State v. Gripp

226 N.W. 16, 208 Iowa 1143
CourtSupreme Court of Iowa
DecidedJune 24, 1929
DocketNo. 37819.
StatusPublished

This text of 226 N.W. 16 (State v. Gripp) is published on Counsel Stack Legal Research, covering Supreme Court of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State v. Gripp, 226 N.W. 16, 208 Iowa 1143 (iowa 1929).

Opinion

Kindig, J.

A grand jury of Union County indicted the defendant-appellant for embezzlement, October 28, 1925. It is charged by the State that the appellant came into possession of the money thus wrongfully appropriated, through an agency. In that relationship, the appellant was the agent, and Mary L. Longstreth was the principal. On February 24, 1926, the appellant was convicted, as charged, and on February 26th thereafter, he was sentenced. Appellant presents three propositions as the basis for a new trial. They are, generally speaking, insufficiency of the evidence, an erroneous instruction, and the mis-' conduct of a juror.

• I. Was a jury question presented? An answer for that interrogatory must be found in a review of the facts. The prose *1145 cuting witness was the mother of two children, who, at the time in question, were state university students at Iowa City. Said prosecuting witness, in April, 1924, deemed it necessary to pro-, cure a loan upon her farm, for the purpose of supporting her children at Iowa City. She therefore employed appellant (who had a loan office at Afton, but had formerly also maintained offices at Omaha, Nebraska, and Osage, Wyoming, where he handled oil leases), to secure such loan in the amount of six or seven thousand dollars, according to the needs. AVith the intention of consulting her children concerning the money needed, the prosecuting witness went to the depot at Afton, in order to board a train for Iowa City, when she was met by the appellant. Concerning what was said and done there, the prosecuting witness said:

“Gripp [the appellant] told me there [at the depot] that I could have the loan for either six or seven thousand dollars at 51/2 per cent; that I didn’t need to wait until I came back to sign up. I was to pay him 2 per cent commission.”

Thereupon, the prosecuting witness signed a written application for a loan, as suggested by the appellant. This application was partly in blank. According to the prosecuting witness, it contained no typewritten matter relating to a trust fund when she affixed her name thereto; while, on the other hand, the appellant insists that the instrument embraced the trustee clause at the time. Such controverted provision reads as follows:

“Papers drawn $7,000, which may stand, and if the other $1,000 is desired it may be had. This is to be trusteed and the borrower to pay no interest on it [the $1,000] until she wants it.”

Around this dispute the storm of the contest centers. Finally it was decided that the loan should be for $7,000, and it was procured through the Travelers Insurance Company. Gripp, the appellant, received the proceeds from the Travelers Insurance Company by two drafts, — one for $4,500, dated May 21, 1924, and the other in the sum of $2,449.25, dated July 10th of the same year. These drafts were both cashed by the appellant on or about that time. AVhen the two drafts are added together, it is found that the aggregate is $6,949.25. But the difference between that sum and the $7,000 loan is accounted for because Mr. *1146 Adams, who was the agent for the Travelers Insurance Company, made a deduction for his own commission. All the remainder came into the possession of appellant, through the agency agreement with the prosecuting witness. Apparently the real estate was incumbered by two mortgages, together approximating $4,500, at the time the loan in controversy was closed. That sum was paid by appellant, at the request of the prosecuting witness. Moreover, appellant paid for her approximately $100 taxes and some insurance premiums.

However, all the remaining moneys due under that loan transaction were retained by appellant. From time to time, the prosecuting witness made known to him her financial needs. So, upon each occasion, the appellant would pretend to advance her certain sums, with the alleged explanation that the loan had not yet been closed. Nevertheless, as a matter of fact, as shown above, appellant did have the money in his possession, and the transaction had been consummated with the loan company. Frequently, small sums were thus purported to have been advanced by the defendant to the prosecuting witness. Being ignorant of the true situation, the prosecuting witness believed the appellant until January or February, 1925, when she consulted a banker at Iowa City, and then proceeded home, where she conferred with her attorney, Mr. L. J. Camp. He attempted to collect the balance due at that time, which the appellant conceded to be $1, 217.88. Through the efforts of Mr. Camp, an additional $300 was collected from the appellant. About that occasion Mr. Camp testified:

“He [appellant] said he had been out all day, trying to raise some money. Said he would get the rest of the money and pay it as fast as he could get it. He said, if I would let him stay out of jail, he would pay all of it.”

A significant circumstance at this juncture is the fact that, during all the attempts made by Mr. Camp to obtain from the appellant the money due the prosecuting witness, it was never claimed that there was any trust agreement with her. First the prosecuting witness herself, and later her attorney, made repeated demands upon the appellant for this money; and during all that period it was not suggested by the latter that he was prevented from paying, or protected in his retention of the money *1147 required, because of any trust agreement. Subsequently, when the defendant did not pay, the prosecuting witness, on April 29, 1925, swore out a preliminary information against him, under which he was arrested. Thereafter, on the date previously mentioned, the indictment was returned.

To offset the testimony of the State, the appellant testified, and produced other witnesses. Hence, there was conflicting evidence. Underlying the defense, however, is the aforesaid trustee clause. Giving that provision its full significance, it will be seen that there is nothing therein to indicate that the prosecuting witness was not to have her money whenever she demanded it. Miss Mateer, a stenographer for appellant, testified:

“She [the prosecuting witness] said, ‘I don’t need all the money, Mr. Gripp [appellant] ; that is more than I need, and I will need it a year from now, when the children graduate. ’ And Mr. Gripp says, ‘Mrs. Longstreth [the prosecuting witness], I can use the money, and pay you interest on it yearly, so there will be no extra interest for you to pay. ’ That was the oral agreement. ’'

Obviously, then, even appellant is not relying upon the so-called trustee clause, in and of itself, for protection, but is attempting in his defense to add thereto by oral testimony, and show a verbal agreement between himself and the prosecuting witness, whoreunder he was to have the loan of that money for one year. Every claim and contention of appellant’s is contradicted by the prosecuting witness, the acts and conduct of the appellant himself, and the circumstances surrounding the transaction. Manifestly, the alleged trustee clause and oral agreement were not mentioned to the prosecuting witness during the long period of time she was making demands for her money. Rather than that, appellant deceived the prosecuting witness by causing her to believe that the loan had not yet been closed.

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Bluebook (online)
226 N.W. 16, 208 Iowa 1143, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-v-gripp-iowa-1929.