficulty in seeing whether or not the-
car, which was Just an ordinary platform
without sides, was actually In place ; the ele-
vator bad no special attendant, and was op-
erated from time to time by any one wb»
had occasion to use It; on the evening prlor-
to his injury, plaintiff's husband, who was
then a man In good health, about 45 years
of age, left home In a "happy and Jolly"
state of mind; be went to bis customary-
place of employment, and was there' last seen
just before the accident; 16 minutes later
be was found in an unconscious condition,
lying on the elevator platform, which was
then at the level of tbe first floor; his skull
was crushed, and he was otherwise badly
Injured; beside him was a can of milk and
a box of yeast, tbe latter of which he may
have been carrying; he was taken to a boe-
pital, and two days thereafter died as a re-
sult of his Injuries; so far as the evidence-
shows, tbe last person to use tbe elevator
prior to tbe accident was one Jacobs, tbe
defendant's engineer.
The man Just referred to testified for tbe
defendant that he saw Weinscbenk fall down
the elevator shaft under circumstances
which, if believed, convicted tbe latter of
clear contributory negligence; but Thomas
McCormick, a witness called on behalf of
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101 ATIANTIO SBPOBCBB
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plaintiff, In rebuttal, testified tliat Jacobs,
from the spot wbere be was standing, could
not bave seen Welnsdienk fall, and the court
below left the question of the credibility of
these witnesses to the jury, saying as to Ja-
cobs, "If you believe him, • • • your
▼erdlct should be for the defendant" After
this, however, the trial Judge pointedly re-
ferred to the value of cross-examination, and
strongly Intimated that he entertained a
grave doubt concerning the veracity of the
witness In question, ending his instructions
by the statement:
"I do not pass any opinion ai to the truth or
falsity of his testimony; it is for you, and
you only. I speak of these matters that I may
help you, if I can, to reach a righteous and
proper verdict"
We must assume, from the verdict render-
ed, that the Jury did not give credence tg the
testimony depended upon by defendant, but
accepted the theory of the plaintiff that the
accident happened as a result of the combin-
ed negligence of the former and its engineer,
Jacobs. True, according to this theory, there
was no eyewitness to the accident; but that
situation is present In many cases where ver-
dicts for the plaintiff have been affirmed,
among others Philadelphia & Beading R. R.
Co. V. Huber et al., 128 Pa. 63, 18 Atl. 334. 6
L. R. A. 439; Henderson v. Continental Re-
fining Co., 219 Pa. 384, 68 AU. 968, 123 Am.
St Rep. 6C8; Milium v. Lehigh & Wilkes-
Barre Coal Co., 225 Pa. 214, 73 Att. 1106;
Tucker v. Pittsburgh, Cincinnati, Chicago &
St Louis Ry. Co., 227 Pa. 66, 75 AU. 991 ;
McManamon v. Hanover Twp., 232 Pa. 439,
81 Atl. 440 ; Madden y. Lehigh Valley R. R.
Co., 236 Pa. 104, 84 Atl. 672; Dannals v. Syl-
vanla Twp., 255 Pa. 156, 90 AU. 475.
If Jacobs left the gates on the second floor
open, when he moved the elevator from that
level. Just prior to Welnschenk's fall, then
we have a case of the former's carelessness
combined with the negligence of defendant
In maintaining a dangerous and unsafe con-
dition at the point of the accident ; and such
a combination would not defeat plaintiff's
right of recovery. Slever v. Pittsburgh, Cin-
cinnati, Chicago & St Louis Ry. Co., 252 Pa.
1, 97 Atl. 116; Kaiser v. Blaccus, 138 Pa. 332,
22 Atl. 88; Wallace v. Henderson, 211 Pa.
142, 146, 60 AU. 574; Deserant v. Cerlllos
Coal R. R Co., 178 U. S. 409, 420, 20 Sup. Ct
967, 44 L. Ed. 1127.
[2] Moreover, if defendant was negligent
In maintaining the condition Just referred to,
since the situation thus created was con-
stantly subject to change, and the dangers,
while ever present were not always Immi-
nent It could not be said as a matter of law
that plaintiff's husband assumed the risks
thereof. Valjago v. Carnegie Sted Ob., 226
Pa. 514, 619, 75 AtL 728.
Beach v. Hyman, 254 Pa. 131, 98 AtL 962,
Is largely depended upon by appellant As
that case was tried. It appears that the sur-
rounding conditions presented no special ele-
ments of danger; fortber, tbat tb» delator
shaft there in qaestiott was equipped with
what 80 far as the evidence Showed, were
proper gates; and In point of fact there
were no contentions to the contrary. Under
these circumstances we held that since no
knowledge or notice had been brought home
to the defendants that the particular gate
which caused the accident had, in fact, been
carelessly suffered to remain open, negligence
upon the part of the latter was not shown.
In the present Instance, however, there was
evidence from which the Jury could find that
doe care In the maintenance of the elevator
gate had not been observed by the defendant
and that under the surrounding conditions,
such negligence was a concurring cause of
the accident; thus the two cases are distin-
guished.
[3] The defendant contends that the court
below erred when it admitted in evidence a
certain ordinance of councils regulating the
construcUon and maintenance of frel^t ele-
vators in the city of Philadelphia. So far as
the record shows, while the ordinance was
allowed in evidence, yet a copy was not phys-
ically handed to the Jury for use in their de-
llberaUons. The attention of the Jury was
called simply to certain parts of the ordi-
nance, namely, those providing that "every
freight elevator shall have Its hatchway sur-
rounded by vertical Inclosures and gates,"
and tbat "all gates must be self-closing, also
fitted with a device to prevent them being
raised until the platform is at the floor land-
ing." When these excerpts were read in
court counsel for plaintiff parUcularly stat-
ed:
"I desire it noted of record that I am not ask-
ing for the admission of this ordinance to take
away from the defendant any right of defense at
all, but simply as bearing on the question of neg-
ligence; and when I say any defense, I mean
speciiically the defense of assumption of risk."
ITurthermore, in charging the jury, the
trial Judge stated:
"Proof of the violation of an ordinance regu-
lating or relating to conduct alleged to have
been negligent is not in itself proof of the neg-
ligence charged. The ordinance and its viola-
tion are matters of evidence to be considered
with all other evidence in the case; but this rule
is limited to cases in which the ordinance re-
lates to the alleged negUgent act ander consid-
eration. • * • Ordinances and their viola-
tion are admissible, not as substantive and suffi-
cient proof of the negligence of the defendant
but as evidence of municipal expression of opin-
ion on matters as to which the municipal aa-
thorities have acted, • • * and are to be tak-
en into consideration with all the other facts la
the case."
The defendant argues that since the ordi-
nance under consideration was not specially
pleaded, it should not have been accepted In
evidence at all. If plaintiff were depending
upon a violation of the ordinance as the sub-
stance of her case, there would be force In
this position; but she does not so depend.
The violation of defendant's duty to observe
due care In relation to the elevator gates
would glTe rise to an action for negligence oa
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COMMONWEALTH y. CITT OF WIKKES-BAKRE
929
common-law prtndples, ivithout regard to
the terms of the ordinance, and the present
suit was Instituted and tried npon this the-
ory; but the ordinance points out what the
munldpality conceives to be due care in that
respect? hence its relevancy. As previously
stated, when the trial Judge submitted this
ordinance to the Jury, he took care to say
that it was evidence only of an expression of
municipal opinion appropriate to the facts in
the case as presented by the plaintiff. The
latter produced evidence to prove the facts
hereinbefore indicated, and the question of
their existence or nonexistence was submit-
ted to the Jury ; on these facts, she contend-
ed that, under surrounding conditions, it was
negligence for defendant to maintain and
permit tlie operation of this freight elevator
with a defective gate^ particularly when no
attendant was in charge of the car. Since
the inner or guard gate of the elevator, on
the second floor, had carelessly been permit^
ted to become out of order, to such an ezt^it
that it was in etTect nonautomatlc, it may be
seen that the ordinance relates, in a measure
at least, to the alleged negligent acts under
investigation, suggesting a municipal view
upon the subject in hand coinciding with
tliat contended for by the plaintiff; and to
this extent it was relevant In other words,
the municipal view, for what it was worth,
was proper for the Jury's consideration. In
negligence cases. Jurors are constantly called
upon to exercise their general knowledge of
the affairs and conditions of life with which
they, in common with others in the commu-
nity, come in more or less constant contact,
and thus to determine whether or not care-
les.sness directly contributing to the accident
under investigation has been proved. This is
ail that the Jurors were asked to do in the
present instance; and the ordinance was in-
troduced simply as an expression of munici-
pal opinion to aid them in their deliberations.
In this we see no error. Lederman et ux. v.
Penna. R. R, Co., 165 Pa. 118, 121, 125, 126,
30 Atl. 725, 44 Am. St Rep. 644 ; Ubelmann
v. American Ice Co., 209 Pa. 398, 400, 58
AtL 840.
[4] The case at bar was not tried upon the
theory of the maintenance of an improper
and unsafe Implement but rather of an un-
safe and dangerous condition of affairs at
the place of the accident; hence it was not
necessary to plead or prove that the elevator
In question was, in fact, more dangerous
than those of the kind in general use.
[5] Finally, the relevant Issues were sub-
mitted to the Jury without error prejudidal
to the defendant; and, considering the age
and earning capacity of plalntifTs decedent,
the verdict of $5,616 is not an excessive one
for this mother and six children. The for-
mer verdict rendered in their favor was $500
more ; in all probability, it was set aside to
permit a second Jury to pass upon the credl-
hllity of defendant's witness Jacobs, and the
present verdict shows that his testimony was
rejected a second time. The case is a close
one in several respects ; but, on Its peculiar
facts, we are not convinced It could properly
have been taken from the Jury, or that the
proof was insufficient to support the ver-
dict
The assignments of error are all overruled,
and the Judgment is affirmed.
(SS Pa. 130)
COMMONWEALTH ex reL SLATTERY, Dist
Atty., V. CITY OF WILKES-flARRB et aL
(Supreme Court of Pennsylvania. May 7, 1917.)
1. Statutes «=>184, 206 — Cohstruotion —
Giving Effect to Statute.
Where there is an apparent conflict between
different parts of the statute, the general le^s-
lative purpose mneft be considered, and, if the
language permits, the statute must be so con-
strued as to give effect to every part tbereol
2. Statutes ®=3l89— Construction.
Literal construction of the language of part
of an act cannot prevail, if another construction
is fairly deducible, which will better effect the
manifest legislative intention, as, if it con be
reasonably avoided, a statute shonld not be con-
strued to defeat the legislative purpose.
8. Municipal Coeporations <S=>108 — Ordi-
nance—Peotest— Form— Statute.
A petition of electors of a city of the third
class, filed within 10 days and signed by voters
equal in number to more than 20 per cent of
the entire number of votes cast for all candi-
dates for mayor at the last preceding general
election, protesting against the passage of an
ordinance and requesting its reconsideration and
repeal, or its submission to a vote of the electors
in the form required by the referendum article
of Act June 27, 1913 (P. L. 568) art. 20, was
sufficient, and was not required to be prepared
and signed in accordance with the initiative ar-
ticle of such act (article 19), as that applies only
to proceedings for the initiation of legislation.
Appeal from CJourt of Common Pleas, Lu-
zerne County.
Petition for peremptory mandamus by the
Commonwealth, on relation of Frank P. Slat-
tery. District Attorney of Luzerne County,
against John V. Kosek, Mayor, and B.. Nelson
Bennett and others, Councllmen, of the City
of Wllkes-Barre. From a Judgment dismiss-
ing the petition, the relator appeals. Re-
versed, and writ ordered to issua
Argued before BROWN, C. J., and MES-
TRKZAT, POTTBRv FRAZBR, and WAL-
LING, JJ.
W. 1. Hibbs, of Plttston, for appellant
John T. Lanehan and C. F. McHugh, both of
Wllkes-Barre, for appellees.
MESTREZAT, J. This is an appeal by the
relator from a Judgment refusing to grant a
writ of mandamus. On October 3, 1916, the
dty coundl of Wilkes-Barre, a dty of the
third class, passed finally an ordinance award-
ing to the Wilkes-Barre Company a contract
for lighting certain streets and public build-
ings of the dty for the term of five years.
Within 10 days, a petition of quallfled elec
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930
101 ^.TliANTIO REPORTSSB
(Pa.
tors of the dty, signed by voters equal In
number to more than 20 per cent, of the en-
tire number of votes cast for all candidates
for mayor, at tbe last preceding general
municipal election at which a mayor was
elected, was presented to and filed with the
city council protesting against the passage
of the ordinance and requesting its reconsid-
eration and repeal by the council, and, upon
failure of the council to repeal the ordinance,
that the same be submitted to a vote of the
people of the city, as provided In articles 19
and 20 of the act of June 27, 1913 (P. L. 568).
The council neglected and refused to recon-
sider the ordinance or to submit the same to
a vote of the electors of the city. Thereupon,
the district attorney of Lozerne county peti-
tioned the court below for a mandamus upon
the mayor and dty councUmen of the city of
Wllkes-Barre commanding them to reconsider
the ordinance, and to cause the same. If not
repealed, to be submitted to the electors of
the city, as provided by the act of 1913. The
mandamus was refused on the ground, as
stated in the opinion of the court, that the
petition was not preceded by a written re-
quest of 100 electors, prepared by the city
clerk, and signed In his oRice on oath before
him, as provided by article 19 of the act of
1913. In a concurring opinion, one of the
Judges of the court Joined in refusing the
mandamus for the reason that article 20 "is
so inconsistent and ambiguous that It ought
to be declared inoperative."
The act of June 27, 1913 (P. L. 668), pro-
vides for the Incorporation, regulation, and
government of cities of the third class. Arti-
cle 19 provides a method for Inaiiguratlng
dty legislation outside the council, and ar-
ticle 20 prescribes a method for submitting
an ordinance to a vote of the electorate be-
fore It becomes effective. Article 19 pro-
vides that any proposed ordinance may be
submitted to the council by a petition signed
by the electors of any dty of the third class ;
and, "upon the written request of one hun-
dred qualified electors, directed to the dty
clerk," he shall prepare such petition within
10 days, and meanwhile notice shall be given
by advertisement that the petition will be
ready for signing at the expiration of the
10 days. Ten days more shall be allowed for
signatures. The signing shall be done In the
dty derk's office only, and the petition shall
be retained there at all times during the pe-
riod of 10 days. Each signer shall add to
his signature his place of residence, and shall
make oath before the dty derk that he Is a
qualified elector of the dty and resides at the
address given. At the end of the "ten days
aforesaid," and within 10 days thereafter,
the clerk shall examine the petition and as-
certain whether it is signed by voters equal
to 20 per centum of all votes cast for all
candidates for mayor at the last preceding
election, and shall attach to the petition his
certificate showing the result of said exami-
nation. If the petition shall be cwtlfled to
contain 20 per centum of the votes cast, as
aforesaid, the derk shall submit the same
to the council without delay. Article 20 pro-
vides that:
"No ordinance passed by the council [with cer-
tain exceptions] shall go into effect before ten
days from the time of its final passage; and if,
during the said ten days, * * * a petition
signed by electors of the dty equal in number to
at least twenty per centum of the entire votes
of all candidates for mayor at the last preced-
ing • • * election at which a mayor was
elected, protesting against the passage of such
ordinance, be presented to the council, the same
shall thereupon be suspended from going into
operation ; and it shall he the duty of the coun-
cil to reconsider such ordinance; and, if the
same is not entirely repealed, the coundl shall
submit the ordinance, as is provided by subsec-
tion (b) of section one of article nineteen of this
act, to the vote of the electors of the city,
* * * and such ordinance shall not go into
effect or become operative unless a majority of
the qualified electors voting on the same shall
vote in favor thereof. Said petition shall be
prepared, signed and perfected in all respects,
in accordance with the provisions of said sec-
tion one of article nineteen, and be examined
and certified to by the derk in all respects as
therein provided."
The position of the learned court below and
of the appellees Is that the petition of pro-
test required by artlde 20 must "be prepared,
signed and perfected In all respects In accord-
ance with the provisions of article nineteen."
It is claimed that such Is the plain require-
ment of artlde 20, and that a compliance
therewith Is a prerequisite to a demand for
a referendum. It Is conceded that the peti-
tion of protest presented to the council was
not prepared, signed, and certified as required
by article 19, and therefore It is contended
that the coundl properly refused to act up-
on It. The relator maintains that the court
misinterpreted article 20 of the act In ques-
tion, and that the petition of protest la not
required to be signed and certified in con-
formity with the provisions of artlde 19, and
that such signing and certification apply only
to the petition required to be filed on the re-
fusal of the council to repeal the ordlnamre.
It Is further claimed that to apply the re-
quirements of the Initiative petition of arti-
cle 19 to the petition of protest In the referen-
dum article would make that part of the last-
named article Inoperative and render it
Impossible of performance.
[1 , 2] In considering certain artldes, in-
cluding 19 and 20, of the act of 1913, in
Commonwealth ex rel. Helnly ▼. Marks, 24S
Pa. 518, 522, 94 Atl. 191, 192, It was said:
"The act in question, like many other _ at-
tempts to legislate upon advanced lines, gi^eB
evidence of having been drawn hastily and with-
out any serious effort to co-ordinate its varioas
parts; but, under such circumstances, it is the
office of the Judidary to apply the established
rules of law and construction, and, when possi-
ble, to reconcile the various legislative provi-
sions, BO that all may stand together and yet
each operate within its own field."
In cases where there is an apparent con-
filct between different parts of a statute.
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COMMONWEALTH v. CITY OF WILKES-BABRB
931
the general purpose of tbe Legislature must
be considered, and, tf the language will per-
<uit, such construction must be applied as
will give effect to every part of the law. A
statute will not be construed so as to defeat
tbe object of the Legislature, If it can rea-
sonably be avoided. Uteral construction of
the language of a part of an act of assembly
cannot prevail, if another Interpretation is
fairly dedudble which will better effect the
manifest purpose of the general legislative
Intent. The purpose and intention of the
whole statute, as derived therefrom, will con-
trol the interpretation of its several parts,
so that the whole may be made effective. It
is presumed, as well on the ground of good
faith as on the ground that tbe Legislature
would not do a vain thing, that it Intends Its
acts and every part of them to be valid and
capable of being carried out. 2 Lewis' Suth-
erland, Stat. Con. (2d Ed.) i 490. "It Is the
duty of the court," says Agnew, O. J., In
Haucb Chunk v. McGee, 81 Fa. 433, 437, "to
reconcile the different parts of a law, if it
can be reasonably done, rather than to de-
clare any part void, and tbus frustrate tbe
legislative action."
( 3] If the petition of protest required by the
referendum article of the act must be "pre-
pared, signed and perfected" In accordance
with tbe initiative article, the clause of the
article requiring tbe flUng of the petition is
Incapable of performance, and is therefore
nullified. This Is apparent from the provi-
sions of tbe two articles in question. The
referendum article 8usi)end8 operation of the
ordinance for 10 days, "and if, during tbe
said ten days, * • • a petition signed by"
not less than twenty per cent, of tbe "electors
of the dty • ♦ • protesting against the
I>assage of such ordinance, be presented to
the council, the same shall thereupon be sus-
pended from going into operation." This pro-
test most, therefore, be presented to the
ooundl within 10 days from the final passage
of the ordinance, or thereafter It is operative
and Is a law of the dty. The proceedings
to initiate legislation under article 10, as
win be observed, require a written request of
100 electors to be presented to the dty clerk
to prepare the petition. He has then 10 days
to prepare the petition, and meanwhile to
advertise notice that the petition will be
ready for signing at the expiration of such
10 days. Ten days more are allowed for
signing which shall be done in tbe city clerk's
office. At the expiration of this period for
signatures, "and within 10 days thereafter,"
the clerk shall examine the petition, and If
tbe requisite number of voters have not signed
it, 10 days more shall be granted to amend,
and If sufficient signatures have then been ob-
tained he shall present the petition to tbe
coundl. It is palpably manifest that a peti-
tltw could not thus be prepared, signed by at
least 20 per cent of the electors, and present-
ed to tbe council in 10 days from the passage
of an ordinance, as required by artide 20 of
the statuta Aside from other requisites of
such a petition, which requires at least 30
days for its completion, the derk, as will be
observed, has 10 days to prepare the petition
and to give notice by advertisement where
and when it may be signed, and thereafter
tbe electors have 10 days for attaching their
signatures. The time for instituting tbe
referendum proceedings by filing a petition
and thereby continuing the suspension oC
the operation of tbe ordinance will expira,
and tbe ordinance become operative, before
the petition can be signed and presented to
tbe coundl.
The settled rules of statutory construction,
as already pointed out, will not permit sudi
a result If it can reasonably be avoided. We
will not presume that the Legislature, by
tbe language of tbe mactment, intended in
bad faith to nullify tbe referraidum article,
and thereby defeat Its express purpose.
There is no ambiguity or uncertainty of pur-
pose in the referendum artide. It plainly de-
clares that no ordinance shall go Into effect
before 10 days after its final passage, and if
the requisite protest is presented to the coun-
dl within that time, tbe operation of tbe or-
dinance is suspended, and, If not entirely re-
pealed, it must be submitted to a vote of the
electors of the city. The two dominant
thoughts in these provisions of the artide
are the suspension of the operation of the or-
dinance and its submission to the popular
vote. The first Is to be carried out by pre-
senting a protest to the coundl. This may
end ail further proceedings on the ordinance.
Tbe coundl is required to reconsider tbe or-
dinance, and, if it is entirely repealed, tbe
legislation is ended. If, however, such ac-
tion be not taken by the coundl, the second
step becomes necessary, and the electorate
must determine by their votes whether the
ordinance ertiall become a law of tbe dty.
The submission is to be made "as is provided
by subsection (b) of section one of article
nineteen of this act," wbidi provides, inter
alia:
"Forthwltli, after the clerk shall attach to the
petition accompanying such ordinance his certifi-
cate of sufficiency, the council shall call a spe-
cial election unless the general municipal elec-
tion is fixed within ninety days thereafter."
It was evidently intended that this submis-
sion should be made on petition, prepared and
signed in accordance with the provisions of
article nineteen. The petition of protest was
regarded as a preliminary proceeding and
as having served its purpose by bringing the
objections of the dectorate to tbe notice of
the coundl. No daborate procedure, such as
is provided by article 19, was deemed by tbe
Legislature necessary in simply entering tbe
protest which. If effective, made unnecessary
an election, and the ccmsequent care and ex-
pense required by tbe machinery of that ar-
ticle in ascertaining tbe duly qualified elect-
ors of tbe dty. The objection that, imlesa
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101 ATIiANTIO REPORTER
(Pa.
the protest la prepared and signed as requir-
ed by the initiative article, It cannot be
known If the requisite number of signatures
has been obtained Is not well taken. If that
becomes a question of importance in any case,
It must be determined by the courts in the
usual way. The burden Is upon those enter-
ing the protest against the ordinance to show
that they have complied with the require-
ments of the statute as to the number of sign-
ers, as well as in other respects, and, fail-
ing to do so, the protest falls, and the ordi-
nance becomes operative and is a law of the
city.
Our construction of the referendum artide
makes it intelligible and enforceable, and
hence carries out the intention of the legis-
lature in the enactment of the statute.
The Judgment refusing the mandamus is
reversed, and the writ is ordered to be
awarded as prayed for.
(2SS Pa. IM)
In re VERHOVAT AID ASS-N^S CHARTER.
(Supreme Ourt of PeDDSylvania. May 7, 1917.)
Appeai, and Ebbor «=»1010(1)— Question or
Fact— Amendment or Chabteb.
An appeal from the lower court's refusal to
allow an amendment of the charter of a benefi-
cial as!K)ciation incorporated under Act April 6>
1893 (P. L. 101, 10 aa to change its principal
office from a town in the county where it was
created to a city in another county, will be dis-
missed, where the lower court found that there
was no clear proof of the desire of its members
to amend the charter.
Appeal from Ck>urt of Common Pleas, Lu-
seme County.
Petition to amend the charter of the Ver-
bovay Aid Association, a fraternal and ben-
eficial assodation. From a decree refusing
the petition, petitioners appeal. Appeal dis-
missed.
From the record it appeared that, at a
convention of the Verhovay Aid Association,
the majority of the 202 delegates voted in
favor of the change in the location of the
association's principal place of business.
There was no evidence as to whether the
delegates at such convention voted upon the
authority and with the knowledge of the
branches and members, or merely upon their
Individual judgment. The membership of the
association was approximately 16,000. Fur-
ther facts appear by the opinion of the Su-
preme Court
Argued before BROWN, a J., and MES-
TREZAT, POTTER, FRAZER, and WAIi-
I/ING, JJ.
John H. Blgelow, of Hazleton, Harry
Doerr, of Johnstown, and John R. Sharpless,
of Hazleton, for appellants. M. A. Kilker, of
Glrardville, and John J. Kelley, of Hazleton,
for appellee.
PER OmilAM. The appellant was Incor-
porated by the court below on September 8,
1901, under Act April 6, 1893 (P. L. 10). That
act provides that its charter must set forth
where its principal office is to be located, and
Hazleton, Luzerne county, was named in the
charter as the location of that office. This
appeal is from the refusal of the court below
to allow an amendment to the charter, diang-
ing the place of appellant's principal office
from Hazleton to Pittsburgh, Allegheny
county.
The petition to amend was denied for the
reason that there had not been clear proof of
the desire for the amendment on the part of
the membership of the association. We have
not been convinced that this was error, even
If the court had authority to allow the amend-
ment It declined to pass upon that question,
and we shall therefore not now consider It.
Appeal dismissed, at appellant's costs.
(2E8 Pa. 127)
COMMONWEALTH ex rd. McADOO
BRANCH, NO. 11, VERHOVAY AID
ASS'N, V. VERHOVAY AID ASS'N.
(Supreme Court of Pennsylvania. May 7, 1917.)
Mandamus ®=>138— SuBjE<n>-AcT8 of Offi-
cers OF Beneficial Society.
Mandamus was properly awarded, on rela-
tion of members, to compel officers of a beneficial
society, who has changed its principal place of
business to another county from that in which
they were authorized by tiieir charter to main-
tain it, without having complied with society's
constitution and by-laws, to compel them to
maintain a principal office in town in which it
was originally located until legally authorized
to remove it.
Appeal from Court of Common Pleas, Lu-
zerne County.
'Petition for mandamus by the CVmmoo-
wealth, on relation of McAdoo Branch, No.
11, Verhovay Aid Association, against the
Verhovay Aid Association, a beneficial so-
ciety, to compel it to maintain a principal
place of business in the city in whidi it was
directed to be malntalnied by the by-laws.
Judgment for relator, and defendant appeals.
Affirmed.
The facts appear from the following opln-
Ion by Fuller, J., in the common pleas:
The plaintiffs are members of the defendant,
a secret fraternal and beneficial society, incor-
porated by this court under Act April 6, 1S93
(P. L. 10), and complain that the principal of-
fice of the defendant has been unlawfully moved
from the city of Hazleton, designated in the
charter, to the city of Pittsburgh; wherefore
they pray the court "to issue a writ of man-
damus to the said Verhovay Aid Association
and to the officers, defendants above named,
commanding the defendants to locate the prin-
cipal office of the said association in the said
city of Hazleton, and to keep and maintain the
same therein." The case, after being put at
issue by petition and answer, was by agreement
submitted to the court without a jury under
Act April 22, 1874 (P. L. 10»).
From the pleadings and evidence, we find the
following facts:
(1) The Verhovay Aid Association, defendant
«=9For other cue* sm urn* topic aod KBY-NUUBER In all Key-Numberad DleesU and Indn«
Digitized by LjOOQIC
Pa.)
L'HOMMEDIISU ▼. DELAWABE, L. A W. B. CX>.
corporation, of whom the individual defendants
are the chief officers, as named in the caption,
was incorporated by this court September 8,
1901, under Act April 6, 1893 (P. L. 10), for
the purpose of "the organization of a beneficial
relief society or association which will pay the
members sick tmd funeral benefits from funds
collected by assessment on the membership of
the society, and for more fully carrying out this
purpose it is the intention to create subordinate
or branch societies, wherever it may be to their
interest to do so." In the charter it is provided
"that the place where its principal office is to
be located is the city of Hasleton, county of
Luzerne, state of Pennsylvania."
(2) The plaintiff, McAdoo Branch No. 11, is
a subordinate or branch society of the Vechovay
Aid Association, and the individual plaintiffs
are members thereof with standing to make this
complaint.
(S) By a proceeding in this court, filed June
10, 1913. to No. 134, October term, 1913, it
was sought to amend the charter by changing
the location of the principal office from the
city of Hazleton in this county to the city of
Pittsburgh ; but by decision of this court, filed
August 14, 1913, the application was refused,
on the ground that the proceedings had not been
preceded by certain preliminary requirements of
the constitution and by-laws of the association.
(4) A second proceeding was subsequently
filed to No. 2428, October term, 1914, but was
later withdrawn without submission to the
court.
(5) From the date of incorporation until the
latter part of September, 1914, the principal
office was kept and maintained in the city of
Hazleton as designated in the charter, but in
the latter part of September, 1914, it was re-
moved for all practical intents and purposes in
the transaction of the corporate business, to
the city of Pittsburgh, where it has been since
maintained and is now maintained, although as
a matter of form, without substance, it con-
tinued to bold possession of a room, which it
designates an office, in the city of Hazleton. No
proof has been adduced that this removal was
preceded by compliance with the requirements
of the constitution and foy-Iaws, which in the
application to the court were held essential as
already stated, supra (3).
No requests have been submitted on either
side. From the facts we state, without hesita-
tion or citation, in a matter which seems en-
tirely free from doubt, the following conclusions
of law:
(1) The plaintiffs have standing to demand
conformity with the provision of the charter
relative to the location of the principal office
and to insist that it shall remain at Hazleton
until legally removed to some other place.
(2) They are therefore entitled to have a
peremptory mandamus as prayed, issuable on
special motion, 20 days after signing of this
Judgment, subject to further hearing and argu-
ment on exceptions, if any be filed.
The lower conrt granted the writ of man-
damus as prayed for. Defendant appealed.
Argued before BROWN, C. J., and MBS-
TREZAT, POTTDR, PUAZER, and WAU
LING, JJ.
John R. Sharpless and John H. Blgelow,
both of Hazleton, and Harry Doerr, of Johns-
town, for appellant. John J. Kelley, of Hazle-
ton, and M. A. Kilker, of GirardviUe, for ap-
pellee.
PER CURIAM. This Judgment Is affirm-
ed on the facts foiud and legal conclu-
sions reached by the learned court below.
Oa Fa. U5)
L'HOMMEDIBU v. DELAWARE, L. ft W.
R. CO.
(Supreme Court of Pennsylvania. May 7, 1917.)
1. Oahbixbs «=>337 — Pebsonal Iwjubt— As-
sumption or Risk.
A passenger, leaving his seat while the train
is still in motion t>efore reaching his station,
and standing in the vestibule with his fingers
on the jamb of the car door, assumed the risk
of injury to his fingers when the door was shut
by a trainman, not shown to have seen his dan-
ger or to have acted wantonly.
2. Cabbiebs ®=>302(3) — Pebsonai, In^obt —
Neguobnce.
In such case the trainman, acting within
the oroper line of his duty, was under no obliga-
tion to see that the passenger's fingers were on
the Jamb of the door, or to foresee any reasonable
probability that they would be there.
Appeal from Court of Common Pleas, Lu-
zerne Ooimty.
Trespass by Arthur R. L'Hommedieu
against the Delaware, Lackawanna ft West-
em Railroad Company to recover damages
for personal Injuries. E^m a Judgment re-
fusing to take oft a compulsory nonsuit,
plaintiff appeals. Affirmed.
The facts appear in the following opinion
of the court In banc:
The plaintiff, a passenger in a day coadi on
defendant's vestibuled train approaching Scran-
ton, when the station was called and the car
door into the vestibule was opened by the train-
man, left his seat and went forward into the ves-
tibule, preparatory to alighting. There he took a
position facing the unopened vestibule door,
through which he expected to go. In order to
steady himself in that position, he placed his
right hand airainst the jamb of the car door, with
his fingers in the space between the door and
the jamb. Before the station was reached, the
trainman who stood in the vestibule in front
of the plaintiff reached into the car and pulled
shut the open door upon the plaintiffs fingers,
inflicting ue injury for which the action was
brought. The reason for thus shutting the door
was not disclosed on the trial, as the defendant
offered no evidence.
[1,2] There is no proof that the trainman
actually saw the position of the plaintiffs fingers,
nor is there any contention that he acted wanton-
ly, as he must have done if he had seen; but
the claim is advanced, as the foundation of lia-
bility, that he ought to have seen, and in the
exercise of due care for the safety of the pas-
senger should not have closed the door without
warning or other precaution.
We cannot sustain this view. There is no
evidence that the trainman was not acting within
the proper line of his duty, and presumptively
he was so acting when ho shut the door. He
was under no obligation to see where the plain-
tiffs fingers happened to be, nor to foresee any
reasonable nrobability of their being placed in
such a precarious position. The plaintiff, by
leaving his seat and standing in the vestibule,
assumed the risk of what happened, even if ha
were not guilty of contributory negligence in so
doing.
We need not go so far as to decide that he was
guilty of contributory negligence, nor will we de-
cide that he was not guilty thereof, and thus
run the risk of creating, with slight ground for
distinction, an exception to the salutary rule of
authority that a passenger on a railroad train
should not leave his seat for the purpose of
alighting until the train comes to a stop.
es>Far other cases see same topic and KBT-NVUBER In all Key-Numbered Digests and Index*
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934
101 ATLANTIC REPORTBB
(P«.
We pass over the question of contributory neg-
ligence altogether, and we hold that the nonsuit
was properly allowed for lack of proof establish-
ing negligence on the part of defendant's em-
ploy*.
The lower court entered a compulsory non-
suit, which it subsequently refused to take
off. Plaintiff appealed.
Argued before BROWN, C. J, and MES-
TBEZAT, POTTER, FBAZER, and WALI>
ING, JJ.
Franit A. McGuigan and Harris B. Hamlin,
both of Wilkes-Barre, for appellant. Benja-
min B. Jones, of Wilkes-Barre, and J. U.
Oliver, of Scranton, for apt)ellee.
P£R CURIAM. It clearly appears, f^m
the cwidse opinion of the court below refus-
ing to take off the nonsuit, that no negligence
of defendant was shown, and on that opin-
loD the Judgment is affirmed.
(K8PB.U7)
In r« MINERS' BANK OF WILKES-BARRE.
Appeal of HANCOCK.
(Supreme Court of Pennsylvania. May 7, 1917.)
TBU8T8 «=»59(2), 140(1)— COHBIBUCnON— Lux
ESTATB— DiSTBIBUnON.
Where a husband and wife, owning royalties
under coal leases, conveyed them to a trustee
to pay the husl>and a certain sum annually for
life and to pay one-qtiarter of the balance of
the income to the wife during his lifetime, and
after his death to pay her what she would be
entitled to receive under the intestate laws, and
to pay the balance in equal shares to his three
childreu, the deed of trust limited her estate in
the royalties to a life estate, and the trust was
revoked by her death after that of her husband,
and the fund was payable to the three children
in equal shares.
Appeal from Court of Common Pleas, La-
ze me County.
Case stated in the matter of the Miners'
Bank of Wilkes-Barre, successor to the Min-
ers' Savings Bank of Wilkes-Barre, trustee
for William James Hancock, Louise B. Han-
cock, and Anna M. Hancock Smith, to de-
termine the rights of the parties under a
declaration of trust. From a decree of the
common pleas, Luzerne county, Louise B.
Hancock appeals. Affirmed.
The facts appear by the opinion of the
lower court, per Woodward, J.:
The Miners' Bank of Wilkes-Barre succeeded
the Miners' Savings Bank as trustee in a deed
of trust from William Hancock and wife, datt-d
November 19, 1901, nroWding for the distribu-
tion of coal royalties arising under three sepa-
rate leases in said assignment set forth. As the
rights of the parties depend upon this assign-
ment, we will here set it out in full :
"Know all men by these presents, that we,
William Hancock and Isabella B. Hancock, his
wife, parties named in the following mentioned
coal leases, viz.: First. That certain coal lease
between Jonathan Hancock, William Hancock et
al. with the I^high Valley Coal Company, dated
the 1st day of January, A. D. 18!»1, and re-
corded in the recorder's office in and for the
county of Luzerne, Pennsylvania, in Deed Book
No. 300, page 314, etc Second. That certain
coal lease between David Perkins, William Han-
cock et al., and the Mt Lookout Coal Company
dated the 2l8t day of February, A. D. 1SS9, and
recorded in the aforesaid Luzerne county, in
Deed Book No. 315, page 22. Thinl. That cer-
tain coal lease l>etween William Hancock and
wife and the Mt. Lookout C!oal Company, dated
the 27th day of February, 1898, and recorded
in the aforesaid recorder's office, in Deed Book
No. 314, page 505, for and in consideration of
the sum of one dollar, to us in hand paid at and
before the sealing and delivery hereof, tlie re-
ceipt whereof is hereby acknowledged, do by
these presents assign, transfer and set over nslo
the Miners' Savings Bank of Wilkes-Barre, Pa.,
trustee, its successors and assigns, all oor right,
title and interest in and to the aforesaid tliree
coal leases, and in and to the measoages, tene-
ments and tracts of land the'r^ mentioned and
described, as well as all the coal royalties or
rents therein secured to be paid, as well those
now due as those hereafter to fall due thereon.
TV> have and to hold the same in trust, nerverthe-
less, for the following uses and purposes, vis.:
To receive and receipt for all moneys due or
hereafter due under the above-mentioned coal
leases, or any of them, and after deducting a
reasonable sum for the costs and expenses of
this trust, to distribute and pay over the same
as follows: First, to nay to William Hancock,
one of the above-mentioned assiniors, three hun-
dred dollars per year in quarterly installments
of seventy-five dollars each, as the royalties are
paid in; second, to pay one-fourth of the bal-
ance thereof to Isabella B. Hancock, one of the
assignors hereof, during the life of the above
named William Hancock, and after his death, to
pay to the said Isabplla B. Hancock, sadi
amount as she would be entitled to receive un-
der the intestate laws of the commonwealth of
Pennsylvania, as widow of the said William
Hancock ; third, to pay the balance in equal
shares to William James Hancock, Louise B.
Hancodc, and Anna M. Hancock Smith, their
heirs and assigns— all to be nayable likewise
quarterly as the same may be received by the
said trustee. And upon the further trust, to
enforce payment of all royalties due or to fall
due under the said leases, by due process of
law or otherwise as in the said leases provided,
and to enforce performance of the covenants of
the said leases as fully as the said William Han-
cock might or could do wer« he still tlie owner
thereof, and the title still remained in liim.
This assignment is to be irrevocable during the
life of the above named William Hancock and
Isabella B. Hancock and the life of the sur-
vivor of them.
"In witness whereof, we, the above-named
William Hancock and Isab^la B. Hancock, his
wife, have hereunto set our hands and seals this
nineteenth day of November, A. D. one thousand
nine hundred and four (1904).
"William Hancock. [SeaU
"Isabella B. Hancock. [SeaL]
"Merritt Sax.
"Anna M. Hancock Smith.
"Witness as to the signature of Isabdla B. Han-
cock:
"G. F. Townend."
The trustee distributed the coal rentals and
royalties under this assignment down to the
death of Isabella B. Hancock, the surviving as-
signor on the 9th day of October, 1914, accord-
ing to the terms of the assignment; that is,
!F3U0 a year to William H. liancock, and one-
fourth of the balance to Isabella B. Hancock
during his life, and after his death on the 8th
day of February, 1906, one-third to Isabella oni
the balance in equal shares to their three chil-
dren, Anna, William, and Louise. After the
death of Isabella B. Hancock, the trustee eontin-
ued to distribute the royalties paid under the
9For other coses ■«• same topic aud KEY-NUMBER in all Key-Numbered Digests and ladezas
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Pa.)
IN RB MURPHY'S ESTATE
935
leases two-ninths to Anna M. Hancock Smith,
two-ninths to William James Hancock, and two-
ninths to Louise B. Hancock, retaining in its
hands one-third of the ag^egate royalties for-
merly paid to Isabella during her life, which is
the balance shown by the account in the case
stated, the "iropcr distribution of which is the
quration now before the court. Isabella B. Han-
cock, at her death on the 9th day of October,
1914, left a will dated January 31, 1908, in
which after giving specific bequests of $100
to each of her children, William and Anna, she
gave the residue of her estate to her daughter
Louise, subject to certain trusts.
The questions for the court as set forth in the
ca^e stated are as follows :
A. What estate was given Isabella B. Han-
cock?
(ft) lafe estate only, or
(b) One-third of the royalties absolutely, and
therefore to whom shall the trustee pay the bal-
ance on hand?
(c) Is there a difference between the interests
under the Lehigh Valley Coal Company lease and
the other leases?
B. Is the trust a continatng one, or does it
terminate with the death of Isabella B. Hancock?
I. If the court shall be of the opinion that
Isabella B. Hancock took only a life estate in
all the royaltips. then distribution shall be made
to the three children In equal shares.
II. If the court shall be of the opinion that
Isabella B. Hancock took one-third of the roy-
alties absolutely, then distribution of said fund
shall be made to the executor and ezecntriz
under her will for distribution to the benefi-
ciaries therein named.
III. If the court shall be of the opinion that
Isabella B. Hancock took only a life estate in
the royalties arising under the i^bigh Valley
Coal Company lease and one-third absolutely in
the Mt. Lookout Coal Company leases, then dis-
tribution to be made in the proportions above set
forth between the parties entitled thereto.
The court is of the opinion :
A. That Isabella B. Hancock's estate was lim-
ited to a life estate only by the assignment, and
that there is no difference in this respect be-
tween her interest under the Lehigh Valley Coal
Company lease and the other leases.
B. The trust was revoked bv the death of
Isabella B. Hancock. It follows from this opin-
ion that distribution shall be made to the chil-
dren in equal shares, and this without any dis-
tinction between the leases.
The assignment from William Hancock and
Isabella B. Hancock, his wife, to the Miners'
Savings Bank of Wilkes-Barre. Pa., trustee, its
successors and assigns, was of all their right,
title, and interest in and to the three coal leas-
es, and in and to the tracts of land therein de-
scribed, as well as all the coal royalties or rents
therein secured to be naid, as well those now due
as those hereafter to tall due thereunder. By
this assignment William and Isabella B. Han-
cock divested themsdves of all their interest in
these leases, so that when she made her will on
January 31, 1908, Isabella had no interest in
the leases' or the land described therein, or the
royalties thereunder, that she could dispose of
by will.
The intention of the parties as expressed in
their language seems free from doubt. It was
to secure the estate to their three children in
equal shares, subject to certain life payments,
which they reserved to themselves. It was
to give up their former rights in the leases and
the coal, and substitute therefor other rights
specified in the assignment, to wit, on the part
of William, to substitute for his interest, which
was entire and absolute, a yearly cash payment
of $300 a year; on the part of his wife, to
substitute for her interest, whether dower or
such as the intestate laws gave her in her hus-
band's personal estate, a cash payment of one-
fourth the royalty during his life after his $300
was deducted, and one-third after bis death.
The trustee was to pay money, and when they
directed the trustee, after the death of William,
"to pay to the said Isabella B. Hancock such
amount as she would be entitled to receive under
the intestate laws of the commonwealth of Penn-
sylvania as widow of the said William Han-
cock," they meant "such amount" of money.
It was a rather clumsy method of measuring the
amount of money to be paid, to wit one-third.
They did not mean that the trustee was to con-
vey a one-third or other interest in the estate to
the widow. This was the interpretation of the
language put upon it by the widow, for she
accepted the one-third of the royalty in cash
and made no demand for a conveyance of an
interest in the leases or the coal.
The assignors divested themselves of their
former estates during the term of the trust, and
neither had anything to dispose of during that
term. If Isabella had died first, William would
have continued to receive $300 a year, nor could
h^ have conveved anv interest by deed or will.
William derived his estate by descent from his
father. If his interest in the coal after it was
leased was real estate, his wife had a dower in-
terest, which could only be released by her own
act, but which she released when she executed
the assignment. If his interest was personalty,
he could convey it without any act on her part,
and did convey it when he executed the assign-
ment. He conveyance was absolute during
the term of the trust, whidi was coterminous
with the life of the survivor. On her death, the
trust ended, and the estate passed to the three
children in equal shares.
The lower court decreed that the balance
in the hands of Uie trustee be equally dis-
tributed among the three children of the
creators of the trust. Louise B. Hancock
appealed.
Argued before BBOWN, C. J, and MES-
TREZAT, POTTER, PRAZER, and WAD-
LING, JJ.
Edmund E. Jones and William C. Price,
both of Wilkes-Barre, for appellant. J. Q.
Creveling, of Wilkes-Barre, for appellee.
PER CURIAM. The decree in this case
Is affirmed, at appellant's costs on the opin-
ion of the learned court below, in pursu-
ance of wliich it was entered.
(26g Pa. 3S)
In re MURPHY'S ESTATE,
(Supreme Court of Pennsylvania. May 7, 1917.)
1. Attornet and Client «s»154— Fees— De-
duction FBOM Funds.
An attorney, who has money in his hands
which he has recovered for his client, may de-
duct his fees from the amount, and payment of
the balance is all that can be legally demanded.
2. JuRT (S=>12(1)— RioTiT TO Jury Trial.
Where there is a dispute over the terms of
an agreement as to fees to be paid, the client
contending that the attorney's deduction of fees
is too large, the question is one of fact, and
the attorney does not lose the right to jury trial
because he is an officer of the court
3. Attorney and Client «=>126(2) — Pro-
ceedings—Rule.
Petitioner, allei^ng that she had received a
check for $4,500 from the executor of her hus-
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936
101 ATLANTIC BBPOBTER
(Pa.
band's estate in payment of part of her sbarei
thereof, and bad iDdorsed it to respondent, an
attorney, who deposited it to his account and |
paid petitioner $2,500, retaining the balance aa
compensation for his services, filed a petition in
the orphans' court for a rale to show cause why
respondent should not pay over to her the sum of
$2,000, less his reasonable fees for services ren-
dered, claiming that the agreed fee did not
amount to ^,000. Held, that the orphans' conrt
has no jurisdiction to require an attorney to
Eay hia client funds which have come into his
ands, where it appears that the attorney has
paid over part of such fund and retained the
balance aa compensation, and there is no alle-
gation of fraud or misconduct on the ]?art of the
attorney; and hence, the question being one of
fact, the petition was properly dismissed, the
respondent being entitled to jury trial.
Appeal from Orphans' Court, Lackawanna
County.
In the matter of the estate of Bernard J.
Murphy, deceased. Petition by Ella Murphy
for rule to show cause why George F.
O'Brien, an attorney at law, should not pay
over to petitioner certain funds in his hands.
B^om a decree discharging the rule to shoiw
cause, petitioner appeals. Dismissed.
The facts appear In the following petition
of Ella Murphy:
To the Honorable M. F. Sando, President Judge
of the Orphans' Court of Lackawanna
County:
The petition of Mrs. Ella Murphy respectfully
represents: That George F. O'Brien is a duly
qualified attorney practicing chiefly in the courts
of Luzerne county, state of Pennsylvania, but
is a registered member of the bar of Lockawan-
na county and of the bar of the orphans' court
of the said county; that your petitioner is the
widow of Bernard J. Murphy, late of the city
of Carbondale, county of Lackawanna, and state
of Pennsylvania, who died testate and whose
will was duly probated in the register's office in
said county, and whose estate is being adjudicat-
ed in your honorable court; that shortly after
the death of the said Bernard J. Murphy, your
petitioner employe<i the said George F. O'Brien
as her attorney to represent her in a proceeding
relating to the administration and distribution
of tbe estate of her late husband; that it was
agreed then and there between the said George
F. O'Brien and your petitioner that his fee or
compensation for all work that should be done
for and on her behalf, relating to the protection
of her interests in the said estate and the se-
curing of her share therefrom, should not exceed
the sum of $500; that your petitioner was not
the administrator or executor of the said estate,
and that, therefore, the said George F. O'Brien
had nothing to do with conserving the affairs of
the estate, gathering in its assets, or distribution
to the creditors, except to guard the interests
of your petitioner; that under tbe advice of tlie
said Geon;e F. O'Brien your petitioner elected
to take against tbe will of the decedent, and
that tbe proper pr(x:eeding8 were taken by the
said George F. O'Brien to secure the interests
of your petitioner in that belialf, and that his
action in this regard was practically all that
was done by the said George F. O'Brien for or
on behalf of your petitioner ; that such proceed-
ings are simple, perfunctory, and not complicat-
ed; that the procce<lings were so proceeded
with; that your petitioner was awarded out of
the said estate the sum of $4<500; tliat this
sum of money was paid to her by a check drawn
by the executor in the office of Joseph O'Brien,
of the Lackawanna bar, in the Menrs Building,
city of Scranton, said check being payable to
her order and being handed to her by the said
Joseph O'Brien in the presence of her then at-
torney, George F. O'Brien; that at the sug-
gestion of her said attorney, George F. O'Brien,
your petitioner and the said George F. O'Brien
proceeded to the Hotel Casey, in said city of
Scranton, where your petitioner was induced by
her said attorney, George F. O'Brien, to indorse
the said check over to him, the said George F.
O'Brien; that thereupon the said George F.
O'Brien, having secured possession of the said
check, retained the same and delivered to your
petitioner his own personal check in the sum of
$2,500, and departed, retaining the check for
$4,500; that this was done against the protests
of your petitioner; that the said George F.
O'Brien subsequently deposited the said check
of $4,500, and has received the money thereon:
that he has thereby retained out of the sum of
$4,500, secured from your petitioner, tbe sum of
$2,000; that demand has been made upon him
to pay over to your petitioner the said money,
after the deduction of a reasonable fee, but the
said G«orge F. O'Brien has neglected and refus-
ed to pay over the said sum of money to your pe-
titioner or ony port thereof.
Wherefore your petitioner prays that a rale be
granted upon the said George F. O'Brien to
show cause why he should not pay over to your
petitioner the said sum of $2,000, or such part
thereof as remains after the deduction of such
reasonable fee for bis services as to your honor
may seem proper.
Answer of George F. O'Brien:
To the Honorable M. F. Sando, President Judge
of the Orphans' Court of Lackawanna
County:
George F. O'Brien, answering the petition in
above-entitled case, avers: That your respond-
ent is a qualified attorney, a member of tbe bar
of Luzerne county, and of the Supreme Court of
Pennsylvania. That Bernard J. Jilurphy, late of
tbe city of Carbondale, died on April 24. 1914,
testate, leaving to survive him a widow and no
issue. That by tbe terms of the will of the
said Bernard J. Murphy, deceased (which will
is probated in the office of the resrister of wills
of Lackawanna county, to No. 52 of 1914), the
said BTlla Murphy, petitioner, was lett Dut a
small annuity. 'Hiat shortly after the death of
the said Bernard J. Murphy the petitioner sent
for your respondent and retained him to repre-
sent her in the settlement of the said estate.
That on the advice of your respondent the peti-
tioner, Ella Murphy, elected to take against the
will of her deceased husband, Bernard J. Mur-
phy, and through the efforts of your respondent
she was awarded by your honorable court, on
Mardi 15, 1915, the sum of $5,300. and in addi-
tion thereto one-half the balance of tbe estate
of said decedent, which In all, will amount to
more than $20,000. That your respondent, who
has continued to represent the petitioner since
his original employment, specifically denies that
it was at any time agreed between him and tbe
petitioner that his fee or compensation for all
work that should be done for her on her behalf
relating to the protection of her interest in the
said estate, and the securing of her share there-
from should not exceed the sum of $500, and
avers that the petitioner agreed to pay your
respondent for his services the sum of $2,000,
and in addition thereto his actual expenses in-
curred by reason of his employment, the said
sum of $2,000 to be paid by tbe petitioner out of
the first moneys to be received by her from the
said estate. 'That In pursuance of said agree-
ment tbe petitioner, Ella Murphy, on the 18th
day of December, 1915, did knowingly and will-
ingly pay to your respondent the said sum of
$2,000, and is still indebted to your respondent
tor expenses incurred by him in the course of
his employment, and for legal services on mat-
ters not connected with the said estate, amount-
ing to $500. Tliat the petitioner made no com-
plaint in reference to the fee paid by her to said
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937
respondent for many weeka after the payment
thereof, or until the middle of February, 1916,
when your respondent was notified by counsel
for the petitioner in these proceedings that she
was dissatisfied with the amount paid by her to
your respondent.
Wherefore your respondent prays that the pe-
tition in this case, unjustly brought, shall be dis-
missed, at the coats of the said petitioner.
Motion to discharge rule:
Now, to wit, August 28, 1916, comes George
V. O'Brien, the respondent in the rule granted
in the above-stated case, and by his attorneys,
Charles 6. Lenaban and David J. Reedy, moves
to dismiss the rule granted on him, and assigns
therefor the followug reasons: (1) The court
has no jurisdiction of the person of George F.
O'Brien, for tbe reason that he ia not a mem-
ber of the orphans' court of this county. (2)
The court has no jurisdiction of the subject-mat-
ter in controversy.
Wherefore the respondent praya that the rule
be dismissed.
Other facts appear in the opinion of the
Supreme Court The court discharged the
rule. Petitioner appealed.
Argued before BROWN, C. J., and POT-
TER, STEWART, FRAZBK, and WALLING,
JJ.
H. W. Mumford and E. A. De Laney, both
of Scranton, for appellant Charles B. Len-
ahan, of Wllkes-Barre, David J. Reedy, of
Scranton, and John T. Lenaban, of Wllkes-
Barre, for appellee.
BROWN, C. J. Appellant's petition In the
court below was for a rule on the appellee, a
member of the bar, to show cause why he
should not be ordered to pay over to ber
f2,000, moneys which she alleged were In
bis bands, but belonged to her, less such sum
as tbe court might adjudge proper for pro-
fessional services rendered. The averments
upon which the appellant relied In asking
for the rule appear In her petition for It, to
be found in tbe reporter's notes. An an-
swer was filed to the rule to show cause,
and this was followed by a replication. Be-
fore any testimony was taken, appellee mov-
ed to dismiss the petition, for tbe reason
tbat tbe court bad no JurlsdlctloD of his per-
son or of tbe matter In controversy. From
tbe order sustaining that motion there Is this
appeal.
If from tbe pleadings it bad appeared to
tlie court below tbat the appellee had misbe-
haved himself In his office as an attorney
pzactidng before it, or tbat tbe money which
he retained was under Its Jurisdiction, U
clearly could have punished tbe ofTendlng
practitioner, or required blm to turn over
the moneys in bis bands to tbe estate to
which they belonged ; but no such situation
was presented, and the court correctly held
tbat it was without Jurisdiction to grant re-
lief to tbe appellant If she was mtitied to
any.
[1-3] Tbe transaction of which tbe appel-
lant complains was betweoi ber and tbe ap-
pellee alone. After tbe award of $4,600 to
ber out of tbe estate of ber deceased hus-
band had been paid to her by a check drawn
to her order by the executor, and delivered
to her, that sum no longer formed any part
of the estate of tbe deceased, and tbe or-
phans' court ceased to have Jurisdiction over
it After receiving the check she Indorsed
it over to the appellee, her attorney, and
there is no averment tbat be procured It
fronj her by fraud or mistake. He deposit-
ed It to his own credit in bank, and gave
her bis check for $2,500, retaining the bal-
ance for bis services under a distinct aver-
ment in bis answer tbat bis retention of the
$2,000 was in pursuance of an express con-
tract between him and tbe appellant tbat
be should be paid tbat sum for his profes-
sional services, and, in addition thereto, bis
actual expenses Incurred in acting for the
appellee. She, on the other band, av«rs tbat
the agreement between them was tbat the
compensation for bis services was not to ex-
ceed $500. Tbe controversy between ber and
him is in no manner connected with tbe ad-
ministration of Mnrpby's estate, over which
tbe court below bad Jurisdiction. The sim-
ple question, to be settled In a proper forum,
is the amount to be paid by one living per-
son to another for services rendered. Tbat
question can be settled only in the common'
pleas. The terms of the contract are in
dispute, and what they really were Is a fact
to be settled In tbe common pleas, and no-
where else. There It must be determined
whether the contract upon which tbe appel-
lee relies was entered Into by tbe appellant
and Is a consdonable one, under all tbe facts
In tbe case, or tbe appellant is to pay no
more than she avers was the contract with
tbe appellee for bis services.
l^e case is an ordinary one, growing ont
of a contract between living persons, and
neither over Its disputed terms nor the par-
ties to it has tbe orphans' court any Juris-
diction. "An attorney, who has money In
bis hands which he has recovered for his
client may deduct bis fees from tbe amount
and payment of tbe balance is all tbat can
be lawfully demanded." Balsbaugb v. Eras-
er, 19 Pa. 05. If there be a dispute as to
tbe termp of an agreement as to tbe fees to
be paid, the question becomes one of fact
and "a man does not lose bis right to trial
by Jury because be is an attorney at law."
In re Rule on R. P. Kennedy, 120 Pa. 497,
008, 14 AU. 397, 396 (6 Am. St R^. 724).
Appeal dismissed, at appellant's costs.
(2S8 Pa. IS6)
CULLEai V. STOUGH.
(Sapieme Court of Pennsylvania. May 14,
1917.)
1. LiBEi. AND Slander «=9l2S(2)— QtrBsrioif
FOB JUKT— AcnONABtE WOBDB.
In an action for slander, the question wheth-
er the words as pleaded in plaintiff's statement
are actionable is for the court
or otlier csMs ■•• Hune topic sad KBT-MUilBER In ail Key-Numbered Digests and ladesee
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938
101 ATIiANTIO REPORTER
(Pa.
2. Libel and Slander «b>100(1)— Pleading
—Statement ok Claim— Limitation.
In an action for slander, where the state-
ment of claim did not aver that plaintiff was a
public officer, or that the words were spoken of
him with reference to his official position, the
coart, in determining the legal import of the
words, would confine their application to the
plaintiff as a private citizen, and at the trial he
could not enlarge their sense to make them refer
to him as a public officer, without an amend-
ment for that purpose.
3. Pleadino *=»18—Stwficiency— Statute.
Under Procedure Act May 25, 1887 OP. L.
271), plaintiff in his statement must set forth his
cause of action with accuracy and precision.
4. Libel and Slandeb «=3lOO(l>— Statement
OF Claim— Evidence— Amendment.
Plaintiff, in an action for slander, cannot
extend his cause of action by testimony not
relevant under tlie pleadings without an amend-
ment
6. Libel and Slandeb «=»7(2)— Actionable
WoBDs— WoBDs Imputing Crime.
Words not imputing a crime punishable by
indictment are not actionable, though the words
need not impute an infamous crime.
6. Libel and Slander (8=»86(3)— Statement
OF Claim— Province of Court.
In an action for slander, it is not the prov-
ince of the court to search out and group togeth-
er from the different parts of the declaration the
fkcts and circumstances and adjudge whether a
definite crime may be fairly deduced, but the
pleader must clearly aver the crime intended to
be imputed to him.
7. Libel and Slander «=>86(2)— Statemxitc
OF Claim— Innuendo.
In an action for slander, a statement of
claim, alleging defendant's language in a gen-
eral way, should contain aq innuendo disclos-
ing a charge of some indictable offense.
8. Libel and Slander ^=>123(1) — Action-
able Words Indictable Charge.
When words charging a crime are qualified
or explained at the time of speaking so as to
negative an indictable charge, the court may
properly award a nonsuit,
ft. Libkl and Slander «=3l0(l)— Actionable
Words— Imputation of Crime.
The statement of an evangelist at a public
raligioos meeting that if it were not for plaintiff
and others having great political influence, there
-yvould not be a house of prostitution open in
the city or a saloon opened after midnight or on
Sunday did not charge plaintiff, not alleging
himself to be a public officer, with any indictable
offense, so that a compulsory nonsuit was prop-
erly ordered.
Appeal from Court of Gotnmon Pleas, Lu-
Bome Coonty.
. Trespass for Blander by William J. Cullen
against Henry W. Stough. Prom an order
refusing to take off a nonsuit, plaintiff ap-
peals. 'Aflirmed.
The following is the opinion of the lower
court sur plaintiff's motion to take off the
nonsuit:
This is an action of trespass in which the
plaintiff sought to recover damages for alleged
slanderous words spoken of him by the defend-
ant,, an evangelist, at a public religious meeting
in Hazlcton. The words complained of are as
follows :
"Harry Jacobs is the man who runs your city.
1)0 you know him? He runs the Aniold and
Pilsen Heim Breweries, He is general manager,
and lie is one of the bosses that runs Jim Har-
vey and things down at city hall. He runs the
whole bunch down there. Harvey doea not
know it, but there may be some exceptions.
This gang holds the situation and I tell yon so
to-night. "Big Bill Cullen, he is another boss.
He is called the commissioner of public safety,
whatever that meana He teils safcxnunen when
it is safe to run."
"I will tell you another, one more of the boss-
es who run this city. Lfttle John Fierro.
Fear-o, Fear-o, they fear him, no they don't.
Fierro, that's it. He is the Twelfth ward boss,
the man who runs two saloons, and who brings
things through for License through booze and
beer, though not through water like the other
Fear-o's."
"The fourth is Max Friedlander, the wholesale
liquor dealer. I want to lay it down that if it
were not for Fierro, Cullen, Jacobs, and Fried-
lander there would not be a house of prostitu-
tion open in this city to-night If it were not
for them, there would not be a saloon open after
midnight. If it were not for them, not a saloon
would dare to open on Sunday. There would
not be a slot machine or a gambling den or a
poker game in Hazleton by to-morrow night if
it were not lor these four.
"I lay the moral condition of Hazleton and
the vicious things here at the foot of these four.
Let them take up the gauntlet; I have thrown it
down. I charge them with being responsible for
the conditions here, and I say tbey are the real
mayor and chief and council and ail other issues
in BO far as politics are concerned in Hazleton."
"You must break the strangle hold they have
upon this city's throat if you officials can en-
force the laws. I tell you what this city and
old West Hazleton need to-night is cleaning and
a quickening of conscience on the part of the
citizens to get things so that you can have a
clean city. 1 believe Jim Harvey does not know
that he is being made a monkey of by these men,
but I tell you that if you do not get together
behind him and Turnbach, three months after
Stough has gone, a monkey will be made out of
Harvey again. You must stand back of him and
help him to enforce the laws, or the three
months' period will show that what I say wiU
happen shall have come to pass.
"You most aid them or you will never break
away the hold of the gang on the throats of the
citizens of Haaleton. I tell yon preachers the
cue, and you can start in right where I left off.
I'll give yon some more to-morrow night"
That the defendant uttered those words, or
equivalent language, at the place mentioned was
shown upon trial, and was not denied.
[i] When the plaintiff rested we granted a
nonsuit for the reason that the words, as pleaded
in plaintiff's statement, were not actionable.
That it is tjie duty of the court to decide such
question is settled. M^as v. Johnson, 185 Pa.
12, 39 Atl. 662.
[2] The plaintiff's right to recover must be
ascertained, in the first place, from his state-
ment of his cause of action. There is therein
no averment that be occupied any official posi-
tion, nor, in consequence, that the words com-
plained of were spoKen of him in relation there-
to. While the afBdavit to hold to bail, made by
the plaintiff, set forth that he was the superin-
tendent of the departmoit of public safety of
the city of Hazleton, such averment was omit-
ted from bis statement of his cause of action.
It follows that in determining the legal import
of the words constitating the cause of action,
their sense must be confined to their application
to the plaintiff as a private citizen. The plain-
tiff could not, upon the trial, enlarge the sig-
nificance of the words 80 as to make them refer
to him as a public officer; that is, without an
amendment for that purpose, which was not
asked.
f31 Ever since the Procedure Act of May 25,
18S7 (P. L. 271), it is held that the plaintiff
«;$>C'ot Otbei c«ses see saw* tonic and KBY-NUMBKK IB aU Key-Numbared Dlgut* and Indexm
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Pa.)
SAUPP ▼. 8TREIT
939
mast, in hU atatement, set forth hla cause of
action with accuracy and precision: Fritz v.
Hathaway, 136 Pa. 274, 19 Atl. 1011 ; New-
bold V. Pennock, 154 Pa. 601, 26 Ati. 606; Mc-
Cready t. Gans, 242 Pa. 864, 89 Atl. 459.
And the proofs must correspond. Stewart v.
De Noon. 220 Pa. 154, 69 AU. 587 : Perry v.
Penna. R. R. Ca, 41 Pa. Super. Ct 591 (on
paxe 60»).
[4J And, further, when by the introduction of
testimony, not relevant under the pleadings, the
plaintiff seeks to extend his cause of action,
such testimony will not be effective, in the ab-
sence of an amendment. Wilkinson Mfg. Co. t.
Welde, 196 Pa. 508, 46 Atl. 852.
[5] What significance then had the words de-
clared upon applied to the plaintiff as a private
citizen? We thought, as expressed by us orally,
when the nonsuit was entered that they imput-
ed no crime punishable by indictment, without
which in slander, differing from libel, they can-
not be held actionable; and as the authorities
are clear upon this point we have bad no change
of mind. Gosling v. Morgan, 82 Pa. 273 ; Meas
V. Johnson, 185 Pa. 12, 39 Atl. 562. Other cas-
es, showing how strictly the rule is applied, are
Lnkehart v. Byerly, 53 Pa. 418; Harvey v. Boies,
1 Pen. ft W. 12; Findlay v. Bear. 8 Serg. &
R. 571; Stees v. Kemble, 27 Pa. 112; Evans v.
Tibbins, 2 Grant (Pa.) 451 ; Stitzell v. Reyn-
olds, 67 Pa. 54, 5 Am. Rep. 396. The only qual-
ification that has been made of this rule in this
state is that the words uttered need not impute
an infamous crime. Davis v. Carey, 141 Pa.
314, 21 AtL 633.
[6] The plaintiff's statement contains no alle-
gation that the words spoken of him by the de-
fendant imputed any crime. The only expres-
sion approaching it is the following detached
sentence: "That by virtue of said utterances he
(plaintiff^ is liable to prosecution for the viola-
tion of the ponal and criminal laws of the state
of Pennsylvania, upon the charges made by the
said Henry W. Stough." It was not alleged that
any offense punishable by indictment was, by the
defendant, charged agahist the plaintiff. Nor
was a specific crime mentioned. It was held, in
Hoar V. Ward, 47 Vt. 657, that it ia not the
province of the court to search and sift and
group together from the different parts of the
declaration the facts and circumstances and ad-
judge whether a definite crime may be fairly de-
duced, but that it is the duty of the pleader to
aver clearly the crime intended to be Imputed to
the plaintiff.
[7, 8] The plaintiff's statement did not con-
tain, as it should to afford a recovery, consider-
ing the generality of the defendant's language,
an innuendo disclosing a charge of some indict-
able offense. Lukehart v. Byerly, 53 Pa. 418.
It was held, in Colbert v. Caldwell, S Grant
Cas. (Pa.) 181, that when words charfing a
crime are qualified or explained at the time of
^leaking, so as to negative an indictable charge,
-which toe court may perceive, and in view of
which the judge would be bound to charge the
jury were not actionable, he may properly award
a. nonsuit. See, also, Pittsburgh, Allegheny ft
Manchester Pass. Ry. Co. v. McCurdy, 114 Pa.
554, 8 Atl. 230, 60 Am. Rep. 363. The words
uttered by the defendant, taken together, nega-
tive rather than affirm the idea that the plain-
tiff himself conducted any of the places, or com-
mitted any of the acts named.
[9] Applying the foregoing principles to the
plaintiff's case, we think it is evident the non-
suit was properly entered. He had not pleaded
that the words uttered by defendant were spoken
of him as a public officer; nor had he specified
any crime imputed to him. The most that can
be said, accurately, of the meaning of the al-
leged slanderous words is that the plaintiff, as a
private citizen credited with political influence,
countenanced the existence of houses of prostitu-
tion and the other evils mentioned, instead of ex-
erting that influence for their suppression. By
no 80und_ reasoning can it be inferred, as claim-
ed by plaintiff's connsel when the motion for non-
salt was being argued, that the defendant
charged the plaintiff with fornication. Nor is
any other criminal offense more clearly ascribed.
Concede that upon every citizen there is imposed
the moral obligation of exercising his influence
for good, in his community, it does not result that
his failure so to do makes him liable to indict-
ment.
It seems clear to us that the words alleged
against the defendant as slanderous were not
actionable, and that consequently our disposition
of the case was right.
The rule to strike off tfa« nonsuit is dis-
charged.
The coiirt entered a compulsory nonsuit
which it subsequently refused to take off.
Plaintiff appealed.
ArKued before BROWN, C. J., and MES-
TREZAT, POrTBR, FRAZER, and WAL-
LING, JJ.
Jobn H. Blgelow, of Hazleton, Abram Sals-
burg, and F. A. McGuigau, both of Wilkes-
Barre, and John J. Kelley, of Hazleton, for
appellant. Paul J. Sherwood, of Wllkes-
Barre, George H. Harris, of Hazleton, and R.
W. Archbald, of Scranton, for appellee.
PER CURIAM. This judgment is affirmed
on the opinion of the learned judge below,
specially presiding, discharging tlie rule to
strike off the nonsuit
(268 Pa. 2U)
SAUPP et al. v. STREIT et aL
(Supreme Court of Pennsylvania. May 14,
1917.)
1. Judgment «=342(1)— Stbikiho off Judo-
MBNT— TruE.
If a judgment is irregularly or illegally en-
tered, there is no time limit restricting the
court's power to strike it off, provided it is not
entered adversely after a hearing or a trial.
2. Judgment i8=>361— Vacation— Grounds.
On a bill in equity against the widow and
executrix of a deceased partner and against her
individually and against two other defendants
for money owing the partnership, wherein the
attorneys agreed that judgment should be enter-
ed against the defendants for a certain sum, a
judgment against the widow individually would
be stricken off where she had no actual knowl-
edge that she was to be individually liable and
where there was nothing to show that she was
liable for her husband's debts.
Appeal from Court of Common Pleas, Blair
County.
Bill In equity by Frank D. Saupp, Jr., ex-
ecutor of the estate of Francis D. Saupp, Sr.,
deceased, and Matilda J. Saupp against
Carolyne Streit, intermarried with Oliver
Rotbert, executrix of the estate of George F.
Streit, deceased, and others. From a decree
striking off the judgment against Carolyne
Streit Rothert, plaintiffs appeal. Appeal dis-
missed.
The following is the opinion of Baldrige,
P. J., in the court of common pleas:
tSsaVoT oUier ceaes see same topic and KBT-NUUBBR In all Key-Numbered Digests and ludeices
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940
101 ATLAJNTIO REPORTER
(Pa,
On or about the 20th da^ of June, 1880,
George F. Streit and Francis D. Saupp, Sr.,
entered into an oral agreement of copartnership,
whereby they were to buy, sell, and deal in real
estate. This copcu-tnership continued until the
»th day of July, 1905, when George F. Streit,
one of the partners, died.
On the 27th day of March, 1908, a bill in
equity was filed in this county, to No. 645, Oc-
tober term, 1008, wherein l>ank D. Saupp, Jr.,
executor of Francis D. Saupp, Sr., deceased,
and Matilda J. Saupp were plaintiffs, and Caro-
lyne Streit, intermarried with Oliver Uothert,
executrix of the estate of George F. Streit, de-
ceased, Carolyne Streit Rothert, widow of the
late George F. Streit, deceased, and the Central
Trust Company, trustee, were defendants.
In the ninth paragraph of the bill the plain-
titb aver the copartnersuip, the death of George
F. Streit, and that thereafter the partnership
was dissolved. The eleventh paragraph avers
that in the conduct of the copartnership George
F. Streit received various amounts of money
for the use and benefit of the partnership, and
never rendered an account thereof. It is fur-
ther averred in the sixth paragraph that on the
4th day of August, 1905, Francis D. Saupp,
Sr., and Carolyne Streit, widow of George F.
Stdt, entered into an agreement with the CJen-
tral Trust Company, of Altoona, whereuuder the
trust company was to act as trustee for Fiaxi-
cis D. Saupp, Sr., and for the estate of George
F. Streit, deceased, in selling and conveying
certain property owned by Saupp and Streit es-
tate.
The plaintiffs prayed for an accounting of all
the partnership dealings and transactions dur-
ing the life of George F. Streit, and for a foil
and true account of the partnership by the
Central Trust Company, and for a dissolution
of the partnership.
The record does not disclose any objection
raised to the misjoinder of parties by includ-
ing Carolyne Streit Rothert as widow of the
deceased partner, nor does the bill aver that
the widow of George F. Streit was a member
at the copartnership, nor that she was indebt-
ed thereto, nor that she in any wise assumed
the payment of any indebtedness that might
have been due from George F. Streit to the
partnership.
An answer was filed by the defendants, and
on March 1, 1909, the parties through their
attorneys fixed the indebtedness of Francis D.
Saupp, Sr., and George F. Streit to the co-
partnership, and on March 5, 1909, filed the
followinj stipulation, to wit : "Now, by agree-
ment of counsel the scde question submitted
herein for determination by your honorable
court is, whether or not the estate of the late
George F. Streit is liable to the copartnership
of Streit & Saupp for the payment of interest
in the amount of $17,826.38, as claimed by the
plaintiffs." Thereafter, to wit, on April 28,
1909, the court filed the following decree: "It
is further adjudged and decreed that the inter-
est be surcharged against the defendant on the
sum of $22,854.33 from the 0th day of July,
1905, at the rate of 6 per cent, to the date
of this decree, being the sum of $5,222.14, for
which amount judgment is directed to be enter-
ed, unless exceptions are filed thereto within
fifteen days."
Exceptions were filed, and the court modified
its decree respecting the amount of interest.
Accordingly the following decree of court was
entered of record : "And now, to wit, this 25th
day of September, A. D. 1911, on motion of J.
Banks Kurtz, counsel for plaintiff, the prothono-
tary, for the purpose of carrying out Uie provi-
sions of the stipulation of counsel for plain-
tiffs and defendants herein filed, is authorized
and directed to enter judgment in favor of the
late partnership of Francis D. Saupp, Sr., and
George F. Streit. and against the plaintiffs in
die sum of $11,734.93, with interest thereon
from August 1, 1906, and against the defend-
ants in the sum of $36,407.58, with interest
thereon from August 1, 1905, which amounts
represent the indebtedness of the estates of the
late Francis D. Saupp, Sr., and George F.
Streit to the copartnership, as fixed and deter-
mined by their respective counsel in the stip-
ulation filed, as aforesaid, and was in excess of
the amount filed in the court's decree under
date of May 17, 1910, filed in these proceedings."
The attorneys for plaintiffs and defendants in
writing consenting to the entering of the fore-
going decree, judgment was thereupon entered
to No. 364, June term, 19ll, in favor of the
late copartnership in the sum of $36,405.58,
with interest from August 1, 1905, and "against
the defendants," including Carolyne Streit Roth-
ert in her individual capacity. A sci. fa. was
issued to revive this judgment to No. 41, March
term, 1915, which was duly served upon Caro-
lyne Streit Rothert, whereupon she came into
court, alleging that ^e had no knowledge of
any effort to make her incUvidually liable for
the payment of the judgment above recited, and
that the averments in the bill, end the prayer
for relief did not justify a judgment being en-
tered against her, and therefore prayed that the
judgment be opened up, and also that it be
stricken from the record in so far as it affects
her, contending that the judgment is irregular
on its face and was imi^ovidently entered m so
far as she Carolyne Streit Rothert is concerned.
[I] The plaintiffs contended that the ob-
jecting defendant has no standing in this pro-
ceeding, that her remedy, if she has one, is by
a bill of review. It has been frequently ruled
in this state that if a judgment was irregularly
or illegally issued, there is no time limit re-
stricting the power of the court to strike off
such a judgment, providing the judgment is not
entered adversely after hearing or a trial.
Johnson v. Royal Insurance Co. of Liverpool,
218 Pa. 423, 67 AU. 749: Long v. Lemoyne
Borough, 222 Pa. 311, 318, 71 Ati. 211, 212
(21 L. R. A. [N. S.] 474). The court in this
latter case says: "As a general rule, a judg-
ment regular on its face, will not be stricken
off, but when it is entered wholly without au-
thority, it may be stricken off, for it is no
judgment at all so far as it affects the rights
of the defendants. Bryn Mawr National Bank
V. James, 152 Pa. 364 [25 Atl. 823]. This judg-
ment was entered wiUiout authority, and the
court below found that the entry of it had
never been ratified." In the case at bar the
judgment was entered not adversely, but by
agreement
[2] There is not the slightest intimation from
any source that Carolyne Streit Rothert was a
member of the firm when the indebtedness arose,
nor is there any averment in the hill that the
plaintiff sought to hold her liable. The parties
themselves stipulated that the sole question for
determination by the court was to what extent
the estate of George F. Streit was liable to
the copartnership of Streit ft Saupp. If tlie
purpose was to make Carolyne Streit Rothert
in her individual capacity pay the debts of the
copartnership of Streit & Saupp, it was incum-
bent up<» the plaintiff to sufficiently allege and
prove her liability, as it is a well-recognized
fundamental principle in equity procedure and
pleading that every fact essential to entitle the
plaintiff to Uie relief he seeks must be averred
in the bill, and the decree must be iu conform-
ity with the averments and proof. Luther v.
Luther, 216 Pa. 1, 64 Atl. 868: Spangler Brew-
ing Co. V. McHenry, 242 Pa. 522, 89 Aa 665.
Not only the bill and the relief sought fail to
point out Carolyne Streit Rothert's liability,
but the parties themselves after the decree of
the court had been entered apparently recog-
nized that the liability was confined to the
George F. Streit estate, for on September 12,
1912, the executor of Francis D. Saupp, Sr.,
in presenting a petition for the appointmoit ot
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HOaSETT y. THOMPSON
941
a receWer sets forth "that counsel for the re-
spective parties in this suit by stipulation filed
on the 1st day of March, 1909, agreed that on
August 5, 1905, Francis D. Saupp, Sr., was
indebted to the partnevship of Streit & Saupp
in the sum of $11,734.93, and on said date
George F. Streit was indebted to the said part-
nership in the sum of $36,407.58, and that judg-
ments have been entered of record for said
amounts against said parties." Even at that
date there is no intimation but that the in-
debtedness was that of the George F. Streit es-
tate only, no hint that Carolyne Streit Koth-
ert was expected to pay any part of it.
We are at loss to know how a judgment un-
supported by any adequate averment, m fact no
averment at all, could have been entered except
on the theory that because Carolyne Streit Roth-
ert was erroneously joined as a party defend-
ant that that of itself made her liable. Judg-
ment was to be entered as stipulated "against
the defendants." What defendants? Would the
Central Trust Company, a trustee appointed
long after the indebtedness was incurred, but
a defendant, be also held liable with Carolyne
Streit Rothert? Such an intention is inconceiv-
able. Yet if she as a defendant must help pay
this judfTnent, so would the Central Trust Com-
pany have to contribute its share.
As Carolyne Streit Rothert bore no relation-
ship to the firm, and no liability has been shown
either by averment, proof, or stipulation, the
judgment in so far as it affects her is Illegal and
invalid and stricken from the record.
It is apparent that under the pleadings in
the case a decree against "the defendants was
not warranted, and was irregular and illegal.
The estate of George F. Streit is liable for and
should pay this indebtedness, as it was he who
incurred it, not Carolyne Streit Rothert indi-
vidually.
The court stmcli: off the Judgment against
Carolyne Streit Rothert, individuaUy. Plain-
tiffs appealed.
Argued before BROWN, C. J., and MBS-
TREZAT, POTTER, STEWABT, and WALL-
ING, J J.
R. A. Henderson, of Altoona, James B.
Hlndman, of Pittsburgh, and J. Banks Kurtz,
of Altoona, for appellants. O. H. Hewlt, of
Holliday^tnirg, and W. Frank Vaughn, of Al-
toona, for appellees.
PER CURIAM. This appeal Is dlstnissed,
at appellants' costs, on the opinion of the
court striking off the Judgment against Car-
oline Streit Rothert individually. .
f258 Pa. 134)
FORTE V. G. B. MARKLB 00.
<Supreme Court of Pennsylvania. May 14,
1917.)
Master and Sebvant <S=>286(19)— Evidence
—Nonsuit.
In an action by the servant of a mining
company for injury, when struck b^ a car sud-
denly descending a slope, while his back was
turned towards it, while unloading a car, where
there was no evidence as to the cause of the ac-
cident, or to justify a finding that the starting
of the car was due to defendant's negligence,
a compulsory nonsuit was properly ordered.
Appeal from Court of Common Pleas, Lu-
zerne County.
Trespass by Alfonso Forte against the G.
B. Markle Company to recover damages for
personal Injuries. From an order refusing to
take off a compulsory nonsuit, plaintiff ap-
peals. Affirmed.
Argued before BROWN, C. J., and MES-
TREZAT, POTTER, FRAZER, and WAL-
LING, JJ.
F. P. Slattery, of Wilkes-Barre, N. M.
Curclo, of Hazleton, and Andrew Hourigan, of
Wilkes-Barre, for appellant. John H. Bige-
low and G. W. Kline, both of Hazleton, and
Joseph A. Mulhereh, of Wllkes-Barre, for ap-
pellee.
PER CURIAM. The appellant was an em-
ploy6 of the appellee, and, while unloading a
car filled with rock and dirt, another car
came down the incline on which he was work-
ing and struck him; his back having been
towards the descending car. For the injuries-
sustained this action was brought. In which,
after plaintiff had closed his case, a com-
pulsory nonsuit was entered.
Nothing in the testimony could have Jus-
tified a finding by the Jury that the starting
of the colliding car down the incline was due
to any negligence of the defendant. If the
question of its negligence had been submitted
to the Jury, there would have been, as the
court properly held, an invitation to them to
guess as to the cause of the accident, and to
infer negligence against the employer from
the mere fact of its happening. For this rea-
son the case was not for them. Snodgrass
V. Carnegie Steel Co., 173 Pa. 228, 33 Atl.
1104; WoJdechowski v. Sugar Refining Com-
pany, 177 Pa. 57, 35 AU. 596; Alexander v.
Water Company, 201 Pa. 252, 50 Atl. 991;
Sandt V. North Wales Co., 214 Pa. 215, 63
AU. 596.
Judgment affirmed.
(25S Fa. 85)
HOGSETT et al. v. THOMPSON ct aL
(Supreme Court of Pennsylvania. May 7, 1917.)
1. EQumr fl=»l— Courts— jDRisDicnoN.
Pennsylvania courts do not possess general
chancery powers, but exercise only such as have
been conferred upon them by statute.
2. Injunction «=>43 — Jueisdiction — Col-
lection OF Money.
Though Act June 16, 1S36 (P. L. 784), gives
courts of common pleas equity jurisdiction for
the prevention or restraint of the commission of
acts contrary to law and prejudicial to the
community or the rights of individuals, the col-
lection of debts cannot be enjoined save where
the creditor is clearly and undeniably proceed-
ing, against right and justice, to use the pro-
cesses of the law to the injury of another.
3. Receivbbs «=>21— Appointment— Individ-
uals.
' While the supervision and control of part-
nerships and corporations are recognized sub-
jects of equity jurisdiction, the administration of
affairs of an individual sui juris and compos
mentis is not, and the fact that he is unable
to meet his obligations does not alone warrant
the appointment of a receiver for his property,
or the issuance of an injunction restraining
or other cases sea same topic and KBT-NUMBER In aU Key-Numbered Digests and Indexes
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U42
101 ATLANTIO REFORTBR
(Fa.
creditora from attempting to collect their claims
b7 legal process.
4. Gbeditobs' Suit la ' 1 Natub* of Rkkedt
— EXBCUTION.
A creditor's bill is always in aid of execu-
ticm, and will not lie when there is an adequate
remedy at law, its purpose being to satisfy a debt
out of the equitable estate of the debtor which
ia not liable to execution at law, or out of some
property beyond reach of ordinary process.
6. BSCKJVERS 4=39— Appoihtment.
Unsecured creditors of an individual filed a
bill in equity, alleging that the defendant debtor
bad assets consisting of unimproved coal lands
of enormous value which were the subject of in-
cumbrances amounting to $15,000,000; that he
was indebted to unsecured creditors in the sum
of $7,000,000; that he was unable to meet the
indebtedness; that suits had been filed and ex-
ecution threatened which would destroy his equi-
ties in the various properties which were the
only assets out of which imsecured creditors
oonld be paid, but that if the assets were ad-
ministered under the direction of a court of
equity, sufficient might be realized to pay all
debts. The bill prayed for appointment of re-
ceivers and for an injunction to restrain all cred-
itors from proceeding at law against the debt-
or's assets. The defendant admitted the facta
alleged in the bill and receivers were appointed,
and creditors allowed to reduce their claims to
judgment, but enjoined from issuing execution
against the defendant debtor's property. A judg-
ment creditor petitioned for leave to intervene
and for leave to pursue the usual legal remedies
for collection of her judgment. Held, that as
simple contract creditors who have no judgment
against or liens upon the prooerty of an in-
dividual, or any equitable interest in his assets,
have no standing to pray for appointment of a
receiver, eanecially where such acts might prej-
udice the rights of lien creditors, the court of
common pleas was without authority to appoint
receivers for the property of the defendant debt-
or, and a judgment creditor, petitioning for leave,
was entitled to proceed at law for the collection
of her judgment.
Appeal from Court of Oommon Pleas, Pay-
ette County.
Bill by Fuller Hogsett and another against
Joslah V. Thompson, In vrhlch Elizabeth
Kremer, administratrix of Albert C. Kremer,
petitioned to intervene. From a decree ap-
pointing receivers and awarding an Injunc-
tion, petitioner appeals. Reversed.
Argued before BROWN, C. J., and POT-
TER, STEWART, MOSCHZISKBIR, FRAZ-
ER, and WALLINO, JJ.
Charles A. Tnit and H. S. Dumbauld, both
of Unlontown, for appellant John M. Free-
man, of Pittsburgh, IjouIs Marshall, of Xew
York City, H. P. Stambaugh, of Pittsburgh,
Stnrgis & Morrow, of Unlontown, and Samuel
Untermyer, of New York City, for appellees.
POTTTER, J. On January 19, 1915, Fuller
Hogsett and David L. Durr filed a bill in
equity against Joslah V. Thompson, in the
court of common pleas of Fayette county,
praying for the apjwlntraent of a receiver for
The property of Mr. Thompson. It was al-
leged in the bill that the defendant bad
assets consisting largely of unimproved coal
lands, of the value of $70,000,000, which
were pledged and mortgaged to the amount
of $15,000,000, and that be was further in-
debted to unsecured creditors In the sum oC
$7,000,000; that the defendant was unable
to meet his Indebtedness as it became due,
and that suits were entered, and executt<His
threatened, which would sweep away his eq-
uities In the various properties, which were
the only assets out of which the unsecured
creditora could be paid, and that, by reason
of enormous prior incumbrances, executions
would be of no avail. It was alleged that. If
the assets could be preserved from sacrifice,
and sold under the direction of a court of
equity, sufllclent might be realized to pay all
of defendant's debt& When the bill was
filed, defendant filed an answer, admitting
the facts to be as averred. After hearing,
the court appointed receivers and Issued an
injunction, restraining ail creditors from en-
tering suits. Issuing executions, or interfer-
ing in any way with the property In the
bands of the receivers. Afterwards the court
modified Its decree, so as to permit creditors,,
who so desired, to enter suit and prosecute
the same to judgment On February 29,
1916, Elizabeth Kremer, administratrix, re-
covered a Judgment against defendant for
$3,698.98, and filed her petition to intervene,
and asked for permission to pursue the usual
legal remedies for collecting her judgment
On August 1, 1916, the court made an order
refusing permission to Intervene, and refus-
ing to modify the original decree. Excep-
tions were filed, which were overruled, and
the decree of August 1, 1916, was confirmed
and made absolute. Petitioner has appealed,
and the fundamental question raised by the
assignments of error is whether the court
below had jurisdiction to appoint receivers
for the property of Mr. Tliompson, an indi-
vidual, and to restrain his creditors from
proceeding to collect their lawful claims.
[1, 2] That the courts of Pennsylvania do
not possess general chancery powers, but
exercise only such as have been conferred
upon them by statute, has repeatedly been
pointed out. Davis r. Gerhard, S Whart
468 ; Gilder v. Merwin et aL, 6 Whart 522 ;
Dohnert's Appeal, 64 Pa. Sll; Brideshur«r
Mfg. Co.'6 Appeal, 106 Pa. 275; Pitcalm r.
Pltcaim, 201 Pa. 368, 60 Atl. 963.
The equity jurisdiction of the courts of
common pleas is conferred and defined by
Act June 16, 1836 (P. U 780), f 13, and a few
later acts. In these acts the courts are given
no express power or control over the prop-
erty of Individuals who are sul Juris and
compos mentis, except under circumstances
which do not exist in the present case. The
court below concedes this, saying:
"The petitioner here contends that there is
no specific statutory authority in Pennsylvania
for the appointment of receivers for the estates
of individuals. That is true."
The court, however, regarded Its action
as warranted by the clause of the act of
1S36, giving equity jurisdiction for "the pre-
4tS3For otber coses see uois topic and KEY-NUMBSR in all Key-Numbered DlgwU sad ladszM
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HOOSETT T. THOMPSON
943
Tendon or restraint of the commission or
continuance of acts contrary to law and
prejudicial to tbe interests of tbe communi-
ty, or the rights of indlyiduals." But, as
was said by Sergeant, J., in Gilder t. Mer-
win et al., 6 Whart. 522, 641:
"Tt cannot be seriously contended that the is-
suing execution on a judgment confessed in a
court of law is an act contrary to law. In-
junctions on CfluitDble grounds are grantable by
this court only where they are incidental to the
relief prayed for, and where that relief is with-
in our jurisdiction by the acts of assembly."
And In Winch's App., 61 Pa. 424. 426, Mr.
Justice Agnew, considering the same danse,
said:
"The Jurisdiction given to a court of equity
for the prevention or restraint of the commis-
sion of acts contrary to law and prejudicial to
the rights of Individuals was never intended to
be used to obstruct the collection of debts. It
is only where the creditor is clearly and unde-
niably proceeding, against right and justice, to
use the process of the law to the injury of an-
other, that equity intervenes to stay his hand.
To adopt another rulp would lead to a constant
use of the powers of eouity to hinder and de-
lay the Collection of honest claims, and to '^re-
vent the creditor from reaching the marrow of a
fraud."
In Pairpoint Mfg. Co. et al. ▼. Philadel-
phia Optical & Watch Co. et al., 161 Pa. 17,
22, 28 Atl. 1003, 1004, Mr. Justice Fell said:
"The confession of judgment to the appellant
beinr lawful, the only remaining reason present-
ed by the petition for interfering with the writ
of execution is that a sale can be more advan-
tageously conducted in the interests of all the
creditors by the receivers. This is not a suffi-
cient reason. The appellant is pursuing the reg-
ular and orderlv course for the collection of a
judgment lawfully obtained for a debt admittedly
due. This is its right. The interest of other
creditors may be affected thereby, but, nntil it is
shown that their rights are violated, no one has
a standing to challenge the appellant's right to
use the means provided by law for the enforce-
ment of its claim."
Even in the case of a corporation a re-
ceiver will not be appointed where the only
effect would be to hinder and delay the
collection of valid claims, and the courts are
without authority to make such an appoint-
ment. Bell et al. v. Wood & Co., to Use of
Camden Iron Works, 181 Pa. 176, 181, 87
Atl. 201.
The action of appellant in seeking to en-
force her claim In the manner provided by
law is certainly neither "contrary to law,"
nor "prejudicial to the interests of the com-
munity," nor does it Infringe on "the rights
of Individuals."
[3-81 As a hill merely fbr an injunction to
restrain legal process in the collection of a
debt, the present bill cannot be sustained.
An inspection of tbe bill shows that it was
filed for the express purpose of securing the
nppointinent of a receiver for the assets of
an individual, and to provide for the man-
agement and disposal of those assets. For
such a purpose, the plaintiffs in tbe original
bill have no standing In an equity court of
Pennsylvania. The supervision and control
of partnerships, and of corporations, are rec-
ognized heads of eault? Jurisdiction, bnt the
administration of the affairs of an individu-
al, sui Juris, and oompos mentis, Is not.
The fact that an individual is not able to
meet his obligations is not in Itself sufficient
to warrant the appointment of a receiver for
his property, or the Issuing of an injunction
to restrain his creditors from attempting to
collect their claims. Other equitable cause
for relief must be shown to Justify the In-
terference of a chancellor. The plaintiffs in
their bill asserted no right which required
the aid of equity. There was no dispute be-
tween them and Mr. Thompson, and no issue
was presented whl(a» a court of equity had
jurisdiction to determine. The relief whldi
they sought was not by means of a decree de-
termining any matter In dispute between
Mr. Thompson and themselves, but their ob-
ject was to prevent other persons, not parties
to the bill, from taking lawful action. The
appointment of a receiver Is only incidental
to other equitable causes of relief within the
statutory grant of jurisdirtlon. It is a pro-
visional remedy, and is not the ultimate end
of a suit. It is the exercise of a power In
aid of a proceeding in equity. In the pres-
ent case no suit was pending between the
parties la the court below when the applica-
tion for the appointment of a receiver was
mad& In High «» Receivers (4th Ed.) |
17, It Is said :
"Ordinarily, unless perhaps, in tile case of in-
fants or lunatics, a suit must be actually nend-
ing, to Justify a court of equity in appointing a
receiver."
These plaintiffs were simple contract cred-
itors, who had no Judgments or Hens upon
the property, or any equitable interest In any
of the assets of the defendant. The general
rule applicable in such case is stated in Hlg^
on Receivers {4th Ed.) J. 406, as follows:
"Having already shown that the aid of a re-
ceiver is extended only in behalf of creditors who
have fully exhausted their remedy at law, it
follows necessarily that the jurisdiction will not
be exNcised in favor of mere general creditors,
whose rights rest only in contract and are not
yet reduced to judgment, and who have acquired
no lien upon the property of the. debtor. Courts
of equity will not permit any interference with
the right of a debtor to control his own prop-
erty,_ at tbe suit of creditors who had acquired
no lien thereon, and whatever embarrassment
the creditor may experience, by reason of the
slow procedure of the courts of law. must be rem-
edied by legislative and not by Judicial author-
ity. And while there are a few instances where
the courts have maintained a contrary doctrine,
the great weifht of authority supports the rule,
that, in the absence of statutory provisions to
the contrary, a general contract creditor, be-
fore judgment, is not entitlod either to an in-
junction or a receiver against his debtor, upon
whose property he has acquired no Uen." .
There Is no ground for the suggestion that
this bill is in the nature of a creditors' bill.
It was not filed to enforce payment of any
Judgment or in aid of an execution against
the defendant. On the contrary. Its purpose
was to prevent the seizure of any of his
property under execution, and to prevent
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944
101 ATLANTIC REPORTER
(Pa.
his creditors from pnrsnlng their lawful rem-
edies for an Indefinite time. A creditors' bill
Is always in aid <tf an execution, and it will
not lie where there Is an adequate remedy
at law. Its purpose Is to secure satisfaction
of a debt out of some equitable estate of the
debtor whidi is not liable to execution at
law, or out of some property beyond the
reach of ordinary process. In the present
case there is no allegation of concealment or
fraudulent disposal of any of the assets of
the defendant. The bill Is In no sense of the
term a creditors' bill, and the authorities
relating to creditors' suits of that nature
hare no application here.
In the argument of counsel for appellees,
it is suggested that the Jurisdiction for which
they here contend was upheld by this court
In GaJey v. Guffey, 248 Pa. 523, M AH. 238.
In that case, the court of common pleas of
Allegheny county, upon a bill filed by an un-
secured creditor of J. M. Guffey, containing
averments to the same effect as those In the
present bill, and an answer admitting the
facts and consenting to the relief prayed
for, appointed a receiver for the property
and assets of defendant and enjoined his
creditors from selling, transferring, dispos-
ing of, or interfering in any way with such
property or preventing or obstructing the re-
ceiver in the performance of his duty. A
mortgagee of one of defendant's properties
petitioned the court for leave to proceed on
his mortage, which was in default The
court refused to grant such leave, and the
petitioner appealed. We reveraed on the ex-
press ground that the mortgagee was enti-
tled, under the terms of the mortgage, to
sue It out and take the mortgaged premises
in execution, and that, to deny him this
right, would be to impair the obligation of
the contract, whldi was beyond the power of
the court.
The question of the Jurisdiction of the
court below to entertain the bill and appoint
the receiver does not appear to have been
raised in that case, and it certainly was
not passed upon by this court. Mr. Justice
Stewart said (248 Pa. 627, 94 Ati. 239):
"We have before us the single question wheth-
er the order of the court enjoinlnr the creditors
of J. M. Guffey from proceeding by law to en-
force collection of the debts due them, so long
as the estate is in the hands and tinder the con-
trol of the receiver anpointed by the court, o"»r-
ates in law to stay the hands of these appellants.
In other words, the question rained is : Is it
within the power of the court to restrain these
particular creditors — and we are here concemeil
with no other— because of the appointment of
the receiver of the estate, from adoptlne and
applying such legal remedies as are allowed
them by the terms of their contract, and at such
time as that contract by its terms permits?"
And It was hdd that the court had no
such power. The broad question of the pow-
er of the court to appoint a receiver for the
estate of an individual was neither consider-
ed nor decided In tliat case.
If the defendant here Is solvent, as la
alleged, a court of equity has no power to
place his property beyond the reach of his
creditors, or to ciijoin them from resorting
to the remedies which the law has given to
them for the protection of their claims. If
he is insolvent the law also provides appro-
priate means for the distribution of his es-
tate for the benefit of his creditors. It fol-
lows that the court below erred in appointing
receivers for the property of defendant, and
In restraining his creditors from prosecuting
suits at law or in equity against the defend-
ant
The order and decree of the court below are
reversed, and the bill filed for the appoint-
ment of receivers Is dismissed for want of
Jurisdiction to entertain it and all proceed-
ings thereunder are vacated and set aside;
but It is ordered that the receivers who
were Improperly appointed forthwith file
their account; the costs below and on this
appeal to be paid by the plaintiffs In the orig-
inal bill.
(JSSPa. 97>
HOGSETT et aL v. THOMPSON.
(Supreme Court of Pennsylvania. May 7,
1917.)
Appeal from Court of Common Pleas, Fayette
County.
Bill by Fuller Hogsett and another against
Josiah V. Thompson, in which William J. K.Tle
intervened as defendant. From a decree award-
ing an injunction and appointing receiver, the
intervener appeals. Reversed.
Argued before BROWN, C. J., and POTTER,
STEWART, MOSOHZISKEIR, FRAKER, and
WALLING. JJ.
Samuel McClay and W. A. Seifert both of
Pittsburgh, Kyle & Reinhart of Waynesburg,
and Reed, Smith, Shaw & Beal, of Pittsburgh,
for appellant John M. Freeman, of Pittsburgh.
Louis MarsbaU, of New York City, H. F. Stam-
baugh, of Pittsburgh, Sturgis & Morrow, of
Uniontown, and Samuel Untermyer, of New
York City, for appellees.
POTTER, J. This appeal was argued with
that at No. 1, January l%rm, 1917, 101 Atl. 941,
as the fundamental questions involved are the
same. The opinion which has been filed in that
case is conclnstve here, and the same decree will
be entered. The first and second assignments of
error are sustained. The order and decree of
the court below are reversed, and the bill filed
for the appointment of receivers is dismissed for
want of Jurisdiction to entertain it and all pro-
ceedings thereunder are vacated and set aside;
but it IB ordered that the receivers who were im-
properly appointed forthwith file their account;
the costs below and on this appeal to be paid
by the plaintiffs in the original bill.
(St Pa. 13»
BROOKVILLE TITLE & TRUST CO. t.
BEAVER TRUST (X).
(Supreme Conrt of Pennsylvania. May 7,
1917.)
1. JUDGMKRT «=>10e(l) — RUUC OT COTJBT —
Dkath of Pabty.
The lower court would not enter a Judgment
against a deceased defendant for want of a saffi-
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BBOOEYILIiE TITLE A TRUST CO. r. BEAYER TRUST 00.
946
dent affidavit of defense where under its rules
the defendant, had he lived, might at any
time before argument have filed a supplemental
affidavit
2. ezecutobs and admini8tbat0b8 «=»443(2)
— Actions — Affidavit of Dbfknse — Peb-
soNAL Representative.
In a suit on a contract made by decedent,
his personal representative is not required to
file an affidavit of defense as to matters arising
before the decedent's death.
3. JUDOMBNT «=3l33 — Ofxnino Judoment —
Affidavit of Deixnse.
In an action against the indorser of a note,
a rule was talten for judgment for want of a
sufficient affidavit, and, the defendant dying be-
fore the rule was called for argument, bis ad-
ministrator was substituted as defendant, and
the mle for judgment was made absolute; the
rule of the lower court as to motions for judgment
for want of sufficient affidavits of defense then
providing that at any time before application
for judgment defendant might file a supplemen-
tal affidavit. Held, that the lower court did not
err in opening the judgment, though the setting
aside of the judgment would have been a more
appropriate remedy.
Appeal from Court of Common Pleas,
Beaver County.
Suit by the Brookvllle Title & Trust Com-
pany agsdnst John Spencer, In which after hla
death, his administrator, Beaver Trust Com-
pany was snbstltated as party defendant.
From a judgment making absolute defend-
ant's rule to open the judgment, plaintiff ap-
peals. Appeal dismissed.
Argued before MESTBEZAT, POTTER,
STEWART, MOSCHISKER, and FRAZER,
JJ.
W. S. Moore, of Beaver, and W. N. Conrad,
of Brookrille, for appellant Lawrence M.
Sebrlng, of Beaver, for appellee.
MOSCHISKER, J. John Spencer indorsed
a promissory note given to the plaintiff com-
pany. Suit was brought thereon January 25,
1015. An affidavit of defense was filed Feb-
ruary 10, 1015. A rule for judgment for want
of a sufficient affidavit of defense was entered
March 8, 1016. Spencer died on March 16,
1015, beforo this rule was called for argu-
ment Thereafter the Beaver Trust Company
was appointed and duly qualified as admin-
istrator of his estate; on June 14, 1015, a
suggestion of death was filed in the present
case, and Spencer's administrator was substi-
tuted as defendant. July 6, 1915, the rule for
judgment was placed upon the argument list,
and on November 17, 1016, It was made abso-
lute. November 18, 1016, judgment was en-
tered. November 22, 1015, defendant peti-
tioned the court to set aside the judgment on
the ground that it was unwarranted in law,
and the petitioner asked also that the judg-
ment be opened. December 81, 1015, the lat-
ter prayer was granted. Plaintiff has ap-
pealed.
[1] In an opinion filed with the order ap-
pealed from, the learned president judge of
the court below states that, while not con-
vinced of the sufficiency of the affidavit of de-
fense, yet he bad concluded that the death
of Spencer abated the rule for Judgment, and
hence the court was without authority to en-
ter It The rule of the court below, regulat-
ing motions for judgment for want of suffi-
cient affidavits of defense, particularly pro-
vides that they may be set for argument by
either party, and that "at any time before it
the application for judgment is regularly
called for argument • • ♦ defendant
may file a supplemental affidavit" Under
this rule of court, Spencer might have sup-
plemented his afHdavit at any time up to
July 6, 1015, had he then been living; and,
ex necessitate, his prior death abated the rule
for judgment against him for want of a suffi-
cient defense. In other words, the court
could not enter a judgment against a dead
man, in a case like the present, when, under
its own rules, had the latter lived, he might
have added to his defense.
[2] It Is well established in this state that,
in a suit on a contract made by a decedent,
his personal representative Is not required
to file an affidavit of defense as to matters
which arose before the demise of the former.
In Seymour et aL v. Hubert, 83 Pa. 346, 348,
citing Lelbert v. Hocker, 1 Miles* 263, this
point is discussed. We there say that the
rule just stated is "Indispensable to protect
interests that would be otherwise defenseless,
and to afford security to creditors, distribu-
tees and heirs" ; and we add: "A dead man's
estate would be in utter peril, if a creditor
could convert his demand into a judgment
upon no proof other than the statement of his
claim filed at the commencement of his suit"
It is to be noted that Leibert v. Hocker, dted
in the case just reviewed, was an action
against the executors of an indorser of a
promissory note, and that it was there held
an affidavit of defense was not required. See,
also, Johnson ▼. Smith, 158 Pa. 668, 571, 28
Atl. 144; Mutual Life Ins. Co. of N. X. v.
Tenan, 188 Pa. 239, 241, 41 Atl. 539; Perkins
v. Humes, 200 Pa. 235, 240, 40 AtL 034 ; Helf.
frlch V. Greenberg, 206 Pa. 516, 518, 56 Atl.
46.
[3] Under the circumstances at bar, we are
not convinced of error in the order appealed
from. It may be that granting the prayer of
the petition to set aside the judgment would
have been a more appropriate remedy, but,
since the practice followed is not complained
of, a discussion of that point becomes unnec-
essary.
The appeal is dismissed.
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946
101 ATLAJNTIC REPORTBB
(Fft.
<2SS Pa. Vm
In re WEST MAHANOY TOWNSHIP'S
CONTESTED ELECTION.
Appeal of McGOT et al.
(Supreme Court of Pennsylvania. May 14,
1017.)
1. Elections ®=»299(3) — Opening Ballot
Box— Fbaud.
A petition in an election contest for tlie
opening of a ballot box was properly refused,
wbere ^etitiuuur failed to show fraud, irregu-
larity, lUcgul voting, or illegal counting of votes.
2. Elect IONS «=>227(1) — Vauditt— Ibbeou-
LABITIES.
Mere irregularities in conducting an election
will not avoid it, even though the election oflS-
cers may be subject to punishment for miscon-
duct, as the rights of voters are not to be prej-
udiced by the errors or wrongful acts of such
officers.
3. Elections «=»229 — Validity — Fbaudo-
LENT Votes.
The mere casting of fraudulent votes is not
a suiiicient ground for throwiug out returns
from an election district, the remedy in sucb
case being to strilce out the fraudulent votes
if possible.
4. Elections <S=>229—RETnRN9— Precinct.
Wbere no election is legally held in an elec-
tion precinct, the returns therefrom may be
thrown out.
6. Elections «:5»229 — Contest — Thbo wind
Out Votes.
Where the ballots, tally return sheets and
supplies in an election precinct were tampered
with, the records were illegally kept, and voters
were threatened before the election and on elec-
tion day, and prevented from voting, and were
intimidated, and where personal attacks were
made under the direction of the election officers,
the votes polled in such precinct were proper-
ly striclten out in an election contest
Appeal from Court of Quarter Sessions,
SctauylltUl County.
Petitions by citizens of the Township of
West Mataanoy, County of Schuylkill, to con-
test the election of Thomas McCoy and Frank
J. Donahue to the offices of school directors
In such tovi'nshlp. From an order declaring
their election rold, conteatees separately ap-
peal. Appeals dismissed.
Argued before BBOWN, C. J., and MBS-
TREZAT, STBWABT, MOSOHZISKBR, and
FRAZBB, JJ.
O. S. Berger, of Pottsville, and M. M.
Burke and P. H. Burke, both of Shenandoah,
for appellants. M. J. Byan, of Philadelphia,
for appellees.
BROWN, a J. At an election bdd No-
vember 2, 1915, two school directors were to
be elected in the West Mahanoy township
school district, Schuylkill county. There are
four • election precincts In the township —
Lost Creek, William Penn, Brownsville, and
Itaren Run. Thomas McCoy and Frank J.
Donahue, the appellants, were candidates for
school directors on the Democratic ticket,
and John D. Edmunds and John Cosgrove,
the appellees, - were candidates for the same
office on the Republican ticket McCoy and
Donahue were returned as elected, but, with-
in the period fixed by the statute for con-
testing an election, qualified electors of West
Mahanoy township Instituted a proceeding
to contest the election of the appellants, on
the ground of fraud and gross irregularities
in connection with the election In the Lost
Creek precinct. This proceeding was discon-
tinued shortly afterwards by counsel for the
petitioners. Subsequently, on the iietitlon of
the electors of the townsUp, the discontinu-
ance was stricken off by the court, and the
petition for the contest was reinstated. Aft-
er a full hearing and the taking of a mass of
testimony, the court decreed that the election
in the Lost Creek precinct was null and
void, and its entire returns were thrown out.
With the returns from that precinct not
counted, those from the other three showed
Edmunds and Cosgrove to be elected. From
the decree so holding, McCoy and Donahue
have appealed.
The action of the court t>eIow in striking
off the discontinuance of the proceeding in-
stituted to contest the election of the appel-
lants, and In reinstating the petition of the
contestants after the expiration of the stat-
utory period within which a contest must lie
instituted, has not been assigned as error,
and we do not therefore pass upon the au-
thority of the court to reinstate the proceed-
ing.
[1] This appeal brings up a most rolumi-
nous record, and there are 92 assignments of
error, but the sole question for determination
Ts whether the court erred in throwing out
the returns from liost Greek. Before passing
upon this question it is proper tliat we say
no error was committed in refusing to open
the ttallot box from the William Penn pre-
cinct upon the petition of the respondents.
They failed to show fraud, irregularity, il-
legal voting, or counting of votes in that
precinct, which called for the opening of the
box, and the ninetieth assignment of error
is overruled.
[2-4] For mere Irregularities in condix;ting
an election it is not to be held void, evoi
though the election officers may be subject
to punishment for misconduct. Tliis is so
because tlie rights of voters are not to be
prejudiced by the error* or wrongful acts <^
the officers of the election, unless it appears
that a fair election and honest coont were
prevented. Krickbanm's Contested Election,
221 Pa. 521, 70 Atl. 862. Nor Is the mere cast-
ing of fraudulent votes sufficient to throw oat
the return from an election district "Tlie
remedy in such case is to purge tiie poiia by
striking out the fraudulent votes. If possible."
Melvln's Case, 68 Pa. 383. But where no
election is legally held in an election pie-
dnct, the returns from it may be thrown out.
[5] In the case now under considentloa
the conditions that existed at the electUm
at Lost Creek were as disgraceful as they
are inconceivable, and are thus properly sum-
marized by the learned court below, after a
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COMMONWEALTH t. BREKNAK
947
review of tbe testimony and tbe facts to be
found from it:
"The ballots, tally, return sheets, and sup-
plies generally, were tampered with; records
were irregularly and illegally kept; voters were
threatened before the election and on election
day ; were prevented from voting ; were intimi-
dated; coerced and not allowed to vote as
they wished ; blackjacks and pistols were used,
and personal attacks made on legal voters, over-
seers, and watchers while in the performance
of their duty. All of this was done by, or un-
der the direction of, the election offieera, aided
by their 'buffer' and his assistant."
It Clearly appeared from the testimony
tbat these ruffians intimidated tbe overseers,
and for this reason tbe court below was ex-
pressly authorized to throw out "all votes
polled in the precinct." Act January 30,
1874 (P. U 33), I 4.
Each appeal is dismissed on the following
correct conclusions reached by the court be-
low:
"Tbe whole election was illegally and fraud-
ulently conducted. The number of voters pre-
vented from voting by intimidation, threats, and
violence, and the number of voters coerced by
interference in tbe booths, could not be known,
and tbe correctness or lenlity of tbe vote cast
and returned could not be ascertained. There
was practically no election or opportunity for
the voters at this poll to express and have
recorded their wish or choice oy their ballot,
and there is no possible way to ascertain the
correct, or approximately correct, result out of
this seething mass of corruption, blackguardism,
and brute force."
Appeals dismissed at costs of appellants.
(2S8Pa. U
COMMONWEALTH ex rel. ZERNHOLT et al.
V. BKENNAN et al.
(Supreme Court of Pennsylvania. April 30,
1917.)
1. Constitutional IiAW 4s»24 — Constbuo-
TiON — Pre-existiko Laws.
As the constitutional amendments of 1909
<8ee 5 Purdon's Dig. Supp. [ISth EM.1 p. 5197,
par. 8), together with a schedule adopted for
carrying their provisions into effect, contemplat-
ed that general elections should be held in
evcn-numberd years, and municipal elections in
odd-numbered years, and extended the terms of
officers fixed at odd-numbered years to an even
number, all acts of the Legislature theretofore
in force, whether general or special, were al-
tered.
2. EiJcnoNs ^=30— Statcte— Repeal.
Act June 10, 1911 (P. h. 1047), and Act
May 20, I'.US (P. L. 268), enacted to enforce the
constitutiuuol amendments of 1909 relating to
municipal elections and terms of officers, repeal-
ed all legislative acts relating to boroughs,
whether general or special, inconsistent there-
with; the first act declaring that it should apply
to every borough in the state.
3. Municipal Cobporations ^»124(1) —
Statutes— ApPLiCABrLiTT.
General Borough Act May 14, 1915 (P. L.
312), relating to boroughs and election of munic-
ipal officers, does not apply to boroughs which
have not adopted its provisions.
4. Statutes <g=»169— Repeal— Revival.
A borough incorporated by Sp. Acts April
«. 1850 (P. L. 363), and Sp. Act April 12. 1807
(P. L. 1181), did not adopt tieneral Borough
Act May 14, 1015 (P. L. 312). which, after re-
pealing the acts of 1911 and 1913 declares in
chapter 1, art. 1, i 3, that the repeal of an act
or part thereof shall not revive any acts or
parts thereof theretofore repealed or superseded.
The two acts repealed had repealed all prior acts
applicable to boroughs, whether general or spe-
cuO. Held tbat tbe repeal of the acts of 1911
and 1013 did not revive the earlier special acts,
and hence defendants, who held offices of coun-
cilmen under an election had under the acts of
1911 and 1913, could not be ousted from office on
the theory that the election was void, and tbat
relators were, under the special acts incorporat-
ing the borough, entitled to bold office until their
successors were elected.
Appeal from Court of Common Fleas,
ScbuylkUl County.
Quo warranto by the Communwealtb, on
tbe relation of Henry Zemholt and another,
against Michael M. Brennan and others.
From an order sustaining a demurrer and
dismissing the writ, relators appeal. Af-
firmed.
Argued before BROWN, C. J., and MES-
TREZAT, POTTER, FRAZER, and WAI/-
LING, JJ.
Arthur L. Shay and Joseph J. Brown, both
of Pottsvllle, for appellnnts. C. E. Berger, of
PottsTille,' for appellees.
FRAZER, J. Relators have appealed from
the decree of the court of common pleas of
Schuylkill county, sustaining a demurrer and
quashing the writ of quo warranto brought
to oust defendants from office as members of
council of the borough of St Clair. The bor-
ough was Incorporated by special act of April
6, 1850 (P. I/. 363), and its supplement of
April 12, 1867 (P. U 1181), under which the
council was composed of nine members, three
from each of tbe three wards Into which the
borough was divided. Their term of office
was three years, and so arranged that one
member was elected by each ward annually.
Tbe act also provided that members should
continue to hold office until their successors
were duly appointed, and that vacancies be
filled by the remaining members until the
next election.
In 1909 Thomas Lawless was elected from
the south ward of the borough, to serve three
years from the first Monday of March of that
year. By tbe provisions of Act June 19,
1911, I 5 (P. L. 1047), his term was extended
to tbe fliist Monday of January, 1914. In
1910 Henry Zemholt, one of the relators, was
elected from the same ward to serve a three-
year term, which period, by virtue of the
provisions of the act of 1911, was extended
to the first Monday of January, 1914. In
1911 John Quigley was elected for a term of
four years, in accordance with the constitu-
tional amendment of 1909 and the act of
June 19, 1911, fixing the term of office of
borough councllmen at four years. The term
for which Quigley was elected ended accord-
ingly on the first Monday of January, 1016.
He resigned In March, 1913, and Walter
Smith, the other relator, was appointed to fill
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101 ATLANTIC RKFORTEB
(Pa.
the vacancy. It thus happened that at the
municipal election of November, 1913, three
members of council were to be elected for
the terra beginning the first Monday of Janu-
ary, 1914; one to fill the unexpired term of
Quigley, and the two others without designa-
tion of term, which was, however, to be de-
temined by lot, in accordance with the provi-
sions of the act of May 20, 1913 (P. I* 268),
amending the act of 1911. The official ballot
failed to designate the candidates for the un-
expired term of Quigley, left vacant by rea-
son of his resignation, and the court held the
election illegal and void, and ousted from
office the three persons chosen at that elec-
tion. Following the entering of this decree,
liawless, Zemholt, and Smith resumed their
seats as members, and continued to act until
the first Monday of January, 1916. At the
municipal election held in November, 1915,
the official ballot notified electors to vote for
one person for a term of four years, and
two for a term of two years to fill the unex-
pired terms of two persons elected In 1913,
and who had drawn four-year terms at the
organlisation of council on the first Monday
of January, 1914, but whose election had
been declared void. The election of 1915 re-
sulted In the dioice of re8p<Hidents to fill the
three vacancies; Brennan for the four-year
term, and Schuster and Hughes for two
years each. These candidates qualified, and
entered upon the duties of their office, and
acted therein without objection until April,
1016, when these proceedings were begun to
oust them from office on the ground that the
ballot was defective, for the reason it con-
tained no designation of a three-year term as
required by the Incorporating act of 1850.
[1-4] At the hearing counsel for relators
conceded the effect of the constitutional
amendment to be an extension of the term of
members of council to four years In all
boroughs, contending, however, that since the
acts of 1911 and 1913 were both repealed by
the general act of May 14, 1915 (P. L, 312),
and as the borough of St Clair has not ac-
cepted the benefits of the act of 1915, or of
the earlier general borough act of April 3,
1861 (P. L. 320), the provisions of the original
charter of the borough were again In force,
and that the voters of each ward must be
limited to the election of one member of
council each year; and, even If lawful to
elect more than one member, the offices to be
filled were not vacancies, but full four-year
terms succeeding the hold-over terms of re-
lators, and, consequently, the designation of
two of the offices as two-year terms, to fill
the unexpired terms of those whose election
in 1913 had been declared void, rendered the
ballot Invalid.
The constitutional amendments of 1909, to-
gether with the schedule adopted for carry-
ing their provisions into effect, contemplated
general elections being held in even-numbered
years, and municipal elections In odd-num-
bered years, and extended the terms of of-
fice fixed by any act of assembly at an odd
number of years, so as to make the period
of service an even number of years, and fur-
ther provided that changes In the duration
of official terms made by the Legislature
should thereafter provide for an even num-
ber of years' service. These amendments
must be considered as altering the provisiona
of all acts of the Legislature theretofore tn
force, whether general or special. The acta
of 1911 and 1913 were passed to further cat^
ry Into effect, or put In operation, the con-
stitutional provisions above referred to ; the
former containing the specific provision that
it should apply to every borough In the coni-
monwealth, whether governed by general or
special acts of assembly. The general bor-
ough act of May 14, 1916 (P. L. 312), con-
tains a codification of the laws retatlng to
boroughs, Including the election of munldpal
officers. The borough of St Olalr, not having
accepted the provisions of this act, that legis-
lation cannot be considered In disposing of
the present case.
Although the general act repeals the acta
of 1911 and 1913, chapter 1, art 1, { 3, pro-
vides that the repeal of an act of assembly,
or part thereof, shall not revive any acts, or
part thereof, theretofore repealed or super-
seded, nor affect the corporate existence of
any borough heretofore incorporated, and
that any person holding office under an act of
assembly repealed by the act of 1915 shall
continue to hold such office until the expira-
tion of the term for whldi he was elected,
subject to the conditions attached previous to
the passage of the act of 1916. If we should
now hold that the repeal of the acts of 1911
and 1913 reinstated the provisions of the spe-
cial acts of assembly, under wbidi the bor-
ough of St Glair was incorporated, the uni-
form plan or system of holding elections con-
templated by the constitutional amendments
will be destroyed. Elections in such cases
would be held at different times, and the
terms of ofllce of members of council neces-
sarily vary, d^tending upon the particular
provisions of local statutes. Sach conclasloii
Is Inconsistent with the constitutional amend-
ments, and statutes passed pursuant thereto,
providing for the holding of general elections
in even-numbered years, and municipal elec-
tions in odd-numbered years, and fixing the
term of office at an even number of years.
Counsel for plaintiff admits the constitution-
al amendment extended three-year terms to
four years, and that a municipal election can
now be held only every two years. If this be
conceded, the same reasoning would support
the conclusion that other inconsistent provi-
sions of the local acts were also modified, and
that the borough of St Olalr has now the
right to elect more than one member of coun-
cil In any of its wards at the same election.
Other questions are sought to be raised on
this record, especially the legality of the bal-
lot of 1916 ; but they are not properly before
the court, and do not call for decision. The
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COMMONWEALTH v. REESB
949
Buggestton for the writ Is limited to tbe ques-
tion above decided. It is true that. In, the
notes of the hearing In the court below, print-
ed In the appendix to appellant's paper book
without certificate by a stenographer or by
the Judge who heard the case, counsel for ap-
pellant states that the Informations were
drawn by other counsel, and "there will have
to be amendments made" to cover other ques-
tions raised, but so far as appears no amend-
ments were filed. They do not appear in the
appendix, and no mention Is made of them In
the "abstract of the record showing the exact
questions presented for the decision of the
court, and how disposed of," and the question
Is not considered by the court below.
The above disposition of the case covers all
questions properly raised by the record and
necessary for decision, and furnishes a suffi-
cient guide for the borough in the future. It
may not be amiss to suggest that an accept-
ance of the act of 1915 by the borough would
definitely fix all charter rights and tend to
prevent recurring litigation after each elec-
tion.
The Judgment Is affirmed.
(268 Pa. 7)
COMMONWEALTH ex rel. KELLER t.
SCHERR et al.
(Supreme Court of Pennsylvania. April 30,
1917.)
MunlCIFAI, COEPORATIONS ^9l24(4) — Ofti-
CER8— Statutes— Repeaz«
ThouKh General Bnrongh Act May 14, 1915
(P. K 312), repealed Act Jnne 19, 1911 (P. L.
1047), and Act May 20, 1013 (P. L. 268), relat-
ing to elections of municipal officers the special
acts creating the borough did not become effec-
tive, so that the election of members for coun-
cil must be for four years, and the election of
more than one candidate in the same year would
be illegal.
Appeal from Court at Common Pleas,
Schnylkin County.
Quo warranto by the Commonwealth, on the
relation of Nicholas Keller, against Oeorge
P. Scherr and another. From a Judgment
Bustalning a demurrer and. quashing the writ,
relator appeals. Afflrmed.
Argued before BROWN, C. J., and MES-
TREZAT, POTTER, FRAZBR, and WAL-
TJNG, JJ.
Arthur L. Shay and Joseph J. Brown, both
of Pottsvllle, for appellant. O. E. Berger,
of Pottsvllle, for appellees.
FRAZER, J. This appeal is from a decree
of the court below, quashing the writ of quo
warranto brought to determine the title of
respondmts to the office of members of coun-
cil in the borough of St. Clair, and raises
questions we have discussed in the preced-
ing case of Commonwealth ex reL v. Brennan
et at., 101 Atl. 947.
At the municipal election In November,
1911, Keller, the relator, was elected a mem-
ber of ooundl from the north ward of the
borough for a period of four years. At the
election in November, 1913, two persons were
elected from that ward without designation
of terms, and upon the organization of coun-
cil. Thorn, one of the candidates, was chosen
to serve for four years, and Davis, the other,
for two years, In accordance with the provi-
sions of the act of May 20, 1913 (P. L. 268),
amending the act of June 19, 1911 (P. L.
1047). At the election in November, 1915, the
official ballot designated two members were
to be elected in that ward for a term of fbur
years, one as successor of the relator, whose
term would expire January 1, 1918. Re-
spondents were duly elected, and these pro-
ceedings were instituted by relator, alleging
that since the general borough act of Alay 14,
1915 (P. L. 312), repealed the acts of 1911
and 1913, the special acts of assembly creat-
ing the borough were again in force, and un-
der them the election of members of council
must be for a term of four years, and that an
election of more than one candidate In the
same year Is Illegal. These questions were
tMth answered against the contention of re-
lator in the opinion in the preceding case of
Commonwealth v. Brennan.
The Judgment is afflrmed.
(268 p*. »)
COMMONWEALTH ex rel. WHITBHOUSB,
Dist. Atty., V. REESE et aL
(Supreme Coart of Pennsylvania. AprQ SO,
1917.)
Appeal from Court of Common Please Schuyl-
kill Oounty.
Quo warranto by the Commonwealth, on rela-
tion of C. A. Wbitebouse, District Attorney,
against William A. Reese and others, to oust
them from office as members of the council of
the borough of St. C3air. Demurrer to 8ugge»'
tion for the writ siutained, and writ quashed,
and relator appeals. Affirmed.
Argued before BROWN, C. J., and MESTBB-
ZAT, POTTER, FRAZER, and WAL-
LINO, JJ.
Arthur L. Shay and Joseph J. Brown, both
of Pottsvllle, for appellant. C. £3. Berger, of
Pottsville, for appellees.
FRAZER, J. The facts and drcnmstances in-
volved in tliia appeal are similar to those in
Commonwealth ex rel. v. Brennan et al., 101
Atl. 947, and arose out of a dispute concerning
the municipal election of 1915 in the middle
ward of the borough of St Clair. At the gener-
al election held November 4, 1013, there were
three members of council to be elected from that
ward, one to fill the unexpired term of two years
of Frank Post, temporarily filled by council and
which ended in 1915, and two to succeed John
Dodds and Frank Betz, whose terms expired in
1914; the election to be without designation of
terms, which were to be determined according to
the provisions of the act of June 19, 1911 (P. L.
1047). The official ballot at the election of 1913
failed to designate the candidates for the nnex-
pired term; consequently the election was aft-
erwards declared void, and those elected ousted
from office. Following this action of the court,
Betz resumed the duties of his office, and Fox
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101 ATIANTIC REPORTEK
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and Kantner were appointed by conncil to fill
the remaining two yacanciea.
At the municipal election in November, 1915,
successors to these three persona were to be
elected. The official ballot informed electors to
vote for one person for a four-year term, and
two for two years to fill the unexpired terms of
William H. Holmes and William A. Reese, who
had drawn four-year terms at the organization
of council on the first Monday of January, 1914,
and pursuant to the election of 1913, subse-
quently by the court declared void. These quo
warranto proceedings followed at the instance of
the J^strict attorney, alleging the election of re-
apondenta to be invalid for the reason the acts
of June 19, 1011, and May 20, 1913 (P. L. 268),
were repealed by the general borough act of May
14, 1916 (P. L 312), and that elections for
members of conncil in the borough of St. Clair
are regulated entirely by the special acts creat-
ing the municipality and according to which
such officials must be elected for a three-year
term, and but one each year. These questions
were both decided against the contention of re-
lators in Commonwnlth ex reL v. Brennan et
aL, supra.
We deem unnecessary the consideration of
questions relating to the form of the ballot at
the election of 1915, since no complaint of de-
fects is made in the information; the allegation
being confined to the contention that, since the
repeal of the acts of 1911 and 1913, not more
than one member of council should be elected in
any one year under the act incorporating the
borough, which statute it is argued Is again in
force, and such election must be for a three-
year term. The paper book of appellant in this
appeal contains nothing but the information and
answer, the latter in eifect a demurrer, and only
the averments therein set forth are before us.
Counsel argues that an amendment to the infor-
mation was made in the court below, but not
even a suggestion of it appears in the record
of this appeal.
Tlie judgment is affirmed.
(258 Pa. 108)
In re BBRGDOIX'S ESTATE.
(Supreme Court of Pennsylvania.
1917.)
May 7,
1. Trusts 9=>191(2) — Poweb or Saix —
Wills.
Under a will devising the residue of an es-
tate to trustees after disposing of one-third of
the realty and directing them to pay one-half
of the income of two-thirds of the realty to a
son and the remaining one-half to three grand-
daughters for their lives, and providing that on
the conversion of any realty into money, one-
third of the proceeds should be paid to the son
absolutely, and authorising the trustees to sell
and convert all or part of the realty at such
times and in such parcels as they might deem
best, such authority to sell waa equivaient to a
positive direction to sell, because of the neces-
sity of a sale to carry out the scheme of the
wUI.
2. CoNTKKSiON «=»15(4) — CoNBTBUcnoN or
Will.
Under such will, and after the son's death
after the testator leaving a widow and children,
one-third of the proceeds of the sale of the son's
share of the real estate went to his widow ab-
solutely.
Appeal from Orphans' Court, Philadelphia
County.
In the matter of an accounting In th6 es-
tate of Iiouis Bergdoll, Sr., deceased. From
nn order dismissing bis exceptions to adjudi-
cation Louis Bergdoll, Jr., aiveals. Af-
firmed.
The facts appear In the following opinion
by Dallett, P. J., In the oti;>haiis' ooort, sur
exceptions to adjudication:
This testator gave the residne of his estate
to his executors as trustees, directing them, after
the disposition of all of his personal and one-
third of his real estate as he had indicated, "to
collect, recover and receive the mts, issues and
profits thereof and to pay one-half part of the
rents, issues and profits of said two-thirds of
the real estate to my said son Louis Bergdoll,
Junior, and the remaining one-half part there-
of to pay to my three granddaughters, Elisabeth,
Catharine, and Louisa Schoening, equally, for
and during the terms of their natural lives
respectively. Upon the conversion of any of
my real estate into money as hereinafter men-
tioned, I direct the proceeds thereof diall be
disposed of as follows, to wit: One-third part
thereof shall be held and retained by said trus-
tees, In trust for my daughter, Louisa Alter,
and her children under the trusts her^befot«
declared and expressed for their use one other
third part thereof shall be paid to my son, Loais
Bergdoll, Junior, absolutely, and the remaining
one-third part thereof shall be held and retained
by said trustees upon the same trusts as above
directed for the use and ben^t of my three
g-anddaughtera, Elizabeth, Catharine and Lou-
a Schoening"— and added: "Tie said trusteisa
and the survivors and survivor of them are
hereby authorized to sell and convert all or part
of my real estate Into money at such time or
times and in such parcels as they in their dis-
cretion may deem best for the advantage of mj
estate, and whenever the said trustees shall make
public or private sale of any portion of my
real estate they are hereby authorized and em-
powered to make, execute and deliver to the
purchaser or purchasers thereof in fee simple
good and sufficient conveyances for the same free
and clear of all trusts and of the legacies and
annuities herein given and discharged from all
liability on the part of such purdiaser or pur-
chasers to see to the application of the pur-
chase moneys."
The testator died on August 10. 1894. His
son, Louis Bergdoll, Jr., died September 9,
1896, intestate, and leaving to survive him his
widow, Emma C. Bergdoll, and five children,
all of whom are living and of full age. This
is the fifth accounting, and includes the proceeds
derived from sales of real estate mad^ subse-
quent to the death of Louis Bergdoll, Jr.
[I] The exceptions relate to the andithw
judge's award of one-third of the share of the
proceeds to which Louis Bergdoll, Jr., would
be entitled were he living, to his widow, and
two-thirds to his five children, the exceptant,
a son, contending that the fund realised from
the sales should be treated as real estate and
one-third thereof awarded to EJmma C. Bergdoll,
Louis Bergdoll, Jr.'s widow for life only. We
believe the auditing judge's award the proper
one. It will be noted that the testator's only
gift to Louis BergdoU, Jr., after a gift of the
rents, issues, and profita derived from residuary
real estate, is of the proceeds derived from sales
thereof, and as well that the discretion given the
trustees as to sales relates only to the parcels
in which real estate is to be sold and to the time
at which the sales are to be made. To effect
gifta of proceeds, sales must at some time be
made. The inevitable conclusion is that while
the trustees are merely authorized by the will
to sell, that authorization, because of the neces-
sity to sell to carry out the sdieme of the tviU,
is equivalent to a positive direction to selL
In Fahnestock v. Fahnestock et al., 152 Pa.
56, 25 Atl. 313, 34 Am. St. Rep. 623, where
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HANDEIi * HAYDEN BUILDINO 4 LOAN AflS'N ▼. ELLEFOBD
951
due effect could Aot be' given material proTisi<»is
of the will without treating a mere power of
sale as a direction to sell and so operating as
an equitable conversion, Mr. Justice McColTum,
for the Supreme Ck)urt, said (page 61 of 152
Pa., piwe 816 of 25 Atl., 34 Am. St. Rep.
623): "If a testator authorizes his executors to
sell his real estate and to execute and deliver
to the purchasers deeds in fee simple, of the
same, as in this case, and it is clear from the
face of bis will that it was his intention that
the power so conferred by him should be exer-
cised, it will be construed as a direction to sell,
and operate as an equitable conversion. If in
addition to this dear intention of the testator
it plainljr appears that efTect cannot be given
to material provisions of the will without the
exercise of this power, tbe conclusion is irresisti-
ble that a conversion is as effectually accom-
plished by the will, and the duties of the ex-
ecutors under it are tbe same, as if it contained
a positive direction to sell."
In Sevems' Estate (No. 1) 211 Pa. 65, 67,
60 Atl. 492, 493, where it was held that an In-
tention to convert would be implied although
a sale was merely authorized if a sale was neces-
sary to carry out the provisions of the will, Mr.
Justice Mestrezat, for the Supreme Court, said:
"There is no difficulty in ascertaining the in-
tention of the testatrix from the provisions of
Mrs. Sevems' wilL She does not devise her
real estate, but empowers her executrix to sell
without any alternative disposition of it. It is
not given as real estate to the persons named in
the will, nor to any other person tor any pur-
pose whatever, but, in tbe language of the in-
strument, 'the proceeds of the sale of tbe said
premises I direct ray said executrix to divide
among my said three daughters share and share
alike.* We, therefore, have in the will an au-
thority given to the executrix to sell and a di-
rection to divide tbe proceeds of the sale in
equal shares among the three legatees. In or-
der to carry out the provisions of the will and
make that distribution of the proceeds of the
property, a sale of the real estate becomes im-
perative and is an absolute necessity. This, as
appears from the authorities cited above, meets
the requirements of our cases and operates as
an equitable conversion. The fact that the time
when, and the terms upon which, the sale should
be made are discretionaTy with tlie executrix
does not give the latter authority to prevent a
sale, nor to postpone it indefinitely. The dis-
cretion reposed in the executrix is a reasonable
and not an arbitrary one, and must be exercised
to carry out tbe plain intention of the testa-
trix that the property shall be .convertad into
personalty and the proceeds distributed equally
among the three sisters."
And in Bahn'a Estate, 57 Pa: Super. Ct. 457,
Judge Porter, for tlie Superior Court, said (page
461): "This will contains, it is true, no express
direction to sell the land ; it does, however,
authorize the executor to maJke a sale and con-
vey 'as good a title of my real estate sold as
I could were I living'; tne time of such sale
to be siibject to the joint discretion of Henry
Babn and the executor. 'And when so sold, that
the proceeds of said sale be equally divided share
and share alike between my husband, Henry
Bahn, and my daughter, Elsie Minerva BaW'
This is a positive direction to divide the pro-
ceeds of and not tbe real estate itself between
tbe two persons named, and there is an abso-
lute necessity, to sell to accomplish tlie purpose
of the testator. Taking all the provisions of
the will together, they disclose a clear intention
upon the part of the testator that the land
should be sold and the proceeds divided, and tbe
conclusion is in-esistiblc that a conversion is
effectually accomplished by the will, thongb tbere
was not to be an immediate sale. McClore's
.\ppcal, 72 Pa. 414; Roland v. Miller, 1(X)
Pa. 47; Philadelphia's Appeal, 112 Pa. 470 M
AtL 4]; Sevems' Estate (No. 1) 211 Pa. 66,
60 Atl. 402; McClarren's Estate, 238 Pa. 220
[85 AU. 111ft]."
[2] In all, these the facta appear very like
those in this estate, and in Knoppel's Estate,
25 Pa. Dist. R. 116, where the testator merely
authorized his executor to sell real estate and
gave tbe proceeds to bis children, nominatim,
Judge Lamorelle, for this court, said (page 117);
"The mere reading of the will shows that the
authorization to sell was tantamount to a direc-
tion, for the nine children were, in terms, given
the proceeds and not the real estate itself;
therefore a sale was essential to effect the dis-
tribution contemplated by testator."
We are satisfied that this testator's will work-
ed an equitable conversion of his real estate into
personal property as of the date of his death,
and that, such being the case, proceeds derived
from sales pass as personal property and not as
real estate. The award to the son's widow,
therefore (his estate having been settled and
all debts paid), of one-third of the share to which
her husband would have been entitled was cor-
rect
It should perhaps be added that in reaching
this conclusion we have not overlooked, although
we have not thought it necessary to discuss, the
apparently conflicting views expressed in opin-
ions heretofore filed in this state and relating
to the distribution of rents (Metzger's Estate,
222 Pa. 276, 71 Atl. 96; Id., 242 Pa. 69, 88
Atl. 915) or of the proceeds derived from sales
of other real estate.
Tbe court dismissed the ezceptlcxis. Louis
J. Bergdoll appealed.
Argued before BROWN, C. J., and STEW-
ART, MOSCHZISKBR, FRAZEIR, and WAL-
LING, 33.
William H. Balle, of Philadelphia, for ap-
pellant. R. Stuart Smith, A. Allen Wood-
ratt, and Nicholas H. Larzelere, aU of Phlla*
delphla, for appellee.
PER CURIAM. Tbe decree in tills case Is
affirmed, at appellant's costs, on tbe opinion
of tbe learned court below dismissing the ex-
ceptions to tlie adjudication.
OSS Fa. ;43)
HANDEL ft HATDEN BUILDING ft LOAN
ASS'N v. ELLEFORD et al.
(Supreme Court of Pennsylvania.
1917.)
May 7,
1. JuDOMBNT «aa>866 — LiXN — "Terre-ten-
ant' ' — Statdtb.
Under Act AprU 4. 1798 (3 Smitb'a Laws,
pp. 331, 332) §$ 2, 3, relating to the lien of judg-
ments upon realty and their revival, and pro-
viding that writs of scire facias to revive soaU
be served on the terre-tenant or person occu-
pying tbe realty bound by the judgment, the
terre-tenant" is one whose title is subsequent
to the incumbrance ; one other than the debtor,
who becomes seised or possessed of the debtor's
lands subject to the lien thereof; and in a
more general sense one who is seised or actually
possessed of lands as the owner thereof, so that
one deriving his title 11 weeks prior to the date
of tbe original judgment was not a terre-tenant,
and a default judgment of revival entered
against him was properly stricken from the
record.
[Ed. Note.— For other definitions, see Words
and Phrases, Terre-Tenant]
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101 ATIiANTIO REPORTER
(Pa.
2. Judgment iS=36750)— Scibe FACiAft-TEB- r
ke-Tenant— Adverse Possession.
On a scire facias to revive a judgment upon
a bond accompanying a mortgage, one summon-
ed as defendant's terre-tenant, who in fact did
not acquire the real estate in controversy while
subject to the lien of the original judgment,
was not precluded from setting np an adverse
title in a subsequent action of ejectment.
3. Fraudulent Convetanoes *=»230— Rem-
edy—Judicial Sale.
Where a sale is made to delay, hinder, and
defraud creditors, the proper way to test the
validity of the transaction is by a judicial sale
at the suit of a judgment creditor.
4. Fraudulent CowvETANCEa «=>237(2) —
Remedies of Creditor— Equity.
Where a judgment debtor makes a frandu-
lent transfer of property which otherwise would
be subject to the lien of the judgment, and the
creditor for some valid reason cannot then law-
fully proceed to immediate execution and sale,
or has no adequate remedy at law, he can sue
in equity.
6. Judgment €=s>252(1) — Scirk Facias— Oh-
OBBr— Responsiveness.
On scire facias to revive a judgment against
two defendants upon a mortgage bond against
them, and against their terre-tenant, where the
terre-tenant sought to strike off the default
judgment against him, an order striking off the
judgment against him only was responsive to
the relief a^ed.
Appeal from Court of Common Pleas, Pbll-
adelphia County.
Action by the Handel & Hayden Building
& Loan Association against William J. Elle-
ford, Eleise H. EUeford, bis wife, and
Cliarles C. Wells, terre-tenant From a judg-
ment making absolute a rule to strike off a
judgment against the terre-tenant, plaintiff
appeals. Appeal dismissed.
Argued before BROWN, O. J., and lifES-
TREZAT, POTTER, STEWART, MOSCH-
ZISKER, and FRAZER, JJ.
Joseph H. Sundhelm and I. Lasker Green-
berg, both of Phlladelpbla, for appellant.
W. Horace Hepburn, Jr., of Pliiladelphla,
for appellees.
MOSCHZISKER, J. WUIiam J. EUeford
and Elelse H., Us wife, executed to the plain-
tiff corporation a mortgage in the usual
building association form, secured upon real
estate in the dty of Philadelphia. Mrs. El-
leford owned another piece of real estate,
not covered by the mortgage, which, on Oc-
tober 15, 1914, the two defendants conveyed
to Charles C. Wells. On December 31, 1914,
a judgment by confession was entered in
favor of the plaintiff against these defend-
ants, upon the bond accompanying this mort-
gage. December 8, 1915, plaintiff filed of
record a suggestion that the above-mentioned
conveyance by EUeford and wife was made
without consideration, and with the intent
to "hinder, delay, and defraud the creditors
of Elelse H. EUeford, particularly the plain-
tiff In this case." December 9, 1916, a sd.
fa. to revive the judgment issued against
the two defendants and Charles C. Wells, the
latter being named as terre-tenant of the
property conveyed to him by the former;
and January 8, 1916, Judgment was entered
generally against all three, for want of an
affidavit of defense. April 4, 1916, Mr. Wells
obtained the allowance of a rule to show
cause why the judgment against him shonld
not tie stricken from the record; and, on
May 5, 1916, this rule was made absolute.
The plaintiff has appealed.
[1] Sections 2 and 3 of the act of April 4,
1798 (3 Smith's Ivaws, p. 331; 2 Purd. Dig.
[13th Ed.] 2042-2044), covering the subject
of the lien of judgments upon real estate and
their revival, provide. Inter alia, that writs
of scire facias to revive "shall be served on
the terre-tenants or persona occupying the
real estate bound by the Judgment." There
is some conflict in the earlier decisions of
this court concerning the meaning of the
term "terre-tenant," as used in this act; but
it is not necessary to review our cases chron-
ologically. It is sufficient to cite the last one
touching the point under consideration,
which conclusively settles it in favor of the
appellee. In Hulett et al. t. Mut Life Ins.
Co. of N. T., 114 Pa. 142, 146, 6 AtL 654, 555.
we said:
"A terre-tenant, in a general sense, is one
who is seised or actually possessed of lands as
the owner thereof. In a scire facias sur mort-
gage or judgment, a terre-tenant is, in a more
restricted sense, one, other than the debtor,
who becomes seised or possessed of the debtor's
lands, subject to the hen thereof. Those only
are terre-tenants, Uierefore, in a technical sense,
whose title is subsequent to the incumbrance."
Here, whatever title Mr. Wells may have
to the real estate sought to l>e covered by
the proceedings to revive, came to him be-
fore and not "subsequent to the incum-
brance"; hence he is not a terre-tenant,
within Uie meaning of the act depended upon
by the plaintiff, and should not have been
named as such.
Under some of our casea, where one is
prima fiicia a terre-tenant. In that he took
title to the real estate in question subse-
quent to the judgment sought to be revived,
a plaintiff has a right to name him as such,
even though the lien of the Judgment may
have expired; and, when so named, the
terre-tenant may defend under a plea that
the Judgment is not and never was a lien
upon his land. Hulett ▼. Mut life Ins. Co.,
supra ; Eanhauser v. Penna. & New England
R. R. Co. (No. 2) 222 Pa. 244, 71 AU. 4, 247:
Colwell y. Easley, 83 Pa. 81. In a case like
the present, where the record dejpended up-
on by the plaintiff clearly shows that the
person named as terre-tenant derived Iiis
title 11 weeks prior to the date of the orig-
inal Judgment, the fact that he is not a terre-
tenant within the meaning of the act of 1798,
as construed in our latest rulings, is so ap-
parent that, upon application, a Judgment
of revival altered against him by default
may properly be stricken from the record.
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BOOKWALTBB ▼. BOROUaH OF MT. UNION
953
If the swrnnaiy relief granted In tbls case
were not allowed, there would be nothing
to hinder a Judgment creditor In the position
of the present plaintiff from filing of record
suggestions of fraudulent conveyances cover-
ing all real estate disposed of by Ms mort-
gagor subsequent to the date of his mort-
gage lien, and thus, in numerous instances
unjustly, but none the less effectually, pre-
vent the marketing of such properties for
indefinite periods of time. While there are
some dicta in certain of our cases which,
no doubt, suggested to plaintiff the possible
Talldlty of such a procedure, yet we have
been pointed to no rullug authority therefor,
and we know of none.
[2] In a proceeding to revive, such as the
one now before us, a person summoned as
terre-tenant, who in point of fact did not ac-
quire the real estate in controversy while
It was subject to the lien of the original
Judgment, Is not precluded from setting up
an adverse title in a subsequent action of
ejectment (Mitchell v. Hamilton, 8 Pa. 486;
Dengler v. Klehner, 13 Pa. 88, 53 Am. Dec.
441; Drum v. Kelly, 34 Pa. 415; Colwell
V. Basley, supra; Gibbs v. Tiffany, 4 Pa.
Super. Ct. 29); and the present plaintiff does
not contend to the contrary, but only that it
should be allowed to retain whatever prima
facie rights it may possess under the Judg-
ment against the alleged terre-tenant
[3, 4] There Is an ample remedy to protect
whatever rights the plaintiff may have In
the premises ; for as well stated in the opin-
ion of the learned court below:
"Where a sale is made to delay, hinder, and
defraud creditors, the proper manner to test
the validity of the transaction is not by sug-
irestion and scire facias, as has been attempt^
m this case, but by a :udicial sale at the suit
of the jndgroent creditor." Stewart v. Coder,
11 Pa. 90, 94; Kemmler, Ex'x, v. McOovern
«t uz., 238 Pa. 460, 86 AtL 804.
A Judicial sale of all or any real estate
alleged to be subject to a Judgment, followed
by ejectment. Is the usual course pursued
in cases like the one at bar. Where, how-
ever, a Judgment debtor has made a fraud-
ulent transfer of property which otherwise
would be subject to the lien of the Judgment,
and the creditor, for some valid reason, can-
not for the time being lawfully proceed to
immediate execution and sale, or for any
other cause the latter has no full and ade-
quate remedy at law, then the doors of equi-
ty are opened to him. Fowler's Appeal, 87
Pa. 449; Hyde ▼. Baker, 212 Pa. 224, 61
Atl. 823, 108 Am. St. Rep. 865.
(SI The plaintiff contends that the order
appealed from is not responsive to the relief
asked, for the reason that the Judgment Is
a general one, comprehending the two orig-
inal defendants, as well as the terre-tenant,
and the prayer Is simply to strike it off,
without limitation; but, when the whole
petition Is read. It is perfectly apparent the
only relief desired was that the judgment
in question should be stricken off as to the
alleged terre-tenant and petitioner, Charles
C. Wells. The order of the court below was
properly restricted accordingly.
The assignments of error are overruled,
and the appeal is dismissed.
(268 Pa. 209)
BOOEWALTER et ux. v. BOBOUOH OF
MT. UNION.
(Supreme Court of Pennsylvania. May 14,
1917.)
Municipal Cobfosations «=»805(2)— Defko-
TIVE SiDEWAXK — CONTBIBUIOBT NkQU-
OENCE.
Plaintiff in an action against a municipality
to recover for injuries from a fall over a pile
of broken brick on a sidewalk, who had passed
over the sidewalk twice before on the same day
and had seen the broken brick, and who, when
injured in broad daylight, did not look to see
whether it was still there, was not in the exer-
dse of due care, and could not recover.
AK>eal from lOourt of Common Pleas,
Huntingdon County.
Trespass by J. G. Bookwalter and Ida
Bookwalter, his wife, against the Borough of
Mt. Union, to recover damages for personal
injuries. From an order refusing to take off
a compulsory nonsuit, plaintiffs appeaL Af-
firmed.
Argued before BROWN, Oi J., and MES-
TREZAT, POTTER, STEWART, and WAl^
LING, JJ.
Samuel I. Spyker, of Huntingdon, for ap-
pellants. Charles El Hower, of Mt Union,
for appellee.
PER CURIAM. In broad daylight, on a
May morning,. Ida Bookwalter fell on a side-
walk in the borough of Mt. Union, and this
action was brought to recover compensation
for the injuries she sustained. Her fall was
caused by stepping on spalls or broken brick,
and the negligence with which she <Aarged
the municipality was its failure to remove
the brick or stone from the sidewalk.
The borough may have been negligent in
this respect ; but the contributory negligence
of the plaintiff was dear, and it was the
duty of the court below to sustain the de-
fendant's motion for a nonsuit Just be-
fore she fell she was crossing the entrance to
an alley and approaching a curb on the side-
walk alongside of the entrance. The curb
projected 10 inches above the sidewalk, on
the north side of It the direction in which
the plaintiff was walking. She testified that
she had passed over the sidewalk twice be-
fore on the same day and had se«i the spalls
on It That she failed to exercise the proper
degree of care at the time she fell conclusive-
ly appears from her own admission. Her tes-
timony as to this Is as follows:
"Q. If you had looked over the curb, you
would have seen the spalls that were there.
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954
101 ATLANTIC RBO^ORTESR
(Pa.
couldn't yon. It was broad daylight? A. Yes.
Q. When yon came to that curb, yon didn't
look over to lee them? A. No, air. • • • Q.
The reason you didn't see the spalls on the op-
posite side of the curb, when you stepped over,
was because you didnt look to see them; is
that true? A. Yes, sir.*'*
Judgment affirmed.
(258 Pa. 201)
KBILLY V. CITY OP WILKES-BAKRB.
(Supreme Court of Pennsylvania. May 14,
1917.)
Municipal Oobpobatjoks «s»352— Conbtbuc-
TION OF CONTBACl^-LlABIIJTT.
Under a contract to furnish labor and ma-
terials in laying sewer pipes according to the
plans and specifications and the contractor's
proposal attached to the contract, requiring the
Didder to state the cost of each item and carry
out the total cost of the work according to the
propooal, and also providing that all ue work
and materials to be paid for should be measured
by the engineer, and whereby the city agreed
to pay for the completed work in accordance
with the plans the sum of .(48,980.59, the pro-
posal was a part of the contract, and the city
was not liable for the amount stated, but only
for the aggregate actual measurements at the
prices specified.
Appeal from Court of Common Pleas, La-
zerne County.
Assumpsit on a contract by C M. Reilly
against City of Wilkes-Barre. From a Judg-
ment on a verdict for plaintiff, he appeals.
Affirmed.
The following is the opinion of Fuller, P.
J., in the court of common pleas :
The action was brought to recover a balance
claimed on contract for building a sewer. By
that contract, dated October 25, 1912, plaintiff
agreed to furnish all labor and materials to ex-
cavate and back-fill trenches and to lay sewer
pipes therein, on certain streets in tne city
of Wilkes-Barre according to plans and specifi-
cations and plaintiff's proposal on file on the
city office, and attached to the contract; and
the defendant agreed to pay for completing said
work in accordance with plans and specifications
t 48,960.59 in the manner provided by the speci-
cations. Thus the proposal and specifications
became a part of the contract and must be con-
sidered in construing its terms.
In the proposal the plaintiff offered "to ex-
cavate and Imck-fill sewer trenches and to fur-
nish sand and cement and lay pipe in trenches
in accordance with plans and specifications of
the same for the following prices, and in greater
or smaller Quantities, vl«. • • • " Then fol-
lows some 17 items specifying different lengths
and depths of trenches, cubic yards of di^erent
material such as hardpan, rock, shale, and slate,
length and diameter of pipes, number of man-
holes, eta, with unit prices per lineal foot, cubic
yard, and manhole, all carried out. footed up,
and added together, amounting to the said sum
of $48,980.69.
This proposal was on a standard printed blank
used by the city, and contained the following:
"Bidders will fill in the cost per foot or yard
of each item as indicated on the above blank,
carry out the total cost of such items, and add
the bid showing total cost of work according to
thar proposal' — as was done in this case. It
was also provided: "All work and materials to
be paid for shall be measured by the engineer
and his assistants according to the plans, speci-
ficutions, and the lines given on the ground." i
It was also provided that in roek work certain
considerations shoald determine whether the es-
timate should be for rock, shale, or slate ; "these
estimates and the decision and judgment upon
which they are based to be final and conclnsive. '
It was also provided that at the end of each
month during the progress of the work the engi-
neer shall make an estimate of the total amount
of work during that month and the valuaticm
thereof at the prices stipulated and recorded
in the contract, which estimate shall be a war-
rant for payment of 90 per cent., the other 10
per cent, to remain unpaid until completipn,
and then to be payable within 90 days from
completion and acceptance.
The plaintiff received payments on monthly es-
timates of the engineer from time to time, 23
in all, forming a connected series, with balances
carried forward from one to the other, based
upon actual measurements and upon prices spec-
ified in the proposal, amounting all together to
$S4,046.04.
Ten per cent, was retained out of each month-
ly estimate as agreed, and upon completion and
acceptance of the work by the city, December
9, 1914, the final estimate was $4,971.69, whi«h
the city offered and still offers to pay.
There were some minor questions in the case
which are not in controversy at this time, and
need not be mentioned or considered.
The plaintiff in substance claimed that on his
construction of the contract he was entitled to
the flat sum of $48,980JS9, regardless of meas-
urements, with credit of $34,046.04, leaving a
balance of $14,934.55, subject to some further
credit connected with the minor questions just
mentioned. Tlie defendant, on the other hand,
claimed that on its construction of the contract
the limitation of liability was actual measure-
ments and specified prices, that is $39,017.63,
less paymenU $34,046.04, leaving $4,971.69,
as set forth in the final estimate above mention-
ed, with some addition thereto connected with
the minor questions aforesaid. Thus the cpn-
troversy involves a construction of the contract
as between $48,980.69, claimed by the plaintiff,
and the unit basis diaimed by the defendant.
In our charge to the jury we adopted and we
still bold to the latter.
The defendant offered evidence of a contem-
poraneous similar contract, in which the plain-
tiff himself adopted and acted upon the defend-
ant's construction, but we rejected the evidence
on the assumption, which we stQI make, that
the contract taken as a whole was free from
ambi^ity.
Plainly, we think, the contract was to do the
work for $48,980.69 if the measurements
amounted to so much at the specified unit pric-
es. The measurements stated in the proposal
were estimated as closely as they could be in
advance. If ther fell short, the cost wonld be
correspondingly less; if they went above, the
cost would be correspondingly more. No other
construction would be fair to either party. No
other construction accords with the language of
the different ptovitdons heretofore quoted, ac-
companied by the specification of pnces. Why
specify prices or measurements "in greater or
smaller quantities" if a flat payment of the total
amount is contemplated?
Without further discussion, which the case
no doubt deserves, but which we have not the
time to bestow, we concur with the trial judge
that the contract clearly contemplates payment,
not of a flat $48,980.69, but for aggregate actual
measurements on prixres specified.
Verdict for plaintiff for $6,411.41 and judg-
ment thereon. Plaintiff api>ealed.
Argued before BROWN, C. J., and MES-
TREZAT, POTTER, FRAZER, and WAJL-
UXG, JJ.
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MUBBAT T. BAKBAIJ.
955
John McGahren and B. B. Alexander, both
of Wilkes-Barre, for appellant EJvan C.
Jones and Charles F. MicHu^, both of
Wllkes-Barre, for appellee.
PEB CUBIAM. The proposal of the plain-
tiff to the defendant to do the work for which
he bid and the specifications upon which It
was based became parts of the contract upon
which he brought this action. The proposal
was to do the work and furnish materials at
an estimated price for certain Items, which
prices were to be paid for "greater or small-
er quantities." The contract was correctly
construed bjr the court below as imposing
^liability upcn the city, not for the flat sum
of $48,9S0.59, as claimed by the platntlfl, but
for such less or larger sum as would result
from applying the specified unit rate prices
to the actual measurements of work done,
as claimed by the defendant."
Judgment affirmed.
<2S8 Pa. 2M)
BOBOUGH OF HOLLIDAISBUBO t.
SNYDEE.
(Supreme Court of Pennsylvania. May 14,
1917.)
Indemnitt «ss>14 — Aonoir Over Against
Toet-Peasort— Conclusiveness of Adjudi-
cation.
In a municipality's action to recover from
a property owner the amount of a judgment it
had been compelled to pay in an action for in-
jury resulting from the dangerous condition of
his sidewalk, where the evidence waa conflicting
as to his notice of the action against the mu-
nicipality, the record of such action, showing
that he was present and testified tiierein, was
admissible.
Appeal from Court of Common Pleas, Blalr
County.
Assumpsit by the Borough of Hollldays-
bnrg against Plymouth W. Snyder, executor
of Anna C. Bell, deceased, to recover the
amount of a judgment which plaintiff was
compelled to pay for injuries caused by the
dangerous condition of a sidewalk. Verdict
for plaintiff for ' $2,072.31, and Judgment
thereon, anU defendant appeals. Affirmed.
Argued before BROWN, O. J., and A£ES-
TBEZAT, POTTEB, STEWABT, and WAL-
MNG, JJ.
John M. Snyder, of Philadeliriiia, J. Lee
Plnmmer, of HoUldaysburg, and William L.
Snyder, of Shamokln, for ai^>ellant Marion
D. Patterson, of HoUldaysburg, and Thomas
H. Greevy, of Altoona, for appellee.
PEB CUBIAM. This action was brought
by the borough of HoUldaysburg to recover
from the estate of Anna O. Bell, deceased,
the amount of a Judgment It was compelled
to pay in a suit brought against it by Teresa
tireea, for injuries sustainefd In falling on
an ley pavement in front of a property owned
by Miss Bell. The record of that suit was
admitted In evidence in this action, and the
main complaint of the appellant— -and the
only one to be noticed — Is of its admission,
because, he alleges, be had not received notice
from the borough of the former proceeding
against it Whether he had received such
notice, and was thus given the opportunity
to ask to intervene as a defendant, was sub-
mitteld to the Jury as a question of fact, and
their finding that he had had due notice of
the proceeding against the borough was sup-
ported by the evidence^ The borough solici-
tor testified that, when the case against the
borough was fixed on the trial list, he went to
the appellant and said to him :
"It is highly important for you to take some
interest in this case, for, in the event of the
borough being held responsible, it may be pos-
sible that you wiU in turn be made liable."
In addition to this, the appellant was ac-
tually present at the trial of the case and
testified in it as a witness. Nothing is dis-
coverable in the assignments of error caUing
for a retrial of the case, and the Judgment
is affirmed.
(258 Pa. 113)
MUBBAT et aL v. BANDAI>L et aL
Appeal of MATISEB.
(Supreme Court of Pennsylvania. May 7, 1817J
Judgment fl=5>382— Motion to Steike.
Where one of the two defendants in eject-
ment filed a disclaimer before trial, and the jury
were sworn as between the plaintiff and the
other defendant but rendered a verdict against
both defendants, a motion to strike off the judg-
ment entered thereon was properly refused,
where the disclaiming defendant did not com-
plain.
Appeal from Conrt of Common Pleas, Ln-
seme County.
Ejectment by John C. Murray and another
against A. Blanche Bandall (now A. Blanche
Matiser) and John Morrett, to recover land
in Liuzeme county in which defendant Mor-
rett disclaimed. Judgment for plaintiff
against both defendants, and from an order
discharging rnle to show cause why Judg-
ment should not be stricken off, defendant
A. Blanche Matiser appeals. Appeal dis-
missed.
Argued before BHOWN, O. J., and MES-
TBEZAT, POTTEB, PBAZEB, and WAI.-
LING, JJ.
B. B. Jones, of Wilkes-Barre, R. B. Smith,
of Philadelphia, and EX G. Butler, of Wilkes-
Barre, for appellant Bichard B. Sheridan,
Michael F. McDonald, and John T. Lenahan,
aU of Wilkes-Barre, for appellees.
PEB CURIAM. In this ejectment one of
the two defendants, John Morrett, filed a dis-
claimer before the case was called for trial.
Notwithstanding this, a verdict was rendered
against both defendants, and Judgment
thereon was duly entered. A. Blanche Mat-
iser, the other defendant, appealed from
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101 ATIiANTIC REPORTER
(Pa.
that Judgment to this court, but subsequently
.suffered a non pros. Shortly afterwards she
presented her petition to the court below,
asking that the Judgment be stricken off, for
the reason that the verdict had been improp-
erly rendered against herself and Morrett, In
Tlew of the tatter's disclaimer before the
trial. This petition was dismissed for the
good reason that Morrett himself was not
complaining of the Judgment against him,
and the entry of It in no manner impaired
or invalidated the Judgment against the ap-
pellant. •
Appeal dismissed, at her costs.
(258 Pa. MS)
rui/rON COUNTY BANK v. SWOPB et aL
(Supreme Court of Pennsylvania. May 14,
1917.)
JUDGMKKT «=»68(2) — OpENIHO JtTDOMENT —
Grounds.
A judgment on a note, given in renewal of
another note upon which defendants claimed
they were not liable, will not be opened, where
it appeared that, when the renewal note was
given, they had full knowledge of all facts con-
nected with the execution of the original note.
Appeal from Court of Common Pleas, Hunt-
ingdon County.
Action by the Fnlton County Bank against
M. F. Swope and others. From an order re-
fusing to open a Judgment for plaintiff, de-
fendants appeal. Appeal dismissed.
Argued before BRO^VN, C. J., and MBS-
TREZAT, POTTER, STEWART, and WAL-
UNO, JJ.
James S. Woods, of Huntingdon, for appel-
lants. Walter K. Sharpe, of Chambersburg,
H. H. Walte, of Huntingdon, and Irvln C.
Elder, of Chambersburg, for appellee.
PER CURIAM. The Judgmoit which the
appellants would have opened was entered on
a note given in renewal of another Judgment
note executed by them. They ask that the
Judgment be opened, because they aver they
were not liable on the original note, for rea-
sons which need not be considered; for, even
If they were mistaken as a matter of law as
to the character of the first note, they gave
the second with fnll knowledge of all the
facts connected with the execution of the
first. For this reason, the action of the court
belo<w Is sustained. Garrett v. Oonter, 42 Pa.
143; Building & I/oen Aasodatlon t. Walton,
181 Pa. 201, 37 Atl. 261.
Appeal dismissed, at appellants' costs.
(258 Pft. 188) "^"^^
HACK r. SHOVUN,
(Supreme Court of Pennsylvania. May 14,
1917.)
CORTBAOTB «=»323(3)—ACTIOW— QUESTION POR
JuBT— Abandonment.
In an action for labor and materials furnish-
ed under building contract, held, on the evidence,
that whether the contractor had forfeited his
right to recover by refosing to accept the ardii-
tect's estimates under the contract, and by no-
tifying defendant tliat lie would not proceed un-
til paid what was found to be due him upon
a re-estimate, was a question for the jury.
Appeal from Court of Common Pleas, Lu-
zerne County.
Assumpsit on a building contract by John
Hack against John F. ShovUn. From a Judg-
ment on a verdict for plaintiff, defendant ap-
peals. Affirmed.
Garman, J., filed the following (pinion In
the common pleas sor defendant's motion for
a new trial:
Plaintiff and defendant were parties to a build-
ing contract dated November 10, 1913, wherein
the plaintiff agreed to do the work and furnish
the materials for the sum of $6,907, and defend-
ant agreed to pay said sum, the manner of nay-
ment set forth in the contract as follows: "(hi
the 1st day of every month the architect shall
make a monthly estimate of the value of the
work done on the building, on which day the
amount of said estimate, less 10 per cent., shall
l>e paid contractor; when the nnal estimate is
made and building accepted the 10 per cent,
reductions theretofore made shall be added to
and made part of the final payment. And it la
hereby expressly covenanted, understood and
agreed by the said party of the first part that
10 per cent, of the amount of each payment is to
be retained by the party of the second part
until the said building is completed and finisjied,
and finally accepted by the party of the second
part."
On the Ist of December, 1913. the architect
made an estimate addressed to Mr. Shovlin in
the following form: "This is to certify tliat the
first payment of $360 is due to John Hack,
contractor on your building, Park avenue,
Wilkes-Barre, Pa. John J. Feeney, Architect.
John Hack, Contractor." 'Riis naper was ac-
cepted by both parties as an estimate, and de-
fendant paid to plaintiit the snm of $.S60. On
the lat of January 1914. the architect presented
a paper, addressed to Mr. Shovlin, reading aa
follows : "This is to certify that the second "ay-
ment of one thousand dollars is due to Mr. John
Hack, contractor on your building, Park avenue,
Wilkes-Barre, Pa. John J. Feeney, Architect,
Amount of contract, $6,907; previously paid,
$360; this certificate. $1,000; balance, $5,547.'^
To tills paper plaintiff objected, on the ground
that it was not a proper estimate, and demanded
a re-estimate.
On the 7th of January, 1914, the architect sent
In another paner as follows: "Wilkes-Barre,
January 7, 1914. Mr. John Shovlin— Dear Sir:
I have re-estimated the amount of work and ma-
terials fixed in on your building, Paik avoiue, aa
done by your contractor, Joiin Hack, for the
month of December, 1913, as follows: Entire
excavation, 766 yards at .60, $459.60; 68 yards
of concrete, at $6.00, $408.00: brick wall in
cellar, at $15 per thousand, $82.00; 0,700 feet
hemlock, at $45.00 per thousand, $440.55; 10
cellar window frames, at $1.50, $15.00; total
$1,405.15. John J. Feeney, Architect." This
paper was delivered to Mr. Shovlui, who de-
clined to pay Hack according to its findings, but
oftered Hack a check for $1,000, as per cer-
tificate of January 1, 1914.
Now, if the case rested right here, who would
doubt that ShovUn stiould have paid Hack $1,-
264.63, the amount of the estimate, less 10 per
cent. But on the 5th of January, 1914, Hack
sent to Shovlin a letter as follows: "I have
been advised by my attorney to notify you that
John J. Feeney, archt. for your bailding. Park
ave., city, is to re-estimate the amount of work
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HACK ▼. SHOVLIN
957
and material fnrnlBhed on said bailding to Jon-
nary 1, 1914, in a fair and honest manner. I
also demand a copy of his estimate to date. 1
will allow you for readjustment until January
6, 1914, at 4 :30 p. m. If not settled satisfac-
tory by said time and date, I shall quit work
on your building and hold you responsible for
all delays." As indicated in this letter, Hack
quit work on the 6th of January, 1914, at 4:30
p. m.
On the 8th of January, 1914, Sbovlin and
Feeney sent to Hack the following letter : "You
are hereby notified that, because of your having
quit working on the John F. Sbovlin building
on Park avenue, city of Wilkes-Barre, Pa., which
you contracted to build for him, and having
neglected to supply a sufficiency^ of materials
and workmen, whereby, in our opinion the com-
nletion of the said building at the time specified
wiU be prevented, and having failed and refused
to follow the drawings and specifications, it is
our intention to enter and take possession of
the premises and bldg. in three (3) days after
service of this notice on you and provide ma-
terials and workmen to complete and finish said
bldg. as provided in the specifications and con-
tract. For any loss sustained by John F. Shov-
lin, resulting from your refusal or failure to
perform the contract you will oe held responsi-
ble." This letter was followed by one dated
January 26. 1914, to ShovUn from Hack's at-
torneys, demanding the sum of 52,361, the
amount claimed by Hack to be due to him for
materials furniAed and work and labor done to
January 1, 1914. . ^ .
Now at this point a review of the circumstanc-
es will disclose these facts: (1) Hack demanded
of Shovlin a new and honest estimate, threat-
ened to quit work, and did quit work on the 6th
of January, 1914. (2) Shovlin on January 7,
1914, received an estimate showing the items
of work and material furnished by Hack and
the sum of 51,4(6.15 due him. (3) Shovlin and
Feeney, both knowing of the contents of the re-
estimate on January 8, 1914, demanded, with-
out tender of full payment, that Hack proceed
within three days or forfeit his contract. After
the 8th of January, Hack did no more work,
and Shovlin made a contract with another per-
son to complete the work, and in the trial claim-
ed from Hack the sum of $7,439 for failure
to complete his contract and for expenses in-
curred m correcting HacK's bad work.
As to the estimate, we instructed the jury
that. If the architect had stood by his estimate
known in the case as of January 1st, both Hack
and Shovlin would have been bound by it ; but
when the architect made a re-estimate, showinu
the incorrectness of the first paper, Shovlin was
bound by it, and thereforp would not be enti-
tled to set off against Hack any expense, except
such as was necessary to correct bad work done
by Hack; that Hack might recover such sum aa
the jury should find to be the actual value of the
materials furnished and work done up to Janu-
ary 7, 1914, lees such amount aa the jury would
deduct for payments made to Hack and for bad
work or defective work attributable to him. And
on consideration of these instructions we are un-
able to see any error. As a fact there was no
estimate worth considering until that of Jan-
nary 7th. The contract si)ecified that Hack was
entitled to a monthly estimate of the value of
the work done on the building and to pay for
the value, less 10 per cent. When, therefore,
Sbovlin learned on the 7th of January that there
was due on the 1st of January a sum of ex-
cess of the first estimate, he was bound to ten-
der Hack the sum due, less 10 per cent.
But Shovlin claimed that, as threatened by
the letter of January 5th, Hack quit the work
and abandoned his undertaking. This Hack
denied, and averred that he quit the work only
pending the dispute about the estimate. As to
these contentions we said to the jury: "If you
find that Hack absoKitely quit on the 6th of
January, before this estimate of the 7th came
into the hands of Mr. Sbovlin, then I think he
is not entitled to recover." Also : "You will
be permitted to take this letter of Mr. Hack,
and your material question will be: Was that
letter an absolute declaration of forfeiture of
the contract on the part of Mr. Hack? If so,
this being an entire contract, I would instruct
you that Mr. Hack could not recover. But if it
was only a notice that he would cease work
pending the determination of the estimate, then
we would say to you that, after Mr. Shovlin got
the estimate on the 7th of January, it is our
opinion that he would be liable for its amount,
and having himself forfeited the contract after-
ward by the letter of the 8th of January, he
could not recover for anything that he afterward
spent in the erection of the building, and could
only recover in the way of set-oS the amount
that he may have had to spend for work that
was not pro'>erly done while the contractor was
in possession."
If our theory be correct, that the estimate of
January 7th was binding upon Shovlin and
Hack, then it follows that Shovlin was bound to
tender Hack payment as shown by the estimate,
less 10 per cent; if the jury found that Hack
suspended work only during and pending the
making of an "honest estimate," then he would
be entitled to full pay for work done up to the
time that Shovlin took possession of the prem-
ises. We believe this view of the case the just
one, and that our cliarge to the jury properly
left to them the determination of disputed facts.
Defendant's first exception is to our answer to
his third point, which point was as follows:
"(3) He architect did make an estimate of the
value of the work done on the building during
the month of December, 1913, by the plaintiff,
and the defendant tendered to him a check in
nayment of the amount of said estimate which
was refused." To which we answered: "I will
not affirm that point, but will say to you that
there is evidence to justify your so finding.
Even if there be no contradiction, the facts are
for the jury." Our answer simply left to the
jury whether the certificate of January Ist was
an estimate.
The second exception is to our answer to his
fourth point which point is: "(4) Even if said
estimate were made in bad faith and for a dis-
honest purpose (and there is no evidence that
it was), such action on the part of the archi-
tect could not affect the rights of die defendant
under the contract unless he were a party to it."
And the answer thereto was: "That point is af-
firmed. We have already told you, however,
that when the second estimate was tendered to
Mr. Shovlin, and be retained it without com-
plying with it, if he had any liability, it was
then revived, and he would have been liable for
the amount of the said estimate." In this we
see no error. In view of the affirmation of the
point, it was proper to refer to previous instmc.
dons applicable to "action on the part of the
architect" relating to his estimates.
We do not deem it necessary to discuss the
other exceptions taken, because we do not think
they are well taken, and therefore the rule for
new trial is discharged.
Verdict for plaintiff for $2,478.95, and Judg-
ment thereon. Defendant appealed. Brrors
assigned were instrnctlong to the Jury and in
refusing to direct a verdict for defendant.
Argued before BROWN, C. J., and MES-
TRBZAT, POTTER, FRAZER, and WAL-
LING, JJ.
M. J. Mulhall, of Pittston, and A, O. Camp-
bell, of Wllkes-Barre, for appellant. J. Q.
Crereling and G. B. Kleeman, both of Wllkes-
Barre, for ai^ellee.
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101 ATLiANTIO BEP0RTB3B
dPa.
PER CURIAM. The learned trial Judge
Instructed the Jury to find as a fact whether
the written notice of the apjjellee to the ap-
pellant of January 5, 1914, was an absolute
abandonment of the contract by the former,
or merely that he would not prosecute the
work until, upon a re-estimate for December,
he was paid what was due him. The finding
of the Jury was that he bad not absolutely
abnmloned the contract, and, as the appellee
did not tender payment to him of the amount
due on the re-estlmate of January 7tb, he
was entitled to recover.
This was the correct rlew of the court
below in discharging the rule for a new trial,
and the judgment is affirmed.
<268 Pa. m)
FORD T. UEHIGH & WIDKES-BABRB
GOAL. CX).
(Supreme Court of Pennsylrania. May 7, 1917.)
Masteb and Sbbvant «=»278(10)— Acnow fob
Injuby— SumciBNCY or Evidbnce.
Evidence in an action against a minins com-
pany to recover for the death of plaintiff's son,
killeid by a car while attempting to ring a bell
used to signal the engineer in charge of cars,
alleging negligence in not providing a safety
hole in which to si^al, evidence held to sus-
tain a verdict for plaintifE.
Appeal from Court of Common Pleas, Lu-
zerne County.
Trespass by Mary Ann Ford against the
Lehigh & Wilkes-Barre Coal Company to re-
cover damages for the death of her son.
From a judgment on a verdict for plaintiff,
defendant appeals. Affirmed.
From the record It appeared that Stanley
Ford, the plalntllTs son, was employed at the
Hollenbach No. 2 colliery or slope of the de-
fendant In Luzerne county on April 18, 1914.
Ford's duty was In part to signal to the en-
gineer the manner in which the trip was to
be hoisted or lowered. Th^s signal was
given from an electric push button, hanging
from a wire and situated about three or four
feet from the rail, and between the slope and
a lift or branch. The lifts- are openings that
run off from the slope and vary in dimensions.
The place where Ford was killed was several
hundred feet from the bottom of the slope.
Two cars were being lowered from the top of
the slope by means of a rope. In some man-
ner the lower car became separated from the
car attached to the rope and ran down the
slope, jumping the track a few feet above the
point where Ford was' attempting to ring the
bell to signal the engineer to slack up on the
trip, striking him, and causing his death.
Verdict for the plaintiff for $2,319, and judg-
ment thereon. Defendant appealed.
Argued before BROWN, C. J., and MES-
TREZAT. POTTER, FRAZER, and WAL-
LING, JJ.
Evan C. Jones, Gilbert S. McCUntock, Ar-
thur Hillman, and Andrew H. McCllntock, all
of Wilkes-Barre, for appellant. Paul Bedford
and Frank A. McGuigan, both of Wilkes-
Barre, for appellee.
PER CURIAM. It appears from the tes-
timony In this case that in other mines; and
la other parts of appellant's mine, the signal
to hoist or lower cars was located In a safety
hole. If the deceased had been In sudi a
h61e when he was attempting to ring the bell
to signal the engineer, he could not have been
struck by the car, which ran down the slope
and jumped the trade. Whether the defend-
ant's failure to provide a safety hole, where
the deceased was working, was negligence,
was properly regarded by the learned trial
judge as a question of fact for the jury.
It was the only question in the case, and
judgment on the verdict is affirmed.
(SB Pa. IM)
FRITZ ▼. ELK TANNING CO.
(Supreme Court of Pennsylvania. May 14,
1917.) «
1. Evidence «=»528(1)— Opinion Evidbnc*—
Cause of Illness.
The deliberate opinions of physicians aa to
the cause of an illnesd are competent
2. Master and Sekvant «=3285(5) — Safe
Place to Work — Question for Jubt.
In an action by the employ^ of a leather
tanning company to recover for injuries to his
health, alleged to have resulted from inhaling
poisonous fumes against which he was not pro-
tected, heidj on the evidence, that whether the
poisonous tumes arose from a vat and were
mhaled by him, and whether his sickness result-
ed therefrom, were questions of fact.
3. Masxeb and Sebvant «=32S4(1)— Aonoir
FOB Injury— Question fob Jury.
In Kuch action, where plaintiff's case was
supported by positive and circumstantial evi-
dence and by expert opinion, there was a ques-
tion for jury, notwithstanding the strength of
opposing proofs.
4. New Trial «»72— Obouros — Ybbdiot
Against Wxioht of Evidbmok.
Where a verdict is against the weight of
the evidence, the remedy is a new trial.
6. Master and Sebvant *=»107(7) — Saw*
Place to Work— PoisoNotra BVmes— Stat-
ute.
Act May 2, 1906 (P. L. 352) { 11, is manda-
tory and requires a leather tanning company
to know the character of the fumes and gases
arising in its bleachrooma, and, if they are
poisonous, to provide for their elimination ; and
where there was no attempt to comply there-
with, and no claim that it could not have been
complied with, and the poisonous fumes injured
a workman^ witliout negligence on his own part,
he was entitled to recover.
6. Master and Servant €=289(4)— Actioh
FOB Injury— Contributory Negligence.
In such case, the fact that the employe, un-
der the assurances of the superintendent that
the fumes were not injurious, continued at his
work, did not as a matter of law charge him
with contributory negligence.
Appeal from Court of Common Pleas, Sul-
livan County.
A=sPor otber cam see lame toplo and KBY-NUMBBR in all Kcy-Numbared Diseats and Indezaa
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IlirrZ T. EliK TANNINa oo.
95»
Trespass t>y NArman A. Fritz against the
Blk Tanning Oompany to recover damages
for the loss of plalntitTs health, alleged to
baye resulted from defendant's negligence.
Verdict for plalnUfT for $5,000, and Judg-
ment thereon, and defendant appeals. Af-
firmed.
Argued before BROWN, C. J., and ME.S-
TREZAT, POTTER, FRA2ER, and WALL-
ING, JJ.
John G. Johnson, of Philadelphia, E. J.
Mullen, of La Porte, and W. E. Rice, of
Warren, for appellant. Charles M. Culver,
of Towanda, F. W. Meylert, of La Porte, and
J. H. Thayer, of Dusbore, for appellee.
WALLING, J. Defendant was operating
a tannery at Jamison City, In Sullivan coun-
ty, wbere plaintiff was «nployed from Octo-
ber, 1911, to February, 1913. A long nar-
row room, called the bleachroom, occupied
one side of the tannery, wherein was a tier
of five vats ; each being 4^ feet in diameter
and 6 feet deep. These vats contained liq-
uids into which the bides were dipped by
machinery in the process of bleaching. One
vat contained water warmed to the temper-
ature of 126* Fahrenheit, into which each
morning plaintiff poured from a crock 110
pounds of sulphuric acid, sometimes called
"oil of vitriol." This caused a hissing sound,
and a substance resembling steam or fog to
rise from the vat, covering the operator and
the immediate surroundings. After pouring
in the acid, it was the duty of the operator
to stir the contents of the vat with a l<Hig
stick, called a "plunger." About 16 times
dally, it was the operator's duty to replen-
ish the vat with 11 pounds of the acid;
when to some extent the result above de-
scribed would occur, as it also would when
the hides were dipped therein. Plaintiff
worked from 10 to 13 hours a day, and his
duty as operator in this room required him
to be near the vats a large part of the time.
The room was about 12 feet high, and con-
structed with windows at the sides and ven-
tilators at the top, bat without an exhaust
fan. In warm weather the windows and
ventilators were open, bat in cold weather
defendant kept them closed — In fact, caused
the vMitllators to be boarded up and batten-
ed tightly. There were two large openings
between tliis and the main room; but, as
the latter was also kept closed in winter,
tliat fact did not greatly assist in changing
the air In the bleachroom.
When plaintiff began this work, he was
robust, 26 years of age, and weighed 195
pounds; when he quit he was a physical
wreck, and for 16 months thereafter walked
upon crutches, and much of that time was
confined to the house, and has not since l)een
able to do any work. At the time of the trial
In 1916 he could walk with the assistance of a
cane, and weighed 140 pounds, and seemed to
be permanently disabled. Plaintiff brought
this suit on the allegation that he had not
been afforded a reasonably safe place lu
which to work, by reason of whitb he had
become the victim of sulphnrlc add poison-
ing, and thereby lost his health. About 6
weeks before plaintiff quit such employment,
he complained to the superintendent of the
tannery of ill health, described his symp-
toms, and said in effect that he thought the
fumes from the vats were causing his trou-
ble, and requested that he be given work
elsewhere. The superintendent assured him
that there were no Injurious fumes in the
bleachroom, that he must be suffering from
rheumatism, and directed him to return to
his work. Plaintiff's symptoms then were,
inter alia, drowsiness and pain in an eye.
arm, and leg. Other ailments developed
later, Including serious sores upon the leg,
and eye aflUctlon, known as iritis, valvular
heart trouble, and multiple neuritis, from all
of which he was suffering when the case was
tried In the court below.
[1] It is plaintiff's contention that, when
sulphuric add Is added to water of the tem-
I>erature above mentioned, It becomes to some
extent decomposed, and gives off a substance
known as sulphur trloxlde (S Os), which in
this case arose from the vat with the hot fog
and was Inhaled by the plaintiff, and on ac-
count of the moisture and lower temperature
small particles of sulphuric add were re-
formed and gradually poisoned his system.
It is conceded that such add Is a corrosive
poison, but defendant strenuously denies that
it did or could arise from the vat under
such circumstances. Dr. Albertson, who at-
tended plaintiff from the beginning of hi:;
sickness, expresses the opinion that it was^
a case of sulphuric add poisoning, from in-
haling the fumes at the tannery. Dr. Fish,
a prominent physldan who has given special
attention to chemistry, and who carefully
examined and considered plaintiff's case, ex-
presses the same opinion, and says he can
come to no other conclusion. Dr. Biddle
says it Is the result of poison introduced in-
to plaintiff's system. Plaintiff and three oth-
er witnesses testify that the fumes arising
from the vat smelled like sulphuric add;
and the experts agree that, if such odor was
in the air. It proved the presence of the add.
Mr. Newhart, who did the same work, In
the same room, near the same time, was
taken ill with like symptons and had to
quit the work. He and plaintiff speak of
the irritation and burning sensation in the
nose and throat, and the tendency to hack
or cough, produced by the fumes from the
vat Dr. Fish says the mixing of the sul-
phuric add with the water at such a tem-
perature would produce sulphur trloxlde,
which, c ming In contact with the moisture
in the nose and throat, would reform into
small iwrtides of sulphuric add, and dtes
an eminent chemical authority In support of
bis conclusion. The deliberate opinions of
physicians as to the cause of Illness are com-
petent Flaherty v. Scranton Gas & Water
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101 ATLAXW^IO RBPOBTBB
(Pa.
Co., 30 P^ Saper. Ct 446; Brown v. Chester
TracUon Co., 230 Pa. 498, 70 AtL 713.
[2] There Is no question but what plain-
tiff's condition could result from sulphuric
acid poisoning; and there Is the circum-
stance ttiat he lost his health while working
in the bleachroom without any other appar-
ent cause. On the other hand, strong evi-
dence was offered by the defendant, including
that of eminent exi)erts, to the effect thnt
sulphuric acid had such a strong affinity
for water that sulphur trioxlde could not be
formed under the circumstances and rise
with the fumes, and that the most delicate
tests failed to disclose its presence, or any
trace thereof, and that so mixing the sul-
phuric add with the water would not cause
poisonous fumes to arise. A number of phy-
sicians called by defendant, who had made
a personal examination of plaintiff and of
the circumstances under which be had worlced
at the tannery, expressed the opinion that
Ills siclcness had not resulted from such pois-
oning. Some were Inclined to attribute the
origin of plaintiff's Illness to rheumatism,
especially as that would seem to account for
the heart and eye trouble. However, there
is no claim that he was suffering from rheu-
matism when the case was tried, and no sat-
isfactory evidence that he was ever actually
afflicted with it. Defendant also offered evi-
dence to the effect that the work in this
bleachroom was done in the manner usual
and customary In tanneries throughout the
state and clsewhi-re, and that such a case of
sulphuric acid poisoning as alleged here was
never known or heard of before, and that
fact does not seem to be contested, unless it
might be In the case of Mr. Newhart above
referred to. However, some people seem to
be more susceptible to such poison than oth-
ers; and plaintiff's theory is that this is a
case of chronic poisoning from long-contin-
ued exposure to such fumes. We have not
attempted to refer to the evidence of all of the
wltne.^wes, nor to all the evidence of any wit-
ness, but only enough to show that the con-
trolling questions, as to whether poisonous
fumes arose from the vats and were inhaled
by plaintiff, and, If so, whether his siclmess
was the result thereof, were questions of
fact.
[3, 4] Where seemingly credible evidence
tends directly to establish the fiicts upon
which defendant's liability depends, a ver-
dict based thereon is not the result of guess-
work, although such evidence Is strongly con-
tradicted by that snbmitted for the defoise.
And where, as here, a plaintiff's case Is sup-
ported by positive and circumstantial evi-
dence, and also by expert opinion, it must lie
submitted to the Jury, notwithstanding the
strength of the opposing proofs. In sndi
case the remedy, if the verdict be against
the weight of the evldoice, Is a new trial,
which was not here son^t. The fact that
no case like this has come within the knowl-
edge or information of any witness called,
while strongly persuasive. Is not conduslve
against the plaintiff.
[S] As the case was submitted, the verdict
implies a finding by the Jury, not only that
the fumes were poisonous, but that such fact
was or should have been known by the de-
fendant, which was the common-law rule;
but under section 11 of the act of May 2,
1905 (P. li. 3!S2), It was defendant's duty
to know the character of the fumes and gas-
es arising In its bleachroom, and, if poison-
ous, to provide for their elimination by ex-
haust fans or other sufficient devices. As no
attempt was made to comply with the stat-
ute, and no claim that it could not have been
done, If the fumes were poisonous, and plain-
tiff was Injured thereby, without negligence
<»i his iMUt, he was entitled to recover as
the provisions of the statute are mandatory.
Jones V. American Caramel Co., 225 Pa. &44,
74 AtL 613; Lanahan v. Arasapha Mfg. Co.,
240 Pa. 292, 87 Atl. 286; Kelliher v. Brown
* Co., 242 Pa. 499, 89 Atl. 589. And see
Krutlies v. Bulls Head Coal Co., 249 Pa. 162,
94 Atl. 459, I* R. A. 1915F, 1082.
[0] The fact that plaintiff, under the as-
surance of the superintendent, continued at
his work, did not as matter of law charge
him with contributory negligence. Wagner
V. H. W. Jayne Chemical Co., 147 Pa. 475,
23 AU. 772, 30 Am. St Rep. 745. The court
below concludes an exhaustive review of the
law and the facts by saving:
"Bearing in mind the previous healthy condi-
tion of the plaintiff, the development of his
symptoms during the winter, when not only the
ventilators over the vats but also the windows
were closed, the nature of the bleach, with its
accompaniment of steam or vapor, the affirm-
ative testimony as to the production and escape
of sulphur trioxide, its poisonous character, and
the effect thereof upon the plaintiff, and the
somewhat similar en>ei-ience of Newhart, we
cannot reach the conclusion that we should have
withdrawn the case from the Jury, That there
was weighty contradiction does not alter this
view."
The Judgment la affirmed.
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SOL'TH NORWAL.K TBUST CO. y. ST. JOHN
961
(B2 Coon. IBS)
SOUTH NORWALK TRUST CO. t. ST.
JOHN et aL
(Supreme Conit of Errora of Connecticut Oct.
4. 1»1T.)
1. Wuxs «s>384— Pbobats— Apfbaus— ScoFK
OF BXVIEW.
On apiwal to the superior court from an or-
der and decree of the probate court admitting
a will to probate, the special atatutor; issue as
to whether the will was a valid will was the
sole issue.
2. Wills «=»6e5— Oonditionb Agaiwst Con-
Where children of a testator appealed from
an order admitting the will to probate, thereby
raising the special statutory issue as to whether
the will was valid, they violated a provision of
the will that any beneficiary of the will contest-
ing its probate or operation, or seeking to set it
aside or annul it, should forfeit the interest giv-
en such beneficiary by the will, though they at-
tempted to conceal their purpose to contest the
will by stipulating that the only questions to be
determined were whether a provision in the will
was void onder the law against perpetuities and
whether a gift of income without limitation
passed an absolute estate.
8. Wills «=s>665— Conditions Against Con-
tests—Bbkach.
An action by a legatee to determine the
true construction of a will or of any of its parts
is Dot a breach of the ordinary provision for for-
feiture in case of a contest, as the object of such
an action is not to make void the wUl or any
of Its parts, bnt to ascertain its true legal mean-
ing.
4. Wills «=>651— Conmtionb Against Con-
tests—Validity.
Under a provision in a will for a forfeiture
of the rights of any beneficiary contesting the
wUl, a beneficiary does not forfeit his rights by
bringing a contest for which there is a reason-
able ground, as the law is vitally interested in
having property transmitted by will under the
conditions it prescribes, and none others, and
if those interested are forced to remain silent
the court will be unable to ascertain the truth,
and those who would profit by a will procured
by undue influence or made by one lacking testa-
mentary capacity would thereby be aided in
their wrongful designs.
6. Wills «=>666— Conditions Against Con-
tests—Waivbb OF FoRFErruiOB.
Under a will providing for forfeitnre in case
of a contest, where all the children and bene-
ficiaries united in a contest, they could not
waive the forfeiture on the ground that they
were the only persons who could claim a forfei-
ture, as the condition of forfeiture was not for
the benefit of the other benefidariea, bnt to
carry out the wishes of the testator.
0. Wills <§=s>865(1) — Fobfeitdbes — Intes-
tacy.
In such case, all of the children having for-
feited all of their rights under the will, the
property of the testator was intestate estate.
Case Reserved from Superior Court, Fair-
field County; Howard J. Curtis, Judge.
Suit by the South Norwalk Trust Com-
pany, executor and trustee, against Mary D.
St. John and others, to determine the validi-
ty and construction of the will of Oscar St.
John, deceased. Reserved upon an agreed
finding of facts for the advice of the Supreme
Court of Brrora Superior court advised in
accordance with the opinion.
Oscar St John, late of Norwalk, died Sep-
tember 4, 1912, possessed of both real and
personal estate. He left a will which was
duly probated, in which the plaintiff was
named as executor and trustee. The estate
has been settled. The plaintlfT qualified as
trustee, and there remains in his hands as
such trustee certain real and personal prop-
erty. The testator left a widow, the said
Mary D. St John, who died February 1, 1917,
subsequent to this action, and eight dilldren,
his only heirs at law, who are now Uvtag.
Several of these children have minor chil-
dren, who with said eight children are made
parties. Mrs. St. John's death has been sug-
gested upon the record, and the administra-
tor of her estate has entered an appearance.
The probate court admitted to probate the
will of Mr. St John, and all of the eight
children appealed from this order and decree.
On that appeal no evidence was submitted
to the superior court The parties to the ap-
peal stipulated that the only questions to be
determined were whether or not the whole
or any part of section 7 of the will was void
under the law against perpetuities, and
whether the gift therein of the Income to the
chlldien of the testator, without limitation,
passed an absolute estate in the property ia
question to such children.
The will of Mr. St. John gave to his wife
all the personal property and effects In his
homestead, and provided that she should
have the use and enjoyment of the home-
stead free of rent and all other charges until
it should be sold. It directed the executor
to sell this real estate as soon as such sale
oould be advantageously made. The pro-
ceeds of this sale as designated In paragraph
second, and of certain personal property
specifically designated in paragraphs fourth
and fifth, and all the rest, residue, and re-
mainder of the testator's estate^ was then
given to the plaintiff in trust By the terms
of the trust, defined in the seventh para-
graph, the trustee was directed to pay to his
wife during her life, in full of all dower and
rights she might have in the testator's estate,
certain sums of money in quarterly payments.
This direction was supplemented by the fol-
lowing:
"And after the decease of my said wife, to pay
the net income from my trust estate equally to
my children [names given] annually, and to their
heirs forever, free from the control of the hus-
band of any of my said children; and if any
of my said children should die without leaving
lawful issue then and in such event I direct that
the share of such child so dying in and to the
income from my said trust estate shall be dis-
tributed among and paid to my surviving chil-
dren and their heirs in equal pi^oportions; the
heirs of any child so dying to take the share
which their parent would have been entitled to
receive if living."
Tbid eighth paragraph was as follows :
"To the end that there may be no wasting of
my estate by litigation pertaininc thereto, I
hereby declare, and it is my will, tnat any pro-
^soFoT other cases sea same topic and KBT-NUUBBR la all Kev-Numbarad Digests and Indexes
101A.-61
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962
101 ATLANTIC REPORTER
(ponn.
Tiaion made herein in favor of m; wife and of
any of m; diildren, shaU, as to mj aaid 'wife or
a« to audi children, be nail and void in the event
of any one of them presenting any claim against
my estate, or in any way contesting the probate
or operation of thia my will, or in any way seek-
ing to set aside or annulling this my said will;
and in snch event, the provision for the payment
of income to my said wife, or for the payment
of income to such child, as the case may be, by
this paragraph of my said will made null and
void, shall b« held by my said trustee for the
benefit of the remainmg beneficiaries under this
will, and increase their several shares in like
proportion as to income as is herein provided."
Ju'dgment was rendered In the superior
court, afflrmlng the action of the probate
court and refusing to pass upon the ques-
tions of construction. The questions npon
which advice is desired are the following :
"(a) Whether any legal effect can be given to
any part of the fourth, fifth, and seventh' para-
graphs of said will, and, if ao, what ; and wheth-
er or not all or any part of said sections are or
are not void; and whether any portion of the
purposes contemplated by aaid sections can be
made legally operative?
"(b) Whether the trusts made or which it was
contemplated or attempted to be made or to
make in said sections are valid, legal, and oper-
ative, and capable of being earned out in any 1*-
gal manner, and, if so, how; and whether the
trust estates created thereby, or which it was
attempted to create, are now valid and subsist-
ing estates; and whether the provisions for ac-
cumulation therein contained are legal and
valid provisions, and, if not, whether the other
provisions of said sections are thereby rendered
inoperative and void?
"(c) Whether the provisions of said sections
SQwend the power of alienation for more than
two lives, either actually or by possibility ; and
whether, if said power of alienation be suspend-
ed for more than two lives, the trusts which the
testator sought to create are thereby rendered
inoperative and void?
"(d) Whether the trusts, which it was sought
to create by said sections, are or are not void
for uncertainty, indefiniteness, and a failure of
the object of Uie testator's bounty?
"(e) Whether or not the defendants, or any of
them, and, if so, who, have violated the eighth
paragraph of said will by contesting the probate
or operation of said will, or have sought to set
aside or annul said will, and, if so, whether
or not the provisions in said will in favor of
such defendants are null and void; and whether
or not such defendants have forfeited their right,
title, interest, and claim in and to said estate
by violating said paragraph 8, and, if so, to
whom the estate of said deceased, and the in-
come therefrom, should be paid?"
Joseph R. Taylor, of South Norwalk, for
plaintiff. John R. Ldght and Freeman Light,
both of South Norwalk, for defendant Bertha
E. St. John and another. Thomas O. Cough-
lln, of Bridgeport, for defendant Clifford M.
St John and others. William F. Tammany,
of South NorwallE, for defendant Oscar B.
St John.
WHEELER, J. (after stating the fbcts as
above). One of the questions submitted for
our advice Is whether or not the children of
the testator have forfeited their claim to the
estate by having violated paragraph eighth,
and, if so, to whom the estate and the in-
come should be paid. If the eighth para-
graph be valid and literally interpreted, and
the children have violated It, they have for-
feited th^r claim to any part of this estate.
The consideration of this question should pre-
cede all other questions, for, if the chlfdren
have forfeited their claim to this estate, so
far as they are concerned, consideration of
other questions under the will is academic.
[1] The an>eal from the court of probate
took up to the superior court the specdal stat-
utory Issue, whether the will was a valid
will. That was the sole issue of the ai^)eal.
St Leger's Appeal, 34 Conn. 434, 447, 91 Am.
Dec. 735. The parties subsequently, In a
very apparent attempt to avoid the conse-
quences of having contested the wiU, stipu-
lated that the only question to be determined
upon the appeal was as to the ccmstructlon of
paragraph 7. Counsel for the trust company
in his brief perslsta in assuming the existence
of this wholly artificial irasitlon, but the
counsel fbr the diildren franldy admit the
real situation In thetr brief when they say :
"The widow and all of the children joined in
an appeal from the order and decree of the
court of probate for the district of Norwalk ad-
mitting the will to probate, on the ground that
the testator was of unsound mind when the will
was made and executed, but they afterward
came to feel such a dread of the consequences
which would follow from legally establishing th*
mental Incapacity of the testator that they in-
structed counsel not to pursue tiiat feature of
the case, and, instead, to have the court detet^
mine the legality of the trust created by the
will."
Two things are to be noted about thia state-
ment: (1) It Is an Inaccuracy to state that
the widow joined In this appeaL (2) Gounsd
seek to bring the case 'wlthln one of the ex-
ceptions which some Jurisdictions sustain, to
the general rule supporting forfeiture clauses
of the character of that In this will, by as-
suming that there exlste probaballs cause
Utigandl.
[2] The appeal was an attack upon the va-
lidity of the will, and the subseqn«it effort
of the children to conceal this purpose must
fall. The children by their appeal engaged in
an act which the testator attempted to pen-
alize by prescribing a forfeiture of the In-
terest given them by his wllL Substantially-
all authorities agree that a testator may In
some cases Impose upon a l^atee a condition
forfeiting his legacy If he contest the validity
of the will. Counsel for the dilldren concede
this, for they say In their brief:
"While the validity of such condition is gener-
ally recognised, the exceptions to its operation
have intrenchea upon ita effectiveness."
In England the action to secure a legacy
could be had In the ecclesiastical courts,
where the rule of the civil law prevailed, in
which a fiction had been adopted that, unless
there was a gift over of such a legacy, no
forfeiture would be decreed. The English
court of equity accepted this rule, and en-
forced it as to legacies of personal property,
but not as to devises of land. It was eariy
pointed out by American text-writers and Jn-
rista that there was no substantial ground
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Conn.)
SOUTH NOR WALK TRUST CO. y. ST. JOHK
963
for any dlstlnctloQ In this respect between
real and personal estate, and that the ex-
ception was purely an artificial one, and nn-
snpported by any adequate reason. Some
few ot the American courts have adopted the
English view, although In some Instances
recognising that the exception is not based
on any satisfactory reason. Fifield ▼. Van
Wyck, 94 Va. 663, 27 S. B. 446. 64 Am. St
Rep. 745; Friend's Estate, 209 Pa. 442, 446,
58 Atl. 8S3, 68 L. R. A. 447 ; Matter of Ar-
rowsmlth, 162 App. Dlv. 623, 628, 147 N. T.
Supp. 1016. The great majority of the Amer-
ican courts have r^udlated this exception.
Bradford y. Bradford, 10 Ohio St 546» 547,
2 Am. Rep. 419; Moran y. M'oran, 144 Iowa,
461, 462, 123 N. W. 202, 80 L. R. A. (N. S.)
808; Thompson y. Gaut, 14 Lea (Tenn.) 810,
315; Estate of Bite, 165 Cal. 436, 445, 101
Pac. 443, 21 L. R. A. (N. S.) 053, 17 Ann. Oaa.
093 ; Donegan y. Wade, 70 Ala. 501 ; Holt v.
Holt 42 N. J. Bq. 388, 7 AU. 856, 50 Am. Rep.
43; Massie v. Massie, 54 Tex. Cly. App. 617,
118 S. W. 219; Smithsonian Inst v. Meech,
169 U. S. 808, 413, 18 Sup. Ct 306, 42 L. Ed.
798.
Most of these authorities support a condi-
tion of forfeiture without recognizing any ex-
ception. Their underlying principle is that
since the testator may attach any condition
to bis gift whidi is not violative of law or
public policy, the legatee must either take
the gift with its conditions, or reject It. The
dispositicm of these authorities has been to
sustain forfeiture clauses as a method of pre-
venting will contests which so often breed
famUy antagonisms, and expose family se-
crets better left untold, and result In a waste
of estates through expensive and long drawn
out UtigaUon.
The children suggest the possible approval
of this exception, based on the failure to
provide for a gift over, but the trustee omits
reference to it The trustee relies upon the
appeal having been one to secure the con-
struction of the will, rather than one to con-
test its validity. And both trustee and dill-
dren unite in urging upon us as an exception
to the rule of forfeiture the exception that
if reas(mable cause exist for the contest a
forfeiture will not be decreed. And they far-
ther urge that a forfeiture has been waived
by them through their acquiescence in the ex-
ecution of the will.
[3] One of the claimed exceptions to the
general rule of forfeiture Is not an excep-
tion. If the action of a legatee is merely one
to detemdne the true construction of the
will, or of any of Its parts, the action could
not be held to breach the ordinary forfeiture
clause, for the object of the action is not
to make void the will, or any of its parts, but
to ascertain Its true legal meaning. Black
V. Herring, 79 Md. 152, 28 AtL 1063; Schoul-
er on Wills (5th Ed.) { 606. The appeal taken
from the decree of the probate court did not
as we have before pointed out, raise the ques-
tion of the construction of this wiU.
[4] The exception that a contest for whidi
there is a reasonable groun'd wUl not work
a forfeiture stands upon better ground. It
Is quite likely true that the authoritiee to
greater number refuse to accept this excep-
tion, but we think it has behind it the better
reason. It rests upon a sound public policy.
The law prescribes who may make a will and
how it shall be made; that It must be exe-
cuted In a named mode, by a person having
testamentary capacity and acting freely, and
not under undue Influence. The law Is vital-
ly Interested In having property transmitted
by will under these, con'dltloas, and none
others.
Courts cannot know whether a wlU, good
on its face, was made in conformity to stat-
utory requirements, whether the testator was
of sound mind, and whether the will was the
product of undue Influence, unless these mat-
ters are presented In court And those only
who have an Interest in the will will have the
disposition to lay the facts before the court.
If they are forced to remain silent upon
penalty of forfeiture of a legacy or devise
given them by the will, the court will be pre-
vented by the command of the testator from
ascertaining the truth, and the 'devolution of
pn^ierty will be had In a manner against
both statutory and common law. Courts ex-
ist to ascertain the truth and to apply It to a
given situation, and a right of devolution
which enables a testator to shut the door of
truth and prevent the observance of the law
is a mistaken public policy. If, on contest
the will should have been held Invalid, the
Uteral interpretation of the forfeiture pro-
vision has suppressed the truth and Impeded
the true course of Justice. If the will should
be held valid, no harm has been done through
the contest except the delay and the attend-
ant expense.
Where the contest has not been made in
good faith, and upon probable cause and rea-
sonable Justification, the forfeiture should be
given full operative effect Where the con-
trary appears, the legatee ought not to for-
feit his legacy. He has been engaged in help-
ing the court to ascertain whether the in-
strument purporting to be the will of the tes-
tator Is such. The contest will not defeat
the valid will, but It may, as it ought, the in-
valid will. The effect of broadly interpret-
ing a forfeiture clause as barring all contests
on penalty of forfeiture, whether made on
probable cause or not will furnish those who
would profit by a will procured by undue in-
fluence, or made by one lacking testamentary
cajMicity, with a helpful cover for their
wrongful designs.
The practical dlfflcultles following this ex-
ception are more apparent than real. Ccm-
tests will be made only in causes where they
are Justified. Doubtful cases will not Invite
a forfeiture. There will be no more burden
put upon the court in finding the fact of
probable cause than in finding similar facts
in other classes of cases. Schouler on Wills
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964
101 ATIiANTIO RBPORTKR
(Ud.
(6tb Ed.) S 605, states hla view npon this sub-
ject thus:
"To exclude all contest of the probate on rea-
sonable ground that the testator was Insane or
unduly influenced when he made it is to intrench
fraud and coercion more securely; and public
policy should not concede that a le^tee, no mat-
ter what ground of litigation existed, must for-
feit his legacy if the will is finally admitted."
Estate of Hite, 155 CaL 436, 101 Pac. 443, 21 L.
K. A. (N. S.) 953, 17 Ann. Cas. 903; Friend's
Estate, 209 Pa. 444. 58 AU. 85.3, 68 L. R. A.
447; Jackson t. Westerfield, 61 How. Prac.
(N. Y.) 399: In re Kathan's Will. 141 N. Y.
Supp. 705, 710; Smithsonian Inst v. Meech,
109 U. S. 413, 18 Sup. Ct. 396, 42 L. Ed. 793;
Cooke V. Turner, 14 Simons, 493; Morris v.
Burroughs, 1 Atk. 401.
The facts of record are silent as to wheth-
er this contest was begun In good faith, and
whether there was probable cause and rea-
sonable justlflcation. The stipulated facts
do not bring the case within this exception.
[6] These beneficiaries say that they are
the only persons who could claim a forfei-
ture, and as they are all in court, request-
ing a division of the property In puiBuance
of the provisions of the will, they must be
held to have waived the right to claim a for-
feiture, and to have acquiesced In the execu-
tion of the will as a valid wilL The court
has before It a will providing for a forfei-
ture, and facts showing the existence of the
forfeiture. Under those conditions, the court
could not permit the testator's expressed will
to be rendered nugatory by the consent of
bis beneficiaries. Its duty is to see that
the testator's intention Is consummated. The
clause of forfeiture Is one beneficiaries can-
not waive. They may waive a known right
of their own. They cannot waive a right
which was exclusively the testator's, and one
which he made a condition of his bounty and
a guide to the devolution of his estate.
Let us suppose that only one of six bene-
ficiaries had forfeited his right to a bequest
Could all the other beneficiaries waive the
forijeiture? Could an executor or a trustee
refuse to present the facts of waiver before
the court? And Is not his duty to insist up-
on the forfeiture, and thus to carry out the
will of the testator? We find no authority
which supports the claim of waiver of this
forfeiture, except Williams ▼. Williams, 15
Lea (Tenn.) 438, 454. Authority upon the
point Is limited, but against this view.
Agreements by beneficiaries cannot ralldate
a void trust Schouler on Wills (5th Ed.) {
1072; Dresser v. Travis, 39 Misc. Sep. 358,
79 N. T. Supp. 929.
It is a well-recognized rule of law that
contracts between devisees and legatees are
not mforceable, when made with the appai^
ent purpose of thwarting the testator's de-
sires. Merder v. Mercier, 60 Ga. 546, 15 Am.
Rep. 684 ; Cuthbert v. Chawnet et al., 136 N.
I. 326, 332. 32 N. R 1088, 18 L. R. A. 745.
This condition of forfeiture Is not made for
the benefit of the other beneficiaries, but to
carry out the wishes of tbe testator. It is
totally apart from a condition subsequent for
the benefit of a third party, as where a wlU
bequeathed land to a testator's heirs on con-
dition that they pay for certain improve-
ments to the heirs of S. The latter could
waive the payment, for It was for their bene-
fit Such a waiver does not defeat the testa-
tor's will. Hill V. GlanelU, 221 IlL 286, 77
N. E. 458, 112 Am. St Rep. 182.
[I] The superior court Is advised that said
eight children, by contesting the probate of
the will of Oscar St John, have forfeited all
rights under his will, and that the property
in plaintifTs hands is Intestate estate. No
costs In this court will be taxed In favor of
any of the parties. The other Judges con-
curred,
<m Md. 204)
EVANS MARBLE 00. OF BALTIMORi
GIT7 V. ABRAMS et aL (No. 19.)
(Court of Appeals of Maryland. June 28, 1917.
Motion for Reargument Overruled
Oct 8, 19170
1. JTn>iciAL Saucs «=>39 — Iradequaot or
PUCB— EllTECT.
Sales by trustees made under decrees of
equity will not be invalidated on account of
inadeouacy of price, unless it is so gross and
inordinate as to indicate misconduct or fraud
on the part of the trustee, or some mistake or
unfairness {or wliich the purchaser is respon-
Bible.
2. JuDioiAi, 8aij:8 €=>31(2)— InrENDioenTS.
Every intendment will be made to support a
judicial sale, but ratification will be denied,
where injustice will result, by reason of the
carelessness or omission of an officer, to a person
not in default
3. Judicial Salxs «=>35 — Vacation —
Grounds.
Judicial sales will not be set aside for
causes which the parties in interest might with
reasonable degree of diligence have obviated.
4. MoBTOAOBs «=>526(2) — Sales— INADKQDA-'
CY of Price.
On objection to the ratification of a for^
dosure sale, evidence held to show that the in-
adequacy of price was not so gross as to indi-
cate fraud, etc., on the part of the trustee.
5. MoBTOAOKS «='526(2)— Sales— Advebtisx-
MENT.
Where property to be sold on foreclosure was
advertised as valuable leaseholds, and the num-
bers of the nremises were given, and the im-
provements described so that a reader could as-
certain that the two leaseholds were to be sold
together and where they were located, the ad>
Tertisement, which gave the descriptions of the
leaseholds and the rents to which they were
subject was not so insufficient as to warrant
vacation of the trustee's report of sale, for
prospective purchasers could ascertain what
property was to be disposed of, and defects in
tiie advertisement did not cause the inadequacy
of price, which was not so great as to show
fraud, etc.
Appeal from Circuit Court No. 2 of Balti-
more City; Carroll T. Bond, Judge.
Suit by the Evans Marble Company of
Baltimore City against George W. Abrama
and another. From a decree sustaining ex-
ceptions to ratification of trustee's report of
As»For other cases see same topic and KBT-NUMBBR In all Key-Numbered Dlgeata and Induu
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Md.)
EVANS MARBLE CO. t. ABRAMS
965
sale and setting aside tbe sale, complainant
appeals. Decree reversed, and cause re-
manded.
Argued before BOYD, O. J., and BRIS-
COE. BURKB, THOMAS, PATTISON,
STOCKBRIDGE, and CONSTABLE, JJ.
Wm. Edgar Byrd and John L. 6. Lee, both
of Baltimore, for appellant. Read A. Mc-
Caffrey, of Baltimore, for appellees.
CONSTABLE, J. This appeal is from a
decree sustaining exceptions filed to the rati-
fication of a trustee's report of sale and
setting aside of said sal& George W. Ab-
rams and Alexander J. Abrams, Jr., gave to
the appellant in 1894 a mortgage on lease-
hold properties in the dty of Baltimore to se-
cure the payment of $988.37. Default having
been made In the payment of the mortgage
debt, the appellant filed his petition to fore-
close said mortgage. The usual decree to sell
the property was passed, and a trustee ap-
pointed for that purpose. The appellant also
filed In said proceedings a claim under a
second mortgage from the same parties to it.
The trustee offered the property described in
the mortgage at public sale on the premises,
and sold the same, in Its entirety, to Pat-
rick J. Cushen for the sum of $1^26. The
surviving mortgagor filed exceptions to the
ratification of the sale upon several grounds,
all of which, except two, have been abandon-
ed and need not be adverted to. The two
reasons relied upon by the appellee for an
afiirmance of the decree passed are, first,
that the property was sold for a greatly In-
adequate price; second, because of the inju-
dicious, improper, and insuflSdent advertising
of said sale.
[1-3] The law of this state is firmly set-
tled. In a long line of decisions, that, in sales
made by trustees under decrees in equity,
mere Inadequacy of price, standing b^ itself,
Is not sufficient to invalidate a sale, unless
It be so gross and Inordinate as to indicate
want of reasonable judgment and discretion,
or misconduct or fraud In the trustees, or
some mistake or unfairness for which the pur-
chaser is responsible. Every intendment will
be made to support such sales, but where it
is seen an injustice will be done, through
the ratification of a sale, a person not in
default, by reason of the carelessness or omis-
sion of its own officer, the court will inter-
fere to prevent It. Sales will not be set
aside for causes that the parties In interest
might, with a reasonable degree of diligence,
bare obviated. Johnson v. Dorsey, 7 Gill,
268 : Eauflman v. Walker, 9 Md. 229 : Bank
▼. Lanahan, 4S Md. 397 ; Loeber v. Eckes, 65
Md. 1: Stewart v. Devries, 81 Md. 528, 32
AtL 285 : Thomas v. Fewster, 96 Md. 446, 62
Atl. 750.
[4] The mortgage covered two contiguous
leasehold tracts of ground containing, approx-
imately, 6,500 square feet and 7,200 square
feet respectively; and, from the testimony
taken, it appears that witnesses for each side
admitted that the tracts would sell to bet-
ter advantage as a whole than if offered sepa-
rately, because of the extremely Irregular
shape of one of the tracts, so we are not
concerned with the question as to the manner
of offering the property for sale. The wit-
nesses produced by both sides were mainly
of the real estate expert class, and, from a
close reading of their testimony, we are im-
able to hold that the price realized was a
grossly inadequate one, though to some ex-
tent it was inadequate. The prices placed
by them upon both tracts as a whole ranged
from $1,400 to $6,000. The witness Wright
was the one who put the highest valuation on
the property and used this language in do-
ing so:
"I would think $4,500 or $5 000 would be a
right moderate estimate of tlieae two lease-
hold properties. I think they would be sold
or offered for sale at a great deal less price than
that."
It was also in evidence that the properties
were assessed for the year 1917, in fee, for
$8,700, but that on the previous assessment,
made in 1913, the assessment in fee was
$4,558.
[6] Having determined that, in our opin-
ion, there was no gross, but a mere, inade-
quacy of price, we will now consider what
effect the form of the advertisement played
In the inadequacy. Johnson y. Dorsey, su-
pra. The main advertisement was inserted
in the Baltimore Daily Record and appeared
for tbe time limited by the decree. Shorter
advertisements were Inserted In the Balti-
more Sun and the Baltimore American.
These two latter advertisements gave notice
of a trustee's sale of the valuable leasehold
property. No. 431 East Oliver street, to be
held on the premises, on Monday, August. 14,
1916, at 4 o'clock p. m. ; then followed a de-
scription of the improvements on the proper-
ty, and referred prospective purchasers to the
Dally Record for the terms and full descrip-
tion. The advertisement in the Daily Rec-
ord was under tbe heading of "Trustee's
Sale of Valuable Licasebold Property, No. 431.
East Oliver St.," and recited that the trustee
would offer for sale, by public auction, on a
certain date, "all that lot of ground and
premises situate in Baltimore City and de-
scribed as follows." Then followed a full
description of the two tracts by metes and
bounds, courses and distances, and showed
that the tracts were subject to ground rents
of $60 and $135, respectively. This was fol-
lowed by a descrlptioa of tbe improvements
and the terms of sale. The description by
courses and distances, metes and bounds,
were the same descriptions as contained in
the mortgage.
That this was a reasonable and fair no-
tice of the sale and description of the proper-
ty to be offered for sale we have not a doubt.
It in most particular terms was calculated to
let the public know exactly what property
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966
101 ATLANTIC REPORTEB
(Ue.
was brought Into tbe market It expressly
located tbe property at 431 East Oliver street,
and tbe most casual reader could tell that
the lots formed one wbole tract, and togeth-
er had a large frontage on both Oliver and
Belvedere streets, and formed a comer lot in
tbe Junction of those two streets. Tbe ap-
pellee has dted several cases to us where
sales were set aside for defects In the ad-
vertisement; but in all those cases the dis-
similarity of the notices there held bad, to
the notice in the present case, is plainly ap-
parent. For instance, special reliance is
placed by him In the case of Kauffman v,
Walker, snpra. In that case there was no
number by which the property could have
been Identifled, and one of the witnesses, who
bad owned the property for ten years, said
that he would not have known from the no-
tice what property was to be sold, unless he
had known the number of feet the property
was from another street. So in all the cas-
es dted some similar defect could l>e pointed
out. The mortgagor saw the advertisement
and attended the sale, but made no objection,
before the sale or at the sale, of the insuffi-
ciency of the advertisement. He testiQed
that the only effort he made to protect the
property was to borrow on a mortgage from
a national bank, but was told by Its officers
that they could not lend money on mortgages,
and he thereafter made no further effort to
pay the mortgage or save the property.
We are of the opinion that tbe lower court
committed error in sustaining exceptions and
setting aside the sale, and will therefore re-
verse the decree and remand the cause, in
order that a decree ratifying the sale may be
entered.
Decree reversed, with costs, and cause re-
manded.
O'CONNOR T. RHODE ISLAND CO.
(No. 6036.)
(Supreme Court of Rhode Island. Oct 8, 1917.)
Exceptions from Superior Ckturt Providence
and Bristol Counties; Charles F. Steams,
Judge.
Action by James F. O'Connor against the
Rhode Island Company. Verdict for plaintiff,
and defendant brings exceptions to the refus-
al of tbe trial judge to grant a new trial. Ex-
ceptions overruled, and case remitted, with di-
rection to enter judgment for plaintiff upon
the verdict
E. Raymond Walsh, of Providence, for plain-
tiff. Clifford Whipple and Frederick W. O'CJon-
nell, both of Providence, for defendant
PER CURIAM. The defendant's exceptions
in this case raise only tbe question whether the
trial judge erred in his refusal to grant a new
trial, after verdict for the plaintiff, on the
grounds urged by tiie defendant that the verdict
was against the weight of tbe evidence, and in
any event that the amount of damages awarded
by the jury was excessive.
The evidence upon tbe question of the defend-
ant's negligence and of the plaintiCTs contrib-
utory negligence was sharply conflicting. There
was ample evidence from which the jury could
find in favor of the plaintiff as they have done
on both these questions. We find no reason for
saying that the damages are excessive. Upon
full consideration of all the evidence in the case,
a malority of this court is of oninion that the
trial judge committed no error in his refusal to
grant a new trial.
The defendant's exceptions are overroied, and
the case is remitted to the superior court sitting
in Providence county, with direction to enter
judgment for the plaintiff npon tlie verdict
(itt H& S»)
VIBLE et aL T. CDRTia
(Supreme Judicial Conrt of Maine. Oct 3,
1917.)
1. Appkai. and Ebrob «=»1008(2>— FiiiDiiraa
01" C0TT«T— C0NCI.T78IVBNES8.
In jury-waived cases, so far as the conclu-
sions reached rest upon facts, the findings of the
court are conclusive unless the only inference to
be drawn from the evidence is a contrary one.
2. Appbai. and Ebbos «=3849(1)— ExcKPnona
— QtJKSTioNs OF Law. .
In a jury-waived case, exceptions ape limit-
ed to rulings upon questions of law, and the
only question of law is whether there was any
evidence to snpport the finding.
3. Appeai. and Error «=a994(3). 1008(2) —
Credibiutt of Witness — Questions fob
Court.
In jury-waived cases, the credibility of wit-
nesses and the weight of the evidence is wholly
for the justice presiding.
4. Trusts «=>86, 107— Bhrdeh ar Proof.
The burden of establishing resulting and
constructive trusts is upon the party asserting
their existence, and this burden is sustained
only by full, clear, and convincing prool
6. Trusts «=»44(1)— Express Tbubt— Suwi-
CIENCT OF Evidence.
In a partition suit, where petitioners claim-
ed title from defendant's deceased wife, and he
claimed that the wife held the premises in trust
for him, a letter written by deceased to her
daughter, when taken in connection with ail tbe
evidence, held not a written declaration of an
express trust.
6. Trusts <S=21(2) — Letter Estabushino
ExpKEss Trust.
A letter subscribed by the trustee, whether
addressed to or deposited with the cestui que
trust or whether intended to be evidence of the
trust, or whether made at the time the legal ti-
tle was conveyed, or later, will be sufficient to
establish the trust when the subject, object, and
nature of the trust, and the parties and their
relations to it and each other appear with rea-
sonable certainty.
7. Trusts «=3373— Questions of Fact.
In a jury-waived case, whether a letter when
supplemented by oral testimony established an
express trust was a question of fact for the jus-
tice presiding.
Exceptions from Supreme Judicial Court
Penobscot County, at Law.
PeUtion tor partition by Gbaries O. Vide
and another against C. W. Curtis. From
findings and rulingg in favor of petitioners,
defendant brings exceptions. ESxc^ticoa
overruled.
Argued before BIRD, HALBfT, HANSON,
and PHILBROOK, JJ.
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VIBLB y. CURTIS
967
Morse & Cook, of Bangor, and F. D. Deartb,
of Dexter, for plaintiffs. Carl O. Jones, of
Waterrllle, for defendant
BIRD, J. This Is a petition for partition
In whlcb the petitioners allege themselves to
be the owners In fee of one-third each of the
land sought to be divided and the respondent
to be the owner of the remaining third.
The respondent, in answer to the petition,
denied that the petitioners were each seised
In fee of one-third of the premises and claim-
ed under a double brief statement, by way of
equitable defense, "an undefeaslble title to
the whole premises," alleging that his wife,
from whom the petitioners claimed to have
title by descoit, held the premises in trust
for him should she predecease him and in
trust for his children by a former marriage
should he predecease her. The first brief
statement sets up a constructive trust, the
second an express trust.
The cause was heard by the Justice presid-
ing without a Jury and, after hearing the evi-
dence, he found and ruled :
(1) That each of the petitioners is the own-
er in fee of one-third in common and undi-
vided of the premises described in the peti-
tion and, as claimed tberdn, that the re-
spondent, Charles W. Curtis, is the owner of
the other one-third undivided of said prem-
ises; and
(2) That the petitioners are entitled to
judgment for partition of the premises de-
scribed in their iietitlon and as therein pray-
ed for.
To these findings and rulings the defend-
ant excepted. The petition, pleadings, and
evidence are part of the bill of exceptions.
[1] In Jury-waived cases, so far as the con-
clusion reached rests upon facts, the finding
of the court is conclusive, unless the only In-
ference to be drawn from the evidence is a
contrary one. Maine Water Co. v. Steam
Towage Co., 99 Me. 473, 475, 69 Atl. 953. It
has been held that the exception here noted
presents a question of law. Morey ▼. MlUl-
ken, 86 Me. 464, 481, 30 AtL 102. If so, we
must hold, as such, in the present case that
the only Inference to be drawn from the evi-
dence is not contrary to that found by the
court
[2-4] Exceptions in such cases, it is said
in Prescott v. Winthrop, 101 Me. 236, 239, 63
Atl. 923, are limited to rulings upon questions
of law, and the only question of law is wheth-
er there was any evidence to support the find-
ing. If there was, the decision of the court
must stand even, if there was a large pre-
ponderance of the evidence the other way.
We tliink there was evidence to support the
finding. The credibility of the witnesses and
the weight of the evidence was wholly for the
Justice presiding. The burden of proof of
establishing resulting and constructive trusts
is upon the party asserting their existence,
and this burden is sustained only by full,
clear, and convincing proof. Prevost v. Gratz,
6 Wheat. 481, 494, 5 L. Ed. 311; Culver v.
Guyer, 129 Ala. 602, 29 South. 779; Whitmore
V. Learned, 70 Me. 276, 285 ; FaU v. Fall, 107
Me. 539, 81 AO. 865 ; Coombs et al.. Appel-
lants, 112 Me. 445, 446, 92 AtL 615. We hes-
itate to conclude that the court erred in find-
ing no satisfactory proof of a constructive
trust or trust ex maleflcio.
[6] The express trust alleged is claimed to
be proved by a letter written by the wife of
defendant to her daughter. It is urged that
the letter "taken in connection with all the
evidence is a written declaration of an ex-
pressed trust" The letter Is as follows:
"Miy Dear Ada: Ton know that some yean
ago Mr. Curtis gave me a deed of our Dexter to
me in accordance with a promise made before we
were married, should he outlive me, he will nat-
urally desire to have you and Charlie sign off
your claims to the property as my heirs. This
I should wish you do on proper considerations.
Mr. Curtis owes me two thousand dollars of
which he has had the use nearly ever since we
were married. This I wish him to pay to you
and Charlie each one thousand, keep this paper
in case you should ever need it as a proof of
the desire of your affectionate mother,
"Annie Viele Curtis.
"Dexter, Maine, Jan. 22, 1000."
[I] It is undoubtedly law that a letter sub-
scribed by the trustee, whether addressed to,
or deposited with, the cestui que trust or not,
or whether intended when made to be evi-
dence of the trust or not, or whether made at
the time the legal title was conveyed or later,
will be sufficient to establish the trust when
the subject, object, and nature of the trust,
and the parties and their relations to it and
each other, appear with reasonable certainty.
Bates V. Hurd, 65 Me. 180, 181 ; McClellan v.
McCleUan, 65 Me. 500, 506. But the letter
relied upon by plaintiff measures up to re-
quirements no better than that considered in
Lane v. Lane, 80 Me. 670, 677, 16 AU. 323,
which was held, as between husband and
wife, to be insufflcient
[7] Assume, however, what we by no
means hold, that the letter was admissible as
indirect evidence of a trust, and that tlie
statements of the letter may be supplement-
ed by oral testimony, the question Is one for
a Jury, and in this case for the presiding Jus-
tice, and, as already seen, to his findings of
fact, no question of law arising, no excep-
tions lie. State ▼. Patterson, 68 Me. 473,
475, 476; PettengUl r. Shoenbar, 84 Me. 104,
106, 24 Aa 684; FuUer v. Smith, 107 Me.
161, 168, 77 Atl. 706.
The exceptions must be overruled.
So ordered.
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968
101 ATIiANTIC EEPORTEB
(Me.
016 Hew ta)
CABVILLB ▼. I*ANB.
(SnpreoM Judicial Court of Maine. Oct 8>
1917.)
1. Fbaud «s>24— Civil Reiocdies.
Where plaintiff accepted defendant's note on
I>ecember 5th for goods theretofore furnished,
he could not recover on the ground that defend-
ant falsely represented facts on December 14th.
2. Bankbuptct «=»426(1)—Dibchabqb— "Ob-
taining Pbopebtt" by Fbaud.
Defendant's act in getting plaintiff to ac-
cept a note, for ^ooda theretofore furnished, by
false representations, is not an obtaining of
property within the meaning of Bankruptcy Act
July 1, 1608, c. &41, 8 17, 30 Stat. 550 (0. S.
Comp. St. 1916, t 9601), nor Rev. St. c. 128, |
1, defining the crime of obtaining property by
false pretenses, so that the dischar|;e of defend-
ant in bankruptcy discharges the liability.
Report from Supreme Judicial Court, An-
droscoggin County, at Law.
Action by Herbert J. Carvllle against P.
E. lione. Case reported. Judgment for de-
fendant.
Argued before CORXISH, O. J., and KING,
BIRD, HANSON, and MADIGAN, JJ.
McGllllcuddy & Morey, of Lewlston, for
plalntier. Ralph W. Crockett, of Lewlston,
for defendant.
BIRD, J. This action on the case is
brought by plaintiff to recover damages for
the deceit or misrepresentations of the de-
fendant, whereby It is claimed that defend-
ant fraudulently obtained property of plain-
tiff. The case Is before us upon report.
It appears from the evidence that the
latter had for many years supplied the de-
fendant with fertilizers, for which, several
months after delivery to him, in each year,
defendant gave bis note to the plaintiff. In
the spring of 1913 the defendant purchased
fertilizer of plaintiff to the amount of be-
tween $70 and $80, and on the 21st day of
December, 1913, gave to the plaintiff his note
to order of the First National Bank of Lew-
lston for $80 on six months, with interest
after due till paid. This note was indorsed
by plaintiff, who discounted it at the payee
bank, receiving the proceeds. On the 21 st
day of June, 1914, It was renewed, indorsed,
and discounted as before. Again, on Decem-
ber 21, 1014, it was renewed, Indorsed, and
discounted as before. In the, spring of 1914
plaintiff sold defendant fertilizer to the
amount of nearly $190. The balance of the
purchase price of this sale In the fall of 1914
amounted, with Interest, less credits, to $185.-
65, for which sum defendant gave his note
dated December 5, 1914, In other respects of
like tenor as the notes already described.
This note was discounted by plaintiff at the
same bank on the 7th day of December, 1914,
and he received the avails. On the 2Sth day
of May, 1915, before either of the notes given
In December, 1914, became due, the defend-
ant filed his petition In bankruptcy, and was
granted a discharge on the 3d day of Sep-
tember, 1915, which Is pleaded by way of
brief statement in bar of the action.
The plaintiff alleges that on the 14th day
of December, 1914, the defendant made to
him certain representations as to the prop-
erty owned by him, which were false and un-
true, relying upon which he took and accept-
ed the notes of December 5 and December 21,
1914, and that both notes are liabilities with-
in the debts excepted from the operation of
the discharge in bankruptcy, Invoking the
exception of the Bankruptcy Act, relating
to discharges, of debts such as "(?) are lia-
bilities fur obtaining property by false pre-
tenses or false representations. • • • "
Act Cong. July 1, 1S98. c. 541, | 17. 30 Stat.
550, as amended by Act Cong. Feb. 5, 1903,
c. 487, i 5, 32 Stat 708 (U. S. Comp. St 1916.
19601).
[1] We are unable to perceive how the ac-
ceptance by plaintiff of the note of December
5, 1914, which was discounted two days later,
could have been induced by or made in reli-
ance upon the statement as to assets made
December 14, 1914. As to this note or in-
debtedness, the plaintiff cannot recover. State
V. Church, 43 Conn. 471, 473. See In re Mo-
Lellan (D. C.) 204 Fed. 482; In re Main (D.
C.) 205 Fed. 421, 424.
The note of December 21, 1914, for $80,
was received by plaintiff and by him dia-
counted after the statement of December 14,
1914. was communicated to him. As observ-
ed, this note was given and discounted bi
renewal of a former note of a like amount
The property for which the original note was
given was obtained in the spring of 1913.
The new note and discount afforded him an
extension of credit
Did the making of the new note of Decem-
ber 21, 1914, by the defendant, and its ac-
ceptance by the plaintiff, constitute a liability
for obtaining property by false pretenses or
false representations? The word "property"
Is not defined by the Bankruptcy Act of 1898.
In Gleoson v. Thaw, 185 Fed. 345, 347. 107 a
C. A. 463, 34 L. R. A. (N. S.) 894, a petition
for review of an order staying an action by
which the plaintiff sought to recover for pro-
fessional services alleged to have been ren-
dered in reliance vpoa false representations
made by defendant, the court In Its opinion
says:
"While enlarging somewhat the scope of snch
exceptions, this amendment [substituting for
'judgments in actions for fraud or' the words
'liabilities for*] imposed upon the court of
bankruptcy the duty of determining whether
the debt sought to be excepted was or wt« not
such a liability. • • •
"That the word 'property' is nomen generalia-
simum, as asserted by the petitioner, is not to be
denied; but no more is it to be denied that its
meaning may be restricted, not only by the ap-
plication of the maxim, 'nosdtur a sociis,' but
by the purpose for which it is used, or by Its
evident use as a word of art, or by its nse in a
technical sense. The very generality of tiie
word requires restriction, according to the or- ,
cumstances in which it i» used. In some jndc-
e=sFor other casei aee wm* topic and KBI -NUMBER In all K«r-Numb«rad Digests and Iiid«z«
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Pa.)
HIOKS y. ALTOONA A L. V. ELECTRIC RT. CO.
ments, aa well as in some obiter dicta, the word
•property' has been made to cover, by a sort of
rhetorical flourish, eyerythingr tangible or in-
tangible of which value ma; be predicat-
ed. • • •
"The language used in the seventeenth section
of the Banlcruptcj Act, to which we have al-
ready referred, by wliich liabilities for obtaining
property by false pretenses are exempted from
the provable debts discharged in bankruptcy, are
the usual and most eenerEU words for describing
a specific crime, niieir use in this connection
dates back as far as the statute of 80 George
II, c. 34 (1757), and they have since then, so
far as they define the crime, remained unchang-
ed. 19 Oyc 387. The same language, in sub-
stance, has been used in the statutes in this
country, and, where departed from, it is only
by way of enumeration of certain kinds of prop-
erty that may be included under the general
designation. Tliese enumerations all refer to
substantive things — to a res— and in no case to
which oar attenSon has been called is anything
inclnded in the enumeration which approaches,
in its description or definition, services rendered.
Certainly under no proper and strict adminis-
tration of the criminal law could any one be
indicted under the general language of obtain-
ing property under false preteneee, on the
ground that services, whose performance has
been induced by a false pretense, are property,
within the meaning of the act."
See, also, Gleason r. Thaw, 196 Ted. 359,
116 0. C. A. 179.
[2] It Is the conclU8i(«, of the conrt that
the acceptance and discount of the note of
December 21, 1914, even if Induced by false
representations, was not an obtaining of
property within the meaning of Bankruptcy
Act, i 17, nor of our own statute defining
the crime of obtaining money, goods, or oth-
er property by false pretenses. R. S. c. 128,
i 1. The def^idant obtained, by the renewa]
of the note neither money, goods, nor prc^
erty. The plaintiff obtained the note and
used It to replace the former note, while the
defendant obtained an extension of the time
of payment of his original Indebtednees.
Where the plalntiffB were Induced by the
false statonenta of defendant to bring no
suit upon their claim by reason of the latter
representing it to be paid, it was held no
exception to the discharge in bankruptcy of
defendant, the conrt remarldng that:
"This deceit was after the contract had bean
created, and formed, of course, no inducement
or element of it." Brown v. Broach, 62 Miss.
636, 63&
Obtaining the satisfoction of one's debt
dne to another, by false pretenses, no money
passing, has been held not indictable. Jami-
son V. State, 87 Ark. 446, 40 Am. Rep. 103.
See, also, Qneoi ▼. Croeby, 1 Cox, O. O. 10;
Wavell's Case, 1 Sfoody, G. C. 224. In State
T. Moore, 16 Iowa, 412, 413, under a statute
practically Identical with our own (R. S. p.
128, i 1), it is held that to obtain an Indorse-
ment or credit upon a promissory note la
not obtaining property, money or goods
within the meaning of the statute; Under
the Bankruptcy Act of 1867 (Act Cong.
March 2, 1867, c. 176, 14 Stat 617), It Is said
that:
"The fraud must have been committed in «»-
tracting the deBt. It is no answer to the dis-
charge that the defendant by fraud induced the
plaintiff to forbear an action ujion it." Low.
Bankruptcy, | 433.
And see, under the act of 1888^ Id. I 480.
See, also, B. S. C 128, t 3.
Judgment for defendant.
(S8 Pa. US)
HICKS et uz. T. ALTOONA ft L. V.
ELECTRIC RT. CO.
(Supreme Court of Pennsylvania. May 7,
1917.)
1. Stbekt RAii.BOA.ns «=»117(6, 24)— Injubt
ON Track — Qusbtionb »ob Jttbt — Neou-
OEHCE AND CONTRIBTTTOBT NEOUOKHCIK.
In an action against a street railway to re-
cover for the death of plaintiffs' son, resulting
from a collision between his team and a car
at a street intersection, held, on the evidence,
that defendant's negligence and decedent's con-
tributory negligence were questions for the jury.
2. Stbeet Railroads ^=>99(12) — CROssina
Track — Due Case.
It is the duty of a driver to hxA in both
directions immediately before entering upon the
tracks of a street railway, and to exercise due
care to get his horses under control.
Appeal from Court of Oommon Pleas, Blair
County.
Trespass by J. H. Hicks and Sarah Hicks
against the Altoona ft Logan Valley Electric
Railway Company to recover for the death
of plaintiffs* son. From a Judgment refusing
to take off a compulsory nonsuit, plaintiffs
appeaL Reversed, with a venire facias de
novo.
Argued before BROWN, C. J., and MES-
TREZAT, POTTER, STEWART, and
MOSCHZISKER, JJ.
A. y. Dlvely, of Altoona, for aisidlants.
Thomas H. Greevy, of Alto<Hia, for appellee.
M090HZISKER, J. The plaintifb' son,
Arthur A. Hicks, waa killed in a right-angle
collision between a team whidi be was driv-
ing and a trolley car of the defendant com-
pany, about noon, on August 2, 1912, at tha
junction of two streets in the dty of Altoona.
The court below entered a coms^ulsory non-
suit, which it subsequently refused to f»-
move; plaintiffs have appealed.
[1 ] It appears from the testimony that, at
the time of the collision, the deceased waa
just over the age of 18 years, and an experi-
enced horseman; that the defendant's trol-
ley car waa running at a Q)eed of from 80 to
36 miles an hour; that it approached the
crossing in question without any effort on
the part of the motorman to stop or properly
to control its speed, and without blowing Its
whistle or giving any other warning; that
in the vicinity of the accident the curb lines
of both streets were occupied by trees, and
tbe view of the driver, from his seat on the
wagon, was interfered with by their foliage
to such an ext«it that, in all probability, he
could not see the approaching car until he
C=3ror otbsr essw ■«« lune topic and KBT-NUMBER in all K«r-N«unb«r«d DISMtt and ladexM
Digitized by VjOOQ IC
970
101 ATLANTIC REPORTER
(Pa.
bad passed the curb line of the blgbwaiy up<«
which It was being operated.
Sereral witnesses testified that plaintiffs'
sou was first observed by those on the car
when it was about 200 feet distant from the
point of the collision, and at that time his
horses' heads were within about 12 feet of
the track, advancing on a downgrade at "a
little Jog" or "fast walk" ; furthermore, that
Hicks was then "pulling up" or "reining In"
his team. Another witness said that Imme-
diately after the front of the wagon emerged
from the house line, or when the horses were
about 20 feet from the track, the driver ap-
peared to be endeavoring to stop his team;
bat his efforts were In vain, for the horses
were struck and dragged for a distance of
about 130 feet before the car came to a
standstill. Hicks, in the meantime, having
been thrown from his seat and run over by
the car. Those observers who were called to
the stand all seem to agree the car was ap-
proaching with such rapidity that it was im-
possible for the driver of the wagon to avoid
the aoddent; but whether or not the latter
did all for his own protection which a rea-
sonably careful man should have done were
proper Issues for the Jury— not the witnesses,
or the trial Judge — ^to decida
[2] This court has more than once said
that It is the duty of a driver to look In both
directions Immediately before entering upon
the tracks of a street railway;' but, on the
evidence in this case, the Jury might have
found that plaintiffs' son made a proper ob-
servation, saw the rapidly advancing car,
and did all within his power to prevent the
accident We have also said that, when ap-
proaching a trolley track, a driver must take
due care to get his horses under control ; but
it is a matter of general knowledge that a
team cannot always be effectually managed,
even by the best of horsemen. Therefore
whether or not Hicks made a reasonable ef-
fort to esterdse the care required by the pe-
culiar circumstances at bar is an Issue of
fact, not of law. In other words, both the
question of the defendant's negligence and
that of the driver's alleged contributory neg-
ligence must be determined by a Jury.
The assignments of error are sustained,
and the Judgmoit is reversed, with a venire
facias de novo.
(1E8 Pa. US)
FHIIADBU'HIA TRUST CO. v. NORTH-
UMBERIiAND COUNTY TRACTION
CO. et aL
PENNSYLVANIA STEEL CO. y. 8UNBURT
& SUSQUEHANNA RT. CO.
(Supreme Court of PennarlTania. May 14,
1917. Modification of Uecree May 22,
1917.)
1. CoNSTiTUTiONAi, Law «=>149— Imfaibvert
OP Obliqation of Contbact— Remedies bt
MoRTGAOB FoRECiosuBB— "Contbact."
A first mortgage given by a traction com-
pany on all its property and fronchiges, then
owned or thereafter acquired, to secure an is-
sue of its bondB, covenanting for itself and its
Buccessois not to suffer any lien prior thereto,
waiving all laws requiring foreclosure by an
action or postponing the immediate sale of the
mortgaged property, providing that on default
in the interest or principal as to any covenant
the trustee, on written request of not less than
one-half the bondholders, should declare the
principal payable and enforce the lien by fore-
closure, and permitting the purchaser to use ma-
tured and unpaid bonds toward the payment of
purchase price, was a "contract," the obligation
of which, including the remedies, could not be
impaired by subsequent legislation, or by a de-
cree of a court refusing a foreclosure sale and
decreeing a sale of the merged roads as a unit,
on the ground that it would work an irreparable
injury to the bondholders of a corporation with
which the traction company had merged and to
the bondholders of other merged companies.
[Ed. Note.— For other definitions, see Words
and Phrases, First and Second Series, Con-
tract]
2. CoNBTITUnONAI. LAW ©=116— iMFAlBjraHT
OF Oblioation of Contract — Leoibiativk
AND Judicial Depabtments.
The federal and state Constitutions forbid-
ding the impairment of the obligations of con-
tracts apply to the legislative department and
also to the judicial department, and neither tte
Legislature nor a court can alter or impair the
obligation of a contract
3. Receivers <S=>155— Mebgeb of Mobtoaoob
OoMPANT— Effect.
Where street railway companies which had
given trust mortgages on their properties to se-
cure their bonds were merged into one com-
pany and the merged company was placed in
receivership, the indebtedness incurred by the re-
ceivers had no priority over the bonds secured
by the mortgages of the merged companies, if it
could be paid out of funds arising from ths
receivers' operation of the road.
4. Rbceivxbs ^=>69— Titlx aso IiraxBEsr—
Outstanding Liens.
A receiver of an insolvent corporation takes
only its interest in the property, subject to sU
valid liens against it and can set up no nghu
against claims wliich the corporation could not
have set up.
6. Receivbbs *=»77— TiTue ahd Iktkbkst —
Pbs-exibtino Libns.
The appointment of a receiver for property
doSs not sAtct pre-existing liens upon it or ths
vested rights of third persons therein.
6. Street Railboads «=»56 — Mobtoaob Fobb-
CLOSUBE— COSBBMT OF POBUO SBBVICB COM-
MISSION.
The Public Service Company law (Act July
26, 1913 [P. L. 1374]) does not require the con-
sent of the public service commission before
a mortgage trustee can foreclose a street rail-
way company's mortgage and sell the mortgaged
property.
Appeal from Court of Common Pleas.
Northumberland County.
Bills in equity to foreclose corporate mort-
gages by the Philadelphia Trust, Safe De-
posit & Insnrance Company (now PbUadel-
phia Trust Company), trustee, against the
Northumberland County Traction OcHopany
and Sunbury & Susquebanna Railway Com-
pany; and by H. B. Davis and others, re-
ceivers of the Sunbury & Susquehanna Rail-
way Company and the Pennsylvania Steel
Cwnpany again,^t the Sunbury & Susque-
hanna Railway Company. From the decrees
d^^^For otber case* *e« urn* topic and KBY-NUMBER la all Key-Numbered Oigests and Isdexet
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Pa.) PHILADELPHIA TKDST CO. T. NORTHUMBERLAND COUNTY T. CO. 971
entered, the PUladelphla Trust Oompany,
trustee, takes two appeals, and the Scranton
Trust Company, trustee, appeals. Decrees
modified, and a procedendo awarded.
E^m the record it appeared that the
Northumberland County Traction Company,
herein called "traction company," was rormed
In 1911 by the merger of two other companies,
and owned and operated an electric railway
from the borough of Sunbury to the borough
of Northumberland, having a total length of
about 6 milea On November 1, 1911, it exe-
cuted and delivered a first mortgage or deed
of trust on all its property and franchises,
then owned or thereafter to be acquired, to
the Philadelphia Trust Company, as trustee,
to secure an issue of its bonds, of which
$400,000 are outstanding. The covenants
bound the successors of the traction company,
which agreed that it would suffer no lien to
have priority over this first mortgage, and
waived all laws requiring foreclosure by an
action or postponing the immediate sale of
the mortgaged property under the provisions
of the mortgage. It was provided that in
case default should be made in payment of in-
terest or principal of the bonds or in the per-
formance of any other covenant by the trac-
tion comipany, the trustee, upon the written
request of the holders of not less than one-
half in amount of tlie outstanding bonds,
should declare the principal of all the bonds
to be due and payable and enforce the rights
and liens of the bondholders by foreclosure
or sale of the mortgaged property, with the
right of the purchaser at any sale of the
prtqperty in execution of the provisions of the
mortgage to apply the matured bonds and
coupons upon the purchase price.
The Sunbuiy & Selinsgrove Electric Street
Railway Company, herein called "Selinsgrove
company," was incorporated in 1901, and
owned and operated an electric railway from
the borough of Selinsgrove, In Snyder county,
to the Iborough of Sunbury, in Northumber-
land county, of about 7 miles in length. On
August 1, 1907, it executed and delivered a
mortgage or deed of trust on all its property
and franchises to the Scranton Trust Com-
paniy, as trustee, to secure an Issue of bonds
to the amount of $300,000, which are now
outstanding. This mortgage is a first lien on
all of the property and franchises of the
mortgagor, authorizes the trustee, on re-
quest of the holders of the majority of the
bonds then outstanding, upon which default
In payment of interest or principal has been
made, to take possession and operate the
road until the debt is paid, to have the i^ofits
sequestered by a receiver appointed by a
court of equity, to make public sale of the
property, or to bring on a Judicial sale, and
stipulates that the rights and remedies of the
holders of the bonds provided in the mort-
gage shall be exclusive of all others.
The Sunbury, Lewisburg & Milton Railway
Company, herein called the "LewUfenrg com-
pany," owned and operated an electric rail-
way In Northumberland borough and Point
township, Northumberland county, having a
total length of about 2 miles. On August 21,
1911, this company executed and delivered a
mortgage or deed of trust on all its property
and franchises to secure a bond issue of $1,-
000,000, of which $150,000 have been issued
and are now outstanding.
The Chlllisquaque Connecting Railway
Company and the Montandon & Milton Rail-
road Company were Incorporated as street
railway companies under the laws of the
commonwealth, but have not constructed or
operated roads under their charters.
The Sunbury ft Susquehanna Railway
Company, herein called the "merged com-
pany," is a corporation existing under the
laws of the commonwealth, and was formed
in pursuance of the Act of May 8, 1900, P. L.
408, 5 Pnrd. 5337, by the consoUdatlon and
merger of all the above-named or constituted
companies, and since the consolidation has
owned and operated as a continuous and con-
nected line the several lines of railway form-
erly owned and <^)erated by those companies,
having a total length of about 16 miles. The
merger agreement vested all the property and
franchises of the five corporations in the new
corporation, subject to all the debts, duties,
and liabilities of each of the constituent com-
panies, and provided that all property and
franchises afterwards acquired along each
line should become a part of it and be pri-
marily subject to the mortgage of the constitu-
ent company then operating that line; that
all the rights of creditors and liens upon the
property of either of the constituent corpo-
rations should be preserved unimpaired, and
those corporations should be deemed to con-
tinue In existence to preserve the same ; and
that all debts, liabilities, and duties of either
of the constituent companies should thence-
forth attach to the merged corporation and be
enforced against it to the same extent as if
said debts, liabilities, and duties had been in-
curred or contracted by it The agreement al-
so provided that a refunding mortgage should
be created by the new corporation and
should contain a clause that any default in
respect to the payment of interest, or any oth-
er provision contained in the refunding mort-
gage, should be construed to be, and should
Immediately cerate as, a default with re-
spect to each of the three underlying mort-
gages of the oonstitnent companies; so that
thereupon immediately the respective trus-
tees in the underlying mortgages or the hold-
ers of the bonds of those mortgages, should
forthwith make use of any remedy given
in either or any of those mortgages for the
enforcement of the provisions thereof with
relation to default, as therein set forth,
with like effect to all intents and pur-
poses as if there had been a separate de-
fault under each of the underlying mortgages ;
and no payment of interest under any of the
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101 ATIiANTIC REPORTEU
(Pa.
underlying mortgages sbould prevent such
default, If any default wttatever sbould be
made with respect to any of the provisions of
the refunding mortgage. The merged com-
pany created a bonded indebtedness of $300,-
000, wliich was secured by a mortgage on
all of Its property and franchises.
At the date of the merger, the lines of the
traction company, the Selinsgrove company,
and the Lewlsburg company were end to end
but did not physically connect, and after the
merger the consolidated company physically
connected the tracks of the three constitu-
ent companies and operated them as one line.
The Pennsylvania Steel Company filed a
creditors' bill, on November 13, 1913, against
the merged company, alleging insolvency, and
on December 15, 1913, the court entered a de-
cree adjudging the defendant to be insolvent
and appointed three receivers, who forthwith
took possession of the street railway system
of that company and have since operated it
Default was made under each of the under-
lying morCgages of the three constituent
companies and also the top mortgage of the
merged company, but no bill for foreclosure
was filed by the trustee imder the Selins-
grove and Lewlsburg companies mortgagees.
The Philadelphia Trust Company, trustee
under the traction company utortgage, pre-
sented its petition to the court below aver-
ring default on May 1, 1913, and thereafter,
in payment of the interest due on the bonds
issued by that company and secured by the
mortgage; that on December 15, 1913, the
court appointed receivers for the merged
company who took possession of all Its
property, including the property on which
the traction company mortgage was a lien;
and that petitioner had received the written
request of more than one-half in amount of
the holders of the outstanding bonds to de-
clare the principal of all the bonds to be
due and payable Immediately and to pro-
ceed to enforce the rights and liens of the
bondholders under the mortgage, and pray-
ed for leave to file its bUl for the foreclosure
of the mortgage, naming as defendaiUs in
the bill the traction company and the re-
ceivers of the merged company. The prayer
of the petition was granted on December 7,
1914, and on the same day the bill was filed.
On December 21, 1914, the receivers of the
mergied company presented a petition to the
court below and obtained a rule to show
cause why the court should not decree a sale
of the corporate rights, francliises, and prop-
erty of that company by the reoeivers, freed
and disdiarged from the lien and operation
of the several mortgages of the constituent
and merged companies. Judgments, vendors'
llena and paramount liens, specifically men-
tioned in the petition, and freed and dis-
charged from the lien and operation of all
other liens of any nature and character
whatsoever. The petition alleged that a
separate foreclosure and sale of the road I
covered by the traction company's mortgage,
now asked for by the trustee under that
mortgage, would iwork Irreparable injury to
the bondholders of the merged and other
constituent companies, by causing the dis-
memberment of the system of railways opei^
ated as a unit by the receivers; that a sepa<
rate foreclosure and sale of the traction com-
pany's road would be to the manifest in-
justice of creditors of aU classes; and that,
as no bill had been filed to foreclose the mort-
gages of the other two constituent compa-
nies, the receivers would be left in the em-
barrassing position of trying to operate as
a unit two pieces of disjoined and disconnect-
ed railway. The Philadelphia Trust Com-
pany, trustee under the traction company
mortgage, filed ail answer averring that the
merger of the constituent companies could
not impair, injure, or affecb the security for
the bonds as established by the traction
company mortgage, and denying the material-
ity of the reasons assigned in the petition
for an order for a receiver's sale of the prop-
erty. The answer also avers that the court
was without authority to grant the prayer
of the petitioners for an order to selL A
committee of the bondholders of the traction
company Joined in the answer of the Phila-
delphia Trust Company. The Scranton Trust
Company, trustee for the holders of the bonds
secured by the mortgage of the Selinsgrove
company, filed an answer in which It denied
the material facts alleged in the receivers'
petition, and also the Jurisdiction of the court
to OTder a sale of the properties as a whole,
as prayed for in the petition, divested of aU
Uens, and particularly the lien of the mort-
gage of the Selinsgrove company. The an-
swer also averred that the holders of the
bonds would be deprived of the additional
value of the jwx^erty arising from the statu-
tory ri^t of the purchasers of the property
to organize a corporation and to operate the
property as a separate and independent street
railway.
On January 4, 1915, tba president and re-
ceivers of the merged company filed on an-
swer to the bill of the Philadelphia Trust
Company to foreclose the mortgage given by
the traction company. The answer admits all
the averments of the bill except that as to
the request of more than one-half the bond-
holders, which was afterwards proved and
found by the court, and avers that the re-
ceivers had applied to the court for leave
to sell the property and franchises of the
merged company, and it then sets forth the
same reasons for objecting to the foreclosure
of the traction company mortgage las are giv-
en In the receivers' applicatioa to the court
for leave to sell the property and franchises
of the merged company.
The cases were heard on the pleadings
and testimony, and the court granted the
prayer of the receivers' petition for an order
to sell, and entered a decree authorizing them
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Pa.) FHILAD£LPHIA TKUST CO. v. NORTHUMBEBIiAND COUNTT T. CO. 973
(o sell, as an entirety, the corporate rights,
franchisee, and property of the merged oor-
poration and ot Ita oon^ltuent corporations
at the date of the merger, divested of all
Uens by mortgage. Judgment, decree, or other-
wise, apon the merged railway, whether be-
fore or subsequent to the merger, and wheth-
er against the merged corporation or Jointly
or severally against its constituent corpora-
tions. The decree required a cash deposit
of $10,000 by each bidder, and a cash pay-
ment of $100,000 on acceptance of any bid,
and permitted the use of bonds In payment
of the amount of the bid above the deposit
and the down money, and then allowed a
credit for the bonds In "sudi sums as would
be payable oa such bonds and coupons out
of the purchase price, if the whole amount
thereof bad bees paid in cash." From this
decree the Philadelidiia Trust Ckunpany, trus-
tee, and a committee of bondholders of the
traction company mortgage took an appeal,
at No. 273, January term, 1916, as did also
the Scranton Trust Company, trustee under
the Selinsgrove company mortgage, at No.
275, January term, 1916. The court also
entered a decree on the bill filed by the
Philadelphia Trust Company, trustee, for the
foreclosure of the traction company mort-
gage, that the mortgage was a valid and
subelsting mortgage and constituted a first
lien, with the exception of certain claims
alleged to be preferential, and then under-
going adjudication by the court, on that com-
pany's corporate rights, franchises, and
property covered thereby, and that there was
default in payment of Interest due on the
mortgage whereby the principal of the mort-
gage was now due; but denied a separate
sale In foreclosure by the trustee under the
traction company mortgage, and directed
that the corporate rights, franchises, and
property covered by that mortgage be sold
pursuant to the general order of sale issued
under the court's decree to the receivers of
the merged company. From this decree the
Philadelphia Trust Company, trustee, appeal-
ed, at No. 272, January term, 1916.
Argued before BROWN, O. J., and MES-
TRFPiAT, POTTEIB, STEWART, MOSCQ-
ZISKER, FBAZER, and WALUING, JJ.
C. La Rue Munson, of Willlamfiport, J.
Simpson Kline, of Suinbury, and Townsend,
Elliott & Munson, for appellant Philadelphia
Trust Co. W. L. Hill, of Scranton, for appel-
lant Scranton Trust Co. Ellis Ames Bal-
lard, of Philadelphia, J. Fred Schaffer, of
Sunbury, and Boyd Lee Spahr, of Philadel-
phia, for appellees.
MESTREZAT, J. These three appeals are
from two decrees of the court of common
pleas of Northumberland county, sitting in
equity, and as the questions raised In all
the appeals are practically Identical, they
may be considered and disposed of in one
opinion. The facts will be found in detail
in the reporter's notes. They are principal-
ly of record and none of them, essential to
the dedsl<»i, is in dispute. The Sunbury &
Susquehanna Railway Company, herein call-
ed the "merged company," was formed by
an agreement, dated January 16, 1012, merg-
ing and consolidating the Northumberland
County Traction Company, herein called
"traction company," the Simbury & Selins-
grove Electric Street Railway Company,
herein called "Selinsgrove company," the
Sunbury, Lewisburg & Milton Railway Com-
pany, herein called "Lewisburg company,"
and two other railway companies, the mer-
ger being made in pursuance of the act of
May 3, 1909 (P. L. 408). Prior to the merger,
the three specifically named constituent com-
panies independently owned and operated
street rallwaya They each secured an issue
of first mortgage bonds by a mortgage or
trust deed to a trustee on all the property
and franchises then owned or thereafter to
be acquired by them respectively, and the
bonds are still outstanding and are due and
unpaid. The merged company also secured
a bond issued by a top mortgage and those
bonds are outstanding and default in pay-
ment was made. On December 15, 1913. on
a creditors' bill filed by the Pennsylvania
Steel Company, the merged company was ad-
Judged insolvent and receivers were appoint-
ed by the court below. Subsequently, the
court declined to permit the Philadelphia
Trust Company, trustee in the traction com-
pany mortgage, to foreclose its mortgage and
sell the mortgaged premises, and granted the
receivers an order to sell, as an entirety,
the property and franchises of the merged
corporation and its constituent torporations,
divested of all liens against the consolidated
and constituent companies. From these de-
crees, the Philadelphia Trust Cbmpany and
the Scranton Trust Company, trustees in
two of the underlying mortgages, have taken
appeals.
The principal and controlling questions in
the appeals are substantially the same, and
may be stated as follows: (1) Can a court
of equity deny the trustee under the traction
company mortgage the right upon default
to foreclose and sell the mortgaged proper-
ty? (2) Can the court decree a sale of the
merged road as a unit by the receivers, di-
vested of the Uen of the underlying mortgag-
es of the constituent companies? (3) Does
the Public Service Company Law require
consent of its commission to foreclose the
ui>^erlying traction company mortgage?
[1,2] The learned Judge of the court be-
low refused to permit a separate foreclosure
and sale under the traction company mort-
gage, and the reasons assigned are that it
would work irreparable injury to the bond-
holders of the other constituent companies
and the merged company; would be to the
manifest injustice of all classes of creditors ;
would result In imposing additional burdens
upon the traveling public, and materially
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101 ATLANTIC BEPORTEB
(Pa.
IncoaTenlence the public travel upon the
railway; would disconnect the roads of the
other two constituent companies and compel
the receivers to operate them as a unit with-
out any means of connection ; would greatly
impair the value of the rolling stock which
is used on the whole system ; would pre-
vent marshaling the assets as between the
liens and preferential claims and between
the units composing the merged company;
and the road would sell for a better price
as a whole than if sold in parts.
We are not convinced that these or any
other reasons brought to our attention are
Buffldent, under the facts of these cases, to
Justify the court in refusing to permit the
trustee under the traction company mort-
gage to enforce its rights and those of the
bondholders acquired by, and in accordance
with, the terms of the mortgage. This ob-
ligation was given to secure a bond issue and
Is the contract between the company and its
creditoHs, the holders of its bonds. The
mortgage, In specific terms, Imposes the ob-
ligation to pay the debt and Interest of the
bonds according to their tenor, and provides
remedies, in case of a default in the perform-
ance of any covenant or stipulation of the
contract, for enforcing the rights and liens
of the bondholders. These remedies, as the
mortgage discloses, are by a foreclosure or
other appropriate proceeding, or by a sale
of the mortgaged property by the trustee, aud-
it Is declared that "nothing herein contained
shall be construed as abridging the power of
the trustee to foreclose this indenture by
bill In equity at any time after any default
shall have been made and shall have contin-
ued as above provided." It is stipulated in
the mortgage that. In any foreclosure or
other sale of the property and franchises of
the company in the execution of its provi-
sions, the purchaser may use any of the ma-
tured and unpaid bonds and coupons toward
payment of the purchase price. It is conced-
ed, and the court finds, that default was
made in payment of interest on the bonds
whereby the principal thereof had become
due, and that the trustee had been requested
to declare all the bonds due and payable
and to proceed to enforce the rights and Hens
of the bondholders, as provided in the mort-
gage. The parties, therefore, not only stipu-
lated In the mortgage for the payment of the
bonds with their Intetesl, but provided there-
in the remedies to enforce the payment of
the indebtedness. The federal and state Con-
ctitutions forbid the Impairment of the obli-
gation of contracts, and, as a mortgage is
a contract. Its terms are, therefore. Invio-
lable. This Inhibition extends to the remedy
spedfled In the contract which becomes a
part of the obligation and, without con.sent,
cannot be altered, defeated or otherwise af-
fected by subsequent legislation or by the
judgment or decree of a Judicial tribunal.
This is settled on principle and authority,
and of the numerous decisions in all Juris-
dictions enforcing the doctrine we need dte
but two of our own cases. In Blllmeyer ▼.
Evans & Rodenbaugh, 40 Pa. 324, 327, Mr.
Justice Woodward, delivering the opinion,
said:
"A statute strictly remedial may impair the
obligation of a contract, and when this happens
the act is unconstitutional. Bronson v. Kinrie
et al., 42 V. S. 311 [11 Li Ed. 143]. Thisid-
ways happens where the parties make legal rem-
edies a subject of their contract, and sabse-
quent lesislation conflicts with what they have
expressed in their agreement. If diey do not
prescribe the rule of remedy in their contract,
the lawmaking power is free; but if they do,
they become a law to themselves, and the Legis-
lature must let them alone."
In the subsequent case of Breltenbadi v.
Bush, 44 Pa. S13, 318, 84 Am. Dea 442, the
same learned Judge, speaking for the court,
restates the doctrine as follows:
"It sometimes happens that the parties con-
tract concerning the remedy — that they stipu-
late in the body of the contract that, in case
of the failure of payment by a certain day, there
shall be no stay of execution, or that the mort-
gagees may enter and aeU the mortgaged estate
— or that all exemption rights shall be waived.
In such cases, the rule is that the remedy be-
comes a part of the obligation of the contract,
and any subsequent statute which affects the
remedy impairs the obligation, and is uncunsti-
tutionah"
The constitutional provision, federal (TT. S.
Const, art 1, ( 10) and state (Const, art 1, I-
17), forbidding the impairment of the obliga-
tion of contracts, lays Its hand on the legis-
lative department of the government, but the
principle has like force when Invoked for a
similar purpose In the Judidal department
There is no anthority, common-law or statu-
tory, in the courts which empowers them to
exercise functions expressly onder the ban of
the constitutional Inhibition. In the language
of Chief Justice Beasley, In New Jersey Mid-
land By. Co. V. Strait, 36 N. J. Law. 322, 324.
"neither the court nor the Legislature can al-
ter the bargain betweoi these parties." We
have distinctly so held in Galey v. Ouffey,
248 Pa. 523, 528, 91 Atl. 238, 240, where It is
said:
"It is true that what is prohibited is legisla-
tive action the effect of which would be the im-
pairment of a contract; but what the Legisla-
ture may not do in this regard certainly die
courts may not do. The power that is herejde-
nied the Legislature was not reserved to the
courts."
It Is, therefore, clear that the terms of the
mortgage contract cannot t>e altered or im-
paired by either the Legislature or the courts,
and this applies to the remedies, or specific
provision for its enforcement, as well as to
the obligation to pay the bonded Indebted-
ness. The learned Judge found that the trac-
tion company mortgage is a valid and subsist-
ing mortgage and constitutes a first lien ni>-
on all the real and other estate, property and
franchises of that company, with the right of
the mortgagee, on default to sell the mort-
gaged property, or foreclose the mortgage,
and the right of the purchaser to use the
bonds in payment of the purchase price, but
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Pa.) PHILADELPHIA TRUST CX). v. NORTHUMBERLAND COUNTT T. CO. 975
refused to permit the mortKagee trust com-
pany to enforce the lien and rights of the
bondboldens In accordance with the q;>eclflc
provisions of the mortgage contract. If, as
said by Mr. Justice Woodward In the Bill-,
meyer Case, the court may do this, the consti-
tutional provisions are a vain parade of
words, a mere theoretical rule without any
practical force or value. This action of the
court not <«Iy violated the contractual rights
of the holders of the bonds secured by their
mortgage but also the express provisions of
the merger agreement, as well as the provi-
sions of the act of May 3, 1909 (P. L. 408),
under which the several constituent compa-
nies were consolidated. The merger contract
provides, as will be observed, "that all the
rights of creditors and all liens upon the
property of either of the said corporations,
parties hereto, shall be preserved unimpair-
ed, and the said corporations may be deemed
to continue In existence to preserve the
same." This Is the Identical language of the
third section of the act of 1909, and, there-
fore, the rights and remedies conferred on
the holders of the bonds under the traction
company mortgage were protected and assur-
ed by agreement of the several constituent
companies entering the merger, and by the
express mandate of the statute authorizing
and legalizing the agreement which unified
the several constituent systems of electric
railways.
The effect of the decree refusing the trus-
tee of the traction company mortgage the
right to foreclose and sell under Its mortgage
is far-reaching, and deprives the bondholders
of contractual rights essential to the full pro-
tection of their securities. It is conceded
and was found by the court that default was
made by the three constituent companies, and
hence the principal and Interest of the whole
bond Issue was due and unpaid at the time
permission was asked to proceed on the trac-
tion company mortgage. By the terms of the
mortgage, therefore, the traction company
was barred from its equity of redemption In
the mortgaged premises and the mortgagee
was authorized to foreclose the mortgage and
to collect the indebtedness. This, as Is ap-
parent. Is an Important right possessed by the
mortgagee, especially as the mortgage pro-
vides no other source from which the bonds
can be paid. The decree also deprives the
bondholders of the valuable right, in case of
their being compelled to purchase the prop-
erty to protect themselves, of applying the
bonds In payment of the purchase price,
which Is permitted, as provided Iq the mort-
gage, "in case any foreclosure or any other
sale shall be made of the said property and
franchises in execution of the provisions of
this mortgage." The denial of the right to
proceed on the mortgage took away this
right, a right which unquestionably enhanced
the value of the bonds. It is true, the decree
of sale issued to the receivers permitted the
use of the bonds in payment of the purchase
price; but it required a cash deposit of $10,-
000 by each bidder, and a cash payment of
$100,000 on acceptance of the bid, and impos-
ed other terms different from those provided
in the merger agreement, which rendered this
contractual right practically valueless. The
denial of a foreclosure and sale under the
traction company mortgage also seriously af-
fects the bondholdiug creditors, in that it de-
prive the purchasers of the property and
franchises of that company of the statutory
right to organize a corporation and operate
the property as an Independent rollway.
The reasons assigned by the learned court
below for refusing to permit the trustee to
maice a separate sale in foreclosure of the
mortgaged property, as will be observed, are,
in effect, that it would be detrimental to the
interests of the holders of the bonds of the
other constituent companies and of the merg-
ed company, would result in Inconvenience
to public travel on the merged railway by
disconnecting the roads of the underlying
companies, and that the road as a whole
would sell for a better price. These reasons
are not sufficient to sustain the court's action.
They entirely Ignore and put aside the con-
ceded rights of the traction company bond-
holders which are secured by their mortgage,
and of which all subsequent creditors had
full notice. These creditors are not in a
position to insist that their property interests
and the convenience of the public will be
endangered or sacriSced by a decree permit-
ting the holders of the traction company
bonds to enforce payment by availing them-
selves of the remedies granted them in the
mortgage. Such a decree will violate no
rights of those creditors, although their in-
terests may be injuriously affected, and hence
they cannot successfully invoke' the aid of
a court to defeat the prior rights of the
traction company's creditors, which are
sought to ba «iforced in strict compliance
with the company's contractual obligation.
The language of the court in Palrpoint Mfg.
Ck>. et al. V. Philadelphia Optical & Watch
Co. et al., 161 Pa. 17, 22, 28 Atl. 1003, may
well be applied here. In reversing a decree
which enjoined a sale by the sheriff at the
Instance of the receivers of the defendant
company, we said:
"The confession of judgment to the appellant
being lawful, the only remaining reason present-
ed by tlie petition for interfering with tne writ
of execution is that a sale can be more advan-
tageously conducted in the interests of all the
creditors by the receivers. This it not a suffi-
cient reason. The appellant is pursuing the reg-
ular and orderly course for the collection of a
judgment lawfully obtained for a debt admitted-
ly due. This is its right. The interests of
other creditors may be affected thereby, but, un-
til it is shown that their rights are violated, no
one has a standing to challenge the appellant's
right to use the means provided by law for the
enforcement of its claim."
[3] We do not agree that the so-called
preferential claims take precedence of the
bonds secured by the underlying mortgages.
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101 ATLANTIC REPORTEB
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They are debts Incurred by the recovers of
the merged company, and hence were con-
tracted subsequently to the then existing in-
debtedness created by the prior mortgages of
the constituent companies. They can, and
doubtless will, be paid out of the funds aris-
ing from the operation of the road by the
receivers.
The learned chancellor held that the court
had authority to decree the sale of the merg-
ed road as an entirety, by Its receivers, freed
and discharged of all liens, including the
mortgages of the underlying companies. In
considering this question, it is well to keep
in view the fact that the parties objecting
to the court's conclusion are the holders of
the bonds of the underlying companies, and
not the holders of the bonds of the merged
company. The reasons assigned for the
court's conclusion are the same as those for
refusing to permit a separate sale In fore-
closure of the traction company mortgage,
and that the Jurisdiction of the court in eq-
uity having attached by virtue of the pro-
ceedings resulting in placing the merged road
in the hands of receivers, the court had au-
thority to give complete and adequate relief
by decreeing a sale of the property discharg-
ed of all liens against the merged company
and its constituent companies. The chan-
cellor further suggested, as a reason for his
action, that a separate sale in foreclosure
of the traction company unit would interfere
with the administration of the receivership,
and consequently with the Jurisdiction of
the court to administer adequate relief in
the Initial suit wherein the Jurisdiction of the
court first attached.
The statutory merger of the constituent
companies, as already pointed out, did not
affect the Ilena against those companies nor
the rights of their creditors existing at the
time of the merger, and the consolidated
company took tlie property of the underlying
companies with notice of and subject to such
rights and liens. The merger agreement spe-
cifically protects the mortgage liens on the
property of the constituent companies, and
the act of 1900 provides that they shall con-
tinue unimpaired after the consolidation.
Tb.^ imderlylng mortgages were first liens
on the mortgaged property and franchises, as
found by the court, and, "such being the fact,
the bondholders are entitled to the money as
against the comi>any and all persons holding
under it with notice of their position." Fi-
delity Ins., Trust & Safe Deposit Ca v. West
Penna. & Shenango Connecting R. R. Co.,
138 Pa. 494, {S04, 21 AtL 21, 21 Am. Bt Rep.
911. The effect of the statutory merger of
corporations on the OMistituent companies is
well expressed by Mr. Justice Gray In the
matter of Utlca National Brewing Co., 1S4
N. T. 268, 273, 48 N. E. 621, 522. The learned
Justice says:
"It is argued • • • that by the terms of
the consolidation agreement the new corporation
w()S freed from the debts and liabilities of the
corporations merging Into ft. If we ml^ht as-
sume that such was intended aa a result of
consolidation under the agreement, nevertheless
it would be wholly inoperative to accomplish
any such thing as to creditors who were not
parties to the agreement. Such creditors were
not bound by any of its provisions. The statute
protected them, and consolidation pursuant to
Its permission and provisions, whatever it may
mean for the stockholders because of their agree-
ment, leaves the creditors precisely in the situ-
ation which the statute defines. If they have
not done anything to impair or to release their
rights, it is not, and could not be, within the
purview of the statute that those rights may be
impaired through the action of members of the
consolidating corporations."
To the same effect are Baltimore & Susque-
hanna R. R. Co. V. Musselman, 2 Grant (Pa.)
348; Wabash, St Louis & Paa Ry. Co. ▼.
Ham et al., 114 U. S. 587, 595, 5 Sup. Ct.
lOSl, 29 L. Ed. 235; New Jersey Midland
Ry. Co. V. Strait, 35 N. J. Law, 322 ; Smith
V. Los Angeles & Pac. Ry. Co., 98 Cal. 210,
33 Pac. 53; State, use of Dodson et aL, v.
Baltimore & Lehigh R. B. Co., 77 Md. 489.
26 Atl. 865.
[4, B] The receivers were appointed on a
creditors' bill filed on the equity side of the
court by the Pennsylvania Steel Company
against the merged company, averring the
Insolvency of the latter company and praying
for the appointment of receivers to take pos-
session of its property and franchises and
operate its railway system. The effect of
the receivership was to place the property of
the merged company in the bands of the re-
ceivers to be administered for the benefit of
the insolvent corporation. It did not, and
could not, affect or impair the liens or con-
tractual rights of the creditors of the merged
company or of any of the constituent compa-
nies. Galey v. Guffey, 248 Pa. 523, 94 AtL
238. A receiver of the insolvent corporation
stands in the shoes of the owner and takes
only his Interest In the property subject to
all valid liens against it. He can acquire no
other, greater, or better interest than the
debtor had In the property, and to this extent
the receiver has been held to stand in ths
shoes of the debtor, and he has the same
right which the Insolvent would have had,
and can set up no rights against claims
whl(di the debtor could not have set up. 34
Gyc. 191, and cases dted. The appointment
of a receiver for property does not affect pre-
existing liens upon the property, or vested
rights or Interests of third persons therdn.
A receiver. It Is held, succeeds only to such'
right, title, and Interest in the property as
the Individual or corxwratlon for which he is
appointed receiver had at the time the ap-
pointment was made. 23 Amer. & Eng. En-
eye of Law (2d Ed.) 1091. "The appoint-
ment of a receiver," says Mr. Justice Brewer,
delivering the opinion in Kneeland v. Ameri-
can Loan ft Trust Co., 136 U. S. 89, 97, 10
Sup. (X 960, 053, 34 L. Ed. 379, "vests in the
court no absolute control over the property,
and no general authority to displace vested
contract liens. • • • One holding a mort-
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Pa.) PHILADELPHIA TRUST 00. T. NORTHUMBERLAND CWUNTT T. CX). 977
gage debt upon a railroad bas tbe same right
to demand and expect of the court respect tor
his vested and contracted priorltj as tbe
holder of a mortgage on a farm or lot. • • *
We emphasize this fact of the sacredneaa of
contract liens, for the reason that there seems
to be growing an Idea, that the chancellor.
In the exercise of his eqaitable powers, has
unlimited discretion In this matter of the
displacement of vested liens." This language
Is quoted with approval In Thomas v. West-
em Oar Ck)., 149 TJ. S. 95, HI, 13 Sup. Ct. 824,
87 L. Bd. 663, and other federal decisions.
In view of the effect of the consolidation
of tbe several constituent companies and of
the appointment of receivers for the merged
company, we cannot assent to the conclusion
tbat tbe court appointing the receivers bad
jurisdiction to decree a sale of tbe merged
road divested of the liens of the underlying
mortgages. Its jurisdiction extended only
to the administration of the assets of the
Insolvent merged company, and those assets,
to tbe extent tbey had been tbe property of
tbe underlying Gomi)anles, were subject to
tbe liens and contractual rights of the credi-
tors of those companies whldi, by tbe con-
tract and the statute, were "deemed to con-
tinue in existence to preserve the same."
The constituent companies were not brought
within the jurisdiction of the court by tbe
appointment of receivers for the consolidat-
ed company. It was therefore clearly beyond
the power of the court by its decree to divest
tbe liens of the imderlylng companies. The
creditors of these companies were not parties
to the merger agreement and, so far as ap-
pears, could not prevent the consolidation.
Tbe bondholders of the respective imderlylng
corporations and their mortgage trustees
were not required to give their assent, and
did not agree to the merger of the corpora-
tions. The rights of the holders of the bonds
and other creditors are, as we have seen,
expressly preserved by tbe statute and the
merger agreement executed by the constitu-
ent companies. If, as already pointed out,
tbe court, in the administration of the assets
of the merged corporation, were permitted to
decree a sale by the receivers, divesting the
liens of the mortgages of the underlying com-
panies. It would be in plain violation of the
contractual rights of the holders of the
mortgage bonds protected by the federal and
state Constitutions. We repeat what is said
above: What the Legislature cannot do, tbe
courts are without authority to do. Tbe
sacredness of a contract is protected by tbe
fundamental law of the land and cannot be
Invaded by a court ot law or equity.
A decree directing a sale by the receivers
discharged of all liens and fixing the terms
thereof, not only violates tbe contractual
rights of tbe bondholders of tbe constituent
companies, as i>olnted out above, but does
them manifest injustice. The mortgage pro-
Tides that in case of a sale of tbe mortgaged
101A<-62
property In execution of its provisions tbe
purchaser shall be entitled to apply the bonds
in paymoit of the purchase price. The de-
cree orders a sale of the entire property of
the consolidated company. If the bondhold-
ers of either of the constituent companies de-
sire to protect their interests by purchasing
the property, they must buy the three roads
instead of one and, in accordance with tbe
decree, deposit |10,000 as bidders, pay $100,-
000 on acceptance of tbe bid, and be per-
mitted to use the bonds only in payment of
the amount of the bid above the deposit and
the down money, and then be allowed a cred-
it for the bonds only in "such sums as would
be payable on such bonds and coupons out ot
the purchase price. If the whole amount
thereof had been paid in cash." The decree,
therefore, Imposes terms on the bondholders
of the respective comx>anie8, if they become
purchasers, which are violative of their con-
tractual obligation and, In effect, compels
them to purchase the three roads and thereby
pay some pert of the bonded Indebtedness
of the other companies.
The creditors of the merged company have
no just ground to complain if a sale of tbe
property to be made by the receivers is wA-
ject to the lien of the underlying mortgages.
Woodworth v. Blair, 112 U. S. 8, 6 Sup. Ot.
6, 28 L. Ed. 616. Tbe records which they
were bound to consult gave them notice of
the bonded indebtedness of the underlying
companies and the remedies provided for its
collection. Tbe holders of tbe bonds of tbe
merged company, therefore, knew tbat tbey
were taking the top bonds subject to the con-
tractual rights of the creditors evidenced by
the terms of the underlying mortgages, which
made the bonds of the constituent companies
first liens on tbe property and franchises of
those companies and provided specific reme-
dies for their collection.
[•] Tbe learned court below was clearly
in error in holding that tbe Public Service
Company Law requires the consent of its
commission before the trustee could foreclose
the traction company mortgage and sell the
mortgaged property. This is not a proceed-
ing instituted by the merged company or tbe
traction company to sell, assign, transfer,
lease, consolidate, or merge its property, pow-
ers, franchises, or privileges to or with any
other corporation, which, under the Public
Service Company Law, requires the approval
of its commission, but Is a bill in equity filed
by the trustee to enforce the contractual
rights of the bondholders by foreclosing the
traction company mortgage by which the
bond issue is secured. In other words, it
Is a proceeding by the trustee, in strict con-
formity with the contract, to collect the
bonded Indebtedness of the traction company,
and there is no provision in the Public Serv-
ice Company Law which attempts to or can
interfere with or prevent it
Tbera are other questions of minor im-
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978
101 ATIiANTIO REPORTEB
(Pt.
portance raised by the asslgomenta, but they
do not affect our conclusion and, therefore,
need not be considered.
We conclude that the learned court below
erred in refusing to permit the mortgagee In
the traction company mortgage to enforce the
rights of the holders of the bonds under that
mortgage by foreclosure and sale of the mort-
gaged property, one of the remedies stipulat-
ed In the contract of the parties, and In de-
creeing a sale of the merged roads as a unit
divested of the Hen of the underlying mort-
gages of the constituent companies.
It is ordered, adjudged, and decreed that
the appeals of the Philadelphia Trust Com-
pany, trustee, at Nos. 272 and 273, January
term, 1916, and of the Scrauton Trust Coui-
I)any at No. 275, January term, 1016, be sus-
tained to the extent of modifying the de-
crees in the respective cases so as to conform
to the views herein expressed, and a proce-
dendo Is awarded.
Modification of Decree.
PER CURIAM. And now, May 22, 1917,
the decree In the above-entitled cases Is mod-
ified and enlarged as follows: In the case In
which the appeal was taken to No. 272, Janu-
ary term, 1916, the receivers of the Sunbury
& Susquehanna Railway Company are direct-
ed to pay all the costs Incurred since the fil-
ing of their answer, including the costs of
the appeal ; and In the cases in which the ap-
peals were taken to Nos. 273 and 275, Jan-
uary term, 1916, the receivers are directed to
pay the costs incurred In connection with
their petition for an order of sale, including
the costs of the appeals.
<258 Pa. »0
HOPE V. KELLET et aL
(Supreme Court of Pennsylvania. May 22,
1917.)
Wnxs 4s»8iO — Dbvisb — OovBiKuanon—
Chasgc
The owner of property subject to a mortgage
of $800 joined with her sister in borrowing $1,-
750, and gave as security a joint mortgage cov-
eting her own property and other property of
her sister, and paid off the |800 mortgage out
of the money so borrowed, and thereafter paid
interest on $800 of the $1,750 mortgage, and by
will devised the property to her brother and his
heirs, provided he assume and pay the mort-
gage. Held, that the devisee was required to
pay the entire $1,750 mortgage.
Appeal troax Court of Common Pleas, Lu-
seme County.
Case stated. In case of Charles Hope
against CSiarles Kelley and others to deter-
mine the construction of a will. From a
judgment for plaintiff, defendant Charles
Kelley appeals. Affirmed.
Argued before BROWN, O. J., and MES-
TBEZAT. POTTER, FRAZER, and WAX/-
UNO, JJ.
R. B. Alexander, of Wilkes-Barre, for ap-
peUant. Frank P. Slattery, of WUkes-Batre,
for appellee.
BROWN, C. J. In an amicable action in-
stituted in the court below the question for
its determination was the effect to be given to
a clause In the will of Margaret McDade, de-
ceased, ahd the judgment from which we
have this appeal was entered on facts agreed
upon in a case stated.
On April 1, 1906, Mrs. McDade was the
owner of a lot of ground — No. 516 Hazel
street, in the dty of Wilkes-Barre — which
was subject to a mortgage executed by her
for $800. At that time her sister, Annie
Meighan, wished to purchase a property In
Wright township, Luzerne county, and ap-
plied to her for financial assistance. That
this might be rendered, the two sisters bor-
rowed from Peter Hope $1,750, giving as se-
curity therefor their joint mortgage, dated
April 6, 1908, covering Mra McDade's prop-
erty on Hazel street, WUkes-Barre, and two
properties owned by Mrs. Meighan, in the
township of Wright. The day after the ex-
ecution of this mortgage and the receipt of
$1,750 from Hope by the mortgagors the
mortgage of $800 on the McDade property
was paid out of moneys so received. The
balance was used In the purdiaae of the
property in Wright township by Mra Mei-
ghan. The mortgage for $1,750 was subse-
quently assigned to Charles Hope, the amwl-
lee. Mrs. McDade, up to the time of bar
death, paid Interest on $800 of this mortgage,
and M!rs. Meighan paid interest on the l)a]-
ance and $200 of the principal. Mrs. McDade
died September 13, 1915, and by her will, ex-
ecuteid J^ine 9th of the same year, devised
her Hazel street property to her brother,
Charles Kelley. The question before the
court below was whether he took it subject
to the mortgage of $1,750, or only to $800
thereof, under the following clause In her
wUl:
"Seventh. I ^t^ devise and bequeath to my
brother, Charles Kelley of North Main street,
Wilkes-Barre, Pa., my house and lot situated
at No. 516 Hazel avenue, Wilkes-Barre, Pa., ad-
joining property of Peter Conlon, the same to
go to and is hereby devised to said Charles Kel-
ley, and his heirs forever, provided my aaid
brother assume and pay the mortgage given by
me and entered against said property."
When Mrs. McDade died there was but
one mortgage on her Hasel street property,
and It was the one given by her and her sis-
ter to Peter Hope for $1,750, now held by the
appellee. Seven years before her death h^
mortgage for $800 on that property had been
paid and marked satisfied on the record. It
could not, therefore, have been assumed by
Charles Kelley, the devisee, upon the death
of his sister, for It no longer existed. Her
words In the devise to him clearly and unmis-
takably direct that, if he takes the property.
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FOX CHASE BANK v. WAYNE JUNCTION TRUST CO.
979
he must assume and pay her mortgage upoa
it What that mortgage was was not open to
dispute, for at the time the will of the tes-
tatrix was written, and up to the day she
died, the only mortgage against the property
was the one given to Peter Hope. When this
appeared to the court, the judgment that the
appellant must pay and assume it, if he
would take the devlae, waa so manifestly
correct that nothing ne^ be added In vindi-
cation of It No fact in the case stated
would have warranted any other conclusion.
If the testatrix intended that her brother
should pay but (800 of the mortgage, she
could have so stated In a single line. Her
intention as expressed la her will la oontrol-
Ung.
Judgment affirmed.
(258 Pa. 2T2)
FOX CHASE BANK v. WAYNE JUNCTION
TRUST CO.
(Supreme Court of Pennsylvania. May 22,
1917.)
1. Insttrancb €=9646(6)— TnxE Iwstjbancb—
BXCOVEBT.
To recover on a policy of title insurance con-
ditioned to indemnify and keep insured harmless
from loss sustained by reason of the filing me-
clianics' liens, etc., insured must establish a loss
covered by its provisions.
2. INSTTBANCE <S=»514 — TlTLS IHSIHUIIOB —
BBKACH— LlAB ILITT.
Under a policy of title insurance conditioned
to indemnify a mortgagee from damage by rea-
son of the filing of mechanics' liens, etc., the
insurer was liable where such liens were filed
and where a final judgment awarded the lienors
the fund which otherwise would have paid the
mortgage.
8. Insurance «=>e61 — Tnus Insubarcb —
Action — Evidence.
In an action on such policy opinion evi-
dence tending to show that the market value of
the insured's mortgage was less than its face
value or that the mortgaged property would
have been worth less when finished than when
sold at a sheriff's sale was inadmissible.
4. Insurance «=»648(1)— Tm-B Insurance—
Evidence.
In such action, an offer to show that there
was an agreement among the mechanic lienors
that one should bid for all without any showing
that the purchase by such party was not bona
fide or that such agreement affected amount of
the bid was irrelevant especially where there was
no offer to idiow that the insured mortgagee
knew of snch agreement
6. Inbubance €=>53a— Title Insurance.
Under a policy of title insurance indemnify-
ing a mortgagee from damages by reason of the
filing of mechanics' liens, etc., a provision re-
quinng the insured to notify the insurer of any
action or proceeding founded upon any lien did
not refer to the fflmg of such lien, but to the
proceedings for its enforcement
6. Insurance ^=9513 — Titlb Insurance —
Failure to Make Dehense— Liability roB
Expenses.
In such case, the insurer declining to defend
against mechanic^ liens and insisting that the
insured must do so was liable for the expenses
thereby incurred by the insured.
Appeal from Court of Common Fleas, Phil-
adelphia County.
Assumpsit on a policy of title Insurance
by the Fox Chase Bank against the Wayne
Junction Trust Company. Verdict for plain-
tiff for $10,432.92, and Judgment thereon, and
defendant appeals. Affirmed.
Argued before BROWN, C. J., and STEW-
ART, MOSCHZISKBR, FRAZEK, and WAI/-
LING, JJ.
Wayne P. Rambo, Robert Malr, and Or-
mond Rambo, all of Philadelphia, for appel-
lant Abraham M. Beitler and Oeorge W.
Harklns, Jr., both of Philadelphia, for appel-
lee.
WAIiLINO, J. This action to (m a special
policy of Indemnity against liens and the non-
completion of a building operation. In 1911
Seward I* Bowser undertook to build 17
bouses on Duncannon avenue, Philadelphia,
and placed a first mortgage of about $15,000
upon the land. At the same time and seem-
ingly for the same Indebtedness he also gave
mortgages upon the individual lots. There-
after, and while the houses were in process
of construction, he secured a loan of $10,000
from plaintiff, for which he gave his individ-
ual note, and as collateral thereto a second
mortgage upon said proijerty, and. as addi-
tional security, defendant at the same time
gave plaintiff its special policy of Insurance
In $10,000, conditioned In effect to Indemnify
and keep harmless the said Fox Chase Bank
(the Insured) from all lo»s or damage it might
sustain by reason only of the filing of any
mechanics and municipal claims against or
the noncompletion of the buUdings to be
erected within six months from the date
thereof, upon the property in question. Bow-
ser failed financially and never completed the
houses or any of them. However, one house
was sold for $600 subject to the first mort-
gage, and It was released from plalntifTs
mortgage and the amount credited on the
$10,000 indebtedness, which reduced the same
and also the liability on the policy to $9,-
400.
Mechanics' liens amounting to about $22,-
000 were filed against the bouses and their
respective lots. These liens had priority
over plaintitTs mortgage, on which mortgage
foreclosure proceedings were instituted and
thirteen of the houses and lots sold by the
sheriff on September 16, 1912. On the same
day the sheriff also sold the three remaining
houses by virtue of writs issued on mortgages
prior to the mechanics' liens, of which pro-
ceedings and sales defendant had due no-
tice. Plaintiff became the purchaser of six
of the houses so sold, and the other ten were
bought by a representative of the mechanics'
lien creditors. The sales, made subject to
prior mortgages, realized more than sufficient
to pay plaintiff's claim In full, except for
the mechanics' liens. The amount was paid
to the sheriff and an auditor appointed to
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980
101 ATIiANTIO BEPORTEB
<Pa.
make dlstrlbntlon. The policy made it the
duty of the Wayne Junction Trust Company,
at Its own cost, on notice to defend the in-
sured In all actions and proceedings founded
on a claim of title or lien, etc., insured
against Pursuant to this, plaintlft notified
defendant of the liens and proceedings before
the auditor; the trust company declined to
appear and defend against such liens, but
warned plaintiff to do so, and the latter em-
ployed counsel, who succeeded in reducing
the amount of such liens by about $10,000.
According to the auditor's report, after pay-
ment of all valid liens and other legitimate
expenses, a balance of $177.55 was left,
which was awarded to plaintiff's mortgage.
The auditor's report was confirmed by the
proper court, and no appeal was taken there-
from. The plaintiff brought this suit on the
policy to recover the balance of the Bowser
claim, and also $750 paid counsel for services
before the auditor. Plaintiff limited its claim
to alleged loss on account of the liens, and
made no claim because of failure to complete
the houses. Among the matters interposed
in defense was the allegation that the houses
were not worth the amount they brought at
the sheriff's sales. The trial judge admitted
evidence as to the market value of the six
houses bought by plaintiff, but rejected that
offered as to the other tm. The Jury found
for the plaintiff for the full amount of the
claim, which implied a finding that the six
houses were bought at their fair value.
This ai^eal is from the Judgment entered on
the verdict. We have examined the 36 as-
signments of error, but find nothing that calls
for a reversal.
[1-4] True, this being a contract of indem-
nity, it is incumbent on the Insured to estab-
lish a lose covered by its provisions. Moving
Picture Go. of America v. Scottish Union &
National Ina Oo. of Edinburgh, 244 Pa. 358,
90 Atl. 642 ; Wheeler v. Equitable Trust Com-
pany, 221 Pa. 276, 70 Atl. 750; Central
Trust & Savings Co. v. Hairy Kraan Furni-
ture Co., 67 Pa. Super. Ot 221. But defend-
ant did undertake to indemnify plaintiff
against mechanics' liens, and such liens were
filed, and to them was awarded by final Ju-
dicial decree the funds that otherwise would
have paid plaintifTs claim. Thereby it sus-
tained the very loss insured against ; and, in
the face of the fact that such fund was real-
ized by bona fide Judicial sales and actually
paid to the sheriff for distribution, it is vain
to offer opinion evidence tending to show
that the market value of plaintifTs mortgage
was less than its face value, or that the
houses in question would have been worth
less finished than they sold for at the sheriff's
sales. Plaintiff's loss was the fund it failed
to receive because of the Hens, and not what
someone might estimate the market value of
the mortgage or property. It is not neces-
sary to estimate the value of property when
the rights of the parties have been deter-
mined by its actual value as shown by a Judi-
cial sale. In such case the rights of the
parties are determined by the amoont real-
ized from the sale of the property. Wheeler
V. Eiquitable Trust Company, supra. There
WB8 no offer or attempt to prove plaintiff
was a party to any fraud or collusl<m at the
sheriff's sales. In fact, as above stated, the
trial Judge admitted evidence tending to show
the value of the houses bought by plaintiff;
and the offer to show that there was an
agreement among the mechanics' lien credi-
tors that one should bid for all was irrele-
vant, as It did not tend to prove that the pur-
chase by such party was not bona fide or
that such fact affected the amount of the
bid ; and, in any event, there was no offer to
show that plaintiff had knowledge of such al-
leged agreement
[S, •] In our opinion the provision in the
policy, requiring plaintiff to notify defend-
ant of any action or proceeding founded up-
on any lien, does not refer to the filing of
such lien but to proceedings taken for its en-
forcemoit As the Wayne Junction Trust
Company declined to make defense against
the mechanics' liens, but insisted that plain-
tiff must do sok we see no reason why the
latter should not recover the expense there-
by Incurred. Complaint is made as to al-
leged inconsistencies in rulings of the trial
court If so they do not seem to refer to
any matter affecting the result of the case,
or to be material. As plaintiff's claim is
still unpaid no question of subrogation has
arisen. The authorities relied on by appel-
lant do not seem to sustain its contention.
'Hie assignments of error are overruled,
and the Judgment is aflkmed.
USSPm. am
STETLEB T. NOBTH BBANGH TBANSIT
CO. et al
(Supreme Court of Pennsylvania. Hay 22.
1917.)
1. LiANDLOBD AND TENANT €=386(1)— PROVI-
SION FOB Renew Arr—CoNSTBUCTioN—"FiBST
Phiviijcoe."
Under a lease of a park to a transit com-
pany contemplating its use and improvpment as
a place ot public amusement and providing that
if. at its expiration, the lessee sliould desire io
re-lease the premises for an additional tea
years, it should have the first privilege of re-
leasing at a rental and upon the terms therein
contained, the lessee had an absolut>^ rigiit to
renew the lease for another term, irrespective of
the wishes of the lessor.
2. Landlobd and Tknant ®=386(1)— Renxw-
AI, PBOVIBION— CONSTBUOnON.
Where the provisions of a lease relating to
Its renewal are uncertain the tenant is favored
and not the landlord, for the reason that the
latter, having the power of stipulating in his
own favor, has neglected to do so, and that every
man's grant is to be taken most strongly against
himBeif.
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STETLBR Y. NORTH BRANCH TRANSIT (X).
981
8. I/ANDLOED AND TENANT «=>91— RENEWAt
OF Leasb— Possession.
Where a lessee having the right to renew
the lease for a second term exercised its right,
alter giving the landlord reasonable notice of its
desire to do so, it vfaa entitled to retain posses-
sion of the nroperty.
Appeal from Court of Common Pleas, Co-
lombia County.
laectment by Edward J. Stetier against
the North Branch Transit Company and an-
other. Fr<Hn a Judgment for defendants, on
case stated to determine the construction of
a lease, plaintiff appeals. Affirmed.
Argued before BROWN, C. J., and MES-
TREZAT, POTTBB, FBAZER, and WALr
UNO, JJ.
John G. Harman, of Bloomsburg, for appel-
lant Fred Ikeler, of Bloomsburg, for appel-
lees.
POTTER, J. This la an appeal from a
Judgment entered upon a case stated, in an
action of ejectment, In which Edward J. Stetr
ler Is plaintiff and the North Branch Transit
Company and A. W. Duy, receiver of the
North Branch Transit Company, are defend-
ants.
[1] From the case stated. It appears that
the transit company, as successor to the les-
see, was In possession of a tract of land In
Center township, Columbia county, known as
"Columbia Park." The lease contemplated
the use and Improvement of the land as a
place of entertainment and amusement for
the public, and It contained the following
clause:
"It is further agreed and understood that if at
the expiration of this lease the party of the sec-
ond part, its successors end assigns shall desire
to re-lease the said premises for a further period
of ten years it or they shall have the first priv-
ilege of re-leasing the same at the rental and
upon the terms herein contained."
The controversy turns upon the construc-
tion to be given to the words "first privilege"
In the above clause. Counsel for plaintiff
contends the words mean that at the end of
the ten-year term, the lessee has nothing
more than the first right to re-lease the prem-
ises for another term, provided the lessor was
willing at that time to lease to any one. The
court below, however, held that it was appar-
ent from the provisions of the lease that the
parties contemplated the use of the land for
a park for the entertainment of the public,
and that considerable expenditure for Im-
provements would be necessary. Under these
circumstances, when the lease was executed
the parties evidently felt that a renewal or
extension would probably be desired, other-
wise the clause in question would not have
been Inserted. It was clearly Intended for
the benefit of the lessee, and It should be so
construed as to preserve that benefit, tf it be
possible to do so. But as the court below
well says:
"If the plaintiff's theory as to the meaning
of the paragraph is to be accepted, it would, so
far as the lessee is concerned, become wholly
meaningless, and might as well have been omit-
ted."
[2] We are not to suppose that the parties
Intended such a result An Inspection of the
clause shows that If the word "first" had not
been used In connection with the word "privi-
lege," the right of the lessee to a renewal
could not be questioned. Did the privilege
of renewal then become any the less a privi-
lege by being termed a "first" privilege? The
expression Is awkward and perplexing, but
we think It Is more consistent with the ex-
pressed purpose of the lease to hold that the
renewal was dependent upon the desire of the
lessee, and that the expression of that desire
was to give to It the first privilege of re-leas-
Ing, that Is, priority of privilege over any one
else. The thought was not well expressed,
but we feel that the words "first privilege"
in this connection should not be so construed
as to nullify a valuable right In the hands
of the lessee, which, under the paragraph afi
a whole, was evidently Intended to be creat-
ed. It was of no possible use to make provi-
sion merely that one party should enjoy a
certain right, If the other party should con-
sent thereto. The settled rule of construc-
tion Is that any uncertainty as to the mean-
ing of a clause In a lease Is to be determined
In favor of the lessee. The principle was
stated In Kaufmann v. Ldggett, 209 Pa. 87,
page 97, 58 AtL 129, page 132 [67 L. R, A. 353,
103 Am. St Rep. 988], where we said:
"As a general rule, in construing nrovisions of
a lease relating to renewals, where there is any
uncertainty, the tenant is favored, and not the
landlord, because the latter having the power
of stipulating in his own favor, has neglected
to do so, and also upon the principle that every
man's grant is to he taken most strongly against
himsclt"
A case Involving the same question was be-
fore the Superior Court in McDonald v. Kar-
peles, 61 Pa. Super. Ct 496. The lease there
under construction was for a term of two
years, and provided that the lessee should
have 'the first privilege to rent the building
for a further term of three years." It was
held that the lessee was entitled to remain In
possession, under the same terms and condi-
tions, for the additional three years, If he so
desired and gave due notice of his Intention.
Henderson, J., said 61 Pa. Super. Ct 498:
"The use of the word 'first* does not, we think,
change the significance of the option. If the
word were omitted, it is necessarily implied
that the tenant was to have the first privilege
allowed by the clause in the lease, that is, he had
the option to the exclusion of everybody else
to rent the building for the further term of three
years. It vrill be observed, too, that by the pro-
viso he is to exercise the privilege three months
before the expiration of two years. What priv-
ilege was he to exercise? Certainly the right to
the extended term. This could hardly be called a
privilege to be exercised if it were at the op-
tion of the landlord to increase the rent to an
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982
101 ATLANTIC REPORTER
(Pa.
amount vUch would be prohibitive to the ten-
ant"
la the case at bar, every contiogency was
provided for, in tbe event that the lessee
should desire an extension of the lease. The
length of the additional term was fixed, and
the amount of the rental and the other condi-
tions were to be tbe same aa daring the first
period.
[3] We agree with the conclusion reached
by the court below, that tbe lessee bad tbe
right to re-lease tbe premises for a second
term of tea years, and that it exercised its
right after giving to the owner of tbe land
reasonable notice of its desire to do so. Hav-
ing complied with tbe terms providing for
tbe re-leasing of tbe premises, tbe defendant
was entitled to retain possession of tbe pto^
erty.
The judgment is affirmed.
(2S8 Pa.in)
SHATFEK T. PENNSYLVANIA R. <30.
(Supreme Court of Pennsylvania. May 22,
191T.)
Rauaoadb «=>350(13) — Ijtjvaj on Tback —
Ck>NTBIBXJTOBY NEGUOBNCB — QUESTIONS
rOB JUBT.
In an action against a railroad to recover
for the death of plaintiff's husband killed by a
train while driving an automobile over a grade
crossing, held, on the evidence, that decedent
stopped before crossing the track and looked
makes his contributory negligence a question for
the jury.
Appeal from Court of Common Pleas,
(Columbia County.
Trespass by Lydla J. Shaffer against the
Pennsylvania Railroad Company, to recover
damages for tbe death of her husband. Ver-
dict for plaintiff for $8,S00, and judgment
tbereon, and defendant appeals. Attlrmed.
Argued before BROWN, C. J., and MES-
TREZAT, potter, FRAZER, and WALr
LINO, JJ.
H. M. Hinckley, of DanviUe, and C. B.
Waller and L. E. Waller, both of Wilkes-
Barre, for appellant. Fred Ikeier, of Blooms-
burg, E. C. Ammerman and C. A. Small, of
Bloomsburg, for appellee.
POTTER, J. One question only is rais-
ed by this appeal: Was the evidence of
contributory negligence upon the part of tbe
decedent so clear that tbe court should have
directed a verdict in favor of the defendant?
It appears from the testimony that Isaac
Shaffer, the plaintifTs husband, drove an au-
tomobile truck up to a public crossing of the
defendant's railway and stopped with the
front of the truck about 6 feet distant from
the rail. His seat was some 7 feet from the
front of tbe truck, so that tlie point at which
he was sitting was about 13 feet from tbe
rail, or a little over 16 feet from the
middle of the track. These distances were
not accurate measurements, but were care-
ful estimates. Mr. Shaffer's brother, who
stood on tbe running board of tbe machine
beside him, testified that at that point he
had a view up tbe track of about 300 feet,
and that he looked, but saw no train in sight.
The automobile was then started ahead, but,
before it cleared tbe track, it was struck by
a locomotive running at high speed, and
Isaac Shaffer was killed. The testimony
showed that in ai^roaching the crossing from
the south, as did Mr. Shaffer, tbe view up
the track was obstructed by tbe station build-
ing, so that, at a point 15 feet from tbe cen-
ter of tbe track, there was a view of tbe
track in tbe direction from which the en-
gine came, for a distance of about 806 feet;
while, from any point in the highway less
than 16 feet from the center of the track, a
view of over 1,600 feet could be had. When
the automobile came to a stop, its front aid
was advanced 6 or 7 feet within the 15-foot
space, and presumably was as near to tbe
rail as tbe driver of tbe car thought it pru-
dent to go. Counsel for appellant do not
contend that the automobile should have
been driven any nearer to the track, but they
earnestly argue that Mr. Shaffer had reached
a point where, by leaning forward in his seat,
be could have very much extended his view
of tbe trade, and could have seen the on-
coming engine. This contention is based up-
on close arithmetical calculation as to the
precise position in which tbe car stood, and
upon accurate measurements made after tbe
accident. But tbe points were not marked
upon the ground at tbe time, and it does not
appear that Mr. Shaffer knew tbe exact posi-
tion of his car with respect to the oilarging
of bis view up tbe track, and we do not feel
that tbe trial judge could have bdd, as a
matter of law, ttaat Mr. Shaffer knew the
precise distance at which tbe fr<Mit of bis car
stood from the tra<&, or that by leaning tot-
ward at that instant he could have had tbe
longer view. The evidence shows that he
came as near to the track, before stopping
his car, as was reasonably safe. This is not
questioned by counsel for aK)eilant. Accord-
ing to tbe testimony of the brother, no en-
gine was in sight from that point, and Mr.
Shaffer started his automobile, which bad
less than 6 feet to move forward, before com-
ing within the line of danger in case of an
approaching train. As the automobile ad-
vanced, almost immediately the locomotive
was discovered, bearing down upon It, and a
witness testified that Shaffer then threw his
brakes on and tried to stop. Whether he did
this, intending to back off, or whether he
stalled his engine by applying his brakes too
suddenly to a slowly moving car, the result
was that the automobile remained on the
track, and was struck with terrific force by
the locomotive. We feel that the circum-
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WILSON TP. ▼. EASTON TRANSIT 00.
983
stances attending tbls aoddent, and the con-
duct o£ Mr. Sbaffer with reference to them,
afforded plausible ground for a variety of In-
ferences, so that the verdict of a Jury was
the only proper means of determining wheth-
er Mr. Shaffer exercised the degree of care
which a reasonable and prudent man would
have exercised under the circumstances.
The conclusions to be drawn from the evi-
dence are not free from doubt, and in such
case the court should not decide the question
as one of law. It may be that, when the
driver stopped his automobile at a point
where be liad a view of bat little more than
300 feet up the track, he should have leaned
forward, or gone forward, to get a more ex-
tended view, but we do not feel that, under
the circumstances, the court would have been
Justified in pronouncing upon his conduct in
that respect as matter of law. "Where a
driver has stopped at the usual place for
stopping, whether he should go forward in
advance of his team to a better place to IooIe
is a question to be determined by the circum-
stances of the particular case." Calhoun v.
Penna. E. B. Co., 223 Pa. 208, 300, 72 Atl.
566, 657. In the same opinion there appears
a citation from Ely ▼. Pittsburgh, Cincinnati,
Chicago & St. Louis R. R. Co., 158 Pa. 233,
27 Atl. 970, as follows:
"Stopping is opposed to the idea of negligence,
and unless, notwithstanding the stop, the whole
evidence showi Degligence so clearly that no oth-
er inference can • * • be drawn from it,
the coart cannot draw that inference as a con-
dnsion of law, bot [it] must send the case to
the Jury."
This principle Is applicable to the present
case, and Justifies the action of the court be-
low in submitting to the Jury the question of
contributory negligence upon the part of the
decedent
The assignments of error are overruled,
and the Judgment is afilrmed.
(258 F&. MS)
WILSON TP. v. EASTON TRANSIT CO.
(Supreme Court of Pennsylvania. May 22,
1917.)
1. Stbskt RAiLBOAns «=>7— Location— Con-
sent or Township.
The consent of a township is necessary to
the constrnction of a street railway therein.
Z, SiBEET RaiLROACS 4=340— LoOATION— CON-
SENT—ESTOPPEI..
Where a street railway in 1914 proceeded
to reconstruct its right of way in a township
over a route other than tliat dengnated by its
charter, and obtained from the Pnblic Service
Commission a certificate of public convenience,
and the township had appeared and approved the
general improvement, except as to certain de-
tails aa to which no appeal was taken, and the
railway thereafter expended a large amount on
the improvement, the township was estopped
from enjoining its completion on the ground
that it had not given its consent thereto.
3. Street Railroads *=»57(6) — Location —
Consent of Township— Laches.
In such case, where the township's bill for
an injunction was not filed until about two
jrears latw, its laches precluded it from obtain-
ing an injuncticm.
4. Street Railroads €=»40— Construction—
Removai..
Township officers who have knowingly and
without objection permitted a street railway to
be constructed in the township cannot compel
its removal.
Appeal from Court of Common Pleas,
Northampton County.
Bill in equity for an injunction by Wilson
Township against the Easton Transit Com>
pany. From a decree on final hearing re-
fusing an Injunction, irialntifl appeals.
Ai&rmed.
Argued before MBSTREZAT, POTTER,
MOSCaZISKEIR, FRAZER, and WALLINO,
JJ.
J. W. Fox, B. J. Pox, and Albert P. Kahn,
all of EastcMi, for appellant. H. J. Steele
and Asher Seip, both of Easton, for appellee.
WALLINO, J. This blU was filed to re-
strain defendant from relocating its railway
in plaintiff township. The Easton, Palmer &
Betlilehem Street Railway Company (now
merged In the defendant company) was char-
tered in 1897, and in 1898 constructed and
has since operated a street railway extend-
ing westerly from Easton through the adjoin-
ing township of Palmer and thence to Bethle-
hem. The township gave its written con-
sent providing, inter alia, that the railway
company "may construct and maintain its
railway iq>on private land and private rights
of way along such portions of its charter
route and al<mg eadx portions of its extended
dianged and modified route where said rail-
way company may deem it necessary and con-
venient to avoid sharp carves, steep grades,
irregularities of surface, dangerous construc-
tion, dangerous crossings or damage to pri-
vate property." At the place here in ques-
tion the railway was constructed on private
property, along and immediately adjoining a
public road, and intersecting the Easton &
Northern Railroad by an overgrade crossing.
In 1913 that part of the township adj<dning
tiM dty and extending west to the east line
of n public highway, known as the "Glendon
road," was duly constituted a township of the
first class, under the name of "Wilson town-
ship." The railway as originally constructed
was drcnltous and the overgrade crossing un-
sightly and deoned unsafe. In 1914 defend-
ant, to shorten and Improve its line, took
steps to reccHistruct the same for a distance
of about 4500 feet, on a new right of way
over private property and to the north of its
former location, a part of the new right of
way tielng in Wilson township, but not there
extending over or upon any public road;
and to be so reconstructed as to cross the
railroad by a subway or undergrade cross-
ing, located 440 feet north of the old over-
grade crossing. This improvement would t>e
a great advantage to the defendant tind the
public, and to secure the same defendant
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984
101 AThAimiO REPORTER
(Fa.
sought and obtainecl from the Public Service
Commis.5ion a certificate of public conveu-
ience, permitting the undergrade crossing,
which is intended to carry the railroad over
the 6Iend(Hi road and the street car tracks
at the same point ; the eastern approach of
the latter being In Wilson township. Before
granting the certificate, the commission gave
a full hearing to the parties in interest, at
which plaintiff appeared and Joined with all
present In a stipulation stating, in effect,
that it was desirable that the present over-
grade crossing should be abolished, and that
the proper point of crossing the railroad
track was the place mentioned In the petition
of the street railway company as above stat-
ed, and that the only question in controversy
was the method of the proposed eastern ap-
proach. No appeal was taken from the order
of the commission, made May 4, 1916, grant-
ing the certificate; and defendant relying
thereon expended over $40,000 in the pur-
chase of right ot way and for material and
work on said improvement, of whidi plain-
tiff had knowledge and made no objection un-
til the filing of this bill, August 17, 1916, and
therein for the first time alleged that its
consent for defendant's improvement bad not
been granted. The court below awarded a
preliminary Injunction, but after a full hear-
ing entered a decree dissolving the same,
from which this appeal was taken.
[1-3] The opinion of the chancellor em-
braces requests of the respective parties for
findings of law and facts, and answers there-
to, and also his independent findings and
discussion, and in substance treats the case
as on final hearing. Els conclusion was that
plaintiff had waived its right to successfully
interpose the objection that the township
had not formaUy given its consent to the re-
location of the street railway. We agree
with that conclusion. Plaintiff deliberately
stipulated before the Public Service Com-
mission that its only objection to defendant's
change of location was as to the method of
constructing the eastern aiH;>roach to the new
subway. In that entire proceeding nothing
was said about lack of municipal consent;
and thereafter defendant was permitted to
incur large expenditures on the faith of its
right to make the improvement, and now
plaintiff's belated attempt to prevent the com-
pletion of the work, to the damage of the de-
fendant and the public, comes too late. The
consent of a township is necessary to the
construction of a street railway therein and
was ben given about 20 years ago. We
deem it unnecessary to dedde whether that
consent would justify sudi a deviation from
the original location as is now in question,
for In our opinion plaintiff's laches and the
position taken before the Public Service Com-
mission constitute such an implied assent to
the new location as precludes the township
from obtaining the aid of a court of equity
to prevent it In 16 Am. & Eng. Etacy. of
Law (2d Ed.) page S66, the rule is stated thus:
"A suitor who by ladiea has made it impos-
sible for a court to oijoin his adversary without
inflicting great injurr upon him will be left to
pursue nis ordinary legal remedy. This rule Is
especially applicable where the object of the in-
junction is to restrain the completion or use of
public works, and where the granting of the in-
junction would operate injuriously to the public
as well as to the party against whom the injunc-
tion is sought."
This la quoted with approval by present
Chief Justice Brown in delivering the opin-
ion of this court in Stewart Wire Company
V. Lehigh Coal & Navigation Company, 203
Pa. 474, 478, 53 Ati. 352.
[4] Township (Acers, who have knowingly
and without objection permitted a street rail-
way to be constructed In their municipality,
cannot compel its removal. Penna. R. R.
Co. V. Montgomery County Pass. Ry., 167 Pa.
62, 31 Atl. 468, 27 L. R. A. 766, 46 Am. St
Rep. 669; Maust v. Penna. & Maryland
Street Ry. Ca, 219 Pa. 568, 69 Atl. 80. Plain-
tiff, at the hearing before the Public Service
Commission, having cmceded the propriety
of defendant's change of location and stipu-
lated that the only question was as to the
method of construction of the approadi to
tlie subway, cannot In this proceeding set up
its own alleged lack of consent to sndi
change, especially after defendant has acted
upon the faith of the position taken by plain-
tiff before the couunlssian. One who has as-
sumed a i)osltlon in a legal proceeding, which
has been acted upon by the opposing part;,
may not thereafter in another proceeding as-
sume a different position to the prejudice of
such party. Clear Springs Water Co. v.
Catasauqua Borough, 231 Pa. 290, 80 Atl. 666;
Thomas t. Heger, 174 Pa. 345, 34 AtL 56&
We have followed the court below in con-
siderlug this case as on final hearing; how-
ever, it would have been better practice had
coimsel filed with the chancellor a stipula-
tion to that effect, so that a decree nisi might
have been entered and the case disposed of
by the court In banc.
The assignments of error are overruled,
and the decree is affirmed at the costs of ap-
pellant
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HABBOUK T. ORAHAM
985
<26S Fa. tm
HARBOtJN et aL t. GRAHAM et al.
(Soprano Court of Pennsylvania. May 14,
1917.)
1. Dkeds «=»208(2) — Vauditt — Dhjvebt—
Evidence.
On a bill in equity to Itave deeds declared
void and for a reconveyance, evidence held to
show that there had been no actual delivery of
the deeds to the pantees in the grantor's life-
time, but that they had been retained in his
possession and under bis control.
2. CaNOKIXATIOR of InBTKUIIBIITS «S34 —
— DE1D8— VAUDrrr.
Plaintiffs in a bill in equity to have deeds
4}eclared void and for a reconveyance to them
as the grantor's heirs were entitled to such re-
lief, where the evidence did not show a delivery
of the deeds to the grantees in the grantor's life-
time.
Appeal from C!oTirt of Common Pleas, EIrle
County.
Bill In equity by Battle Harroun, suing for
herself and others, against William E. Gra-
liam and others, to have two deeds declared
void and for a reconveyance. From a de-
cree for plaintiffs, defendant Graham ap-
peals. Affirmed.
Bill in equity to have two deeds declared
null and void and for a reconveyance. The
facts, as found from the evidence, were as
follows;
1. Warren Graham died in the city of Brie
on the 12th day of August, 1914, leaving sur-
viving him as his only heirs at law, William E.
Graham, a son ; Rhea McEldowney and Carl
Campbell, children of Catherine Campbell,
daughter of the said Warren Graham, who died
prior to the death of the said Warren Graham ;
Hattie Harroun, Helen Knupp, Joseph Otto, and
George Otto, children of Elizabeth Otto, daugh-
ter of the said Warren Graham, who died prior
to the death of the said Warren Graham.
2. That on the 6th day of August, 1914,
Warren Graham signed and acknowledged a
deed, conveying to William E. Graham, the land
in Waterford township, described in the third
paragraph of plaintiffs bill, the consideration
named therein being $1 and love and affection,
and on the same date signed and acknowledged
another deed to WiUiam E. Graham and Joseph
Otto for the lot in the city of Erie, also describ-
ed in the third paragraph of plaintiffs' bill, the
consideration named in said deed being $1 and
other valuable considerations. So far as it ap-
pears no consideration was paid for the execu-
tion of either of said deeds. Both of these deeds
were prepared by Louis B. Jones, Esq., attor-
ney for the said Warren Graham, and were ac-
knowledged by the said Warren Graham before
the said Louis B. Jones, who was a notary pub-
lic in the presence of Mr. E. J. Grace, who had
been called in to witness tlie signature of War-
ren Graham thereto, the said Louis B. Jones
and E. J. Grace being the subscribing witnesses
to the said deeds.
3. That at the time the deeds were executed,
Warren Graham, the grantor therein, was up-
wards of 80 years of age, seriously sick, con-
fined to his bed, and scarcely able to talk, and
from that time gradually grew worse until his
death on the 12th day of August, 1914, six days
afterwards. That from the time the deeds were
executed nntil he died, he was not out of the
room where the deeds were executed.
4. That at the time the deeds were executed
the said Warren Graham was of sound and dis-
posing mind, memory, and understanding.
6. 'That neither the said William E. Graham,
nor Joseph Otto, the ^antees were present at
the time of the execution of the said deeds and
knew nothing of the transaction until after the
death of the said Warren Graham.
6. That there was no actual delivery of the
deeds in question by the grantor to the grantees
named therein in the lifetime of the grantor,
but th^ were retained in the possession and un-
der the control of the grantor.
7. That on August 18, 1914, letters of ad-
ministration on the estate of the said Warren
Graham were duly issued to the said William
E. Graham, and on the same date the deeds were
left for record in the recorder's ofiSce.
8. From the weight of the evidence it app^rs
that after the said deeds had been signed and
acknowledged, they were, by direction of the
said Warren Graham, the grantor, placed in a
tin box, in which he kept his papers, which was
at the time on a dresser in his bedroom and
the box was locked and the key given to his
housekeeper Mrs Bobbins. That the box re-
mained in the bedroom in the possession of the
said Warren Graham until after his death,
when it was carried to the home of Mrs. Minnie
Grace, and kept until the day of the funeral,
when the box was opened by William E. Gra-
ham, in the presence of Carl Campbell, and the
two deeds in question were then and there found
in the box and the box was locked and left in
the poBsessicm of Mrs. Grace.
[1, 2] The court accordingly found the fol-
lowing conclusions of law:
1. That the deed of Warren Graham to Wil-
liam B. Graham, dated August 6, 1914, record-
ed in Deed Book No. 208, page 248, and the
deed from Warren Graham to William E. Gra-
ham and Joseph Otto, dated August 6, 1914,
and recorded in Deed Book No. 208, page 249,
in the recorder's office of Erie county. Pa., are
null and void for want of delivery.
2. That the plaintiffs are entitled to a decree
setting aside the said deeds so made by War-
ren Graham and ordering the said William E.
Graham to reconvey the land described in the
deed recorded in Deed Book No. 208, page 248,
to the heirs at law of Warren Graham, deceased,
and ordering the said William E. Graham and
Joseph Otto to reconvey the property, described
in the deed recorded in Deed Book No. 208, page
249, to the heirs at law of the said Warren
Graham, deceased, and that the defendant Wil-
liam E. Graham be ordered to pay the costs.
A decree was filed In accordance with the
findings, exceptions thereto dismissed, and
a final decree entered. The defendant Wil-
liam E. Graham appealed. Errors assigned
were In dismissing exceptions and the decree
of the court.
Argued before MESTREZAT, POTTER,
MOSCHZISKER, FRAZER and WAL-
LING, JJ.
John B. Brooks and Charles H. English,
both of Brie, for appellant Ij. B. Torry, of
Ei'le, for appdlees.
PER CURIAM. There was sufficient erl-
dence to warrant the learned chancellor In
finding, as he did, "that there was no actual
delivery of the deeds In question by the
grantor to the grantees named therein In the
lifetime of the grantor, but they were re-
tained In the possession and under the con-
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101 ATLANTIC BBPORTBB
(Pa.
trol of the grantor." This was the control-
llng question In the case, and, having been
found In £ayor of the plaintiffs, a decree was
properly entered against the defendants.
Decree affirmed.
QSSPaLltt)
FEUSSNER T. WUJSES-BABRE ft H. RT.
C».
(Supreme Court of PennarWania. May 22,
1917.)
1. Mabhsb and Sebtaitt 4=9286(18)— Aotion
rOK iNJUBT — Saik Apflianoxs Qxtestion
fob Jubt.
In an acdon against a railroad for the death
of plaintiff's husband while employed in shift-
ing freight between cars by means of a skid
with the ends overlapping the floors of the cars
from 3 to S inches, held on the evidence that
whether the slud was a reasonably safe and
proper one for such purpose was for the jury.
2. Masteb awd Skbvamt «=»288{2)— Action
rob injubt— assuuftioh of kisk— ques-
tion fob jubt.
On evidence in such action held, that wheth-
er the risk of injury from its use was assumed
by the employ^ was for the jury.
8. Masteb and Sbbvant «=i>222(o>— Mastsb's
LlABILITT— ASSUICFTION OF UlSK.
A servant is justified in obeying the mas-
ter's instructions, unless the method of per-
formance thereby required renders the work
obviously and imminently dangerous.
4. Masixb AMD Sebvant 4=9222(3)— Dkfec-
TIVB APPUANCKB— ASSUKPTION OF RiBK.
A skid which bad been used for a long time
between cars without fastenings to hold its
ends to the car floors could not be said to l>e
BO imminently dangerous as to require an em-
plojt to set off his judgment against that of
his superior and refuse to obey an order to
place and use the skid in the ordinary way.
Appeal from Conrt of Common Pleas, Lu-
seme County.
Trespass by Margaret Feussner against the
WUkes-Barre & Hazleton Railway Company
to recover damages for the death of her hus-
band. Verdict for plaintiff for ^,095 and
judgment thereon, and defendant appeals.
Affirmed.
Argued before BROWN, 0. J., and MES-
TRE:£AT, potter, FRAZER, and WAL-
UNG, JJ.
John H. Blgelow, of Hazleton, and John
T. Lenahan and R. B. Sheridan, both of
Wilkes-Barre, for appellant Abram Salsburg,
Natlianlel Jacobs, and Mose H. Salsburg, all
of Wllkes-Barre, for appellee.
FRAZER, J. Defendant appealed from a
judgment entered on a verdict in favor of the
widow and children of Adam Feussner for
bis death resulting from Injuries sustained
while in defendant's employ. At the time of
the accident, Feussner was engaged as an ex-
tra brakeman on a freight car operated over
defendant's electric railway between Wllkes-
Barre and Hazleton. Between the terminals
is located a station known as the George- '
town Freight Transfer, at which place de-
fendant's tracks connect with tracks of the
New Jersey Central Railroad. At this point
Is a switch or siding for the transfer of
freight to and from the two lines. In receiv-
ing freight, the car of the New Jersey Cen-
tral road is at times coupled to defendant's
train ; if, however, the amount of freight for
transfer is not large removal is made direct-
ly from the car of one company to tliat of the
other. In making transfers In the latter
manner, the cars to and from which goods
are to be removed are placed alongside of
each other and a wooden platform, generally
referred to aa a "bridge" or "skid," laid trom
the door of one to the door of the other, over
which the trainmen either carry or haul the
freight on a two-wheeled hand truck. The
skid is made of planks 5 feet long, 30 inches
wide, and an Inch and a half thick, bolted
together, and has been in use at Uiat station
for at least five years, and is without cleats
or catches at the ends to prevent slipping.
When in use for transfer puriKises the bridge
is from 4 to 4% feet above the ground, and
owing to the distance between the cars as
they stand on adjoining tracks its ends over-
lap the sides of the cars to the extent of 3
to 6 inches, one end resting about 4 inches
higher than the other on account of differ-
ence in elevation of the tracks of the two
companies. On the day of the accident de-
fendant's train was In charge of the conduc-
tor, who directed its operation and gave or-
ders to the brakeman. Upon reaching th»
Georgetown transfer a central railroad car
containing freight to be transferred to de-
fendant's car for shipment to Hazleton was
standing on the switch. The conductor hav-
ing placed the bridge In position directed
Feussner to transfer the merdiandise con-
sisting in part of a barrel of whisky weigtiing
about 460 pounds. The conductor assisted
in loading the barrel on the truck and In-
structed Feussner to walk backwards over
the bridge, for the purpose of holding it in
place by his weight and prevent slipping as
the wheels of the truck came in contact with
the end of the planlt. In complying with
these instructions and while attempting to
pull the truck onto the skid the end slipped
from the edge of the car and fell to the
ground carrying Feussner, the truck, and the
wliisky with It, and inflicting injuries upon
him, which subsequently resulted In bis
deatlL
The several assignments of error raise the
same question, namely, whether the trial
judge erred in submitting the case to the
jury. Although the statement of daim
diarged negligence in several respects, the
case finally resolved itself into the questions
whether the platform furnished deceased was
a reasonably safe and proper one for the pur-
pose used, and whether the risk was one as-
sumed by deceased.
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TEVaSNKR Y. WTLKCS-BABRB A H. BY. CO.
987
[1 , 2] Defendant arpies the evidence shows
the skid furnished was the usual and custom-
ary appliance In use for such work, and that
the testimony to the contrary was a mere
sdntlUa, not warranting submission of the
question of defendant's uegUgence to the Ju-
ry. A number of witnesses on behalf of de-
fendant testified the skid was Identical with
those in general use, and that the use of
-cleats or other attachments to prevent slip-
ping when being used as In this case was
not customary. One witness, however, stated
on cross-examination, in answer to a question
as to the usual manner of securing skids to
prevent sliding, that "there are a dozen and
one different ways, but we don't use any,"
and admitted that around transfer stations
he bad seen skids with claws or hooks at-
tached to prevent slipping. Another witness
for defendant testified that at Ashley station,
on defendant's road, freight was transferred
by use of a platform with a elaw or hook at^
tachments at the ends. A witness for plain-
tiff, with long experience In handling freight,
said in transferring freight frcHn car to car
the general practice was to fasten the skids
at eadi end by attaching to them either
spikes or cleats. The testimony of another
witness, an expert, was to the same effect,
and that to use the platform as was done In
the present case without Its being made se-
cure was dangerous. True, this witness ad-
mitted on cross-examination to an experience
confined to terminal stations and that he was
without knowledge of the practice or custom
at way stations. On the whole there was
sufficient evidence bearing upon this question
to warrant submission to the Jury, and this
was done in a fair charge in whldi defend-
ant's rights were fully protected.
[3] The finding of the jury that defendant
faUed to furnish deceased with a reasonably
safe appliance in accordance with the usual
and customary practice In connection with
the transfer of freight from car to car under
similar conditions constituted a finding of de-
fendant's negligence, and the remaining ques-
tion is whether, notwithstanding such evi-
dence, the risk was an obvious and apparent
one assumed by plaintiff as incident to the
performance of his work. Deceased was at
the time directly under and subject to the or-
ders of the conductor in charge of the train,
who was therefore the person to whose in-
structions he was bound to conform within
the meaning of the act of June 10, 1907 (P. L.
523) ; Alnsley v. Pittsburgh, Cincinnati, Chi-
cago & St Louis Ry. Co., 243 Pa. 437, 00 AtL
120. The skid was put in place by the con-
ductor, who also assisted deceased in loading
the barrel on the hand truck and directed
him to walk backward that his weight might
bold the skid In place, and while engaged In
performing the work assigned to him in the
manner directed by his superior the accident
hapi)ened. Deceased was Justified in obeying
the instructions received, unless the method
of performance required by the order render-
ed the work obviously and Imminently dan-
gerous. The rule in such case was stated in
WllUams V. Clark, 204 Pa. 416. 418, 64 Aa
815, SIS, aa follows:
"If the master gives the servant to under-
stand that he doea not consider the risk one
which a prudent person should refuse to under-
take, the servant has a right to rely upon his
master's Judgment, unless his own is so clearly
opposed diereto that, in fact, he does not rely
upon his master's opinion. A servant is not
called upon to set up his own unaided judgment
against that of liis superiors, and he may rely
upon their advice and still more upon their or-
ders, notwithstanding many misgivings of his
own. The servant's dependent and inferior po-
sition is to be taken into consideration; and if
the master gives him positive orders to go on
with the work, under perilous circumstances,
the servant may recover for an injury thus in-
curred, if the work was not inevitably and im^
minentiy dangerous."
[4] In view of the testimony that the bridge
in question had been used for the same pur-
pose without fastenings for a considerable
period of time, it cannot be said that its use
on this occasion was so imminently danger-
ous as to require the servant to set up his
Judgment against that of his superior and re-
fuse to obey the order given; the question
was accordingly a proper one for the Jury.
Collins V. Philadelphia & Reading By. Co.,
244 Pa. 210, 90 AU. 575.
The Judgment is affirmed.
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988
101 ATLANTIC REPORTER
(Pa.
(2S8 Pa. 293)
McHALE y. TOOLB et al.
(Sapreme Court of Pennsylvania. May 22,
1917.)
1. Guts «=>82(1)— Gut Causa Mobtib— Dk-
uveet— sunpioilbncy of evidence.
On a bill in equity to require defendant to
pay over money claimed by her as a gift causa
mortis from plaintiff's decedent, evidence hetd to
show decedent's intention to retain control of
the fund during her lifetime, and no complete
delivery.
2. Gifts «=>59— Gifts Causa Mortis— Com-
leuflation of dsath.
It is essential to a gift causa mortis that
it should have been made in contemplation of
death.
5. Gifts <8=>62(1)— Gifts Causa Mobtis— Dk-
LIVEBT.
It is essential to a gift causa mortis that
there be a complete delivery of the property or
fund given.
4. Gifts $=»11, 41, 57— Gifts Inter Vivos—
Delivbxt.
To constitute a valid pift a present title
must vest in the donee, which in the case of a
gift inter vivos is irrevocable.
6. Girrs «=>75— Guts Causa Mortis— Tttlb
— Revocatiow.
To constitute a gift a present title must
vest in the donee, which in the case of a gift
causa mortis is revocable only upon a recov-
ery of the donor.
Appeal from Court of Common Pleas, Ln-
zeme County.
Bill in equity by Mary McHale, adminis-
tratrix, against Margaret Toole and another
to require the payment of a sum of money
alleged to be held for the use of plaintiff's
decedent From a decree for plaintiff, de-
fendants appeal. Appeal dismissed.
Argued before BBOWN, C. J., and MES-
TREZAT, POTTER, FRAZER, and WAL-
LING, JJ.
William S. McLean, Jr., and William S.
McLean, both of Wilkes-Barre, for appel-
lants. John McGahren and R. B. Alexander,
both of Wilkes-Barre, for appellee.
POTTER, J. [1] This is an appeal from
the decree of the court below awarding to the
plalntifC, as administratrix of the estate of
Beezle McHale, a sum of money which had
been deix>sited by Be^le McHale In the
Miners' Savings Bank of Wilkes-Barre, but
which, shortly prior to her death, had been
transferred to an account In the name of
Margaret Q\>ole. The latter claimed the
fund as a gift causa mortis. From the facts
found by the court below it appears that
Beezle McHale was in falling health and de-
cided to go to a hospital. Desiring to pro-
vide for her exx)enses there from the money
in bank, and contemplating also a gift to her
friend, she, on January 28, 1916, accompa-
nied by Margaret Toole, went to the bank
with the bank book. She said to the bank
officer that she wished to have the name of
Margaret Toole added to the account, so
that in the future if she wished to draw any
money or send her for any money she would
have no trouble in getting it, and she added
that she wished the money to go to Margaret
Toole after her death. She then signed a
paper directing the name of Margaret Toole
to be added to the savings account and gave
her the same right to withdraw the money
which she herself possessed. She did not,
however, assign the fund to Miss Toole, nor
did she relinquish her ovni right to withdraw
the money. The trial Judge says:
"She realized that she might never get well,
and that she might soon die, but we cannot find
that she had any certain expectation of death
on account of her then existing illness. Her
thought was to make the money accessible at
any time during her life for her own uses, par-
ticularly for hospital expenses, without the ne-
cessity of personally presenting the l>ook her-
self at the bank. If she recovered from the
iliness, the entire purpose of the transaction
would be fulfilled and no pecuniary benefit
would accrue to her friend. If she died in that
illness, it was the intention that the friend
should enjoy whatever remained at the time
of her death aftw deduction of her expenses."
No lnteatl<A was apparent that any spe-
dflc amount of money should then be sur-
rendered to Miss Toole. After the transac-
tion at the bank, Beezle McHale went
immediately to the hospital, where she re-
mained until her death, which occurred
April 9, 1916. It appears, from the evidence,
that on March 31, 1916, Margaret Toole took
the passbook to the bank, and trans&rFed to
a new account in her own name the entire
balance, then amounting to |1,878.47. It
does not appear that Beezle McHale had any
knowledge of this transaction.
[2,3] The court below held that, if any
gift was made, it must have been upon Janu-
ary 28, 1916, and, with respect to that, it
found that two essential elements of a gift
causa mortis were lacking, namely. It was
not made in contemplation at the time of
death, nor was there complete delivery. The
evidence shows that Beezle McHale retained
the right to draw the whole of the money, up
to the time of her death, and, that being the
case, the title to the fund remained in her.
[4, t] "In every valid gift a present title
must vest in the donee, irrevocable In the
ordinary case of a gift inter vivos, revocable
only upon the recovery of the donor in gifts
mortis causa." Walsh's Appeal, 122 Pa. 177.
187, 15 Atl. 470, 471 (9 Am. St Rep. 83, 1 U
R. A. 635), and cases there cited. The state-
ment given to the bank, tliat either might
draw the money, or that the survivor might
draw, did not in itself convey any title to the
defendant as owner of the fund. There was
nothing to indicate that If defendant did
draw the money, she could lawfully keep it
as her own, and, without such authorization,
no title by way of gift would pass. Upon
the facts as found, the conclusions reached
by the court below were fully justified.
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BURGESSES, ETC., ▼. HXTNTINGDON WATER SUPPLY 00.
989
The assignments of error are ovemiled,
the decree Is affirmed, and this appeal Is dis-
missed at the cost of appellant
(1E8 Pft. VO)
TUTHIIJL et al. v. SWEETINO.
(Supreme Court of Fennsylvania. May 14,
1»1T.)
1. Judgment ®=>743(2) — Rm Adjudicata —
DSCBEE IN Eqtjitt.
A decree in a proceeding in equity, not ap-
pealed from, is res adjudicata in a subsequent
action of ejectment relating to the same sub-
ject-matter and involTing tl^ same cause of ac-
tion.
2. Judgment «=3682(1) — Rks Adjudioaia —
Deceee in Equity,
In ejectment for an interest in certain oil
lands, where it appeared that defendant was in
possession of the rights claimed by plaintiffia
under an agreement with plaintiffs' predecessor
in title, a former decree in equity for such de-
fendant against plaintiffs' predecessor aa to all
questions raised in the ejectment action was
concluaive against plaintiffs, so that judgment
was properly directed for defendant.
Appeal from Court of Common Pleas, War-
ren County.
Ejectment by William E. Tnthlll and oth-
ers against George Sweeting to recover an
interest dalmed by plaintiffs in certain oil
lands. Directed verdict for defendant, and
from a judgment dladiarging plaintiffs' mie
for judgment n. o. v., they appeal. Affirmed.
Defendant had been in possession under an
agreement between him and plaintiffs' prede-
cessor in titie, I/udnda Sweeting. Plaintiffs'
predecessor in title bad undertaken to termi-
nate the agreement and to oust defendant
from the premises. Defendant thereupon
filed a bill against the said Ludnda >Sweetlng,
praying, inter alia, that Luclnda Sweeting be
restrained from interfering with him in pro-
ducing oil under the said agreement. In the
said proceeding the rights of the parties un-
der the agreement were adjudicated. Plain-
tiffs sought to raise the same questions that
had been decided In the suit In equity.
Argued before BROWN, C. J., and MES-
TBEZAT, MOSCHZISKER, FRAZER, and
WALLING, JJ.
D. I. Ball and D. U. Arlrd, both of Warren,
for appellants. C. E. Bordwell and A G.
Bldred, both of Warren, for appellee.
PER CURIAM, [1, 2] EYom the decree in
the equity proceeding Instituted by the ap-
pellee the defendant took no appeal. In this
proceeding there is the same subject-matter.
Involving the same cause of action, and the
correct conclusion of the court below was
that the issue is res adjudicata. The judg-
ment Is affirmed on the following from the
opinion overruling plaintiffs' motion for judg-
ment n. o. v.:
"We are of the opinion that the previous ad-
judication established the fact that as betw^n
the parties to that adjudication, Ludnda Sweet-
ing and George Sweeting, the makers of the
agreement in question, their rights had been
fixed, and the defendant had acquired a vested
title to produce oil and have the one-half there-
of so long as the said oil wells produced oil in
paying quantities. • * • These parties by
their original agreement contemplated that the
agreement shonld continue 'so long as the said
wells produce oil in paying quantities,' and that
the said Geor^ Sweeting, who is now defendant
here, should mvest money and furnish certain
fixtures for the property. The findings of fact
in the former case determined that money had
been expended by him in fitting^ up the oil wells
with necessary derricks, materials and machin-
ery. The agreement had become executed and
irrevocable in any event. It is unnecessary now
to inquire into the amount or character of the
investment. It was made upon the faith of the
agreement. The former adjudication settled
that, so far as the agreement in question is con-
cerned, it had become executed and irrevocable
between the parties. If so it is not an agree-
ment in our opinion that is affected by the death
of the grantor."
Judgment affirmed.
(26S Pa. 309)
BURGESSES, ETC.. OP BOROUGH OF
HUNTINGDON et al. v. HUNTINGDON
WATER SUPPLT CO. et al.
(Snnreme Court of Pennsylvania. May 22,
1917.)
1. MUNICIPAI. COKPOHATIONS «=»109— VAUDI-
TY OF Obdinance— Transcbiption IN Obdi-
NANCE Book.
Where a contract between a borough and
a water company executed pursuant to an ordi-
nance provided tiiat after ten years the borough
might purchase the company's plant at a price
to be agreed upon or to be fixed by a board of
arbitrators appointed to determine its value, the
company and the borough each to choose two ar-
bitrators and they to choose a fifth, a borough
ordinance reciting its election to purchase and
selecting two arbitrators was ministerial and
valid, though not transcribed in the ordinance
book.
2. Watebs and Wateb Coubses ®=>183(6) —
PuBOHASE or Watebwobks — Vauditt of
Obdinance— Appointment of Abbitbatobs
— Waiveb.
Where a borough passed an ordinance recit-
ing the exercise of its option to take over a
water plant, and the company, without objecting
to the ordinance because not transcribed in the
ordinance book, submitted its selling price, as
requested, it in effect conceded that the ordi-
nance legally authorized a demand for the ap-
pointment of arbitrators.
3. Watebs and Wateb Coubses «=5>183(5) —
Bobough's Pubchase of Watebwobks —
Agbeement as to Price.
Where a contract executed pursuant to an
ordinance gave a trarough the option to take
over the plant of a water company at a valua-
tion to be agreed npon by the parties or to be
fixed by arbitrators, and a borough ordinance
recited an intention to take over the plant and
requested the company to name its selling price,
which was refused, the borough had maae an
effort to agree as to the price of the plant, and
was under no duty to continue negotiations to
that end.
4. Watebs and Water Coxtbses «=>183(5)—
Bobough's Purchase of Waterworks —
Agreement as to Price— Evidence.
Where the finding that such parties to such
contract had not been able to agree was justified
by the evidence, the borough's suit in equity to
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990
101 ATLANTIC BEPORTBR
(Pa.
require the water company to appoint arbitra-
tors to fix the price was properly panted.
6. Waters and Watkb Courses «=»183(5) —
BoBoncu's PuBCHASE OP Wateb Plant —
Consent of Public Sebtice Commission.
Where the borough which had not elected
under such contract to take over the plant, but
had only appointed arbitrators to fix its value,
there was no merit in a contention that the
company was not required to appoint arbitrators
until the borouRh had obtained the consent of
the Public Service Commission to acquire the
plant
Moschzisker, J., dissenting.
Appeal from Conrt of ComiiKni Pleas, Hun-
tin£^on County.
Proceeding by the Burgesses and Town
Council of the Borough of Huntingdon, In
tbe County of Huntingdon, and others,
against the Huntingdon Water Supply Com-
pany and others. From a decree In equity
directing the defendant company to amx>lnt
arbitrators, It appeals. Affirmed.
Argued before BROWN, C. J., and MES-
TEEZAT, BTOSOHZISKEK, PBAZER, and
WALLING, JJ.
J<An O. Johnson, of WUkes-Barre, and
Samuel I. Spyker and John D. Dorrls, both
of Huntingdon, for appellant. W. M. Hen-
derson, H. W. Petrlkln, and H. H. Walte, all
of Huntingdon, for appellees.
MESTBEZAT, J. This is an aK)eaI by
the defendant, the Huntingdon Water Supply
Company, from a decree directing It to se-
lect two arbitrators to Join with two arbitra-
tors selected by the plaintiff, the borough of
Huntingdon, in the selection of a fifth arbi-
trator for the purpose of appraising the value
of defendant's water plant with a view to
Its purchase by the borough as provide by
the ordinance and contract of May 6, 1885.
Peter Herdlc and certain other persons
with whom he was associated, thereafter
to be incorporated as the Huntingdon Wa-
ter Company, Ltd., desired to construct In
the borough of Huntingdon waterworks for
the purpose of sui^lylng the borough and
Its tnbabitanta with water and, on May 6,
1885, the borough passed an ordinance con-
senting to and authorizing Heitilc and his
associates to Install and maintain a water
plant and system upon the conditions set
forth In the contract in writing made on the
same day between Herdlc and the borough.
The ordinance and contract contained the fol-
lowing provision :
"At the end of ten years the borough shall
have the riKht to purchase the waterworks, with
all their franchises, rights, and property, at a
price that may be mutually agreed upon. Should
the parties fail to agree on a price and terms, a
board of arbitrators shall be appointed to de-
termine the value of the waterworks, and on the
value being declared, the borough shall pay the
same, but the borough may decline to make the
purchase after the value shall have been declar-
ed, provided she shall and will pay the expense
of said arbitration. If no sale be consummated
the contract and right and franchise shall con- '
tinue to the said Peter Herdlc, Wa heirs and as-
signs, or to said company, its successors or
assigns, until final purchase, but the right to buy
Jhall mure to the borough every ten years, but
the borough shall in every case give twelve
months notice of their intention to purchase.
1- u^f* °f sale, the borough shall assnme any
liability of the company for waterworks then
existing, and the same shall be deducted from
the pnce, as part payment thereof. The pro-
posed corporation, or Herdic, bis heirs or as-
signs, if unincorporated, and the borough shall
each choose two of the aforesaid arbitrators, and
ttiese four shaU choose a fifth, all to be nonresi-
dents of the county of Huntingdon, and disin-
terested persons, two of whom shall be well
known and reputable hydraulic engineers;"
The rights of Peter Herdlc under the above
contract were Immediately assigned to the
Huntingdon Water Company, Ltd., which
constructed and operated the plant until Oc-
tober 16, 1900, when Its rights were assigned
to the Huntingdon Water SuK>ly Company,
the defendant.
The borough council passed a resolution
September 2, 1913, directing that defendant
be notified that the borough desired to ex-
ercise the right to purdiase, given It under
the contract of 1885, at the md of the ten-
year period, expiring May 5, 1916» and sudi
notice was served on defendant on October
26, 1913. On April 6, 1916, the councU pen-
ed an ordinance, approved April 8, 1915, and
transcribed Into the ordinance book May 10,
1916, authorising the president and secretary
of the council to enter Into a contract to
purchase defendant's plant and system at
such price as might be mutually agreed up-
on between them, provided such purchase
price should be approved by the council, and
provided further that If a purchase price
should not be agreed upon and approved by
the council, then the council should select two
arbitrators for the purpose of at^raislng and
valuing the plant according to the contract
of May 6, 1885, and authorizing the service
of notice upon the defendant cominny of
such selection, and requiring defendant with-
in ten days thereafter to select Its two arbi-
trators and certify the selection of the same
to the council with designation of the time of
meeting of the four arbitrators to choose
the fifth arbitrator. The ordinance also pro-
vided the means for payment to the water
company of the purchase price In case the
borough elected to purchase Its plant and
system. Pursuant to this ordinance, the bor-
ough, April 10, 1915, made a demand upon
the defendant to name a price for which It
would be willing to sell Its plant The sec-
retary of the defendant company replied to
this demand that, by a resolution of the di-
rectors of the company, the latter would sell
to the borough Its franchises, rights, and
property for $220,000 In cash. This offer
was declined and rejected by the unanimous
vote of the borough conndl. The council
then, April 24, 1915, adopted a resolution
selecting two arbitrators, as provided in the
contract of 1885, and notified the defendant
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BUKOESSES, ETG, t. HUNTIKODOK WATER SUPPLY CO.
991
to select two otbera within ten days and
designate a time of meeting of the four to
make a selection of the fifth. The defendant
refused to appoint arbitrators, and thereup-
on the plaintiff filed this bill which resulted
in a decree against the defendant company,
from which this appeal was taken.
[1] The several assignments of error are
considered by the appellant under the follow-
ing propositions, as the questions Involved
In the case: The ordinance of April 8, 1015,
was not a valid ordinance on April 26, 1915,
the date when the borough requested the de-
fendant water company to appoint appral»-
ers; the borough made no efFort to agree
with the water company uiwn a price at
which the water plant should be purchased ;
and the court did not have Jurisdiction In a
proceeding to take over a water plant or
system before the approval of the Public
Service Commission had been obtained.
It will be observed that the ordinance of
April 8^ 1915, bad not been transcribed on
April 26, 1915, when the borough demanded
that the defendant ai^ralnt Its arbitrators
under the ordinance and agreement of May
6, 1885. It Is therefore contended that for
this reason the action of the borough In
making the demand was without authority.
This contention overlooks the fact that the
demand for the appointment of arbitrators
was only one of the preliminary steps to be
taken by the borough In securing such Infor-
mation and data as were necessary in order
to enable the borough council to finally de-
cide whether It desired to purchase or not
to purchase the defendant's plant. It did
not necessarily Involve taking over the plant
by the borough ; that was a matter for fur-
ther consideration and determination by the
borough authorities. The borough bad pre-
viously given the twelve months' notice of
its Intention to purchase, as required by the
contract and ordinance of May 5, 1885. The
parties, as fonnd by the court, failed to
agree upon a price and terms for the pur-
chase of the plant, and, as required by that
ordinance and contract, the next preliminary
step to the purchase of the plant was the
giving of notice for the appointment of arbi-
trators. It is not clear that any ordinance
or resolution of council was necessary to au-
thorize the president and secretary of the
council to make this demand. It was au-
thorized by tbe ordinance and contract of
1885, and, at the expiration of the ten-year
period, the proper borough officials in giving
the notice would be simply carrying out the
authority conferred by the franchise ordi-
nance and contract of 1885. If, however, an
ordinance or resolution was required as fur-
ther authority by the borough officials to
make tbe demand of the defendant for the ap-
pointment of its arbitrators, such ordinance
or resolution would be tbe exercise of a min-
isterial and not a legislative or governmental
function on the part of the council, and
hence the ordinance or resolution would not
be required to be transcribed In tbe ordi-
nance book to give it validity in authorizing
tbe demand for the appointment of the arbi-
trators. Scfaenck, Howard & Galla^er v.
Burgess, Town Council, Borough of Olyphant
& Massey, 181 Pa. 191, 37 Atl. 258; Selt-
zlnger v. Borough of Tamaqua & Edison
Electric Illuminating Co. of Tamaqua, 187
Pa. 539, 41 Atl. 454 ; Kolb r. Tamaqua Bor-
ough, 218 Pa. 126, 67 AtL 44. The ordinance
and contract of 1885 specifically provide the
several steps to be taken before the purchase
of the water plant by the borough, and there-
fore fully authorized at least the preliminary
steps to be taken prior to the determination
by the borough to take over the water plant
The demand for the appointment of arbitra-
tors on the part of the defendant was simply
a ministerial act, authorized by the original
franchise ordinance and contract, and audi
demand might have been ordered to be made
by a motion or resolution which, under the
settled law of this state, is not required to
be transcribed Into the ordinance book. It
is true that the ordinance of April 8, 1915,
after authorizing the service of notice on the
water company requiring It to choose arbi-
trators, as provided in the contract of 188S,
empowers the president and secretary of the
council to enter into an agreement for the
purchase of the defendant's plant in the
event the council elected to make such pur-
chase, and also designates tbe manner in
which the money for paying the price should
be provided. But we are not concerned here
with any pert of the ordinance except that
which authorizes notice requiring the defend-
ant to choose its arUtrators. The legality
of the ordinance for any other purpose may
be tested when the question arises in an
effort to enforce the ordinance for the other
purposes for which it was enacted. It may,
however, be suggested In passing that the
ordinance has been transcribed and adver-
tised, and is therefore now effective for leg-
islative purposes under section 3 of Act May
23, 1893 (P. L. U3).
[2] It may well be doubted whether the de-
fendant by its conduct did not waive its right
to attack the validity of the ordinance so far
as it relates to the demand for the appoint-
ment of arbitrators. After the enactment
of the ordinance^ a request was made upon
the defendant for a price at which it would
sell its plant to the borough. The defendant
company did not then make any objection to
tbe ordinance, but its board of directors met
and passed a resolution fixing the price at
which it would sell its plant, and this price
was communicated to the borough. This
action on the part of the defendant was in
compliance with the stipulations of the con-
tract of 1885, and, in effect, conceded that
the demand for the appointment of arbitra-
tors had been legally authorized by the ordi-
nance of April 8, 1915.
[3,4] The learned counsel for the defend-
ant company contend that tbe borough made
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992
101 ATLANTIO REFORTBB
(P».
Qo effort to agree with Ihe company upon a
price at which the water plant should be pur-
chased, as required by the contract of May
5, 1885. The court found that "the plaintiff
and defendant have not been able to agree
upon a sum or price at which the defendant
would be willing to sell, and at which the
plalntifT would be willing to purchase the de-
fendant's plant and system." We think this
finding is sustained by the evidence. Pursu-
ant to a resolution of the borough council,
the defendant was requested to name "a price
for which you are willing to sell the Hun-
tingdon Water Supply Company's plant, sys-
tem and property, to the said borough of Hun-
tingdon." In reply to this request, the defend-
ant company, by proper corporate action, of-
fered to seU Its plant for $220,000, and so
notified the borough council. The offer was
unanimously rejected by the councU. No
further effort was made by either party to
agree upon a price for the water plant. It
will be observed that both parties were actr
ing In their corporate capacity, the request
being made by the borough council, and the
price for the plant fixed by the defendant's
board of directors. The contract of 1885 re-
quiring the parties to make an attempt to
agree upon a price does not stipulate as to
the extent to which the negotiations shall be
made to fix the price. We do not see that
the borough was required to continue further
negotiations and suggest a price after it had
received notice of the price fixed by the de-
fendant's board of directors. The borough
was justified In concluding that the defend-
ant would not sell its plant for a less sum
than that already named, and that further
negotiations would be fruitless. It is Idle to
expect the two corporate bodies to act as In-
dividuals might act In negotiating for the
purchase and sale of the plant. There Is
nothing In the record to show that had the
negotiations proceeded on the part of the
borough, the defendant would have accepted
any less sum than that named In the reso-
lution passed by its board of directors and
communicated to and promptly rejected by
the borough. If, however, the defendant
company was willing to sell its plant for a
less sum than it had already named, it should
have communicated the fact to the borough.
The duty to continue further negotiations In
an attempt to fix a price for the water plant
was as obligatory upon the defendant as upon
the borough. Snodgrass v. Oavit, 28 Pa. 221.
The obligation was mutual, and. If the de-
fendant company had concluded to accept a
less sum than that named in Its offer, It
should have communicated the fact to the bor-
ough, and, falling, to do so, it la not in a
posltton to successfully dalm that the bor-
ough made no effort to agree with the wat«r
company upon a price at which the latter
would sell its plant. The fact that the de-
fendant company did not receive notice from
the borough that the price suggested was ac-
ceptable to the latter was notice to the de-
fendant that the price had been rejected, and
afforded the defendant an opportunity. If it
desired, to name another price at which It
would sell Its plant.
[I] The third and last question raised by
the defendant la as to the right of the bor-
ough to enforce the provisions of the ordi-
nance and contract of 1886 without first ap-
plying to, and obtaining the consent of, the
Public Service Commission under Act July
26, 1913 (P. Im 1374). The learned court be-
low held that the borough was not required
to secure the approval by the commission ot
its proposed purchase until after the value
of the plant and system was ascertained and
it elected to purchase the same, according to
the provisions of the ordinance and agree-
ment of May 6, 188S. This is clearly right.
This la not a proceeding to condemn or ac-
quire the water plant ; the purpose Is simply
to have legally determined the value of the
plant so that the borough can decide whether
or not It will purchase. The Public Service
Commission, therefore, has no interest in
these proceedings, nor is Jurisdiction given it
to interfere in any way with them. If the
borough had elected to purchase and was
proceeding, under the contract, to acquire the
water plant, the question whether It should
first secure the approval of the commission
would require adjudication.
The appellant has cited certain authorities
to sustain its contention that the borough
must obtain the approval of the Public Serv-
ice Commission before it takes the prelimi-
nary steps, under its contract, to determine
whether or not it will purchase the defend-
ant's water plant. It is sufficient to say that
they have no application whatever to the
facts of this case. As already pointed out,
the borough has not yet elected to purchase
the plant, nor was this proceeding instituted
for the puriMse of acquiring It. After the
value of the plant has been ascertained, the
borough will then determine what it will
do in the premises.
The decree ia affirmed.
Mr. Justice MOSCHZISKEB dlssentb
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MABKEE ▼. BSTBURN
993
(KS Pa. MS)
EKIB GODNTI POMONA GRANGE, NO. 4,
et «L T. WALES et ai.
(Sopreme Coort of Pennsylvania. May 14,
191T.)
Tktjsts «=s>37S(1)— CoNSTBronoH— Accouwt-
rNQ.
On a bill in eqnity, filed by a county p-ange
to have defendants declared trusteea of a certain
fund and for an accounting, where the chancel-
lor found on sufficient evidence that the defend-
ants had accepted the fund for the benefit of
county granges, as they should decide, and that
it was not a inft to defendants, the relief was
properly granted.
Appeal tiom Coart of Common Pleas, Erie
County.
Bill In eqnlty by the Erie County Pomona
Grange, No. 4, and others, agralnst A. L.
Wales and others, to have defendants declar-
ed trustees and for an accounting. From a
decree for plaintltfs, defaidants appeaL Af-
firmed.
Argued before MESTREZAT, POTTER,
MOSOHZISKBR, FRAZEB, and WAI^
LING, JJ.
T. A. Lamb, of Erie, for appellanta Frank.
J. Thomas, of Meadvllle, and Joseirti M.
Forces of Erie^ for appelleea
PER CURIAM. This was a blU filed by
plaintiffs to have the Keystone Co-opera-
tive Association, Limited, declared a trustee
for the plaintiffs for a certain fund deliver-
ed to the association by Joseph C. Sibley, and
that the association be required to account
for the same. The learned diancellor found,
on sufficient evidence:
"That the defendant the Keystone Co-opera-
tive Association, Limited, in accepting the fund
that was thereafter turned over to it by the
•aid Joseph G. Sibley, accepted the same subject
to the condition that the said fund was to be
used by the defendant for the benefit of the
granges and grange organizations of Erie and
Crawford connties, as Uiose granges should de-
cide, was to be used only for the benefit of those
granges, and that it was in no sense a gift or
donation to the members of the defendant as-
sociation, or to the defendant associatioii itselt"
This finding was decisive of the question
at issue, and justified the decree which was
entereJd against the defendants.
Decree affirmed.
(2S8 Pa. 277)
MARKEB T. RETBURN.
(Supreme Court of Pennsylvania. May 22,
1917.)
1. LiioTATioif OF Actions 4s»1S& — Sblt-
Serving I)koi.aka,tion— Bntries in Books
OF Accoum'.
Where plaintiff's books of original entries,
showing a credit on an indebtedness sufficient to
toll the statute of limitations, were not proved
and oCFered in evidence, the allowance of a cred-
it in a statement of claim against an estate was
a mere self-serving declaration, and incompetent
against the estate.
2. LncRATioR OF Actions «s>197@) — Ao-
KNOWLEDGMIWT— BVIDENClt.
In an action against an administrator for
an indebtedness incurred more than six years
before suit, wherein plaintiff contended that the
statute of limitations had been tolled by promise
to pay made within six years, evidence held in-
sufficient to identify the debt on which an al-
leged payment was made, so aa to toll the stat-
ute.
3. Ldotation of Actions «s>148(1>— Toix-
INQ OF Statute— Evidence.
To toll the statute of limitations, there must
be a clear and unequivocal acknowledgment of
the debt, and a specification of the amount, or a
reference to something by which the amount can
be definitely ascertainea, coupled with an ex-
press or implied promise to pay.
Brown, C. J., dissenting.
Appeal from Court of Common Pleas', Phil-
adelphia County.
Assumpsit by William T. Markee against
William S. Reyburn, administrator of the
estate of John E. Beybum, deceased, for the
maintenance and boarding of horses and for
money expended by plaintiff for defendant's
benetit. Verdict for defendant by direction of
the court, and judgment thereon, and plain-
tiff appeals. Affirmed.
Argued before BROWN, C. J., and STEW-
ART, MOSCHZISKER, FRAZBR, and WAL-
LING, JJ.
Joseph 8. Goodbread, of Philadelphia, for
appellant Frank A. Moorahead and Howard
Burtt, both of Philadelphia, for appellee.
FRAZBR, J. Plaintiff's action against the
administrator of the estate of John E. Rey-
burn, deceased, is to recover the sum of $4,-
036.16, with interest, being the balance claim-
ed to be due on a book account extending
over a period of years from 1903 to 190S
for maintenance and boarding of horses and
money expended by plaintiff for defendant's
benefit The copy of the account attached to
the amended statement of claim showed sev-
eral credits, none of which was within six
years previous to the beginning of suit on
July 14, 1914 Xhe original statement of
claim showed a credit of $700 on July 16,
1908, and defendant believing no defense
existed to the claim, omitted filing an afiida-
ylt of defense, and permitted plaintiff to take
judgment Subsequently defendant discover-
ed the payment entered as of July 16, 1908,
was in fact made In 1907, Instead of 1908,
and thereupon took a rale to show cause why
the judgment should not be opened which
was later made absolute. Plaintiff, however,
was permitted to file an amended statement,
setting up a payment on account under date
of December 30, 1911, and an acknowledg-
m»it of the debt and promise to pay made
December 11, 1908. Defendant In his affi-
davit of defense d«iled the alleged payment
on account and pleaded the statute of lim-
itations. At the trial of the case platntiff
offered in evidence the statemtot of claim ad-
iFor otber cMes ue game topic and KSX-NUMBBR in all Ker-Mumbered Dlgutz and Indexes
101 A.-63
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994
101 ATI^NTIC REPOKXER
(fa.
mltting receipt of $100 on account, bnt gave
no further evidence concerning the payment
The trial ;^udge held the evidence of acknowl-
edgment of the debt Insufficient to toll the
statute of limitations and directed a verdict
for defendant. A motion by plaintiff for judg-
ment non obstante veredicto was overruled,
and this appeal followed.
[1,J] Plain tUF suggests the statement of-
fered in evidence coutaluiug credit for $100
paid in 1911 was in itself sufficient to take the
case to the Jury. In answer to this conten-
tion it Is sufficient to say the payment was
denied, and in absence of actual proof on
plaintifTs part the mere offer of the state-
ment of claim was without probative effect
The books of original entries, showing the
credit, were not proved and offered in evi-
dence within the rules goveniing the admis-
sion of such entries, and in absence of such
proof the allowance of credit in the state-
ment was a mere self-serving declaration
made by the party in his personal books and
not competent evidence against the debtor.
Hottle V. Weaver, 206 Pa. 8T, 55 Atl. 838;
Murphy v. McMullln, 219 Pa. 506, 69 Atl. 70.
The evidence relied upon as an acknowl-
edgment of the debt is the testimony of a
witness, who, at the request of plaintiff, call-
ed npoD Beybum at bis oflftce in City Hall
on December 11, 1908, when the following
conversation took place:
"I told him what I wanted. I said Mr. Mar-
kee wanted to go West on Saturday to St Louis,
and he needed money. And he got the state-
ment out of the drawer. Q. What statement?
A. The statement he had got the Ist of the
month. Mr. Markee had sent him a statement
• • • Q. Did you see it? A. Well. I saw
Mm pull it out and look at it I did not par-
ticularly notice it. Q. What did he say? A.
Well, he said, 'Tell Bill to come in on Saturday,
and I will pay him part of that' or something
to that effect Q. Do you know the amount that
was due by that statement? A. I couldn't tell
without looking at the books. It was thirty-
nine hundred and something."
On being further questioned as to exactly
what was said at the interview the witness
testified:
"Well, it was in the mayor's office that I saw
him, and I had a statement in my pocket; but
I didn't have to use that, for he pulled his out
of the drawer. And I explained about Mr.
Markee wanting to go West on Saturday. This
was on Friday that I was there. And he said,
'Well, you tell Bill the claim is all right, and
I will pay.' I went back and told Mr. Markee
that I supposed he was going to pay him Satui^
day morning. So he went to see him."
On cross-examination tbe witness further
testified:
"Q. Who made np this statement of account
that you say you took to Mayor Reybnm's
office? A. Well, I just took a statement from
Mir. Markee. Q. Did he go over that state-
ment? A. lie took it out of tlie drawer and
compared it with mine. They were just the
same. But he knew exactly what the statement
was, for I bad seen it before two or three times."
Tbe witness did not present the statement
he had in his pocket, nor did he see the one
Reybom took from his desk drawer. Tbe
only way the witness was able to fix the
amount definitely was by referring to the
books, and relying upon his inference that
tbe paper taken from tbe drawer was tbe
one sent by plaintifll to Beybum, and that it
contained the items and total amount shown
by the memoranda in the pocket of the wit-
ness. While the witness subsequently tes-
tified Reybum "already had the statement"
from plaintiff, which he took from the drawer
"and compared it with mine. They were
Just the same. But he knew exactly what the
statement was, for I bad seen it before two
or three times" — this testimony, when viewed
in the light of his previous recital of what
was said at that meeting, could not be ac-
c^ted as proof that the two papers were
actually physically compared. The witness
was apparently attempting to testify to his
personal mental conclusions, as well as those
of Mayor Reybum. On the whole, the evi-
dence of Identification and acknowledgment
of the debt is not so clear and unequivocal as
we have repeatedly held necessary to toll the
statute of limitations. The principles gov-
erning such proof were stated in the recent
case of Manlatakls's Estate, 101 Atl. 920.
The facts in this case, so far as the iden-
tification of the debt is concerned, are no
stronger than those in Lowrey v. Robinson.
Adm'r, 141 Pa. 189, 195, 21 Atl. 513. The
language there used, particularly applicable
here, is as follows:
"It is noticeable that there is not in the con-
versation detailed by Townsend any admission
by Robinson that he was indebted to I^owrey for
borrowed money in any sum whatever, nor any
promise to pay him any sum at any time. The
bill which was presented to Robinson was not
exhibited on the trial, and no attempt was made
to account for its nonproduction. Tbe item*
of it, showing dates and amounts, were not
given. The inferences of counsel, though as-
sented to by the witness, are not a satisfac-
tory snbstltute for the declarations of the party
whose estate it is sought to charge, nor is the
statement of the witness that 'the bill said $40*
a sufficient identification of the alleged loan."
[3] To toll tbe statute of limitations, tbei«
must be a clear and unequivocal acknowl-
edgment of the debt, and a specification <^
the amount or a reference to something by
which the amount can be definitely ascertain-
ed, coupled with an express or implied prom-
ise to pay. Ward v. Jack, 172 Pa. 416. 33
Atl. 57T, 51 Am. St Rep. 744. These re-
quirements will be strictly enforced. Shaef-
fer V. Hoffman et al., 113 Pa. 1, 4 Atl. 39;
Shaffer's Estate, 228 Pa. 36, 76 Atl. 716. The
evidence In this case, at least so fttr as the
identification of the debt and its amount Is
concerned, does not meet these requirements.
The Judgment is affirmed.
BROWN, C. X, dissenta.
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BiaGNER Y. PBNNSTLVANIA R. CO.
995
(258 Pa. WD
BEIGNER T. PBNNSTLVANIA R. CO.
(Supreme Court of Pennsylvania. Mar 22,
1917.)
1. RAnsOADS «s»327(2)— ACOIDKNISATCBOBS-
IROB— CONTBIBITTOBT NCOLIOENCX.
One going in front of a moving train which
he has bad ample opportnnity to see and avoid
is gnilty of contributory negligence as a mat-
ter of law.
2. RA.ILBOADS «=3346(5)— Accidents AT Cboss-
iNos — CoNiBiBinosr Nkglioencb — Pbk-
8UMPTI0N&
When one i* killed by a train, the law pre-
sumes that before going upon the track he did
all that due care for his safety would suggest,
and that be stopped, looked and listennl as
the law requires, which presumption gives way
before admitted facts with which it is irreconcil-
able.
8. BAiutOAOS «=9327(8)— AooioBNTS AT Oboss-
INOB— CONTBIBUTORT NBOLIOENCE.
One driving a buggy over a grade crossing
was guilty of contributory negligence when, aft-
er stopping, looking, and listening when about
90 feet from the track, he did not stop before
reaching the track where he could have seen an
approaching train for a distance of three-quar-
ters of a mile.
4, Railboaos «=»S27(8)— Accidents at Cboss-
INOB— CONTBIBUTOBT NeOLIOENCB.
The dntv of one about to cross a railroad
track at grade is not always confined to stopping
and listening for the approach of a train, bat he
must stop at a proper place, and, on proceeding,
should continue to look and to observe the pre-
caotion» which the dangers of the situation re-
qnire, and should stop again if there is another
place nearer the track from which he can better
aee whether there ia danger.
Appeal frtxu Court of Conunon Pleas, Ches-
ter County.
Trespass by Dmma K. Reigner against the
Pennsylvania Railroad Company to recover
damages for the death of plaintiff husband.
From an order refusing to take off a compul-
sory nonsuit, plaintiff appeals. Affirmed.
Argued before BROWN, C J., and MES-
TREZAT, STEWART, MOSCHZISKER, and
WALUNG, JJ.
Truman D. Wade, of West Chester, for ap-
pellant A. M. Holding, of West Chester, for
appellee.
STEWART, J. (1] We have here again
to repeat what we have so often had occasion
to say, that when one goes in front of a mov-
ing train of cars, which he has had ample
opportunity to see and avoid, he is guilty of
contributory negligence as a matter of law.
[2] True it is that, when one upon a rail-
road track is run down and killed by a pass-
ing train, the law will presume that before
entering upon the track he did all that pm-
d«>ce for his safety would suggest, and what
the law requires in all snch cases — that he
stopped, looked, and listened. But this pre-
sumption, like every other, gives way before
admitted facts with which it is irreconcilable.
[3] The facts in the present case, as we
derive them from the evidence adduced on
the part of the plaintiff, are these: Plain-
tiff's husband was driving in an open buggy
on the afternoon of December 29, 1915. As
ha approached a grade crossing of the de-
fendant's company's tracks, four in number,
and which he had been accustomed to cross
and recioss dally for at least six weeks pri6r
to the accident, he stopped at a point 90 feet
distant from the nearest rail on the track he
would encounter first in any attempt to cross
over. At this point, had he looked, he could
have seen up the track on which the train
that struck bim was running, that is, the
third track, 660 feet At a point 76 feet be-
yond and 25 feet from the nearest track he
had a clear view of the trad: along which
the train was approaching for 1,550 feet Just
before entering upon the first track, had he
looked ta the direction of the approaching
train, he could have seen for a distance of
three-quarters of a mile. Despite these op-
portunities thus afforded him to avoid the
danger incident to the crossing, when upon
the third track, in an attempt to cross over,
he was struck by the engine of a passing
train and instantly killed. Witnesses were
called on behalf of the plaintiff who testified
that as the train approached the crossing no
signal of its approach was given, either by
whistle, bell, or otherwise, and for failure
in this regard the effort was to charge the
defendant with responsibility for the acci-
dent Into the merits of this contention we
need not enter. The appeal is from a Judg-
ment of nonsuit entered on the ground, as
stated by the learned trial Judge in refusing
to take it off, that it is incomprehensible
how the plaintiff's husband could have lost
his life had he made even a most casual
glance at any point after he started his
horse from the 90-foot stopping point. This
view meets with our entire concurrence.
[4] It only remains to add that the fact of
his having stopped at a point 90 feet from
the tracks before entering upon the crossing
did not relieve him from the duty of again
stopping and looking before he attempted to
cross. We have repeatedly held that the
whole duty of one about to cross the tracks
of a steam road at grade is not In all cases
confined to his stopping and listening for the
approach of a train. He must stop at a
proper place, and, when he proceeds, he
should continue to look and to observe the
precautions which the dangers of the situa-
tion require. He should stop again if there
is another place nearer the tracks from which
be can better discern whether there is dan-
ger. Muckinhaupt r. Brie R. R. Co., 196 Pa.
213, 46 All. 364.
"The duty to be observant continues so long
as danger threatens. If between • • •
where the party stops, and the tracks of a rail-
road, the situation affords opportunity to dis-
cover an approaching train, and injury results
because of disregard of such opportunity, the
original act of stopping cannot operate to re-
lieve the injured party of contributory negli-
4ts»For other oaaes sm uma topic and KBT-NVUBBa tn all Kax-Numlxreil DlgesU and IndezM
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996
101 ATIANTIO KBPOBTEB
(Pa.
genee." Walsb t. Penoa. K. S. Ca, 222 Pa.
162, 165, 70 Aa 1068, 1089.
The nonsuit was properly ordered, and fbe
Jndgment Is affirmed.
(268 Pa. tU)
In r« PENNSYLVANIA GAS Ca
Appeal of CITY OF ERIE.
(Supreme Court of PenniylTania. May 14,
1917.)
1. Gas «=»11— Inspection at Gas Conduits
— Recovbbt of Costs.
The city of Erie, a dty <rf the third class,
may collect the coat of reasonable inspection
and reflation of gas conduits in the public
streets, but the amount so collected must be lim-
ited to the necessary cost of such inspection, and
cannot be in fact a tax for revenue for general
purposes.
2. Gas €=s>11— Municipai, Inspkition Feb—
RXDUCTION BX COUBT — CONSTITUTIONALJTY
OF Statute.
Act July 26, 1913 (P. I* 1871, { 1), anthor-
iaing common pleas court to reduce the amount
of a municipal license fee for inspection of gas
company's conduits when the amount of such
fee IS noreasonable, is constitutional.
3. Gas «=»11— Municipal Inspection Fee-
Reduction BY Court— Statute.
Under Act April 17, 1905 (P. L. 183), as
amended by Act July 26, 1913 (P. U 1371), the
court may reduce the license fee fixed in a mu-
nicipal ordinance for the inspection of gas con-
duits where they are unreasonably excessive,
and may fix such license fee as the evidence
shows will properly compensate the municipality
for necessary inspection.
4. Gas <=>11 — iNSFEcrioif — Obdinanci —
Akount of License Fee.
Where an ordinance of a city of the third
class required an annual inspection of gas con-
duits in public streets and imposed an annual
license fee of $30 per mile of pipe, and it ap-
peared that no regular inspection was made by
the city, other than that made by the iKilice,
fire, engineering, and street departments as inci-
dental to their other duties, and that no extra ex-
penses were incurred for such inspection, and
that the cost of such inspection did not exceed
$7.50 per mile, the amount fixed by the ordi-
nance was excessive, and the city would not be
permitted to collect more than $7.50 per mile for
inspection.
Appeal from C!onrt of Common Pleas, Erie
C<ounty.
Petition by the Pennsylvania Gas Company
tor the reduction of a license fee charged by
the CUj of Brie for the Insiiection and regu-
lation of conduits. From a decree reducing
the inspection license fee, the Olty of Brie
appeals. Affirmed.
The following Is oplnlwi of Roeslter, P. J.,
In the court of common pleas:
The proceedings in this case were had nnder
the act of April 17, 1906 (P. L. 183), as amended
by the act of Jnly 26, 1913 (P. L. 1371), to
decide a dispute between the petitioner, the
Pennsylvania Gas Company, and the respondent,
the city of ESrie, aa to the reasonableness of a
license fee charged by the respondent against
the petitioner. The case was heard upon peti-
tion, answer, and testimony.
The facts are found as follows:
First. That the petitioner is a corporation ex-
isting under the laws of the state of Pennsyl-
Tania, engaged in the production and transporta-
tion of natural gas ; supplies natural gas to the
public in the ei^ of Erie; occupies the streets
of the city of Erie by virtue of an ordinance ap-
proved \&rch 8, 1886, which ordinance was of-
fered in evidence.
Second. That the petitioner owns, maintains,
and operates in and upon the streets, lanes, al-
leys, and other highways of the city of Erie
120.22 miles of pipe and conduits ; that 16 or 18
miles of this pipe is high-pressure pipe, and the
rest low-pressure.
Third. That the reapondent, the city of Brie,
is a city of the third class.
Fourth. That on the 6th day of April, 1908,
the respondent, the city of Erie, enacted Ordi-
nance BUI N«. 2817, of which the foUowing is
a copy:
"An ordinance providing for inspection by the
police department of the city of Erie, of all
pipes and mains of manufactured gas com-
panies, natural gas o(mipanies, water compa-
nies, steam heating and other companies
maintaining or operating such pipes and
mains in the streets, avenues and alleys of the
city of Erie; imposing an annual license fee
for each mile of snch pipea and mains; and
providing a penalty for the violation of the
provisions hereol
"Be it enacted by the sdect and common coun-
cils of the city of Brie:
"Section 1. That all of the pipes and mains
of each and every manufactured gas company,
natural gas company, water company, steam
heating company and other comiuuiiea maintain-
ing or operating pipes and mains in the streets,
avenues and alleys of the city of Brie, shall b«
inq>ected annuiUly, or aa often aa may be re-
quired for proper and adequate supervision and
inspection^ by the police department of this city.
The said inspection shall be carried on as afore-
said by said department, to insure the proper
and safe maintenance and operation of all such
pipes and mains in the streets, etc., aforesaid.
Sec 2. That each mile of such pipes or
mains, laid or maintained in the streets, ave-
nues and alleys, within the limits of the city of
Erie, shall be liable to an annnwl license fee of
thirty ($30) dollars.
"Sec. 3. The said license fee shall be paid by
each of the said companies to the treasurer of
the city of Erie, on or before the first day of
June of each year, hereafter, and said officer
shall issue his receipt therefor, showing the
number of pipes and mains for which the license
has been paid.
"Sec. 4. Any person, firm, corporation or orai-
pany, who shall violate any of die provisions of
this ordinance, shall be subject to a penalty of
one hundred ($100) dollars for each and evoy
offense, to be sued for and recovered in the man-
ner now provided by law for the recovery of like
penalties.
"Sec. 6. That all ordinances, or parts thereof,
conflicting herewith, be and the same are hereby
repealed.
"Approved by the mayw April 6, 1908."
E'iftfa. That the petitioner has continued to
use, maintain, and operate the said lines of pipe
and conduit in and upon the streets, etc., of
the city of Erie, but now refuses payment of the
license charges specified in Ordinance No. 2917,
averriag that the said license is unreasonable,
unlawful, and therefore void; that there was
due, under the ordinance, June 1, 1914, $3,606.-
60; and that the petitioner refuses to pay said
sum or any amounts accruing under the ordi-
nance since that time.
Sixth. That the city of Brie onploya police,
fire, engineering, electrical, and street depart-
ments, at a large expense, whose duty It is, in
a general way, to inspect the lines, mains, and
conduits of the petitioner.
Seventh. That no regular inspection or any
inspection at any particular time or in any par-
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SCANDINAVIA BELTING CX). t. MAOAN, JR., OO.
997
ticular way was made by tbe respondent of the
mains of the petitioner. The only inspection
made is that made by different departments of
the city, such aa the police, fire, en^eering,
electrical, and street departments, is incidental
only, and while those departments are in the
performance of other duties, and consists princi-
pally in reporting breaks and leaks in the mains
which come under the obserration of either of
them while performing their other duties, but it
does not appear that any extra expense has been
or is now occasioned to the respondent by rea-
son of such inspection.
Eighth. That it is no more difficult or expen-
sive to inspect the high than the low pressure
mains.
Ninth. That the actual cost to the respondent
for the inspection and regulation of tbe mains
and conduits of the petitioner does not exceed
the annual expense of $7.60 per mile for each of
the 120.22 miles of pipe.
Tenth. That the amount fixed In the ordinance
is excessive and nnreasonable.
Eleventh. That the petitioner has a first-class
and up-to-date system, and keeps it under in-
spection and in good repair.
Conclusions of Law.
[1] rirst. The city of E^ie, a city of the third
class, may collect the cost of reasonable inspec-
tion and regulation of the petitioner's mains in
the public street, but the amount so collected
must be limited to the necessary cost of such in-
spection and regulation, and cannot be in fact a
tax for revenue for general purposes.
[2] Second. That the first section of the act
of July 26, 1913 (P. L. 1371), is constitutional.
[3] Third. That under the act of April 17,
1905 (P. L. 183), as amended by the act of July
28, 1913 (P. L. 1371), the court has power to re-
duce the license fee named in any ordinance of a
municipality for the inspection and regulation of
conduits, where the same is unreasonably exces-
sive.
Fourth. That under the act of April 17, 1905
(P. L. 183), and ito amendment of July 26,
1913 (P. L. 1371), the court may fix such li-
cense fee at what the evidence shows would
properly compensate the respondent for neces-
sary regulation and inspection.
[4] Fifth. That the annual cost of the inspec-
tion and regulation of tbe lines and mains of
the petitioner in tbe streets, alleys, and other
highways of the city of Erie, as often as may be
required, for proper and adequate inspection and
regulation, does not exceed the sum of $7.50 per
mile per year ; such amount is hereby found to
be a reasonable annual compensation for such
inspection and regulation as may hereafter be
performed under the terms of the ordinance,
The lower court entered a decree fixing
$7.50 per mile as the annual license fee to
be collected by the city of Erie from the
petitioner for each mile of pipe or conduit lo-
cated within the dty limits.
Argued before MESTREZAT, POTTER,
MOSCHZISKER, FBAZER, and WALLING,
JJ.
H. Bedford Duff and M. O. Cornell, both
of Erie, for appellant. J. E. Mullin, of Kane,
Alexander & Clark, of Warren, and Gunni-
son, Fish, Gifford & Cbapln, of EJrle, for ap-
pellee
PER CURIAM. The decree is affirmed on
the findings of fact and conclusions of law
by the learned court below.
(!Sg Pa. 2$l)
SCANDINAVIA BELTING CO. T. MACAN.
JR., CO.
(Supreme Court of Pennsylvania. May 22,
1917.)
1. Tbiai, «=5>eO(l)— RacBPTioN or Bvidinob
— Set-Off.
In an action against a company for goods
sold and delivered, the burden was on the com-
pany to establish ownership of a sales agency
contract made by plaintiff with its president be-
fore its alleged breach could be interposed as a
set-off.
2. AssioRMENTB «=9l38— Saiks Contbact—
QUKSnON FOB Jdbt.
On the evidence whether the contract under
which the company's president individually had
been appointed plaintiff's sales agent had been
assigned to the company and was then owned
by it was a question for the jury.
3. Sales <8=>358(2)— Action fob Pbicb— Evi-
DKNCE.
The jury might consider the prior contracts
and the course of dealing thereunder in so far aa
they bore upon the new contract, where defend-
ant set up such new contract canceling prior
contracts.
4. Saues 9=a51— Aoknct Cobttbaot — CoN-
BTBUcnoN BT Pasties.
In an action for goods sold and delivered
under a sales agency contract requiring the pur-
chase of $40,000 worth of goods, defendant's
contention that the sales should be computed
on the prices received by its president or by it
bad no merit, where the prior construction of
tbe contract by the parties indicated that the
$40,000 was to be computed on the amount of
sales made by plaintiff to its agent.
5. Sales ®=»84— Aqency Oontbact^Tbbm.
A sales agency contract for one year ended
on May 1st, which was the date of the con-
tract, although the contract had not been ac-
tually signed until May 20th.
6. Sales <3=3363— Aobnct Conibaci^-Bbeach
— iWaiveb.
In an action for goods sold and delivered
under a sales agency contract requiring the pur-
chase of $40,000 worth of goods, where the first
year's sales thereunder fell short of that amount,
the jury might consider whether plaintiff had
waived that provision so as to render cancella-
tion of contract unjustified.
Appeal from Court of Common Pleas,
Northampton County.
Assumpsit for goods sold and delivered
and upon promissory notes by the Scandi-
navia Belting Company against Macan, Jr.,
Company, with counterclaim by defendants.
Verdicts for plaintiff and Judgments thereon,
and defendant appeals. Judgments affirmed.
Argued before MESTREZAT, POTTER,
MOSCHZISKER, FRAZER, and WAL-
LING, JJ.
Aaron Goldsmith and Kirkpatrick & Max-
well, all of Easton, for appellant. Robert A.
Stotz and F. W. Edgar, both of Easton, for
appellee.
WALLING, J. These cases, between the
same parties, involving the same questions,
one on an account for goods sold and deliv-
ered and the other on two promissory notes,
were tried together in the court below, and
will be so considered here.
Plaintiff is a corporation with principal of-
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998
101 ATLANTIC RBPORTBE
(Pa.
flee In New York, and as such bad charge of
the sale in this country of foreign made
Scandinavia belting, for which purpose It had
various agencies, one of which was that of
Macan & Huntington, established In 1901, of
which the senior member was Greorge G.
Macan, Jr. This agency continued until 1903,
when a new contract was made between the
plaintiff and Macan Individually, wlilch in
1904 was superseded by one with the Macan,
Jr., Company, a partnership composed of said
Bfacan and J. M. Drlesbach. This contract
was for the exduslve agency for sale of the
belting in the states of Pennsylvania and
New Jersey, and for conveying belting for
coal and cement works of the United States.
It la therein provided that:
"This agreement to remain in force ao long
aa the annual turn-over reaches the simi of
fifteen thousand dollais ($16,000.00)"
— ^wlth the farther provision tliat the Macan,
Jr., Company was not to handle any other
kind of belting. This contract was canceled
January 1, 1907, by virtue of a new agree-
ment embracing largely the same provisions,
except that it was made with Mr. Macan in>
dividnally and not with the firm. In Novem-
ber, 1907, the defendant, Macan, Jr., Compa-
ny, was chartered as a Pennsylvania corpo-
ration with office at Baaton ; Mr. Macan and
Mr. Drlesbach were its principal stodchold-
ers, the former having 400 and the latter 200
shares. The partnership liad business, aside
from that under the contract with plaintiff,
and its assets seem to have been transferred
to the corporation at a valuation of $60,000 in
exdiange for capital stock, which assets were
described in the resolution of the defendant's
board of directors as Including, Inter alia,
"exclusive state and United States agencies,
good will of established business and surplus
earned." The agency for Scandinavia belt-
ing, then apparently belonging to Macan, was
not specifically mentioned as a part of these
assets; but thereafter plaintiff did mudi of
its business directly with defendant, wtdle
not formally recognizing it as the owner of
the contract of January 1, 1907. Some acts
and declarations of Macan, made long after
the formation of the corporation, indicate
that he still regarded lilmself as the owner
of the contract, and whetlier it belonged to
defendant, or the latter was merely a sub-
agent under Macan, was one of the questions
in the case.
A new contract bearing date of May 1,
1912, but formally executed on May 20th, was
made between plaintiff and Macan individu-
ally, in which he Is described as "the agent,"
and wherein it U provided, inter alia, that:
"Whereby, in consideration of mutual prom-
ises, It is agreed that all previous contracts are
hereby annulled, aud that from the date above
mentioned (May 1, 1912). • • • That the
agent sliall not sell or offer any textile belt
other than Scandinavia belting obtained from
the company (plaintiff), unless he obtains the
written consent of the company. • • • Xhis
contract shall remain in force while the agent
does an annual total of sale of forty thousand
dollars."
It made certain other changes from that of
January, 1907, including change of territory
embraced therein, etc. Macan was defend-
ant's president, and it contends that the mak-
ing of the new contract in his name was a
mistake, and that in fact it was the contract
of the Macan, Jr., Company. But the weight
of the evidence and all the drcumstances Jus-
tify the conclusion that It was the Intention
of both plaintiff and Macan that the new
agreement should be made in his name, and
not In that of the company. However, plain-
tiff thereafter continued to do business with
defendant aa it had before, and in the doing
thereof the Indebtedness was incurred for
which these suits were brought Plaintiff de-
dared the new contract terminated on May
1, 1914, on the allegation tliat the sales for
the preceding year did not amount to (40,000,
and it was also suggested that sales of other
belting had been made in violation of the con-
tract In these suits defendant admitted the
correctness of plaintiff's claims but sought to
set off damages by reason of said termina-
tion of the new contract The Jury found for
plaintiff for the full amount of the claims.
[1-3] The contract being in the name of Mr.
Macan, the burden was on the defendant to
establish ownership thereof before its al-
leged breach could be Interposed as a set-off ;
and such ownership depended largely on con-
flicting parol evidence, and was necessarily
for the Jury. We agree with the trial Judge
that the real thing (as he expresses it) was
the contract of 1912, but that the Jury could
consider the prior contracts and the course
of dealing thereunder, ?o far as they might
throw light upon the new contract This is
go because defendant sets up the new con-
tract and claims under it, and hence is bound
by its provisions, one of whldi is the cancel-
lation of prior contracts; and aside from
that defendant makes no claim to damages
for bi-each of a prior contract
[4] The sales during the year ending May
1, 1914, according to plaintiff's prices, amount-
ed to less than $35,000, but defendant con-
tends that the sales should be computed on
the prices received by Macan or by the Ms-
can, Jr., Company. The language of that
clause in the contract might seem to warraat
such construction, but, considering the con-
tract as a whole, the prior dealings of the
parties and their own apparent construction
of tliat provision, we agree with the conclu-
sion of the learned trial Judge that the $40,-
(MO should be computed on plaintifTs prices.
This construction is strengthened by the (act
that a schedule of such prices is attached to
the contract, and that, as part of the goods
were consigned directly to the defendant, the
plaintiff had no means of knowing to whom
nor for what amount they were resold. Ma-
can's letters seem to JuatU^ the concIosioD
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SAEGER T. COMMONWEALTH
999
tbat he onderstood the matter was to be ad-
justed on plalntlfTa prices.
[1,8] As the first year's sales tmder the
new contract also fell short of the $40,000,
the court instructed the Jury that they might
consider whether or not plaintiff had waived
that clause in the contract. It was rightly
held that the year ended on May 1st, as that
was the date of the contract, and the fact
that it was not actually executed until May
20th is not controIUng. And the parties con-
strued the contract aa taking effect May 1,
1912.
Defendant contended that the failure to
sell the required amount resulted from plain-
tiff's interference, and tbat was referred to the
jury, as was also the question of defendant's
damages. We find nothing to justify the criti-
cism that the charge was unfair or inadequate.
The controlling questions were largely of fact,
and were properly submitted to the Jury. The
verdicts are sustainable on the ground that
the contract was with Macan IndiTldually,
and that defendant was a subagent, or on the
ground that, as the sales for the year ending
May 1, 1014, were under the $40,000, plaintiff
was within its rights in declaring the con-
tract canceled.
The assignments of error are overruled and
the Judgments are affirmed.
(2S8 Pa. »») _
SAEGER T. COMMONWEALTH.
(Supreme Court of PennsyWania. May 14,
1917.)
1. HiOHWATs «=»76— Vacation— Repkal of
Statute.
General Road Law (Act June 13, 1836; P.
To, 658) { 18, conferring upon certain courts
power to change or vacate any public road, was
not repealed or modified by Act May 31, 1911
(P. L. 4S8), relating to state highways, and
conferring upon the state highway commiBsioner
the power to divert the coarse of state highways
under certain circumstances.
2. Emiwent Domain «=3l00(6)— Vacation of
HlOHWATB— CoNSTITtrnONAL PBOVIBIONS.
The vacation of a road or street is not an
injury to the abutting landowners, within the
provisions of the Oonstitntion requiring compen-
sation for private property taken in the exercise
of the right of eminent domain, and, in the ab-
sence of special legislative provision for dam-
ages, none can be recovered.
8. Eminent Domain ®=>271 — Vacation of
Highway— Statute.
Act May 28, 1913 (P. L. 368), giving a right
of action against cities, counties, etc., and Act
June 27, 1913 (P. L. 633), relating to damages
accruing where the road is formally vacated,
gave an abutting owner no remedy against the
commonwealth for the diversion of a road by
the state highway commissioner.
Appeal from Court of Common Pleas,
Crawford County.
Proceeding by C. W. Saeger against the
Commonwealth of Pennsylvania. From a
judgment refusing to take off a compulsory
nonsuit, plaintiff appeals. Affirmed.
The facts appear in the following opinion
by Prather, P. J.:
This case arose ont of an appeal from the
award of viewers assessing damages in favor of
plaintiff for the vacation of a certain portion of
a public highway in front of plaintiff's dwelling
house by the commissioner of highways. The
highway in qaestion extends from MeadviUe to
Erie, and is the highway described as route 84
in Act May 31, 1911 (P. L. 468, 482). This
public road became a state highway on or before
Jane 1, 1912, by virtue of the provisions of sec-
tion 5 of said act, and thereafter, according to
the provisions of section 6 thereof, came "under
the exclosive authority and Jarisdiction of the
state highway department"
Section 8 of said act provides: "Whenever in
the construction, reconstruction, maintenance,
and repair of any of the state highways, it shall
appear to the commissioner that any part or
portion of a state highway, as now defined and
described in this act, is dangerous or inconven-
ient to the traveling public, in its present loca-
tion, either by reason of grades, dangerous tarns,
or other local conditions, or that the expense to
the commonwealth in the construction, building,
rebuilding, maintenance, and repair thereof
would be too great or unreasonable, and could
be materially reduced or lessened by a diver-
gence from the road or route, the commissioner
is hereby empowered to divert the course or di-
rection of same, and he may diverge from the
line or route of same as herein described, in such
direction or directions as in his discretion may
seem best, in order to correct said danger or in-
convenience or lessen the cost to the common-
wealth."
By stipulation of counsel it was agreed that
the state highway commissioner in 1914 and
1916 had diverted from its original course a
certain part of said state highway lying wholly
within the township of Woodcock, a township of
the second class, and passing through plaintiff's
farm, by constructing a new road, about one
mile in length, along the west side of the Erie
Railroad track and west of the right of way
of the Northwestern Pennsylvania Railway
Company; the termini of said new road connect-
ing with points on the state highway, thereby
substituting said new road for that part of the
state highway lying between said points and
east of said railroad and street railway. The
said highway in this vicinity extends in a general
north and south direction. The substitution or
divergence complained of avoids two railroad
crossings at grade.
With these facts conceded upon the trial, we
were of the opinion that plaintiff had no cause
of action against the commonwealth for the
conduct of the state highway commissioner;
hence, rejected the offer to prove damages and
directed a nonsuit. It is clear that plaintiff's
right to recover must rest upon some constitu-
tional or statutory prorision. Counsel for plain-
tiff contend that uie recited facts operate as
a vacation of said road. But, even if so, the
Constitution of 1874 gives no right to damages
for the vacation of a public highway.
Let us then inquire: (a) Whether there was
in fact a vacation ; and, if so, (b) whether any
statute provides damages therefor. We are of
the opinion tbat the diversion complained of
does not in fact vacate the portion of road now
rejected from said state highway.
[I] The general road law of the state is the
act of June 13, 1836 (P. L. 551). Section 18
thereof provides: "The courts aforesaid shall
• * • have authority, • • • to change or
vacate the whole or any part of any • • •
public road." With reference to laying out and
vacating public highways, this act is still the
law of the state. This act is not repealed or
modified by the act of 1911. The latter act nei-
9For otber omw cee same topte and KBiT-NUMBER In all Key-Numbered Olcwts and IndezM
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1000
101 ATLANTIC REPORTSB
(Pa.
ther Tests in the state highway commiasioner
any authority to Tacate a public road, nor makes
any reference to the aabject of vacation. The
reasonaUe inference flowing therefrom is that
the Legislature, in granting the commissioner of
state highways the author!^ to divert the course
of a state highway for reasons named, intended
such act to be a divergence and not a vacation.
[2] If the road through plaintiffs farm has
not been yacated, it remains a public highway to
all intents and purposes as fully as it was at
and prior to the passage of the act of 1011. If
this conclusion is correct, plaintiff has no cause
of action. But, if we err in this, plaintiff is
still confronted with the well-settled rule, stated
by the Supreme Court in Howell v. MorrisviUe
Borough, 212 Pa. 349, 352, 61 AU. 932, 933, as
follows: "It must therefore be accepted as set-
tled law that the vacation of a highway or
street is not an injury to the abutting landown-
ers within the provisions of the Constitution re-
quiring compensation, and in the absence of
special legislative provision for damages none can
be recovered." See, also, Rnscomb Street, 30
Pa. Super. Ct 476. 478, and cases therein cited;
also WetheriU v. Penna. R. R. Co. et al., 195
Pa. 156, 45 Atl. 658; Snively v. Washington
Township, 218 Pa. 249. 67 Atl. 465, 12 L. R. A.
(N. S.) 918; Winner v. Graner, Kunte, Baun
and Reserve Twps., 173 Pa. 43, 33 Atl. 608;
Wagner v. Township of Salzburg, 132 Pa. 636,
19 AU. 294.
[3] We find no statute squinting at the liabil-
ity of the commonwealth for the act complained
of in the case before us. Our attention is called
to the acts of May 28, 1013 (P. L. 3G8), and
June 27, 1913 (P. L. 633). But the former gives
the injured party an action "against cities, coun-
ties, boroughs or townships, while the latter
applies to damages accruing in a proceeding by
viewers to vacate a road, which results in a va-
cation of the road. Clearly, neither of these
acts gives the plaintiff the remedy be is now
invoking.
Finally, for illustration, assume the new road
constructed by the state highway commissioner
to remain its present length, and that the por^
tion diverted from and alleged to have been va-
cated thereby, instead of being one mile in
length, to be a detour of three or four miles, it
certainly would not be urged that this old detour
highway w^as vacated by the adoption of a short
cut, as expressly allowed by the act creating the
state highway in question. It is also to be ob-
served that, of the various state highway routes
established by the act of 1911, 14 were changed
by the act of July 22, 1913 (P. L. 941), and 0
were changed by the act of June 7, 1915 (P. L.
860), and neither of these acts suggests that such
changes were considered as a vacation of any
public road, nor does cither act recognize any
liability upon the part of the commonwealth for
so doing.
We are of the opinion that the court commit-
ted no error in the rejection of the proposed evi-
dence and the entry of a compulsory nonsuit;
therefore the rule to take off said order should
be discharged.
The lower conrt entered a compulsory
nonsuit, which It subsequently refu&«d to
take off. Plaintiff appealed.
Argued before MESTREZAT, POTTER,
MOSOHZISKER, FRAZBR, and WALLING,
JJ.
Frank J. Thomas and J. P. Colter, both
of Meadville, for appellant. William H. Kel-
ler, First Deputy Atty. Gen., Frauds Shunk
Brown, Atty. Gen., and George F. Daven-
port, of Meadville, for the Commonwealth.
PER CURIAM. The Judgment is affirmed,
on the opinion of the learned conrt below
discharging the tale to take off the nonsuit.
(258 Pa. 2S2)
In re PHILADELPHIA PAltKWAT.
Appeal of GRAND FRATERNITY.
(Supienia Court of Pennaylvmnia. May 14,
1917.)
EUasTENT DoifAiir <Ss>226 — OFBiriRo or
SiBKKT— APPOINTKENT OV VIKWKBS — SlXT-
Act April 21, 1855 (P. L. 266), anthorizes
councils by ordinance to order any street on the
city plan to be opened, whereupon the owners
of land taken may petition for viewers to assess
damages ; and Act May 8, 1876 (P. L. 138), au-
thorizes a city to petition for the appointment of
viewers to assess damages, when the proper an-
thorities have directed the opening or widening
of any street. A d^ i^titioned for the appoint-
ment of a board of viewers to fix damages or
benefits to owners within the lines of a park-
way, and such viewers held meetings and heard
testimony; and thereafter the dty passed an or-
dinance to open another part of the parkway,
whereupon the property owners in such part pe-
titioned for the appointment of a board of view-
ers. Held that, the parkway bein^ one entire
improvement, and the city's petition for ap-
pointment of viewers being equivalent to a no-
tice that the parkway would be opened, the sec-
ond appointment of viewers was properly va-
cated.
Appeal from Court of Quarter Sessions,
Philadelphia County.
Petition by the Grand Fraternity for the
appointment of viewers in the matter of the
opening of the Philadelphia Parkway. From
an order vacating the appointment of view-
ers and quashing the ];>etitlon, petitioner ap-
peals. Affirmed.
Petition for appointment of viewers: The
facts appear in the following opinion by
Davis, J., on motion to quash the petition:
This is a motion on behalf of the dty of Phil-
adelphia to quash the petition presented by the
Grand BVaternity for the appointment of view-
ers to assess damages for the taking of property
on the unopened poi-tions of the Parkway from
City Hall to Fairmount Park. On the 29th day
of June, 1916, the city of Philadelphia presented
a petition for the appointment of viewers to as-
sess damages by reason of the opening of the
unopened portions of the Parkway. On July 24,
1916, select and common councils passed an or-
dinance authorizing the opening oi the unopen-
ed portions of the Parkway. On the 26th day
of January, 1917, upon the petition of the Grand
Fraternity, the owner of property on the south
side of Arch street, 173 feet 3 inches west of
Broad street, viewers were appointed to assess
damages under the provisions of this ordinance.
The aty of Philadelphia moves to quash this last
petition, contending that the Grand Fraternity
should present its claim before the viewers ap-
pointed on June 29, 1916.
By Act April 21, 1855 (P. L. 266), coundls by
ordinance ore authorized to order any street on
the city plan to be opened, whereupon the own-
ers wboee ground has been taken may petition
the court of quarter sessions for viewers to as-
sess damages. Act May 8, 1876 (P. L 13S),
gives authority to the dt^ to present a petition
for the appointment of viewers to assess dam-
ages whenever the proper authorities have di-
^soFoi othn caaa* ace Mm* topic and KEY-NUMBKR In all Key-Numbered OlKest* and Indaxss
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IN KB PHIIiADEIiPHIA PARKWAY
1001
rected 'In the manaer provided for by law" the
opening or widening of a.nj atreet upon the city
plan. The Grand Fraternity contends that the
petition filed by the city on June 29, 1916, was
prior to the ordinance of July 24, 1916, and be-
fore notice of an intention to take the property
bad been served as required by the act of as-
sembly of April 21, 1855. In the case of Phil-
adelphia Parkway, 250 Pa. 257, 95 Ad. 429.
tte Supreme Court held that by numerous ordi-
nances to open portions of the Parkway as plot-
ted, and by the condemnation and purchase
under which the dty had acc^uired title to the
variona properties within the limits of the Park-
way, the city became committed to the imprqye-
ment. Commentine upon the acta of the city,
the court said: "Tbo facts show that appellant
has suffered erievous injury and should be com-
pensated. If so, why not now? The only an-
swer is that the city has not formally oi^ered
the opening, and therefore there has been no
taking within the meaning of the law. Our re-
ply has already been indicated. What the dty
has done is equivalent to notice that the Park-
way will be opened • • • and that the lands
required for this purpose will be appropriated
under the power of eminent domain unless oth-
erwise acquired. Indeed, as we view it, the
citjr has committed itself to the opening by a
series of acts more expressive of its fixed pur-
pose than could be indicated by a resolution to
open without anything more."
It is contended on behalf of the Grand Fra-
ternity that there is no power to appoint a jury
npon the petition of the ci^ of Philadelphia,
Tuless the opening has been made in the man-
ner provided bv law. This same contention was
made on bebalf of the city in the case of the
Philadelphia Parkway, supra. Upon that point
the Supreme Ckmrt held: The dty has commit-
ted itself to this improvement by its acts just
as much as if councils had declared their inten-
tion of passing an ordinance to open. We coa-
aider what has been done as the equivalent of
notioe to the property owners that their lands
would be appropriated for Parkway purposes
and that their possession was about to be dis-
turbed." It is also contended that the petition-
er in the case of the Philadelphia Parkway, su-
pra, set up facts whidi satisfied the court that
the injury it had sustained amounted to a tak-
ing. No such allegation was made in this case
on behalf of the Grand EVatemity, although its
property is within the limits of the Parkway.
It 18 a fact known to this court that since the
decision of the Supreme Court a number of peti-
tions have been presented bv owners of individ-
nal properties, and viewers have been appointed
to assess damages.
Counsel for the Grand Fraternity contends
that until the property owner electa to SMert
tiiat he has been damaged there eaa be no vlew-
era ai^ointed to assess damages; that, the city
of Philadelphia having passed an ordinance in
July, 1916, to take the property, the time had
then arrived when, willing or unwilling, the
owner of the real estate must surrender it, and
therefore it was entitled to have a jury appoint-
ed, and it was not obliged to present its claims
before the viewers appointed upon the petition
of the city in June, 191& If this argument is
sound, had there been no ordinance passed in
July, 1916, the Grand Fraternity would have
been in a position to hold its property and pre-
vent no claim for damages, if it so elected.
Property owners on all sides might have pre-
sented claims before viewers appointed under
petitions presented by them, and the city might
have taken possession of the properties after
damages were assessed and paid, and might have
opened the avenue on all sides of this particular
piece of real estate and would have been power-
lees to remove it nntil the adoption of an ordi-
nance to open. TToder the decision of the Su-
preme Oonrt in the Parkway Case, this would
nave been an absurdity. As we have said, in
that case the court held that the municipality
had committed itself to the opening, and had
done those things which amount to the same as
a formal opening by ordinance. It was not an
opening as to one property to the exdusion of
another.
We are of opinion, therefore, that the mnnid-
pality in June, 1916, had as much right to pre-
sent its petition for the assessment of damages
as any property owner, and, for the purpose of
avoiding a multipUdty of individual proceed-
ings, its petition to assess damages in all casea
remaining unsettled was lawful. It follows that
the appointment of viewers under the petition
of the Grand Fraternity was improvidently
made and should be quashed. It is so ordered.
The court accordingly oatered a decree
quashlDg the petition. The Grand Fraternity
appealed.
Argned before BROWN, O. J., and ICBS-
TREZAT, MOSCHZISKBK, FRAZEE, and
WALLING, JJ.
Joseph P. McCnllen, of Philadelphia, for
appellant John P. Connelly, Caty SoL, and
O. Charles Brodersen and Lonls Hutt, Asat
City Sols., all of Philadelphia, for appellee.
PBR CUHIAM. Four of the members of
the conrt who heard this appeal being of
opinion that the appolntmoit of yiewera was
properly vacated, under Philadelphia Park-
way, 260 Pa. 257, 96 AtL 420, the order of the
court below is affirmed, at appellant's costs.
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1002
101 ATLANTIC REPO&TER
(Pa.
(2Sg Pb. &T)
MAYER BEOS. CONST. CO. t. AMERICAN
STERILIZER CO.
(Supreme Court of Pennsylvania. Ma; li,
1917.)
1. GONTBACrS «=>290— BUILDIKQ Co!«TBACn^—
Cbbtokcatb— Waivek.
In an action on a building contract, provid-
int that all payments were to be made upon the
engineer's certificate, where it appeared that
nine of the ten paymenta had been made with-
out any certificate, the jury would be warranted
in finding that the owner had waived such provi-
sion of the contract
2. Estoppel €=>78(1)— Buh-dino Corteaot—
Waives in Genebax.
The usual manner of waiving a right, as a
right under a building contract, is by conduct
or acts intimating an intention to relinquish the
right, such waiver being a matter of fact to
be shown by the evidence, and which may be
shown by express declarations or by acts mani-
festing an intent not to claim the right, or im-
plied from such acts and conduct, or by failure
to act inducing a belief that there is an inten-
tion to waive the right, or by circumstances or
conduct amounting to an estoppel.
8.' CoNTKACTS «=>.323(3)— BuiLDiira Contbact
—Defective CoNBTBUOTion — Qxtestion fob
JOBT.
In an action on a building contract regniring
defendant to furnish a certain hardening ingred-
ient which the contractor claimed had resulted
in defective floors, held, on the evidence, that
whether the floors had been properly laid and
whether the defects resulted from such ingred-
ient were questions for the jury.
4. Appeabance €=>18-^trBi8DicTioir— Cattse
OF AcTiow— Necebsitt fob Abbitbation.
That a building contract provided that cer-
tain disputes would be artitrated did not de-
prive the court of jurisdiction in an action there-
on, where the parties submitted their cause by
a general appearance and by a trial without de-
murring or questioning the jurisdiction.
5. Comtbaotb «=»316(2)— BrrLDiwa Cowtbaot
— Bbeach— Daicaoes.
Under a building contract, providing that
upon the engineer's certificate of the contractor's
failure to prosecute the work diligently the own-
er, after five days' written notice, might provide
labor and materials and proceed with the work
and deduct the cost from the money thereafter
dne, the owner could not recover damages for
delay where he had failed to avail himself on such
provision of the contract by giving notice, etc^
Q, CoNTBACTs 4=>284(3)— BuiLDiNQ Co:;tbaot
—Final Payment.
Where a building contract made an engi-
neer's certificate a condition precedent to tiie
final payment, but the engineer named in the
contract had withdrawn and no other had been
appointed in his place, the contractor was not
required to make an attempt to procure any cer-
tificate, as the law does not require a party to do
a useless thing or to attempt an unnecessary
thing.
7. contbacts «=»303{5)— buildiho cortbact
—Defects.
tinder a building contract, permitting the
engineer in charge as agent of the owner to
change the plans the contractor would not lie re-
sponsible for defects resulting from work done
under the engineer's direction differing from the
plans.
8. CoNTBACTS «=»303(5)— Building Contbact
—Guaranty.
Where the contractor's work was done and
tho material furnished under the direction and
to tbs satisfaction of the owner's agents, the
owner was concluded by their acts, and the
contract specification did not control, so that no
guaranty attached to defects in the work so
done.
Appeal from Court of Common Pleas, Erie
County.
Assumpsit on a buUdlns contract by tbe
Mayer Bros. Construction Company ag^alnst
the American Sterilizer Comi>aiiy. Verdict
for plaintiff. Judgment thereon, motion for
new tri&l denied, and defendant appeals.
Affirmed.
Rosslter, J., In tbe court of cnnmon pleas,
filed the following opinion sur defendant's mo-
tion for a new trial:
The plaintiff brought this action against the
defendant to recover the sum of |5,000.71, with
interest from April 17, 1914, for work and labor
done, and materials furnished, under a buildintr
contract, and for extras. The case was tried
before a jury and a verdict was rendered in fa-
vor of the plaintiff for the sum of (5,366.03.
Whereupon the defendant made a motion for
a new trial, assigning ten reasons therefor.
The first reason assigned is that the court
erred in affirming the plaintiff's points. These
points were, in substance, as foUows:
first That if the jury found that the defend-
ant paid nine estimates without requiring a cer-
tificate from the engineers, as required by- the
contract, then they would be warranted in find-
ing that the defendant had waived that re-
quirement of the contract
Second. That if the jury found that the par-
ties entered into a new or modified agreement, in
reference to the laying of the floors and that the
material furnished by the defendant and the
floors laid under its direction, the plaintiff
would not be responsible for their defective con-
dition.
[1,2] Article 7 of the contract provided "that
the plaintiff, or contractor, should be paid in
current funds * * * in weekly estimates
♦ * • approved by the engineers • • •
the final payment to be made within thirty days
after the contract was fulfilled. All payments
were to be made upon the written certificate of
the engineers to the effect that such payments
became due."
We affirmed the first point because we nnder-
stood that the law was and is that any one may
waive anything which has been established in
his favor or tot his benefit ; that the nsual man-
ner of waiving a right is by conduct or acts
whieh ' indicate an intentiota to lelinqoish tbe
right; that waiver is a matter of fact to lie
shown by the evideAcd, and may be shown by
express declarations or by acts manifesting an
intent and purpose not to claim the privilege or
advantage; or that a waiver may be implied
from acts and conduct; or by such failure and
neglect to act, as to induce a belief that there
is an intention or purpose to waive; or that
it may l>e shown by circumstances or by a course
of action and conduct which amounts to an es-
toppel. 40 Cyc. 252 et seq.
The evidence was undisputed that there were
nine payments made, and that no written certifi-
cate of tbe engineera to the effect that any of these
nine payments were due was asked for or re-
quired, and we were then of the opinion, and are
now, that where nine payments out of a possi-
ble ten were promptly made, without complaint
and without insisting upon compliance with the
provisions of the contract relative to the fur-
nishing of the certificate, that that would be
some evidence of an intention on the part of
tbe defendant to waive that provision in its fa-
vor as to the tenth, and if the jury found that
>f or other cases see same topic and KEY-NUMBER to all Key-Numbered Digests and laduea
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MAT£R BROS. CX>NST. CX>. t. AMEBICAN STERIIilZER 00.
1003
the defendant intended to do what it did do, Tiz.
waive nine certificates, the; would be warranted
in concluding that it had wholly waived ita
rights in this respect, and hence the affirmance
of the first point.
[3] Aa to the second point, the evidence was
that, after the engineers had severed their con-
nection with the building operations, the plain-
tiff and defendant entered into a modification o£
the contract as originally made, or made a new
or supplemental contract By the new arrange-
ment, the plaintiff was to furnish a kind of
gravel, or granite grit, different from that speci-
fied in the contract, and the defendant was to
famish a certain ingredient to mix with that
gravel to be used as a hardener. The plaintiff
claimed that the defective condition of the floors
resulted from the use of the hardener and the
manner in which the floors were laid; that the
floors were laid under the supervision of another
agent of the defendant, Mr. Darrow, and the
plaintiff was required to lay them as he direct-
ed. The defendant contended that the plaintiff
did not use the land of substance exhibited as
"M," as agreed, but did use a different sub-
stance, exhibited as "N" and that it was by rea-
son of the use of the latter substance that the
defective condition of the floors resulted. This
waa the issue on this subject, and we afllrmed
plaintiff's second point, because we believed Uiat
if the jury found that the defective condition of
the floors resulted from the substance furnished
by the defendant and from the direction by the
def«idant of the manner of their laying, then
the plaintiff would be in no way responsible,
for the defective condition of the floors was the
result of what the defendant furnished and di-
rected done, and not on account of what the
plaintiff furnished and did, that then the plain-
tiff could not and ought not to be held respon-
sible therefor.^ This was purely a question of
tact for the jury, and the point was properly
answered and put and fully warranted under the
evidence.
The second reason for a new trial Is that the
court erred in refusing to afiirm the defendant's
points. The defendant's first point was the an-
tithesis of the plaintiff's first point, and there-
fore could not he affirmed under our views as
above expressed, and the same reason applies to
defendant's second point
[4J The defendant's third point we believe was
properly answered, and we refused the fourth
point, which was to the effect that the court was
without jurisdiction, because of a clause in the
contract providing that disputes be submitted
to arbitrators, as set forth in article 8. It is
sufficient to say upon this subject that the par-
ties submitted their cause to this forum by a
general appearance and trial of the case, without
demurring, or taking, any other steps to question
or oust the jurisdiction.
The defendant's fifth point was for binding in-
structions, which, of course, conld not under the
evidence be affirmed.
[5] The third reason given for a new trial is
that the court erred in holding that the defend-
ant could not recover damages on account of the
plaintiff's failure to complete the contract with-
in a reasonable time.
There was no time set in the contract when
the building was required to be completed. The
contract did, however, set forth in article 6 that
if the contractor failed to prosecute the work
with promptness and diligence, such refusal, neg-
lect, or failure, being certified by tlie engineers,
the owner should be at liberty, after five days'
written notice, to provide such labor and mate-
rials, and to deduct the cost from the money due
thereafter, and proceed with the work at once.
ISiis being the remedy provided in the contract
for expediting the work, we are of the opinion
that this remedy would first have to be exhaust-
ed, and, there being no evidence in the case that
defendant availed itself, or attempted to avail
itself, of this provision of the contract, we are
of the opinion that it conld not recover damages
for delay.
The fourth reason for a new trial was aa to
the covering of the steel work and the reinforc-
ing rods, ^e contract provided in article 1
that the plaintiff under the direction of, and to
the satisfaction of the owner, as expressed by
Irvln and Witberow, engineers, acting for the
putDose of the contract as the agents of the
owner, was to perform the contract The undis-
puted evidence was that the whole of the work
done by the plaintiff, except the laying of the
floors, was done under the direction of, and to
the satisfaction of the owner, as expressed by
Irvin and Witherow, fbe engineers, and it being
expressly provided in the contract that they
were the agents of the defendant, we held that
the defendant could not recover damages from
the plaintiff for doing the work as it had direct-
ed the plaintiff to do it
The fifth reason for a new trial was our hold-*
ing the plaintiff could recover without a final
certificate, and our reasons for bo holding are in
pert given above.
[6] It was, however, strennonsly ui^ed that
final payment was ot a different character than
the other payments which were made as the
work progressed, for the reason that the final
payment would be in the nature of an accord
and satisfaction, or final settlement, between the
parties for all work done and material famish-
ed, and that, even though the jury found from
the evidence that the defendant did waive the
requirements relative to the certificate aa to all
other payments, that would be no evidence that
it intended to waive its right to a certificate as
to the final payment and that therefore, the ab-
sence ot final certificate barred the action. To
this we cannot accede as a legal proposition.
But even if this final certificate was required
and the defendant could have relied upon the
fact it waa not given, still it is conceded that
had this certificate been withheld by fraud or
for any other wrongful reason, then suit might
have been brought to recover without it Now
the undisputed evidence on this subject is that
long prior to the bringing of the suit, the engi-
neers, named in the contract, had withdrawn
from the job; that there had never been any
other engineers appointed in their place, and ol
this fact both parties were cognizant, so it is
clear that there was no engineer to whom the
plaintiff could go to obtain such certificate, and,
as the law does not require a i>arty to do useless
or attempt impossible and unnecessary things,
we could see no reason why the plaintiff should
be required in this case to make an attempt to
procure a certificate from engineers who did not
exist, that the plaintiff knew did not exist, and
that the defendant knew did not exist prior to
the bringing of the action.
The sixth reason for a new trial was prac-
tically the same as the fifth, and the same rea-
soning as applied to the affirmance of the plain-
tiff's second point applies to the seventh reason
for a new trial.
We did hold, and in that holding we think we
were right, that defendant could not recover
damages for any work that was done under the
direction and to the satisfaction of Irvin and
Witherow, which holding is assigned as the
eighth reason for a new trial, but there was no
offer to prove that defects developed subse-
quently.
[7] As to the ninth reason for a new trial, to
the effect that the court erred in holding evi-
dence inadmissible to show that the work was
not done according to the plans and specifica-
tione, we held that the engineers in charge, being
the agents of the owner, had a right to change
these plans and specifications, if agreeable to
the plaintiff, and that if these plans and specifi-
cations were changed and the work done under
the direction of the agent of the owner, the
plaintiff conld not be held responsible for defects
which might result In other words, the only
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1004
101 ATLANTIC REPORTER
(Pa.
queBtion wag, Did the plaintill perform the
work as Irvin & Witherow directed; if it did,
that ended it ; if it did not, then the defendant
could prove noncompliance with the specifica-
tions; but aa Mr. Irvin testified: "Q. State
whether or not the work which was done on
this contract, on this job, up to the time that
you severed your connection with it, wag done
in substantial compliance with the terms of the
contract? A. It was done in substantial com-
pliance with the contract" — w« think our hold-
ing was warranted.
In relation to the tenth assignment of error,
we are of the opinion that under the undisputed
evidence the whole of the work, with the excep-
tion of the laying of the floors, was done under
the supervision and direction of the agents of
defendant, Irvin, and Witherow, and that, even
though the contract did set forth that if defects
developed within a year or within any other
time after the completion of the contract, if the
work waa performed aa the owner's agents di-
rected, and not according to the plans and spec-
ifications, that that relieved the plaintiff of its
responsibility relative to the development of fu-
ture defects. That is, when a contract specifies
that work is to be done in a certain way and
the owner reserves the right for his designated
agent to stand by and direct it to be done in an-
other way, if his designated agent does stand by
and see it done, or changes it, and it afterwards
appears that the construction was wrongly or
defectively done, he cannot be held to say that
he has been damaged. It is bis duty to insist
that it be properly perfol-med at the time.
But in this case there was no offer to prove
that any defects developed after the completion
of the job. The offers were all to prove faulty
construction, and construction not according to
the plans and specifications, which, if true,
would be the act, or at least the result of the
act, of the defendant's agents, and hence defend-
ant could not claim that it had been damaged
thereby. It will be observed in this connection
that we did permit the defendant to prove its
damage on account of the board marks not being
removed, and we did this because there was no
evidence to show when the frames were remov-
ed, which caused the marks, and therefore they
might have been removed alter Irvin and With-
erow severed their connection with the work,
but this branch of the case was clearly for the
jury, and, they having decided it, we cannot
now interfere.
The provisions of article 1 of the contract, ap-
pointing Irvin and Witherow as agents of the
defendant, and the provisions under the head of
guaranty in the plans and specifications, were
the provisions around which revolved the diffi-
culties which resulted in this lawsuit.
The theory of the plaintiff was that the par-
ties to the contract had the right to change or
alter the contract if they saw fit ; that Irvin and
Witherow were the parties to the contvact, so
far as the defendant was concerned ; that inde-
pendent of the contract, in spite of it, and con-
trary to its provisions, the parties had the right.
If they saw fit, to modify, change, or wholly an-
nul it, it being their contract, and having done
■o, they are bound by what they did, and not by
what the contract provided.
The theory of the defendant was that the
plaintiff was bound to perform the contract un-
der the direction and to the satisfaction of its
agents, also according to the plans and specifica-
tions, and guarantee the work for one year after
completion.
[8] The court believes that where the work
was done and the material furnished under the
direction and to the satisfaction of the defend-
ant's agents, they were concluded by their acts,
and the contract and plans and specifications do
not control ; and therefore no guaranty attach-
ed, and the evidence was undisputed that all of
the work, except the laying of the floors, was
done under the sui>ervision, direction, and to the
satisfaction of Irvin & Witherow.
Argued before MESTREZAT, POTTEB,
MOSCHZISKKR, FRAZER, and W^ALLIN'Q,
JJ.
T. A. Lamb and John B. Brooks, both of
Brie, for appellant P. V. Glfford and Gun-
nison, Fish, Glfford & Chapin, all of Eile,
for appellea
PER OURIABf. In the opinion discharg-
ing the rule for a new trial, the learned
court below has discussed all the Questions
raised on this appeal, and we concur In bis
eoncloslons.
The Judgment Is afflrmed.
(SSPa. 2S2)
HARPER et aL T. PHILADELPHIA RAP-
ID TRANSIT CO.
(Supreme Court of Pennsylvania, lilay 22,
1817.)
1. Appeal and Brbob 4=9927(3)— Qttestioit
or Fact— Intbwsncks.
On appeal from a judgment of nonsuit In
an action for personal injury, where defendant
submitted no evidence, the appellate court must,
for the purpose of the case, assume the truth
of plaintiffs evidence and any inferences which
may be drawn therefrom.
2. Stbebt Railboadb 9=>85(3) — Usk or
Stbeet — Due Cabe.
One lawfully driving on the proper side of
the street is bound to get out of a street car's
way, and those in charge of a street car are
bound to afford him a reasonable opportunity
to do BO.
3. Stbeet RAn.E0AD8 «=»117(11) — Neoli-
OENCB— Question fob Jubt.
In an action for damages sustained when
plaintiff's team was struck by a street car,
held on the evidence that whether the defendant
was negligent in respect to improper speed in
overtaking the team was for the jury.
4. Stbeet Raiuioadb «=>101— Neouoeno—
Signals.
Where the driver of a team saw an ap-
proaching street car 300 feet away, the ques-
tion whether the motorman gave a signal of
its approach was unimportant.
5. Stbeet (Railboadb €=s>00(4) — Use op
Tracks — Due Cabe.
A street railroad is entitled to the right of
way, but, as to one lawfully driving a team
along its tracks, is bound to exercise such right
so as to give the driver a reasonable opportu-
nity to get out of the way, after notice of the
car s approach.
Appeal from Court of Common Pleas, Phil-
adelphla County.
Trespass by Harry Harper, by Ms next
friend and father, William Harper, and by
William Harper in his own right, against the
I'hiladelphla Rapid Transit Company, to re-
cover damages for personal Injury. From an
order refusing to take off a nonsuit, plain-
tiffs appeaL Reversed, and a procedendo
awarded.
Argued before BROWN, a J^ and STEW-
ART, MOSOHZISKER, FRAZER, and WAL-
LING, JJ.
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HARFF.R T. PHILADXLPaiA RAPID TRANSIT C!0.
1005
WllUam B. Lamb and Wm. H. B. Lukoos,
both of Philadelphia, for appellants. Sydney
Young, of Philadelphia, for appellee.
WALLING, J. This appeal Is from an order
refusing to set aside a compulsory nonsuit,
granted in an action by a father and minor
son for personal Injuries to the son. There
Is a l>rldge abont 2S feet in width in Second
street, Philadelphia, which spans a creek
below Tabor road. Defendant has a double
track railway in that street, which crosses
the bridge at grade and In fact occupies a
large part of its surface, the tracks being
parallel and that on the west side being south
twund. The bridge is in a vaUey, and the
grade of the street descends toward it from
both north and south. To the north the
street is straight, and a motorman in charge
of a car approaching from that direction has
a clear view of the surface of the bridge for
at least 300 feet.
On March 20, 1915, the plaintiff, Harry
Harper, was driving a horse and wagon for
some men engaged in trimming trees. The
wagon box was 7^ feet long, and in it was
an extension ladder, also some rope and
shears. The ladder was adjusted at its min-
imum length of 16 feet, and one end was
under the seat in front and abont one-half
extended back over the rear end of the box.
It was placed parallel to and along the right
side of the wagon box. Three workmen
were in the wagon, one seated on the ladder
and two on the seat with plaintiff. Plaintiff
was going south, and approached the bridge
on the south-bound track, it being necessary
to occupy the track in driving over the
bridge. He looked back and saw a trolley
car coming beliind him about 300 feet away ;
and immediately reined his horse to the left
80 as to get on the north-bound track that the
car might pass, and succeeded in getting the
horse and front wheels of the wagon on that
track, but the car overtook him before he
could get the rear end of the ladder out of
the way, and struck it with such violence as
to force It through the front end of the wag-
on box, and to push the horse, wagon, and
load about 150 feet up the grade, throwing
plaintiff and his companions from the wagon
and causing the injuries here complained of.
Plaintiff's efforts to get out of the way were
somewhat hindered by the narrow bridge and
also by temporary obstructions at the side
-caused by the work of constructing a sewer.
At the time of the collision the wagon was in
a diagonal direction, as the rear wheels had
not reached the north-bound track, and the
rear end of the ladder, on which was a red
flag to make it more conspicuous, extended
towards the west track. While plaintiff
drove about 40 feet in his effort to get out
of danger the car ran about 300 feet. The
slcy was clear, and the accident happened
about noonday. It was one of defendant's
ordinary green cars, the body of which is
wider than the front end. Windows were
broken on th'i left side of the car, but just
what part of It flrst hit the ladder does not
appear.
[1-4] As defendant submitted no evidence,
we must, for the purpose of this case, assume
the truth of that offered for plaintiff, and
also any Inferences that might be drawn
therefrom. And on that assumption in oui
opinion the learned court below erred in re-
fusing to strike off the nonsuit This was
a public street where both parties had rights.
Plaintiff was lawfully on the street, and was
using it for a proper purpose, and nothing
appears that as matter of law would convict
him of contributory negligence^ While he
was on the proper side of the street, it was
his duty to get out of defendant's way and
the duty of the latter to afford him a reason-
able opi>ortunity to do so. It was such a
place as required care by both parties. And
whether defendant performed its duty was,
under the circumstances, for the Jury. As
plaintiff saw the car 300 feet away the ques-
tion of signals would not seem to be impor-
tant But the fact that the car was moving
about seven times as fast as the wagon and
pushed the horse and wagon along for about
150 feet under the circumstances, would
seem to make the question of improper speed
one for the Jury. The horse, wagon, and men
were in plain view of the motorman for 300
feet ; if he did not see them he was at fault,
as he also was if he saw them and failed to
have his car under control. If the car was
approaching the bridge so rapidly that it
could not be stopped in the 300 feet, that
would certainly be evidence of negligence.
That windows were broken on the side of the
car indicates that the ladder and car were
there in contact hut does not necessarily
show that they did collide at some other
point The front end of the car, being of less
width than the body, may have cleared or
grazed the ladder, but the result shows that
the ladder must have come in contact with
something more substantial than glass. The
evidence would Justify a finding that the
cause of the accident was the failure of the
motorman to afford plaintiff an opportunity
to get out of the way ; for several witnesses
testify that at the time of the collision the
wagon was in a diagonal position, with the
ladder, as the result showed, not out of
range of the approaching car. The theory
of appellee's counsel that, because the flrst
and second windows on the side of the car
were not broken and others were, therefore
the ladder must have been out of range of the
car and then suddenly turned back, while
plausible, does not necessarily result from
that circumstance, and finds no other supiwrt
in th'i evidence.
(S] An inference of defendant's negligence
can reasonably be drawn from the evidence,
and therefore the case is for the jury. The
following language of Judge Henderson, in
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1006
101 ATLANTIC BDPOBTBB
(Pa,
Frledland t. Altoona ft Logan Valley Elec-
irlc Ry. Co., 59 Pa. Super. Ct 639, S42, is ap-
plicable to this case:
"The plaintiff was in the exercise of a law-
ful right in driving along the track and al-
though the defendant company was entitled to
the right of way, its employla were bound to
exercise the right in such a manner as to give
those driving along the track a reasonable op-
portunity to get out of the way when notified
of the approach of the car."
So also is the language of Judge Porter
in "D&yis T. Media, Mlddletown, Aston &
Chester Electric Ry. Go^ 26 Pa. Super. Ct
444, 448, that:
"When the tracks are laid in a public high-
way, the driver of a wagon lawfully using them
in front of an approaching car, while it is his
dnty to give way and not obstruct its progress,
is entitled to reasonable warning and reason-
able time to get out of the way. The employds
of the defendant company were bound to keep
the car under control, and had no right to run
the plaintiff down either uiton the track or
while he was in the act of leaving it. They
were bound to use every reasonable effort to
avoid a collision."
While the street railway company has the
right of way it must give the driver of a
Tehide an opportunity to clear the track.
See Heuber v. Consolidated Traction Compa-
ny, 210 Pa. 70, 58 Atl. 430; Trumbower v.
Lehigh Valley Transit Co., 235 Pa. 397, 84
AtL 408. A case quite like the present is
that of Davidson t. Schuylkill Traction Co.,
4 Pa. Super. Ct. 88, where the earlier author-
ities are cited and considered by President
Judge Rice. It was said by Mr. Justice Pot-
ter in the recent case of Gordon v. Beaver
VaUey Traction Co., 247 Pa. 248, 248, 93
Atl. 334, 335:
"As we have often held in similar cases, it
was the right of the plaintiff to drive on any
part of the street, subject to the superior right
of the defendant to the use of its tracks, and
warning of the approach of the car should
have been given to plaintiff, and he should have
been allowed sufficient time to get off the track
in safety. Whether or not such warning was
given, or sufficient time was allowed him to
get out of the way ; or whether the car actually
struck the wagon, and caused the injuries to
plaintiff for which he sought to recover, were
all questions of fact for the jury."
The judgment la reversed, and procedendo
awarded.
(258 Pa. 22S)
COMMONWEALTH v. MILLBR.
(Supreme Court of Pennsylvania. May 14,
1917.)
1. Homicide «=>253(1) — Mubdbb in thk
FiBST Deq&ee — Sufficiency of Bvidkmce.
Bvidence in a trial for murder held sufficient
to sustain a conviction of murder in the first
degree.
2. Homicide *=»237—lNaANiTT— Evidence.
Eividence in a trial for murder held to nega-
tive the defendant's contention that he was in-
sane.
3. Homicide <S=>145 — Evidence — Use or
Deadly Weapon.
The inference of an intent to kill may not
be drawn solely from the fact that the weapon
was deadly and was used upon a vital part, but
the fact that it was sudi and was so used is to
be considered with all the circumstances in de-
termining the intent.
4. Homicide @=>2S3— Degree— Motive.
A reasonable doubt as to motive does not
prevent a conviction of a higher degree of htnn-
icide than the second degree.
5. Cbiminal Law <S=>762(5)—Ohabge— Con-
sequence OF Verdict.
A charge that the jury were not to be de-
terred from a true finding by any thought of
possible consequences of their verdict was not
prejudidal.
6. Criuinai, Law «=34M(3)— Byidkncb— Dtr-
PLiCATB OF Weapon.
Where it appeared that defendant had
thrown away or concealed the automatic revol-
ver which he had used, a duplicate, identified as
the same as that used by defendant, was ad-
miasible as bearing on the character of the
weapon used, in connection with the other evi-
dence, going to the question of intent.
7. Homicide <e=>155 — Shootino Without
• Provocation— Evidence.
Where a homicide was committed by shoot-
ing without provocation, the jury mifht consider
that, after the first shot had taken effect and
deceased was falling, defendant shot again.
Appeal from Court of Oyer and Terminer,
Cumberland County.
Archie Miller was convicted of murder in
the first degree, and he appeals. Affirmed.
The following is the opinion of Sadler, P. J,
on motion for new trial in the court of Oyer
and T'erininer:
Archie Miller was indicted for the murder of
one BeiBser, a railroad officer. He was defend-
ed by two of the ablest members of the local
bar, assigned 1-r the court under the provisions
of the act of March 22, 1907 (P. L. 31), and in
addition by counsel from another state selected
by his family. The case was carefully present-
ed. The jury rendered a verdict of guilty of
murder of the first degree, and in this ue court
concurs.
Reasons for a new trial and in arrest of lodg-
ment have been presented and argued, and are
now before us for consideration.
The first three alleged the verdict to be against
the law, the evidence, the weight of the evi-
dence, and the charge of the court, and can be
considered together. None can be sustained.
[I] The evidence showed that the defendant
came from the South and obtained work in Jer-
sey City. While there be determined to return
home, and joined with him as a companion, one
Jasper Fletcher. Before starting he procured
for the latter a 45 Colt revolver in which lead
bullets were used. For himself he purchssed a
new Colt automatic revolver, and steel-jacketed
bullets. At that time he declared his nurpose
to see that no "bull" would get him on his road
home. They left Jersey City by freight, finally
reaching Uighspire. From that point they went
by foot to Uarrisburg, and thence across the
bridge to the Cumberland county side and to the
tracks of the Northern Central Railroad. Pro-
ceeding to the north, a tramp was met, who told
them of being driven off the track, and that if
they went on they would be arrested. The de-
fendant used a coarse expression in regard to
the "bulls," but proceeded. At that time the
officers were not in sight. Miller then put bade
his cap, removed his revolver from his right
Socket — he was left-handed — took it into his left
and, and there held it under the apron of the
overalls he was wearing. Thus prepared, he
continued on bis way until in sight of the offi-
cers. Beisser came from the third to the second
track in f»ont of Miller, and when from 15 to
20 feet away (»lled, "Where are yon going"?
^=9FDr other cues see uune topic and KBT-NUMBER in all Key-Numbered Digests and Indszac
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Pa.)
OOMMOKWJBAIiTH ▼. MTIiliBB
1007
In answer, Miller pulled the prepared revolver,
and shot, aayintr. That is where I am coing.
When the officer was falling he shot him a sec-
ond time, and then shot the second officer who
was on the track above. From the evidence,
the jury was clearly justified In finding, as it
did, that no other words had passed, and that
no attempt had been made by Beiaser to either
arrest or assault the defendant. After falling,
Beisser turned on his side, pulled out his re-
volver, and shot after the fleeing defendant,
until he fell back dc"A Miller was captured
about one-half mile from the scene of the oc-
currence. In the meantime he had disposed in
some way of his revolver. His companion,
Fletcher, who had run at the first shot, was
likewise found. He had thrown his revolver
into the river. It was found with no bullets
exploded. Those in his gun were lead, while
Miller used steel- jacketed ones, the same as
found in the body of Beisser and the leg of
Chubb. There was practically no contradiction
of any of the facts above narrated. Miller him-
self did not take the stand.
[2] The defense was insanity. The evidence
to support even a suspicion of the same was far
from convincing. The mother testified to va-
rious acts of badness during the youth of the
defendant, and gave it as her opinion that he
was insane. And a Dr. Jenkins, keeper of a re-
formatory in which Miller was confined from the
age of 12 to 14, gave a like opinion. Dr. Johns-
ton, a colored physician of Charleston, S. C, and
the family doctor, gave it as his opinion that
the defendant was suffering from dementia pre-
cox, and that he could not distinguish between
right and wrong when "he had an expansive mo-
ment" He had not seen the defendant for three
years before the trial, nor bad the mother seen
him for months, or Dr. Jenkins for years. The
mental condition was described as hereditary,
and evidence was offered to show that the grand-
father became insane at 06 and that a brother
was confined in an asylum. The mother and the
doctor stated that as a boy Miller was afraid
of things without cause. From this the jury
was asked to find that he was insane when he
shot Beisser, and that he was suffering from
some indefinite delusion when he so acted.
Every act and circumstance proven in the case
showing the conduct of Miller immediately prior
to and at the time of the murder negatived
this contention. Two experts for the common-
wealth testified that, admitting as true every
fact testified to in defense, there was no indica-
tion of insanit7 in their opinion.
The expert tqr the defendant declared that he
(MiUer) could distinguish between right and
wrong, except during an "expansive moment,"
but that such a mental condition was existing
when the killing occurred was absolutely with-
out support in the evidence. Though this was
the view of the court when the case was tried,
and still is, yet every possible instruction which
could be of benefit to the defendant was given.
In answer to the points on delusion, the jury
was permitted to nnd such, from the evidence,
if they could, though the court would have been
folly Justified nnder the authorities in with-
drawing the matter entirely from its considera-
tion. Commonwealth v, Henderson, 242 Fa.
372, 89 AtL 567.
A careful review of all the evidence leads to
the condwdon that the jury was fully justified
in finding that the killing was willful, deliber-
ate, and premeditated, and was done by defend-
ant while fully conscious of his act, with power
to distinguish between right and wrong, and
not under the control of any irresistible im-
pulse or delusion.
Complaint is made of the answers to points
3. 11, 12, and 10 presented by the defendant.
These were all affirmed as abstract propositions,
and the jury told to apply the legal principle
therein stated, if the facts upon which the same
were predicated were found to be true. All
fonr were based on th« assumption that the evi-
dence justified a finding that the defendant was
acting under some delusion that he was in fear
of deatb or great bodily barm. There was noth-
ing in the evidence to justify soch a conclusion,
though it was left to the jnry. The court would
have been fully justified in refusing the points.
Commonwealth v. Henderson, 242 Pa. .372, 89
Atl. 567; Commonwealth v. Calhoun, 238 Pa.
474, 80 Atl. 472. Any assumption of delusion
would necessarily have been drawn from the
proof that Miller as a child was needlessly
afraid of things. The testimony as to this cov-
ered a period years before the killing. Not a
word to sliow impaired mental condition was
offered for a period more than three years be-
fore, while the testimmiy of the acts and «»-
duct of Miller immediately before and at the
time of the killing showed him to be fully con-
scious of his actions and surroondings. In the
answers to the points oomplained of the defend-
ant received more favorable treatment than he
had the right to demand.
The sixth point was affirmed as stated. So
that the jury might not get the impression from
so doing that the fact that the weapon was
deadly could not be considered by them we stat-
ed that from its use the intention may be infer-
red. This, in connection with the remainder of
the point affirmed, was an introduction [instruc-
tion] that it should I>e considered with all the
circumstances of the case in determining the in-
tent We do not think the jury could have mis-
understood this. Later in the charge the wei^t
to be given to the fact that the weapon was
deadly was carefully defined. "When death en-
sues from the use of a deadly weapon, the jury
must scan closely the conduct of both parties,
taking into consideration the character of the
weapon, the manner of its use, and the time of
its use, the place of its use, and the circum-
stances attending it, and by a careful survey
of the evidence the jury must endeavor to ar-
rive at the true cause which prompted the fatal
shot or shots." And further, in the next para-
graph we said: "Again, gentlemen of the jury,
the nature of the weapon and the place and
character of the wounds are important and
should be considered by you. Was the weapon
a deadly weapon? The deadliness of the weap-
on, gentlemen, tends to indicate the intention
with which it is used. The place or places
where the wound or wounds are infiicted tend
also to throw light on the intention with which
the slkots were fired."
[31 As we understand the authorities, and as
we instructed, the inference of the intent to kill
may be drawn, not solely from the fact that the
weapon was deadly, and used upon a vital part,
but the fact that it was such and was so used
is to be considered with all the circumstances in
reaching a determination as to the intent, and
this is what the jur^ was told.
The eighteenth point was affirmed as stated.
The wording of the same was to the mind of
the court confusing. So that the jury might not
misunderstand, the court repeated in different
language the two propositions included, and we
think correctly. A mere doubt as to insanity
does not justify an acquittal on that ground
Commonwealth v. Sushinskie, 242 Pa. 406, 8^
Atl. 504; Commonwealth v. Henderson, 242 Pa.
372, 89 Atl. 667 ; Commonwealth v. Bamer, 19&
Pa. 335, 49 Att 60.
[4] The answer to the seventh point was as
favorable to the defendant as could be demand-
ed. We could not affirm without qualification
the statement that a reasonable doubt as to mo-
tive prevented a conviction of a higher grade of
homicide, than that of second degree. Such is
not the law. Lanahan v. Commonwealth, 84
Pa. 80; Commonwealth v. Danz, 211 Pa. 507,
60 Atl. 1070.
[5] This disposes of such objections to the
charge and points as have been specified. An
additional error was suggested on the argument,
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1008
101 ATLANTIC REPORTBB
(Pa.
In that the Jury was prejndiced nndoly by the
charge of the court in saying that it was not
to Im "deterred from a true finding by any
thought of possible consequences of the verdict."
The SBiue objection has been passed upon and
held to be without merit by the Supreme Court.
Commonwealth ▼. Webb, 252 Pa. 187, 97 Ati.
189; Coyle v. Commonwealth, 100 Pa. 573, 46
Am. Rep. 307.
[6] We are unable to find that error was com-
mitted in passing upon the challenges for cause
interposed when jurors were examined on their
Ywr dire. Nor do we see anything prejudicial
to the defendant in the rulings upon the evi-
dence. But one point therein is worthy of men-
tiMi. The defendant used a 45-caliber auto-
matic Colt reyoWer, but threw the same away
in some concealed place after the killing. A du-
Slicate was produced, which was identified by
leteher as in all re8pect4B the same as carried by
Miller. This fac simile was offered in evidence
80 that the jury might consider the character of
weapon used, which they had the right to do In
connection with the other evidence in the case.
In passing upon the question of intent. The du-
plicate having been proven to be identical, the
admission was proper. "In any case where the
nature and properties of an article require con-
sideration by the jury, it is proper to submit a
duplicate or fac simue conveying a correct im-
pression." 17 Cyc. 293: Commonwealth v. Fry,
198 Pa. 379, 48 Atl. 257.
Since the argument of this case, and the prep-
aration of this opinion, additional reasons hare
been filed by counsel for the defendant An ex-
amination of the same will show the majority
to be unsubstantial and trivial. The instruc-
tions as to self-defense are the same as those
approTed by the Supreme Court in Common-
wealtJi T. be Felippis, 245 Pa. 612, 91 Atl.
1050, and those as to insanity were approved in
Commonwealth v. Calhoun, 238 Pa. 474, 86 Atl.
472. It is needless to cite authorities to show
the rule in Pennsylvania to be that the prisoner
must satisfy the jury by fairly preponderating
evidence of his insanity, to entitle him to an ac-
quittal on this ground. The last reported case
upon the subject uses the same words that are
here complained of. Commonwealth v. Sushins-
kie, 242 Pa. 406, 80 AtL 564.
[7] Impressed with the importance of the de-
cision to the defendant, we have examined the
evidence and charge with care, both as to mat-
ters the subject of exception, and those not spe-
cifically complained of, and are convinced that
no prejudicial error was committed. The con-
clusion of the presence of an intent to kill from
all th« dicumatanoes wu jostifled. The delib-
eration and premeditation appeared in the prep-
aration of the gun for use before the deceased
was in sight, but after Miller was notified that
he was farther up the track. The shooting was
without provocation, and the jury properly took
into consideration that, after the first ^ot had
taken effect, and the deceased was falling, he
shot again. Commonwealth ▼. Digeso, 254 Pa.
296, 08 Aa 882; Commonwealth v. West, 204
Pa. 68, 53 Atl. 542. The defense of insanity
was disregarded by the jury, and it was a
question for it to determine. That the verdict
might have been a different one is no reason for
judicial interference, even if the court was so
inclined. Commonwealth v. Danz, 211 Pa. 507,
ftO Atl. 1070; Commonwealth v. Deitrick, 221
Pa. 7. 70 Ati. 276.
The law was fully explained and an opportu-
nity given to the defendant to secure further in-
structions, if desired. Commonwealth v. Wash-
ington, 202 Pa. 148, 51 AtL 750. There was
evidence which justified the verdict of murder
in the first degree, and no substantial reason
has been shown why a new trial should be
granted, and the motion, therefore, is overruled.
No error apparent upon the face of the record
has been averred, or appears, and the same dis-
position of the motion in arrest of judgment is
therefore made.
Verdict of guilty of murder of the first de-
gree, upon which sentence of deatb was pass-
ed. Defendant appealed.
Argued before MESTRHZAT, POTTER,
MOSCHZISKER, FRAZBR, and WALUNG,
JJ.
Julius L. Mitchell, of Brooklyn, N. Y., and
Fillmore Maust and Thos. E. Vale, both of
Carlisle, for appellant. WilUain A. Kramer,
of Carlisle, George E. Lloyd, Dlst Atty., of
Mechanicsburg, and John D. Faller, of Car^
lisle, for the Commonwealth.
PER CURIAM. The dear and convincing
opinion of the learned court below, overruling
tlie motions for a new trial and in arrest of
judgment, shows that this record Is clear of
reversible error, and that the several assign-
ments are without merit.
The Judgment is affirmed ; and It is wder-
ed that the record be remitted to the coort
below for the purpose of execution according
to lav.
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Vt)
VILLA T. THATEB
1009
VILLA. T. THATEH.
(Snpreme C!oart of Vermont Washington.
Oct. 8, 1917.)
1. Gaicb «s»6— Powebs of Game Wajsdkns.
A game warden is neither the state nor a
general public officer thereof, and his authority
1 the protection of game is wholl; derived from
the statutes, and expressly defined by Acts 1912,
No. 201, { 73.
2. Animam <^=>84— Powebb o» Game Ward-
ens— Shooting Dogs.
In view of the repeal of Acts 1898, No. 106,
t 3, which authorized a private person to kill
dogs chasing deer, a game warden, having no
greater authority in that respect by virtue of
his office than a private person, has no right
to kill dogs while chasing deer.
3. Gave €=><>— Pbksebvation of Gaji»— Pub-
lic Nuisance.
Nothing is to be deemed a public nuisance,
solely by reason of its destruction of wild game,
unless tne statutes so declare it.
4. Tbial (S=»286— Shooting Doofr-LiABiUTX
—Instructions.
Where a game warden shot dogs which were
chasing deer, an instruction to find for the own-
er of the dogs at least nominal damages was
merely intended to state defendant's liability as
a matter of law.
Exceptions from Montpelier Municipal
Court; Brwln M. Harvey, Judge.
Action by Victor Villa against Guy M.
Tliayer. Judgment for plaintiff, and defend-
ant excepts. Affirmed.
Argued before WATSON, O. J., and HA-
SELTON, POWERS, TAYLOR, and MILES,
JJ.
Charles B. Adams, of Waterbury, and J.
Ward Carver, of Barre, for plaintiff. H. J.
Oonant and F. L. Laird, both of Montpelier,
for defendant.
HASBITON, J. This is an action of tort.
In wUch the plaintiff recovered damages for
the shooting of two dogs, duly licensed, regis-
tered, and collared. On trial the defendant
admitted shooting the dogs, but claimed to
Justify such shooting on the ground that he
was a deputy game warden, and as such shot
the dogs while they were chasing a wild deer,
and that the defendant could not reasonably
protect the deer in any other manner than by
shooting the dogs. The court held that evi-
dence to support these claims constituted no
defense, and the defendant excepted.
[1] At one time our statutes permitted any
person to kill any dog found hunting a deer.
Acts 1898, Na 108, { 3; Mossman v. Bost>
ridge, 76 Vt 409, S7 AtL 995. But this pro-
vision of the law was soon rqtealed, and lias
never been restored. Acts 1904, No. 130; P.
5. 632S; Acte 1912, No. 201, H 13, 17. The
defendant, however, claimed and claims that
it was within tiis aatborlty as a deputy game
warden to shoot the dogs wUle <diaaing a
deer. He does not dalm tliat he Iiad that
authority by virtue of any express statutory
provlston, for there is no such provision, and
the powers and duties of game wardens are
carefully defined ; but he claims that, as wild
deer within the state are the common prop-
erty of the people of the state (State v. Tberi-
ault, 70 Vt -617, 41 AU. 1030, 48 L. It A. 290,
67 Am. St Rep. 695 ; Payne v. Sheets, 75 Vt
335, 66 AU. 656 ; State v. NUes, 78 Vt 266,
62 Atl. 796, 112 Am. St Rep. 917; Zanetta v.
BoUes, 80 Vt 345, 67 Atl. 818), the state may
do in defense of such property what a pri-
vate person may do In defense of Iiis private
property. But a game warden Is not the
state, nor a general public officer of the state,
and Mb authority in the protection of game
is wholly derived from the statutes, and is
expressly defined thereby. Acts 1912, No.
201, S 73. If it is desirable that game ward-
ens should have authority to do what the
defendant here did, it is for the General As-
sembly, and not for the courts, to confer it
The claim, above stated, was raised by an
exception, which, however, is of no avail.
[2] The defendant in his brief says, in
substance, that on trial he offered to show
that these dogs had before chased deer, and
he claims that, as deer-cbaslng dogs, they
were public nuisances, and might lawfully
be shot by any one. We do not, however, find
in the record any exception that fairly calls
for the consideration of this claim. But, if
we treat the question as raised by any excep-
tion to any ruling, holding, or instruction of
the court adverse to this claim of the defend-
ant, the result is the same. Section 8, Na
108, of the Acts of 1898, already referred
to, forbade, among other things, the keeping
of deer-hunting dogs, but restricted the right
of a private person to kill a dog by virtue of
that statutory provision to the killing of a
dog found in pursuit of a deer. The other
provisions of the section related only to the
penalty of the statute. Mossman v. Bost-
ridge, 76 Vt 409, 57 Atl. 995. It cannot be
held that the repeal of the only clause giving
a private person the right to kill for the ihto-
tection of deer is consistent with the right
to kill in some circumstances for such pro-
tection.
[3, 4] The enforcement of the fish and game
law is in most respects by way of visiting
penalties, in some cases severe, upon those
who violate it In a few instances forbidden
contrivances for taking fish and game are
declared to be the public nuisances, which
any person may destroy, and nothing is to
be deemed a public nuisance solely by reason
of its relation to the destruction of wild
game, unless the statute law declares it to be
so. The court directed the Jury to find a
verdict for the plaintiff for at least nominal
damages, saying:
"The usual roles awlicable to causes of this
kind, that the burden is upon the plaintiff to
make out his case by a fair balance of the tvi-
dence, do not apply, because the court diarges
you, as a matter of law, that you shall find at
least nominal damages for the plaintiff."
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1010
101 ATIiANTIO REFOBTBR
CVt.
To this the defendant excepted, and now
says that It was error, since the only ques-
tion left to the Jury was the question of the
yalue of the dogs, and that on tliat question
the Durden of proof was on the plaintiff.
But the court was not talking about damages,
but about the making out of a case, that is,
the question of the defendant's llabUity, and
was simply explaining to the Jury why he
did not submit that question to their determi-
nation. The charge on the question of dam-
ages was not prejudicial.
Judgment afBrmed.
(»i vt SSS)
STEFFANAZZI et al. v. ITALIAN MUT.
BEN. SOC.
(Supreme Conrt of Vermont. Washington.
Oct. 2, 1917.)
1. Beneficial Associations «=>! 0(6)— Judi-
cial Supervision— Dissolution— GnouNDS.
Where the plaintiffs' property rights were
riolated by their wrongful expulsion from de-
fendant beueiit society, courts may interfere ;
but the wrongful expulsion, in and of itself, did
not aSord grounds for a decree of dissolution.
2. Appeal and Ebrob <3=1009(1)— Dbckee of
Chasceixob— Extent of Review.
In chancery appeals, the Supreme Court
takes the record as it finds it, and from that
alone determines whether the decree below is
right or wrong, and where it does not plainly
appear from the record that the cbaucellor's
decision is erroneous, the decision will be af-
firmed.
Appeal In Chancery, Washington County;
Zed S. Stanton, Chancellor.
Bill by Anselmo Steffanazzl and others
against the Italian Mutual Benefit Society.
From a decree awarding partial relief, plaln-
tlfCs appeal. Afiirmed and remanded.
Argued before WATSON, C. J., and HA-
SBLTON, POWERS, TAYLOR, and MILES,
JJ.
S. Hollister Jackson, of Barre, for appel-
lants. J. Ward Carver, of Barre, for appel-
lee.
POWERS, J. The plaintiffs were wrong-
fully expelled from the defendant, an unin-
corporated association organized for moral,
benevolent, and social purposes, and brought
this bill in chancery, seeking therein rein-
statement to membership, a dissolution of the
society, and a distribution of its funds. They
appeal from a decree in their own favor.
This decree provides for their reinstatement
as members of the society, and restitution
to all rights and privileges Incident to such
membership, but It does not dissolve the so-
ciety. Of this omission the plaintiffs com-
plain.
[11 That a court of equity has Jurisdiction
to supervise to some extent the affairs of as-
sociations of this character, and may, on a
proper shbwlng. even decree a dissolution, is
not here denied. This Jurisdiction Is not.
however, so extensive as In cases of corpora-
tions proper, and is. limited to the protection
of the property ilgbtB of a member. So, If a
member Is wrongfully expelled, a court of
equity is powerless to Interfere, unless be is
thereby deprived of a right of property. Rig-
by V. Connol, L. R. 14 Ch. D. 482; Burke v.
Roper, 79 Ala. 138. It is plain enough that
these plaintiffs* property rights were violat-
ed by their wrongful expulsion, and rein-
statement was their legal right. But tlie
question of dissolution is another matter.
Courts are reluctant to interfere with the
continuance of these associations, and wrong-
ful expulsion does not. In and of itself, afford
sufficient ground for a decree of dissolution.
Burke v. Roper, supra; Thomas v. Ellmaker,
1 Pars. Eq. Cas. (Pa.) 98; Fischer v. Raab,
57 How. Prac. (N. Y.) 87. So far as Gorman
V. Russell, 14 Cal. 531, and 18 Cat 688, re-
lied upon by the plaintiffs. Is to the contrary,
it is unsound.
[2] It is no doubt true that dissensions
might become so violent and differences so
irreconcilable that dissolution would be de-
creed. Lafond V. Deems, 52 How. Prac. (N.
T.) 41. ' And It is argued that so much bit-
terness has been engendered between the ma-
jority and minority members of this society
that the plaintiffs cannot avail themselves
of the decree of reinstatement without dan-
ger of disorder and violence. But the find-
ings do not Justify tliis claim and the evi-
dence la not before us. We again remind
counsel tliat in chancery appeals we sit in
error, only. We take the record as we find
it, and from that alone determine whether
the decree below is right or wrong. We can-
not say, from the record before us, that it so
plainly appears therefrom that the Internal
troubles of this society are of such a seri-
ous and irreconcilable character tliat it can-
QOt longer carry out the purposes of its or-
ganization, or that its offense was of such
a flagrant character that it lias forfeited its
right to exist, that the decree below was, in
the respect complained of, erroneous.
The plaintiffs Insist that they ought to
have damages for being wrongfully deprived
of their membership. But the decree is broad
enough to restore tbem to all their rights,
and to enable them to share in all the bener
fits tluit have accrued during the interval
since thdr expulsion. This is apparently all
they are entitled to. If any other ben^ts,
social or otherwise (see Cnrrler v. Catholic
Order of Foresters, 87 Vt. 83, 88 Aa 625).
have been lost by thein, the findings do not
show It If, as they say tn the brief, they
flbd themselves out of poclcet on account of
this suit, and their d«cree is "una vlttorie
morale, nlente piu"— & moral victory, noth-
ing more — ^tbey may find- some measure of
comfort in the suggestion that this is not an
infrequent result of a lawsuit.
Decree affirmed, and cause remanded, for
such further proceedings, not Inconsistent
herewith, as may be required.
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Vt)
PHEi;PS ▼. UTIiKT
1011
W vt. «)
PHELPS ▼. DTLBT.
(Supreme Court of Vermont WaaUngtoii.
Oct 2, 1917.)
1. Witnesses «s>58(3, 4) — Husband and
WiFB— Compete N cY.
Under P. S. 1592, providing that husband
and wife shall be competent witnesses for or
against each other, except that neither shall be
allowed to testify against the other as to a
statement or other communication to the other
or to another person, nor shall either be allowed
to testify as to a matter which would lead
to a violation of marital confidence, in a hus-
band's action for the alienation of his wife's
affections and crim. con., the wife was a com-
petent witness for the husband as to her rela-
tions with defendant ; she not testifying against
the husband, and her testimony involving do
breach of marital confidence.
2. Witnesses $=s>251 — Examination— BxX-
SONS roB Recolxjection.
In a husband'a action for alienation of his
wife's affections and crim. con., where a witness
testified that he saw defendant and plaintiff's
wife riding together, and that goon afterwards
he met the wife and talked with her, his tes-
timony that this conversation was in refer-
ence to the whereabouts of her husband should
not have been admitted on the ground that it
enabled the witness to fix the date of the oc-
currence, where nothing was said or done that
referred to the date or tended in any way to
fix it
3. Witnesses «=»410 — Right to Cobbobo-
bate Witness— Extbajudicial Conduct.
In a husband's action for alienation of his
wife's affections and crim. con., where the wife
testified for the husband, testimony that un the
day following one of the meetings with defend-
ant to which she testified she was very pale and
nervous and broke down and cried a good deal
should not have been admitted, as it had no
evidentiary consequence, except as tending to
show her guilt and to corroborate her testimony,
and a party may not corroborate his own wit-
ness by showing extrajudicial acta, conduct, or
statements.
4. TsiAL ®=>26, 68(1) — Keopenino Cam-
Postponement OP Tbial.
In a husband's action for alienation of his
wife's affections, the wife testified for the hus-
band concemiug a ride with defendant in his
automobile on a certain road. Defendant tes-
tified that they were away only a few minutes
and went on an entirely different road, and that
he turned around at a place where be formerly
bad a millyard. Held that after the parties
had rested, it was within the court's discretion
to reopen the case and admit testimony offered
by plaintiff that the millyard was fenced on the
roadside, but, having done so, it was error to
deny defendant's application for a delay of the
trial in order that he might produce witnesses to
meet this testimony.
5. New Triai, «=>21— Gbottnds — Denial of
Postponejient.
Where in support of a petition for new trial
because of the denial of such application defend-
ant showed that be and plaintiff's witness were
talking about different sides of the highway and
he produced a photograph making it appear
probable that ihe road ran through the millyard
so that one side was as much the millyard as
the other, and making it likely that the jury
would take this view of the matter, a new trial
would be granted.
Exceptions from Washington County
Court; Fred M. Butler, Judge.
Action by Frank C. Pbelps against Charles
H. Utley. Verdict and judgment for plaln-
tur, and defendant brings exceptions and a
petition for a new trial. Beversed and re-
manded, and petition for new trial granted.
Afgaed before WATSON, O. J., and HA-
SEI/TON, POWERS, TAYLOR, and
MILES, 33.
3. Ward Carver, of Barre, and Fred L.
Laird, of Montpeller, for plaintiff. Dutton &
Mulcahy, of Hardwick, for defendant.
POWERS, J. [1] This is an action on the
case for alienation and crim. con. Much of
the evidence upon which the plalntlft relied
to estabUsb his case came from his wife, who
was admitted as a witness subject to the de-
fendant's exception. This was not error, for
since the passage of P. S. 1592, the compe-
tency of the wife as a witness for her hus-
band has been the rule, and her incompe-
tency, the exception. State v. Muzzy, 87 Vt
267, 88 Atl. 895. So, notwithstanding the
earnest argument here made that this ought
not to be so in a case like this, it it so, since
the wife did not here testify against the hus-
band at all, and it certainly cannot be said
that the telling of the story of her liaison
with the defendant involved a breach of mar-
ital confidence.
[2] Exnersom Hoyt, a witness for the plaln-
tUf, testified that he saw Mrs. Phelps and the
defendant riding together in the latter's auto-
mobile on October 20, 1915, and that soon
after he met the defendant's wife and talked
with her. Subject to the defendant's excep-
tion, he was allowed to state that this con-
versation with Mrs. Utley was in reference
to the whereabouts of her husband. This
testimony was admitted on the ground that It
enabled the witness to fix the date of the oc-
currence. But it did 'not aid the witness in
this way. There was nothing said or done
that referred to the date or tended in any
way to fix it It is not suggested that it was
admissible on any other ground, and It
should have been excluded.
[3] A. D. KimbaU was one of the plaintiff's
lawyers and was a witness in his behalf. He
testified tliat he and the plaintiff went to
Montpeller to oonsult a lawyer and have a
suit brought; that this was on November 3,
1915, which was the day after one of the clan-
destine meetings between Mrs. Phelps and
the defendant, as testified to by her; and
that they had an interview with Mrs. Phelps
at her sister's house that day. Subject to
defendant's exception, he was allowed to
testify that on that occasion Mrs. Phelps was
"very pale and nervous, and broke down
and cried a good deal." It may be stated
broadly that a litigant may prove any act,
conduct, or statement on the part of his ad-
versary which tends to corroborate the claim
of the former or Impeach that of the latter.
But he cannot corroborate himself or his
own witness by showing extrajudicial acts,
conduct, or statements having that tendency.
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1012
101 ATLANTIC EEPOETEE
(Vt
He cannot show the sayings of his witness
out of ooort to corroborate his testimony
given In court. Munson v. Hastings, 12 Vt
316, 36 Ani. Dec. 345; Glbbs v. Llnsley, 13
Vt 208: State v. Flint, 60 Vt 304, 12 AU.
526; Lavlgne v. Lee, 71 Vt 167, 42 Atl. 1093;
State V. Turley, 87 Vt 163, 88 Atl. 562. This
i-ule Is subject to an exception as shown by
State V. ITIlnt, but It does not apply to the
case In hand. So It would have been error
to allow Kimball to testify that Mrs. Phelps
then told lier story Just as she had In court
No more was It proper to show by the wit-
ness an act of Mrs. Phelps consistent with,
and so corroborative of, her testimony. Green
V. State, 96 Ala. 29, 11 South. 47& It was
error to receive this testimony. If Mrs.
Phelps' agitation on that occasion was of
any evidentiary consequence whatever. It
tended to show her guilt, and so to corrobo-
rate her as a witness. It had no other value
as evidence. But under the rule her appear-
ance of guilt was not admissible as evidence
to sustain her or condemn the defendant It
was a purely self-serving circumstance.
[4] Mrs. Phelps testified that she went to
ride with the defendant In his automobile on
the evening of October 16, 1912; that they
started from Oatx>t and drove out on the
Walden Depot road some three miles, and did
not return for two or three hours, and so
forth. The defendant admitted that they
went to ride that night but Insisted that
they were away only 15 or 20 minutes; that
they went on an ^itirely different road ;
that they did not st(^ anywhere, and turned
around, without stopping, at a place where
he formerly had a mlllyard. The parties
rested, and the evidence dosed on Saturday.
The court then took a recess until the fol-
lowing Tuesday momfng. When the court
came in' on Tuesday, the plaintiff asked
leave to withdraw his rest and to introduce
one Fifield as a witness to show that the
mlllyard above referred to was fenced on the
roadside at the time referred to. To this the
defendant objected on the ground that If
admitted, this testimony would raise a new
Issue of fact that he was taken by surprise,
and that U it was admitted, he should be
irtven an opportunity to meet It This ob-
jection was overruled, and the defendant ex-
cepted. Thereupon the witness took the stand
and testified that the mlllyard In question
was fenced on the roadside with a wire fence,
which had stood tliere for about 10 years.
The defendant then asked for a delay of the
trial that he might have time to get witnesses
to meet this testimony. This request was de-
nied, and the defentlant excited.
It is perfectly apparent that it was of vital
importance, so far as the defendant's version
Of the Incident of October 16th was con-
cerned, for him to show that this mlllyard
was not fenced on that date. For if It was,
he could not have turned around there as he
stated. Standing uncontradicted, Flfleld's
testimony Impeadied the defendant and must
have affected his standing as a witness.
Goodall V. Drew, 85 Vt 408, 82 AO. 680.
Opening the case to let Fifield In as a wit-
ness was, of course, a matter of discretion.
So far no error was committed. But opening
the door to the plaintiff and closing it to the
defendant was error. The witness stated a
new fact not before in evidence. The first
opportunity to meet this fact was when the
witness finished. To deny the defendant's
application deprived him of a substantial
right and his exception is sustained. 38 Cyc.
1358; Herrman v. Combs, 119 Md. 41. 85 AtL
1044; Birmingham Ry., L. & Power Co. v.
SaxoiK 179 Ala. 136, 59 Sooth. 684; Ro<^
Island V. Starkey, 189 III. 615, 59 N. R 971;
Kent V. Lincoln, 32 Vt 591 ; 1 Chamb. Ev. i
383.
[C] The defendant brings a petition for a
new trial predicating the same on the facts
and rulings referred to in the discussion of
the exception last above treated. In support
of this petition he makes It appear that he
could have successfully met Flfield's testi-
mony, if he had been given an opportunity
so to do. It now sufficiently appears that Fi-
field was talking about one side of the high-
way and the defendant the other. When the
former spoke of the mlllyard, he referred
to the land on the side where the mill was;
when the latter spoke of It he referred to
the space on the opposite side of the road. It
seems probable from a photograph before us
that the road ran through the mlllyard, and
that one side was as much yard as the other.
It is likely that the Jury would Uke this
view of the matter. Ite petition is meritori-
ous and should be granted.
Judgment reversed, and cause remanded.
PetiUon for a new trial granted, with costa
to the petitioner.
(92 vt. 1ST)
BOSTON & M. R. B. v. UNION MDT. FIRB
INS. CO.
(Supreme Court of Vermont Washington.
Oct 2, 1917.)
1. COVPROUISE AND SBTTLEMENT «=>12— CON-
STRUCTION OF AOBEKintNT — FlRE InSUKANCE.
Where the railroad, wtiose locomotive set the
fire, agreed with the insurers of buildings to re-
imburse them to the extent of 50 per cent of the
loss, not including expenses or discounts, an
item, consisting of an assessment due the in-
surer from the building owner, which the insurer
deducted on paying the loss, was not an expense
or discount, but a valid debt, half of wliich was
payable by the railroad.
2. COMFROUISE AND SETTUSUEITT 4=>15(1) —
Prksumptions.
Agreements, fairly entered into, for the com-
?ironiise and settlement of disputed claims, are
avorubly regarded in a court of equity, and are
supported as beneficial In themselves and con-
ducive to peace and harmony, when this can be
Cone without working injustice, and does not
override other principles upon which courts of
equity proceed in the specific enforcement of con-
tracts.
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BOSTON A M. R. B. T. UNION MUT. FIRE INS. CO.
1013
8. SPECIFIO PEBTOBltAHCE «=a97(l) — PBB-
rOBHANCE BY PLAINTIFJ— TEN DEB— EXCUSE
FOB MAKINO.
Where the railroad whose locomotive set the
fire agreed with the insurers of buildings to re-
imburse them to the extent of 50 per cent, of
the loss, and a dispute arose as to the amount
to be paid, the act of the insurer in bringing
suit un the alleged original liability was notice
of attempted rescission of the compromise, so
as to obviate necessity of tender by the railroad
before suing for specific performance of the
agreement.
4. SFECino Pebfobmanck «=>106(1), 114(4)—
COMFBOMISE AOBEEUENT.
The insurer having sued on the alleged origi-
nal liability, and the railroad having been re-
fused permission to plead the compromise agree-
ment, it was proper for it to ass specific pei^
formance, in doing which it was enough to aver
its readiness and willingness to perform and to
offer to do so.
fi. Compromise and Setilbiiknt «=>11— Pbb-
FOBMA N CB— TiMJB.
No time being fixed by a compromise and
settlement agreement within which it should be
performed, a reasonable time is allowed by law.
6. Specific Pebfobmance ^=>62 — Bioht to
Remedt— Pbevbntion of Fbaud.
Where it appears that a compromise and set-
tlement had been fully performed by certain of
the parties, so that to permit another party to
sue on the original liability would be a fraud
on the others, specific performance of the com-
promise agreement should be granted.
Appeal In Chancery, Washington County;
B. L. Watennan, Chancellor.
Bill by the Boston & Maine Railroad
against the Union Mutual Fire Insurance
Company. Decree dismissing the bill, and
plaintiff appeals. Reversed, and cause re-
manded, with directions.
Argued before MUNSON, C. J., and WAT-
SON, HASBLTON, POWERS, and TAYLOR,
JJ.
George B. Young, ol Montpelier, and Wal-
ter H. Cleary, of Newport, for appellant
Porter, Witters & Harvey, of St. Johnsbuiy,
lor appellee.
WATSON, J. When this case was here be-
fore, the bill was held suiflcient on demurrer,
and the cause remanded. 83 Vt. 854, 77 AtL
874. The cause being then heard before a
epedal master, and exceptions to his report
filed by the plaintiff, the chancellor rendered
a decree overruling the exceptions and dis-
missing the bill, with costs to the defendant.
Therefrom the plaintiff appealed.
The bill is brought to enjoin the defendant
from prosecuting a certain action at law
against the plaintiff, and for the specific en-
forcement of an agreement made between the
plaintiff and the defendant and six other in-
surance companies and Cushman & Rankin
Company. It appears from the master's re-
port that on or about May 12, 1905, the fac-
tory, machinery, and stock of Cushman &
Rankin Company, located at Lyndon, this
state, were consumed by fire, and that the
defendant company and six other Insurance
companies were Insurers of the property
against such loss. It was claimed by the in-
surers and the Insured that the fire originat-
ed from sparks communicated by one of the
plaintitTs locomotive engines. This claim
was denied by the plaintiff. The loss was en-
tire. The insurers settled with the insured
on the basis of a total loss, and by agreement
were subrogated to the rights of the insured.
On November 22, 1905, the plaintiff made an
offer in writing, in the nature of a compro-
mise, in reference to the claims arising out
of the burning of the property, as follows:
"We will pay 60 per cent of the actual
amounts paid to Cushman & Rankin by the
insurance companies, with no allowance for ex-
rises or discounts. We will pay to Cushman
Rankin 50 per cent, of their actual loss over
and above the amount of insurance received by
them, such loss to be determined in the follow-
ing manner, to wit. • • • "
This proposition was accepted by the In-
sured, and by all the insurers, including the
defendant. Both the plaintiff and the de-
fendant entered into this agreement, contin-
gent upon all the other parties coming into
the settlement. The exact amount of the loss
had not then been ascertained. Nothing was
said. In making the offer or in its acceptance,
about any release ; but it was vmderstood, ex-
pected, and intended by every party ttiat, on
the payment to the insurance companies of
50 per cent, of the amount paid by them to
the insured, they would release the plaintiff
from any claim of liability or damage they
might have against the plaintiff by reason of
the burning of the property of the insured,
and it was understood by all the parties,
though not stated, that the settlement would
be for cash.
On July 10, 1906, Henry O. Cushman, who
represented the insured, wrote from Ids of-
fice in Boston to the defendant that the
plaintiff was "ready to pay the portion of
the Lyndon flre loss agreed upon," and in-
closing a release, which be said had been
similarly drawn for each insurance company,
asking the defendant to have it signed and
returned at the earliest moment possible,
further stating that the plaintiff would not
deliver a check for any one loss until all re-
ceipts had been returned, and therefore it
was for the Interest of the defendant, as well
as of others, that they be returned immedi-
ately. The release was returned by the de-
fendant, under date of July 14th, unsigned,
for two reasons: (1) That it was not suf-
ficiently specific as to the loss or liability
covered ; and (2) the amount stated therein
was $741.55, whereas it should be $750.
Regarding the first reason, it is enough to
say that the defendant made and executed a
release in terms satisfactory to itself, and
forwarded the same to Cushman under date
of July 23, 1906, which in this respect was
also satisfactory to the plaintiff. This re-
lease was, however, rejected by the plaintiff,
because the money consideration stated
therein was $750, instead of $741.55. This
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101 ATLANTIC REPORTER
CVt.
position was taken by the plaintiff, because
its offer of compromise (which was accepted)
was to pay 60 per cent of the actual
amounts paid to the Insured by the insurers,
"with no allowance fort expenses or dis-
counts," claiming that the latter sum was
60 per cent of all the defendant paid, and
that if the $16.90 (mentioned below) came
into the matter at all, It was covered by the
words "expenses or discounts," used in the
offer. The defendant dalmed that it paid
the face of Its policies, $1,500; that at the
time of payment the insured owed the de-
fendant $16.90, as and for an assessment
due it at the time of the fire, and the defend-
ant paid Itself, or offset that sum, giving
the insured a check for the balance. The
master flnds the facts connected with the
$16.90 to be as claimed by defendant
[i] We think the latter's position in this
respect was in accordance with the Intended
and reasonable meaning of the compromise
agreement That Item was not "expenses or
discounts." It was a valid debt due from
the insured to the defendant, and as such
could I>e and was used in part payment of
the sum due from the latter to the former
under the terms of settlement; and, when
so used, it properly became a part of the ac-
tual amount paid. In sending the release
last mentioned to Guslunan, the defendant
accompanied it with a letter stating tliat the
release was made to read $750, as that was
the amount which, by its l)ooks, the company
actually paid; that the deduction was for
assessments which were due defendant up to
the date of the fire; that defendant would
not, however, insist upon the payment of the
sum of $750, for the reason that it did not
desire to delay settlement, and, if the plain-
tiff still refused to pay tliat sum, defendant
would accept the $741.55. It appears from
the record that thereupon Mr. Rich, the gen-
eral counsel for the plaintiff railroad compa-
ny, who had these matters in charge, with
full knowledge of the contents of the several
letters from defendant to Cushman, and of
the claim of the former concerning the $16.90,
performed the agreement of comprcxnlse as
to the insured and the other insurers, respec-
tively, paying them in the aggregate the
sum of $8,845.91, or $8,850.91, but took no
further steps toward the performance there-
of as to the defendant
Thus the matters stood until the 27th day
of August, 1908, when the defendant brought
for its benefit in the name of the insured,
an action at law against the plaintiff rail-
road company to recover for the loss sus-
tained by the fire. Therein the railroad com-
pany pleaded the release received by it from
the insured under the compromise agree-
ment us a bar to the action, and to the repli-
cation filed to such plea, setting up this de-
fendant's rights by subrogation, and that
the suit was brouRht for its benefit, the
railroad company interposed a demurrer,
and, the same being overruled, took an ex-
ception, and thereon brought the case to this
court The Judgment of the lower court, up-
holding the replication, was affirmed, and the
cause remanded, in October, 1909. Within
the following month these equity proceedings
were Instituted to have the prosecution of
the suit at law peri)etnally enjoined, and the
compromise agreement specifically enforced.
A temporary injunction was issued and is
still in force.
The master states that the plaintiff is not,
and never has been, ready and willing to
pay the defendant 50 per cent of the amoont
the latter paid the insured ; that it did not
pay at the time defendant returned the re-
lease duly executed, "and has never since
been ready and willing to pay, $750, which
was the amount proposed in the orator's of-
fer, and even now does not place itself on
that ground in the bill now pending, but
therein alleges the amount to be $741.55."
Fairly understood, this finding is tantamount
to saying that the plaintiff is not now and
never has been ready and willing to pay de-
fendant $760 — ^not that plaintiff has not been,
and is not now, ready, and willing to pay
$741.65. It is true that in the tenth and
eleventh peragraiAs of the bill the plaintiff
alleges in substance that it has been and
now is ready and willing, and has offered,
to pay the defendant the sum of $741.55, in
accordance with the terms of the agreement
But its averments and offer in the fifteenth
paragraph are broader as to amount, being
"that it is now ready and willing to pay,
and hereby otters to pay, • • • the one
half of all the money which the defendant
herein paid to the" insured by reason of the
burning of the latter's property, "in comidl-
ance with the terms of said agreement" A
comparative examination of the facts foond
by the master, and those alleged in the \)SI1,
which, on demurrer, were held sufficient to
entitle the plaintiff to the relief sought show
no material difference in matters essential
to the plaintiff's case, except the difference
of $l(t.90 in the sum paid by the defendant
to the insured, and except further, In re-
spect to the plaintiff's willingness, desire,
and offer to perform the compromise agree-
ment
We have already noticed that the said va-
riation of $16.90 was at most a dispute as to
how that item, a mere subordinate matter,
should be treated in determining the actual
amount paid by defendant to the Insured,
in view of the phrase In the agreement
"with no allowance for expenses or dis-
counts," and each party acted according to
Its own view. Whatever the actual amount
paid proved to be under the prot^er Interpre-
tation of the agreement the plaintiff was
iMund to pay, and the defendant to accept
50 per cent tliereof in settlement So the
difference in the views of the parties In this
respect constituted no real obstacle in the
way of executing tlie agreement within such
time as. In the circumstances, would reason-
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BOSTON «; M. B. B. ▼. TTNION MX7T. FIRE INS. 00.
1018
ably answer the requirements ' of Its proyl-
slons. Indeed, by Its letter of July 28, 1906,
to Guahman, of which the plaintiff's general
counsel had knowledge, the defendant offered
to accept the smaller sum if the idaintiff still
refused to pay the larger. If this' difference
had previously been such an obstacle, it was
no longer so.
[2] The agreement included as parties each
and all the Insurers, the insured, and the
railroad company, as required by the latter
and by defendant. It in terms covered all
matters between the railroad company and
each and all the other parties named, grow-
ing out of the burning of the insured's prop-
erty. The claims being made against the rail-
road company were doubtful in character.
Hie contract was single and entire, the con-
sideration of which was the mutual promises
of the parties. It was fully performed by
the insured, by all the insurers, except the
defendant, and by the railroad company, ex-
cept as to the defendant's claim. Nothing
remains to be done, to effect a full perform-
ance by all the parties Interested, except the
payment by the plaintiff company to the de-
fendant of the sum due it under the compro-
mise and the giving of a release by the latter.
The agreement was without fraud or imposi-
tion. It was certain, fair, and Just in all its
parts. Agreements, fairly entered into, for
tbe compromise and settlement of disputed
claims, are favorably regarded in a court of
equity, and are supported as beneficial in
themselves and conducive to peace and har-
mony, when this can be done without work-
ing Injustice, and does not override other
principles upon which courts of equity pro-
ceed Id the si>eoiflc enforcement of contracts.
5 B. G. L. 901 ; this same case, 83 V t 654,
77 AU. 874.
[8,4] The plaintiff's delay in performing
tbe contract as to the defendant since the
latter instituted its suit at law is sulficient-'
ly accounted for. The bringing of that suit,
based upon the alleged original liability of
the plaintiff to the Insured, was notice to
the former of the defendant's attempted re-
scission of the agreement of compromise, and
the necessity of a tendel* by the plaintiff of
tbe sum due defendant under the terms of
that agreement was obviated, If It before ex-
isted; for a tender would' then, ha vie been
useless, and was not' required. Va'n Dyke v.
Cole, 81 Vt. 379, 70Atl. 893>'U08. By plead-
ing in defense of tbe action at law tbe re-
lease given by the insufed in exeentlon of
tbe agreement, the platatlfl nndertoofa! to
stand lipon the agreement as still existing ;
and when the ruling of this court was had
against it on the pleadings In that case, the
plaintiff, without unreasonable delay, filed
its bill, asking that the agreement, as to tbe
defendant's claim, be specifically enforced.
In the drcumsta rices existing; ' the plaintiff
was justified in' instituting proceedings at
once to compel' such enforccnient, and In so
doing it W;9s enough to aver In th^ bill the
plaintUTs readiness and willingness to per'
form in compliance with the terms of the
agreement, and an offer so to do. 3 Pom.
Bq. { 1407; Oakey v. Cook, 41 N. J. Bq.
350, 7 Atl. 495. See Amsden v. Atwood, 68
Vt 322, 35 AtL 811.
[S] The failure of the plalntifl to perform
the contract as to the defendant before the
latter brought the suit at law has not been
so satisfactorily explained. Time was not
essMitial In the perf(»mance of the contract,
but it was materlaL Burton y. Landon, 66
Vt 361, 29 Atl. 374. No time was fixed by
the agreement within which It should be per-
formed, and consequently a reasonable time
was allowed by law. If the contract were
wholly between the plaintiff and the 'defend-
ant, such a delay, without sho'wing circum-
stances reasonably excusing the same, would
very likely defeat the right to the remedy
sought Mr. Pomeroy says:
"If time is material a failure to comply with
the terms of tbe contract is not necessarily a
bar to an enforcement; but it throws upon the
defaulting party the burden of explaining his
neglect and of satisfying the court that, not-
withstandine the failure, a denial of the remedy
to him would be inequitable." Pom. Con. 402.
And In Walker v. Jeffreys, 1 Hare (23 Eng.
Ch.) 341, Vice Chancellor Wlgrara says :
"The general rule in equity I take to bo that
a party who asks the court to enforce an agree-
ment in his favor must aver and prove that be
has performed, or been ready and willing to per-
form, an agreement on his part 'Where, how-
ever, the strict application of that pfeneral rule
would work injustice, the court will relax it
A breach of an agreement may have been com-
mitted, for which a jury would only give a nom-
inal damage. A breach may have been com-
mitted, which a jury would consider as waived ;
and if tbe party committing those breaches has
substantially performed other parts of the agree-
ment, whereby, at his expense, the other con-
tracting party has derived benefits under the
agreement, a court of equity might fail in do-
ing justice, if it refused to decree a specific per-
formance."
[(] The state of things as they existed be-
fore the making of the agreement cannot be
restored by returning to tbe plaintiff what It
paid to the several other parties under the
compromise. The situation of the defendant-
and Its relations to its claim covered by the
agreement have not been so altera that a
spedfic execution would be inequitable.
Nothing Is due it from the plaintiff under
the agreement but money, and for the delay
in the payment of that Interest thereon is In
equity fuU compensation. Such order can be
made as to the costs in the suit at law as td
the court seems Just and equitable. ' The
agreement having been thus executed In re-
^>ect to the claims of all the parties fxcept
the defendant it is but common Justice that'
it be carried into execution in respect to the
claimi of the defendant also. If spedflc en-'
forcement be refused, and the 'defendant al-.
lowed to repudiate the agreement and pros-
ecute the suit at law to final Judgment on Ita
original claim. It woufd operate as a fraud
upon the otjliec Insurers and tbe Insured,
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1016
101 ATLANTIC REPORTER
<Vt
vhose coming Into the settlement the defend-
ant made essential to Its own participation
therein, and as to whom the agreetnent waa
fully executed before the defenidant's at-
tempted repudiation. By reason of the spe-
cial circumstances of the case, and to pre-
vent such fraud and Injustice, spedflc per-
formance would seem to be indispensable to
Justice; and a denial of such remedy would
be inequitable to the plaintlCF.
The plaintiff being entitled to relief on the
facts reported, none of its exceptions have
been considered.
Decree reversed, and cause remanded, with
directions that a decree be entered that, upon
the payment by the plaintiff to the clerk of
the court of chancery within and for the
county of Washington, for the benefit of the
defendant, the sum of $750, with simple In-
terest thereon at 6 per cent from the 1st
day of September, 1906, to the day of pay-
m&it, together with the taxable costs of the
plaintiff named in the said suit at law, to
the time of the bringing of this suit in equity,
less the taxable costs of the plaintiff In this
equity suit, and also less this plaintiff's tax-
able costs as 'defendant in the said suit at law
after the bringing of this suit in equity, both
of which are to be iwld by the defendant
(Union Mutual Fire Insurance Company),
then the prosecution of the said suit at law
shall be perpetually enjoined, and the defend-
ant In this suit in equity shall immediately
execute in due form and deliver to said clerk
of court, for the benefit of the plaintiff, a re-
lease to the plaintiff, which shall be In com-
pliance with the provisions of the said com-
promise agreement: Provided that, if the
plaintiff shall fail to comply with the fore-
going provisions of the 'decree within 30 days
after the entry of the decree by the chancel-
lor, pursuant to this mandate, then the bill
In this case shall be dismissed, with costs to
the defendant, and the defendant left to pros-
ecute the said action at law as it may be ad-
vised.
(»2 Vt. 84)
TOWN OP GLOVB5R v. TOWN OF GREENS-
BORO.
(Supreme Court of Vermont Orleans. Oct 2,
1917.)
1. DOMICILR «=s>4(2)— Ohanok.
A purpose to change, unaccompanied by ac-
tual removal or change of residence, does not
constitute a change of domicile, bat the fact and
intent must concur.
2. Paupebs <ga52(6)-— RaaiDENCi^— SuFrioucw-
OT or EVIDBNCE.
In assumpsit for support of a pauper, evi-
dence held sufficient to sustain a finding that
the pauper bad resided and supported bimself
In defendant town, within P. S. 3667, jiroviding
that the last town where a pauper resided and
supported himself for three years waa liahle for
his support
Exceptions from Orleans County Coort;
Zed S. Stanton, Judge. ,
Assumpsit by the Town of Glover against
the Town of Greensboro for the support of
a pauper. Judgment for plaintiff, after over-
ruling of exceptions to findings of a ref-
eree, and defendant excepted. Affirmed.
nils case was heard below on a referee's
report and defendant's exceptions thereto.
The exceptions were overruled, and Judgment
rendered for the plaintiff, to recover the
amount found to have been expended by it
In the support of the pauper, L. G. Bush,
and his wife. Defendant excepted to the
Judgment
The evidence taken before the referee. In
respect of the intent of the alleged pauper
as to residence. Is made a part of the report,
solely on that question. The ultimate issue
was whether the pauper last resided in the
defendant town for the space of three years,
supporting tilmself and family, as was nec-
essary by statute (P. S. 3667), In order to
the plaintiff's right of recovery for the assist-
ance rendered. The assistance was furnish-
ed by the plaintiff town, part in February,
1914, and part In April, 1914, when Bush
was a resident therein, was poor, and In
need thereof.
At all times mentioned in the findings.
Bush bad a wife, whose needs and poverty
Increased or were relieved, according as her
husband's poverty and means were Increased
or relieved, and who shared with him In the
benefit of the assistaace furnished. Bush
and his wife went to defendant town as
early as January, 1908, and Immediately
took up a residence therein, moving upon and
occupying a farm, keeping house, supporting
themselves, and never received any assist-
ance from the town while either remained
therein. In October, 1910, they moved trom
this farm, taking vrith them their honsebold
goods, storing them In an old building in the
town, belonging to one Carl Thompson
(whose wife is a cousin of Mrs. Bush), after
which Bush and his wife did not keep bouse
in that town. From the time last mentioned
until the following April, Mrs. Bush remain-
ed with her said cousin for tbe most part,
but visited occasionally among neighbors
living in the same town, and continuously
resided in that town from January SI, 1908,
until April, 19U. Mr. Bush also resided
continuously therein from January 31, 1908,
except as stated below.
Immediately after leaving the farm as
stated above, Mr. Bush made a visit to Der-
by, remaining about a week, and returning
to defendant tovm, where he and bis wife
continued to visit with the Thompsons un-
til after the following January, during which
time Bush and his wife helped the Thomp-
sons a bit, and during which time Bush
worked out to some extent in the town ; but
otherwise neither he nor bis wife paid the
Thompsons anything for their support, nor
did the Thompsons pay them, or eithw of
aFor oth«r caaw see nma topic and KET-NUUBBR ta all Ker-Numbared Dlswta and ladasaa
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Vt)
TOWN OF QLOYKR y. TOWN OF OKEENSBOBO
1017
them, anytblng for their aaatatance. Mrs.
Thompson tired of the presence of Mr. Bush
as a guest, and finally told him to get out;
that she had had him there as long as she
wanted him. The referee states that he Is
nnable to find that Bush left the Thompsons
by reason of the Inhospitable suggestion of
Mrs. Thompson ; but thereafter, pursuant to
a previous contract of hiring, Bush, on the
1st day of January, 1911, went to the plain-
tiff town to work for one William Graham,
leaving his wife at the Thompsons in the
defendant town. Bush remained in Glover
in the employ of Graham until February 1,
1911. when he completed his work there, but
by reason of a heavy snowstorm remained
a few days longer, after which he returned
to the Thompsons, where he stayed a day or
80 with his wife. From that time on, until
his final removal from defendant town as
mentioned below, the referee states that he
is unable to find where Bush kept himself;
but he was at the Thompsons only a small
portion of the period.
In the following April (1911) Bush and his
wife, taking their household effects from the
old building, where stored as stated above,
moved from defendant town to plaintiff
town, and have ever since remained therfc
After such removal, and prior to March,
1913, the overseer of the poor of the latter
town had occasion to help them, and on Feb-
ruary 27, 1914, sent notice to the overseer
of the poor of defendant town. In accordance
with the provisions of section 3667 of the
Public Statutes, concerning wlilch no ques-
tion is made. The assistance for which re-
covery is here sought was rendered after the
giving of such notice.
The referee finds that prior to such remov-
al in April, 1911, Bush had been thinking
of so doing, and had been thinking of per-
manently leaving Greensboro, but was una-
ble to find that he ever definitely determined
permanently to abandon that town and take
up his residence elsewhere until at the time
of his removal with his wife in the month
last mentioned. His leaving that town on
previous occasions is found to have been at
most but temporary absence, and his resi-
dence there Is found to have continued from
the 31st day of January, 1906, until April,
1911.
Defendant excepted to the finding last
stated, as not supported by the evidence,
and as inconsistent with the other facts
found, especially that:
"When he [Bush] left defendant town and
went to plaintiff town January 1, 1911, he went
under an agreement to work for Graham two
tnontha, but, as stated, worked only one month,
and while at said Graham's bad no home in de-
fendant town, other than with the Thompsons,
to whose place he could not return as a matter
of right."
Argued before WATSON, C. J., and HAS-
ELTON, POWEES, TAYLOB, and MILES,
JJ.
Cook & Norton, of LyndonvUle, for plain-
tiff. John W. Redmond, of Newport, for de-
fendant.
WATSON, C. J. There can be no doubt,
on the facts foimd, that the alleged poor
person was a resident of the town of Greens-
boro, from January 31, 1908, to January 1,
1911, supporting himself and family, within
the meaning of the law. The real question
Is whether, on the day last named, when he
went to the town of Glover to work for Gra-
ham Tinder a contract of hire, he changed
his residence to that town. If he did, bis
continuous residence In Greensboro was 30
days short of 3 years, the time essential to
the latter's liability. But, if he did not,
then he last resided in that town for the
space of 3 years, supporting himself and
family, and a recovery can be had for the
assistance furnished.
[1] The Intention of a person in respect of
making a change in his place of residence
Is important to consider ; but It is not alone
determinative of the fact of effecting the
change. Domicile is not a tldng resting
wholly In Intention, and residence is a fact
Jamaica v. Townshend, 19 Vt 267; South
Burlington v. Worcester, 67 Vt 411, 31 Aa
891. The person's purpose to change, unac-
companied by actual removal or change of
residence, does not constitute a change of
domicile. The fact and the intent must eon-
cur. He must remove, without the intention
of going back. Mt Holly v. Plymouth, 89
Vt 301, 95 AtL 572. To constitute domicile,
the fact of residence and the Intent to make
the place of residence the home of the party
must concur. FuUuun t. Howe, 62 Vt 386,
20 AtL 101.
[2] The question of the change of residence
in the case before as was to be determined
on all the evidence as to intent, comMned
with tliat I>earing on the actual removal.
We think the finding of the referee, to which
exception was taken, was amply supported
by the evidence, and is not Justly subject to
the criticism made. Nor Is such finding In-
consistent with the other findings, quoted in
the exception, that, while working for Gra-
ham In plaintiff town. Bush "had no home
In defendant town other than with Thomp-
son, to whose place he could not return as a
matter of right" One element of the find-
ing objected to being that the occasions when
Bush was away from the latter town pre-
vious to moving away with his wife In April,
1911, "were at most but tranporary absences,"
there is not even color of inconsistency be-
tween the two findings, for he had not aban-
doned that town as tiie place of bis resi-
dence. Mt Holly V. Plymouth, dted above.
The exception is not sustained in either re-
spect
The exceptions saved In connection with
the admission and use of evidence have not
been briefed.
Judgment affirmed.
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1018
101 ATLANTIC REPORTER
(Vt
(92 Vt 47)
HUBCPHRE7 t. WHEELER.
(Supreme Court of Vermont Orleaiu. Oct. 2,
1917.)
1. Attachment «=3322 — Descxiftioii or
Pboperty — Rettjbn — SumciENCY.
Wbere defendant bad more in number of all
the articles of personalty than were attached,
and tbe officer's return did not show which were
attached, no lien was created.
2. S)viDENCB ^=>340(1) — Cebtifikd Copt of
Attachment — .\dmts8it!it,itt,
A certified copy of the writ of attachment
and the officer's return thereon, filed in the town
clerk's office in making the attachment, were ad-
missible in evidence, in view of P. S. 1456, re-
quiring the clerk to make a record thereol
3. Attachment «=353 — Pbofkbtt Sitbjxot —
Vendob's Likn.
Articles of defendant, upon which there were
vendor's liens for the purchase price equal to or
fn^eater than the value thereof, were not sub-
ject to attachment.
4. Attachment «=>322 — Retubn — Sum-
CIENCY.
Tbe return, rimply naming as attached "one
spike tooth harrow," without giving its location
more definitely than in a named town, was in-
sufficient to create a lien.
Exceptions firom Orleans County Munici-
pal Court ; H. B. Cushman, Judge.
Action by George A. Humphrey against O.
A. Wheeler for the alleged conversion of cer-
tain personal property. Plea, the general is-
sue Judgment for plaintiff, and defendant
brings exceptions. Reversed, with costs.
The plaintiff was a constable, and on the
26th of October, 1916, attached the personal
property sued for in this action upon a writ
duly issued by tbe Orleans coimty municipal
court in a suit brought by W. A. Merriam &
Son against O. A. Wheeler, the present de-
fendant In that suit Judgment was render-
ed in favor of Merriam & Son against Wheel-
er. On the 28th day of October, after the
service of tbe attachment writ and before
the trial in tlie Merriam suit the defendant
Wheeler conveyed away the property in ques-
tion to Ills son, and on a later date, before
the Issuance of tbe execution in the Merriam
case, the said son deeded the property to a
third i)erson, who went into possession of the
same. The present suit was brought by the
plaintiff, as constable, to recover damages for
the alleged conversion of the property by the
defendant after the attachment of it by the
plaintiff as above set forth. Tbe findings of
fact as to the si)ecific items of the personal
property are set forth in the opinion.
Argued before WATSON, O. J., and
HASELTON, POWERS, TAYLOR, and
MILigs, JJ.
W. W. Relrden, of Barton, for plainUff.
Frank J>. Thompson, of Barton, for defend-
ant
WATSON, C. J. [1] The findings show
that at the time of the attachment tbe de-
fendant owned, and bad on his farm in Glo-
ver, 7 cows, 52 bunches of clapboards, sev-
eral bushel baskets, several Fairbanks plat-
form scales, 287 cedar posts, and about 300
bushels of potatoes. Tbe attachment was of
6 cows, 42 bunches of clapboards, one bushel
basket, one Fairbanks platform scales, 200
cedar posts, and 150 bushels of potatoes. Ap-
plying the officer's retiurn to the actual state
of defendant's property, the attachment as
to these articles or kinds of property cannot
be maintained ; for as to each tbe defendant
had more in number than were attadied, and
there is nothing showing which were attach-
ed, and therefore no lien was created thereon.
To give the otflcer constructive possession of
the property attached, it was necessary that
it be described in the return with reasonable
certainty. And sncb. certainty requires that
the property be sufficiently pointed out to
enable the debtor, and those with whom he
may deal, to be Informed that it Is attadied.
Bucklln v. Crampton, 20 Vt 261; Fullam v.
Steams, 30 Vt 443; Pond v. Baker, 65 Vt
400; Barron v. Smith, 63 Vt 121. 21 AtL 269;
Steams v. Slisby, 74 Vt 68, 62 Atl. 116.
[2] The court received in evidence, sub-
ject to defendant's exception, a certified copy
of the writ in the case of Merriam & Son v.
O. A. Wheeler, and the officer's return there-
on, lodged by the plaintiff in the town clerk's
office in Glover, in making the attachment in
question. The reception of this evidence was
not error. When a copy of a writ of attach-
ment upon whldi personal property Is at-
tached, is lodged in the oOlce of the town
clerk, such clerk is required by law to make
a record thereof In a book kept for that pur-
pose. P. S. 1456. The record thus required
to be made is public In character, and a duly
certified copy is admissible in evidence. Pond
V. Campbell, 66 Vt 674; McKlnstry v. Col-
lins, 74 Vt 147, 62 Atl. 438; Ripton ▼. Bran-
don, 80 Vt 234, 67 Atl. 641.
[3] It is found that the meat cart men-
tioned in the return effecting the attachment
was sold conditionally to the defendant by
Taplin & Rowell, of Barton, this state, and
at the time of the attachment they had, and
have ever since had, a valid vendor's lien
on the same for unpaid purchase money, more
in amount than the value of the meat cart
This shows that the defendant did not have
at the time of the attadiment nor has he
since had, any attachable Interest therein. It
is also found that the spring tooth harrow
mentioned in the return was sold condition-
ally to the defendant by F. S. Whitcher, of
Barton, and at the time of the attachment
the latter had, and has ever since had, a
valid vendor's lien on the same for the full
amount of the purchase price. While this
finding Is not in terms that the amount
of the lien is all the harrow is worth, It is
equivalent to that, for it is inconceivable
that an implement of agriculture in use
on a farm appreciates in value. The de-
fendant, therefore, had no attachable totei^
dts>For other eases see same topic and KBT-NVUBBR tn all Key-Numbered DtgeaU and Indexu
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BKtJNSMAN ▼. CROOK
1019
•est In this harrow. Obviously this was the
view of the plaintiff and the attaching credi-
tors, for In this Instance, as well as In that
of the meat cart, neither of them ever paid
or tendered to the vendor the amount due on
the lien.
[4] The return names as attached "one
spike tooth harrow," but It gives no other de-
scription of it, nor Is Its location given more
definitely than In the town of Glover. No
-evidence was offered as to whether the de-
fendant had more than one such harrow In
that town at the time of the attachment. In
this respect the return was like that relating
to the hemlock bark In the case of West Blv-
«r Bank v. Gorham, 38 Vt 649, whldi was
held to be too Indefinite as to the location of
the property to effect any attachment there-
on. Again, In Steams v. Sllsby, dted above.
It was held that such a return, supplemented
by extrinsic evidence showing that the debtor
had only the two horses and surrey sued for.
In the town in which the attadunent was
made, was sufficient. There the court dis-
cussed the distinction at some length, and
made plain the essentiality of such supple-
mental showing, in order to give reasonable
certainty to the description of the property In
sudi a return. It follows that the return as
to the spike tooth harrow was not sufficient
to create any lien thereon.
The foregoing being determinative of the
case, no other question raised by the defend-
ant Is considered.
Judgment reversed, and Judgment for the
defendant to recover his costs.
(130 Md. 661) "
BRUNSMAN v. CROOK et ai (No. 2.)
(Court of Appeals of Maryland. May 4, 1917.
Motion for Modification of Opinion as to
Costs Denied Oct 3, 1917.)
1. Judgment "SssTeSCD — Libk — Tbakbcbwt
or Judgment.
Code Fob. Qv. Lows, art 26, H 19, 20, pro-
vide that when a judgment has been rendered
in one county or in the city of Baltimore it be-
comes a lien ui>on the property of defendant
in such county or city, and that upon the trans-
mittal of the record thereof, together with a copy
of the docket entries, from the court in which
judgment was rendered, it becomes a lien as
from time of its record on all defendant's lease-
bold interests, to the same effect as liens are
rendered by judgment upon realty. Held, that
where a judgment of the superior court of Bal-
timore was transmitted to the circuit court of
one county, the latter court could not treat
it as an original judgment therein, and the clerk
thereof could not certify the proceedings to an-
other county, so as to create a lien on property
in the latter county.
2. Judgment <S=»766— Lien— Copt of Docket
Entbie^.
A judgment is not a lien on land in another
county until a certified copy of the docket en-
tries in the case, taken from the court where
judgment was rendered, is recorded in that coun-
ty, and, until projrerly certified from the court
rendering judgment, an attachment to enforce
the judgment against property in another coun-
ty is unauthorized.
8. APPEAI. AMD EbBOB «=>876 — REVIEW —
Scope — Judgment — Attachment — Ap-
peal FROM Okdeb on Motion to Quash.
Where judgment has been rendered on a
note, matters which were for the consideration
of the jurv cannot be reviewed on appeal from
an order on motion to quash an attachment on
the judgment, and the inclusion of evidence on
such matters in the record is unwarranted.
Appeal from Circuit Court, Howard Coun-
ty ; Wm. Henry Forsythe, Jr., Judge.
"To be officially reported."
Proceeding by Howard A. Crook and Hen-
ry A. Kries, copartners, trading as Crook-
Kries Company, use of David G. Steele,
against Joseph A. Brunsman, garnishee of
James P. Bannon. From an order overrul-
ing a motion to quash a writ of attachment,
defendant appeals. Judgment reversed, and
attachment quashed.
Argued before BOYD, O. J., and BRIS-
COE, THOMAS, URNER, and STOCK-
BRIDGE, JJ.
Jacob S. New and Julius H. Wyman, both
of Baltimore (J. R. Brunsman, on brief), for
appellant. James Clark, of Elllcott City, for
appellees.
STOCKBRIDGB, J. This case Is an ap-
peal from the circuit court for Howard coun-
ty, rendered in an attachment proceeding un-
der the following circumstances. On the
10th of May, 1910, a Judgment was rendered
in the superior court of Baltimore dty
against Francis I. Mooney, trustee, for the
sum of $204.27, and on the 6th of October In
the same year a Judgment was rendered
against James P. Bannon for the sum of
$208.73. The foundation for both of these
Judgments was a promissory note for $200,
to which the Interest between the date of
the maturity of the note and the date of the
rendition of the Judgment as to each defend-
ant was duly entered. In 1916 a writ o* at-
tachment was directed to be Issued from the
superior court of Baltimore city to Anne
Arundel county, and accompanying the writ
was a copy of the docket entries in the
suit in Baltimore city. So far as appears
by the record no return was made to the cir-
cuit court for Anne Arundel county of the
writ issued from the superior court of Bal-
timore city ; but on April 5, 1916, there was
filed an order in Anne Arundel county for a
writ of fl. fa., and in June of the same year,
and without any return having been made
apparently to the writ of fl. fa., there was an
order to Issue an attachment to Howard
county from the circuit court for Anne Arun-
del county.
When the case reached Howard county a
motion was made to quash the writ of at-
tachment Issued from Anne Arundel county,
and, when this motion had been overruled,
the Judgment from which this appeal was tak-
en was entered. The first question for con-
sideration which the record presents is, there-
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fore, tbe correctness of the action of the
circuit court for Howard county In OTerrul-
Ing the motion to quash.
[1,2] The question at Issue is, therefore,
one of practice under sections 19 and 20 of
art 26 of the Code of 1912, which provides,
in effect, that when a Judgment has been ren-
dered in one county or In the dty of Bal-
timore it becomes a lien upon the property
of the defendant in such county or city, and
that upon a transmittal of the record of such
Judgment, together with a copy of the docket
entries, from the court in which the judg-
ment was originally rendered, the same be-
comes a lien as from the time of its record-
ing upon all leasehold interests and terms
of years of the defendant in land, except
leases from year to year, and leases tor
terms of not more than five years and not
renewable to the same extent and effect as
liens are rendered by Judgment upon real
estate.
The error into which the appellee fell, and
apparently also the circuit court for Howard
county, was in interpreting this language as
giving to the copy of the docket entries
transmitted from the court in which the
original Judgment was entered the full force
and effect of an original judgment in the
county to which It had been sent, when, by
its express terms, the act simply makes it a
lien upon certain enumerated lands and inter-
est in lands in such county. The only dock-
et entries which it was possible for the clerk
of the circuit court for Anne Arundel county
to send to Howard county were those relat-
ing to the proceeding in Anne Arundel coun-
ty. He could not certify to the proceeding
had in the superior court of Baltimore city,
in which the judgment was originally ren-
dered; that could only have been done by
the clerk of that court The rule as laid
down in 2 Pee on Practice (3d Ed.) { 377, Is
that "a judgment is not a lien on land in
another county untU a certified copy of the
docket entries in the case, taken from the
court where the Judgment was rendered,
shall be recorded," etc., and no Judgment of
any character was rendered in the circuit
court for Anne Arundel county. The act as
embodied in the present Code is a re-enact-
ment with some slight modifications of a
very early act in this state which came up
for discussion in the case of Harden v.
Moores, 7 Har. & J. 4, decided in 1825, where
the Judgment then under review was one
which had been rendered in Baltimore city,
and was sought to be enforced in Harford
county, and in passing upon that case Judge
Buchanan said:
"An attachment is not an ordinary process,
• • • by which to arrive at the fruits of a
jndgment and will only lie, when specially au-
thorized • • • from the court in which the
judgment was rendered • • * and from the
court of the county in which the defendant may
happen to be, who has fled, removed, or absented
himself from the county in wliich the judgment
was rendered upon the production of a tran-
script of the record."
This case is closely similar to the one now
presented, and the reasoning of that case is
equally applicable to the questions involved
in this appecd. The subject is also consider-
ed in Hodge & McLane on Attachments, i
254, and the rule laid down Is:
"The copy of the docket entries is essential
to inform the court having jurisdiction of the
writ that the judgment upon which it issued
has hem rendered and remains unsatisfied."
To the same purport may be added the
case of Handle v. Mellen, 67 Md. 166, 8 AtL
673.
The appellee now asks the court to reverse
this line of decisions upon the authority of
the case of Parker v. Brattan, 120 Md. 428,
87 AtL 756. The decision in that case is
very far from sustaining the contention of
the appellee. A suit had been instituted in
Wicomico county and was subsequently, but
before trial, removed to Somerset county.
A judgment was rendered in the case in
Somerset county, and a copy of the docket
entries in the last-named county returned to
the circuit court for Wicomico county, where
it was sought to be enforced. It will be ob-
served that, the case having originated in
Wicomico county, when the return of the
proceedings In Somerset county was made,
the circuit court for Wicomico county had
upon its docket the full record of the pro-
ceeding, being the original record of the case
prior to the time of its removal to Somerset
county, and a duly certified transcript or
record of what had taken place in the county
where the judgment was entered. That case,
therefore, is wlthoTit any controlling influ-
ence upon the one now presented, and It fol-
lows from what has been said that the mo-
tion to quash should have been granted.
[3] Several other questions were presented
in the record which this court deems it un-
necessary to consider, as they all arose sub-
sequent to the ruling of the circuit court for
Howard county upon the motion to quash.
The record is considerably lncuml>ered with
evidence relating, or supposed to relate, to
the circumstances attending the giving of the
note which was the foundation of the action.
These circumstances, so far as they were rel-
evant at all, were matters for the considera-
tion of the Jury, and are not properly sub-
ject-matters for review by this court and the
inclusion of this evidence in the record can
find no sufficient warrant
The Judgment appealed from will therefore
be reversed, and the writ of attachment 1»
sued from the circuit court for Anne Arun-
del county to Howard county quashed.
Judgment reversed, and attachment quash-
ed, costs to be paid by the appellees.
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M0AI.PINE y. HoALPnnS
1021
(U6 He. no
McAIiPINB et ■! ▼. McAI/PINB.
(Supreme Judicial Court of Maine. Oct 8,
1917.)
1. Action €=324— Equitable Defenses— An-
tenuptial A QKEEME NTS— Effect.
An antenuptial agreement of a wife to ac-
cept a sum in lieu of all other interest in her
husband's estate, being unexecuted in that it
provided that she should execute the neces-
sary papers to complete it, is not a bar to an
action at law by the widow to recover her dis-
tributive share, but may be enforced in equity.
2. Husband and Wife «=329(7) — Aktbnttp-
TiAL Aqbeements— Execution.
An antenuptial contract, though not signed
in the presence of two witnesses, as required by
Bev. St. 1903, c. 63, { 6, is vaUd and bars the
wife's right by descent to share in the real or
personal estate of her husband.
3. Descent and DisTBtBunoN €=»62 — Ante-
NUPTiAi, AoBEEMENTs— Effect.
Such contract further bars the wife from
petitioning for an allowance from the estate.
Report from Supreme Judicial Court, Cum-
berland County, in Equit.v.
Bill by E>lith H. McAlplne and others
against Alice C. McAlpine. Cese reported.
BUI sustained.
Arsfued before CORNISH, C. J., and KING,
BIRD, HALBY, and PHILBBOOK, JJ.
Peabody & Peabody, of Portland, for plain-
tiffs. Coombs & Gould, of Portland, for de-
fendant
HATjIBY, J. A biU In equity asking for die
specific performance of an antenuptial agree-
ment, and for an injunction restraining the
defendant from prosecuting a petition for an
allowance filed by her In the probate court
for Cumberland county. The defendant filed
a general demurrer to the bill, and an answer
admitting all the facts alleged In the bill; the
case Is before this court upon report.
The plaintiffs are the ctilldren of Silas H.
McAlpine, late of Portland, county of Cum-
berland, who died intestate March 14, 1916;
one of said children being the administratrix
of the deceased. The defendant is the widow
of the said Silas H. McAlpine. On January
6, 1900, Silas H. McAlpine, then a widower,
and the defendant, then Alice C. Moore, both
more than 21 years of age, being engaged to
be married, executed an antenuptial con-
tract, by the terms whereof In consideration
of the mutual promises to marry and of the
gum of $5,000 the defendant "agreed to re-
lease and relinquish, and does hereby release
and relinquish, any and all claims of every
name and nature upon the residue of the es-
tate of said Silas H. McAlpine which, except
for this agreement and contract as the widow
of said Silas H. McAlpine she would have
under the law of the state of Maine, or any
other state of the United States or of any for-
eign country. • • • And she further agrees
to sign all papers, and perform all acts, neces-
sary to carry this contract into execution."
It was provided that the $6,000 named in the
agreonent should be paid the widow after
the decease of said Silas H. McAlpine.
The contract was adcnowledged as the
free act and deed of both parties the day of
Its date, January 6, 1900, but was not exe-
cuted in the presence of two witnesses, as
required by section 6, chapter 63, R. S. 1903,
whldi provides how a marriage settlement
shall be executed. January 17, 1900, the
parties were married and lived together as
husband and wife imtll Mr. McAlplne's de-
cease March 14, 1916.
The Inventory filed In the probate court
shows that the estate of Mr. McAlpine was
appraised, real estate $3,000, personal es-
tate, $19,366.77. March 22, 1916, the adminis-
tratrix of Silas H. McAlpine ottered to pay
to the defendant the sum of $5,000, accord-
ing to the terms of said agreement, which
the defendant refused to receive and release
the estate from all claims according to said
agreement April 25, 1916, the defendant
filed in the probate court for Cumberland
county a petition for an allowance as widow
out of the personal estate of said deceased,
upon which notice was ordered, and this suit
is brought to enforce the antenuptial ctm-
tract dated January 6, 1900, and prays that
the defendant be ordered to perform said
contract and to execute and deliver to the
administratrix a release of eiII her distribu-
tive share of the estate and all claims as wid-
ow, including her claim for a wid-
ow's allowance, and for other appropriate re-
lief. The $5,000 tendered to the defendant
was paid Into court when the bill was filed.
The only Issue in the case is the validity
and construction of the antenuptial agree-
ment above referred to.
The statute under which the defendant
claims the agreement was executed was sec-
tion 6 of chapter 63, Revision of 1003, and so
much thereof as is material reads as follows:
"But a husband and wife, by a marriage set-
tlement executed in presence of two witnesses
before marriage, may determine what rights eadk
shall have in the other's estate during the mar-
riage, and after its dissolution by death, and
may bar each other of all rights in thar re-
spective estates not so secured to them."
[1] It is the claim of the defendant tliat,
as the statute above quoted provides that the
agreement to bar the widow's right in the
real estate of her deceased husband must be
executed in the presence of two witnesses, and
as the paper executed by the defendant was
not executed in the presence of any witness,
that it is not a bar; that the widow can be
barred only in the manner prescribed by the
statute; that the statutes are exclusive and
render all other forma of antenuptial agree-
ments T<Hd and consequently unenforceable
in eqtdty. It is admitted that the agreement
was not a statutory marriage settlement, as
it does not appear to have been executed In
the presence of two witnesses, nor is It
claimed to be a Jointure in Its technical legal
sense, and It is not pretended that It is of It-
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self a legal bar since It distinctly provides
for the further execution of such papers as
may be necessary to make its terms effective
in law. It is an antenuptial contract, an
agreement made by two parties under no dis-
ability, both being sui juris. The agreement
is not a bar to an action at law by the widow
to recover her distributive share of her de-
ceased husband's estate aa it was not fully
executed. It provided that the wife should
execute the necessary papers to complete it
In Bright V. Chapman, 105 Me. 62, 72 AtL
tSO, the court, in discussing the statute above
refecred to, said:
"It does not follow that the section quoted
coven the whole field of marriage settlements.
On the contrary, it is clear that marriage set-
tlements may be made which contain agreements
as to matters growing out of the marriage re-
lations other than 'rights' in the estate of one
or the other. * • * Equity will enforce such
antenuptial settlements."
Practically the same question involved In
this case was discussed in 1761 In the case
of Buckinghamshire v. Diury (2d Ed.) 39, 60,
in which Lord Hardwlcke said:
"The next thing is the consideration of equi-
ty, whether the jointure, or an equivalent to it,
will not bind in a court of equity. * * .*
The general rule is, equity follows the law in
the substance, though not in the mode and cir-
cumstances of the case. Therefore, if that has
been done which is equivalent to what the law
would call a jointure or conveyance of any
other nature, it will bind in equity. • • •
This is built on maxims of equity, which re-
gards the substance and not the form. What
for good consideration is agreed to be done is
considered as done, and allowed all the conse-
quences and effect as if actually done, especial-
ly if the condition of the parties is changed, for
that cannot be rescinded; so what is fairly
done before ought to be established. • • •
Ekiuity has therefore held, that where such pro-
vision has been made before marriage, out of
any of these, she shall be bound by it. * * *
If anything can be clear in equity, it is this;
If such agreements are fairly entered into, they
will be decreed."
It Is true, as argued, that the statute upon
which the respondent relies is the exclusive
way provided by statute for barring the wid-
ow's right of inheritance In her husband's
estate. That is, it is the only legal defense
that can be offered in an action at law
brought by her for her share of his estate
that is given her by the statute. It was so
held in Llttlefleld v. Paul, 69 Me. 627, which
was an action of dower, and In Wentworth v.
Wentworth, 69 Me. 247, which was an action
for dower and an appeal from an allowance
made by the judge of probate. And the gen-
eral rule was recognized in Pinkham v. Pink-
ham, 95 Me. 71, 49 Atl. 48, 85 Am. St. Rep.
392, which was a writ of entry, where the
agreement relied upon was executed during
coverture. The court In these cases where it
was held that the statute was exclusive was
discussing actions at law.
In nearly all the courts of this country
where the validity of agreements similar to
the agreement in this case has been passed
upon, It has been held that the statute was
not exclusive, but simply a statutory declara-
tion that parties about to be married could
by executing a contract as prescribed by
statute bar the woman's Interest in her hus-
band's estate, and that statutes similar to
ours do nof deprive her of the power to
bar her rights in her husband's estate 1?
her antenuptial agreements. That the stat-
ute is but a declaration of the effects of the
settlement in that class of cases. As said in
Freeland v. Freeland, 128 Mass. 509, In con-
struing a somewhat similar contract:
"This is a valid contract under the General
Statutes, * * * so far as it relates to the in-
terest of either of the parties to the intended
marriage in tlie estate of the other during the
coverture. So far as it relates to the rights of
the survivor in the estate of the other after
the termination of the marriage r^ation by
death, it is valid, independently of the statnte."
Jenkins, Adm'r, v. Holt, 109 Mass. 261,
was a bill in equity brought to enforce the
specific performance of a marriage contract
by which the defendant covenanted not to
claim dower or any distributive share of
her intended husband's estate, and the coart
said:
"The validity of such a contract, and the pow-
er of a court of equity to enforce its speciSc
performance, has been fully recognised by this
court"
The defendant In that case claimed the
contract was void because it was not record-
ed as required by the general statutes, and
the court said:
"The contract here sought to be enforced re-
lates only to the rights which the survivor may
claim in the estate of the other when the mar-
riage * • • is terminated by death. Its va-
lidity does not depend on the statute. It is as
independent of its provisions as a strict settle-
ment by jointure or a pecunisuy provision as-
sented to by her in lieu of dower, and these have
long been recognized as valid antenuptial agree-
ments."
1. In Hiegar v. Schalble, 81 Neb. S3, 115
N. W. 560, 17 L. R. A. (N. S.) 866, 16 Ann.
Cas. 700, the court reviewed at length the
decisions as to the antenuptial contracts, and
shows that the great weight of authority In
this country is that antenuptial contracts be-
tween persons contemplating marriage, set-
tling prospective rights of the wife In the
property of the husband, when the marriage
is terminated by death, are valid, independ-
ently of the statutes, and will be enforced by
the equity courts. And In Kennedy v. Ken-
nedy, 150 Ind. 636, 60 N. B. 756, the contract
did not comply with the statute, and the
court said:
"No principle seems to be more fully settled
at the present time than that an adult woman,
before her marriage, may bar her legal rights
in her husband's estate by her agreement to ac-
cept any other provisions in lieu thereof, and
such an agreement will be upheld and enforced
by the courts, in the absence of fraud or im-
Sosition upon her, and where it may be said, un-
er the particular drcumstancee, that it is not
unconscionable."
Also Ix>gan V. Philllpps, 18 Mo. 22, and
cases cited in Riegar t. Schalble, supra.
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TrBBETTS T. CURTIS
102S
[2, S] From an examination of the anthori-
tles there can be no question but that the
contract signed by the plaintiff In this case
was a valid contract, and barred her right
by descent to share in the real or personal
estate of ber husband. But it Is urged that
she Is not barred from petitioning for an al-
lowance from the estate. It was held In
Rlegar v, Schalble, supra, that If the ante-
nuptial contract was valid and enforceable,
It should be ^ven full effect, and the widow
denied any interest in, or any part of, the
husband's estate. By the terms of that con-
tract her dower Interest was barred by con-
tract prior to marriage, on the same principle
the allowance awarded the widow by statute
would also be barred, and the same in this
case, that, the agreement being valid and
enforceable, it bars her right to an allow-
ance as It bars her right to share in the es-
tate by descent In Bright v. Chapman, su-
pra. It was held that a marriage settlement,
no broader than the contract in this case,
Included a claim of the widow for an allow-
ance, and that equity would enjoin the prose-
cution of the petition for an allowance.
There being no pretense of any fraud or
imposition In procuring the contract, the
consideration therefor being adequate, its
terms not being unreasonable, the parties, at
the date of its execution, being competent
to contract, and they having partially per-
formed the terms thereof, the death of Silas
H. McAlpine fixed the rights of the defendant
in his estate according to the terms of the
contract, and equity will decree that the
defendant execute the necessary instruments
to carry out the provisions of the contract
The 16,000 deposited with the clerk by the
administrator should be paid the defendant
as the amount due her by the terms of the
contract
Bin sustained, with costs. Decree in ac-
cordance with the opinion.
(116 Ue. S3e)
TIBBETTS V.
CURTIS et aL
(Supreme Jadidal Court of Maine. Oct 16,
1917.)
1. Wills «=>439— Constbtjction— Iwtentiok
or Testator,
The intention of a testator, collected from
the whole will and all the papers constituting
the testamentary act govems the construction
of the will.
2. Wills «=>487(3) — CoNSTBUcxiorf — Evi-
dence—Declarations OF Testatok.
The intent of a testator is to be sought in
the will as expressed, and his declarations be-
fore or after the will was made cannot aid the
interpretation.
3. Wills ®=9656 — Constbuction — Condi-
tions — "Contirus to Cask fob Ueb
Fatheb."
A testator, who had bequeathed $3,500 to
his brotlier, S., executed a codicil, revoking such
bequest and bequeathing $2,000 to C, in trust
to be used for the benefit of S., thereby giving
C. absolute control of such sum in his discre-
tion, not confining him to the income for the
benefit of S., "if the said S. shall survive me,"
but authorizing him to use the principal, if
necessary. The codicil farther provided that, if
any of the trust fund was unexpended on the
death of S., the trustee should give S. a Chris-
tian burial and erect a gravestone, and that if
there should be any balance remaining it should
be paid to S.'s daughter "providing she shall
continue to care for her father," or to such per-
son other than the daughter, who should care
for S. S. died before the testator, but had not
been buried prior to the testator's death. At
the date of the codicil. S. was living with the
daughter, who was then caring for him, and
connnucd to care for him until his death. Held,
that the phrase, "providing she shall continue to
care for her father," meant to continue to care
for him as she was caring for him when the
codicil was made.
4. Wills «=»77ft— Lapse— Death of Bbnb-
FICIABT OF TbUST.
The conditional clause, "if the said S. shall
survive mo," applied only to the use of the fund
for the benefit of S. during his life, and did not
affect the remainder of the testator's plan, and
the bequest in trust for the burial of S. and the
erection of a gravestone, and to the daughter,
did not lapse because of the death of S. prior to
that of testator.
Exceptions from Supreme Judicial Court,
Androscoggin County, in Equity.
Suit by Gertrude Tibbetts against Charles
F. Curtis and others. A decree in favor of
plaintiff was af&rmed by the supreme court
of probate, and respondents bring exceptions.
Exceptions overruled.
Argued before CORNISH, C. J., and KINQ,
BIRD, HANSON, and MADIGAN, JJ.
White & Carter, of Lewiston, for plaintiff.
Tascus Atwood, of Auburn, for respondents.
BIRD, J. The will of George W. Curtis,
bearing date the 26tb day of October, 1910,
among other legacies, gave to his brother
SUas Curtis the sum of $3,500. On the IStta
day of November, 1915, he executed a codicil
to bis will, which, omitting formal parts, is
as follows:
"I now revoke item sixth in said will, where-
in I bequeathed thirty-five hundred dollars, to
my brothor Silas Curtis, of Wayne, and I now
give and bequeath to Charles F. Curtis of Au-
burn, Maine, two thousand dollars ($2,000.00),
in trust, to be used by him for the benefit of
my said brother Silas Curtis, hereby giving said
Charles F. Curtis absolute control of said sum
in his discretion, not confining him to the in-
come thereof, for the benefit of my brother
Silas, if the said Silas shall survive me, but
authorizing him to use from the principal of
the same, when in his judgment it ihaH l>ecome
necessary.
"Should any of said trust fund be unexpend-
ed on the death of my said brother Silas, I
direct said trustee to use from said fund to give
my said brother a Christian burial and erect a
gravestone to his memory and, if after these ex-
penses shall have been incurred there shall be
any balance remaining, I direct my said trustee
to pay it to my niece, Gertrude Tibbetts, pro-
viding she shall continue to care for her father.
If some one other than the said Gertrude cares
for my brother Silas I direct said trustee to pay
what may be left, if any, to that person."
Both the will and codicil were duly proved
and allowed in the probate court of Andros-
coggin county and defendant Charles F. Cur-
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1024
101 ATIANTIC RBPORTBR
(Me.
tis appointed executor. Silas Curtis, baring
predeceased the testator, Gertrude Tlbbetts,
his daughter, brought her bill In equity for
the construction of the codicil In the probate
court of Androscoggin county. Other facts
essential to an understanding of the case will
be found in the opinion of the Judge of pro-
bate, which we quote in full:
"A decision of this case calls for the construc-
tion of the codicil to the will of George W. Cur-
tis, late of Auburn, deceaaod. The codicil in
question is dated November 18, 1916. Silas
Curtis, therein named, died December 23, 1915.
George W. Curtis, the testator, died February
15, 1916. It is admitted that at the date of
the codicil the said Silas Curtis was living with
the plaintiff, who was then caring for him, and
contmued to care for him until his death. It is
further admitted that at the time of the filing
o{ the bill the remains of said Silas Curtis were
in a tomb or receiving vault and had not been
buried, nor had a gravestone been erected to
his memory; but while the case has been pend-
ing in this court the expenses of the burial anil
of the gravestone have been paid by the respond-
ent Charles F. Curtis, in accordance, as he says,
with a request of George W. Curtis.
"The plaintiff contends that by the codicil a
trust fund of $2,000 was created, to be applied,
first, for the benefit of .Silas Curtis, if Silas
survived the testator; second, to provide for a
Christian burial of Silas Curtis and for the
erection of a gravestone in his memory; and,
third, the balance was to be paid to the niece,
Gertrude Tibbetts, provided she continued to
care for her father.
"The contention is that the clause 'if said
Silas shall survive me' applies only to the use
of the fund for the benefit of Silas during his
life, and that the further provisions indicate an
intent on the part of the testator to provide for
the burial of his brother and for the erection
of a gravestone to bis memory, and to recog-
nize the care which the plaintiff, Gertrude Tib-
betts, had rendered and should render to her
father.
"The defendant Charles F. Curtis, on the oth-
er hand, contends that the whole bequest was
conditional upon the survivorship of Silas, and
that, Silas having died before the testator, the
trust never became operative; that there is no
obligatitm on his part to pay from the fund the
expenses of his burial or to erect a gravestone
to his memory; and that the niece, Gertrude
Tibbetts, is not entitled to any portion of the
fund.
"The difference in the views of the parties
arises from the location of the phrase "if the
said Silas shall survive me,' which it will be no-
ticed is inserted between two clauses of the will
relating to the use of the fund. The defendant
Charles F. Curtis would construe the will as if
the clause 'if the said Silas shall survive me'
had been inserted after the words 'two thousand
dollars,' so that the codicil would read:
" 'I now give and bequeath to Charles F.
Curtis, of Auburn, Maine, two thousand dol-
lars if my brother Silas Curtis shall survive
me, in trust to be used by the said Charles F.
Curtis for the benefit of my said brother Silas
Curtis, and hereby give said Charles F. Cur-
tis absolute control of said sum in his discre-
tion, not confining him to the income thereof
for the benefit of my brother Silas, but author-
izing him to use from the principal of the same
when in his judgment it shall be necessary.'
"The counsel for the several parties have
stated their contentions with much positivenoss.
I have therefore examined the case with much
care and given it careful consideration.
[1,2] "It is familiar law, and not disputed,
that the intention of the testator, collected
from the whole will and all the papers which
constitute the testamentary act, is to govern;
that the intent is to be sought in the will as ex-
pressed; and that the declarations of the tes-
tator before or after the win was made can-
not aid the interpretation.
" 'It may well be doubted if any other souiee
of enlightenment in the construction of a will is
of much assistance than the application of
natural reason to the langnage of the instru-
ment, under the light which may be thrown up-
on the intent of the testator by the exttinme
circumstances surrounding its execution, and
connecting the parties and the property devised
with the testator and with the instrument it-
self.' Clarke ▼. Johnston (Miller, J.) 18 WalL
493, 21 L. Ed. 904, cited and quoted in Brad-
bury V. Jackson, 97 Me. 456, 456, 64 AtL 1068.
"Citations of adjudicated cases cannot afford
much aid. 'No two wills are ever precisely
alike. No two testators are situated precisely
the same, and it is both unsafe and unjust to
interpret the will of one man by the dubious
light afforded by the will of another.' Brad-
bury T. Jackson, 97 Me. 455, 456, 54 AtL 1070.
[3, 4] "After considering the will and codicil
in all their details, and weighing all portions
thereof, I think George W. Curtis had in mind
several objects, all parts of one plan, which
I would state as follows:
"(1) To reduce an absolute legacy of $3,500
to the smaller sum of $2,000, placing the latter
sum in trust.
"(2) To provide from this fund for the care
of his brother Silas while he lived.
"(3) To provide for his burial and the erec-
tion of gravestones, having in mind the con-
tingency, which has happened, that his own
death might follow the death of his brother so
closely that he could not attend to the burial
himself.
"(4) To make provision for the niece, Ger-
trude Tibbetts, if she continued to care for
her father, as she was doing when the codicil
was made; and
"(5) If through sickness, death, or other cause.
Mrs. Tibbetts could not care for Silas Curtis, to
provide for whoever mi^ht furnish such care.
"I think that the phrase 'providing she shall
continue to care for her father* means to contin-
ue to care for him as Mrs. Tibbetts was caring
for him when the codicil was made, and as she
continued to care for him until the day of his
death. If the codicil is construed as the defend-
ant Charles F. Curtis contends, by reading the
conditional clause into the instrument immedi-
ately following the amount of the legacy and
before the declaration of trust, the whole plan
has failed; he is under no obligation to pay
for the burial of Silas and the erection Ol
gravestones, and there is no recognition of the
care rendered by the plaintiff to SUas Curtis.
By his action in assuming to pay these expenses
he cannot affect the plaintiff's rights. But
reading the codicil as it is written, with the
conditional clause placed parenthetically be-
tween the clause relating to the application of
the income and the clause authorizing the use
of tbe principal, the intention of the testator,
that tbe death of Silas is not to affect the re-
mainder of tbe plan, is emphasized and made
clear.
"I cannot think that it was the intention of
the testator that the whole plan should fail it
he survived his brother, and the language of
the codicil, considered in all its parts, does not
require such a construction.
"So construing the codicil, the case falls rath-
er under the doctrine of Thompson v. Thornton,
197 Mass. 273, 83 N. E. 880, and simUar cases
cited in behalf of the plaintiff, than under the
doctrine of Huston v. Dodge, 111 Me 246, 251,
88 Ati. 888, and Harlow v. Bailey, 189 Mass.
208. 75 N. E. 259, cited in behalf of the de-
fendant Curtis.
"I therefore rule that the bequest to Charles
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N. J.) S0C3IETT POR USEFUL SfFRS. t. BOARD OF CONSERVATION, ETtt 1025
F. Curtis of 12,000 in trust, fia nade in said
codicil, has not lapsed ; that the expenses of
the burial of Silas Curtis and the erection of
a gravestone to his memory are a charge against
that fund ; and that the plaintiff, Gertrude Tib-
betts, is entitled to the balance of the fund
after these expenses have been paid."
From the decree entered In accordance
with the opinion, and ordering that the costs
of complainant, taxed at a sum certain, be
paid from the general assets of the estate,
the respondents appealed, giving as reasons
of appeal: (1) That, it being admitted that
Silas died before the testator, the legacy of
$2,000 In trust lapsed ; (2) that the only in-
terest ot complainant in the estate was con-
tingent upon her father's surviving the tes-
tator and her continuing to care for her
father in case he survived the testator; (3)
that the complainant is entitled to no part of
the trust fund, so called, as It never came in-
to being; (4) that the complainant is not en-
titled to costs.
Upon hearing in the supreme court of pro-
bate, It was decreed that the appeal be dis-
missed, with costs, the decree of the Judge
of probate aUlrmed, and the case remanded
to the probate court.
Tb this decree of the supreme court of pro-
bate the respondents had exceptions, upon
which the case is now before us.
It Is the opinion of tlie court that the ex-
ceptions must be overruled, for the reasons
set forth in the opinion of the Judge of pro-
bate, which the Justice sitting In the supreme
court of probate made part of his rescript.
To it we can add nothing, save to call atten-
tion to the cases of Adams v. Legroo, 111
Me. 302, 807, 89 AU. 63, and Prescott v. Pres-
cott, 7 Mete. (Mass.) 141, 146, which are in
harmony with the opinion.
Exceptions overruled.
Costs of complainant in this court to be
paid from the general assets of the estate.
Case remanded to the supreme court of
probate of Androscoggin county for further
proceedings in accordance with this opinion.
(90 N. J. lAW. i68)
SOCIETY FOR ESTABUSHING USEFUL
MANUFACTURES v. BOARD OF CON-
SERVATION AND DEVELOPMENT et al.
(Supreme Court of New Jersey. Sept. 14,
1917.)
(Syllabvt hy the Oouri.)
1. Watem and Wateb OotjRSBs <s=190— Mtr-
KiciPAL Watck Supply— Appbovai, bt
BOABD or CONSKBVATION AND DKVELOPIIXNT
—Conditions.
Upon an application by the district board of
water supply commissioners, under the act of
March 16, 1916 (P. L. p. 129), to the board of
conservation and development, created by Act
April 8, 1915 (P. L. p. 426), for iu approval and
consent to the diversion of water for an addition-
al water supply to the cities of Newaric and
Paterson, the board of conservation and develop-
ment has power to attach reasonable terms and
conditions to its approval and consent which, are
germane to the subject-matter.
2. Watebs and Wateb Courses ^=3190— Mu-
nicipal Water Supplt — Consent of
Board op Conservation and Development
—Reasonableness or CosDrrioNS.
For Budi terms and conditions, la this ease^
see the opinion.
Certiorari by the Society for ESstablishing
Useful Manufactures to test the legality of
the approval and consent by the Board of
Conservation and Development, on a petition
filed by the North Jersey District Water
Supply Commission. Certiorari dismissed.
Argued June term, 1917, before SWAYZB,
BBRGBXSr, and BLACK, JJ.
Humphreys & Sumner, of Paterson, and
Gilbert Collins, of Jersey City, for prosecu-
tor. John W. Wescott, Atty. Gen., for the
State. Harry Kalisch, of Newark, for City
of Newark. Francis Scott, of Paterson, for
City of Paterson. Spaulding Frazer, of NeW'
ark, for North Jersey Dlst. Water Supply
Commission.
BLACK, J. Approval of the application of
the North Jersey District Water Supply Com-
mission, and a consent to the diversion of wa-
ter from the Wanaque river, as proposed
therein, for an additional water supply for
the cities of Newark and Paterson was given
by the board of conservation and develop-
ment on the 19th day of December, 1916.
This approval was made under a iwUtion
filed by the North Jersey District Water Sup-
ply Commission on the 9th day of October,
1916. The board of conservation and devel-
opment was created by an act of the Legisla-
ture, approved April 8, 1915 (P. L. 1915, p.
426). The certiorari was issued in this case
to test the legality of such approval and con-
sent The approval and consent was given
subject to the following terms and condi-
tions:
(1) The North Jersey District Water Supply
Commission shall pay or cause to be paid to the
state on behalf of each of the munidpalities sup-
plied with water under this approval such an-
nual charge as is now made or may be here-
after authorized by law.
(2) This approval shall not become operative
unless said commission shall have filed With
this board within 90 days from date hereof its
written agreemeiit accepting the terms and con-
ditions hereby imposed.
(3) The North Jersey District Water Supply
Commission shall in good faith begin the con-
struction of the storage reservoir mentioned in
its application within one year from the date of
this approval and shall complete the same vrithia
five years.
(4) The maximum diversion from the Wana-
que river autiiorized by this approval is an aver-
age of 50,000,000 gallons per diem for any peri-
od of thirty consecutive days.
(5) The dry-season flow of the Wanaque river
below the dam must at all times be maintained
at a minimum of 12,000,000 gallons per diem.
(6) This approval is given subject to the vest-
ed rights of all persons, corporations, or munic-
ipalities affected by the proposed plan.
(7) In the event that any of the conditioBs
herein imposed axe violated and such violation
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1026
101 ATLANTIC REPORTER
(N.J.
■hall be establiBhed to tiie aatisfaction of this
board, this assent shall thereby be abrogated.
The proeecutor has valuable water rights
in the Passaic river, of which the Wanaque
river is a tributary.
[1] The ground of attack is that under sec-
tion 6 of Act of 1916, p. 131, the jurisdiction
of the board of conservation and develop-
ment is confined to giving or withholding its
consent to the proposed diversion and to
nothing else; in other words, the terms and
conditions, as set forth above, on which the
approval and consent were given, renders it
Illegal. A correct solution of this question
involves, of course, a critical examination of
the statutes, under which these two boards
were created. A short summary or history of
such legislation is as follows: A state water
supply commission was created by an act of
the Legislature, approved June 17, 1907 (P.
L. 1907, p. 633). Among other things, it pro-
vides for the approval of plans for munid-
pal corporations, obtaining new or an addi-
tional source of water supply. It may, by
that act, "either approve such application, re-
ject it entirely, or ai^rove the same subject
to such reasonable terms and conditions as
the commission may prescribe." Section 3 of
this act was referred to In Mundy v. Foun-
tain, 76 N. J. Law, 701, 71 Atl. 603. By the
act approved April 8, 1915 (P. L. 1915, p.
426), the board of conservation and devel-
opment, the defendant in this suit, was Cre-
ated as the successor to the state water sup-
ply commission, repealing all acts inconsist-
ent therewith (section 16), but "shall succeed
to and exercise all the rights and powers and
perform all the duties now exercised and
IKrformed by or conferred and charged upon
the state water supply commission." Section
5. "The board of conservation and develop-
ment shall have full control and direction of
all state conservation and development proj-
ects and of all work in any way relating
thereto, except such work as is conferred up-
on other boards, not included within the pro-
visions of this act" Section 7. By the act
approved March 16, 1916 (P. I* 1916, p. 128),
the state was divided into two water supply
districts, to be known, respectively, as the
North Jersey Water Supply District and the
South Jersey Water Supply District The
act approved March 16, 1916 (P. U 1916, p.
129) provides for the anwintmeut of district
boards, as provided and authorized by the
previous act and defining their powers. It
was under this act that the commissioners of
the North Jersey Water Supply District pe-
titioned for the consent which is the disput-
ed point in this litigation (section 6, which
provides "upon the filing of such petition the
said district water supply commission, after
obtaining the consent of the state water sup-
ply commission or its successor, to the diver-
sion of waters for such water supply," shall
proceed to formulate plans, etc.). The argu-
ment is: This section provides for a bare
consent and nothing more. But this ignores
the legislation and the power granted in that
legislation to the board of conservation and
development above cited. We think it Is too
plain for argument that under this legisla-
tion the board of conservation and develop-
ment had not only Implied, but express, pow-
er to attadi to its approval and consent the
terms and conditions above set forth, as
shown in the record. In addition to what
seems to us to be the clear expressed . inten-
tion of the Legislature, these terms and con-
ditions are all strictly germane to the sub-
ject-matter that was then before the board
for action; they are necessary Incidents to
make eflCective, If not efficient the approval
and consent of the board. The construction
contended for by the prosecutor is too narrow
and artificial; it would strip such approval
and consent of its vitality, and, as we think,
in direct opposition to the expressed inten-
tion of the Legislature, viz. that the board of
conservation and development had the power
to impose these terms as conditions prece-
dent to its approval and consent
[21 The only other question is whether
such terms and conditions Imposed were rea-
sonable. We think th^re Is nothing unrea-
sonable in any of them. There is nothing
else mooted in the record which calls for dis-
cussion.
The certiorari in this case la dismissed,
with costs.
PASSAIC TRUST & SAFE DEPOSIT CO. t.
EAST RIDGELAWN CEMETERY et al
(No. 42/356.)
(Court of Chancery of New Jersey. Aug. 6,
1917.)
Tbusts $=3178— Exeodtion— iRSTBUcnoif or
COUBT,
The terms of a trust not beine alleged to be
in doubt, a bill for the aid and direction of the
court to the complainant as trustee of certain
express trusts will be dismissed, where it ap-
pears therefrom that there is no present duty to
be performed by complainant and that no such
duty can arise until there is a demand for dis-
tribution of the trust fund which complainant
controls.
Bill between the Passaic Trust & Safe De-
posit Company and the East Rldgelawn Cem-
etery and others. Bill dismissed.
William F. Oaston, of Passaic, and John
Guyton Boston, of New York City, for com-
plainant Edwards & Smith, Raymond Daw-
son, and M. T. Rosenberg, all of Jersey City,
and Adam Frank, of New York City, for de-
fendants.
FOSTER, V. C. This is a motion to strike
out the bill of complainant. Thirty-one rea-
sons have been assigned against the entire
bill, and 13 additional reasons against part
of it
The bill seeks a variety of relief, and It Is
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PASSAIC TfiXJST A S. D. CO. v. EAST KIDQEL.AWN CEMETERY
1027
ostensibly filed for the aid and direction of
the court to the complainant, as trustee of
certain expressed trusts; actually it Is filed to
obtain a determination, among other matters,
of the validity of certain cemetery promotion
schemes which were not approved In this
court. In Bast Rldgelawn Cemetery v. BVank,
77 N. J. Kq. 36, 78 Aa 1006, or In the Court of
Elrrors and Appeals, In Attorney General v.
Linden Cemetery, 85 N. J. Eq. GOl, 06 AtL
1001. These cases did not pass directly upon
the merits of certain so-called curative legis-
lation, viz. chapter 299 of P. L. 1911, and
chapter 272 of P. L. 1913, mentioned in this
bill.
The bill, in addition to the above matters,
propounds a number of questions, some of
which relate to the discovery of the persons
to whom and their interest In the trusts
which it la alleged the cestui que trust trans-
ferred to them. Some relate to questions
now undetermined in causes pending in this
court and in the Supreme Court of the state
of New York, wherein the validity of the
trusts is brought in question; and some relate
to the prosecution of actions, or the protec-
tion of alleged rights with which the allega-
tions of the blU do not disclose complainant
to be in any way concerned.
In regard to the expressed trusts in which
complainant is alone directly Interested, it
appears from the bill that the defendants
Adam Frank and George B. Pond caused the
defendants East Rldgelawn C«metery and
West Rldgelawn Cemetery to organize In 1905,
and that through their "dummy," the defend-
ant Herbert Oruber, they caused certain
lands in Passaic county to be conveyed to
complainant upon certain expressed trusts,
set forth at length in the deeds of conveyance
and in' two declarations of trust ; that subse-
quently complainant, as trustee, conveyed
these lands to the cemetery companies upon
the same expressed trusts, among which were
that the lands were to be used for cemetery
purposes. As a consideration for these con-
veyances the cemetery companies issued to
Bald Gruber a paper which is termed a "Joint
ownership certificate," for 13,500 "shares of
this association," which were transferable
by the holder. Gruber transferred the shares
represented by this certificate to Frank and
Fond; and subsequently Frank acquired all
of Pond's Interest In them.
Complainant by its declarations of trust
further stipulated that one-half of the pro-
ceeds of the sale of lots and plots in each
cemetery was to be paid to It as trustee, and
to be by it divided among the 13,500 shares
represented by ownership certificates, duly
authenticated by complainant as trustee. Al-
though it is alleged that Frank has sold a
number of the shares represented by the
ownership certificate issued to Gruber and
assigned to him, none of the purchasers
tliereof have bad the shares transferred to
tbem on the books of the cemetery compa-
nies, and caused new ownership certificates
therefor to be issued to them, duly certified,
as required, by complainant as trustee. And
no offer has been made to complainant by any
one to surrender ownership certificates for
the trust certificates, as required by the dec-
laration of trust.
Complainant has In band from the pro-
ceeds of the sale of lots and plots in East
Rldgelawn Cemetery about $11,000, and has
not received any payments from West Rldge-
lawn Cemetery. Demands have been made
on complainant by purchasers of ownership
shares from Frank for a share of this fund,
and several actions have been commenced
against complainant to compel its distribu-
tion, and most of them have been discontin-
ued.
From the situation thus presented it Is ap-
parent there Is no present exigency in respect
to these matters, requiring an answer from
complainant or from the court. The terms
of the trust are not alleged to be In doubt.
It is not claimed that complainant cannot de-
termine from the declarations of trust who
are entitled to participate in the distribution
of the trust fund, nor Is it alleged that more
than one claimant, or class of claimants, has
qualified under the terms of the trusts
whereby they are entitled to participate in
the distribution of the fund, and it is not
shown that any occEislon has yet arisen call-
ing for the performance of any duty on the
part of complainant as trustee.
l^ere are a number of matters presented
by the bill which it appears can be settled,
and are awaiting determination in the other
actions now pending in this court and in the
Supreme Court of New Tork. The remaining
matters presented by the bill merely call for
the court's advice and not for its aid and di-
rection.
It is well settled tliat:
"Where the duty of a trustee is involved in
doubt, it is his right to ask and receive the aid
and direction of a court of equity to the extent
that his necessities may require." Traphagen v.
Levy, 45 N. J. Eq. 448, 18 Atl. 222.
"This right does not, however, extend to the
solution of propositions which do not present
themselves as requiring any action by the trus-
tee, or where the events which must control the
rights of the parties and the duties of the trus-
tee have not transpired and are yet uncertain,
• • • or which are so clear as to admit of
no question. The court should be caUed on to
decide and direct not to counsel and advise."
Merlin v. Blagrave, 25 Beav. 139 ; Vauness Ex-
ecutors V. Jacobus, 17 N. J. Eq. 15.'1; Griggs v.
Veghte, 47 N. J. Eq. 179, 19 Atl. 867; Bonuell
V. Bonnell, 47 N. J. Eq. 540, 20 AU. 895 ; House
V. Ewen, 37 N. J. Eq. 368; Dillingham 7. Mar-
tin, 61 N. J. Eq. 2<6, 49 AU. 143; Hewitt v.
Green, 77 N. J. Eq. 345, 77 Atl. 25; Ogden v.
McLane, 73 N. J. Eq. 159, 67 Atl. 695.
From the bill it appears there is no present
duty to be performed by the complainant as
trustee, and by the terms of the declarations
of trust no such duty can arise until owner-
ship certificates, duly authenticated by com-
plainant as trustee, are thereby converted In-
to trust certificates, and untU the holders of
such trust certificates demand the distrlbu-
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1028
101 ATLANTIC RBPORTEE
(N.J.
tlon among them ot the trust fund whidi
ccnnplalitajat controls ; consequently complain-
ant Is not at present In need of the aid and
direction of this court.
In view of the conclusion I have reached
on this feature of the bill, I have not consid-
ered it necessary to pass upon the other ob-
jections urged against it
A decree wUl be advised that the bill be
dlamlBsed.
DA OAMA y. I>>AQUILA.
(Court of Chancery of New Jersey. Jnne 21,
1917.)
CovRRANTS €=» 103(3) — Lacbks — Waiving
Bkeach of Kestbictivb Covenant.
Where complainant saw defendant erecting
a garage on his lot adjoining berg, but for some
time made no objcctiun or protest, and allowed
bim, in Ignorance of a restrictive covenant and
of her attitude respecting it, to spend a consid-
erable sum of money in practically finishing the
building, and after calling his attention to the
restrictive covenant encouraged him to proceed
with the completion of the building by express-
ing her willingness to waive the restriction if
an adjoining owner's consent could be obtained,
and even after ordering the removal of the gar-
age waited for over a year before fiUng a bill
for a mandatory injunction, she was estopped
by her conduct and laches from enforcing the
covenant by injjunction, regardless of the com-
parative magnificence or insignificance of the
buildings on the two lota, since an application
for a mandatory injunction to protect restrictive
building covenants must be made promptly.
Suit by Sllzabetb Bates Da Gama against
Ernest A. D'Aquila. Decree dlsmli^lng the
bill on conditions.
Benjamin P. Morris, of Long Branch, and
Wilbur A. Helsley, of Newark, for complain-
ant William J. Kearns, of Newark, for de-
fendant
FOSTER, V. O. Complainant by her bill
seeks a mandatory injunction to compel the
removal of a garage built on certain proper-
ty fronting on North Bath avenue in the city
of Long Branch, on the ground that the ga-
rage was built in violation of a restrictive
covenant against the erection of any build-
ing on the premises owned by defendant On
June 17, 1901, James R. Booth, who then
owned the land now owned by defendant and
other lands in the rear of the same, entered
into an agreement In writing with Arthur H.
Ilearn, the former husband of complainant
and the owner of the property adjoining the
Booth property on both sides and in the rear,
by which Heam agreed to buy ttom Booth a
portion of the rear of the Booth lot on which
was an old stable, for $500. The agree-
ment contained the following provision:
"It is further agreed, that in consideration
of a covenant on the part of the said fiearn
that he will restrict the front of his property
on North Bath avenue that lies between the prop-
erty of said Booth and the Jewish Synagogue
against any building or nuisance ever being
erected or maintained, north of a line where the
said Heam's property would be crossed by the
present front or north line of the Jewish Syna-
gogue building if extended to the property of
said Booth, the said Booth shall restrict the
remaining portion of bis property between the
lot hereby sold and North Bath avenue, so that
no building of any kind, and no extensions to
the present building, or nuisance of any kind
shall, at any time hereafter, be erected or main-
tained thereon, it being understood that no
buildings of any kind whatsoever except the
dwelling house now thereon or any house here-
after erected on the same site, shall be erect-
ed on any part of the premises of said Booth
fronting on North Bath avenue at any time
hereafter. • • • All the covenants, restric-
tions and agreements herein contained are to
extend to the heirs or assigns of the respective
parties hereto, and are to run with the lands."
Booth and his wife, by deed dated July
17, 1901, conveyed the property to Heam,
and In the deed the agreement to restrict
quoted above was set forth, but the further
agreement that the covenants, etc., were to
extend to the heirs and assigns of the respec-
tive parties and were to run with the land,
was not stated in the deed. The agreement
and deed were recorded on July 23, 1901.
Both Mr. Booth and Mr. Hearn died some
years ago seised ot their respective proper-
ties, without having taken any further action
with respect to the restrictions to be placed
thereon. Complainant became the owner of
Mr. Heam's property, and Herbert Booth in-
herited the property of his father. Some
time in the spring of 1914 complainant in
contemplation of the sale of part of the
Hearu property located on North and South
Bath avenues, at pabllc auction on May 14,
1914, communicated with Herbert Booth, the
owner of defendant's property, suggesting or
proposing the release of the restrictions from
their respective properties, and Booth In re-
ply expressed his willingness to release her
property and to have his property released
therefrom, and expressed the opinion that
if complainant desired a formal release ex-
ecuted, she should pay for Its preparation.
On April 30, 1914, complainant's attorney in
Washington wrote Herbert Booth, stating:
"I have been instructed by Madame Da Gama,
wife of the Brazilian embassador at this capital
(formerly Mrs. Elizabeth Bates Hearn) to pre-
pare a cancellation of the restrictions affecting
certain real estate under an agreement made
by Mr. James R. Booth and Mr. Arthur H.
Hearn, former husband of Madame Da Gama,
but the papers which have been turned over to
me do not show clearly what those restrictions
are. * • • I should be obliged to you if you
would send me a draft of the proposed release,
or a copy of the restrictions contained in the
deeds."
It does not satlstactorily appear what re-
ply, If any, Mr. Booth sent to this letter, and
apparently a formal release was never ex-
pected, but he and the members of his family
considered the matter closed, and believed
that the restrictions had been removed from
his and from complainant's property. By
deed dated February 11, 1916^ Booth and
wife conveyed the premises to defendant
araFor otber cases see sam* topic and KSY-NUMBER in all Kej-Numbered Digests and Indexea
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DA OAMA T. D'AQUILA
1020
witboat any reference to or mention of the
restrictions.
Defendant Is a Catholic priest In charge
of a church In Newark. He spends some
days of each week during the summer at his
home In Long Branch, traveling between
Newark and Long Branch In an automobile.
Some time In March, about a month after
taking title, he began the erection of the ga-
rage In question In which to store his car.
At the time he commenced the building, and
In fact until some time In May, defendant
had no actual knowledge of the restrictions.
The garage Is not a rery large or espenslTe
affair, but. If finished as planned, It would
compare favorably with other garage build-
ings In the neighborhood. Complainant saw
the garage In the course of erection about
April 10th, but made no objection or protest
against It, and did not call defendant's at-
tention to the restrictions until her New
lork attorney wrote him on May 24, 1916.
At this time the building' was eubstaptially
completed, except for the hanging of the
doors and windows and the flnishing of the
roof. On May 29, 1916, defendant wrote com-
plainant. Informing her of the receipt of the
letter from her attorney and explaining the
garage had been erected by him in ignorance
of the restrictions, and asking her permis-
sion to do the small amount of work neces-
sary to complete it. In reply to this letter
complainant's Washington attorney wrote,
on June 2d, that she was willing to waive the
restrictions, owing to the circumstances un-
der which the garage had been partially
erected. If the consent of the owner of the
adjoining property could be obtained. The
proofs do not show what efforts, if any, were
made to obtain this consent, and on June 14th
complainant's attorney wrote defendant's at-
torney, ordering the garage to be removed.
No further steps were taken by defendant to
complete or to remove the garage, and on
July 10th the bill was filed.
If these restrictions or stipulations were in
effect after the negotiations for their remov-
al between complaiaant and Herbert Booth
In 1914, so that they affected defendant's
property when he began the erection of the
garage thereon in March, 1916, I think com-
plainant is estopped by her conduct and lach-
es in having them enforced against defend-
ant now. She saw this garage being erected
as early as April 10th; she made no objec-
tion or protest ; she allowed defendant. In Ig-
norance of the restrictions and of her atti-
tude respecting them, to spend a considerable
sum of money In practically finishing the
building; and she allowed him to continue
these expenditures, without protest, until her
attorney wrote him the letter of May 24th,
and she encouraged him to proceed with the
completion of the building and expressed her
willingness to waive the restrictions in the
letter written by her attorney on June 2d.
Her attitude throughout, apparently, has
been that it was optional with her whether
the restrictions should be considered in force
or not, and she considered it her privilege to
change her mind on the subject as often as
she desired; and, while this may be her priv-
ilege, she must take the consequences of exer-
cising it too often to the detriment of the de-
fendant.
It was complainant's duty, if she Int^ided
to insist upon the enforcement of the re-
strictions, to have acted promptly after she
learned of their actual violation by defend-
ant in April, and before he had expended any
considerable sum of money on the building.
This she did not do. On the contrary, she
allowed defendant to proceed with the build-
ing, and expressed her willingness, while the
garage was in course of construction, to
waive the restrictions, and after changing
her mind about the matter in June, she de-
layed the filing of her bill until July. It was
said in Smith v. Spencer, 81 N. J. Eq. 389, at
page 393, 87 Atl. 158, at page 159, that such
rights cannot, in a situation like this, be pro-
tected by mere correspondence, and that legal
proceedings must be taken before there has
been a serious expenditure of money.
It is one oil the rules of courts of equity,
quite strictly enforced on a bill for a man-
datory injunction, to protect restrictive build-
ing covenants, that the application must be
promptly made. Trout v. Lucas, 54 N. J. Bq.
361, 35 AU. 163; Sutcliffe v. Bisele, 62 N. J.
Bq. 222, 50 Atl. 69; Zelman v. Kaufherr, 76
N. J. Eq. 52, 73 AQ. 1048 ; Sanford v. Keer,
80 N. J. E]q. 240, 83 Atl. 225; Goater v. My,
80 N. J. Eq. at page 46, 82 Atl. 611; Meaney
V. Stork, 80 N. J. Bq. 60, 83 Atl. 492, affirmed
81 N. J. Eq. 210, 86 Ati. 398; Smith v. Spen-
cer, supra. Complainant's delay, under the
circumstances, in taking legal proceedings to
protect her rights, constitute such laches that
I deem it inequitable to grant her the relief
she novr seeks. In reaching this conclusion
I have taken into consideration all that has
been said by counsel for complainant at the
hearing and on the brief about the magnifi-
cence and value of complainant's property
and the cheapness and mean appearance of
defendant's garage, but the comparative
magnificence or insignificance of the respec-
tive properties should not, under the situa-
tion presented, be Influential in determining
the rights of the parties.
On the conclusion of the hearing the sug-
gestion was made by me that. In view of the
slight benefit complainant would receive If it
were found the restrictions were in effect
and should be enforced, compared with the
serious loss and injury defendant would sus-
tain If compelled to remove the garage, pos-
sibly complainant's objections to the garage
would be removed If It were completed as
originally planned. Complainant felt that
she could not accept this suggestion, and that
nothing but a strict enforcement of the re-
strictions by the removal of the garage
would satisfy her. The defendant then ex-
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101 ATLANTIC BEPOETBB
(N.J.
preased hla wUllogness to follow the sugges-
tion, and counsel for defendant has attached
to bis brief a proixwal, which Is submitted
without prejudice, to the effect:
"That upon the dismissal of complainant's
bill, he is willing, at his own expense, to put on
the garage a shingle roof and to place the same
in place of the present tar-paper roof and to
give the structure an additional coat of stucco-
piaster and a finishing coat; also to lower
roof of the building five feet and generally to
improve and embellish the appearance of the
garage."
If these changes and Improvements are
made and completed by defendant by July
30th, I will advise a decree that the bill be
dismissed.
(88 N. J. Kq. 2n)
BOBT. H. INGEBSOLL & BBO. v. HAHNB
& CO. (No. 43/381.)
(Court of Chancery of New Jersey.
1917.)
Ang. 14,
1. Courts *=»97(1) — Prbcsdents— EbrFEcr.
Decisions of the Supreme Court of the Unit-
ed States as to the validity of contracts, which
may partially destroy competition, are not bind-
ing on the state court, though entitled to great
weight, unless the contract involves an artide of
interstate commerce^
2. Monopolies «=>10— Stathtb— Validitt.
Act March 16, 1916 (P. L. p. 235), declaring
that it shall t>e unlawful for any merchant, firm,
or corporation to appropriate for his or their
own use a name, brand, trade-mark, reputation,
or good will of any malter in whose product such
merchant, etc., deals, or to discriminate against
the same by depreciating the value of the prod-
ucts in the public minds by misrepresentation
or price inducement, except where the goods do
not carry any notice prohibiting such practice,
is not in violation of the state or federal con-
stitutions, it being the policy of the law to
let people manage their own business in tbeir
own way, unless the ground for interference is
clear, and hence a notice by a manufacturer of
watches that the same should not be sold with
its guaranty, etc., for leas than a price fixed, is
valid and binding on a retailer, the watche3
being manufactured in large quantities and sold
in vast numbers at a small price through the
advertising of the manufacturer.
3. Pleading «=»214(1) — Demukeii»— BirracT.
On demurrer the averments of a bill are
to be treated as true.
4. COMMEBCE <©=>0O(l)— INTEKSTATE COillTEKCE
— Intebference With.
A New York manufacturer of cheap watches
sold them with a notice forbidding the retailer
to dispose of them for leas than n price fixed by
the factory. A jobber in New York disposed
of the watches to a New Jersey retailer, who
sold the watches for less than the price fixed
by the manufacturer. Under Act March 16,
1916 (P. I* p. 235), the restrictive notice was
valid. Held, that law which protected the man-
ufacturer was not invalid as casting any burden
on interstate commerce nor prohibiting com-
mercial intercourse between people of the vari-
ous states, or placing burdens thereon.
Bill by Bobt. H. Ingersoll & Bra against
nahne & Co. On motion for preliminary In-
junction and to strike out the motion to dis-
miss. Motion to dismiss denied, and tempo-
rary preliminary injunction granted.
George Tj. Becord, of Jersey City, for com-
plainant. Stallman, Hoover & Peclc, M. M.
Stallman, J. F. Hoover, and H. Peck, all of
Newark, for defendant
LANE, V. C. The biU discloses the foiloW'
Ing facts: That the complainant is a manu-
facturer of watches sold under the IngersoU
name In conjunction with certain trade-
names such as "Yankee Watch," the "Dollar
Watch," the "Eclipse Wnteh," and "Junior
Watch"; that the "Yankee Watch" is adver-
tised throughout the country to be sold to
the consumer at 4^1.35; that the only way
the watches can be sold for this low price is
to manufacture them In immense quantities,
and the only way to produce customers upon
a big scale Is by extensive advertising; that
the name of Ingersoll and the reputation of
the firm for fair dealing and reliable prod-
ucts is nation wide ; and that It is absolutely
necessary as a part of the advertising and
building up of the business that a definite
fixed price should form a part of the adver-
tising for each of the products; that all the
Ingersoll vratdies are sold subject to a notice,
a copy of which Is as follows:
"Notice.
"The use of our name, trade-mark, guarantee,
reputation, good will, and selling helps is li-
ceutied to tUu dealer for the sole purpose of
selling or offering, advertising or displaying for
Rale this watch, provided this watch is not
sold, offered, advertised, or displayed for sale
with or as any donation, discouut, reltate, pre-
mium, or bonus, or to any wholesale or retail
dealer at rates different from those specified
in our schedules, or at any other retau price
than $1.35, without first removing this notice
and our name, trade-mark, and guarantee, and
returning to us our selling helps and refrain-
ing from the use of our name, trade-mark, guai^
antee, reputation, good wilt, and selling helps,
and provided the dealer shall, upon our writ-
ten request (unless he shall have previously
sold it), resell to us this watch, if then merchan-
table, at the rate specified in our schedules for
the quantity in which he purchased, or, if then
damaged, at such rate as shall then be agreed
upon.
"Any violation of any of the above conditions
depreciates our name, trade-mark, reputation,
and good will, and will act as a revocation of
this license. Any use of our name, trade-mark,
guarantee, reputation, good will, or selling helps
aids the dealer in selling this watch and will
act as an acceptance of the above conditions.
The dealer may sell or otherwise dispose of this
watch OS he pleases after first removing this
notice and our name, trade-mark, and guar-
antee, and returning to us our selling helps, and
refraining from the use of our name, trade-mark,
guarantee, reputation, good will, and selling
helps; but he has no right to use any of them
in violation of the above conditions or to do
anything to depreciate their value. Any dealer
who violates any of the above conditions will be
liable to suit for damages and an injunction.
"Upon written request of any dealer oi>serv-
ing the above conditions, we apreed (1) to re-
purchase from him this watch, if then merchan-
table, at the rate specified in our schedules for
the quantity in which he purchased, or, if then
damaged, at such rate as shall then be agreed
^EsFor otbtr esses SM same topic aad KBT-NUHBER to all K«r-Numbered DigesU and IndaxM
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BOBT. H. INGERSOLti A BRO. t. HAHNE A OO.
103 L
upon; or (2) to leave him free, after first re-
moving tliis notice and onr name, trade-mark,
and iruarantee, to sell or otherwise dispose of
this watch without regard to the above condi-
tiona. Bobt. H. IngersoH & Bro."
That the defendant Inserted in the Newark
NewB, a newspaper published in Newark, an
advertiaement in the following form:
$1.36 Ingersc^
Watches
$1.00
Nickel only; every one new
with the nsoal IngersoU
guaranty.
That tbls advertisement appeared on April
20, 1917, and that the defendant sold Inger-
soH watches for the sum of $1; that snch
eales were made in the regnlar Ingers*^
boxes, whicdi carried the notice heretofore
mentioned; that It advertised and declared
its Intention to again resort to such practice ;
that it Is only possible for complainant to
mannfacure and sell the large output It does
by widespread advertisement, and In such
advertieements the fact that the watches are
for sale at the low and fixed price of $1.86
and the word "IngersoH" are essential fea-
tnres; that there is no profit in the sale by
retailers of the watches at a dollar ; that the
direct effect of the acts of defendant Is that
other dealers In the neighborhood cannot
market, at the rate of $1.36, the watches
whidi are manufactured by the complainant;
that the public is induced to believe that the
watches are not worth $1.35 inasmuch as
they are being sold by defendant for a dol-
lar; that the other dealers in the locality
will discontinue the sale of the lAgersoU
watdies; that the business of the complain-
ant will be disorganized, and eventually
mined; that the defendant has no Idea of
marketing any considerable number of
watches at the price of a dollar, bat uses
this cut rate and the IngersoH name as bait,
at irregular intervals, to get people into Its
store, depending upon those attracted by the
low rate of the IngersoH watch making pur-
chases of other goods sold by defendant;
that for its own purposes, the defendant
makes use not only of the article manufac-
tured by the complainant, but also of its
trade-name and reputation and guaranty for
its, the defendant's, ulterior purposes to the
injury of the complainant.
The complainant relies upon the provisions
of the statute, chapter 107 of the Laws of
1916, which provides as follows;
"It shaU be unlawful for any merchant, firm,
or corporation to appropriate for his or their
own use a name, brand, trade-mark, reputation,
or good will of any maker in whose product
said merchant, firm, or corporation deals, or
to discriminate against the same by dcprecintiug
the value of such products in the public mind, or
by misrepresentanon as to value or quality, or
by price inducement, or by unfair discrimination
between buyers, or in any other manner whatso-
ever, except in cases where said goods do not
carry any notice prohibiting such practice, and
excepting in case of a receiver's sale, or a sale
by a concern going out of business."
And also complainant farther relies upon
its right to relief at common law.
There Is no question but that the notice
prescribed by the statute was affixed to the
goods in question. The defendant moves to
strike out the bill upon several grounds rais-
ing several questions, only two of which I
deem it necessary to consider.
First Whether the statute Is in any re-
spect contrary to the constitutional provi-
sions of the state or of the United States.
Second. Whether the watches, if sold, are
the subject of Interstate commerce to such an
extent as that the statute cannot be held to
apply.
CI , 2] On the argument there was, and in
coimsels' brief there is,' a long discussion as
to whether the contract against price cutting,
evidenced by the notice, is contrary to pubUc
policy, and defendant relies upon cases in the
Supreme Court of the United States as fol-
lows: Dr. Miles Medical Co. v. John D. Parks
& Sons Co., 220 U. S. 873, 31 Sup. Ct 376, 65
li. Ed. 502; Bauer v. O'Donnell, 229 U. S.
1, 38 Sup. Ct. 616. 57 U Ed. 1041, 50 L. B. A.
(N. S.) 1185, Ann. Cas. 1916A, 150; Straus v.
Victor Talking Mach. Co., 243 U. S. 490, 37
Sup. Ct 412, 61 L. Ed. 866 (decided April 9,
1017) ; Motion Picture Patents Co. v. Univer-
sal Film Co., 243 U. S. 502, 37 Sup. Ct. 416, 61
U Ed. 871 (decided April 9, 1917) ; Bobbs-Mer-
riH Co. v. Straus, 210 U. S. 839, 28 Sup. Ct
722, 62 I* Ed. 1086.
I am now considering the public poUcy of
the state of New Jersey as distinguished from
any public policy of the United States. Un-
less the article Is the subject of interstate
commerce, I am not bound by the opinions
of the Supreme Court of the United States.
They are entitled to great weight and careful
consideration, but it must not be overlooked
that the effect of the case of Motion Picture
Patents Co. v. Universal Film Co., 243 o. S.
602, 37 Sup. Ct 416, 61 U Ed. 871 (decided
April 9, 1917), is a complete reversal of
Henry v. Dick, 224 U. S. 1, 32 Sup. Ct 364.
56 L. Ed. 646, Ann. Cas. 1913D, 880. To con-
sider In detaU the reasoning of the court In
the very numerous cases which have been de-
cided bearing upon this question would un-
duly extend tbls opinion. Suffice It to say
that, after careful consideration, 1 have come
to the conclusion that, upon the general prop-
osition, I agree with the dissenting opinion
of Mr. Justice Holmes in Dr. MUes Medical
Co. V. John D. Parks & Sons Co., 220 U. S.
at page 411, 31 Sup. Ct at page 386, 56 L.
Ed. 502. He said:
"I think that at least, It is safe to say that
the most enlightened judicial policy is to let
people manage their own business in their own
way, unless the ground for interference is very
dear. • • • I think • • * we greatly ex-
aggerate the value and importance to the pub-
lic of comi)etition in the production or distribu-
tion of an article (here it Is only distribution) as
fixing a fair price. • • • There may be nec-
essaries that sooner or later must be dealt with
like short rations in a shipwreck, but they ore
Tirtf Tir Afilpfi' mcwlipinpA • • ♦ Wp rnilnt- nik
not Dr. Miles' medicines.
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101 ATIiANTIC REPORTEA
(N.J.
■ame Its retail price to be reasonable, for it is
■o alleged and the case is here on demurrer ; so
I see nothing to warrant mj assuming that the
public will not be served best by the company
being allowed to carry out its plan. I cannot be-
lieve that in the long run the public will profit
by this court permitting knaves to cut reason-
able prices for some ulterior purpose of their
own and thus to impair, if not to destroy, the
production and sale of articles which it is as-
sumed to be desirable that the public should be
able to get"
I agree also with the remarks of the Su-
preme Court of Washington In Fisher Flour-
ing Mills Co. V. C. A. Swanson, 76 Wash. 649,
137 Pac. 144, 51 I* R. A. (N. S.) 622. Oliere
the court says:
"Finally, it seems to us an economic fallacy to
assume that the competition, which in the ab-
sence of monopoly benefits the public, is com-
petition between rival retailers. The true com-
petition is between rival articles, a competition
in excellence, which can never be maintained if,
through the perfidy of the retailer who cuts pric-
es for his own ulterior purposes, the manu-
facturer is forced to compete in prices with
goods of his own production, while the re-
tailer recoups his losses on the cut price by
the sale of other articles, at, or above, their
reasonable price. It is a fallacy to assume that
the price cutter pockets the loss. The public
makes it up oo other purchases. The manu-
facturer alone is injured, except as the public
is also injured through the manufacturer's ina-
bility, in the face of cut prices, to maintain
the excellence of his product Fixing the price
on all brands of high grade flour is a very dif-
ferent thing from fixing the price on one brand
of high grade flour. The one means destruc-
tion of all competition and of all incentive to
increased excellence. The other means heighten-
ed competition and intensified incentive to in-
creased excellence. It will not do to say that
the manufacturer has no interests to protect
by contract in the goods after he has sold them,
"riiey are personally identified and morally guar-
antMd by his mark and his advertisement."
I could not use words which would better
flt the situation in the case at Bar than these.
Complainant has no monopoly. Its goods are
not manufactured under patents. It Is con-
stantly In competition with manufacturers of
cheap watches. Not only Is It morally bound
as a result of its advertising to guarantee Its
product, but It, in fact, guarantees It In writ-
ing. The defendant makes use of the name,
reputation, and guaranty of complainant for
its own ulterior purpose and appropriates to
Itself the effect of the extensive advertising,
upon which the complainant depends, for de-
fendant's own prodt, in violation of the con-
tract expressed In the notice, and with no de-
sire to beneflt the public. A retailer does not
sell a standard article at a loss for eleemos-
ynary purposes.
It is a legislative function to establish pub-
lic policy, and the public policy of this state
has been, I ttilnk, with respect to the matter
In question, settled by the statute hereinbe-
fore referred to. I do not find that statute
repugnant to the Constitution either of the
United States or of this state. There was no
obligation upon Hahne & Co. to purchase the
watches in question, nor was there any obli-
gation upon the complainant to manufocture
and sell them. If Hahne Sc Co. chose to pur-
chase the watches with the notice attached,
of which I must presume It has notice at tlie
time of purchase, there Is no injury done the
defendant by compelling it to observe the
provisions of the notice. As Mr. Justice
Holmes said In the I>r. Miles Medical Co.
Case:
"I think that at least it is safe to say that
the most enlightened judicial policy is to let
people manage their own business in their own
way, unless the ground for interference is very
dear."
m The case Is before me as if upon de-
murrer, and I must assume that the state-
ments of the bill that the efFect of the acta
of the defendant will l>e the destruction of
complainant's business are true. Tbe con-
tract authorized by the statute Is admitted ;
Its breach is admitted; the effect of Its breach
must be considered as above. Can It lie that
there Is no remedy? I do not find that any
public beneflt will be subserved by refusing
to enforce the provisions of the statute.
[4] The remaining question to determine
is whether or not the restriction upon the
sale of the watches Is aMda an interference
with interstate commerce as to prevent its
enforcement The watches were manufac-
tured In New York; were sold to a Jobber in
New York and by the Jobber sold to a retailer
in New Jersey for ultimate distribution to
the publla The statute Is designed to pro-
mote good morals in business. It is an exer-
cise of the police power of the state. That
its purpose is within the legislative province,
I think, admits of no question. It does not
operate to interfere with the trade or ex-
change of articles between this and other
states, but rather touches upon the duties of
citizens of this state to citizens of this and
other states. I ttdnk tliat the effect of ignor-
ing the restriction would tend to restrain In-
terstate commerce by reducing Its volume,
and that the effect of enforcement of the re-
striction will tend to Increase the volume of
Interstate commerce. If the oleomargarine
and liquor laws can be maintained, and they
have been (Waterbury v. Newton, 50 N. J.
Eq. 535, 14 Atl. 604), I think there Is no ob-
jection to an act of the nature under discus-
sion. The result Is that the motion to dis-
miss the bill will l>e denied, and the restraint
continued until final hearing.
If an appeal is taken, and I assume there
wIU be, I desire counsel to notify me at once^
as these conclusions Itave been prepared Just
t)efore my leaving on my vacation, and I de-
sire to prepare more formal conclusions for
the beneflt of the Court of Errors and Ap-
peals. The result I have reached has only
been arrived at, however, after careful cod-
sideration.
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MA YOB, ETC., OF JKRBEY CITY v. BORST
1033
(90 N. J. lAW, 454)
MAYOR, ETC.. OF JERSEY OITT v. BORST.
(Supreme Court of New Jersey.
1917.)
Sept. 14,
fSvllabiu hv the Court.)
1. Masteb and SEBVAI7T «=>364— Wobkuen's
Compensation Act— Constbuction of Stat-
ute—Injtjby OB Death.
The Supplement to the Workmen's Compen-
sation Act (Act March 27, 1913 [P. L. 1913, p.
230]), { 1, which provides "that no person (i. e.
employe of the state, county or municipality)
receiving a salary greater than twelve hundred
dollars per year" shall be compensated, under
section 2 of the original act (Act April 4, 1911
[P. L. 1911, p. 134J), applies only to employes
of the class therein mentioned who were Injured.
It docs not apply to cases of death, where de-
pendents of employes are affected.
2. Masteb and Sebvant $=3348— Wobkken'b
Compensation Act— Constbuotion.
The workmen's compensation statute is a
remedial law of prime import, it should be lib-
erally and broadly construed.
(Additional 8i/llabm iy Editorial Staff.)
8. Wobds and Phbases — "Suffleuent."
The ordinary meaning of the word "supple-
ment" is a supplying by addition of what is
wanting.
[Ed. Note.— For other definitions, see Words
and Phrases, First and Second Series, Supple-
ment.]
CJertiorari to Court of Common Pleas, Hud-
son County ; Tennant, Judge.
Proceeding under the Workmen's Compen-
sation Act, by Katherinc Lovell Borst, as
next friend, of W. Hudson Lovell, deceased
employ^, to obtain compensation, opposed by
Mayor, etc, of Jersey City, employer. Com-
pensation was awarded, and the employer
brings certiorari. Judgment awarding com-
pensation affirmed.
Argued June term, 1917, before SWAYZE,
BERGEN, and BLACK, JJ.
John Bentley, of Jersey City, for prosecu-
tor. R. F. Jones, of Jersey City, for reepond-
BLACK, J. This Is a workmen's comi)en8a-
tlon case. The certiorari was allowed to re-
view the determination of Judge George G.
Tennant, In the Hudson county common pleas.
An award of $10 per week for 300 weeks was
made. In that court, from May 3, 1914. The
facts are not disputed. The i)oint on re-
view and for decision Is a pure question of
law. Involving the correct construction of the
supplement, approved March 27, 1913 (P. L.
1913, p. 230), to the Workmen's Compensation
Act, which was approved April 4, 1911 (P. ti.
1911, p. 134). The first section of that act
provides:
Every employ^ "who shall be in the employ
of the state, county, municipality • • •
shall be compensated under and by virtue of
section two to which this act is a supplement;
provided, however, that no person receiving a
salary greater than twelve hundred dollars per
year, nor any person holding an elective office
aball be entitled to compensation."
Section 2:
"When any payment shall be due under the
provisions of this supplement or the act to which
It is a supplement, the name of the injured em-
pIoy6, or in case of his death, the names of
the persons to whom payment is to be made as
his dependents, shall be carried upon the pay
roll," etc.
It Is conceded that the respondent would
be entitled to compensation were It not for
the proviso In the above supplement. The
facts In brief are: W. Hudson Lovell, the de-
ceased, was an employ^ of the mayor and al-
dermen of Jersey City as an assistant fire
chief or assistant engineer. In the lire depart-
ment. On May 3, 1914, while respond-
ing to a fire call or alarm he was killed in a
collision. He was receiving pay at the rate
of $2,850 per year. He left him surviving, an
actual dependent, Helen Katharine Borst, a
granddaughter. We think the judgment of
the court of common pleas is founded upon
the correct construction of the statute, and
therefore must be affirmed. The reasoning
that carries the mind forward to this con-
clusion may be briefly, indicated as follows:'
[1,3] The original Workmen's Compensa-
tion Act (P. L. 1911, p. 134) appUes to mu-
nicipal corporations and their employes.
AUen V. City of MUlvUle, 87 N. J. Law, 366,
95 Atl. 130, affirmed 88 N. J. Law, 693, 96
Atl. 1101. Paragraph 19 of the original act
(P. Ij. 1911, p. 142) provides for the payment
of compensation In cases of death. It is sig-
nificant, if not important, that the title of
the supplement, supra (P. L. 1913, p. 230), is
identical in terms with the title of the origi-
nal act, except "a further supplement to an
act entitled." Ab stated, it Is a supplement
to the original act Now the ordinary mean-
ing of the word "supplement" doubtless Is a
supplying by addition of what is wanting.
Rahway Savings Institution v. Mayor, etc, of
Rahway, 53 N. J. Law, Bl, 20 Atl. 756. It is
a fair argument to say that the supplement
applies only to employ^ of the class there-
in mentioned, who are injured. It does not
apply to cases of death where dependents of
employ^ are affected. This would seem to
be clear in view of section 2, supra, which
provides that the name of the Injured em-
ploy£, "in case of his dtath, the names of the
persons to whom payment is to be made aa
his dependents, shall be carried upon the pay
rolL" This construction is not inconsistent,
but in harmony, with section 1, p. 230, of the
1913 supplement, supra. A reason for this, if
it is the true interpretation of the legislative
will, may, perhaps, be found in the fact that
an Injured employ^ of a municipal corporation
usually receives his full wages from the mu-
nicipality, while incapacitated from personal
Injuries. It limits the application of section
11 of the original act of 1911 (page 134), so
that no Injured employ^ himself, who receives
"a salary greater than twelve hundred dol-
lars per year," should be entitled to secure
compensation for personal injuries.
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1034
101 ATLANTIC REFORTEB
{N.J.
[2] In other words, section 1 of the supple-
ment, Bupra (P. L. 1813, p. 230), deals with a
designated class of injured employ^, but
leaves untouched the provisions of the act re-
lating to dependents, when death ensues.
What was so aptly said by Judge Vreden-
burgb, speaking for the Court of Errors and
Appeals, in the case of Beagle v. Lehigh, etc..
Coal Co., 82 N. J. Law, 707, 710, 82 Atl. 890,
applies to the construction of the workmen's
compensation statute. This law, it will be
noted by a reference to its terms, is a reme-
dial law of prime import, and should be liber-
ally construed. It should be broadly con-
strued to a like effect, as the case in the Su-
preme Court of Errors of Connecticut Pow-
ers ▼. Hotel Bond Co., 89 Conn. 143, 93 AtL
245.
The Judgment of the Hudson county court
of common pleas is afiSrmed, with costs.
(90 N. J. law, tut)
FLYNN v. NEW YORK, S. & W. R. CO.
(Supreme Court of New Jersey. Sept 14, 1917.)
(Byllabu* ^v ike C<mrt.)
1. Master and Sbbvant 9=>365— Workmen's
Compensation Act — State Court — Juris-
diction.
A crossing flagman employed by a railroad
company engaged in interstate and intrastate
commerce wag struck and killed by the engine of
a train engaged in interstate commerce. BtM,
that the court of common pleas of New Jersey is
ousted of jurisdiction to award compensation un-
der the New Jersey Workmen's Compensation
Act (Act April 4, 1911 [P. L. p. 134]), the fed-
eral Employers' Liability Act (Act Cong. April
22, 1908, c. 149. 85 Stat 65 [U. S. Comp. St
1916, IS 8657-8665]) U exclusive.
2. Hasikr and Sebvani €==>412— Wobkicen's
Compensation Act — Conclusiveness ov
Finding.
Althoogh the findings of the court of common
pleas, as to the facts in workmen's compoisation
cases are conclusive on appeal, nevertheless, the
law arising upon undisputed facts is a question
of law ftur the court reviewing the decision to
decide.
Certiorari to Court of Common Pleas, Pas-
saic County.
Proceeding under Workmen's Ojmpensa-
tion'Act by Mary Flynn, widow of James
Flynn, deceased, employ^, for compensation
for his death; opposed by the New York,
Susquehanna & Western Railroad Company,
employer. Compensation was awarded, and
the employer brings certiorari. Judgment
awarding compensation reversed.
Argued JUhe term, 1917, before SWAYZE;,
BERGEN, and BLACK. JJ.
Collins & Corbin, of Jersey Oty, for prose-
cutor. Edward F. Merrey, of Paterson, for
d^endant.
BLACK, J. The writ of certiorari in this
case Is to review a determination of the
court of coinmoa pleas of Passaic county, in
a proceedlns under the New Jersey Work-
men's Compensation Act, brought by Mary
Flynn, the widow of James Flynn, deceased.
The trial court determined that the peti-
tioner is entitled to $5 per week for a period
of 3(X) weeks, beginning on the 30th day of
April, 191& The trial court further found :
The prosecutor is a common carrier, and is
engaged both in interstate and intrastate
commerce; that James Flynn was not em-
ployed by the prosecutor In interstate com-
merce, and thereupon the federal ESmployets'
Liability Act does not apply. It is to review
this latter finding that the controversy Is
brought under review in this court
[1] The pertinent facts are: The deceas-
ed, James Flynn, on March 23, 1916, was em-
ployed by the prosecutor, as a crossing flag-
man, at the Lyon street crossing In the city
of Paterson. While thus engaged in the per-
formance of his duties as a flagman, with re-
spect to a passing train, which was carrying
passengers and baggage from points in the
state of New York to various points in the
state of New Jersey, he was struck and killed
by the engine of the train in the course of
his employment Fl}-nu crossed over the east-
bound tracks of the prosecutor, on the ap-
proaxifa of an east-bound train, to flag the
crossing, and, while so engaged, was stand-
ing near the west-bound tracks, and was
struck and killed by the outer edge of the
breast irfece of an engine drawing a train
on the west-bound tracks, which was an in-
terstate train. The question, therefore, for
solution, and the only one, is, Was the de-
ceased at the time of bis death engaged in
an interstate act? If so, it is firmly settled
by the recent decisions of our Court of Er-
rors and Appeals, in the case of Rounsavllle
V. Central R. R. Co., 101 Atl. 182, and by the
United States Supreme Court in the case of
Erie R. R. Co. v. Winfield, decided May 21,
1917, 244 U. S. 170, 87 Sup. Ct. 556, 61 U
Ed. 1057, reversing Id., 88 N. J. Law, 619, 96
Atl. 394, that the federal Employers' Liabil-
ity Act of 1908 is exclusive of the state act,
and ousts the courts of common pleas of the
state of Jurisdiction, under the New Jersey
Workmen's Compensation Act
The courts, thus far, apparently have been
unable to formulate .any rule, sufficiently
exact, comprehensive, and exclusive by which
to test the quality of an act or series of acts
as falling within, or without, the domain of
interstate business. Upon reflection, it would
seem' almost impossible to formulate a rule
applicable to the almost endless variety of
drcumstanoes and facts springing out of the
Intricacies of everyday modem life that will
be of much practical use or aid. THie ap-
plication of the principle must be made to
particular facts, as they arise; jind by a
process of exclusion and inclusion a rule may
perhaps be formulated in time from the deci-
sion of such cases. There is already a long
line of cases In the federal and state courts
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W.J.)
PliATT T. JOHNSON
1035
showing tbe application of the principle to
the fticts under discussion. It would serve
no useful purpose to collate or cite these de-
cisions, nie decisions in the United States
Supreme Court, the ultimate authority on
the point, are quite uniform, when stating
the principle, to use such language as this.
The employ^ must be engaged In Interstate
business, or in an act which is so directly
and immediately connected with such busi-
ness, as substantially to form a part or a
necessary incident thereto (New Xork, etc.,
K. R. C5o. V. Our, 238 tJ. 8. 260, 35 Sup. Ot.
780, 5» li Ed. 1298; or In work so closely
related to it, 1. e., interstate transportation,
as to be practically a pert of it (Shanks t.
Delaware, etc., R. R. Co., 239 U. S. 666, 36
Sup. Ct 188. 60 L. Bd. 436, L. R. A. 1916C,
797). So, Louisville, etc., R. R. Co. v. Parker,
242 U. S. 13, 37 Sup. (X 4, 61 K Ed. 119.
We have been unable to find any case In
the federal courts where this precise ques-
tion has been passed upon. We are referred
to two cases, however, in the California Su-
preme Court, both of which held that cross-
ing flagman engaged in flagging on a rail-
road where interstate trains were being op-
erated were engaged In interstate commerce.
Southern Pacific Co. t. Industrial Accident
Commis^on, 174 CaL , 161 Pac. 1139;
Southern Padflc Co. v. Industrial Accident
Commission, 174 CaL — , 161 Pac. 1142.
These cases, of course, are not binding prec-
edents upon this court, but we think these
decisions are in harmony and accord with
the spirit and principle of the cases, decided
by the Supreme Court of the United States.
[2] Notwithstanding this situation, it is
now urged by the defendant that the statute
makes tbe judgment of the court of common
pleas conclusive and binding as to all ques-
tions of fact. P. I* 1911, p. 134, 1 18; Nevlch
V. Delaware, etc., R. R. Co., 100 Atl. 234;
Hulley V. Moosbrugger, 88 N. J. Law, 161,
95 Att 1007, L. R. A. 1916C, 1203. The Judg-
ment of the common pleas must be upheld
If there is any evidence in the case to sup-
port it This, of course, must be accepted
as the law of the state, but in the case of
HuUey V. Moosbrugger, 88 N. J. Law, 161,
95 Atl. 1007, L. R. A. 1016C, 12GB, it wjas
said by Chancellor Walker, speaking for
the Court of Errors and Appeals :
"Although the findings of the court of common
plena as to the facts of the case are conclusive,
according to section 18 of the act, and the de-
dsion of the Supreme Court, • • • and
therefore are conclusive here, yet, nevertheless,
the law arising upon ascertained facts is a ques-
tion for the court reviewing the decision."
The finding of the trial Judge that the de-
ceased, James Flynn, was not employed by
the prosecutor in Interstate commerce Is not
a finding of fact; It is a statement of law.
The facts in the case are entirely undisput-
ed; it is a irare question of law arising upon
facts that are not disputed. We thluk James
Flynn at the time of his death was engaged
In an act, to use the words of the Supreme
Court of the United States, directly and im-
mediately connected with interstate bostness
as substantially to form a part or a neces-
sary incident thereto. Under the decision of
the Supreme Court of the United States In
the Wlnfleld Case, supra, that fac* ousted
the common pleas court of Passaic county of
Jurisdiction.
The Judgment, therefore, of the Passaic
court of common pleas is reversed, with
costs.
(87 N. J. Bk|. 403)
PLATT V, JOHNSON et aL (No. 43876.)
(Court of CJhancery of New Jersey. Aug. 14,
1917.)
(Byllabut ly the Court.)
1. Wills <S=542(2) — Consteuctios — Abso-
LtTTE Devise— KEMAiNDEB.
Testator devised the remainder of his real
estate to his wife for life, or so long as she
should remain big widow, and, after her death
or remarriage, to his two daughters, to be equal-
ly divided between them, share and share alike,
and, in case of the decease of either daaghter,
then to the survivor absolutely, unless the de-
ceased daughter should leave lawful issue, then
that such issue should take the share which
would have been received by such deceased
daughter, had she been living; in case both
daughters should die, each leaving lawful issue,
then the share of each daughter to be divided
equally among such issue surviving, respec-
tively ; and In case of the death of both daugh-
ters without leaving lawful issue, then the estate
to be divided equally among testator's legal rep-
resentatives (meaning, doubtless, heirs), share
and share alike.
These events happened: Testator's wife died
in bis lifetime; one daughter, having married,
also died in her father's lifetime and without
issue; the father then died, leaving his other
d«v«:hter him surviving.
Jield, upon tbe father's death the absolute de-
vise to the surviving daughter took effect, and
the remainder to bis heirs generally was- de-
feated.
2. Judgment €=»728 — Res Jttdicata — CoL-
LATERAL MaTTEBS.
The Court of Chancery has power to decide
a question beyond its jurisdiction, when it arises
inodentally and collaterally in a suit within its
jurisdiction, which decision, however, has no
force as res judicata or by way of estoppel.
8. Pabtition «=>17(2) — Legal Title to
Lan ds— Dismissal.
If the legal title to lands is in issue in a
suit for partition, the Court of Chancery will
either dismiss the bill or retain it to allow tbe
title to be settled in an action at law ; and the
practice is quite universal to retain it.
Bill for partition of land between Ellen
Piatt and George M. Johnson and others. On
objection to master's report. Objections
overruled, and bill dismissed.
William M. Jamieson, of Trenton, for com-
plainant
WALKER, Ch. The bill In this case was
filed for the partition of land in the city of
Trenton, of which the late George M. Mitch-
ell died seised. The complainant, Mrs. Piatt
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1036
101 ATLANTIC REPORTER
(N.J.
Is his survlrlng sister. Tbe defendants are
tbe cblldren and grandchildren of a deceased
brother and sister. An Interlocutory decree
was entered In which the bill was taken as
confessed against the defendants, and It was
referred to William J. Backes, Esq., special
master, to ascertain and report on the right,
title, and interest of the respective parties
in the premises, etc., with direction that the
report be filed on a certain day therein men-
tioned, which was done.
The master reported that he was of opin-
ion that Mrs. Overton, one of Jlr. Mitchell's
daughters, upon the death of her father, took
an indefeasible estate in fee simple, under
his will, in the lands sought to be partitioned,
and that the parties to the suit had no right,
title, or interest in the land. In this opinion I
concur. The master was guided by the deci-
sion of the Court of Errors and Appeals in
Patterson v. Madden, 54 N. 3. Eq. 714, 36
Atl. 273. This case applies, as does also the
yery recent one of Michael v. Mlncbln, 101
AtL 283, in the same court.
Counsel for complainant made oral objec-
tion to the report at tbe time It was filed, In
pursuance of rule 227 of this court, and
claimed that the master's conclusion should
be overruled and tbe matter sent back to the
master to report upon the other questions
referred, because, as he contended, the devise
to Mrs. Overton was defeated by her deatb
without issue, and that the last contingent
devise in the testator's will to bis legal rep-
resentatives, meaning heirs, took effect. An
examination of the testament will, I think,
quite conclusively show that the master is
right
[1] Tbe testator made bis will la 1880, and
it was proved In 1907, shortly after bis
death. In it he devises and bequeaths the
residue and remainder of bis real and per-
sonal property to his wife for life or so
long as she should remain his widow, and,
after her death or remarriage, to his two
daughters, Josephine and Harriet, to be
equally divided l)etween them, share and
share alike. And in case of the decease of
either daughter, then to the survivor abso-
lutely, unless the deceased daughter should
leave lawful Issue, then that such issue take
the share which would have been received by
such deceased daughter bad she been living.
In case both daughters should die, each leav-
ing lawful issue, then the share of each
daughter to be divided equally among such
issue surviving, respectively, and in case of
the death of both daughters without leaving
lawful issue, then the estate to be divided
equally among testator's legal representa-
tives, share and share alike.
These events happened: The testator's wife
died in his lifetime. His daughter Harriet,
having married a man named Outhouse, also
died in her father's lifetime and without
issue. The father then died leaving his
daughter Josephine him surviving. She was
then married to Frederick 0. Overton, and
the Overtons, on June 14, 1913, conveyed the
premises to an intermediary who reconveyed
them to Mr. and Mrs. Overton, thus creating
an estate by entirety in them, if the title
were good, and I think it was. Mrs. Over-
ton died March 2, 1917, leaving her husband
surviving, whereupon he became possessed
of the entire estate in the premises.
It is to be observed that on the will taking
effect In 1907, upon the death of the testa-
tor, tbe only devisee in esse qualified to take
under the will was Mrs. Overton, and tbe lan-
guage of the devise, which devolved the prop-
erty upon her is:
"And in case of the decease of either one of
my said daughters, then I give, bequeath and
devise the same to the survivor absolutely."
It is apparent that if there was no subse-
quent provision in the will, the surviving
daughter, Josephine Overton, would take the
estate in fee simple absolute. Let us see
what subsequent contingency might make
some other vesting of the whole or any part
of the premises.
It is to be borne in mind that the devise
of the entire premises was to the surviv-
ing daughter absolutely, unless the deceased
daughter left Issue, in which event the issue
would take her share. The daughter Harriet
was dead without issue, an'd, consequently,
the whole estate vested in her sister Jose-
phine. Now, it was further provided that
in case both daughters should die, eadi
leaving issue, the share of each was to be
equally divided among her Issue. Because of
the death of the daughter Harriet in her fa-
ther's lifetime without issue, this oontlo-
gency of one sister surviving and one dying
leaving issue could never happen on or after
the taking effect of the will. Next and last,
in case of the decease of both daughters with-
out issue, then the residuary estate was to be
equally divided among testator's legal rep-
resentatives, meaning, concededly, lids heirs
and next of kin — heirs in this case, as we
are here only dealing with real estate. Com-
plainant claims that this limitation over to
the heirs of the testator has not been, defeat-
ed, and that by the death of his wife and of
his two daughters, no issue being left by ei-
ther of the latter, the limitation over to the
heirs of the testator Is good and has taken
effect
I cannot be per8aad<$d that the provision of
tlie will that in case of the decease of both
daughters without issue the estate of Mrs.
Overton who took "absolutely" on her fa-
ther's death was cut down to an estate for
her life and limited over to her father's heirs
as mentioned. It must be apparent that if,
wh0i the will took effect both daughters
were living both would have taken, and if the
deceased daughter Harriet had issue surviv-
ing they would have taken her share, that
is, one half, while the other half woufd have
gone to the daughter Josephine, in fee simple,
and that in either case the limitation over
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N. J.) TRENTON A MEROEB CO. T. CX}RP. ▼. INHABITANTS OP EWlNa TP. 1037
would have been defeated. It Is unreason-
able to belieye that the testator intended to
glre his surviving daughter a fee in one-half
of his residuary estate if her previously de-
ceased sister had left issue, but if she died
without issue, then the whole estate for life
only, with remainder over to his heirs gener-
ally. I think it dear that the one half whldi
the surviving sister would take in f^ if the
other 'died leaving issue was to be increased
to a fee In the other half also if her deceased
sister left no issue, thus giving the whole e»-
tate to the surviving daughter of the testa-
tor. That is the natural disposition that a
man would make of his property. In my
oidnion this limitation over to the testator's
heirs generally stands, not in opposition to
the devises to the daughters, but to the death
of both of them prior to the death or remar-
riage of their mother, the testator's wifa
This contingency did not happen as one
daughter ontlived her mother and sister,
both of whom were deceaaeid at the death of
the testator and the consequent taking ef-
fect of his wlU. Upon the father's death,
therefore, the absolute devise to the surviv-
ing daughter took effect, and the remainder
to his heirs generally was defeated.
[2] In my opinion Mr. Overton, the sur-
viving husband of testator's deceased daugh-
ter Josephine, is now the owner of the prem-
ises sought to be partitioned, in right of
surviving his wife, because the limitation
over to the testator's heirs has been defeated.
He la not made a party to the bill. If the
decision were to be against his interest, he
should be made a party, although, of course,
a decree without his being before the court
would in no wise bind him. By chancery rule
6 any person may be made a defendant who
is alleged to have a claim or interest in the
controversy; and by rule 12 the court, at
any stage of the proceedings, either upon or
without application, may order any party im-
properly omitted to be addeid; but, by rule
1.3, the court may determine the controvert
as between the parties before it where It can
do so without prejudice to the rights of oth-
ers. And the court can and does determine
this matter without in any wise prejudicing
the rights of Mr. Overton. In form the deci-
sion is beneficial to him, but in fact it doubt-
less does not benefit him, because made in-
cidentally in a cause to which he is not a par-
ty ; and this quite aside from any question
of the court's power to decide as to the legal
title to the premises, as this court has power
to decide a question beyond its jurisdiction
when It arises incidentally and collaterally
in a suit within its jurisdiction, which deci-
sion, however, has no force res judicata or by
way of estoppel. See MuUaney v. Mullaney,
65 N. J. Eq. 384, 3S7, 54, Atl. 1066.
Counsel asserts that the reason be did not
recite in the bill the conveyances from Mrs.
Overton and her husband to the intermediary
and from him' to them, and why he did not
make Mr. Overton a party, was because that
would raise an issue of title not triable In
this court. If this be so It does not afford a
conclnsive reason for the course taken. He
was obliged to set out a title In the parties,
complainant and defendants, or the bill
would not lie. The allegations concerning
title should have been entirely ingenuous and
disclosed all. All was disclosed to the mas-
ter by the proofs submitted to him on be-
half of the complainant. And it is upon
proof aliunde the bill that the master finds
that the parties have no interest in the prem-
ises, the title to which is in a stranger.
[3] If the legal tiUe to lands is in issue in
a suit for partition the Court of Chancery
will either dismiss the bill or retain it to al-
low the title to be settled In an action at
law. Slockbower v. Kanouse, 50 N. J. Bq.
481, 26 AtL 833; Havens v. Sea Shore Land
Oa, 67 N. J. Bq. 142, 41 Atl. 755. And the
practice is quite universal to retain it.
Hie objection to the master's report must
be overmled, and the bill dismissed.
(87 N. J. Eq. 397)
TRENTON & MERCER COUNTY TRAC-
TION CORP. et al. v. INHABITANTS OF
EWING TP. et al. (No. 40/307.)
(Court of Chancery of New Jersey. Aug. 10,
1917.)
fStittahui hv the Court.)
1, Limitation or Actions $=3ll(3), 13— Es-
TOPPEi/— Public Biohts— Municipalitiees.
Municipal corporations are not, as respects
public rights, within statutes of limitations, but
the principle of an estoppel in pais is applicable
in exceptional cases, empowering the court to
decide the question, not on the mere lapse of
time, but upon all the circumstances of the
case, and to hold the public estopped or not, as
right and justice may require.
2. Stbicet Railroads (g=>28(l)— Injunction-
Removal or Turnout— EsTOPPEi,
A street railway company, having obtained
permission to construct, maintain, and operate
a street railway upon a township road, by ordi-
nances of the township committee and county
board of freeholders, in accordnuce with a map
of its proposed route designating certain turn-
outs at given noints, in constructing its rail-
road changed toe location of one of its turn-
outs from the point de-signnted on the map t»
another point a considerable distance away,
where, however, its location could have been
authorized originally; the railroad and turnout,
thus constructed, were maintained and operated
for 12 years without any protest from the mu-
nicipalities, or the landowner in front of wtiose
property the turnout was constructed, the pres-
ent owner having acquired the property after the
turnout had been installed for 10 years, having
had actual notice of its location and operation
when he purchased and went into possession
of the premises. Held, that the municipalities,
both of which ordered the removal of the turn-
out, one of which (the township) directed its
agent actually to remove it, and that agent
should be perpetually enjoined from removing
the turnout from its present location ; no injunc-
tion to go . against the individual landowner,
who never threatened to removo the turnout,
has no intention of doing so, and only urged
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1038
101 ATLANTIC REPORTER
(N.J.
apon the mnnidpalitiea that they take proper
steps to remove it.
Bill by the Trenton & Mercer County Trac-
tion Corporation and the Trenton, Penning-
ton & Hopewell Street Railway Company
against the Inhabitants of the Township of
Ewlng, the Board of Chosen Freeholders of
Mercer County, and Arthur S. Kniffln, to
prevent a removal of a railroad turnout
Perpetual injunction granted against the
township and the board.
Edward M. Hunt and George W. Macpber-
Bon, both of Trenton, for complainants. Wil-
lis P. Balnbridge, of Trenton, for defendants
Ewing Tp. and Alwyn A. Temple. Samuel C.
Kulp, of Trenton, for Board of Chosen Free-
holders of Mercer County. James & Malcolm
G. Buchanan, of Trenton, for defendants Ar-
thur S. Knililn and others.
WALKER, Ch. On November 1, 1902, the
township of Ewlng in the coimty of Mercer
passed an ordinance granting to the Trenton,
Pennington & Hopewell Street Railway Com-
pany, one of the complainants, permission
and right to construct, maintain, and operate
a street railway upon the Pennington road in
that township, and at or about the same time
the Board of Chosen Freeholders of the coun-
ty of Mercer also passed an ordinance grant-
ing permission to the railway company nam-
ed to construct its railway along the Pen-
nington road in the township of Ewing.
These ordinances provided that the railroad
should consist of a single track, with three
turnouts in the township of Ewing, as shown
upon the map of its proposed route. The
purpose of the turnouts, or switclies as they
are otherwise called, was to enable cars to
pass each other on the track while going In
opposite directions. By the passage of the
two ordinances mentioned the statutory right
of the company to construct the railroad be-
came complete, and subsequently, in the year
1903, the company constructed its railroad
over the route granted, with three turnouts,
or switches, in the township of Ewlng, one
of which was, and is, known as "Green's
switch," the one in question in this suit,
which, however, was not built at the point
shown on the map, but at a distance of some
1,700 feet therefrom.
On or about October 15, 1010, the Tren-
ton, Pennington & Hopewell Street Railway
Company leased Its railroad and appurte-
nances, including its rights under the ordi-
nances mentioned, to the Trenton & Mercer
County Traction Corporation, the other com-
plainant. In the year 1915 the Ewlng tovra-
shlp committee and the freeholders of Mercer
notified the complainants to remove this
switch, and, the demand not being complied
with, the township committee ordered Its
agent, the defendant Alwyn A. Temple, to
make the removal. This resulted from com-
plaint and request emanating from Dr. Ar-
thur S. Knlffln, the owner of the land in
front of which the switch Is located..
Dr. Knlffln in his affidavit says that his
house on the Pennington road is Immediately
opposite Green's switch; that he has lived
there for nearly 3 years, and that the switch
la an inconvenience to him ; that he never
had any intention, nor has he any Intention,
of personally removing the switch or causing
It to be removed, nor has he ever threatened
to do so, but has urged upon the board of
freeholders and the township committee that
they take proper legal steps to have it re-
moved. He says in his answer that, on or
about August 1, 1915, he first learned that
Green's switch was Illegally constructed and
maintained, that is, without authority for
construction and maintenance opposite the
dwelling into which he moved a few years
ago, which was 10 years after the switch hart
been constructed ; it having been built some
12 years before proceedings were taken look-
ing to its removal.
Very full affidavits were submitted on both
sides, and the cause was fully argued on the
hearing of the motion for a preliminary In-
junction, and I asked the parties If they were
willing to submit the matter as on final hear-
ing, but this was not assented to; therefore
the matter was disposed of on motion tot in-
terlocutory Injunction, which was granted.
After stating the facts substantially as above
set forth, I said in my memorandum grant
ing the preliminary injunction:
"Given a switch or turnout wliich existed in
a locality for 12 years without protest from ei-
ther the owner of abutting land or the propca'
authorities, and it follows that the status should
be preserved pendente lite, especially as it is
not shown that any decided uconvenienco to
the public or the landowner will occur ad in-
terim."
After the granting of the Interlocutory In-
junction the parties consented that I should
decide the question as on final hearing, on the
pleadings, depositions^ and exhibits submit-
ted.
[1, 2] After a careful review of the whole
case my opinion now is that the complainants
are entitled to have the status preserved per-
petually. No inconvenience whatever to the
public will result from It, and very little, if
any, to the landowner in front of whose prop-
erty the turnout was laid in 1903, and has
since been maintained; and eq)ecially should
the injunction go, as the defendant Ur. Knif-
fin did not own the premises at the time of
the turnout's construction, but acquired the
im>perty about 10 years afterwards, with
the turnout In front of It
Although the turnout or switdi Is not lo-
cated at the point shown upon the map of the
railway line and designated by the ordinances
granting x)ermisslon for the laying of the
tracks, and if it had been built at the point
designated by the ordinance and map It would
not be in front of the property so long after-
ward acquired by the defendant Dr. Knlffln,
1 am of opinion that the defendants, or any
one of them, are not entitled to insist upon its
removal. That this court has power to en-
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N. J.) TKENTON A MERCER <X>. T. CORP. v. INUA-BITANTS OP EWINO TP. 1030
Join the removal, by a municipal corporation,
of tracks of a street railway company. In a
proper case, has been decided In Asbury Park
4 Sea Girt Ky. Co. v. Neptune Township, 73
K J. Eq. 323, 67 AH. 790, affirmed 75 N. J.
£}q. 562, 74 Atl. 998. The question is: Is this
a proper case? I think It Is.
Although consent to the btilldlng of the
road with the turnouts shown on the map was
legally granted, the defendants contend that
the turnout in question, not being located at
the point designated on the map, consequently
was not authorized by the ordinances, and
that ratification of the location of the turn-
out. If any, was given Informally, and not by
the proper munldpal authorities In meeting
assembled' for that purpose; and they rely
largely upon West Jersey Traction Co. v.
Camden Horse Ry. Co., 53 N. J. Bq. 163, 35
Atl. 49, whereto it was held that, where a
statute requires consent by a township com-
mittee to legalize the laying of a street rail-
road, It Is necessary that the consent should
be given when the members of the committee,
or a majority of them, are assembled In cor-
porate meeting, and that tlie declarations of
individual members are not legal evidence to
prove acts of the corporate body, nor Is the
public estc4>ped by sudi declarations. That
case, however, was one in which an Injuno
tion was sought to restrain the alleged im-
proper building of a line of railroad in the
first instance; and the doctrine of estoppel
against a municipal corporation whl<ii bad
for at least 12 years acquiesced in an actual
location of a railroad turnout, which it could
bave authorized in the first instance, was not
presented. That estoppel obtains against an
individual defendant in such case I think un-
doubted.
In O'Leary v. Street Railway Co., 87 Kan.
22, 128 Paa 746, it was held by the Supreme
Conrt of Kansas that the city of Kansas City
should be estopped from questioning the le-
gality of certain completed changes In one of
its streets, made hy a street railway, company
under color of ■ ordinances of the dty, al-
though such changes were not warranted by
the ordinance, but which were to be consider-
ed as luivlng. been lawfully made, the city
having had pai^erMi^ the first instance to au-
thorize them, and that the abutting property
owner ^ould not -be allowed damages on the
theory that the work was unlawful and cre-
ated a nuisance. The court obseryed, at page
30 of 87 Kan-, at page 749 of 123 Pac. (quoting
from Bridge^ater Boro. v. Traction Co., 214
Jfa. 343, 63 4tl- 796):
"Where a street railway company in .laying
itm track on a. borough street aas slightl:? de-
flected from the line for the track established
i>y the boroaifh and the borough has acijuiesced
in this location of the track for 10 years, it
will be presumed to have ratified the deflected
line, and if the railway company in recoustruct-
irig its track lays it upon the deflected line,
the borough has no standing to object."
The situation before me Is quite similar to
ttiat in Bridgewater Borb. v. Traction Com-
vany quoted in O'Leary v. Street Railway
Company. There a street railway company
laid its tracks, not on the line established by
the municipality, but on one deflected there-
from. Here, the railway company has con-
structed a swltcii, not at the iK>int located
by the ordinance and map, but at some dis-
tance therefrom. There is no practical differ-
ence, at least none in principle, in deflecting
the tracks of a street railway from a line
established by municipal authority, and In
building a turnout not at an authorized point,
but at one somewhat removed therefrom. It
is not upon the docteine of adverse jwsses-
sion, but upon that of estoppel in pais, that
the municipality and the private owner
should now, under ail the drcumstancea of
the case, be enjoined from removing the turn-
out from the location where it was main-
tained for 12 years without protest from the
municipality or the landowner, the present
landowner having acquired his property after
the switch had been installed for 10 years,
and who, therefore, had actual notice of its
location and operation at the time that he
purchased and went into possession of the
premises in front of which the turnout is laid.
Judge Dillon, in Ills work on Municipal Cor-
porations (6th Ed.) vol. 3, p. 1900, § 1194.
treating of adverse possession of streets and
highways, states his view and suggestions as
to the true doctrine as follows:
"Upon consideration, it will perhaps appear
that the following view is correct: Municipal
corporations, as we have seen, are re»^rded a«
having, /n some respects, a doable character,
one public and the other (by way of distinction)
private. As respects property not be)d for
public use, or upon fiublic trusts, and as re-
spects contracts and rights of a private nature
there i« no reason why such corpoiations should
not fall within limitation statutes, and be af-
fected by them unless excluded from them. For
example, in an action on contract or for tort,
a municipal corporation may plead or have
pleaded against It the statute of limitations.
But such a corporation does not own and caii-
not alien public streets or places, and no mere
laches on its part or on that of its officers can
defeat the right of the public thereto; yet
there may grow up, in consequence, private
rights of more persuasive force in the narticidar
case than those of the public. It will perhaps
be fonnd that cases sometimes arise of such a
character that justice requires that an equi-
table estoppel shall be asserted even against
the public, but, if so, such cases will form a
l^w. unto themselves, and dp not fall witliin.the
l&gal operation of limitation ' enactments. The
author cannot assent to the doctrine that, as
respects public rights, municipal cor^rations
are impliedly within ordinary limitation stat-
utes. It is nnsafe to recognise sucdi a prin-
ciple. . But there is no' dandier in recognizing
the principle of an estoppel m pais, since this
leaves the courts to decide the question, not by
the mere lapse of time, but upon all the circutn-
stances of- the case to hold the public estopped
or not, as right and justice may require."
This same doctrinfe of equitable estoppel
against the public arising out of matter in
paia was asserted by me, when ' vice chan-
cellor, in Mason v. Ross, 75 M. J. £q. 136, 143,
71 Atl. 141, reversed 77 Ni J. Eq. 527, 77 Aa
44,. but upon other ground.
The views above expressed lead to the con-
clusion that the defendant muoicipalitiea,
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1040
101 ATLANTIC REPORTER
(N.J.
Doth of whldt ordered the removal of ttie
turnout, one of which (the township) direct-
ed its agent actually to remove it, and the
agent should be perpetually enjoined from re-
moving the turnout from its present loca-
tion; no injunction to go against the Indi-
rldual landowner, who never threatened to
remove the turnout, has no intention of doing
so, and only urged upon the municipalities
that they take proper steps to remove it.
The only award of costs to be made inter
partes will be in favor of the complainants
against the defendant municipalities.
(88 N. J. Bq. «)
LAWRENCE V. PROSSER et al.
(No. 42/187).
(Court of Chancery of New Jersey. Aug. 16,
1917.)
1. Deeds e=9211(3) — Fbaud — Evidence—
SumCIENCT.
Evidence held insufScient to show frand in
act of deceased in securinf; deed froin her neph-
ew of his interest In uncle's estate.
2. SPEoino Perfokuance <8=>86— Contbact
TO Devise.
Where one heir deeded the other his inter-
ests in land, for which tbe grantee orally agreed
to make a will amply providing for the gran-
tor, and later the parties made mutual wills,
each making the other the sole beneficiary, the
contract was sufficiently specific to warrant
equitable relief in favor of the grantor, when
the grantee subsequently altered her will to his
detriment
3. SPECIFTO PEBFOKlfANCB «=a86— CONTBACT
TO Devise.
In such case, the mere fact that the agree-
ment was completed at a later date than that
on which the oral agreement was made did not
prevent consideration of the entire transaction
as one contract.
4. Wills ®=»64— Contract to Devise— Rkv-
ocabilitt.
The mere fact that the completion of a con-
tract amply to provide for another person was
in a will did not make the contract revocable.
6. Specific Pebfokuance ^=s>129 — Fraud-
Evidence — SUFFICIENOT.
One who deeded interest in estate to his
aunt, in consideration for her amply providing
for him in her will, and who, thereafter sued her
husband's estate for the amount which she paid
her husband, could not have both such amount
and an enforcement of the contract to provide
for him in the will.
Suit by Luman W. Lawrence against Jud-
8on C. Prosaer, executor of Mrs. Dean, and
otbers. Decision reserved.
Scott German and Frank E. Bradner, both
of Newark, for complainant. Hugh B. Reed
and Theodore D. Gottlieb, both of Newark,
for defendant Prosser. Edward Q. Keasbey,
of Newark, for town of Bucksport
STEVENS, y. 0. Tbe complainant seeks
to have a transfer of an interest in property,
made by him to his aunt, Mrs. Dean, annull-
ed, on the ground of fraud. In April, 1911,
Luman Warren, a resident of Bucksport, Me-,
and an uncle of complainant, died Intestate,
leaving an estate, consisting of personalty
and realty, valued at about $60,000. His
heirs and next of kin were a sister, Mrs.
Dean, and three nephews, John, Stevens, and
Luman Lawrence. Mrs. Dean wns entitled
to one-half of his estate, and his three neph-
ews, each, to one-sixth.
The complainant, Luman, who is about 55
years old, had up to March, 1905, lived with
his brother John near Boston, but, as he says,
being out of work, he, at bis aunt's invita-
tion, came to live with her in Newark. The
family then consisted of Mr. Dean, who wa»
engaged in tbe business of keeping a restau-
rant, and of Mrs. Dean. They had no serv-
ant, and Luman, from tbe time he went there,
took the place of one. He did everything
that a maid of all work would ordinarily
have done. His aunt's health was poor, and
she herself could do but little. He lived with
her, in .this way, up to the time of her death
in June, 1916. Mr. Dean predeceased bis
wife by a few months. She is thus descril>-
ed by Rev. Dr. Waters:
She was a "domineering shrew. She irapreas-
ed me as a woman in whom there was a strus-
glc going on of unusual strength between the
good and the evil in her. At times she was
very quiet and of a very gracious personality,
and other_ times she was extremely hard. On
one occasion, she ordered Luman out of my
presence and her presence, as I don't think I
wo»ild order a dog away from my premises.
• • ♦ There is an old England term that
says she was very tight. She had an obsea-
sion, I think, as to money affairs, * * * it
was her inordinate — well— greed, if I may so-
call it, that was the controlling impulse in the
woman's life, with a certain intense hatred
which she exhibited, which she either felt or
assumed to feel, toward her relatives."
Of Luman be says that:
He "always impressed me as extremely docile,
obedient; as a person who had subordinated hi*
own mind and will to the direction and con-
trol of Mrs. Dean."
This description of the two principal char-
acters in the case is borne out by the evidence
of the other witnesses. Shortly after the
death of Luman Warren, the uncle, at Buck-
sport, Mrs. Dean and her nephew went there
and conferred with Mr. Smith, an attorney,
who subsequently became the administrator.
A dispute at once arose, as to the adminis-
tration, between Mrs. Dean and ber Massa-
chusetts nephews, which produced a bitter
feeling between them. Mrs. Dean wanted
what she regarded as a controlling interest
in the estate, and proposed to Luman that he
assign his one-sixth Interest to her. She did
this for two reasons: First, to secure con-
trol; and, second, to protect Luman against
bla brothers, who, as she thought, rightly or
wrongly, would, if they had the opportunity,
play upon Luman's easy-going disposition
and strip him of his property. Mr. Smith,
who is an intelligent and disinterested wit-
ness says :
"I can recall that he [Laman] denounced his
brothers in unmeasured terms, and Mrs. Dean
was equally as bitter against them as Lomaa
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IjA WHENCE ▼. PROSSER
1041
waa at the time. • • • She [Mrs. Dean] stat-
ed that she was afraid that if his brothers,
Stevens and John, got his share of the Luman
Warren estate into their hands, they would
turn him out— cast him adrift upon the world.
• • • She stated to me [his evidence shows
that the statement was made in Lnman's hear-
ing and was approyed by Luman] that he was
possessed of certain infirmities and that his
brothers had turned him out, and he went on
there [to Newark], and she took him in and
made a home for him, provided for him, and
intended to provide for nim as long as he liv-
ed, and make ample provision for him in her
wiU."
Mr. Smith drew a deed from Luman to his
aunt, by which he conveyed to her his un-
divided sixth interest in the land and person-
al estate derived from Ms uncle. This deed
was executed at Newark on August 2, 1911.
I have no doubt whatever, notwithstanding
Luman's present denial, that he understood
the purport and object of it, and that he
agreed to It, on the faith of his aunt's prom-
ise to "provide for him at her home as long
as he lived," and amply to provide for him
by her will "after she was dead and gone."
Mr. Smith's statement of the bargain is cor-
roborated by Mrs. Dean's letters and acts,
by witnesses In the best position to remem-
ber, and, in the end, by Luman himself.
On May 2, 1813, she and Luman executed
mutual wills. He gaye his property to her,
and she, by a codicil to a former will, after
giving her husband (who, as I have said,
predeceased her) a life interest, devised and
bequeathed her estate to Dr. Oeorge W. Cle-
ment, of Boston, in trust to invest and pay
the Income periodically to Luman during his
natural life and at his death, to pnrdiase the
necessary land and erect thereon a suitable
building to be used as a public hall for the
Inhabitants of Buckspoit. Shortly before,
under date of April 20, 1913, she had written
to Dr. Clement, telling him that words could
not express her gratitude toward him for ex-
pressing his willingness to act —
"when the time comes ; for it is . my duty to
provide and protect my sister's son. • • •
Luman's inheritance from his uncle will be in
the neighborhood of $14,000." (She apparent-
ly overrates the amount, the evidence indicating
that it is from $10,000 to $12,000.) "liuman
has sold to me all his claims, and I shall in re-
turn give him all my property during his life,
under guardianship, that he will be cared for
pad not a prey to scheming friends."
This letter appears to me to be conclusive
ev1d«ice that Mrs. Dean did not regard the
transfer in the light of a gift, but as the con-
sideration for a binding promise on her part.
To Rev. Dr. Waters she spoke in the same
strain:
"She informed me that she and Luman had
exchanged wills ; Luman liad willed his proper-
ty to her, and she hers to him; that it was her
purpose to see that her property reverted to
Luman when she passed away, subject to re-
strictions. She did not think that he was as
capable as he might be, on account of his deaf-
ness or inexperience, to take charge of the
property, and she was going to will it so that
he would have the use of It subject to restric-
tions." "She was afraid some sliarp fellows I
101 A.-66
might get the property away from Luman, and
she wanted him to have the benefit of it daring
his lUe."
On February 29, 1916, she apparently, from
mere caprice, revoked her disposition in La-
man's favor, and gave him, instead, a yearly
income of $600 during his life. Luman, when
cross-efiimined at the close of the case, after
denying that the deed of August 2, 1911,
was read to him before he signed it, testifies
as follows:
"Q. But yon knew, when you signed it, that
you had signed a deed? A. Well, I knew, as
you might say, that it was a paper for that
purpose. • • • My aunt told me it was to
sign that paper to hurry up the sale of the
property, and that is all that I know. Q. She
[Mrs. Dean] said it was a deed, didn't she?
A. A deed, or a paper; whatever you might
call It. Q. And you knew as a matter of fact
it was a deed? A. I wouldn't say as a matter
of fact that I knew it was a deed; but I knew
she said it was a paper where that would be
done to hurry up the settlement of the property.
I didn't know that X was throwing my stuff
away. • • • Q. Xou never questioned the
validity of that act until you filed your bill?
[August 22, 1916.] A. Never did question It;
didn't know anything about it. • • • Q.
Didn't you know as a matter of fact that your
aunt had provided for you after her death?
A. Why— after hep death— why, yes, I saw
what it said in the will. That is all I see. All
I knew. Q. And was that satisfactory to you?
A. Good God! No; it wasn't. Q. When did
this dissatisfaction on your part first mani-
fest itself? A. When did it? Why the first
time I knew it was said in the will. [The wit-
ness is here evidently referring to the second
will, which cut him down to an income of $600
a year.] Q. What had yon expected? A. I
expected I had the whole damn thing. Q.
What led you to that expectation? A. That
was because the— according to this will that
she and I made; by golly, that was what it
was. Q. Well, then, yon did expect that she
had made provision for you; only you expected
a better provision than manifested itself. Isn't
that so? A. Wtll, that might be so; and an-
other thing : According to that will there, what
she drew— -I drew in her favor and my favor. I
was to have the whole thing. Tliat is what I
supposed I done. Q. And was that your agree-
ment with her ; that you were to have the whole
thing? A. That was the agreement, right
straight down, when that will was made out."
The two wills of May 2, 1813, were drawn
by Judge Raymond. Mrs. Dean and her
nephew went to his office together, and it Is
perfectly obvious that their contents were
known to both and satisfactory to both. The
will of Mrs. Dean was evidently intended to
be In fulfillment of her promise made in Mr.
Smith's presence, in the summer of 1911,
that, in consideration of the transfer of Ui-
man's interest in his uncle's estate, she would
amply provide for him. And the bequest in
the will of 1913 was an ample provision. It
would, in the events that happened, have
given him a clear yearly Income of over $2,-
000 — much more than an equivalent for the
interest he had turned over. The bequest in
the win of 1916 was not an ample provision.
What Induced Mrs. Dean to change her will
just before she died does not appear. Lu-
man continued to be her faithful servitor up
to her death. It is true that, between the
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1042
101 ATIiANTIC REPORTER
(N.J.
time of the making of the mutual wUIs and
her death, her estate had been augmented
$20,000, or thereabout, by what her husband
had left her ; but, even without ttils addition,
Luman would have received three times as
much as she finally gave him.
[1] The complainant has put in evidence
letters showing that Mrs. Dean was trying to
conceal from her Massachusetts relatives the
true character of the transfer, and he has
produced witnesses who speak of her casual
declarations to the effect that Luman's inter-
est had been turned over "for her to take
care of." These do not, as It seems to me,
throw any additional light upon the case.
The transaction, stated in its simplest form,
was obviously this: Mrs. Dean wanted to
control as much of her brother's estate as she
could, and she wanted to protect Luman
against himself; to protect him in the way
that she thought best. In point of fact, up to
within three months of her death, her plan
to provide for him was greatly for his inter-
est He had no one dependent upon him, was
not likely to marry, and would be better off
with a large Income than a small principal.
During the period between August, 1911, and
February 29, 1016 — the date of the making
of the last will — ^there Is no evidence that she
liad the slightest intention of perpetrating a ,
fraud upon him. The equivalent she Intend- |
ed to give was more than equal in money
value to what she had received. The injus-
tice tliat he had suffered, if it be an injus-
tice, arises from the change in his aunt's pro-
vision for him. Un these facts, it seems quite
impossible to find that the deed was fraudu-
lently obtained.
It Is argued that the court should annul
the transfer on the principal of Slack v.
Rees, 21 Dick. 447. This and similar cases
do not apply, for the reason that this is not
a case of an Improvident gift, but of a con-
tract which, in terms, stipulated for a full
equivalent Luman was to be amply provid-
ed for. While he was . no doubt weak and
yielding, and Ids annt imiwrious, there is not
the sUgfateat evidence that he did not, ];>ossess
sufficient capacity to make a bargain with
her.
This brings me to. the question whether
this court can give reli^, and what that re-
lief ought to be. The question is not whether
the wills of May 2, 1913, are binding, because
executed on the same day and parts, of one
transaction, but whether Mrs. Dean's wUl,
made in fulfillment of her promise and based
on adequate consideration, is not binding up-
on her. The evidence justifies the inference
that the provision was made in fulfillment of
her promise and that it was accepted as such
by the promisee. The executor and the town
of Bucksport cite Eggers v. Anderson, 63, N.
J. Eq. 264. 49 AU. 578, 55 U R.A. 570, as a
controlling authority. As I UBderstand.the
decision. Justice Dtxon made, a distinction
between a promise, based on valuable con-
sideration, to make a specific provision by
will, and a promise merely to make a will; a
promise induced by charitable acts of the
promisee performed and to be performed;
acts which the promisee had done and con-
templated doing, but without legal obliga-
tion resting upon her to continue them. He
concedes that a promise to make a specific
provision by will, supported by consideration,
may be binding ; and such is the current of
authority.
Schouler, in his book on Wills and Ad-
ministrations, i 454, says that a court of equi-
ty will specifically enforce a contract to exe-
cute a will after a certain tenor, when the
contract is founded upon valuable considera-
tion. It does this by fastening a trust upon
the estate of the deceased, not only where
laud is concerned, but personalty as well.
One of the earliest cases — Dufour v. Perira,
Dickens, 420 (A. D; 1769) — was a case of
trust declared In respect of certain bequests,
in a note to section 746 of Pom. ESq. Jur., the
author quotes with approval what is said In
Bolman v. Overall, 80 Ala. 451, 2 South. 624,
60 Am. Kep. 107. The passage is entirely ap-
posite to the present situation.
"All the authorities agree that one may, for a
valuable consideration, renounce the absolute
power to dispose of his estate at pleasure, and
bind himself by contract to dispose of hia prop-
erty by will to a particular person, and that
such contract may be enforced after his decease,
either by an action against the personal repre-
sentative, or, in a proper case, by a bill in the
nature of specific performance agaiast bis bein,
devisees, or personal representatives."
Tills is the doctrine of Jolmsoa ▼. Hubbell,
10 N. J. Eq. 832, 66 Am. Dec 773, a leading
case on the subject An action at law for
breach of contract would here do vlcAence to
the intentions of both parties, and would not
do justice to either. The equitable remedy
would effectuate the very trust intended. A
promise, based on valuable consideratian, to
do a lawful act wiU, If broken, generally, If
not always, give rise to some form of action,
^e only question will be whether the relief
to be accorded shall be legal or equitable. I
take it that tf the promise made by A. I>e
merely amply to provide for B. by wiU, B.,
U the promise be broken, would have to sue
at law for damages; but if the promise be
to give a particular tiling l>y will — at least
such a thing as cannot be adequately com-
pensated for by damage? — and the statute ot
frauds do not prevent (Maddison v. Alderson
{1883] 8 APP- Cas.), B, may sue in equity. As
a trust was intended — a trust that would be
defeated, it damages were given — the ques-
tion reduces itself to this:
[2] Was the contract sufficiently spedflc to
warrant equitable relief? In the flrst in-
stance, perhaps, it vaa not As made just
before the time of the. transfer in August
1911, it was, merely, "amply to provide."
But when Luman made the transfer, and
when Mrs. Dean executed her will and spe-
dflcally defined, the ample provision, in terms
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IMFBOTED BOIXiDINO & LOAN ASS'N v. LARKIN
1043
satisfactory to both, the contract was com-
pletely executed on one side and completely
defined on the other, and could, therefore,
only be varied by the consent of both. If
she had made the will contemporaneously
with the transfer of the property and because
of the transfer. It is clear under the authori-
ties tliat a contractual obligation would have
been imposed upon her. Because she waited
awhile, the obligation all the time resting ui>-
on her to do the very thing which she did, it
does not seem to me that the efFect of the
transaction, looked at as one whole, is dif-
ferent.
[3] If it be ar^gued that the agreement at
the time of the transfer was not complete in
all its parts, that the ample provision was
not specifically defined, that after having
once defined it she might, within the limits
of her contractual obligation, still redefine it,
if She made it ample, the answer is that, in
view of her circumstances and of what she
bad received, the second provision was not
ample, and so the change was contrary to
her obligation. But, further, it must be re-
membered that Mrs. Dean is dead, and com-
plainant under a disability fully to testify.
In view of the evidence, I think it a fair in-
ference that the kind of provision was from
the beginning understood between them, and
that the will did no more than embody the
imderstanding in a writing. It would be too
much to say that, because the papers relating
to the two parts of this transaction were ex-
ecuted at different times, we are to apply a
rule different from that that would have gov-
erned, bad they been executed at tlie same
time. The different parts of a complex trans-
action are frequently reduced to writing at
different times; but this does not prevent
their being considered as one whole.
[4-] Again, it is argued that, because the
provision was contained in an instrument in
its nature revocable, it was subject to change
at the will or caprice of ttie testatrix. The
will was, of course, revocable ; but the agree-
ment to make the provision, being founded
on valuable consideration, was not. It was
the duty of testatrix to embody it in any
wlU she thought fit to make.
[t] There is an unfortunate complication.
Liuman sued the estate of Mr. Dean while
this suit was progressing, and by the verdict
of a Jury recovered, not only wages for serv-
ices rendered in the Dean home, but also the
amount of a check for $1,342, part of Luman
Warren's estate, that under his nephew's deed
of transfer passed to his aunt The fact that
it was handed over to Mr. Dean — ^it must be
assumed with his wife's consent and as her
agent — did not make it part of Mr. Dean's
estate. If Luman, therefore, claims the
money, he to that extent endeavors to re-
pudiate his transfer. He cannot have the
consideration on which his aunt's agreement
was based, and at the same time claim the
benefit of the trust constituted for his bene-
fit. Counsel have not discussed this phase
of the controversy, and I will bear them
on it.
(8S N. J. Eq. S2)
IMPHOVED BUILDING ft LOAN ASS'N T.
LARKIN et aL (No. 41/253.)
(Court of Chancery of New Jersey. Aug. 2,
1917.)
1. MECEAmos* Liens «=9l&5 — Pbioretiks—
CONTBACT.
To protect property against mechanics' liens
subsequently filed, a buildmg contract filed must
be between parties who in truth, and not in
form merely, hold to each other the relation of
contracting parties.
2. MOBTOAOES «=»463— FOEECIOSUBB— Evi-
DENCX.
In a suit to foredose a mortgage on land
apon which a building was erected, evidence held
to show that the building contract, which was
duly filed, was not in truth between parties hold-
ing to each other the relation of contracting
parties, and hence such contract did not protect
the property against mechanics' liens.
3. Equity 9=>427(1) — Dbcbeb — CoNFORurrv
TO Pleadings.
Ab a decree with reference to matters out-
side of the issues raised would be void, even in
collateral proceedings, such matters should not
be disposed of.
4. MoBTOAOEs «=3l51(3)— Mechanics' Liens
. p pj OBITIE B
Where mortgages, though preceding lien
claims, were made after building was commenc-
ed, the mortgagees, the property not being pro-
tected from lien claims by contract filed, must,
in order to obtain priority under Mechanic's
Lien Act, f 16 (3 Comp. St. 1910, p. 3303), shpw
that the moneys secured were actually advanced
by them and applied to the erection of the build-
ing, and mere proof of payment to the mortgagor
is insufiicient.
6. MoBTQAOES «s»151(3)— Mechanics' Lisnb
— Pbiobitt.
Where money obtained on a mortgage given
after building operations hod commenced was
used to discharge a prior incumbrance on the
land, the mortgagee is not, as to the amounts
used to defray the incumbrance, entitled to pri-
ority over lien claimants on the theory that such
sum was devoted to building purposes ; land be-
ing distinguished in Mechanic's Lien Act, S 15,
from a building.
6. Vrndob and Pdbchaskb «=»266(8)— Ven-
dob's Lien— Loss.
A vendor who takes a mortgage for unpaid
purchase money loses his vendor's lien.
7. Mechanics' Liens <S=198 — Mortoaqes
«ss>151(l)— Liens— Pbiokity.
Hie vendor, who took a mortgage for the
unpaid purchase money, agreed through her at-
torney to release such mortgage to enable an-
other mortgagee to have a first lien. The ven-
dor's mortgage was released, but the purchaser
failed to pay the entire sum due the vendor.
Thereupon a deed reconveying the property to
the vendor to secure the unpaid purchase money
was executed. Held that, thougn the deed was
antedated, yet as it did not take effect until
delivery, the lien of the vendor by reason of her
first mortgage was waived, and her rights un-
der the deed of reconveyance became junior to
those of the mortgagee and other existing lien-
holders.
8. Deeds «=»108—Deijvebt— Effect.
A deed takes effect only from the time of de-
livery.
«=BFor otber cases see same topic and KBT-NUMBER In all Key-Numbered Digests and Indexes
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1044
101 ATLANTIC EEPORTBB
(N.J.
0. Mechanics' Lienb 9s»198 — Pbiobitixs —
Patments.
Payments of freight and for a -watehman for
a building in the process of construction, made
out of the moneys furnished by a mortgagee,
win, under Mechanic's Lien Act, { 15, where the
watchman was necessary, take priority to me-
chanics' liens.
10. MoBTGAaKS «=>414 — POKBCtOSUBB — De-
I-AT.
Foreclosure of a mortgage will not be delay-
ed, though the status of the claim of one of the
parties to the suit remains to be determined
by an action at law.
Bill by the Improved Building & Loon As-
sociation against Clara H. Larkin and others.
Hearing on bill. Decree for complainant.
Thomas J. Butler, ol Newark, for com-
plainant Mr. Stelnhardt and Mr. Clymer, of
Newark, for defendants Katchen & Rablno-
vija. Mr. Bianchl, of Orange, for defendant
Latin-American Const Co. and others. Perry
& Grofiso, of Orange, for defendants Larkin
and others. Mr. Bernard, of Newark, for de-
fendant Dorfman. Bllder & Bllder, of New-
ark, for defendant Lum. Mr. Hinrichsen, of
Newark, for defendants Cook & Genung.
STEVENS, V. C. This is a suit to fore-
close a mortgage. The defendants are sub-
sequent mortgagees and lien claimants.
[1,2] The first question Is whether the
filing of the building contract dated June
24, 1914, made by John T. Kelly, with a
partnership known as the Latin-American
Construction Company, operates to protect
the property buUt upon against mechanic's
lien claims filed subsequently. The Insistence
Is that the contract was made between pax-
ties 80 related as to bring it within the prin-
ciple of Young V. Wilson, 44 N. J. Law, 157.
This case holds that the agreement, the filing
of which protects ajgalnst the lien of other
creditors, must be between parties who in
verity, and not in form merely, hold toward
each other the relation of contracting parties.
In April, 1914, David W. Dorfman, Nich-
olas A. Norelli, and Danld J. Scrocco formed
a partnership, to make and perform contracts
far constructing buildings of every sort.
They filed with the county clerk a certificate
of partnership, which bears date April 11,
1914, and which states their business name
to be "the Letln-Amerlcan Construction Com-
pany." Dorfman and NorelU were ardii-
tects; Scrocco was a clerk. On June 6, 1914,
John T. Kelly entered Into a written agree-
ment with J. Frank Larkin, husband of Clara
H. Larkin, to purchase, for ^,000, the land
covered by complainant's mortgage. KeUy
seems to have been a business acquaintance
of the partners, and so impecunious that he
was unable to pay any money whatever at
the time he agreed to buy. He gave instead
bis note for $50, indorsed by Norelli. evi-
dently the agreement that he made with Mrs.
Larkin was intended to promote the plans
of the partners. It having come to their
knowledge that there were judgments against
Kelly, the deed was, with his consent made
to Dorfman, who gave a mortgage of ?2,000
to secure the entire consideration money.
This deed bears date June 6, 1914, but it was
not acknowledged or delivered until the fol-
lowing August
Notwithstanding the fact that Kelly was
entirely destitute of means, on June 27th,
he entered into a building contract with the
Latin-American Construction Company, by
the terms of which he agreed to pay ?28,000
for the erection of a large tenement house on
the property In question. This contract was
filed June 2, 1914, and work was begun un-
der it before any deed was given. Evidently
the cost of construction was to be provided
for by the Construction Company, itself i>os-
sessed of very little money, and by loans to
be obtained during the prog^ress of the work.
Up to August 6, 1914, the owner, using that
word in the sense of the Mechanic's Lien Act,
appeared to be Kelly, and the work was ap-
parently being done for him. 1 say apparent-
ly, because it Is evident that Kelly's interest
was of the slightest It was so slight that,
when Dorfman discovered the judgments,
Kelly, at the request of the partners, assign-
ed to him, without consideration, his interest
both in the land and in the contract. But
this created a complication. Dorfman, as
a member of the partnership, became both,
builder and owner, and it was feared by its
counsel that the effect of the filing of the
contract would be nullified. Thereupon the
company, so called, which seems to have
proceeded as if it were a corporation, passed
a resolution stating an agreement that Inas-
much as Kelly had assigned his rights to
Dorfman, Dorfman would resign his member-
ship and a new construction contract be made
between the company and Dorfman, and (I
quote its language) "that the amount shall be
the same as the one with Mr. John T. Kelly."
At or about the time of the passage of this
resolution Dorfman took an assi,gnment of
the Kelly contract, and joined in the execu-
tion of a new contract between himself and
the remaining partners, Norelli and Scrocco.
This was an exact copy of the other, except
its date. It was never filed. NorelU says:
"I kept to the KeUy contract, the original
on file." It is not at all unlikely that the
parties at first regarded the second contract
as the one to be deemed in force, and then,
in view of the difficulties of the situation,
thei first ; for It appears that they filed the
assignment of the first contract three monUis
after they obtained it Obviously the persons
from whom they hoped to borrow money
would be likely to Insist that a boilding con-
tract should be on file. A striking illustra-
tion of how lightly the obligations of the
contract were held appears In the case of
Joseph Del a Fera. The Kelly contract in-
cluded the carpenter work. But when it
was sought to subcontract this work, Del a
Fera, refusing to take a subcontract from
or otber ca««s ■•« «am« topic and KEY-NUMBEB In all Key-Numbered Digests and ludazM
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IMPROVED BUILDING ft LOAN ASS'N v. LARKIN
1045
the construction company, was given a con-
tract directly with the owner, Dorfman. Un-
der these circumstances It seems to me to
be the unavoidable Inference that the par-
ties were contracting parties in form mere-
ly ; that the case falls within the principle of
Young V. Wilson, supra, and that the contract
does not protect the land against the liens of
creditors.
The creditors* liens mentioned in the bill
are the following:
Aug- 6, 1914. Mortgage to Mrs. I^rkln.... I 2,000 00
•• U, 1914. •• " complainant ... 18.000 00
Oct. SO. 1114. " "Wsldemmr
Dortman 5.0(0 CO
Ma7 13. 191S. " - Ajnorose 1.000 00
Aug. 26, 1914. Contract of lannacono A
Ambola.
April (, 1915. Attachment by Cobk A Ge-
nung (or 400 00
Dec. 31, 1914. Judgment o( Da Stelano,
agent David W. Dortman
for 84908
June 10, 1915. Meetaanlc's lien b7 Del m
Pera for 9,150 00
Jona 24, 1915. Hecbanic's lien by Katcben
ft Rablnovltz 1.005 00
** 18,1915. Uecbantc'8 Uen by Nicholas
Norelll 1,«95 0«
Aug. 4, 1915. Mechanic'* lien br Amoroso 1,823 00
" 11,1916. Mechanic's lien by Person.. 160 UO
SepLSO, 1915. Mechanic's lien by Katchen
ft Rablnovitz 165 00
Oct. 8.1916. Mechanic's lien by Shapiro.. 600 00
" 15,1916. Mechanic's lien by Latin-
American Construction
Company 18.57100
Fab. 14, 1916. Mechanic's lien by Amoross 1,825 00
[3] The complainant has taken a decree pro
confesso against David W. Dorfman, Frank
Larkln, Ernest Lum, as trustee of the Orange
Supply Company, Kelly, De Stefano, Cook &
Genung Company, Person, Shapiro, and one
or two of the other defendants who appear
subsequently to have answered. Most of the
answers are drawn without regard to the
fundamental rule of equity pleading that he
who answers must state his case and answer
fully. I shall not, in the very complicated
situation presented by the proofs, go outside
of the issues raised. The court can hardly
be expected to decide matters not set up In
the pleadings, when a decree made in rela-
tion to such matters would be void, even in a
collateral proceeding. Reynolds v. Stockton,
43 N. J. Eq. 211, 10 Atl. 385, 3 Am. St. Rep.
305, affirmed 140 U. S. 254, 11 Sup. Ct. 773,
35 L. Ed. 464.
[4] While the mortgages precede the lien
claims in point of date, they are attacked on
the ground that the money lent thereon, or
part of it, uid not go into the building. As I
have found that the contract made between
Kelly and the Latin-American Construction
Company of itself affords no protection
against liens, the mortgages must be dealt
with as provided for in section 15 of ttie Me-
chanic's Lien Act. They were all made after
the building was commenced. The mort-
gagees must therefore prove that the moneys
secured were actually advanced and paid by
them and applied to the erection of the build-
ing built upon the land mortgaged. Since
the decision of the Court of Errors in Frank-
lin Soc. V. Thornton, 85 N. J. Eq. 525, 96 Ati
922. and of the Supreme Court in Young v.
Halght, 69 N. J. Law, 453, 55 AtL 100, theie
can be no doubt as to the rule. Says tium-
mere, C. J., in the latter case:
"The only test is whether the mon^ has been
loaned for the erection of • * • the building
and has been actually applied to that purpose."
If latwr or material have gone into the
building, money lent to pay for such labor or
material would, of course, be within the rule,
and equally, it seems to me, would be money
lent to pay a contractor or subcontractor to
whom, under his contract, payment is due for
work actually done. But money paid to a
person charged with the duty of paying such
contractor does not come within the rule, un-
less it be further proved that such money was
actually paid over. In the case in hand,
proof of payment by complainant to David
Dorfman, or to Norelll, or his partner Scroc-
co, would not suffice. The proof must go fur-
ther; it must show that they applied it to
the erection of the building, by paying it In
one of the ways I have mentioned.
[E] The question then is: Were complain-
aut's and Dorf man's moneys so applied? As
far as complainant's mortgage is concerned,
I do not find in the briefs banded to me any
insistence that it was not, except in that of
ICatcben & Rablnovitz. The answers or no-
tices of Amoroee, Wald«nar Dorfman, Lum,
Norelll, and Cook & Genung expressly admit
the priority of the lien. Under these circum-
stances the complainant is entitled to have
the full amount due on his mortgage paid to
him before any other liens are paid, except
the Uen of Katchen & Rablnovltz, as to whom
he must show that the money went into the
erection of the building. The principal con-
ten tion that Katchen & Rablnovitz make OQ
this head is that $1,200 of the money lent
went to pay Mrs. Larkln for the purchase
price of her land. The facts are these: Mrs.
Larkln, as has been already stated, deeded
the property to David Dorfman in August,
and took a mortgage of $2,000 to secure the
price. Dorfman applied to complainant for
a loan, which was granted only on condition
that it should have a first lien. Mrs. Lar-
kin's solicitor, Mr. Grosso, says:
"Mr. Dorfman, and Mr. Norelll, and Mr.
Giordano, their attorney, called on me frequent-
ly, and asked me to cancel the mortgage, and I
told them I wanted some money. However, I
was assured by Mr. Norelll, also by Mr. Dorf-
man, that if I would cancel that mortgage they
would pay me as soon as they got the first pay-
ment from the Building & Loan Association."
It was canceled on December 3d. On De-
cember 5th Mr. Butler, representing complain-
ant, hamded to Mr. Norelll, representing the
Latin-American Construction Company, a
check for $3,312.80. As soon as Mr. Grosso
heard of it, he went to Norelli's office, and,
on being told by Norelll that he was unable
to give the full amount, accepted a check,
dated December 7th, for $1,200, and took a
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1046
101 ATLANTIC REPORTER
(X.J.
deed to Mn. Larktn, antedated November
24tli, reconveylng the prt^erty, to secure the
babuice owing, $860. The money was not ap-
plied to the erection of the building, unless
the word ''building" be stretched to include
'^nd." All through the Mechanic's Uen
Act, "ItaaA" and "building" are contradistin-
guished. In the section under consideration,
I think the word "building" is used in its or-
dinary sense, and does not extend to the land
built upon.
[I] I will next consider the position of Mrs.
TiWrkln. Under the course of decision In this
state there can be no doubt but that lier
mortgage, being given to secure purchase
money, was prior to the mechanics' liens.
The real question Is whether she lost her lien
when she surrendered her mortgage for can-
cellaflon. She did so, unless her vendor's
lien continued. The law of this state is that
the giving of a mortgage for purchase mon-
ey Is a waiver of the vendor's lien. In the
note to the leading case of Macreath v. Sym-
rnoBB, 1 Lead. Cas. in Eq. 364 (3d Am. Ed.), it
Is said:
"The lien will be considered as waived when-
ever any distinct and independent security is
takeo', whetlier by mortgage on other laud, or
pledge of goods, or personal responsibUity of a
third person, and also when a security is taken
upon the land, either for the whole or a part
of the unpaid purchase money, unless there is
an express agreement that the implied lien aliall
be retained."
Mr. Pomeroy (Eq. Jnr. vdL 3, i 1252) says
"The securities which ordinarily produce this
effect are the grantee's mortgage on the very
land conveyed," etc.
In Acton V. Waddlngton, 46 N. J. Eq. 19,
18 AU. 356, affirmed 46 N. J. Eq. 611, 22 Aa
66, Chancellor Runyon said:
"The lien will be considered as waived when-
ever any distinct and independent security is
taken, such as a mortgage on the land, or pledge
of things, or personal responsibility of third
persons, and the like."
[7, 1] Such being the rule of law, when
Mrs. Larkin took her mortgage for the price,
she lost her vendor's lien, and what we have
to deal with is the mortgage lien, and not
the vendor's lien. Now, Mrs. Larkin, at the
solicitation of Dorfman or the Construction
Company, surrendered this lien. In order that
the lien of complainant's mortgage might at-
tadi upon the land as a first lien. She did
so, as far as appears, without reservation or
limitation, and without stipulating for any
other lien. Mr. Grosso was content to rely
upon the representations that Dorfman, No-
relll, and their attorney, Mr. Giordano, made
to him. He says:
"I was assured by Mr. Norelli and their at-
torney, Mr. Giordano, that, if I would cancel
that mortgage, they would pay me as soon as
they ^ot the first payment from the Building
Association."
The mortgage having been surrendered
and canceled, it seems to me necessarily to
follow that existing liens upon the property
fastened themselves upon Uie mortgage es-
tate thus merged In the equity of redemp-
tion. If complainant's lien attached, so did
the others. No subsequent act of the parties
could revive the mortgage lien of Mrs. Lar-
kin, so as to give it precedence. T*e ante-
dating of the deed could not have that ef-
fect, for a deed takes effect from delivery,
and the delivery, as averred In the answer
and shown by the evidence, took place when
the note for $860 was given (December 7th).
I reluctantly conclude that Mrs. Larkln's
security by way of deed must give way. In
point of priority, not only to complainant's
mortgage, but to Dorfman's and to the me-
chanics' liens. The Amorose mortgage was
not proved.
I next take up the Waldemar Dorfman
mortgagfe Counsel for Waldemar Dorfman's
representatives has prepared a statemott
claiming that payments amounting to $4,401.-
61, made on Its security, went into the erec-
tion of the building. Other payments,
amounting to about $475, went, he admits, to
the partners, and cannot be traced Into the
building. If these figures are not accepted
as correct by other counsel, there vrlll have
to be a reference to a special master to state
an account
[9] As to the payments for freight and
those made to the watchman, the case of
Davis V. Mial, 86 N. J. Law, 167, 90 AtL
315, controls. If a watchman was reasona-
bly necessary for the protection of the build-
ing daring construction the money paid fw
his wages went Into the erection. The sal-
aries paid Norelli and Scrocco, so far as
they were comi)ensatlon for work done on
the building, will be allowed.
The lien claim of Del a Fera was reduced
to Judgment In a suit at law In the Essex
circuit court. In which Del a Fera was plain-
tiff, and David W. Dorfman, Clara H. Lar-
kin, Waldemar Dorfman, and Joseph E. Amo-
rose were defendants. The Judgment was
entered May 24, 1916, for $3,407.44. It ad-
Judges that the lien claim is prior to the
mortgages held by defendants Dorfman and
Amorose. This Judgment, being subsequent
to the alleged waiver of priority, must «»-
trol.
The Latin-American Construction Compa-
ny's lien claim Is based upon the assump-
tion that the contract with Kelly was valid.
As against the lien claimants, I have found
that it was not That company must there-
fore be postponed to the mechanic's lien
claimants who have appeared and proved
their claims. I do not find in the briefs that
the lien claims of Amorose and Katchen &
Rabinovltz are disputed. They and any oth-
er undisputed claims will be concurrent liens,
payable in accordance with section 28 of the
Mechanic's Lien Act
[10] Probably when the property comes to
be sold — and perhaps it may be desirable to
sell at once — other equities, dependent upon
the amount the property may bring, will
have to be adjosted. Waldemar Dorfman's
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I^EHIOH VALLKT TRUST CO. ▼. STRAUSS
1047
mortgage Is or may be good for tbe whole
amount against David Dortman. Tbe sta-
ttu of tbe Construction Oxnpany's claim
against Dorfman may be different from its
status as against tbe lloi claimants. It Is
stated tbat tbere is a suit pending on tbis
claim. If 80, it ougbt to be prosecuted to
Judgment The question of tbe amount Dorf-
man owes tbe company, and on wbat basis
be owes it, Is a legal one. Tbe law courts
will determine whether there is a lien, and
bow much, lien or no lien, is owing; but
tbe pendency of tbis suit ougbt not to delay
the sale.
If a reference be necessary, tbe master will
report upon tbe various claims on tbe prin-
ciple here laid down, and upon any inciden-
tal Questions tbat may arise in tbe course of
tbis very complicated litigation.
(2U Pa. 383)
LEHIGH VALLEY TRUST CO. t.
STRAUSS.
(Supreme Court of Pennsylvania. May 22,
1917.)
1. Appeal and Ekbob <g=)731(2) — Assiow-
KENTS OF Ebror— Sufficiency.
Astagnments of error as to the findings of
fact and of law by the trial judge and as to
his answers to requests for findings not showing
an exception to the findings of wnich complaint
is made are defective.
2. Appeal and Ebbob ®=>733— Assignments
or Ebbob— SuFnciENcy.
An assignment of error to an interlocutory
judgment, merely directing judgment to be en-
tered if no exceptions were filed within 30 days,
showing no exception to the order, was defective.
3. Apfeai. and Ebbob ®s>73S— Assign uents
OF KbBOB— SUFFICIXNCT.
An assignment ,o{ error to the final order of
tbe court dismissing plaintiff's exceptions to tbe
findings and conclosionti, not setting out such
exceptions, was defective and not self-sustaining.
4. Appeal and Ij^bob «s>733— Asbionmentb
OF ESerob— SurrioiENOY.
An assignment of error, complaining of
error in entering judgment against plaintiff and
in favor of defendant for costs without (luoting
the judgment verbatim, was defective.
5. Bills and Notes €=>242 — IIelation of
PABT1E8— OKIOINAL PBOMIBOB OB SUBETY.
Where decedent and defendant signed an
agreement that in cbntrideration of the discount-
ing or purchasing of certain notes they would
pay the notes at maturity, or on their renewals,
and decedent deposited stock of his own as col-
lateral security which was sold and the debt
paid off from tbe proceeds 9nd the evidence
showed that the loan was in fact made to tbe
decedent, the decedent was the real debtor, and
not merely a cosurety with defendant.
6. Principal and Sdsety ®=t>194(4)— Bights
BETWEEN SDBETIES— CoNTBIBUTIOJf.
A cosurety cannot be called upon for a con-
tribution for the benefit of the other surety if
be agreed to become cosurety at the request
and for the benefit of the other surety.
Appeal from Court of Ccnnmon Pleas, Le-
high County.
Assumpsit by tbe I«blgb Valley. Trust
Company, admijsistrator d. U n, c. t. a. of tbe
estate of David R. Kline, deceased, succeed-
ing Frank Jacobs, executor, against Martin
H. Strauss, to enforce contribution by a co-
surety. Judgment for defendant, exceptions
to findings of fact and conclusions of law
dismissed, and plaintiff appeals. Affirmed.
Argued before BROWN, C. J., and MES-
TREZAT, POTTER, FRAZEB, and WAL-
LING, 33.
M. P. Sbantz and Bntz ft Rupp, all of
Allentown, for appellant. Fred B. Gernerd,
of Allentown, for appellee.
POTTER, J. [1] Of the 22 assignments of
error filed in this case, the first 19 are to
various findings of fact and of law by the
trial judge, and to bis answers to requests
for findings. Not one of tbe assslgnments
shows an exception to the finding of which
complaint is made; therefore they are all de-
fective. Streng v. Buck Run Coal Co., 241
Pa. 560, 88 Atl. 796; Brown v. Hughes, 244
Pa. 397, 90 AU. 651 ; Scull's Est, 249 Pa. 57.
94 AU. 470.
[2] Tbe twentieth assignment is to an in-
terlocutory order of tbe trial judge, which
merely directs judgment to be entered, if no
exceptions are filed within 30 days, and tbe
record shows tbat exceptions were filed. The
assignment shows no exception to tbe order
of which complaint is made.
[3] The twenty-first assignment la to tbe
final order of the court dismissing plaintiff's
exceptions to tbe findings and conclusions of
tbe Judge. But these exceptions are not set
oat in the assignment, and it is therefore de-
fective and not self-sustaining. Prenatt ▼.
Messenger Printing Co., 241 Pa. 267, 88 AtL
430.
[4] The twenty-second assignment raises
the question whether there was error in en-
tering judgment against the plaintiff and in
favor of the defendant for costs. But tbe as-
signment should have quoted tbe judgment
verbatim.
[9] Tbe action was assumpsit, brought by
the executor of E>avld R. KUne against Mar-
tin H. Strauss, to enforce an alleged right to
contribution. The claim was based upon
a paper dated May 27, 1908, addressed to the
Citizens' Deposit & Trust Company of Allen-
town, signed by tbe defendant Martin H.
Strauss, and by David R. Kline, In which
they agreed that, in consideration of the dis-
counting or purchasing of certain notes of
the Lehigh Tungsten Mining ft Milling Com-
pany, In tbe total sum of $5,000, they would
pay said notes, at maturity, or their renew-
als. On the same day, tbe trnst company did
purchase a note of the milling company for
$5,000, and at the time Kline turned over to
Fred H. Uchtenwalner, the. treasurer of tbe
trnst company, 133 shares, which be owned
of tbe capital stock of the trust company to
be held by Lichtenwalner individually, to se-
cure the payment of the note, or its renewal.
The note was renewed from time to time,
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1048
101 ATLANTIC REPORTER
(Pa.
antn on December S, 1912, after Kline's
deatb, a note for $4,750, payable 40 days aft-
er date, was given to tbe trust company by
tbe milling company, In renewal of the orig-
inal note, and made and Indorsed In the same
manner. When this note matured Kline's
stock in the tmst company, which was In
the hands of the treasurer, was sold, and tbe
note was paid out of the proceeds. This suit
was then brought by Kline's executor to re-
cover one-half of the amount paid in satisfac-
tion of the note. The case was tried without
a Jury, and the trial Judge found as a fact
that the transaction was a personal loan to
KUne by the trust company, and that he
placed his own stock in the hands of the
treasurer to be held In trust to secure pay-
ment of the loan, and that it was paid out of
the proceeds of the sale of that stock. The
trial Judge said:
"Nowhere does it appear that this was an ob-
ligation coming within tlie terms of the paper,
dated May 27, 1908; in fact it appears that this
was a personal obligation of decedent."
[I] Under the facts as found by tbe conit
below, Kline was the real debtor, and was
not merely a cosurety with Strauss, and it
was properly held that tbe doctrine of con-
tribution has no application. As between
himself and the trust company, Strauss was,
no doubt, liable, but there is no reason why
he should be called upon to respond for the
benefit of the person at whose request, evi-
dently, he agreed to become cosurety. As the
record stands it api>ears merely that the pro-
ceeds of Kline's property was applied to the
payment of his own debt That being the
case, there could, of course, be no recovery
here against the defendant
The assignments of error are overruled,
and the Judgment Is affirmed.
(268 Pa. 338)
PITTSBURGH & L. E. R. CX). ▼. CUNTON
IRON & STEEL CO.
(Sopreme Court of Pennsylvania. May 22,
1917.)
1. Cabbiebs ®=3l96— DEMTTBBAas— Aoenct of
Receiving Railboao— Suiticierct of Evi-
dence.
In an action by a railroad against a steel
company to recover demurrage charges on cars
delivered to the company, defended on the
ground that they were delivered to an independ-
ent railroad company on an interchange track
under an agreement with luch company, evi-
dence held to show that such railroad company
was either the agent or part of the plant equip-
ment bt the steel company, so as to render the
company liable for such charges.
2. Cabbiebs «s»196 — Dkmttbbaoe Chaboxb —
Reasonableness— Evidence.
In an action by a railroad for demurrage
charges of $1 per day on cars ddivered to a
steel company wherein tbe defendant denied tbe
reasonableness of such charges but offered no ev-
idence that they were unreasonable and where
the railroad submitted no proof of their reason-
ableness, it was not precluded from recovering,
where the reasonableness of such charges was
recognized by Act May 24, 1907 (P. L. 229).
Appeal from Court of Common Pleas, Alle-
gheny County.
Assumpsit to recover demurrage charges
by tbe Pittsburgh & Lake Erie Railroad
Company against the Clinton Iron & Steel
Company. From a Judgment on a directed
verdict for plaintiff, defendant appeals. Af-
firmed.
Tbe facts appear in the following opinion
by Evans, J., in the court of common pleas,
sur defendant's motion for a new trial and
for Judgment n. o. v.:
The plaintiff brought suit against tbe defend-
ant to recover demurrage charges on cars de-
livered loaded to the defendant and received
from tbe defendant loaded and unloaded, for the
tune the cars were detained by the defendant
over the free time allowed. The loaded cars
were placed by the railroad company upon what
was Icnown as an interchange track in the Point
Bridge Yard, and were taken by tbe South Shore
Railroad Company from the interchange track
to the track on which they were unloaded, and
returned by the South Shore Railroad Company
to the interchange track either loaded or un-
loaded. Originally the Clinton Iron & Steel
Company had switching tracks on the land of
the furnace company, and in 1892 the South
Shore Railroad Company was incorporated and
took over most of the switching tracks and en-
larged to some extent its trackage, all of which
was located upon the land of the Clinton Iron
& Steel Company, a part of which land was
leased by the steel company to the South Shore
Railroad Company. The equipment of the South
Shore Railroad Company consists of two locomo-
tives and six flat cars. The flat cars are used
exclusively in the plant of tbe Clinton Iron &
Steel Company. The South Shore Railroad
Company does all of the Clinton Iron & Steel
Company's intramill service, for which it makes
no charge. There is no means of access to the
South Shore Railroad by tbe general public, and
there is no work done or service performed by
the South Shore Railroad Company except in
connection with the Clinton Iron & Steel Com-
pany and another small allied works on the
same land and the Pittsburgh Sc Lake Erie Rail-
road Company and the "Pan Handle" Railroad
Company. It makes no reports to the Interstate
Commerce Commission, issues no bills of lading,
and in no way conforms to the requirements «^
the act of Congress regulating common carriers.
Its superintendent, who controls the operation
of the road, has also charge of the outside labor
of the Clinton Iron & Sted Company in connec-
tion with the unloading and loading of cars
shipped in and out and m the intramill service^
for which he receives no compensation from tbe
Clinton Iron & Steel Company. The employ^
of the South Shore Railroad Company and the
Clinton Iron & Steel Company are both paid at
the same time and place and by the same man.
The movement of cars made by the South Shore
Railroad Companv engines are noted on the con-
ductors' reports headed "Clinton Iron & Steel
Company." The stock of the Clinton Iron &
Steel Company during all this period was owned
as follows: F. N. Hoffstott 50 per cent.; J. W.
Friend 33% per cent.; O. W. Friend 8% per
cent ; and T. W. Friend 8% per cent C. W.
Friend and T. W. Friend were the sons of J.
W. Friend. The South Shore Railroad Company
during this entire period was owned in equal
shares by J. W. Friend and F. N. Hoffstott I
should qualify the ahove statement to this ex-
tent, that J. W. Friend died in 1909, since which
time his estate has owned the interest as above.
The plaintiff claims demurrage from April 1,
1907, to April 1, 1910, under the following tariff:
"Rule 1. (b) When cars are interchanged with
>Fu etlwr caM* w« na>» toplo and KXY-NUUBBK in all Kei-Numbared DIgMt* and Indazn
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MANTKIili ▼. JBCHABD
1049
minor raQroads or indoatrlal plants who perform
their own switdilng service and who are not
members of a car service association, they han-
dling cars for themselves or for other parties,
an allowance will be made for the time neces-
sary in their switching service in addition to the
regular time allowed for loading or unloading as
per paragraph (a), (which provides for forty-
«ight hours free time)."
"Cars interchanged with minor railroads, etc.,
are to be recorded as placed at the first 8 a. m.
after actual placement on interchange track
* * * the free time to be calculated from the
first 7 a. m. after the recorded placement.
"If can are delivered loaded and are unloaded
and reloaded and returned to interchange tracks
loaded, an additional forty-eight (48) hours for
loading will be allowed.
"All cars returned to interchange tracks by 4
p. m. are to be recorded as released at 6 p. m.
-of the previous day."
From April 1, 1910, through the remainder of
the time involved in this suit, tariffs were in ef-
fect fixing demurrage charges, providing as fol-
lows:
"Rule 3. — Computing Time. — (f) On cars to he
delivered on interchange tracks of industrial
plants performing thdr own switching service
time will be computed from the first 7 a. m.
following actual or constructive placement on
such interchange tracks until return thereto."
"Bule 4. — Notification. — (c) Delivery of cars
upon private or industrial interchange tracks, or
written notice to consignee of readiness to so de-
liver, will constitute notification thereof to con-
signee."
[I] There was no dispute as to the facts above
stated. The defendant claims that this case
should have gone to the jury for the reason that
the plaintiff in its statement of claim alleges
that the cars were delivered on the interchange
track under an agreement with the Clinton Iron
& Steel Company, and it was a disputed fact as
to whether there was such an agreement with
the Clinton Iron jb Steel Company. There was
DO dispute of the fact that the cars In question
were placed upon the interchange track and
taken from the interchange track by the South
Shore Railroad Company, and that this had
continued for a great many years, and whether
«r not this was done under an agreement with
the Clinton Iron & Steel Company would depend
upon the question whether the South Shore
Railroad Company in accepting the delivery of
the cars on the interchange track was the agent
of the Clinton Iron & Steel Company. In fact
every phase of this case, no matter how you view
it, raises the one question. Was the South
Shore Railroad Company an independent com-
mon carrier, or was it merely the agent or plant
equipment of the Clinton lion & Steel Com-
pany?
[2] Another question was raised by counsel on
the argument for motion for new trial, that the
reasonableness of the demurrage charges was de-
nied by the defendant in its aCBdavit of defense
and no evidence offered by the plaintiff as to the
reasonableness of those charges. The fact as to
the time the cars were detained over the free
time, and the number of cars so detained, are
not in dispute; they are admitted. The only
possible application which the denial of reason-
ableness could have to this case is that a dollar
a day was not a reasonable charge. T^e act of
May 24, 1907 (P. I.. 229), recognized the reason-
ableness of a dollar a day for demurrage charges
and 48 hours of free time, and in the absence of
any evidence on the part of the defendant that
this was not a reasonable charge, there was no
question to submit to the jury.
It appears to me that this case is identical
with the case of the Penna. R. R. Co. v. Jose-
phine Furnace & Coke Co., 247 Pa. 99, 93 Atl.
22, and in view of that conclusion, any extended
discussion of the law applicable to this case is
unnecessary.
Verdict for plaintiff for $1,931.45 by direc-
tion of the court and judgment thereon. De-
fendant appealed.
Argued before BROWN, C. J., and MBS-
TRBZAT, P0TTE3B, STEWART, and
MOSOHZrSKBB, JJ.
George H. Calvert, Donald Thompson,
George B, Berger, and William A. Wilson,
all of Pittsburgh, for appellant miomas Pat-
terson, of Pittsburgh, for appellee.
FEB CURIAM. This Judgment Is affirmed
on the opinion of the learned court below
overruling the defendant's motions for a new
trial and for judgment non obstante vere-
dicto.
(268 Pa. 3C6)
MANTELL T. BCHARD et aL
(Supreme Court of Pennsylvania. May 22,
1917.)
1. Appeal and Ebbob ^=>3(% — Findino —
Review.
In an action on a note, where, notwithstand-
ing strongly persuasive evidence tliat it was a
forgery, the jury found that it was not, and re-
turned a verdict for plaintiff, the Supreme
Court, on appeal, would not disturb the finding,
where no complaint was made of the court's
refusal to grant a new trial.
2. Evidence *=»374(1) — Aonon ow Note — '
Evidence.
In an action on a note, where the defense
was that the note was a forgery, it was admis-
sible in evidence, where its execution was testi-
fied to by a subscribing witness.
Appeal from Court of Common Pleas, Fay-
ette County.
Assumpsit on a note by Frank Mantell
against T. B. Echard and W. A. Bishop, exec-
utors of the last will of Alexander B. Mor-
ton, deceased. Verdict for plaintiff for |6,-
445, and judgment thereon, and defetadanta
appeaL Affirmed.
Argued before BROWN, C. J., and MES-
TREZAT, STEWART, FRAZBR, and WAL-
LING, JJ.
H. L. Robinson, of Unlontown, for appel-
lants. Charles A. Tult, of Unlontown, for
appellee.
PER CURIAM. [1] The defense in tbU
case was that Alexander B. Morton had not
signed the note upon whldi plaintiff brought
suit. It was admitted In evidence upon the
testimony of G. Mantello, that he had signed
It as a subscribing witness to Its execution
at the request of the decedent. In the face
of strongly persuasive evidence that the note
was a forgery, the jury found that It was
not; but on this appeal we cannot disturb
their finding, because no complaint is made
of the court's refusal to grant a new trial.
[2] The single assignment of error is to the
admission of the note In evidence. Under
Mantello's testimony, its execution by the de-
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1060
Va. ATIiANTIC RBPORTKB
(Pa.
ceased was for the Jnry, and to them the single
Issue was submitted as to the genuineness
of A. B. Morton's signature. In the light of
strong evidence submitted by the defense, fol-
lowed by a charge directing the attention of
the jury to It, the Terdict may well be regard-
ed as an untrue finding; but there is no as-
signment asking us to disturb it, and the
Judgment on it must therefore be affirmed.
Judgment affirmed.
(2Sg Pa. ST8)
ALEXANDER r. AMERICAN EXPRESS CX).
(Supreme Court of PennsylvaiiUu May 22,
1917.)
1. Municipal Cobfobationb *ss705(10)— In-
jury ON STREBT — CONTBIBUTORT NCQ!.!-
GKNCE.
A pedestrian attempting to cross a street
and wfio saw and avoided a motor truck, but
in doing so stepped backward in front of the
street car approacliinp^ from the opposite direc-
tion, and whidi be did not see, but could have
avoided had he looked, was guilty of contribu-
tory negligence.
2. MUHiciFAL Corporations «s»706(S)— Op-
BBA110N or Motor Truck— Nkquoence—
Etioencb.
In an action against the owner of an auto-
mobilj track to recover for the death of plain-
tifl*8 husband, who in avoiding it stepped in
front of a street car and was killed, evidence
held not to show that the truck was bemg driven
reddesely or at an excessive speed.
Appeal from Court of Common Pleas, Phil-
adelphia County.
Trespass by Eva Alexander against the
American Express Company, to recover dam-
ages for the death of plaintHTs husband.
Verdict for plaintiff for $3,500, and judg-
ment thereon, and defendant appeals. Re-
versed.
Argued before BROWN, a J., and MES-
TREZAT, POTTER, STEWART, and FRAZ-
ER, JJ.
John Lewis Evans and Thomas De Witt
Cuyler, both of Philadelphia, for appellant
William A. C&n, W. Horace Hepburn, and
Sidney L. Krauss, all of Philadelphia, for ap-
Iiellee.
POTTBHl, J. Charging that the death of
her husband was due to the negligence of a
chaufTeur In the employ of the defendant,
the plaintiff brought this action to recover
damages. It appears from the record that
on July 28, 1915, John Alexander, the hus-
band of plaintiff, was walking westwardly
on the south side of Spring Garden street
approaching Fifteenth street At the time
two vehicles on Fifteenth street were ap-
proaching the crossing from opposite direc-
tions. A south-bound trolley car was cross-
ing Spring Garden street and defendant's
motor truck was coming north. The testi-
mony shows that Alexander stepped from the
east curb of Fifteenth street to the crossing,
and walked westwardly over the trolley
track, and reached a point between the west
rail of the track and the curb. The testi-
mony is conflicting as to whether he stopped
and remained at this point for any appreci-
able length of time. At any event, defend-
ant's motor truck was then approaching,
moving northwardly on the left-hand side of
Fifteenth street. When it was some ten feet
south of the crossing, where he stood, Alex-
ander stepped backward directly In the path
of the south-bound trolley car, and was
struck by the right-hand comer of the fen-
der, fell under the car, and received the in-
juries which resulted in his death. Upon
the trial, the jury were Instructed, by the af-
firmance of points to which no objection was
made, that the defendant's chauffeur had, at
the time, the right to drive on the west side
of the street, where he was whm the accident
happened. Binding instructions in favor of
defendant were refused, and the case was
submitted to the jury, who found a verdict
in favor of plaintiff, upon which judgment
was duly entered. Defendant has appealed,
assigning for error the overruling of its mo-
tion for judgment non obstante veredicto.
[1 , 2] It must be remembered that the mo-
tor truck did not strike Alexander. The im-
mediate cause of his death was his own act
in stepping backward directly in the way of
the trolley car. The trial judge Instructed
the jury that there was no evidence In the
case that the motor truck was being drlvoi
recklessly or at an excessive rate of speed.
Alexander saw It approaching blm, so that
no further warning to him was necessary.
Had there been nothing in his way, whoa, he
stepped backward, It is likely that he wonld
have had no real cause of complaint against
the driver of the motw truck. He evidoitly
did not see or hear the trolley car, althongli
it was within plain sl^t, and almost within
touch. It is difficult to see in the evidence
anything from which negligence upon the
part of the chauffeur can fairly be Inferred.
He had his truck under control, and brought
it to a stop within a few feet; he did not
run against Mr. Alexander, and the infer-
ence that he would have done so had Alex-
ander remained standing where he was is
not justified. It Is quite as probable that he
would have been able to stop his machine or
turn it to one side. On the other hand, the
evidence of contributory negligence upon the
part of Alexander is dear. He paid no at-
tention to the approaching trolley car, but
stepped backward directly in its path. Had
he raised his eyes for an instant and looked
to the north, he would have seen the trolley
car, and common prudence would then hare
caused him to pass directly to the curb, or
if he thought the motor truck was too near
for that, he conld have taken a few steps di-
rectly to the north, and thus have avoided
contact with either motor truck or trolley
car. There was no occasion for him to st^
directly backward into the right-hand comer
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CORMAK ▼. TBAIKSR
Itel
of the fender of tbe car. Kotfalng but fail-
ure to observe Its presence can account for
Ma action tn that respect Tbe conclusion Is
Irresistible that failure to look for tbe ap-
proaching trolley car, with which he collided,
was the direct cause of the injury. Mr. Alex-
ander attempted to cross the street between
two Tehlclea, both in plain sight, approach-
ing from opposite directions, one of which
he saw and avoided, and one of which be evi-
dently did not see, but which he could readi-
ly have avoided, If he had looked at it, be-
fore stepping directly in its way.
The assignment of error is sustained, the
Judgment Is reversed, and is here entered
lor the defendant
(258 Pa. 362)
KORMAN et nx. ▼. TRAINER et aL
(Supreme Court of Pennsylvania. May 22,
1917.)
1. Vkmdob ahd Furchaseb iS=9l07 — CoN-
STBticnoN OF Contract— Tebminatioh by
PnaCHASEB.
Where an agreement for the sale of realty
covenants that the down deposit shall be forfeit-
ed to the vendor as liquidated damages in case
of the purchaser's default but does not clearly
grovide that the purchaser may terminate it by
is own default such effect will not be given
to it
2. Vendor and Pubchaseb €=9314(2)— Action
roB PuBCHASE Pbiob— Defenses.
In an action for the balance of the purchase
price due under a contract providing for the
payment of $200 at the signing of the agreement,
to be forfeited as liquidated damages upon the
purchaser's default in payment of the purchase
price, and for the payment of the balance at
the time of settlement within 30 days, such time
to be of the essence of the agreement, an affida-
vit of defense, alleging that the vendor had no
other remedy than the retention of the deposit
money, was insufficient
3. Vendob and Pcrchaseb ®=>314(2) — Ac-
tion FOB Purchase Price— Affidavit of
Defense— Time as Essence of Contract.
In sncb action, an affidavit of defense, alleg-
ing that as time was of the essence of the con-
tract, the contract was at an end upon the pur-
chaser's failure to pay the balance of the pur-
chase price and accept a deed, and that the ven-
dor had no other rights under the contract was
insufficient
Appeal from Court of Common Pleas, Phil-
adelphia County.
Assumpsit by Jacob Eorman and wife
against Joseph C. Trainer and John A. Train-
er, trading as Edward Trainer, to recover tbe
balance of the purchase price under an agree-
ment for the sale of realty. From a Judg-
ment for plaintiffs for want of a sufficient af-
fidavit of defense, defendants appeal. Af-
firmed.
Tbe facts appear from tbe following {pin-
ion by Shoemaker, J., in the common pleas:
In response to the request of the Supreme
Court, this opinion is filed, eiving the reasons
upon which the court entered judgment in this
ease.
This action was brought to recover tbe balance
of the purchase money claimed by plaintiffs to
be due to them by tbe defendants under an
fl^rpement for the sale of real estate.
By an agreement dated November 2, 1916,
plaintiffs covenanted to sell defendants two lots
situated in the city of Philadelphia, for the sum
of $3,000, to be paid, $200 at tbe signing of the
agreement, "which deposit shall be forfeited to
the said party of the first part" (the plaintiffs)
"as liquidated damages in case of the default by
the party of the second part" (the defendants)
"in the performance of this agreement, and the
balance of the purchase money as follows: $2,-
800 to be paid in cash at the time of settle-
ment." And the parties bound themselves, their
heirs, executors, and administrators for the
faithful performance of the agreement within 30
days from tbe date thereof. "Said time to be
the essence of this agreement"
The $200 was paid about November 2, 1916,
and on November 28, 1916, the defendants noti-
fied plaintiffs that they would not consummate
the purchase, and would refuse to accept plain-
tiffs' deed for the premises. On December 2,
1916, plaintiffs tendered to defendants a suffi-
cient deed in compliance with all the conditions
contained in said agreement, and demanded the
balance of the purchase money, which defend-
ants refused to accept or pay the purchase mon-
ey and continued so to do, although plaintiffs
were and are ready and willing to perform their
part of said agreement and tendered a deed of
the premises at the time the statement was filed.
The defendants in their affidavit of defense
averred that the lots mentioned in the agreement
were vacant and unimproved, and that the
clause in the agreement, which deposit shall be
forfeited to the said party of the first part
as liquidated damages in case of the default by
the party of the second part in the performance
of the terms of this agreement" limited the
plaintiffs' rights, so that they had "no other
remedy in law or equity than the retention of
the said $200 deposit money;" that the agree-
ment provided a remedy for the vendors in case
of breach which was meant to be exclusive, and,
time being the essence of the agreement, it was
at an end upon failure of vendees to pay the bal-
ance of the purchase money and refusal to ac-
cept the de^; the forfeiture was by way of
liquidated damages ; that tbe effect of said for-
feiture clause is a release and discharge of ven-
dees from any and all subsequent liability under
the agreement, and tbe large sum forfeited, $200,
showed such intention of the parties.
In support of a rule for judgment for want of
a suffident affidavit of defense, the plaintiffs
assigned the following reasons:
(1) "The clause relating to the forfeiture of
deposit is for the benefit of the plaintiffs' ven-
dor."
(2) "The plaintiffs have their choice of resort-
ing to the forfeiture clause or insist upon their
right to consummate the sale and receive the
purchase money from defendants."
(3) "The defendants, being in default, cannot
set up their own wrong to work a forfeiture of
their contract."
In our judgment, the questions raised by this
record have been determined by Cape May Reul
Estote Co. V. Henderson, 231 Pa. 82, 79 Atl.
982, and the long line of cases cited in tbe opin-
ion of Judge Porter, of the Superior Court, upon
which opinion the judgment was affirmed by the
Supreme Court
[I] It is settled by those cases that in a cove-
nant such as contained in the agreement in this
case, which does not provide by clear, precise,
and unequivocal language, that the purchaser
may terminote it by his own default, such effect
will not be given it The presumption is that
the forfeiture clause is for the benefit of the
grantor and enforceable at his election. With-
out such election and actions, the purchaser will
not be relieved from his obligation to pay.
[2,3] In Ruane's Est. 25 Pa. Dist R. 347,
the orphans' court of this county, in a case al-
4s>Por other nana ■•• aaoM topic and lUnr-NUlIBER in all Key-Numbered Dlsests and Indexes
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1052
101 ATI^NTIC REPORTBE
(Pa.
most identical witli the one at bar, followed
Cape May Real Estate Co. y. Henderson, 231
Pa. £Q, 79 AU. 982, and held the vendee's es-
tate liable, npon an agreement for the balance of
the purchase money.
The argument of the defendants' counsel that
the large amount of the deposit showed the in-
tention of the parties to restrict the vendors to
that sum is not convincing, and is not so plain
as to unavoidably sustain such a construction.
On the contrary, it is not an uncommon prac-
tice to require a deposit of the proportions made
in this case, as appears in Ruane's estate.
The lower court made absolute plalntUTs
rule for Judgment for want of a sufficient af-
fidavit of defense. Defendant appealed.
Argued before BROWi\, C. J., and MES-
TRBZAT, MOSCHZISKBR, FRAZER, and
WALLING, JJ.
Henry A. Hoefler, of Philadelphia, for ap-
pellants. Henry Arronson, Frederick J.
Shoyer, and Martin Feldman, all of Phila-
delphia, for appellees.
PER CURIAM. Under Cape May Real Ba-
tate Company v. Henderson, 231 Pa. 82, 79
Atl. 982, the affidavit of defense was proper-
ly regarded as insufficient by the learned
court below, and the Judgment Is therefore
affirmed.
(288 Pa. Stt)
In re HOFFMANN.
Appeal of COMMONWEALTH.
(Supreme Court of Pennsylvania. May 22,
1917.)
1. Insane Pebsons <S=s>(>3— Maintbnancb bt
COMUONWKALTH — KKIMBUBSEUBNT — STAT-
UTE.
Under Act June 1, 1915 (P. L. 661), author-
izing the commonwealth to collect the cost of
maintenance of persons in institutions support-
ed wholly or partly by the state, the amount
paid by the commonwealth for the maintenance
of a lunatic is not a mere gratuity, but ia based
on an implied contract on the part of the luna-
tic to reimburse those who have supplied his
necessities.
2. Insane Persons «=>70— Maintenance or
Lunatic — Claim.
The commonwealth's claim for support of
a lunatic in a state institution may properly be
asserted in proceedings before an auditor to dis-
tribute a balance in the hands of the lunatic's
guardian.
3. Insane Persons €=>63 — Maintenakcb —
Reimbursement — Statute.
Where the cost of maintaining a lunatic in
a state institution has been borne partly by the
commonwealth and partly by the county poor
district, and the district had been reimbursed in
full by the lunatic's guardian, and the fund
remaining in the hands of the guardian was
less than the amount paid by the commonwealth
for the lunatic's support, it should be awarded
to the commonwealth, and not to the poor dis-
trict under AcU June 13, 1836 (P. L. 548), i
33. and May 24, 1887 (P. L. 202).
Appeal from Court of Common Pleas, Erie
County.
From decree of the common pleas dismiss-
ing exceptions to the report of an auditor re-
fusing to allow its claim against a fund in
the hands of the guardian of Prank Hoff-
mann, a weak-minded person, and awarding
the balance to the poor district of Erie coun-
ty, the Commonwealth appeals. Reversed,
and balance of fund awarded to C<Humon-
wealth.
Argued before MESTREZAT, POTTER,
MOSCHZISKER, FRAZER, and WALLING,
JJ.
John Hyatt Naylor, Sp. Atty., of Norrls-
town, and Francis Shunk Brown, Attjr. Gen.,
for the Commonwealth.
FRAZER, J. The Commonwealth appeals
from a decree of the common pleas, dismiss-
ing exceptions to the report of an auditor,
refusing to allow Its claim against the fund
In the hands of the guardian of a weak-mind-
ed person.
Upon petition to the court of common pleas
of Erie county, Prank HoSmaan was adjudg-
ed a weak-minded person, and C. D. Higby,
Esq., appointed guardian, and, on April 30,
1906, Hoffmann was entered on the books of
the poor district of Erie county as a pauper
and committed to the state hospital for the
Insane at Warren, as an indigent i>atlent,
and has since that time been continuously
confined In that institution. During the pe-
riod covered by his confinement In the hospi-
tal, the poor district of Erie county paid to
the asylum toward his support the sum oC
$1.75 per week, and the commonwealth paid
a total sum of $1,092.07. The poor district
was reimbursed from time to time out of
funds coming Into the hands of the guardian,
so that, at the time o£ the audit, there was
a balance of only $37.25 due the district,
which sum the attorney for the common-
wealth agreed should be first paid out of th«
fund. In 1914 the guardian filed his first and
final account, showing a balance of $861.8S
in his hands for distribution. An auditor,
appointed to pass on claims and make dis-
tribution of the fund, rejected the common-
wealth's claim, and the conit, after dismiss-
ing exceptions, made absolute a rule on the
guardian to show cause why he should not
turn over the balance In his hands to the
poor district of Erie county, under the pr«>-
visions of the Acts of June 13, 1836 (P. L.
548) § 33, and May 24, 1887 (P. U 202) | 1.
authorizing the poor directors of any district,
upon which a pauper has become a charge,
to sue for and recover property of such
pauper, and take charge of the same and ap-
ply It to his maintenance, and upon his death
pay over the unexpended balance to bis legal
representatives.
[1] The act of June 1, 1916 (P. L. 661),
legislation of a c<mslderably later date than
the acts above referred to, authorizes the col-
lection by the commonwealth of the cost of
maintenance of persons In institutions sup-
ported In whole or part by the state, and em-
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105.?
powers the cotut of common pleas of the
county of the residence of any Inmate of a
state asylum, upon application of the Attor-
ney General, to mtike an order for the pay-
ment of maintenance against the trustee or
guardian In charge of the estate, or against
any person responsible for the support of
SQCh inmate. Section 6 gives the claims of
the commonwealth precedence over general
creditors in the distribution of the estate of
the person so maintained. Section 7 provides
that, where there are claims both on behalf
of the commonwealth and a county or poor
district, and the fimds are insufficient to pay
in full, such claims shall be paid pro rata.
The act also specifically applies to the col-
lection of olaims due at the time of Its pas-
sage, as well as those to become dae there-
after. Upon this latter provision, we held
In Arnold's ISst., 253 Pa. 517, 98 AU. 701, the
amount paid by the state for the support and
maintenance of a lunatic was not a mere
gratuity, but based on an Implied contract
on the part of the Inmate to reimburse those
who have supplied his necessities, and that
the implied obligation arose In favor of the
commonwealth, it having paid the cost of
maintenance, and not In favor of the hospi-
tal whose claim had been fully paid, and
there said (253 Pa. 521, 98 Atl. 702):
"If ani individual should pay the hospital for
the maintenance of a patient, such individual
would undoubtedly be entitled to reimbuieement
firom the lunatic's estate. In like manner and
for the same reason, in the present case, the
state is entitled to reimbursement. As we said
above, the hospital has been paid, and can have
no claim against the lunatic or his estate. If
there is an implied contract to repay the sums
expended for the lunatic's benefit, it is a con-
tract with the state, not with the hospital,
which had expended nothing except what it had
received from the county and state for that pur-
pose."
[2] The court below, beyond question, had
Jurisdiction under this legislation to make
the award, and the proper time and place to
present the commonwealth's claim was In the
proceedings to distribute the estate of the
Indigent i)erson.
[3] It was error, however, to award the
entire fund to the poor district, whose claim
had been paid In fulL The provisions of sec-
tion 6, above referred to, expressly contem-
plate the presenting of the commonwealth's
claim in proceedings to distribute the estate
of the person maintained, and by section 7
the claim of the poor district was placed on
an equality with that of the commonwealth.
In fact, the poor district in this case has no
cause to complain, as payment in full has
been made of its claim by consent of the
commonwealth, whereas, under section 7, it
Is entitled to share only pro rata in the fund.
The decree of the lower conrt is reversed,
and the balance of the fund In the hands of
the gnardlan, being less than the amount due
the commonwealth, is awarded to the com-
monwealth to reimburse It for money paid
for maintenance and support of Frank HofT-
mann.
MEMORANDUM DECISIONS
SMITH V. DOTEN. (Supreme Judicial
Court of Maine. July 21, 1917.) On Motion
from Supreme Judicial C!ourt, Androscoggin
County, at Law. Action by Winnie B. Smith
against Ellen B. Doten. Verdict for plaintiff,
and defendant moves for a new trial. Motion
overruled. Argued before CORNISH, C. J.,
and SPEAB, KING. BIRD, HANSON, and
MADIGAN, JJ. McGillicuddy & Morev, of
Lewiston, for plaintiff. Newell & Woodaide, of
Lewiston, for defendant.
PER CrURIAM. This is an action to recover
damages for alleged fraudulent representations
in the sale of a farm and certain personal prop-
erty thereon located in South Lewiston. Toe
jury returned a verdict for the plaintiff in the
sum of $1,000. The case is before the court on
the defendant's general motion for a new trial.
The evidence discloses many details as to the
acreage, use and former occupation of the farm
in question, the location of its several parts,
the amount of hay cut in previous years, the
taxes, and the conferences leading up to the
sale, further reference to which is unnecessary.
It is sufficient to say that a careful reading of
the evidence discloses no error in the finding of
the jury. The case presented questions to the
jury peculiarly within the scope of their duty,
and they had the opportunity to see the wit-
nesses and weigh their testimony, and consider
its value. No reason appears to justify dis-
turbing the verdict. Motion overruled.
COONEY V. RCSHMORE et al (No. 117.)
(Court of Errors and Appeals of New Jersey.
June 18, 1917.) Appeal from Supreme Court.
Petition under the Workmen's Compensation
Act by Michael J. CJooney against Samuel W.
Rushmore and others. Petition dismissed, and
petitioner brought certiorari to the Supreme
Court, where order and judgment were set aside
(see 100 A. 692), and defendants appeal. Af-
firmed. Kalisch & Kalisch, of Newark, for ap-
pellants. Fort & Fort, of Newark, for appeUee.
PER CURIAM. The judgment under review
herein should be affirmed, for the reasons ex-
pressed in the opinion delivered by Mr. Jus-
tice Bergen in the Supreme Court.
DURKIN V. BOARD OF FIRE COM'RS
OF CITY OF NEWARK. (No. 107.) (Court
of Errors and Appeals of New Jersey. Jiue
18, 1017.) Appeal from Supreme Court. Sen-
arate proceedings in certiorari by Michael J.
Durkin and others against the Board of Fire
Commissioners of the City of Newark. The
cases were consolidated and argued together.
Writs dismissed (89 N. J. Law, 468, 99 Atl.
432), and plaintiff named appeals. Affirmed.
Frank E. Braduer, of Newark, for appellant.
Harry Kalisch, of Newark, for appellee.
PER CURIAM. The judgment under review
herein should be affirmed, for the reasons ex-
pressed in the opinion delivered by Mr. Justice
Kalisch in the Supreme Court.
FARNUM et al. v. PENNSYLVANIA COM-
PANY FOR INSURANCE ON LIVES. ETC.
(No. 1S9.) (Court of Errors and Appeals of New
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1054
101 ATLANTIC REPORTER
(N.J.
Jentj. July 13, 19170 Appeal from Conrt of
Chancery. Suit by J. Edward Farnum and
others, administrators c. t. a. of Paul Famutn,
against the Pennsylvania Company for Insur-
ance on Lives and Granting Annuities. From
a decree of the Chancery Court (99 Atl. 145),
for complainants, defendant appeals. Affirmed.
Grey & Archer, of Camden, for appellant. Mc-
Dermott & Enright of Jersey Ci^, for appel-
lees.
PER CURIAM, ^nie decree appealed from
will be affirmed, for the reasons stated in the
opinion tiled in the court below by Vice Chan-
cellor Backes.
FENNAN T. ATLANTIO CITY et al. Wo.
6.) (Court of Errors and Appeals of New Jer-
sey. July 19, 1917.) Ap'val from Supreme
Court. William H. Fennan was convicted^ of
violations of an ordinance of Atlantic City.
From a judgment of the Supreme Court, ad^in
ins judgment of conviction (see 97 AtL ISO),
defendant appeals. Affirmed. Bnrgeois & Coul-
omb, of Atlantic City, for appellant Harry
Wootton, of Atlantic City, for appellees.
PER CURIAM. The judgment under review
herein should be affirmed, for the reasons ex-
pressed in the opinion delivered by Mr. Justice
Garrison in the Supreme Court,
FENNAN T. ATIiANTIC CITY et al, (No.
7.) (Court of Errors and Appeals of New Jer-
sey. July 19, 1917.) Appeal from Supreme
Court. William H. Fennan was convicted of
violations of an ordinance of Atlantic City.
From a judgment of the Supreme Court, affirm-
ing judgment of conviction (see 97 Atl. 160),
dKendant appeals. Affirmed. Bourgeois & Coul-
omb, of Atlantic City, for appellant Harry
Wootton, of Atlantic City, for appellees.
PER CURIAM. The judgment under review
herein should be affirmed, for the reasons ex-
pressed in the opinion delivered by Mr. Jus-
tice Garrison in the Supreme Court
FENNAN V. ATLANTIC CITY et al. (No.
8.) (Court of Errors and Appeals of New Jer-
sey. July 19, 1917.) Appeal from Supreme
Court. William H. Fennan was convicted of
violations of an ordinance of Atlantic City.
From a judgment of the Supreme Court affirm-
ing judgment of conviction (see 97 Atl. 150),
defendant appeals. Affirmed. Bourgeois & Coul-
omb, of Atlantic City, for appellant. Harry
Wootton, of Atlantic City, for appellees.
PER CURIAM. The judgment under review
herein should be affirmed, for the reasons ex-
pressed in the opinion delivered by Mr. Justice
Garrison in the Supreme Court
FENNAN V. ATLANTIC CITY et al. (No.
9.) (Court of Errors and Appeals of New Jer-
sey. July 19, 1917.) Appeal from Supreme
Court. William n. Fennan was convicted of
violations of an ordinance of Atlantic City.
From a judgment of the Supreme Court, affirm-
ing judgment of conviction (see 97 AtL 150),
defendant appeals. Affirmed. Bourgecda Sl
Coulomb, of Atlantic City, for appellant. Har>
ry Wootton, of Atlantic City, for appellees.
PER CURIAM. The judgment under review
herein should be affirmed, tor the reasons ex-
pressed in the opinion delivered by Mr. Jus-
tice Garrison in the Supreme Court
FENNAN V. ATLANTIC CITY et aL Qfo.
10.) (Court <^ Errors and Appeals of New Jer-
sey. July 19, 1917.) Appeal from Supreme
Court William H. Fennan was convicted of
violations of an ordinance of Atlantic City.
From judgment of the Supreme Court affirming
judgment of conviction (see 97 Atl. 150), defend-
ant, appeals. Affirmed. Bourgeois & Coulomb,
of Atlantic City, for appellant. Harry Wootton,
of Atlantic City, for appellees.
PER CURIAM. The judgment under review
herein should be affirmed, for the reasons ex-
pressed in the opinion delivered by Mr. Justice
Garrison in the Supreme Court
GRANDI et aL V. BRUNBTTL (Court of
Errors and Appeals of New Jersey. April 9,
1917.) Appeal from Supreme Court Action by
Antonio Grandi and others against Nicola Bru-
netti. Judgment for plaintiffs was affirmed by
the Supreme Court, and defendant appeals. Af-
firmed. In the Supreme Court the following per
curiam was filed: "The reasons for appeal pre-
sent for our determination either matters of uct,
which are not brought before us for considera-
tion on a merely appellate proceeding, or matters
of law which have loag been settled in this state,
and settled adversely to the contention of ap-
pellant's counsel. The judgment under review
will be affirmed." Tliemistocles M. Ungaro, of
Newark, for appellant Oaetano M. Belfatto,
of Newark, for appellees.
PER CURIAM. The judgment under review
will be affirmed, for the reasons set fortli in the
opinion of the Supreme Court
MERKEL V. MERKEI* (No. IM.) (Coait
of Errors and Appeals of New Jers»r- June
18, 1917.) Appeal from Court of Chancery.
Bill by Florence I. Merkel against William
Merkel. From an order of the Chancery Court
(99 Atl. 9^), discharging a restraining order,
plaintiff appeals. Affirmed. Herbert C. Gilson
and William C. Gebhardt both of Jersey City,
for appellant Raymond, Mountain, Van Blq^
com & Marsh, of Newark, for appellee.
PER CURIAM. This is an appeal from an
order of the Court of Chancery, disiduiTgine a
restraining order that was in effect a prelim-
inary injunction. The categorical denial by the
defendant of the misrepresentation on whidi the
bill is founded would of itself justify the order
that has been appealed from. The fact that the
Vice Chancellor, upon weighing the evidence,
found for the respondent, clearly cannot weaken
the respondent's case. The correctness of the
Vice Chancellor's conclusions as to this is not
now under review, as it would be if the ap-
peal were from a decree made upon final heai^
ing. The order is affirmed.
NEW YORK, S. 4 W. R. CO. v. NEWBAK-
ER. (No. 76.) (Ctfurt of Errors and Appeals
of New Jersey. July 10, 1917.) Appeal from
Supreme Court Proceeding under the Work-
men's Compensation Act by Charles J. New-
bnker against the New York, Susquehanna A
Western Railroad Company, employer. From
a judgment of the Supreme Court, the employer
appeals. Reversed. George M. Shipman, of
Belvidere, and Collins & Corbin, of Jersey City,
for appellant William H. Morrow, of Belvi-
dere, for appellee.
PER CURIAM. The judgment under review
herein should be reversed, for the reasons ex-
pressed in the opini<»i delivered by Mr. Justice
Garrison in the case of George A. Rounsaville
V. Central Railroad CV>. of New Jersey, lOl Atl.
182, No. 81 of the November term, 1915, re-
cently decided in this court upon the authority
of the decision of the Supreme OMiii of th*
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MEMORANDUM DECISIONS
1055
United States In the caae of Erie Railroad Ca
▼. Winfield (opinion bv Mr. Justice Van Deran-
ter) 244 U. 8. 170, 37 Sup. Ct 556, 61 L. Ed.
1067.
STATE T. VREELAND. (No. 140.) (Court
of Errors and Appeals of New Jersey. June
18, 1917.) Error to Supreme CJourt. Harry A.
Vreeland was convicted of desertion and will-
ful refusal or neglect to provide for and main-
tain tiis wife and child. The conviction was
affirmed by the Supreme Court on appeal (99
Atl. 57), and defendant brings error. Affirmed.
John A. Hartpence, of Trenton, for plaintiff in
error. Martin P. Devlin, of Trent<»i, for the
State.
PER CURIAM. Hie judgment under review
herein should be affirmed, for the reasons ex-
preased in the opinion delivered by Mr. Justice
Trenchard in the Supreme Court.
SUBURBAN INV. CO. v. STATE BOARD
OF ASSESSORS. (CJourt of Errors and Ap-
peals of New Jersey. June 18, 1917.) Appeal
from Supreme Court. Certiorari by the Sub-
urban Investment Company against the State
Board of Assessors to review assessment of tax-
es. Writ dismissed in Supreme Court, and pros-
ecutor appeals. Judgment affirmed, writ dis-
missed, and action of Board of Assessors af-
firmed. Franklin W. Port, of Newarlt, for ap-
pellant Francis H. McGee, of Ttenton, and
Herbert Boggs, Asst Atty. Gen., for appellee.
PER CURIAM. The judgment is affirmed,
for the reasons stated in the following memo-
randum of the Supreme Court: "The Suburban
Water (Company was incorporated under the
laws of this state in 1912, and subsequently
dianged its name to the Suburban Investment
Company, the prosecutor in this pase. The facta
are fully set out in the per curiam opini(»i in
New Jersey Water Company against the same
defendants, decided at the present term. 88 N.
J. Law, 596, 97 Atl. 153. The prosecutor was
assessed $560.80 for state uses on $560,800,
amount of capital stoclt issued and outstand-
ing January 1, 1914, as reported by the prosecu-
tor. The only specific reason assigned by the
prosecutor for setting aside the assessment is
uat the state board of assessors made and levied
the tax upon the prosecutor under the provision
of chapter 185 of the Laws of 1896 and the
supplements thereto and amendments thereof,
instead of under the act of 1900, discussed in
the per curiam opinion above referred to. The
return made by the prosecutor to the state board
of assessors sets forth the amount of its capital
stock issued and outstanding on January 1,
1914, under section 3 of the Corporation Fran-
chise Act of April 18, 1884, as said section was
amended in 1906 (P. Ia p. 31) as above stated.
The prosecutor'a return reports that its business
is 'investment in and managing corporations,'
and that it is not engaged in manufacturing or
mining within this state. The situation of the
prosecutor on December 31. 1913, was that of
an inactive corporation holding no special fran-
chise. In harmony with the views expressed
in the per curiam opinion filed in No. ^5, the
tax was properly assessed in the present case.
The writ will be dismissed, and the action of
the state board of assessors affirmed, with costs."
THOMAS V. THOMAS. (No. 27.) (Court of
Errors and Appeals of New Jersey. June 18,
19170 Appeal from Court of Chancery. Action
by Creorgina W. Tliomas against William J.
"Aomas. Decree of the Court of Chancery, dis-
missing petition, advised by Advisory Master
Roe, and plaintiff appeals. Affirmed. John H.
Sheridan, of West Hoboken, for appellant. Wil-
liam C. Cudlipp, of Jersey City, for appellee.
PER CURIAM. From the testimony taken
before the advisory master we reach the same
conclusion that he did, viz. that the petition of
the appellant should be dismissed. The decree
of the Court of Chancery is affirmed.
WEST JERSEY TRUST CO. v. PHILA-
DELPHIA & R. RT. CO. (No. 72.) (Court
of Errors and Appeals of New Jersey. July
19, 1917.) Appeal from Supreme Court Pro-
ceeding under the Workmen's Ompensation Act
by the West Jersey Trust Company, adminis-
trator of Amos B. Calloway, deceased, against
the Philadelphia & Reading Railway Ciomnany.
From a judgment of the Supreme Court (»8 N,
J. Law, 102, 95 Atl. 753), reversing a judg-
ment denying compensation, defendant appeals.
Reversed. Edward L, Katsenbach, of Trenton,
for appellant Ott & Carr, of Camdoi, for ap-
pellee.
PER CURIAM. The judgment under review
herein should be reversed, for the reasons ^-
pressed in the opinion delivered by Mr. Justice
Garrison in the case of George A. Rounsaville
V. Central Railroad Co. of New Jersey, 101
Atl 182, No. 81 of the November term, 1916,
recently decided in this court, upon the author-
ity of the decision of the Supreme Cteurt of the
United States in the case of Erie Railroad Co.
V. Winfield (opinion by Mr. Justice Van De-
vanter) 244 U. S. 170, 37 Sup. Ct 566, 61 L.
Ed. 1057.
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