H. H. Hitt Lumber Co. v. Cullman Coal & Coke Co.

76 So. 347, 200 Ala. 415, 1917 Ala. LEXIS 466
CourtSupreme Court of Alabama
DecidedJuly 2, 1917
Docket6 Div. 367.
StatusPublished
Cited by13 cases

This text of 76 So. 347 (H. H. Hitt Lumber Co. v. Cullman Coal & Coke Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
H. H. Hitt Lumber Co. v. Cullman Coal & Coke Co., 76 So. 347, 200 Ala. 415, 1917 Ala. LEXIS 466 (Ala. 1917).

Opinion

McCLEliLAN, J.

The original bill was filed by creditors to dissolve and' wind up the affairs of the Cullman Coal & Coke Company, a corporation created in the year 1909. The reason for the dissolution sought was that the corporation was financially unable, though solvent, to perform its functions and effect its purposes. Code, § 3512. The Hitt Lumber Company — with others alleged to be creditors of the Coal & Coke Company, but who have not joined the Hitt Lumber Company in invoking review of the decree in question — intervened through a bill in the nature of a cross-bill, wherein mismanagement of the corporation’s affairs was charged, and the validity and bona fides of various indebtednesses of the corporation mentioned in the original bill wére assailed. The Hitt Lumber Company’s right to bring into question the stated matters asserted in Its cross-bill depended upon whether the Lumber Company was a creditor of the Cull-man Coal & Coke Company; it being not otherwise concerned in the corporation’s conduct, condition, or continued existence. The chancellor found that the 1-Iitt Lumber Company was not a creditor of the Cullman Coal & Coke Company, and hence dismissed the bill in the nature of a cross-bill.

The Hitt Lumber Company’s claim that it is a creditor of the Cullman Coal & Coke Company arises out of the circumstances to be stated. On March 27, 1912, the Cullman Coal & Coke Company executed and delivered to the Hitt Lumber Company a deed which, omitting other presently unimportant terms, reads:

“Know all men by these presents that Cull-man Coal & Co-ke Company, a corporation under the laws of Alabama, and hereinafter described as grantor, for and in consideration of one dollar and other valuable considerations to it in hand paid by H. H. Hitt Lumber Company, an Alabama coi’poration, hereinafter described as grantee, the receipt whereof is hereby acknowledged, hereby grant, bargain, sell, and convey unto said grantee all and singular the standing timber now upon the following described lands, to wit: S: * * To have and to hold unto the said grantee, its successors and assigns, forever, upon the condition and providing the same is cwt an,d removed from the said abovedeseribed lands on or before the first dory of May, 1915, the said time being the essence of this conveyancer” (Italics supplied.)

The consideration stated in the deed was paid by the grantee, Hitt Lumber Company. On July 17, 1912, approximately four months later, these companies executed the following instrument:

“This agreement, entered into this seventeenth day of July, 1912, by and between H. H. Hitt Lumber Company, an Alabama corporation, party of the first part, and Cullman Coal & Coke Company, an Alabama corporation, party of the second part, witriesseth:
“I. Said first party has purchased on March 27, 1912, from said second party for twelve thousand dollars, and other considerations, the' merchantable standing timber owned by said second party in township 12 of range 3 west, in Cullman county, Alabama, more particularly described ima deed of conveyance from said second party to said first party of March 27, 1912.
“II. As a part of the consideration for said ' purchase, said parties agree that a contract between said parties, of date September 4, 1911, covering the use of said second party’s track for hauling logs of said first party, shall be and is hereby amended to terminate at the date when said second party shall begin to operate its railroad in Cullman county, Alabama.
“III. Upon the termination of said contract of September 4, 1911, as provided in clause 2 hereof, said second party agrees to haul logs for said first party from bridge No. 1, to Cull-man, Alabama, at the terminal of its road, for seven and 50/100 dollars per car load of fifty thousand pounds or less.
“IY. Said first party agrees to cut and remove all timber purchased as described herein from the lands of said second party on or before May 1, 1915.
“Y. Said second party guarantees that said timber sold to said first party as stated herein contains eight million feet log scale, Doyle rule; should the actual measurement show a less number of feet, said second party agrees to refund to said first party an amount equal to one and *416 60/100 dollars per thousand feet of such shortage, to be paid for in logs at $1.50 per thousand feet to be cut by said first party under the terms and conditions hereon from sections 25 and 35, township 12, range 4 west, with the further condition, however, that all poplar logs cut on said sections 25 and 35, township 12, range 4 west, measuring 24 inches in diameter, inside the bark (measured four feet from the ground), shall be credited on said shortage at five dollars per thousand feet log scale, Doyle rule. Should at these respective prices of $1.50 and $5' per thousand feet the total logs cut from said lands in township 12, range 3 west, and said sections 25 and 35 aggregate in value less than $12,000, said second party agrees to pay the deficit in cash with interest at 6 per cent, per annum. Should at these respective prices of $1.50 and $5 per thousand the total logs cut from said lands in township 12, range 3 west, and said sections 25 and 35, township 12, range 4 west, exceed in total value $12,000, then said first party is to pay said second party said excess at $1.50 and $5 per thousand feet respectively.
“VI. Said first party agrees, if requested by said second party, to furnish at any time an affidavit of one of its officers to the measurement of logs cut on said land or part of same, and to allow said second party to inspect its hooks, containing a record of measurement of the logs cut on said land; it being understood and agreed that said first party shall keep a hook of the record of all logs and timber cut from said lands.”

It is to be noted that none of the timber on sections 25 and 35, mentioned, in the instrument of July 17, 1912, was conveyed by the deed of March 27, 1912. ‘On April 11, 1911, approximately a year before the above-noted conveyance to the Hitt Lumber Company was executed, the Cullman Coal & Coke Company executed to the Parker Bank & Trust Company, as trustee, a mortgage on “all the coal in, under, and upon the lands,” and such timber thereon as should be necessary for mining, etc., of the coal, to secure an issue of $750,000 of the 15-year bonds of the Cullman Coal & Coke Company. The bonds were not sold; but a considerable proportion of the issue authorized were given to alleged creditors to secure their claims against the corporation. The mortgage was duly recorded in the office of the judge of probate of Cullman county. In the mortgage these provisions appear:

“And also all the timber and water upon the same necessary for the development, working, and mining of said coal, and the preparation of the same for market, and the removal of the same; and also the right of way, and the right to build roads of any description over the same, necessary for the conveniént transportation of said coal from said lands, and the conveying and transporting to and from said lands all material and implements that may be of use in mining and removal of said coal or in the preparation of the same for market; and also the right to build houses for all employés and machinery.

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Bluebook (online)
76 So. 347, 200 Ala. 415, 1917 Ala. LEXIS 466, Counsel Stack Legal Research, https://law.counselstack.com/opinion/h-h-hitt-lumber-co-v-cullman-coal-coke-co-ala-1917.