Foster v. Lumbermen's Mining Co.

36 N.W. 171, 68 Mich. 188, 1888 Mich. LEXIS 902
CourtMichigan Supreme Court
DecidedJanuary 12, 1888
StatusPublished
Cited by6 cases

This text of 36 N.W. 171 (Foster v. Lumbermen's Mining Co.) is published on Counsel Stack Legal Research, covering Michigan Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Foster v. Lumbermen's Mining Co., 36 N.W. 171, 68 Mich. 188, 1888 Mich. LEXIS 902 (Mich. 1888).

Opinion

Sherwood, C. J.

This is an action of trover to recover for the conversion of a quantity of lean ore, taken from the Ludington mine, and lying on the premises, and claimed by the plaintiff to be his property. The pile was estimated to contain about 14,000 tons, and was not uncommonly called “refuse rock.” The record shows that ore yielding less than 50 per cent, of iron is usually regarded as unsalable.

The land upon which the mine was located belonged to the Lake Superior Ship-canal, Railway & Iron Company, and was operated by the defendant under a lease from that company, by which the defendant was authorized to mine and take away iron ore at a certain royalty, to be paid to the owner of the land.

In the spring of 1886, the plaintiff and John D. Jones were desirous of purchasing, or making an arrangement whereby they could sell, this rock pile, and receive a share of the proceeds, and for that purpose the plaintiff had a treaty with the managing officers of the defendant, whose attention [190]*190was first called to the subject in a brief conversation with G. E. Stockbridge, who was general manager of the company, and who informed the plaintiff that A. A. Carpenter, who was president of the company, was the man for him to treat with in the matter; that he was going to Chicago in a few days, and would then speak to him upon the subject. From this time on the arrangement seems to have been mostly made by letter. Mr. Stockbridge, from Kalamazoo, on the third day of March, 1886, wrote to the plaintiff as follows:

“ D '.ar Sir: After due consultation with Mr. Carpenter, I am obliged to say that we cannot make you any price on the refuse rock pile at our mine that would warrant you in undertaking to handle it. We should have to pay a small royalty on it, and, if we paid the royalty, the rock is worth more to us to turn back into the mine than it could possibly pay you to handle it.”

Mr. Foster, on March 25, wrote from Iron Mountain to Mr. Carpenter as follows:

Dear Sir: Not having heard from you, and not having met Mr. Stockbridge when here, thought best to ask you, if anything had been heard in regard to royalty on refuse ore, which we are talking of.”

To this Mr. Carpenter replied, on March 26, as follows:

Dear Sir: Yours of yesterday is at hand. I have to-day written Mr. Stockbridge, and sent him copy of your letter, and as soon as I hear from him will let you knpw. When he was here I did not ask him about the rock pile.”

And, on the twenty-ninth of March, Carpenter, after receiving a letter from Mr. Stockbridge, wrote the plaintiff:

“ Dear Sir: I have a letter this morning from Mr. Stock-bridge, in which he says that he is satisfied by his investigations at the mine that we cannot sell the pile of rock to you at any price that you can afford to pay for it; that it is worth more to us for filling than anything that we can get out of it by selling.”

On the thirty-first of March, the plaintiff replied to this letter as follows: '

[191]*191“Dear Sir: Yours of the twenty-ninth received. There is evidently a misunderstanding between Mr. Stockbridge and yourself, or some price could be named that you would take for the rock pile. I take it that Mr. Stockbridge is not the one to say what I can afford to pay for it, but to name price I can have it for, and, if satisfactory, can then come to an understanding. From assurances given me by Mr. Stock-bridge I have made partial arrangements for some of it, and would like to fulfill my agreement. Will you advise me soon what can be done in the matter?”

To this letter Mr. Carpenter made the following reply:

“ Chicago, April 5, 1886.
E. P. Foster, Esq.,
“Iron Mountain, Mich.
“Dear Sir: Your favor of the thirty-first ult. is at hand. The pile of rock is worth to us as it lies 25 cents a ton for filling. If you can sell it so that you and we can make something over this sum, all right; but we must first know what royalty we have to pay, and when we know this we will add this amount to the 25 cents, and you can have one-half of the amount that can be obtained for it over this sum, provided there be enough gotten over the 25 cents per ton to make it an object for us to bother with it. So let us know what you can get for it, and, if it is enough so that it will pay us, we will find out what royalty we must pay, and can then determine; but you must not sell it until we have found out what the royalty will be, and have determined whether we can get enough over the 25 cents, which the rock is worth •to us, as to make it desirable for us to sell it.
“ Yours truly,
“A. A. Carpenter.”

On the ninth of April, Mr. Foster wrote Mr. Carpenter as follows:

“ Yours of the fifth at hand. I expect to be in Chicago on Monday, the twelfth, and think you can arrange a deal on the rock pile that will be satisfactory. Though not much money for a rich mining company, it will be worth looking •after for me. Will call at your office about 10 a. m.”

The plaintiff then testified that he went to Chicago on the twelfth of April, and saw Mr. Carpenter at his office, and he then said:

[192]*192“I told him. I could sell the ore at $1.50 per ton. 25 cents they were to receive per ton. The costs of loading and the royalty, 15 cents per ton, or 10 per cent, on the price of the sales, as Mr. Carpenter stated it, would leave me a balance of 4?-} cents per ton; and the 25 cents per ton I was to pay them for what it was worth at the mine. I showed him the figures right on his desk, and he said it was satisfactory; to go ahead.”

Upon his cross-examination, he said that after deducting 15 cents for royalty, 15 cents for loading, and 25 cents for the ore, from the price obtained on sale per ton, it left 95 cents, which was to bo divided equally between the plaintiff and defendant; that the defendant was to be allowed half in addition to the 25 cents for the ore.

The foregoing constitutes the contract as stated by the plaintiff, under which he claims the defendant sold to him the pile of rock referred to. In regard to the interview of the twelfth of April, Mr. Carpenter testified that—

There was not a word passed between us at that interview in regard to the sale of the rock pile. There is not a particle of foundation for it.”

That, at the time, the defendant was paying a royalty to-the owner of the land of 50 cents per ton; and that he did-not know until the twenty-third of April what arrangement-could be made per ton on the lean ore. Mr. Carpenter, in. his testimony, further says that, in the interview with Mr. Foster on the twelfth of April,—

C‘I said to Mr. Foster just what I have said in these letters, — that the rock pile was worth to us 25 cents [per ton] as it lay. Add to that the cost of loading on the cars, and paying the royalty, — which I did not know what it would be, —and if he could find a purchaser of it, so that we could get anything more out of it, all right; he should have half of it. At that time there was not a word passed between Mr.

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Bluebook (online)
36 N.W. 171, 68 Mich. 188, 1888 Mich. LEXIS 902, Counsel Stack Legal Research, https://law.counselstack.com/opinion/foster-v-lumbermens-mining-co-mich-1888.