County of Johnson v. Wood

84 Mo. 491
CourtSupreme Court of Missouri
DecidedOctober 15, 1884
StatusPublished
Cited by6 cases

This text of 84 Mo. 491 (County of Johnson v. Wood) 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
County of Johnson v. Wood, 84 Mo. 491 (Mo. 1884).

Opinion

A. F. Alexander, Special Judge.

In September, 1851, the county of Johnson subscribed for one thousand shares, or $100,000, of the stock of the Pacific Railroad Company, to be paid for in six per cent, county bonds. The contract for subscription was modified in December, 1856, and the county court, in pursuance of the latter agreement, issued and deposited with the railroad company one hundred bonds of $1,000 each, bearing interest at seven per cent, and payable in equal instalments in five, six, seven, eight, and nine years. These bonds were to be sold by the railroad company, and as fast as they should be disposed of, a corresponding amount of «took was to be issued to the county, and those which should remain in the hands of the company unsold after the lapse of three years, were to be surrendered to the county and cancelled, and a corresponding amount of the stock of the original subscription annulled. It was, also, provided in this contract that the railroad company should issue to the county shares of stock corresponding in amount for any interest paid on bonds which should be eventually surrendered. The contract was again modified in 1860 by a new agreement, the effect of which was, among other things, to release the interest on all the bonds remaining unsold from July 1, 1861, to June, 1864, the railroad company having failed to complete the road to Knobnoster, in Johnson county, before the latter date. On May 17,1870, forty-seven of the bonds remained in the hands of the railroad company, which, by the terms of these agreements, were to be delivered up for cancellation, and the county court having repeatedly endeavored to obtain them, without success, sold the one thousand shares of stock originally subscribed, to the defendant, A. W. Ridings, for the nominal sum of $77,000, $47,000 of which, however, was to be paid by the delivery of the forty-seven bonds and to secure the restoration of which the defendant was constituted the agent of the county, and the bonds were soon afterwards obtained [504]*504and cancelled. On October 28, 1874, the defendant recovered of the Pacific Railroad Company the sum of $9,458.75, the value of interest stock, to which the plaintiff became entitled by the payment of $8,225 interest upon the bonds which had been surrendered. And to recover this sum of $9,458.75 with the interest thereon as money had and received to the use of the plaintiff, this action is brought.

The defendant, in his answer, admits the recovery of the value of the interest stock from the Pacific Railroad Company, but claims title to the same by virtue of a. modified contract, subsequently made with the county court, which he claims more properly expressed the-terms of agreement between the parties and which, it is claimed, was made for the purpose of correcting a mistake or clerical error in the original contract. The replication is a general denial of these facts.

Neither party claiming a jury, the cause was tried by the court, and the defendant, who was permitted to open, .introduced the following evidence: The modified contract pleaded in his answer, dated August 12, 1870, as shown by the record of the county court of Johnson county. The pleadings and judgment in a cause in. the circuit court of St. Louis county, Missouri, in which A. W. Ridings, as plaintiff, recovered the sum of $9,458.75 of the Pacific Railroad Company, as the defendant. The orders of the county court of Johnson county for the issue of warrants in payment of interest, on county bonds issued upon railroad subscriptions. These entries do not describe the bonds upon which the-Interest is paid. The report of George S. Grover upon the condition of the affairs of the county with the railroad company made in the year 1869 to the county court. This report shows that the records of the county court in respect to payments made upon the subscription of 1851, and an additional subscription made in 1853, were defective and incomplete, the entries having been, carelessly made, and that some of the books had been lost. [505]*505It does not show with certainty that any interest had been paid on the forty-seven bonds. The defendant then introduced in evidence the record of the original contract, preceded by a recital of his proposal to purchase all stock owned by the county. Also, the forty-seven bonds, with five coupons detached from each, and as a substitute for the évidence it was admitted that the stock of the Pacific Railroad Company in May, 1870, was worth sixty-two cents on the dollar, and in August, 1870, it was worth seventy cents on the dollar, and that A. W. Ridings had otherwise complied with his contracts with the county court.

The deposition of I. H. B. Thornton, who had made the entries in the year 1870, as deputy clerk, was then read in evidence by the defendant, the statements of which are in substance: That the county sold and the defendant purchased all the stock in the Pacific Railroad Company, to which the county was entitled. That he knew the amount of interest which had been paid on the bonds from Grover’s report, which was in the possession of the court, and from the absence of the five coupons from each when they were cancelled. That the county court had sent its presiding justice and Wells H. Blodgett, an attorney, to . St. Louis to demand the restoration of the forty-seven bonds, and that they had been unsuccessful in their mission, and on their return had reported to the court that the charter of the railroad company prohibited the issue of stock for interest paid on the forty-seven bonds ; that nothing was said as to interest paid on the bonds in the negotiations with Ridings, and that the only purpose of the county court in making the contract of the twelfth of August, 1870, was to grant him further time in which to pay the purchase money.

G. Will. Houts, who had been the presiding justice of the county court in the year 1870, was introduced as a witness on the part of the defendant, and testified in substance, that previous to the time of making the contracts [506]*506with the defendant, he had examined the records of the county court, and was aware of the existence and contents of the agreements made with the Pacific Railroad Company, and that he had gone to St. Louis to obtain the forty-seven bonds three times, without success, and was in doubt whether the county could obtain any stock from the company; that the proposition of the defendant was in writing, and was to purchase the stock of the county at seventy-seven cents on the dollar, or $77,000, $47,000 to be paid in railroad bonds, $3,000 in cash, and’ the balance in county warrants. In regard to the contract of August 12, 1870, the witness states: “There was no other motive for making the modified contract than that of extending the time of the payment agreed to be made by defendant, Ridings, in the May contract. We did not intend to convey any more stock than was conveyed by the May contract. When we made the May contract we were intending to sell all the stock that the county owned in the Pacific Railroad Company.”

The defendant, A. W. Ridings, testified that the forty-seven bonds were delivered up and cancelled at the date of the modified contract; the clerk cancelled the bonds and the coupons were cancelled by himself, and the court permitted him to take the bonds after cancellation.

Objections were interposed to the admission of all the evidence introduced by the defendant, and exceptions were saved by the plaintiff to the action of the court in overruling them.

Wm.

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Bluebook (online)
84 Mo. 491, Counsel Stack Legal Research, https://law.counselstack.com/opinion/county-of-johnson-v-wood-mo-1884.