out giving him any notice of nonpayment, or demanding payment from Hood. Can Sibley recover?

44. Lindsey v. Stranahan, 129 Pa. State 635. - Stranahan had carried on business alone prior to 1876, when he sold a half interest in his business to J. K. Lindsey. After the new firm was formed, entire management and control of the business was left to Lindsey. When settlement by Stranahan and Lindsey was made, Lindsey claimed compensation for managing the business. No express agreement was made regarding this matter.

45. Drake v. Thyng, 37 Ark. 228. - Drake and Thyng were partners in the brickmaking business. While Drake was away, Thyng sold the stock and plant to a third party for an inadequate sum. Drake brought this action to set aside the sale.

46. Burchinell v. Koon, 8 Colo. App. 463; 46 Pac. Rep. 932. - In this case, the surviving member of a partnership obtained a loan, to secure which he gave a mortgage on firm property. The proceeds of the loan were used to pay firm debts. Did the surviving partner have power to give this mortgage?

47. Foley v. Manufacturers & Builders Fire Ins. Co., 152 N. Y. 131.In this case the question arose as to whether the plaintiffs had an insurable interest in certain buildings being erected on land owned by them. At the time of the fire the buildings were incomplete; they were being erected under a contract binding the contractors to furnish the materials and complete the buildings for a sum to be paid on their completion.

48. Getchell v. Biddeford Savings Bank, 94 Maine 452; 47 Atl. Rep. 895.- A man deposited his own money in a savings bank in his wife's name, and never delivered the bankbook to her. There was no evidence that the wife ever saw the bankbook or knew of the deposits. To whom did the money belong?

49. Dorsey v. Moore, 100 N. C. 41. - Defendant was tenant for her life of a tract of land and plaintiff was the remainderman. Defendant sold standing timber to Bennett and permitted him to cut and remove it. Plaintiff sued for damage for waste.

50. Kane v. Cortesy, 100 N. Y. 132. The plaintiff was the owner of a mortgage which was guaranteed by the defendant. When the time for the payment of the mortgage fell due, the plaintiff granted an extension of time to the mortgagor and the latter gave to the plaintiff a chattel mortgage on certain personal property as additional security. When the defendant was sued on the guaranty he claimed that the extension of time for paying the mortgage released him from his obligation under the guaranty.

IMPORTANT STATUTES

Interstate Commerce. The Constitution of the United States declares that the Congress shall have power "to regulate commerce with foreign nations, and among the several States." It is evidently for the benefit of the country as a whole that commerce between the states, called interstate commerce, should be regulated by the federal government, rather than be subjected to varying and inconsistent regulation by the different states. In accordance with the power granted by the Constitution, Congress has adopted several statutes which have a direct bearing on commercial life because of their regulation of interstate commerce.

Interstate Commerce Act. The most important of these regulatory statutes is the Interstate Commerce Act. By this Act was created the Interstate Commerce Commission, now composed of eleven commissioners sitting at Washington, D. C. This Commission is given wide powers and is charged with the execution of the provisions of the act.

The act, as amended at various dates, applies to common carriers engaged in the transportation of passengers or property from one state to another or to foreign countries, including pipe lines, telephone, telegraph and cable companies, railroads, express and sleeping car companies, etc.

The service and charges of common carriers must be just and reasonable under the circumstances. There can be no greater charge for a shorter than for a longer distance over the same line in the same direction, the shorter being included within the longer distance, except that such charges may be authorized by the Commission in special cases. All rates must be published, must be filed with the Commission, and kept open to public inspection. The Commission has power to revise rates and divisions of rates when unreasonable, to review all newly established rates, and, of its own motion, to establish new joint through routes and rates when necessary. Where there are two or more established through routes, the shipper has the right to designate in writing by which of such routes his goods shall be shipped.

All property for transportation must be classified, and rates, regulations, and practices established on the basis of such classification. It is unlawful for any railroad company to transport any commodity, other than timber and its manufactured products, manufactured, mined, or produced by it or which it owns or in which it has any interest, except such as may be intended for its use in the conduct of its business as a common carrier. The purpose of this provision was to attack the ownership of coal mines and lands by the railroad companies, by reason of which they had too great an influence on coal production and distribution.

This act contains many provisions to insure equal treatment for all persons using the railroads. The issuance of free passes is forbidden, except

to officers and employees of the issuing carrier or other common carriers. It is unlawful to discriminate unjustly between one shipper and another or between one passenger and another. It is unjust discrimination if the carrier, by any special rate, rebate, or other device, charges or receives a greater or less compensation from any person than it receives from any other person for doing like service under similar circumstances and conditions. Common carriers are forbidden to disclose any information about property shipped or routes of shipment, which might be used to the detriment or prejudice of a shipper or consignee, or might improperly disclose his business transactions to a competitor.

Removal or lessening of competition between carriers by agreements for pooling freights, or by dividing the earnings of such carriers, is expressly forbidden. While on its face this provision would appear to keep down freight rates and so benefit the public, its merit is doubtful. Under the federal administration of the railroads during the World War, the freight, earnings, expenses, and everything were pooled, in order to secure the greatest possible economy and efficiency.

The Commission has authority to inquire into the management of the business of all common carriers and to prescribe a uniform system of accounting. Annual reports are required from every carrier, showing in considerable detail all of its business during the year, and these enable the Commission to maintain careful supervision over the entire transportation of the country.

The Commission also investigates, either of its own motion or on complaints, anything done or omitted to be done in contravention of the act. In such investigations the Commission acts as a court, summons witnesses, tries issues of fact, grants orders, and may award damages if the facts warrant. Elkins Act. This act was passed to give added force to the provisions · of the Interstate Commerce Act in respect to giving or receiving rebates. It provides that any person or corporation giving or receiving any concession in respect to the transportation of property in interstate commerce, whereby such property by any device whatever is transported at a less rate than the published tariff, shall be guilty of a misdemeanor and punishable by a fine of not less than $1000, or more than $20,000, and individuals may be imprisoned.

Bills of Lading Act. - This act makes uniform the law and practice of issuing bills of lading for interstate commerce. It defines the "straight bill" and the "order bill" and fixes the law as to negotiation of bills of lading, the respective rights and duties of carriers and shippers as to delivery of goods, damage to goods, etc. The subject is not of sufficient general importance to warrant a detailed synopsis of the statute, but it should be consulted by any person regularly engaged in interstate shipment of goods.

Anti-Trust Laws. - To prevent undue advancement of prices and stifling of competition Congress has passed laws "to protect trade and commerce against unlawful restraint and monopolies." These laws have given

rise to some of the most important and bitterly contested litigation in our history.

Sherman Anti-Trust Act. This act was the first of the so-called "antitrust laws" and was adopted in 1890. It provides that "every contract, combination in the form of trust or otherwise, or conspiracy, in restraint of trade or commerce among the several states, or with foreign nations, is hereby declared to be illegal" and every person making such contract or engaging in such combination or conspiracy is guilty of a misdemeanor and punishable by fine or imprisonment. Also every person who shall monopolize, or conspire or combine to monopolize, any part of such trade or commerce is guilty of a misdemeanor. Any person injured in his business or property by reason of anything forbidden by the act, may sue the offending person or corporation therefor, and recover threefold the damages sustained by him.

Clayton Act. - This act was adopted in 1914 "to supplement existing laws against unlawful restraints and monopolies," and is much more farreaching and detailed in its provisions.

Under the act it is unlawful to discriminate in price between different purchasers of commodities, where the effect of such discrimination might be to substantially lessen competition or to create a monopoly; but there may be discrimination on account of grade, quantity, or quality, or to allow for differences in transportation or selling cost, or in different communities to meet competition; and any seller of goods may select his own customers in bona fide transactions and not in restraint of trade. It is unlawful to sell or lease goods, or to fix a price therefor or allow a discount from such price, on condition that the purchaser or lessee shall not deal in goods of a competitor of the seller, where the effect might be to substantially lessen competition or tend to create a monopoly. Threefold damages may be recovered as under the Sherman Act.

The labor of a human being is expressly declared not to be a commodity. or an article of commerce, and labor unions and similar organizations shall not be held or construed to be illegal combinations or conspiracy in restraint of trade under the anti-trust laws.

The act also forbids the acquisition by one corporation of all or part of the stock of one or more separate corporations, whereby competition between them may be lessened or commerce restrained or a monopoly created. This does not forbid the formation of subsidiary corporations to carry on the legitimate business, or extensions thereof, of the parent corporation.

"Interlocking directorates" are also prohibited, by provisions forbidding a person to be a director, officer, or employee of more than one bank of a cer tain kind, or a director of more than one corporation engaged in commerce, having a capital, surplus, and undivided profits of more than $1,000,000 if such corporations have been competitors, so that the lessening of competition between them by agreement would be a violation of the anti-trust laws. Trade Commission Act. This act was passed in 1914 for the purpose of preventing unfair competition in interstate and foreign commerce, and

generally to assist the commerce of the country by information and otherwise.

The act creates a Federal Trade Commission, composed of five commissioners, with its principal office in Washington. The Commission has power to compile information concerning, and to investigate the business practices and management of, any corporation engaged in commerce, except banks and common carriers, and its relations to other corporations and persons; to require from such corporations annual or special reports; to investigate the manner in which decrees of the courts in suits for violation of the anti-trust laws are being carried out; to investigate and report on alleged violations of such laws; to investigate and make recommendations for the readjustment of the business of any corporation alleged to be violating such laws, in order that the corporation may maintain its organization and conduct its business according to law; to make public such information as it may have obtained, except trade secrets, as it shall deem to the public interest; to make reports to Congress and recommendations for legislation; and to investigate and report upon trade conditions in and with foreign countries.

The act expressly declares that unfair methods of competition in commerce are illegal, empowers the Commission to prevent such unfair methods, and to that end authorizes hearings on complaints and the issuance of orders to cease the unfair methods.

Employers' Liability. Reference has been made in the chapter on Insurance to the fact that an employer may be liable for damages for the injury or death of his employee. In actions at common law to recover such damages the employer could defend on the ground that the employee's injury was caused by his own negligence (contributory negligence) or by the negligence of another employee (fellow servant doctrine), or that the employee had assumed the risk of the accident (assumption of risk). These doctrines often resulted in injustice to the injured employee. In recent years a number of statutes have been passed which rest on the theory that accidents to employees are necessary incidents to any business, and that the injured employee should be compensated for his injury without regard to technical defenses.

Federal Employers' Liability Act. This act provides that every common carrier by railroad engaged in interstate commerce shall be liable for the injury or death of an employee, caused by its negligence or any defect in its equipment or appliances. In any action to recover damages for such injury or death, assumption of risk is not a defense, and the contributory negligence of the employee shall not bar a recovery, but the damages shall be diminished in proportion to the amount of negligence attributable to the employee. Any contract, rule, or regulation by which the carrier seeks to exempt itself from liability under the act is void.

Workmen's Compensation Laws. - A number of states have passed laws providing for the payment by the employer of compensation for injury