Wood v. Kansas City Home Telephone Co.

123 S.W. 6, 223 Mo. 537, 1909 Mo. LEXIS 75
CourtSupreme Court of Missouri
DecidedNovember 27, 1909
StatusPublished
Cited by38 cases

This text of 123 S.W. 6 (Wood v. Kansas City Home Telephone Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Missouri primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wood v. Kansas City Home Telephone Co., 123 S.W. 6, 223 Mo. 537, 1909 Mo. LEXIS 75 (Mo. 1909).

Opinion

GRAVES, J.

For some months prior to November 9, 1901, one John Enoch had been diligently engaged in trying to procure a franchise from Kansas City to construct and maintain a telephone system in said city. From the evidence it appears that the city had previously granted a franchise to what it thought was an independent concern, but nothing came from it, and the old telephone company continued to hold the field undisputed as to competition. It would appear that the purpose of the then Mayor was to secure competition in the telephone business in the city, and if possible to obviate what had been denominated “sell outs” in franchises granted. The Mayor had conceived the idea of requiring a deposit to be made by applicants for franchises, which deposit was to his mind the best evidence of good faith, and which deposit as he thought would tend to compel the applicant to accept the terms of the ordinance granting the franchise, and thus compel the building of a new telephone system in the city. It appears that Enoch had put up a guarantee of $1,000 and had succeeded in getting his ordinance through the lower branch of the Common. Council. At this point the Mayor took a hand. Recalling past experiences and fearing that another “sell out” was apparent, he interested himself in opposition to the ordinance, and frankly told Enoch and his representatives his reasons therefor, which were as above indicated. The Mayor had the matter blocked in the [542]*542upper house of the Common Council. Enoch, who lived at St. Charles, Missouri, was introduced to Charles B. Stark by a mutual acquaintance, Mr. Player, then a prominent official of the city of St. Louis. This was sometime prior to September 15,1901. Enoch was trying to get parties interested so that he could get his franchise through the Common Council, and build the plant. Stark was a personal friend of the Mayor of Kansas City, and had a clientage in St. Louis among men of means, who could furnish the money with which to finance the deal. Stark went to Kansas City ■ and had a talk with the Mayor and further proceeded to get together a syndicate of St. Louis capitalists to handle the proposition. Enoch frequently met Stark in St. Louis, and the result of it all was an agreement to organize a corporation to take over the franchise granted to Enoch. Mr. Stark and his associates incorporated the Peoples- Telephone Company. At the suggestion of Enoch, Stark and his friends had first drawn up articles of association in the name of the Home Telephone Company, but when on December 24, 1901, he visited Jefferson City to obtain a charter, from the Secretary of State, it was found that a company under that name had been chartered and that Enoch was one of the incorporators. On December 21, Enoch had, by written assignment duly acknowledged, assigned his interest in the franchise to the Peoples Telephone Company. "When Stark found the name Home Telephone Company already appropriated, he took out his charter by changing to the new name in the Secretary of State’s office and further had the assignment of the franchise again re-executed by Enoch. Under this assignment Stark and his friends in St. Louis claimed title to the franchise which had been granted to Enoch. There was also an agreement between Enoch and Stark, as trustee for the syndicate of the same date, December 21, 1901. This agreement covered the details of the organization of the corporation.

[543]*543Now going back to where we left off in the history of the ordinance. As stated the Mayor had blocked the passage of the ordinance. Early in November or on November 4th, the work of the Mayor brought fruition. Enoch got the Central Construction Company, a co-partnership composed of Ed. L. Barber, James S. Brailey and O. C. Snider, to put up a guaranty fund of $20,000 in order to secure the passage of said ordinance in the upper house of the Common Council. This money at the' Mayor’s suggestion was placed in the hands of three prominent citizens of Kansas City, who took and received it under written conditions signed by them thus:

“Received the 4th day of November, 1901, from John Enoch, the sum of twenty thousand dollars, upon the following terms and conditions, to wit:
“Whereas, there is now pending before the upper house of the Common Council of Kansas City, Missouri, an ordinance entitled, ‘An ordinance granting for a term of thirty years to John Enoch his successors and assigns, the right, privilege and authority to construct, lay and maintain and operate in Kansas City, Missouri, and through the public streets, avenues, alleys and thoroughfares thereof, underground conduits, poles, wires and other appliances for the purpose of furnishing and supplying to Kansas City and the inhabitants thereof a telephone system.’ Which said ordinance passed the lower house of the Common Council of Kansas City, Missouri, September 3, 1901.
“1. Now, if said ordinance shall not become a law within thirty days from the date hereof, then said $20,000 is to be returned to the said John Enoch, his order or assigns, upon the said John Enoch, or his assigns, duly delivering to the undersigned, for and on behalf of Kansas City, Missouri, a written relinquishment of all rights which they may have under and by virtue of said ordinance.
[544]*544“2. If said ordinance shall become a law within said fifteen days, said John Enoch, his successors or assigns, shall at once employ and place in Kansas City, Missouri, at least ten solicitors, who shall devote their entire time and efforts to securing subscribers for telephone service at the prices and .under the terms of said ordinance, except that a contract for telephone service for three years shall be counted, and the said John Enoch his successors and assigns, agree to use all reasonable and possible endeavors to secure within sixty days at least three thousand subscribers for telephone service, and if they shall fail, neglect or refuse to employ the solicitors aforesaid and make the efforts aforesaid in good faith, then said $20’,000 shall be paid to Kansas City, Missouri, but if they shall comply with the conditions aforesaid, and shall fail, after earnest effort and consistent effort during the sixty days aforesaid, to secure said 3,000 subscribers, then said $20,000 shall be returned to the said John Enoch, his order or assigns by the undersigned, upon the delivery to the undersigned, for-the use and benefit of Kansas City, of an assignment of all rights, privileges and benefits specified in said ordinance, and the decision of the undersigned, upon the question as to whether or not the said John Enoch, his successor or assigns, have faithfully complied with the conditions aforesaid, shall be final, binding and conclusive, and they are authorized absolutely to dispose of said moneys in the manner above specified.
“It is further provided that the undersigned, or any other persons acting for or in their behalf, shall have the right to solicit and procure subscribers, without expense, however, to the said John Enoch, and such subscribers obtained by or through the undersigned, if reasonably responsible, shall be counted as a part of said 3,000 subscribers.
“3. If said ordinance becomes a law within sixty days from the date hereof, and the said Enoch, or his [545]*545assigns, shall deposit $40,000 in bonds as provided in said ordinance, then said $20,000 shall be returned to said Enoch, his order, assigns, successor or successors.
“4.

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Bluebook (online)
123 S.W. 6, 223 Mo. 537, 1909 Mo. LEXIS 75, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wood-v-kansas-city-home-telephone-co-mo-1909.