Rothe v. Jones
Rothe v. Jones
Opinion of the Court
The Consolidated Oil Lease Company, domiciled at San Antonio, was engaged in buying and selling oil leases, operating under a declaration of trust. J. H. Flynn appears to have been the trustee and president of the concern, and it may be inferred from the testimony that N. W. Singer was, nominally, its vice president, and A. O. Rothe its general manager, at least in name. Flynn, however, seemed to have been the actual and, controlling head of the company. The declaration of trust under which the concern was operating does not appear in the record, and its purposes or effect are in no manner shown. It is shown, however, that Flynn, Singer, and Rothe each had shares of beneficial interest in the trust.
In April, 1920, the company advertised in the newspapers for a sales manager for a “large business,” at a salary “of from $10,-000 to $25,000 per year.” One of these advertisements caught the eye of R. E. Lee Joneá, then a resident of Louisiana, who was áo impressed by it that he at once wrote the company for particulars, advising incidentally that he had had many years’ experience on the road as an insurance salesman, at a salary of from $10,000 to $15,000 a year, “producing $2,000,000 and more of business per year,” but had “retired some years ago, and gone to farming, but desired to rent out his farm and go back into business.’; This brought a hasty reply from the company, in a letter dictated by Flynn but signed with the name of Singer, as vice president, in which, apparently not to be outdone in the matter of large figures, it was claimed that “the company has in the last 60 days reaped a reward of $80,000that it had over 400,-000 acres of oil leases, and “owned outright 3,000 acres in the Somerset field, which was proven territory, which they were developing themselves.” The commissions the company paid its salesmen were then quoted; Jones was invited to invest in the business, and was promised the position of sales manager, if he “was able to make the required investment”; and it was suggested that he come over to San Antonio and talk it over in person, in which event, and if a deal was made, the company would pay his expenses. This letter from the company brought a prompt response from Jones, who asked for further particulars, reiterated the first recital of his success as an insurance salesman, and the large returns his efforts brought to the company employing him, and asked how much he would be required to invest in the company, stating in that connection that he did not have much available cash, “as most of his money was tied up in his farm, worth about $40,000 or $50,000.” From this point the correspondence grew fast and furious, soon flamingi into telegraphic communication. The company advised Jones that it had added a $200,000 investment to its assets, and the latter advised the former that in -his last venture he had organized a force that “produced over $3,000,000 worth of business in three months.” At intervals in the contest the company again urged Jones to come over to San Antonio, promising if he did so, and did business with it, it would pay his expenses both ways, and finally Jones suggested that the parties split the expenses of his prospective trip, and to this end asked the company to send him draft for $100, to which proposal the company replied that it was “dumbfounded” at this request, as it “was backed by $250,000,” and nonchalantly referred him to two of San Antonio’s leading banks, as well as to the two largest mercantile agencies in the United States. This gentle rebuke seemed to put a quietus on *583 Mr. Jones’ fears, as the latter finally came on to San Antonio at his own expense, and made a trade with Flynn, according to his testimony, whereby he was to work for the company as a salesman at a salary of $50 a week, but was not required to invest in the business. He had no dealings with Singer or Rothe, whom he ignored, but dealt entirely with Flynn, whom he had been affectionately addressing in his letters as “My dear Flynn,” and with whom, as president of the company, he had had most of his correspondence. In fact, all the letters to Jones appear co have been dictated by Flynn. One of them had been signed with Singer’s name as vice president,. but Singer testified that this was not his signature; that he did not sign it, nor authorize any one to sign it for him. Several of the letters were signed by Rothe as “general manager and trustee,” and he admitted his signature to all but one of these letters, whereby he became either actively, passively, or unwittingly (as he contends) sponsor for their. contents. All the other letters were signed by Flynn as president. Undoubtedly, from the testimony, Flynn was actively in full charge and control of the business of the company, and was looked to by Jones as such, and while Singer was nominally and in name its vice president, and Rothe its general manager, each testified that he was merely an employé at a salary of $50 a week.
When he made his trade with Flynn, Jones went back to his Louisiana home, arranged his affairs there, and returned to San Antonio to take up his work for the company, reporting to Flynn. For some reason, however, Flynn did not set him to work, putting him off from day to day, according to Jones, for some three weeks, when it seems that Flynn disappeared with the company’s assets and has not been heard from since. Jones then called on Rothe and Singer to pay his salary and expenses to San Antonio and back to Louisiana, which they refused, and Jones brought this suit against Rothe and Singer, as partners, for three weeks’ salary and $92.29 expenses. Upon a trial before the court without a jury he obtained judgment against the defendants jointly for $92.-29, the amount of his expenses.
If Jones had alleged that Flynn, Rothe, and Singer together comprised the partnership, that the contract in question had beeii made with Flynn, and that this act of Flynn as one of the partners was binding alike upon all the partners, a different case would be presented. But he has not done this. He simply alleged that Rothe and Singer were partners, and that the contract was made *584 with them as such, and under these allegations seeks to prove up a contract made alone with Elynn.
The judgment is reversed, and the cause remanded for another trial.
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Case-law data current through December 31, 2025. Source: CourtListener bulk data.