State v. Blake

105 P. 910, 36 Utah 605, 1909 Utah LEXIS 94
Utah Supreme Court·Decided November 29, 1909·No. No. 2087·Published·Cited by 1 cases

Opinion

STRAUP, C. J.

The defendant was charged with and convicted of criminal conspiracy. In the information it is alleged that the defendant and William A. Brittain conspired together to defraud and cheat E. A. Horn of real estate of the value of fifteen hundred' dollars and to obtain it by false pretenses, by falsely and fraudulently representing to Horn that 6250 shares of the capital stock of the Galiher Mining &' Milling Company were of the value of fifteen hundred dollars, thereby inducing and persuading Horn to convey the real property to Blake in exchange for the stock, which was worthless. To this information the defendant filed a general demurrer, which was overruled.

The evidence on the part of the state shows that on the 20th day of November, 1908, W. L. Johnston, at San Francisco!, Cal., wrote to Horn at Independence, Utah, to the effect that Blake, who lived at Ft. Duchesne, Utah, had something like six thousand shares of stock of the Galiher Mining Company, whose property was located in the state of Washington, and that the property was good; that he tried toi get Blake to place a price upon the stock, but that Blake had [607] failed to do so. Horn was thereupon requested to see Blake and purchase the stock from him for a price under fifty cents a share, and that Johnston would give Horn fifty cents a share for it, and that Horn could keep whatever profit was made in the transaction. Horn was urged to act promptly in the matter as Blake did not know the real value of the stock. He wrote him, “If you can possibly do so, see him at once. Do not give him time to find out anything about it; in other words, take him upon snap judgment.” A few days-after the receipt of this letter, Horn called on Blake, and said to him that he (Horn) had some mining stock that he would like to sell him. Blake replied that he was not buying any stock, and that he would rather sell the little that he had. In response to questions asked him by Horn, Blake said that he had stock of the Galiher Mining Company, that the company had twenty-one patented claims, a thirty ton mill, and everything paid for from ores taken out; that no dividends had been paid, and for tha-t reason he could not afford to keep the stock and wanted to sell it, and that he would take thirty cents a share for it. He further told him that the ore ran very high in copper, and that the property ■was within six miles of a railroad. Horn told him that he did not have any money to put in mining stocks, but that he had some real estate near Theodore which he might trade for the stock. A day or two after that, Blake saw the real estate, and, through negotiations had between them, Horn conveyed the real estate to Blake in exchange for the 6250 shares of stock. On D'ecember 4th,- Johnston wrote another letter to Horn in response to a letter which Horn had written to him, stating that he expected to leave for Portland to close a deal which would net him seven thousand dollars, but that he might not get the cash for thirty or sixty days, and expressed a.hope that Horn had secured the stock, and if he was obliged to hold it he would pay him “interest on the same.” On December 14th, Johnston again wrote Horn notifying him that he had purchased all the stock he was able to pay for at the rate of forty-seven cents per share, and that it was impossible for him to handle any more of [608] the stock just then, but that he would do so a little later on;'that the stock was good and the price advancing, and if he had the means he would purchase all the stock at the price quoted in the former letters. Horn then wrote to the mining company at Cle Elum, Wash., inquiring about the financial condition of the company, and the value of the stock. On the 20th day of January the secretary of the company wrote Horn to the effect that the company was in bad shape financially, and that he was sorry that any one had misrepresented conditions in order to sell the stock; that the indebtedness of the company was in the neighborhood of $16,-000; that the capacity of the five-stamp mill was about, fifteen tons daily; that when copper was worth twenty-four or twenty-five cents a pound some profit was made in the operation, but that no profit as to be made at the then price of copper with the mill situated as it was twenty-five miles from transportation; that there was very little money received by the company during the last two years, and that a few of them had been carrying things along in the hope that some turn might be made to get enough money to put the mine upon a paying basis; that those most intimate with the property had every faith in its becoming a large producer, but they were men of limited means and could' not afford to longer put up any mox-e money; that the assessment work, which amounted to $2600 a year, had been done up to date, but labor had only been partially paid for; that the company was owing other debts and' obligations and that the property was then in the hands of a receiver; and that, under the circumstances, the stock had no value. He, however, expressed the usual optimistic miner’s hope that some plan might yet be perfected whereby the indebtedness could be cleared up, a forced sale prevented, the rights of the stockholders preserved, and “the valuable property” of the company saved. All of these letters were admitted in evidence over the objections of the defendant.

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State v. Blake, 105 P. 910, 36 Utah 605, 1909 Utah LEXIS 94 (Utah 1909).

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