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Pa.)

IRELAND v. IRELAND ADVERTISING AGENCY

2,000 shares, which represented nothing of value, except the property included in the bill of sale, of which shares she received 1,840, that later she became president and treasurer, and, asserting her individual ownership of the stock, contracted with the other defendant. in pursuance of a scheme to exclude plaintiff from all control over the property, and there was no evidence of an intention on the part of plaintiff to make a gift to the wife, a decree, declaring a trust in his favor as to the shares of stock held in her name, and annulling the contract between her and the other defendant, will be sustained.

[Ed. Note. For other cases, see Trusts, Cent. Dig. § 42; Dec. Dig. § 31.*]

2. TRUSTS ($375*)-ESTABLISHMENT-DECREE. On a bill in equity to declare a trust in shares of stock held in the name of plaintiff's wife, and to annul a contract between her and another defendant, a clause of the decree, authorizing plaintiff to call a meeting of the stockholders to elect officers and transact other corporate business, is improper, and will be strick

en out.

[Ed. Note.-For other cases, see Trusts, Dec. Dig. § 375.*]

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became directors. Later on the wife became the president, displacing her husband from that position, and treasurer of the corporation as well. The bill was to declare a trust in favor of the husband with respect to the 1,840 shares of stock held in the wife's name, and to cancel and annul a contract entered into between the wife and Donovan, the other appellant, by which the latter was to receive a certain amount of the capital stock in addition to salary for services to be rendered as general manager of the corporation.

It is vain to argue that the findings of the chancellor with respect to the purpose of the bill of sale and the joint participation of appellants in a scheme to deprive the husband of the ownership of his property are without warrant in the evidence. It is made abundantly clear by the testimony of witnesses called by the appellants, who were present when the bill of sale was suggested, and when it was executed as well, that all that

Appeal from Court of Common Pleas, was intended to be accomplished through it Philadelphia County.

Bill in equity by Howard I. Ireland against the Ireland Advertising Agency and others, to declare a trust ex maleficio, to annul a contract, and for an injunction and account From a decree for plaintiff, defendants appeal. Modified and affirmed.

Argued before FELL, C. J., and ELKIN, STEWART, and MOSCHZISKER, JJ.

E. Cooper Shapley and Frank B. Stockley, for appellants. Morton Z. Paul, for appellee.

was the incorporation of the business. The incorporation was suggested as a means, whereby the appellee could get respite from business cares and responsibilities. Not a witness testifies to anything from which an intention to make a gift to the wife could be derived. Even the wife herself asserts nothing that gives support to her contention of ownership. On her cross-examination, she was asked whether her husband had ever suggested giving his business entirely over to her. Her answer was, "I do not remember." She nowhere in her testimony asserts that her husband at any time before the execution of the bill of sale expressed an intention to make a gift of his property to her. Nor did any witness. The whole transaction shows conclusively that no gift was intended, and that the wife's course during the absence of the husband abroad in the management of the corporation, and in the assertion of her individual ownership of the stock, was in clear violation of the husband's rights.

STEWART, J. [1] The finding by the chancellor to the effect that no gift to the wife or other person was intended by the bill of sale which the appellee executed, covering all the assets of the advertising agency of which he was the sole owner, is conclusive of this case, except as it can be shown that such finding is without support in the evidence. The numerous assignments of error do not call for separate consideration. The one question in the case is, What was the real purpose and object of the bill of sale? The chancellor finds that the appellee, broken in health, from whatever cause, was for the time at least indisposed, if not unable, to give personal attention to the business he had established; that he contemplated a period of rest in travel, and that the bill of sale to the wife was simply to invest her with the legal title to enable her, in his absence from the country, to transfer it to a corporation thereafter to be created. In due time the corporation was formed, with a capital stock which represented nothing of value but the property included in the bill of sale, and which the appellant Mrs. Ireland turned over. The capital was divided into 2,000 shares of the par value of $5 per share, appellant receiving 1,840 of these; the remainder being gratuitously bestowed upon several who *For other cases see same topic and section NUMBER in Dec. Dig. & Am. Dig. Key No. Series & Rep'r Indexes

Donovan, the other appellant, had been for years in appellee's employ, and was perfectly familiar with actual conditions, both as to the ownership of the property and the contemplated change of the business into a corporation. Immediately following upon the organization of the corporation and the aprellee's departure from the country, and without the knowledge of the latter, he entered into a written contract with Mrs. Ireland, the wife, wherein Mrs. Ireland, asserting her individual ownership of 1,840 shares, agrees that Donovan shall become general manager of the corporation for a period of five years at a fixed salary, and in addition a certain amount of the capital stock held by her. This was not only an unwarranted assumption of power on the part

of Mrs. Ireland, but such fact must have been known to Donovan. He knew of the bill of sale; he fully understood its purpose; he knew of Ireland's absence from the country; and he must have known that what Mrs. Ireland was attempting to accomplish by the contract was the exclusion of her husband from all control over his own property. In this scheme the chancellor finds that Donovan was an active participant. It is enough to say that the evidence fully warrants the finding. The assignments of error are overruled.

[2] By paragraph 9 of the decree, the plaintiff, Howard I. Ireland, is authorized upon notice to call a meeting of the stockholders of the Ireland Advertising Agency, for the purpose of electing officers of the corporation, and the transaction of other corporate business. The decree without this feature provided full relief to the plaintiff. Its inclusion was not only not required for plaintiff's protection, but the authority of the court to make such order, as the case stood, may well be doubted. The decree calls for amendment in this particular, and the ninth paragraph of the decree is accordingly stricken therefrom. As so amended, the decree is affirmed, and appeal dismissed.

(232 Pa. 620)

HIGINBOTHAM v. PAUCH.

ally, it is possible that somebody may have to suffer and lose some money. It sometimes happens that two persons who are innocent have to suffer, or one or the other of those two. The rule of law is that, if two innocent persons must suffer, the one who is least to blame is the one that must suffer least. In this case, if you should find that there has been imposition and fraud practiced by some one, and that neither the plaintiff, Mr. Higinbotham, nor the defendant, Mrs. Pauch, was to blame, the burden is on you to determine which of them is the least to blame, and you should find your verdict accordingly; that is, if they are both innocent, and one or the other of them has to suffer. If this comes to be a consideration with you, it is your duty to take into account their respective positions, places of residence, and opportunities for acquainting themselves with the facts, and what was being actually done, and by whom. If the contention of Mrs. Pauch is correct that she was in or near Chicago, and knew absolutely nothing of what was going on in South Brownsville, she could not be held responsible for anything that might have happened in South Brownsville, and, having no opportunity to protect her interests, no blame could be imputed to her. If, however, you should find that Mr. Frank Pauch was acting as the agent of Mrs. Anna Pauch, and was looking after and attending to her affairs, and betrayed

(Supreme Court of Pennsylvania. July 6, 1911.) the trust that she had reposed in him to the 1. ESTOPPEL (§ 120*)-INSTRUCTIONS.

In ejectment, where plaintiff claims under a deed purporting to have been signed by defendant, which she denies, and where the evidence shows that if a fraud was committed the only parties thereto were defendant's brother, since deceased, with whom defendant had left her deed, to enable him to collect rents for her, and a woman who represented herself as defendant, a charge that when one of two equally innocent parties must suffer by the fraud of another the loss should fall on the one whose negligent act or omission enabled the wrongdoer to commit the fraud is improper; there being no evidence of any agency, nor of any act or omission on defendant's part, enabling her brother to deceive plaintiff.

[Ed. Note.-For other cases, see Estoppel, Cent. Dig. § 310; Dec. Dig. § 120.*] 2. PRINCIPAL AND AGENT (§ 103*)-AUTHORITY OF AGENT-IMPLIED AUTHORITY.

That a sister left with her brother her deed, to enable him to collect rents, did not raise an implied agency in him to make sale of her real

estate.

[Ed. Note. For other cases, see Principal and Agent, Cent. Dig. §§ 278-293, 353-359, 367; Dec. Dig. § 103.*]

extent of presuming to act for her. and imposed on Mr. Higinbotham, then there would be no blame attached to Mr. Higinbotham, if he used such care and caution as a reasonably prudent man would have used under the circumstances; if that comes to be a consideration with you, it will be your duty to determine which is the least to blame, and the one who is the least to blame would be the one who should suffer least.

"In this case, as in a great many other cases, there are conflicts in the testimony. and where there are conflicts in the testimony it is the duty of the jury to reconcile them, if they will admit of reconciliation; if they cannot be reconciled, and there are some conflicts in this testimony that cannot be reconciled, then the burden is cast upon the jury of determining who is testifying correctly or incorrectly, of who is mistaken, and who is not mistaken. In this case, either Mr. Brashear or Mr. Smith is mistaken; they cannot both be correct in their testimony

Appeal from court of Common Pleas, Fay- as to the identification of this defendant; ette County.

and where this condition prevails it is the Action by J. C. Higinbotham against Anna duty of the jury to determine which of them Pauch. From a judgment for plaintiff, de- is correct, and which of them is mistaken, fendant appeals. Reversed, with new venire. or which of them is testifying correctly, and The court charged the jury in part as which is testifying incorrectly or falsely; or, follows: if you should be satisfied that one or the "In this case, as in other cases occasion- other of them is testifying falsely, it is your

Pa.)

BOVAIRD v. CITY OF BRADFORD

duty to determine which you think it is; and it is not only your right and your privilege, but your duty, to take into account the manner of the witnesses on the stand, any prejudice, malice, bias, or ill will that they or any of them may manifest in the giving of their testimony, any interest that they or any of them may have in the result of your verdict; also any corroboration that there may be of either of the witnesses whose testimony is being considered by other evidence, with the truth of which you are satisfied. In short, it is the duty of the jury to take into consideration any and everything that will aid or assist you in determining which is testifying correctly, and which incorrectly.

"Where there is such a conflict in the testimony as there is in this case, another consideration is the preponderance of credible testimony. Credible testimony, or the preponderance of credible testimony, is not always established by numbers. There might be a dozen people who testified to a condition on one side, and, if the jury were satisfied that none of them was worthy of belief, or that they were not credible witnesses, their testimony might be overcome by one man, whom you might be absolutely satisfied was credible, on the other side. This being a civil action, where there are questions of fact to be determined, and, as we have indicated, there is one important and prime question of fact for determination in this case; that is, whether or not Mrs. Anna Pauch signed this deed on December 18, 1905. If you find the preponderance of credible testimony to the effect that she did not sign it, you will return a verdict generally for the defendant; and if, on the other hand, you find the preponderance of credible testimony is on the side of the plaintiff, and you find that the defendant did sign and acknowledge this deed on December 18, 1905, you should return a verdict for the plaintiff for the premises described in the writ, together with 64 cents damages."

Argued before FELL, C. J., and BROWN, MESTREZAT, POTTER, and MOSCHZISKER, JJ.

W. J. Sturgis, E. H. Reppert, and S. J. Morrow, for appellant. D. W. McDonald, Frank P. Cottom, Harry A. Cottom, and James R. Cray, for appellee.

FELL, C. J. [1] This was an action of ejectment, in which the plaintiff claimed title by virtue of a deed, alleged to have been signed by the defendant. The defendant denied that she had signed the deed, and the clearly defined issue was whether it was a forgery. She was a single woman, whose residence was in Chicago. She purchased the property in question in 1903, and her deed for the same was duly recorded and left with her brother in Pennsylvania, and

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he acted as her agent in collecting the rents and in looking after the property. In 1907 the plaintiff negotiated with the defendant's brother for the purchase of the property, and at the settlement a deed was signed and acknowledged by a woman, who was represented to be the defendant. At the same time, the woman executed a writing, directing the payment of the purchase money to the defendant's brother. At the signing and acknowledgment of the deed, four persons were present: The defendant's brother, who died before the trial, the woman who executed the deed, and the two subscribing witnesses, one of whom was the notary who took the acknowledgment. One of the subscribing witnesses testified at the trial that the defendant was the woman who signed; the other testified with equal positiveness that she was not. Corroborating circum. stances were shown on both sides, and it was evident that if a fraud had been committed, at the execution of the deed the only parties to it were the defendant's brother and the woman who signed the deed. It was said in the charge that, if one of two innocent parties must suffer loss, the loss must be borne by the one least to blame, and that it was for the jury to determine which of the parties to the action was least to blame and to find a verdict accordingly. This was an inaccurate statement of the rule that, where one of two equally innocent parties must suffer loss, by reason of the fraud of another, the loss should fall upon him whose negligent act or omission has enabled the wrongdoer to commit the fraud, and it was a misapplication of the rule to the facts of the case.

[2] This was not a case of agency. There was not a pretense even that the defendant had authorized her brother to sell the property, and none could be implied from the fact that he held the deed and collected the rents. No act or omission on her part enabled him to deceive the plaintiff.

The first assignment of error is sustained, and the judgment is reversed, with a new venire.

(232 Pa. 600)

BOVAIRD v. CITY OF BRADFORD. (Supreme Court of Pennsylvania. July 6, 1911.)

1. MUNICIPAL CORPORATIONS (§ 165*) — OFFICERS-COMPENSATION-ACTIONS TO RECOV

ER.

In assumpsit by the treasurer of a city of the third class against the city for the salary of a clerk under a city ordinance giving the $720, which ordinance was repealed after the clerk to the city treasurer an annual salary of treasurer's election, the claim being based on Act May 23, 1889 (P. L. 277), providing that no ordinance shall be passed increasing or diminishing the salary of any officer after his election or appointment, a verdict is properly directed for defendant where no attempt was

*For other cases see same topic and section NUMBER in Dec. Dig. & Am. Dig. Key No. Series & Rep'r Indexes

made to show that any clerk was appointed by the treasurer or city council; testimony that a certain person had acted as clerk being entirely insufficient to raise an issue of fact. [Ed. Note.-For other cases. see Municipal Corporations, Cent. Dig. §§ 373, 374; Dec. Dig. § 165.*]

treasurer, and that having been passed after his election to the office, if not entirely nuga-. tory, it could become effective only after the completion of his term of office. As this record stands, we are not called upon to decide the several questions raised on the 2. MUNICIPAL CORPORATIONS (§ 162*)-OF- argument. A demurrer must have proved FICERS COMPENSATION-ACTIONS TO RECOV-fatal to plaintiff's action. In the statement of claim filed it is averred that on February 27, 1905, plaintiff, by virtue of the provisions of said ordinance, appointed one Clinton J. Boyd as clerk to the city treasurer to serve during his said term of three years from April 1, 1905, and on the same day notified the mayor and city controller

ER.

The fact that a city treasurer's failure to appoint a clerk, as authorized by ordinance, cast upon the treasurer heavier burdens, did not authorize him to recover the salary of the clerk. [Ed. Note.-For other cases, see Municipal Corporations, Cent. Dig. §§ 373, 374; Dec. Dig.

§ 162.*]

Appeal from Court of Common Pleas, Mc- of the city of Bradford in writing of such Kean County.

Action in assumpsit by William Bovaird, Jr., against the City of Bradford for a clerk's salary. From a judgment for defendant, plaintiff appeals. Affirmed.

Argued before FELL, C. J., and BROWN, ELKIN, STEWART, and MOSCHZISKER, JJ.

Rufus B. Stone and James George, for appellant. F. P. Schoonmaker, for appellee.

STEWART, J. [1] The city of Bradford is a city of the third class. The act of assembly governing cities of this class creates the office of city treasurer, and provides that such officer "shall receive a fixed annual salary to be provided by ordinance." Act of May 23, 1889, art. 8, § 1 (P. L. 277), as amended by Act of May 16, 1901, § 23 (P. L. 224). The act makes no provision for the election, appointment, or employment of a clerk to the treasurer; but the city council, by ordinance approved March 19, 1902, directed "that the clerk to the city treasurer from and after the first Monday in April, 1902, shall receive an annual salary of $720, to be paid in monthly installments in the same manner that the salaries of other city officials are now paid." At a municipal election in 1905 appellant was elected to the office of city treasurer, for the term of three years beginning the first Monday in April, 1905. He duly qualified and served out his term. Immediately preceding his entry into office, the city councils by ordinance approved March 10, 1905, repealed the ordinance of March 19, 1902, providing a salary for the clerk to the treasurer. Appellant brought this action to recover from the city the sum of $2.349, which he claimed as clerical hire accruing under the ordinance of March 19, 1902, which was in force at the time of his election, basing his claim on the prohibition contained in the Act of May 23, 1889 (P. L. 277) par. 13, § 3, art. 5, which directs that "no ordinance shall be passed increasing or diminishing the salary or compensation of any officer after his election or appointment"; his contention being that the effect of the repealing ordinance was to diminish the salary or compensation of city

appointment; that on April 3, 1905, the said Clinton J. Boyd entered upon his duties as said clerk to the city treasurer, which position he held and which duties he performed until April 6, 1908, the end of plaintiff's term of office as said city treasurer, and of said Boyd's appointment. said Boyd's appointment. Under this state of facts, what possible right of action was in the plaintiff? The suit was for salary; but the salary was payable to the clerk, and to him alone. The plea of nonassumpsit put the plaintiff to his proofs. And here he wholly failed. He did not attempt to prove that any clerk had been appointed by himHis effort to self or by the city councils. prove that Boyd had acted as clerk was too It was feeble to raise an issue of fact. confined to the testimony of a single witness, whose testimony was as follows: "I did understand that there was a man in the city treasurer's office, but just what position he occupied relative to the city treasurer I don't know. He was performing duties, he and the treasurer together were performing the duties of the office. His name was C. J. Boyd." Not a particle of testimony beyond this was offered to show that a clerk had served at any time or for any period. Its insufficiency for the purpose is too obvious to call for discussion. If no clerk was appointed, and none served, no salary accrued.

[2] If by reason of failure to appoint heav ier duties were cast upon the treasurer which he performed, such fact, under no conditions, would give the treasurer any right to the salary of the clerk. The increased labor would not be in diminution of his own salary. It is universally recognized that a change in the duties of an office during the term of the incumbent does not affect the compensation. See the authorities cited in 29 Cyc. 1424. "It is well it should be distinctly understood," said Paxson, C. J., in Pierie v. Phila., 139 Pa. 573, 21 Atl. 90, "that county officers whose salaries have been fix. ed by the Act of March 31, 1876 (P. L. 13), have no right to extra charges for services pertaining to their offices and which have been cast upon them by law." Verdict was properly directed for the defendant. The judgment is affirmed.

R. I.)

(33 R. L. 394)

THORPE v. FALES

THORPE v. FALES. (Supreme Court of Rhode Island. Dec. 7,

1911.)

1. ELECTIONS (§ 180*)-BALLOTS-STATUTORY PROVISIONS-MARKS.

Under Gen. Laws 1909, c. 11, § 43, providing that when a voter has placed a cross in any one circle upon a ballot, "and has not made any mark in any other circle, such cross shall be counted as a vote for each of the candidates in the column above which it is placed," a cross in one circle in the ballot is nullified by a cross in another circle on the same ballot.

[Ed. Note.-For other cases, see Elections, Cent. Dig. §§ 151-157; Dec. Dig. § 180.*] 2. ELECTIONS (§§ 180, 194*) BALLOTS MARKS.

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A ballot which contains, in addition to a cross in the circle under the party emblem, another cross below and to the right of the circle, and another which is in addition to such cross in the party circle, crosses to the right of every name under the emblem, and also crosses to the left of the name of every candidate on the same ticket except three, not only render the elector's intention uncertain, but afford a means of subsequent identification, and such ballots are properly disallowed.

[Ed. Note.-For other cases, see Elections, Cent. Dig. §§ 151-157, 166, 167; Dec. Dig. §§ 180, 194.**]

3. ELECTIONS (§ 194*)-MARKS ON BALLOTS.

Under Gen. Laws 1909, c. 11, § 44, which provides for the procuring of another ballot by a voter who has spoiled the first one given him, a ballot marked with individual crosses to the right and to the left of each candidate in a party column, some of those to the left appearing to have been attempted to be erased, and which contains no cross in the circle at the head of the column, is still possible of identification subsequently, and should not be counted for any candidate thereon.

[Ed. Note. For other cases, see Elections, Cent. Dig. §§ 166, 167; Dec. Dig. § 194.*] 4. QUO WARRANTO (§ 61*) - DECREE-STATUTORY PROVISIONS.

Where a proceeding in the nature of quo warranto to determine the title to a certain office is commenced under Gen. Laws 1909, c. 328, 3, which provides that "in all such proceedings the court shall enforce its judgment by proper process, and whenever it shall find that no election was made it may order a new election," etc., a new election is properly ordered upon a finding that the result of the vote was a tie.

[Ed. Note.-For other cases, see Quo Warranto, Cent. Dig. § 72; Dec. Dig. § 61.*]

Petition in the nature of quo warranto by Allston E. Thorpe against Warren R. Fales to determine title to the office of member of the town council. New election ordered.

Terence M. O'Reilly, for petitioner. Charles A. Wilson, Percy W. Gardner, and Harmon S. Babcock, for respondent.

BLODGETT, J. This is a petition in equity in the nature of proceedings in quo warranto, under the provisions of chapter 328, Gen. Laws 1909, to determine the title to the office of third member of the town council of the town of East Providence.

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At the annual election of town officers in said town, held on November 7, 1911, the petitioner, Allston E. Thorpe, was the regular Democratic candidate for said office, and was also a candidate therefor under the heading on the ballot "Progressive Citizens' Nomination Papers," and the respondent, Warren R. Fales, was the regular Republican candidate for the same office, and there were no other candidates therefor. By the official count made by the town council it was declared that Thorpe had received 1,213 votes therefor and that Fales had received 1,214 votes, and was declared elected by a plurality of 1 vote. Thorpe now questions in this proceeding the legality of the action of the council in respect of 7 ballots only, of which 5 were rejected entirely by the council and not counted for either candidate, and of which 2 were counted in favor of Fales which Thorpe claims should not have been so counted.

[1] Three of these rejected ballots were marked with a cross in the circle under the star, the Democratic emblem, and in addition had a cross in the circle over the designation "Progressive Citizens' Nomination Papers." We are of the opinion that the ballots were properly rejected and disallowed by the town council. Section 43, c. 11, Gen. Laws 1909, provides inter alia as follows: "When a voter has placed a cross (X) in any one circle, and has not made any mark in any other circle, such cross (X) shall be counted as a vote for each of the candidates in the column above which it is placed except for those candidates whose names have been cancelled." The inference is plain that a cross in a given circle on the ballot is nullified by a cross in another circle on the same ballot, and the ballot must be rejected. Gainer v. Dunn, 29 R. I. 239, 242, 69 Atl. 336, 851, and cases cited. This is true, even if the nominees were identical in the two columns; but in the case at bar, while the nominees on the "Democratic" and "Progressive Citizens' Nomination Papers" columns were identical so far as certain nominations for the different offices to be filled at that election were concerned, yet on the latter column there were no nominations for certain other offices to be filled.

[2] Two others of the rejected ballots were marked as follows: One with a cross in the

circle under the star (the Democratic emblem), and in addition having a second cross below the circle and to the right of it, and the other having a cross in the circle under the star, and having also crosses both to the right of the name of every candidate on the Democratic ticket, and also crosses to the left of the name of every candidate on the same ticket except three. We are of the opinion that these ballots were properly disallowed. In Re Ballot Marks, 18 R. I. 822, 27 Atl. 608, this court said: "Section 18 [Pub. Laws

*For other cases see same topic and section NUMBER in Dec. Dig. & Am. Dig. Key No. Series & Rep'r Ind 81 A.-46

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