Mount Carmel Railroad v. M. A. Hanna Co.

371 Pa. 232
CourtSupreme Court of Pennsylvania
DecidedJune 24, 1952
DocketAppeal, No. 177
StatusPublished
Cited by20 cases

This text of 371 Pa. 232 (Mount Carmel Railroad v. M. A. Hanna Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mount Carmel Railroad v. M. A. Hanna Co., 371 Pa. 232 (Pa. 1952).

Opinion

Opinion by

Mr. Justice Allen M. Stearns,

The basic question raised by this appeal is whether or not M. A. Hanna Company, the appellee, possesses [234]*234the right to strip mine coal underlying the railroad of Mount Carmel Railroad Company (owner) and Reading Company (lessee) appellants herein. The court below decided that it had such right and dismissed the bill in equity seeking to restrain appellee from strip mining the coal underlying appellants’ railroad. This appeal followed.

The right of appellee to strip mine the coal depends upon the interpretation of a written document dated September 29, 1891, executed by the Mineral Railroad and Mining Company (a predecessor in title to appellee, the lessee of lands in Mount Carmel Township in Northumberland County) and the Mount Carmel and Natalie Railroad Company (a predecessor in title to appellants). Under this document (variously termed a deed, grant, agreement and release) the lessee granted the railroad company a right of way over the surface of its land to “make, construct, maintain and use its said railroad” which extended approximately 5.90 miles from Natalie Junction to Natalie Colliery. The area over which the right of way was granted is shown by two maps attached to the document. The strip of land was not to exceed thirty acres of surface, and to be of a width not over thirty feet on either side of the center line shown on the maps. The lessee’s term was for nine hundred and ninety-nine years, and the rights of the railroad company were for five hundred years from September 29, 1891.

The findings of fact of the chancellor concerning title were approved by the court in banc and are sufficiently-supported by the evidence. The M. A. Hanna Company, appellee, became the successor to all the rights of the Mineral Railroad and Mining Company, the lessee-grantor. The fee title to the surface over which the appellants’ right of way extends is vested in appellee, subject to the grant in the document dated [235]*235September 29, 1891, supra. All the rights granted to the Mount Carmel and Natalie Railroad Company became vested in the appellants. As we approve the findings of the court below establishing title, we will not recite in detail the chains of title. The only question of law encountered in tracing the title concerns the sufficiency of the assignment of the rights of Mineral Railroad and Mining Company to appellee. On December 24,1913, the stockholders of Mineral, a corporation, approved the transfer of all property of the company to appellee’s predecessor, but no formal assignment was executed prior to dissolution of Mineral Corporation in 1932. To cure this possible defect in title, on March 2, 1951, all parties who had owned shares in Mineral Corporation at the time of its dissolution, viz.: Pennsylvania Railroad Company and Northern Central Railway Company, joined in an assignment to appellee. Appellants argue that the Act of May 21, 1881, P. L. 30, 15 PS 3062, provides the exclusive method by which the officers of a dissolved corporation may convey assets. Appellee contends that this is an enabling act only and not a mandatory procedure. Since no creditors’ rights are involved, we agree with the conclusion of the learned court below that the assignment by all those who held stock at the time of dissolution was effective to pass whatever title was still held by Mineral Corporation. “On dissolution, the legal title to land passes to the stockholders, and title to the corporate property vests in the stockholders as tenants in common and is subject to their contract if all debts have been paid and no receiver has been appointed”: 16 Fletcher on Corporations (1942 ed.) sec. 8134, p. 878.

We need not review the cases on severance of estates in coal lands — the estate in the surface, the estate in the coal and the right of surface support, sometimes referred to as the third estate. These principles are reviewed, in [236]*236Miles v. Pennsylvania Coal Company, 214 Pa. 544, 63 A. 1032, but have no controlling application in this case. When this document was executed in 1891, there had been no severance, and there was none until almost fifty years after the execution of the document upon which appellants base their rights. We then have the situation where a lessee of the fee grants to a railroad company the right and privilege of constructing and maintaining a railroad over a designated strip of the lessee’s land. Concerning this there is no dispute. The litigation revolves about the reservations and restrictions connected with the grant. In summary: the lessee (grantor) reserved all the coal underlying the grantee’s railroad, with right to remove same without liability. But the grantee railroad company was authorized, after due notice, to retain such underlying coal upon payment to the lessee of the value of the coal. It is the interpretation of the words of the document which determines whether the method of removal of the coal may be by strip mining or is required to be by deep mining.

Appellants’ right of way extends in a general northeasterly direction and crosses at right angles the path of the proposed strip mining, which is approximately three hundred feet wide and through which runs a vein of coal shaped like a Y. The coal is nineteen feet thick at its upper extremity (referred to as the surface outcrop) and thirty feet thick at the vertex of the V, which lies approximately two hundred and fifty feet below the rails of appellants’ road. The overburden from the outcrop to the natural surface of the ground is approximately thirty feet deep, and on top of this is an artificial fill about twenty-two to twenty-four feet in depth. Thus it is- apparent that strip mining will, require removing the earth beneath appellants’ track for a distance of about three hundred feet, to depths ■ varying from fifty to two hundred and fifty [237]*237feet. This will make operation of the railroad impossible until the ground is back filled within a year after the mining is completed in compliance with the Anthracite Strip Mining Act of June 27, 1947, P. L. 1095, 52 PS 681.1 et seq. Testimony was adduced by appellants that because of the shape of the vein a considerable portion of the coal could be removed by deep mining without disturbing the surface at all, and relatively minor disturbances would result from deep mining the surface outcrop.

The pertinent excerpts from the document of September 29, 1891, supra, which require interpretation to determine the method of mining permitted are as follows: “PROVIDED HOWEVER, that nothing herein contained shall be held or construed as giving or granting unto the said party of the second part, its successors or assigns, any of the fossil or mineral coal, iron or other ores, or any interest in the same or any other minerals that may be found under the surface of the earth within the said boundaries of the said right of way upon the said strip of hereby granted to the said party of the second part, and it is hereby stipulated and provided that this grant is made expressly subject to the condition that the said party of the first part excepts from this grant and fully and absolutely reserves unto the said party of the first part, its successors and assigns, ... all the said fossil or mineral coal, iron or other ores or minerals that may be found under the surface of the said tracts or parts or tracts of land, or either of them or any part thereof, with the full and free right of digging for, mining and taking away the same, at any time or times,

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Bluebook (online)
371 Pa. 232, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mount-carmel-railroad-v-m-a-hanna-co-pa-1952.