C. H. Albers Commission Co. v. Spencer

139 S.W. 321, 236 Mo. 608, 1911 Mo. LEXIS 219
CourtSupreme Court of Missouri
DecidedJuly 12, 1911
StatusPublished
Cited by25 cases

This text of 139 S.W. 321 (C. H. Albers Commission Co. v. Spencer) is published on Counsel Stack Legal Research, covering Supreme Court of Missouri primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
C. H. Albers Commission Co. v. Spencer, 139 S.W. 321, 236 Mo. 608, 1911 Mo. LEXIS 219 (Mo. 1911).

Opinion

LAMM. J.

This is an appeal, by the principal and sureties on injunction bonds, from the assessment of damages on motions on the dissolution of five injunctions. From a judgment assessing such damages at $10,867.11, said principal and sureties appeal.

• A short history of the litigation is not amiss, viz.: In December, 1903, the C. H. Albers Commission Co. (hereinafter called appellant) brought five suits in [619]*619equity — the first against John T. Milliken, Corwin H. Spencer, The Merchants’ Exchange of St. Louis, The National Bank of Commerce, in St. Louis, Thomas Akin and thirteen others; the second against Sherry and Bacon and the same defendants in the first suit, excepting Thomas Akin; the third against William H. Gardener and the same defendants in the first suit, omitting Thomas Akin; the fourth against John Mullally Commission Co. and the same defendants in the first suit, omitting Thomas Akin; and the fifth against Ballard, Messmore and Co. (naming the members of the same) and the same defendants in the first suit, omitting Thomas Akin. Those suits had a common object and pertain to the same subject-matter — a “deal” in No. 2 red winter wheat.

At a certain time thereafter Corwin H. Spencer departed this life and Harlow B. and Mary E. Spencer, nominated as executor and executrix respectively in his will and who took upon themselves the burden of administration, were brought in as parties defendant.

Those defendants having a substantial money interest in the subject-matter were Spencer and Milliken. Some of the others were their brokers in buying No. 2 red winter wheat for December, 1903, delivery— such purchases evidenced by contract. The National Bank of Commerce was made a party, because it held certain deposits made by plaintiff to cover “margins” in that deal. The Merchants ’ Exchange and its directors were made parties because the contracts for wheat were made on the floor of the Exchange and were subject to its rules — all the principals and brokers being members.

During September, October and November, 1903, Spencer and Milliken (speaking of the two in the singular) was a “bull,” and the appellant was a “bear” on the red winter wheat market. We may say, in passing (speaking in figure), that the particular bull in question was a dangerous animal, as every [620]*620bull — except the harmless variety known as the Irish bull- — is now and then. He had hay upon his horn, a sign of tossing and goring. (Foenum habet in cornu, as put by Horace.)

During those months the corporate appellant sold to Spencer and Milliken about 300,000 bushels -of No. 2 red winter wheat at from 80 to 84 cents for future delivery, with the option to deliver on any day during December, 1903. During that December the market price of No. 2 red winter wheat in the St. Louis market ranged from 90 to 93 cents. Present rumors of war, a short crop and heavy selling, the market price tended up and seemed stiffly buoyant, and the financial estimate the corporate appellant put upon its judgment as a seer in forecasting the market price of red winter wheat for December, as evidenced by its said contracts, was wide the mark. Accordingly, it stood to lose heavily to Milliken and Spencer. On December 31st, the last day of delivery, the market closed at 92 cents. To secure margins against a rising market it had deposited from time to time with The National Bank of Commerce about $37,000. That bank issued certificates of deposit for these margins, which, by their terms, were payable on the indorsement of the seller and buyer, or by virtue of an order and indorsement of the board of directors of the Exchange. In this condition of things appellant, as seller, refused to indorse them over to Milliken and Spencer. Not only so, but, to keep said directors • from making an order indorsing the certificates under the rules of The Merchants’ Exchange, five suits (those heretofore mentioned) were brought, each charging an unlawful combination to control prices, a “corner” by Spencer and Milliken and their confederates to raise the price of No. 2 red winter wheat for December delivery, to control the elevator capacity contributing to the St. Louis market, and by their unlawful conspiracy to forestall the St. Louis market in red winter [621]*621wheat and to canse it to reach and remain at a fictitious and grossly excessive price. It was further charged that the enumerated acts of Spencer and Milli-' ken, et al (enumerated), were in violation of the law for the prevention and suppression of pools, trusts and conspiracies to raise or control the price of commodities ; that the hoard of directors of said Exchange were claiming power to direct the payment of said deposits of margins to Spencer and Milliken and were about to use it, but that the enforcement of said wheat contracts would be inequitable, etc.

Wherefore ■ plaintiff asked relief in that the contracts be annulled and adjudged non-enforceable by reason of the premises, and an injunction was prayed perpetually restraining such enforcement in any manner and to restrain defendants from applying said deposited margins in discharge of said grain contracts. Relief was also prayed that the funds be adjudged to be returned and restored to plaintiff, and for a temporary injunction against certain of the defendants from transferring the funds on deposit as margins or the certificate of deposit therefor to certain of the other defendants, and against such others from receiving said funds or certificates until the further order of the court.

Temporary injunctions were issued in those cases on giving an injunction bond in each. (Note: The principal in each bond was C. H. Albers Commission Co., the sureties were C. H. Albers and Henry B. Vogelsang.) The condition of each bond' narrated that the Albers Commission Co., on January 7, 1904, obtained a restraining order or injunction against said “obligees” (the obligees being the defendants in each suit respectively), and concluded as follows: “Now, if the said C. H. Albers Commission Co. shall abide by the decision which shall be made thereon, and pay all sums of money, damages and costs that shall be adjudged against it if the injunction or restraining [622]*622order be dissolved, then the above obligation to be void, otherwise to be and remain in full force and virtue.”

Subsequently, by consent of parties and order of court entered thereon, the five suits were consolidated. That order was made effective and on all after steps the cases were treated as one case.

Before that certain of defendants filed their joint motion to dissolve the temporary injunction and certain other defendants, to-wit, The Merchants’ Exchange, its directors and officers, and The National Bank of Commerce, also filed their separate motions to dissolve.

Subsequently, in due course, those motions were taken up and heard — evidence going in in great volume. The temporary injunctions in all the cases were dissolved on that hearing and the motions sustained. Thereupon, the corporate appellant filed it’s motion to set aside the order dissolving the temporary injunctions. Subsequently, that motion was overruled and an appeal was taken to this court from the adverse ruling and order then made. In this court the arder refusing to set aside the order dissolving the injunctions was affirmed. [Albers v. Spencer, 205 Mo. 105. Quod videQ It appears from that case that at the time of dissolving the injunctions the chancellor did not dismiss the bills for the reason that other than injunctive relief was sought.

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Bluebook (online)
139 S.W. 321, 236 Mo. 608, 1911 Mo. LEXIS 219, Counsel Stack Legal Research, https://law.counselstack.com/opinion/c-h-albers-commission-co-v-spencer-mo-1911.