Cook v. McNaughton

24 N.E. 361, 128 Ind. 410, 1890 Ind. LEXIS 613
CourtIndiana Supreme Court
DecidedMay 14, 1890
DocketNo. 14,311
StatusPublished
Cited by12 cases

This text of 24 N.E. 361 (Cook v. McNaughton) is published on Counsel Stack Legal Research, covering Indiana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cook v. McNaughton, 24 N.E. 361, 128 Ind. 410, 1890 Ind. LEXIS 613 (Ind. 1890).

Opinions

Coffey, J.

This was a suit in the Elkhart Circuit Court by the appellants against the appellee, upon the following promissory note, viz.:

“$300. Elkhart, Ind., Jan. 17th, 1881.
“ I promise to pay to the treasurer of the Cincinnati, Wabash and Michigan Railway Company, or order, three hundred dollars, value received, without relief from valuation or appraisement laws, with interest after maturity at 8 per cent, until paid, and attorney fees.
“ This note is given in consideration of the construction by said railway company of an extension of its railway from Goshen, Indiana, to connect with the Chicago and Grand Trunk Railway, and is to be paid at the end of thirty days after such extension is so far completed as to admit of the [411]*411running of a train of cars over the same from Goshen, Indiana, to said Chicago and Grand Trunk Railway, and upon condition that such extension is so constructed on or before the first day of January, 1883; and is payable on the further condition that the extension is constructed through the city of Elkhart; and upon or near one of the two surveys made through said city in August, 1880, by said company, and upon the condition that said extension shall reach the main embankment of the Elkhart Hydraulic Company, of Elkhart, Indiana, either by the main track, or side track, of said railway company; right of way through said hydraulic company’s land being furnished free of cost to said company.
If the above terms and. conditions are observed and performed by said railway company, then this note shall be paid as herein above specified, otherwise the said note shall be void. And provided that said R. R. is built by Edwards-burgh, or Granger station.
“ Signed : John McJSTatjghton.”

The complaint alleges that the railroad company performed all the conditions of said note on its part, and after-wards sold and endorsed said note to the appellants.

Among other answers filed by the appellee was an answer under oath denying the execution of the note in suit, one under oath denying the endorsement of the note to the appellants, and another averring that said note was executed without any consideration.

Upon issues formed the cause was tried by a jury, who returned the following special verdict:

John Cook et al. vs. John McNaughton. Special Verdict Submitted by Plaintiffs :
“1. We, the jury, find that in order to induce the Cincinnati, Wabash and Michigan Railway Company to build its line from the city of Elkhart to a connection with the Chicago and Grand Trunk Railway Company, certain residents of the said city of Elkhart, including the plaintiffs and defendant, agreed with said railway company to raise and pay to it the sum of [412]*412$30,000, if possible so to do, in lieu of taxation of that amount for said purpose, the question having been before the people and voted down; that said residents, including the plaintiffs and defendant, proposed to raise said sum by private subscription; that, to carry out said proposition, the paper sued upon was signed by the defendant and left with one F. W. Miller to be delivered to said company when notes to the amount of $30,000 should be raised and delivered for the same purpose; that after several thousand dollars were so raised, it was found to be impossible to raise said $30,000, and said project was abandoned, and the committee having the matter in charge ordered said notes to be returned to the signers, including the note now sued upon.
“ 2. We further find that a number of the citizens of said city then proposed, if possible, to raise the sum of $22,500 by taxation and $7,500 by private subscription for the purpose aforesaid; that the committee having such matter in charge delegated Mr. Maxon, plaintiff herein, to circulate a subscription paper binding those who signed it who had given notes upon the first proposition to raise the $30,000, to pay them on the new proposition to raise $7,500.
“3. We further find that many of those who had signed notes to be applied on said $30,000 signed said subscription paper, and the aggregate amount so signed .was $2,034.60, but said subscription paper was never presented to or signed by the defendant.
“4. We further find that said Maxon saw defendant McNaughton, who promised to pay his said original note — the note now sued upon — towards said new subscription of $7,-500; that upon the strength of such promise said Maxon went to said F. W. Miller and got the note now sued upon and left it at the First National Bank in said city of Elk-hart.
“ 5. That afterwards said citizens appointed a committee to see about getting the right of way for said railway company, of which the plaintiffs and defendant were members, [413]*413and one E. C. Bickel was employed to negotiate for such right of way; said Bickel reported to said committee that he could negotiate to better advantage if he had the cash to pay down. A proposition was then made to the committee to try and get those who had subscribed to the fund to pay their notes before they were due, and raise money at once for that purpose; the chairman of that committee asked the several members present if they would pay their notes then; he also said to defendant McNaughton, ‘Will you pay your note ? ’ to which the defendant said, c I suppose I can borrow the money and pay it.’
“ 6. We find that the defendant hy such language intended that those present should understand that he would pay said note, and that those present did so understand him, and acted upon such understanding, and paid their notes a short time thereafter.
“ 7. We further find that said sum of $22,500 was raised by taxation and paid over to said railway company, as proposed.
“8. We further find that upon the strength of defendant’s promise said committee went to said bank and got the note now sued upon and delivered it to the said Bickel, who was acting as the agent of said committee and also of said railway company, and he presented it to said defendant for payment, which he refused.
“9. We find that after all the money which was collectible on said other notes and subscription had been collected and paid to said railway company it lacked about $453 of being enough to make up said $7,500, and these plaintiffs and some others raised the balance and paid it over to said railway company, which by its treasurer duly endorsed said note and delivered the same to the plaintiffs’ attorney.
“10. We also find that all the conditions and stipulations contained in said note were fully performed by said railway company at least thirty days before the first day of January, [414]*4141883, all of which was well known to the defendant before this action was brought.
“ 11. We find that the amount of principal and interest due upon said note, if anything, is $414.
“ 11a. We further find that since the note sued upon was endorsed to plaintiffs, they have collected from other subscriptions about $550, but not enough to pay all claims outstanding on account of said subscriptions.
“ 12.

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Bluebook (online)
24 N.E. 361, 128 Ind. 410, 1890 Ind. LEXIS 613, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cook-v-mcnaughton-ind-1890.