Seddon v. Holbrook-Blackwelder Real Estate Trust Co.

123 S.W. 994, 146 Mo. App. 126, 1909 Mo. App. LEXIS 435
CourtMissouri Court of Appeals
DecidedDecember 14, 1909
StatusPublished

This text of 123 S.W. 994 (Seddon v. Holbrook-Blackwelder Real Estate Trust 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
Seddon v. Holbrook-Blackwelder Real Estate Trust Co., 123 S.W. 994, 146 Mo. App. 126, 1909 Mo. App. LEXIS 435 (Mo. Ct. App. 1909).

Opinion

REYNOLDS, P. J.

This is a suit to enjoin the defendants from using or disposing of, and requiring them to deliver up to plaintiff, certain plans, drawings and specifications made and delivered by plaintiff to defendants under the terms of a written contract looking to the execution of a scheme originated by plaintiff for the construction of a dam, canal and power plant on the Mississippi River, St. Louis. The statement of the pleadings prepared by counsel for appellant is as follows:

“Plaintiff’s petition states, in substance, that plaintiff originated a scheme for erecting across the Mississippi river, near the Chain of Rocks, at St. Louis, a dam with necessary embankments and a ship canal and power plant; that on October 18, 1904, plaintiff entered into a written contract with Holbrook-Blackwelder Real Estate Trust Co., one of the defendants herein, by the terms of which the trust company undertook to organize a corporation for the promoting of plaintiff’s scheme, and $4900 was to be paid in cash into the treasury of the company to be used in preparing working plans and specifications and details for the dam, etc., and necessary engineering work incident to the proposition ; that the four directors of the corporation should be plaintiff and defendants Holbrook, Blackwelder and Taussig; that when the corporation was formed and the $4900 paid in, plaintiff should transfer to the corporation his scheme, invention and all patents pertaining thereto, which he might have, in consideration of $5100 of the capital stock of the company, of which $2500 should be issued to plaintiff, $1300 to the trust company, and $1300 to defendant Taussig; that when the corporation had been formed and the scheme assigned, plaintiff should then proceed to prepare working plans, specifications, and details, and all expenses incident thereto should be paid by this corporation, known as the promoting company, which expenses should not exceed $4900; that plaintiff should receive for his services in this work $1000, of which $500 should be paid when [128]*128the corporation was organized, and the $4900 paid in to the company, and plaintiff should receive the other $500 when the plans were completed; that plaintiff should, when the promoting company was formed and the $4900 paid in, join the promoting company in the execution of a contract whereby it would be agreed that when the plans had been prepared, the promoting company should take bids for the construction of the dam, canal and power plant, and after the bids had been received, the promoting company would incorporate another corporation to be known as the power company, which latter corporation should undertake to obtain from the United States Government permission to construct the dam, canal and power plant, and would further undertake .to provide means wherewith to construct the same; that when this power company had been incorporated, the promoting company should transfer to it, the terms to be agreed, said scheme for constructing the dam, canal and power plant, and all other property of the promoting company, upon the express agreement that plaintiff be employed as chief engineer of the power company, on a salary of $500 per month from the day of the transfer to the power company until the power company should get authority to construct the dam, and from that time to the completion of the work, at the rate of $1000 per month; that as soon as all of the capital stock of the promoting company is issued the $5100 of said stock issued in consideration of plaintiff’s scheme as aforesaid shall be cancelled and reissued in the name of the trust company as trustee under a voting trust agreement; that in case the trust company failed for thirty days after the date of said contract.to secure subscriptions to the amount of $4900 in cash, or should fail to incorporate the promoting company, then said contract should be null and void; that later, and on November 5, 1904, plaintiff made a supplementary agreement with the trust company whereby, of the $2500 of the stock to which he [129]*129was entitled under the original agreement, $833.33 should be issued to the trust company for use by it in enlisting additional persons in the enterprise, but the other terms of the original agreement to remain in force, except that the time for carrying out the agreement should be extended to December 1, 1904.
“The petition further states that the trust company represented to plaintiff that the $4900 of th<j promoting company stock had been subscribed and paid in in cash, and that on December 24,1904, plaintiff, relying on said representations, executed jointly with defendants Holbrook, Blackwelder and Taussig and others, articles of association for the formation of a corporation under the laws of the State of Missouri, to be known as the Hydraulic Power, Bridge & Construction Company, with a capital of $10,000, in which articles of association it was stated that the capital stock was fully paid in cash, and in the hands of the persons signing the articles of association; that when plaintiff signed said articles of association, he was informed by defendant Holbrook, who was also president of the trust company, that said sum of $4900 in cash was actually in the hands of said Holbrook; that plaintiff then proposed and intended to convey to said corporation thus organized, the property belonging to him as provided and described in said Avritten contract in payment of the $5100 of stock in said corporation on the delivery to him of the shares, as agreed, for that amount of said capital stock; that the articles of association of said corporation were duly recorded and a certificate of incorporation was issued by the Secretary of State of Missouri; that after the execution of said written contract, and for the purpose of enabling them to carry out the same, he delivered to defendants a preliminary report in Avriting of general plans and documents bearing on the subject; that afterAvards relying on the statements of said trust company and Holbrook that the $4900' had been paid in cash, [130]

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Bluebook (online)
123 S.W. 994, 146 Mo. App. 126, 1909 Mo. App. LEXIS 435, Counsel Stack Legal Research, https://law.counselstack.com/opinion/seddon-v-holbrook-blackwelder-real-estate-trust-co-moctapp-1909.