Raike v. Manhattan Rubber Manufacturing Co.

105 S.W. 1100, 127 Mo. App. 480, 1907 Mo. App. LEXIS 524
CourtMissouri Court of Appeals
DecidedDecember 3, 1907
StatusPublished
Cited by1 cases

This text of 105 S.W. 1100 (Raike v. Manhattan Rubber Manufacturing Co.) is published on Counsel Stack Legal Research, covering Missouri Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Raike v. Manhattan Rubber Manufacturing Co., 105 S.W. 1100, 127 Mo. App. 480, 1907 Mo. App. LEXIS 524 (Mo. Ct. App. 1907).

Opinion

GOODE, J.

This action was instituted by plaintiff to recover a salary alleged to be due him from the defendant for a year’s employment. The contract of employment relied on was in a writing, dated December 12, 1902, signed by the plaintiff for himself and by the defendant company by “E. P. Watrous, Manager,” and witnessed by Dwight D. Johnson. At the time the writing was signed plaintiff resided in the city of Terrell, Texas, and was connected with a hardware business there. The contract provided, in substance, that the defendant company employed Raike, in the “capacity of a special agent” for one year, beginning January 15th, 1903, to introduce and sell a line of goods manufactured by defendant. The territory in which plaintiff was to operate was stated to comprise the principal part of Texas and part of the Indian territory, with a privilege [482]*482to the company, if deemed expedient, to send him into other territory on trips, “for instance, through the Republic of Mexico, and other territory of the southwest.” Plaintiff was accorded the privilege of carrying any “sidelines” of goods not in competition with defendant’s, with the understanding that the profits from the sale of such sidelines should be exclusively his own. The company was to pay plaintiff a fixed salary of $1,200 a year, and in addition thereto an alloAvance of $1,200! It was provided that these sums were to be paid in installments of $200 on the first of each month, and, further, that when the sales of goods of the defendant company became so large that the profits offset the expenses of the agency, namely, $2400, the net profits in excess of said figure should be equally divided between the parties. It was further provided that if plaintiff desired to take a vacation of two weeks during the summer, he might do so without a suspension of salary and expenses. Plaintiff agreed to devote his time first, to pushing the sale of the defendant company’s goods and not to carry any side line of goods that AArould conflict or naturally come in competition Avith that of defendant. At the time this contract was entered into, Watrous, who signed it as manager, in behalf of the defendant company, was an agent of the defendant in charge of its office or store in St. Louis, under the follOAving contract:

“New York, October 1st, 1902.

“Memorandum of Agreement between the Manhattan Rubber Manufacturing Company, of 18 Vesey street, New York City, N. Y., and E. P. Watrous of Chicago, Illinois.

Salary and Commission.

“The Manhattan Rubber Manufacturing Company agree to employ E. P. Watrous as manager of their St. Louis store for a salary of $2,500 per year, payable in equal monthly installments, and a commission of two per cent on the gross sales of the St. Louis store, includ[483]*483ing purchased goods. This two per cent commission to be payable monthly as soon after the end of each month as the sales can be made up.

Territory.

“Territory to be as per the Chicago & Alton Railway Company’s map enclosed, copy of which we have kept here. The line in Mississippi is drawn north, not including Vicksburg, Jackson and Meridian, which points are covered by Messrs. Whitney & Sloo Company, Ltd.

“E. P. Watrous in return for said salary and commission agrees to devote all his time and energies to the business of the Manhattan Rubber Manufacturing Company, and not to engage in any outside business without their full consent.

Expiration.

“This agreement to expire October 1, 1904, and to continue in force thereafter until either party to this agreement gives to the other sixty (60) days notice in writing of their desire to terminate it.

“The Manhattan Rubber Manufacturing Co.,

“A. P. Townsend, Vice-President.”

It should be observed that the contract of employment which is the basis of plaintiff’s suit, provided that his services should begin January 15,1903. As soon asthe general officers of the defendant company learned of this contract, they repudiated it as having been executed by Watrous without authority. The repudiation occurred January 7, 1903. E. M. Henderson, who was the treasurer of the company, had gone to St. Louis to examine and check up the business in charge of Watrous at that point, and while doing so found the agreement with plaintiff. Henderson at once wrote plaintiff under date of January 7, 1903, that Watrous had no authority to make the contract; that the Manhattan Rubber Company would in nowise recognize the contract; that plaintiff was not employed by said company and had no con[484]*484nection with' it, and that Watrous was no longer in the employ of the company. Watrous was discharged from the service of the company by Henderson on the latter’s visit to St. Louis. The defense is that the contract with plaintiff was outside the scope of Watrous’ authority as manager of the St. Louis store. Plaintiff testified that after the contract was executed and prior to January 15, 1903, when his work under it was to begin, he had closed out his hardware business in Terrell, arranged for samples of sidelines and prepared in every way, at a considerable sacrifice,' to carry out his agreement with the defendant company. Further, that this happened before he was notified the company had repudiated his employment. Plaintiff travelled during the ensuing year, selling goods for other houses under his authority to handle sidelines of goods. He demanded samples from the defendant and offered to carry out his contract with it, but defendant did not furnish him samples or recognize him as in its service. Each month, too, he drew on the company for his salary and the additional sum of $100 a month, which he claimed to.be entitled to under the contract; but those drafts were dishonored. After-wards he instituted the present action to recover the entire sum to be paid under the contract, to-wit: $2,400. It is necessary to state the evidence relied on to show authority, or the appearance of it, in Watrous to make the contract. On this issue the contract, by which Watrous was employed by the company as manager of the St. Louis store, was put in evidence, and it was further proved that the Indian Territory and Texas were included in the territory of the St. Louis branch of defendant’s business. The so-called store in St. Louis was not a retail establishment, but a general headquarters from which was developed a trade for defendant throughout a large area; Texas, Arkansas, Indian Territory, Missouri, Southern Illinois, part of Indiana, Western Kentucky and Northern Louisiana and [485]*485Mississippi. This territory was under the supervision and management of the St. Louis store of which Watrous, at the time the contract in question was made, was in charge. It was proved further that Watrous had employed other salesmen who traveled in said territory; that these employments were made by Watrous without previous special authority from the general officers of the company; that such contracts were recognized as being within the sphere of Watrous’ duties, and that when a person applied at the New York office for employment within Watrous’ territory, one of the chief officers would refer the applicant to Watrous. It further appeared that the company had not repudiated any of the other contracts of employment by Watrous, but had recognized them and paid the stipulated salaries.

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Bluebook (online)
105 S.W. 1100, 127 Mo. App. 480, 1907 Mo. App. LEXIS 524, Counsel Stack Legal Research, https://law.counselstack.com/opinion/raike-v-manhattan-rubber-manufacturing-co-moctapp-1907.