People v. Karste

• Decision Date: 23 March 1903
• Court: Michigan Supreme Court
• Parties: PEOPLE v. KARSTE.

93 N.W. 1081

132 Mich. 455

PEOPLE v. KARSTE.

Supreme Court of Michigan

March 23, 1903

Exceptions from Circuit Court, Gogebic County; Joseph H. Steere, Judge.

Otto E Karste was convicted of misapplying money placed in his hands for investment, and he brings exceptions. Affirmed.

Charles E. Miller, for appellant.

Horace M. Oren, Atty. Gen., and Samuel S. Cooper, Pros. Atty. (Allan F. Rees, of counsel), for the People.

MONTGOMERY J.

The respondent was convicted under an information based on section 11,572 of the Compiled Laws. On the trial the evidence showed the following facts: Cecil S. Wray in October and November, 1900, resided at Iron Belt, Wis., about nine miles from the city of Ironwood, and on the 13th of October he wrote a letter to the defendant as follows: 'O. E Karste, Ironwood, Mich.--Dear Sir: I enclose you my mother's check for $250, and desire you to please buy for her four shares National Biscuit Preferred stock at 87 or better. When the stock is bought kindly have certificate made to my mother, Mrs. Eliza Wray, and oblige, Yours very truly.' Inclosed in such letter was a check upon the Savings & Trust Company, Cleveland, Ohio, payable to the order of O. E. Karste or bearer, for $350, on deposit, and the number 9,187, which check was signed Mrs. Eliza Wray. The testimony showed that this money was Mrs. Eliza Wray's money, and the Cecil S. Wray received from Karste a reply to his letter of October 13th, which is as follows 'Ironwood, Mich., October 16, 1900. C. S. Wray, Esq. Iron Belt, Wis.--Dear Sir: I have your favor of the 13th inst., enclosing check for $350, which amount I have placed to your credit. I have entered an open order to buy four shares National Biscuit preferred at 87, and issue certificate to Mrs. Eliza Wray, Iron Belt, Wis. Thanks. Yours truly.' Aside from these letters, there was no communication between Cecil S. Wray and Karste previous to November 13th; but Wray was in Ironwood once or twice during that time, and asked Karste if he had been able to procure the stock for his mother. Wray merely asked him if he had the stock, and he would say 'No,' and they would probably converse upon something else for a minute or two. The next communication between the parties was a telegram dated November 13th, and sent from Edinburgh, Ind., which telegram was as follows: 'Edinburgh, Ind., November 13, 1900. O. E. Karste, Ironwood, Mich.: Cancel Biscuit order and buy four shares American Steel & Wire preferred at 85 or better. C. S. Wray.' Wray also wrote Karste on the 14th of November as follows: '325 Eighteenth St., Louisville, Ky., Nov. 14, 1900. Mr. O. E. Karste, Ironwood, Mich.--Dear Sir: I wired you to-night as follows: 'Cancel Biscuit order and buy four shares American Steel & Wire preferred at 85 or better.' When you have purchased stock please have certificate made to Mrs. Eliza Wray, and mail to me at above address. Also cancel my C. & H. order and mail check to balance account. It is too high for me. Yours truly.' Wray received from Karste, in reply to this telegram and letter, a letter as follows: 'Ironwood, Mich., November 16, 1900. C. S. Wray, Esq., Louisville, Ky.--Dear Sir: I am in receipt of your wire of the 13th and your letter of the 14th instructing me to cancel your order to buy four shares Biscuit preferred and also the Cal. & Hec. and in its place to buy four shares American Steel & Wire preferred at 85 or better. I have entered an open order at this price. The market opened at 85 yesterday morning, which was the lowest for the day, and you are aware that to buy an odd lot like this it would have to sell at about 84 1/2 for this order to be executed at 85. One execution of the order I will, as directed, issue the certificate to Mrs. Eliza Wray, together with statement and check for balance. You will please write and give me your mother's address, that is, her home, which is always necessary to give when certificates are issued. On receipt of your wire yesterday I wrote you to Edinburgh, Indiana, thinking it would reach you there. Do I understand you want check for the $100 now, regardless of the execution on the other? Yours truly.' In response to this last letter Wray wrote the respondent that he need not send check until final settlement was made, or until after respondent had purchased the American Steel & Wire Company stock. This letter was written November 20th, but before this day respondent had left Ironwood and gone to New York; and the next information that Wray received was a letter from respondent's attorney, stating that he had failed, and proposing a settlement by note.

The case was put to the jury under two counts of the information each of which counted upon a conversion of the $350 in violation of the instructions given in the telegram of November 13th, and confirmed by the letter of November 14th. A motion was made to quash the information on the...