McElroy v. People

66 N.E. 1058, 202 Ill. 473, 1903 Ill. LEXIS 2659
CourtIllinois Supreme Court
DecidedApril 24, 1903
StatusPublished
Cited by36 cases

This text of 66 N.E. 1058 (McElroy v. People) is published on Counsel Stack Legal Research, covering Illinois Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
McElroy v. People, 66 N.E. 1058, 202 Ill. 473, 1903 Ill. LEXIS 2659 (Ill. 1903).

Opinion

Mr. Justice Wilkin

delivered the opinion of the court:

Plaintiff in error was convicted in the criminal court of Cook county of the crime of larceny by embezzlement, and sentenced to the penitentiary. The indictment contained eight counts. The first six are in substantially the language of section 75 of the Criminal Code, (Hurd’s Stat. 1901, p. 604,) charging that she was an agent, to-wit, a collector and solicitor, for the Catholic Press Company, and as such collected and embezzled the funds of the company to the amount of §106.50. The seventh count charged her with simple larceny, and the eighth with receiving money knowing it to be stolen. There was a motion to quash the indictment and each count thereof, which ivas overruled, and that ruling is here assigned as error.

The seventh count was bad, (Kibs v. People, 81 Ill. 599,) but the first six are good. (Lycan v. People, 107 Ill. 423; Ker v. People, 110 id. 627.) There was a general verdict of guilty, and the rule is, that where there are several counts and the verdict is general, one or more good counts will sustain the conviction.

Among other defenses relied upon, it was insisted that the money which the .defendant was charged with embezzling was a sum in which she had an interest by way of commissions. She was employed by one Hubbard, manager of the Catholic Press Company. The agreement was by parol. Both she and Hubbard testified that by the contract of employment she was to solicit subscriptions for a publication called The New World, and receive a commission of fifty cents fon each cash subscriber of two dollars. If charged on the books she was to receive but forty cents, and for each cash subscription which “lapsed” she was to refund ten cents. Hubbard claimed that the gross amount received by her was to be brought in weekly and paid to him, out of which he was to pay her the commissions. Her contention was that she was to retain the amount of her commissions out of the collections and only pay over the balance. The weight of the testimony supports her understanding of the contract. Hubbard said, on cross-examination: “The understanding I had with this woman was that she was to work on a commission. She had the right to deduct her commissions if there was anything to deduct from.” The employment was from March 1, 1901, to about the end of the year. During, the fall, in August and September, he wrote her certain letters, in one of which he stated: “On examining your accounts to date I find that you owe us §106.50, net.” When asked what he meant by using, the word “net,” he answered, “Why, after all her compensation had been paid.” And again: “Does this letter in which you say, ‘on examining your accounts to date I find that you owe us §106.50, net,’ mean that she had a right to retain her commissions? How do you make up that account?” He answered: “After giving her all her commissions I find she owed us §106.50. I gave her forty cents for each subscriber she reported, and then I took the collections which she paid in and also some she had not, and gave her the benefit of the collections she had not paid in on the 'presumption that she would pay it some day.”-

Section 75, supra, is as follows: “If any officer, agent, clerk, or servant of any incorporated company; or if a clerk, agent, servant or apprentice of any person or co-partnership, or society, embezzles or fraudulently converts to his own use, or takes and secretes with intent so to do, without the consent of his company, employer or master, any property of such company, employer, master, or another, which has come to his possession, or is under his care by virtue of such office or employment, he shall be deemed guilty of larceny.” By this statute, in order to constitute the crime of embezzlement the fraudulent conversion must be of the property of another. If the plaintiff had a right to deduct her commissions from the gross amount collected, then to that extent the money belonged to her, — that is, she and the company owned the gross sum jointly. The law is, that where a defendant has an interest in the property or money alleged to have been fraudulently converted to his or her own use there can be no conviction of the crime of embezzlement. (10 Am. & Eng. Ency. of Law, 985, and cases cited in .'note 7.) In the case of State v. Kusnick, 45 Ohio St. 535, there cited, (reported in 4 Am. St. Rep. 567,) the court said: “It is true that at common law, to constitute larceny, the thing alleged to have been stolen must be the property of another person than the offender. It is also true that the statutes of nearly all the States which undertake to define embezzlement, require that the subject of the offense shall be shown to be property of another; and this has almost universally been construed to mean that it must be wholly the property of another.”

In the case of State v. Kemp, 22 Minn. 41, (21 Am. Rep. 764,) the defendant was collector of pew rents for a church, under an agreement that he was to have five per cent of all the rents, no matter who collected them. He failed to turn over all the money collected and-was indicted for embezzlement under- a statute similar to ours, \ and the court said: “The effect of this agreement was to vest in the defendant an undivided one-twentieth interest in the rents collected, and to that extent make him an owner jointly with the corporation. In other words, the money was not the property of the corporation, but the joint property of the corporation and the defendant. It was therefore not the property of another than the defendant.”

In Commonwealth v. Libbey, 11 Metc. 64, (45 Am. Dec. 185,) the defendant had been employed by a firm of newspaper publishers to collect bills for a certain commission, and he, as was alleged, failed to pay over certain collections made by him but converted the same to his own use. In deciding the case the Supreme Court of Massachusetts said: “In the case of domestic servants, and to some extent in the case of special agency, the right of the property and the possession continues in the principal, and a disposal of the property would be a violation of the trust and an act 'of embezzlement. But the case of commission merchants, auctioneers, and attorneys authorized to collect demands, stands upon a different footing, and a failure to pay over the balance due their employers upon their collections will not submit them to the heavy penalties of embezzlement.”

Other authorities are to the same effect, and the cases which seem to announce a different doctrine are founded upon statutes unlike ours.

The jury were instructed, at the instance of the People, that “as a matter of law an agent engaged in the service of another, selling goods on commission on such sales, will be guilty of embezzlement in appropriating to his or her own use money so collected, where, by the terms of his employment, he is required to remit or pay over such collections to his principal and is not permitted to mingle the same with his or her own money.” This instruction had no proper application to the case. The-defendant was not employed in selling goods on commission or percentage for the company, and it was clearly misleading and erroneous when applied to the facts in this record.

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Bluebook (online)
66 N.E. 1058, 202 Ill. 473, 1903 Ill. LEXIS 2659, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mcelroy-v-people-ill-1903.