Fox v. Krug

70 F. Supp. 721, 19 L.R.R.M. (BNA) 2424, 1947 U.S. Dist. LEXIS 2846
CourtDistrict Court, N.D. West Virginia
DecidedMarch 8, 1947
DocketCiv. A. No. 399-W
StatusPublished

This text of 70 F. Supp. 721 (Fox v. Krug) is published on Counsel Stack Legal Research, covering District Court, N.D. West Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Fox v. Krug, 70 F. Supp. 721, 19 L.R.R.M. (BNA) 2424, 1947 U.S. Dist. LEXIS 2846 (N.D.W. Va. 1947).

Opinion

BAKER, District Judge.

The facts in this case, as they have been developed, will be stated first since the [722]*722legal problems involved are more readily understandable after the facts are known.

Ralph A. Fox, a resident of Monongalia County, West Virginia, started in the coal business in the year 1939. The operation at that time consisted of a small mine, known as Fox No. 1. At this time Fox was occupying some property near the City of Morgantown, West Virginia, which included a worked-out coal mine. Fox, with the assistance of his wife and usually one additional employee, began producing coal by removing the pillars from this old mine No. 1. The condition of his financing is shown by the fact that his original capital consisted of nine pigs, two of which he traded for a pony, and one of which he traded for a mine car. He gradually developed this coal business and later moved to a slightly larger operation known as Fox No. 2.

In November of 1944, Margaret L. Fox, a sister of Ralph Fox, started the operation known as Fox No. 3. This Fox Mine No. 3 actually got into production in the summer of 1945. In November of 1945, Margaret L. Fox entered into a contract with the United Mine Workers of America. This contract was actually signed by Ralph A. Fox, as attorney-in-fact for Margaret L. Fox. As of March 31, 1946, Ralph A. Fox purchased the interest of his sister, Margaret L. Fox, in Fox Mine No. 3.

This mine consists of seven acres of surface land, upon which is located a scale house, a dwelling house which was a converted stable, the upper half of which Ralph A. Fox used as his residence, and two shacks which were available for tenancy by men working at the mine. In addition to this surface, the sister had a lease giving her the right to mine 100 acres of Pittsburgh Coal, paying a royalty therefor of 25 cents per ton. This lease she assigned to Ralph A. Fox. The mine is approximately seven miles from the nearest railroad, so that all coal produced must be moved by truck, deliveries being made partly to local consumers and partly to one of three different railroad sidings for shipment by rail.

The type and extent of operations of this mine is best illustrated by a table introduced in evidence as Plaintiff’s Exhibit No. 17, which reads as follows:

“FOX COAL COMPANY COAL MINED 1946

[723]*723From this Exhibit it may be seen that during the calendar year 1946, the mine worked an average of twenty-four days per month, employed an average of fifteen men per month, and produced an average of 3,110 tons of coal per month.

Beginning April 1, 1946, there was a general coal strike in the entire bituminous field. The effect nationally of this strike is too well known to need comment here, and the effect upon the operations at Fox Mine No. 3 is made plain by the above Plaintiff’s Exhibit No. 17, which shows that no coal was produced for the entire month of April, and only 200 tons for the entire month of May.

Upon May 21, 1946, the Honorable Harry S. Truman, President of the United States, issued Executive Order No. 9728, setting forth that upon that date there were threatened interruptions in the operations of mines producing bituminous coal, caused by existing or threatened strikes and other labor disturbances; that coal was necessary for the war effort and to preserve the national economy during the transition from war to peace; and authorizing and directing the Secretary of the Interior to take possession of any and all mines to the extent that he deemed it necessary in the interest of the war effort. This Executive Order provided that possession of any mine or mines taken under the same should be terminated by the Secretary of the Interior as soon as practicable but in no event more than 60 days after the restoration of the productive efficiency of any such mine or mines prevailing prior to the taking of possession thereof.

Pursuant to this Executive Order, the Secretary of the Interior took possession of most of the bituminous coal mines in the United States, but did not take possession of Fox Mine No. 3. It will be noted, however, from Plaintiff’s Exhibit No. 17, heretofore referred to, that the production at the Fox Mine No. 3 immediately returned to its former level. The production for the month of June, 1946, was actually 1200 tons over the average monthly production for the year.

Upon August 1, 1946, there was a work stoppage at the mine which grew out of a dispute between the miners and Fox as to the capacity of the mine cars being used. The miners, as is customary in that field, were paid on a basis of tonnage loaded. The mine had no facilities for weighing each individual car as it came out of the mine, but the miners’ pay was computed upon the assumption that the cars in use held a certain specified tonnage when full. Up to June 1, 1946, it was agreed by all parties that the cars then in use held two tons of coal each. On June 1, 1946, Fox purchased a new lot of mine cars and it was estimated that these new cars held 2% tons each. The miners conceived the idea that these new cars actually held about three tons, and the resulting argument over this difference of opinion culminated in a walkout on August 1. A few days after the August 1 walk-out, the matter was settled by actually weighing five sample cars, representatives of the miners and the company both participating in determining the actual weight per load thereof. This matter having been settled, the miners returned to work and production was resumed. As shown in Plaintiff’s Exhibit No. 17, the total production for August was about 800 tons over the average monthly production for the year 1946.

In the meantime, on or about June 1st, a representative of the Coal Mines Administration came to the mine and told Fox that his mine had been seized by the Secretary of the Interior and posted a notice to that effect. In the latter part of July, this same man appeared again and stated that he had been in error, and that the mine had not been seized and took down the notice he had previously caused to be posted.

On August 2, 1946, the Secretary of the Interior issued his Order No. 2200-B, taking possession, effective August 5, 1946, of some 70 coal mines which had not been seized on May 21st. Included among these mines was Fox Coal Company Mine No. 3. On August 3, 1946, the Coal Mines Administrator designated the plaintiff as operating manager for the United States for said mine, and a notice of seizure was again posted at the mine. Representatives of the Coal Mines Administration called upon the plaintiff, Fox, from time to time, and talked to him concerning his powers and obligations as operating manager for the United [724]*724States. Mr. Fox never agreed to act as operating manager for the United States, and from the beginning of the negotiations contended that he did not have a contract with the United Mine Workers of America, and would not be bound by the so-called Krug-Lewis Agreement.

On August 29, 1946, Ralph A. Fox sent a telegram to Admiral Ben Moreel, Navy Coal Mines Administration, Washington, D. C., stating in part: “I wish to be relieved of my duties as operating manager of this mine.” According to the testimony, the actual wording of this telegram was dictated by a representative of the Coal Mines Administration.

The mine continued to be operated by Fox. It had its highest monthly production for a month in which only one shift was operated in September, and a very high production in October.

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Bluebook (online)
70 F. Supp. 721, 19 L.R.R.M. (BNA) 2424, 1947 U.S. Dist. LEXIS 2846, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fox-v-krug-wvnd-1947.