October 25, 1915. 



In both lumber producing and lumber using industries, ;is well as 

 in other lines of business, there is an increasing tendency on the part 

 of highly trained emjiloyes to demand some definite form of employ- 

 ment contract, especially securing themselves against discharge for 

 a stated period. And, on the other hand, an employer frequently 

 finds it advantageous to bind a valued employe for a certain time. 



A contract of employment presents many interesting, as well as 

 important, legal aspects which should be mutually understood. 



The terms of an engagement having been agreed upon, the question 

 ■arises: Must the contract be reduced to writing? Yes, unless the 

 term of employment is to end within one year from the making of 

 the contract, or unless the hiring is for an indefinite period. In 

 nearly every state there is in force a law which declares, in effect, 

 that no suit shall be brought upon any oral agi'eement that is not 

 to be performed within the space of one year from the making thereof, 

 and this statute has been frequently applied by the courts to em- 

 ployment contracts. 



Laws of the state governing employment become a part of every 

 agreement for hiring, regardless of whether they are mentioned in the 

 contract or not, or arc even known to the parties; and any provision 

 •of the contract is void if it violates an express statute. Examples 

 on this point are afforded by statutes which forbid Sunday labor 

 or limit the hours employes may work. 



An important principle go\erning employment contracts, as well 

 as agreements in general, is that neither party to a written contract 

 will be permitted to contradict its terms by showing an oral agree- 

 ment at variance with its express conditions. But verbal agree- 

 ments may be shown on points as to which the writing is silent. 



To be enforceable, the contract must be definite in its terms. Thus 

 contracts have been held to be invalid where they failed to show 

 what position the employe was to fill or what salary he should 

 receive. The agreement need not specify the duration of the con- 

 tract, but if it does not it will be terminable at the will of either 

 party. 



The question frequently arises whether a company is bound by a 

 contract of employment made by one of its representatives. The 

 answer is made by the law to turn upon the question whether the 

 representative had implied or express authority to make the contract. 

 The manager of a manufacturing company is clearly vested with 

 implied power to bind the company by any reasonable contract of 

 employment, in the absence of express limitation upon his authority. 



In the absence of agreement to the contrary, an employe's right 

 to salary for the full contract period is not defeated by his em- 

 ployer's retirement from business, through dissolution of the firm, 

 insolvency or sale of the business. But, of course, if the employe 

 continues in the service of the successor to the business, waiver of 

 further claim against the old firm may be inferred. 



Unless the contract is to run for a fixed time, an employe may 

 quit whenever he chooses, with or without reason, and the employer 

 ha^ the reciprocal right of discharging him at any time without 

 assigning any reason. So the West Virginia supreme court of appeals 

 decided that employment at a monthly or annual salary, if no definite 

 period is otherwise stated, is presumed to be a hiring at will, which 

 either party may terminate at his pleasure. EmplojTiient at a speci- 

 fied rate per year is not an engagement for a year, but merely at 

 will. 



As lately declared by the New Jersey and New York supreme courts, 

 an employment contract for a definite period may be continued for a 

 like period by acts indicative of intent to that effect. 



"Where right is reserved to discharge an employe on certain notice, 

 the employer is liable for salary accruing during that period on 

 summarily dismissing the employe. 



A manufacturing company, in engaging the services of any person 

 who applies for a responsible position is entitltd to assume that he 

 possesses sufficient qualifications to fill that position efficiently, and 

 would clearly be entitled to discharge him for incompetency after- 

 wards discovered. In other words, an employe impliedly warrant? 



that he is reasonably competent to discharge the duties of a position 

 which he accepts. 



Any disloyal or insubordinate act will, of course, justify a dis- 

 charge. It has even been held by the United States circuit court of 

 appeals that the employer need not await commission of an unfaith- 

 ful act; that any conduct evidencing an unfaithful disposition is 

 sufficient. But rudeness provoked by the employer will not excuse 

 a discharge. 



As a general rule, the damages recoverable against an employer 

 for unjustified dismissal of an employe before expiration of the 

 period of hiring is the amount of wages or salary which the latter 

 would have earned under the contract during the unexpired period, 

 less what he earned elsewhere after his discharge, or could have 

 earned in the same line of work had he used ordinary diligence to 

 secure a new position. An employe, although wrongfully dismissed, 

 cannot remain unnecessarily idle and recover full salary as the meas- 

 ure of his damages. He is entitled, however, to allowance for any 

 reasonable expense incurred in securing new employment. And he is 

 not required to avail himself of an opportunity to obtain another 

 and less remunerative line of employment. 



If the employe breaks his part of the contract by quitting before 

 the end of the term, without justification, he is liable for damages 

 sustained by the employer in consequence, and the latter is entitled 

 to retain sufficient funds due the employe as salary to cover the 

 amount of such damages. 



To Make Use of Hardwood Ashes 



The manufacturers of hemlock and hardwoods in Wisconsin and 

 upper Michigan through the Northern Hemlock and Hardwood Man- 

 ufacturers' Association have under consideration a plan, looking to- 

 ward the conservation of a product which has heretofore been a 

 waste. 



It is planned to have established in this state a plant or plants 

 for the transformation of hardwood ashes into fertilizer. Hardwood 

 ashes are rich in potash, which is one of the recognized forms of 

 fertilizer. An investigation is now being made of the feasibility of 

 having a central plant, located at some convenient place, to which 

 hardwood ashes can be transported in carload lots and transformed 

 by a chemical process into commercial potash. 



The suggestion has been made that the cost of freight on the ashes 

 may be too great to make that plan feasible. That is one of the 

 matters to be investigated. If it is proved that such is the case, unit 

 plants on flat tars may be provided. These plants will be taken to 

 the various places where hardwood ashes are available and the first 

 process of reduction performed there. Then the crude form of potash 

 may be transported to a central plant for re&ning to be placed on 

 the market. 



The use of potash for fertilizing purposes is said to be accepted 

 more and more generally. In the eastern states, where much attention 

 is given to the subject, potash is very popular. In Wisconsin and 

 Michigan potash is becoming more generally used and it is planned 

 to have these states supply their own fertilizer, as far as possible. 



Until the breaking out of the European war much potash was im- 

 ported from Germany. That supply is now very much curtailed and 

 the market for the product is becoming more extensive. It is now 

 planned to take advantage of Germany's handicap and to develop 

 in Wisconsin and upper Michigan a new industry which is clearly 

 one of conservation, not only of waste product but of the soil itself. 



A paragrapher who has evidently caught some glimmer of the 

 shingle boosting movement says the young lads will hope that 

 the Buy-a-Bundle-of-Shingles movement does not grow popular with 

 the school teachers. 



Railroad ties are now showing up bigger in the export trade 

 than a year ago, and some other lumber items are showing signs of 

 life in the export as well as the domestic trade. 



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