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William Drope v. John Miller

Abstract

NOTE: The first document in this file, a note payable by Peter Whitsham to Andrew Finney for $150 in horses or mules, witnessed by Samuel McHenry, is misfiled – it is not a part of Drope v. Miller.

This case, similar to Schlesinger & Gillet v. Jeffreys in that it concerns another wilderness store gone awry, arose from a dispute between two business partners. In March 1826, William Drope, a French merchant and early settler at the Post, filed a bill in equity against John Miller, one of the earliest settlers of Davidsonville. Each side had a long litany of complaints against the other. To begin with Drope, alleged that in 1815 he hired Miller as a clerk to keep a store at Davidsonville on the White River, for an annual salary of $150 while in the store and $200 while boating. They continued in this arrangement until 1819 when they formed an equal partnership with a capital of $4,500 in trade. Drope advanced the capital, and in consideration for Miller becoming an equal partner, Miller paid Drope $450, gave him the use of a slave and a house, and gave up his wages. The parties agreed that each would share equally in the profits and, at dissolution, equally in the capital.

Drope alleged that Miller never furnished any additional capital. In 1819, Drope claimed that he furnished the store with goods worth $7,247.50 and paid freight to ship them from the Post to Davidsonville in the amount of $170.00. Drope claimed that according to the agreement, then, Drope would have been entitled to half of $7,417.50 on dissolution. Further, Drope complained that in 1820, Miller traveled to New Orleans and purchased between $3,000 and $5,000 worth of goods using the partnership's property to pay. Between 1819 and 1822, Drope alleged that Miller conducted all of the firm's business. Miller misrepresented the state of the business to Drope, causing Drope to believe that it was a "bad & unprofitable one & that there had been nothing made of any consequence."

In October 1822 the partners agreed to dissolve the partnership. At that time Drope claimed that his half consisted of $160 in cash, a horse worth less than $50, some lots and buildings in Davidsonville that Miller had improved, worth several hundred dollars, and goods worth between $100 and $200. Drope gave Miller a receipt, and received the books of the partnership from Miller. Drope made up figures to balance the books "under the full belief that said Miller had conducted the business injudiciously but honestly & fairly & was induced by said Miller to believe that he gave a fair & honest account of the then state of the Partnership business."

Since that time, Drope alleged that he had learned that Miller unjustly kept more than seven thousand dollars, half of which should have been turned over to him. Unfortunately, Drope did not have a copy of the original articles of partnership. He requested that the court order Drope to produce them, along with the "Mercantile books," and petitioned for an audit of the business. He wanted Miller to state on oath the amount of assets and debts at the time of dissolution, including how much was in the hands of Joseph Hardin for collection and the amounts of the debts owed by Jesse and Robert Bean. Drope also wanted information about an amount allegedly sent by Hartwell Boswell to New Orleans after the dissolution of the firm.

On March 18, 1826, Drope's attorneys, Robert Crittenden and Chester Ashley, filed the bill with the Superior Court. David E. McKinney issued a summons for John Miller to appear at the April Term of the Superior Court. Charles Kelly, the sheriff of Independence County, stated that the summons came to him too late to be served. On April 15, the record book of the Superior Court notes that Drope's attorneys received the court's permission to withdraw the papers that had been filed.

Drope tried again in August. This time Sheriff Kelly was able to serve Miller, in Ruddell Township of Independence County. At the October Term, Miller was given permission to file a complete answer, and both parties received permission to take depositions. Miller's answer is even longer than Drope's bill. Represented by Richard Searcy and Townsend Dickinson, Miller answered that the salary agreement between 1815 and 1819 was really $150 per year in the store and $400 per year while boating. In 1816 Miller set out for Pittsburgh with a load of peltries and furs. Drope met Miller in Pittsburgh, and Miller told Drope that he wanted to resign, because the compensation wasn't worth the "exposure fatigue and responsibility," whereupon Drope announced that he had formed a partnership with John Brahan, and if Miller would continue working, Drope and Brahan would give Miller the profits, throw in the services of the "negro boy" who Miller had hired to "beat the Peltries and furs," and raise his annual salary to $600.

Miller alleged that in 1819 Drope and Brahan claimed that they could not pay Miller in cash but would sell Miller all of their interest in the Davidsonville store, together with their interest in another store at Poke Bayou managed by William Moore. At that point Miller bought out Drope and Brahan, including the house and three lots in Davidsonville, and received a receipt from Drope and Brahan, witnessed by Robert and Jesse Bean. The only problem with the receipt was that the word "four" preceding "thousand," as in "four thousand dollars" had been torn off, but Drope "solemnly aver[red]" that "this was the word there inserted" and that "Said word four was torn off without his knowledge wish or consent." Miller denied any partnership between him and Drope.

Miller said Drope wanted to dissolve the partnership between Drope and Brahan, but wouldn't do so until Drope had gone to New Orleans to purchase more goods. Drope offered Miller a deal whereby Miller would sell Drope's goods in Davidsonville on Miller's terms and use the profits from the sales for ten years, after which time Miller would pay over half the profits to Drope. Miller proceeded to the Post to choose what he wished to sell. Miller alleged that the total cost of the goods he chose was $7,122.57 ½ of which $645.43 3/4 was the carriage charge. Miller alleged that many of the goods were charged to him "at an enormously high rate many of them at the highest retail prices" and accused Drope of "imposing a fraud on him" by actually charging more than Drope had paid in New Orleans. Miller said the New Orleans invoices were made out in "Sterling money" and since Miller was unfamiliar with the rate of exchange, Drope was able to cheat him. Miller further complained that the goods were "generally of an inferior quality not well assorted and not Suitable for the market" [leading one to wonder just how bad they were, since one would think Davidsonville residents would not be very finicky] and Miller objected, but Drope insisted that he take the goods. Further, Miller claimed that Drope had drawn $7,497.54 ½ cents from him by December 1819, more than the sales had amounted to during that period. Thus in 1820 when Miller traveled to New Orleans himself, he purchased goods on his own account and kept the profits himself. As to Jesse Bean, Miller said Drope had specially requested him to sell $850 worth of goods to Bean. Miller claimed that when he and Drope had decided to terminate their business relationship in 1822, Drope insisted on receiving a profit of 75% on the sold goods. Miller objected that the goods had not produced profits of more than 50% but stated that he ultimately gave in to Drope because Drope was insolvent. Miller agreed that Drope had inserted fictitious sums in the books to make them balance and Miller didn't object since he thought their settlement at the time would be final. Miller alleged that there were additional entries that should have been made in the books but weren't: a payment of $319.00 paid by Brahan and Drope to William Dudley on the order of Eli J. Lewis, which Miller paid at Drope's request; $50 paid by Jesse Bean to one of the Bougys, Drope's agent; $40 paid to Woodman Lingo for a pirogue on account of Drope; and $100 paid to Miller at the time of settlement.

Miller claimed that the receipt for $1,800 from Miller issued by Drope at settlement stated that there had been a partnership, and at the time Miller objected, since no partnership existed, but that Drope told him Drope was in the habit of stating in "Arkansas and elsewhere" that he was involved in partnerships. Miller also claimed that Drope had requested Miller to destroy all of the books. Miller refused to do this, as the books belonged to him alone. Miller disagreed with virtually all of Drope's allegations, stating that he had made valuable improvements on the Davidsonville real estate prior to 1819, except for a smoke house which Miller had built with his own labor. Miller said the house paid to Drope at the settlement had previously been Miller's own property.

Miller refused to produce an accounting, claiming that it was impossible because so many of his papers had been destroyed. He could not say how much Hardin was supposed to collect. Jesse and Robert Bean had owed various amounts, but had paid them around the time of the settlement. A William Harris owed around $300, but he was insolvent and could not pay. Miller alleged that at the time he and Drope settled up, Drope knew that Miller had "money of his own" and advised Miller to go into merchandising. Miller, however, wished to purchase slaves with his money. During 1823 Miller said he told Drope that he had applied to Robert Crittenden to purchase a draft for $3,500 and that as soon as he procured the draft he intended to purchase slaves.

Miller denied that he sent any money to New Orleans by Hartwell Boswell, but instead claimed that he had traveled to New Orleans with Boswell in 1824, and had purchased $3,843 worth of slaves with his own money.

Miller further claimed that Drope visited him in 1825 and stated that he intended to sue Miller. Allegedly Drope said that he knew the settlement had been fair, but he had been advised that if he would "make certain proofs" he could win even more from Miller. Miller swore to the veracity of his pleading on December 26, 1826, before justice of the peace John Redmon.

Accompanying the pleadings are some accounts, including dealings with Simon Miller, Edmund Hogan, William Hicks, Col. Stewart, Curran (probably Thomas Curran), Ellis Ragsdale, Thomas Cornwell, Samuel L. Hall, Spencer Crouch and someone named Bell. The accounts present a picture of complex financial dealings, involving merchandise, rent on realty, sale of rights in land, collection of notes, and tax payments. Also included is a note from Drope to Miller, requesting Miller to procure $500 in specie, since Drope owed a payment to one Moseley, "nothing but silver will do him," and there was a shortage of silver at the Post. Drope also informed Miller that Eli Lewis would be asking Miller for payment, and authorized Miller to reimburse Lewis, who had paid over an amount to William Dudley on behalf of Drope. Drope informed Miller that he would be away from home, conducting business at Cadron and Davidsonville.

At the April 1827 Term of the Superior Court, the record book indicates that there was an issue of fact as to whether Drope and Miller had a partnership, as Drope alleged and Miller denied. The court ordered "that a jury come on the law side of the Court" to decide the question. The case file contains the court's order. Also at this term, Drope filed a replication to Miller's answer. At the October Term the court ordered that the jury trial of the issue of fact be set for the next term. By the April 1828 Term, perhaps Drope had begun to doubt the advice he received to sue Miller, because the parties agreed to dismiss the suit. Each agreed to pay his own attorney's fees, and Drope agreed to reimburse Miller for his court costs.

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