Morgan v. Halberstadt

60 F. 592, 9 C.C.A. 147, 1894 U.S. App. LEXIS 2119
CourtCourt of Appeals for the Second Circuit
DecidedMarch 13, 1894
DocketNo. 62
StatusPublished
Cited by24 cases

This text of 60 F. 592 (Morgan v. Halberstadt) is published on Counsel Stack Legal Research, covering Court of Appeals for the Second Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Morgan v. Halberstadt, 60 F. 592, 9 C.C.A. 147, 1894 U.S. App. LEXIS 2119 (2d Cir. 1894).

Opinion

LACOMBE, Circuit Judge.

Tlie complainant sets out four causes of action, based on separate articles, which appeared in the defendant’s newspaper on September 5, September 30, October 10, and ^November 1, 1891, respectively.

The first of these is as follows:

“This is the situation in the Beers’ Mutual Admiration Society at Broadway and Leonard slreet. Everything is done to avoid publicity and to screen the (ruth. Not one of the twenty men composing the board of trustees, save those two or three who hold executive offices, knew of the Merz-bacher defalcation until the Times exposed it. Not one of these men — 'these alleged guardians of trust funds — knows that Halberstadt, Beers’ Mexican agent, is short in his accounts $28,000; and yet this same Halberstadt, while standing in the barroom of the Hot'fman House, early last March, surrounded by such men as Merzbacher and Dinkelspiel, boasted of the manner in which he was helping himself to the company’s funds.”

Tbe second is as follows:

“The policy of the New York Life with reference to its defaulting agents in Spanish America furnishes another explanation of the distrust with which the companv has long been regarded by the policy holders in Bio. The career of John Davis, for instance, is familiar to everybody in the tropics who takes an interest in insurance matters. Davis, it will be remembered, handled a business of $9,000,000 a year in Mexico. He led a fast life, and when he disappeared one day his accounts were found to be short §30,000. No attempt was made to> arrest him. The career of the two agents who immediately preceded Davis is equally notorious in the tropics. These agents, or one of them at least, owed his appointment to the defaulter Merzbacher. Their shortage was found to be $60,000. Neither of them was arrested. The case of the intemperate German agent, who was found to be short in his accounts $12,000, in Chile, and who was subsequently transferred to Mexico, is another familiar story- This agent was not only not punished, but he was transferred to another agency. Then came the defaulter Merzbacher, with a shortage of $700,000 standing opposite his name. The news- of his defalcation was received in Brazil with astonishment.”

Tbe third is as follows:

“The notoriously bad character of the agents whom Mr. Beers employs to do the work of the Now York Life Insurance Company is a theme that constantly presents new features and new attractions. Dinkelspiel, Merz-bacher, Webber, Stoddart, Moore, Halberstadt, Davis, and Vanuxem are names that stand at the head of the list of Mr. Beers’ warm personal friends and admirers, and to each of these men he had given valuable appointments, with unlimited opportunities to swindle and deceive the policy holders. The readers of the Times are entirely familiar wit i the methods and the extent to which the agents named have availed themselves of those opportunities.”

The fourth is as follows:

“Since the present feeling of distrust of the company’s management arose efforts have been made to enlighten a deceived lot of policy holders concerning the abuses of various, sorts committed by Messrs. Beers, Merzbacher, Dinkelspiel, Sai*cliez, and others, but, notwithstanding all that has been said, it is evident to those who, like myself, are acquainted with the management of the Spanish-American department, that there are details of an important natureTacking. It is a fact that the most immoral methods of doing business prevail in that department, and that the arch conspirator who, next to Beers, is responsible for these immoralities, is Sanchez himself. * * * jje an(j ⅛⅛ subagents have made use of all sorts of exaggerations and deceits in Spanish America, where the insurance public is completely ignorant of life insurance, and where the most improbable stories as to conditions of policies, and the results that will accrue from them, may be told with perfect safety. * * * S. E. Halberstadt is another one of the com[594]*594pany’s agents to whom attention must be drawn if the company’s affairs in Spanish America are to be thoroughly exposed. This man is said to have been a defaulter while in the employ of the New York Life in Peru and Chile. He has been for some years the company’s representative in Mexico, where his accounts have steadily run in arrears, as he himself boasted one night at the Hoffman House, in this city. The entire staff of the Spanish-American department have been witnesses to the scandalous quarrels that took place between Merzbacher and Halberstadt in the former’s private office in this city. One of the most remarkable things about this man’s career is the freedom with which he talks about the officers of the company, notably President Beers, and his son-in-law, Berthelot. Halberstadt was a candidate for Merzbacher’s position, but he has not obtained it yet. Another agent who has stolen the company’s money in Spanish America was until very recently manager at Buenos Ayres.”

There was evidence showing that the plaintiff was the person referred to by name, and, in the second article, as “the intemperate German agent.”

1. Plaintiff in error assigns error in the instructions to the jury, in that the circuit judge charged as follows:

“The articles in the New York Times are charged in the complaint to be each and every one libelous. The expía,nation (or, as it is called in legal phrase, the innuendo) which is given in the complaint of the meaning of the article represents that the articles were libelous. In my opinion, gentlemen, each article was in fact libelous.”

■ — To which charge defendant duly excepted.

The very authorities cited by the plaintiff in error abundantly sustain this part of the charge. They hold that the language used must be given its ordinary meaning; that the test is whether, in the mind of an intelligent man, the language naturally imports a criminal or disgraceful charge; that the language is to be understood by the court in the sense in which the world generally would understand it, giving to the words their ordinary meaning; that the language is to be understood in the ordinary and most natural ■sense; and that, when the writing complained of is plain and unambiguous, the question in a civil action, whether it is a libel or not, is a question of law. Hayes v. Ball, 72 N. Y. 420; More v. Bennett, 48 N. Y. 472; Williams v. Godkin, 5 Daly, 499; Weed v. Foster, 11 Barb. 203; Snyder v. Andrews, 6 Barb. 43,—to which list of authorities may be added Rue v. Mitchell, 2 Dall. 58, holding that “the sense in which words are received by the world is the sense which courts of justice ought to ascribe to them” on the trial of actions such as this. Plaintiff in error apparently concedes upon his brief that the court correctly construed the language of the second and fourth articles, but contends that the first and third were ambiguous, and should have been left to the jury. The contention is frivolous. Ho intelligent man reading these articles could fail to understand that the author of the first one charged an agent through whose hands moneys of a corporation passed, not only with being short in his accounts $28,000, but also with openly boasting of the manner in which he was helping himself to the company’s funds. Hor could the intelligent reader fail to understand that the third article charged that Halberstadt had béen- given unlimited opportunities to swindle and deceive the [595]*595policy holders, and had availed himself of such opportunities.

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Bluebook (online)
60 F. 592, 9 C.C.A. 147, 1894 U.S. App. LEXIS 2119, Counsel Stack Legal Research, https://law.counselstack.com/opinion/morgan-v-halberstadt-ca2-1894.