State v. Kiewel

217 N.W. 598, 173 Minn. 473, 1928 Minn. LEXIS 1038
CourtSupreme Court of Minnesota
DecidedFebruary 3, 1928
DocketNo. 26,349.
StatusPublished
Cited by10 cases

This text of 217 N.W. 598 (State v. Kiewel) is published on Counsel Stack Legal Research, covering Supreme Court of Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State v. Kiewel, 217 N.W. 598, 173 Minn. 473, 1928 Minn. LEXIS 1038 (Mich. 1928).

Opinion

Taylor, C.

Defendant was convicted of embezzlement constituting the statutory crime of grand larceny in the first degree, and appealed from, the judgment and also from an order denying a new trial.

In July, 1920, The Fergus Packing Company, which had been engaged in the meat packing business at the city of Fergus Falls for many years, sold its business and plant to the Fergus Co-operative Packing Company. Defendant had been the m.anager of the old company j and the new company, on taking over the business, engaged him to continue as manager. He was given full charge *475 and control of the business, and managed and conducted it until the investigation about to be mentioned.

In 1923 many of the stockholders became dissatisfied with his management, and at a meeting of stockholders held December 4, 1923, a committee was appointed to have the books audited and to report on the management of the plant and the advisability of securing a new manager. The committee employed expert accountants who began work on the books December 12, 1923. Early in the investigation facts developed which seemed to indicate that certain items of property had been disposed of Avithout entering the transaction on the books or giving the company credit for the proceeds. Pursuant to a request to explain these matters, defendant met with the auditors, the investigating committee, and the president, secretary and attorney of the company at the Kaddatz Hotel in Fergus Falls on the morning of December 22, 1923. He was asked about these several items and asserted that everything was on the books. One of these items AA^as a shipment of lard or grease which the auditors had found on the records of the railroad company but not on the books of the packing company. Defendant insisted that it was on the books and went with the auditors to the plant to find it for them. He found the record of a shipment of lard, but not of the shipment in question.

It was arranged that he should go to the railroad office with one of the auditors after lunch and look up this shipment. As they started for the railroad office after lunch, he asked the auditor if he was looking for a carload of grease. On being answered in the affirmative, defendant said he had that car and would explain everything. They turned back, and the others were notified and all reassembled in the office of the attorney of the company over the Fergus Falls National Bank. The company did its banking business with that bank and had a safety deposit box in the bank vault to which defendant carried the key.

When they were assembled, he went doAvn to the bank and came back with four sets of papers relating to four shipments of grease to D. Bergman & Company of St. Paul Avhich he turned over to the representatives of the company. A certificate of deposit or cashier’s *476 check for the amount-received for the shipment was included in each set, and these are designated in the record as exhibits A-l, B-l, 0-1, and D-l, respectively. D. Bergman & Company had paid for these shipments by checks payable to the packing company. Defendant had indorsed each of these checks in the name of the packing company “by J. R. Kiewel.” The check for the first shipment was issued December 7, 1921, for $1,372.96. Defendant deposited it-in the American National-Bank of St. Paul, February 28, 1922, and took a certificate of deposit therefor payable to himself. A year later he returned this certificate and received a renewal certificate for the amount with interest added, which is exhibit A-l turned over to the packing company. The check for the second shipment was issued 'September 20, 1922, for $1,540.16. Defendant deposited this check in the First State Bank of Fergus Falls October 22, 1922, and took therefor a cashier’s check payable to himself, which is exhibit B-l turned over to the packing company. The check for the third shipment was issued. January 17, 1923, for $520.89. Defendant deposited this check in the American State Bank of Fergus Falls February 13, 1923, and received the cash therefor. On December 18, 1923, six days after the investigation started, he procured a certificate of deposit for that amount from the First State Bank of Fergus Falls, which is exhibit C-l turned over to the packing company. The check for the fourth shipment was issued March 24, 1923, for $445.79. Defendant deposited this check in the American National Bank of St. Paul April 17, 1923, and received therefor either cash or a cashier’s check payable to himself. On June 15, 1923, he procured a certificate of deposit for the amount from the Farmers & Merchants State Bank of Fergus. Falls, payable to himself, which is exhibit D-l turned over to the packing company. The packing company did no business with any of the banks with which these transactions were had.

Those present testify to the effect that when defendant turned over these papers he admitted that he had taken the proceeds of these shipments, but claimed that that was all he had taken and that he had not sufficient nerve to spend the money after taking it, and asked them to be as lenient with him as they could. He asked *477 them riot to notify the bonding company. They answered that they did not know what shortages might be found, and that it was necessary to notify the bonding company in order to keep the bond in force. He assured them that he would make good any such shortages and would put up cash to cover them, and a few days later put up the sum of $2,800 for that purpose. After further investigation the company claimed that defendant had misappropriated other items mentioned at the meeting in the hotel. Defendant disputed these claims and refused to pay them or put up any more money.

Thereafter two civil actions were brought against him and five indictments were returned against him. He settled the civil actions by paying $7,500 in addition to the proceeds of the grease and the $2,800 which he had previously turned over to the company. He pleaded guilty to larceny in the second degree upon one of the indictments and the others were dismissed. Thereafter the present prosecution was instituted by filing an information charging embezzlement of the $520.89 represented by exhibit C-l. One of the dismissed indictments was based on this same charge. The claim of defendant that the proceedings which resulted in the dismissal of the indictments operated as a bar to this prosecution was determined adversely to him in State v. Kiewel, 166 Minn. 302, 207 N. W. 646.

Defendant claimed in the present case that he had never misappropriated any of the funds of the company ; that he kept the proceeds of the shipments of grease in the safety deposit box of the company as a secret reserve fund for Use in emergencies; that these transactions were not entered on the books because he was keeping the proceeds as such secret reserve; that he took the checks and certificates of deposit in his own name merely to avoid confusing these funds with other funds of the company; and that he had never appropriated or used these funds, but had at all times kept either the money or a' certified check or certificate of deposit for the respective amounts in the safety deposit box of the company as the property of the company.

*478

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Cite This Page — Counsel Stack

Bluebook (online)
217 N.W. 598, 173 Minn. 473, 1928 Minn. LEXIS 1038, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-v-kiewel-minn-1928.