Provident Gold Mining Co. v. Manhattan SEC. Co.

Plaintiff brought this action to recover the sum of $88,791.94, alleged to be due it as the purchase price of certain shares of the capital stock of plaintiff subscribed for by the defendant. Judgment was given for plaintiff and from that judgment and from the order denying its motion for a new trial defendant appeals.

The appellant states that the whole controversy centers on the interpretation of the subscription contract. The contract was in the form of a communication by defendant to plaintiff. This communication declared that defendant had given full consideration to the mining operations which plaintiff was conducting, and believed that it would be for the best interest of plaintiff if it expended from seventy-five thousand dollars to one hundred thousand dollars in the development of the mine; that by so doing the mine would be opened up and its possibilities become certainties. The communication then proceeds in the following language:

This offer of defendant was accepted in writing by plaintiff. Certain payments were made by defendant as provided in the contract, and upon its failure and refusal to make later payments this action was brought. Appellant’s contention is…