MacMillan Co. v. Johnson
MacMillan Co. v. Johnson
Opinion of the Court
“An act to regulate the sale, exchange, and nse of school text-books within this slate.”
The sections of this act material to the present controversy are as follows:
“Section 1. No board of education or school official in any school district, in this state shall purchase, procure by exchange, adopt, or permit to be used in the schools of any such district any school text-hook which is not listed with the superintendent of public instruction as hereinafter provided. Any person, linn or corporation desiring to offer school text-hooks for adoption, sale, or exchange in the state of Michigan shall file with the superintendent of public instruction copies of all such text-books together with a sworn statement of (he usual list price, the lowest net wholesale price, and the lowest exchange price at which said, book is sold or exchanged for an old book on the same subject of like grade and kind but of a different series. No textbook shall bo listed by the superintendent of public instruction unless the person, firm, or corporation offering the same shall enter into a written contract with the superintendent of public instruction, acting on behalf of the state of Michigan and the school districts thereof, which said contract shall embrace the following terms and conditions:
“(a) That said person, firm, or corporation will furnish any of the books listed in said statement, and in any other statement subsequently filed by him, at any time within a period of one year after such filing, to any such district or any school corporation in the state of Michigan at the lowest price contained in said statement, and that said prices shall he maintained uniformly through the state.
“(b) That the prices, as set forth in said statement, shall be automatically reduced in the state of Michigan whenever reductions are made elsewhere in the United States, after January 1, 1918, so that at no time shall any book so filed and listed be sold or offered for sale by such person, firm, or corporation in the state of Michigan at higher net prices than are received for such book elsew'hcre in the United States, and regardless of whether such book is so sold or offered for sale elsewhere in accordance with the terms of a contract, or otherwise. * * *
“(f) .That the superintendent of public instruction may, if he ascertains at any time that any person, firm, or corporation listing books with him 41s herein provided is selling or offering for sale any such hook or hooks elsewhere in the United States at lower prices than those for which said book or books are sold or offered for sale in the state of Michigan, cancel ail filings on the part of any such person, firm, or corporation, and remove from the list hereafter referred to all books sold or offered for sale by such person, firm, or corporation: Provided, that nothing in this act shall be construed to disturb contracts entered into with school boards previous to January 1st, 1919. * * *
“Sec. 4. The superintendent of public instruction shall annually, and at such other time or times as he may deem expedient, publish and send to each hoard of education within the state a copy of all lists of school text-books then in force in his office showing the prices at which such books may be purchased. Any list so issued shall remain effective until superseded or can-celled. No school text-book shall be purchased, adopted, or used for or in the schools of any school district within the state unless the same is contained*30 in tbe list so put forth by tbe superintendent of public instruction and in effect at the time of the purchase, adoption, or exchange. In no ease shall any filing by any person, firm, or corporation become effective until the publication of a list by the superintendent of public instruction. * * *
“Sec. 7. It shall be unlawful for any retail dealer in text-books to sell any books listed with the superintendent of public instruction as hereinbefore provided at a price to exceed fifteen per'.cent, advance on the net wholesale price as so listed, and the cost of transportation. * * *
“Sec. 9. School districts are hereby authorized to purchase text-books from the publishers at the prices listed with the superintendent of public instruction as hereinbefore provided and to designate a retail dealer or dealers to act as the agent of the district in selling text-books to pupils. The said dealer or dealers shall at stated times make settlement with the district for such books as have been sold up to the stated time. Said dealer or dealers shall not sell text-books at a price which shall exceed a ten per cent, advance on the net wholesale price as listed with the superintendent of public instruction. * * *
“Sec. 11. Any school official or member of any school board or other person violating or knowingly permitting or consenting to any violation of the provisions of this act shall be deemed to be guilty of a misdemeanor and on conviction shall be punished by a fine not exceeding five hundred dollars, or by imprisonment in the county jail not exceeding three months,- or both such fine and imprisonment in the discretion of the court.”
Plaintiff is a New York corporation, engaged in publishing in New York, and selling in, and shipping to, Michigan and other states, to school boards, book dealers, and the general public, school text-books and other books. It files this bill against the defendant, as superintendent of public instruction of Michigan, to restrain him from taking any steps to enforce the statute just mentioned, which it alleges is unconstitutional on grounds which may be conveniently grouped as follows:
(1) That the statute prevents plaintiff from selling in, or shipping to, Michigan its schoolbooks, except at prices which would causé it such tremendous loss that it would not undertake to do so, and that therefore the enforcement of such act would deprive plaintiff of its property without due process of law, in contravention of the Fourteenth Amendment;
(2) That the act attempts to regulate interstate commerce, by regulating the prices of books shipped into Michigan in such commerce, and is for that reason unconstitutional; and
(3) That the statute discriminates in favor of dealers in schoolbooks for use in the public schools of Michigan against various other dealers in books, and that therefore it denies plaintiff the equal protection of the laws.
Obviously, it was the intent and purpose of the Michigan Legislature, in enacting this law, to regulate the method of the selection and
“No board of education, or school official in any school district in this state shall purchase, procure, buy, exchange, adopt, or permit to be used in the schools of any such district any school text-book which is not listed with, the superintendent of public instruction as hereinafter provided.”
There is a sentence in the first section of this statute which, standing alone, might seem to go beyond the purpose and proper scope of the statute, and, if so construed, to be invalid. It will be noted that the second sentence of section 1 provides as follows :
“Any person, firm or corporation deniring to offer school text-books for adoption, sale, or exchange in the .stave oí Biichigan shall file with the superintendent of public instruction copies oí all so eh text-books, together with a*32 sworn statement of the usual list price, the lowest net wholesale price, and the lowest exchange price at which said book is sold or exchanged for an old book on the same subject of like grade and kind but of a different series.”
This sentence, however, must be read and construed in connection with its context, the preceding, and the following, sentence, these three sentences comprising the entire section. When so construed and considered it is apparent that the provision requiring the filing of .this sworn satement with the superintendent of public instruction was intended, and must be interpreted, to apply only to persons desiring to sell text-books to the public school officials referred to in the preceding sentence, and that the filing of such statement, with copies of such text-books, is merely a step in the listing provided for by said first sentence as a prerequisite to the sale to such officials and therein required to be made “as hereinafter provided.” Being so limited and thus construed, the provision just quoted is not open to the objection urged against it and the latter is overruled.
Section 7 of the act is as follows:
"It shall be unlawful for any retail dealer in text-books to sell any books listed with the superintendent of public instruction as hereinbefore provided at a price to exeeed fifteen per cent, advance on the net wholesale price as so listed, and the cost of transportation.”
The language of this whole section is so broad as to prohibit all sales of the school text-books mentioned without complying with the provisions of the act, whether the sale be to school officials or to the general public, and whether or not the dealer be an agent of a school district. This language has no proper relation to the object and subject-matter of the statute as a whole or to the source of the power of the .Legislature to enact it. This section must be construed according to its plain terms, and, so construed, is an unwarranted interference with freedom of contract and with the right to engage in the private business of bookselling at retail, and as the extent of the sales of plaintiff to retail dealers depends on the right of the latter to resell, the effect of such section would be to deprive the plaintiff of its property without due process of law. Section 7 is therefore unconstitutional and void.
A decree will be entered declaring section 7 of the statute involved void, and all other portions of such statute valid, and granting and denying the relief prayed accordingly.
Reference
- Full Case Name
- MACMILLAN CO. v. JOHNSON, State Superintendent of Public Instruction
- Cited By
- 1 case
- Status
- Published