State v. Phillips

117 N.W. 508, 105 Minn. 375, 1908 Minn. LEXIS 535
CourtSupreme Court of Minnesota
DecidedAugust 14, 1908
DocketNos. 15,027-(32)
StatusPublished
Cited by5 cases

This text of 117 N.W. 508 (State v. Phillips) 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. Phillips, 117 N.W. 508, 105 Minn. 375, 1908 Minn. LEXIS 535 (Mich. 1908).

Opinion

LEWIS, J.

Appellant was convicted of grand larceny in the first degree under an indictment which charged that March 15,1907, at the city of St. Paul, then and there being the agent and employee of the Hancock! Company, of Boston, Mass., a corporation, and having in his posses-j sion, custody, and control, as such agent and employee certain moneys, of the value of $2,693.40, he did unlawfully and feloniously,! [377]*377with intent to deprive and defraud the true owner thereof, take, appropriate, convert, and embezzle the same to his own use.

The Chicago-New York Electric Air Rine Railroad Company (hereafter for convenience called the “Electric Company”) was incorporated for the purpose of constructing an electric railway line between Chicago and New York* and the Co-operative Construction Company, of Chicago, Illinois (hereafter called the “Construction Company”), was under contract to build the line and take its pay in stock of that company, and in pursuance of its purpose to dispose of its stock it entered into a contract with the Western Surety & Adjustment Company, of Chicago, Illinois (hereafter referred to as the “Surety Company”), for the sale of stock in the northwestern states. Eor a short time appellant was the agent of the Surety Company for the sale of the stock in Minnesota and the Dakotas, with his office at St. Paul. On March 19, 1907, the Surety Company dropped out, and the Construction Company entered into a contract with the Hancock Company for the sale of its stock throughout the United States, and entered into a contract with appellant under which the agency was continued upon somewhat different terms. By the terms of the contract between appellant and the Surety Company, appellant received a salary of $36 per week and one per cent, upon all the sales of stock that should be made within his territory, whether by himself, through his own agents, or by the Surety Company. Under this contract appellant was required to devote his entire time, but the office expenses and advertising material were furnished by the company. This contract was modified so that appellant was to receive a commission of ten per cent, for himself and his agency and pay his own expenses, with the exception of advertising material, circular letters, and application blanks, which were furnished by the Hancock Company. Under this contract appellant was not required to devote his entire time to the sale of stock, but bjr an arrangement with his agents he agreed to pay them seven per cent, upon all time sales and eight per cent, upon all cash sales, reserving to himself three per cent, and two per cent, as the case might be. This arrangement terminated August 24, 1907.

While operating under his contract with the Surety Company, on March 14, 1907, one O. M. Scott, of Sioux City, Iowa, purchased [378]*378through appellant’s agency ten shares of the capital stock of the Electric Company at the price of $40 per share. The checks were made payable to appellant, and deposited by him in a bank in St. Paul under the name of S. A. Phillips, Manager.' Part of the payments were made while appellant was operating for the Surety Company, and part while he was acting for the Hancock Company. On July 16 T 1907, while appellant was operating under the Hancock contract, one W. A. Fenton of Sioux City, Iowa, purchased through E. C. Ben-ner, an agent of appellant, twenty shares of stock at the agreed price of $51 per share. The first payment was made by Fenton to Ben-ner, and the second and third payments were made to appellant himself. On June 29, 1907, a Mr. Scoville, of Owatonna, purchased sixty shares of the stock through one W. C. Webber, an agent of appellant, paying $2,736 therefor in cash to appellant personally.

Under the arrangement between appellant and the Hancock Company, a daily report of all sales was required to be made to the company at its office in Chicago, but appellant was entitled to retain the amount of his commission. Neither one of the three sales above mentioned was ever reported by appellant, and the retention of the money by him while acting as agent of the Hancock Company is the act upon which the criminal charge against him is based.

The respective claims of the state and the defendant are as follows : On behalf of the state, the offense charged is based upon the following facts and propositions: That by defendant’s contract with the Hancock Company the relation of principal and agent was created and existed for the sale of the stock of the Chicago-New York Electric Air Line Railroad Company; that, in consideration of aH commission of ten per cent, and the use of the printed literature andH blanks of the Hancock Company, defendant agreed to solicit pur-H chasers of the stock of that company upon such terms and at such® prices as the company should stipulate; that the applications forH stock by Scoville, Scott, and Fenton were made in the usual course® of business, and. the money was paid by them’ to the defendant as® the representative of the Hancock Company, and immediately up-H on its payment such, money became the property of that corpora-H tion; and that the failure to pay it over to the company constitutedH an appropriation of it to his own use. H

[379]*379Defendant denies that he ever received any money of the Hancock Company, and claims that it conclusively appears from the record that the several transactions were of a purely private character, constituting personal sales of defendant’s personal stock, and that the money received was his individually. Defendant claims that he was vested with authority by the Hancock and the Construction companies, as a part consideration for entering into the contract as their representative to make sales of stock as occasion might arise, and in any event, whether under the terms of the contract defendant was or was not vested with such authority to make personal sales of stock, that, the record conclusively shows he acted in good faith and upon the belief that he was possessed of such authority, and that, if he was mistaken as to the legal effect of the transaction as between himself and his principal, there is at least no evidence of criminal intent to deprive the company of its property. Defendant further submits that in any event the only interest which. the Hancock Company had in the transaction was its own commission, and, the orders for stock having been filled, defendant cannot be charged with the crime set out in the indictment.

In a very clear and analytical charge to the jury the trial court submitted the question at issue under the following heads: (1) That it must appear beyond a reasonable doubt that appellant was the agent of the Hancock Company at the time the several transactions constituting the offense charged took place; (2) that as such agent he had moneys in his possession, or under his control, which belonged to that company; (3) that appellant appropriated such money to his own use, instead of turning it over to his principal; and (4) that he did so with the intent on his part to defraud the company and deprive it of the money. The court submitted to the jury the duty of finding upon each one of these separate propositions, and instructed them that it was conceded by appellant that he was the agent of the Hancock Company at the time he appropriated the money; that it was conceded that appellant received the money from the sale of stock, and that it was admitted that he had not turned it over to the company, but had converted it to his own use; that the important question in the case was whether the sale of stock was in fact made on [380]

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Cite This Page — Counsel Stack

Bluebook (online)
117 N.W. 508, 105 Minn. 375, 1908 Minn. LEXIS 535, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-v-phillips-minn-1908.