Dover v. Pittsburg Oil Co.

VAN DYKE, J.

This is an action in equity brought by the plaintiff claiming to be the owner of twenty-nine hundred and twenty shares of the capital stock of the defendant the Pittsburg Oil Company, a corporation, and to compel said corporation to recognize the plaintiff as such owner and holder of said stock, and to place his name upon the stock-books of said corporation as the owner of the same, and to issue to him new certificates therefor, and to have the court declare the defendant E. A. Baer not the owner of said stock, nor of the certificates representing the said stock, and to haeVe the court compel said defendant Baer to surrender up and cancel the certificates he holds representing said stock.

The court below found the facts of the case to be, that

[502]

prior to August 1, 1900, plaintiff was the owner of stock in the defendant corporation to the amount of twenty-nine hundred and twenty shares, of the par value of one dollar per share, which stock was evidenced by two certificates issued by said corporation, one for twenty-eight hundred shares, and the other for one hundred and twenty shares. That on or' about August 1, 1900, and while said plaintiff was the owner of said stock, Jesse B. Dover, a brother of plaintiff, took possession of said certificates of stock, and, without knowledge of plaintiff, hypothecated the same to one J. C. Shiffer to secure the payment of seventy-five dollars, and that at the time of hypothecating the same, and in the presence of J. W. "Wiley, secretary of the defendant corporation, indorsed said stock in blank, “J. M. Dover, by Jesse B. Dover,” and delivered the same so indorsed to said Shiffer; that on or about the twelfth day of August, 1900, plaintiff was informed of said hypothecation and indorsement by said Jesse B. Dover, and stated to said Jesse B. Dover that it (the indorsement and hypothecation of said stock) was all right; that at the time of the hypothecation said J. W. Wiley, the secretary of the defendant corporation, had personal knowledge of the indorsement of said certificates, made as aforesaid, and as soon thereafter as possible informed the plaintiff that said certificates had been indorsed by his brother, Jesse B. Dover; that plaintiff then and there stated to said secretary that the said indorsement was all right; that soon after receiving said stock for security for the seventy-five dollars, as aforesaid, said Shiffer, in the presence and with the consent of Jesse B. Dover, placed the same in the hands of one J. H. Moss, as pledgeholder, who held the same in his possession until a short time prior to the 20th of November, 1900; that said Jesse B. Dover instructed said Moss to sell the said stock and pay said debt of seventy-five dollars, and the balance, if any, to be returned to him, Jesse B. Dover; that a short time prior to the 20th of November, 1900, said Moss sold said stock, and delivered said certificates, indorsed as aforesaid, to W. D. Young, a broker, who, on the 20th of November, 1900, for a valiiable consideration, again sold the same and delivered the said certificates therefor, indorsed as aforesaid, to the defendant E. A. Baer; that on November 20, 1900, the defendant the Pittsburg Oil Company, by its secretary,