Hayes v. State

25 Ohio C.C. Dec. 57, 14 Ohio C.C. (n.s.) 497, 1910 Ohio Misc. LEXIS 333
CourtCuyahoga Circuit Court
DecidedFebruary 7, 1910
StatusPublished

This text of 25 Ohio C.C. Dec. 57 (Hayes v. State) is published on Counsel Stack Legal Research, covering Cuyahoga Circuit Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hayes v. State, 25 Ohio C.C. Dec. 57, 14 Ohio C.C. (n.s.) 497, 1910 Ohio Misc. LEXIS 333 (Ohio Super. Ct. 1910).

Opinion

HENRY, J.

The plaintiff in error was indicted jointly with his partner in the firm of W. J. ITayes & Son, for embezzling on August 7, 3907, 198 one thousand dollar bonds of the Cincinnati, Bluffton & Chicago Railway. Upon separate trial he was found “guilty of embezzlement as charged in the first count of the indictment” of property valued by the jury at $18,000, and was sentenced to five years’ imprisonment.

The transaction evidently contemplated by the verdict is the pledging by the defendant below to the Pearl Street Bank, in Cleveland, on January 25, 1907, of twenty of said bonds to secure their note for $15,000. Their rights at that time with respect to these bonds are defined by the following contract:

‘‘ This, agreement, made and entered into this 22nd day of December, A. D. 1906, by and between S. H. Bracey, of Chicago, Illinois, party of the first part, and W. J. Hayes & Sons, of Cleveland, Ohio, parties of the second part, Witnesseth:
“Whereas, the party of the first part is the owner of 10,-080 shares of the capital stock of the Cincinnati, Bluffton & Chicago Railroad. Company and of 1,275 bonds of said company, and is desirous that the said W. J. Hayes & Sons shall act as his brokers in the sale of said bonds:
“Therefore, in consideration of the sum of one dollar, and [59]*59■other good and valuable considerations, each to the other in hand paid and received, it is mutually covenanted and agreed by and between the parties hereto as follows, that is to say:
“1st. That, subject to the conditions hereinafter expressed, the said parties of the second part shall have and are hereby given exclusive sale of the said 1,275 bonds owned by the said first party and issued by the Cincinnati, Bluffton & Chicago Railroad Company,
“2nd. The said party of the first part agrees to give to the party of the second part, pro rata as sales are made, as compensation for services, the total aggregate of 35 per cent of the total issue of the capital stock of the said railroad; it being understood, however, that none of said stock can be physically delivered until there is a sale of the 575 bonds provided to be sold in clause 6, so that the moneys derived from such sales can be used to release such stock from present collateral liens; provided that said stock shall be contracted to purchasers of bonds, or if retained by the second party, shall be retained with the understanding that said 10,080 shares of stock are pooled and that no stock shall be transferred unless all is sold and that each share shall participate equally and impartially in the proceeds of any sale thereof.
“3rd. It is mutually covenanted and agreed that the-666 bonds of the said railroad now in the hands of Louis D. Davenport, of Bluffton, Indiana, as well as 34 of the bonds now in the control of the Reorganization Committee of said railroad, making a total of 700 bonds, shall be sold and the proceeds thereof shall be devoted entirely to the cost of engineering, right-of-way for and construction of extensions of said railroad, as hereinafter described, including the securing of necessary and adequate equipment therefor. Said second parties shall have the right to sell the first 350 of said bonds at 75 per cent of their face value, and the next 350 of said bonds at 80 per cent of their face value, and all amounts received by said second party over and above said 75 per cent for said first 350 bonds and 80 per cent for said second 350 bonds shall be retained by said second parties as their compensation and commission for the [60]*60sale thereof. The amount realized from the said sales of the said 700 bonds shall, from time to time, and as fast as sold, be placed on deposit with some responsible bank to the credit of the said railroad, to be drawn out and expended only for the purposes herein provided, upon cheeks signed by said railroad company and upon vouchers which shall be approved as being for such purposes by some responsible' certified public accountant.
“4th. The party of the first part agrees to supervise the expenditure of the sums of money above provided, and to furnish necessary tools and construction equipment for the construction of said railroad, and shall receive for his compensation 10 per cent, of the actual cost of labor and materials used in the construction and equipment of said extension. It is agreed that the said extension shall be built from a point of connection with the present terminal of the said railroad in Bluffton, Indiana, to Huntington, Indiana, and from the present terminal of said railroad in Portland, Indiana, to Union City, Indiana; the construction to be in accordance with the present general standard of the construction of that portion of the railroad now in operation between Portland and Bluffton, Indiana, in relation to weight of rails, ties, grade, curves, roadbed and ballast; said entire railroad from Union City to Huntington, Indiana, to be built and placed in operation by August 1, 1907, provided said second parties shall meet and pay all of the calls provided for in this contract in clause 7.
“5th. It is further mutually agreed that in case there shall be any profit represented by the difference between the amount of said bond sales of the 700 bonds as herein provided for, plus all subsidies and municipal aid voted or to be voted in aid of said railroad and the actual cost of the construction of said extension and equipment therefor as provided in clause 4 (including the 10 per cent compensation to first party) shall be divided equally between the parties hereto.
“6th. It is further mutually agreed that the remaining 575 bonds owned by the said S. H. Bracey may be sold by the parties of the second part at 85 per cent of their face [61]*61value, and that the said second parties shall retain in full for their compensation and commission all that they shall receive •on the sale of said bonds in excess of 85 per cent; all moneys received from said sales of said 575 bonds shall be used to release the same from collateral liens and the balance shall be paid to the said party of the first part.
“7th. It is further mutually agreed that the said party of the first part shall, have the right to call upon the parties •of the second part for the payment of twenty-five thousand dollars ($25,000.00) on the 15th day of- February, 1907, upon the delivery to the said parties of the second part of bonds at the rate of 75 per cent of their face value to the amount of •said call, and the second party agrees to make said payment on said date to be used for the purposes herein provided for and upon the delivery of said bonds as aforesaid; subject to the right of refusal exercised as hereinafter provided; like calls for $25,000.00 each upon like conditions can be made by said first party, and the payment of the amount thereof shall he made by said second parties on delivery of bonds at said rate on the 15th days of March and April, 1907; and the following like calls for the following amounts upon like conditions can be made by the party of the first part, and payment thereof shall be made by the parties of the second part upon delivery of bonds at the rates herein provided for the sale thereof, that is to say:
“One hundred sixty-seven thousand five hundred dollars ($167,500.00) on May 15, 1907, or later if not required for construction.

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Bluebook (online)
25 Ohio C.C. Dec. 57, 14 Ohio C.C. (n.s.) 497, 1910 Ohio Misc. LEXIS 333, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hayes-v-state-ohcirctcuyahoga-1910.