Payne v. Goldbach
| Decision Date | 07 January 1896 |
| Docket Number | 1,570 |
| Parties | PAYNE v. GOLDBACH, ADMX., ET AL |
| Court | Indiana Appellate Court |
From the Floyd Circuit Court.
Judgment affirmed.
Stotsenburg & Voigt, J. B. Merriwether and Kelso & Kelso, for appellant.
F. B Burke, for appellees.
The appellant filed a claim against the estate of Simon Goldbach deceased, of which estate the appellee is the administratrix. The claim is in two paragraphs. In the first it is alleged that, in 1889, Simon Goldbach and others organized a corporation under the laws of this State known as the Electric Light, Gas Heating and Coke Company, of Jeffersonville, Ind., with a capital stock of $ 100,000, of which Goldbach held forty shares and the other incorporators twenty shares, and one Leo Weil 3,940 shares as trustee; that Weil held said shares as trustee for Goldbach and one Luther F. Warder, and that Goldbach held the forty shares for himself and the said Warder; that one-half of all the stock held by Goldbach and Weil, and all the rights, privileges property and gains, together with the stocks and bonds of the corporation then held, or afterwards acquired by said Goldbach, was, by agreement between him and the said Warder, to be held in Goldbach's name, but in trust for the use and benefit of Warder, and were to be assigned and transferred to Warder or his assigns whenever demanded by him or those who might be entitled thereto; that in furtherance of the agreement between Warder and Goldbach, Warder paid to Goldbach the sum of $ 800; that in 1889, Weil & Bro., acting for Goldbach and Warder, contracted with the company and agreed to erect an electric light plant for said 3,940 shares of stock, and that thereupon the said shares were issued to Weil as trustee; that Weil & Bro., acting for Warder and Goldbach, erected the electric light plant at a cost of $ 11,500, and thereupon sold and transferred the stock back to said company for $ 25,000, thereby making for Goldbach and Warder a profit of $ 13,500; that the Central Thompson-Huston Co., the company which erected said plant, also paid Goldbach $ 1,500 for obtaining the contract to erect said plant, one-half of which Warder was entitled to; that the Phoenix Company paid Goldbach $ 800 for obtaining for it the contract with said corporation for the machinery, one-half of which Warder was entitled to; that part of the stock transferred by Leo Weil, trustee, to the company, was sold and issued to purchasers at twenty-five cents on the dollar; that of the stock so sold, Goldbach purchased 670 shares, which are worth par; that other stockholders transferred eight shares to Goldbach, and that in November, 1890, the company, in payment for the franchise and good will, issued to Goldbach 400 shares; that of all the stock held by Goldbach, and of all the gains and profits made, Warder was entitled to one-half thereof; and that Goldbach refused to account therefor, and converted the same to his own use; that Warder assigned one-fourth of said claim to the appellant.
The second paragraph alleges that Goldbach and Warder jointly owned 3,980 shares of the capital stock of the company and the real estate on which it was their intention to erect the plant; that they had made a contract with one Beetle, in which Beetle, in consideration of the stock, agreed that he would erect the plant and give each of them $ 1,000 in cash and $ 10,000 in the stock of the company; that afterwards Goldbach proposed that if Warder would agree to abandon the contract with Beetle, Goldbach would give Warder $ 1,000 cash and $ 10,000 in stock, and one-half of all that he might receive as bonuses and...
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