Roseneau v. Empire Circuit Co.

131 A.D. 429, 115 N.Y.S. 511, 1909 N.Y. App. Div. LEXIS 831
CourtAppellate Division of the Supreme Court of the State of New York
DecidedMarch 3, 1909
StatusPublished
Cited by11 cases

This text of 131 A.D. 429 (Roseneau v. Empire Circuit Co.) is published on Counsel Stack Legal Research, covering Appellate Division of the Supreme Court of the State of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Roseneau v. Empire Circuit Co., 131 A.D. 429, 115 N.Y.S. 511, 1909 N.Y. App. Div. LEXIS 831 (N.Y. Ct. App. 1909).

Opinions

McLennan, P. J.:

The Court Street Theatre .Company, of which the plaintiff is receiver,, is a 'domestic corporation.

From the time of its incorporation in the year 1895 until the 17th'day of March, 1902, when the plaintiff was appointed receiver of said company, it, as lessee, was engaged in the .city of Buffalo, 27. Y., in conducting the Court Street Theatre so called. Said company played and conducted at said theatre' burlesque performances only and during the time mentioned had practically no competitor in such city. Its business was run at a large profit and it had established the valuable reputation of being the leading and only burlesque theatre in the city of. Buffalo.

The defendant, The Empire Circuit Company, is a foreign corporation, organized about the year 1900 under the laws of the State of Ohio, having its principal office and place of business in Cincinnati. At all the times in question its business was conducted by a board of nine directors, among whom were the defendants Kernan and Rife. Each of the directors of said defendant company was the owner, lessee or controlled one or more burlesque theatres, so called, and which were devoted exclusively to the accommodation of burlesque shows dr attractions. The stock of such company was owned by the directors in proportion to the number of theatres which they respectively owned, leased or controlled, and the business of such company was to contract with the persons, firms or corporations owning or controlling burlesque shows or attractions to play in its theatres, to the end that all of such theatres might be continuously occupied, or as nearly so as possible, during any theatrical season.

The theatres owned, leased or controlled by the several directors of the defendant company were located in the cities of St. Louis, Kansas City,. Indianapolis, Louisville, Pittsburg, Cleveland, Cincinnati, Washington, Baltimore and the city of Buffalo, only one of such theatres being located in each of said cities.

[431]*431As stated in respondents’ brief : “ The theatres managed by The Empire Company were the principal burlesque theatres in the cities in which they were located.”

There were practically only forty-one burlesque shows or attractions in the middle and eastern parts of the United States which were suitable to be given or played in the defendant company’s, theatres or in the Court Street Theatre.

It appears that said forty-one burlesque shows or attractions were not more than was reasonably necessary to supply the defendant company’s theatres with suitable attractions'. That being the situation the defendant company resolved that it would not book any burlesque show or attraction to play in its theatres except upon condition that the owners of such burlesque shows or attractions would agree not to play in any theatres other than those owned, leased or controlled by it, and pursuant to such resolution each of the owners of or persons controlling such burlesque shows or attractions were notified, in effect, that if they gave their shows or played in any theatre not owned or controlled by the defendant company they would not be permitted to give their shows in the theatres owned by it. As a result of such resolution and notice the owners of practically all of such burlesque shows or attractions voluntarily decided to show or play only in the theatres of the defendant company, and it appears that nineteen or twenty of such owners had contracted with the Court Street Theatre Company to play in its theatre, but because of the action taken by the defendant company and the defendants Kern an and Rife, each and all of such contracts were canceled, with the result that the Court Street Theatre Company, of which the plaintiff is receiver, could not obtain any suitable attractions to play in its theatre and, therefore, financial loss resulted to it.

We may assume, at least there is evidence to support the conclusion, that the defendants knew or had reason to believe that if the plan adopted by them was carried out and acceded to by a considerable number of the owners of the burlesque shows financial loss would result to the plaintiff, and that it would be difficult, if not impossible, for it to secure suitable attractions to play in the Court Street Theatre. All other burlesque theatres which were not included in the defendants’ list would experience a like difficulty.

[432]*432It is practically conceded that the method of doing business adopted by the defendants was of very great advantage to them and also to the owners of the burlesque shows or attractions. The burlesque shows or attractions were thus enabled to be booked in advance and to follow the circuit, so called, of theatres owned or controlled by the defendants, which, as we have seen, comprised the • principal burlesque theatres in the middle and eastern parts of the United States. Any one of such shows or attractions could be given in Washington or Baltimore and then in all the theatres owned'by the defendant company in regular order, thereby avoiding unnecessary travel and the expense incident thereto, and the theatres owned by the defendants were thereby assured of having their theatres continuously filled during any theatrical season. Before such plan was devised it was common for a burlesque show to be booked in a western city for one week, then in an eastern city for another week, then be obliged to return to a western city, and so the company was compelled to travel long distances, thereby incurring large expense in order to keep their engagements. It was also true that such theatres as afterwards were included in the defendant company were often closed because burlesque attractions could not be secured on account of the lack of method which prevailed. To meet that difficulty the defendant company was formed, • its prime purpose and intent being to provide its theatres constantly with shows and at the same time to enable the owners of the burlesque shows or attractions to keep their companies constantly employed after they had started upon the road, and so without incurring the expense of traveling a long distance to meet and keep their respective engagements.

The .defendant company was an important corporation. When organized it was authorized to issue capital stock to the amount of $50,000, which it did, and such stock was practically all taken at its par value by the owners of the theatres which it controlled. Its business, from the outset, was successful and profitable, because, as we may assume, of the plan adopted by it which brought it and the owners of the theatres which it represented into harmonious relations with the owners of the principal burlesque shows or attractions, enabling them to give such shows at the minimum of expense. We conclude that the purpose and object of the defendants in the [433]*433premises was legal, and that they had a perfect legal right to adopt and carry out the plan which they did in order to accomplish such purpose, notwithstanding it resulted in financial loss to the plaintiff’s company and prevented it from procuring suitable attractions for the Court Street Theatre. The evidence does not support the conclusion that the defendant corporation was organized and its method of doing business adopted because of malice which it entertained toward the plaintiff company or toward its' principal owner, and there is no evidence from which it can be fairly concluded that the chief purpose which the defendants had in view was to ruin and destroy the business of the plaintiff’s company.

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Bluebook (online)
131 A.D. 429, 115 N.Y.S. 511, 1909 N.Y. App. Div. LEXIS 831, Counsel Stack Legal Research, https://law.counselstack.com/opinion/roseneau-v-empire-circuit-co-nyappdiv-1909.