Turner v. Osgood Art Colortype Co.

125 Ill. App. 602, 1906 Ill. App. LEXIS 306
CourtAppellate Court of Illinois
DecidedMarch 23, 1906
DocketGen. No. 12,278
StatusPublished

This text of 125 Ill. App. 602 (Turner v. Osgood Art Colortype Co.) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Turner v. Osgood Art Colortype Co., 125 Ill. App. 602, 1906 Ill. App. LEXIS 306 (Ill. Ct. App. 1906).

Opinion

Mr. Justice Baker

delivered the opinion of the court.

This is an appeal by the defendant from a judgment for $2076.60 recovered against him by appellee in the Superior Court, upon his guaranty in writing that the American Soligraph Company would carry out a contract made by that company with the plaintiff.

In 1900 appellant was a banker in Chicago, doing business under the name of Henry L. Turner & Co,

September 7th of that year the following contract and guaranty in writing was executed by the parties thereto:

“Osgood Art Colortype Co., City.
Chicago, Sept. 7, 1900.
Gentlemen: Regarding the matter of the pictures now in the course of completion by your company, we propose the following and offer for your acceptance: That on the acceptance of this agreement we will deliver to you a note signed by the American Consumers Alliance, Inc., and endorsed by Henry L. Turner & Company, amounting to $1,741.50. In consideration of which you agree to deliver to us ten thousand (10,000) each of the pictures (16) sixteen subjects, as represented by the proofs now in our possession, at the earliest possible time and not later than October 15th, and on the delivery of the pictures to ns, we will give you another note signed by the American Consumers Alliance, Inc., and endorsed by Henry L. Turner & Company for the amount of $1,741.50. The two obligations to pay the account in full and both to mature January 1st, 1901.
In consideration of the several agreements above, it is fully understood that some changes are to be made on these plates according to the statement that was made by Mr. Behrens, that the plates could be altered.
Trusting yon will find this satisfactory and we may have your acceptance at once, we are,
Very truly,
American Soligraph Company,
By J. A. Stevens.
We guarantee the execution of this contract by the American Soligraph Co.
Henry L. Turner & Co.
Accepted, Osgood Art Colortype Co.,
Frederick I. Osgood, Pres.,
C. J. Whipple.”

The .plaintiff delivered to the American Soligraph Company October 15, 1900, the number of prints specified in the above contract, and two days later that company wrote plaintiff as follows:

“Chicago, Ill., Oct. 17, 1900.
The Osgood Art Colortype Co.,
167 Adams St., Chicago, Illinois.
Gentlemen: We hereby notify you that we do not, and will not, accept the pictures which you. have delivered to us, on account of the contract bearing date September 7, 1900, between the Osgood Art Colortype Co. and the American Soligraph Co. for the reason that they do not conform with said contract, and we hereby tender the same to you and hold them subject to your order, and assume no responsibility whatever for them.
We demand that you return to us, or the American Consumers’ Alliance immediately, the note of the American Consumers’ Alliance, dated September 7, 1900, and due January 1, 1901. We further notify you that by reason of your failure to perform said contract, we shall lose a large sum of money, by reason of our inability to fill orders already taken from our customers and we shall hold you strictly responsible for all damages sustained by us, by reason of your breach of contract.
Tours truly,
American Solig-eaph Co.”

At the close of plaintiff’s case defendant’s counsel said to counsel for the plaintiff: “I think it ought to be stated that you are relying for recovery on the contract of September 7, 1900, upon which the defendant appears to be liable as guarantor,” and plaintiff’s counsel answered, “Well, that is all there is left of it, that and the prior contracts which were necessarily a part of that contract,” and defendant’s counsel replied: “They are merged, and their terms are simply merged; the degree of liability is changed and the character in which the defendant is liable; of course we understand, as far as that is concerned, that they may form a part of the contract of September 7, 1900.”

We shall first consider the question as to how far, if at all, the prior' contracts referred to by counsel were a part of the contract of September 7, 1900.

February 20, 1900, the defendant entered into a contract in writing with one J. A. Stevens, containing the following provisions:

“It is proposed to establish in Chicago a business covering the general ground of producing and selling art specialties and advertising novelties. To this end the said Stevens hereby agrees to devote his time, experience and effort for three months following this date, and the said Henry L. Turner & Co. agree to furnish for said purpose from time to time as requested by said Stevens during said period of three months the aggregate sum of $600 in money, which is to be expended by said Stevens in his discretion after frequent consultation with Henry L. Turner & Co. in laying the foundation, and preparing the way for said business, but including a reasonable allowance for current living expenses.

In case the results and prospects from said three months’ effort and experience shall in the judgment of said Henry L. Turner & Co. warrant going forward with the business, they will make or provide for such further advances of capital for such business as they and the said Stevens shall jointly deem expedient.

Meanwhile during said three months a corporation named American Soligraph Company shall be organized with a stock capital of $10,000, said stock to be paid up in full by the conveyance to said company of two certain applications for United States patents on processes connected with said business and devised by said Stevens, which applications are now being prepared.

Of the stock of said company Henry L. Turner & Co. and assigns shall receive and own sixty per cent, and said corporation shall after its organization and issuance of stock own and conduct said business; and the said Stevens shall be employed by said corporation as manager of the manufacturing and selling departments at a compensation to be agreed upon from time to time after the first year, such compensation for the first year following said three months’ period to be at the rate of $30 per week.

It is further agreed that such advances of money or capital as shall be made or provided for by Henry L. Turner & Co. shall be refunded before dividends are paid on the stock of the company.”

April 12, 1900, plaintiff submitted to defendant the following proposition:

“Gentlemen: Answering your request for estimate we beg to quote you as follows:

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Bluebook (online)
125 Ill. App. 602, 1906 Ill. App. LEXIS 306, Counsel Stack Legal Research, https://law.counselstack.com/opinion/turner-v-osgood-art-colortype-co-illappct-1906.