Reynolds Card Manuf'g Co. v. New York Bank-Note Co.

36 N.Y.S. 756, 98 N.Y. Sup. Ct. 463, 71 N.Y. St. Rep. 687, 91 Hun 463
CourtNew York Supreme Court
DecidedDecember 18, 1895
StatusPublished

This text of 36 N.Y.S. 756 (Reynolds Card Manuf'g Co. v. New York Bank-Note Co.) is published on Counsel Stack Legal Research, covering New York Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Reynolds Card Manuf'g Co. v. New York Bank-Note Co., 36 N.Y.S. 756, 98 N.Y. Sup. Ct. 463, 71 N.Y. St. Rep. 687, 91 Hun 463 (N.Y. Super. Ct. 1895).

Opinion

FOLLETT, J.

This action was begun December 24, 1892, to recover the price of paner sold, and damages for the breach of an executory contract to purchase paper. As a first cause of action, it is alleged that between April 4 and July 19,1892, the plaintiff sold and delivered to the defendant paper of the value, and at the agreed price, of $415.29. As a second cause of action, it is alleged that by an executory contract, made September 1, 1887, the plaintiff agreed [757]*757to sell and deliver, and the defendant to purchase, 1,000 tons of paper, to be delivered at the rate of 20 tons per month, for which the defendant agreed to pay $85 per ton, which was to be manufactured by the defendant into tickets for the elevated railroads. It is further alleged that the defendant agreed to return to the plaintiff the used tickets manufactured from such paper, for which the plaintiff agreed to pay $15 per ton. As a breach of this contract, it is alleged that, after receiving 226 tons of paper, the defendant refused to receive the remainder, 774 tons. It is also alleged that the plaintiff’s damage is the difference between the contract price, $85 per ton, and the market value, $55 per ton, or $30 per ton on 774 tons, which equals $23,220, and also the difference between the contract price of used tickets, at $15 per ton, and the actual value of used tickets, at $21 per ton, being $6 per ton on 774 tons, which equals $4,644; making the alleged total damages sustained $27,864. In the complaint it is alleged that 224 tons were delivered, and in the bill of particulars that 226 tons were delivered. We assume that the number of tons stated in the bill of particulars is correct, as it corresponds with the amount of damages claimed. The defendant admits in its answer that it purchased paper of the quantity, value, and agreed price, as alleged in the first cause of action, and that it had not paid therefor. The defendant, in its answer, denied that it contracted to purchase 1,000 tons of paper, but admitted that it received from the plaintiff 226 ton's of paper, but not pursuant to the contract alleged in the complaint. By way of counterclaim, it is alleged that the plaintiff purchased and received used tickets of the value of $470.61, but it had refused to receive and pay for a large amount of canceled tickets, to the defendant’s damage of $1,-000, which, added to the $470.61, makes $1,470.61 damages, set up as a counterclaim, and for which an affirmative judgment is demanded. The plaintiff, in its reply, admitted that it had received used tickets, as alleged in the answer, but denied that it had contracted to purchase any used tickets except those manufactured from paper furnished by the plaintiff, and that, defendant having refused to receive plaintiff’s paper, it was under no obligation to purchase and pay for canceled tickets manufactured from other paper. The issues thus joined were tried before a jury, which rendered a verdict for $27,000. From this judgment the defendant appealed.

When the plaintiff rested, and again at the close of the case, the defendant moved that the complaint be dismissed as to the second cause of action, on the ground that sufficient facts had not been proved to constitute a cause of action, and also upon 19 other grounds, which it does not seem necessary here to repeat. At the close of the evidence, the defendant also asked the court to direct a verdict in its favor, which was denied, and an exception taken.

The defendant produced and read in evidence the following, among other, correspondence which passed between the litigants:

“Feby. 8, 1888.
“N. Y. Bank Note Co.—Gentlemen: We will make you 1,000 tons of paper, same as Elevated paper, at same price, to be delivered over a period of five [758]*758years from date. This proposition is made on the express condition that you will take from us. twenty-five tons at any time on sixty days’ notice, which we will carry in stock for you, which is the limit of your liability.
“Reynolds Card Mfg. Co.
“Geo. B. Schinzel, Pres.” “February 8th, 1888.
“George P. Schinzel, President—My Dear Sir: We hereby order of you 1,000 tons of Manhattan Elevated ticket paper, subject to the following conditions: Paper to be web, width as required, color and quality subject to my approval, weight 80 pounds to 500 sheets of 22x28 inches, price four and one quarter cents a pound, cash 10 days, deliveries for five years, 20 tons a month, or less, as the Bank-Note Co. may require; thereafter what they may require, unless Manhattan contract renewed, in which event same as before end of five years. You to buy all Manhattan waste at 15.00 per ton, and to carry always in stock 60 days’ supply of paper, namely, 25 to 40 tons, which you can deliver any time on 60 days’ notice, and cancel balance of this order; and we can, as limit of our liability, take your stock on hand on 60 days’ notice. It is understood that Manhattan requires less than 10 tons a month. This letter is given you to copy out into formal shape, of even date herewith, and. in accordance with your written acceptance of to-day.
“Yours, truly, The New York Bank-Note Go.,
“George H. Kendall, Treasurer.”

' The plaintiff testified that, pursuant to the last clause of the letter signed by the defendant, a written contract was prepared, and signed by both parties, by which the defendant agreed to purchase 1,000 tons of paper, at $85 per ton, and agreed to sell to the plaintiff the canceled tickets manufactured from such paper for $15 per ton. It is conceded that in 1888 the defendant issued a portfolio for circulation among its customers, on the cover of which the following was printed:

[Vignette.]
M’ss'rs New York Bank Note Co.
Your order for 1.000 tons Ticket Paper at hand. This being the second time you have favored us with the largest order of its kind ever given in the" history of the world, it is doubly prized and will receive our best attention.
REYNOLDS CARD MFG. CO.
New York.
New York Bank-Note Co.
The prompt and satisfactory delivery by you of our first One Hundred Millions of Tickets convinces us that you have unparallelled facilities for this work and that you will succeed as well in the execution of the balance of our total order of One Billion. MANHATTAN ELEVATED . R. R.
CO., O. P. McFADDEN, G. T. A.

The defendant insists that this is not evidence of a contract, because, at the time, the plaintiff’s president signed the following statement:

“The filling in of the above signature is authorized by me, and in accordance with my request to have this letter used as an advertisement, and said letter is of that significance only. There is no contract.
“[Signed] Geo. P. Schinzel, Pres.”

The plaintiff’s president denies that he ever signed such a paper, and characterizes it as a forgery. It seems rather unnatural that at this time, when the president of the plaintiff and the officers of the defendant were friends, and having large transactions, a statement in writing of this kind should have been taken.

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Bluebook (online)
36 N.Y.S. 756, 98 N.Y. Sup. Ct. 463, 71 N.Y. St. Rep. 687, 91 Hun 463, Counsel Stack Legal Research, https://law.counselstack.com/opinion/reynolds-card-manufg-co-v-new-york-bank-note-co-nysupct-1895.