Warner v. Bates

• Decision Date: 03 December 1889
• Citation: 43 N.W. 957,75 Wis. 278
• Parties: WARNER v. BATES ET AL.
• Court: Wisconsin Supreme Court

75 Wis. 278

43 N.W. 957

WARNER

v.BATES ET AL.

Supreme Court of Wisconsin.

Dec. 3, 1889.

Appeal from circuit court, Milwaukee county; D. H. JOHNSON, Judge.

Action by Helen M. Warner against F. A. Bates and others for obtaining money and property by false and fraudulent representations.

The complaint and affidavit alleged, among other things:

“That on and prior to the 8th day of December, 1886, the defendant Laura D. Benjamin was the wife of the defendant Henry S. Benjamin, and the defendant Elizabeth M. Bates was the wife of the defendant F. A. Bates; and at that date the defendants Nathaniel D. Moore, Laura D. Benjamin, and Elizabeth M. Bates were, and for a long time prior thereto had been, copartners, doing business under the firm name and style of Moore, Benjamin & Co., in buying and selling mining stocks at the city of Milwaukee, Wisconsin. That in said copartnership business the said Laura D. Benjamin was represented by the defendant Henry S. Benjamin, her husband, who was her agent and manager in all of the business transactions of said firm; and in the said business and partnership the said Elizabeth M. Bates was represented by her husband, the defendant F. A. Bates, who was her manager and agent, duly authorized thereto, in all of the business transactions of said copartnership. That at and for a long time prior to said date the plaintiff and her family had maintained the closest social and most friendly relations with the defendants Henry S. and Laura D. Benjamin, and to such an extent that said last-mentioned defendants held and possessed the unlimited confidence of this plaintiff, of which fact all of the defendants to this action were fully advised and well knew. That on or about the time aforesaid this plaintiff was seised and possessed of certain real estate, situate in the said city of Milwaukee, of the value of at least the sum of twenty thousand dollars, which the defendants well knew. That the defendants were the owners of large amounts of the stock and certificates of stock hereinafter-mentioned; and being fully advised, and well knowing the matters and things hereinbefore stated, the said defendants, some time prior to said date, the exact date whereof is unknown to this plaintiff, did unlawfully, wickedly, and maliciously conspire, combine, confederate, and agree together, between and among themselves, by falsely and fraudulently representing, pretending, and holding out to the plaintiff that certain pretended corporations, respectively, pretending to do and carry on business, and which had respectively issued shares and certificates of stock, to-wit, the Prospect Hill Mining Company, the Bourne Iron Mining Company, the Kakagon Iron Mining Company, the Nimikon Iron Mining Company, the Sunday Lake Mining Company, and the Bessemer Mining Company, had respectively been duly and legally incorporated. That each and all of said corporations had so respectively issued their said respective stocks and certificates of stock in consideration of money, labor, and property, estimated at its true money value, actually received by said corporations, respectively, equal to seventy-five per centum of the par value of the said stocks and certificates of stock of said respective corporations. That at least one-half of the capital of said respective corporations had been duly subscribed, and at least twenty per centum thereof actually paid in. That each and all of said corporations owned large tracts of valuable mineral lands. That all of said lands, and the lands so owned by each and all of said corporations, were productive of, and were constantly producing, large and valuable quantities of iron ores and other minerals. That each and all of said corporations were being conducted, operated, and carried on at a great profit and gain. That the said respective stocks and certificates of stock of said respective corporations were of great and increasing value. That the said stocks and certificates of stock of said respective corporations would surely and speedily pay large and increasing dividends, and were an absolutely safe and sure paying investment for capital, from which it was impossible to suffer or sustain any loss; whereas, in truth and in fact, the said pretended corporations, and each and all of them, had never been duly or legally incorporated. That said corporations, and each and all of them, had never issued their said respective stocks and certificates of stock in consideration of money, labor, and property, estimated at its true money value, actually received by said companies, respectively, equal to 75 per centum of the par value of the said respective stocks and certificates of stock of said respective corporations, or in consideration of any money, labor or property whatsoever, or for or upon any consideration of any nature or kind. That all said respective stocks and certificates of stock were absolutely null and void, as plaintiff has been informed and verily believes. That at least one-half of the capital of said respective companies had not been duly subscribed, and that at least twenty per centum thereof, required by law to be paid in, had in fact never been paid in. That each and all of said pretended corporations did not own large tracts of valuable mineral lands, or any mineral or other lands whatsoever. That said pretended corporations owned no mineral or other lands which were productive of and constantly producing large and valuable quantities of iron ores and other minerals, or any iron ores or other minerals whatsoever, That each and all of said pretended corporations were not being conducted, operated, or carried on at great profit and gain, or at any profit or gain whatsoever. That the said stocks and certificates of stock of each and all of said pretended corporations were not of great and increasing value, or of any value whatsoever, as plaintiff has been informed and verily believes, and would not and did not pay large and increasing dividends, or any dividends whatsoever. That said stocks and certificates of stock of said pretended corporations, respectively, were not a paying in vestment for capital, from which it was impossible to suffer or sustain any loss, but that, on the contrary, any and all investments made in said stocks or certificates of stock would prove an absolute and total loss,--all of which the said defendants well knew,--for the sole purpose, and with intent, by such false and fraudulent representations and pretenses, to procure the plaintiff to sell and dispose of her said real estate, and with the proceeds derived therefrom to purchase of the defendants the said stocks and certificates of stock in said respective pretended corporations by the defendants owned, and thereby to cheat and defraud this plaintiff, and to gain an undue and unlawful advantage over this plaintiff, and to cause her thereby to suffer great loss and damage. That thereafter, and before said December 8, 1886, the said defendant, in pursuance of and in accordance with said conspiracy, combination, and agreement, had as aforesaid, and taking advantage of the social and friendly relations which existed between this plaintiff and the defendants Henry S. and Laura D. Benjamin, as aforesaid, and of plaintiff's confidence, importuned and solicited the plaintiff to sell her said real estate, and to purchase from them said stocks and certificates of stock, and falsely and fraudulently represented, pretended, and held out to this plaintiff that the said respective pretended corporations above named, and each and all of them, had been duly and legally organized and incorporated. That each and all of said pretended corporations had respectively issued their said respective stocks and certificates of stock in consideration of money, labor, and property estimated at its true money value, actually received by said respective pretended corporations, equal to seventy-five per centum of the par value of the said respective stocks and certificates of stock of said respective pretended corporations. That at least one-half of the respective capitals of said pretended corporations, and each of them, had been duly subscribed, and at least twenty per centum thereof actually paid in. That each and all of said pretended corporations owned large tracts of valuable mineral lands. That all of said lands, and the lands so owned by each and all of said pretended corporations, were productive of, and were constantly producing, large and valuable quantities of iron ores and other minerals. That each and all of said companies were being conducted, operated, and carried on at great profit and gain. That the said respective stocks and certificates of stock of said respective pretended corporations were of great and increasing value. That the said stocks and certificates of stock of said respective corporations were an abun dantly safe, and absolutely sure and paying investment for capital, from which it was impossible to suffer or sustain any loss; and that if the plaintiff would sell her said real estate, and purchase of them said stocks, she should suffer no loss therefrom. Each and all of which said several statements and representations above set forth were false, which the defendants well knew, and were by them so made, as aforesaid, for the purpose of deceiving, misleading, and defrauding the plaintiff, and inducing and procuring her to sell her said real estate, and with the proceeds derived therefrom to purchase of the defendants the said stocks and certificates of stock by them so owned as aforesaid, and to cheat and defraud the plaintiff out of her said property, and to cause her thereby to suffer great and irreparable damage, as aforesaid. And, further, the said defendants, in pursuance of and according to said conspiracy, combination, and agreement, had, as aforesaid, falsely and fraudulently represented, pretended, and held out to the plaintiff that the said stocks and...