Coal District Power Co. v. Katy Coal Co.

217 S.W. 449, 141 Ark. 337, 1919 Ark. LEXIS 332
CourtSupreme Court of Arkansas
DecidedDecember 22, 1919
StatusPublished
Cited by3 cases

This text of 217 S.W. 449 (Coal District Power Co. v. Katy Coal Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Coal District Power Co. v. Katy Coal Co., 217 S.W. 449, 141 Ark. 337, 1919 Ark. LEXIS 332 (Ark. 1919).

Opinion

Smith, J.

The parties to this litigation entered into the following contract:

“The following contract entered into and made this 24th day of May, 1917, by and between the Katy Coal Company, a corporation duly organized and existing under and by virtue of the laws of the State of Arkansas, to be hereinafter referred to as the consumer, and the Coal District Power Company, a corporation duly organized and existing under and by virtue of the laws of the State of Arkansas, to be hereinafter referred to as' the company. Witnesseth:
“For the sum of one dollar and other good and valuable considerations, each paid to the other, receipt of which is hereby acknowledged; the company agrees to deliver to the premises of the consumer at a central transformer station located at what is known as ‘Midland Six Mine,’ about one and one-half miles north of Midland, Arkansas, and the consumer agrees to accept, use and pay for upon the terms and conditions as herein provided, what is commercially styled Three Phase Sixty Cycle Alternating Current at a potential of approximately two hundred and twenty volts.
“The company agrees to build at its expense and provide sufficient transformer capacity, a transmission line to the location of a transformer station, said location to be decided upon by both parties to this contract. The consumer agrees to construct at its expense all pole lines, wires, etc., etc., necessary for the conduction, or transmission of such electrical energy as it may use, from the transformer station to the location of the pumps, fans, hoists, or other power using appliances.
“The consumer agrees to and does hereby grant to the company permission to construct upon the land now owned or leased by the consumer, the transmission line necessary to serve the consumer, and to allow said company to extend said transmission line for the service of other consumers.
“The consumer agrees to pay the company all bills for electric power not later than the tenth of each month upon the following basis:
“First — A demand charge of one dollar per month per killowatt of maximum demand as indicated by the name plate ratings on the transformers installed, plus an energy charge of:
“First 1,000 K. W. H. per month........................$0.04 k. w. h.
“Next 2,000 K. W. H. per month.........................03 k. w. h.
“Next 3,000 K. W. H. per month.........................025 k. w. h.
“Next 4,000 EL W. EL per month........................0225 k. w. h.
“All in excess of 10,000 K. W. EE. per month......„...............................................................................02 k. wh.
“The consumer agrees that at no time during the life of this contract that a demand charge of less than forty killowatts shall be used.
“The company agrees to provide such additional capacity as the consumer may require for its purpose, however such additions in capacity shall establish the basis of the demand charge for the remainder of the life of this contract.
“This contract shall be in full force and effective force for a period of five (5) years from and after the date power is turned on the line, which shall not be later than sixty days from the date of the signing and acceptance of this contract, unless the company shall be prevented in the construction of said line by causes reasonably beyond its control. ’ ’

The circumstances under which the contract- was executed are as follows: G-. W. Show was the superintendent of the power company, which is in the business of-dealing commercially in electric power in the coal mining district, and he appears to have been conversant with the methods of mining coal generally and to have been, familiar with conditions in appellee’s mine. The negotiations lea.ding up to the contract were had between Show and H. P. Rogers, the president and manager of the coal company. The mine passed into the control of the coal company on April 15, 1917 — it having been operated prior to that time under a different management- — and was being operated at the time of the execution of the contract. Show and Rogers consulted, both at the company office and at the mine, and a blue print was prepared showing the details of the mine. The blue print gave the dimensions of the slope and showed the number, position and dimensions of the entries connected with it and of a concrete dam which had been constructed to prevent the flow of water down a depression or swag in the mine from an adjacent creek.

Water accumulated at this depression and required pumping to prevent it flooding the mine. A steam pump had been employed for this purpose with unsatisfactory results, owing to the distance from the steam power, and Skow was advised that steam power was being used for that purpose, and that electric power was desired for the purpose of operating the pump and supplanting steam as the power to be used in the general operation of the mine. Skow prepared the specifications for the pump and the accessories necessary to handle the water situation, and he advised Rogers the machinery necessary to install to use the electric current. After these details had been discussion and agreed upon, Skow prepared the contract set out above, and it was executed without any change being made.

The coal company at its own expense erected the necessary-poles and strung the wires for the transmission of-the current and made all other essential preparations to - operate its plant with the current contracted for, at a very considerable expense to itself. No attempt was made to show any failure to perform on the part of the coal company nor that performance was prevented by an act of God or the public enemy, the defense made and relied upon being that performance was prevented by circumstances and conditions not under appellant’s control and the details of which will be more fully sta’ted.

The parties proceeded to operate under the contract and the coal company operated the mine with the current furnished by the power company and the current was sufficient for the coal company’s purpose, except that frequent interruptions in the transmission of the current occurred. These interruptions varied in duration, and during their continuance the operation of portions of the mine was interfered with, as a result of which it is said the damages sued for were sustained.

The power company admits it did not furnish the service called for by the contract, but contends that it used the utmost diligence in the effort to do so and seeks -to exonerate itself from liability for the damages sustained on that account.

The interruption in the service commenced about November 22, 1917, and continued until February 13, 1918.

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Bluebook (online)
217 S.W. 449, 141 Ark. 337, 1919 Ark. LEXIS 332, Counsel Stack Legal Research, https://law.counselstack.com/opinion/coal-district-power-co-v-katy-coal-co-ark-1919.