Attalla Mining & Manufacturing Co. v. Winchester

102 Ala. 184
Supreme Court of Alabama·Decided November 15, 1893·Published·Cited by 6 cases

Opinion

STONE, C. J.

The appeal in this case is from the decree of the chancery court sustaining demurrers to the bill of complaint and dissolving the injunction.

The case made by tho bill is, in substance, as follows : In 1886, S. M. Winchester conveyed to Obal Christopher [186] and.-Samuel Stewart the right to mine the soft ore in and upon certain iron ore land in Etowah county for a term of ten years. ' By the terms of the lease the lessees were bound to mine not less than 20,000 tons of soft ore per annum, except that, in case of strikes or blow-outs at furnaces with which the lessees might have contracts, due allowance was to be made for the period covered by such strikes and blow-outs. The shipments of ore were to be at least 1,500. tons each and every month during the continuance of the lease, on which a royalty of thirty cents per ton of 2,268 pounds was to be paid to the lessor ; but the mining and shipment of ore were required to reach 20,000 tons each year. And if the shipment of ore should fall below 1,500 tons in any months, the lessees were authorized to make it up in the other months of the year. In case of failure to mine and ship 20,000 tons of ore in any year, the lessees were to pay royalty as if the entire annual quantity had been mined and shipped. The royalty was made payable between the 15th and 25th of 'each month in cash, except where the lessees found it necessary to take time paper from the purchaser of ore (which time should not exceed four months'), then, and in that event, the purchaser was to make separate paper to the lessor for the royalty, and if by the taking of time paper the price of ore should be increased above the cash price, the lessor Was to have th’e benefit of a proportionate increase on his royalty. No sales of ore on time were to be made by the lessees without notice to the lessor, and if made'against his objection, the lessees were bound to make the royalty good on all ore so sold. The lessees were allowed to use all timber necessary for mining purposes, and for building houses for miners, and all laps and wood left over from, timber so used. • The lessees were also to have the use of all houses then on the premises and of all cars, railroad tracks and every thing then on the property belonging to the lessor, which was used for mining purposes; but all such property, together with; all improvements that might be placed upon the property by the lessees, except machinery operated by steam, was to belong to the lessor at the termination of tho lease.. Failure to pay the royalty on -are actually mined and shipped for 60 days after it became due, according to the terms of the lease, was to operate á forfeiture of the lease, entitling the lessor .to re-enter and [187] take possession of the property! Failure to mine and ship 20,000 tons of ore in any year, and failure for ninety days to pay royalty on that quantity of ore'for such year was to work a like forfeiture. The lease Was also to be forfeited, if there should be an abandonment of 'mining operations for six months. The lease was to remain in force for ten years, as aforesaid, if the soft ore'.'should last that long, and the lessees were to mine' and ship as much more than 20,000 tons of ore as might be"practicable and as could be sold. The lessees were to have possession of the leased property by December 1',' 1886, and were to commence shipping ore by the first 'day of January, 1887. The books of the lessees, relating to the business and the mines themselves, were to be subject to the lessor’s inspection. The lease contains other provisions not material to the questions raised by the appeal.

On the 30th day of October, 1888, Winchester granted to Ob al Christopher the right to mine the hard ore on the same lands, by lease containing substantially the same stipulations embraced in the lease above deá&ribed; except as to the price of the ore and the quantity to bo mined and shipped per month and per annum. The price of the hard ore being 'fixed at 12-2- cents per ton, and minimum quantity to be shipped monthly and annually being, respectively, 2,000 and 24,000 tons.

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Attalla Mining & Manufacturing Co. v. Winchester, 102 Ala. 184 (Ala. 1893).

102 Ala. 184 (Attalla Mining & Manufacturing Co. v. Winchester) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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