Mississippi Valley Trust Co. v. Taylor

• Decision Date: 24 February 1922
• Docket Number: No. 16744.,16744.
• Citation: 238 S.W. 558
• Parties: MISSISSIPPI VALLEY TRUST CO. v. TALOR et al.
• Court: Missouri Court of Appeals

238 S.W. 558

MISSISSIPPI VALLEY TRUST CO. v. TALOR et al.

No. 16744.

St. Louis Court of Appeals. Missouri.

February 24, 1922.

Rehearing Denied February 25, 1922.

Appeal from St. Louis Circuit Court; Victor H. Falkenhainer, Judge.

"Not to be officially published."

Summary proceedings by the Mississippi Valley Trust Company, administrator d. b. n. of the estate of George L. Taylor, deceased, against J. Wm. Taylor and the Massachusetts Bonding & Insurance Company. Judgment for the plaintiff against the Massachusetts Bonding & Insurance Company in the circuit court on appeal from the probate court, and that defendant appeals. Reversed and remanded, with directions.

Leahy & Saunders, of St. Louis, for appellant.

S. Mayner Wallace, of St. Louis, for respondent.

DAUBS, J.

This cause originated in the probate court of the city of St. Louis. Respondent, as administrator de bonis non of the estate of George L. Taylor, deceased, filed a motion in said court for final settlement and for judgment against J. William Taylor and his surety. Such summary statutory proceedings finds authority in section 48, R. S. Mo. 1919. Judgment was rendered in favor of plaintiff and against the defendant, Massachusetts Bonding & Insurance Company, for the amount of the surety bond, to wit $5,000, and for costs. The bonding company appealed to the circuit court, where that court, without a jury, awarded a like judgment. Defendant bonding company appealed to this court.

The evidence shows that one George L. Taylor died June 28, 1914. J. William Taylor, brother of deceased, was appointed administrator of the estate. Defendant Massachusetts Bonding & Insurance Company signed as surety for Taylor as such administrator. The inventory filed showed that the estate consisted of two certificates of the capital stock of the American Book & Magazine Company. One certificate was for 225 19/20 shares, of the total par value of $11,297.50; the other for 2 shares of the total par value of $100.

In the application for letters of administration, Taylor made affidavit that the total value of the estate did not exceed $2,500. The probate court, through its appraiser for inheritance tax, fixed the gross market value of this stock at $4,000. The administrator, J. William Taylor, in August, 1915, petitioned the probate court for an order to sell such stock, and in his petition fixed the value of said stock at $3,000. This petition shows that claims to the extent of $3,017.46 had been allowed against said estate, and were unpaid. It appears, however, that no sale was ordered or made. There was an effort made by Isabella L. Taylor, the mother of the deceased, to secure the certificates of stock as her property, on the representation that same had been pledged to her by the deceased. The probate court sustaining her claim, the circuit court, on appeal, denied such claim. Later, to wit on February 21, 1918, the creditors of the estate filed a motion in the probate court to revoke the letters of administration held by J. William Taylor. This motion was sustained on June 7, 1918, whereupon said letters were revoked, and the Mississippi Valley Trust Company was appointed administrator de bonis non of said estate. It was then that the motion for judgment against said J. William Taylor and his surety was filed.

At the trial de novo in the circuit court, appellant (the bonding company being sole appellant) tendered to plaintiff the certificates of stock above mentioned, and consented that judgment should be rendered against it for the costs of the entire proceedings. This offer was refused, and the matter proceeded to trial. By consent of the parties the proceedings in the probate court were considered in evidence in the circuit court. The conduct of J. William Taylor while acting as administrator aforesaid gives rise to the controversy here involved.

The American Book & Magazine Company conducted a secondhand book store at Grand and Franklin avenues, in the city of St. Louis. It dealt to a very limited extent also in curios and works of art, the place being sometimes referred to as a "curiosity shop." The capital stock issued was about 378 shares, of which the estate held 229 19/20 shares, the remainder being held in different proportions by three or four other persons. J. William Taylor, prior to the death of his brother, was vim president of the concern, and was in its employ. Upon the death of his brother, and after coming into possession, as administrator, of the shares of stock aforesaid, he was elected president and general manager of the company, and as such managed the business. It appears that the business gradually declined, though the defendant Taylor in his first deposition said he was able to pay salaries and acquire additional old books from time to time. Two or three meetings of the stockholders were held after the death of George L. Taylor, and the defendant J. William Taylor voted the stock belonging to the estate. About two years after the death of George L. Taylor the stockholders passed a resolution disposing of all of the assets of the corporation. Whereupon SO per cent. of the assets of the American Book & Magazine Company were sold for $4,500 to Wescott & Miner, who organized the Miner Book Company. An initial payment of $1,500 was made, and the balance was paid along in installments during the following year. It was a private sale.

J. Wm. Taylor, the administrator, testified that at the time of the sale the obligations of the company consisted of about $1,500 to $1,800. The salaries of the officers and employes were $50 per month to Miss Snelson, who was secretary of the company, and saleslady, $60 per month to Mr. Tilton, who was a stockholder and salesman, and Taylor, as president and general manager, received $150 per month. These salaries extended for a year after the death of George L. Taylor, when they were somewhat reduced, until the business was entirely closed out. The rent was $150 per month. After the sale to Wescott & Miner, the business remained open, and ran along until about June, 1917, when Taylor left St. Louis and went to California, as he states, because of ill health. The assets sold to Wescott & Miner, as said above, covered 90 Per cent. of the whole. The remaining 10 per cent. was sold afterwards, but no evidence whatsoever is adduced showing upon what terms, nor what sum, if any, was realized from the remaining 10 per cent. No substantial effort to do business was attempted after...