Frederick v. Landfield

TYLER, P. J.

This action was one brought by plaintiffs to recover the sum of $1,875 against defendant, a

[725]

stock and bond broker, for services rendered in procuring a purchaser for 150 shares of the capital stock of the Golden Gate Ferry Company, a common carrier. Defendant Landfield was the fiscal agent of the company in the sale of an issue of its capital stock and plaintiffs were employed by him as salesmen for the sale of these and other securities. As compensation for their services in selling the stock defendant Landfield agreed to pay plaintiffs 12% per cent of the selling price of $100 a share. Under his agreement with the company Landfield was authorized to accept 25 per cent of the amount of each subscription, the balance to be paid at the office of the company. From this 25 per cent Landfield was entitled to deduct his full commission. Under their employment with Landfield plaintiffs were instructed as to the terms upon which sales could and would be made and with this understanding they entered upon their duties as salesmen. In the month of October, 1921, and prior to the transaction in question, plaintiff Frederick, as broker in the employ of Landfield, had sold to one E. M. Horn of Cloverdale 40 shares of the capital stock of the ferry company. Subsequently and on the seventh day of January of the following year the plaintiffs called at the office of Landfield together and asked him for the names of some persons who were likely to subscribe for or buy stock in the ferry company. They were informed by Landfield that, in his opinion, the Clover-dale district had not been properly canvassed and that there was a good opportunity for business in that locality. Acting upon this suggestion, plaintiffs repaired to the place in question and called upon Mr. Horn, to whom plaintiff Frederick had previously sold the amount of stock above mentioned. They succeeded in inducing Horn to subscribe for 150 shares of the stock. Plaintiffs requested him to pay one-quarter of the purchase price they were required to obtain. This was agreeable to Horn, but at this particular time he did not have the ready cash, but explained to plaintiffs that he was the owner of $33,000 registered Liberty bonds, and had a few days previously mailed a portion of these securities to Washington to be converted into coupon bonds, and he asked if it was possible to wait" for at least ten days until the bonds could be returned to